Exhibit 99.1 Actuant Reports Record 4th Quarter and Fiscal 2005 Sales and Earnings MILWAUKEE--(BUSINESS WIRE)--Sept. 29, 2005--Actuant Corporation (NYSE:ATU) today announced record sales and earnings for its fourth quarter and fiscal year ended August 31, 2005. Fourth quarter fiscal 2005 net earnings and diluted earnings per share ("EPS") were $19.1 million and $0.63, respectively. This compares to net earnings and EPS of $18.3 million and $0.67, respectively, for the fourth quarter of fiscal 2004. Fiscal 2004 fourth quarter results included a charge of $7.1 million, net of tax, or $0.25 per diluted share, arising from the early extinguishment of debt and net income from discontinued operations of $10.9 million, or $0.39 per diluted share, due to the release of a reserve for obligations related to the fiscal 2000 spin-off of APW Ltd. (the "Spin-off"). Current year fourth quarter results include $0.7 million ($0.02 per diluted share) of net expense resulting from the Company's previously announced adoption of Financial Accounting Standards Board Statement No. 123R, "Accounting for Stock Based Compensation" ("SFAS 123R") in the fourth quarter. Excluding these three items, comparable fourth quarter EPS increased 23% to $0.65 per diluted share this year from $0.53 per diluted share last year (see attached reconciliation of earnings). Net earnings for fiscal 2005 were $71.3 million, or $2.42 per diluted share, compared to $34.8 million, or $1.32 per diluted share for the prior year. In fiscal 2004, the Company recorded net of tax special charges of $25.1 million, or $0.91 per diluted share, due to the early extinguishment of debt and income from discontinued operations of $10.9 million, net of tax, or $0.39 per diluted share, due to the release of a reserve for obligations related to the Spin-off. The Company's adoption of SFAS 123R in fiscal 2005 resulted in a non-cash reduction to net income of $2.7 million, or $0.09 per diluted share. Excluding these three items, comparable EPS was $2.51 per diluted share in fiscal 2005, a 36% increase over the $1.84 per diluted share in the prior year. Fourth quarter sales increased approximately 44% to $269.4 million compared to $187.8 million in the prior year. Current year results include those from Key Components, Inc., Hydratight Sweeney, Hedley Purvis Holdings Limited, Yvel S.A., and A.W. Sperry Instruments, Inc., which were acquired during fiscal 2005. Excluding the impact of foreign currency exchange rate changes, fourth quarter core sales (year-over-year sales in both existing and acquired businesses) decreased approximately 2%. Fourth quarter sales for businesses owned at least twelve months declined 5% compared to the prior year, excluding foreign currency rate changes. Both of these declines were the result of forecasted sales reductions in the recreational vehicle ("RV") and automotive convertible top markets. Excluding sales into these two markets and foreign currency exchange rate changes, fourth quarter core sales increased 6%. Actuant's sales for fiscal 2005 were $976.1 million, approximately 34% higher than the $726.9 million generated in the prior year, reflecting revenues added through fiscal 2005 business acquisitions. Excluding the impact of foreign currency rate changes, core sales for the fiscal year increased 1% and sales from businesses owned at least twelve months decreased 2%. Commenting on the results, Robert C. Arzbaecher, Chief Executive Officer, stated, "Actuant finished fiscal 2005 strongly, driving another quarter of solid year-over-year earnings growth from continuing operations. Once again, we saw the benefit of Actuant's diversity as the year-over-year sales declines in the RV and auto markets were offset by strength elsewhere. During the fourth quarter, Actuant benefited from strong performance in its industrial tools businesses, including the newly acquired bolting businesses (Hydratight Sweeney and Hedley Purvis), which are enjoying strong demand from the oil and gas markets. In addition to record results, fourth quarter cash flow was exceptional, leading to a $41 million reduction in net debt." Arzbaecher added, "We are extremely pleased with our progress in fiscal 2005, including the acquisition of five businesses that strengthened our existing units, increased portfolio diversification, provided business expansion opportunities in new markets, and were all accretive to earnings. On a full-year basis and excluding last year's 13% Senior Subordinated Note buyback charges, the $2.42 diluted earnings per share from continuing operations in fiscal 2005 was over 30% higher than a year ago, and was the fifth consecutive year of EPS growth in excess of 15%. Regarding the outlook for Fiscal 2006, Arzbaecher commented, "We have confidence in our ability to continue to generate earnings growth. We are reaffirming our fiscal 2006 guidance, which included diluted earnings per share of $2.75-$3.00 on sales of $1.15-$1.175 billion. We expect higher earnings growth in the second half of the year relative to the first half due to the timing of automotive platform launches and current RV market conditions. First quarter sales are expected to be in the $270-280 million range, generating EPS of approximately $0.62-$0.67 per diluted share. We anticipate generating free cash flow of approximately $100 million in fiscal 2006, which will be used for debt reduction and/or acquisitions." The Company's strong cash flow drove $41 million of net debt reduction during the fourth quarter, reducing net debt to approximately $432 million (gross debt of $442 million less approximately $10 million of cash). Borrowing availability under the Company's revolving credit facility remains high, with over $200 million available at August 31, 2005 to fund operating and acquisition activities. Fiscal 2005 fourth quarter Tools & Supplies segment sales were $174.3 million, approximately 64% higher than last year due to strong industrial tools business growth and acquisition benefit. Excluding the impact of foreign currency rate changes, year-over-year fourth quarter Tools & Supplies segment core sales increased 10% and sales from businesses owned at least twelve months increased 9%. Fourth quarter fiscal 2005 Engineered Solutions segment sales increased approximately 17% to $95.1 million, compared to $81.5 million in the previous year. Excluding the impact of foreign currency rate changes, fourth quarter Engineered Solutions core sales decreased 19% and sales from businesses owned at least twelve months decreased 24%, the result of expected lower sales to automotive convertible top and RV motor home OEMs. Year-over-year, Actuant's fiscal 2005 fourth quarter and full fiscal year operating profit increased 45% to $35.3 million and 36% to $122.5 million, respectively. These increases are in line with the corresponding increases in sales. Year-over-year fourth quarter operating profit margins expanded from 12.9% to 13.1%, despite the negative impact of stock option expense in fiscal 2005. Excluding approximately $1.1 million of stock option expense, fourth quarter operating profit margins increased approximately 60 basis points to 13.5%. Tools & Supplies segment margins expanded due to favorable sales mix, including acquisitions, partially offset by the impact of stock option expense. Fourth quarter Engineered Solutions segment margins also benefited from sales mix attributable to current year acquisitions, but declined overall due to stock option expense and lower overhead absorption attributable to reduced sales volumes. Safe Harbor Statement Certain of the above comments represent forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. Management cautions that these statements are based on current estimates of future performance and are highly dependent upon a variety of factors, which could cause actual results to differ from these estimates. Actuant's results are also subject to general economic conditions, variation in demand from customers, the impact of geopolitical activity on the economy, continued market acceptance of the Company's new product introductions, the successful integration of business unit acquisitions and related restructuring, operating margin risk due to competitive pricing and operating efficiencies, supply chain risk, material, overhead and labor cost increases, foreign currency fluctuations and interest rate risk. See the Company's registration statements filed with the Securities and Exchange Commission for further information regarding risk factors. About Actuant Actuant, headquartered in Glendale, Wisconsin, is a diversified industrial company with operations in 32 countries. The Actuant businesses are market leaders in highly engineered position and motion control systems and branded hydraulic and electrical tools and supplies. Formerly known as Applied Power Inc., Actuant was created in 2000 after the spin-off of Applied Power's electronics business segment into a separate public company. Since 2000, Actuant has grown its sales run rate from $482 million to over $1 billion and its market capitalization from $113 million to over $1 billion. The Company employs a workforce of more than 5,000 worldwide. Actuant Corporation trades on the New York Stock Exchange under the symbol ATU. For further information on Actuant and its business units, visit the Company's Web site at www.actuant.com. Actuant Corporation Condensed Consolidated Balance Sheets (Dollars in thousands) August 31, August 31, 2005 2004 ----------- --------- (unaudited) ASSETS Current assets Cash and cash equivalents $10,356 $6,033 Accounts receivable, net 131,185 90,433 Inventories, net 135,960 87,074 Deferred income taxes 14,974 11,126 Other current assets 6,838 7,648 ----------- --------- Total current assets 299,313 202,314 Property, plant and equipment, net 83,879 47,972 Goodwill 428,285 145,387 Other intangible assets, net 175,001 22,127 Other long-term assets 9,857 6,336 ----------- --------- Total assets $996,335 $424,136 =========== ========= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Short-term borrowings $21 $960 Trade accounts payable 89,506 64,165 Accrued compensation and benefits 32,663 21,401 Income taxes payable 13,791 9,608 Current maturities of long-term debt 136 3,863 Other current liabilities 51,360 34,627 ----------- --------- Total current liabilities 187,477 134,624 Long-term debt, less current maturities 442,661 189,068 Deferred income taxes 60,041 8,376 Pension and postretirement benefit accruals 41,192 28,862 Other long-term liabilities 20,131 31,429 Shareholders' equity Capital stock 5,410 4,753 Additional paid-in capital (370,875) (518,321) Accumulated other comprehensive income (loss) (20,282) (17,600) Restricted stock awards (1,452) - Stock held in trust (1,166) (806) Deferred compensation liability 1,166 806 Retained earnings 632,032 562,945 ----------- --------- Total shareholders' equity 244,833 31,777 ----------- --------- Total liabilities and shareholders' equity $996,335 $424,136 =========== ========= Actuant Corporation Condensed Consolidated Statements of Earnings (In thousands except per share amounts) (Unaudited) Three Months Ended Twelve Months Ended August 31, August 31, 2005 2004 2005 2004 ------------------- -------------------- Net sales $269,389 $187,764 $976,066 $726,851 Cost of products sold 177,767 127,650 659,591 495,609 ------------------- -------------------- Gross profit 91,622 60,114 316,475 231,242 Selling, administrative and engineering expenses 54,613 35,354 188,764 138,682 Amortization of intangible assets 1,744 493 5,220 2,221 ------------------- -------------------- Operating profit 35,265 24,267 122,491 90,339 Financing costs, net 6,146 2,391 16,927 13,559 Charge for early extinguishment of debt - 9,458 - 36,735 Other (income) expense, net 600 (376) (144) 1,220 ------------------- -------------------- Earnings before income tax expense and minority interest 28,519 12,794 105,708 38,825 Income tax expense 9,440 5,305 35,012 14,676 Minority interest, net of income taxes (36) 116 (555) 259 ------------------- -------------------- Earnings from Continuing Operations 19,115 7,373 71,251 23,890 Discontinued Operations, net of Income Taxes - 10,933 - 10,933 ------------------- -------------------- Net earnings $19,115 $18,306 $71,251 $34,823 =================== ==================== Basic Earnings per share Earnings from Continuing Operations $0.71 $0.31 $2.74 $1.01 Discontinued Operations, net of Income Taxes $- $0.46 $- $0.46 ------------------- -------------------- Total $0.71 $0.77 $2.74 $1.47 =================== ==================== Diluted Earnings per share Earnings from Continuing Operations $0.63 $0.28 $2.42 $0.93 Discontinued Operations, net of Income Taxes $- $0.39 $- $0.39 ------------------- -------------------- Total $0.63 $0.67 $2.42 $1.32 =================== ==================== Weighted average common shares outstanding Basic 26,982 23,757 25,996 23,660 Diluted 31,404 28,273 30,443 27,705 Actuant Corporation Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Three Months Ended Year Ended ----------------- ------------------- August August August August 31, 31, 31, 2005 31, 2004 2005 2004 -------- -------- --------- --------- Operating Activities Earnings from continuing operations $19,115 $7,373 $71,251 $23,890 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 6,176 4,343 22,421 16,597 Stock-based compensation expense 1,272 - 4,440 - Amortization of debt discount and debt issuance costs 361 297 1,297 1,423 Write-off of debt discount and debt issuance costs in conjunction with early extinguishment of debt - 764 - 5,209 Write-off fair value adjustments to long-term debt in conjunction with early termination of interest rate swaps - 1,170 - 754 Provision for deferred income taxes 4,243 (1,298) 3,767 2,631 Loss on disposal of assets 241 224 90 361 Changes in operating assets and liabilities, excluding the effects of the business acquisitions: Accounts receivable 9,676 9,578 (2,077) 3,714 Increase (decrease) in accounts receivable securitization program (1,784) (2,406) 19,286 640 Inventories 2,467 (3,305) (3,046) (7,549) Prepaid expenses and other assets 496 (1,356) 3,581 887 Trade accounts payable 604 1,014 (944) 3,731 Income taxes payable 436 5,681 (122) (1,027) Reimbursement of tax refund to former subsidiary - - (15,837) - Other accrued liabilities 1,774 2,435 (7,114) (5,714) -------- -------- --------- --------- Net cash provided by continuing operations (a) 45,077 24,514 96,993 45,547 Investing Activities Proceeds from sale of property, plant and equipment 868 - 3,707 14,601 Capital expenditures (3,937) (2,935) (15,442) (10,935) Cash paid for business acquisitions, net of cash acquired (2,221) - (384,176) (65,100) -------- -------- --------- --------- Net cash used in investing activities (5,290) (2,935) (395,911) (61,434) Financing Activities Net proceeds from 2% convertible senior subordinated note offering - - - 144,994 Partial redemptions of 13% senior subordinated notes - (29,236) - (110,133) Extinguishment of former senior secured credit agreement - - - (30,000) Initial proceeds from new senior credit agreement - - - 30,000 Payments for early termination of interest rate swaps - (1,170) - (2,186) Gross proceeds from issuance of term loans - - 250,000 - Net proceeds from Class A common stock offering 80 - 134,440 - Redemption of Key Components, Inc. 10.5% senior notes - - (82,800) Principal payments on term loans (1,896) (1,956) (4,941) (26,399) Net borrowings on (repayments of) revolving credit facilities and short-term borrowings (34,963) 12,077 2,520 8,136 Debt issuance costs (244) (229) (2,544) (1,499) Tax benefit from stock-based compensation 604 40 4,262 2,414 Stock option exercises and other 183 159 2,239 1,725 -------- -------- --------- --------- Net cash provided by (used in) financing activities (36,236) (20,315) 303,176 17,052 Effect of exchange rate changes on cash (79) 18 65 275 -------- -------- --------- --------- Net increase in cash and cash equivalents 3,472 1,282 4,323 1,440 Cash and cash equivalents - beginning of period 6,884 4,751 6,033 4,593 -------- -------- --------- --------- Cash and cash equivalents - end of period $10,356 $6,033 $10,356 $6,033 ======== ======== ========= ========= (a) Includes the net of tax cash impact of 13% senior subordinated note redemptions of $6.0 and $14.4 million for the three and twelve months ended August 31, 2004, respectively. ACTUANT CORPORATION SUPPLEMENTAL UNAUDITED DATA (US dollars, in thousands) FISCAL 2004 --------------------------------------------- Q1 Q2 Q3 Q4 TOTAL --------------------------------------------- SALES TOOLS & SUPPLIES SEGMENT $96,335 $103,554 $109,930 $106,298 $416,117 ENGINEERED SOLUTIONS SEGMENT 70,249 72,468 86,551 81,466 310,734 --------------------------------------------- TOTAL REPORTED SALES $166,584 $176,022 $196,481 $187,764 $726,851 ============================================= % SALES GROWTH TOOLS & SUPPLIES SEGMENT 4.7% 14.2% 20.3% 15.0% 13.5% ENGINEERED SOLUTIONS SEGMENT 25.8% 40.9% 55.1% 46.0% 41.9% TOTAL REPORTED SALES 12.7% 23.9% 33.5% 26.7% 24.2% OPERATING PROFIT (3) TOOLS & SUPPLIES SEGMENT $14,361 $15,714 $17,546 $17,088 $64,709 ENGINEERED SOLUTIONS SEGMENT 8,775 7,257 11,415 11,216 38,663 CORPORATE / GENERAL (2,414) (2,799) (3,783) (4,037) (13,033) --------------------------------------------- TOTAL REPORTED RESULTS $20,722 $20,172 $25,178 $24,267 $90,339 ============================================= OPERATING PROFIT % (3) TOOLS & SUPPLIES SEGMENT 14.9% 15.2% 16.0% 16.1% 15.6% ENGINEERED SOLUTIONS SEGMENT 12.5% 10.0% 13.2% 13.8% 12.4% TOTAL (INCLUDING CORPORATE) 12.4% 11.5% 12.8% 12.9% 12.4% EBITDA EXCLUDING SPECIAL ITEMS (3) TOOLS & SUPPLIES SEGMENT $16,668 $17,511 $19,618 $19,378 $73,175 ENGINEERED SOLUTIONS SEGMENT 9,921 8,986 12,753 13,285 44,945 CORPORATE / GENERAL (2,386) (2,709) (3,632) (3,677) (12,404) --------------------------------------------- EBITDA EXCLUDING SPECIAL ITEMS 24,203 23,788 28,739 28,986 105,716 SPECIAL ITEMS (1) (15,069) (2,268) (9,940) (9,458) (36,735) --------------------------------------------- EBITDA (2) $9,134 $21,520 $18,799 $19,528 $68,981 ============================================= EBITDA % (3) TOOLS & SUPPLIES SEGMENT 17.3% 16.9% 17.8% 18.2% 17.6% ENGINEERED SOLUTIONS SEGMENT 14.1% 12.4% 14.7% 16.3% 14.5% TOTAL EXCLUDING SPECIAL ITEMS (INCLUDING CORPORATE) 14.5% 13.5% 14.6% 15.4% 14.5% FISCAL 2005 ----- --------------------------------------------- Q1 Q2 Q3 Q4 TOTAL ----- --------------------------------------------- SALES TOOLS & SUPPLIES SEGMENT $112,537 $138,546 $158,211 $174,250 $583,544 ENGINEERED SOLUTIONS SEGMENT 87,140 96,721 113,522 95,139 392,522 ----- --------------------------------------------- TOTAL REPORTED SALES $199,677 $235,267 $271,733 $269,389 $976,066 ===== ============================================= % SALES GROWTH TOOLS & SUPPLIES SEGMENT 16.8% 33.8% 43.9% 63.9% 40.2% ENGINEERED SOLUTIONS SEGMENT 24.0% 33.5% 31.2% 16.8% 26.3% TOTAL REPORTED SALES 19.9% 33.7% 38.3% 43.5% 34.3% OPERATING PROFIT (3) TOOLS & SUPPLIES SEGMENT $17,493 $19,621 $21,924 $28,537 $87,575 ENGINEERED SOLUTIONS SEGMENT 12,080 10,803 16,091 10,792 49,766 CORPORATE / GENERAL (3,163) (3,486) (4,137) (4,064) (14,850) ----- --------------------------------------------- TOTAL REPORTED RESULTS $26,410 $26,938 $33,878 $35,265 $122,491 ===== ============================================= OPERATING PROFIT % (3) TOOLS & SUPPLIES SEGMENT 15.5% 14.2% 13.9% 16.4% 15.0% ENGINEERED SOLUTIONS SEGMENT 13.9% 11.2% 14.2% 11.3% 12.7% TOTAL (INCLUDING CORPORATE) 13.2% 11.4% 12.5% 13.1% 12.5% EBITDA EXCLUDING SPECIAL ITEMS (3) TOOLS & SUPPLIES SEGMENT $19,262 $22,560 $25,619 $31,877 $99,318 ENGINEERED SOLUTIONS SEGMENT 13,384 13,345 18,143 13,150 58,022 CORPORATE / GENERAL (919) (3,308) (3,871) (4,186) (12,284) ----- --------------------------------------------- EBITDA EXCLUDING SPECIAL ITEMS 31,727 32,597 39,891 40,841 145,056 SPECIAL ITEMS (1) - - - - - ----- --------------------------------------------- EBITDA (2) $31,727 $32,597 $39,891 $40,841 $145,056 ===== ============================================= EBITDA % (3) TOOLS & SUPPLIES SEGMENT 17.1% 16.3% 16.2% 18.3% 17.0% ENGINEERED SOLUTIONS SEGMENT 15.4% 13.8% 16.0% 13.8% 14.8% TOTAL EXCLUDING SPECIAL ITEMS (INCLUDING CORPORATE) 15.9% 13.9% 14.7% 15.2% 14.9% (1) First, third and fourth quarter 2004 special items represents charges related to the early redemption of debt. Second quarter 2004 special items represents the non-cash charge attributable to the write-off of remaining debt issuance costs associated with the senior secured credit facility that was replaced during February 2004. (2) EBITDA excludes discontinued operations. (3) Fiscal 2005 operating profit and EBITDA includes non-cash stock option expense of $4.1 million. The expense recognized by quarter is as follows: Qtr 1 $0.9 million; Qtr 2 $1.0 million; Qtr 3 $1.1 million; Qtr 4 $1.1 million. ACTUANT CORPORATION Reconciliation of GAAP measures to non-GAAP measures (In thousands, except per share amounts) FISCAL 2004 ----------------------------------------- Q1 Q2 Q3 Q4 TOTAL ----------------------------------------- NET EARNINGS EXCLUDING DISCONTINUED OPERATIONS, DEBT EXTINGUISHMENT COSTS, AND STOCK COMPENSATION EXPENSE (1) NET EARNINGS (GAAP MEASURE) $293 $8,758 $7,466 $18,306 $34,823 DISCONTINUED OPERATIONS (NET OF TAX) - - - (10,933) (10,933) ----------------------------------------- NET EARNINGS FROM CONTINUING OPERATIONS 293 8,758 7,466 7,373 23,890 DEBT EXTINGUISHMENT COSTS (NET OF TAX) 9,795 1,479 6,791 7,084 25,149 STOCK COMPENSATION EXPENSE (NET OF TAX) - - - - - ----------------------------------------- TOTAL (NON-GAAP MEASURE) $10,088 $10,237 $14,257 $14,457 $49,039 ========================================= DILUTED EARNINGS PER SHARE EXCLUDING DISCONTINUED OPERATIONS, DEBT EXTINGUISHMENT COSTS AND STOCK COMPENSATION EXPENSE (1) NET EARNINGS (GAAP MEASURE) $0.01 $0.33 $0.29 $0.67 $1.32 DISCONTINUED OPERATIONS (NET OF TAX) - - - (0.39) (0.39) ----------------------------------------- NET EARNINGS FROM CONTINUING OPERATIONS 0.01 0.33 0.29 0.28 0.93 DEBT EXTINGUISHMENT COSTS (NET OF TAX) 0.40 0.05 0.24 0.25 0.91 STOCK COMPENSATION EXPENSE (NET OF TAX) - - - - - ----------------------------------------- TOTAL (NON-GAAP MEASURE) $0.41 $0.38 $0.53 $0.53 $1.84 ========================================= EBITDA EXCLUDING DISCONTINUED OPERATIONS, DEBT EXTINGUISHMENT COSTS, AND STOCK COMPENSATION EXPENSE (2) NET EARNINGS (GAAP MEASURE) $293 $8,758 $7,466 $18,306 $34,823 DISCONTINUED OPERATIONS (NET OF TAX) - - - (10,933) (10,933) ----------------------------------------- NET EARNINGS FROM CONTINUING OPERATIONS 293 8,758 7,466 7,373 23,890 NET FINANCING COSTS 4,391 3,877 2,900 2,391 13,559 INCOME TAX EXPENSE 283 4,660 4,428 5,305 14,676 DEPRECIATION & AMORTIZATION 3,934 4,254 4,066 4,343 16,597 MINORITY INTEREST 233 (29) (61) 116 259 ----------------------------------------- EBITDA (NON-GAAP MEASURE) 9,134 21,520 18,799 19,528 68,981 DEBT EXTINGUISHMENT COSTS (NET OF TAX) 15,069 2,268 9,940 9,458 36,735 STOCK COMPENSATION EXPENSE (NET OF TAX) - - - - - ----------------------------------------- TOTAL (NON-GAAP MEASURE) $24,203 $23,788 $28,739 $28,986 $105,716 ========================================= FISCAL 2005 ----- ----------------------------------------- Q1 Q2 Q3 Q4 TOTAL ----- ----------------------------------------- NET EARNINGS EXCLUDING DISCONTINUED OPERATIONS, DEBT EXTINGUISHMENT COSTS, AND STOCK COMPENSATION EXPENSE (1) NET EARNINGS (GAAP MEASURE) $16,941 $15,198 $19,997 $19,115 $71,251 DISCONTINUED OPERATIONS (NET OF TAX) - - - - - ----- ----------------------------------------- NET EARNINGS FROM CONTINUING OPERATIONS 16,941 15,198 19,997 19,115 71,251 DEBT EXTINGUISHMENT COSTS (NET OF TAX) - - - - - STOCK COMPENSATION EXPENSE (NET OF TAX) 565 621 753 741 2,680 ----- ----------------------------------------- TOTAL (NON-GAAP MEASURE) $17,506 $15,819 $20,750 $19,856 $73,931 ===== ========================================= DILUTED EARNINGS PER SHARE EXCLUDING DISCONTINUED OPERATIONS, DEBT EXTINGUISHMENT COSTS AND STOCK COMPENSATION EXPENSE (1) NET EARNINGS (GAAP MEASURE) $0.62 $0.52 $0.66 $0.63 $2.42 DISCONTINUED OPERATIONS (NET OF TAX) - - - - - ----- ----------------------------------------- NET EARNINGS FROM CONTINUING OPERATIONS 0.62 0.52 0.66 0.63 2.42 DEBT EXTINGUISHMENT COSTS (NET OF TAX) - - - - - STOCK COMPENSATION EXPENSE (NET OF TAX) 0.02 0.02 0.02 0.02 0.09 ----- ----------------------------------------- TOTAL (NON-GAAP MEASURE) $0.64 $0.54 $0.68 $0.65 $2.51 ===== ========================================= EBITDA EXCLUDING DISCONTINUED OPERATIONS, DEBT EXTINGUISHMENT COSTS, AND STOCK COMPENSATION EXPENSE (2) NET EARNINGS (GAAP MEASURE) $16,941 $15,198 $19,997 $19,115 $71,251 DISCONTINUED OPERATIONS (NET OF TAX) - - - - - ----- ----------------------------------------- NET EARNINGS FROM CONTINUING OPERATIONS 16,941 15,198 19,997 19,115 71,251 NET FINANCING COSTS 1,938 3,907 4,936 6,146 16,927 INCOME TAX EXPENSE 8,806 8,022 8,744 9,440 35,012 DEPRECIATION & AMORTIZATION 4,098 5,699 6,448 6,176 22,421 MINORITY INTEREST (56) (229) (234) (36) (555) ----- ----------------------------------------- EBITDA (NON-GAAP MEASURE) 31,727 32,597 39,891 40,841 145,056 DEBT EXTINGUISHMENT COSTS (NET OF TAX) - - - - - STOCK COMPENSATION EXPENSE (NET OF TAX) 869 956 1,159 1,139 4,123 ----- ----------------------------------------- TOTAL (NON-GAAP MEASURE) $32,596 $33,553 $41,050 $41,980 $149,179 ===== ========================================= (1) Net earnings and diluted earnings per share excluding discontinued operations, debt extinguishment costs, and stock compensation expense represent net earnings and diluted earnings per share per the Consolidated Statement of Earnings net of charges or credits for items that are not representative of the normal recurring operations of the current portfolio of Actuant companies or items to be highlighted for comparability purposes. Items that are not representative of the normal recurring operations of the current portfolio of Actuant companies include results from discontinued operations and expenses recorded to extinguish debt entered into at the time of the spin-off. Items to be highlighted for comparabiltiy purposes include the adoption of SFAS 123R, "Stock Compensation Expense" in fiscal 2005. These measures should not be considered as an alternative to net earnings or diluted earnings per share as an indicator of the company's operating performance. However, this presentation is important to investors (2) EBITDA represents net earnings before net financing costs, income tax expense, depreciation & amortization and minority interest. EBITDA excluding discontinued operations, debt extinguishment costs, and stock compensation expense is net of charges or credits that are not representative of the normal recurring operations of the current portfolio of Actuant companies or items to be highlighted for comparability purposes. Items that are not representative of the normal recurring operations of the current portfolio of Actuant companies include results from discontinued operations and expenses recorded to extinguish debt entered into at the time of the spin-off. Items to be highlighted for comparabiltiy purposes include the adoption of SFAS 123R, "Stock Compensation Expense" in fiscal 2005. EBITDA is not a calculation based upon generally accepted accounting principles (GAAP). The amounts included in the EBITDA calculation, however, are derived from amounts included in the Consolidated Statements of Earnings data. EBITDA should not be considered as an alternative to net earnings or operating profit as an indicator of the company's operating performance, or as an alternative to operating cash flows as a measure of liquidity. Actuant has presented EBITDA because it regularly reviews this as a measure of the company's ability to incur and service debt. In addition, EBITDA is used by many of our investors and lenders, and is presented as a convenience to them. However, the EBITDA measure presented may not always be comparable to similarly titled measures reported by other companies due to differences in the components of the calculation. CONTACT: Actuant Corporation Andrew Lampereur, 414-352-4160