Exhibit 99.1 Actuant Reports Record 2006 Results MILWAUKEE--(BUSINESS WIRE)--Sept. 27, 2006--Actuant Corporation (NYSE:ATU) today announced record sales and earnings for its fourth quarter and fiscal year ended August 31, 2006. Fourth quarter fiscal 2006 net earnings and diluted earnings per share ("EPS") were $25.2 million and $0.82, respectively, compared to $19.1 million and $0.63, respectively, for the fourth quarter of fiscal 2005. Fiscal 2006 fourth quarter results include a $4.9 million ($4.5 million net of tax, or $0.14 per diluted share) pre-tax charge covering a portion of the Company's previously announced restructuring of its European electrical business, offset by a $5.4 million ($0.17 per diluted share) income tax benefit primarily related to the reversal of a tax valuation allowance for net operating losses. Excluding the restructuring charge and income tax benefit, fourth quarter EPS increased 25% to $0.79 per diluted share year-over-year (see attached reconciliation of earnings). Net earnings for fiscal 2006 were $92.6 million, or $3.01 per diluted share, compared to $71.3 million, or $2.42 per diluted share for the prior year. These results include favorable tax reserve adjustments of $0.08 and $0.02 per diluted share in fiscal 2006 and 2005, respectively, as well as the $0.14 per diluted share European Electrical restructuring provision and $0.17 per diluted share tax benefit discussed above. Excluding these items, comparable EPS was $2.90 per diluted share in fiscal 2006, a 21% increase over the $2.40 per diluted share in the prior year. Fourth quarter sales increased approximately 21% to $324.6 million compared to $269.4 million in the prior year, driven by strong base business growth and sales from acquired businesses. Excluding foreign currency exchange rate changes and sales from acquired businesses, fourth quarter sales increased approximately 13% from the comparable prior year period. Sales for the fiscal year ended August 31, 2006 were $1.2 billion, approximately 23% higher than the $976 million in the comparable prior year period, reflecting sales volume added through business acquisitions and strong base business growth. Excluding the impact of foreign currency rate changes and sales from acquired businesses, full year sales increased 9% year-over-year. Commenting on the results, Robert C. Arzbaecher, Chief Executive Officer, stated, "Actuant finished fiscal 2006 strongly, driving another quarter of significant year-over-year sales and earnings growth. The continued profitable growth in our industrial tools businesses, Enerpac and Hydratight, led the record results. Additionally, as expected, automotive business revenues grew 63% for the quarter on sales related to new convertible model introductions." Arzbaecher added, "We are very happy with Actuant's progress in fiscal 2006 as we continued to execute our business model to drive strong cash flow and earnings growth. Our team achieved 9% sales growth excluding currency and acquisitions, deployed approximately $129 million in aggregate on acquisitions that strengthened our existing business, and continued to drive LEAD (Lean Enterprise Across Disciplines) and organizational competency throughout the business. Fiscal 2006's 21% EPS growth was the fifth consecutive year of EPS growth in excess of 15% since Actuant's creation through a spin-off. We were also able to convert those strong earnings into cash, generating over $100 million of cash flow, which was again in excess of net income." Regarding the outlook for fiscal 2007, Arzbaecher commented, "We have confidence in our ability to continue to generate solid earnings growth. We are increasing our previous fiscal 2007 guidance, and now are forecasting diluted earnings per share of $3.20-$3.40 on sales of $1.325-$1.345 billion, reflecting the Actown acquisition and current economic environment. Our guidance excludes the remaining $12-15 million of estimated European electrical restructuring costs and future acquisitions. First quarter sales are expected to be in the $325-335 million range, generating EPS of approximately $0.78-$0.81 per diluted share. We believe that the continued consistent execution of our business model will reward shareholders in fiscal 2007 and beyond." Net debt at August 31, 2006 was approximately $455 million (gross debt of $480 million less approximately $25 million of cash), compared to $460 million at the beginning of the quarter. The reduction in net debt during the quarter was attributable to fourth quarter cash flow of approximately $29 million, partially offset by the $24 million of borrowings to fund the August 2006 Actown acquisition. Availability under the Company's revolving credit facility remained strong at approximately $170 million as of August 31, 2006. Fourth quarter Tools & Supplies segment sales were $209 million, an approximate 20% increase over fiscal 2005. Excluding foreign currency exchange rate changes and sales from acquired businesses, segment sales increased approximately 9% from the comparable prior year period, driven by continued growth in the industrial tools and electrical markets. Fiscal 2006 fourth quarter Engineered Solutions segment sales increased approximately 22% year-over-year to $116 million. Excluding foreign currency exchange rate changes, Engineered Solutions sales increased 20%, driven by the 63% increase in automotive convertible top system sales. Year-over-year, Actuant's fiscal 2006 fourth quarter and full fiscal year operating profit increased to $38.2 million and $154.1 million, respectively, including the fourth quarter European Electrical restructuring charge of $4.9 million. Year-over-year fourth quarter operating profit margins expanded from 13.1% to 13.3%, excluding the negative impact of the restructuring charge in fiscal 2006. Tools & Supplies segment margins expanded due to favorable sales mix, increased low cost country sourcing, and lower electrical buyback and reset costs. Fourth quarter Engineered Solutions segment margins declined primarily due to start-up inefficiencies in the automotive business as new platform production ramps up, as well as below average RV margins, partially offset by higher margins in the truck market. 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 acquisitions, restructuring, operating margin risk due to competitive pricing and operating efficiencies, supply chain risk, material 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. An investor conference call is scheduled for 11am ET today, September 27, and may be listened to via web cast on Actuant's website at www.actuant.com. About Actuant Actuant, headquartered in Butler, Wisconsin, is a diversified industrial company with operations in more than 30 countries. The Actuant businesses are market leaders in highly engineered position and motion control systems and branded hydraulic and electrical tools and supplies. Since its creation through a spin-off in 2000, Actuant has grown its sales from $482 million to over $1 billion and its market capitalization from $113 million to over $1.2 billion. The Company employs a workforce of more than 6,300 worldwide. Actuant Corporation trades on the NYSE under the symbol ATU. For further information on Actuant and its business units, visit the Company's website at www.actuant.com. Condensed Consolidated Balance Sheets (Dollars in thousands) (Unaudited) August 31, August 31, 2006 2005 ------------ ------------ ASSETS Current assets Cash and cash equivalents $25,659 $10,356 Accounts receivable, net 171,262 131,185 Inventories, net 165,760 135,960 Deferred income taxes 18,796 14,974 Other current assets 9,448 6,838 ------------ ------------ Total current assets 390,925 299,313 Property, plant and equipment, net 94,544 83,879 Goodwill 505,428 428,285 Other intangible assets, net 210,899 175,001 Other long-term assets 11,579 9,857 ------------ ------------ Total assets $1,213,375 $996,335 ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Short-term borrowings $- $21 Trade accounts payable 122,164 89,506 Accrued compensation and benefits 43,983 32,663 Income taxes payable 21,852 15,049 Current maturities of long-term debt 18,896 136 Other current liabilities 57,499 51,360 ------------ ------------ Total current liabilities 264,394 188,735 Long-term debt, less current maturities 461,356 442,661 Deferred income taxes 70,184 58,783 Pension and postretirement benefit accruals 36,606 41,192 Other long-term liabilities 17,870 20,131 Shareholders' equity Capital stock 5,460 5,410 Additional paid-in capital (357,509) (370,875) Accumulated other comprehensive income (loss) (4,581) (20,282) Restricted stock awards (2,844) (1,452) Stock held in trust (1,355) (1,166) Deferred compensation liability 1,355 1,166 Retained earnings 722,439 632,032 ------------ ------------ Total shareholders' equity 362,965 244,833 ------------ ------------ Total liabilities and shareholders' equity $1,213,375 $996,335 ============ ============ Actuant Corporation Condensed Consolidated Statements of Earnings (Dollars in thousands except per share amounts) (Unaudited) Three Months Ended Twelve Months Ended August 31, August 31, ---------------------- ---------------------- 2006 2005 2006 2005 ---------------------- ---------------------- Net sales $324,601 $269,389 $1,201,158 $976,066 Cost of products sold 216,530 177,767 796,653 659,591 ---------------------- ---------------------- Gross profit 108,071 91,622 404,505 316,475 Selling, administrative and engineering expenses 62,782 54,613 237,868 188,764 Restructuring charge 4,910 - 4,910 - Amortization of intangible assets 2,219 1,744 7,662 5,220 ---------------------- ---------------------- Operating profit 38,160 35,265 154,065 122,491 Financing costs, net 7,209 6,146 26,146 16,927 Other (income) expense, net 389 600 2,070 (144) ---------------------- ---------------------- Earnings from operations before income tax expense and minority interest 30,562 28,519 125,849 105,708 Income tax expense 5,371 9,440 33,386 35,012 Minority interest, net of income taxes (44) (36) (125) (555) ---------------------- ---------------------- Net earnings $25,235 $19,115 $92,588 $71,251 ====================== ====================== Earnings per share Basic $0.93 $0.71 $3.41 $2.74 Diluted 0.82 0.63 3.01 2.42 Weighted average common shares outstanding Basic 27,217 26,982 27,130 25,996 Diluted 31,619 31,404 31,601 30,443 Actuant Corporation Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Three Months Ended Twelve Months Ended August 31, August 31, ---------------------------------------- 2006 2005 2006 2005 --------- --------- --------- --------- Operating Activities Net earnings $25,235 $19,115 $92,588 $71,251 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 7,851 6,176 27,773 22,421 Amortization of debt discount and debt issuance costs 382 361 1,471 1,297 Stock-based compensation expense 1,393 1,272 5,041 4,443 Provision for deferred income taxes (1,960) 4,243 (2,762) 3,767 Loss/(gain) on disposal of assets 733 241 458 90 Changes in operating assets and liabilities, excluding the effects of the business acquisitions: Accounts receivable (5,042) 9,676 (27,416) (2,077) Increase in AR securitization program 1,856 (1,784) 6,106 19,286 Inventories (9,739) 2,467 (17,937) (3,046) Prepaid expenses and other assets (436) 496 (2,163) 3,581 Trade accounts payable 5,546 604 23,568 (944) Income taxes payable 427 436 6,258 (122) Reimbursement of tax refund to former subsidiary - - - (15,837) Accrued compensation and benefits 1,868 739 8,276 1,490 Other accrued liabilities 4,170 1,035 900 (8,607) --------- --------- --------- --------- Net cash provided by operating activities 32,284 45,077 122,161 96,993 Investing Activities Proceeds from sale of property, plant and equipment 898 868 1,487 3,707 Capital expenditures (4,240) (3,937) (19,705) (15,442) Cash paid for business acquisitions, net of cash acquired (23,891) (2,221) (128,767) (384,176) --------- --------- --------- --------- Net cash used in investing activities (27,233) (5,290) (146,985) (395,911) Financing Activities Net borrowings (repayments) on revolving credit facilities and short-term borrowings 1,199 (34,963) 37,680 2,520 Proceeds from issuance of term loans - - - 250,000 Principal payments on term loans (126) (1,896) (126) (4,941) Retirement of KCI 10.5% bonds - - - (82,800) Debt issuance costs - (244) - (2,544) Net proceeds from Class A common stock offering - 80 - 134,440 Payment of Cash Dividend - - (2,165) - Tax benefit from stock-based compensation 3 604 2,152 4,260 Stock option exercises and other 305 183 2,296 2,241 --------- --------- --------- --------- Net cash provided by (used in) financing activities 1,381 (36,236) 39,837 303,176 Effect of exchange rate changes on cash 15 (79) 290 65 --------- --------- --------- --------- Net increase in cash and cash equivalents 6,447 3,472 15,303 4,323 Cash and cash equivalents - beginning of period 19,212 6,884 10,356 6,033 --------- --------- --------- --------- Cash and cash equivalents - end of period $25,659 $10,356 $25,659 $10,356 ========= ========= ========= ========= ACTUANT CORPORATION SUPPLEMENTAL UNAUDITED DATA (Dollars in thousands) 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 $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 19.9% 33.7% 38.3% 43.5% 34.3% OPERATING PROFIT 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 - EXCLUDING RESTRUCTURING CHARGE $26,410 $26,938 $33,878 $35,265 $122,491 RESTRUCTURING CHARGE - - - - - --------------------------------------------- TOTAL $26,410 $26,938 $33,878 $35,265 $122,491 ============================================= OPERATING PROFIT % 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) - EXCLUDING RESTRUCTURING CHARGE 13.2% 11.4% 12.5% 13.1% 12.5% EBITDA 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) --------------------------------------------- TOTAL - EXCLUDING RESTRUCTURING CHARGE $31,727 $32,597 $39,891 $40,841 $145,056 RESTRUCTURING CHARGE - - - - - --------------------------------------------- TOTAL $31,727 $32,597 $39,891 $40,841 $145,056 ============================================= EBITDA % 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 (INCLUDING CORPORATE) - EXCLUDING RESTRUCTURING CHARGE 15.9% 13.9% 14.7% 15.2% 14.9% FISCAL 2006 ----------------------------------------------- Q1 Q2 Q3 Q4 TOTAL ----------------------------------------------- SALES TOOLS & SUPPLIES SEGMENT $181,306 $174,577 $192,580 $208,711 $757,174 ENGINEERED SOLUTIONS SEGMENT 102,570 101,442 124,082 115,890 443,984 ----------------------------------------------- TOTAL $283,876 $276,019 $316,662 $324,601 $1,201,158 =============================================== % SALES GROWTH TOOLS & SUPPLIES SEGMENT 61.1% 26.0% 21.7% 19.8% 29.8% ENGINEERED SOLUTIONS SEGMENT 17.7% 4.9% 9.3% 21.8% 13.1% TOTAL 42.2% 17.3% 16.5% 20.5% 23.1% OPERATING PROFIT TOOLS & SUPPLIES SEGMENT $30,416 $27,355 $32,479 $36,991 $127,241 ENGINEERED SOLUTIONS SEGMENT 11,762 11,131 14,342 10,866 48,101 CORPORATE / GENERAL (3,967) (3,632) (3,981) (4,787) (16,367) ----------------------------------------------- TOTAL - EXCLUDING RESTRUCTURING CHARGE $38,211 $34,854 $42,840 $43,070 $158,975 RESTRUCTURING CHARGE - - - (4,910) (4,910) ----------------------------------------------- TOTAL $38,211 $34,854 $42,840 $38,160 $154,065 =============================================== OPERATING PROFIT % TOOLS & SUPPLIES SEGMENT 16.8% 15.7% 16.9% 17.7% 16.8% ENGINEERED SOLUTIONS SEGMENT 11.5% 11.0% 11.6% 9.4% 10.8% TOTAL (INCLUDING CORPORATE) - EXCLUDING RESTRUCTURING CHARGE 13.5% 12.6% 13.5% 13.3% 13.2% EBITDA TOOLS & SUPPLIES SEGMENT $33,530 $30,868 $35,395 $41,140 $140,933 ENGINEERED SOLUTIONS SEGMENT 14,105 13,968 17,348 13,879 59,300 CORPORATE / GENERAL (3,601) (3,586) (3,881) (4,487) (15,555) ----------------------------------------------- TOTAL - EXCLUDING RESTRUCTURING CHARGE $44,034 $41,250 $48,862 $50,532 $184,678 RESTRUCTURING CHARGE - - - (4,910) (4,910) ----------------------------------------------- TOTAL $44,034 $41,250 $48,862 $45,622 $179,768 =============================================== EBITDA % TOOLS & SUPPLIES SEGMENT 18.5% 17.7% 18.4% 19.7% 18.6% ENGINEERED SOLUTIONS SEGMENT 13.8% 13.8% 14.0% 12.0% 13.4% TOTAL (INCLUDING CORPORATE) - EXCLUDING RESTRUCTURING CHARGE 15.5% 14.9% 15.4% 15.6% 15.4% ACTUANT CORPORATION Reconciliation of GAAP measures to non-GAAP measures (Dollars in thousands, except for per share amounts) FISCAL 2005 ----------------------------------------- Q1 Q2 Q3 Q4 TOTAL ----------------------------------------- NET EARNINGS EXCLUDING RESTRUCTURING CHARGE AND TAX ADJUSTMENTS (1) NET EARNINGS (GAAP MEASURE) $16,941 $15,198 $19,997 $19,115 $71,251 RESTRUCTURING CHARGES, NET OF TAX BENEFIT - - - - - TAX ADJUSTMENTS - - (617) - (617) ----------------------------------------- TOTAL (NON-GAAP MEASURE) $16,941 $15,198 $19,380 $19,115 $70,634 ========================================= DILUTED EARNINGS PER SHARE EXCLUDING RESTRUCTURING CHARGE AND TAX ADJUSTMENTS (1) NET EARNINGS (GAAP MEASURE) $0.62 $0.52 $0.66 $0.63 $2.42 RESTRUCTURING CHARGES, NET OF TAX BENEFIT - - - - - TAX ADJUSTMENTS - - (0.02) - (0.02) ----------------------------------------- TOTAL (NON-GAAP MEASURE) $0.62 $0.52 $0.64 $0.63 $2.40 ========================================= EBITDA (2) NET EARNINGS (GAAP MEASURE) $16,941 $15,198 $19,997 $19,115 $71,251 FINANCING COSTS, NET 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, NET OF INCOME TAX (56) (229) (234) (36) (555) ----------------------------------------- EBITDA (NON-GAAP MEASURE) $31,727 $32,597 $39,891 $40,841 $145,056 RESTRUCTURING CHARGE - - - - - ----------------------------------------- EBITDA (NON-GAAP MEASURE) - EXCLUDING RESTRUCTURING CHARGE $31,727 $32,597 $39,891 $40,841 $145,056 ========================================= FISCAL 2006 ----------------------------------------- Q1 Q2 Q3 Q4 TOTAL ----------------------------------------- NET EARNINGS EXCLUDING RESTRUCTURING CHARGE AND TAX ADJUSTMENTS (1) NET EARNINGS (GAAP MEASURE) $21,268 $19,298 $26,787 $25,235 $92,588 RESTRUCTURING CHARGES, NET OF $411 TAX BENEFIT - - - 4,499 4,499 TAX ADJUSTMENTS - - (2,597) (5,374) (7,971) ----------------------------------------- TOTAL (NON-GAAP MEASURE) $21,268 $19,298 $24,190 $24,360 $89,116 ========================================= DILUTED EARNINGS PER SHARE EXCLUDING RESTRUCTURING CHARGE AND TAX ADJUSTMENTS (1) NET EARNINGS (GAAP MEASURE) $0.70 $0.63 $0.86 $0.82 $3.01 RESTRUCTURING CHARGES, NET OF $411 TAX BENEFIT - - - 0.14 0.14 TAX ADJUSTMENTS - - (0.08) (0.17) (0.25) ----------------------------------------- TOTAL (NON-GAAP MEASURE) $0.70 $0.63 $0.78 $0.79 $2.90 ========================================= EBITDA (2) NET EARNINGS (GAAP MEASURE) $21,268 19,298 26,787 25,235 $92,588 FINANCING COSTS, NET 6,067 6,084 6,786 7,209 26,146 INCOME TAX EXPENSE 10,220 9,159 8,636 5,371 33,386 DEPRECIATION & AMORTIZATION 6,521 6,721 6,680 7,851 27,773 MINORITY INTEREST, NET OF INCOME TAX (42) (12) (27) (44) (125) ----------------------------------------- EBITDA (NON-GAAP MEASURE) $44,034 $41,250 $48,862 $45,622 $179,768 RESTRUCTURING CHARGE - - - 4,910 4,910 ----------------------------------------- EBITDA (NON-GAAP MEASURE) - EXCLUDING RESTRUCTURING CHARGE $44,034 $41,250 $48,862 $50,532 $184,678 ========================================= (1) Net earnings and diluted earnings per share excluding restructuring charges and income tax adjustments represent net earnings and diluted earnings per share per the Consolidated Statement of Earnings net of charges or credits for items to be highlighted for comparability purposes. 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 for understanding the operating results of the current portfolio of Actuant companies. (2) EBITDA represents net earnings before financing costs, net, income tax expense, depreciation & amortization and minority interest. 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, 262-373-7401