Exhibit 99.1
Actuant Reports Record Third Quarter Results, Provides Fiscal 2009 Outlook
MILWAUKEE--(BUSINESS WIRE)--Actuant Corporation (NYSE:ATU) today announced record sales and earnings for its third quarter ended May 31, 2008.
Highlights
Robert Arzbaecher, CEO of Actuant, commented, “I am pleased to report that Actuant delivered another quarter of strong sales, earnings and cash flow. Execution on profit improvement and growth initiatives during the quarter was solid and we continued to enjoy the benefit of robust demand in the global energy and truck markets. These factors more than offset the challenging conditions in the consumer-oriented recreational vehicle (“RV”), retail and marine electrical markets, which weakened as the quarter progressed. We are continuing to invest in the businesses that are growing, while carefully monitoring and reducing discretionary expenses in businesses serving the more challenged markets. This quarter’s strong financial results demonstrate the value of our diversified global business model.”
Consolidated Results
Third quarter sales increased 15% to $445 million from $385 million in the prior year, reflecting the combination of core growth, business acquisitions and the weaker US dollar. Excluding the impact of foreign currency rate changes (6%) and acquisitions (7%), core sales growth was 2%. Three of the Company’s four operating segments reported third quarter core sales growth, led by the Industrial segment with 14%.
Fiscal 2008 third quarter net earnings and EPS were $38.6 million and $0.60, respectively, compared to prior year net earnings and EPS of $29.6 million and $0.47, respectively. Fiscal 2008 third quarter results include a $2.6 million ($0.04 per diluted share) income tax gain resulting from provision to return adjustments. Fiscal 2007 third quarter results included a $0.4 million ($0.01 per diluted share) European Electrical restructuring charge. Excluding these items, third quarter EPS increased 17% year-over-year from $0.48 to $0.56. (See attached reconciliation of GAAP to non-GAAP measures).
Sales for the nine months ended May 31, 2008 were $1.259 billion, 18% higher than the $1.069 billion in the comparable prior year period. Excluding the impact of foreign currency rate changes (5%) and sales from acquired businesses (10%), year-to-date core sales increased 3%.
Net earnings for the nine months ended May 31, 2008 rose 20% to $88.3 million, or $1.39 per diluted share, compared to $73.6 million, or $1.19 per diluted share for the comparable prior year period. Year-to-date fiscal 2008 results include $0.16 per diluted share of European Electrical restructuring charges as well as a $0.04 per diluted share income tax gain. Fiscal 2007 year-to-date results include $0.05 per diluted share of European Electrical restructuring charges. Excluding the tax gain and restructuring charges, EPS rose 22% to $1.51 per diluted share, from $1.24 per diluted share for the comparable prior year period. (See attached reconciliation of GAAP to non-GAAP measures).
Segment Results
Industrial Segment | |||||||||||
(US $ in millions) | |||||||||||
Three Months Ended May 31, |
Nine Months Ended May 31, |
||||||||||
2008 | 2007 | 2008 | 2007 | ||||||||
Sales | $160.0 | $115.9 | $427.9 | $316.3 | |||||||
Operating Profit | $43.7 | $33.3 | $114.4 | $86.4 | |||||||
Operating Profit % | 27.3 | % | 28.7 | % | 26.7 | % | 27.3 | % |
Third quarter fiscal 2008 Industrial segment sales increased 38% to $160 million. Excluding foreign currency translation and acquisitions, Industrial segment core sales grew 14% driven by continued strong global demand for joint integrity products and services for the oil & gas and power generation markets, as well as high-force hydraulic tools. Operating profit margins in the third quarter benefited from higher volumes, pricing and continuous improvement initiatives; however, they declined slightly from the prior year due to unfavorable product mix, higher incentive compensation expense and investments in sales and marketing initiatives.
Electrical Segment | |||||||||||
(US $ in millions) | |||||||||||
Three Months Ended May 31, |
Nine Months Ended May 31, |
||||||||||
2008 | 2007 | 2008 | 2007 | ||||||||
Sales | $129.1 | $127.7 | $393.9 | $373.3 | |||||||
Operating Profit (1) | $8.1 | $10.3 | $29.7 | $29.2 | |||||||
Operating Profit % | 6.3 | % | 8.1 | % | 7.6 | % | 7.8 | % |
(1) Excludes European Electrical restructuring charges of $0.4 million for the three months ended May 31, 2007 and $10.5 million and $4.3 million for the nine months ended May 31, 2008 and 2007, respectively.
Fiscal 2008 third quarter Electrical segment sales increased 1% to $129 million. While revenues benefitted from foreign currency translation and the acquisition of BH Electronics (July 2007), core sales declined 10% reflecting weaker demand from consumer, marine and transformer customers as well as the impact of SKU reductions in European Electrical. Operating profit margin declined to 6.3% reflecting the lower production volumes as well as unfavorable sales mix, despite margin improvement in the European Electrical product line.
Actuation Systems Segment | |||||||||||
(US $ in millions) | |||||||||||
Three Months Ended May 31, |
Nine Months Ended May 31, |
||||||||||
2008 | 2007 | 2008 | 2007 | ||||||||
Sales | $122.9 | $111.8 | $345.5 | $315.1 | |||||||
Operating Profit | $13.7 | $11.0 | $32.1 | $27.6 | |||||||
Operating Profit % | 11.2 | % | 9.8 | % | 9.3 | % | 8.7 | % |
Actuation Systems segment third quarter fiscal 2008 sales increased 10% to $123 million. In addition to foreign currency translation, core sales grew 1% in the quarter driven by strong demand from the Company’s global truck customers as well as new automotive launches. Sales to the RV market, however, declined significantly due to lower RV OEM build rates caused by weak consumer demand. Segment operating profit margins increased 140 basis points over the prior year reflecting continued manufacturing efficiency improvements, price increases and favorable sales mix.
Engineered Products Segment | |||||||||||
(US $ in millions) | |||||||||||
Three Months Ended May 31, |
Nine Months Ended May 31, |
||||||||||
2008 | 2007 | 2008 | 2007 | ||||||||
Sales | $32.6 | $29.8 | $92.1 | $64.5 | |||||||
Operating Profit | $4.3 | $4.1 | $11.6 | $8.8 | |||||||
Operating Profit % | 13.1 | % | 13.6 | % | 12.6 | % | 13.7 | % |
Third quarter 2008 Engineered Products segment sales increased 9% from the prior year due to core growth and the weaker US dollar. Core growth of 6% resulted from increased demand in the agriculture, aerospace, utility and container hardware markets. Third quarter operating profit of $4.3 million was 5% higher than the prior year as base business margin expansion was partially offset by higher incentive compensation costs.
Financial Position
Net debt at May 31, 2008 was $496 million (total debt of $587 million less $91 million of cash), an increase of $9 million from the beginning of the quarter. During the quarter the Company completed the acquisition of Superior Plant Services for approximately $58 million which was largely offset by strong cash flow generation.
Outlook
The Company updated its fiscal year 2008 outlook to incorporate its actual third quarter performance. Full year fiscal 2008 EPS is expected to be in the range of $2.02-2.06 (excluding the tax gain and European Electrical restructuring charges) on sales of $1.67-1.68 billion. Fourth quarter EPS is projected to be in the $0.51-0.55 range.
Arzbaecher commented, “Actuant’s employees are driving hard in the final quarter of fiscal 2008 to deliver continued strong results for shareholders. We intend to carry this positive momentum into fiscal 2009, despite challenging economic conditions in North America. We are optimistic that the consistent execution of our business model will continue to reward shareholders with strong results. Ignoring future acquisitions, we are projecting fiscal 2009 EPS growth of 10-15% above the mid-point of our fiscal 2008 EPS guidance range, to $2.25-2.35, on sales of approximately $1.75 billion. We continue to pursue accretive acquisition opportunities which, when executed, will become incremental to this guidance. Given our diversity, variable cost structure and focus on continuous improvement, we believe we are well positioned to deliver another year of growth in 2009.”
Conference Call Information
An investor conference call is scheduled for 10:00am CDT today, June 19, 2008. Webcast information and conference call materials will be made available on Actuant's website (www.actuant.com) prior to the start of the call.
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 Form 10-K filed with the Securities and Exchange Commission for further information regarding risk factors. The Company disclaims any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or any other reason.
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 $1.6 billion and its market capitalization from $113 million to over $1.8 billion. The Company employs a workforce of more than 7,700 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.
(tables follow)
Actuant Corporation | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(Dollars in thousands) | ||||||||
(Unaudited) | ||||||||
May 31, | August 31, | |||||||
2008 | 2007 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ 91,079 | $ 86,680 | ||||||
Accounts receivable, net | 249,163 | 194,775 | ||||||
Inventories, net | 223,151 | 197,539 | ||||||
Deferred income taxes | 14,147 | 14,827 | ||||||
Other current assets | 13,810 | 11,459 | ||||||
Total current assets | 591,350 | 505,280 | ||||||
Property, plant and equipment, net | 136,308 | 122,817 | ||||||
Goodwill | 651,560 | 599,841 | ||||||
Other intangible assets, net | 300,352 | 260,418 | ||||||
Other long-term assets | 9,696 | 12,420 | ||||||
Total assets | $ 1,689,266 | $ 1,500,776 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Short-term borrowings | $ 2,218 | $ - | ||||||
Trade accounts payable | 178,877 | 153,205 | ||||||
Accrued compensation and benefits | 58,587 | 52,345 | ||||||
Income taxes payable | 28,176 | 20,309 | ||||||
Current maturities of long-term debt | 35 | 519 | ||||||
Other current liabilities | 71,325 | 64,449 | ||||||
Total current liabilities | 339,218 | 290,827 | ||||||
Long-term debt, less current maturities | 584,876 | 561,138 | ||||||
Deferred income taxes | 111,000 | 103,589 | ||||||
Pension and postretirement benefit accruals | 23,226 | 27,437 | ||||||
Other long-term liabilities | 26,444 | 17,864 | ||||||
Shareholders' equity | ||||||||
Capital stock | 11,179 | 11,070 | ||||||
Additional paid-in capital | (330,779 | ) | (349,190 | ) | ||||
Accumulated other comprehensive income | 20,051 | 12,876 | ||||||
Stock held in trust | (2,069 | ) | (1,744 | ) | ||||
Deferred compensation liability | 2,069 | 1,744 | ||||||
Retained earnings | 904,051 | 825,165 | ||||||
Total shareholders' equity | 604,502 | 499,921 | ||||||
Total liabilities and shareholders' equity | $ 1,689,266 | $ 1,500,776 |
Actuant Corporation | |||||||||
Condensed Consolidated Statements of Earnings | |||||||||
(Dollars in thousands except per share amounts) | |||||||||
(Unaudited) | |||||||||
Three Months Ended | Nine Months Ended | ||||||||
May 31, | May 31, | May 31, | May 31, | ||||||
2008 | 2007 | 2008 | 2007 | ||||||
Net sales | $ 444,656 | $ 385,090 | $ 1,259,428 | $ 1,069,093 | |||||
Cost of products sold | 290,684 | 255,504 | 830,783 | 716,218 | |||||
Gross profit | 153,972 | 129,586 | 428,645 | 352,875 | |||||
Selling, administrative and engineering expenses | 88,421 | 73,772 | 252,396 | 207,837 | |||||
Restructuring charge | - | 434 | 10,473 | 4,319 | |||||
Amortization of intangible assets | 4,023 | 2,906 | 10,741 | 7,819 | |||||
Operating profit | 61,528 | 52,474 | 155,035 | 132,900 | |||||
Financing costs, net | 9,190 | 9,075 | 27,522 | 24,185 | |||||
Other (income) expense, net | 201 | 660 | (1,579) | 1,632 | |||||
Earnings from operations before income | |||||||||
tax expense and minority interest | 52,137 | 42,739 | 129,092 | 107,083 | |||||
Income tax expense | 13,465 | 13,146 | 40,767 | 33,480 | |||||
Minority interest, net of income taxes | 37 | 11 | 24 | 3 | |||||
Net earnings | $ 38,635 | $ 29,582 | $ 88,301 | $ 73,600 | |||||
Earnings per share | |||||||||
Basic | $ 0.69 | $ 0.54 | $ 1.58 | $ 1.35 | |||||
Diluted | 0.60 | 0.47 | 1.39 | 1.19 | |||||
Weighted average common shares outstanding | |||||||||
Basic | 55,874 | 54,684 | 55,766 | 54,646 | |||||
Diluted | 64,945 | 63,621 | 64,770 | 63,505 |
Actuant Corporation | ||||||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||||||
(In thousands) | ||||||||||||
(Unaudited) | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
May 31, | May 31, | May 31, | May 31, | |||||||||
2008 | 2007 | 2008 | 2007 | |||||||||
Operating Activities | ||||||||||||
Net earnings | $ 38,635 | $ 29,582 | $ 88,301 | $ 73,600 | ||||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: |
||||||||||||
Depreciation and amortization | 11,434 | 9,167 | 32,926 | 25,888 | ||||||||
Stock-based compensation expense | 1,750 | 1,337 | 4,890 | 4,087 | ||||||||
Provision for deferred income taxes | 311 | 752 | 6,990 | (2,402 | ) | |||||||
Other | (326 | ) | (702 | ) | (541 | ) | 63 | |||||
Changes in operating assets and liabilities, excluding the effects of the business acquisitions | ||||||||||||
Accounts receivable | (9,796 | ) | 3,695 | (34,851 | ) | (6,435 | ) | |||||
Accounts receivable securitization program | 4,714 | 20,237 | 5,045 | 14,121 | ||||||||
Inventories | (1,886 | ) | (1,152 | ) | (8,066 | ) | (8,971 | ) | ||||
Prepaid expenses and other assets | (231 | ) | (2,732 | ) | 1,744 | (4,043 | ) | |||||
Trade accounts payable | 9,951 | 34,402 | 14,713 | 19,196 | ||||||||
Income taxes payable | (2,934 | ) | 8,211 | (1,278 | ) | 4,441 | ||||||
Other accrued liabilities | 12,726 | 15,259 | 15,319 | 9,869 | ||||||||
Net cash provided by operating activities | 64,348 | 118,056 | 125,192 | 129,414 | ||||||||
Investing Activities | ||||||||||||
Proceeds from sale of property, plant and equipment | 2,097 | 1,330 | 13,676 | 4,119 | ||||||||
Capital expenditures | (13,268 | ) | (7,757 | ) | (32,502 | ) | (20,494 | ) | ||||
Business acquisitions, net of cash acquired | (59,043 | ) | (22,531 | ) | (110,109 | ) | (132,590 | ) | ||||
Net cash used in investing activities | (70,214 | ) | (28,958 | ) | (128,935 | ) | (148,965 | ) | ||||
Financing Activities | ||||||||||||
Net borrowings (repayments) on revolving credit facilities and short-term borrowings |
15 | (36,364 | ) | 2,155 | (80,355 | ) | ||||||
Proceeds from term loan | - | - | - | 155,737 | ||||||||
Principal repayments on term loans | (7 | ) | (4,608 | ) | (1,008 | ) | (7,077 | ) | ||||
Cash dividend | - | - | (2,221 | ) | (2,187 | ) | ||||||
Stock option exercises, related tax benefits, and other | 872 | 328 | 4,210 | 335 | ||||||||
Net cash provided by financing activities | 880 | (40,644 | ) | 3,136 | 66,453 | |||||||
Effect of exchange rate changes on cash | 1,153 | 398 | 5,006 | 1,142 | ||||||||
Net increase (decrease) in cash and cash equivalents | (3,833 | ) | 48,852 | 4,399 | 48,044 | |||||||
Cash and cash equivalents - beginning of period | 94,912 | 24,851 | 86,680 | 25,659 | ||||||||
Cash and cash equivalents - end of period | $ 91,079 | $ 73,703 | $ 91,079 | $ 73,703 |
ACTUANT CORPORATION | |||||||||||||||||||||||||||||||
SUPPLEMENTAL UNAUDITED DATA | |||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||
FISCAL 2007 | FISCAL 2008 | ||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | TOTAL | Q1 | Q2 | Q3 | Q4 | TOTAL | ||||||||||||||||||||||
SALES | |||||||||||||||||||||||||||||||
INDUSTRIAL SEGMENT | $ 103,935 | $ 96,501 | $ 115,852 | $ 122,855 | $ 439,143 | $ 137,089 | $ 130,802 | $ 160,035 | $ 427,926 | ||||||||||||||||||||||
ELECTRICAL SEGMENT | 122,017 | 123,599 | 127,653 | 132,439 | 505,708 | 133,962 | 130,779 | 129,142 | 393,883 | ||||||||||||||||||||||
ACTUATION SYSTEMS SEGMENT | 105,654 | 97,656 | 111,768 | 104,367 | 419,445 | 112,899 | 109,764 | 122,850 | 345,513 | ||||||||||||||||||||||
ENGINEERED PRODUCTS SEGMENT | 11,377 | 23,264 | 29,817 | 29,994 | 94,452 | 31,193 | 28,284 | 32,629 | 92,106 | ||||||||||||||||||||||
TOTAL | $ 342,983 | $ 341,020 | $ 385,090 | $ 389,655 | $ 1,458,748 | $ 415,143 | $ 399,629 | $ 444,656 | $ 1,259,428 | ||||||||||||||||||||||
% SALES GROWTH | |||||||||||||||||||||||||||||||
INDUSTRIAL SEGMENT | 31 | % | 34 | % | 34 | % | 22 | % | 30 | % | 32 | % | 36 | % | 38 | % | 35 | % | |||||||||||||
ELECTRICAL SEGMENT | 16 | % | 17 | % | 17 | % | 18 | % | 17 | % | 10 | % | 6 | % | 1 | % | 6 | % | |||||||||||||
ACTUATION SYSTEMS SEGMENT | 19 | % | 11 | % | 2 | % | 4 | % | 9 | % | 7 | % | 12 | % | 10 | % | 10 | % | |||||||||||||
ENGINEERED PRODUCTS SEGMENT | 7 | % | 120 | % | 157 | % | 159 | % | 112 | % | 174 | % | 22 | % | 9 | % | 43 | % | |||||||||||||
TOTAL | 21 | % | 24 | % | 22 | % | 20 | % | 21 | % | 21 | % | 17 | % | 15 | % | 18 | % | |||||||||||||
OPERATING PROFIT | |||||||||||||||||||||||||||||||
INDUSTRIAL SEGMENT | $ 28,958 | $ 24,203 | $ 33,259 | $ 34,865 | $ 121,285 | $ 37,976 | $ 32,757 | $ 43,692 | $ 114,425 | ||||||||||||||||||||||
ELECTRICAL SEGMENT | 9,357 | 9,535 | 10,341 | 10,851 | 40,084 | 10,426 | 11,239 | 8,074 | 29,738 | ||||||||||||||||||||||
ACTUATION SYSTEMS SEGMENT | 8,614 | 7,954 | 10,994 | 9,562 | 37,124 | 10,059 | 8,301 | 13,705 | 32,065 | ||||||||||||||||||||||
ENGINEERED PRODUCTS SEGMENT | 1,653 | 3,088 | 4,069 | 4,644 | 13,454 | 4,235 | 3,146 | 4,260 | 11,641 | ||||||||||||||||||||||
CORPORATE / GENERAL | (4,944 | ) | (4,105 | ) | (5,756 | ) | (6,274 | ) | (21,079 | ) | (6,415 | ) | (7,743 | ) | (8,203 | ) | (22,361 | ) | |||||||||||||
TOTAL - EXCLUDING RESTRUCTURING CHARGE | $ 43,638 | $ 40,675 | $ 52,907 | $ 53,648 | $ 190,868 | $ 56,281 | $ 47,700 | $ 61,528 | $ 165,508 | ||||||||||||||||||||||
EUROPEAN ELECTRICAL RESTRUCTURING CHARGE | (109 | ) | (3,776 | ) | (434 | ) | (1,076 | ) | (5,395 | ) | (5,521 | ) | (4,952 | ) | - | (10,473 | ) | ||||||||||||||
TOTAL | $ 43,529 | $ 36,899 | $ 52,473 | $ 52,572 | $ 185,473 | $ 50,760 | $ 42,748 | $ 61,528 | $ 155,035 | ||||||||||||||||||||||
OPERATING PROFIT % | |||||||||||||||||||||||||||||||
INDUSTRIAL SEGMENT | 27.9 | % | 25.1 | % | 28.7 | % | 28.4 | % | 27.6 | % | 27.7 | % | 25.0 | % | 27.3 | % | 26.7 | % | |||||||||||||
ELECTRICAL SEGMENT | 7.7 | % | 7.7 | % | 8.1 | % | 8.2 | % | 7.9 | % | 7.8 | % | 8.6 | % | 6.3 | % | 7.6 | % | |||||||||||||
ACTUATION SYSTEMS SEGMENT | 8.2 | % | 8.1 | % | 9.8 | % | 9.2 | % | 8.9 | % | 8.9 | % | 7.6 | % | 11.2 | % | 9.3 | % | |||||||||||||
ENGINEERED PRODUCTS SEGMENT | 14.5 | % | 13.3 | % | 13.6 | % | 15.5 | % | 14.2 | % | 13.6 | % | 11.1 | % | 13.1 | % | 12.6 | % | |||||||||||||
TOTAL (INCLUDING CORPORATE) - EXCLUDING RESTRUCTURING CHARGE | 12.7 | % | 11.9 | % | 13.7 | % | 13.8 | % | 13.1 | % | 13.6 | % | 11.9 | % | 13.8 | % | 13.1 | % | |||||||||||||
EBITDA | |||||||||||||||||||||||||||||||
INDUSTRIAL SEGMENT | $ 31,356 | $ 26,475 | $ 35,738 | $ 39,156 | $ 132,725 | $ 42,570 | $ 37,386 | $ 48,388 | $ 128,344 | ||||||||||||||||||||||
ELECTRICAL SEGMENT | 11,543 | 11,404 | 12,355 | 13,501 | 48,803 | 13,226 | 13,661 | 10,562 | 37,449 | ||||||||||||||||||||||
ACTUATION SYSTEMS SEGMENT | 11,339 | 10,928 | 14,179 | 12,547 | 48,993 | 13,292 | 11,428 | 16,402 | 41,122 | ||||||||||||||||||||||
ENGINEERED PRODUCTS SEGMENT | 1,904 | 3,986 | 4,962 | 5,780 | 16,632 | 5,399 | 4,445 | 5,400 | 15,244 | ||||||||||||||||||||||
CORPORATE / GENERAL | (4,844 | ) | (4,028 | ) | (5,822 | ) | (6,350 | ) | (21,044 | ) | (6,632 | ) | (7,522 | ) | (7,991 | ) | (22,145 | ) | |||||||||||||
TOTAL - EXCLUDING RESTRUCTURING CHARGE | $ 51,298 | $ 48,765 | $ 61,412 | $ 64,634 | $ 226,109 | $ 67,855 | $ 59,398 | $ 72,761 | $ 200,014 | ||||||||||||||||||||||
EUROPEAN ELECTRICAL RESTRUCTURING CHARGE | (109 | ) | (3,776 | ) | (434 | ) | (1,076 | ) | (5,395 | ) | (5,521 | ) | (4,952 | ) | - | (10,473 | ) | ||||||||||||||
TOTAL | $ 51,189 | $ 44,989 | $ 60,978 | $ 63,558 | $ 220,714 | $ 62,334 | $ 54,446 | $ 72,761 | $ 189,541 | ||||||||||||||||||||||
EBITDA % | |||||||||||||||||||||||||||||||
INDUSTRIAL SEGMENT | 30.2 | % | 27.4 | % | 30.8 | % | 31.9 | % | 30.2 | % | 31.1 | % | 28.6 | % | 30.2 | % | 30.0 | % | |||||||||||||
ELECTRICAL SEGMENT | 9.5 | % | 9.2 | % | 9.7 | % | 10.2 | % | 9.7 | % | 9.9 | % | 10.4 | % | 8.2 | % | 9.5 | % | |||||||||||||
ACTUATION SYSTEMS SEGMENT | 10.7 | % | 11.2 | % | 12.7 | % | 12.0 | % | 11.7 | % | 11.8 | % | 10.4 | % | 13.4 | % | 11.9 | % | |||||||||||||
ENGINEERED PRODUCTS SEGMENT | 16.7 | % | 17.1 | % | 16.6 | % | 19.3 | % | 17.6 | % | 17.3 | % | 15.7 | % | 16.5 | % | 16.6 | % | |||||||||||||
TOTAL (INCLUDING CORPORATE) - EXCLUDING RESTRUCTURING CHARGE | 15.0 | % | 14.3 | % | 15.9 | % | 16.6 | % | 15.5 | % | 16.3 | % | 14.9 | % | 16.4 | % | 15.9 | % |
Note: | All prior periods have been restated to include Milwaukee Cylinder as part of the Industrial Segment. Previously this business was part of the Engineered Products Segment. | |
The total of the individual quarters may not equal the annual total due to rounding. |
ACTUANT CORPORATION | |||||||||||||||||||||||||||||
Reconciliation of GAAP measures to non-GAAP measures | |||||||||||||||||||||||||||||
(Dollars in thousands, except for per share amounts) | |||||||||||||||||||||||||||||
FISCAL 2007 | FISCAL 2008 | ||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | TOTAL | Q1 | Q2 | Q3 | Q4 | TOTAL | ||||||||||||||||||||
NET EARNINGS EXCLUDING RESTRUCTURING CHARGE | |||||||||||||||||||||||||||||
AND TAX ADJUSTMENTS / CREDITS (1) | |||||||||||||||||||||||||||||
NET EARNINGS (GAAP MEASURE) |
$ 25,102 | $ 18,919 | $ 29,580 | $ 31,351 | $ 104,952 | $ 27,427 | $ 22,239 | $ 38,635 | $ 88,301 | ||||||||||||||||||||
RESTRUCTURING CHARGES, NET OF TAX BENEFIT | 109 | 2,926 | 434 | 1,076 | 4,545 | 5,521 | 4,729 | - | 10,250 | ||||||||||||||||||||
TAX ADJUSTMENTS / CREDITS | - | - | - | (1,580 | ) | (1,580 | ) | - | - | (2,625 | ) | (2,625 | ) | ||||||||||||||||
TOTAL (NON-GAAP MEASURE) | $ 25,211 | $ 21,845 | $ 30,014 | $ 30,847 | $ 107,917 | $ 32,948 | $ 26,968 | $ 36,010 | $ 95,926 | ||||||||||||||||||||
DILUTED EARNINGS PER SHARE EXCLUDING RESTRUCTURING | |||||||||||||||||||||||||||||
CHARGE AND TAX ADJUSTMENTS / CREDITS (1) | |||||||||||||||||||||||||||||
NET EARNINGS (GAAP MEASURE) | $ 0.41 | $ 0.31 | $ 0.47 | $ 0.50 | $ 1.69 | $ 0.43 | $ 0.35 | $ 0.60 | $ 1.39 | ||||||||||||||||||||
RESTRUCTURING CHARGES, NET OF TAX BENEFIT | - | 0.05 | 0.01 | 0.02 | 0.07 | 0.09 | 0.07 | - | 0.16 | ||||||||||||||||||||
TAX ADJUSTMENTS / CREDITS | - | - | - | (0.02 | ) | (0.02 | ) | - | - | (0.04 | ) | (0.04 | ) | ||||||||||||||||
TOTAL (NON-GAAP MEASURE) | $ 0.41 | $ 0.35 | $ 0.48 | $ 0.49 | $ 1.73 | $ 0.52 | $ 0.43 | $ 0.56 | $ 1.51 | ||||||||||||||||||||
EBITDA (2) | |||||||||||||||||||||||||||||
NET EARNINGS (GAAP MEASURE) | $ 25,102 | $ 18,919 | $ 29,580 | $ 31,351 | $ 104,952 | $ 27,427 | $ 22,239 | $ 38,635 | $ 88,301 | ||||||||||||||||||||
FINANCING COSTS, NET | 6,841 | 8,268 | 9,076 | 8,816 | 33,001 | 9,300 | 9,032 | 9,190 | 27,522 | ||||||||||||||||||||
INCOME TAX EXPENSE | 11,379 | 8,956 | 13,146 | 13,300 | 46,781 | 15,149 | 12,154 | 13,465 | 40,768 | ||||||||||||||||||||
DEPRECIATION & AMORTIZATION | 7,877 | 8,844 | 9,165 | 10,137 | 36,023 | 10,464 | 11,028 | 11,434 | 32,926 | ||||||||||||||||||||
MINORITY INTEREST, NET OF INCOME TAX | (10 | ) | 2 | 11 | (46 | ) | (43 | ) | (6 | ) | (7 | ) | 37 | 24 | |||||||||||||||
EBITDA (NON-GAAP MEASURE) | $ 51,189 | $ 44,989 | $ 60,978 | $ 63,558 | $ 220,714 | $ 62,334 | $ 54,446 | $ 72,761 | $ 189,541 | ||||||||||||||||||||
EUROPEAN ELECTRICAL RESTRUCTURING CHARGE | 109 | 3,776 | 434 | 1,076 | 5,395 | 5,521 | 4,952 | - | 10,473 | ||||||||||||||||||||
EBITDA (NON-GAAP MEASURE) - EXCLUDING RESTRUCTURING CHARGE | $ 51,298 | $ 48,765 | $ 61,412 | $ 64,634 | $ 226,109 | $ 67,855 | $ 59,398 | $ 72,761 | $ 200,014 |
(1) | Net earnings and diluted earnings per share excluding restructuring charges and income tax adjustments / credits 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. The total of the individual components do not equal diluted earnings per share excluding restructuring charges and income tax adjustments / credits due to rounding. | ||
(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. The total of the individual quarters may not equal the annual total due to rounding. |
CONTACT:
Actuant Corporation
Karen Bauer
Director,
Investor Relations
262-373-7462