Exhibit 99.1
Actuant Reports Second Quarter Results
MILWAUKEE--(BUSINESS WIRE)--March 18, 2009--Actuant Corporation (NYSE: ATU) today announced sales and earnings for its second quarter ended February 28, 2009.
Highlights
Robert C. Arzbaecher, Chairman and CEO of Actuant commented, “During our seasonally weakest second quarter, Actuant experienced increasingly difficult market conditions due to the challenging global economic environment. Our results reflect the impact of weak end market demand, extended customer shutdowns, and our own inventory reduction efforts. While overall core sales declined 27% in the quarter, we generated year-over-year core growth in our maintenance driven Energy segment and in some of our smaller businesses. We have and will continue to implement aggressive restructuring and cost reduction actions to help offset the impact of weaker demand. We have reduced headcount, consolidated facilities, eliminated shifts and established short work week schedules to better align our production, inventory and costs with lower customer demand. These actions drove a 10% headcount reduction in our second quarter alone. In keeping with our focus on cash flow, we reduced primary working capital during the quarter and generated free cash flow of $28 million.”
Consolidated Results
Sales for the quarter declined 25% to $300 million compared to $400 million in the second quarter of fiscal 2008. Excluding the impact of foreign currency rate changes (-4%) and acquisitions (+6%), core sales declined 27%.
Net income and diluted earnings per share (EPS) in the fiscal 2009 second quarter were $3.2 million and $0.06, respectively, compared to $22.2 million and $0.35, respectively, in the comparable quarter last year. Results for the second quarter of 2009 include restructuring charges of $3.1 million, or $0.03 per diluted share. Second quarter 2008 results include restructuring charges of $5.0 million, or $0.07 per diluted share. Excluding these items, EPS was $0.09 in the second quarter of fiscal 2009 compared to $0.43 in the prior year’s quarter. (See attached reconciliation of earnings).
Sales for the six months ended February 28, 2009 were $680 million, 17% lower than the $815 million in the comparable prior year period. Excluding the impact of the stronger US dollar (-4%) and sales from acquired businesses (+6%), year-to-date core sales decreased 19%.
Net earnings for the six months ended February 28, 2009 were $14.8 million, or $0.25 per diluted share, compared to $49.7 million, or $0.79 per diluted share for the comparable prior year period. Year-to-date fiscal 2009 results include a $26.6 million ($0.26 per diluted share) non-cash charge related to RV goodwill impairment and $3.9 million ($0.03 per diluted share) of restructuring charges. Results for the six months ended February 29, 2008 include $10.5 million ($0.16 per diluted share) of restructuring charges. Excluding these items, current year first half EPS was $0.54, compared to $0.95 for the comparable prior year period. (See attached reconciliation of earnings).
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Segment Results |
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Industrial Segment |
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(US $ in millions) |
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| Three Months Ended | Six Months Ended | |||||||||||
| February 28, 2009 | February 29, 2008 | February 28, 2009 | February 29, 2008 | |||||||||
| Sales | $71.7 | $87.3 | $162.2 | $174.8 | ||||||||
| Operating Profit (1) | $16.0 | $26.0 | $42.1 | $51.7 | ||||||||
| Operating Profit % | 22.3 | % | 29.8 | % | 25.9 | % | 29.5 | % | ||||
(1) Results for the three and six months ended February 28, 2009 exclude restructuring charges of $0.4 million and $0.5 million, respectively.
Second quarter fiscal 2009 Industrial segment sales decreased 18% to $72 million. Excluding foreign currency rate changes (-5%), Industrial segment core sales were 13% lower than the comparable prior year period. The core sales decline reflected weaker global end market demand across the segment’s diverse channels as well as customer inventory destocking. Second quarter operating profit margin declined 750 basis points from the prior year due to the reduced sales volume, unfavorable mix and lower absorption associated with inventory reductions.
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Energy Segment |
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(US $ in millions) |
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| Three Months Ended | Six Months Ended | |||||||||||
| February 28, 2009 | February 29, 2008 | February 28, 2009 | February 29, 2008 | |||||||||
| Sales | $59.5 | $43.5 | $133.5 | $93.1 | ||||||||
| Operating Profit | $5.9 | $6.8 | $21.5 | $19.1 | ||||||||
| Operating Profit % | 9.9 | % | 15.6 | % | 16.1 | % | 20.5 | % | ||||
Fiscal 2009 second quarter Energy segment sales grew 37% to $60 million. The acquisitions of Cortland and Superior Plant Services contributed 48% to sales while the stronger US dollar reduced sales by 16%. Core sales grew 5% due to higher demand for oil & gas and power generation maintenance products and services. Operating profit margin for this seasonally weak quarter was 9.9% reflecting unfavorable acquisition mix partially offset by the higher volume.
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Electrical Segment |
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(US $ in millions) |
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| Three Months Ended | Six Months Ended | |||||||||||
| February 28, 2009 | February 29, 2008 | February 28, 2009 | February 29, 2008 | |||||||||
| Sales | $91.8 | $135.8 | $199.8 | $276.1 | ||||||||
| Operating Profit (2) | $0.4 | $11.8 | $5.1 | $23.5 | ||||||||
| Operating Profit % | 0.4 | % | 8.7 | % | 2.6 | % | 8.5 | % | ||||
(2) Results for the three and six months ended February 28, 2009 exclude restructuring charges of $1.3 million and $1.4 million, respectively. Results for the three and six months ended February 29, 2008 exclude restructuring charges of $5.0 million and $10.5 million, respectively.
Electrical segment fiscal 2009 second quarter sales declined 32% to $92 million. Core sales decreased 29% reflecting continued weak demand from marine, retail and transformer customers, the impact of SKU reductions in the European Electrical product line and the previously disclosed loss of certain retail business in North America in the second half of fiscal 2008. The stronger US dollar contributed 3% to the core sales decline. Segment operating profit margin declined to 0.4% primarily reflecting lower sales and production volumes. Total headcount declined approximately 8% during the quarter and has been reduced by approximately 30% during the past year.
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Engineered Solutions Segment |
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(US $ in millions) |
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| Three Months Ended | Six Months Ended | |||||||
| February 28, 2009 | February 29, 2008 | February 28, 2009 | February 29, 2008 | |||||
| Sales | $76.7 | $133.0 | $184.1 | $270.8 | ||||
| Operating Profit (3) | $(2.1) | $10.8 | $6.5 | $24.0 | ||||
| Operating Profit % | (2.7)% | 8.2% | 3.6% | 8.8% | ||||
(3) Results for the three months ended February 28, 2009 exclude restructuring charges of $1.3 million. Results for the six months ended February 28, 2009 exclude a $26.6 million pre-tax RV asset impairment charge and $1.7 million in restructuring charges.
Second quarter fiscal 2009 Engineered Solutions sales declined 42% (-42% core, -3% currency translation and +3% acquisitions) reflecting sharply lower demand from the Company’s vehicle end markets. The segment incurred an operating loss of $2.1 million due to the significant reduction in sales and lower manufacturing overhead absorption. The segment’s headcount was reduced by approximately 18% during the quarter.
Corporate
Corporate expenses for the second quarter of fiscal 2009 were approximately $5.0 million, or $2.7 million lower than the comparable prior year period due to lower incentive compensation expense, headcount reductions and reduced spending.
Financial Position
Net debt at February 28, 2009 was $658 million (total debt of $680 million less $22 million of cash). The decrease of $12 million from the beginning of the quarter reflects free cash flow which was partially offset by an $11 million decline in amounts outstanding under Actuant’s accounts receivable securitization facility.
The Company had over $175 million of available liquidity at February 28, 2009 including cash and revolver availability. With less than $6 million of required debt repayments over the next twelve months, and positive cash flow forecasted during the balance of fiscal 2009, Actuant expects to further reduce outstanding borrowings.
Outlook
Arzbaecher continued “While visibility remains low, we do not expect a rebound in consumer or industrial demand to materialize during the second half of our fiscal year. Accordingly, we will continue to reduce costs and maximize cash flow. Given this backdrop, we expect our third quarter sales and EPS to be in the range of $300-320 million, and $0.12-0.20 per share, respectively. Our current projection for the full year is for sales and EPS to be in the range of approximately $1.3 billion, and $0.85-$1.00 per share, respectively. We remain confident in the fundamental strength of the Actuant businesses, have the right long term growth strategies in place and maintain the confidence and operating experience to manage through this difficult current environment."
Conference Call Information
An investor conference call is scheduled for 10am CT today, March 18, 2009. Webcast information and conference call materials will be made available on the Actuant company 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.
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, rope and cable solutions 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 $1.66 billion in fiscal 2008. The Company employs a workforce of approximately 6,600 worldwide. Actuant 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) | |||||||||||
| February 28, | August 31, | ||||||||||
| 2009 | 2008 | ||||||||||
| ASSETS | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ 22,329 | $ 122,549 | |||||||||
| Accounts receivable, net | 166,857 | 226,564 | |||||||||
| Inventories, net | 205,513 | 215,391 | |||||||||
| Deferred income taxes | 11,472 | 11,870 | |||||||||
| Other current assets | 13,647 | 16,092 | |||||||||
| Total current assets | 419,818 | 592,466 | |||||||||
| Property, plant and equipment, net | 134,238 | 134,550 | |||||||||
| Goodwill | 702,254 | 639,862 | |||||||||
| Other intangible assets, net | 364,476 | 292,359 | |||||||||
| Other long-term assets | 12,620 | 9,145 | |||||||||
| Total assets | $ 1,633,406 | $ 1,668,382 | |||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
| Current liabilities | |||||||||||
| Short-term borrowings | $ 2,865 | $ 339 | |||||||||
| Trade accounts payable | 109,727 | 166,863 | |||||||||
| Accrued compensation and benefits | 34,078 | 59,023 | |||||||||
| Income taxes payable | 14,053 | 24,867 | |||||||||
| Current maturities of long-term debt | 5,766 | - | |||||||||
| Other current liabilities | 51,792 | 60,033 | |||||||||
| Total current liabilities | 218,281 | 311,125 | |||||||||
| Long-term debt, less current maturities | 671,993 | 573,818 | |||||||||
| Deferred income taxes | 119,029 | 99,634 | |||||||||
| Pension and postretirement benefit accruals | 25,778 | 27,641 | |||||||||
| Other long-term liabilities | 27,685 | 26,658 | |||||||||
| Shareholders' equity | |||||||||||
| Capital stock | 11,339 | 11,200 | |||||||||
| Additional paid-in capital | (316,401 | ) | (324,898 | ) | |||||||
| Accumulated other comprehensive income (loss) | (75,182 | ) | 7,149 | ||||||||
| Stock held in trust | (2,291 | ) | (2,081 | ) | |||||||
| Deferred compensation liability | 2,291 | 2,081 | |||||||||
| Retained earnings | 950,884 | 936,055 | |||||||||
| Total shareholders' equity | 570,640 | 629,506 | |||||||||
| Total liabilities and shareholders' equity | $ 1,633,406 | $ 1,668,382 | |||||||||
| Actuant Corporation | ||||||||||||
| Condensed Consolidated Statements of Earnings | ||||||||||||
| (Dollars in thousands except per share amounts) | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||
| February 28, | February 29, | February 28, | February 29, | |||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||
| Net sales | $ 299,674 | $ 399,629 | $ 679,654 | $ 814,772 | ||||||||
| Cost of products sold | 204,594 | 265,789 | 452,682 | 540,099 | ||||||||
| Gross profit | 95,080 | 133,840 | 226,972 | 274,673 | ||||||||
| Selling, administrative and engineering expenses | 74,729 | 82,679 | 150,215 | 163,976 | ||||||||
| Restructuring charges | 3,144 | 4,952 | 3,876 | 10,472 | ||||||||
| Impairment charge | - | - | 26,553 | - | ||||||||
| Amortization of intangible assets | 5,209 | 3,461 | 9,666 | 6,718 | ||||||||
| Operating profit | 11,998 | 42,748 | 36,662 | 93,507 | ||||||||
| Financing costs, net | 9,904 | 9,032 | 22,139 | 18,331 | ||||||||
| Other (income) expense, net | (35 | ) | (670 | ) | (569 | ) | (1,780 | ) | ||||
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Earnings from operations before income |
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tax expense and minority interest |
2,129 | 34,386 | 15,092 | 76,956 | ||||||||
| Income tax expense (benefit) | (1,105 | ) | 12,154 | 265 | 27,302 | |||||||
| Minority interest, net of income taxes | (10 | ) | (7 | ) | (15 | ) | (12 | ) | ||||
| Net earnings | $ 3,244 | $ 22,239 | $ 14,842 | $ 49,666 | ||||||||
| Earnings per share | ||||||||||||
| Basic | $ 0.06 | $ 0.40 | $ 0.26 | $ 0.89 | ||||||||
| Diluted | 0.06 | 0.35 | 0.25 | 0.79 | ||||||||
| Weighted average common shares outstanding | ||||||||||||
| Basic | 56,170 | 55,815 | 56,096 | 55,712 | ||||||||
| Diluted | 64,256 | 64,716 | 64,325 | 64,691 | ||||||||
| Actuant Corporation | ||||||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||||||
| (In thousands) | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||
| February 28, | February 29, | February 28, | February 29, | |||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||
| Operating Activities | ||||||||||||
| Net earnings | $ 3,244 | $ 22,239 | 14,842 | $ 49,666 | ||||||||
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Adjustments to reconcile net earnings to net cash provided by operating activities: |
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| Depreciation and amortization | 12,998 | 11,028 | 25,744 | 21,492 | ||||||||
| Stock-based compensation expense | 1,911 | 1,537 | 3,448 | 3,140 | ||||||||
| Provision (benefit) for deferred income taxes | - | 459 | (10,360 | ) | 6,679 | |||||||
| Impairment charge | - | - | 26,553 | - | ||||||||
| Other | 990 | (407 | ) | 1,054 | (215 | ) | ||||||
| Changes in operating assets and liabilities, excluding the effects of the business acquisitions | ||||||||||||
| Accounts receivable | 53,827 | (2,288 | ) | 58,801 | (25,055 | ) | ||||||
| Accounts receivable securitization program | (11,052 | ) | (4,593 | ) | (10,569 | ) | 331 | |||||
| Inventories | 15,628 | 844 | 10,296 | (6,180 | ) | |||||||
| Prepaid expenses and other assets | 2,153 | 1,027 | 2,115 | 1,975 | ||||||||
| Trade accounts payable | (36,902 | ) | 4,524 | (56,585 | ) | 4,762 | ||||||
| Income taxes payable | (9,498 | ) | (796 | ) | (7,603 | ) | 1,656 | |||||
| Other accrued liabilities | (12,198 | ) | (1,454 | ) | (24,117 | ) | 2,593 | |||||
| Net cash provided by operating activities | 21,101 | 32,120 | 33,619 | 60,844 | ||||||||
| Investing Activities | ||||||||||||
| Proceeds from sale of property, plant and equipment | 196 | 3,258 | 290 | 11,579 | ||||||||
| Capital expenditures | (4,873 | ) | (10,198 | ) | (12,507 | ) | (19,234 | ) | ||||
| Business acquisitions, net of cash acquired | (4,104 | ) | (3,629 | ) | (235,872 | ) | (51,066 | ) | ||||
| Net cash used in investing activities | (8,781 | ) | (10,569 | ) | (248,089 | ) | (58,721 | ) | ||||
| Financing Activities | ||||||||||||
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Net borrowings (repayments) on revolving credit facilities and other debt |
(19,786 | ) | 1,999 | 168,209 | 2,133 | |||||||
| Proceeds from term loan | - | - | 115,000 | - | ||||||||
| Principal repayments on term loans | - | - | (155,000 | ) | (994 | ) | ||||||
| Debt issuance and amendment costs | - | - | (5,333 | ) | (2,221 | ) | ||||||
| Cash dividend | - | - | (2,251 | ) | - | |||||||
| Stock option exercises, related tax benefits, and other | 397 | 1,325 | 2,876 | 3,338 | ||||||||
| Net cash provided by (used in ) financing activities | (19,389 | ) | 3,324 | 123,501 | 2,256 | |||||||
| Effect of exchange rate changes on cash | (820 | ) | 1,296 | (9,251 | ) | 3,853 | ||||||
| Net decrease in cash and cash equivalents | (7,889 | ) | 26,171 | (100,220 | ) | 8,232 | ||||||
| Cash and cash equivalents - beginning of period | 30,218 | 68,741 | 122,549 | 86,680 | ||||||||
| Cash and cash equivalents - end of period | $ 22,329 | $ 94,912 | $ 22,329 | $ 94,912 | ||||||||
| ACTUANT CORPORATION | ||||||||||||||||||||||||||||||
| SUPPLEMENTAL UNAUDITED DATA | ||||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||
| FISCAL 2008 | FISCAL 2009 | |||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | TOTAL | Q1 | Q2 | Q3 | Q4 | TOTAL | |||||||||||||||||||||
| SALES | ||||||||||||||||||||||||||||||
| INDUSTRIAL SEGMENT | $ 87,412 | $ 87,344 | $ 101,593 | $ 98,149 | $ 374,498 | $ 90,524 | $ 71,682 | $ 162,206 | ||||||||||||||||||||||
| ENERGY SEGMENT | 49,677 | 43,458 | 58,442 | 60,823 | 212,400 | 73,982 | 59,526 | 133,508 | ||||||||||||||||||||||
| ELECTRICAL SEGMENT | 140,293 | 135,785 | 135,311 | 118,575 | 529,964 | 108,057 | 91,788 | 199,845 | ||||||||||||||||||||||
| ENGINEERED SOLUTIONS SEGMENT | 137,761 | 133,042 | 149,310 | 126,968 | 547,081 | 107,417 | 76,678 | 184,095 | ||||||||||||||||||||||
| TOTAL | $ 415,143 | $ 399,629 | $ 444,656 | $ 404,515 | $ 1,663,943 | $ 379,980 | $ 299,674 | $ 679,654 | ||||||||||||||||||||||
| % SALES GROWTH | ||||||||||||||||||||||||||||||
| INDUSTRIAL SEGMENT | 37 | % | 33 | % | 38 | % | 30 | % | 34 | % | 4 | % | -18 | % | -7 | % | ||||||||||||||
| ENERGY SEGMENT | 24 | % | 41 | % | 38 | % | 29 | % | 32 | % | 49 | % | 37 | % | 43 | % | ||||||||||||||
| ELECTRICAL SEGMENT | 10 | % | 6 | % | 1 | % | -14 | % | 0 | % | -23 | % | -32 | % | -28 | % | ||||||||||||||
| ENGINEERED SOLUTIONS SEGMENT | 23 | % | 15 | % | 10 | % | -1 | % | 11 | % | -22 | % | -42 | % | -32 | % | ||||||||||||||
| TOTAL | 21 | % | 17 | % | 15 | % | 4 | % | 14 | % | -8 | % | -25 | % | -17 | % | ||||||||||||||
| OPERATING PROFIT | ||||||||||||||||||||||||||||||
| INDUSTRIAL SEGMENT | $ 25,662 | $ 25,990 | $ 31,054 | $ 31,103 | $ 113,809 | $ 26,107 | $ 15,972 | $ 42,079 | ||||||||||||||||||||||
| ENERGY SEGMENT | 12,314 | 6,767 | 12,638 | 16,266 | 47,985 | 15,651 | 5,896 | 21,547 | ||||||||||||||||||||||
| ELECTRICAL SEGMENT | 11,614 | 11,842 | 8,986 | 4,894 | 37,335 | 4,740 | 390 | 5,130 | ||||||||||||||||||||||
| ENGINEERED SOLUTIONS SEGMENT | 13,106 | 10,844 | 17,053 | 12,600 | 53,603 | 8,648 | (2,103 | ) | 6,545 | |||||||||||||||||||||
| CORPORATE / GENERAL | (6,415 | ) | (7,743 | ) | (8,203 | ) | (8,549 | ) | (30,910 | ) | (3,197 | ) | (5,013 | ) | (8,210 | ) | ||||||||||||||
| TOTAL - EXCLUDING IMPAIRMENT / RESTRUCTURING CHARGES | $ 56,281 | $ 47,700 | $ 61,528 | $ 56,314 | $ 221,822 | $ 51,949 | $ 15,142 | $ 67,091 | ||||||||||||||||||||||
| IMPAIRMENT CHARGE | - | - | - | - | - | (26,553 | ) | - | (26,553 | ) | ||||||||||||||||||||
| RESTRUCTURING CHARGE | (5,521 | ) | (4,952 | ) | - | - | (10,473 | ) | (732 | ) | (3,144 | ) | (3,876 | ) | ||||||||||||||||
| TOTAL | $ 50,760 | $ 42,748 | $ 61,528 | $ 56,314 | $ 211,349 | $ 24,664 | $ 11,998 | $ 36,662 | ||||||||||||||||||||||
| OPERATING PROFIT % | ||||||||||||||||||||||||||||||
| INDUSTRIAL SEGMENT | 29.4 | % | 29.8 | % | 30.6 | % | 31.7 | % | 30.4 | % | 28.8 | % | 22.3 | % | 25.9 | % | ||||||||||||||
| ENERGY SEGMENT | 24.8 | % | 15.6 | % | 21.6 | % | 26.7 | % | 22.6 | % | 21.2 | % | 9.9 | % | 16.1 | % | ||||||||||||||
| ELECTRICAL SEGMENT | 8.3 | % | 8.7 | % | 6.6 | % | 4.1 | % | 7.0 | % | 4.4 | % | 0.4 | % | 2.6 | % | ||||||||||||||
| ENGINEERED SOLUTIONS SEGMENT | 9.5 | % | 8.2 | % | 11.4 | % | 9.9 | % | 9.8 | % | 8.1 | % | -2.7 | % | 3.6 | % | ||||||||||||||
| TOTAL (INCLUDING CORPORATE) - EXCLUDING IMPAIRMENT / RESTRUCTURING CHARGES | 13.6 | % | 11.9 | % | 13.8 | % | 13.9 | % | 13.3 | % | 13.7 | % | 5.1 | % | 9.9 | % | ||||||||||||||
| EBITDA | ||||||||||||||||||||||||||||||
| INDUSTRIAL SEGMENT | $ 28,017 | $ 27,840 | $ 32,617 | $ 32,599 | $ 121,073 | $ 27,139 | $ 17,058 | $ 44,197 | ||||||||||||||||||||||
| ENERGY SEGMENT | 14,553 | 9,546 | 15,771 | 20,399 | 60,269 | 21,675 | 11,493 | 33,168 | ||||||||||||||||||||||
| ELECTRICAL SEGMENT | 14,495 | 14,340 | 11,553 | 7,186 | 47,573 | 6,195 | 1,666 | 7,861 | ||||||||||||||||||||||
| ENGINEERED SOLUTIONS SEGMENT | 17,422 | 15,194 | 20,811 | 17,488 | 70,915 | 13,330 | 2,016 | 15,346 | ||||||||||||||||||||||
| CORPORATE / GENERAL | (6,632 | ) | (7,522 | ) | (7,991 | ) | (8,163 | ) | (30,308 | ) | (3,110 | ) | (4,058 | ) | (7,168 | ) | ||||||||||||||
| TOTAL - EXCLUDING IMPAIRMENT / RESTRUCTURING CHARGES | $ 67,855 | $ 59,398 | $ 72,761 | $ 69,509 | $ 269,522 | $ 65,229 | $ 28,175 | $ 93,404 | ||||||||||||||||||||||
| IMPAIRMENT CHARGE | - | - | - | - | - | (26,553 | ) | - | (26,553 | ) | ||||||||||||||||||||
| RESTRUCTURING CHARGES | (5,521 | ) | (4,952 | ) | - | - | (10,473 | ) | (732 | ) | (3,144 | ) | (3,876 | ) | ||||||||||||||||
| TOTAL | $ 62,334 | $ 54,446 | $ 72,761 | $ 69,509 | $ 259,049 | $ 37,944 | $ 25,031 | $ 62,975 | ||||||||||||||||||||||
| EBITDA % | ||||||||||||||||||||||||||||||
| INDUSTRIAL SEGMENT | 32.1 | % | 31.9 | % | 32.1 | % | 33.2 | % | 32.3 | % | 30.0 | % | 23.8 | % | 27.2 | % | ||||||||||||||
| ENERGY SEGMENT | 29.3 | % | 22.0 | % | 27.0 | % | 33.5 | % | 28.4 | % | 29.3 | % | 19.3 | % | 24.8 | % | ||||||||||||||
| ELECTRICAL SEGMENT | 10.3 | % | 10.6 | % | 8.5 | % | 6.1 | % | 9.0 | % | 5.7 | % | 1.8 | % | 3.9 | % | ||||||||||||||
| ENGINEERED SOLUTIONS SEGMENT | 12.6 | % | 11.4 | % | 13.9 | % | 13.8 | % | 13.0 | % | 12.4 | % | 2.6 | % | 8.3 | % | ||||||||||||||
| TOTAL (INCLUDING CORPORATE) - EXCLUDING IMPAIRMENT / RESTRUCTURING CHARGES | 16.3 | % | 14.9 | % | 16.4 | % | 17.2 | % | 16.2 | % | 17.2 | % | 9.4 | % | 13.7 | % | ||||||||||||||
| ACTUANT CORPORATION | ||||||||||||||||||||||||||||||
| Reconciliation of GAAP measures to non-GAAP measures | ||||||||||||||||||||||||||||||
| (Dollars in thousands, except for per share amounts) | ||||||||||||||||||||||||||||||
| FISCAL 2008 | FISCAL 2009 | |||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | TOTAL | Q1 | Q2 | Q3 | Q4 | TOTAL | |||||||||||||||||||||
| NET EARNINGS EXCLUDING RESTRUCTURING CHARGE | ||||||||||||||||||||||||||||||
| AND TAX ADJUSTMENTS / CREDITS (1) | ||||||||||||||||||||||||||||||
| NET EARNINGS (GAAP MEASURE) | $ 27,427 | $ 22,239 | $ 38,635 | $ 34,243 | $ 122,544 | $ 11,598 | $ 3,244 | $ 14,842 | ||||||||||||||||||||||
| RESTRUCTURING CHARGES, NET OF TAX BENEFIT | 5,521 | 4,729 | - | - | 10,250 | 506 | 2,156 | 2,662 | ||||||||||||||||||||||
| IMPAIRMENT CHARGE, NET OF TAX BENEFIT | - | - | - | - | - | 16,463 | - | 16,463 | ||||||||||||||||||||||
| TAX ADJUSTMENTS / CREDITS | - | - | (2,625 | ) | - | (2,625 | ) | - | - | - | ||||||||||||||||||||
| TOTAL (NON-GAAP MEASURE) | $ 32,948 | $ 26,968 | $ 36,010 | $ 34,243 | $ 130,169 | $ 28,567 | $ 5,400 | $ 33,967 | ||||||||||||||||||||||
| DILUTED EARNINGS PER SHARE EXCLUDING RESTRUCTURING | ||||||||||||||||||||||||||||||
| CHARGE AND TAX ADJUSTMENTS / CREDITS (1) | ||||||||||||||||||||||||||||||
| NET EARNINGS (GAAP MEASURE) | $ 0.43 | $ 0.35 | $ 0.60 | $ 0.54 | $ 1.93 | $ 0.19 | $ 0.06 | $ 0.25 | ||||||||||||||||||||||
| RESTRUCTURING CHARGES, NET OF TAX BENEFIT | 0.09 | 0.07 | - | - | 0.16 | - | 0.03 | 0.03 | ||||||||||||||||||||||
| IMPAIRMENT CHARGE, NET OF TAX BENEFIT | - | - | - | - | - | 0.26 | - | 0.26 | ||||||||||||||||||||||
| TAX ADJUSTMENTS / CREDITS | - | - | (0.04 | ) | - | (0.04 | ) | - | - | - | ||||||||||||||||||||
| TOTAL (NON-GAAP MEASURE) | $ 0.52 | $ 0.43 | $ 0.56 | $ 0.54 | $ 2.05 | $ 0.45 | $ 0.09 | $ 0.54 | ||||||||||||||||||||||
| EBITDA (2) | ||||||||||||||||||||||||||||||
| NET EARNINGS (GAAP MEASURE) | $ 27,427 | $ 22,239 | $ 38,635 | $ 34,243 | $ 122,544 | $ 11,598 | $ 3,244 | $ 14,842 | ||||||||||||||||||||||
| FINANCING COSTS, NET | 9,300 | 9,032 | 9,190 | 8,887 | 36,409 | 12,235 | 9,904 | 22,139 | ||||||||||||||||||||||
| INCOME TAX EXPENSE | 15,149 | 12,154 | 13,465 | 14,598 | 55,365 | 1,370 | (1,105 | ) | 265 | |||||||||||||||||||||
| DEPRECIATION & AMORTIZATION | 10,464 | 11,028 | 11,434 | 11,783 | 44,709 | 12,746 | 12,998 | 25,744 | ||||||||||||||||||||||
| MINORITY INTEREST, NET OF INCOME TAX | (6 | ) | (7 | ) | 37 | (2 | ) | 22 | (5 | ) | (10 | ) | (15 | ) | ||||||||||||||||
| EBITDA (NON-GAAP MEASURE) | $ 62,334 | $ 54,446 | $ 72,761 | $ 69,509 | $ 259,049 | $ 37,944 | $ 25,031 | $ 62,975 | ||||||||||||||||||||||
| IMPAIRMENT CHARGE | - | - | - | - | - | 26,553 | - | 26,553 | ||||||||||||||||||||||
| RESTRUCTURING CHARGES | 5,521 | 4,952 | - | - | 10,473 | 732 | 3,144 | 3,876 | ||||||||||||||||||||||
|
EBITDA (NON-GAAP MEASURE) - EXCLUDING IMPAIRMENT AND RESTRUCTURING CHARGES |
$ 67,855 | $ 59,398 | $ 72,761 | $ 69,509 | $ 269,522 | $ 65,229 | $ 28,175 | $ 93,404 | ||||||||||||||||||||||
| (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. |
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| (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. |
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CONTACT:
Actuant Corporation
Karen Bauer
Director,
Investor Relations
262-373-7462