●
|
Completed sale of Cortland Fibron (upstream oil & gas) on December 19, 2018.
|
●
|
Initiated process to divest Cortland US and Precision-Hayes International businesses, which have been moved to Assets and
Liabilities Held for Sale.
|
●
|
Total net sales were $293 million for the quarter.
|
●
|
Core sales increased 3% on a year-over-year basis while foreign currency reduced net sales by 2% and the impact from acquisitions
and divestitures was negligible.
|
●
|
The Industrial Tools & Services (“IT&S”) segment achieved revenues of $149 million, with a core sales increase of 4%
year-over-year.
|
●
|
The Engineered Components & Systems (“EC&S”) business achieved revenues of $144 million, with a core sales increase of 2%
year-over-year.
|
●
|
GAAP Operating Margin was -3.2% versus 5% in first quarter 2018 (see Consolidated Results below, along with the attached
reconciliation of earnings). Adjusted Operating Margin expanded 200bp over first quarter 2018 to 9.4% from 7.4%.
|
●
|
Adjusted EBITDA Margin increased by 130bp with significant improvement in operating leverage and incremental margins in line with
expectations.
|
●
|
GAAP diluted earnings per share (“EPS”) was a loss of $0.29 in the first quarter of fiscal 2019 versus EPS of $0.09 in 2018.
Adjusted EPS was $0.27, a 42% improvement over first quarter 2018 adjusted EPS of $0.19.
|
●
|
Significant year-over-year reduction of Net Debt to Adjusted EBITDA leverage from 3.2x at the end of first quarter 2018 to 2.1x at
the end of first quarter 2019.
|
Three Months Ended Nov 30,
|
||||||||
2018
|
2017
|
|||||||
Sales
|
$
|
292.5
|
$
|
289.0
|
||||
Operating Profit (Loss)
|
$
|
(9.3
|
)
|
$
|
14.7
|
|||
Adjusted Op Profit
|
$
|
27.5
|
$
|
21.3
|
||||
Adjusted Op Profit %
|
9.4
|
%
|
7.4
|
%
|
||||
Earnings (Loss) per Share
|
$
|
(0.29
|
)
|
$
|
0.09
|
|||
Adjusted Earnings per Share
|
$
|
0.27
|
$
|
0.19
|
||||
EBITDA
|
$
|
(1.3
|
)
|
$
|
24.4
|
|||
Adjusted EBITDA
|
$
|
35.5
|
$
|
31.1
|
||||
EBITDA %
|
(0.5
|
)%
|
8.5
|
%
|
||||
Adjusted EBITDA %
|
12.1
|
%
|
10.8
|
%
|
●
|
Consolidated net sales for the first quarter were $292.5 million, slightly higher than the $289.0 million recorded in the
comparable prior year quarter. Core sales improved 3% year-over-year, while foreign currency rate changes reduced net sales by 2%. The net impact from the Mirage and Equalizer acquisitions, net of the Viking divestiture, was negligible.
|
●
|
Fiscal 2019 first quarter net loss and EPS were ($17.5) million and $(0.29), compared to $5.2 million and $0.09, respectively, in
the comparable prior year quarter.
|
o
|
Fiscal 2019 first quarter earnings included impairment & divestiture and other charges of $36.5 million ($33.8 million or $0.55
per share, after tax) primarily related to the anticipated sale of the Cortland US and Precision-Hayes International businesses as well as other divestiture related costs.
|
o
|
The first quarter of fiscal 2019 also included $0.4 million of restructuring charges ($0.3 million or less than $0.01 per share,
after tax).
|
●
|
Fiscal 2018 first quarter earnings included restructuring charges of $6.6 million ($6.3 million or $0.10 per share, after tax).
|
●
|
Excluding impairment, divestiture and restructuring charges, adjusted EPS for the first quarter of fiscal 2019 was $0.27, compared
to $0.19 in the comparable prior year period (see attached reconciliation of earnings).
|
Three Months Ended Nov 30,
|
||||||||
2018
|
2017
|
|||||||
Sales
|
$
|
148.7
|
$
|
142.0
|
||||
Operating Profit
|
$
|
26.4
|
$
|
20.8
|
||||
Adjusted Op Profit (1)
|
$
|
26.3
|
$
|
22.2
|
||||
Adjusted Op Profit % (1)
|
17.7
|
%
|
15.6
|
%
|
||||
●
|
First quarter fiscal 2019 IT&S segment net sales were $148.7 million, 5% higher than the prior year. The impact of foreign
currency exchange rates reduced sales by 1% year-over-year and the Equalizer and Mirage acquisitions added 2%, resulting in a 4% year-over-year core sales increase.
|
●
|
Top line growth including double-digit gains in the Americas, resulted from the continued strength of our end markets and
investments in commercial effectiveness, despite difficult comparisons against strong net sales growth in the first quarter of fiscal 2018. Solid service growth in Europe and Middle East as well as product and service growth in Australia
and Asia also contributed.
|
●
|
Adjusted operating profit improved as a result of increased sales volume and improved margins on our heavy lift product line.
|
Three Months Ended Nov 30,
|
||||||||
2018
|
2017
|
|||||||
Sales
|
$
|
143.9
|
$
|
147.0
|
||||
Operating (Loss) Profit
|
$
|
(28.3
|
)
|
$
|
4.0
|
|||
Adjusted Op Profit (2)
|
$
|
8.6
|
$
|
5.1
|
||||
Adjusted Op Profit % (2)
|
6.0
|
%
|
3.5
|
%
|
●
|
First quarter fiscal 2019 EC&S segment net sales were $143.9 million, a 2% decrease over the prior year. Excluding a 2%
decline in net sales due to a stronger US Dollar and a 2% decline in sales due to the prior year divestiture of the Viking business, year-over-year core sales increased 2%.
|
●
|
Core sales growth was driven by increased demand in automotive, off-highway vehicle and concrete tensioning markets, new platform
wins starting production and price realization partially offset by reduced China truck demand.
|
●
|
Adjusted operating profit margin improved on pricing and operating efficiencies.
|
●
|
Corporate expenses for the first quarter of fiscal 2019 were $7.4 million, $1.4 million higher than the comparable prior year
period, primarily resulting from stock compensation and consulting expenses.
|
●
|
The first quarter effective income tax rate of approximately 13.7% was in line with expectations but lower than the prior year rate
of 14.7%.
|
Period Ending |
||||||||||||
Nov 30, 2018
|
Aug 31, 2018
|
Nov 30, 2017
|
||||||||||
Cash Balance
|
$
|
203.4
|
$
|
250.5
|
$
|
165.1
|
||||||
Debt Balance
|
$
|
525.4
|
$
|
532.7
|
$
|
554.6
|
||||||
Net Debt to EBITDA
|
2.1
|
1.9
|
3.2
|
●
|
Net debt at November 30, 2018 was approximately $322 million (total debt of $525 million less $203 million of cash), which
increased approximately $40 million from the prior quarter end but declined by $68 million from first quarter of Fiscal 2018. Net Debt to Adjusted EBITDA was 2.1x at November 30, 2018.
|
●
|
Annual sales growth: Between 3% and 5%;
|
●
|
Annual sales: $1.15 to $1.19 billion, which reflect the strengthening of the US Dollar and the sale of the Cortland Fibron
business;
|
●
|
Full year adjusted EPS: between $1.09 and $1.20, which includes an expected tax rate of 20%;
|
●
|
Second quarter sales: $268 to $278 million and continue to expect the back half of our fiscal year to be even stronger;
|
●
|
Second quarter adjusted EPS: range of $0.15 to $0.20; and
|
●
|
Full year free cash flow: $80 to $85 million.
|
Actuant Corporation
|
||||||||
Condensed Consolidated Balance Sheets
|
||||||||
(Dollars in thousands)
|
||||||||
(Unaudited) | ||||||||
November 30,
|
August 31,
|
|||||||
2018
|
2018
|
|||||||
ASSETS
|
||||||||
Current assets
|
||||||||
Cash and cash equivalents
|
$
|
203,443
|
$
|
250,490
|
||||
Accounts receivable, net
|
191,190
|
187,749
|
||||||
Inventories, net
|
154,764
|
156,356
|
||||||
Assets held for sale
|
106,193
|
23,573
|
||||||
Other current assets
|
51,745
|
42,732
|
||||||
Total current assets
|
707,335
|
660,900
|
||||||
Property, plant and equipment, net
|
79,160
|
90,220
|
||||||
Goodwill
|
477,360
|
512,412
|
||||||
Other intangible assets, net
|
152,719
|
181,037
|
||||||
Other long-term assets
|
33,459
|
36,769
|
||||||
Total assets
|
$
|
1,450,033
|
$
|
1,481,338
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Current liabilities
|
||||||||
Trade accounts payable
|
$
|
124,067
|
$
|
130,838
|
||||
Accrued compensation and benefits
|
36,343
|
54,508
|
||||||
Current maturities of debt
|
30,000
|
30,000
|
||||||
Income taxes payable
|
8,215
|
4,091
|
||||||
Liabilities held for sale
|
70,030
|
44,225
|
||||||
Other current liabilities
|
63,714
|
67,299
|
||||||
Total current liabilities
|
332,369
|
330,961
|
||||||
Long-term debt, net
|
495,384
|
502,695
|
||||||
Deferred income taxes
|
16,931
|
21,933
|
||||||
Pension and postretirement benefit liabilities
|
14,671
|
14,869
|
||||||
Other long-term liabilities
|
53,113
|
52,168
|
||||||
Total liabilities
|
912,468
|
922,626
|
||||||
Shareholders' equity
|
||||||||
Capital stock
|
16,301
|
16,285
|
||||||
Additional paid-in capital
|
171,606
|
167,448
|
||||||
Treasury stock
|
(617,731
|
)
|
(617,731
|
)
|
||||
Retained earnings
|
1,149,578
|
1,166,955
|
||||||
Accumulated other comprehensive loss
|
(182,189
|
)
|
(174,245
|
)
|
||||
Stock held in trust
|
(2,573
|
)
|
(2,450
|
)
|
||||
Deferred compensation liability
|
2,573
|
2,450
|
||||||
Total shareholders' equity
|
537,565
|
558,712
|
||||||
Total liabilities and shareholders' equity
|
$
|
1,450,033
|
$
|
1,481,338
|
Actuant Corporation
|
||||||||
Condensed Consolidated Statements of Operations
|
||||||||
(Dollars in thousands, except per share amounts)
|
||||||||
(Unaudited)
|
||||||||
Three Months Ended
|
||||||||
November 30,
|
November 30,
|
|||||||
2018
|
2017
|
|||||||
Net sales
|
$
|
292,531
|
$
|
288,955
|
||||
Cost of products sold
|
187,523
|
188,044
|
||||||
Gross profit
|
105,008
|
100,911
|
||||||
Selling, administrative and engineering expenses
|
73,192
|
74,478
|
||||||
Amortization of intangible assets
|
4,278
|
5,131
|
||||||
Restructuring charges
|
403
|
6,629
|
||||||
Impairment & divestiture charges
|
36,453
|
-
|
||||||
Operating (loss) profit
|
(9,318
|
)
|
14,673
|
|||||
Financing costs, net
|
7,295
|
7,514
|
||||||
Other expense, net
|
911
|
329
|
||||||
(Loss) income before income tax (benefit) expense
|
(17,524
|
)
|
6,830
|
|||||
Income tax (benefit) expense
|
(72
|
)
|
1,604
|
|||||
Net (loss) income
|
$
|
(17,452
|
)
|
$
|
5,226
|
|||
(Loss) earnings per share
|
||||||||
Basic
|
$
|
(0.29
|
)
|
$
|
0.09
|
|||
Diluted
|
(0.29
|
)
|
0.09
|
|||||
Weighted average common shares outstanding
|
||||||||
Basic
|
61,031
|
59,871
|
||||||
Diluted
|
61,031
|
60,609
|
Actuant Corporation
|
||||||||
Condensed Consolidated Statements of Cash Flows
|
||||||||
(In thousands)
|
||||||||
(Unaudited)
|
||||||||
Three Months Ended
|
||||||||
November 30,
|
November 30,
|
|||||||
2018
|
2017
|
|||||||
Operating Activities
|
||||||||
Net (loss) earnings
|
$
|
(17,452
|
)
|
$
|
5,226
|
|||
Adjustments to reconcile net (loss) earnings to net cash used in operating activities:
|
||||||||
Impairment & divestiture charges, net of tax effect
|
33,836
|
-
|
||||||
Depreciation and amortization
|
8,890
|
10,090
|
||||||
Stock-based compensation expense
|
3,594
|
5,420
|
||||||
Benefit for deferred income taxes
|
(1,143
|
)
|
(307
|
)
|
||||
Amortization of debt issuance costs
|
301
|
413
|
||||||
Other non-cash adjustments
|
130
|
113
|
||||||
Changes in components of working capital and other, excluding acquisitions and divestitures:
|
||||||||
Accounts receivable
|
(17,676
|
)
|
(11,478
|
)
|
||||
Inventories
|
(17,824
|
)
|
(11,628
|
)
|
||||
Trade accounts payable
|
1,051
|
6,204
|
||||||
Prepaid expenses and other assets
|
(4,998
|
)
|
(12,043
|
)
|
||||
Income tax accounts
|
1,064
|
(1,714
|
)
|
|||||
Accrued compensation and benefits
|
(16,544
|
)
|
(12,588
|
)
|
||||
Other accrued liabilities
|
(2,339
|
)
|
1,834
|
|||||
Cash used in operating activities
|
(29,110
|
)
|
(20,458
|
)
|
||||
Investing Activities
|
||||||||
Capital expenditures
|
(7,666
|
)
|
(7,904
|
)
|
||||
Proceeds from sale of property, plant and equipment
|
11
|
32
|
||||||
Rental asset buyout for Viking divestiture
|
-
|
(27,718
|
)
|
|||||
Cash used in investing activities
|
(7,655
|
)
|
(35,590
|
)
|
||||
Financing Activities
|
||||||||
Principal repayments on term loan
|
(7,500
|
)
|
(7,500
|
)
|
||||
Stock option excercises & other
|
552
|
2,231
|
||||||
Taxes paid related to the net share settlement of equity awards
|
(201
|
)
|
(282
|
)
|
||||
Cash dividend
|
(2,439
|
)
|
(2,390
|
)
|
||||
Cash used in financing activities
|
(9,588
|
)
|
(7,941
|
)
|
||||
Effect of exchange rate changes on cash
|
(694
|
)
|
(532
|
)
|
||||
Net decrease in cash and cash equivalents
|
(47,047
|
)
|
(64,521
|
)
|
||||
Cash and cash equivalents - beginning of period
|
250,490
|
229,571
|
||||||
Cash and cash equivalents - end of period
|
$
|
203,443
|
$
|
165,050
|
ACTUANT CORPORATION
|
||||||||||||||||||||||||||||||||||||||||
SUPPLEMENTAL UNAUDITED DATA
|
||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||||||||||||||||||
FISCAL 2018
|
FISCAL 2019
|
|||||||||||||||||||||||||||||||||||||||
Q1
|
Q2
|
Q3
|
Q4
|
TOTAL
|
Q1
|
Q2
|
Q3
|
Q4
|
TOTAL
|
|||||||||||||||||||||||||||||||
SALES
|
||||||||||||||||||||||||||||||||||||||||
INDUSTRIAL TOOLS & SERVICES SEGMENT
|
$
|
141,991
|
$
|
136,986
|
$
|
158,735
|
$
|
153,373
|
$
|
591,085
|
$
|
148,655
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
148,655
|
||||||||||||||||||||
ENGINEERED COMPONENTS & SYSTEMS SEGMENT
|
146,964
|
138,179
|
158,361
|
148,022
|
591,526
|
143,876
|
-
|
-
|
-
|
143,876
|
||||||||||||||||||||||||||||||
TOTAL
|
$
|
288,955
|
$
|
275,165
|
$
|
317,096
|
$
|
301,395
|
$
|
1,182,611
|
$
|
292,531
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
292,531
|
||||||||||||||||||||
% SALES GROWTH
|
||||||||||||||||||||||||||||||||||||||||
INDUSTRIAL TOOLS & SERVICES SEGMENT
|
2 | % | 5 | % | 8 | % | 12 | % | 7 | % |
5
|
%
|
-
|
-
|
-
|
5
|
%
|
|||||||||||||||||||||||
ENGINEERED COMPONENTS & SYSTEMS SEGMENT
|
16 | % | 7 | % | 6 | % | 6 | % | 9 | % |
-2
|
%
|
-
|
-
|
-
|
-2
|
%
|
|||||||||||||||||||||||
TOTAL
|
9
|
%
|
6
|
%
|
7
|
%
|
9
|
%
|
8
|
%
|
1
|
%
|
-
|
-
|
-
|
1
|
%
|
|||||||||||||||||||||||
OPERATING PROFIT (LOSS)
|
||||||||||||||||||||||||||||||||||||||||
INDUSTRIAL TOOLS & SERVICES SEGMENT
|
$
|
22,218
|
$
|
20,510
|
$
|
32,206
|
$
|
28,783
|
$
|
103,718
|
$
|
26,345
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
26,345
|
||||||||||||||||||||
ENGINEERED COMPONENTS & SYSTEMS SEGMENT
|
5,107
|
1,177
|
9,714
|
8,789
|
24,787
|
8,593
|
-
|
-
|
-
|
8,593
|
||||||||||||||||||||||||||||||
CORPORATE / GENERAL
|
(6,023
|
)
|
(4,827
|
)
|
(8,149
|
)
|
(5,404
|
)
|
(24,404
|
)
|
(7,400
|
)
|
-
|
-
|
-
|
(7,400
|
)
|
|||||||||||||||||||||||
ADJUSTED OPERATING PROFIT
|
$
|
21,302
|
$
|
16,860
|
$
|
33,771
|
$
|
32,168
|
$
|
104,101
|
$
|
27,538
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
27,538
|
||||||||||||||||||||
IMPAIRMENT & DIVESTITURE CHARGES
|
-
|
(2,987
|
)
|
-
|
(70,071
|
)
|
(73,058
|
)
|
(36,453
|
)
|
-
|
-
|
-
|
(36,453
|
)
|
|||||||||||||||||||||||||
RESTRUCTURING CHARGES (1)
|
(6,629
|
)
|
(4,284
|
)
|
(1,186
|
)
|
(746
|
)
|
(12,845
|
)
|
(403
|
)
|
-
|
-
|
-
|
(403
|
)
|
|||||||||||||||||||||||
OPERATING PROFIT (LOSS)
|
$
|
14,673
|
$
|
9,589
|
$
|
32,585
|
$
|
(38,649
|
)
|
$
|
18,198
|
$
|
(9,318
|
)
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(9,318
|
)
|
|||||||||||||||||
ADJUSTED OPERATING PROFIT %
|
||||||||||||||||||||||||||||||||||||||||
INDUSTRIAL TOOLS & SERVICES SEGMENT
|
15.6
|
%
|
15.0
|
%
|
20.3
|
%
|
18.8
|
%
|
17.5
|
%
|
17.7
|
%
|
-
|
-
|
-
|
17.7
|
%
|
|||||||||||||||||||||||
ENGINEERED COMPONENTS & SYSTEMS SEGMENT
|
3.5
|
%
|
0.9
|
%
|
6.1
|
%
|
5.9
|
%
|
4.2
|
%
|
6.0
|
%
|
-
|
-
|
-
|
6.0
|
%
|
|||||||||||||||||||||||
ADJUSTED OPERATING PROFIT %
|
7.4
|
%
|
6.1
|
%
|
10.7
|
%
|
10.7
|
%
|
8.8
|
%
|
9.4
|
%
|
-
|
-
|
-
|
9.4
|
%
|
|||||||||||||||||||||||
EBITDA
|
||||||||||||||||||||||||||||||||||||||||
INDUSTRIAL TOOLS & SERVICES SEGMENT
|
$
|
25,567
|
$
|
24,594
|
$
|
36,394
|
$
|
32,763
|
$
|
119,318
|
$
|
30,038
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
30,038
|
||||||||||||||||||||
ENGINEERED COMPONENTS & SYSTEMS SEGMENT
|
11,004
|
7,267
|
15,093
|
15,114
|
48,478
|
12,841
|
-
|
-
|
-
|
12,841
|
||||||||||||||||||||||||||||||
CORPORATE / GENERAL
|
(5,508
|
)
|
(5,073
|
)
|
(7,113
|
)
|
(4,672
|
)
|
(22,366
|
)
|
(7,362
|
)
|
-
|
-
|
-
|
(7,362
|
)
|
|||||||||||||||||||||||
ADJUSTED EBITDA
|
$
|
31,063
|
$
|
26,788
|
$
|
44,374
|
$
|
43,205
|
$
|
145,430
|
$
|
35,517
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
35,517
|
||||||||||||||||||||
IMPAIRMENT & DIVESTITURE CHARGES
|
-
|
(2,987
|
)
|
-
|
(70,071
|
)
|
(73,058
|
)
|
(36,453
|
)
|
-
|
-
|
-
|
(36,453
|
)
|
|||||||||||||||||||||||||
RESTRUCTURING CHARGES (1)
|
(6,629
|
)
|
(4,284
|
)
|
(1,186
|
)
|
(746
|
)
|
(12,845
|
)
|
(403
|
)
|
-
|
-
|
-
|
(403
|
)
|
|||||||||||||||||||||||
EBITDA
|
$
|
24,434
|
$
|
19,517
|
$
|
43,188
|
$
|
(27,612
|
)
|
$
|
59,527
|
$
|
(1,339
|
)
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(1,339
|
)
|
|||||||||||||||||
ADJUSTED EBITDA %
|
||||||||||||||||||||||||||||||||||||||||
INDUSTRIAL TOOLS & SERVICES SEGMENT
|
18.0
|
%
|
18.0
|
%
|
22.9
|
%
|
21.4
|
%
|
20.2
|
%
|
20.2
|
%
|
-
|
-
|
-
|
20.2
|
%
|
|||||||||||||||||||||||
ENGINEERED COMPONENTS & SYSTEMS SEGMENT
|
7.5
|
%
|
5.3
|
%
|
9.5
|
%
|
10.2
|
%
|
8.2
|
%
|
8.9
|
%
|
-
|
-
|
-
|
8.9
|
%
|
|||||||||||||||||||||||
ADJUSTED EBITDA %
|
10.8
|
%
|
9.7
|
%
|
14.0
|
%
|
14.3
|
%
|
12.3
|
%
|
12.1
|
%
|
-
|
-
|
-
|
12.1
|
%
|
|||||||||||||||||||||||
Note: (1) Approximately $0.8 million of the Q2 fiscal 2018 restructuring charges were recorded in cost of
products sold. De minimis restructuring charges were also recorded in cost of products sold in Q3 fiscal 2018.
|
ACTUANT CORPORATION
|
||||||||||||||||||||||||||||||||||||||||
SUPPLEMENTAL UNAUDITED DATA
|
||||||||||||||||||||||||||||||||||||||||
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
|
||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except for per share amounts)
|
||||||||||||||||||||||||||||||||||||||||
FISCAL 2018
|
FISCAL 2019
|
|||||||||||||||||||||||||||||||||||||||
Q1
|
Q2
|
Q3
|
Q4
|
TOTAL
|
Q1
|
Q2
|
Q3
|
Q4
|
TOTAL
|
|||||||||||||||||||||||||||||||
ADJUSTED EARNINGS (1)
|
||||||||||||||||||||||||||||||||||||||||
NET EARNINGS (LOSS) (GAAP MEASURE)
|
$
|
5,226
|
$
|
(18,221
|
)
|
$
|
29,012
|
$
|
(37,664
|
)
|
$
|
(21,648
|
)
|
$
|
(17,452
|
)
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(17,452
|
)
|
|||||||||||||||
IMPAIRMENT & DIVESTITURE CHARGES, NET OF TAX EFFECT
|
-
|
12,385
|
-
|
62,949
|
75,334
|
33,836
|
-
|
-
|
-
|
33,836
|
||||||||||||||||||||||||||||||
RESTRUCTURING CHARGES, NET OF TAX EFFECT (1)
|
6,254
|
3,784
|
(249
|
)
|
(337
|
)
|
9,452
|
300
|
-
|
-
|
-
|
300
|
||||||||||||||||||||||||||||
ACCELERATED DEBT ISSUANCES COSTS, NET OF TAX EFFECT
|
-
|
-
|
-
|
601
|
601
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||
OTHER INCOME TAX (BENEFIT) EXPENSE
|
-
|
9,705
|
(4,891
|
)
|
(1,831
|
)
|
2,983
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||
ADJUSTED EARNINGS
|
$
|
11,480
|
$
|
7,653
|
$
|
23,872
|
$
|
23,718
|
$
|
66,722
|
$
|
16,684
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
16,684
|
||||||||||||||||||||
ADJUSTED DILUTED EARNINGS PER SHARE (2)
|
||||||||||||||||||||||||||||||||||||||||
NET EARNINGS (LOSS) (GAAP MEASURE)
|
$
|
0.09
|
$
|
(0.30
|
)
|
$
|
0.48
|
$
|
(0.62
|
)
|
$
|
(0.36
|
)
|
$
|
(0.29
|
)
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(0.29
|
)
|
|||||||||||||||
IMPAIRMENT & DIVESTITURE CHARGES, NET OF TAX EFFECT
|
-
|
0.21
|
-
|
1.03
|
1.24
|
0.55
|
-
|
-
|
-
|
0.55
|
||||||||||||||||||||||||||||||
RESTRUCTURING CHARGES, NET OF TAX EFFECT (1)
|
0.10
|
0.06
|
-
|
(0.01
|
)
|
0.15
|
0.01
|
-
|
-
|
-
|
0.01
|
|||||||||||||||||||||||||||||
ACCELERATED DEBT ISSUANCES COSTS, NET OF TAX EFFECT
|
-
|
-
|
-
|
0.01
|
0.01
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||
OTHER INCOME TAX (BENEFIT) EXPENSE
|
-
|
0.16
|
(0.09
|
)
|
(0.02
|
)
|
0.05
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||
ADJUSTED DILUTED EARNINGS PER SHARE
|
$
|
0.19
|
$
|
0.13
|
$
|
0.39
|
$
|
0.39
|
$
|
1.09
|
$
|
0.27
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
0.27
|
||||||||||||||||||||
ADJUSTED EBITDA (3)
|
||||||||||||||||||||||||||||||||||||||||
NET EARNINGS (LOSS) (GAAP MEASURE)
|
$
|
5,226
|
$
|
(18,221
|
)
|
$
|
29,012
|
$
|
(37,664
|
)
|
$
|
(21,648
|
)
|
$
|
(17,452
|
)
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(17,452
|
)
|
|||||||||||||||
FINANCING COSTS, NET
|
7,514
|
7,604
|
7,756
|
8,617
|
31,491
|
7,295
|
-
|
-
|
-
|
7,295
|
||||||||||||||||||||||||||||||
INCOME TAX (BENEFIT) EXPENSE
|
1,604
|
19,839
|
(3,995
|
)
|
(8,472
|
)
|
8,976
|
(72
|
)
|
-
|
-
|
-
|
(72
|
)
|
||||||||||||||||||||||||||
DEPRECIATION & AMORTIZATION
|
10,090
|
10,295
|
10,415
|
9,907
|
40,708
|
8,890
|
-
|
-
|
-
|
8,890
|
||||||||||||||||||||||||||||||
EBITDA
|
$
|
24,434
|
$
|
19,517
|
$
|
43,188
|
$
|
(27,612
|
)
|
$
|
59,527
|
$
|
(1,339
|
)
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(1,339
|
)
|
|||||||||||||||||
IMPAIRMENT & OTHER DIVESTITURE CHARGES
|
-
|
2,987
|
-
|
70,071
|
73,058
|
36,453
|
-
|
-
|
-
|
36,453
|
||||||||||||||||||||||||||||||
RESTRUCTURING CHARGES
|
6,629
|
4,284
|
1,186
|
746
|
12,845
|
403
|
-
|
-
|
-
|
403
|
||||||||||||||||||||||||||||||
ADJUSTED EBITDA
|
$
|
31,063
|
$
|
26,788
|
$
|
44,374
|
$
|
43,205
|
$
|
145,430
|
$
|
35,517
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
35,517
|
||||||||||||||||||||
FOOTNOTES
|
|
NOTE:
|
The total of the individual quarters may not equal the annual total due to rounding.
|
(1)
|
Approximately $0.8 million of Q2 fiscal 2018 restructuring charges were recorded in cost of products sold. De minimis restructuring charges
were also recorded in cost of products sold in Q3 fiscal 2018.
|
(2)
|
Adjusted earnings and adjusted diluted earnings per share represent net earnings (loss) and diluted earnings (loss) per share per the
Condensed Consolidated Statements of Operations 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 (loss) or diluted earnings
(loss) per share or 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 may not equal due to rounding.
|
(3)
|
EBITDA represents net earnings (loss) before financing costs, net, income tax (benefit) expense, and depreciation & amortization. EBITDA
is not a calculation based upon generally accepted accounting principles (GAAP). The amounts included in the EBITDA and Adjusted EBITDA calculation, however, are derived from amounts included in the Condensed Consolidated Statements of
Operations. EBITDA should not be considered as an alternative to net earnings (loss), operating profit (loss) or operating cash flows. Actuant has presented EBITDA because it regularly reviews this performance measure. In addition,
EBITDA is used by many of our investors and lenders, and is presented as a convenience to them. 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.
|
ACTUANT CORPORATION
|
||||||||||||||||
SUPPLEMENTAL UNAUDITED DATA
|
||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP GUIDANCE
|
||||||||||||||||
(Dollars in millions, except for per share amounts)
|
||||||||||||||||
Q2 FISCAL 2019
|
FISCAL 2019
|
|||||||||||||||
LOW
|
HIGH
|
LOW
|
HIGH
|
|||||||||||||
RECONCILIATION OF GAAP DILUTED EARNINGS PER SHARE TO ADJUSTED
|
||||||||||||||||
DILUTED EARNINGS PER SHARE GUIDANCE
|
||||||||||||||||
GAAP DILUTED EARNINGS PER SHARE
|
$
|
0.15
|
$
|
0.20
|
$
|
1.09
|
$
|
1.20
|
||||||||
(GAIN)/LOSS ON PRODUCT LINE DIVESTITURE, NET OF TAX (1)
|
TBD
|
TBD
|
TBD
|
TBD
|
||||||||||||
ADJUSTED DILUTED EARNINGS PER SHARE GUIDANCE
|
$
|
0.15
|
$
|
0.20
|
$
|
1.09
|
$
|
1.20
|
||||||||
RECONCILIATION OF GAAP CASH FLOW FROM OPERATIONS TO FREE CASH FLOW
|
||||||||||||||||
CASH FLOW FROM OPERATIONS
|
$
|
105
|
$
|
115
|
||||||||||||
CAPITAL EXPENDITURES
|
(25
|
)
|
(30
|
)
|
||||||||||||
OTHER
|
-
|
-
|
||||||||||||||
FREE CASH FLOW GUIDANCE
|
$
|
80
|
$
|
85
|
||||||||||||
FOOTNOTES
|
|
NOTE:
|
Management does not provide guidance on GAAP financial measures as we are unable to predict and estimate with certainty items such as
potential impairments, refinancing costs, business divestiture gains/losses, discrete tax adjustments, or other items impacting GAAP financial metrics. As a result, we have included above only those items about which we are aware and
are reasonably likely to occur during the guidance period covered.
|
(1)
|
The gain/loss on product line divestiture associated with closing of the Cortland Fibron business is subject to numerous uncertainties
which makes an estimate not meaningful.
|