Enerpac Tool Group Corp. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Guarantor Subsidiaries (Tables)

Guarantor Subsidiaries (Tables)

12 Months Ended

Aug. 31, 2012

Condensed Consolidating Statements of Earnings

CONDENSED CONSOLIDATING STATEMENTS OF EARNINGS

(In thousands)


	Year Ended August 31, 2012
	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net sales	$	206,894		$	569,848		$	828,600		$	—		$	1,605,342
Cost of products sold		69,907			397,780			520,284			—			987,971

Gross profit		136,987			172,068			308,316			—			617,371
Selling, administrative and engineering expenses		83,486			102,829			166,560			—			352,875
Restructuring charges		(292	)		2,484			624			—			2,816
Impairment charge		—			—			62,464			—			62,464
Amortization of intangible assets		1,341			13,680			14,253						29,274

Operating profit		52,452			53,075			64,415			—			169,942
Financing costs, net		29,983			(14	)		(409	)		—			29,560
Intercompany expense (income), net		(32,185	)		6,281			25,904			—			—
Debt refinancing charges		16,830			—			—			—			16,830
Other expense (income), net		1,351			1,912			(25	)					3,238

Earnings before income tax expense		36,473			44,896			38,945			—			120,314
Income tax expense		5,590			10,063			17,371			—			33,024

Net earnings before equity in earnings of subsidiaries		30,883			34,833			21,574			—			87,290
Equity in earnings of subsidiaries		56,407			14,373			1,649			(72,429	)		—

Net Earnings	$	87,290		$	49,206		$	23,223		$	(72,429	)	$	87,290


	Year Ended August 31, 2011
	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net sales	$	170,094		$	523,294		$	751,935		$	—		$	1,445,323
Cost of products sold		55,290			365,431			468,703			—			889,424

Gross profit		114,804			157,863			283,232			—			555,899
Selling, administrative and engineering expenses		89,682			96,313			146,644			—			332,639
Restructuring charges		1,546			218			459			—			2,223
Amortization of intangible assets		335			14,931			12,201			—			27,467

Operating profit		23,241			46,401			123,928			—			193,570
Financing costs, net		31,912			(1	)		208			—			32,119
Intercompany expense (income), net		(16,924	)		14,670			2,254			—			—
Other expense (income), net		(4,519	)		133			6,630			—			2,244

Earnings before income tax expense		12,772			31,599			114,836			—			159,207
Income tax expense		2,873			6,948			24,890			—			34,711

Net earnings before equity in earnings of subsidiaries		9,899			24,651			89,946			—			124,496
Equity in earnings of subsidiaries		112,364			77,395			6,261			(196,020	)		—

Earnings from continuing operations		122,263			102,046			96,207			(196,020	)		124,496
Loss from discontinued operations		(10,704	)		—			(2,233	)		—			(12,937	)

Net Earnings	$	111,559		$	102,046		$	93,974		$	(196,020	)	$	111,559


	Year Ended August 31, 2010
	Parent			Guarantors		Non-Guarantors			Eliminations			Consolidated
Net sales	$	143,783		$	456,961	$	559,764		$	—		$	1,160,508
Cost of products sold		47,370			333,829		352,057			—			733,256

Gross profit		96,413			123,132		207,707			—			427,252
Selling, administrative and engineering expenses		75,814			87,987		104,065			—			267,866
Restructuring charges		2,054			7,418		6,125			—			15,597
Amortization of intangible assets		—			14,463		7,554			—			22,017

Operating profit		18,545			13,264		89,963			—			121,772
Financing costs, net		31,589			17		253			—			31,859
Intercompany expense (income), net		(21,388	)		2,610		18,778			—			—
Other expense (income), net		(55	)		1,613		(847	)		—			711

Earnings from continuing operations before income tax expense		8,399			9,024		71,779			—			89,202
Income tax expense		2,930			2,355		13,561			—			18,846

Net earnings from continuing operations before equity in earnings (loss) of subsidiaries		5,469			6,669		58,218			—			70,356
Equity in earnings (loss) of subsidiaries		18,562			2,011		(3,920	)		(16,653	)		—

Earnings from continuing operations		24,031			8,680		54,298			(16,653	)		70,356
Loss from discontinuing operations		—			—		(46,325	)		—			(46,325	)

Net Earnings	$	24,031		$	8,680	$	7,973		$	(16,653	)	$	24,031

Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEETS

(In thousands)


	August 31, 2012
	Parent		Guarantors		Non-Guarantors		Eliminations			Consolidated
ASSETS
Current assets	$	88,559	$	151,168	$	321,554	$	—		$	561,281
Property, plant & equipment, net		6,944		31,818		77,122		—			115,884
Goodwill		62,543		433,193		370,676		—			866,412
Other intangibles, net		14,522		206,194		225,168		—			445,884
Intercompany receivable		—		418,253		307,282		(725,535	)		—
Investment in subsidiaries		1,886,478		250,738		90,770		(2,227,986	)		—
Other long-term assets		12,297		22		5,339		—			17,658

Total assets	$	2,071,343	$	1,491,386	$	1,397,911	$	(2,953,521	)	$	2,007,119

LIABILITIES & SHAREHOLDERS’ EQUITY
Current liabilities	$	76,686	$	63,105	$	179,215	$	—		$	319,006
Long-term debt		390,000		—		—		—			390,000
Deferred income taxes		91,604		—		41,049		—			132,653
Pension and post-retirement benefit liabilities		22,500		—		3,942		—			26,442
Other long-term liabilities		59,929		620		26,633		—			87,182
Intercompany payable		378,788		—		346,747		(725,535	)		—
Shareholders’ equity		1,051,836		1,427,661		800,325		(2,227,986	)		1,051,836

Total liabilities and shareholders’ equity	$	2,071,343	$	1,491,386	$	1,397,911	$	(2,953,521	)	$	2,007,119


	August 31, 2011
	Parent		Guarantors		Non-Guarantors		Eliminations			Consolidated
ASSETS
Current assets	$	85,785	$	155,067	$	308,001	$	—		$	548,853
Property, plant & equipment, net		4,327		37,133		87,189		—			128,649
Goodwill		62,543		432,184		393,739		—			888,466
Other intangibles, net		15,861		216,277		247,268		—			479,406
Intercompany receivable		—		277,157		45,770		(322,927	)		—
Investment in subsidiaries		1,859,779		379,170		67,795		(2,306,744	)		—
Other long-term assets		10,862		51		6,930		—			17,843

Total assets	$	2,039,157	$	1,497,039	$	1,156,692	$	(2,629,671	)	$	2,063,217

LIABILITIES & SHAREHOLDERS’ EQUITY
Current liabilities	$	76,300	$	70,126	$	184,099	$	—		$	330,525
Long-term debt		522,727		—		—		—			522,727
Deferred income taxes		122,272		—		49,987		—			172,259
Pension and post-retirement benefit liabilities		16,452		—		2,412		—			18,864
Other long-term liabilities		59,466		779		39,584		—			99,829
Intercompany payable		322,927		—		—		(322,927	)		—
Shareholders’ equity		919,013		1,426,134		880,610		(2,306,744	)		919,013

Total liabilities and shareholders’ equity	$	2,039,157	$	1,497,039	$	1,156,692	$	(2,629,671	)	$	2,063,217

Condensed Consolidating Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(In thousands)


	Year Ended August 31, 2012
	Parent			Guarantors			Non-Guarantors			Eliminations		Consolidated
Operating Activities
Net cash provided by operating activities	$	97,454		$	20,363		$	64,512		$	—	$	182,329

Investing Activities
Proceeds from sale of property, plant & equipment		1,909			353			6,239			—		8,501
Capital expenditures		(5,062	)		(4,069	)		(13,609	)		—		(22,740	)
Business acquisitions, net of cash acquired		(290	)		—			(69,977	)		—		(70,267	)

Cash used in investing activities		(3,443	)		(3,716	)		(77,347	)		—		(84,506	)

Financing Activities
Net repayments on revolving credit facilities		(57,990	)		—			(177	)		—		(58,167	)
Intercompany loan activity		(11,482	)		(16,556	)		28,038			—		—
Principal repayment of term loans		(2,500	)		—			—			—		(2,500	)
Repurchases of 2% Convertible Notes		(102	)		—			—			—		(102	)
Proceeds from issuance of 5.625% Senior Notes		300,000			—			—			—		300,000
Redemption of 6.875% Senior Notes		(250,000	)		—			—			—		(250,000	)
Debt issuance costs		(5,490	)		—			—			—		(5,490	)
Purchase of treasury shares		(63,083	)		—			—			—		(63,083	)
Stock option exercises and related tax benefits		10,913			—			—			—		10,913
Cash dividend		(2,748	)		—			—			—		(2,748	)

Cash provided (used in) financing activities		(82,482	)		(16,556	)		27,861			—		(71,177	)
Effect of exchange rate changes on cash		—			—			(2,683	)		—		(2,683	)

Net increase in cash and cash equivalents		11,529			91			12,343			—		23,963
Cash and cash equivalents—beginning of period		872			—			43,349			—		44,221

Cash and cash equivalents—end of period	$	12,401		$	91		$	55,692		$	—	$	68,184


	Year Ended August 31, 2011
	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Operating Activities
Net cash provided by operating activities	$	92,573		$	3,122		$	77,404		$	(1,533	)	$	171,566

Investing Activities
Proceeds from sale of property, plant & equipment		103			313			1,363			—			1,779
Proceeds from sale of business		—			—			3,463			—			3,463
Capital expenditures		(5,284	)		(4,740	)		(13,072	)		—			(23,096	)
Business acquisitions, net of cash acquired		(153,409	)		(350	)		(159,697	)		—			(313,456	)

Cash used in investing activities		(158,590	)		(4,777	)		(167,943	)		—			(331,310	)

Financing Activities
Net borrowings on revolving credit facilities		58,000			—			204			—			58,204
Proceeds from issuance of term loans		100,000			—			—			—			100,000
Repurchases of 2% Convertible Notes		(34	)		—			—			—			(34	)
Intercompany loan activity		(96,454	)		1,655			94,799			—			—
Debt issuance costs		(5,197	)		—			—			—			(5,197	)
Stock option exercises and related tax benefits		8,235			—			—			—			8,235
Cash dividend		(2,716	)		—			(1,533	)		1,533			(2,716	)

Cash provided by financing activities		61,834			1,655			93,470			1,533			158,492
Effect of exchange rate changes on cash		—			—			5,251			—			5,251

Net increase (decrease) in cash and cash equivalents		(4,183	)		—			8,182			—			3,999
Cash and cash equivalents—beginning of period		5,055			—			35,167			—			40,222

Cash and cash equivalents—end of period	$	872		$	—		$	43,349		$	—		$	44,221

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(In thousands)


	Year Ended August 31, 2010
	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Operating Activities
Net cash provided by (used in) operating activities	$	137,143		$	(6,739	)	$	42,827		$	(52,145	)	$	121,086
Investing Activities
Proceeds from sale of property, plant & equipment		1			439			796			—			1,236
Proceeds from sale of businesses		—			—			7,516			—			7,516
Capital expenditures		(1,219	)		(8,309	)		(10,438	)		—			(19,966	)
Business acquisitions, net of cash acquired		—			(9,374	)		(36,492	)		—			(45,866	)

Cash used in investing activities		(1,218	)		(17,244	)		(38,618	)		—			(57,080	)
Financing Activities
Net repayments on revolving credit facilities		(12,608	)		—			(1,705	)		—			(14,313	)
Repurchases of 2% Convertible Notes		(22,894	)		—			—			—			(22,894	)
Intercompany loan activity		(96,107	)		55,378			40,729			—			—
Stock option exercises and related tax benefits		3,315			—			—			—			3,315
Cash dividend		(2,702	)		(31,395	)		(20,750	)		52,145			(2,702	)

Cash provided by (used in) financing activities		(130,996	)		23,983			18,274			52,145			(36,594	)
Effect of exchange rate changes on cash		—			—			1,425			—			1,425

Net increase in cash and cash equivalents		4,929			—			23,908			—			28,837
Cash and cash equivalents—beginning of period		126			—			11,259			—			11,385

Cash and cash equivalents—end of period	$	5,055		$	—		$	35,167		$	—		$	40,222