Actuant Corporation (NYSE: ATU) today announced results for its
fourth quarter and fiscal year ended August 31, 2017.
Highlights
- Consolidated sales and core sales were
flat with the comparable prior year quarter as foreign currency
rate changes increased sales 1% and net acquisition &
divestitures were a 1% headwind. Solid core sales growth in both
the Industrial and Engineered Solutions segments was offset by
difficult market conditions in the Energy segment.
- GAAP diluted earnings (loss) per share
(“EPS”) was $(1.65) in the fourth quarter of fiscal 2017 versus
$0.29 in the comparable prior year period. Adjusted EPS was $0.19,
which excludes fourth quarter fiscal 2017 restructuring charges as
well as impairment and divestiture charges associated with the
planned Viking SeaTech sale, compared to adjusted EPS of $0.30 in
the comparable prior year period (see Consolidated Results below
and the attached reconciliation of earnings).
- Strong cash flow resulting in the 17th
consecutive year of free cash flow conversion in excess of 100% of
adjusted net earnings.
- Signed definitive agreements to sell
the Viking SeaTech business to Acteon, a global subsea services
provider and acquire Mirage Machines, a $12 million revenue
provider of industrial and energy maintenance tools, from
Acteon.
- Introduced fiscal 2018 sales and
adjusted EPS guidance in the range of $1.100-1.130 billion and
$1.05-$1.15, respectively.
Randy Baker, President and CEO of Actuant, commented, “The
fourth quarter came in largely as expected, with continued positive
momentum within industrial tools, broad-based OEM production
increases within Engineered Solutions, offset by persistent
challenges within the served energy markets. The higher volumes
delivered solid incremental profits within both Industrial and
Engineered Solutions, however, Energy decrementals more than offset
these gains. Adjusted EPS of $0.19 was in line with the previously
provided guidance range. Most importantly, we delivered strong
fourth quarter cash flow, extending our track record of cash
conversion in excess of 100% of adjusted net earnings. Also
significant was the action taken on reshaping the portfolio,
reaching an agreement to divest the offshore mooring business and
acquire an attractive tool tuck-in for Hydratight. In summary,
while many challenges remain, I am confident in the progress we are
making on our commercial, operational, and portfolio management
strategies and I want to extend my appreciation to the entire
Actuant organization for their hard work and accomplishments in
2017.”
Consolidated Results
Consolidated sales for the fourth quarter were $276 million,
flat with the prior year’s sales level. Core sales were also flat
as the benefit from foreign currency of 1% was offset by a 1%
divestiture impact. Fiscal 2017 fourth quarter net loss and EPS
were $(98.8) million and $(1.65), compared to earnings of $17.4
million and $0.29, respectively, in the comparable prior year
quarter. Fiscal 2017’s fourth quarter included restructuring
charges of $1.3 million net of tax ($0.02 per share), as well as
$108.9 million in impairment and divestiture charges related to the
pending sale of the Viking SeaTech business, net of tax ($1.82 per
share). Fourth quarter 2016 results included restructuring charges
of $2.1 million net of tax ($0.03 per share) and a $1.6 million, or
$0.02 per share after-tax gain on the Sanlo product line
divestiture. Excluding these items, adjusted EPS for the fourth
quarter of fiscal 2017 was $0.19 compared to $0.30 in the
comparable prior year period (see attached reconciliation of
earnings).
Sales for the year ended August 31, 2017 were $1,096 million, 5%
lower than the $1,149 million in the prior year. Excluding the 1%
negative impact of foreign currency and negligible impact of net
acquisitions/divestitures, fiscal 2017 core sales decreased 4%.
Fiscal 2017 net loss and EPS were $(66.2) million and $(1.11),
respectively. The comparable fiscal 2016 net loss was $(105.2)
million or $(1.78) per share. Excluding restructuring, impairment
and divestiture charges, the 2017 director and officer transition
charges and one-time income tax benefit, fiscal 2017 adjusted EPS
was $0.83 compared to $1.22 in the comparable prior year period
(see attached reconciliation of earnings).
Segment Results
Industrial Segment
(US $ in millions)
Three Months Ended Year Ended
August 31, August 31, 2017 2016 2017 2016 Sales
$100.3 $94.0 $379.8 $359.8 Operating Profit $24.1 $20.8 $84.9 $79.8
Adjusted Op Profit (1) $24.1 $22.1 $86.6 $82.9 Adjusted Op Profit %
(1) 24.0% 23.6% 22.8% 23.0%
(1) 2017 excludes $1.7 of restructuring
charges for the full year. 2016 excludes $1.4 and $3.1 of
restructuring charges in the fourth quarter and full year,
respectively
Fourth quarter fiscal 2017 Industrial segment sales were $100
million or 7% higher than the prior year. The weaker US dollar
created a 2% currency benefit, resulting in core sales growth of
5%. The year-over-year improvement reflects broad based double
digit industrial tool demand growth with solid results across all
major geographies and end markets. Concrete tensioning products
experienced modest core sales declines and heavy lifting technology
activity was significantly lower year-over-year due to the lumpy
nature of its project work. Fourth quarter adjusted operating
profit margin of 24% improved 40 basis points from the prior year
on higher tool sales volumes, but was negatively impacted by
continuing inefficiencies associated with the concrete tensioning
facility consolidation as well as ongoing investments in commercial
and engineering activities.
Energy Segment
(US $ in millions)
Three Months Ended Year Ended
August 31, August 31, 2017 2016 2017 2016 Sales $68.6
$91.4 $309.6 $392.7 Operating Profit (Loss) $(122.6) $8.3 $(119.0)
$(107.5) Adjusted Op Profit (2) $(3.7) $8.9 $(0.1) $38.9 Adjusted
Op Profit % (2) (5.4)% 9.8% 0.0% 9.9% (2) Fourth quarter and full
year 2017 excludes $1.9 in restructuring charges, and $117.0 in
impairment and divestiture charges. 2016 excludes $0.7 and $5.5 of
restructuring charges in the fourth quarter and full year,
respectively. 2016 also excludes second quarter fiscal 2016
impairment charges of $140.9.
Fiscal 2017 fourth quarter Energy segment sales declined 25%
year-over-year to $69 million. With no net impact from either
foreign currency or M&A activities, year-over-year core sales
also declined 25%. Hydratight’s core sales rate of change
experienced a sequential decline due to the worsening impact of
maintenance cancellations, deferrals and scope reductions. The
segment also experienced year-over-year declines in upstream
offshore oil & gas related demand. However, the non-oil &
gas portions of the segment continued to see the benefit of sales
growth. Adjusted operating profit margins include significant
losses from the upstream offshore oil & gas related product
lines, low labor and tool utilization rates associated with the
sluggish maintenance activity, and a provision for uncollectible
receivables associated with previous work for a now bankrupt
nuclear customer.
Engineered Solutions Segment
(US $ in millions)
Three Months Ended Year Ended
August 31, August 31, 2017 2016 2017 2016 Sales
$106.8 $90.3 $406.4 $396.9 Operating Profit (Loss) $6.2 $(5.0)
$16.9 $(43.0) Adjusted Op Profit (3) $6.1 $0.9 $20.4 $13.2 Adjusted
Op Profit % (3) 5.7% 1.0% 5.0% 3.3% (3) 2017 excludes $(0.1) and
$3.5 of restructuring charges in the fourth quarter and full year,
respectively. 2016 excludes $0.9 and $5.4 of restructuring charges
in the fourth quarter and full year, respectively and $5.1 of
losses on the Sanlo divestiture. 2016 full year results also
exclude second quarter 2016 impairment charges of $45.7 million.
Fourth quarter fiscal 2017 Engineered Solutions segment sales
were $107 million or 18% higher than the prior year. Excluding the
1% favorable currency and 3% Sanlo divestiture impacts,
year-over-year core sales increased 20%. Fiscal 2017 sales reflect
continued sequential improvement in customer production rates
across nearly all served off-highway markets including agriculture
and construction, as well as robust sales to China’s heavy-duty
truck OEMs. Fourth quarter adjusted operating profit margin
improved 470 basis points year-over-year due to higher volumes and
the benefit of prior restructuring actions.
Corporate Expenses and Income Taxes
Corporate expenses for the fourth quarter of fiscal 2017 were
$6.9 million, or $1.3 million higher than the comparable prior year
period primarily due to higher M&A expenses, principally due to
the pending Viking and Mirage transactions, and incentive
compensation. Excluding the tax benefit on restructuring and
impairment and divestiture charges, the effective income tax rate
for the fourth quarter was approximately -10% compared to 6% for
the comparable prior year period due to tax planning initiatives
and the geographic mix of earnings.
Outlook
Baker continued, "Looking into fiscal 2018, we are encouraged by
the progress across the organization in sales effectiveness, lean
revitalization, and portfolio actions. In addition, the
consolidation and simplification of roles as part of our recently
announced organizational redesign will forge a stronger, more
direct connection across the company and better position our teams
to execute Actuant’s long term strategy.
We currently project full year fiscal 2018 sales in the range of
$1.100 - 1.130 billion, reflecting a core sales increase of flat to
2%. The first half of the year we expect to see continued difficult
comparisons in the energy maintenance market offset by solid growth
levels across much of the remainder of the served end markets. We
expect these circumstances to reverse in the back half of the
fiscal year, with more difficult comparisons in Industrial and
Engineered Solutions, and stabilization within Energy.
Adjusted EPS (excluding restructuring and divestiture charges)
is expected to be in the range of $1.05-1.15, reflecting modestly
higher sales and the benefit of the restructuring actions offset by
a higher effective tax rate (estimated in the range of 5-10%) and
higher incentive compensation. Given the pending transactions
related to the divestiture of Viking SeaTech and acquisition of
Mirage, for purposes of our 2018 guidance we have assumed these
close simultaneously as of the end of the first fiscal quarter.
Full year free cash flow is expected to be in the range of
$85-95 million.
First quarter guidance, which includes Viking sales and
operating losses for the entire fiscal quarter, incorporates sales
in the $260-270 million range on a flat to 2% core sales decline,
and EPS of $0.14-0.19 (excluding restructuring and divestiture
charges). The first quarter of fiscal 2018 is expected to contain
the most difficult energy maintenance comparable of the year.
As always, our guidance excludes the impact of other potential
future acquisitions and divestitures, as well as stock buybacks,
which will be incorporated into future quarterly guidance updates
as they occur.
In summary, we continue to reinvigorate organic growth and
create a more efficient company by improving our execution and
reducing structural costs. We believe that these actions, along
with portfolio management initiatives, will best position the
company to succeed throughout market cycles and improve long term
shareholder value.”
Conference Call
Information
An investor conference call is scheduled for 10am CT today,
September 27, 2017. 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. Actuant disclaims any obligation to
publicly update or revise any forward-looking statements as a
result of new information, future events or any other reason.
About Actuant
Corporation
Actuant Corporation is a diversified industrial company serving
customers from operations in more than 30 countries. The Actuant
businesses are leaders in a broad array of niche markets including
branded hydraulic tools and solutions, specialized products and
services for energy markets and highly engineered position and
motion control systems. The Company was founded in 1910 and is
headquartered in Menomonee Falls, Wisconsin. Actuant trades on the
NYSE under the symbol ATU. For further information on Actuant and
its businesses, visit the Company's website at www.actuant.com.
(tables follow)
Actuant Corporation Condensed Consolidated Balance
Sheets (Dollars in thousands) (Unaudited)
August 31, August 31,
2017 2016 ASSETS Current assets Cash
and cash equivalents $ 229,571 $ 179,604 Accounts receivable, net
190,206 186,829 Inventories, net 143,651 130,756 Assets held for
sale 12,175 - Other current assets 61,663
45,463 Total current assets 637,266 542,652 Property,
plant and equipment, net 94,521 114,015 Goodwill 530,081 519,276
Other intangible assets, net 220,489 239,475 Other long-term assets
34,598 23,242 Total assets $
1,516,955 $ 1,438,660
LIABILITIES
AND SHAREHOLDERS' EQUITY Current liabilities Trade accounts
payable $ 133,387 $ 115,051 Accrued compensation and benefits
50,939 46,901 Current maturities of debt and short-term borrowings
30,000 18,750 Income taxes payable 6,080 9,254 Liabilities held for
sale 101,083 - Other current liabilities 57,445
51,956 Total current liabilities 378,934 241,912
Long-term debt, net 531,940 561,681 Deferred income taxes
29,859 31,356 Pension and postretirement benefit liabilities 19,862
25,667 Other long-term liabilities 55,821
57,094 Total liabilities 1,016,416 917,710
Shareholders' equity Capital stock 16,040 15,879 Additional paid-in
capital 138,449 114,980 Treasury stock (617,731 ) (617,731 )
Retained earnings 1,191,042 1,259,645 Accumulated other
comprehensive loss (227,261 ) (251,823 ) Stock held in trust (2,696
) (2,646 ) Deferred compensation liability 2,696
2,646 Total shareholders' equity 500,539
520,950 Total liabilities and
shareholders' equity $ 1,516,955 $ 1,438,660
Actuant Corporation Condensed Consolidated Statements of
Operations (Dollars in thousands, except per share
amounts) (Unaudited)
Three Months Ended Twelve
Months Ended August 31, August 31, August
31, August 31, 2017 2016
2017 2016 Net sales $ 275,695 $ 275,769 $
1,095,784 $ 1,149,410 Cost of products sold 179,175
179,489 716,067
746,013 Gross profit 96,520 96,280 379,717
403,397 Selling, administrative and engineering expenses
71,879 64,295 277,488 274,497 Amortization of intangible assets
5,106 5,596 20,474 22,943 Loss on product line divestiture - 5,092
- 5,092 Director & officer transition charges - - 7,784 -
Restructuring charges 1,795 3,113 7,228 14,571 Impairment &
other divestiture charges 116,979
- 116,979 186,511
Operating (loss) profit (99,239 ) 18,184 (50,236 ) (100,217
) Financing costs, net 7,683 7,532 29,703 28,768 Other
expense (income), net 1,493 (246
) 2,752 1,359 (Loss)
earnings before income tax benefit (108,415 ) 10,898 (82,691 )
(130,344 ) Income tax benefit (9,651 )
(6,504 ) (16,478 ) (25,170 ) Net
(loss) earnings $ (98,764 ) $ 17,402 $ (66,213
) $ (105,174 )
(Loss) earnings per
share Basic $ (1.65 ) $ 0.30 $ (1.11 ) $ (1.78 ) Diluted (1.65
) 0.29 (1.11 ) (1.78 )
Weighted average common shares
outstanding Basic 59,726 58,938 59,436 59,010 Diluted 59,726
59,598 59,436 59,010
Actuant Corporation Condensed
Consolidated Statements of Cash Flows (In thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
August 31, August 31, August 31, August
31, 2017 2016 2017 2016
Operating Activities Net (loss) earnings $ (98,764 ) $
17,402 $ (66,213 ) $ (105,174 ) Adjustments to reconcile net
earnings to net cash provided by operating activities: Impairment
& other divestiture charges, net of tax benefit 108,860 -
108,860 169,056 Depreciation and amortization 10,848 11,558 43,110
47,777 Stock-based compensation expense 1,881 2,874 16,733 10,442
Benefit for deferred income taxes (10,320 ) (15,178 ) (8,956 )
(17,403 ) Amortization of debt issuance costs 413 413 1,657 1,652
Other non-cash adjustments 179 (57 ) 1,202 (517 ) Gain on disposal
of businesses, net of tax benefit - (1,557 ) - (1,557 ) Changes in
components of working capital and other: Accounts receivable 19,143
12,506 (3,475 ) 20,261 Inventories (10,958 ) 4,766 (11,277 ) 10,202
Trade accounts payable 4,660 (4,229 ) 18,117 (7,727 ) Prepaid
expenses and other assets 1,745 4,691 (5,367 ) (3,291 ) Income tax
accounts 8,624 18,192 (11,298 ) (7,916 ) Accrued compensation and
benefits (17 ) 182 3,752 3,912 Other accrued liabilities 140
(8,857 ) 1,002 (2,020 ) Cash
provided by operating activities 36,434 42,706 87,847 117,697
Investing Activities Capital expenditures (5,276 )
(4,586 ) (28,195 ) (20,209 ) Proceeds from sale of property, plant
and equipment 326 661 570 9,296 Business acquisitions, net of cash
acquired - (1,242 ) - (81,916 ) Proceeds from sale of product line,
net of transaction costs - 9,695
- 9,695 Cash (used in) provided by investing
activities (4,950 ) 4,528 (27,625 ) (83,134 )
Financing
Activities Net borrowings (repayments) on revolving credit
facility - - - (210 ) Principal repayments on term loan (7,500 )
(3,750 ) (18,750 ) (3,750 ) Redemption of 5.625% senior notes - -
(500 ) - Purchase of treasury shares - (2,976 ) - (17,101 ) Taxes
paid related to the net share settlement of equity awards (66 ) (65
) (1,065 ) (1,409 ) Stock option exercises, related tax benefits
and other 954 687 8,917 6,416 Payment of deferred acquisition
consideration - - (742 ) - Cash dividend - -
(2,358 ) (2,376 ) Cash used in financing
activities (6,612 ) (6,104 ) (14,498 ) (18,430 ) Effect of
exchange rate changes on cash 5,745 1,385
4,243 (5,375 ) Net increase (decrease)
in cash and cash equivalents 30,617 42,515 49,967 10,758 Cash and
cash equivalents - beginning of period 198,954
137,089 179,604 168,846 Cash and
cash equivalents - end of period $ 229,571 $ 179,604
$ 229,571 $ 179,604
ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA
(Dollars in thousands)
FISCAL 2016
FISCAL 2017 Q1 Q2 Q3
Q4 TOTAL Q1 Q2
Q3 Q4 TOTAL SALES
INDUSTRIAL
SEGMENT $ 88,870 $ 81,189 $ 95,750 $ 94,008 $ 359,817 $ 87,290 $
91,648 $ 100,503 $ 100,315 $ 379,756 ENERGY SEGMENT 113,763 86,224
101,300 91,443 392,730 84,646 72,884 83,480 68,584 309,594
ENGINEERED SOLUTIONS SEGMENT 102,378
95,876 108,291 90,318
396,863 93,857
94,337 111,444
106,796 406,434 TOTAL $ 305,011
$ 263,289 $ 305,341 $ 275,769
$ 1,149,410 $ 265,793 $ 258,869
$ 295,427 $ 275,695 $
1,095,784
% SALES GROWTH INDUSTRIAL SEGMENT
-13 % -16 % -8 % -6 % -11 % -2 % 13 % 5 % 7 % 6 % ENERGY SEGMENT 2
% -14 % 2 % -9 % -5 % -26 % -15 % -18 % -25 % -21 % ENGINEERED
SOLUTIONS SEGMENT -10 % -8 % -8 % -9 % -9 % -8 % -2 % 3 % 18 % 2 %
TOTAL -7 % -13 % -5 % -8 % -8 % -13 % -2 % -3 % 0 % -5 %
OPERATING PROFIT (LOSS) INDUSTRIAL SEGMENT $ 21,263 $ 17,003
$ 22,519 $ 22,144 $ 82,929 $ 19,491 $ 19,037 $ 24,019 $ 24,076 $
86,623 ENERGY SEGMENT 12,124 5,348 12,438 8,941 38,851 3,328 (647 )
895 (3,675 ) (99 ) ENGINEERED SOLUTIONS SEGMENT 4,937 2,555 4,768
927 13,187 2,834 3,282 8,174 6,069 20,359 CORPORATE / GENERAL
(8,573 ) (6,928 ) (7,886 )
(5,623 ) (29,010 ) (6,450 )
(6,372 ) (5,372 ) (6,935
) (25,128 ) ADJUSTED OPERATING PROFIT $ 29,751 $
17,978 $ 31,839 $ 26,389 $ 105,957 $ 19,203 $ 15,300 $ 27,716 $
19,535 $ 81,755 IMPAIRMENT & OTHER DIVESTITURE CHARGES -
(186,511 ) - - (186,511 ) - - - (116,979 ) (116,979 ) LOSS ON SANLO
PRODUCT LINE DIVESTITURE - - - (5,092 ) (5,092 ) - - - - -
RESTRUCTURING CHARGES (4,380 ) (3,582 ) (3,496 ) (3,113 ) (14,571 )
(2,948 ) (2,101 ) (384 ) (1,795 ) (7,228 ) DIRECTOR & OFFICER
TRANSITION CHARGES - -
- - -
(7,784 ) - -
- (7,784 ) OPERATING PROFIT
(LOSS) $ 25,371 $ (172,115 ) $ 28,343
$ 18,184 $ (100,217 ) $ 8,471 $
13,199 $ 27,332 $ (99,239 ) $
(50,236 )
ADJUSTED OPERATING PROFIT % INDUSTRIAL
SEGMENT 23.9 % 20.9 % 23.5 % 23.6 % 23.0 % 22.3 % 20.8 % 23.9 %
24.0 % 22.8 % ENERGY SEGMENT 10.7 % 6.2 % 12.3 % 9.8 % 9.9 % 3.9 %
-0.9 % 1.1 % -5.4 % 0.0 % ENGINEERED SOLUTIONS SEGMENT 4.8 % 2.7 %
4.4 % 1.0 % 3.3 % 3.0 % 3.5 % 7.3 % 5.7 % 5.0 % ADJUSTED OPERATING
PROFIT % 9.8 % 6.8 % 10.4 % 9.6 % 9.2 % 7.2 % 5.9 % 9.4 % 7.1 % 7.5
%
EBITDA INDUSTRIAL SEGMENT $ 22,959 $ 18,829 $
24,686 $ 24,209 $ 90,683 $ 21,217 $ 21,064 $ 25,575 $ 25,851 $
93,707 ENERGY SEGMENT 18,348 10,968 16,819 13,717 59,852 9,108
2,943 4,633 142 16,826 ENGINEERED SOLUTIONS SEGMENT 8,498 6,882
8,504 5,270 29,154 6,281 7,277 11,716 9,533 34,807 CORPORATE /
GENERAL (8,201 ) (6,552 ) (7,560
) (5,182 ) (27,495 ) (5,879 )
(5,846 ) (4,868 ) (6,637
) (23,230 ) ADJUSTED EBITDA $ 41,604 $ 30,127 $
42,449 $ 38,014 $ 152,194 $ 30,727 $ 25,438 $ 37,056 $ 28,889 $
122,110 IMPAIRMENT & OTHER DIVESTITURE CHARGES - (186,511 ) - -
(186,511 ) - - - (116,979 ) (116,979 ) LOSS ON SANLO PRODUCT LINE
DIVESTITURE - - - (5,092 ) (5,092 ) - - - - - RESTRUCTURING CHARGES
(4,380 ) (3,582 ) (3,496 ) (3,113 ) (14,571 ) (2,948 ) (2,101 )
(384 ) (1,795 ) (7,228 ) DIRECTOR & OFFICER TRANSITION CHARGES
- - -
- - (7,784 )
- - -
(7,784 ) EBITDA $ 37,224 $
(159,966 ) $ 38,953 $ 29,809 $
(53,980 ) $ 19,995 $ 23,337 $ 36,672
$ (89,885 ) $ (9,881 )
ADJUSTED
EBITDA % INDUSTRIAL SEGMENT 25.8 % 23.2 % 25.8 % 25.8 % 25.2 %
24.3 % 23.0 % 25.4 % 25.8 % 24.7 % ENERGY SEGMENT 16.1 % 12.7 %
16.6 % 15.0 % 15.2 % 10.8 % 4.0 % 5.5 % 0.2 % 5.4 % ENGINEERED
SOLUTIONS SEGMENT 8.3 % 7.2 % 7.9 % 5.8 % 7.3 % 6.7 % 7.7 % 10.5 %
8.9 % 8.6 % ADJUSTED EBITDA % 13.6 % 11.4 % 13.9 % 13.8 % 13.2 %
11.6 % 9.8 % 12.5 % 10.5 % 11.1 %
ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA RECONCILIATION OF GAAP
MEASURES TO NON-GAAP MEASURES (Dollars in thousands,
except for per share amounts)
FISCAL 2016 FISCAL 2017 Q1
Q2 Q3 Q4
TOTAL Q1 Q2 Q3
Q4 TOTAL ADJUSTED EARNINGS (1) NET
(LOSS) EARNINGS $ 15,448 $ (159,190 ) $ 21,166 $ 17,402 $ (105,174
) $ 4,965 5,074 22,511 (98,764 ) $ (66,213 ) IMPAIRMENT & OTHER
DIVESTITURE CHARGES - 186,511 - - 186,511 - - - 116,979 116,979
INCOME TAX BENEFIT ON IMPAIRMENT & OTHER DIVESTITURE CHARGES -
(17,455 ) - - (17,455 ) - - - (8,119 ) (8,119 ) LOSS ON SANLO
PRODUCT LINE DIVESTITURE - - - 5,092 5,092 - - - - - INCOME TAX
BENEFIT ON SANLO PRODUCT LINE DIVESTITURE - - - (6,649 ) (6,649 ) -
- - - - DIRECTOR & OFFICER TRANSITION CHARGES - - - - - 7,784 -
- - 7,784 INCOME TAX BENEFIT ON DIRECTOR & OFFICER TRANSITION
CHARGES - - - - - (2,880 ) - - - (2,880 ) RESTRUCTURING CHARGES
4,380 3,582 3,496 3,113 14,571 2,948 2,101 384 1,795 7,228 INCOME
TAX BENEFIT ON RESTRUCTURING CHARGES (1,182 ) (1,185 ) (994 ) (960
) (4,321 ) (777 ) (564 ) (124 ) (494 ) (1,959 ) INCOME TAX BENEFIT
- - -
- - -
- (3,193 ) -
(3,193 ) ADJUSTED EARNINGS $ 18,646
$ 12,263 $ 23,668 $ 17,998
$ 72,575 $ 12,040 $ 6,611
$ 19,578 $ 11,397 $ 49,627
ADJUSTED DILUTED EARNINGS PER SHARE (1) NET
EARNINGS (LOSS) $ 0.26 $ (2.70 ) $ 0.36 $ 0.29 $ (1.78 ) $ 0.08 $
0.08 $ 0.37 $ (1.65 ) $ (1.11 ) IMPAIRMENT & OTHER DIVESTITURE
CHARGES - 3.16 - - 3.16 - - - 1.96 1.96 INCOME TAX BENEFIT ON
IMPAIRMENT & OTHER DIVESTITURE CHARGES - (0.30 ) - - (0.30 ) -
- - (0.14 ) (0.14 ) LOSS ON SANLO PRODUCT LINE DIVESTITURE - - -
0.09 0.08 - - - - - INCOME TAX BENEFIT ON SANLO PRODUCT LINE
DIVESTITURE - - - (0.11 ) (0.11 ) - - - - - DIRECTOR & OFFICER
TRANSITION CHARGES - - - - - 0.13 - - - 0.13 INCOME TAX BENEFIT ON
DIRECTOR & OFFICER TRANSITION CHARGES - - - - - (0.05 ) - - -
(0.05 ) RESTRUCTURING CHARGES 0.07 0.06 0.06 0.05 0.24 0.05 0.03
0.01 0.03 0.12 INCOME TAX BENEFIT ON RESTRUCTURING CHARGES (0.02 )
(0.02 ) (0.02 ) (0.02 ) (0.07 ) (0.01 ) (0.01 ) - (0.01 ) (0.03 )
INCOME TAX BENEFIT - -
- - -
- - (0.05 )
- (0.05 ) ADJUSTED DILUTED EARNINGS PER
SHARE $ 0.31 $ 0.21 $ 0.40
$ 0.30 $ 1.22 $ 0.20 $
0.10 $ 0.33 $ 0.19 $ 0.83
ADJUSTED EBITDA (2) NET EARNINGS (LOSS) (GAAP
MEASURE) $ 15,448 $ (159,190 ) $ 21,166 $ 17,402 $ (105,174 ) $
4,965 $ 5,074 $ 22,511 $ (98,764 ) $ (66,213 ) FINANCING COSTS, NET
7,117 6,866 7,253 7,532 28,768 7,132 7,334 7553 7,683 29,703 INCOME
TAX EXPENSE (BENEFIT) 2,187 (20,026 ) (827 ) (6,504 ) (25,170 )
(2,998 ) 200 (4,029 ) (9,651 ) (16,478 ) DEPRECIATION &
AMORTIZATION 12,472 12,384
11,361 11,379
47,596 10,896 10,729
10,637 10,847
43,108 EBITDA $ 37,224 $ (159,966 ) $ 38,953 $
29,809 $ (53,980 ) $ 19,995 23,337 36,672 (89,885 ) $ (9,881 )
IMPAIRMENT & OTHER DIVESTITURE CHARGES - 186,511 - - 186,511 -
- - 116,979 116,979 LOSS ON SANLO PRODUCT LINE DIVESTITURE - - -
5,092 5,092 - - - - - DIRECTOR & OFFICER TRANSITION CHARGES - -
- - - 7,784 - - - 7,784 RESTRUCTURING CHARGES 4,380
3,582 3,496
3,113 14,571 2,948
2,101 384 1,795
7,228 ADJUSTED EBITDA $ 41,604
$ 30,127 $ 42,449 $ 38,014
$ 152,194 $ 30,727 25,438
37,056 28,889
$ 122,110
FOOTNOTES NOTE: The total of
the individual quarters may not equal the annual total due to
rounding. (1) Adjusted earnings and adjusted diluted
earnings per share represent net (loss) earnings and (loss)
earnings 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 (loss) earnings or diluted (loss) earnings
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. (2) EBITDA represents net (loss)
earnings before financing costs, net, income tax 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 (loss) earnings, operating (loss) profit 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)
Q1
FISCAL 2018 FISCAL 2018 LOW HIGH
LOW HIGH RECONCILIATION OF GAAP DILUTED
EARNINGS PER SHARE TO ADJUSTED DILUTED EARNINGS PER SHARE
GUIDANCE GAAP DILUTED EARNINGS PER SHARE $ 0.03 $ 0.08 $ 0.91 $
1.01 GAIN/LOSS ON PRODUCT LINE DIVESTITURE, NET OF TAX (1) TBD TBD
TBD TBD RESTRUCTURING CHARGES 0.11 0.11
0.14 0.14 ADJUSTED DILUTED EARNINGS PER
SHARE GUIDANCE $ 0.14 $ 0.19 $ 1.05 $ 1.15
RECONCILIATION OF GAAP CASH FLOW FROM
OPERATIONS TO FREE CASH FLOW CASH FLOW FROM OPERATIONS $ 100 $
110 CAPITAL EXPENDITURES (25 ) (25 ) OTHER 10
10 FREE CASH FLOW GUIDANCE $ 85 $ 95
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 the sale of the Viking SeaTech business is
subject to numerous uncertainties which makes any estimate not
meaningful.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170927005272/en/
Actuant CorporationKaren BauerCommunications & Investor
Relations Leader262-293-1562
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