ATU Actuant Corp

Actuant Corporation (NYSE: ATU) today announced results for its first quarter ended November 30, 2017.

Highlights

• Consolidated sales increased 9% over the comparable prior year quarter with a 3% benefit from foreign currency rate changes. First quarter core sales (total sales excluding the impact of acquisitions, divestitures and foreign currency rate changes) increased 6% on a year-over-year basis with strong volumes in both the Industrial and Engineered Solutions segments.
• GAAP diluted earnings per share (“EPS”) were $0.09 in the first quarter of fiscal 2018 versus $0.08 in the prior year. Excluding first quarter fiscal 2018 restructuring charges of $0.10 per share, adjusted EPS was $0.19 (see Consolidated Results below and the attached reconciliation of earnings).
• Restructuring activities related to leadership changes and other items proceeded as anticipated with total charges of approximately $6.6 million in the first quarter.
• Reaffirmed full year sales and adjusted EPS guidance of $1.10-1.13 billion and $1.05-1.15 per share, respectively (excluding restructuring and divestiture and impairment charges).
• Just after quarter end, completed the previously announced divestiture of the Viking offshore mooring business and the acquisition of Mirage Machines.

Randy Baker, President and CEO of Actuant commented, “Actuant delivered solid first quarter financial results. Consolidated sales were above our expectations with robust on and off highway equipment demand and strong industrial volumes which more than offset the continued challenging energy maintenance environment. Unfavorable mix and higher warranty and other one-time costs contributed to the lower than expected margin flow through on those higher sales. Despite these items, and a modestly higher quarterly effective income tax rate, we delivered adjusted EPS of $0.19, at the high end of our guidance range. Importantly, we completed the portfolio management actions needed to significantly limit our offshore, upstream oil and gas exposure with the divestiture of Viking just after quarter end. In summary, a good start to the fiscal year and I am appreciative of the efforts and execution of Actuant employees to meet our financial commitments.”

Consolidated Results

Consolidated sales for the first quarter were $289 million, 9% higher than the $266 million in the comparable prior year quarter. Core sales improved 6% year-over-year while foreign currency rate changes increased sales 3%, with no impact from acquisitions or divestitures. Fiscal 2018 first quarter net earnings and EPS were $5.2 million, or $0.09, compared to $5.0 million and $0.08, respectively, in the comparable prior year quarter. Fiscal 2018 first quarter earnings included restructuring charges of $6.6 million ($6.3 million or $0.10 per share after tax). First quarter 2017 results included $2.9 million ($2.2 million or $0.04 per share, after tax) of restructuring charges and $7.8 million ($4.9 million or $0.08 per share after tax) of director and officer transition charges. Excluding these items, adjusted EPS for the first quarter of fiscal 2018 was $0.19 compared to $0.20 in the comparable prior year period (see attached reconciliation of earnings).

Segment Results

Industrial Segment (US $ in millions)

        Three Months Ended November 30, 2017   2016 Sales $96.9 $87.3 Operating Profit $18.3 $18.8 Adjusted Operating Profit (1) $19.5 $19.5 Adjusted Operating Profit %(1) 20.1% 22.3%

(1) Excludes restructuring charges of $1.2 million and $0.7 million in fiscal 2018 and 2017, respectively.

First quarter fiscal 2018 Industrial segment sales were $97 million or 11% higher than the prior year. The impact of foreign currency exchange rates was a 2% benefit resulting in a 9% year-over-year core sales increase. Overall demand for standard industrial tools remained strong globally and across the diverse set of end markets served, representing both market strength and the outgrowth associated with our commercial effectiveness efforts. The first quarter’s robust heavy lifting technology volume more than offset a decline in the concrete tensioning product category. First quarter adjusted operating profit margin of 20.1% reflects solid incremental margins on the industrial tool sales. However, these were more than offset by both unfavorable sales mix and discrete costs associated with heavy lifting projects, along with continued facility consolidation inefficiencies.

Energy Segment (US $ in millions)

        Three Months Ended November 30, 2017   2016 Sales $75.8 $84.6 Operating Profit $0.3 $3.2 Adjusted Operating Profit (2) $1.2 $3.3 Adjusted Operating Profit %(2) 1.6% 3.9%

(2) Excludes restructuring charges of $0.9 million and $0.1 million in the first quarter of fiscal 2018 and 2017, respectively.

Fiscal 2018 first quarter Energy segment sales declined 10% year-over-year to $76 million. Excluding the 2% favorable impact of the weaker US dollar, core sales declined 12%. As anticipated, Hydratight’s sales decreased in line with expectations due to the continuation of maintenance deferrals and scope reductions, most notably in the Asia Pacific region. Cortland sales grew double digits on the strength of non-energy rope and cable applications while Viking sales declined as anticipated. Energy segment adjusted operating profit margin declined to 1.6% but the segment was profitable despite the lower volumes and Viking operating losses due to the benefit of cost reductions actions.

Engineered Solutions Segment (US $ in millions)

        Three Months Ended November 30, 2017   2016 Sales $116.2 $93.9 Operating Profit $6.3 $0.7 Adjusted Operating Profit (3) $6.6 $2.8 Adjusted Operating Profit %(3) 5.7% 3.0%

(3) Excludes restructuring charges of $0.3 million and $2.1 million in the first quarter of fiscal 2018 and 2017, respectively.

First quarter fiscal 2018 Engineered Solutions segment sales were $116 million or 24% above the prior year. Excluding the 4% benefit of the weaker US dollar, year-over-year core sales increased 20%. The robust sales growth was seen across virtually every end market including heavy-duty truck, agriculture and various other off-highway equipment categories. First quarter adjusted operating profit margin improved 270 basis points from the comparable prior year quarter due to the higher volumes and cost reduction efforts.

Corporate Expenses and Income Taxes (excluding restructuring and transition charges)

Corporate expenses for the first quarter of fiscal 2018 were $6.0 million, or $0.4 million lower than the comparable prior year period due primarily to the benefit of cost reduction actions. The approximate 15% first quarter effective income tax rate was higher than the prior year’s 5% and modestly above expectations.

Financial Position

Net debt at November 30, 2017 was approximately $390 million (total debt of $555 million less $165 million of cash) which includes approximately $27 million in lease buy-out payments made during the quarter as a condition precedent to completion of the Viking divestiture on December 1, 2017.

Outlook

Baker continued, "As the first quarter results demonstrate, we believe we are on track to meet our financial guidance for the fiscal year. Our commitment to investing in organic growth initiatives, including commercial effectiveness and new products, is helping to deliver on our goal of sales outperformance versus the underlying markets. While we have seen margin headwinds, we are making progress correcting underlying operating inefficiencies, improving mix and restructuring our businesses where necessary.

For the full year, we are maintaining our prior sales guidance in the $1.10-1.13 billion range with core sales now up 1-3%. We are also maintaining our adjusted EPS guidance in the $1.05-1.15 range, with a full year estimated effective income tax rate of 5-10%. The effective date of the Viking divestiture and Mirage acquisition is consistent with our initial 2018 guidance assumptions. Free cash flow is projected to be in the $85-95 million range in fiscal 2018.

We expect second quarter sales to be in the $265-275 million range, with adjusted EPS of $0.10-0.15. The second quarter outlook incorporates the normal seasonal slowdown experienced across nearly all of our businesses, along with moderating heavy duty truck demand in China.

All guidance excludes restructuring and divestiture and impairment charges, as well as the impact of potential future acquisitions and share repurchases. We have a strong pipeline of focused tuck-in acquisitions, and we have ample capital to fund both our organic and inorganic deployment priorities."

Conference Call Information

An investor conference call is scheduled for 10 am CT today, December 20, 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.

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  Actuant Corporation Condensed Consolidated Balance Sheets (Dollars in thousands) (Unaudited)           November 30, August 31, 2017 2017 ASSETS Current assets Cash and cash equivalents $ 165,050 $ 229,571 Accounts receivable, net 201,317 190,206 Inventories, net 154,246 143,651 Assets held for sale 21,393 21,835 Other current assets   76,330     61,663   Total current assets 618,336 646,926   Property, plant and equipment, net 98,988 94,521 Goodwill 531,454 530,081 Other intangible assets, net 216,032 220,489 Other long-term assets   25,431     24,938     Total assets $ 1,490,241   $ 1,516,955     LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Trade accounts payable $ 141,745 $ 133,387 Accrued compensation and benefits 37,770 50,939 Current maturities of debt and short-term borrowings 30,000 30,000 Income taxes payable 6,642 6,080 Liabilities held for sale 70,787 101,083 Other current liabilities   56,975     57,445   Total current liabilities 343,919 378,934   Long-term debt, net 524,629 531,940 Deferred income taxes 29,567 29,859 Pension and postretirement benefit liabilities 19,539 19,862 Other long-term liabilities   56,269     55,821   Total liabilities 973,923 1,016,416   Shareholders' equity Capital stock 16,079 16,040 Additional paid-in capital 145,938 138,449 Treasury stock (617,731 ) (617,731 ) Retained earnings 1,196,268 1,191,042 Accumulated other comprehensive loss (224,236 ) (227,261 ) Stock held in trust (2,722 ) (2,696 ) Deferred compensation liability   2,722     2,696   Total shareholders' equity   516,318     500,539     Total liabilities and shareholders' equity $ 1,490,241   $ 1,516,955       Actuant Corporation Condensed Consolidated Statements of Earnings (Dollars in thousands, except per share amounts) (Unaudited)     Three Months Ended November 30, November 30, 2017   2016   Net sales $ 288,955 $ 265,793 Cost of products sold   188,044     172,726   Gross profit 100,911 93,067   Selling, administrative and engineering expenses 74,478 68,602 Amortization of intangible assets 5,131 5,262 Director & officer transition charges - 7,784 Restructuring charges   6,629     2,948   Operating profit 14,673 8,471   Financing costs, net 7,514 7,132 Other expense (income), net   329     (628 ) Earnings before income tax expense (benefit) 6,830 1,967   Income tax expense (benefit)   1,604     (2,998 ) Net earnings $ 5,226   $ 4,965     Earnings per share Basic $ 0.09 $ 0.08 Diluted 0.09 0.08   Weighted average common shares outstanding Basic 59,871 58,972 Diluted 60,609 59,616   Actuant Corporation Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited)     Three Months Ended November 30, November 30, 2017 2016   Operating Activities Net earnings $ 5,226 $ 4,965 Adjustments to reconcile net earnings to net cash (used in) provided by operating activities: Depreciation and amortization 10,090 10,896 Stock-based compensation expense 5,420 9,554 Benefit for deferred income taxes (307 ) (2,865 ) Amortization of debt issuance costs 413 413 Other non-cash adjustments 113 464 Changes in components of working capital and other: Accounts receivable (11,478 ) (8,252 ) Inventories (11,628 ) (8,142 ) Trade accounts payable 6,204 6,768 Prepaid expenses and other assets (12,043 ) (5,485 ) Income tax accounts (1,714 ) (1,946 ) Accrued compensation and benefits (12,588 ) (2,757 ) Other accrued liabilities   1,834     8,850   Cash (used in) provided by operating activities (20,458 ) 12,463   Investing Activities Capital expenditures (7,904 ) (5,139 ) Proceeds from sale of property, plant and equipment 32 130 Lease buyout for future divested business   (27,718 )   -   Cash used in investing activities (35,590 ) (5,009 )   Financing Activities Principal repayments on term loan (7,500 ) (3,750 )

Stock option exercises & other

2,231 964 Taxes paid related to the net share settlement of equity awards (282 ) (223 ) Cash dividend   (2,390 )   (2,358 ) Cash used in financing activities (7,941 ) (5,367 )   Effect of exchange rate changes on cash   (532 )   (4,820 ) Net decrease in cash and cash equivalents (64,521 ) (2,733 ) Cash and cash equivalents - beginning of period   229,571     179,604   Cash and cash equivalents - end of period $ 165,050   $ 176,871                         ACTUANT CORPORATION SUPPLEMENTAL UNAUDITED DATA   (Dollars in thousands)   FISCAL 2017 FISCAL 2018 Q1   Q2   Q3   Q4   TOTAL Q1   Q2   Q3   Q4   TOTAL SALES INDUSTRIAL SEGMENT $ 87,290 $ 91,648 $ 100,503 $ 100,315 $ 379,756 $ 96,916 $   - $   - $   - $ 96,916 ENERGY SEGMENT 84,646 72,884 83,480 68,584 309,594 75,841 - - - 75,841 ENGINEERED SOLUTIONS SEGMENT   93,857       94,337       111,444       106,796       406,434     116,198         -       -       -     116,198   TOTAL $ 265,793     $ 258,869     $ 295,427     $ 275,695     $ 1,095,784   $ 288,955     $   -   $   -   $   -   $ 288,955     % SALES GROWTH INDUSTRIAL SEGMENT -2 % 13 % 5 % 7 % 6 % 11 % - - - 11 % ENERGY SEGMENT -26 % -15 % -18 % -25 % -21 % -10 % - - - -10 % ENGINEERED SOLUTIONS SEGMENT -8 % -2 % 3 % 18 % 2 % 24 % - - - 24 % TOTAL -13 % -2 % -3 % 0 % -5 % 9 % - - - 9 %   OPERATING PROFIT (LOSS) INDUSTRIAL SEGMENT $ 19,491 $ 19,037 $ 24,019 $ 24,076 $ 86,623 $ 19,482 $ - $ - $ - $ 19,482 ENERGY SEGMENT 3,328 (647 ) 895 (3,675 ) (99 ) 1,224 - - - 1,224 ENGINEERED SOLUTIONS SEGMENT 2,834 3,282 8,174 6,069 20,359 6,618 - - - 6,618 CORPORATE / GENERAL   (6,450 )     (6,372 )     (5,372 )     (6,935 )     (25,128 )   (6,022 )       -       -       -     (6,022 ) ADJUSTED OPERATING PROFIT $ 19,203 $ 15,300 $ 27,716 $ 19,535 $ 81,755 $ 21,302 $ - $ - $ - $ 21,302 IMPAIRMENT & OTHER DIVESTITURE CHARGES - - - (116,979 ) (116,979 ) - - - - - RESTRUCTURING CHARGES (2,948 ) (2,101 ) (384 ) (1,795 ) (7,228 ) (6,629 ) - - - (6,629 ) DIRECTOR & OFFICER TRANSITION CHARGES   (7,784 )     -       -       -       (7,784 )   -         -       -       -     -   OPERATING PROFIT (LOSS) $ 8,471     $ 13,199     $ 27,332     $ (99,239 )   $ (50,236 ) $ 14,673     $   -   $   -   $   -   $ 14,673     ADJUSTED OPERATING PROFIT % INDUSTRIAL SEGMENT 22.3 % 20.8 % 23.9 % 24.0 % 22.8 % 20.1 % - - - 20.1 % ENERGY SEGMENT 3.9 % -0.9 % 1.1 % -5.4 % 0.0 % 1.6 % - - - 1.6 % ENGINEERED SOLUTIONS SEGMENT 3.0 % 3.5 % 7.3 % 5.7 % 5.0 % 5.7 % - - - 5.7 % ADJUSTED OPERATING PROFIT % 7.2 % 5.9 % 9.4 % 7.1 % 7.5 % 7.4 % - - - 7.4 %   EBITDA INDUSTRIAL SEGMENT $ 21,217 $ 21,064 $ 25,575 $ 25,851 $ 93,707 $ 21,202 $ - $ - $ - $ 21,202 ENERGY SEGMENT 9,108 2,943 4,633 142 16,826 5,125 - - - 5,125 ENGINEERED SOLUTIONS SEGMENT 6,281 7,277 11,716 9,533 34,807 10,254 - - - 10,254 CORPORATE / GENERAL   (5,879 )     (5,846 )     (4,868 )     (6,637 )     (23,230 )   (5,518 )       -       -       -     (5,518 ) ADJUSTED EBITDA $ 30,727 $ 25,438 $ 37,056 $ 28,889 $ 122,110 $ 31,063 $ - $ - $ - $ 31,063 IMPAIRMENT & OTHER DIVESTITURE CHARGES - - - (116,979 ) (116,979 ) - - - - - RESTRUCTURING CHARGES (2,948 ) (2,101 ) (384 ) (1,795 ) (7,228 ) (6,629 ) - - - (6,629 ) DIRECTOR & OFFICER TRANSITION CHARGES   (7,784 )     -       -       -       (7,784 )   -         -       -       -     -   EBITDA $ 19,995     $ 23,337     $ 36,672     $ (89,885 )   $ (9,881 ) $ 24,434     $   -   $   -   $   -   $ 24,434     ADJUSTED EBITDA % INDUSTRIAL SEGMENT 24.3 % 23.0 % 25.4 % 25.8 % 24.7 % 21.9 % - - - 21.9 % ENERGY SEGMENT 10.8 % 4.0 % 5.5 % 0.2 % 5.4 % 6.8 % - - - 6.8 % ENGINEERED SOLUTIONS SEGMENT 6.7 % 7.7 % 10.5 % 8.9 % 8.6 % 8.8 % - - - 8.8 % ADJUSTED EBITDA % 11.6 % 9.8 % 12.5 % 10.5 % 11.1 % 10.8 % - - - 10.8 %        

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

  ACTUANT CORPORATION SUPPLEMENTAL UNAUDITED DATA RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES (Dollars in thousands, except for per share amounts)     FISCAL 2017 FISCAL 2018 Q1   Q2   Q3   Q4   TOTAL Q1   Q2   Q3   Q4   TOTAL ADJUSTED EARNINGS (1) NET EARNINGS (LOSS) $ 4,965 $ 5,074 $ 22,511 $ (98,764 ) $ (66,213 ) $ 5,226 $   - $   - $   - $ 5,226 IMPAIRMENT & OTHER DIVESTITURE CHARGES - - - 116,979 116,979 - - - - - INCOME TAX BENEFIT ON IMPAIRMENT & OTHER DIVESTITURE CHARGES - - - (8,119 ) (8,119 ) - - - - - DIRECTOR & OFFICER TRANSITION CHARGES 7,784 - - - 7,784 - - - - - INCOME TAX BENEFIT ON DIRECTOR & OFFICER TRANSITION CHARGES (2,880 ) - - - (2,880 ) - - - - - RESTRUCTURING CHARGES 2,948 2,101 384 1,795 7,228 6,629 - - - 6,629 INCOME TAX BENEFIT ON RESTRUCTURING CHARGES (777 ) (564 ) (124 ) (494 ) (1,959 ) (375 ) - - - (375 ) INCOME TAX BENEFIT   -       -       (3,193 )     -       (3,193 )   -         -       -       -     -   ADJUSTED EARNINGS $ 12,040     $ 6,611     $ 19,578     $ 11,397     $ 49,627   $ 11,480     $   -   $   -   $   -   $ 11,480     ADJUSTED DILUTED EARNINGS PER SHARE (1) NET EARNINGS (LOSS) $ 0.08 $ 0.08 $ 0.37 $ (1.65 ) $ (1.11 ) $ 0.09 $ - $ - $ - $ 0.09 IMPAIRMENT & OTHER DIVESTITURE CHARGES - - - 1.96 1.96 - - - - - INCOME TAX BENEFIT ON IMPAIRMENT & OTHER DIVESTITURE CHARGES - - - (0.14 ) (0.14 ) - - - - - DIRECTOR & OFFICER TRANSITION CHARGES 0.13 - - - 0.13 - - - - - INCOME TAX BENEFIT ON DIRECTOR & OFFICER TRANSITION CHARGES (0.05 ) - - - (0.05 ) - - - - - RESTRUCTURING CHARGES 0.05 0.04 0.01 0.03 0.12 0.11 - - - 0.11 INCOME TAX BENEFIT ON RESTRUCTURING CHARGES (0.01 ) (0.01 ) (0.01 ) (0.01 ) (0.03 ) (0.01 ) - - - (0.01 ) INCOME TAX BENEFIT   -       -       (0.05 )     -       (0.05 )   -         -       -       -     -   ADJUSTED DILUTED EARNINGS PER SHARE $ 0.20     $ 0.11     $ 0.32     $ 0.19     $ 0.83   $ 0.19     $   -   $   -   $   -   $ 0.19     ADJUSTED EBITDA (2) NET EARNINGS (LOSS) (GAAP MEASURE) $ 4,965 $ 5,074 $ 22,511 $ (98,764 ) $ (66,213 ) $ 5,226 $ - $ - $ - $ 5,226 FINANCING COSTS, NET 7,132 7,334 7,553 7,683 29,703 7,514 - - - 7,514 INCOME TAX (BENEFIT) EXPENSE (2,998 ) 200 (4,029 ) (9,651 ) (16,478 ) 1,604 - - - 1,604 DEPRECIATION & AMORTIZATION   10,896       10,729       10,637       10,847       43,108     10,090         -       -       -     10,090   EBITDA $ 19,995 $ 23,337 $ 36,672 $ (89,885 ) $ (9,881 ) $ 24,434 $ - $ - $ - $ 24,434 IMPAIRMENT & OTHER DIVESTITURE CHARGES - - - 116,979 116,979 - - - - - DIRECTOR & OFFICER TRANSITION CHARGES 7,784 - - - 7,784 - - - - - RESTRUCTURING CHARGES   2,948       2,101       384       1,795       7,228     6,629         -       -       -     6,629   ADJUSTED EBITDA $ 30,727     $ 25,438     $ 37,056     $ 28,889     $ 122,110   $ 31,063     $   -   $   -   $   -   $ 31,063   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 earnings (loss) and earnings (loss) per share per the Condensed Consolidated Statements 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 (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.   (2) 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 Earnings. 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 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 $ (0.21 ) $ (0.16 ) $ 0.67 $ 0.77 IMPAIRMENT & OTHER DIVESTITURE CHARGES (1) 0.25 0.25 0.25 0.25 RESTRUCTURING CHARGES   0.06       0.06     0.13       0.13   ADJUSTED DILUTED EARNINGS PER SHARE GUIDANCE $ 0.10     $ 0.15   $ 1.05     $ 1.15       RECONCILIATION OF GAAP CASH FLOW FROM OPERATIONS TO FREE CASH FLOW CASH FLOW FROM OPERATIONS $ 105 $ 115 CAPITAL EXPENDITURES (30 ) (30 ) 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)

Represents the estimated remaining divestiture loss (net of tax) to be recognized upon completion of the sale of the Viking Seatech business effective December 1, 2017 (our fiscal 2018 second quarter).

 

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Actuant CorporationKaren BauerCommunications & Investor Relations Leader262-293-1562