Actuant Corporation (NYSE: ATU) today announced results for its
second quarter ended February 28, 2018.
Highlights
- Consolidated sales increased 6% over
the comparable prior year quarter with a 5% benefit from foreign
currency rate changes and a 2% reduction associated with net
acquisitions and divestitures. Second quarter core sales (total
sales excluding the impact of acquisitions, divestitures and
foreign currency rate changes) increased 3% on a year-over-year
basis with strong volumes in both the Engineered Solutions and
Industrial segments.
- GAAP diluted loss per share (“EPS”) was
$(0.30) in the second quarter of fiscal 2018 versus earnings of
$0.08 in the prior year. Excluding second quarter fiscal 2018
one-time items totaling $0.43 per share, adjusted EPS was $0.13
(see Consolidated Results below, along with the attached
reconciliation of earnings).
- During the fiscal 2018 second quarter,
the company recognized a net provisional one-time adjustment to
income tax expense of $8.4 million, or $0.14 per share related to
U.S. Tax Reform.
- Restructuring activities related to
aligning the cost structure continue to be executed with total
charges of approximately $4.3 million in the second quarter.
- Increased full year sales guidance to
$1.140-1.160 billion, however modestly reduced the expected
adjusted EPS range to $1.00-1.10 from $1.05-1.15 per share
(excluding one-time items).
Randy Baker, President and CEO of Actuant commented, “Actuant
delivered solid sales growth in the second quarter, but regrettably
we continue to experience margin pressures resulting from
longstanding specialty projects along with increasing production,
commercial and engineering expenses to support high service levels
and growth. Many of the core base businesses are seeing good profit
traction; however we are disappointed in the number and scale of
operational, mix and other issues that are largely offsetting these
improvements. We continue to diligently pursue the restructuring
and portfolio management actions that are anticipated to simplify
and improve the fundamental operating performance of Actuant. In
summary, while I am clearly dissatisfied in the pace of overall
improvement, I am encouraged that we are getting these issues
behind us and that we have a roadmap to ultimately turn the corner
and fully capitalize on the broad based strong economic backdrop. I
remain appreciative of the commitment and efforts of the Actuant
teams across the globe.”
Consolidated Results
Consolidated sales for the second quarter were $275 million, 6%
higher than the $259 million in the comparable prior year quarter.
Core sales improved 3% year-over-year while foreign currency rate
changes increased sales 5% and the net impact from the Mirage
acquisition net of the Viking divestiture reduced sales by 2%.
Fiscal 2018 second quarter net loss and EPS were $(18.2) million,
or $(0.30), compared to $5.1 million or $0.08, respectively, in the
comparable prior year quarter. Fiscal 2018 second quarter earnings
included restructuring charges of $4.3 million ($3.8 million or
$0.06 per share after tax), impairment & divestiture charges of
$3.0 million ($12.4 million or $0.21 per share after tax), $8.4
million ($0.14 per share) related to U.S. tax reform and $1.4
million ($0.02 per share) for equity compensation deferred tax
adjustments. Second quarter 2017 results included $2.1 million
($1.5 million or $0.03 per share after tax) of restructuring
charges. Excluding these items, adjusted EPS for the second quarter
of fiscal 2018 was $0.13 compared to $0.11 in the comparable prior
year period (see attached reconciliation of earnings).
Consolidated sales for the six months ended February 28, 2018
were $564 million, 8% higher than the $525 million in the
comparable prior year period. Core sales improved 5% year-over-year
while foreign currency rate changes increased sales 4%, and the net
impact of acquisitions and divestitures reduced sales by 1%. Fiscal
2018’s first half net loss and EPS were $(13.0 million), or
$(0.22), compared to earnings and EPS of $10.0 million and $0.17,
respectively, in the comparable prior year period. Fiscal 2018
included restructuring charges of $10.9 million ($10.0 million or
$0.16 per share after tax) along with the aforementioned impairment
& divestiture, tax reform and equity compensation items. First
half 2017 results included $5.0 million ($3.7 million or $0.07 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 half of fiscal 2018 was $0.31 which is consistent with the
comparable prior year period (see attached reconciliation of
earnings).
Tax Reform
As a result of the U.S. Tax Reform signed into law in December
2017, Actuant recognized a one-time tax charge of $8 million in the
second quarter of fiscal 2018. This charge is comprised of
approximately $16 million in repatriation tax (aka toll charge) on
accumulated overseas earnings offset by an $8 million net benefit
associated with balance sheet revaluation. These impacts from Tax
Reform should be considered provisional and may be subject to
further adjustment.
Segment Results
Industrial Segment(US $ in millions)
Three Months Ended Feb 28, Six Months Ended Feb 28, 2018
2017 2018 2017 Sales $99.1 $91.6 $196.0 $178.9
Operating Profit $16.8 $18.3 $35.0 $37.1 Adjusted Op Profit (1)
$18.5 $19.0 $38.0 $38.5 Adjusted Op Profit % (1) 18.7% 20.8% 19.4%
21.5%
(1) 2018 excludes $1.7 and $3.0 of restructuring charges in the
second quarter and first half, respectively. 2017 excludes $0.7 and
$1.4 of restructuring charges in the second quarter and first half,
respectively.
Second quarter fiscal 2018 Industrial segment sales were $99
million or 8% higher than the prior year. The impact of foreign
currency exchange rates was a 4% benefit resulting in a 4%
year-over-year core sales increase. Overall demand for standard
industrial tools remained strong globally and across the diverse
set of end markets served, with particular strength in the bolting
and OEM service tool categories. Their double digit growth
represents both broad market strength and the impact of new product
and commercial coverage activities. The segment’s overall core
growth rate includes lower heavy lifting technology and concrete
tensioning volumes which both declined in the mid-teens on a
percentage basis. Second quarter adjusted operating profit margin
declined to 18.7% as the incremental volumes were more than offset
by approximately $2 million in specialty heavy lifting project cost
overruns, production inefficiencies and lower volumes in concrete
tensioning, and higher year-over-year commercial and engineering
investments to support growth.
Energy Segment(US $ in millions)
Three Months Ended Feb 28,
Six Months Ended Feb 28,
2018 2017
2018
2017 Sales $66.0 $72.9 $141.8 $157.5 Operating (Loss) Profit
$(4.5) $(0.6) $(4.2) $2.6 Adjusted Op (Loss) Profit (2) $0.7 $(0.6)
$2.0 $2.7 Adjusted Op (Loss) Profit % (2) 1.1% (0.9)% 1.4% 1.7%
(2) 2018 excludes $2.3 and $3.2 of restructuring charges in the
second quarter and first half, respectively. Both 2018 periods also
exclude $3.0 in impairment & divestiture charges. 2017 excludes
$0.1 of restructuring charges in the first half.
Fiscal 2018 second quarter Energy segment sales declined 9%
year-over-year to $66 million. Excluding the 4% favorable impact of
the weaker US dollar and 5% headwind from the net of the Viking
divestiture and Mirage acquisition, core sales declined 8%.
Hydratight continued to experience maintenance deferrals and scope
reductions; however the core sales rate of change improved
sequentially. The weakness remains most pronounced in the Asia
Pacific region with modestly improving activity levels within the
Middle East region. Cortland sales grew mid-single digits on higher
medical demand along with improving offshore oil & gas rope and
cable activity. Energy segment adjusted operating profit margin was
1.1% in the seasonally weak second quarter on lower Hydratight
volumes partially offset by the absence of Viking losses and the
benefit of cost reductions actions.
Engineered Solutions Segment(US $ in millions)
Three Months Ended Feb 28, Six Months Ended Feb 28, 2018
2017 2018 2017 Sales $110.1 $94.3 $226.3 $188.2
Operating Profit (Loss) $2.2 $1.8 $8.5 $2.6 Adjusted Op Profit (3)
$2.4 $3.3 $9.0 $6.1 Adjusted Op Profit % (3) 2.2% 3.5% 4.0% 3.2%
(3) 2018 excludes $0.2 and $0.5 of restructuring charges in the
second quarter and first half, respectively. 2017 excludes $1.5 and
$3.5 of restructuring charges in the second quarter and first half,
respectively.
Second quarter fiscal 2018 Engineered Solutions segment sales
were $110 million or 17% above the prior year. Excluding the 7%
benefit of the weaker US dollar, year-over-year core sales
increased 10%. Strong sales growth continued across the agriculture
and other off-highway equipment markets globally, while truck sales
were modestly higher as growth in Europe production was partially
offset by anticipated lower China volumes. Second quarter adjusted
operating profit margin declined 130 basis points from the
comparable prior year quarter as the higher volumes were more than
offset by warranty costs, unfavorable mix, material and labor
inflation and higher engineering expenses.
Corporate Expenses and Income Taxes (excluding
restructuring, transition, and one-time tax items)
Corporate expenses for the second quarter of fiscal 2018 were
$4.8 million, or $1.6 million lower than the comparable prior year
period due primarily to the benefit of cost reduction actions and
lower incentive compensation. The effective income tax rate of
approximately 14% was in line with expectations and modestly higher
than the prior year’s 10% rate.
Financial Position
Net debt at February 28, 2018 was approximately $394 million
(total debt of $548 million less $154 million of cash) essentially
unchanged from the prior quarter end and represents a net debt to
proforma EBITDA leverage ratio of approximately 3.0 times.
Outlook
Baker continued, "Actuant’s commercial actions including
investing in organic growth, new products and sales coverage are
delivering the intended results. This, combined with improving
market conditions, is translating to strong top line performance.
However, this has also put pressure on margins from commercial
& engineering investments, raw material inflation, and other
costs related to maintaining service levels with
higher-than-expected demand including overtime and wage inflation,
and expedited freight. We must continue to put the longstanding
issues behind us, and aggressively pursue the restructuring,
operational and portfolio actions necessary to improve the overall
trajectory of the earnings.
For the full year, we are increasing our sales guidance to the
$1.140-1.160 billion range with core sales growth now anticipated
at 2-4%, along with the benefit of increased tailwind from currency
translation. However, we are modestly lowering the full year
adjusted EPS guidance to a range of $1.00-1.10 reflective of the
legacy cost issues and incremental margin performance to date. This
adjusted EPS guidance includes an unchanged expected effective
income tax rate in the 5-10% range for the year. Free cash flow is
now expected to be in the $70-75 million range. The free cash flow
reduction reflects lower earnings combined with modestly higher
levels of working capital to support the sales growth.
We expect third quarter sales to be in the $300-310 million
range, with adjusted EPS of $0.33-0.38. The third quarter outlook
incorporates the normal seasonal sequential improvement across the
portfolio.
All guidance excludes restructuring, divestiture &
impairment charges, one-time tax adjustments as well as the impact
of potential future acquisitions and share repurchases.
Baker concluded, “The majority of our markets continue to show
strength, and our growth initiatives are taking hold. By working on
the new product and lean revitalization initiatives, we have put
the foundation in place to generate further margin improvement. I
believe these actions and the portfolio simplification plans we
have in place, will ultimately result in strengthening margins as
we move in a disciplined manner to our 2021 vision."
Conference Call
Information
An investor conference call is scheduled for 10am CT today,
March 21, 2018. 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)
February 28, August 31,
2018 2017 ASSETS Current assets Cash
and cash equivalents $ 153,595 $ 229,571 Accounts receivable, net
210,650 190,206 Inventories, net 166,227 143,651 Assets held for
sale - 21,835 Other current assets 60,569
61,663 Total current assets 591,041 646,926 Property,
plant and equipment, net 102,411 94,521 Goodwill 546,135 530,081
Other intangible assets, net 216,370 220,489 Other long-term assets
24,348 24,938 Total assets $
1,480,305 $ 1,516,955
LIABILITIES
AND SHAREHOLDERS' EQUITY Current liabilities Trade accounts
payable $ 136,941 $ 133,387 Accrued compensation and benefits
41,518 50,939 Current maturities of debt and short-term borrowings
30,000 30,000 Income taxes payable 7,687 6,080 Liabilities held for
sale - 101,083 Other current liabilities 58,368
57,445 Total current liabilities 274,514 378,934
Long-term debt, net 517,318 531,940 Deferred income taxes
23,262 29,859 Pension and postretirement benefit liabilities 19,338
19,862 Other long-term liabilities 56,592
55,821 Total liabilities 891,024 1,016,416
Shareholders' equity Capital stock 16,218 16,040 Additional paid-in
capital 155,974 138,449 Treasury stock (617,731 ) (617,731 )
Retained earnings 1,178,047 1,191,042 Accumulated other
comprehensive loss (143,227 ) (227,261 ) Stock held in trust (2,848
) (2,696 ) Deferred compensation liability 2,848
2,696 Total shareholders' equity 589,281
500,539 Total liabilities and
shareholders' equity $ 1,480,305 $ 1,516,955
Actuant Corporation Condensed Consolidated Statements of
Operations (Dollars in thousands, except per share
amounts) (Unaudited)
Three Months Ended Six Months Ended February
28, February 28, February 28, February 28,
2018 2017 2018 2017
Net sales $ 275,165 $ 258,869 $ 564,120 $ 524,662 Cost of
products sold 185,469 171,543
373,513 344,269 Gross profit 89,696
87,326 190,607 180,393 Selling, administrative and
engineering expenses 68,502 66,957 142,980 135,561 Amortization of
intangible assets 5,168 5,069 10,299 10,330 Director & officer
transition charges - - - 7,784 Restructuring charges 3,450 2,101
10,079 5,048 Impairment & divestiture charges 2,987
- 2,987 -
Operating profit 9,589 13,199 24,262 21,670 Financing costs,
net 7,604 7,334 15,118 14,467 Other expense (income), net
367 591 696 (38 )
Earnings before income tax expense (benefit) 1,618 5,274 8,448
7,241 Income tax expense (benefit) 19,839
200 21,443 (2,798 ) Net
(loss) earnings $ (18,221 ) $ 5,074 $ (12,995 ) $
10,039
(Loss) earnings per share Basic $ (0.30
) $ 0.09 $ (0.22 ) $ 0.17 Diluted (0.30 ) 0.08 (0.22 ) 0.17
Weighted average common shares outstanding Basic 60,318
59,368 60,095 59,170 Diluted 60,318 60,146 60,095 59,881
Actuant Corporation Condensed Consolidated Statements of
Cash Flows (In thousands) (Unaudited)
Three Months Ended Six Months Ended
February 28, February 28, February 28,
February 28, 2018 2017 2018 2017
Operating Activities Net (loss) earnings $ (18,221 )
$ 5,074 $ (12,995 ) $ 10,039 Adjustments to reconcile net (loss)
earnings to net cash (used in) provided by operating activities:
Impairment & other divestiture charges, including tax expense
12,385 - 12,385 - Depreciation and amortization 10,295 10,729
20,385 21,625 Stock-based compensation expense 2,872 2,623 8,292
12,177 (Benefit) expense for deferred income taxes (6,817 ) 3,416
(7,124 ) 551 Amortization of debt issuance costs 413 413 826 826
Other non-cash adjustments 87 251 200 715 Changes in components of
working capital and other: Accounts receivable (5,394 ) (12,645 )
(16,872 ) (20,897 ) Inventories (6,805 ) 7,748 (18,433 ) (394 )
Trade accounts payable (7,957 ) 5,508 (1,753 ) 12,276 Prepaid
expenses and other assets 2,875 (5,334 ) (9,168 ) (10,819 ) Income
tax accounts 19,219 (4,972 ) 17,505 (6,918 ) Accrued compensation
and benefits 2,629 (947 ) (9,959 ) (3,704 ) Other accrued
liabilities (7,229 ) (9,645 ) (5,395 )
(795 ) Cash (used in) provided by operating activities (1,648 )
2,219 (22,106 ) 14,682
Investing Activities Capital
expenditures (4,643 ) (9,556 ) (12,547 ) (14,695 ) Proceeds from
sale of property, plant and equipment 81 114 113 244 Rental asset
buyout for Viking divestiture - - (27,718 ) - Proceeds from sale of
business, net of transaction costs 8,780 - 8,780 - Cash paid for
business acquisitions, net of cash acquired (16,517 )
- (16,517 ) - Cash used in investing
activities (12,299 ) (9,442 ) (47,889 ) (14,451 )
Financing Activities Principal repayments on term loan
(7,500 ) (3,750 ) (15,000 ) (7,500 ) Stock option excercises &
other 8,074 4,985 10,305 5,949 Taxes paid related to the net share
settlement of equity awards (825 ) (697 ) (1,107 ) (920 ) Cash
dividend - - (2,390 )
(2,358 ) Cash (used in) provided by financing activities (251 ) 538
(8,192 ) (4,829 ) Effect of exchange rate changes on cash
2,743 1,704 2,211
(3,116 ) Net decrease in cash and cash equivalents (11,455 ) (4,981
) (75,976 ) (7,714 ) Cash and cash equivalents - beginning of
period 165,050 176,871 229,571
179,604 Cash and cash equivalents - end of
period $ 153,595 $ 171,890 $ 153,595 $ 171,890
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 $ 99,081 $ - $ - $ 195,997 ENERGY SEGMENT 84,646 72,884
83,480 68,584 309,594 75,841 65,992 - - 141,833 ENGINEERED
SOLUTIONS SEGMENT 93,857 94,337
111,444 106,796 406,434
116,198 110,092 -
- 226,290 TOTAL $ 265,793 $ 258,869
$ 295,427 $ 275,695 $ 1,095,784 $
288,955 $ 275,165 $ - $ - $
564,120
% SALES GROWTH INDUSTRIAL SEGMENT -2 %
13 % 5 % 7 % 6 % 11 % 8 % - - 10 % ENERGY SEGMENT -26 % -15 % -18 %
-25 % -21 % -10 % -9 % - - -10 % ENGINEERED SOLUTIONS SEGMENT -8 %
-2 % 3 % 18 % 2 % 24 % 17 % - - 20 % TOTAL -13 % -2 % -3 % 0 % -5 %
9 % 6 % - - 8 %
OPERATING PROFIT (LOSS) INDUSTRIAL
SEGMENT $ 19,491 $ 19,037 $ 24,019 $ 24,076 $ 86,623 $ 19,482 $
18,493 $ - $ - $ 37,975 ENERGY SEGMENT 3,328 (647 ) 895 (3,675 )
(99 ) 1,224 747 - - 1,971 ENGINEERED SOLUTIONS SEGMENT 2,834 3,282
8,174 6,069 20,359 6,618 2,409 - - 9,027 CORPORATE / GENERAL
(6,450 ) (6,372 ) (5,372 ) (6,935 )
(25,128 ) (6,022 ) (4,789 ) -
- (10,811 ) ADJUSTED OPERATING PROFIT $ 19,203
$ 15,300 $ 27,716 $ 19,535 $ 81,755 $ 21,302 $ 16,860 $ - $ - $
38,162 IMPAIRMENT & DIVESTITURE CHARGES - - - (116,979 )
(116,979 ) - (2,987 ) - - (2,987 ) RESTRUCTURING CHARGES (1) (2,948
) (2,101 ) (384 ) (1,795 ) (7,228 ) (6,629 ) (4,284 ) - - (10,913 )
DIRECTOR & OFFICER TRANSITION CHARGES (7,784 ) -
- - (7,784 ) -
- - -
- OPERATING PROFIT (LOSS) $ 8,471 $ 13,199
$ 27,332 $ (99,239 ) $ (50,236 ) $ 14,673 $
9,589 $ - $ - $ 24,262
ADJUSTED OPERATING PROFIT % INDUSTRIAL SEGMENT 22.3 % 20.8 %
23.9 % 24.0 % 22.8 % 20.1 % 18.7 % - - 19.4 % ENERGY SEGMENT 3.9 %
-0.9 % 1.1 % -5.4 % 0.0 % 1.6 % 1.1 % - - 1.4 % ENGINEERED
SOLUTIONS SEGMENT 3.0 % 3.5 % 7.3 % 5.7 % 5.0 % 5.7 % 2.2 % - - 4.0
% ADJUSTED OPERATING PROFIT % 7.2 % 5.9 % 9.4 % 7.1 % 7.5 % 7.4 %
6.1 % - - 6.8 %
EBITDA INDUSTRIAL SEGMENT $ 21,217 $
21,064 $ 25,575 $ 25,851 $ 93,707 $ 21,202 $ 21,034 $ - $ - $
42,236 ENERGY SEGMENT 9,108 2,943 4,633 142 16,826 5,125 4,533 - -
9,658 ENGINEERED SOLUTIONS SEGMENT 6,281 7,277 11,716 9,533 34,807
10,254 6,020 - - 16,274 CORPORATE / GENERAL (5,879 )
(5,846 ) (4,868 ) (6,637 ) (23,230 )
(5,518 ) (4,799 ) - -
(10,317 ) ADJUSTED EBITDA $ 30,727 $ 25,438 $ 37,056 $
28,889 $ 122,110 $ 31,063 $ 26,788 $ - $ - $ 57,851 IMPAIRMENT
& DIVESTITURE CHARGES - - - (116,979 ) (116,979 ) - (2,987 ) -
- (2,987 ) RESTRUCTURING CHARGES (1) (2,948 ) (2,101 ) (384 )
(1,795 ) (7,228 ) (6,629 ) (4,284 ) - - (10,913 ) DIRECTOR &
OFFICER TRANSITION CHARGES (7,784 ) - -
- (7,784 ) - -
- - -
EBITDA $ 19,995 $ 23,337 $ 36,672 $ (89,885 )
$ (9,881 ) $ 24,434 $ 19,517 $ - $ -
$ 43,951
ADJUSTED EBITDA % INDUSTRIAL
SEGMENT 24.3 % 23.0 % 25.4 % 25.8 % 24.7 % 21.9 % 21.2 % - - 21.5 %
ENERGY SEGMENT 10.8 % 4.0 % 5.5 % 0.2 % 5.4 % 6.8 % 6.9 % - - 6.8 %
ENGINEERED SOLUTIONS SEGMENT 6.7 % 7.7 % 10.5 % 8.9 % 8.6 % 8.8 %
5.5 % - - 7.2 % ADJUSTED EBITDA % 11.6 % 9.8 % 12.5 % 10.5 % 11.1 %
10.8 % 9.7 % - - 10.3 %
Note: (1) Approximately $0.8 million
of the Q2 fiscal 2018 restructuring charges were recorded in cost
of products sold
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) (GAAP MEASURE) $ 4,965 $ 5,074 $ 22,511 $ (98,764 )
$ (66,213 ) $ 5,226 $ (18,221 ) $ - $ - $ (12,995 ) IMPAIRMENT
& DIVESTITURE CHARGES - - - 116,979 116,979 - 2,987 - - 2,987
INCOME TAX (BENEFIT) EXPENSE ON IMPAIRMENT & DIVESTITURE
CHARGES - - - (8,119 ) (8,119 ) - 9,398 - - 9,398 DIRECTOR &
OFFICER TRANSITION CHARGES 7,784 - - - 7,784 - - - - - INCOME TAX
BENEFIT ON DIRECTOR & OFFICER TRANSITION CHARGES (2,880 ) - - -
(2,880 ) - - - - - RESTRUCTURING CHARGES (1) 2,948 2,101 384 1,795
7,228 6,629 4,284 - - 10,913 INCOME TAX BENEFIT ON RESTRUCTURING
CHARGES (777 ) (564 ) (124 ) (494 ) (1,959 ) (375 ) (500 ) - - (875
) INCOME TAX EXPENSE FROM U.S. TAX REFORM - - - - - - 8,367 - -
8,367 INCOME TAX EXPENSE FROM EQUITY VESTING/EXERCISES - - - - - -
1,338 - - 1,338 OTHER INCOME TAX BENEFIT - -
(3,193 ) - (3,193 ) -
- - -
- ADJUSTED EARNINGS $ 12,040 $ 6,611 $
19,578 $ 11,397 $ 49,627 $ 11,480 $
7,653 $ - $ - $ 19,133
ADJUSTED DILUTED EARNINGS PER SHARE (2) NET EARNINGS (LOSS)
(GAAP MEASURE) $ 0.08 $ 0.08 $ 0.37 $ (1.65 ) $ (1.11 ) $ 0.09 $
(0.30 ) $ - $ - $ (0.22 ) IMPAIRMENT & DIVESTITURE CHARGES - -
- 1.96 1.96 - 0.05 - - 0.05 INCOME TAX (BENEFIT) EXPENSE ON
IMPAIRMENT & DIVESTITURE CHARGES - - - (0.14 ) (0.14 ) - 0.16 -
- 0.16 DIRECTOR & OFFICER TRANSITION CHARGES 0.13 - - - 0.13 -
- - - - INCOME TAX BENEFIT ON DIRECTOR & OFFICER TRANSITION
CHARGES (0.05 ) - - - (0.05 ) - - - - - RESTRUCTURING CHARGES (1)
0.05 0.04 0.01 0.03 0.12 0.11 0.07 - - 0.18 INCOME TAX BENEFIT ON
RESTRUCTURING CHARGES (0.01 ) (0.01 ) (0.01 ) (0.01 ) (0.03 ) (0.01
) (0.01 ) - - (0.02 ) INCOME TAX EXPENSE FROM US TAX REFORM - - - -
- - 0.14 - - 0.14 INCOME TAX EXPENSE FROM EQUITY VESTING/EXERCISES
- - - - - - 0.02 - - 0.02 OTHER INCOME TAX BENEFIT -
- (0.05 ) - (0.05 )
- - - -
- ADJUSTED DILUTED EARNINGS PER SHARE $ 0.20
$ 0.11 $ 0.32 $ 0.19 $ 0.83 $
0.19 $ 0.13 $ - $ - $ 0.31
ADJUSTED EBITDA (3) NET EARNINGS (LOSS) (GAAP
MEASURE) $ 4,965 $ 5,074 $ 22,511 $ (98,764 ) $ (66,213 ) $ 5,226 $
(18,221 ) $ - $ - $ (12,995 ) FINANCING COSTS, NET 7,132 7,334
7,553 7,683 29,703 7,514 7,604 - - 15,118 INCOME TAX (BENEFIT)
EXPENSE (2,998 ) 200 (4,029 ) (9,651 ) (16,478 ) 1,604 19,839 - -
21,443 DEPRECIATION & AMORTIZATION 10,896
10,729 10,637 10,847
43,108 10,090 10,295
- - 20,385 EBITDA $
19,995 $ 23,337 $ 36,672 $ (89,885 ) $ (9,881 ) $ 24,434 $ 19,517 $
- $ - $ 43,951 IMPAIRMENT & OTHER DIVESTITURE CHARGES - - -
116,979 116,979 - 2,987 - - 2,987 DIRECTOR & OFFICER TRANSITION
CHARGES 7,784 - - - 7,784 - - - - - RESTRUCTURING CHARGES
2,948 2,101 384 1,795
7,228 6,629 4,284
- - 10,913
ADJUSTED EBITDA $ 30,727 $ 25,438 $ 37,056 $
28,889 $ 122,110 $ 31,063 $ 26,788
$ - $ - $ 57,851
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.
(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)
Q3 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 $ 0.31 $ 0.36 $
0.47 $ 0.57 IMPAIRMENT & DIVESTITURE CHARGES - - 0.21 0.21
RESTRUCTURING CHARGES 0.02 0.02 0.16 0.16 INCOME TAX EXPENSE FROM
U.S. TAX REFORM - - 0.14 0.14 INCOME TAX EXPENSE FROM EQUITY
VESTING/EXERCISES - - 0.02 0.02
ADJUSTED DILUTED EARNINGS PER SHARE GUIDANCE $ 0.33 $ 0.38 $
1.00 $ 1.10
RECONCILIATION OF GAAP
CASH FLOW FROM OPERATIONS TO FREE CASH FLOW CASH FLOW FROM
OPERATIONS $ 90 $ 95 CAPITAL EXPENDITURES (30 ) (30 ) OTHER
10 10 FREE CASH FLOW GUIDANCE $ 70 $ 75
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20180321005165/en/
Actuant CorporationKaren BauerCommunications & Investor
Relations Leader262-293-1562
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