Actuant Corporation (NYSE: ATU) today announced results for its
third quarter ended May 31, 2018.
Highlights
- Consolidated sales increased 7% over
the comparable prior year quarter with a 4% benefit from foreign
currency rate changes and a 1% reduction associated with net
acquisitions and divestitures. Third quarter core sales (total
sales excluding the impact of acquisitions, divestitures and
foreign currency rate changes) increased 4% on a year-over-year
basis with strong volumes in both the Engineered Solutions and
Industrial segments.
- GAAP diluted earnings per share (“EPS”)
was $0.48 in the third quarter of fiscal 2018 versus $0.37 in the
prior year. Excluding third quarter fiscal 2018 one-time items,
adjusted EPS was $0.39 (see Consolidated Results below, along with
the attached reconciliation of earnings).
- Strong operating cash flow generation
and reduction in net leverage improves capital allocation
liquidity.
- Acquired Equalizer, a small tool
product line tuck-in to expand pipe and flange alignment
capabilities.
- Full year fiscal 2018 sales and
adjusted EPS guidance updated to $1.17-1.18 billion and $1.03-1.08
(excluding one-time items), respectively.
Randy Baker, President and CEO of Actuant commented, “I’m
pleased with Actuant’s performance in the third quarter, delivering
both solid sales and earnings growth. We continue to see strong
momentum in the industrial tools and OEM component businesses, and
global Energy maintenance activity appears to have stabilized.
While we continue to experience some pressures from inflation along
with commercial and engineering investments to support high service
levels and growth, we are realizing the incremental margin benefits
of higher volumes and restructuring actions. In summary, I am
encouraged by this quarter’s performance and our team’s ability to
capitalize on the broad based strong economic backdrop. I want to
thank our employees across the globe for their continued commitment
and execution.”
Consolidated Results
Consolidated sales for the third quarter were $317 million, 7%
higher than the $295 million in the comparable prior year quarter.
Core sales improved 4% year-over-year while foreign currency rate
changes increased sales 4% and the net impact from the Mirage
acquisition net of the Viking divestiture reduced sales by 1%.
Fiscal 2018 third quarter net earnings and EPS were $29.0 million,
or $0.48, compared to $22.5 million, or $0.37, respectively, in the
comparable prior year quarter. Fiscal 2018 third quarter earnings
included restructuring charges of $1.2 million (benefit of $0.2
million and zero EPS, after tax) and a $4.9 million ($0.09 per
share) benefit related to an adjustment to the original provision
for U.S. tax reform based on further IRS clarification. (Note that
impacts from tax reform remain provisional and subject to further
adjustment.) Third quarter 2017 results included $0.4 million ($0.2
million and zero EPS, after tax) of restructuring charges and a
$3.2 million income tax benefit ($0.05 per share). Excluding these
items, adjusted EPS for the third quarter of fiscal 2018 was $0.39
compared to $0.32 in the comparable prior year period (see attached
reconciliation of earnings).
Consolidated sales for the nine months ended May 31, 2018 were
$881 million, 7% higher than the $820 million in the comparable
prior year period. Core sales improved 5% year-over-year while
foreign currency rate changes increased sales 3%, and the net
impact of acquisitions and divestitures reduced sales by 1%. Fiscal
2018’s year-to-date net earnings and EPS were $16.0 million, or
$0.26, compared to earnings and EPS of $32.6 million, and $0.54,
respectively, in the comparable prior year period. Fiscal 2018
year-to-date results include restructuring charges of $12.1 million
($9.8 million or $0.16 per share, after tax) along with impairment
& divestiture, tax reform and equity compensation items. Fiscal
2017 comparable results included $5.4 million ($4.0 million or
$0.07 per share, after tax) of restructuring charges along with
director and officer transition charges and an income tax benefit.
Excluding these items, adjusted EPS for the first nine months of
fiscal 2018 was $0.71 compared to $0.64 in the comparable prior
year period (see attached reconciliation of earnings).
Segment Results
Industrial Segment
(US $ in millions)
Three Months Ended May
31, Nine Months Ended May 31, 2018 2017 2018 2017
Sales $108.3 $100.5 $304.3 $279.4 Operating Profit $26.0 $23.7
$61.0 $60.8 Adjusted Op Profit (1) $25.8 $24.0 $63.8 $62.5 Adjusted
Op Profit % (1) 23.9% 23.9% 21.0% 22.4%
(1) 2018 excludes $(0.2) and $2.8 of restructuring charges in
the third quarter and nine months, respectively. 2017 excludes $0.3
and $1.7 of restructuring charges in the third quarter and nine
months, respectively.
Third quarter fiscal 2018 Industrial segment sales were $108
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. Sales of standard industrial
tools remained strong, growing double digits on a global basis with
broad demand across the diverse set of end markets served despite
tougher comparables. The segment’s overall core sales growth rate
includes significantly lower heavy lifting technology sales and a
modest decline in concrete tensioning volumes. Third quarter
adjusted operating profit margin was level with the prior year and
improved 520 basis points sequentially. Strong incremental profits
within the industrial tool channel were partially offset by
continued costs associated with heavy lifting specialty projects
and concrete tensioning production inefficiencies, although less
severe than prior quarters.
Energy Segment
(US $ in millions)
Three Months Ended May
31, Nine Months Ended May 31, 2018 2017 2018 2017
Sales $83.9 $83.5 $225.7 $241.0 Operating Profit $6.2 $0.9 $2.0
$3.6 Adjusted Op Profit (2) $7.0 $0.9 $9.0 $3.6 Adjusted Op Profit
% (2) 8.4% 1.1% 4.0% 1.5%
(2) 2018 excludes $0.8 and $4.0 of restructuring charges in the
third quarter and nine months, respectively. 2018 nine month
results also exclude $3.0 in impairment & divestiture
charges.
Fiscal 2018 third quarter Energy segment sales were
approximately level with the prior year at $84 million. The 3%
favorable impact of the weaker US dollar was offset by the 2%
headwind from the net of the Viking divestiture and Mirage
acquisition, while core sales declined 1%. Hydratight’s global
maintenance activity levels stabilized, with improvements in the
Middle East and North Sea offset by declines in certain other
regions. Cortland sales grew slightly on higher medical product
demand along with improving offshore oil & gas seismic and
cable activity. Energy segment adjusted operating profit margin
improved substantially both year-over-year and sequentially due to
the benefits of restructuring and service excellence actions,
favorable sales mix, and the absence of Viking losses.
Engineered Solutions Segment
(US $ in millions)
Three Months Ended May 31, Nine Months Ended May 31, 2018
2017 2018 2017 Sales $124.9 $111.4 $351.2 $299.6
Operating Profit $9.0 $8.1 $17.6 $10.7 Adjusted Op Profit (3) $9.0
$8.2 $18.1 $14.3 Adjusted Op Profit % (3) 7.2% 7.3% 5.1% 4.8%
(3) 2018 excludes $0.5 of restructuring charges for the nine
months. 2017 excludes $0.1 and $3.6 of restructuring charges in the
third quarter and nine months, respectively.
Third quarter fiscal 2018 Engineered Solutions segment sales
were $125 million or 12% above the prior year. Excluding the 5%
benefit of the weaker US dollar, year-over-year core sales
increased 7%. 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. Third quarter adjusted
operating profit margin was about level with the comparable prior
year quarter as the higher volumes were offset by higher
engineering expenses to support growth, material and labor
inflation and unfavorable mix.
Corporate Expenses and Income Taxes (excluding
restructuring, transition, and one-time tax items)
Corporate expenses for the third quarter of fiscal 2018 were
$8.1 million, or $2.7 million greater than the comparable prior
year period due primarily to higher incentive compensation and
outside services costs. The effective income tax rate of
approximately 9% was modestly above expectations and higher than
the prior year’s -4% rate.
Financial Position
Net debt at May 31, 2018 was approximately $351 million (total
debt of $540 million less $189 million of cash) which declined
approximately $43 million from the prior quarter end. Strong cash
flow was used to reduce net debt and the Company deployed
approximately $6 million on a small tool product line acquisition.
The net debt to proforma EBITDA leverage ratio declined to 2.6
times.
Outlook
Baker continued, "I believe our third quarter results
demonstrate that we are on the path toward higher structural sales
and margin performance, and we expect to further build on these
solid results. This underlying performance, combined with
anticipated improvement in energy maintenance activity levels,
effectively managing the inflationary environment and our expected
continued progress in new product launches, we believe positions us
well to deliver on our 2018 full year guidance.
With one quarter to go in the fiscal year, we are increasing our
full year sales guidance and narrowing our adjusted EPS guidance
range to reflect our performance to date and the latest outlook for
the remainder of the year. For the fourth quarter, we anticipate
sales will be in the $290-300 million range reflecting normal
seasonal moderation from the third quarter. Fourth quarter adjusted
EPS is expected to be in the range of $0.32-0.37. This includes
core sales growth of approximately 3-5% and a mid-single digit
effective income tax rate. This would bring our full year sales and
adjusted EPS guidance to a range of $1.17-1.18 billion and
$1.03-1.08, respectively. Free cash flow is expected to be in the
$70-75 million range and would represent greater than 100% earnings
conversion.”
All guidance excludes restructuring, divestiture &
impairment charges, one-time tax adjustments as well as the impact
of potential future acquisitions, dispositions and share
repurchases.
Baker concluded, “The global economy and our markets continue to
show strength, and our growth initiatives are taking hold. By
working to improve our commercial effectiveness and speed to
market, enhance our lean execution and complete critical portfolio
management actions, we believe we will be well positioned to drive
significant long-term value for our customers, employees and
shareholders.”
Conference Call
Information
An investor conference call is scheduled for 10am CT today, June
20, 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, tax reform, 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)
May 31, August
31, 2018 2017 ASSETS Current assets
Cash and cash equivalents $ 189,490 $ 229,571 Accounts receivable,
net 212,284 190,206 Inventories, net 167,317 143,651 Assets held
for sale - 21,835 Other current assets 58,732
61,663 Total current assets 627,823 646,926 Property,
plant and equipment, net 100,765 94,521 Goodwill 538,792 530,081
Other intangible assets, net 210,160 220,489 Other long-term assets
27,245 24,938 Total assets $
1,504,785 $ 1,516,955
LIABILITIES
AND SHAREHOLDERS' EQUITY Current liabilities Trade accounts
payable $ 142,199 $ 133,387 Accrued compensation and benefits
48,093 50,939 Current maturities of debt and short-term borrowings
30,000 30,000 Income taxes payable 17,605 6,080 Liabilities held
for sale - 101,083 Other current liabilities 63,437
57,445 Total current liabilities 301,334 378,934
Long-term debt, net 510,007 531,940 Deferred income taxes
19,491 29,859 Pension and postretirement benefit liabilities 18,692
19,862 Other long-term liabilities 54,233
55,821 Total liabilities 903,757 1,016,416
Shareholders' equity Capital stock 16,227 16,040 Additional paid-in
capital 159,653 138,449 Treasury stock (617,731 ) (617,731 )
Retained earnings 1,207,059 1,191,042 Accumulated other
comprehensive loss (164,180 ) (227,261 ) Stock held in trust (2,594
) (2,696 ) Deferred compensation liability 2,594
2,696 Total shareholders' equity 601,028
500,539 Total liabilities and
shareholders' equity $ 1,504,785 $ 1,516,955
Actuant Corporation Condensed Consolidated
Statements of Earnings (Dollars in thousands, except per
share amounts) (Unaudited)
Three Months Ended Nine
Months Ended May 31, May 31, May 31,
May 31, 2018 2017 2018
2017 Net sales $ 317,096 $ 295,427 $ 881,216 $
820,089 Cost of products sold 200,587
192,623 574,100 536,892 Gross
profit 116,509 102,804 307,116 283,197 Selling,
administrative and engineering expenses 77,570 70,051 220,550
205,609 Amortization of intangible assets 5,184 5,037 15,483 15,368
Director & officer transition charges - - - 7,784 Restructuring
charges 1,170 384 11,249 5,433 Impairment & divestiture charges
- - 2,987 -
Operating profit 32,585 27,332 56,847 49,003
Financing costs, net 7,756 7,553 22,874 22,019 Other (income)
expense, net (188 ) 1,297 508
1,260 Earnings before income tax (benefit)
expense 25,017 18,482 33,465 25,724 Income tax (benefit)
expense (3,995 ) (4,029 ) 17,448
(6,827 ) Net earnings $ 29,012 $ 22,511
$ 16,017 $ 32,551
Earnings per share
Basic $ 0.48 $ 0.38 $ 0.27 $ 0.55 Diluted 0.48 0.37 0.26 0.54
Weighted average common shares outstanding Basic
60,683 59,675 60,291 59,339 Diluted 61,064 60,402 60,850 60,055
Actuant Corporation Condensed Consolidated
Statements of Cash Flows (In thousands) (Unaudited)
Three Months
Ended Nine Months Ended May 31, May 31,
May 31, May 31, 2018 2017 2018
2017 Operating Activities Net earnings $
29,012 $ 22,511 $ 16,017 $ 32,551 Adjustments to reconcile net
earnings to net cash provided by operating activities: Impairment
& other divestiture charges, including tax expense - - 12,385 -
Depreciation and amortization 10,415 10,637 30,800 32,262
Stock-based compensation expense 3,659 2,675 11,951 14,852
(Benefit) expense for deferred income taxes (3,455 ) 813 (10,579 )
1,364 Amortization of debt issuance costs 413 418 1,239 1,244 Other
non-cash adjustments 147 308 347 1,023 Changes in components of
working capital and other: Accounts receivable (4,584 ) (1,721 )
(21,456 ) (22,618 ) Inventories (4,157 ) 75 (22,590 ) (319 ) Trade
accounts payable 6,915 1,181 5,162 13,457 Prepaid expenses and
other assets (4,524 ) 3,707 (13,692 ) (7,112 ) Income tax accounts
8,484 (12,355 ) 25,989 (19,273 ) Accrued compensation and benefits
7,778 7,473 (2,181 ) 3,769 Other accrued liabilities 7,592
1,658 2,197 862
Cash provided by operating activities 57,695 37,380 35,589 52,062
Investing Activities Capital expenditures (6,169 )
(8,224 ) (18,716 ) (22,919 ) Proceeds from sale of property, plant
and equipment 35 - 148 244 Rental asset buyout for Viking
divestiture - - (27,718 ) - Proceeds from sale of business, net of
transaction costs - - 8,780 - Cash paid for business acquisitions,
net of cash acquired (5,809 ) - (22,326
) - Cash used in investing activities (11,943 )
(8,224 ) (59,832 ) (22,675 )
Financing Activities
Principal repayments on term loan (7,500 ) (3,750 ) (22,500 )
(11,250 ) Stock option excercises & other 130 1,365 10,435
7,314 Redemption of 5.625% senior notes - (500 ) - (500 ) Taxes
paid related to the net share settlement of equity awards (172 )
(79 ) (1,279 ) (999 ) Payment of deferred acquisition consideration
- (742 ) - (742 ) Cash dividend - -
(2,390 ) (2,358 ) Cash used in financing activities
(7,542 ) (3,706 ) (15,734 ) (8,535 ) Effect of exchange rate
changes on cash (2,315 ) 1,614 (104 )
(1,502 ) Net increase (decrease) in cash and cash
equivalents 35,895 27,064 (40,081 ) 19,350 Cash and cash
equivalents - beginning of period 153,595
171,890 229,571 179,604 Cash and
cash equivalents - end of period $ 189,490 $ 198,954
$ 189,490 $ 198,954
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 $ 108,297 $ - $ 304,294 ENERGY SEGMENT 84,646
72,884 83,480 68,584 309,594 75,841 65,992 83,857 - 225,690
ENGINEERED SOLUTIONS SEGMENT 93,857
94,337 111,444 106,796
406,434 116,198
110,092 124,942 -
351,232 TOTAL $ 265,793 $
258,869 $ 295,427 $ 275,695
$ 1,095,784 $ 288,955 $ 275,165
$ 317,096 $ - $ 881,216
% SALES GROWTH INDUSTRIAL SEGMENT -2 % 13 % 5 % 7 % 6 % 11 %
8 % 8 % - 9 % ENERGY SEGMENT -26 % -15 % -18 % -25 % -21 % -10 % -9
% 0 % - -6 % ENGINEERED SOLUTIONS SEGMENT -8 % -2 % 3 % 18 % 2 % 24
% 17 % 12 % - 17 % TOTAL -13 % -2 % -3 % 0 % -5 % 9 % 6 % 7 % - 7 %
OPERATING PROFIT (LOSS) INDUSTRIAL SEGMENT $ 19,491 $
19,037 $ 24,019 $ 24,076 $ 86,623 $ 19,482 $ 18,493 $ 25,845 $ - $
63,820 ENERGY SEGMENT 3,328 (647 ) 895 (3,675 ) (99 ) 1,224 747
7,033 - 9,004 ENGINEERED SOLUTIONS SEGMENT 2,834 3,282 8,174 6,069
20,359 6,618 2,409 9,038 - 18,065 CORPORATE / GENERAL (6,450
) (6,372 ) (5,372 )
(6,935 ) (25,128 ) (6,022 )
(4,789 ) (8,145 ) -
(18,956 ) ADJUSTED OPERATING PROFIT $ 19,203 $ 15,300 $ 27,716 $
19,535 $ 81,755 $ 21,302 $ 16,860 $ 33,771 $ - $ 71,933 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 ) (1,186 ) - (12,099 ) 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 $ 32,585 $ - $ 56,847
ADJUSTED OPERATING PROFIT % INDUSTRIAL SEGMENT
22.3 % 20.8 % 23.9 % 24.0 % 22.8 % 20.1 % 18.7 % 23.9 % - 21.0 %
ENERGY SEGMENT 3.9 % -0.9 % 1.1 % -5.4 % 0.0 % 1.6 % 1.1 % 8.4 % -
4.0 % ENGINEERED SOLUTIONS SEGMENT 3.0 % 3.5 % 7.3 % 5.7 % 5.0 %
5.7 % 2.2 % 7.2 % - 5.1 % ADJUSTED OPERATING PROFIT % 7.2 % 5.9 %
9.4 % 7.1 % 7.5 % 7.4 % 6.1 % 10.7 % - 8.2 %
EBITDA
INDUSTRIAL SEGMENT $ 21,217 $ 21,064 $ 25,575 $ 25,851 $ 93,707 $
21,202 $ 21,034 $ 27,823 $ - $ 70,059 ENERGY SEGMENT 9,108 2,943
4,633 142 16,826 5,125 4,533 11,554 - 21,212 ENGINEERED SOLUTIONS
SEGMENT 6,281 7,277 11,716 9,533 34,807 10,254 6,020 12,566 -
28,840 CORPORATE / GENERAL (5,879 ) (5,846 )
(4,868 ) (6,637 ) (23,230
) (5,518 ) (4,799 ) (7,569 )
- (17,886 ) ADJUSTED EBITDA $ 30,727 $
25,438 $ 37,056 $ 28,889 $ 122,110 $ 31,063 $ 26,788 $ 44,374 $ - $
102,225 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 ) (1,186 ) -
(12,099 ) DIRECTOR & OFFICER TRANSITION CHARGES (7,784 )
- - -
(7,784 ) - -
- - -
EBITDA $ 19,995 $ 23,337 $
36,672 $ (89,885 ) $ (9,881 ) $ 24,434
$ 19,517 $ 43,188 $ - $
87,139
ADJUSTED EBITDA % INDUSTRIAL SEGMENT
24.3 % 23.0 % 25.4 % 25.8 % 24.7 % 21.9 % 21.2 % 25.7 % - 23.0 %
ENERGY SEGMENT 10.8 % 4.0 % 5.5 % 0.2 % 5.4 % 6.8 % 6.9 % 13.8 % -
9.4 % ENGINEERED SOLUTIONS SEGMENT 6.7 % 7.7 % 10.5 % 8.9 % 8.6 %
8.8 % 5.5 % 10.1 % - 8.2 % ADJUSTED EBITDA % 11.6 % 9.8 % 12.5 %
10.5 % 11.1 % 10.8 % 9.7 % 14.0 % - 11.6 %
Note: (1)
Approximately $0.8 million of the Q2 fiscal 2018 restructuring
charges were recorded in cost of products sold. De minimis
restructuring charges were also recorded in cost of products sold
in Q3 fiscal 2018.
ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA RECONCILIATION OF GAAP
MEASURES TO NON-GAAP MEASURES (Dollars in thousands,
except for per share amounts) FISCAL
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 )
$ 29,012 $ - $ 16,017 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 1,186 - 12,099
INCOME TAX BENEFIT ON RESTRUCTURING CHARGES (777 ) (564 ) (124 )
(494 ) (1,959 ) (375 ) (500 ) (1,435 ) - (2,310 ) INCOME TAX
EXPENSE (BENEFIT) FROM U.S. TAX REFORM - - - - - - 8,367 (4,891 ) -
3,476 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 $
23,872 $ - $ 43,005
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 ) $ 0.48 $ -
$ 0.26 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 0.02 - 0.20 INCOME TAX BENEFIT ON RESTRUCTURING
CHARGES (0.01 ) (0.01 ) (0.01 ) (0.01 ) (0.03 ) (0.01 ) (0.01 )
(0.02 ) - (0.04 ) INCOME TAX EXPENSE (BENEFIT) FROM U.S. TAX REFORM
- - - - - - 0.14 (0.09 ) - 0.06 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 $ 0.39 $ - $ 0.71
ADJUSTED EBITDA (3) NET EARNINGS (LOSS) (GAAP
MEASURE) $ 4,965 $ 5,074 $ 22,511 $ (98,764 ) $ (66,213 ) $ 5,226 $
(18,221 ) $ 29,012 $ - $ 16,017 FINANCING COSTS, NET 7,132 7,334
7,553 7,683 29,703 7,514 7,604 7,756 - 22,874 INCOME TAX (BENEFIT)
EXPENSE (2,998 ) 200 (4,029 ) (9,651 ) (16,478 ) 1,604 19,839
(3,995 ) - 17,448 DEPRECIATION & AMORTIZATION 10,896
10,729 10,637 10,847
43,108 10,090 10,295
10,415 - 30,800 EBITDA $
19,995 $ 23,337 $ 36,672 $ (89,885 ) $ (9,881 ) $ 24,434 $ 19,517 $
43,188 $ - $ 87,139 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 1,186 - 12,099
ADJUSTED EBITDA $ 30,727 $ 25,438 $ 37,056 $
28,889 $ 122,110 $ 31,063 $ 26,788 $
44,374 $ - $ 102,225
FOOTNOTES NOTE:
The total of the individual quarters may not equal the annual total
due to rounding. (1) Approximately $0.8 million of Q2 fiscal
2018 restructuring charges were recorded in cost of products sold.
De minimis restructuring charges were also recorded in cost of
products sold in Q3 fiscal 2018. (2) Adjusted earnings and
adjusted diluted earnings per share represent net earnings (loss)
and diluted earnings (loss) per share per the Condensed
Consolidated Statements of 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. (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 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)
Q4 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 $ 0.32 $ 0.37 $
0.58 $ 0.63 IMPAIRMENT & DIVESTITURE CHARGES, NET OF TAX - -
0.21 0.21 RESTRUCTURING CHARGES, NET OF TAX - - 0.16 0.16 INCOME
TAX EXPENSE FROM U.S. TAX REFORM - - 0.06 0.06 INCOME TAX EXPENSE
FROM EQUITY VESTING/EXERCISES - - 0.02
0.02 ADJUSTED DILUTED EARNINGS PER SHARE GUIDANCE $
0.32 $ 0.37 $ 1.03 $ 1.08
RECONCILIATION OF GAAP CASH FLOW FROM OPERATIONS TO FREE CASH
FLOW CASH FLOW FROM OPERATIONS $ 85 $ 90 CAPITAL EXPENDITURES
(25 ) (25 ) 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/20180620005182/en/
Actuant CorporationKaren BauerCommunications & Investor
Relations Leader262-293-1562
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