Actuant Corporation (NYSE: ATU) today announces results for its
fourth quarter and fiscal year ended August 31, 2018.
Highlights
- Consolidated sales of $301 million
increased 9% over the comparable prior year quarter. Core sales
increased 10% on a year-over-year basis, including a 1% decline on
sales from foreign currency and a net negligible impact on sales
from acquisitions and divestitures. Strong double-digit growth in
the Industrial and Energy segments and solid growth in the
Engineered Solutions segment all contributed.
- GAAP diluted earnings per share (“EPS”)
was a loss of $0.62 in the fourth quarter of fiscal 2018 versus a
loss of $1.65 in the prior year. Excluding fourth quarter fiscal
2018 one-time items, adjusted EPS was $0.39 (see Consolidated
Results below, along with the attached reconciliation of
earnings).
- Progress continues on portfolio
management actions; Cortland Fibron (upstream oil & gas) was
moved to Assets Held for Sale as the business is prepared for
divestiture.
- Very strong operating cash flow
generation drove further reduction in net debt to proforma EBITDA
leverage, ending the year at 1.9 times.
- Full year fiscal 2019 sales and
adjusted diluted EPS guidance of $1.21-1.24 billion and $1.09-1.20
(excluding one-time items), respectively, inclusive of significant
headwinds from higher taxes related to Tax Reform.
- Estimated headwinds of approximately
$3-4 million from recently enacted Section 301 List 3 tariffs.
Mitigation efforts to reduce these headwinds are currently being
assessed.
Randy Baker, President and CEO of Actuant Corporation remarked,
“Actuant performed exceptionally well in the quarter, where we saw
10% core sales growth and outstanding operating margin expansion
over the prior year. Solid above-market growth in our Industrial
segment and continued steady growth in our Engineered Solutions
segment were coupled with double-digit core sales growth in our
Energy segment, the first growth in the segment in more than a
year. I also am very pleased with our progress on new product
development, as that will allow us to continue to outpace the
market growth as we go forward. In summary, we had a strong finish
to our year. Our initiatives to enhance top-line growth,
restructure certain businesses, drive operational efficiency and
manage our business portfolio have laid the ground work to continue
positive momentum into 2019. Thank you to all of our employees
worldwide for their significant efforts this year and commitment to
Actuant.”
Consolidated Results
Consolidated sales for the fourth quarter were $301 million, 9%
higher than the $276 million recorded in the comparable prior year
quarter. Core sales improved 10% year-over-year, while foreign
currency rate changes reduced sales by 1% and the net impact from
the Mirage and Equalizer acquisitions, net of the Viking
divestiture, increased sales by less than 1%. Fiscal 2018 fourth
quarter net loss and EPS were $(37.7) million and $(0.62), compared
to $(98.8) million and $(1.65), respectively, in the comparable
prior year quarter. Fiscal 2018 fourth quarter earnings included
impairment & divestiture charges of $46.3 million ($45.0
million or $0.74 per share, after tax) related to the anticipated
sale of the Cortland Fibron business and impairment charges of
$23.7 million ($18.0 million or $0.29 per share, after tax) on our
Precision-Hayes International business. Additionally, fourth
quarter 2018 results included restructuring charges of $0.7 million
(benefit of $0.3 million and $0.01 per share, after tax), a $1.8
million or $0.02 per share benefit related to impacts of US Tax
Reform and benefits from the release of valuation allowances, and a
$0.8 million charge ($0.6 million or $0.01 per share, after tax)
associated with the acceleration of the amortization of debt
issuance costs resulting from the intentional reduction in the
borrowing capacity under our Credit Facility. Fiscal 2017 fourth
quarter included restructuring charges of $1.8 million ($1.3
million or $0.02 per share, after tax), as well as $117.0 million
($108.9 million or $1.82 per share, after tax) in impairment &
divestiture charges related to the then-pending sale of the Viking
SeaTech business. Excluding these items, adjusted EPS for the
fourth quarter of fiscal 2018 was $0.39, compared to $0.19 in the
comparable prior year period (see attached reconciliation of
earnings).
Consolidated sales for the twelve months ended August 31, 2018
were $1,183 million, 8% higher than the $1,096 million in the prior
year. Foreign currency rate changes increased sales 3%, and the net
impact of acquisitions and divestitures reduced sales by 1%
year-over-year, resulting in 6% core sales growth. Fiscal year 2018
net loss and EPS were $(21.6) million and $(0.36), respectively,
compared to a net loss and EPS of $(66.2) million and $(1.11),
respectively, in the prior fiscal year. Fiscal year 2018 results
include impairment & divestiture charges of $73.1 million
($75.3 million or $1.24 per share, after tax), restructuring
charges of $12.8 million ($9.5 million or $0.15 per share, after
tax), tax charges related to US Tax Reform, the release of
valuation allowances and stock compensation of $3.0 million or
$0.05 per share, and accelerated debt issuance amortization costs
of $0.8 million ($0.6 million or $0.01 per share, after tax).
Fiscal year 2017 net loss included impairment & divestiture
charges related to the then-pending sale of the Viking SeaTech
business of $117.0 million ($108.9 million or $1.82 per share,
after tax), restructuring charges of $7.2 million ($5.3 million or
$0.09 per share, after tax), director and officer transition
charges of $7.8 million ($4.9 million or $0.08 per share, after
tax) and one-time tax benefits of $3.2 million or $0.05 per share.
Excluding these items, adjusted EPS for fiscal year 2018 was $1.09,
compared to $0.83 in fiscal year 2017.
Segment Results
Industrial Segment
(US $ in millions)
Three Months Ended August 31, Twelve Months
Ended August 31, 2018 2017 2018 2017 Sales $111.6
$100.3 $415.9 $379.8 Operating Profit $2.8 $24.1 $63.8 $84.9
Adjusted Op Profit (1) $26.6 $24.1 $90.4 $86.6 Adjusted Op Profit %
(1) 23.8% 24.0% 21.7% 22.8%
(1) 2018 excludes restructuring charges of $0.1 and $2.9 in the
fourth quarter and twelve months, respectively, and $23.7 of
impairment & divestiture charges in the fourth quarter and
twelve months. 2017 excludes $1.7 of restructuring charges in the
twelve months.
Fourth quarter fiscal 2018 Industrial segment sales were $111.6
million, 11% higher than the prior year. The impact of foreign
currency exchange rates was a slight disadvantage year-over-year
coupled with a 1% increase in sales due to the Equalizer
acquisition, resulting in a 10% year-over-year core sales increase.
Despite difficult comparisons, sales improved broadly across the
industrial tools business in the quarter and heavy lifting
technology sales improved by double-digits. Concrete tensioning
products improved modestly. Fourth quarter adjusted operating
profit margin was level with the prior year. Segment incremental
profit flow-through from industrial tools was solid.
Energy Segment
(US $ in millions)
Three Months Ended August 31, Twelve Months Ended August 31, 2018
2017 2018 2017 Sales $77.5 $68.6 $303.1 $309.6
Operating (Loss) $(43.7) $(122.6) $(41.7) $(119.0) Adjusted Op
Profit (Loss) (2) $3.3 $(3.7) $12.3 $(0.1) Adjusted Op Profit
(Loss) % (2) 4.3% -5.4% 4.1% 0.0%
(2) 2018 excludes $0.7 and $4.7 of restructuring charges and
$46.3 and $49.3 in impairment & divestiture charges in the
fourth quarter and twelve months, respectively. 2017 excludes $1.9
and $117.0 of restructuring and impairment & divestiture
charges, respectively, in the fourth quarter and for the twelve
months.
Fiscal 2018 fourth quarter Energy segment sales of $77.5 million
grew double digits over prior year sales of $68.6 million.
Excluding a 2% negative impact from foreign currency exchange rates
and a negligible net impact from the Viking divestiture and Mirage
acquisition on sales, core sales grew by 15%. Hydratight grew in
the quarter as maintenance activity continued to be solid in the
North Sea and Middle East. Cortland experienced strong double-digit
sales growth across oil & gas, medical and non-energy as market
activity increased. Energy segment adjusted operating profit margin
improvement resulted from incremental flow-through on higher sales,
the benefit of restructuring actions, one-time items in 2017 that
did not repeat in 2018 and the elimination of Viking losses.
Engineered Solutions Segment
(US $ in millions)
Three Months Ended August 31, Twelve Months
Ended August 31, 2018 2017 2018 2017 Sales $112.3
$106.8 $463.6 $406.4 Operating Profit $7.7 $6.2 $25.2 $16.9
Adjusted Op Profit (3) $7.6 $6.1 $25.7 $20.4 Adjusted Op Profit %
(3) 6.8% 5.7% 5.5% 5.0%
(3) 2018 excludes $0.5 of restructuring charges for the twelve
months. 2017 excludes $(0.1) and $3.5 of restructuring charges in
the fourth quarter and twelve months, respectively.
Fourth quarter fiscal 2018 Engineered Solutions segment sales
were $112.3 million, a 5% increase over the prior year. Excluding a
1% decline in sales due to a stronger US dollar, year-over-year
core sales increased 6%. Sales growth was broad-based in
off-highway markets, including agriculture, mining and forestry.
Europe truck sales continued to be solid and were partially offset
by an anticipated continued decline in China volumes. Fourth
quarter adjusted operating profit margins improved significantly
over the prior year due to favorable mix and pricing.
Corporate Expenses and Income Taxes (excluding impairment
& divestiture charges, restructuring, transition, and one-time
tax items)
Corporate expenses for the fourth quarter of fiscal 2018 were
$5.4 million or $1.6 million less than the comparable prior year
period, due primarily to lower insurance costs and compensation
expense. The fourth quarter effective income tax rate of
approximately 7% was in line with expectations but higher than the
prior year’s -10% rate.
Financial Position
Net debt at August 31, 2018 was approximately $282 million
(total debt of $533 million less $250 million of cash), which
declined approximately $69 million from the prior quarter end.
Strong cash flow was used to reduce net debt, and the ratio of net
debt to proforma EBITDA leverage declined to 1.9 times.
Outlook
"We believe fiscal 2018 has been a turning point for Actuant.
The strong momentum we have established over the last several
quarters from a higher level of focus on our customers,
improvements in operations, and commercializing new products has
allowed us to grow our top line in excess of our markets and drive
solid incremental profitability. We expect that momentum to
continue into 2019, and our sales and EPS guidance reflect
continued growth from our own actions and the global economy,”
stated Baker.
He continued, “As we initiate our guidance for 2019, we
anticipate sales growth of between 3% and 5%, resulting in expected
annual sales of $1.21 to $1.24 billion. We anticipate first quarter
sales between $295 and $305 million and expect to see normal
seasonality, with our strongest quarters in the back half of our
fiscal year. Full year adjusted EPS is projected between $1.09 and
$1.20, which includes an expected tax rate increase to 20% from 10%
in 2018 (a $0.12 per share impact). First quarter adjusted EPS is
projected to be in the range of $0.20 to 0.25. Free cash flow is
anticipated to be solid again and in the $80 to $85 million
range.
We are confident the actions we have taken over the last several
quarters are delivering sustainable results and position us well to
continue to grow our top line greater than the markets we serve and
deliver strong incremental profitability. Continued solid cash flow
generation and the expected reduction in net debt should provide us
greater flexibility to invest in profitable growth opportunities to
drive superior returns to our shareholders.”
All guidance excludes restructuring, impairment &
divestiture charges, one-time tax adjustments as well as the impact
of potential future tariffs, acquisitions, dispositions and share
repurchases.
Conference Call
Information
An investor conference call is scheduled for 10am CT today,
September 26, 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.
Among other risks and factors, Actuant’s results are 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.
Actuant Corporation Condensed Consolidated Balance
Sheets (Dollars in thousands) (Unaudited)
August 31, August
31, 2018 2017 ASSETS Current assets
Cash and cash equivalents $ 250,490 $ 229,571 Accounts receivable,
net 187,749 190,206 Inventories, net 156,356 143,651 Assets held
for sale 23,573 21,835 Other current assets 42,732
61,663 Total current assets 660,900 646,926
Property, plant and equipment, net 90,220 94,521 Goodwill 512,412
530,081 Other intangible assets, net 181,037 220,489 Other
long-term assets 35,967 24,938
Total assets $ 1,480,536 $ 1,516,955
LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities
Trade accounts payable $ 130,838 $ 133,387 Accrued compensation and
benefits 54,508 50,939 Current maturities of debt and short-term
borrowings 30,000 30,000 Income taxes payable 4,091 6,080
Liabilities held for sale 44,225 101,083 Other current liabilities
67,299 57,445 Total current liabilities
330,961 378,934 Long-term debt, net 502,695 531,940 Deferred
income taxes 21,933 29,859 Pension and postretirement benefit
liabilities 14,067 19,862 Other long-term liabilities 52,168
55,821 Total liabilities 921,824 1,016,416
Shareholders' equity Capital stock 16,285 16,040 Additional
paid-in capital 167,448 138,449 Treasury stock (617,731 ) (617,731
) Retained earnings 1,166,955 1,191,042 Accumulated other
comprehensive loss (174,245 ) (227,261 ) Stock held in trust (2,450
) (2,696 ) Deferred compensation liability 2,450
2,696 Total shareholders' equity 558,712
500,539 Total liabilities and
shareholders' equity $ 1,480,536 $ 1,516,955
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, 2018 2017 2018 2017 Net
sales $ 301,395 $ 275,695 $ 1,182,611 $ 1,095,784 Cost of products
sold 193,251 179,175 767,351
716,067 Gross profit 108,144 96,520 415,260
379,717 Selling, administrative and engineering expenses
70,893 71,879 291,444 277,488 Amortization of intangible assets
5,083 5,106 20,565 20,474 Director & officer transition charges
- - - 7,784 Restructuring charges 746 1,795 11,995 7,228 Impairment
& divestiture charges 70,071 116,979
73,058 116,979 Operating (loss)
profit (38,649 ) (99,239 ) 18,198 (50,236 ) Financing costs,
net 8,617 7,683 31,491 29,703 Other (income) expense, net
(1,130 ) 1,493 (621 ) 2,752 Loss
before income tax (benefit) expense (46,136 ) (108,415 ) (12,672 )
(82,691 ) Income tax (benefit) expense (8,472 )
(9,651 ) 8,976 (16,478 ) Net loss $
(37,664 ) $ (98,764 ) $ (21,648 ) $ (66,213 )
Loss per
share Basic $ (0.62 ) $ (1.65 ) $ (0.36 ) $ (1.11 ) Diluted
(0.62 ) (1.65 ) (0.36 ) (1.11 )
Weighted average common
shares outstanding Basic 60,893 59,726 60,441 59,436 Diluted
60,893 59,726 60,441 59,436
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, 2018 2017
2018 2017 Operating
Activities Net loss $ (37,664 ) $ (98,764 ) $ (21,648 ) $
(66,213 ) Adjustments to reconcile net loss to net cash provided by
operating activities: Impairment & other divestiture charges,
net of tax effect 62,949 108,860 75,334 108,860 Depreciation and
amortization 9,907 10,848 40,707 43,110 Stock-based compensation
expense 2,506 1,881 14,457 16,733 Expense (benefit) for deferred
income taxes 3,689 (10,320 ) (6,890 ) (8,956 ) Amortization of debt
issuance costs 1,160 413 2,399 1,657 Other non-cash adjustments 272
179 619 1,202 Changes in components of working capital and other,
excluding acquisitions and divestitures Accounts receivable 18,363
19,143 (3,093 ) (3,475 ) Inventories 3,886 (10,958 ) (18,704 )
(11,277 ) Trade accounts payable (2,569 ) 4,660 2,593 18,117
Prepaid expenses and other assets 3,067 1,745 (10,625 ) (5,367 )
Income tax accounts (9,204 ) 8,627 16,785 (10,646 ) Accrued
compensation and benefits 7,008 (17 ) 4,827 3,752 Other accrued
liabilities 7,134 140 9,332
1,002 Cash provided by operating activities
70,504 36,437 106,093 88,499
Investing Activities
Capital expenditures (2,154 ) (5,276 ) (20,870 ) (28,195 ) Proceeds
from sale of property, plant and equipment 5 326 153 570 Rental
asset buyout for Viking divestiture - - (27,718 ) - Proceeds from
sale of business, net of transaction costs 122 - 8,902 - Cash paid
for business acquisitions, net of cash acquired (892 )
- (23,218 ) - Cash used in
investing activities (2,919 ) (4,950 ) (62,751 ) (27,625 )
Financing Activities Principal repayments on term loan
(7,500 ) (7,500 ) (30,000 ) (18,750 ) Stock option excercises &
other 5,246 951 15,681 8,265 Redemption of 5.625% senior notes - -
- (500 ) Taxes paid related to the net share settlement of equity
awards (5 ) (66 ) (1,284 ) (1,065 ) Payment of deferred acquisition
consideration - - - (742 ) Cash dividend - -
(2,390 ) (2,358 ) Cash used in financing
activities (2,259 ) (6,615 ) (17,993 ) (15,150 ) Effect of
exchange rate changes on cash (4,326 ) 5,745
(4,430 ) 4,243 Net increase in cash and cash
equivalents 61,000 30,617 20,919 49,967 Cash and cash equivalents -
beginning of period 189,490 198,954
229,571 179,604 Cash and cash
equivalents - end of period $ 250,490 $ 229,571 $
250,490 $ 229,571
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 $ 111,603 $ 415,897
ENERGY SEGMENT 84,646 72,884 83,480 68,584 309,594 75,841 65,992
83,857 77,454 303,144 ENGINEERED SOLUTIONS SEGMENT 93,857
94,337 111,444 106,796
406,434 116,198 110,092
124,942 112,338 463,570
TOTAL $ 265,793 $ 258,869 $ 295,427 $
275,695 $ 1,095,784 $ 288,955 $ 275,165
$ 317,096 $ 301,395 $ 1,182,611
%
SALES GROWTH INDUSTRIAL SEGMENT -2 % 13 % 5 % 7 % 6 % 11 % 8 %
8 % 11 % 10 % ENERGY SEGMENT -26 % -15 % -18 % -25 % -21 % -10 % -9
% 0 % 13 % -2 % ENGINEERED SOLUTIONS SEGMENT -8 % -2 % 3 % 18 % 2 %
24 % 17 % 12 % 5 % 14 % TOTAL -13 % -2 % -3 % 0 % -5 % 9 % 6 % 7 %
9 % 8 %
OPERATING PROFIT (LOSS) INDUSTRIAL SEGMENT $
19,491 $ 19,037 $ 24,019 $ 24,076 $ 86,623 $ 19,482 $ 18,493 $
25,845 $ 26,576 $ 90,396 ENERGY SEGMENT 3,328 (647 ) 895 (3,675 )
(99 ) 1,224 747 7,033 3,336 12,340 ENGINEERED SOLUTIONS SEGMENT
2,834 3,282 8,174 6,069 20,359 6,618 2,409 9,038 7,633 25,698
CORPORATE / GENERAL (6,450 ) (6,372 ) (5,372 )
(6,935 ) (25,128 ) (6,022 ) (4,789 )
(8,145 ) (5,377 ) (24,333 ) ADJUSTED OPERATING
PROFIT $ 19,203 $ 15,300 $ 27,716 $ 19,535 $ 81,755 $ 21,302 $
16,860 $ 33,771 $ 32,168 $ 104,101 IMPAIRMENT & DIVESTITURE
CHARGES - - - (116,979 ) (116,979 ) - (2,987 ) - (70,071 ) (73,058
) RESTRUCTURING CHARGES (1) (2,948 ) (2,101 ) (384 ) (1,795 )
(7,228 ) (6,629 ) (4,284 ) (1,186 ) (746 ) (12,845 ) 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
$ (38,649 ) $ 18,198
ADJUSTED OPERATING
PROFIT % INDUSTRIAL SEGMENT 22.3 % 20.8 % 23.9 % 24.0 % 22.8 %
20.1 % 18.7 % 23.9 % 23.8 % 21.7 % ENERGY SEGMENT 3.9 % -0.9 % 1.1
% -5.4 % 0.0 % 1.6 % 1.1 % 8.4 % 4.3 % 4.1 % ENGINEERED SOLUTIONS
SEGMENT 3.0 % 3.5 % 7.3 % 5.7 % 5.0 % 5.7 % 2.2 % 7.2 % 6.8 % 5.5 %
ADJUSTED OPERATING PROFIT % 7.2 % 5.9 % 9.4 % 7.1 % 7.5 % 7.4 % 6.1
% 10.7 % 10.7 % 8.8 %
EBITDA INDUSTRIAL SEGMENT $
21,217 $ 21,064 $ 25,575 $ 25,851 $ 93,707 $ 21,202 $ 21,034 $
27,823 $ 28,312 $ 98,371 ENERGY SEGMENT 9,108 2,943 4,633 142
16,826 5,125 4,533 11,554 7,726 28,938 ENGINEERED SOLUTIONS SEGMENT
6,281 7,277 11,716 9,533 34,807 10,254 6,020 12,566 11,779 40,619
CORPORATE / GENERAL (5,879 ) (5,846 ) (4,868 )
(6,637 ) (23,230 ) (5,518 ) (4,799 )
(7,569 ) (4,612 ) (22,498 ) ADJUSTED EBITDA $
30,727 $ 25,438 $ 37,056 $ 28,889 $ 122,110 $ 31,063 $ 26,788 $
44,374 $ 43,205 $ 145,430 IMPAIRMENT & DIVESTITURE CHARGES - -
- (116,979 ) (116,979 ) - (2,987 ) - (70,071 ) (73,058 )
RESTRUCTURING CHARGES (1) (2,948 ) (2,101 ) (384 ) (1,795 ) (7,228
) (6,629 ) (4,284 ) (1,186 ) (746 ) (12,845 ) 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 $ (27,612 ) $
59,527
ADJUSTED EBITDA % INDUSTRIAL SEGMENT
24.3 % 23.0 % 25.4 % 25.8 % 24.7 % 21.9 % 21.2 % 25.7 % 25.4 % 23.7
% ENERGY SEGMENT 10.8 % 4.0 % 5.5 % 0.2 % 5.4 % 6.8 % 6.9 % 13.8 %
10.0 % 9.5 % ENGINEERED SOLUTIONS SEGMENT 6.7 % 7.7 % 10.5 % 8.9 %
8.6 % 8.8 % 5.5 % 10.1 % 10.5 % 8.8 % ADJUSTED EBITDA % 11.6 % 9.8
% 12.5 % 10.5 % 11.1 % 10.8 % 9.7 % 14.0 % 14.3 % 12.3 %
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 $ (37,664 ) $ (21,648 )
IMPAIRMENT & DIVESTITURE CHARGES, NET OF TAX EFFECT - - -
108,860 108,860 - 12,385 - 62,949 75,334 DIRECTOR & OFFICER
TRANSITION CHARGES, NET OF TAX EFFECT 4,904 - - - 4,904 - - - - -
RESTRUCTURING CHARGES, NET OF TAX EFFECT (1) 2,171 1,537 260 1,301
5,269 6,254 3,784 (249 ) (337 ) 9,452 ACCELERATED DEBT ISSUANCES
COSTS, NET OF TAX EFFECT - - - - - - - - 601 601 OTHER INCOME TAX
(BENEFIT) EXPENSE - - (3,193 ) -
(3,193 ) - 9,705 (4,891 )
(1,831 ) 2,983 ADJUSTED EARNINGS $ 12,040
$ 6,611 $ 19,578 $ 11,397 $ 49,627 $
11,480 $ 7,653 $ 23,872 $ 23,718 $ 66,722
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 $ (0.62 ) $ (0.36 ) IMPAIRMENT
& DIVESTITURE CHARGES, NET OF TAX EFFECT - - - 1.82 1.82 - 0.21
- 1.03 1.24 DIRECTOR & OFFICER TRANSITION CHARGES, NET OF TAX
EFFECT 0.08 - - - 0.08 - - - - - RESTRUCTURING CHARGES, NET OF TAX
EFFECT (1) 0.04 0.03 - 0.02 0.09 0.10 0.06 - (0.01 ) 0.15
ACCELERATED DEBT ISSUANCES COSTS, NET OF TAX EFFECT - - - - - - - -
0.01 0.01 OTHER INCOME TAX (BENEFIT) EXPENSE -
- (0.05 ) - (0.05 ) -
0.16 (0.09 ) (0.02 ) 0.05
ADJUSTED DILUTED EARNINGS PER SHARE $ 0.20 $ 0.11 $ 0.32
$ 0.19 $ 0.83 $ 0.19 $ 0.13 $ 0.39
$ 0.39 $ 1.09
ADJUSTED EBITDA
(3) NET EARNINGS (LOSS) (GAAP MEASURE) $ 4,965 $ 5,074 $ 22,511
$ (98,764 ) $ (66,213 ) $ 5,226 $ (18,221 ) $ 29,012 $ (37,664 ) $
(21,648 ) FINANCING COSTS, NET 7,132 7,334 7,553 7,683 29,703 7,514
7,604 7,756 8,617 31,491 INCOME TAX (BENEFIT) EXPENSE (2,998 ) 200
(4,029 ) (9,651 ) (16,478 ) 1,604 19,839 (3,995 ) (8,472 ) 8,976
DEPRECIATION & AMORTIZATION 10,896 10,729
10,637 10,847 43,108
10,090 10,295 10,415
9,907 40,708 EBITDA $ 19,995 $ 23,337 $ 36,672
$ (89,885 ) $ (9,881 ) $ 24,434 $ 19,517 $ 43,188 $ (27,612 ) $
59,527 IMPAIRMENT & OTHER DIVESTITURE CHARGES - - - 116,979
116,979 - 2,987 - 70,071 73,058 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
746 12,845 ADJUSTED EBITDA $
30,727 $ 25,438 $ 37,056 $ 28,889 $ 122,110
$ 31,063 $ 26,788 $ 44,374 $ 43,205 $
145,430
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 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)
Q1 FISCAL 2019 FISCAL 2019 LOW HIGH
LOW HIGH RECONCILIATION OF GAAP DILUTED
EARNINGS PER SHARE TO ADJUSTED DILUTED EARNINGS PER SHARE
GUIDANCE GAAP DILUTED EARNINGS PER SHARE $ 0.20 $ 0.25 $ 1.09 $
1.20 (GAIN)/LOSS ON PRODUCT LINE DIVESTITURE, NET OF TAX (1) TBD
TBD TBD TBD ADJUSTED DILUTED EARNINGS PER SHARE
GUIDANCE $ 0.20 $ 0.25 $ 1.09 $ 1.20
RECONCILIATION OF GAAP CASH FLOW FROM OPERATIONS TO FREE CASH
FLOW CASH FLOW FROM OPERATIONS $ 95 $ 105 CAPITAL EXPENDITURES
(25 ) (30 ) OTHER 10 10 FREE CASH FLOW
GUIDANCE $ 80 $ 85
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 divesiture associtated with closing of the Cortland
Fibron business is subject to numerous uncertainties which makes an
estimate not meaningful.
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version on businesswire.com: https://www.businesswire.com/news/home/20180926005207/en/
Actuant CorporationBarb BolensVP Corporate Strategy &
Investor Relations262-293-1562
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