First Quarter 2019
Highlights*
- Completed sale of Cortland Fibron (upstream oil & gas) on
December 19, 2018.
- Initiated process to divest Cortland US and Precision-Hayes
International businesses, which have been moved to Assets and
Liabilities Held for Sale.
- Total net sales were $293 million for the quarter.
- Core sales increased 3% on a year-over-year basis while foreign
currency reduced net sales by 2% and the impact from acquisitions
and divestitures was negligible.
- The Industrial Tools & Services (“IT&S”) segment
achieved revenues of $149 million, with a core sales increase of 4%
year-over-year.
- The Engineered Components & Systems (“EC&S”) business
achieved revenues of $144 million, with a core sales increase of 2%
year-over-year.
- GAAP Operating Margin was -3.2% versus 5% in first quarter 2018
(see Consolidated Results below, along with the attached
reconciliation of earnings). Adjusted Operating Margin expanded
200bp over first quarter 2018 to 9.4% from 7.4%.
- Adjusted EBITDA Margin increased by 130bp with significant
improvement in operating leverage and incremental margins in line
with expectations.
- GAAP diluted earnings per share (“EPS”) was a loss of $0.29 in
the first quarter of fiscal 2019 versus EPS of $0.09 in 2018.
Adjusted EPS was $0.27, a 42% improvement over first quarter 2018
adjusted EPS of $0.19.
- Significant year-over-year reduction of Net Debt to Adjusted
EBITDA leverage from 3.2x at the end of first quarter 2018 to 2.1x
at the end of first quarter 2019.
*This news release contains non-GAAP financial measures in
addition to the financial measures in accordance with GAAP.
Reconciliations of the GAAP to non-GAAP financial measures can be
found in the footnotes to this release.
Actuant Corporation (NYSE: ATU) today announces results for its
fiscal first quarter 2019 ended November 30, 2018.
Randy Baker, President and Chief Executive Officer, said, “Our
solid quarterly results demonstrate sustained momentum as we drive
growth and incremental profitability across our two business
segments. In particular, growth for the Industrial Tools &
Services segment was driven by strength in our premier Enerpac
branded tools product line and improved profitability in our heavy
lifting product category resulting from strategic changes to our
product offerings in 2018. We also continued to focus on winning
new product platforms at our key OEM customers and expanding
operating margins in the Engineered Components & Systems
segment. We are executing each segment’s strategy and believe we
are well positioned to deliver enhanced shareholder value.”
Mr. Baker continued, “We also made progress with our portfolio
optimization efforts, completing the sale of Cortland Fibron. In
addition, we have begun processes to divest the remaining Cortland
and Precision-Hayes International businesses. The proceeds from
these transactions, cash generated from operations, and access to
capital markets on reduced leverage, will provide us the fuel
needed to continue to invest in our core tools business.”
Consolidated
Results
(US$ in millions)
Three Months Ended Nov 30,
2018
2017
Sales
$292.5
$289.0
Operating Profit (Loss)
$(9.3)
$14.7
Adjusted Op Profit
$27.5
$21.3
Adjusted Op Profit %
9.4%
7.4%
Earnings (Loss) per Share
$(0.29)
$0.09
Adjusted Earnings per Share
$0.27
$0.19
EBITDA
$(1.3)
$24.4
Adjusted EBITDA
$35.5
$31.1
EBITDA %
(0.5)%
8.5%
Adjusted EBITDA %
12.1%
10.8%
- Consolidated net sales for the first quarter were $292.5
million, slightly higher than the $289.0 million recorded in the
comparable prior year quarter. Core sales improved 3%
year-over-year, while foreign currency rate changes reduced net
sales by 2%. The net impact from the Mirage and Equalizer
acquisitions, net of the Viking divestiture, was negligible.
- Fiscal 2019 first quarter net loss and EPS were ($17.5) million
and $(0.29), compared to $5.2 million and $0.09, respectively, in
the comparable prior year quarter.
- Fiscal 2019 first quarter earnings included impairment &
divestiture and other charges of $36.5 million ($33.8 million or
$0.55 per share, after tax) primarily related to the anticipated
sale of the Cortland US and Precision-Hayes International
businesses as well as other divestiture related costs.
- The first quarter of fiscal 2019 also included $0.4 million of
restructuring charges ($0.3 million or less than $0.01 per share,
after tax).
- Fiscal 2018 first quarter earnings included restructuring
charges of $6.6 million ($6.3 million or $0.10 per share, after
tax).
- Excluding impairment, divestiture and restructuring charges,
adjusted EPS for the first quarter of fiscal 2019 was $0.27,
compared to $0.19 in the comparable prior year period (see attached
reconciliation of earnings).
Segment
Results
Industrial Tools & Services Segment
(IT&S)
(US$ in millions)
Three Months Ended Nov 30,
2018
2017
Sales
$148.7
$142.0
Operating Profit
$26.4
$20.8
Adjusted Op Profit (1)
$26.3
$22.2
Adjusted Op Profit % (1)
17.7%
15.6%
(1) Excludes a minimal restructuring benefit and $1.4 million of
restructuring charges in the first quarter of fiscal 2019 and 2018,
respectively.
- First quarter fiscal 2019 IT&S segment net sales were
$148.7 million, 5% higher than the prior year. The impact of
foreign currency exchange rates reduced sales by 1% year-over-year
and the Equalizer and Mirage acquisitions added 2%, resulting in a
4% year-over-year core sales increase.
- Top line growth including double-digit gains in the Americas,
resulted from the continued strength of our end markets and
investments in commercial effectiveness, despite difficult
comparisons against strong net sales growth in the first quarter of
fiscal 2018. Solid service growth in Europe and Middle East as well
as product and service growth in Australia and Asia also
contributed.
- Adjusted operating profit improved as a result of increased
sales volume and improved margins on our heavy lift product
line.
Engineered Components & Systems
Segment (EC&S)
(US$ in millions)
Three Months Ended Nov 30,
2018
2017
Sales
$143.9
$147.0
Operating (Loss) Profit
$(28.3)
$4.0
Adjusted Op Profit (2)
$8.6
$5.1
Adjusted Op Profit % (2)
6.0%
3.5%
(2) The first quarter of fiscal 2019 excludes $36.5 million of
impairment and other divestiture charges, along with $0.4 million
of restructuring charges. The first quarter of 2018 excludes $1.1
million of restructuring charges.
- First quarter fiscal 2019 EC&S segment net sales were
$143.9 million, a 2% decrease over the prior year. Excluding a 2%
decline in net sales due to a stronger US Dollar and a 2% decline
in sales due to the prior year divestiture of the Viking business,
year-over-year core sales increased 2%.
- Core sales growth was driven by increased demand in automotive,
off-highway vehicle and concrete tensioning markets, new platform
wins starting production and price realization partially offset by
reduced China truck demand.
- Adjusted operating profit margin improved on pricing and
operating efficiencies.
Corporate Expenses and Income Taxes
- Corporate expenses for the first quarter of fiscal 2019 were
$7.4 million, $1.4 million higher than the comparable prior year
period, primarily resulting from stock compensation and consulting
expenses.
- The first quarter effective income tax rate of approximately
13.7% was in line with expectations but lower than the prior year
rate of 14.7%.
Balance Sheet and
Leverage
(US$ in millions)
Period Ending
Nov 30, 2018
Aug 31, 2018
Nov 30, 2017
Cash Balance
$203.4
$250.5
$165.1
Debt Balance
$525.4
$532.7
$554.6
Net Debt to EBITDA
2.1
1.9
3.2
- Net debt at November 30, 2018 was approximately $322 million
(total debt of $525 million less $203 million of cash), which
increased approximately $40 million from the prior quarter end but
declined by $68 million from first quarter of Fiscal 2018. Net Debt
to Adjusted EBITDA was 2.1x at November 30, 2018.
Outlook
Mr. Baker concluded, "We achieved a solid start to fiscal 2019,
and looking ahead to the rest of the year we expect to benefit from
the actions we are taking to manage our portfolio and the strategic
investments we have made in new product development, commercial
effectiveness and operational excellence. We are on track to
deliver our core growth and profitability targets and are focused
on executing our strategies to deliver enhanced value for
shareholders.”
The Company provided the following outlook for its expected
results for the second quarter and for fiscal year 2019. Full
fiscal year net sales outlook is being adjusted for the impact of
the stronger dollar and the sale of the Cortland Fibron business.
The remaining fiscal year net income and EPS outlook remains the
same and is:
- Annual sales growth: Between 3% and 5%;
- Annual sales: $1.15 to $1.19 billion, which reflect the
strengthening of the US Dollar and the sale of the Cortland Fibron
business;
- Full year adjusted EPS: between $1.09 and $1.20, which includes
an expected tax rate of 20%;
- Second quarter sales: $268 to $278 million and continue to
expect the back half of our fiscal year to be even stronger;
- Second quarter adjusted EPS: range of $0.15 to $0.20; and
- Full year free cash flow: $80 to $85 million.
All guidance excludes restructuring, impairment &
divestiture charges, one-time tax adjustments as well as the impact
of potential future, acquisitions, dispositions, share repurchases
and future tariffs.
Impact of Accounting
Change
Effective September 1, 2018, Actuant adopted the new
comprehensive revenue recognition accounting standard using a
modified retrospective transition approach. Under this approach,
revenues for prior periods have not been restated. Application of
the new standard for the quarter ended November 30, 2018 had an
immaterial impact on items reflected in the condensed consolidated
statement of earnings as compared to amounts as determined under
the revenue recognition accounting standard applicable during the
three months ended November 30, 2017.
Conference Call
Information
An investor conference call is scheduled for 10am CT today,
December 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.
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 for the fiscal year ended August 31, 2018 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.
Non-GAAP Financial
Information
This press release contains financial measures that are not
measures presented in conformity with GAAP. They include EBITDA,
Adjusted EBITDA, Adjusted EPS, Adjusted Operating Profit, Free Cash
Flow and Net Debt. This press release includes reconciliations of
these non-GAAP measures to the most comparable GAAP measure,
including in the tables attached to this press release. Management
believes these non-GAAP measures are commonly used financial
measures for investors to evaluate Actuant’s operating performance
and financial position with respect to the periods presented and,
when read in conjunction with the condensed consolidated financial
statements, present a useful tool to evaluate ongoing operations
and provide investors with metrics they can use to evaluate aspects
of the Company’s performance from period to period. In addition,
these are some of the factors management uses in internal
evaluations of the overall performance of the Company’s business.
Management acknowledges that there are many items that impact a
company’s reported results and the adjustments reflected in these
non-GAAP measures are not intended to present all items that may
have impacted these results. In addition, these non-GAAP measures
are not necessarily comparable to similarly-titled measures used by
other companies.
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)
November 30,
August 31,
2018
2018
ASSETS Current assets Cash and cash equivalents
$
203,443
$
250,490
Accounts receivable, net
191,190
187,749
Inventories, net
154,764
156,356
Assets held for sale
106,193
23,573
Other current assets
51,745
42,732
Total current assets
707,335
660,900
Property, plant and equipment, net
79,160
90,220
Goodwill
477,360
512,412
Other intangible assets, net
152,719
181,037
Other long-term assets
33,459
36,769
Total assets
$
1,450,033
$
1,481,338
LIABILITIES AND SHAREHOLDERS' EQUITY Current
liabilities Trade accounts payable
$
124,067
$
130,838
Accrued compensation and benefits
36,343
54,508
Current maturities of debt
30,000
30,000
Income taxes payable
8,215
4,091
Liabilities held for sale
70,030
44,225
Other current liabilities
63,714
67,299
Total current liabilities
332,369
330,961
Long-term debt, net
495,384
502,695
Deferred income taxes
16,931
21,933
Pension and postretirement benefit liabilities
14,671
14,869
Other long-term liabilities
53,113
52,168
Total liabilities
912,468
922,626
Shareholders' equity Capital stock
16,301
16,285
Additional paid-in capital
171,606
167,448
Treasury stock
(617,731
)
(617,731
)
Retained earnings
1,149,578
1,166,955
Accumulated other comprehensive loss
(182,189
)
(174,245
)
Stock held in trust
(2,573
)
(2,450
)
Deferred compensation liability
2,573
2,450
Total shareholders' equity
537,565
558,712
Total liabilities and shareholders' equity
$
1,450,033
$
1,481,338
Actuant Corporation Condensed Consolidated Statements of
Operations (Dollars in thousands, except per share
amounts) (Unaudited)
Three Months Ended
November 30,
November 30,
2018
2017
Net sales
$
292,531
$
288,955
Cost of products sold
187,523
188,044
Gross profit
105,008
100,911
Selling, administrative and engineering expenses
73,192
74,478
Amortization of intangible assets
4,278
5,131
Restructuring charges
403
6,629
Impairment & divestiture charges
36,453
-
Operating (loss) profit
(9,318
)
14,673
Financing costs, net
7,295
7,514
Other expense, net
911
329
(Loss) income before income tax (benefit) expense
(17,524
)
6,830
Income tax (benefit) expense
(72
)
1,604
Net (loss) income
$
(17,452
)
$
5,226
(Loss) earnings per share Basic
$
(0.29
)
$
0.09
Diluted
(0.29
)
0.09
Weighted average common shares outstanding Basic
61,031
59,871
Diluted
61,031
60,609
Actuant Corporation
Condensed Consolidated
Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended
November 30,
November 30,
2018
2017
Operating Activities Net (loss) earnings
$
(17,452
)
$
5,226
Adjustments to reconcile net (loss) earnings to net cash used in
operating activities: Impairment & divestiture charges, net of
tax effect
33,836
-
Depreciation and amortization
8,890
10,090
Stock-based compensation expense
3,594
5,420
Benefit for deferred income taxes
(1,143
)
(307
)
Amortization of debt issuance costs
301
413
Other non-cash adjustments
130
113
Changes in components of working capital and other, excluding
acquisitions and divestitures: Accounts receivable
(17,676
)
(11,478
)
Inventories
(17,824
)
(11,628
)
Trade accounts payable
1,051
6,204
Prepaid expenses and other assets
(4,998
)
(12,043
)
Income tax accounts
1,064
(1,714
)
Accrued compensation and benefits
(16,544
)
(12,588
)
Other accrued liabilities
(2,339
)
1,834
Cash used in operating activities
(29,110
)
(20,458
)
Investing Activities Capital expenditures
(7,666
)
(7,904
)
Proceeds from sale of property, plant and equipment
11
32
Rental asset buyout for Viking divestiture
-
(27,718
)
Cash used in investing activities
(7,655
)
(35,590
)
Financing Activities Principal repayments on term
loan
(7,500
)
(7,500
)
Stock option exercises & other
552
2,231
Taxes paid related to the net share settlement of equity awards
(201
)
(282
)
Cash dividend
(2,439
)
(2,390
)
Cash used in financing activities
(9,588
)
(7,941
)
Effect of exchange rate changes on cash
(694
)
(532
)
Net decrease in cash and cash equivalents
(47,047
)
(64,521
)
Cash and cash equivalents - beginning of period
250,490
229,571
Cash and cash equivalents - end of period
$
203,443
$
165,050
ACTUANT CORPORATION SUPPLEMENTAL UNAUDITED DATA
(Dollars in thousands)
FISCAL 2018
FISCAL 2019
Q1
Q2
Q3
Q4
TOTAL
Q1
Q2
Q3
Q4
TOTAL
SALES INDUSTRIAL TOOLS & SERVICES SEGMENT
$
141,991
$
136,986
$
158,735
$
153,373
$
591,085
$
148,655
$ -
$ -
$ -
$
148,655
ENGINEERED COMPONENTS & SYSTEMS SEGMENT
146,964
138,179
158,361
148,022
591,526
143,876
-
-
-
143,876
TOTAL
$
288,955
$
275,165
$
317,096
$
301,395
$
1,182,611
$
292,531
$ -
$ -
$ -
$
292,531
% SALES GROWTH
INDUSTRIAL TOOLS & SERVICES SEGMENT
2
%
5
%
8
%
12
%
7
%
5
%
-
-
-
5
%
ENGINEERED COMPONENTS & SYSTEMS SEGMENT
16
%
7
%
7
%
6
%
9
%
-2
%
-
-
-
-2
%
TOTAL
9
%
6
%
7
%
9
%
8
%
1
%
-
-
-
1
%
OPERATING PROFIT (LOSS)
INDUSTRIAL TOOLS & SERVICES SEGMENT
$
22,218
$
20,510
$
32,206
$
28,783
$
103,718
$
26,345
$ -
$ -
$ -
$
26,345
ENGINEERED COMPONENTS & SYSTEMS SEGMENT
5,107
1,177
9,714
8,789
24,787
8,593
-
-
-
8,593
CORPORATE / GENERAL
(6,023
)
(4,827
)
(8,149
)
(5,404
)
(24,404
)
(7,400
)
-
-
-
(7,400
)
ADJUSTED OPERATING PROFIT
$
21,302
$
16,860
$
33,771
$
32,168
$
104,101
$
27,538
$ -
$ -
$ -
$
27,538
IMPAIRMENT & DIVESTITURE CHARGES
-
(2,987
)
-
(70,071
)
(73,058
)
(36,453
)
-
-
-
(36,453
)
RESTRUCTURING CHARGES (1)
(6,629
)
(4,284
)
(1,186
)
(746
)
(12,845
)
(403
)
-
-
-
(403
)
OPERATING PROFIT (LOSS)
$
14,673
$
9,589
$
32,585
$
(38,649
)
$
18,198
$
(9,318
)
$ -
$ -
$ -
$
(9,318
)
ADJUSTED OPERATING PROFIT %
INDUSTRIAL TOOLS & SERVICES SEGMENT
15.6
%
15.0
%
20.3
%
18.8
%
17.5
%
17.7
%
-
-
-
17.7
%
ENGINEERED COMPONENTS & SYSTEMS SEGMENT
3.5
%
0.9
%
6.1
%
5.9
%
4.2
%
6.0
%
-
-
-
6.0
%
ADJUSTED OPERATING PROFIT %
7.4
%
6.1
%
10.7
%
10.7
%
8.8
%
9.4
%
-
-
-
9.4
%
EBITDA
INDUSTRIAL TOOLS & SERVICES SEGMENT
$
25,567
$
24,594
$
36,394
$
32,763
$
119,318
$
30,038
$ -
$ -
$ -
$
30,038
ENGINEERED COMPONENTS & SYSTEMS SEGMENT
11,004
7,267
15,093
15,114
48,478
12,841
-
-
-
12,841
CORPORATE / GENERAL
(5,508
)
(5,073
)
(7,113
)
(4,672
)
(22,366
)
(7,362
)
-
-
-
(7,362
)
ADJUSTED EBITDA
$
31,063
$
26,788
$
44,374
$
43,205
$
145,430
$
35,517
$ -
$ -
$ -
$
35,517
IMPAIRMENT & DIVESTITURE CHARGES
-
(2,987
)
-
(70,071
)
(73,058
)
(36,453
)
-
-
-
(36,453
)
RESTRUCTURING CHARGES (1)
(6,629
)
(4,284
)
(1,186
)
(746
)
(12,845
)
(403
)
-
-
-
(403
)
EBITDA
$
24,434
$
19,517
$
43,188
$
(27,612
)
$
59,527
$
(1,339
)
$ -
$ -
$ -
$
(1,339
)
ADJUSTED EBITDA %
INDUSTRIAL TOOLS & SERVICES SEGMENT
18.0
%
18.0
%
22.9
%
21.4
%
20.2
%
20.2
%
-
-
-
20.2
%
ENGINEERED COMPONENTS & SYSTEMS SEGMENT
7.5
%
5.3
%
9.5
%
10.2
%
8.2
%
8.9
%
-
-
-
8.9
%
ADJUSTED EBITDA %
10.8
%
9.7
%
14.0
%
14.3
%
12.3
%
12.1
%
-
-
-
12.1
%
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 2018
FISCAL 2019 Q1 Q2 Q3 Q4
TOTAL Q1 Q2 Q3 Q4 TOTAL
ADJUSTED EARNINGS (1) NET EARNINGS (LOSS) (GAAP MEASURE)
$
5,226
$
(18,221
)
$
29,012
$
(37,664
)
$
(21,648
)
$
(17,452
)
$ -
$ -
$ -
$
(17,452
)
IMPAIRMENT & DIVESTITURE CHARGES, NET OF TAX EFFECT
-
12,385
-
62,949
75,334
33,836
-
-
-
33,836
RESTRUCTURING CHARGES, NET OF TAX EFFECT (1)
6,254
3,784
(249
)
(337
)
9,452
300
-
-
-
300
ACCELERATED DEBT ISSUANCES COSTS, NET OF TAX EFFECT
-
-
-
601
601
-
-
-
-
-
OTHER INCOME TAX (BENEFIT) EXPENSE
-
9,705
(4,891
)
(1,831
)
2,983
-
-
-
-
-
ADJUSTED EARNINGS
$
11,480
$
7,653
$
23,872
$
23,718
$
66,722
$
16,684
$ -
$ -
$ -
$
16,684
ADJUSTED DILUTED EARNINGS PER SHARE (2)
NET EARNINGS (LOSS) (GAAP MEASURE)
$
0.09
$
(0.30
)
$
0.48
$
(0.62
)
$
(0.36
)
$
(0.29
)
$ -
$ -
$ -
$
(0.29
)
IMPAIRMENT & DIVESTITURE CHARGES, NET OF TAX EFFECT
-
0.21
-
1.03
1.24
0.55
-
-
-
0.55
RESTRUCTURING CHARGES, NET OF TAX EFFECT (1)
0.10
0.06
-
(0.01
)
0.15
0.01
-
-
-
0.01
ACCELERATED DEBT ISSUANCES COSTS, NET OF TAX EFFECT
-
-
-
0.01
0.01
-
-
-
-
- OTHER INCOME TAX (BENEFIT) EXPENSE
-
0.16
(0.09
)
(0.02
)
0.05
-
-
-
-
- ADJUSTED DILUTED EARNINGS PER SHARE
$
0.19
$
0.13
$
0.39
$
0.39
$
1.09
$
0.27
$ -
$ -
$ -
$
0.27
ADJUSTED EBITDA (3)
NET EARNINGS (LOSS) (GAAP MEASURE)
$
5,226
$
(18,221
)
$
29,012
$
(37,664
)
$
(21,648
)
$
(17,452
)
$ -
$ -
$ -
$
(17,452
)
FINANCING COSTS, NET
7,514
7,604
7,756
8,617
31,491
7,295
-
-
-
7,295
INCOME TAX (BENEFIT) EXPENSE
1,604
19,839
(3,995
)
(8,472
)
8,976
(72
)
-
-
-
(72
)
DEPRECIATION & AMORTIZATION
10,090
10,295
10,415
9,907
40,708
8,890
-
-
-
8,890
EBITDA
$
24,434
$
19,517
$
43,188
$
(27,612
)
$
59,527
$
(1,339
)
$ -
$ -
$ -
$
(1,339
)
IMPAIRMENT & OTHER DIVESTITURE CHARGES
-
2,987
-
70,071
73,058
36,453
-
-
-
36,453
RESTRUCTURING CHARGES
6,629
4,284
1,186
746
12,845
403
-
-
-
403
ADJUSTED EBITDA
$
31,063
$
26,788
$
44,374
$
43,205
$
145,430
$
35,517
$ -
$ -
$ -
$
35,517
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) Q2 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
$
0.15
$
0.20
$
1.09
$
1.20
(GAIN)/LOSS ON PRODUCT LINE DIVESTITURE, NET OF TAX (1) TBD TBD TBD
TBD ADJUSTED DILUTED EARNINGS PER SHARE GUIDANCE
$
0.15
$
0.20
$
1.09
$
1.20
RECONCILIATION OF GAAP CASH FLOW FROM OPERATIONS
TO FREE CASH FLOW CASH FLOW FROM OPERATIONS
$
105
$
115
CAPITAL EXPENDITURES
(25
)
(30
)
OTHER
-
-
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 divestiture associated with closing
of the Cortland Fibron business is subject to numerous
uncertainties which makes an estimate not meaningful.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181220005122/en/
Barb Bolens VP Corporate Strategy & Investor Relations
262-293-1562
Actuant (NYSE:ATU)
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