Second Quarter 2019
Highlights*
- Completed sale of Precision-Hayes
International business on December 31, 2018.
- Announced intent to divest EC&S
segment on January 24, 2019.
- Total net sales were $272 million for
the quarter. Core sales increased 7% on a year-over-year basis net
of the impact of foreign currency and divestitures, each of which
decreased net sales by 4%.
- The Industrial Tools & Services
(“IT&S”) segment achieved second quarter revenues of $150
million and delivered a core sales increase of 12%
year-over-year.
- The Engineered Components & Systems
(“EC&S”) segment achieved revenues of $122 million with flat
core sales, net of divestitures.
- GAAP Operating Margin was 6.0% versus
3.6% in second quarter 2018 (see Consolidated Results below, along
with the attached reconciliation of earnings). Adjusted Operating
Margin expanded 240bps over second quarter 2018, to 8.6% from
6.2%.
- Adjusted EBITDA Margin increased by
140bps with significant improvement in operating leverage over the
second quarter of 2018 resulting in incremental margins in line
with our expectations.
- GAAP diluted earnings per share (“EPS”)
was $0.04 in the second quarter of fiscal 2019, versus a diluted
loss per share of $0.30 in the comparable period in 2018. Adjusted
EPS was $0.19, a 46% improvement over second quarter 2018 adjusted
EPS of $0.13.
- Significant year-over-year reduction of
leverage (Net Debt to Adjusted EBITDA) from 3.0x at the end of
second quarter 2018 to 2.1x at the end of second 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 announced results for its
fiscal 2019 second quarter ended February 28, 2019.
“We continued to execute successfully against our strategic
plan, as demonstrated by the strong 12% core growth in our IT&S
segment despite weather related challenges in the quarter,” said
Randy Baker, President and CEO. “The investments we have made in
our commercial processes are yielding results, and we believe
IT&S is well positioned for continued growth. Additionally, the
restructuring actions we took in 2018, along with the decision to
focus solely on standard product in our Heavy Lifting product
offering, have provided improved profitability in the current
fiscal year. EC&S had a solid quarter as well, driven by solid
execution of their plan, core sales growth in the Americas and
strong profit improvement.”
Mr. Baker continued, “As we plan for our future as a pure-play
industrial tool company, we are focused on delivering world class
operating margins aligned with our strategy. To further that
objective, we are initiating a restructuring program centered on
achieving savings both from the integration of the Enerpac and
Hydratight businesses and in our corporate structure by better
leveraging and consolidating certain global support functions,
facilities and spend. We expect to achieve $12-$15 million of
annual savings and anticipate completing these actions within 18-24
months. The one-time total cost of these actions is projected to be
$15-$20 million. Additionally, during the quarter, we made
significant progress toward optimizing our portfolio of businesses
with the announcement of our intent to divest the EC&S segment
and closing the sale of Precision-Hayes International and Cortland
Fibron. We are confident that focusing on growing our high quality
and high margin IT&S business and pursuing this sale is the
best way to maximize value for Actuant’s shareholders while
securing a positive future for EC&S and its talented employees
around the world.”
Consolidated Results
(US$ in millions)
Three Months Ended Feb 28 Six Months Ended Feb 28
2019 2018 2019 2018 Sales $271.9 $275.2 $564.4 $564.1
Operating Profit $16.4 $9.8 $7.0 $24.5 Adjusted Op Profit $23.3
$17.1 $50.8 $38.4 Adjusted Op Profit % 8.6% 6.2% 9.0% 6.8% Earnings
(Loss) per Share $0.04 $(0.30) $(0.24) $(0.22) Adjusted Earnings
per Share $0.19 $0.13 $0.46 $0.31 Net Income (Loss) $2.8 $(18.2)
$(14.7) $(13.0) EBITDA $23.1 $19.5 $21.8 $44.0 Adjusted EBITDA
$30.1 $26.8 $65.6 $57.9 EBITDA % 8.5% 7.1% 3.9% 7.8% Adjusted
EBITDA % 11.1% 9.7% 11.6% 10.3%
- Consolidated net sales for the second
quarter were $271.9 million, slightly lower than the $275.2 million
recorded in the comparable prior year quarter. Core sales improved
7% year-over-year, while foreign currency rate changes decreased
net sales by 4% and the impact of divestitures (Precision-Hayes
International and Cortland Fibron) also reduced net sales by
4%.
- Fiscal 2019 second quarter net income
and EPS were $2.8 million and $0.04, compared to a net loss of
$(18.2) million and EPS of $(0.30), respectively, in the comparable
prior year quarter.
- Fiscal 2019 second quarter earnings
included impairment and other divestiture charges of $6.9 million
($6.7 million, or $0.11 per share, after tax) related to the
Precision-Hayes International, Cortland and EC&S divestitures,
along with $2.0 million ($0.04 per share) of charges primarily
related to U.S. tax reform.
- Fiscal 2018 second quarter earnings
included restructuring charges of $4.3 million ($3.8 million, or
$0.06 per share, after tax), impairment and other 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.
- Excluding impairment, other divestiture
and restructuring charges, adjusted EPS for the second quarter of
fiscal 2019 was $0.19, compared to $0.13 in the comparable prior
year period (see attached reconciliation of earnings).
- Consolidated net sales for the six
months ended February 28, 2019 were $564.4 million, compared to
$564.1 in the prior year period. Core sales improved 4%
year-over-year while foreign currency rates decreased net sales 3%
and the net impact of acquisitions and divestitures decreased net
sales by 1%.
- Fiscal 2019’s first half net loss and
EPS were $(14.7) million and $(0.24), respectively, compared to a
net loss and EPS of $(13.0) million and $(0.22), respectively, in
the comparable prior year period.
Segment Results
Industrial Tools & Services Segment (IT&S)
(US$ in millions)
Three Months Ended Feb 28 Six Months Ended Feb 28
2019 2018 2019 2018 Sales $149.5 $137.0 $298.2 $279.0
Operating Profit $26.5 $19.0 $52.9 $39.8 Adjusted Op Profit (1)
$26.6 $20.5 $52.9 $42.7 Adjusted Op Profit % (1) 17.8% 15.0% 17.8%
15.3%
(1) Excludes minimal restructuring charges in fiscal 2019
compared to $1.5 million in the second quarter of fiscal 2018 and
$2.9 million in the six months ended February 28, 2018.
- Second quarter fiscal 2019 IT&S
segment net sales were $149.5 million, 9% higher than the prior
year. Core sales increased 12% and the impact of foreign currency
exchange rates decreased net sales by 3% year-over-year.
- Solid top line growth in both product
and service resulted from the continued strength of our end markets
and commercial investments. The Americas and the Middle East each
experienced double digit top line growth in product and service,
respectively.
- Adjusted operating profit improved as a
result of increased sales volume and product margin expansion as
well as improved profitability within Heavy Lifting due to our
focus on standard product.
Engineered Components & Systems Segment
(EC&S)
(US$ in millions)
Three Months Ended Feb 28 Six Months Ended Feb 28
2019 2018 2019 2018 Sales $122.4 $138.2 $266.3 $285.1
Operating Profit (Loss) $(1.4) $(4.4) $(29.7) $(0.4) Adjusted Op
Profit (2) $5.5 $1.2 $14.1 $6.3 Adjusted Op Profit % (2) 4.5% 0.9%
5.3% 2.2%
(2) The second quarter of fiscal 2019 excludes $6.9 million of
impairment and other divestiture charges. The second quarter of
2018 excludes $3.0 million of impairment and other divestiture
charges, along with $2.6 million of restructuring charges. The six
months ended February 28, 2019 excludes restructuring charges of
$0.4 million and impairment and other divestiture charges of $43.3
million. The six months ended February 28, 2018 excludes
restructuring charges of $3.7 million and $3.0 million of
impairment and other divestiture charges.
- Second quarter fiscal 2019 EC&S
segment net sales were $122.4 million, an 11% decrease from the
prior year. The divestiture of Precision-Hayes International and
Cortland Fibron resulted in a decrease in net sales of $11.8
million (9%) and the strengthening of the US dollar reduced net
sales an additional 2%.
- Core sales were flat due to the ramp up
of new platform wins and price realization, which were offset by
slightly lower volume in on and off-highway vehicle products and
reduced demand in the industrial ropes market. China truck demand
stabilized in the quarter, as expected.
- Adjusted operating profit margin
improved due to pricing and operating efficiencies.
Corporate Expenses and Income
Taxes
- Corporate expenses for the second
quarter of fiscal 2019 were $8.8 million, $4.2 million higher than
the comparable prior year period, primarily resulting from
increased medical, stock compensation and consulting expenses.
- The second quarter effective income tax
rate of approximately 26% was in line with expectations but higher
than the prior year rate of 14%.
Balance Sheet and
Leverage
(US$ in millions)
Period Ending Feb 28, 2019 Aug 31, 2018 Feb
28, 2018 Cash Balance $170.4 $250.5 $153.6 Debt Balance $485.6
$532.7 $547.3 Net Debt to Adjusted EBITDA 2.1 1.9 3.0
- Net debt at February 28, 2019 was
approximately $315 million (total debt of $486 million less $170
million of cash), which decreased approximately $7 million from the
prior quarter and $79 million from second quarter of fiscal 2018.
The company paid $40 million of principal against its Term Loan
facility during the quarter. Net Debt to Adjusted EBITDA was 2.1x
at February 28, 2019.
Outlook
Mr. Baker concluded, "We are pleased with the strong results we
achieved in the first half of fiscal 2019. Going forward, we expect
that our ongoing actions to become a world class tool company along
with cost reductions achieved through our restructuring program
will enable us to drive growth and top-tier profitability. We are
also continuing to invest strategically in new product development,
commercial effectiveness and operational excellence to further
drive value and profitability. We are confident that our strategies
will unlock enhanced shareholder value.”
The Company reaffirms its outlook for fiscal year 2019 and
provides the following outlook for third quarter 2019:
- Annual sales: $1.15 to $1.19 billion,
with annual core sales growth between 3% and 5%;
- Full year adjusted EPS: between $1.09
and $1.20, which includes an expected tax rate of 20%;
- Full year free cash flow: $80 to $85
million;
- Third quarter sales: $295 to $305
million; and
- Third quarter adjusted EPS: range of
$0.40 to $0.45.
All guidance excludes restructuring, impairment and divestiture
charges, one-time tax adjustments and the impact of potential
future acquisitions, dispositions, share repurchases and
tariffs.
Conference Call
Information
An investor conference call is scheduled for 10am CT today,
March 21, 2019. 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.
(tables follow)
Actuant Corporation Condensed Consolidated Balance
Sheets (Dollars in thousands) (Unaudited)
February 28, August 31, 2019
2018 ASSETS Current assets Cash and cash
equivalents $ 170,388 $ 250,490 Accounts receivable, net 210,174
187,749 Inventories, net 161,646 156,356 Assets held for sale
56,113 23,573 Other current assets 54,863
42,732 Total current assets 653,184 660,900 Property,
plant and equipment, net 83,132 90,220 Goodwill 480,208 512,412
Other intangible assets, net 150,035 181,037 Other long-term assets
36,498 36,769 Total assets $
1,403,057 $ 1,481,338
LIABILITIES
AND SHAREHOLDERS' EQUITY Current liabilities Trade accounts
payable $ 122,486 $ 130,838 Accrued compensation and benefits
37,402 54,508 Current maturities of debt 30,000 30,000 Income taxes
payable 8,548 4,091 Liabilities held for sale 20,820 44,225 Other
current liabilities 58,871 67,299 Total
current liabilities 278,127 330,961 Long-term debt, net
455,573 502,695 Deferred income taxes 18,973 21,933 Pension and
postretirement benefit liabilities 14,371 14,869 Other long-term
liabilities 50,383 52,168 Total
liabilities 817,427 922,626 Shareholders' equity Capital
stock 16,364 16,285 Additional paid-in capital 174,418 167,448
Treasury stock (617,731 ) (617,731 ) Retained earnings 1,152,331
1,166,955 Accumulated other comprehensive loss (139,752 ) (174,245
) Stock held in trust (2,989 ) (2,450 ) Deferred compensation
liability 2,989 2,450 Total
shareholders' equity 585,630 558,712
Total liabilities and shareholders' equity $ 1,403,057
$ 1,481,338
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, 2019
2018 2019 2018 Net sales $ 271,907 $
275,165 $ 564,438 $ 564,120 Cost of products sold 174,421
185,469 361,944 373,513
Gross profit 97,486 89,696 202,494 190,607 Selling,
administrative and engineering expenses 70,745 68,287 143,936
142,765 Amortization of intangible assets 3,441 5,168 7,720 10,299
Restructuring charges 60 3,450 463 10,079 Impairment &
divestiture charges 6,886 2,987 43,339
2,987 Operating profit 16,354 9,804 7,036
24,477 Financing costs, net 7,153 7,604 14,448 15,118 Other
expense, net 656 582 1,568
911 Income (loss) before income tax expense 8,545
1,618 (8,980 ) 8,448 Income tax expense 5,792
19,839 5,719 21,443 Net earnings
(loss) $ 2,753 $ (18,221 ) $ (14,699 ) $ (12,995 )
Earnings (loss) per share Basic $ 0.04 $ (0.30 ) $ (0.24 ) $
(0.22 ) Diluted 0.04 (0.30 ) (0.24 ) (0.22 )
Weighted
average common shares outstanding Basic 61,243 60,318 61,137
60,095 Diluted 61,607 60,318 61,137 60,095
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, 2019 2018 2019 2018
Operating Activities Net earnings (loss) $ 2,753 $
(18,221 ) $ (14,699 ) $ (12,995 ) Adjustments to reconcile net
earnings (loss) to net cash used in operating activities:
Impairment & divestiture charges, net of tax effect 6,688
12,385 40,524 12,385 Depreciation and amortization 7,451 10,295
16,341 20,385 Stock-based compensation expense 3,568 2,872 7,162
8,292 Benefit for deferred income taxes (302 ) (6,817 ) (1,445 )
(7,124 ) Amortization of debt issuance costs 301 413 602 826 Other
non-cash adjustments (67 ) 87 63 200 Changes in components of
working capital and other, excluding acquisitions and divestitures:
Accounts receivable (18,760 ) (5,394 ) (36,436 ) (16,872 )
Inventories (6,973 ) (6,805 ) (24,797 ) (18,433 ) Trade accounts
payable (3,861 ) (7,957 ) (2,810 ) (1,753 ) Prepaid expenses and
other assets (4,423 ) 2,875 (9,421 ) (9,168 ) Income tax accounts
467 19,219 1,531 17,505 Accrued compensation and benefits 104 2,629
(16,440 ) (9,959 ) Other accrued liabilities (9,150 )
(7,229 ) (11,489 ) (5,395 ) Cash used in operating
activities (22,204 ) (1,648 ) (51,314 ) (22,106 )
Investing Activities Capital expenditures (8,001 ) (4,643 )
(15,667 ) (12,547 ) Proceeds from sale of property, plant and
equipment 41 81 52 113 Rental asset buyout for Viking divestiture -
- - (27,718 ) Proceeds from sale of business, net of transaction
costs 36,159 8,780 36,159 8,780 Cash paid for business
acquisitions, net of cash acquired - (16,517 )
- (16,517 ) Cash provided by (used in)
investing activities 28,199 (12,299 ) 20,544 (47,889 )
Financing Activities Principal repayments on term loan
(40,000 ) (7,500 ) (47,500 ) (15,000 )
Stock option exercises & other
479 8,074 1,031 10,305 Taxes paid related to the net share
settlement of equity awards (1,288 ) (825 ) (1,489 ) (1,107 ) Cash
dividend - - (2,439 )
(2,390 ) Cash used in financing activities (40,809 ) (251 ) (50,397
) (8,192 ) Effect of exchange rate changes on cash
1,759 2,743 1,065 2,211
Net decrease in cash and cash equivalents (33,055 ) (11,455
) (80,102 ) (75,976 ) Cash and cash equivalents - beginning of
period 203,443 165,050 250,490
229,571 Cash and cash equivalents - end of
period $ 170,388 $ 153,595 $ 170,388 $ 153,595
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 $ 149,521
$ - $ - $ 298,176 ENGINEERED COMPONENTS & SYSTEMS SEGMENT
146,964 138,179
158,361 148,022 591,526
143,876 122,386
- - 266,262 TOTAL $
288,955 $ 275,165 $ 317,096
$ 301,395 $ 1,182,611 $ 292,531
$ 271,907 $ - $ - $ 564,438
% SALES GROWTH INDUSTRIAL TOOLS & SERVICES
SEGMENT 2 % 5 % 8 % 12 % 7 % 5 % 9 % - - 7 % ENGINEERED COMPONENTS
& SYSTEMS SEGMENT 16 % 7 % 7 % 6 % 9 % -2 % -11 % - - -7 %
TOTAL 9 % 6 % 7 % 9 % 8 % 1 % -1 % - - 0 %
OPERATING
PROFIT (LOSS) INDUSTRIAL TOOLS & SERVICES SEGMENT $ 22,218
$ 20,510 $ 32,206 $ 28,783 $ 103,718 $ 26,345 $ 26,596 $ - $ - $
52,941 ENGINEERED COMPONENTS & SYSTEMS SEGMENT 5,107 1,177
9,714 8,789 24,787 8,593 5,484 - - 14,077 CORPORATE / GENERAL
(6,023 ) (4,612 ) (8,042 )
(5,298 ) (23,976 ) (7,400 )
(8,780 ) - -
(16,180 ) ADJUSTED OPERATING PROFIT $ 21,302 $ 17,075 $
33,878 $ 32,274 $ 104,529 $ 27,538 $ 23,300 $ - $ - $ 50,838
IMPAIRMENT & DIVESTITURE CHARGES - (2,987 ) - (70,071 ) (73,058
) (36,453 ) (6,886 ) - - (43,339 ) RESTRUCTURING CHARGES (1)
(6,629 ) (4,284 ) (1,186 )
(746 ) (12,845 ) (403 )
(60 ) - - (463 )
OPERATING PROFIT (LOSS) $ 14,673 $ 9,804
$ 32,692 $ (38,543 ) $ 18,626 $
(9,318 ) $ 16,354 $ - $ - $
7,036
ADJUSTED OPERATING PROFIT % INDUSTRIAL
TOOLS & SERVICES SEGMENT 15.6 % 15.0 % 20.3 % 18.8 % 17.5 %
17.7 % 17.8 % - - 17.8 % ENGINEERED COMPONENTS & SYSTEMS
SEGMENT 3.5 % 0.9 % 6.1 % 5.9 % 4.2 % 6.0 % 4.5 % - - 5.3 %
ADJUSTED OPERATING PROFIT % 7.4 % 6.2 % 10.7 % 10.7 % 8.8 % 9.4 %
8.6 % - - 9.0 %
EBITDA INDUSTRIAL TOOLS &
SERVICES SEGMENT $ 25,567 $ 24,594 $ 36,394 $ 32,763 $ 119,318 $
30,038 $ 30,153 $ - $ - $ 60,191 ENGINEERED COMPONENTS &
SYSTEMS SEGMENT 11,004 7,267 15,093 15,114 48,478 12,841 8,486 - -
21,327 CORPORATE / GENERAL (5,508 ) (5,073 )
(7,113 ) (4,672 ) (22,366
) (7,362 ) (8,544 ) -
- (15,907 ) ADJUSTED EBITDA $ 31,063 $ 26,788
$ 44,374 $ 43,205 $ 145,430 $ 35,517 $ 30,095 $ - $ - $ 65,611
IMPAIRMENT & DIVESTITURE CHARGES - (2,987 ) - (70,071 ) (73,058
) (36,453 ) (6,886 ) - - (43,339 ) RESTRUCTURING CHARGES (1)
(6,629 ) (4,284 ) (1,186 )
(746 ) (12,845 ) (403 )
(60 ) - - (463 ) EBITDA $
24,434 $ 19,517 $ 43,188
$ (27,612 ) $ 59,527 $ (1,339 ) $ 23,149
$ - $ - $ 21,809
ADJUSTED EBITDA % INDUSTRIAL TOOLS & SERVICES SEGMENT
18.0 % 18.0 % 22.9 % 21.4 % 20.2 % 20.2 % 20.2 % - - 20.2 %
ENGINEERED COMPONENTS & SYSTEMS SEGMENT 7.5 % 5.3 % 9.5 % 10.2
% 8.2 % 8.9 % 6.9 % - - 8.0 % ADJUSTED EBITDA % 10.8 % 9.7 % 14.0 %
14.3 % 12.3 % 12.1 % 11.1 % - - 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 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 ) $ 2,753 $ - $ - $ (14,699 )
IMPAIRMENT & DIVESTITURE CHARGES, NET OF TAX EFFECT - 12,385 -
62,949 75,334 33,836 6,688 - - 40,524 RESTRUCTURING CHARGES, NET OF
TAX EFFECT (1) 6,254 3,784 (249 ) (337 ) 9,452 300 (191 ) - - 109
ACCELERATED DEBT ISSUANCES COSTS, NET OF TAX EFFECT - - - 601 601 -
- - - - OTHER INCOME TAX (BENEFIT) EXPENSE -
9,705 (4,891 ) (1,831 )
2,983 - 2,258
- - 2,258 ADJUSTED
EARNINGS $ 11,480 $ 7,653 $ 23,872
$ 23,718 $ 66,722 $ 16,684
$ 11,508 $ - $ - $ 28,192
ADJUSTED DILUTED EARNINGS PER SHARE (2) NET EARNINGS
(LOSS) (GAAP MEASURE) $ 0.09 $ (0.30 ) $ 0.48 $ (0.62 ) $ (0.36 ) $
(0.29 ) $ 0.04 $ - $ - $ (0.24 ) IMPAIRMENT & DIVESTITURE
CHARGES, NET OF TAX EFFECT - 0.21 - 1.03 1.24 0.55 0.11 - - 0.66
RESTRUCTURING CHARGES, NET OF TAX EFFECT (1) 0.10 0.06 - (0.01 )
0.15 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 -
0.04 - -
0.04 ADJUSTED DILUTED EARNINGS PER SHARE $ 0.19 $
0.13 $ 0.39 $ 0.39 $ 1.09
$ 0.27 $ 0.19 $ - $ -
$ 0.46
ADJUSTED EBITDA (3) NET EARNINGS
(LOSS) (GAAP MEASURE) $ 5,226 $ (18,221 ) $ 29,012 $ (37,664 ) $
(21,648 ) $ (17,452 ) $ 2,753 $ - $ - $ (14,699 ) FINANCING COSTS,
NET 7,514 7,604 7,756 8,617 31,491 7,295 7,153 - - 14,448 INCOME
TAX (BENEFIT) EXPENSE 1,604 19,839 (3,995 ) (8,472 ) 8,976 (72 )
5,792 - - 5,719 DEPRECIATION & AMORTIZATION 10,090
10,295 10,415
9,907 40,708 8,890
7,451 - -
16,341 EBITDA $ 24,434 $ 19,517 $ 43,188 $ (27,612 )
$ 59,527 $ (1,339 ) $ 23,149 $ - $ - $ 21,809 IMPAIRMENT &
OTHER DIVESTITURE CHARGES - 2,987 - 70,071 73,058 36,453 6,886 - -
43,339 RESTRUCTURING CHARGES 6,629 4,284
1,186 746
12,845 403 60
- - 463 ADJUSTED
EBITDA $ 31,063 $ 26,788 $ 44,374
$ 43,205 $ 145,430 $ 35,517
$ 30,095 $ - $ - $ 65,611
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)
Q3 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 $ 0.40 $ 0.45 $ 1.09 $
1.20
IMPAIRMENT & OTHER DIVESTITURE
CHARGES, NET OF TAX EFFECT
TBD TBD TBD TBD RESTRUCTURING CHARGES, NET OF TAX EFFECT TBD TBD
TBD TBD OTHER INCOME TAX (BENEFIT) EXPENSE TBD TBD TBD
TBD ADJUSTED DILUTED EARNINGS PER SHARE GUIDANCE $ 0.40
$ 0.45 $ 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190321005146/en/
Barb BolensVP Corporate Strategy & Investor
Relations262-293-1562
Actuant (NYSE:ATU)
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