Exhibit 99.1
Actuant Reports First Quarter Results, Increases Guidance
MILWAUKEE--(BUSINESS WIRE)--December 17, 2009--Actuant Corporation (NYSE: ATU) today announced results for its first quarter ended November 30, 2009.
Highlights
- Reported first quarter sales of $305 million, the highest quarterly amount in the past four quarters. Year-over-year first quarter core sales declined 20%, a sequential improvement from the 27% decline in the previous quarter.
- Diluted earnings per share (“EPS”) of $0.20 (excluding $3.6 million or $0.03 per diluted share in restructuring charges) were ahead of expectations due to the higher sales volume. (See attached reconciliation of earnings.)
- Generated $44 million of cash flow from operations (excluding the $37 million impact of the expiration of the accounts receivable securitization program).
- EBITDA margins were in line with expectations, including a 360 basis point sequential improvement in the Engineered Solutions segment. (See attached reconciliation of earnings.)
Robert C. Arzbaecher, Chairman and CEO of Actuant commented, “First quarter sales and earnings per share, adjusted for special items, were ahead of our expectations. Three of the four segments saw year-over-year core sales improve sequentially, while the Energy segment’s sales stabilized. Despite unfavorable segment mix and higher incentive compensation expense, consolidated margins were in line with the fourth quarter due to operating improvements, most notably within the Engineered Solutions segment. We were also pleased with the working capital management and progress on restructuring projects during the quarter. Overall, we are encouraged by the trends we are seeing in the businesses as well as the continued strong execution by Actuant’s employees across the globe.”
Consolidated Results
Consolidated sales for the first quarter declined 18% to $305 million compared to $371 million in the first quarter of fiscal 2009. Core sales (sales excluding the impact of acquisitions, divestitures and currency rate changes) declined 20%. Earnings and EPS from continuing operations in the fiscal 2010 first quarter were $11.9 million and $0.17, respectively, compared to earnings from continuing operations of $11.9 million and EPS of $0.19 in the comparable prior year quarter. Results from continuing operations for the first quarter of fiscal 2010 included pre-tax restructuring charges of $3.6 million, or $0.03 per diluted share. Fiscal 2009 first quarter results included a pre-tax non-cash asset impairment charge of $26.6 million, or $0.26 per diluted share as well as pre-tax restructuring charges of $0.7 million, or $0.01 per diluted share. Excluding these items, EPS from continuing operations was $0.20 in the first quarter of fiscal 2010 compared to $0.45 in the prior year’s quarter. (See attached reconciliation of earnings.)
Segment Results
| Industrial Segment |
(US $ in millions) |
| | Three Months Ended
November 30, |
| | 2009 | | 2008 |
| Sales | | $65.3 | | | $90.5 | |
| Operating Profit (1) | | $13.9 | | | $26.1 | |
| Operating Profit % (1) | | 21.2 | % | | 28.8 | % |
(1) Results for the three months ended November 30, 2009 and 2008 exclude restructuring charges of $0.2 million and $0.1 million, respectively.
First quarter fiscal 2010 Industrial segment sales decreased 28% to $65 million. Excluding foreign currency rate changes, Industrial segment core sales were 30% below the prior year due to lower demand across most regions and end markets. Sales increased 6% sequentially and the core sales trend improved to -30% from -35% in the fourth quarter of fiscal 2009. Operating profit and profit margins (excluding restructuring costs) declined from the prior year due to lower sales and production levels, higher incentive compensation expense and manufacturing variances associated with facility consolidations.
| Energy Segment |
(US $ in millions) |
| | |
| | Three Months Ended
November 30, |
| | 2009 | | 2008 |
| Sales | | $64.1 | | | $74.0 | |
| Operating Profit (2) | | $11.5 | | | $15.6 | |
| Operating Profit % (2) | | 18.0 | % | | 21.1 | % |
(2) Results for both three month periods exclude restructuring charges of $0.1 million.
Fiscal 2010 first quarter Energy segment sales decreased 13% to $64 million. Core sales declined 12% due primarily to lower project based revenue. Weakness in exploration related demand as well as the deferral or reduction of maintenance at certain existing oil & gas installations continued. The segment’s core sales rate of change was approximately level with the prior quarter. Operating profit margin (excluding restructuring costs) declined year-over-year reflecting unfavorable acquisition mix and lower sales volumes.
| Electrical Segment |
(US $ in millions) |
| | |
| | Three Months Ended
November 30, |
| | 2009 | | 2008 |
| Sales | | $86.6 | | | $102.9 | |
| Operating Profit (3) | | $3.4 | | | $5.9 | |
| Operating Profit % (3) | | 3.9 | % | | 5.7 | % |
(3) Results for the three months ended November 30, 2009 and 2008 exclude restructuring charges of $2.7 million and $0.1 million, respectively.
Electrical segment fiscal 2010 first quarter sales declined 16% to $87 million. Core sales decreased 18% from the prior year reflecting weakness across the segment’s end markets, most notably in the utility and commercial construction markets as well as in the European DIY market. First quarter operating profit margin (excluding restructuring costs) declined to 3.9% reflecting lower volumes and inefficiencies associated with the significant restructuring programs underway in the segment.
| Engineered Solutions Segment |
(US $ in millions) |
| | |
| | Three Months Ended
November 30, |
| | 2009 | | 2008 |
| Sales | | $89.2 | | | $103.4 | |
| Operating Profit (4) | | $5.5 | | | $7.9 | |
| Operating Profit % (4) | | 6.1 | % | | 7.6 | % |
(4) Results for the three months ended November 30, 2009 exclude restructuring charges of $0.4 million. Results for the three months ended November 30, 2008 exclude a $26.6 million pre-tax non-cash asset impairment charge and $0.5 million of restructuring charges.
First quarter fiscal 2010 Engineered Solutions segment sales declined 14% reflecting reduced demand from global truck and specialty vehicle end markets. However, the core revenue year-over-year rate of change improved sequentially from -37% in the fourth quarter of fiscal 2009 to -18% in the first quarter due to higher sales to the automotive and RV markets as well as reduced destocking at major global truck OEM’s. First quarter operating margins (excluding restructuring) continue to be negatively impacted by the lower sales; however, they improved 360 basis points sequentially due to a lower cost structure, improved product mix and higher production levels.
Corporate
Corporate expenses for the first quarter of fiscal 2010, excluding restructuring charges of approximately $0.2 million, were $5.5 million compared to $3.2 million in the comparable prior year quarter. The prior year amount included $2.3 million of income related to the reduced valuation of the Company’s long term incentive plan (LTIP).
Financial Position
Net debt at November 30, 2009 was $391 million (total debt of $405 million less $14 million of cash). Net debt declined $3 million from the beginning of the quarter as robust free cash flow more than offset the $37 million increase associated with the expiration of the Company’s accounts receivable securitization program during the quarter. As of November 30, 2009, the Company had over $350 million of unused revolver capacity.
Outlook
Arzbaecher continued, “From a global economic standpoint, we believe the worst is behind us. We’ve experienced stabilization in most end markets and sequential improvement in certain early cycle businesses and those where inventory destocking was meaningful. While visibility in our Energy segment remains challenging, it appears to have stabilized. From a cost reduction and business simplification standpoint, our activities are on track and we are confident we will realize the $35 million in committed annual cost savings once these projects have been completed.
Given positive first quarter results and better visibility, we have narrowed our fiscal 2010 revenue guidance to $1.20-$1.25 billion. We anticipate diluted EPS for the full year, excluding restructuring costs, to be in the $0.82-$0.97 range. Our full year free cash flow forecast has also been increased to $100-$110 million, which would again result in free cash flow conversion in excess of 100%. We continue to pursue accretive acquisition opportunities which, when executed, will be incremental to this guidance.
We expect second quarter sales to be in the $275-$295 million range, sequentially lower than the first quarter due to normal seasonality. However, EPS is expected to improve from $0.11 in the second quarter of fiscal 2009 (excluding restructuring charges) to a range of $0.12-$0.17 (excluding restructuring charges). Following the anniversary of the economic slowdown in our fiscal 2009 second quarter, we are optimistic that our quarterly earnings will improve meaningfully in the second half of fiscal 2010.”
Conference Call Information
An investor conference call is scheduled for 10am CT today, December 17, 2009. Webcast information and conference call materials will be made available on the Actuant company website (www.actuant.com) prior to the start of the call.
Safe Harbor Statement
Certain of the above comments represent forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. Management cautions that these statements are based on current estimates of future performance and are highly dependent upon a variety of factors, which could cause actual results to differ from these estimates. Actuant’s results are also subject to general economic conditions, variation in demand from customers, the impact of geopolitical activity on the economy, continued market acceptance of the Company’s new product introductions, the successful integration of acquisitions, restructuring, operating margin risk due to competitive pricing and operating efficiencies, supply chain risk, material and labor cost increases, foreign currency fluctuations and interest rate risk. See the Company’s Form 10-K filed with the Securities and Exchange Commission for further information regarding risk factors. Actuant disclaims any obligation to publicly update or revise any forward-looking statements as a result of new information, future events or any other reason.
About Actuant Corporation
Actuant Corporation is a diversified industrial company with operations in more than 30 countries. The Actuant businesses are leaders in a broad array of niche markets including branded hydraulic and electrical tools and supplies; specialized products and services for energy related industries and highly engineered position and motion control systems. The Company was founded in 1910 and is headquartered in Butler, 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) |
| | | | | | | |
| | | | November 30, | | August 31, |
| | | | 2009 | | 2009 |
| | | | | | |
| ASSETS | | | | | |
| Current assets | | | | |
| Cash and cash equivalents | | $ 13,822 | | | $ 11,385 | |
| Accounts receivable, net | | 205,572 | | | 155,520 | |
| Inventories, net | | 167,963 | | | 160,656 | |
| Deferred income taxes | | 20,800 | | | 20,855 | |
| Other current assets | | 15,853 | | | 15,246 | |
| | Total current assets | | 424,010 | | | 363,662 | |
| | | | | | |
| Property, plant and equipment, net | | 127,129 | | | 129,118 | |
| Goodwill | | 719,415 | | | 711,522 | |
| Other intangible assets, net | | 346,215 | | | 350,249 | |
| Other long-term assets | | 12,356 | | | 13,880 | |
| | | | | | |
| | Total assets | | $ 1,629,125 | | | $ 1,568,431 | |
| | | | | | |
| | | | | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | |
| Current liabilities | | | | |
| Short-term borrowings | | $ 1,697 | | | $ 4,964 | |
| Trade accounts payable | | 122,587 | | | 108,333 | |
| Accrued compensation and benefits | | 30,830 | | | 30,079 | |
| Income taxes payable | | 28,601 | | | 20,578 | |
| Other current liabilities | | 75,942 | | | 71,140 | |
| | Total current liabilities | | 259,657 | | | 235,094 | |
| | | | | | |
| Long-term debt, less current maturities | | 402,753 | | | 400,135 | |
| Deferred income taxes | | 118,367 | | | 117,335 | |
| Pension and postretirement benefit accruals | | 38,608 | | | 37,662 | |
| Other long-term liabilities | | 32,113 | | | 30,835 | |
| | | | | | |
| Shareholders' equity | | | | |
| Capital stock | | 13,570 | | | 13,543 | |
| Additional paid-in capital | | (184,066 | ) | | (188,644 | ) |
| Accumulated other comprehensive loss | | (10,796 | ) | | (24,599 | ) |
| Stock held in trust | | (1,827 | ) | | (1,766 | ) |
| Deferred compensation liability | | 1,827 | | | 1,766 | |
| Retained earnings | | 958,919 | | | 947,070 | |
| | Total shareholders' equity | | 777,627 | | | 747,370 | |
| | | | | | |
| Total liabilities and shareholders' equity | | $ 1,629,125 | | | $ 1,568,431 | |
| Actuant Corporation |
| Condensed Consolidated Statements of Earnings |
| (Dollars in thousands except per share amounts) |
| (Unaudited) |
| | | | |
| | | | |
| | Three Months Ended |
| | November 30, | | November 30, |
| | 2009 | | 2008 |
| | | | |
| Net sales | | $ 305,193 | | $ 370,789 | |
| Cost of products sold | | 198,571 | | 240,564 | |
| Gross profit | | 106,622 | | 130,225 | |
| | | | |
| Selling, administrative and engineering expenses | | 72,496 | | 73,676 | |
| Restructuring charges | | 3,574 | | 674 | |
| Impairment charges | | - | | 26,553 | |
| Amortization of intangible assets | | 5,457 | | 4,231 | |
| Operating profit | | 25,095 | | 25,091 | |
| | | | |
| Financing costs, net | | 8,538 | | 12,235 | |
| Other (income) expense, net | | 304 | | (539 | ) |
| Earnings from continuing operations before income | | | | |
| tax expense | | 16,253 | | 13,395 | |
| | | | |
| Income tax expense | | 4,399 | | 1,497 | |
| | | | |
| Earnings from continuing operations | | 11,854 | | 11,898 | |
| | | | |
| Loss from discontinued operations, net of income taxes | | - | | (300 | ) |
| | | | |
| Net earnings | | $ 11,854 | | $ 11,598 | |
| | | | |
| Earnings from continuing operations per share | | | | |
| Basic | | $ 0.18 | | $ 0.21 | |
| Diluted | | 0.17 | | 0.19 | |
| | | | |
| Earnings per share | | | | |
| Basic | | $ 0.18 | | $ 0.21 | |
| Diluted | | 0.17 | | 0.19 | |
| | | | |
| Weighted average common shares outstanding | | | | |
| Basic | | 67,542 | | 56,022 | |
| Diluted | | 74,012 | | 64,395 | |
| Actuant Corporation |
| Condensed Consolidated Statements of Cash Flows |
| (In thousands) |
| (Unaudited) |
| | | | |
| | | | |
| | Three Months Ended |
| | November 30, | | November 30, |
| | 2009 | | 2008 |
| | | | |
| Operating Activities | | | | |
| Net earnings | | $ 11,854 | | | $ 11,598 | |
Adjustments to reconcile net earnings to net cash provided
by operating activities: | | | | |
| Depreciation and amortization | | 12,187 | | | 12,747 | |
| Stock-based compensation expense | | 1,943 | | | 1,537 | |
| Provision (benefit) for deferred income taxes | | 256 | | | (10,360 | ) |
| Impairment charges | | - | | | 26,552 | |
| Amortization of debt discount and debt issuance costs | | 962 | | | 880 | |
| Other | | 231 | | | (817 | ) |
Changes in operating assets and liabilities, excluding
the effects of the business acquisitions | | | | |
| Accounts receivable | | (8,032 | ) | | 4,974 | |
| Accounts receivable securitization program | | - | | | 483 | |
| Expiration of accounts receivable securitization program | | (37,106 | ) | | - | |
| Inventories | | (4,400 | ) | | (5,332 | ) |
| Prepaid expenses and other assets | | 30 | | | (38 | ) |
| Trade accounts payable | | 12,439 | | | (19,683 | ) |
| Income taxes payable | | 9,439 | | | 1,895 | |
| Other accrued liabilities | | 6,976 | | | (11,918 | ) |
| Net cash provided by operating activities | | 6,779 | | | 12,518 | |
| | | | |
| Investing Activities | | | | |
| Proceeds from sale of property, plant and equipment | | 275 | | | 94 | |
| Capital expenditures | | (3,178 | ) | | (7,634 | ) |
| Business acquisitions, net of cash acquired | | - | | | (231,768 | ) |
| Net cash used in investing activities | | (2,903 | ) | | (239,308 | ) |
| | | | |
| Financing Activities | | | | |
| Net borrowings on revolving credit facilities and | | | | |
| short-term borrowings | | 22,382 | | | 187,995 | |
| Principal repayments on term loans and other debt | | - | | | (155,000 | ) |
| Proceeds from term loan | | - | | | 115,000 | |
| Open market repurchases of 2% Convertible Notes | | (22,894 | ) | | - | |
| Debt issuance costs | | - | | | (5,333 | ) |
| Stock option exercises, related tax benefits and other | | 487 | | | 2,479 | |
| Cash dividend | | (2,702 | ) | | (2,251 | ) |
| Net cash (used in) provided by financing activities | | (2,727 | ) | | 142,890 | |
| | | | |
| Effect of exchange rate changes on cash | | 1,288 | | | (8,431 | ) |
| Net increase (decrease) in cash and cash equivalents | | 2,437 | | | (92,331 | ) |
| Cash and cash equivalents - beginning of period | | 11,385 | | | 122,549 | |
| Cash and cash equivalents - end of period | | $ 13,822 | | | $ 30,218 | |
| ACTUANT CORPORATION |
| SUPPLEMENTAL UNAUDITED DATA FROM CONTINUING OPERATIONS |
| | (Dollars in thousands) |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | FISCAL 2009 | | FISCAL 2010 |
| | | | Q1 | | Q2 | | Q3 | | Q4 | | TOTAL | | Q1 | | Q2 | | Q3 | | Q4 | | TOTAL |
| SALES | | | | | | | | | | | | | | | | | | | | |
| INDUSTRIAL SEGMENT | | $ 90,524 | | | $ 71,682 | | | $ 62,843 | | | $ 61,802 | | | $ 286,851 | | | $ 65,308 | | | | | | | | | $ 65,308 | |
| ENERGY SEGMENT | | 73,982 | | | 59,526 | | | 62,251 | | | 63,731 | | | 259,490 | | | 64,065 | | | | | | | | | 64,065 | |
| ELECTRICAL SEGMENT | | 102,898 | | | 89,719 | | | 83,752 | | | 87,792 | | | 364,161 | | | 86,618 | | | | | | | | | 86,618 | |
| ENGINEERED SOLUTIONS SEGMENT | | 103,385 | | | 72,872 | | | 76,308 | | | 76,731 | | | 329,296 | | | 89,202 | | | | | | | | | 89,202 | |
| | TOTAL | | $ 370,789 | | | $ 293,799 | | | $ 285,154 | | | $ 290,056 | | | $ 1,239,798 | | | $ 305,193 | | | | | | | | | $ 305,193 | |
| | | | | | | | | | | | | | | | | | | | | | |
| % SALES GROWTH | | | | | | | | | | | | | | | | | | | | |
| INDUSTRIAL SEGMENT | | 4 | % | | -18 | % | | -38 | % | | -37 | % | | -23 | % | | -28 | % | | | | | | | | -28 | % |
| ENERGY SEGMENT | | 49 | % | | 37 | % | | 7 | % | | 5 | % | | 22 | % | | -13 | % | | | | | | | | -13 | % |
| ELECTRICAL SEGMENT | | -21 | % | | -29 | % | | -34 | % | | -22 | % | | -27 | % | | -16 | % | | | | | | | | -16 | % |
| ENGINEERED SOLUTIONS SEGMENT | | -23 | % | | -44 | % | | -47 | % | | -37 | % | | -38 | % | | -14 | % | | | | | | | | -14 | % |
| | TOTAL | | -8 | % | | -24 | % | | -34 | % | | -26 | % | | -23 | % | | -18 | % | | | | | | | | -18 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| OPERATING PROFIT (LOSS) | | | | | | | | | | | | | | | | | | | | |
| INDUSTRIAL SEGMENT | | $ 26,107 | | | $ 15,972 | | | $ 15,597 | | | $ 13,692 | | | $ 71,368 | | | $ 13,854 | | | | | | | | | $ 13,854 | |
| ENERGY SEGMENT | | 15,647 | | | 5,895 | | | 11,772 | | | 11,801 | | | 45,115 | | | 11,502 | | | | | | | | | 11,502 | |
| ELECTRICAL SEGMENT | | 5,896 | | | 2,404 | | | 3,119 | | | 4,213 | | | 15,632 | | | 3,357 | | | | | | | | | 3,357 | |
| ENGINEERED SOLUTIONS SEGMENT | | 7,865 | | | (2,735 | ) | | 991 | | | 342 | | | 6,463 | | | 5,481 | | | | | | | | | 5,481 | |
| CORPORATE / GENERAL | | (3,197 | ) | | (5,013 | ) | | (4,815 | ) | | (5,042 | ) | | (18,066 | ) | | (5,471 | ) | | | | | | | | (5,471 | ) |
| | TOTAL - EXCLUDING IMPAIRMENT / RESTRUCTURING CHARGES | | $ 52,318 | | | $ 16,523 | | | $ 26,664 | | | $ 25,006 | | | $ 120,512 | | | $ 28,723 | | | | | | | | | $ 28,723 | |
| IMPAIRMENT CHARGES | | (26,553 | ) | | - | | | (4,768 | ) | | - | | | (31,321 | ) | | - | | | | | | | | | - | |
| RESTRUCTURING CHARGES (1) | | (674 | ) | | (3,039 | ) | | (10,749 | ) | | (9,277 | ) | | (23,739 | ) | | (3,628 | ) | | | | | | | | (3,628 | ) |
| | TOTAL | | $ 25,091 | | | $ 13,484 | | | $ 11,147 | | | $ 15,729 | | | $ 65,452 | | | $ 25,095 | | | | | | | | | $ 25,095 | |
| | | | | | | | | | | | | | | | | | | | | | |
| OPERATING PROFIT % | | | | | | | | | | | | | | | | | | | | |
| INDUSTRIAL SEGMENT | | 28.8 | % | | 22.3 | % | | 24.8 | % | | 22.2 | % | | 24.9 | % | | 21.2 | % | | | | | | | | 21.2 | % |
| ENERGY SEGMENT | | 21.1 | % | | 9.9 | % | | 18.9 | % | | 18.5 | % | | 17.4 | % | | 18.0 | % | | | | | | | | 18.0 | % |
| ELECTRICAL SEGMENT | | 5.7 | % | | 2.7 | % | | 3.7 | % | | 4.8 | % | | 4.3 | % | | 3.9 | % | | | | | | | | 3.9 | % |
| ENGINEERED SOLUTIONS SEGMENT | | 7.6 | % | | -3.8 | % | | 1.3 | % | | 0.4 | % | | 2.0 | % | | 6.1 | % | | | | | | | | 6.1 | % |
| | TOTAL (INCLUDING CORPORATE) - EXCLUDING IMPAIRMENT / RESTRUCTURING CHARGES | 14.1 | % | | 5.6 | % | | 9.4 | % | | 8.6 | % | | 9.7 | % | | 9.4 | % | | | | | | | | 9.4 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| EBITDA | | | | | | | | | | | | | | | | | | | | |
| INDUSTRIAL SEGMENT | | $ 27,139 | | | $ 17,058 | | | $ 18,208 | | | $ 15,322 | | | $ 77,727 | | | $ 15,633 | | | | | | | | | $ 15,633 | |
| ENERGY SEGMENT | | 21,671 | | | 11,492 | | | 15,080 | | | 16,235 | | | 64,478 | | | 15,493 | | | | | | | | | 15,493 | |
| ELECTRICAL SEGMENT | | 7,103 | | | 3,440 | | | 5,307 | | | 6,388 | | | 22,238 | | | 5,270 | | | | | | | | | 5,270 | |
| ENGINEERED SOLUTIONS SEGMENT | | 12,417 | | | 1,274 | | | 3,879 | | | 4,953 | | | 22,524 | | | 8,981 | | | | | | | | | 8,981 | |
| CORPORATE / GENERAL | | (3,110 | ) | | (4,058 | ) | | (4,237 | ) | | (4,196 | ) | | (15,601 | ) | | (4,771 | ) | | | | | | | | (4,771 | ) |
| | TOTAL - EXCLUDING IMPAIRMENT / RESTRUCTURING CHARGES | | $ 65,220 | | | $ 29,206 | | | $ 38,237 | | | $ 38,702 | | | $ 171,366 | | | $ 40,606 | | | | | | | | | $ 40,606 | |
| IMPAIRMENT CHARGES | | (26,553 | ) | | - | | | (4,768 | ) | | - | | | (31,321 | ) | | - | | | | | | | | | - | |
| RESTRUCTURING CHARGES (1) | | (674 | ) | | (3,039 | ) | | (10,749 | ) | | (9,277 | ) | | (23,739 | ) | | (3,628 | ) | | | | | | | | (3,628 | ) |
| | TOTAL | | $ 37,993 | | | $ 26,167 | | | $ 22,720 | | | $ 29,425 | | | $ 116,306 | | | $ 36,978 | | | | | | | | | $ 36,978 | |
| | | | | | | | | | | | | | | | | | | | | | |
| EBITDA % | | | | | | | | | | | | | | | | | | | | |
| INDUSTRIAL SEGMENT | | 30.0 | % | | 23.8 | % | | 29.0 | % | | 24.8 | % | | 27.1 | % | | 23.9 | % | | | | | | | | 23.9 | % |
| ENERGY SEGMENT | | 29.3 | % | | 19.3 | % | | 24.2 | % | | 25.5 | % | | 24.8 | % | | 24.2 | % | | | | | | | | 24.2 | % |
| ELECTRICAL SEGMENT | | 6.9 | % | | 3.8 | % | | 6.3 | % | | 7.3 | % | | 6.1 | % | | 6.1 | % | | | | | | | | 6.1 | % |
| ENGINEERED SOLUTIONS SEGMENT | | 12.0 | % | | 1.7 | % | | 5.1 | % | | 6.5 | % | | 6.8 | % | | 10.1 | % | | | | | | | | 10.1 | % |
| | TOTAL (INCLUDING CORPORATE) - EXCLUDING IMPAIRMENT / RESTRUCTURING CHARGES | 17.6 | % | | 9.9 | % | | 13.4 | % | | 13.3 | % | | 13.8 | % | | 13.3 | % | | | | | | | | 13.3 | % |
Note: The total of the individual quarters may not equal the annual total due to rounding.
(1) The restructuring charge for the first quarter of fiscal 2010 includes a $54 charge included in cost of products sold on the Condensed Consolidated Statements of Earnings. The restructuring charges for the third and fourth quarters of fiscal 2009 and total fiscal 2009 include $276, $1,037 and $1,313 of charges included in cost of products sold on the Condensed Consolidated Statements of Earnings.
| ACTUANT CORPORATION |
| Reconciliation of GAAP measures to non-GAAP measures |
| | (Dollars in thousands, except for per share amounts) |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | FISCAL 2009 | | FISCAL 2010 |
| | | | Q1 | | Q2 | | Q3 | | Q4 | | TOTAL | | Q1 | | Q2 | | Q3 | | Q4 | | TOTAL |
| | | | | | | | | | | | | | | | | | | | | | |
| NET EARNINGS (LOSS), EXCLUDING RESTRUCTURING CHARGES, | | | | | | | | | | | | | | | | | | | | |
IMPAIRMENT CHARGES, DEBT EXTINGUISHMENT CHARGES, AND DISCONTINUED OPERATIONS (1) | | | | | | | | | | | | | | | | | | | | |
| NET EARNINGS (LOSS) (GAAP MEASURE) | | $ 11,598 | | | $ 3,244 | | | $ (17,635 | ) | | $ 16,515 | | | $ 13,723 | | | $ 11,854 | | | | | | | | $ 11,854 |
| | RESTRUCTURING CHARGES, NET OF TAX BENEFIT | | 481 | | | 2,028 | | | 7,173 | | | 6,223 | | | 15,905 | | | 2,601 | | | | | | | | 2,601 |
| | IMPAIRMENT CHARGES, NET OF TAX BENEFIT | | 16,463 | | | - | | | 2,981 | | | - | | | 19,444 | | | - | | | | | | | | - |
| | DEBT EXTINGUISHMENT CHARGES, NET OF TAX BENEFIT | | (236 | ) | | - | | | - | | | 1,303 | | | 1,067 | | | - | | | | | | | | - |
| | DISCONTINUED OPERATIONS, NET OF TAX BENEFIT | | 300 | | | 985 | | | 20,846 | | | (12,003 | ) | | 10,128 | | | - | | | | | | | | - |
| TOTAL (NON-GAAP MEASURE) | | $ 28,606 | | | $ 6,257 | | | $ 13,365 | | | $ 12,038 | | | $ 60,267 | | | $ 14,455 | | | | | | | | $ 14,455 |
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| | | | | | | | | | | | | | | | | | | | | | |
| DILUTED EARNINGS (LOSS) PER SHARE, EXCLUDING RESTRUCTURING CHARGES, | | | | | | | | | | | | | | | | | | | | |
IMPAIRMENT CHARGES, DEBT EXTINGUISHMENT CHARGES, AND DISCONTINUED OPERATIONS (1) | | | | | | | | | | | | | | | | | | | | |
| NET EARNINGS (LOSS) (GAAP MEASURE) | | $ 0.19 | | | $ 0.06 | | | $ (0.27 | ) | | $ 0.24 | | | $ 0.24 | | | $ 0.17 | | | | | | | | $ 0.17 |
| | RESTRUCTURING CHARGES, NET OF TAX BENEFIT | | 0.01 | | | 0.03 | | | 0.11 | | | 0.09 | | | 0.24 | | | 0.03 | | | | | | | | 0.03 |
| | IMPAIRMENT CHARGES, NET OF TAX BENEFIT | | 0.26 | | | - | | | 0.05 | | | - | | | 0.29 | | | - | | | | | | | | - |
| | DEBT EXTINGUISHMENT CHARGES, NET OF TAX BENEFIT | | (0.00 | ) | | - | | | - | | | 0.02 | | | 0.02 | | | - | | | | | | | | - |
| | DISCONTINUED OPERATIONS, NET OF TAX BENEFIT | | - | | | 0.02 | | | 0.33 | | | (0.17 | ) | | 0.15 | | | - | | | | | | | | - |
| TOTAL (NON-GAAP MEASURE) | | $ 0.45 | | | $ 0.11 | | | $ 0.22 | | | $ 0.18 | | | $ 0.95 | | | $ 0.20 | | | | | | | | $ 0.20 |
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| EBITDA (2) | | | | | | | | | | | | | | | | | | | | |
| NET EARNINGS (LOSS) (GAAP MEASURE) | | $ 11,598 | | | $ 3,244 | | | $ (17,635 | ) | | $ 16,515 | | | $ 13,723 | | | $ 11,854 | | | | | | | | $ 11,854 |
| | FINANCING COSTS, NET | | 12,235 | | | 9,904 | | | 9,025 | | | 10,685 | | | 41,849 | | | 8,538 | | | | | | | | 8,538 |
| | INCOME TAX EXPENSE | | 1,497 | | | (604 | ) | | (1,907 | ) | | 540 | | | (474 | ) | | 4,399 | | | | | | | | 4,399 |
| | DEPRECIATION & AMORTIZATION | | 12,363 | | | 12,638 | | | 12,391 | | | 13,688 | | | 51,080 | | | 12,187 | | | | | | | | 12,187 |
| | DISCONTINUED OPERATIONS, NET OF TAX BENEFIT | | 300 | | | 985 | | | 20,846 | | | (12,003 | ) | | 10,128 | | | - | | | | | | | | - |
| | EBITDA (NON-GAAP MEASURE) | | $ 37,993 | | | $ 26,167 | | | $ 22,720 | | | $ 29,425 | | | $ 116,306 | | | $ 36,978 | | | | | | | | $ 36,978 |
| | IMPAIRMENT CHARGES | | 26,553 | | | - | | | 4,768 | | | - | | | 31,321 | | | - | | | | | | | | - |
| | RESTRUCTURING CHARGES | | 674 | | | 3,039 | | | 10,749 | | | 9,277 | | | 23,739 | | | 3,628 | | | | | | | | 3,628 |
| | EBITDA (NON-GAAP MEASURE) - EXCLUDING DISCONTINUED OPERATIONS, | | | | | | | | | | | | | | | | | | | | |
| | IMPAIRMENT, AND RESTRUCTURING CHARGES | | $ 65,220 | | | $ 29,206 | | | $ 38,237 | | | $ 38,702 | | | $ 171,366 | | | $ 40,606 | | | | | | | | $ 40,606 |
(1) Net earnings and diluted earnings per share excluding restructuring charges, impairment charges, debt extinguishment charges and discontinued operations represent net earnings and diluted earnings 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 or diluted earnings per share 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.
(2) EBITDA represents net earnings before financing costs, net, income tax expense, depreciation & amortization, and discontinued operations. EBITDA is not a calculation based upon generally accepted accounting principles (GAAP). The amounts included in the EBITDA calculation, however, are derived from amounts included in the Condensed Consolidated Statements of Earnings data. EBITDA should not be considered as an alternative to net earnings or operating profit as an indicator of the Company's operating performance, or as an alternative to operating cash flows as a measure of liquidity. Actuant has presented EBITDA because it regularly reviews this as a measure of the company's ability to incur and service debt. In addition, EBITDA is used by many of our investors and lenders, and is presented as a convenience to them. However, 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. The total of the individual quarters may not equal the annual total due to rounding.
CONTACT:
Actuant Corporation
Karen Bauer
Director, Investor Relations
262-373-7462
