Exhibit 99.1
Actuant Reports Fourth Quarter Results; Increases Fiscal 2011 Guidance
MILWAUKEE--(BUSINESS WIRE)--September 29, 2010--Actuant Corporation (NYSE: ATU) today announced results for its fourth quarter ended August 31, 2010.
Highlights
- 82% year-over-year increase in diluted earnings per share from continuing operations (“EPS”) to $0.31 (excluding special items - see attached reconciliation of earnings.)
- Core revenue growth (total sales less the impact of acquisitions, divestitures and foreign currency rate changes) of 18%. Significant year-over-year core sales growth in Industrial and Engineered Solutions segments of 33% and 37%, respectively.
- Operating profit margin expansion of 360 basis points, excluding restructuring costs.
- Robust cash flow from operating activities totaling $52 million.
- Completed the Selantic acquisition, strengthening the Cortland engineered cable and rope business.
- Announced intention to divest the European Electrical business to focus on platforms that are central to strategic growth initiatives.
Robert C. Arzbaecher, Chairman and CEO of Actuant commented, “Actuant had a strong fourth quarter and finished the year on a positive note. In particular, we were pleased to see double-digit core sales growth for the second straight quarter and excellent cash flow. Our fourth quarter core revenue growth of 18% exceeded the high-end of our expectations with strong growth in both Industrial and Engineered Solutions. The increased volumes, along with continued margin improvement, drove the robust EPS growth. Free cash flow also exceeded our forecast due to higher earnings and strong working capital management. I am tremendously proud of what the Actuant team has achieved this year, especially our second half results, and am equally enthusiastic about our prospects for 2011.”
Consolidated Results
In September, the Company announced its intention to divest its European Electrical business. The results of operations for this business, as well as the previously announced non-cash asset impairment charge, are reported in discontinued operations in the accompanying Condensed Consolidated Statement of Operations. Operating results for the fourth quarter and all prior periods have been reclassified for comparability.
Consolidated sales for the fourth quarter were $310 million, 19% higher than the comparable prior year quarter. Core sales increased 18% with acquisitions contributing an additional 4%, offset by the stronger U.S. dollar (-3%). The fiscal 2010 fourth quarter net loss was $16.8 million, or ($0.22) per share compared to net earnings and EPS of $16.5 million and $0.24, respectively, in the comparable prior year quarter. The current year quarter included a $37.7 million ($0.51 per diluted share) loss from discontinued operations, primarily the result of the $36.1 million non-cash asset impairment charge related to the planned divestiture of the European Electrical business. Prior year fourth quarter net earnings included a $12.6 million ($0.18 per diluted share) net gain from discontinued operations, primarily reflecting the divestiture of Acme Aerospace. Earnings and EPS from continuing operations in the fiscal 2010 fourth quarter were $20.9 million and $0.29, respectively, compared to $3.9 million and $0.06 in the comparable prior year quarter. Results for the fourth quarter of fiscal 2010 included pre-tax restructuring costs (including those reported in cost of products sold) of $2.4 million, or $0.02 per diluted share. Fiscal 2009 fourth quarter continuing operations results included pre-tax restructuring costs of $9.1 million, ($0.09 per diluted share) as well as a $2.1 million ($0.02 per diluted share) pre-tax debt extinguishment charge. Excluding these items, EPS from continuing operations was $0.31 in the fourth quarter of fiscal 2010, 82% higher than the $0.17 in the prior year. (See attached reconciliation of earnings.)
Sales for the year ended August 31, 2010 were $1,161 million, 4% higher than the $1,118 million in the comparable prior year period. Excluding the impact of acquisitions (+1%) and the weaker US dollar (+1%), full year core sales increased 2%. Net earnings for the year ended August 31, 2010 were $24.0 million or $0.35 per diluted share, compared to $13.7 million, or $0.24 per diluted share in the comparable prior year period. Earnings and EPS from continuing operations for the year ended August 31, 2010 were $70.4 million, or $0.97 per diluted share, compared to $26.0 million, or $0.43 per diluted share for the comparable prior year period. Full year fiscal 2010 results include pre-tax restructuring costs of $16.7 million, or $0.16 per diluted share, as well as income tax adjustments of $0.6 million or $0.01 per diluted share. Results from continuing operations for the year ended August 31, 2009 included $31.3 million ($0.29 per diluted share) of pre-tax asset impairment charges, $20.8 million ($0.20 per diluted share) of pre-tax restructuring costs and a $1.7 million ($0.02 per diluted share) pre-tax debt extinguishment charge. Excluding these items, current year diluted EPS from continuing operations was $1.08, a 15% improvement from $0.94 in the comparable prior year period. (See attached reconciliation of earnings.)
Segment Results
Industrial Segment | | | | |
(US $ in millions) | | | | |
| | Three Months Ended
August 31, | | Twelve Months Ended
August 31, |
| | 2010 | | 2009 | | 2010 | | 2009 |
| Sales | | $85.7 | | $61.8 | | $300.0 | | $286.9 |
| Operating Profit | | $21.4 | | $11.3 | | $66.3 | | $67.5 |
| Adjusted Operating Profit(1) | | $21.8 | | $13.7 | | $72.2 | | $71.4 |
| Adjusted Operating Profit %(1) | | 25.4% | | 22.2% | | 24.1% | | 24.9% |
(1) Excludes restructuring costs of $0.4 million and $5.8 million for the three and twelve months ended August 31, 2010 and $2.4 million and $3.9 million for the three and twelve months ended August 31, 2009, respectively.
Fourth quarter fiscal 2010 Industrial segment sales were $86 million, 39% higher than the prior year. Excluding foreign currency rate changes (-3%), and the benefit of the Integrated Solutions (IS) acquisitions (+9%), Industrial segment core sales increased 33% due to robust demand across most markets. This 33% year-over-year core sales growth represents sequential improvement from the 20% increase in the third quarter of fiscal 2010. Operating profit margins (excluding restructuring costs) improved 320 basis points from the prior year despite unfavorable mix related to the recent IS acquisitions, due to the higher volumes as well as the benefit of restructuring actions.
Energy Segment | | | | |
(US $ in millions) | | | | |
| | Three Months Ended
August 31, | | Twelve Months Ended
August 31, |
| | 2010 | | 2009 | | 2010 | | 2009 |
| Sales | | $61.2 | | $63.7 | | $235.7 | | $259.5 |
| Operating Profit | | $8.2 | | $11.1 | | $30.7 | | $44.1 |
| Adjusted Operating Profit(2) | | $8.3 | | $11.8 | | $32.7 | | $45.1 |
| Adjusted Operating Profit %(2) | | 13.5% | | 18.5% | | 13.9% | | 17.4% |
(2) Excludes restructuring costs of $0.1 million and $2.0 million for the three and twelve months ended August 31, 2010 and $0.7 million and $1.0 million for the three and twelve months ended August 31, 2009, respectively.
Fiscal 2010 fourth quarter year-over-year Energy segment sales decreased 4% to $61 million. Excluding the 4% unfavorable FX impact and 7% contribution from acquisitions, core sales declined 7% due primarily to continued weakness in mature market refinery maintenance activity, seismic exploration and large capital project based revenue. However, the core sales rate of change improved from -11% in the third quarter, and increased 8% sequentially, as emerging markets, alternative energy and adjacent markets generated increased activity. Fourth quarter operating profit margin (excluding restructuring costs) was 13.5%, a 60 basis point sequential improvement; however, it was below the prior year due to the unfavorable mix of lower product sales in relation to service and rental revenue.
Electrical Segment | | | | |
(US $ in millions) | | | | |
| | Three Months Ended
August 31, | | Twelve Months Ended
August 31, |
| | 2010 | | 2009 | | 2010 | | 2009 |
| Sales | | $62.7 | | $58.8 | | $233.7 | | $242.0 |
| Operating Profit (Loss) | | $6.5 | | $0.8 | | $19.9 | | $3.3 |
| Adjusted Operating Profit(3) | | $7.4 | | $3.6 | | $24.4 | | $15.0 |
| Adjusted Operating Profit %(3) | | 11.9% | | 6.1% | | 10.4% | | 6.2% |
(3) Excludes restructuring costs of $0.9 million and $4.5 million for the three and twelve months ended August 31, 2010, respectively. Excludes restructuring costs of $2.8 million and $6.9 million for the three and twelve months ended August 31, 2009, respectively. The twelve months ended August 31, 2009 also excludes $4.8 million of impairment charges.
Electrical segment fiscal 2010 fourth quarter sales were $63 million, 7% higher than the comparable prior year quarter due to continued improvement in the North American marine and industrial markets. Electric utility and commercial construction market activity appears to have stabilized, albeit at low levels. Fourth quarter operating profit margin (excluding restructuring costs) increased 580 basis points from the prior year reflecting higher volumes and restructuring driven cost savings.
Engineered Solutions Segment | | | | |
(US $ in millions) | | | | |
| | Three Months Ended
August 31, | | Twelve Months Ended
August 31, |
| | 2010 | | 2009 | | 2010 | | 2009 |
| Sales | | $100.8 | | $76.7 | | $391.1 | | $329.3 |
| Operating Profit (Loss) | | $9.5 | | $(2.7) | | $31.7 | | $(28.4) |
| Adjusted Operating Profit(4) | | $10.2 | | $0.3 | | $35.3 | | $6.5 |
| Adjusted Operating Profit %(4) | | 10.2% | | 0.4% | | 9.0% | | 2.0% |
(4) Excludes restructuring costs of $0.8 million and $3.6 million for the three and twelve months ended August 31, 2010 and $3.0 million and $8.3 million for the three and twelve months ended August 31, 2009. The twelve months ended August 31, 2009 also excludes $26.6 million of impairment charges.
Fourth quarter fiscal 2010 Engineered Solutions segment sales increased 31% from the prior year to $101 million. Excluding the impact of acquisitions (+2%) and the stronger U.S. dollar (-8%), year-over-year core sales growth was 37%. Fourth quarter sales benefited from continued strong demand from the automotive and European truck markets and significantly higher shipments to agriculture, construction equipment and North America truck customers. Fourth quarter operating margins (excluding restructuring costs) increased 980 basis points compared to the prior year due to restructuring driven cost reductions and substantially improved volumes.
Corporate
Corporate expenses for the fourth quarter of fiscal 2010, excluding restructuring charges of $0.3 million, were $7.7 million, an increase of approximately $2.7 million from last year. The increase is due to higher 401(k), salary and incentive compensation costs compared to last year’s recessionary levels.
Financial Position
Net debt at August 31, 2010 was $327 million (total debt of $367 million less $40 million of cash). The Company deployed approximately $17 million during the quarter to fund the Selantic acquisition and reduced net debt by approximately $32 million as a result of strong operating cash flow. This was driven by solid earnings and effective working capital management. Notably, net primary working capital (accounts receivable, inventory and accounts payable) contributed $18 million to cash flow from operating activities in the quarter, despite an 18% increase in core sales. At fiscal year-end, the Company’s leverage (Net Debt/EBITDA) was below pre-recession levels and the entire $400 million revolver was available for borrowing to fund growth initiatives.
Outlook
Arzbaecher continued, “As we begin fiscal 2011, we expect the overall global economy to continue to grow at a modest pace. However, we anticipate that some of our businesses will grow faster than the overall Company average due to cyclical rebounds, similar to what we experienced in the fourth quarter in our industrial and vehicle related markets. In addition, our 2011 outlook has been adjusted to reflect the planned divestiture of the European Electrical business.
Excluding future acquisitions, we expect fiscal 2011 EPS from continuing operations in the range of $1.30-1.45, 20-35% higher than comparable fiscal 2010 results. Sales growth and margin expansion will drive most of the improvement. Sales are expected to approximate $1.225-1.275 billion with core growth between 6-10% for the year. Core growth is expected to be stronger in the first half of fiscal 2011 than in the back half due to more difficult comparisons. Projected free cash flow for fiscal 2011 is $130-140 million which, if attained, would represent the 11th consecutive year of free cash flow conversion to net earnings in excess of 100%. In addition, acquisition activity has increased and we are optimistic about the incremental potential such transactions could have on fiscal 2011 results. We expect to start the first quarter of fiscal 2011 off strong with sales in the $315-325 million range and EPS of $0.29-0.34, which at the mid-point is a 50% improvement year-over-year.
Actuant’s diversification and execution rewarded shareholders in 2010, with robust demand and profit generation from many of our end markets and geographies, which more than offset the weakness in late cycle Energy markets. We are focused on our long-term organic and acquisition driven growth strategies. With our strong cash flow and borrowing capacity, we are well positioned financially to capitalize on these opportunities.”
Conference Call Information
An investor conference call is scheduled for 10am CT today, September 29, 2010. 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) |
| | | | | | | | | | |
| | | | | | | August 31, | | August 31, |
| | | | | | | 2010 | | 2009 |
| | | | | | | | | |
| ASSETS | | | | | | | | |
| Current assets | | | | | | |
| Cash and cash equivalents | | $ 40,222 | | | $ 11,385 | |
| Accounts receivable, net | | 185,693 | | | 155,520 | |
| Inventories, net | | | 146,154 | | | 160,656 | |
| Deferred income taxes | | 30,701 | | | 20,855 | |
| Other current assets, including assets of | | | | |
| discontinued operations | | 57,380 | | | 15,246 | |
| | Total current assets | | 460,150 | | | 363,662 | |
| | | | | | | | | |
| Property, plant and equipment, net | | 108,382 | | | 129,118 | |
| Goodwill | | | | | | 704,889 | | | 711,522 | |
| Other intangible assets, net | | 336,978 | | | 350,249 | |
| Other long-term assets | | | 11,304 | | | 13,880 | |
| | | | | | | | | |
| | Total assets | | | $ 1,621,703 | | | $ 1,568,431 | |
| | | | | | | | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | |
| Current liabilities | | | | | | |
| Short-term borrowings | | - | | | $ 4,964 | |
| Trade accounts payable | | 130,051 | | | 108,333 | |
| Accrued compensation and benefits | | 53,212 | | | 30,079 | |
| Income taxes payable | | 50,318 | | | 20,578 | |
| Other current liabilities, including liabilities of | | | | |
| discontinued operations | | 112,256 | | | 71,140 | |
| | Total current liabilities | | 345,837 | | | 235,094 | |
| | | | | | | | | |
| Long-term debt, less current maturities | | 367,380 | | | 400,135 | |
| Deferred income taxes | | | 110,230 | | | 117,335 | |
| Pension and postretirement benefit accruals | | 28,072 | | | 37,662 | |
| Other long-term liabilities | | 30,463 | | | 30,835 | |
| | | | | | | | | |
| Shareholders' equity | | | | | |
| Capital stock | | | | 13,610 | | | 13,543 | |
| Additional paid-in capital | | (175,157 | ) | | (188,644 | ) |
| Accumulated other comprehensive loss | | (67,105 | ) | | (24,599 | ) |
| Stock held in trust | | | (1,934 | ) | | (1,766 | ) |
| Deferred compensation liability | | 1,934 | | | 1,766 | |
| Retained earnings | | | 968,373 | | | 947,070 | |
| | Total shareholders' equity | | 739,721 | | | 747,370 | |
| | | | | | | | | |
| Total liabilities and shareholders' equity | | $ 1,621,703 | | | $ 1,568,431 | |
| | | | | | | | | |
| 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, |
| | | 2010 | 2009 | | 2010 | 2009 |
| Net sales | $ 310,362 | | $ 261,022 | | $ 1,160,508 | | $ 1,117,625 | |
| Cost of products sold | 195,783 | | 172,792 | | 733,256 | | 729,398 | |
| Gross profit | 114,579 | | 88,230 | | 427,252 | | 388,227 | |
| Selling, administrative and engineering expenses | 68,853 | | 59,557 | | 267,866 | | 250,004 | |
| Restructuring charges | 2,188 | | 8,074 | | 15,597 | | 19,530 | |
| Impairment charges | - | | - | | - | | 31,321 | |
| Amortization of intangible assets | 5,946 | | 5,358 | | 22,017 | | 19,644 | |
| Operating profit | 37,592 | | 15,241 | | 121,772 | | 67,728 | |
| Financing costs, net | 7,744 | | 10,684 | | 31,859 | | 41,849 | |
| Other (income) expense, net | 349 | | 198 | | 711 | | (714 | ) |
| Earnings from continuing operations before income | | | | | |
| tax expense | 29,499 | | 4,359 | | 89,202 | | 26,593 | |
| Income tax expense | 8,590 | | 423 | | 18,846 | | 611 | |
| Earnings from continuing operations | 20,909 | | 3,936 | | 70,356 | | 25,982 | |
| Gain (loss) from discontinued operations, net of income taxes | (37,723 | ) | 12,580 | | (46,325 | ) | (12,259 | ) |
| Net earnings (loss) | $ (16,814 | ) | $ 16,516 | | $ 24,031 | | $ 13,723 | |
| Earnings from continuing operations per share | | | | | |
| Basic | $ 0.31 | | $ 0.06 | | $ 1.04 | | $ 0.45 | |
| Diluted | 0.29 | | 0.06 | | 0.97 | | 0.43 | |
| Earnings (loss) per share | | | | | |
| Basic | $ (0.25 | ) | $ 0.26 | | $ 0.36 | | $ 0.24 | |
| Diluted | (0.22 | ) | 0.24 | | 0.35 | | 0.24 | |
| Weighted average common shares outstanding | | | | | |
| Basic | 67,716 | | 63,742 | | 67,624 | | 58,047 | |
| Diluted | 74,369 | | 71,554 | | 74,209 | | 66,064 | |
| | | | | | | | | |
| | 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, |
| | | 2010 | | 2009 | | 2010 | | 2009 |
| | | | | | | | | |
| Operating Activities | | | | | | | | |
| Net earnings (loss) | | $ (16,814 | ) | | $ 16,516 | | | $ 24,031 | | | $ 13,723 | |
| Adjustments to reconcile net earnings (loss) to net cash provided by | | | | | | | | |
| operating activities: | | | | | | | | |
| Depreciation and amortization | | 12,796 | | | 13,480 | | | 51,875 | | | 51,978 | |
| Stock-based compensation expense | | 2,355 | | | 2,208 | | | 8,399 | | | 8,609 | |
| Amortization of debt discount and debt issuance costs | | 1,005 | | | 2,870 | | | 3,969 | | | 4,531 | |
| Provision (benefit) for deferred income taxes | | (3,558 | ) | | 2,269 | | | (2,876 | ) | | (17,847 | ) |
| Impairment charges | | 36,139 | | | - | | | 36,139 | | | 58,274 | |
| Net gain on disposal of businesses | | - | | | (15,831 | ) | | (334 | ) | | (15,831 | ) |
| Other non-cash adjustments | | (148 | ) | | 1,176 | | | (855 | ) | | 1,585 | |
| Changes in operating assets and liabilities, excluding the effects of | | | | | | | |
| acquisitions and divestitures: | | | | | | | |
| Accounts receivable | | 14,048 | | | 2,875 | | | (14,507 | ) | | 71,215 | |
| Expiration of accounts receivable securitization program | | - | | | - | | | (37,106 | ) | | - | |
| Inventories | | (4,065 | ) | | 21,231 | | | (7,964 | ) | | 57,963 | |
| Prepaid expenses and other assets | | 1,445 | | | 252 | | | 3,817 | | | 1,075 | |
| Trade accounts payable | | 8,047 | | | 6,090 | | | 32,727 | | | (61,932 | ) |
| Income taxes payable | | 6,765 | | | (1,987 | ) | | 16,000 | | | (9,180 | ) |
| Accrued compensation and benefits | | 10,367 | | | (1,189 | ) | | 27,361 | | | (25,836 | ) |
| Other accrued liabilities | | (16,870 | ) | | (926 | ) | | (19,590 | ) | | 8,388 | |
| Net cash provided by operating activities | | 51,512 | | | 49,034 | | | 121,086 | | | 146,715 | |
| | | | | | | | | |
| Investing Activities | | | | | | | | |
| Proceeds from sale of property, plant and equipment | | 163 | | | 1,255 | | | 1,236 | | | 1,862 | |
| Proceeds from sale of businesses | | - | | | 38,455 | | | 7,516 | | | 38,455 | |
| Capital expenditures | | (6,753 | ) | | (6,436 | ) | | (19,966 | ) | | (21,454 | ) |
| Business acquisitions, net of cash acquired | | (16,618 | ) | | (3,500 | ) | | (45,866 | ) | | (239,422 | ) |
| Net cash provided by (used in) investing activities | | (23,208 | ) | | 29,774 | | | (57,080 | ) | | (220,559 | ) |
| | | | | | | | | |
| Financing Activities | | | | | | | | |
| Net borrowings (repayments) on revolving credit facilities and | | | | | | | | | | | | |
| short-term borrowings | | (14,495 | ) | | (79,542 | ) | | (14,313 | ) | | 16,657 | |
| Principal repayments on term loans | | - | | | (113,562 | ) | | - | | | (270,000 | ) |
| Proceeds from issuance of term loan | | - | | | - | | | - | | | 115,000 | |
| Proceeds from equity offering, net of transaction costs | | | | 124,781 | | | | | 124,781 | |
| Open market repurchases of 2% Convertible Notes | | - | | | (9,100 | ) | | (22,894 | ) | | (9,100 | ) |
| Debt issuance costs | | - | | | (3,825 | ) | | - | | | (9,158 | ) |
| Stock option exercises, related tax benefits and other | | 1,623 | | | 550 | | | 3,315 | | | 4,024 | |
| Cash dividend | | - | | | - | | | (2,702 | ) | | (2,251 | ) |
| Net cash used in financing activities | | (12,872 | ) | | (80,698 | ) | | (36,594 | ) | | (30,047 | ) |
| | | | | | | | | |
| Effect of exchange rate changes on cash | | 2,509 | | | (17 | ) | | 1,425 | | | (7,273 | ) |
| Net increase (decrease) in cash and cash equivalents | | 17,941 | | | (1,907 | ) | | 28,837 | | | (111,164 | ) |
| Cash and cash equivalents - beginning of period | | 22,281 | | | 13,292 | | | 11,385 | | | 122,549 | |
| Cash and cash equivalents - end of period | | $ 40,222 | | | $ 11,385 | | | $ 40,222 | | | $ 11,385 | |
| | | | | | | | | | | | | |
| 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 | | $ 69,235 | | $ 79,744 | | $ 85,696 | | $ 299,983 | |
| ENERGY SEGMENT | | 73,982 | | 59,526 | | 62,251 | | 63,731 | | 259,490 | | | 64,065 | | 53,862 | | 56,645 | | 61,151 | | 235,723 | |
| ELECTRICAL SEGMENT | | 67,383 | | 59,629 | | 56,218 | | 58,758 | | 241,988 | | | 54,065 | | 54,927 | | 61,967 | | 62,743 | | 233,702 | |
| ENGINEERED SOLUTIONS SEGMENT | | 103,385 | | 72,872 | | 76,308 | | 76,731 | | 329,296 | | | 89,202 | | 89,414 | | 111,712 | | 100,772 | | 391,100 | |
| | TOTAL | | $ 335,274 | | $ 263,709 | | $ 257,620 | | $ 261,022 | | $ 1,117,625 | | | $ 272,640 | | $ 267,438 | | $ 310,068 | | $ 310,362 | | $ 1,160,508 | |
| | | | | | | | | | | | | | |
| % SALES GROWTH | | | | | | | | | | | | |
| INDUSTRIAL SEGMENT | | 4 | % | -18 | % | -38 | % | -37 | % | -23 | % | | -28 | % | -3 | % | 27 | % | 39 | % | 5 | % |
| ENERGY SEGMENT | | 49 | % | 37 | % | 7 | % | 5 | % | 22 | % | | -13 | % | -10 | % | -9 | % | -4 | % | -9 | % |
| ELECTRICAL SEGMENT | | -22 | % | -29 | % | -34 | % | -21 | % | -27 | % | | -20 | % | -8 | % | 10 | % | 7 | % | -3 | % |
| ENGINEERED SOLUTIONS SEGMENT | | -23 | % | -44 | % | -47 | % | -37 | % | -38 | % | | -14 | % | 23 | % | 46 | % | 31 | % | 19 | % |
| | TOTAL | | -6 | % | -23 | % | -34 | % | -26 | % | -23 | % | | -19 | % | 1 | % | 20 | % | 19 | % | 4 | % |
| | | | | | | | | | | | | | |
| OPERATING PROFIT (LOSS) | | | | | | | | | | | | |
| INDUSTRIAL SEGMENT | | $ 26,107 | | $ 15,972 | | $ 15,597 | | $ 13,692 | | $ 71,368 | | | $ 13,854 | | $ 15,847 | | $ 20,703 | | $ 21,778 | | $ 72,182 | |
| ENERGY SEGMENT | | 15,647 | | 5,895 | | 11,772 | | 11,801 | | 45,115 | | | 11,502 | | 5,615 | | 7,326 | | 8,283 | | 32,726 | |
| ELECTRICAL SEGMENT | | 4,935 | | 2,663 | | 3,856 | | 3,559 | | 15,012 | | | 4,073 | | 5,539 | | 7,309 | | 7,446 | | 24,367 | |
| ENGINEERED SOLUTIONS SEGMENT | | 7,865 | | (2,735 | ) | 991 | | 342 | | 6,463 | | | 5,481 | | 6,007 | | 13,554 | | 10,242 | | 35,284 | |
| CORPORATE / GENERAL | | (3,197 | ) | (5,013 | ) | (4,815 | ) | (5,042 | ) | (18,066 | ) | | (5,471 | ) | (5,561 | ) | (7,351 | ) | (7,710 | ) | (26,093 | ) |
| | TOTAL - EXCLUDING RESTRUCTURING CHARGES | | $ 51,357 | | $ 16,782 | | $ 27,401 | | $ 24,352 | | $ 119,892 | | | $ 29,439 | | $ 27,447 | | $ 41,541 | | $ 40,039 | | $ 138,466 | |
| RESTRUCTURING CHARGES | | (674 | ) | (2,564 | ) | (8,494 | ) | (9,111 | ) | (20,843 | ) | | (2,831 | ) | (9,968 | ) | (1,448 | ) | (2,447 | ) | (16,694 | ) |
| IMPAIRMENT CHARGES | | (26,553 | ) | - | | (4,768 | ) | - | | (31,321 | ) | | - | | - | | - | | - | | - | |
| | TOTAL | | $ 24,130 | | $ 14,218 | | $ 14,139 | | $ 15,241 | | $ 67,728 | | | $ 26,608 | | $ 17,479 | | $ 40,093 | | $ 37,592 | | $ 121,772 | |
| | | | | | | | | | | | | | |
| OPERATING PROFIT % | | | | | | | | | | | | |
| INDUSTRIAL SEGMENT | | 28.8 | % | 22.3 | % | 24.8 | % | 22.2 | % | 24.9 | % | | 21.2 | % | 22.9 | % | 26.0 | % | 25.4 | % | 24.1 | % |
| ENERGY SEGMENT | | 21.1 | % | 9.9 | % | 18.9 | % | 18.5 | % | 17.4 | % | | 18.0 | % | 10.4 | % | 12.9 | % | 13.5 | % | 13.9 | % |
| ELECTRICAL SEGMENT | | 7.3 | % | 4.5 | % | 6.9 | % | 6.1 | % | 6.2 | % | | 7.5 | % | 10.1 | % | 11.8 | % | 11.9 | % | 10.4 | % |
| ENGINEERED SOLUTIONS SEGMENT | | 7.6 | % | -3.8 | % | 1.3 | % | 0.4 | % | 2.0 | % | | 6.1 | % | 6.7 | % | 12.1 | % | 10.2 | % | 9.0 | % |
| | TOTAL (INCLUDING CORPORATE) - EXCLUDING RESTRUCTURING CHARGES | 15.3 | % | 6.4 | % | 10.6 | % | 9.3 | % | 10.7 | % | | 10.8 | % | 10.3 | % | 13.4 | % | 12.9 | % | 11.9 | % |
| | | | | | | | | | | | | | |
| EBITDA | | | | | | | | | | | | |
| INDUSTRIAL SEGMENT | | $ 27,139 | | $ 17,058 | | $ 18,208 | | $ 15,322 | | $ 77,727 | | | $ 15,633 | | $ 16,639 | | $ 21,632 | | $ 24,268 | | $ 78,172 | |
| ENERGY SEGMENT | | 21,671 | | 11,492 | | 15,080 | | 16,235 | | 64,478 | | | 15,493 | | 10,072 | | 11,353 | | 11,731 | | 48,649 | |
| ELECTRICAL SEGMENT | | 6,438 | | 4,113 | | 5,494 | | 5,186 | | 21,231 | | | 5,675 | | 6,988 | | 8,632 | | 8,876 | | 30,171 | |
| ENGINEERED SOLUTIONS SEGMENT | | 12,417 | | 1,274 | | 3,879 | | 4,953 | | 22,524 | | | 8,981 | | 10,168 | | 17,373 | | 14,379 | | 50,901 | |
| CORPORATE / GENERAL | | (3,110 | ) | (4,058 | ) | (4,237 | ) | (4,196 | ) | (15,601 | ) | | (4,771 | ) | (4,339 | ) | (6,542 | ) | (7,252 | ) | (22,904 | ) |
| | TOTAL - EXCLUDING RESTRUCTURING CHARGES | | $ 64,555 | | $ 29,879 | | $ 38,424 | | $ 37,500 | | $ 170,358 | | | $ 41,011 | | $ 39,528 | | $ 52,448 | | $ 52,002 | | $ 184,989 | |
| RESTRUCTURING CHARGES | | (674 | ) | (2,564 | ) | (8,494 | ) | (9,111 | ) | (20,843 | ) | | (2,831 | ) | (9,968 | ) | (1,448 | ) | (2,447 | ) | (16,694 | ) |
| IMPAIRMENT CHARGES | | (26,553 | ) | - | | (4,768 | ) | - | | (31,321 | ) | | - | | - | | - | | - | | - | |
| | TOTAL | | $ 37,328 | | $ 27,315 | | $ 25,162 | | $ 28,389 | | $ 118,194 | | | $ 38,180 | | $ 29,560 | | $ 51,000 | | $ 49,555 | | $ 168,295 | |
| | | | | | | | | ` | | | | | |
| EBITDA % | | | | | | | | | | | | |
| INDUSTRIAL SEGMENT | | 30.0 | % | 23.8 | % | 29.0 | % | 24.8 | % | 27.1 | % | | 23.9 | % | 24.0 | % | 27.1 | % | 28.3 | % | 26.1 | % |
| ENERGY SEGMENT | | 29.3 | % | 19.3 | % | 24.2 | % | 25.5 | % | 24.8 | % | | 24.2 | % | 18.7 | % | 20.0 | % | 19.2 | % | 20.6 | % |
| ELECTRICAL SEGMENT | | 9.6 | % | 6.9 | % | 9.8 | % | 8.8 | % | 8.8 | % | | 10.5 | % | 12.7 | % | 13.9 | % | 14.1 | % | 12.9 | % |
| ENGINEERED SOLUTIONS SEGMENT | | 12.0 | % | 1.7 | % | 5.1 | % | 6.5 | % | 6.8 | % | | 10.1 | % | 11.4 | % | 15.6 | % | 14.3 | % | 13.0 | % |
| | TOTAL (INCLUDING CORPORATE) - EXCLUDING RESTRUCTURING CHARGES | 19.3 | % | 11.3 | % | 14.9 | % | 14.4 | % | 15.2 | % | | 15.0 | % | 14.8 | % | 16.9 | % | 16.8 | % | 15.9 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| 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 |
| OPERATING PROFIT (LOSS), EXCLUDING RESTRUCTURING CHARGES | | | | | | | | | | | | |
| AND IMPAIRMENT CHARGES | | | | | | | | | | | | |
| INDUSTRIAL SEGMENT | | | | | | | | | | | | |
| | | OPERATING PROFIT (GAAP MEASURE) | | $ 26,007 | | $ 15,545 | | $ 14,633 | | $ 11,266 | | $ 67,451 | | | $ 13,676 | | $ 10,937 | | $ 20,374 | | $ 21,357 | | $ 66,344 | |
| | | RESTRUCTURING CHARGES | | 100 | | 427 | | 964 | | 2,426 | | 3,917 | | | 178 | | 4,910 | | 329 | | 421 | | 5,838 | |
| | | ADJUSTED OPERATING PROFIT (NON-GAAP MEASURE) | | $ 26,107 | | $ 15,972 | | $ 15,597 | | $ 13,692 | | $ 71,368 | | | $ 13,854 | | $ 15,847 | | $ 20,703 | | $ 21,778 | | $ 72,182 | |
| | | | | | | | | | | | | | | |
| ENERGY SEGMENT | | | | | | | | | | | | |
| | | OPERATING PROFIT (GAAP MEASURE) | | $ 15,533 | | $ 5,976 | | $ 11,508 | | $ 11,075 | | $ 44,092 | | | $ 11,359 | | $ 3,922 | | $ 7,203 | | $ 8,218 | | $ 30,702 | |
| | | RESTRUCTURING CHARGES | | 114 | | (81 | ) | 264 | | 726 | | 1,023 | | | 143 | | 1,693 | | 123 | | 65 | | 2,024 | |
| | | ADJUSTED OPERATING PROFIT (NON-GAAP MEASURE) | | $ 15,647 | | $ 5,895 | | $ 11,772 | | $ 11,801 | | $ 45,115 | | | $ 11,502 | | $ 5,615 | | $ 7,326 | | $ 8,283 | | $ 32,726 | |
| | | | | | | | | | | | | | | |
| ELECTRICAL SEGMENT | | | | | | | | | | | | |
| | | OPERATING PROFIT (LOSS) (GAAP MEASURE) | | $ 4,900 | | $ 1,959 | | $ (4,293 | ) | $ 762 | | $ 3,327 | | | $ 2,186 | | $ 4,373 | | $ 6,775 | | $ 6,519 | | $ 19,853 | |
| | | RESTRUCTURING CHARGES | | 35 | | 704 | | 3,381 | | 2,797 | | 6,917 | | | 1,887 | | 1,166 | | 534 | | 927 | | 4,514 | |
| | | IMPAIRMENT CHARGE | | - | | - | | 4,768 | | - | | 4,768 | | | - | | - | | - | | - | | - | |
| | | ADJUSTED OPERATING PROFIT (NON-GAAP MEASURE) | | $ 4,935 | | $ 2,663 | | $ 3,856 | | $ 3,559 | | $ 15,012 | | | $ 4,073 | | $ 5,539 | | $ 7,309 | | $ 7,446 | | $ 24,367 | |
| | | | | | | | | | | | | | | |
| ENGINEERED SOLUTIONS | | | | | | | | | | | | |
| | | OPERATING PROFIT (LOSS) (GAAP MEASURE) | | $ (19,113 | ) | $ (3,985 | ) | $ (2,670 | ) | $ (2,664 | ) | $ (28,432 | ) | | $ 5,053 | | $ 3,995 | | $ 13,170 | | $ 9,463 | | $ 31,681 | |
| | | RESTRUCTURING CHARGES | | 425 | | 1,250 | | 3,661 | | 3,006 | | 8,342 | | | 428 | | 2,012 | | 384 | | 779 | | 3,603 | |
| | | IMPAIRMENT CHARGE | | 26,553 | | - | | - | | - | | 26,553 | | | - | | - | | - | | - | | - | |
| | | ADJUSTED OPERATING PROFIT (LOSS) (NON-GAAP MEASURE) | | $ 7,865 | | $ (2,735 | ) | $ 991 | | $ 342 | | $ 6,463 | | | $ 5,481 | | $ 6,007 | | $ 13,554 | | $ 10,242 | | $ 35,284 | |
| | | | | | | | | | | | | | | |
| CORPORATE | | | | | | | | | | | | |
| | | OPERATING LOSS (GAAP MEASURE) | | $ (3,197 | ) | $ (5,277 | ) | $ (5,039 | ) | $ (5,198 | ) | $ (18,710 | ) | | $ (5,666 | ) | $ (5,748 | ) | $ (7,429 | ) | $ (7,965 | ) | $ (26,808 | ) |
| | | RESTRUCTURING CHARGES | | - | | 264 | | 224 | | 156 | | 644 | | | 195 | | 187 | | 78 | | 255 | | 715 | |
| | | ADJUSTED OPERATING LOSS (NON-GAAP MEASURE) | | $ (3,197 | ) | $ (5,013 | ) | $ (4,815 | ) | $ (5,042 | ) | $ (18,066 | ) | | $ (5,471 | ) | $ (5,561 | ) | $ (7,351 | ) | $ (7,710 | ) | $ (26,093 | ) |
| | | | | | | | | | | | | | | |
| NET EARNINGS (LOSS), EXCLUDING RESTRUCTURING CHARGES, | | | | | | | | | | | | |
| IMPAIRMENT CHARGES, INCOME TAX ADJUSTMENTS, DEBT | | | | | | | | | | | | |
| EXTINGUISHMENT CHARGES AND DISCONTINUED OPERATIONS (2) | | | | | | | | | | | | |
| NET EARNINGS (LOSS) (GAAP MEASURE) | | $ 11,598 | | $ 3,244 | | $ (17,635 | ) | $ 16,516 | | $ 13,723 | | | $ 11,854 | | $ 7,157 | | $ 21,835 | | $ (16,814 | ) | $ 24,031 | |
| | | RESTRUCTURING CHARGES, NET OF TAX BENEFIT | | 481 | | 1,553 | | 4,920 | | 6,055 | | 13,009 | | | 1,804 | | 6,863 | | 1,069 | | 1,938 | | 11,674 | |
| | | IMPAIRMENT CHARGES, NET OF TAX BENEFIT | | 16,463 | | - | | 2,981 | | - | | 19,444 | | | - | | - | | - | | - | | - | |
| | | INCOME TAX ADJUSTMENTS | | - | | - | | - | | - | | - | | | - | | - | | 632 | | - | | 632 | |
| | | DEBT EXTINGUISHMENT CHARGES, NET OF TAX BENEFIT | | (236 | ) | - | | - | | 1,303 | | 1,067 | | | - | | - | | - | | - | | - | |
| | | DISCONTINUED OPERATIONS, NET OF TAX BENEFIT | | 30 | | 1,864 | | 22,945 | | (12,580 | ) | 12,259 | | | 1,406 | | 738 | | 1,853 | | 37,723 | | 41,720 | |
| | | TOTAL (NON-GAAP MEASURE) | | $ 28,336 | | $ 6,661 | | $ 13,211 | | $ 11,294 | | $ 59,502 | | | $ 15,064 | | $ 14,758 | | $ 25,389 | | $ 22,847 | | $ 78,057 | |
| | | | | | | | | | | | | | | |
| DILUTED EARNINGS (LOSS) PER SHARE, EXCLUDING RESTRUCTURING | | | | | | | | | | | | |
| CHARGES, IMPAIRMENT CHARGES, INCOME TAX ADJUSTMENTS, DEBT | | | | | | | | | | | | |
| EXTINGUISHMENT CHARGES AND DISCONTINUED OPERATIONS (2) | | | | | | | | | | | | |
| NET EARNINGS (LOSS) (GAAP MEASURE) | | $ 0.19 | | $ 0.06 | | $ (0.27 | ) | $ 0.24 | | $ 0.24 | | | $ 0.17 | | $ 0.10 | | $ 0.30 | | $ (0.22 | ) | $ 0.35 | |
| | | RESTRUCTURING CHARGES, NET OF TAX BENEFIT | | 0.01 | | 0.02 | | 0.08 | | 0.09 | | 0.20 | | | 0.02 | | 0.10 | | 0.01 | | 0.02 | | 0.16 | |
| | | IMPAIRMENT CHARGES, NET OF TAX BENEFIT | | 0.26 | | - | | 0.05 | | - | | 0.29 | | | - | | - | | - | | - | | - | |
| | | INCOME TAX ADJUSTMENTS | | - | | - | | - | | - | | - | | | - | | - | | 0.01 | | - | | 0.01 | |
| | | DEBT EXTINGUISHMENT CHARGES, NET OF TAX BENEFIT | | (0.00 | ) | - | | - | | 0.02 | | 0.02 | | | - | | - | | - | | - | | - | |
| | | DISCONTINUED OPERATIONS, NET OF TAX BENEFIT | | - | | 0.03 | | 0.36 | | (0.18 | ) | 0.19 | | | 0.02 | | 0.01 | | 0.03 | | 0.51 | | 0.56 | |
| | | TOTAL (NON-GAAP MEASURE) | | $ 0.45 | | $ 0.11 | | $ 0.22 | | $ 0.17 | | $ 0.94 | | | $ 0.21 | | $ 0.21 | | $ 0.35 | | $ 0.31 | | $ 1.08 | |
| | | | | | | | | | | | | | | |
| EBITDA (3) | | | | | | | | | | | | |
| NET EARNINGS (LOSS) (GAAP MEASURE) | | $ 11,598 | | $ 3,244 | | $ (17,635 | ) | $ 16,516 | | $ 13,723 | | | $ 11,854 | | $ 7,157 | | $ 21,835 | | $ (16,814 | ) | $ 24,031 | |
| | | FINANCING COSTS, NET | | 12,235 | | 9,904 | | 9,026 | | 10,684 | | 41,849 | | | 8,538 | | 7,798 | | 7,779 | | 7,744 | | 31,859 | |
| | | INCOME TAX EXPENSE | | 1,487 | | (15 | ) | (1,284 | ) | 423 | | 611 | | | 4,529 | | 2,020 | | 3,706 | | 8,590 | | 18,846 | |
| | | DEPRECIATION & AMORTIZATION | | 11,978 | | 12,318 | | 12,110 | | 13,346 | | 49,752 | | | 11,853 | | 11,847 | | 11,222 | | 12,312 | | 47,234 | |
| | | DISCONTINUED OPERATIONS, NET OF TAX BENEFIT | | 30 | | 1,864 | | 22,945 | | (12,580 | ) | 12,259 | | | 1,406 | | 738 | | 6,458 | | 37,723 | | 46,325 | |
| | | EBITDA (NON-GAAP MEASURE) | | $ 37,328 | | $ 27,315 | | $ 25,162 | | $ 28,389 | | $ 118,194 | | | $ 38,180 | | $ 29,560 | | $ 51,000 | | $ 49,555 | | $ 168,295 | |
| | | IMPAIRMENT CHARGES | | 26,553 | | - | | 4,768 | | - | | 31,321 | | | - | | - | | - | | - | | - | |
| | | RESTRUCTURING CHARGES | | 674 | | 2,564 | | 8,494 | | 9,111 | | 20,843 | | | 2,831 | | 9,968 | | 1,448 | | 2,447 | | 16,694 | |
| | | EBITDA (NON-GAAP MEASURE) - EXCLUDING DISCONTINUED | | | | | | | | | | | | |
| | | OPERATIONS, IMPAIRMENT AND RESTRUCTURING CHARGES | | $ 64,555 | | $ 29,879 | | $ 38,424 | | $ 37,500 | | $ 170,358 | | | $ 41,011 | | $ 39,528 | | $ 52,448 | | $ 52,002 | | $ 184,989 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| ACTUANT CORPORATION | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| FOOTNOTES FOR SUPPLEMENTAL UNAUDITED DATA AND RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES | | | | | | | | | | | | | | | | | | | | | |
| (Dollars in thousands, except for per share amounts) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| FOOTNOTES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| NOTE: | The total of the individual quarters may not equal the annual total due to rounding. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | | A summary of restructuring charges included in cost of products sold is as follows: | | | | | | | | | | | | | | | | | | | | | |
| | | | FISCAL 2009 | | FISCAL 2010 | | | |
| | | | Q1 | | Q2 | | Q3 | | Q4 | | TOTAL | | Q1 | | | | Q2 | | | | Q3 | | | | Q4 | | | | TOTAL | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Restructuring - cost of products sold | | $ - | | $ - | | $ 276 | | $ 1,037 | | $ 1,313 | | $ 54 | | | | $ 692 | | | | $ 92 | | | | $ 259 | | | | $ 1,097 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(2) Net earnings and diluted earnings per share excluding restructuring charges, impairment charges, income tax adjustments, 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.
(3) 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
