Enerpac Tool 8K Actuant Reports Second Quarter 2019 Results | EPAC 21 Mar 19

Exhibit 99.1

Actuant Reports Second Quarter 2019 Results

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.

MILWAUKEE--(BUSINESS WIRE)--March 21, 2019--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.

CONTACT:
Barb Bolens
VP Corporate Strategy & Investor Relations
262-293-1562

Enerpac Tool (EPAC) 8-KActuant Reports Second Quarter 2019 Results