Exhibit 99.1
Actuant Announces Record Results, Increases Fiscal 2005 Guidance
MILWAUKEE--(BUSINESS WIRE)--Sept. 30, 2004--Actuant Corporation
(NYSE:ATU) today announced results for its fourth quarter and fiscal
year ended August 31, 2004. Fourth quarter sales increased
approximately 27% to $187.8 million compared to $148.2 million in the
prior year. Current year results include those from Kwikee Products
Company Inc. ("Kwikee") and Dresco B.V. ("Dresco"), which were
acquired during fiscal 2004. Excluding the impact of these
acquisitions and foreign currency exchange rate changes on translated
results, fourth quarter sales increased approximately 11% from the
comparable prior year period. Fourth quarter fiscal 2004 net earnings
and diluted earnings per share ("EPS") were $18.3 million and $0.75
per diluted share, respectively, compared to fiscal 2003 fourth
quarter net earnings and diluted earnings per share of $10.0 million
and $0.41 per diluted share, respectively. Fourth quarter fiscal 2004
results include a charge of $7.1 million, net of tax, or $0.29 per
diluted share, arising from the tender of the Company's 13% Senior
Subordinated Notes (the "13% Notes") and net income from discontinued
operations of $10.9 million, or $0.45 per diluted share, due to the
release of a reserve for tax and other obligations related to the
spin-off of APW Ltd. in fiscal 2000 (the "Spin-off"). Excluding these
special items, current year fourth quarter net earnings increased 44%
to $0.59 per diluted share (see attached reconciliation of earnings).
Actuant's sales for the fiscal year ended August 31, 2004 were
$726.9 million, approximately 24% higher than the $585.4 million
generated in the prior year. Excluding the impact of acquisitions and
foreign currency rate changes, fiscal 2004 sales increased
approximately 9% from the comparable prior year period. Net earnings
for the year ended August 31, 2004 were $34.8 million, or $1.41 per
diluted share, compared to $29.0 million, or $1.18 per diluted share,
in fiscal 2003. In fiscal 2004, the Company recorded net of tax
special charges of $25.1 million, or $1.02 per diluted share, due to
the early extinguishment of debt and income from discontinued
operations of $10.9 million, net of tax, or $0.44 per diluted share,
due to the release of a reserve for tax and other obligations related
to the Spin-off. In fiscal 2003, the Company recorded net of tax
special charges of $1.3 million, or $0.05 per diluted share, for the
early extinguishment of debt and $4.2 million, or $0.18 per diluted
share, for litigation matters associated with businesses divested
prior to the Spin-off. Excluding these special charges, net earnings
and diluted earnings per share for the year ended August 31, 2004 were
$49.0 million, or $1.99 per diluted share, over 40% higher than the
$34.4 million, or $1.41 per diluted share in the prior year (see
attached reconciliation of earnings).
Commenting on the results, Robert C. Arzbaecher, Chief Executive
Officer, stated, "Actuant finished fiscal 2004 strongly, as fourth
quarter results exceeded our expectations in terms of sales, earnings,
and cash flow. Core sales grew 11% over the prior year and excluding
the special items (described above), Actuant increased its
year-over-year earnings per share for the 13th consecutive quarter."
Arzbaecher continued, "Favorable economic conditions and margin
expansion across both segments helped drive record fourth quarter
earnings. We also benefited from a sequential improvement in
automotive margins, as well as earnings contributions from both Kwikee
and Dresco. Focus on Actuant's LEAD (Lean Enterprise Across
Disciplines) Process, active working capital management, and increased
earnings drove another quarter of strong cash flow, reducing net debt
to approximately $188 million at year-end. Despite the $65 million
spent on acquisitions and $30 million of premiums paid to retire 13%
Notes in fiscal 2004, our leverage ratio (debt/EBITDA) at year-end was
lower than at the start of the year." (EBITDA is earnings before
interest, income taxes, depreciation, amortization and minority
interest).
He concluded, "We are pleased with fiscal 2004 results - core
sales growth of 9%, the completion of two accretive bolt-on
acquisitions, improving margins and strong cash flow. On a full-year
basis and excluding special charges in both years, the $1.99 diluted
earnings per share in fiscal 2004 was 41% higher than a year ago, and
was the third straight year of EPS growth in excess of 15%. Both Tools
& Supplies and Engineered Solutions had excellent years as we saw a
recovering North American economy. Looking forward to fiscal 2005, we
are optimistic that we will be able to continue to generate earnings
growth. Given improved economic conditions, the recent acquisition of
Yvel S.A. and lower borrowing costs due to the completion of the 13%
Notes tender, we are increasing our previously announced fiscal 2005
guidance. We now expect diluted earnings per share of $2.25-$2.35 in
2005 on sales of $750-$775 million. First quarter sales should be in
the $185-$190 million range, and diluted earnings per share should be
in the range of $0.53-$0.58 per share."
Fiscal 2004 fourth quarter Tools & Supplies segment sales were
$106.3 million, approximately 15% higher than last year due primarily
to the Dresco acquisition and foreign currency rate changes. Excluding
Dresco and the impact of foreign currency rate changes, fourth quarter
Tools & Supplies segment revenues increased 2% over the prior year.
Fourth quarter fiscal 2004 Engineered Solutions segment sales
increased approximately 46% to $81.5 million, compared to $55.8
million in the previous year. Excluding the impact of the Kwikee
acquisition and foreign currency rate changes, Engineered Solutions
sales increased 26%, benefiting from growth in all three of Actuant's
main actuation markets - automotive convertible top, heavy duty truck
cab-tilt, and recreational vehicles.
Actuant's fiscal 2004 fourth quarter operating profit increased
27% to $24.3 million, in line with the corresponding increase in
sales. The increases in operating profit in fiscal 2004 reflect the
benefit of cost reductions implemented over the past year and improved
automotive labor efficiencies. These improvements were partially
offset by increased corporate expenses.
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 business unit acquisitions and related 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 registration statements filed with the Securities and
Exchange Commission for further information regarding risk factors.
Actuant, headquartered in Milwaukee, Wisconsin, is a diversified
industrial company with operations in more than 20 countries. The
Actuant businesses are leading companies in highly engineered position
and motion control systems and branded tools. Products are offered
under such established brand names as Dresco, Enerpac, Gardner Bender,
Kopp, Kwikee, Milwaukee Cylinder, Nielsen Sessions, Power-Packer,
Power Gear and Yvel.
The Company will conduct an investor conference call at 11:00 EDT
today to discuss fourth quarter results. For further information on
Actuant and its business units, and to listen to today's conference
call, visit the Company's website at www.actuant.com.
Actuant Corporation
Consolidated Statements of Earnings
(In thousands except per share amounts)
Three Months Twelve Months
Ended Ended
August 31, August 31,
------------------ ------------------
2004 2003 2004 2003
------------------ ------------------
(Unaudited)
Net Sales $187,764 $148,247 $726,851 $585,393
Cost of Products Sold 127,650 99,457 495,609 395,409
------------------ ------------------
Gross Profit 60,114 48,790 231,242 189,984
Selling, Administrative and
Engineering Expenses 35,354 29,094 138,682 114,928
Amortization of Intangible Assets 493 521 2,221 2,271
------------------ ------------------
Operating Profit 24,267 19,175 90,339 72,785
Net Financing Costs 2,391 5,148 13,559 21,430
Charge for Early Extinguishment
of Debt 9,458 - 36,735 1,974
Litigation Charge associated with
Divested Businesses - - - 6,502
Other (Income) Expense, net (376) (1,217) 1,220 (2,238)
------------------ ------------------
Earnings from Continuing
Operations Before Income Taxes
and Minority Interest 12,794 15,244 38,825 45,117
Income Tax Expense 5,305 5,350 14,676 15,924
Minority Interest, net of Income
Taxes 116 (123) 259 227
------------------ ------------------
Earnings from Continuing
Operations 7,373 10,017 23,890 28,966
Discontinued Operations, net of
Income Taxes 10,933 - 10,933 -
------------------ ------------------
Net Earnings $18,306 $10,017 $34,823 $28,966
================== ==================
Basic Earnings per Share
Earnings from Continuing
Operations $0.31 $0.43 $1.01 $1.24
Discontinued Operations, net of
Income Taxes 0.46 - 0.46 -
------------------ ------------------
Total $0.77 $0.43 $1.47 $1.24
================== ==================
Diluted Earnings per Share
Earnings from Continuing
Operations $0.30 $0.41 $0.97 $1.18
Discontinued Operations, net of
Income Taxes 0.45 - 0.44 -
------------------ ------------------
Total $0.75 $0.41 $1.41 $1.18
================== ==================
Weighted Average Common Shares
Outstanding
Basic 23,757 23,474 23,660 23,350
Diluted 24,515 24,550 24,677 24,464
Actuant Corporation
Consolidated Balance Sheets
(Dollars in thousands)
August 31, August 31,
2004 2003
----------- -----------
ASSETS
Current assets
Cash and cash equivalents $6,033 $4,593
Accounts receivable, net 90,433 81,825
Inventories, net 87,074 67,640
Deferred income taxes 11,126 14,727
Other current assets 7,648 3,977
----------- -----------
Total Current Assets 202,314 172,762
Property, plant and equipment, net 47,972 59,197
Goodwill 145,387 101,680
Other intangible assets, net 22,127 19,521
Other long-term assets 6,336 5,517
----------- -----------
Total Assets $424,136 $358,677
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings $960 $1,224
Trade accounts payable 64,165 53,045
Accrued compensation and benefits 21,401 16,773
Income taxes payable 817 15,952
Current maturities of long-term debt 3,863 8,918
Other current liabilities 34,627 40,753
----------- -----------
Total Current Liabilities 125,833 136,665
Long-term debt, less current maturities 189,068 159,692
Deferred income taxes 8,376 8,841
Pension and postretirement benefit accruals 28,862 26,454
Other long-term liabilities 40,009 34,534
Minority interest in net equity of
consolidated affiliates 211 4,117
Shareholders' equity
Capital stock 4,753 4,702
Additional paid-in capital (518,321) (522,627)
Accumulated other comprehensive income
(loss) (17,600) (21,823)
Stock held in trust (806) (636)
Deferred compensation liability 806 636
Retained earnings 562,945 528,122
----------- -----------
Total Shareholders' Equity (Deficit) 31,777 (11,626)
----------- -----------
Total Liabilities and Shareholders' Equity $424,136 $358,677
=========== ===========
Actuant Corporation
Consolidated Statements of Cash Flows
(In thousands)
Three Months Ended Year Ended
August 31, August 31,
--------------------- -------------------
2004 2003 2004 2003
----------- --------- --------- ---------
(Unaudited)
Operating Activities
Earnings from
continuing operations $7,373 $10,017 $23,890 $28,966
Adjustments to reconcile
earnings from continuing
operations to net cash
provided by operating
activities of continuing
operations:
Depreciation and
amortization 4,343 3,926 16,597 15,067
Amortization of debt discount
and debt issuance costs 297 367 1,423 1,479
Write-off of debt discount
and debt issuance costs in
conjunction with early
extinguishment of debt 764 - 5,209 317
Write-off fair value
adjustments to long-term
debt in conjunction with
early terminations of
interest rate swaps 1,170 - 754 -
Provision (benefit) for
deferred income taxes (1,298) 3,639 490 4,115
Loss on disposal of assets 224 4 361 71
Changes in operating
assets and liabilities,
excluding the effects of
business acquisitions:
Accounts receivable 7,172 2,432 4,287 1,550
Inventories (3,305) 917 (7,549) 5,645
Prepaid expenses and
other assets (1,356) 709 (2,713) 4,387
Trade accounts payable 1,014 3,189 3,731 (2,233)
Accrued interest 592 3,053 (4,050) (745)
Income taxes payable 5,721 2,032 1,387 3,380
Other accrued
liabilities 1,843 (12,215) 4,144 (12,580)
----------- --------- --------- ---------
Cash provided by continuing
operations(a) 24,554 18,070 47,961 49,419
Investing Activities
Proceeds from sale of property,
plant and equipment - 716 14,601 1,109
Capital expenditures (2,935) (2,329) (10,935) (12,671)
Cash paid for business
acquisitions, net of cash
acquired - - (65,100) (9,174)
----------- --------- --------- ---------
Cash used in investing
activities (2,935) (1,613) (61,434) (20,736)
Financing Activities
Partial redemptions of
13% senior subordinated notes (29,236) - (110,133) (9,425)
Net proceeds from convertible
senior subordinated note
offering - - 144,994 -
Extinguishment of former
senior secured credit
agreement - - (30,000) -
Initial proceeds from
new senior credit agreement - - 30,000 -
Net borrowings (repayments)
on revolving credit facilities
and short-term borrowings 12,077 (5,442) 8,136 (2,180)
Principal borrowings on
term loans - - - 3,932
Principal payments on term
loans (1,956) (11,215) (26,399) (22,888)
(Payments for) proceeds
from early termination of
interest rate swaps (1,170) - (2,186) 1,550
Debt issuance costs (229) - (1,499) -
Stock option exercises
and other 159 524 1,725 1,708
----------- --------- --------- ---------
Cash (used in) provided
by financing activities (20,355) (16,133) 14,638 (27,303)
Effect of exchange rate
changes on cash 18 (233) 275 170
----------- --------- --------- ---------
Net increase in cash and
cash equivalents 1,282 91 1,440 1,550
Cash and cash equivalents -
beginning of period 4,751 4,502 4,593 3,043
----------- --------- --------- ---------
Cash and cash equivalents -
end of period $6,033 $4,593 $6,033 $4,593
=========== ========= ========= =========
(a) Includes the net of tax cash impact of 13% senior subordinated
note redemptions of $5.2 million for the three months ended August
31, 2004 and $19.0 million and $1.0 million for the years ended
August 31, 2004 and 2003, respectively.
ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA
(US dollars, in thousands)
FISCAL 2003
---------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
---------------------------------------------
SALES
TOOLS & SUPPLIES
SEGMENT $92,014 $90,651 $91,386 $92,433 $366,484
ENGINEERED SOLUTIONS
SEGMENT 55,844 51,448 55,803 55,814 218,909
---------------------------------------------
TOTAL REPORTED SALES $147,858 $142,099 $147,189 $148,247 $585,393
=============================================
% SALES GROWTH
TOOLS & SUPPLIES
SEGMENT 43.6% 45.4% 39.0% 37.2% 41.2%
ENGINEERED SOLUTIONS
SEGMENT 13.8% 11.6% 2.8% 3.3% 7.6%
TOTAL REPORTED SALES 30.7% 31.0% 22.6% 22.1% 26.4%
OPERATING PROFIT
TOOLS & SUPPLIES
SEGMENT $12,818 $12,224 $13,702 $13,417 $52,161
ENGINEERED SOLUTIONS
SEGMENT 6,616 5,760 7,648 7,571 27,595
CORPORATE / GENERAL (1,246) (1,955) (1,957) (1,813) (6,971)
---------------------------------------------
TOTAL REPORTED
RESULTS $18,188 $16,029 $19,393 $19,175 $72,785
=============================================
OPERATING PROFIT %
TOOLS & SUPPLIES
SEGMENT 13.9% 13.5% 15.0% 14.5% 14.2%
ENGINEERED SOLUTIONS
SEGMENT 11.8% 11.2% 13.7% 13.6% 12.6%
TOTAL (INCLUDING
CORPORATE) 12.3% 11.3% 13.2% 12.9% 12.4%
EBITDA EXCLUDING SPECIAL
ITEMS
TOOLS & SUPPLIES
SEGMENT $15,126 $14,454 $16,829 $15,746 $62,155
ENGINEERED SOLUTIONS
SEGMENT 7,666 7,501 8,739 8,947 32,853
CORPORATE / GENERAL (1,161) (1,354) (2,028) (375) (4,918)
---------------------------------------------
EBITDA EXCLUDING
SPECIAL ITEMS 21,631 20,601 23,540 24,318 90,090
SPECIAL ITEMS (1) (9,274) - 798 - (8,476)
---------------------------------------------
EBITDA (2) $12,357 $20,601 $24,338 $24,318 $81,614
=============================================
EBITDA %
TOOLS & SUPPLIES
SEGMENT 16.4% 15.9% 18.4% 17.0% 17.0%
ENGINEERED SOLUTIONS
SEGMENT 13.7% 14.6% 15.7% 16.0% 15.0%
TOTAL EXCLUDING
SPECIAL ITEMS
(INCLUDING
CORPORATE) 14.6% 14.5% 16.0% 16.4% 15.4%
FISCAL 2004
---------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
---------------------------------------------
SALES
TOOLS & SUPPLIES
SEGMENT $96,335 $103,554 $109,930 $106,298 $416,117
ENGINEERED SOLUTIONS
SEGMENT 70,249 72,468 86,551 81,466 310,734
---------------------------------------------
TOTAL REPORTED SALES $166,584 $176,022 $196,481 $187,764 $726,851
=============================================
% SALES GROWTH
TOOLS & SUPPLIES
SEGMENT 4.7% 14.2% 20.3% 15.0% 13.5%
ENGINEERED SOLUTIONS
SEGMENT 25.8% 40.9% 55.1% 46.0% 41.9%
TOTAL REPORTED SALES 12.7% 23.9% 33.5% 26.7% 24.2%
OPERATING PROFIT
TOOLS & SUPPLIES
SEGMENT $14,361 $15,714 $17,546 $17,088 $64,709
ENGINEERED SOLUTIONS
SEGMENT 8,775 7,257 11,415 11,216 38,663
CORPORATE / GENERAL (2,414) (2,799) (3,783) (4,037) (13,033)
---------------------------------------------
TOTAL REPORTED
RESULTS $20,722 $20,172 $25,178 $24,267 $90,339
=============================================
OPERATING PROFIT %
TOOLS & SUPPLIES
SEGMENT 14.9% 15.2% 16.0% 16.1% 15.6%
ENGINEERED SOLUTIONS
SEGMENT 12.5% 10.0% 13.2% 13.8% 12.4%
TOTAL (INCLUDING
CORPORATE) 12.4% 11.5% 12.8% 12.9% 12.4%
EBITDA EXCLUDING SPECIAL
ITEMS
TOOLS & SUPPLIES
SEGMENT $16,668 $17,511 $19,618 $19,378 $73,175
ENGINEERED SOLUTIONS
SEGMENT 9,921 8,986 12,753 13,285 44,945
CORPORATE / GENERAL (2,386) (2,709) (3,632) (3,677) (12,404)
---------------------------------------------
EBITDA EXCLUDING
SPECIAL ITEMS 24,203 23,788 28,739 28,986 105,716
SPECIAL ITEMS (1) (15,069) (2,268) (9,940) (9,458) (36,735)
---------------------------------------------
EBITDA (2) $9,134 $21,520 $18,799 $19,528 $68,981
=============================================
EBITDA %
TOOLS & SUPPLIES
SEGMENT 17.3% 16.9% 17.8% 18.2% 17.6%
ENGINEERED SOLUTIONS
SEGMENT 14.1% 12.4% 14.7% 16.3% 14.5%
TOTAL EXCLUDING
SPECIAL ITEMS
(INCLUDING
CORPORATE) 14.5% 13.5% 14.6% 15.4% 14.5%
(1) First quarter 2003 special items include a $2.0 million charge
related to the early redemption of debt and a $7.3 million charge
related to litigation for business units divested prior to the
July 31, 2000 spin-off. Third quarter 2003 special items
represents an $0.8 million reversal of a portion of the $7.3
million first quarter charge for the favorable settlement of such
litigation. First, third and fourth quarter 2004 special items
represents charges related to the early redemption of debt. Second
quarter 2004 special items represents the non-cash charge
attributable to the write-off of remaining debt issuance costs
associated with the senior secured credit facility that was
replaced during February 2004.
(2) EBITDA excludes discontinued operations.
ACTUANT CORPORATION
Reconciliation of GAAP measures to non-GAAP measures
(In thousands, except per share amounts)
FISCAL 2003
---------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
---------------------------------------------
NET EARNINGS EXCLUDING
DISCONTINUED OPERATIONS
AND SPECIAL ITEMS (1)
NET EARNINGS (GAAP
MEASURE) $1,856 $7,116 $9,977 $10,017 $28,966
DISCONTINUED
OPERATIONS (NET OF
TAX) - - - - -
---------------------------------------------
NET EARNINGS FROM
CONTINUING OPERATIONS 1,856 7,116 9,977 10,017 28,966
DEBT EXTINGUISHMENT
COSTS (NET OF TAX) 1,273 - - - 1,273
LITIGATION MATTERS
RELATED TO
BUSINESSES DIVESTED
PRIOR TO THE
SPIN-OFF OF APW
LTD. (NET OF TAX) 4,708 - (516) - 4,192
---------------------------------------------
NET EARNINGS EXCLUDING
SPECIAL ITEMS (NON-
GAAP MEASURE) $7,837 $7,116 $9,461 $10,017 $34,431
=============================================
DILUTED EARNINGS PER SHARE
EXCLUDING DISCONTINUED
OPERATIONS AND SPECIAL
ITEMS (1)
NET EARNINGS (GAAP
MEASURE) $0.08 $0.29 $0.41 $0.41 $1.18
DISCONTINUED
OPERATIONS (NET OF
TAX) - - - - -
---------------------------------------------
NET EARNINGS FROM
CONTINUING OPERATIONS 0.08 0.29 0.41 0.41 1.18
DEBT EXTINGUISHMENT
COSTS (NET OF TAX) 0.05 - - - 0.05
LITIGATION MATTERS
RELATED TO
BUSINESSES DIVESTED
PRIOR TO THE
SPIN-OFF OF APW
LTD. (NET OF TAX) 0.19 - (0.02) - 0.18
---------------------------------------------
NET EARNINGS EXCLUDING
SPECIAL ITEMS (NON-
GAAP MEASURE) $0.32 $0.29 $0.39 $0.41 $1.41
=============================================
EBITDA EXCLUDING
DISCONTINUED OPERATIONS
AND SPECIAL ITEMS (2)
NET EARNINGS (GAAP
MEASURE) $1,856 $7,116 $9,977 $10,017 $28,966
DISCONTINUED
OPERATIONS (NET OF
TAX) - - - - -
---------------------------------------------
NET EARNINGS FROM
CONTINUING OPERATIONS 1,856 7,116 9,977 10,017 28,966
NET FINANCING COSTS 5,662 5,443 5,177 5,148 21,430
INCOME TAX EXPENSE 1,067 4,025 5,482 5,350 15,924
DEPRECIATION &
AMORTIZATION 3,689 3,820 3,632 3,926 15,067
MINORITY INTEREST 83 197 70 (123) 227
---------------------------------------------
EBITDA (NON-GAAP
MEASURE) 12,357 20,601 24,338 24,318 81,614
SPECIAL ITEMS (3) 9,274 - (798) - 8,476
---------------------------------------------
EBITDA EXCLUDING
SPECIAL ITEMS (NON-
GAAP MEASURE) $21,631 $20,601 $23,540 $24,318 $90,090
=============================================
FISCAL 2004
---------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
---------------------------------------------
NET EARNINGS EXCLUDING
DISCONTINUED OPERATIONS
AND SPECIAL ITEMS (1)
NET EARNINGS (GAAP
MEASURE) $293 $8,758 $7,466 $18,306 $34,823
DISCONTINUED
OPERATIONS (NET OF
TAX) - - - (10,933) (10,933)
---------------------------------------------
NET EARNINGS FROM
CONTINUING OPERATIONS 293 8,758 7,466 7,373 23,890
DEBT EXTINGUISHMENT
COSTS (NET OF TAX) 9,795 1,479 6,791 7,084 25,149
LITIGATION MATTERS
RELATED TO
BUSINESSES DIVESTED
PRIOR TO THE
SPIN-OFF OF APW
LTD. (NET OF TAX) - - - - -
---------------------------------------------
NET EARNINGS EXCLUDING
SPECIAL ITEMS (NON-
GAAP MEASURE) $10,088 $10,237 $14,257 $14,457 $49,039
=============================================
DILUTED EARNINGS PER
SHARE EXCLUDING
DISCONTINUED
OPERATIONS AND SPECIAL
ITEMS (1)
NET EARNINGS (GAAP
MEASURE) $0.01 $0.35 $0.30 $0.75 $1.41
DISCONTINUED
OPERATIONS (NET OF
TAX) - - - (0.45) (0.44)
---------------------------------------------
NET EARNINGS FROM
CONTINUING OPERATIONS 0.01 0.35 0.30 0.30 0.97
DEBT EXTINGUISHMENT
COSTS (NET OF TAX) 0.40 0.06 0.28 0.29 1.02
LITIGATION MATTERS
RELATED TO
BUSINESSES DIVESTED
PRIOR TO THE
SPIN-OFF OF APW
LTD. (NET OF TAX) - - - - -
---------------------------------------------
NET EARNINGS EXCLUDING
SPECIAL ITEMS (NON-
GAAP MEASURE) $0.41 $0.41 $0.58 $0.59 $1.99
=============================================
EBITDA EXCLUDING
DISCONTINUED OPERATIONS
AND SPECIAL ITEMS (2)
NET EARNINGS (GAAP
MEASURE) $293 $8,758 $7,466 $18,306 $34,823
DISCONTINUED
OPERATIONS (NET OF
TAX) - - - (10,933) (10,933)
---------------------------------------------
NET EARNINGS FROM
CONTINUING OPERATIONS 293 8,758 7,466 7,373 23,890
NET FINANCING COSTS 4,391 3,877 2,900 2,391 13,559
INCOME TAX EXPENSE 283 4,660 4,428 5,305 14,676
DEPRECIATION &
AMORTIZATION 3,934 4,254 4,066 4,343 16,597
MINORITY INTEREST 233 (29) (61) 116 259
---------------------------------------------
EBITDA (NON-GAAP
MEASURE) 9,134 21,520 18,799 19,528 68,981
SPECIAL ITEMS (3) 15,069 2,268 9,940 9,458 36,735
---------------------------------------------
EBITDA EXCLUDING
SPECIAL ITEMS (NON-
GAAP MEASURE) $24,203 $23,788 $28,739 $28,986 $105,716
=============================================
(1) Net earnings and diluted earnings per share excluding discontinued
operations and special items represent net earnings and diluted
earnings per share per the Consolidated Statement of Earnings net
of charges or credits for items that are not representative of the
normal recurring operations of the current portfolio of Actuant
companies. These items include results from discontinued
operations, expenses recorded to extinguish debt entered into at
the time of the spin-off and litigation charges related to matters
associated with businesses divested prior to the spin-off. 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.
(2) EBITDA represents net earnings before net financing costs, income
tax expense, depreciation & amortization and minority interest.
EBITDA excluding discontinued operations and special items is net
of charges or credits that are not representative of the normal
recurring operations of the current portfolio of Actuant
companies. These special items include results from discontinued
operations, expenses recorded to extinguish debt entered into at
the time of the spin-off and litigation charges related to matters
associated with businesses divested prior to the spin-off. 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 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.
(3) First quarter 2003 special items include a $2.0 million charge
related to the early redemption of debt and a $7.3 million charge
related to litigation for business units divested prior to the
July 31, 2000 spin-off. Third quarter 2003 special items
represents an $0.8 million reversal of a portion of the $7.3
million first quarter charge for the favorable settlement of such
litigation. First, third and fourth quarter 2004 special items
represents charges related to the early redemption of debt. Second
quarter 2004 special items represents the non-cash charge
attributable to the write-off of remaining debt issuance costs
associated with the senior secured credit facility that was
replaced during February 2004.
CONTACT: Actuant Corporation
Andrew Lampereur, 414-352-4160