Exhibit 99.1
Actuant Announces Record Second Quarter Results
MILWAUKEE--(BUSINESS WIRE)--March 17, 2005--Actuant Corporation
(NYSE:ATU) today announced results for its second quarter ended
February 28, 2005. Second quarter fiscal 2005 net earnings and diluted
earnings per share ("EPS") were $15.8 million and $0.54, respectively.
This compares to net earnings and EPS of $8.8 million and $0.33,
respectively, for the second quarter of fiscal 2004, which included a
charge of $2.3 million ($1.5 million after tax or $0.05 per diluted
share) attributable to the early extinguishment of debt. Excluding the
prior year debt extinguishment charge, second quarter fiscal 2005 EPS
grew 42% to $0.54 from $0.38 in the prior year.
Net earnings for the six-months ended February 28, 2005 were $33.3
million, or $1.17 per diluted share, compared to $9.1 million, or
$0.36 per diluted share for the comparable prior year period. The
Company recorded net of tax special charges of $11.3 million or $0.42
per diluted share, in the six-month period ended February 29, 2004,
related to the early extinguishment of debt. Excluding these special
charges, net earnings and EPS for the first half of fiscal 2005 were
$33.3 million and $1.17 per diluted share, compared to $20.4 million
and $0.78 per diluted share, respectively, in the prior year.
Second quarter sales increased approximately 34% to $235.3 million
compared to $176.0 million in the prior year. Current year results
include those from recently acquired businesses including Dresco B.V.,
Yvel S.A., A.W. Sperry Instruments, Inc., Key Components, Inc.
("KCI"), and Hedley Purvis Ltd. Excluding foreign currency exchange
rate changes, second quarter core sales increased approximately 3%
over the comparable prior year period. Core sales growth is defined as
the year-over-year sales growth in both existing and acquired
businesses. Sales for the six months ended February 28, 2005 were a
record $434.9 million, approximately 27% higher than the $342.6
million in the comparable prior year period. Excluding the impact of
foreign currency rate changes on translated results, core sales for
the six-month period increased 4%.
Robert C. Arzbaecher, President and CEO of Actuant, commented,
"This was a very busy quarter for Actuant with three acquisitions, an
equity offering and new senior debt. I am happy with the second
quarter results, including the 42% EPS growth ignoring debt
extinguishment costs last year. This represents the 15th consecutive
quarter of year-over-year growth in diluted EPS, excluding special
items."
Arzbaecher continued, "In addition to acquisitions, Actuant's
second quarter results benefited from economic improvement from a year
ago in North America and Asia. Continued strong demand in the
industrial high force hydraulic tools (Enerpac) and heavy-duty truck
(Power-Packer) markets, as well as a number of the KCI business units,
offset weaknesses in Europe and the recreational vehicle ("RV")
market. Our sales in Europe were not as robust, which we attribute to
weaker economic conditions in that region. Despite overall core sales
growth, we saw slower demand in a few of our markets, including RV,
which was down 34% from a strong second quarter last year, and
automotive convertible top, which had 2% year-over-year quarterly
sales growth. Actuant's end-market diversity continues to be an
important attribute; we have businesses in various geographic areas
and markets that are performing differently, yet in total we are still
generating record sales and earnings."
All EPS disclosures include the previously disclosed adoption of
the provisions of Emerging Issues Task Force Issue 04-08, "The Effect
of Contingently Convertible Instruments on Diluted Earnings per Share"
("EITF 04-08") in the quarter ended February 28, 2005. Actuant's 2%
Contingent Convertible Debentures ("the 2% Co-Cos") are convertible at
the option of the holder into shares of Actuant Class A Common Stock
once the common stock trades above $47.89 for a specified period of
time (a market price trigger). This new accounting rule requires
companies with contingently convertible debt instruments to include
the dilutive effect of the contingently convertible debt in diluted
earnings per share calculations regardless of whether the market price
trigger has been met. In accordance with the EITF 04-08, Actuant
restated its diluted earnings per share for fiscal 2004, when the 2%
Co-Cos were issued, as well as fiscal 2005 first quarter results.
Actuant's operating profit in the second quarter of fiscal 2005
was $27.9 million, or 38% higher than the $20.2 million in the second
quarter of last year. Operating profit margin increased from 11.5% in
the second quarter of last year to 11.9% in the current year. Second
quarter Tools & Supplies segment sales were $138.5 million, a 34%
increase over fiscal 2004. Excluding the weaker U.S. dollar, core
segment sales increased approximately 5%. Engineered Solutions segment
sales for the second quarter also increased 34% over the prior year to
$96.7 million due mainly to foreign currency rate changes and
acquisitions. Excluding the impact of foreign currency rate changes,
Engineered Solutions segment core sales approximated the prior year.
Total debt at February 28, 2005 was approximately $409 million.
Net debt (total debt less approximately $4 million of cash) was $405
million, compared to $205 million at the beginning of the quarter. The
increase is the result of acquisitions, partially offset by second
quarter operating cash flow, a $19 million increase in accounts
receivable securitization program sales, and the proceeds from the
Company's December 2004 follow-on equity offering. The Company had
availability under its revolving credit facility of $246 million at
February 28, 2005.
The Company also provided updated sales and earnings guidance for
fiscal 2005, including the impact of previously announced acquisitions
and EITF 04-08. Fiscal 2005 sales are expected to be in the range of
$960-$970 million, and EPS in the $2.40-$2.50 per share range. Third
quarter sales are forecasted to be in the $265-$270 million range, and
should generate EPS of approximately $0.61-$0.66 per share.
Arzbaecher said. "Our revised guidance reflects the benefit of the
acquisitions we completed in the second quarter, as well as the new
Co-Co accounting rule, which essentially have an offsetting effect on
one-another in terms of fiscal 2005 EPS. Our current estimates would
result in a 30%-35% increase in EPS for fiscal 2005, which represents
our fourth consecutive year of meeting or exceeding our stated goal of
increasing EPS, excluding special items, by 15%-20% annually. We are
very excited about Actuant's future growth prospects, and the
strategic nature of the three acquisitions we completed this quarter.
Acquisition integration activities are proceeding on schedule and we
are confident we will be successful in creating long term value from
these transactions."
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 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.
An investor conference call is scheduled for 11am ET today, March
17, and may be listened to via webcast on Actuant's Web site at
www.actuant.com.
About Actuant
Actuant, headquartered in Glendale, Wisconsin, is a diversified
industrial company with operations in more than 25 countries. The
Actuant businesses are market leaders in highly engineered position
and motion control systems and branded hydraulic and electrical tools
and supplies. Formerly known as Applied Power, Actuant was created in
2000 after the spin-off of Applied Power's electronics business
segment into a separate public company called APW Ltd. Since 2000,
Actuant has grown its sales from $482 million to over $1 billion and
its market capitalization from $113 million to over $1.4 billion. The
company employs a workforce of more than 5,000 worldwide. Actuant
Corporation trades on the NYSE under the symbol ATU. For further
information on Actuant and its business units, visit the Company's
Web site at www.actuant.com.
Actuant Corporation
Condensed Consolidated Balance Sheets
(Dollars in thousands)
February 28, August 31,
2005 2004
------------ ------------
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $4,069 $6,033
Accounts receivable, net 129,445 90,433
Inventories, net 143,996 87,074
Deferred income taxes 15,977 11,126
Other current assets 7,236 7,648
------------ ------------
Total current assets 300,723 202,314
Property, plant and equipment, net 76,583 47,972
Goodwill 352,994 145,387
Other intangible assets, net 143,812 22,127
Other long-term assets 10,367 6,336
------------ ------------
Total assets $884,479 $424,136
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings $2,541 $960
Trade accounts payable 82,569 64,165
Accrued compensation and benefits 26,230 21,401
Income taxes payable 13,751 9,608
Current maturities of long-term debt 2,155 3,863
Other current liabilities 52,949 34,627
------------ ------------
Total current liabilities 180,195 134,624
Long-term debt, less current maturities 404,031 189,068
Deferred income taxes 29,646 8,376
Pension and postretirement benefit accruals 36,040 28,862
Other long-term liabilities 18,965 31,429
Shareholders' equity
Capital stock 5,389 4,753
Additional paid-in capital (378,341) (518,321)
Accumulated other comprehensive income
(loss) (7,716) (17,600)
Stock held in trust (1,172) (806)
Deferred compensation liability 1,172 806
Retained earnings 596,270 562,945
------------ ------------
Total shareholders' equity 215,602 31,777
------------ ------------
Total liabilities and shareholders' equity $884,479 $424,136
============ ============
Actuant Corporation
Condensed Consolidated Statements of Earnings
(In thousands except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
February 28, February 29, February 28, February 29,
2005 2004 2005 2004
-------------------------- --------------------------
Net sales $235,267 $176,022 $434,944 $342,606
Cost of products
sold 160,848 121,227 296,698 233,193
-------------------------- --------------------------
Gross profit 74,419 54,795 138,246 109,413
Selling,
administrative
and engineering
expenses 45,250 34,036 81,207 67,385
Amortization of
intangible
assets 1,275 587 1,866 1,134
-------------------------- --------------------------
Operating
profit 27,894 20,172 55,173 40,894
Financing costs,
net 3,907 3,877 5,845 8,268
Charge for early
extinguishment
of debt - 2,268 - 17,337
Other (income)
expense, net 40 638 (1,179) 1,091
-------------------------- --------------------------
Earnings from
operations
before income
Tax expense and
minority
interest 23,947 13,389 50,507 14,198
Income tax
expense 8,357 4,660 17,467 4,943
Minority
interest, net of
income taxes (229) (29) (285) 204
-------------------------- --------------------------
Net earnings $15,819 $8,758 $33,325 $9,051
========================== ==========================
Earnings per share
Basic $0.61 $0.37 $1.33 $0.38
Diluted 0.54 0.33 1.17 0.36
Weighted average
common shares
outstanding
Basic 26,103 23,601 25,003 23,580
Diluted 30,642 28,670 29,516 27,122
Actuant Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended Six Months Ended
------------------------- -------------------------
February 28, February 29, February 28, February 29,
2005 2004 2005 2004
------------ ------------ ------------ ------------
Operating
Activities
Net earnings $15,819 $8,758 $33,325 $9,051
Adjustments to
reconcile net
earnings to net
cash provided by
operating
activities:
Depreciation and
amortization 5,699 4,254 9,797 8,188
Amortization of
debt discount and
debt issuance
costs 332 468 577 842
Write-off of debt
discount and debt
issuance costs in
conjunction
with early
extinguishment of
debt - 2,180 - 3,565
Provision for
deferred income
taxes (701) (1,036) (152) (216)
(Gain) loss on
disposal of assets (117) 67 (296) 137
Changes in
operating assets
and liabilities,
excluding the
effects of the
business
acquisitions:
Accounts receivable 3,790 3,409 (7,244) (8,390)
Increase in
accounts
receivable
securitization
program 19,280 - 19,280 3,444
Inventories (4,711) 1,152 (10,038) (1,261)
Prepaid expenses
and other assets (1,049) (726) 2,736 (1,052)
Trade accounts
payable (2,362) (3,411) (4,302) (3,547)
Income taxes
payable 810 1,189 6,020 (4,646)
Reimbursement to
former subsidiary
of tax refund - - (15,837) -
Other accrued
liabilities (2,984) (1,287) (6,379) (4,718)
------------ ------------ ------------ ------------
Net cash provided
by operating
activities (a) 33,806 15,017 27,487 1,397
Investing Activities
Proceeds from sale
of property, plant
and equipment 2,482 14,601 2,839 14,601
Capital
expenditures (4,764) (3,016) (7,947) (5,901)
Cash paid for
business
acquisitions, net
of cash acquired (278,195) (31,903) (287,147) (65,100)
------------ ------------ ------------ ------------
Net cash used in
investing
activities (280,477) (20,318) (292,255) (56,400)
Financing Activities
Partial redemptions
of 13% senior
subordinated notes - - - (49,354)
Net proceeds from
2% convertible
senior
subordinated note
offering - (222) - 144,994
Net borrowings
(repayments) on
revolving credit
facilities and
short-term
borrowings (53,769) 13,533 (36,144) 12,348
Proceeds from
issuance of term
loans 250,000 - 250,000 -
Principal payments
on term loans (2,127) (36,968) (2,218) (54,369)
Retirement of KCI
10.5% Bonds (82,800) - (82,800) -
Debt issuance costs (2,300) (1,123) (2,300) (1,123)
Net proceeds from
Class A common
stock offering 134,360 - 134,360 -
Stock option
exercises and
other 323 471 1,556 829
------------ ------------ ------------ ------------
Net cash provided
by financing
activities 243,687 (24,309) 262,454 53,325
Effect of exchange
rate changes on
cash (35) 45 350 212
------------ ------------ ------------ ------------
Net increase in
cash and cash
equivalents (3,019) (29,565) (1,964) (1,466)
Cash and cash
equivalents -
beginning of
period 7,088 32,692 6,033 4,593
------------ ------------ ------------ ------------
Cash and cash
equivalents - end
of period $4,069 $3,127 $4,069 $3,127
============ ============ ============ ============
(a) Includes the net of tax cash impact of 13% senior subordinated
note redemptions of $0 and $8.4 million for the three and six
months ended February 29, 2004, respectively.
ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA
(US dollars, in thousands)
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%
FISCAL 2005
----------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
----------------------------------------------
SALES
TOOLS & SUPPLIES
SEGMENT $112,537 $138,546 $251,083
ENGINEERED SOLUTIONS
SEGMENT 87,140 96,721 183,861
----------------------------------------------
TOTAL REPORTED SALES $199,677 $235,267 $- $- $434,944
==============================================
% SALES GROWTH
TOOLS & SUPPLIES
SEGMENT 16.8% 33.8%
ENGINEERED SOLUTIONS
SEGMENT 24.0% 33.5%
TOTAL REPORTED SALES 19.9% 33.7%
OPERATING PROFIT
TOOLS & SUPPLIES
SEGMENT $17,718 $19,928 $37,646
ENGINEERED SOLUTIONS
SEGMENT 12,205 10,960 23,165
CORPORATE / GENERAL (2,644) (2,994) (5,638)
----------------------------------------------
TOTAL REPORTED
RESULTS $27,279 $27,894 $- $- $55,173
==============================================
OPERATING PROFIT %
TOOLS & SUPPLIES
SEGMENT 15.7% 14.4% 15.0%
ENGINEERED SOLUTIONS
SEGMENT 14.0% 11.3% 12.6%
TOTAL (INCLUDING
CORPORATE) 13.7% 11.9% 12.7%
EBITDA EXCLUDING SPECIAL ITEMS
TOOLS & SUPPLIES
SEGMENT $19,487 $22,866 $42,353
ENGINEERED SOLUTIONS
SEGMENT 13,509 13,503 27,012
CORPORATE / GENERAL (400) (2,816) (3,216)
----------------------------------------------
EBITDA EXCLUDING
SPECIAL ITEMS 32,596 33,553 - - 66,149
SPECIAL ITEMS (1) - - -
----------------------------------------------
EBITDA (2) $32,596 $33,553 $- $- $66,149
==============================================
EBITDA %
TOOLS & SUPPLIES
SEGMENT 17.3% 16.5% 16.9%
ENGINEERED SOLUTIONS
SEGMENT 15.5% 14.0% 14.7%
TOTAL EXCLUDING
SPECIAL ITEMS
(INCLUDING CORPORATE) 16.3% 14.3% 15.2%
(1) 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 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
---------------------------------------------
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 $0.33 $0.29 $0.67 $1.32
DISCONTINUED
OPERATIONS (NET
OF TAX) - - - (0.39) (0.39)
---------------------------------------------
NET EARNINGS FROM
CONTINUING OPERATIONS 0.01 0.33 0.29 0.28 0.93
DEBT EXTINGUISHMENT
COSTS (NET OF TAX) 0.40 0.05 0.24 0.25 0.91
---------------------------------------------
NET EARNINGS EXCLUDING
SPECIAL ITEMS (NON-GAAP
MEASURE) $0.41 $0.38 $0.53 $0.53 $1.84
=============================================
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
=============================================
FISCAL 2005
---------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
---------------------------------------------
NET EARNINGS EXCLUDING
DISCONTINUED OPERATIONS
AND SPECIAL ITEMS (1)
NET EARNINGS
(GAAP MEASURE) $17,506 $15,819 $33,325
DISCONTINUED
OPERATIONS (NET
OF TAX) - - -
---------------------------------------------
NET EARNINGS FROM
CONTINUING OPERATIONS 17,506 15,819 - - 33,325
DEBT EXTINGUISHMENT
COSTS (NET OF TAX) - - -
---------------------------------------------
NET EARNINGS EXCLUDING
SPECIAL ITEMS (NON-GAAP
MEASURE) $17,506 $15,819 $- $- $33,325
=============================================
DILUTED EARNINGS PER SHARE
EXCLUDING DISCONTINUED
OPERATIONS AND SPECIAL
ITEMS (1)
NET EARNINGS
(GAAP MEASURE) $0.64 $0.54 $1.17
DISCONTINUED
OPERATIONS (NET
OF TAX) - -
---------------------------------------------
NET EARNINGS FROM
CONTINUING OPERATIONS 0.64 0.54 - - 1.17
DEBT EXTINGUISHMENT
COSTS (NET OF TAX) - -
---------------------------------------------
NET EARNINGS EXCLUDING
SPECIAL ITEMS (NON-GAAP
MEASURE) $0.64 $0.54 $- $- $1.17
=============================================
EBITDA EXCLUDING DISCONTINUED
OPERATIONS AND SPECIAL
ITEMS (2)
NET EARNINGS
(GAAP MEASURE) $17,506 $15,819 $33,325
DISCONTINUED
OPERATIONS (NET
OF TAX) - - -
---------------------------------------------
NET EARNINGS FROM
CONTINUING OPERATIONS 17,506 15,819 - - 33,325
NET FINANCING COSTS 1,938 3,907 5,845
INCOME TAX EXPENSE 9,110 8,357 17,467
DEPRECIATION &
AMORTIZATION 4,098 5,699 9,797
MINORITY INTEREST (56) (229) (285)
---------------------------------------------
EBITDA (NON-GAAP
MEASURE) 32,596 33,553 - - 66,149
SPECIAL ITEMS (3) - - -
---------------------------------------------
EBITDA EXCLUDING SPECIAL
ITEMS (NON-GAAP
MEASURE) $32,596 $33,553 $- $- $66,149
=============================================
(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 and expenses recorded to extinguish debt entered into
at the time of 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 and expenses recorded to extinguish debt entered into
at the time of 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, 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