Exhibit 99.1
Actuant Announces Record Results, Adoption of Stock Option Accounting Rule
MILWAUKEE--(BUSINESS WIRE)--June 16, 2005--Actuant Corporation
(NYSE:ATU) today announced record sales and earnings for its third
quarter ended May 31, 2005. Third quarter fiscal 2005 net earnings and
diluted earnings per share ("EPS") were $20.8 million and $0.68,
respectively. This compares to net earnings and EPS of $7.5 million
and $0.29, respectively, for the third quarter of fiscal 2004, which
included a charge of $9.9 million ($6.8 million after tax or $0.24 per
diluted share) attributable to the early extinguishment of debt.
Excluding the prior year debt extinguishment charge, third quarter
fiscal 2005 EPS grew 28% to $0.68 from $0.53 in the comparable prior
year period.
Net earnings for the nine months ended May 31, 2005 were $54.1
million, or $1.85 per diluted share, compared to $16.5 million, or
$0.65 per diluted share for the comparable prior year period. The
Company recorded net of tax special charges of $18.1 million or $0.66
per diluted share, in the nine-month period ended May 31, 2004,
related to the early extinguishment of debt. Excluding these special
charges, fiscal 2005 year-to-date net earnings and EPS are more than
40% higher than the prior year period's $34.6 million of net income
and $1.31 per EPS.
Third quarter sales increased approximately 38% to $271.7 million
compared to $196.5 million in the prior year, driven by the results of
recently acquired businesses. Excluding foreign currency exchange rate
changes, third quarter core sales (year-over-year sales in both
existing and acquired businesses) decreased approximately 1% from the
comparable prior year period. As a result of the expected sales
declines in the Company's automotive convertible top and recreational
vehicle businesses, third quarter sales for businesses owned at least
twelve months declined 7% compared to the prior year, again excluding
foreign currency rate changes. Sales for the nine-months ended May 31,
2005 were a record $706.7 million, approximately 31% higher than the
$539.1 million in the comparable prior year period, reflecting sales
volume added through current year business acquisitions. Excluding the
impact of foreign currency rate changes on translated results, core
sales for the nine-month period increased 2% and sales from businesses
owned at least twelve months decreased 1%.
The Company also announced that it will be adopting the provisions
of Financial Accounting Standards Board Statement No. 123R,
"Accounting for Stock Based Compensation" in the fourth quarter of
fiscal 2005 using the modified retrospective method. Under this
adoption method, the first three quarters of fiscal 2005 will be
restated in the fourth quarter to reflect expense for stock based
compensation as required under the new rule. The total impact of the
new accounting rule on fiscal 2005 is an estimated $2.7 million
non-cash reduction to net income or a $0.09 per share reduction in
EPS. The Company believes that the approximate 3.5% EPS dilution from
the new accounting rule is in line with its multi-industry peers.
Robert C. Arzbaecher, President and CEO of Actuant, commented,
"Actuant's third quarter results were above our expectations, despite
sizeable sales declines in two of our end-markets. Going into the
quarter, we knew both our RV and convertible top businesses would be
challenged with lower sales volume. However, solid performance from
other businesses, including our industrial tools, truck and recently
acquired businesses, as well as acquisition synergies more than offset
the 20% third quarter sales decline in convertible tops and 30%
decline in RV sales. We expect the RV and automotive convertible top
businesses to report continued negative sales comparisons in the next
quarter or two, with rebounds near the end of calendar 2005 when we
launch production of new convertible top platforms and expect RV
motorhome OEMs to increase production levels to match retail demand."
He continued, "We are very pleased with the Company's performance
during the quarter. Our geographic and end-market diversity helped
drive record sales and EPS. The 28% EPS growth in the third quarter,
excluding debt extinguishment costs last year, represents our
sixteenth consecutive quarter of year-over-year EPS growth.
Additionally, we had a strong cash flow quarter driven by great
earnings conversion and working capital management. This year's
acquisitions all contributed to the record results, and I am happy
with the progress we are making in integrating these new businesses
into Actuant. We have been successful in leveraging cost synergies
from the new businesses, while at the same time investing in promising
growth opportunities."
Arzbaecher concluded, "We are well positioned for continued growth
at Actuant, and fiscal 2006 should be another record year for the
Company. We expect to end fiscal 2005 with sales of $965-$975 million
and EPS of $2.36-$2.41. These estimates reflect both the benefit of
the recently completed Hydratight Sweeney acquisition and the reduced
earnings from adopting the new stock option accounting rule. Our
initial fiscal 2006 EPS guidance is $2.75-$3.00, 15%-25% above our
fiscal 2005 EPS estimate. Fiscal 2006 sales are expected to be in the
$1.15-$1.175 billion range, reflecting the full year benefit of fiscal
2005 acquisitions, and assuming no further acquisitions, a slightly
stronger US dollar and sales growth excluding foreign currency rate
changes for both existing and newly acquired businesses of 4%-5%. As
we approach the fifth anniversary of the July 31, 2000 spin-off, we
are pleased with the Company's strong earnings growth track record and
the progress being made in creating a world class industrial company."
Net debt at May 31, 2005 was approximately $473 million (gross
debt of $480 million less approximately $7 million of cash), compared
to $405 million at the beginning of the quarter. Fiscal 2005 third
quarter and year-to-date operating cash flow was $29.6 million and
$55.6 million, respectively, both in excess of net income. The
increase in debt during the quarter was attributable to the $95
million of borrowings to fund the Hydratight Sweeney acquisition,
partially offset by third quarter operating cash flow. Availability
under the Company's revolving credit facility was approximately $172
million at May 31, 2005.
Actuant's fiscal 2005 third quarter operating profit was $35.0
million, 39% higher than the $25.2 million in the third quarter of
last year. Operating profit margin increased from 12.8% in the third
quarter of last year to 12.9% in the current year, the result of
favorable acquisition and sales mix, partially offset by buyback and
reset costs in the electrical businesses.
Third quarter Tools & Supplies segment sales were $158.2 million,
a 44% increase over fiscal 2004. Excluding currency exchange rate
changes, core segment sales increased approximately 5%, and sales from
businesses owned more than twelve months were even with the comparable
prior year period. Fiscal 2005 third quarter Engineered Solutions
segment sales increased 31% over the prior year to $113.5 million, due
to acquisitions. Excluding the impact of foreign currency rate
changes, Engineered Solutions segment core sales decreased
approximately 8% compared to the prior year and sales from businesses
owned more than twelve months declined 15% compared to the third
quarter of fiscal 2004, both the result of lower sales to automotive
convertible top and RV motorhome OEMs.
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, June
16, and may be listened to via web cast on Actuant's website at
www.actuant.com.
About Actuant
Actuant, headquartered in Glendale, Wisconsin, is a diversified
industrial company with operations in 32 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 Inc., 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 run rate 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.
(tables follow)
Actuant Corporation
Condensed Consolidated Balance Sheets
(Dollars in thousands)
May 31, August 31,
2005 2004
----------- -----------
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $6,884 $6,033
Accounts receivable, net 139,219 90,433
Inventories, net 139,418 87,074
Deferred income taxes 16,073 11,126
Other current assets 7,667 7,648
----------- -----------
Total current assets 309,261 202,314
Property, plant and equipment, net 80,698 47,972
Goodwill 424,669 145,387
Other intangible assets, net 187,657 22,127
Other long-term assets 9,240 6,336
----------- -----------
Total assets $1,011,525 $424,136
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings $909 $960
Trade accounts payable 89,269 64,165
Accrued compensation and benefits 31,487 21,401
Income taxes payable 10,918 9,608
Current maturities of long-term debt 2,008 3,863
Other current liabilities 46,033 34,627
----------- -----------
Total current liabilities 180,624 134,624
Long-term debt, less current maturities 476,831 189,068
Deferred income taxes 69,098 8,376
Pension and postretirement benefit accruals 35,015 28,862
Other long-term liabilities 20,278 31,429
Shareholders' equity
Capital stock 5,395 4,753
Additional paid-in capital (377,493) (518,321)
Accumulated other comprehensive income
(loss) (15,243) (17,600)
Stock held in trust (1,126) (806)
Deferred compensation liability 1,126 806
Retained earnings 617,020 562,945
----------- -----------
Total shareholders' equity 229,679 31,777
----------- -----------
Total liabilities and shareholders' equity $1,011,525 $424,136
=========== ===========
Actuant Corporation
Condensed Consolidated Statements of Earnings
(In thousands except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
May 31, May 31,
2005 2004 2005 2004
-------------------- --------------------
Net sales $271,733 $196,481 $706,677 $539,087
Cost of products sold 185,036 134,766 481,734 367,959
-------------------- --------------------
Gross profit 86,697 61,715 224,943 171,128
Selling, administrative and
engineering expenses 50,050 35,943 131,257 103,328
Amortization of intangible
assets 1,610 594 3,476 1,728
-------------------- --------------------
Operating profit 35,037 25,178 90,210 66,072
Financing costs, net 4,936 2,900 10,781 11,168
Charge for early
extinguishment of debt - 9,940 - 27,277
Other (income) expense, net 435 505 (744) 1,596
-------------------- --------------------
Earnings before income
tax expense and
minority interest 29,666 11,833 80,173 26,031
Income tax expense 9,150 4,428 26,617 9,371
Minority interest, net of
income taxes (234) (61) (519) 143
-------------------- --------------------
Net earnings $20,750 $7,466 $54,075 $16,517
==================== ====================
Earnings per share
Basic $0.77 $0.31 $2.11 $0.70
Diluted $0.68 $0.29 $1.85 $0.65
Weighted average common
shares outstanding
Basic 26,956 23,703 25,663 23,615
Diluted 31,438 28,273 30,165 27,503
Actuant Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended Nine Months Ended
------------------- -------------------
May 31, May 31, May 31, May 31,
2005 2004 2005 2004
--------- --------- --------- ---------
Operating Activities
Net earnings $20,750 $7,466 $54,075 $16,517
Adjustments to reconcile net
earnings to net cash provided
by operating activities:
Depreciation and amortization 6,448 4,066 16,245 12,254
Amortization of debt discount
and debt issuance costs 359 284 936 1,126
Write-off of debt discount
and debt issuance costs in
conjunction with early
extinguishment of debt - 880 - 4,445
Provision for deferred
income taxes 722 2,004 570 1,788
(Gain) loss on disposal of
assets 145 - (151) 137
Changes in operating assets
and liabilities, excluding
the effects of the
business acquisitions:
Accounts receivable (4,509) 2,061 (11,753) (6,329)
Increase in accounts
receivable securitization
program 1,790 - 21,070 3,444
Inventories 4,525 (2,983) (5,513) (4,244)
Prepaid expenses and other
assets 349 (305) 3,085 (1,357)
Trade accounts payable 4,304 6,264 (1,548) 2,717
Income taxes payable (2,920) 312 3,100 (4,334)
Reimbursement of tax
refund to former
subsidiary - - (15,837) -
Other accrued liabilities (2,326) 1,961 (8,705) (2,757)
--------- --------- --------- ---------
Net cash provided by operating
activities (a) 29,637 22,010 55,574 23,407
Investing Activities
Proceeds from sale of
property, plant and equipment - - 2,839 14,601
Capital expenditures (3,558) (2,099) (11,505) (8,000)
Cash paid for business
acquisitions, net of cash
acquired (94,808) - (381,955) (65,100)
--------- --------- --------- ---------
Net cash used in investing
activities (98,366) (2,099) (390,621) (58,499)
Financing Activities
Partial redemptions of 13%
senior subordinated notes - (31,543) - (80,897)
Net proceeds from 2%
convertible senior
subordinated note offering - - - 144,994
Net borrowings on revolving
credit facilities and
short-term borrowings 72,077 13,711 17,881 26,059
Gross proceeds from issuance
of term loans - - 250,000 -
Proceeds from euro-denominated
acquisition loan - - 19,602 -
Principal payments on term
loans (827) (74) (3,045) (54,443)
Redemption of Key Components,
Inc. 10.5% senior notes - - (82,800)
Payments from early
termination of interest
rate swaps - (1,016) - (1,016)
Debt issuance costs - (147) (2,300) (1,270)
Net proceeds from Class A
common stock offering - - 134,360 -
Stock option exercises and
other 500 737 2,056 1,566
--------- --------- --------- ---------
Net cash provided by (used in)
financing activities 71,750 (18,332) 335,754 34,993
Effect of exchange rate
changes on cash (206) 45 144 257
--------- --------- --------- ---------
Net increase in cash and cash
equivalents 2,815 1,624 851 158
Cash and cash equivalents -
beginning of period 4,069 3,127 6,033 4,593
--------- --------- --------- ---------
Cash and cash equivalents -
end of period $6,884 $4,751 $6,884 $4,751
========= ========= ========= =========
(a) Includes the net of tax cash impact of 13% senior subordinated
note redemptions of $6.0 and $14.4 million for the three and nine
months ended May 31, 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%
ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA
(US dollars, in thousands)
(continued)
FISCAL 2005
----------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
----------------------------------------------
SALES
TOOLS & SUPPLIES
SEGMENT $112,537 $138,546 $158,211 $409,294
ENGINEERED SOLUTIONS
SEGMENT 87,140 96,721 113,522 297,383
----------------------------------------------
TOTAL REPORTED
SALES $199,677 $235,267 $271,733 $- $706,677
==============================================
% SALES GROWTH
TOOLS & SUPPLIES
SEGMENT 16.8% 33.8% 43.9%
ENGINEERED SOLUTIONS
SEGMENT 24.0% 33.5% 31.2%
TOTAL REPORTED
SALES 19.9% 33.7% 38.3%
OPERATING PROFIT
TOOLS & SUPPLIES
SEGMENT $17,718 $19,928 $22,245 $59,891
ENGINEERED SOLUTIONS
SEGMENT 12,205 10,960 16,264 39,429
CORPORATE / GENERAL (2,644) (2,994) (3,472) (9,110)
----------------------------------------------
TOTAL REPORTED
RESULTS $27,279 $27,894 $35,037 $- $90,210
==============================================
OPERATING PROFIT %
TOOLS & SUPPLIES
SEGMENT 15.7% 14.4% 14.1% 14.6%
ENGINEERED SOLUTIONS
SEGMENT 14.0% 11.3% 14.3% 13.3%
TOTAL (INCLUDING
CORPORATE) 13.7% 11.9% 12.9% 12.8%
EBITDA EXCLUDING SPECIAL
ITEMS
TOOLS & SUPPLIES
SEGMENT $19,487 $22,866 $25,940 $68,293
ENGINEERED SOLUTIONS
SEGMENT 13,509 13,503 18,316 45,328
CORPORATE / GENERAL (400) (2,816) (3,206) (6,422)
----------------------------------------------
EBITDA EXCLUDING
SPECIAL ITEMS 32,596 33,553 41,050 - 107,199
SPECIAL ITEMS (1) - - - -
----------------------------------------------
EBITDA (2) $32,596 $33,553 $41,050 $- $107,199
==============================================
EBITDA %
TOOLS & SUPPLIES
SEGMENT 17.3% 16.5% 16.4% 16.7%
ENGINEERED SOLUTIONS
SEGMENT 15.5% 14.0% 16.1% 15.2%
TOTAL EXCLUDING
SPECIAL ITEMS
(INCLUDING
CORPORATE) 16.3% 14.3% 15.1% 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 $20,750 $54,075
DISCONTINUED
OPERATIONS
(NET OF TAX) - - - -
---------------------------------------------
NET EARNINGS FROM
CONTINUING OPERATIONS 17,506 15,819 20,750 - 54,075
DEBT EXTINGUISHMENT
COSTS (NET OF TAX) - - - -
---------------------------------------------
NET EARNINGS EXCLUDING
SPECIAL ITEMS
(NON-GAAP MEASURE) $17,506 $15,819 $20,750 $- $54,075
=============================================
DILUTED EARNINGS PER
SHARE EXCLUDING
DISCONTINUED OPERATIONS
AND SPECIAL ITEMS (1)
NET EARNINGS
(GAAP MEASURE) $0.64 $0.54 $0.68 $1.85
DISCONTINUED
OPERATIONS
(NET OF TAX) - - -
---------------------------------------------
NET EARNINGS FROM
CONTINUING OPERATIONS 0.64 0.54 0.68 - 1.85
DEBT EXTINGUISHMENT
COSTS (NET OF TAX) - - -
---------------------------------------------
NET EARNINGS EXCLUDING
SPECIAL ITEMS
(NON-GAAP MEASURE) $0.64 $0.54 $0.68 $- $1.85
=============================================
EBITDA EXCLUDING
DISCONTINUED OPERATIONS
AND SPECIAL ITEMS (2)
NET EARNINGS
(GAAP MEASURE) $17,506 $15,819 $20,750 $54,075
DISCONTINUED
OPERATIONS
(NET OF TAX) - - - -
---------------------------------------------
NET EARNINGS FROM
CONTINUING OPERATIONS 17,506 15,819 20,750 - 54,075
NET FINANCING COSTS 1,938 3,907 4,936 10,781
INCOME TAX EXPENSE 9,110 8,357 9,150 26,617
DEPRECIATION &
AMORTIZATION 4,098 5,699 6,448 16,245
MINORITY INTEREST (56) (229) (234) (519)
---------------------------------------------
EBITDA
(NON-GAAP MEASURE) 32,596 33,553 41,050 - 107,199
SPECIAL ITEMS (3) - - - -
---------------------------------------------
EBITDA EXCLUDING
SPECIAL ITEMS
(NON-GAAP MEASURE) $32,596 $33,553 $41,050 $- $107,199
=============================================
(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