Exhibit 99.1
Actuant Reports Record 4th Quarter and Fiscal 2005 Sales and Earnings
MILWAUKEE--(BUSINESS WIRE)--Sept. 29, 2005--Actuant Corporation
(NYSE:ATU) today announced record sales and earnings for its fourth
quarter and fiscal year ended August 31, 2005. Fourth quarter fiscal
2005 net earnings and diluted earnings per share ("EPS") were $19.1
million and $0.63, respectively. This compares to net earnings and EPS
of $18.3 million and $0.67, respectively, for the fourth quarter of
fiscal 2004. Fiscal 2004 fourth quarter results included a charge of
$7.1 million, net of tax, or $0.25 per diluted share, arising from the
early extinguishment of debt and net income from discontinued
operations of $10.9 million, or $0.39 per diluted share, due to the
release of a reserve for obligations related to the fiscal 2000
spin-off of APW Ltd. (the "Spin-off"). Current year fourth quarter
results include $0.7 million ($0.02 per diluted share) of net expense
resulting from the Company's previously announced adoption of
Financial Accounting Standards Board Statement No. 123R, "Accounting
for Stock Based Compensation" ("SFAS 123R") in the fourth quarter.
Excluding these three items, comparable fourth quarter EPS increased
23% to $0.65 per diluted share this year from $0.53 per diluted share
last year (see attached reconciliation of earnings).
Net earnings for fiscal 2005 were $71.3 million, or $2.42 per
diluted share, compared to $34.8 million, or $1.32 per diluted share
for the prior year. In fiscal 2004, the Company recorded net of tax
special charges of $25.1 million, or $0.91 per diluted share, due to
the early extinguishment of debt and income from discontinued
operations of $10.9 million, net of tax, or $0.39 per diluted share,
due to the release of a reserve for obligations related to the
Spin-off. The Company's adoption of SFAS 123R in fiscal 2005 resulted
in a non-cash reduction to net income of $2.7 million, or $0.09 per
diluted share. Excluding these three items, comparable EPS was $2.51
per diluted share in fiscal 2005, a 36% increase over the $1.84 per
diluted share in the prior year.
Fourth quarter sales increased approximately 44% to $269.4 million
compared to $187.8 million in the prior year. Current year results
include those from Key Components, Inc., Hydratight Sweeney, Hedley
Purvis Holdings Limited, Yvel S.A., and A.W. Sperry Instruments, Inc.,
which were acquired during fiscal 2005. Excluding the impact of
foreign currency exchange rate changes, fourth quarter core sales
(year-over-year sales in both existing and acquired businesses)
decreased approximately 2%. Fourth quarter sales for businesses owned
at least twelve months declined 5% compared to the prior year,
excluding foreign currency rate changes. Both of these declines were
the result of forecasted sales reductions in the recreational vehicle
("RV") and automotive convertible top markets. Excluding sales into
these two markets and foreign currency exchange rate changes, fourth
quarter core sales increased 6%.
Actuant's sales for fiscal 2005 were $976.1 million, approximately
34% higher than the $726.9 million generated in the prior year,
reflecting revenues added through fiscal 2005 business acquisitions.
Excluding the impact of foreign currency rate changes, core sales for
the fiscal year increased 1% and sales from businesses owned at least
twelve months decreased 2%.
Commenting on the results, Robert C. Arzbaecher, Chief Executive
Officer, stated, "Actuant finished fiscal 2005 strongly, driving
another quarter of solid year-over-year earnings growth from
continuing operations. Once again, we saw the benefit of Actuant's
diversity as the year-over-year sales declines in the RV and auto
markets were offset by strength elsewhere. During the fourth quarter,
Actuant benefited from strong performance in its industrial tools
businesses, including the newly acquired bolting businesses
(Hydratight Sweeney and Hedley Purvis), which are enjoying strong
demand from the oil and gas markets. In addition to record results,
fourth quarter cash flow was exceptional, leading to a $41 million
reduction in net debt."
Arzbaecher added, "We are extremely pleased with our progress in
fiscal 2005, including the acquisition of five businesses that
strengthened our existing units, increased portfolio diversification,
provided business expansion opportunities in new markets, and were all
accretive to earnings. On a full-year basis and excluding last year's
13% Senior Subordinated Note buyback charges, the $2.42 diluted
earnings per share from continuing operations in fiscal 2005 was over
30% higher than a year ago, and was the fifth consecutive year of EPS
growth in excess of 15%.
Regarding the outlook for Fiscal 2006, Arzbaecher commented, "We
have confidence in our ability to continue to generate earnings
growth. We are reaffirming our fiscal 2006 guidance, which included
diluted earnings per share of $2.75-$3.00 on sales of $1.15-$1.175
billion. We expect higher earnings growth in the second half of the
year relative to the first half due to the timing of automotive
platform launches and current RV market conditions. First quarter
sales are expected to be in the $270-280 million range, generating EPS
of approximately $0.62-$0.67 per diluted share. We anticipate
generating free cash flow of approximately $100 million in fiscal
2006, which will be used for debt reduction and/or acquisitions."
The Company's strong cash flow drove $41 million of net debt
reduction during the fourth quarter, reducing net debt to
approximately $432 million (gross debt of $442 million less
approximately $10 million of cash). Borrowing availability under the
Company's revolving credit facility remains high, with over $200
million available at August 31, 2005 to fund operating and acquisition
activities.
Fiscal 2005 fourth quarter Tools & Supplies segment sales were
$174.3 million, approximately 64% higher than last year due to strong
industrial tools business growth and acquisition benefit. Excluding
the impact of foreign currency rate changes, year-over-year fourth
quarter Tools & Supplies segment core sales increased 10% and sales
from businesses owned at least twelve months increased 9%. Fourth
quarter fiscal 2005 Engineered Solutions segment sales increased
approximately 17% to $95.1 million, compared to $81.5 million in the
previous year. Excluding the impact of foreign currency rate changes,
fourth quarter Engineered Solutions core sales decreased 19% and sales
from businesses owned at least twelve months decreased 24%, the result
of expected lower sales to automotive convertible top and RV motor
home OEMs.
Year-over-year, Actuant's fiscal 2005 fourth quarter and full
fiscal year operating profit increased 45% to $35.3 million and 36% to
$122.5 million, respectively. These increases are in line with the
corresponding increases in sales. Year-over-year fourth quarter
operating profit margins expanded from 12.9% to 13.1%, despite the
negative impact of stock option expense in fiscal 2005. Excluding
approximately $1.1 million of stock option expense, fourth quarter
operating profit margins increased approximately 60 basis points to
13.5%. Tools & Supplies segment margins expanded due to favorable
sales mix, including acquisitions, partially offset by the impact of
stock option expense. Fourth quarter Engineered Solutions segment
margins also benefited from sales mix attributable to current year
acquisitions, but declined overall due to stock option expense and
lower overhead absorption attributable to reduced sales volumes.
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, overhead 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.
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. 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 billion. The Company
employs a workforce of more than 5,000 worldwide. Actuant Corporation
trades on the New York Stock Exchange 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)
August 31, August 31,
2005 2004
----------- ---------
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $10,356 $6,033
Accounts receivable, net 131,185 90,433
Inventories, net 135,960 87,074
Deferred income taxes 14,974 11,126
Other current assets 6,838 7,648
----------- ---------
Total current assets 299,313 202,314
Property, plant and equipment, net 83,879 47,972
Goodwill 428,285 145,387
Other intangible assets, net 175,001 22,127
Other long-term assets 9,857 6,336
----------- ---------
Total assets $996,335 $424,136
=========== =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings $21 $960
Trade accounts payable 89,506 64,165
Accrued compensation and benefits 32,663 21,401
Income taxes payable 13,791 9,608
Current maturities of long-term debt 136 3,863
Other current liabilities 51,360 34,627
----------- ---------
Total current liabilities 187,477 134,624
Long-term debt, less current maturities 442,661 189,068
Deferred income taxes 60,041 8,376
Pension and postretirement benefit accruals 41,192 28,862
Other long-term liabilities 20,131 31,429
Shareholders' equity
Capital stock 5,410 4,753
Additional paid-in capital (370,875) (518,321)
Accumulated other comprehensive income (loss) (20,282) (17,600)
Restricted stock awards (1,452) -
Stock held in trust (1,166) (806)
Deferred compensation liability 1,166 806
Retained earnings 632,032 562,945
----------- ---------
Total shareholders' equity 244,833 31,777
----------- ---------
Total liabilities and shareholders' equity $996,335 $424,136
=========== =========
Actuant Corporation
Condensed Consolidated Statements of Earnings
(In thousands except per share amounts)
(Unaudited)
Three Months Ended Twelve Months Ended
August 31, August 31,
2005 2004 2005 2004
------------------- --------------------
Net sales $269,389 $187,764 $976,066 $726,851
Cost of products sold 177,767 127,650 659,591 495,609
------------------- --------------------
Gross profit 91,622 60,114 316,475 231,242
Selling, administrative and
engineering expenses 54,613 35,354 188,764 138,682
Amortization of intangible
assets 1,744 493 5,220 2,221
------------------- --------------------
Operating profit 35,265 24,267 122,491 90,339
Financing costs, net 6,146 2,391 16,927 13,559
Charge for early
extinguishment of debt - 9,458 - 36,735
Other (income) expense, net 600 (376) (144) 1,220
------------------- --------------------
Earnings before income tax
expense
and minority interest 28,519 12,794 105,708 38,825
Income tax expense 9,440 5,305 35,012 14,676
Minority interest, net of
income taxes (36) 116 (555) 259
------------------- --------------------
Earnings from Continuing
Operations 19,115 7,373 71,251 23,890
Discontinued Operations, net
of Income Taxes - 10,933 - 10,933
------------------- --------------------
Net earnings $19,115 $18,306 $71,251 $34,823
=================== ====================
Basic Earnings per share
Earnings from Continuing
Operations $0.71 $0.31 $2.74 $1.01
Discontinued Operations,
net of Income Taxes $- $0.46 $- $0.46
------------------- --------------------
Total $0.71 $0.77 $2.74 $1.47
=================== ====================
Diluted Earnings per share
Earnings from Continuing
Operations $0.63 $0.28 $2.42 $0.93
Discontinued Operations,
net of Income Taxes $- $0.39 $- $0.39
------------------- --------------------
Total $0.63 $0.67 $2.42 $1.32
=================== ====================
Weighted average common
shares outstanding
Basic 26,982 23,757 25,996 23,660
Diluted 31,404 28,273 30,443 27,705
Actuant Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended Year Ended
----------------- -------------------
August August August August
31, 31, 31, 2005 31, 2004
2005 2004
-------- -------- --------- ---------
Operating Activities
Earnings from continuing
operations $19,115 $7,373 $71,251 $23,890
Adjustments to reconcile net
earnings to net cash provided
by operating activities:
Depreciation and amortization 6,176 4,343 22,421 16,597
Stock-based compensation expense 1,272 - 4,440 -
Amortization of debt discount
and debt issuance costs 361 297 1,297 1,423
Write-off of debt discount and
debt issuance costs in
conjunction with early
extinguishment of debt - 764 - 5,209
Write-off fair value adjustments
to long-term debt in
conjunction with early termination
of interest rate swaps - 1,170 - 754
Provision for deferred income
taxes 4,243 (1,298) 3,767 2,631
Loss on disposal of assets 241 224 90 361
Changes in operating assets and
liabilities, excluding the effects
of the business acquisitions:
Accounts receivable 9,676 9,578 (2,077) 3,714
Increase (decrease) in accounts
receivable securitization
program (1,784) (2,406) 19,286 640
Inventories 2,467 (3,305) (3,046) (7,549)
Prepaid expenses and other
assets 496 (1,356) 3,581 887
Trade accounts payable 604 1,014 (944) 3,731
Income taxes payable 436 5,681 (122) (1,027)
Reimbursement of tax refund to
former subsidiary - - (15,837) -
Other accrued liabilities 1,774 2,435 (7,114) (5,714)
-------- -------- --------- ---------
Net cash provided by continuing
operations (a) 45,077 24,514 96,993 45,547
Investing Activities
Proceeds from sale of property,
plant and equipment 868 - 3,707 14,601
Capital expenditures (3,937) (2,935) (15,442) (10,935)
Cash paid for business
acquisitions, net of cash
acquired (2,221) - (384,176) (65,100)
-------- -------- --------- ---------
Net cash used in investing
activities (5,290) (2,935) (395,911) (61,434)
Financing Activities
Net proceeds from 2% convertible
senior subordinated note
offering - - - 144,994
Partial redemptions of 13%
senior subordinated notes - (29,236) - (110,133)
Extinguishment of former senior
secured credit agreement - - - (30,000)
Initial proceeds from new senior
credit agreement - - - 30,000
Payments for early termination
of interest rate swaps - (1,170) - (2,186)
Gross proceeds from issuance of
term loans - - 250,000 -
Net proceeds from Class A common
stock offering 80 - 134,440 -
Redemption of Key Components,
Inc. 10.5% senior notes - - (82,800)
Principal payments on term loans (1,896) (1,956) (4,941) (26,399)
Net borrowings on (repayments
of) revolving credit facilities
and short-term borrowings (34,963) 12,077 2,520 8,136
Debt issuance costs (244) (229) (2,544) (1,499)
Tax benefit from stock-based
compensation 604 40 4,262 2,414
Stock option exercises and other 183 159 2,239 1,725
-------- -------- --------- ---------
Net cash provided by (used in)
financing activities (36,236) (20,315) 303,176 17,052
Effect of exchange rate changes
on cash (79) 18 65 275
-------- -------- --------- ---------
Net increase in cash and cash
equivalents 3,472 1,282 4,323 1,440
Cash and cash equivalents -
beginning of period 6,884 4,751 6,033 4,593
-------- -------- --------- ---------
Cash and cash equivalents - end
of period $10,356 $6,033 $10,356 $6,033
======== ======== ========= =========
(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 twelve
months ended August 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 (3)
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 % (3)
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 (3)
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 % (3)
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 $158,211 $174,250 $583,544
ENGINEERED
SOLUTIONS
SEGMENT 87,140 96,721 113,522 95,139 392,522
----- ---------------------------------------------
TOTAL REPORTED
SALES $199,677 $235,267 $271,733 $269,389 $976,066
===== =============================================
% SALES GROWTH
TOOLS & SUPPLIES
SEGMENT 16.8% 33.8% 43.9% 63.9% 40.2%
ENGINEERED
SOLUTIONS
SEGMENT 24.0% 33.5% 31.2% 16.8% 26.3%
TOTAL REPORTED
SALES 19.9% 33.7% 38.3% 43.5% 34.3%
OPERATING PROFIT (3)
TOOLS & SUPPLIES
SEGMENT $17,493 $19,621 $21,924 $28,537 $87,575
ENGINEERED SOLUTIONS
SEGMENT 12,080 10,803 16,091 10,792 49,766
CORPORATE /
GENERAL (3,163) (3,486) (4,137) (4,064) (14,850)
----- ---------------------------------------------
TOTAL REPORTED
RESULTS $26,410 $26,938 $33,878 $35,265 $122,491
===== =============================================
OPERATING PROFIT % (3)
TOOLS & SUPPLIES
SEGMENT 15.5% 14.2% 13.9% 16.4% 15.0%
ENGINEERED SOLUTIONS
SEGMENT 13.9% 11.2% 14.2% 11.3% 12.7%
TOTAL (INCLUDING
CORPORATE) 13.2% 11.4% 12.5% 13.1% 12.5%
EBITDA EXCLUDING
SPECIAL ITEMS (3)
TOOLS & SUPPLIES
SEGMENT $19,262 $22,560 $25,619 $31,877 $99,318
ENGINEERED SOLUTIONS
SEGMENT 13,384 13,345 18,143 13,150 58,022
CORPORATE /
GENERAL (919) (3,308) (3,871) (4,186) (12,284)
----- ---------------------------------------------
EBITDA EXCLUDING
SPECIAL ITEMS 31,727 32,597 39,891 40,841 145,056
SPECIAL ITEMS (1) - - - - -
----- ---------------------------------------------
EBITDA (2) $31,727 $32,597 $39,891 $40,841 $145,056
===== =============================================
EBITDA % (3)
TOOLS & SUPPLIES
SEGMENT 17.1% 16.3% 16.2% 18.3% 17.0%
ENGINEERED SOLUTIONS
SEGMENT 15.4% 13.8% 16.0% 13.8% 14.8%
TOTAL EXCLUDING
SPECIAL ITEMS
(INCLUDING
CORPORATE) 15.9% 13.9% 14.7% 15.2% 14.9%
(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.
(3) Fiscal 2005 operating profit and EBITDA includes non-cash stock
option expense of $4.1 million. The expense recognized by quarter is
as follows: Qtr 1 $0.9 million; Qtr 2 $1.0 million; Qtr 3 $1.1
million; Qtr 4 $1.1 million.
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,
DEBT EXTINGUISHMENT COSTS,
AND STOCK
COMPENSATION EXPENSE (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
STOCK COMPENSATION
EXPENSE (NET OF TAX) - - - - -
-----------------------------------------
TOTAL (NON-GAAP MEASURE) $10,088 $10,237 $14,257 $14,457 $49,039
=========================================
DILUTED EARNINGS PER SHARE EXCLUDING
DISCONTINUED
OPERATIONS, DEBT
EXTINGUISHMENT COSTS AND
STOCK COMPENSATION EXPENSE (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
STOCK COMPENSATION
EXPENSE (NET OF TAX) - - - - -
-----------------------------------------
TOTAL (NON-GAAP MEASURE) $0.41 $0.38 $0.53 $0.53 $1.84
=========================================
EBITDA EXCLUDING DISCONTINUED
OPERATIONS,
DEBT EXTINGUISHMENT COSTS,
AND STOCK
COMPENSATION EXPENSE (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
DEBT EXTINGUISHMENT
COSTS (NET OF TAX) 15,069 2,268 9,940 9,458 36,735
STOCK COMPENSATION
EXPENSE (NET OF TAX) - - - - -
-----------------------------------------
TOTAL (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,
DEBT EXTINGUISHMENT
COSTS, AND STOCK
COMPENSATION EXPENSE (1)
NET EARNINGS (GAAP
MEASURE) $16,941 $15,198 $19,997 $19,115 $71,251
DISCONTINUED
OPERATIONS (NET
OF TAX) - - - - -
----- -----------------------------------------
NET EARNINGS FROM
CONTINUING
OPERATIONS 16,941 15,198 19,997 19,115 71,251
DEBT EXTINGUISHMENT
COSTS (NET OF TAX) - - - - -
STOCK COMPENSATION
EXPENSE (NET OF
TAX) 565 621 753 741 2,680
----- -----------------------------------------
TOTAL (NON-GAAP
MEASURE) $17,506 $15,819 $20,750 $19,856 $73,931
===== =========================================
DILUTED EARNINGS PER SHARE EXCLUDING
DISCONTINUED OPERATIONS, DEBT
EXTINGUISHMENT COSTS AND STOCK
COMPENSATION EXPENSE (1)
NET EARNINGS (GAAP
MEASURE) $0.62 $0.52 $0.66 $0.63 $2.42
DISCONTINUED
OPERATIONS (NET
OF TAX) - - - - -
----- -----------------------------------------
NET EARNINGS FROM
CONTINUING
OPERATIONS 0.62 0.52 0.66 0.63 2.42
DEBT EXTINGUISHMENT
COSTS (NET OF TAX) - - - - -
STOCK COMPENSATION
EXPENSE (NET OF
TAX) 0.02 0.02 0.02 0.02 0.09
----- -----------------------------------------
TOTAL (NON-GAAP
MEASURE) $0.64 $0.54 $0.68 $0.65 $2.51
===== =========================================
EBITDA EXCLUDING DISCONTINUED
OPERATIONS, DEBT EXTINGUISHMENT
COSTS, AND STOCK
COMPENSATION EXPENSE (2)
NET EARNINGS (GAAP
MEASURE) $16,941 $15,198 $19,997 $19,115 $71,251
DISCONTINUED
OPERATIONS (NET
OF TAX) - - - - -
----- -----------------------------------------
NET EARNINGS FROM
CONTINUING
OPERATIONS 16,941 15,198 19,997 19,115 71,251
NET FINANCING
COSTS 1,938 3,907 4,936 6,146 16,927
INCOME TAX EXPENSE 8,806 8,022 8,744 9,440 35,012
DEPRECIATION &
AMORTIZATION 4,098 5,699 6,448 6,176 22,421
MINORITY INTEREST (56) (229) (234) (36) (555)
----- -----------------------------------------
EBITDA (NON-GAAP
MEASURE) 31,727 32,597 39,891 40,841 145,056
DEBT EXTINGUISHMENT
COSTS (NET OF TAX) - - - - -
STOCK COMPENSATION
EXPENSE (NET OF TAX) 869 956 1,159 1,139 4,123
----- -----------------------------------------
TOTAL (NON-GAAP
MEASURE) $32,596 $33,553 $41,050 $41,980 $149,179
===== =========================================
(1) Net earnings and diluted earnings per share excluding discontinued
operations, debt extinguishment costs, and stock compensation expense
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 or items to be highlighted for
comparability purposes. Items that are not representative of the
normal recurring operations of the current portfolio of Actuant
companies include results from discontinued operations and expenses
recorded to extinguish debt entered into at the time of the spin-off.
Items to be highlighted for comparabiltiy purposes include the
adoption of SFAS 123R, "Stock Compensation Expense" in fiscal 2005.
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
(2) EBITDA represents net earnings before net financing costs, income
tax expense, depreciation & amortization and minority interest. EBITDA
excluding discontinued operations, debt extinguishment costs, and
stock compensation expense is net of charges or credits that are not
representative of the normal recurring operations of the current
portfolio of Actuant companies or items to be highlighted for
comparability purposes. Items that are not representative of the
normal recurring operations of the current portfolio of Actuant
companies include results from discontinued operations and expenses
recorded to extinguish debt entered into at the time of the spin-off.
Items to be highlighted for comparabiltiy purposes include the
adoption of SFAS 123R, "Stock Compensation Expense" in fiscal 2005.
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.
CONTACT: Actuant Corporation
Andrew Lampereur, 414-352-4160