Exhibit 99.1
Actuant Announces Record First Quarter Sales and Earnings
MILWAUKEE--(BUSINESS WIRE)--Dec. 20, 2006--Actuant Corporation
(NYSE: ATU) today announced record results for its first quarter ended
November 30, 2006. First quarter fiscal 2007 net earnings and diluted
earnings per share ("EPS") were $25.1 million and $0.81, respectively,
which compares favorably to net earnings and EPS of $21.3 million and
$0.70, respectively, for the first quarter of fiscal 2006. Fiscal 2007
first quarter sales and EPS increased approximately 21% and 16%,
respectively, over the comparable prior year period.
First quarter sales increased to $343 million from $284 million in
the prior year, driven by strong base business growth and
approximately $25 million of sales from acquired businesses. Excluding
foreign currency exchange rate changes and sales from acquired
businesses, first quarter fiscal 2007 sales increased approximately 9%
from the comparable prior year period. This increase was driven by
growth in all four reportable segments, including strong growth in the
Industrial and Actuation Systems segments.
Robert C. Arzbaecher, President and CEO of Actuant, commented,
"Actuant is off to a solid start in Fiscal 2007 with 9% core sales
growth, which was slightly ahead of our expectations. Additionally,
first quarter EPS increased approximately 16% from last year, driven
by higher sales and the benefit of prior year acquisitions."
Arzbaecher continued, "We were especially pleased with the
performance of our Industrial segment, which generated strong
increases in both core sales and profit margins. Our overall profit
margins were down year-over-year as a result of unfavorable sales mix
and lower Actuation System and Electrical segment profitability. Our
previously announced European Electrical restructuring activities
continue on plan, although there was limited financial impact this
quarter."
He added, "We are also pleased with our acquisition progress, both
in integrating previously announced acquisitions and in identifying
new acquisition opportunities. We've had success in supplementing our
core revenue growth with acquisitions, and this combination has helped
Actuant double its sales over the last three years."
The Company also announced sales and earnings guidance for the
second quarter of fiscal 2007 and confirmed its full year guidance.
Arzbaecher stated, "We expect second quarter sales and EPS to be lower
than the first quarter due to normal seasonality, but do anticipate
year-over-year growth. Excluding acquisition activity and European
Electrical restructuring costs, we are projecting second quarter sales
and EPS to be in the range of $320-325 million, and $0.67-0.71 per
share, respectively. Full year fiscal 2007 sales and earnings
guidance, excluding future acquisitions and European Electrical
restructuring costs, remains unchanged from our previous ranges of
$1.325-1.345 billion and $3.20-3.40 per share, respectively. This
translates to 10-17% EPS growth over the $2.90 fiscal 2006 EPS,
excluding 2006 tax gains and European Electrical restructuring costs.
Net debt (total debt of $482 million less approximately $27
million of cash) was $455 million, unchanged from the beginning of the
quarter. Consistent with prior years, Actuant's first quarter cash
flow was impacted by seasonal trends including working capital growth
and employee incentive compensation payments for the prior year.
Industrial Segment Results
- ----------------------------------------------------------------------
(US $ in millions)
Three Months Ended
November 30,
------------------
2006 2005
-------- --------
Sales $100.9 $75.8
Operating Profit $28.7 $20.2
Operating Profit as a % of Sales 28.4% 26.6%
The Industrial segment is comprised of the Enerpac and Hydratight
businesses. First quarter fiscal 2007 Industrial sales increased 33%
to $101 million, resulting from increased demand, price increases,
foreign currency rate changes, and sales from the April 2006
acquisitions of Precision Sure-Lock and D.L. Ricci. Excluding foreign
currency exchange rate changes and sales from acquired businesses,
Industrial segment sales increased approximately 11% from the
comparable prior year period, driven by continued strong demand across
both the hydraulic tool and joint integrity product lines, and price
increases. Operating profit margins in Industrial increased to 28.4%
in the first quarter of fiscal 2007 from 26.6% in the comparable prior
year period due to higher production levels, acquisitions and
operating efficiencies.
Electrical Segment Results
- ----------------------------------------------------------------------
(US $ in millions)
Three Months Ended
November 30,
------------------
2006 2005
-------- --------
Sales $122.0 $105.5
Operating Profit $9.4 $10.2
Operating Profit as a % of Sales 7.7% 9.7%
The Electrical segment consists of the Company's Gardner Bender,
Professional Electrical, European Electrical and Specialty Electrical
business units. Fiscal 2007 first quarter Electrical segment sales
increased approximately 16% to $122 million from approximately $106
million in the prior year. Higher sales resulted from 3% core sales
growth, foreign currency exchange rate changes and the fiscal 2006
acquisitions of BEP Marine and Actown. Electrical operating profit
margins declined from 9.7% in the first quarter of fiscal 2006 to 7.7%
in fiscal 2007 due primarily to approximately $1.0 million of
downsizing costs (unrelated to the previously announced European
Electrical restructuring, but rather costs incurred to close three
other Electrical locations), sales mix and acquisitions. The Company
made progress on restructuring activities in its European Electrical
business during the quarter, and is on track with its previously
announced plans to downsize the operation to improve profitability.
The Company has incurred a total of approximately $5 million of
pre-tax European Electrical restructuring costs over the past six
months, and expects to recognize an additional $12-15 million of
related costs (pre-tax) by the end of calendar 2007.
Actuation Systems Segment Results
- ----------------------------------------------------------------------
(US $ in millions)
Three Months Ended
November 30,
------------------
2006 2005
-------- --------
Sales $105.7 $88.7
Operating Profit $8.6 $10.0
Operating Profit as a % of Sales 8.2% 11.3%
The Company's Automotive, Truck (Gits and Power Packer),
Recreational Vehicle ("RV"), and Elliott businesses are included in
its Actuation Systems segment. Actuation Systems first quarter fiscal
2007 sales increased 19% to $106 million from approximately $89
million in the comparable prior year period. Excluding foreign
currency exchange rate changes, Actuation Systems core sales increased
16%, with growth in all three major product lines - automotive
actuation systems, RV actuation systems and truck actuation systems.
Automotive convertible top sales increased 45% year-over-year due to
the continued impact of new convertible auto platform introductions.
The higher truck actuation system sales resulted from strong customer
pre-buy demand in advance of more stringent North American diesel
engine emissions standard that takes effect on January 1, 2007.
Actuation Systems operating profit margins declined to 8.2% in the
first quarter of fiscal 2007, due primarily to unfavorable product
line sales mix, overtime expense, material cost increases, and other
manufacturing variances.
Engineered Products Segment Results
- ----------------------------------------------------------------------
(US $ in millions)
Three Months Ended
November 30,
------------------
2006 2005
-------- --------
Sales $14.4 $13.9
Operating Profit $1.9 $1.7
Operating Profit as a % of Sales 13.4% 12.4%
The Engineered Products segment includes the Company's Acme
Aerospace, Turner, Milwaukee Cylinder, and Nielsen-Sessions
operations. Fiscal 2007 first quarter Engineered Products sales
increased approximately 4% year-over-year due to increased economic
activity. Operating profit margins increased to 13.4% from 12.4% in
the prior year first quarter, reflecting the benefits of low cost
country component sourcing as well as operating efficiencies.
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, 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,
December 20, and may be listened to via webcast on Actuant's Web site
at www.actuant.com.
About Actuant
Actuant, headquartered in Butler, Wisconsin, is a diversified
industrial company with operations in more than 30 countries. The
Actuant businesses are market leaders in highly engineered position
and motion control systems and branded hydraulic and electrical tools
and supplies. Since its creation through a spin-off in 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 6,300 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)
(Unaudited)
November 30, August 31,
2006 2006
---------------- ----------------
ASSETS
Current assets
Cash and cash equivalents $26,586 $25,659
Accounts receivable, net 186,709 171,262
Inventories, net 174,355 165,760
Deferred income taxes 21,824 18,796
Other current assets 11,603 9,448
---------------- ----------------
Total current assets 421,077 390,925
Property, plant and equipment, net 92,737 94,544
Goodwill 509,848 505,428
Other intangible assets, net 208,859 210,899
Other long-term assets 10,294 11,579
---------------- ----------------
Total assets $1,242,815 $1,213,375
================ ================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings $720 $-
Trade accounts payable 118,423 122,164
Accrued compensation and benefits 32,325 43,983
Income taxes payable 27,591 21,852
Current maturities of long-term
debt 28,274 18,896
Other current liabilities 58,447 57,499
---------------- ----------------
Total current liabilities 265,780 264,394
Long-term debt, less current
maturities 452,680 461,356
Deferred income taxes 68,070 70,184
Pension and postretirement benefit
accruals 36,750 36,606
Other long-term liabilities 22,517 17,870
Shareholders' equity
Capital stock 5,479 5,460
Additional paid-in capital (354,542) (360,353)
Accumulated other comprehensive
income (loss) (1,448) (4,581)
Stock held in trust (1,648) (1,355)
Deferred compensation liability 1,648 1,355
Retained earnings 747,529 722,439
---------------- ----------------
Total shareholders' equity 397,018 362,965
---------------- ----------------
Total liabilities and shareholders'
equity $1,242,815 $1,213,375
================ ================
Actuant Corporation
Condensed Consolidated Statements of Earnings
(Dollars in thousands except per share amounts)
(Unaudited)
Three Months Ended
November 30,
--------------------
2006 2005
--------------------
Net sales $342,983 $283,876
Cost of products sold 229,938 184,398
--------------------
Gross profit 113,045 99,478
Selling, administrative and engineering expenses 67,263 59,482
Amortization of intangible assets 2,253 1,785
--------------------
Operating profit 43,529 38,211
Financing costs, net 6,841 6,067
Other expense, net 217 698
--------------------
Earnings from operations before income
tax expense and minority interest 36,471 31,446
Income tax expense 11,379 10,220
Minority interest, net of income taxes (10) (42)
--------------------
Net earnings $25,102 $21,268
====================
Earnings per share
Basic $0.92 $0.79
Diluted 0.81 0.70
Weighted average common shares outstanding
Basic 27,300 27,037
Diluted 31,717 31,453
Actuant Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended November 30,
---------------------------------
2006 2005
---------------- ----------------
Operating Activities
Net earnings $25,102 $21,268
Adjustments to reconcile net
earnings to net cash provided by
operating activities:
Depreciation and amortization 7,877 6,521
Amortization of debt issuance
costs 382 360
Stock-based compensation expense 1,417 1,066
Provision for deferred income
taxes (2,917) 57
Loss/(gain) on disposal of assets 122 (66)
Changes in operating assets and
liabilities, excluding the
effects of the business
acquisitions:
Accounts receivable (14,210) (21,182)
Increase in AR securitization
program 3,152 2,736
Inventories (6,357) (5,745)
Prepaid expenses and other
assets (1,372) (1,184)
Trade accounts payable (5,755) 6,707
Income taxes payable 5,377 5,493
Accrued compensation and
benefits (8,472) 602
Other accrued liabilities 3,397 4,390
---------------- ----------------
Net cash provided by operating
activities 7,743 21,023
Investing Activities
Proceeds from sale of property,
plant and equipment 2,789 115
Capital expenditures (6,516) (5,075)
Other 273 -
---------------- ----------------
Net cash used in investing
activities (3,454) (4,960)
Financing Activities
Net borrowings (repayments) on
revolving credit facilities and
short-term borrowings (1,860) (17,103)
Cash dividend (2,187) (2,165)
Stock option exercises and other 114 616
---------------- ----------------
Net used in financing activities (3,933) (18,652)
Effect of exchange rate changes on
cash 571 (297)
---------------- ----------------
Net increase in cash and cash
equivalents 927 (2,886)
Cash and cash equivalents -
beginning of period 25,659 10,356
---------------- ----------------
Cash and cash equivalents - end of
period $26,586 $7,470
================ ================
ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA
(Dollars in thousands)
FISCAL 2006
---------------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
---------------------------------------------------
SALES
INDUSTRIAL
SEGMENT $75,846 $68,907 $83,131 $96,804 $324,688
ELECTRICAL
SEGMENT 105,460 105,670 109,449 111,907 432,486
ACTUATION
SYSTEMS SEGMENT 88,678 87,779 109,099 100,687 386,243
ENGINEERED
PRODUCTS
SEGMENT 13,892 13,663 14,983 15,203 57,741
---------------------------------------------------
TOTAL $283,876 $276,019 $316,662 $324,601 $1,201,158
===================================================
% SALES GROWTH
INDUSTRIAL
SEGMENT 81% 51% 44% 33% 49%
ELECTRICAL
SEGMENT 50% 14% 9% 11% 19%
ACTUATION
SYSTEMS SEGMENT 9% 1% 9% 23% 10%
ENGINEERED
PRODUCTS
SEGMENT 149% 41% 15% 16% 40%
TOTAL 42% 17% 17% 20% 23%
OPERATING PROFIT
INDUSTRIAL
SEGMENT $20,201 $16,595 $21,307 $27,408 $85,511
ELECTRICAL
SEGMENT 10,215 10,760 11,172 9,583 41,730
ACTUATION
SYSTEMS SEGMENT 10,034 9,297 12,203 8,846 40,380
ENGINEERED
PRODUCTS
SEGMENT 1,728 1,834 2,139 2,020 7,721
CORPORATE /
GENERAL (3,967) (3,632) (3,981) (4,787) (16,367)
---------------------------------------------------
TOTAL -
EXCLUDING
RESTRUCTURING
CHARGE $38,211 $34,854 $42,840 $43,070 $158,975
EUROPEAN
ELECTRICAL
RESTRUCTURING
CHARGE - - - (4,910) (4,910)
---------------------------------------------------
TOTAL $38,211 $34,854 $42,840 $38,160 $154,065
===================================================
OPERATING PROFIT %
INDUSTRIAL
SEGMENT 26.6% 24.1% 25.6% 28.3% 26.3%
ELECTRICAL
SEGMENT 9.7% 10.2% 10.2% 8.6% 9.6%
ACTUATION
SYSTEMS SEGMENT 11.3% 10.6% 11.2% 8.8% 10.5%
ENGINEERED
PRODUCTS
SEGMENT 12.4% 13.4% 14.3% 13.3% 13.4%
TOTAL
(INCLUDING
CORPORATE) -
EXCLUDING
RESTRUCTURING
CHARGE 13.5% 12.6% 13.5% 13.3% 13.2%
EBITDA
INDUSTRIAL
SEGMENT $21,626 $18,050 $22,752 $29,644 $92,072
ELECTRICAL
SEGMENT 11,904 12,818 12,643 11,496 48,861
ACTUATION
SYSTEMS SEGMENT 12,063 11,823 14,913 11,555 50,354
ENGINEERED
PRODUCTS
SEGMENT 2,042 2,145 2,435 2,324 8,946
CORPORATE /
GENERAL (3,601) (3,586) (3,881) (4,487) (15,555)
---------------------------------------------------
TOTAL -
EXCLUDING
RESTRUCTURING
CHARGE $44,034 $41,250 $48,862 $50,532 $184,678
EUROPEAN
ELECTRICAL
RESTRUCTURING
CHARGE - - - (4,910) (4,910)
---------------------------------------------------
TOTAL $44,034 $41,250 $48,862 $45,622 $179,768
===================================================
EBITDA %
INDUSTRIAL
SEGMENT 28.5% 26.2% 27.4% 30.6% 28.4%
ELECTRICAL
SEGMENT 11.3% 12.1% 11.6% 10.3% 11.3%
ACTUATION
SYSTEMS SEGMENT 13.6% 13.5% 13.7% 11.5% 13.0%
ENGINEERED
PRODUCTS
SEGMENT 14.7% 15.7% 16.3% 15.3% 15.5%
TOTAL
(INCLUDING
CORPORATE) -
EXCLUDING
RESTRUCTURING
CHARGE 15.5% 14.9% 15.4% 15.6% 15.4%
FISCAL 2007
---------------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
---------------------------------------------------
SALES
INDUSTRIAL
SEGMENT $100,867 $100,867
ELECTRICAL
SEGMENT 122,017 122,017
ACTUATION
SYSTEMS SEGMENT 105,654 105,654
ENGINEERED
PRODUCTS
SEGMENT 14,445 14,445
---------------------------------------------------
TOTAL $342,983 $342,983
===================================================
% SALES GROWTH
INDUSTRIAL
SEGMENT 33% 33%
ELECTRICAL
SEGMENT 16% 16%
ACTUATION
SYSTEMS SEGMENT 19% 19%
ENGINEERED
PRODUCTS
SEGMENT 4% 4%
TOTAL 21% 21%
OPERATING PROFIT
INDUSTRIAL
SEGMENT $28,680 $28,680
ELECTRICAL
SEGMENT 9,357 9,357
ACTUATION
SYSTEMS SEGMENT 8,614 8,614
ENGINEERED
PRODUCTS
SEGMENT 1,931 1,931
CORPORATE /
GENERAL (4,944) (4,944)
---------------------------------------------------
TOTAL -
EXCLUDING
RESTRUCTURING
CHARGE $43,638 $43,638
EUROPEAN
ELECTRICAL
RESTRUCTURING
CHARGE (109) (109)
---------------------------------------------------
TOTAL $43,529 $43,529
===================================================
OPERATING PROFIT %
INDUSTRIAL
SEGMENT 28.4% 28.4%
ELECTRICAL
SEGMENT 7.7% 7.7%
ACTUATION
SYSTEMS SEGMENT 8.2% 8.2%
ENGINEERED
PRODUCTS
SEGMENT 13.4% 13.4%
TOTAL
(INCLUDING
CORPORATE) -
EXCLUDING
RESTRUCTURING
CHARGE 12.7% 12.7%
EBITDA
INDUSTRIAL
SEGMENT $31,022 $31,022
ELECTRICAL
SEGMENT 11,543 11,543
ACTUATION
SYSTEMS SEGMENT 11,339 11,339
ENGINEERED
PRODUCTS
SEGMENT 2,238 2,238
CORPORATE /
GENERAL (4,844) (4,844)
---------------------------------------------------
TOTAL -
EXCLUDING
RESTRUCTURING
CHARGE $51,298 $51,298
EUROPEAN
ELECTRICAL
RESTRUCTURING
CHARGE (109) (109)
---------------------------------------------------
TOTAL $51,189 $51,189
===================================================
EBITDA %
INDUSTRIAL
SEGMENT 30.8% 30.8%
ELECTRICAL
SEGMENT 9.5% 9.5%
ACTUATION
SYSTEMS SEGMENT 10.7% 10.7%
ENGINEERED
PRODUCTS
SEGMENT 15.5% 15.5%
TOTAL
(INCLUDING
CORPORATE) -
EXCLUDING
RESTRUCTURING
CHARGE 15.0% 15.0%
ACTUANT CORPORATION
Reconciliation of GAAP measures to non-GAAP measures
(Dollars in thousands, except for per share amounts)
FISCAL 2006
---------------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
---------------------------------------------------
NET EARNINGS
EXCLUDING
RESTRUCTURING
CHARGE AND TAX
ADJUSTMENTS (1)
NET EARNINGS
(GAAP MEASURE) $21,268 $19,298 $26,787 $25,235 $92,588
RESTRUCTURING
CHARGES, NET
OF TAX
BENEFIT - - - 4,499 4,499
TAX
ADJUSTMENTS - - (2,597) (5,374) (7,971)
---------------------------------------------------
TOTAL (NON-GAAP
MEASURE) $21,268 $19,298 $24,190 $24,360 $89,116
===================================================
DILUTED EARNINGS
PER SHARE
EXCLUDING
RESTRUCTURING
CHARGE AND TAX
ADJUSTMENTS (1)
NET EARNINGS
(GAAP MEASURE) $0.70 $0.63 $0.86 $0.82 $3.01
RESTRUCTURING
CHARGES, NET
OF TAX
BENEFIT - - - 0.14 0.14
TAX
ADJUSTMENTS - - (0.08) (0.17) (0.25)
---------------------------------------------------
TOTAL (NON-GAAP
MEASURE) $0.70 $0.63 $0.78 $0.79 $2.90
===================================================
EBITDA (2)
NET EARNINGS
(GAAP MEASURE) $21,268 19,298 26,787 25,235 $92,588
FINANCING
COSTS, NET 6,067 6,084 6,786 7,209 26,146
INCOME TAX
EXPENSE 10,220 9,159 8,636 5,371 33,386
DEPRECIATION &
AMORTIZATION 6,521 6,721 6,680 7,851 27,773
MINORITY
INTEREST, NET
OF INCOME TAX (42) (12) (27) (44) (125)
---------------------------------------------------
EBITDA (NON-
GAAP MEASURE) $44,034 $41,250 $48,862 $45,622 $179,768
EUROPEAN
ELECTRICAL
RESTRUCTURING
CHARGE - - - 4,910 4,910
---------------------------------------------------
EBITDA (NON-
GAAP MEASURE)
- EXCLUDING
RESTRUCTURING
CHARGE $44,034 $41,250 $48,862 $50,532 $184,678
===================================================
FISCAL 2007
---------------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
---------------------------------------------------
NET EARNINGS
EXCLUDING
RESTRUCTURING
CHARGE AND TAX
ADJUSTMENTS (1)
NET EARNINGS
(GAAP MEASURE) $25,102 $25,102
RESTRUCTURING
CHARGES, NET
OF TAX
BENEFIT 109 $109
TAX
ADJUSTMENTS - -
---------------------------------------------------
TOTAL (NON-GAAP
MEASURE) $25,211 $25,211
===================================================
DILUTED EARNINGS
PER SHARE
EXCLUDING
RESTRUCTURING
CHARGE AND TAX
ADJUSTMENTS (1)
NET EARNINGS
(GAAP MEASURE) $0.81 $0.81
RESTRUCTURING
CHARGES, NET
OF TAX
BENEFIT - -
TAX
ADJUSTMENTS - -
---------------------------------------------------
TOTAL (NON-GAAP
MEASURE) $0.81 $0.81
===================================================
EBITDA (2)
NET EARNINGS
(GAAP MEASURE) $25,102 $25,102
FINANCING
COSTS, NET 6,841 6,841
INCOME TAX
EXPENSE 11,379 11,379
DEPRECIATION &
AMORTIZATION 7,877 7,877
MINORITY
INTEREST, NET
OF INCOME TAX (10) (10)
---------------------------------------------------
EBITDA (NON-
GAAP MEASURE) $51,189 $51,189
EUROPEAN
ELECTRICAL
RESTRUCTURING
CHARGE 109 109
---------------------------------------------------
EBITDA (NON-
GAAP MEASURE)
- EXCLUDING
RESTRUCTURING
CHARGE $51,298 $51,298
===================================================
(1)Net earnings and diluted earnings per share excluding restructuring
charges and income tax adjustments represent net earnings and
diluted earnings per share per the Consolidated Statement of
Earnings net of charges or credits for items to be highlighted for
comparability purposes. These measures should not be considered
as an alternative to net earnings 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 financing costs,net, income
tax expense, depreciation & amortization and minority interest.
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, 262-373-7401
Executive Vice President and CFO