EXHIBIT 99.1
Actuant Announces Second Quarter Results, Raises Guidance
MILWAUKEE--(BUSINESS WIRE)--March 22, 2007--Actuant Corporation
(NYSE: ATU) today announced results for its second quarter ended
February 28, 2007. Including a restructuring provision, second quarter
fiscal 2007 net earnings and diluted earnings per share ("EPS") were
$18.9 million and $0.62, respectively, versus comparable prior year
net earnings and EPS of $19.3 million and $0.63, respectively. Fiscal
2007 second quarter results include a $3.8 million ($2.9 million net
of tax, or $0.09 per diluted share) charge covering a portion of the
Company's previously announced restructuring of its European
Electrical business. Excluding the restructuring charge, second
quarter EPS increased 13% year-over-year to $0.71 (see attached
reconciliation of earnings).
Net earnings for the six months ended February 28, 2007 were $44.0
million, or $1.43 per diluted share, compared to $40.6 million, or
$1.33 for the prior year period. Fiscal 2007 results include $0.09 per
diluted share of European Electrical restructuring costs. Excluding
restructuring, EPS was $1.52 in the first six months of fiscal 2007, a
14% increase over the prior year (see attached reconciliation of
earnings).
Second quarter sales increased 24% to $341 million from $276
million in the prior year, reflecting strong core growth, the weaker
US dollar, and approximately $35 million of sales from acquired
businesses. Excluding foreign currency exchange rate changes and
business acquisitions, second quarter fiscal 2007 sales increased
approximately 7%. This increase reflected core growth in all four
segments, including 12% in the Industrial Segment. Sales for the six
months ended February 28, 2007 were $684 million, approximately 22%
higher than the $560 million in the comparable prior year period.
Excluding the impact of foreign currency rate changes and sales from
acquired businesses, sales for the six-month period increased 8%.
Robert C. Arzbaecher, President and CEO of Actuant, commented, "We
are pleased with our second quarter results, including the 24% sales
growth and 13% growth in EPS excluding restructuring, which were led
by the strong performance of the Industrial Segment. Consistent with
our business model, acquisitions made a significant contribution to
the sales growth, however, each of our four segments contributed to
the 7% core growth."
Arzbaecher added, "We continued to see significant operating
profit margin improvement in our Industrial Segment. While
consolidated operating profit margins were down slightly on a
year-over-year basis due to lower profitability in the Electrical and
Actuation Systems segments, Industrial Segment margins improved by 160
basis points. Progress was made in improving Automotive and
Recreational Vehicle margins during the quarter, which positions
Actuant well for strong second half earnings growth. We expect
operating margin improvement in both Electrical and Actuation Systems
Segments in the third and fourth quarter, and expect margin expansion
for Actuant in total for the fiscal year."
The Company also announced sales and earnings guidance for the
third quarter and full year. Arzbaecher stated, "Excluding future
acquisition activity and European Electrical restructuring costs, we
expect year-over-year third quarter sales and EPS to increase due to
completed acquisitions, core sales growth and margin expansion. We are
projecting third quarter sales and EPS (excluding restructuring) to be
in the range of $360 - $370 million and $0.89 - $0.96 per share,
respectively. We are also raising our full year fiscal 2007 sales and
EPS ranges, resulting in updated guidance of $1.39 - $1.41 billion and
$3.30 - $3.45 per share (excluding restructuring), respectively. The
increased guidance equates to projected full year EPS growth of
14-19%."
Net debt (total debt of $595 million less approximately $25
million of cash) was $570 million, an increase of $115 from the
beginning of the quarter. Excluding the approximate $110 million of
cash used for acquisitions and the $9 million decline in accounts
receivable securitization, Actuant generated approximately $5 million
of cash flow in the second quarter, which is a seasonally weak
cash-flow period. The Company believes second half cash flow will be
significantly higher than that in the first half, in line with
historical seasonality. The Company had availability under its
revolving credit facility in excess of $200 million as of February 28,
2007.
Industrial Segment Results
- ----------------------------------------------------------------------
(US $ in millions)
Three Months Ended Six Months Ended
February 28, February 28,
------------------- -------------------
2007 2006 2007 2006
--------- --------- -------------------
Sales $93.5 $68.9 $194.4 $144.8
Operating Profit $24.0 $16.6 $52.7 $36.8
Operating Profit % 25.7% 24.1% 27.1% 25.4%
Second quarter fiscal 2007 Industrial Segment sales increased 36%
to approximately $94 million, resulting from increased demand, foreign
currency rate changes, and sales from acquisitions (D.L. Ricci,
Precision Sure-Lock, Veha and InjectAseal). Excluding foreign currency
exchange rate changes and sales from acquired businesses, Industrial
Segment sales increased approximately 12% from the comparable prior
year period, driven by continued strong demand in both the hydraulic
tool and joint integrity product lines. Second quarter operating
profit margins also expanded, increasing from 24.1% in the second
quarter of last year to 25.7% in the current year, due to the
continued benefit of higher volume and operating efficiencies.
Electrical Segment Results
- ----------------------------------------------------------------------
(US $ in millions)
Three Months Ended Six Months Ended
February 28, February 28,
------------------- -------------------
2007 2006 2007 2006
------------------- -------------------
Sales $123.6 $105.7 $245.6 $211.1
Operating Profit $5.8 $10.8 $15.0 $21.0
Operating Profit % 4.7% 10.2% 6.1% 9.9%
Fiscal 2007 second quarter Electrical Segment sales increased 17%
to approximately $124 million, reflecting 4% core sales growth,
foreign currency exchange rate changes and the fiscal 2006
acquisitions of B.E.P. Marine and Actown. Electrical operating profit
margins declined from 10.2% in the second quarter of fiscal 2006 to
4.7% in fiscal 2007 due primarily to the $3.8 million European
Electrical restructuring charge, related inefficiencies in the
European Electrical business and unfavorable sales and acquisition
mix. Excluding the restructuring provision, current year second
quarter operating margins were 7.7%. The Company is on track with its
previously announced plans to downsize the European Electrical
operations to improve profitability, and expects to recognize an
additional $8-11 million of related restructuring costs (pre-tax)
prior to the end of calendar 2007.
Actuation Systems Segment Results
- ----------------------------------------------------------------------
(US $ in millions)
Three Months Ended Six Months Ended
February 28, February 28,
------------------- -------------------
2007 2006 2007 2006
--------- --------- -------------------
Sales $97.7 $87.8 $203.3 $176.5
Operating Profit $8.0 $9.3 $16.6 $19.3
Operating Profit % 8.1% 10.6% 8.1% 11.0%
Actuation Systems second quarter fiscal 2007 sales increased 11%
to approximately $98 million, reflecting foreign currency exchange
rate changes and 7% core sales growth. Core sales growth was driven by
increased demand in automotive and recreational vehicle ("RV")
actuation systems product lines, both of which increased approximately
15% year-over-year due to the continued impact of new convertible auto
platform introductions and RV market share gains. Despite robust sales
growth in Europe, as expected, truck actuation systems product line
sales declined approximately 5% due to the end of the North American
emissions-related pre-buy. Actuation Systems operating profit margins
declined to 8.1% in the second quarter of fiscal 2007, due primarily
to unfavorable product line sales mix.
Engineered Products Segment Results
- ----------------------------------------------------------------------
(US $ in millions)
Three Months Ended Six Months Ended
February 28, February 28,
---------------------------------------
2007 2006 2007 2006
--------- --------- --------- ---------
Sales $26.3 $13.7 $40.7 $27.6
Operating Profit $3.3 $1.8 $5.2 $3.6
Operating Profit % 12.6% 13.4% 12.9% 12.9%
Fiscal 2007 second quarter Engineered Products Segment sales
increased approximately 92% year-over-year due to 9% core sales growth
and the acquisition of Maxima in December 2006. Operating profit
margins decreased to 12.6% from 13.4% in the prior year second
quarter, primarily due to Maxima purchase accounting charges, higher
amortization expense and acquisition sales mix.
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, March
22, and may be listened to via web cast on Actuant's website 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 $1.3 billion and its
market capitalization from $113 million to over $1.3 billion. The
Company employs a workforce of more than 6,700 worldwide. Actuant
Corporation trades on the NYSE under the symbol ATU. For further
information on Actuant and its business units, visit the Company's
website at www.actuant.com.
Actuant Corporation
Condensed Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited)
February 28, August 31,
2007 2006
------------- --------------
ASSETS
Current assets
Cash and cash equivalents $ 24,851 $ 25,659
Accounts receivable, net 206,542 171,262
Inventories, net 188,975 165,760
Deferred income taxes 22,340 18,796
Other current assets 11,622 9,448
------------- --------------
Total current assets 454,330 390,925
Property, plant and equipment, net 112,220 94,544
Goodwill 567,974 505,428
Other intangible assets, net 243,249 210,899
Other long-term assets 10,140 11,579
------------- --------------
Total assets $ 1,387,913 $ 1,213,375
============= ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings $ 351 $ -
Trade accounts payable 117,656 122,164
Accrued compensation and benefits 40,373 43,983
Income taxes payable 19,379 21,852
Current maturities of long-term debt 4,072 18,896
Other current liabilities 56,242 57,499
------------- --------------
Total current liabilities 238,073 264,394
Long-term debt, less current maturities 590,144 461,356
Deferred income taxes 83,937 70,184
Pension and postretirement benefit
accruals 36,642 36,606
Other long-term liabilities 20,986 17,870
Shareholders' equity
Capital stock 5,481 5,460
Additional paid-in capital (352,858) (360,353)
Accumulated other comprehensive income
(loss) (942) (4,581)
Stock held in trust (1,726) (1,355)
Deferred compensation liability 1,726 1,355
Retained earnings 766,450 722,439
------------- --------------
Total shareholders' equity 418,131 362,965
------------- --------------
Total liabilities and shareholders'
equity $ 1,387,913 $ 1,213,375
============= ==============
Actuant Corporation
Condensed Consolidated Statements of Earnings
(Dollars in thousands except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
February 28, February 28,
------------------ ------------------
2007 2006 2007 2006
------------------ ------------------
Net sales $341,020 $276,019 $684,003 $559,895
Cost of products sold 230,775 184,958 460,713 369,356
------------------ ------------------
Gross profit 110,245 91,061 223,290 190,539
Selling, administrative and
engineering expenses 66,910 54,433 134,064 113,915
Restructuring charge 3,776 - 3,885 -
Amortization of intangible assets 2,660 1,774 4,913 3,559
------------------ ------------------
Operating profit 36,899 34,854 80,428 73,065
Financing costs, net 8,268 6,084 15,109 12,151
Other expense, net 754 325 972 1,023
------------------ ------------------
Earnings from operations before
income
tax expense and minority
interest 27,877 28,445 64,347 59,891
Income tax expense 8,956 9,159 20,334 19,379
Minority interest, net of income
taxes 2 (12) (8) (54)
------------------ ------------------
Net earnings $ 18,919 $ 19,298 $ 44,021 $ 40,566
================== ==================
Earnings per share
Basic $ 0.69 $ 0.71 $ 1.61 $ 1.50
Diluted 0.62 0.63 1.43 1.33
Weighted average common shares
outstanding
Basic 27,327 27,084 27,313 27,060
Diluted 31,740 31,568 31,729 31,539
Actuant Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended Six Months Ended
February 28, February 28,
-------------------- --------------------
2007 2006 2007 2006
---------- --------- ---------- ---------
Operating Activities
Net earnings $ 18,919 $ 19,298 $ 44,021 $ 40,566
Adjustments to reconcile net
earnings to net cash
provided by operating
activities:
Depreciation and
amortization 8,844 6,721 16,721 13,242
Amortization of debt
issuance costs 383 361 765 721
Stock-based compensation
expense 1,333 1,103 2,750 2,172
Provision for deferred
income taxes (237) 446 (3,154) 503
Loss/(gain) on disposal
of assets (122) 136 - 70
Changes in operating
assets and liabilities,
excluding the effects of
the business
acquisitions:
Accounts receivable 4,080 4,531 (10,130) (16,651)
Increase (decrease) in
AR securitization
program (9,267) (2,294) (6,115) 442
Inventories (1,463) 432 (7,820) (5,313)
Prepaid expenses and
other assets 61 (46) (1,311) (1,230)
Trade accounts payable (9,453) (4,194) (15,208) 2,513
Income taxes payable (9,147) (3,843) (3,770) 1,650
Other accrued
liabilities (316) (8,673) (5,391) (3,684)
---------- --------- ---------- ---------
Net cash provided by
operating activities 3,615 13,978 11,358 35,001
Investing Activities
Proceeds from sale of
property, plant and
equipment - - 2,789 115
Capital expenditures (6,221) (4,824) (12,737) (9,899)
Cash paid for business
acquisitions, net of cash
acquired (110,332) (9,337) (110,059) (9,337)
---------- --------- ---------- ---------
Net cash used in investing
activities (116,553) (14,161) (120,007) (19,121)
Financing Activities
Net borrowings (repayments)
on revolving credit
facilities and short-term
borrowings (42,131) 2,018 (43,991) (15,085)
Proceeds from term loan 155,677 - 155,677 -
Principal repayments on
euro-denominated term loans (2,469) - (2,469) -
Cash dividend - - (2,187) (2,165)
Stock option exercises and
other (47) 1,521 67 2,137
---------- --------- ---------- ---------
Net cash provided by (used
in) financing activities 111,030 3,539 107,097 (15,113)
Effect of exchange rate
changes on cash 173 153 744 (144)
---------- --------- ---------- ---------
Net increase (decrease) in
cash and cash equivalents (1,735) 3,509 (808) 623
Cash and cash equivalents -
beginning of period 26,586 7,470 25,659 10,356
---------- --------- ---------- ---------
Cash and cash equivalents -
end of period $ 24,851 $ 10,979 $ 24,851 $ 10,979
========== ========= ========== =========
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 $ 93,487 $194,354
ELECTRICAL SEGMENT 122,017 123,599 245,616
ACTUATION SYSTEMS
SEGMENT 105,654 97,656 203,310
ENGINEERED PRODUCTS
SEGMENT 14,445 26,278 40,723
----------------------------------------------
TOTAL $342,983 $ 341,020 $684,003
==============================================
% SALES GROWTH
INDUSTRIAL SEGMENT 33% 36% 34%
ELECTRICAL SEGMENT 16% 17% 16%
ACTUATION SYSTEMS
SEGMENT 19% 11% 15%
ENGINEERED PRODUCTS
SEGMENT 4% 92% 48%
TOTAL 21% 24% 22%
OPERATING PROFIT
INDUSTRIAL SEGMENT $ 28,680 $ 23,988 $ 52,668
ELECTRICAL SEGMENT 9,357 9,535 18,892
ACTUATION SYSTEMS
SEGMENT 8,614 7,954 16,568
ENGINEERED PRODUCTS
SEGMENT 1,931 3,303 5,234
CORPORATE / GENERAL (4,944) (4,105) (9,049)
----------------------------------------------
TOTAL - EXCLUDING
RESTRUCTURING
CHARGE $ 43,638 $ 40,675 $ 84,313
EUROPEAN ELECTRICAL
RESTRUCTURING
CHARGE (109) (3,776) (3,885)
----------------------------------------------
TOTAL $ 43,529 $ 36,899 $ 80,428
==============================================
OPERATING PROFIT %
INDUSTRIAL SEGMENT 28.4% 25.7% 27.1%
ELECTRICAL SEGMENT 7.7% 7.7% 7.7%
ACTUATION SYSTEMS
SEGMENT 8.2% 8.1% 8.1%
ENGINEERED PRODUCTS
SEGMENT 13.4% 12.6% 12.9%
TOTAL (INCLUDING
CORPORATE) -
EXCLUDING
RESTRUCTURING
CHARGE 12.7% 11.9% 12.3%
EBITDA
INDUSTRIAL SEGMENT $ 31,022 $ 26,205 $ 57,227
ELECTRICAL SEGMENT 11,543 11,404 22,947
ACTUATION SYSTEMS
SEGMENT 11,339 10,928 22,267
ENGINEERED PRODUCTS
SEGMENT 2,238 4,256 6,494
CORPORATE / GENERAL (4,844) (4,028) (8,872)
----------------------------------------------
TOTAL - EXCLUDING
RESTRUCTURING
CHARGE $ 51,298 $ 48,765 $100,063
EUROPEAN ELECTRICAL
RESTRUCTURING
CHARGE (109) (3,776) (3,885)
----------------------------------------------
TOTAL $ 51,189 $ 44,989 $ 96,178
==============================================
EBITDA %
INDUSTRIAL SEGMENT 30.8% 28.0% 29.4%
ELECTRICAL SEGMENT 9.5% 9.2% 9.3%
ACTUATION SYSTEMS
SEGMENT 10.7% 11.2% 11.0%
ENGINEERED PRODUCTS
SEGMENT 15.5% 16.2% 15.9%
TOTAL (INCLUDING
CORPORATE) -
EXCLUDING
RESTRUCTURING
CHARGE 15.0% 14.3% 14.6%
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 $18,919 $44,021
RESTRUCTURING CHARGES,
NET OF TAX BENEFIT 109 2,926 3,035
TAX ADJUSTMENTS - - -
----------------------------------------
TOTAL (NON-GAAP MEASURE) $25,211 $21,845 $47,056
========================================
DILUTED EARNINGS PER SHARE
EXCLUDING RESTRUCTURING
CHARGE AND TAX
ADJUSTMENTS (1)
NET EARNINGS
(GAAP MEASURE) $0.81 $0.62 $1.43
RESTRUCTURING CHARGES,
NET OF TAX BENEFIT - 0.09 0.09
TAX ADJUSTMENTS - - -
----------------------------------------
TOTAL (NON-GAAP MEASURE) $0.81 $0.71 $1.52
========================================
EBITDA (2)
NET EARNINGS (GAAP
MEASURE) $25,102 $18,919 $44,021
FINANCING COSTS, NET 6,841 8,268 15,109
INCOME TAX EXPENSE 11,379 8,956 20,335
DEPRECIATION &
AMORTIZATION 7,877 8,844 16,721
MINORITY INTEREST, NET
OF INCOME TAX (10) 2 (8)
----------------------------------------
EBITDA
(NON-GAAP MEASURE) $51,189 $44,989 $96,178
EUROPEAN ELECTRICAL
RESTRUCTURING CHARGE 109 3,776 3,885
----------------------------------------
EBITDA
(NON-GAAP MEASURE) -
EXCLUDING RESTRUCTURING
CHARGE $51,298 $48,765 $100,063
========================================
(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