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Business Wire 26-Jun-2019 8:30 AM
Third Quarter 2019 Highlights*
Actuant Corporation (NYSE:ATU) today announced results for its fiscal 2019 third quarter ended May 31, 2019.
"We are pleased with the continued strong performance of our IT&S segment, which was driven by solid product sales in North America and very strong service sales in the Middle East and North Sea. Despite challenging year-over-year comparisons, this quarter marks five consecutive quarters of total core growth and seven quarters of core product sales growth within the consolidated IT&S business. We continue to take actions to enhance growth and profitability, including driving new product development and executing on our previously announced restructuring actions," commented Randy Baker, Actuant's President and CEO.
Mr. Baker continued, "Our results this quarter reflect the solid execution of our growth and profitability plans resulting from the hard work of our teams around the world. I appreciate their incredible dedication, which has been instrumental in getting us to where we are today. We are well positioned to become a top-tier industrial tools and services company, and we have a bright future ahead of us."
Consolidated Results |
|
|
|
|
|||
(US$ in millions) |
|
|
|
|
|||
|
|
|
|
||||
Three Months Ended May 31 |
Nine Months Ended May 31 |
||||||
2019 |
2018 |
2019 |
2018 |
||||
Sales |
$295.3 |
$317.1 |
$859.7 |
$881.2 |
|||
Operating Profit |
$47.4 |
$32.7 |
$54.4 |
$57.2 |
|||
Adjusted Op Profit |
$39.9 |
$33.9 |
$90.7 |
$72.3 |
|||
Adjusted Op Profit % |
13.5% |
10.7% |
10.6% |
8.2% |
|||
Earnings Per Share |
$0.52 |
$0.48 |
$0.29 |
$0.26 |
|||
Adjusted Earnings Per Share |
$0.45 |
$0.39 |
$0.90 |
$0.71 |
|||
Net Income |
$32.4 |
$29.0 |
$17.7 |
$16.0 |
|||
EBITDA |
$56.2 |
$43.2 |
$78.1 |
$87.1 |
|||
Adjusted EBITDA |
$47.1 |
$44.4 |
$112.7 |
$102.2 |
|||
EBITDA Margin% |
19.0% |
13.6% |
9.1% |
9.9% |
|||
Adjusted EBITDA Margin% |
15.9% |
14.0% |
13.1% |
11.6% |
Segment Results |
|||||||
Industrial Tools & Services Segment (IT&S) |
|||||||
(US$ in millions) |
|||||||
Three Months Ended May 31 |
Nine Months Ended May 31 |
||||||
2019 |
2018 |
2019 |
2018 |
||||
Sales |
$166.7 |
$158.7 |
$464.9 |
$437.7 |
|||
Operating Profit |
$34.9 |
$31.7 |
$87.8 |
$71.5 |
|||
Adjusted Op Profit (1) |
$36.0 |
$32.2 |
$88.9 |
$74.9 |
|||
Adjusted Op Profit Margin% (1) |
21.6% |
20.3% |
19.1% |
17.1% |
|||
(1) Excludes $1.1 million of restructuring charges in both the third quarter of fiscal 2019 and the nine months ended May 31, 2019 compared to $0.5 million in the third quarter of fiscal 2018 and $3.4 million in the nine months ended May 31, 2018. |
Engineered Components & Systems Segment (EC&S) |
|||||||||||||
(US$ in millions) |
|||||||||||||
Three Months Ended May 31 |
Nine Months Ended May 31 |
||||||||||||
2019 |
2018 |
2019 |
2018 |
||||||||||
Sales |
$128.5 |
$158.4 |
$394.8 |
$443.5 |
|||||||||
Operating Profit |
$19.6 |
$9.6 |
$(10.1) |
$9.2 |
|||||||||
Adjusted Op Profit (2) |
$10.7 |
$9.7 |
$24.7 |
$16.0 |
|||||||||
Adjusted Op Profit Margin% (2) |
8.3% |
6.1% |
6.3% |
3.6% |
|||||||||
(2) The third quarter of fiscal 2019 excludes a net $10.6 million impairment and divestiture benefit, along with $1.7 million of depreciation/amortization true-up related to Cortland assets being reclassified into assets held for use. The third quarter of 2018 excludes $0.1 million of restructuring charges. The nine months ended May 31, 2019 excludes restructuring charges of $0.4 million, impairment and other divestiture charges of $32.7 million and $1.7 million of depreciation/amortization true-up also related to Cortland assets being reclassified into assets held for use. The nine months ended May 31, 2018 excludes restructuring charges of $3.8 million and $3.0 million of impairment and other divestiture charges. |
Corporate Expenses and Income Taxes (excluding restructuring, debt-issuance and one-time tax items)
Balance Sheet and Leverage |
|||||
(US$ in millions) |
|||||
Period Ending |
|||||
May 31, 2019 |
Aug 31, 2018 |
May 31, 2018 |
|||
Cash Balance |
$201.3 |
$250.5 |
$189.5 |
||
Debt Balance |
$475.2 |
$532.7 |
$540.0 |
||
Net Debt to Adjusted EBITDA |
1.8 |
1.9 |
2.6 |
Outlook for Q4 2019
The company provides the following updated outlook for its fourth quarter 2019:
Mr. Baker said, "Our outlook for the year reflects the continued positive fundamentals of the IT&S business and its solid end-markets, offset by some softness in several EC&S end-markets. Looking forward, we are excited about the IT&S opportunities we see to drive growth and operate even more efficiently as we execute our strategies to deliver enhanced value for shareholders."
All guidance excludes restructuring, impairment and divestiture charges, one-time tax adjustments and the impact of potential future acquisitions, dispositions, share repurchases and tariffs.
EC&S Divestiture Process
As previously announced, the Company intends to solely focus on the IT&S segment and pursue a standalone strategy as a pure play industrial tools and services company. To achieve its objective, the Company initiated a process to unlock value of the remaining EC&S segment and enhance long-term value for its shareholders through a potential divestiture of the segment.
The process continues and the Company will comment on or provide updates regarding these matters (including the status of the divestiture) only when the Company determines that further disclosure is appropriate or required. No assurance can be given that any transaction will result from the EC&S sale process or as to its timing.
Conference Call Information
An investor conference call is scheduled for 10am CT today, June 26, 2019. Webcast information and conference call materials will be made available on the Actuant company website (www.actuant.com) prior to the start of the call.
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. Among other risks and factors, Actuant's results are 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, tax reform, foreign currency fluctuations and interest rate risk. See the Company's Form 10-K for the fiscal year ended August 31, 2018 filed with the Securities and Exchange Commission for further information regarding risk factors. Actuant disclaims any obligation to publicly update or revise any forward-looking statements as a result of new information, future events or any other reason.
Non-GAAP Financial Information
This press release contains financial measures that are not measures presented in conformity with GAAP. They include EBITDA, Adjusted EBITDA, Adjusted EPS, Adjusted Operating Profit, Free Cash Flow and Net Debt. This press release includes reconciliations of these non-GAAP measures to the most comparable GAAP measure, including in the tables attached to this press release. Management believes these non-GAAP measures are commonly used financial measures for investors to evaluate Actuant's operating performance and financial position with respect to the periods presented and, when read in conjunction with the condensed consolidated financial statements, present a useful tool to evaluate ongoing operations and provide investors with metrics they can use to evaluate aspects of the Company's performance from period to period. In addition, these are some of the factors management uses in internal evaluations of the overall performance of the Company's business. Management acknowledges that there are many items that impact a company's reported results and the adjustments reflected in these non-GAAP measures are not intended to present all items that may have impacted these results. In addition, these non-GAAP measures are not necessarily comparable to similarly-titled measures used by other companies.
About Actuant Corporation
Actuant Corporation is a diversified industrial company serving customers from operations in more than 30 countries. The Actuant businesses are leaders in a broad array of niche markets including branded hydraulic tools and solutions; specialized products and services for energy markets and highly engineered position and motion control systems. The Company was founded in 1910 and is headquartered in Menomonee Falls, Wisconsin. Actuant trades on the NYSE under the symbol ATU. For further information on Actuant and its businesses, visit the Company's website at www.actuant.com.
(tables follow)
Actuant Corporation |
||||||||||||
Condensed Consolidated Balance Sheets |
||||||||||||
(Dollars in thousands) |
||||||||||||
(Unaudited) |
||||||||||||
May 31, |
August 31, |
|||||||||||
2019 |
2018 |
|||||||||||
ASSETS | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents |
$ |
201,334 |
|
$ |
250,490 |
|
||||||
Accounts receivable, net |
|
202,808 |
|
|
187,749 |
|
||||||
Inventories, net |
|
167,592 |
|
|
156,356 |
|
||||||
Assets held for sale |
|
- |
|
|
23,573 |
|
||||||
Other current assets |
|
44,475 |
|
|
42,732 |
|
||||||
Total current assets |
|
616,209 |
|
|
660,900 |
|
||||||
Property, plant and equipment, net |
|
89,973 |
|
|
90,220 |
|
||||||
Goodwill |
|
491,499 |
|
|
512,412 |
|
||||||
Other intangible assets, net |
|
158,182 |
|
|
181,037 |
|
||||||
Other long-term assets |
|
37,293 |
|
|
36,769 |
|
||||||
Total assets |
$ |
1,393,156 |
|
$ |
1,481,338 |
|
||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
Current liabilities | ||||||||||||
Trade accounts payable |
$ |
126,145 |
|
$ |
130,838 |
|
||||||
Accrued compensation and benefits |
|
39,929 |
|
|
54,508 |
|
||||||
Current maturities of debt |
|
6,250 |
|
|
30,000 |
|
||||||
Income taxes payable |
|
8,762 |
|
|
4,091 |
|
||||||
Liabilities held for sale |
|
- |
|
|
44,225 |
|
||||||
Other current liabilities |
|
52,477 |
|
|
67,299 |
|
||||||
Total current liabilities |
|
233,563 |
|
|
330,961 |
|
||||||
Long-term debt, net |
|
468,984 |
|
|
502,695 |
|
||||||
Deferred income taxes |
|
21,101 |
|
|
21,933 |
|
||||||
Pension and postretirement benefit liabilities |
|
14,275 |
|
|
14,869 |
|
||||||
Other long-term liabilities |
|
47,809 |
|
|
52,168 |
|
||||||
Total liabilities |
|
785,732 |
|
|
922,626 |
|
||||||
Shareholders' equity | ||||||||||||
Capital stock |
|
16,374 |
|
|
16,285 |
|
||||||
Additional paid-in capital |
|
177,584 |
|
|
167,448 |
|
||||||
Treasury stock |
|
(617,731 |
) |
|
(617,731 |
) |
||||||
Retained earnings |
|
1,184,749 |
|
|
1,166,955 |
|
||||||
Accumulated other comprehensive loss |
|
(153,552 |
) |
|
(174,245 |
) |
||||||
Stock held in trust |
|
(3,075 |
) |
|
(2,450 |
) |
||||||
Deferred compensation liability |
|
3,075 |
|
|
2,450 |
|
||||||
Total shareholders' equity |
|
607,424 |
|
|
558,712 |
|
||||||
Total liabilities and shareholders' equity |
$ |
1,393,156 |
|
$ |
1,481,338 |
|
Actuant Corporation | |||||||||||||
Condensed Consolidated Statements of Earnings | |||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||
May 31, |
May 31, |
May 31, |
May 31, |
||||||||||
2019 |
2018 |
2019 |
2018 |
||||||||||
Net sales |
$ |
295,266 |
|
$ |
317,096 |
|
$ |
859,704 |
$ |
881,216 |
|||
Cost of products sold |
|
183,365 |
|
|
200,587 |
|
|
545,309 |
|
574,100 |
|||
Gross profit |
|
111,901 |
|
|
116,509 |
|
|
314,395 |
|
307,116 |
|||
Selling, administrative and engineering expenses |
|
69,612 |
|
|
77,463 |
|
|
213,548 |
|
220,228 |
|||
Amortization of intangible assets |
|
4,411 |
|
|
5,184 |
|
|
12,131 |
|
15,483 |
|||
Restructuring charges |
|
1,115 |
|
|
1,170 |
|
|
1,578 |
|
11,249 |
|||
Impairment & divestiture charges |
|
(10,597 |
) |
|
- |
|
|
32,741 |
|
2,987 |
|||
Operating profit |
|
47,360 |
|
|
32,692 |
|
|
54,397 |
|
57,169 |
|||
Financing costs, net |
|
7,255 |
|
|
7,756 |
|
|
21,703 |
|
22,874 |
|||
Other expense (income), net |
|
378 |
|
|
(81 |
) |
|
1,946 |
|
830 |
|||
Income before income tax expense (benefit) |
|
39,727 |
|
|
25,017 |
|
|
30,748 |
|
33,465 |
|||
Income tax expense (benefit) |
|
7,309 |
|
|
(3,995 |
) |
|
13,029 |
|
17,448 |
|||
Net earnings |
$ |
32,418 |
|
$ |
29,012 |
|
$ |
17,719 |
$ |
16,017 |
|||
Earnings per share | |||||||||||||
Basic |
$ |
0.53 |
|
$ |
0.48 |
|
$ |
0.29 |
$ |
0.27 |
|||
Diluted |
|
0.52 |
|
|
0.48 |
|
|
0.29 |
|
0.26 |
|||
Weighted average common shares outstanding | |||||||||||||
Basic |
|
61,422 |
|
|
60,683 |
|
|
61,232 |
|
60,291 |
|||
Diluted |
|
61,840 |
|
|
61,064 |
|
|
61,701 |
|
60,850 |
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, |
||||||||||||
2019 |
2018 |
2019 |
2018 |
||||||||||||
Operating Activities | |||||||||||||||
Net earnings |
$ |
32,418 |
|
$ |
29,012 |
|
$ |
17,719 |
|
$ |
16,017 |
|
|||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||||||||
Impairment & divestiture charges, net of tax effect |
|
(11,162 |
) |
|
- |
|
|
29,362 |
|
|
12,385 |
|
|||
Depreciation and amortization |
|
9,263 |
|
|
10,415 |
|
|
25,604 |
|
|
30,800 |
|
|||
Stock-based compensation expense |
|
3,091 |
|
|
3,659 |
|
|
10,253 |
|
|
11,951 |
|
|||
Benefit for deferred income taxes |
|
(684 |
) |
|
(3,455 |
) |
|
(2,129 |
) |
|
(10,579 |
) |
|||
Amortization of debt issuance costs |
|
282 |
|
|
413 |
|
|
884 |
|
|
1,239 |
|
|||
Other non-cash adjustments |
|
199 |
|
|
147 |
|
|
262 |
|
|
347 |
|
|||
Changes in components of working capital and other, excluding acquisitions and divestitures: | |||||||||||||||
Accounts receivable |
|
11,393 |
|
|
(4,584 |
) |
|
(25,043 |
) |
|
(21,456 |
) |
|||
Inventories |
|
2,135 |
|
|
(4,157 |
) |
|
(22,662 |
) |
|
(22,590 |
) |
|||
Trade accounts payable |
|
1,443 |
|
|
6,915 |
|
|
(1,367 |
) |
|
5,162 |
|
|||
Prepaid expenses and other assets |
|
5,392 |
|
|
(4,524 |
) |
|
(4,029 |
) |
|
(13,692 |
) |
|||
Income tax accounts |
|
2,881 |
|
|
8,484 |
|
|
4,412 |
|
|
25,989 |
|
|||
Accrued compensation and benefits |
|
2,623 |
|
|
7,778 |
|
|
(13,817 |
) |
|
(2,181 |
) |
|||
Other accrued liabilities |
|
(6,769 |
) |
|
7,592 |
|
|
(18,258 |
) |
|
2,197 |
|
|||
Cash provided by operating activities |
|
52,505 |
|
|
57,695 |
|
|
1,191 |
|
|
35,589 |
|
|||
Investing Activities | |||||||||||||||
Capital expenditures |
|
(8,052 |
) |
|
(6,169 |
) |
|
(23,719 |
) |
|
(18,716 |
) |
|||
Proceeds from sale of property, plant and equipment |
|
1,297 |
|
|
35 |
|
|
1,349 |
|
|
148 |
|
|||
Rental asset buyout for Viking divestiture |
|
- |
|
|
- |
|
|
- |
|
|
(27,718 |
) |
|||
Proceeds from sale of business, net of transaction costs |
|
- |
|
|
- |
|
|
36,159 |
|
|
8,780 |
|
|||
Cash paid for business acquisitions, net of cash acquired |
|
- |
|
|
(5,809 |
) |
|
- |
|
|
(22,326 |
) |
|||
Cash (used in) provided by investing activities |
|
(6,755 |
) |
|
(11,943 |
) |
|
13,789 |
|
|
(59,832 |
) |
|||
Financing Activities | |||||||||||||||
Principal repayments on term loan |
|
(10,000 |
) |
|
(7,500 |
) |
|
(57,500 |
) |
|
(22,500 |
) |
|||
Payment for redemption of term loan |
|
(200,000 |
) |
|
- |
|
|
(200,000 |
) |
|
- |
|
|||
Proceeds from issuance of term loan |
|
200,000 |
|
|
- |
|
|
200,000 |
|
|
- |
|
|||
Payment of debt issuance costs |
|
(2,125 |
) |
|
- |
|
|
(2,125 |
) |
|
- |
|
|||
Stock option exercises & other |
|
321 |
|
|
130 |
|
|
1,352 |
|
|
10,435 |
|
|||
Taxes paid related to the net share settlement of equity awards |
|
(322 |
) |
|
(172 |
) |
|
(1,811 |
) |
|
(1,279 |
) |
|||
Cash dividend |
|
- |
|
|
- |
|
|
(2,439 |
) |
|
(2,390 |
) |
|||
Cash used in financing activities |
|
(12,126 |
) |
|
(7,542 |
) |
|
(62,523 |
) |
|
(15,734 |
) |
|||
Effect of exchange rate changes on cash |
|
(2,678 |
) |
|
(2,315 |
) |
|
(1,613 |
) |
|
(104 |
) |
|||
Net increase (decrease) in cash and cash equivalents |
|
30,946 |
|
|
35,895 |
|
|
(49,156 |
) |
|
(40,081 |
) |
|||
Cash and cash equivalents - beginning of period |
|
170,388 |
|
|
153,595 |
|
|
250,490 |
|
|
229,571 |
|
|||
Cash and cash equivalents - end of period |
$ |
201,334 |
|
$ |
189,490 |
|
$ |
201,334 |
|
$ |
189,490 |
ACTUANT CORPORATION | ||||||||||||||||||||||||||||||||
SUPPLEMENTAL UNAUDITED DATA | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
FISCAL 2018 | FISCAL 2019 | |||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | TOTAL | Q1 | Q2 | Q3 | Q4 | TOTAL | |||||||||||||||||||||||
SALES | ||||||||||||||||||||||||||||||||
INDUSTRIAL TOOLS & SERVICES SEGMENT |
$ |
141,991 |
|
$ |
136,986 |
|
$ |
158,735 |
|
$ |
153,373 |
|
$ |
591,085 |
|
$ |
148,655 |
|
$ |
149,521 |
|
$ |
166,732 |
|
$ |
- |
$ |
464,908 |
|
|||
ENGINEERED COMPONENTS & SYSTEMS SEGMENT |
|
146,964 |
|
|
138,179 |
|
|
158,361 |
|
|
148,022 |
|
|
591,526 |
|
|
143,876 |
|
|
122,386 |
|
|
128,534 |
|
|
- |
|
394,796 |
|
|||
TOTAL |
$ |
288,955 |
|
$ |
275,165 |
|
$ |
317,096 |
|
$ |
301,395 |
|
$ |
1,182,611 |
|
$ |
292,531 |
|
$ |
271,907 |
|
$ |
295,266 |
|
$ |
- |
$ |
859,704 |
|
|||
% SALES GROWTH | ||||||||||||||||||||||||||||||||
INDUSTRIAL TOOLS & SERVICES SEGMENT |
|
2 |
% |
|
5 |
% |
|
8 |
% |
|
12 |
% |
|
7 |
% |
|
5 |
% |
|
9 |
% |
|
5 |
% |
|
- |
|
6 |
% |
|||
ENGINEERED COMPONENTS & SYSTEMS SEGMENT |
|
16 |
% |
|
7 |
% |
|
7 |
% |
|
6 |
% |
|
9 |
% |
|
-2 |
% |
|
-11 |
% |
|
-19 |
% |
|
- |
|
-11 |
% |
|||
TOTAL |
|
9 |
% |
|
6 |
% |
|
7 |
% |
|
9 |
% |
|
8 |
% |
|
1 |
% |
|
-1 |
% |
|
-7 |
% |
|
- |
|
-2 |
% |
|||
OPERATING PROFIT (LOSS) | ||||||||||||||||||||||||||||||||
INDUSTRIAL TOOLS & SERVICES SEGMENT |
$ |
22,218 |
|
$ |
20,510 |
|
$ |
32,206 |
|
$ |
28,783 |
|
$ |
103,718 |
|
$ |
26,345 |
|
$ |
26,596 |
|
$ |
35,992 |
|
$ |
- |
$ |
88,933 |
|
|||
ENGINEERED COMPONENTS & SYSTEMS SEGMENT |
|
5,107 |
|
|
1,177 |
|
|
9,714 |
|
|
8,789 |
|
|
24,787 |
|
|
8,593 |
|
|
5,484 |
|
|
10,664 |
|
|
- |
|
24,741 |
|
|||
CORPORATE / GENERAL |
|
(6,023 |
) |
|
(4,612 |
) |
|
(8,042 |
) |
|
(5,298 |
) |
|
(23,976 |
) |
|
(7,400 |
) |
|
(8,780 |
) |
|
(6,786 |
) |
|
- |
|
(22,966 |
) |
|||
ADJUSTED OPERATING PROFIT |
$ |
21,302 |
|
$ |
17,075 |
|
$ |
33,878 |
|
$ |
32,274 |
|
$ |
104,529 |
|
$ |
27,538 |
|
$ |
23,300 |
|
$ |
39,870 |
|
$ |
- |
$ |
90,708 |
|
|||
IMPAIRMENT & DIVESTITURE CHARGES |
|
- |
|
|
(2,987 |
) |
|
- |
|
|
(70,071 |
) |
|
(73,058 |
) |
|
(36,453 |
) |
|
(6,886 |
) |
|
10,597 |
|
|
- |
|
(32,742 |
) |
|||
RESTRUCTURING CHARGES (1) |
|
(6,629 |
) |
|
(4,284 |
) |
|
(1,186 |
) |
|
(746 |
) |
|
(12,845 |
) |
|
(403 |
) |
|
(60 |
) |
|
(1,115 |
) |
|
- |
|
(1,578 |
) |
|||
DEBT MODIFICATION COSTS |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(288 |
) |
|
- |
|
(288 |
) |
|||
DEPRECIATION & AMORTIZATION TRUE UP (2) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(1,704 |
) |
|
- |
|
(1,704 |
) |
|||
OPERATING PROFIT (LOSS) |
$ |
14,673 |
|
$ |
9,804 |
|
$ |
32,692 |
|
$ |
(38,543 |
) |
$ |
18,626 |
|
$ |
(9,318 |
) |
$ |
16,354 |
|
$ |
47,360 |
|
$ |
- |
$ |
54,396 |
|
|||
ADJUSTED OPERATING PROFIT % | ||||||||||||||||||||||||||||||||
INDUSTRIAL TOOLS & SERVICES SEGMENT |
|
15.6 |
% |
|
15.0 |
% |
|
20.3 |
% |
|
18.8 |
% |
|
17.5 |
% |
|
17.7 |
% |
|
17.8 |
% |
|
21.6 |
% |
|
- |
|
19.1 |
% |
|||
ENGINEERED COMPONENTS & SYSTEMS SEGMENT |
|
3.5 |
% |
|
0.9 |
% |
|
6.1 |
% |
|
5.9 |
% |
|
4.2 |
% |
|
6.0 |
% |
|
4.5 |
% |
|
8.3 |
% |
|
- |
|
6.3 |
% |
|||
ADJUSTED OPERATING PROFIT % |
|
7.4 |
% |
|
6.2 |
% |
|
10.7 |
% |
|
10.7 |
% |
|
8.8 |
% |
|
9.4 |
% |
|
8.6 |
% |
|
13.5 |
% |
|
- |
|
10.6 |
% |
|||
EBITDA | ||||||||||||||||||||||||||||||||
INDUSTRIAL TOOLS & SERVICES SEGMENT |
$ |
25,567 |
|
$ |
24,594 |
|
$ |
36,394 |
|
$ |
32,763 |
|
$ |
119,318 |
|
$ |
30,038 |
|
$ |
30,153 |
|
$ |
40,015 |
|
$ |
- |
$ |
100,206 |
|
|||
ENGINEERED COMPONENTS & SYSTEMS SEGMENT |
|
11,004 |
|
|
7,267 |
|
|
15,093 |
|
|
15,114 |
|
|
48,478 |
|
|
12,841 |
|
|
8,486 |
|
|
12,651 |
|
|
- |
|
33,978 |
|
|||
CORPORATE / GENERAL |
|
(5,508 |
) |
|
(5,073 |
) |
|
(7,113 |
) |
|
(4,672 |
) |
|
(22,366 |
) |
|
(7,362 |
) |
|
(8,544 |
) |
|
(5,615 |
) |
|
- |
|
(21,521 |
) |
|||
ADJUSTED EBITDA |
$ |
31,063 |
|
$ |
26,788 |
|
$ |
44,374 |
|
$ |
43,205 |
|
$ |
145,430 |
|
$ |
35,517 |
|
$ |
30,095 |
|
$ |
47,051 |
|
$ |
- |
$ |
112,663 |
|
|||
IMPAIRMENT & DIVESTITURE CHARGES |
|
- |
|
|
(2,987 |
) |
|
- |
|
|
(70,071 |
) |
|
(73,058 |
) |
|
(36,453 |
) |
|
(6,886 |
) |
|
10,597 |
|
|
- |
|
(32,742 |
) |
|||
RESTRUCTURING CHARGES (1) |
|
(6,629 |
) |
|
(4,284 |
) |
|
(1,186 |
) |
|
(746 |
) |
|
(12,845 |
) |
|
(403 |
) |
|
(60 |
) |
|
(1,115 |
) |
|
- |
|
(1,578 |
) |
|||
DEBT MODIFICATION COSTS |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(288 |
) |
|
- |
|
(288 |
) |
|||
EBITDA |
$ |
24,434 |
|
$ |
19,517 |
|
$ |
43,188 |
|
$ |
(27,612 |
) |
$ |
59,527 |
|
$ |
(1,339 |
) |
$ |
23,149 |
|
$ |
56,245 |
|
$ |
- |
$ |
78,055 |
|
|||
ADJUSTED EBITDA % | ||||||||||||||||||||||||||||||||
INDUSTRIAL TOOLS & SERVICES SEGMENT |
|
18.0 |
% |
|
18.0 |
% |
|
22.9 |
% |
|
21.4 |
% |
|
20.2 |
% |
|
20.2 |
% |
|
20.2 |
% |
|
24.0 |
% |
|
- |
|
21.6 |
% |
|||
ENGINEERED COMPONENTS & SYSTEMS SEGMENT |
|
7.5 |
% |
|
5.3 |
% |
|
9.5 |
% |
|
10.2 |
% |
|
8.2 |
% |
|
8.9 |
% |
|
6.9 |
% |
|
9.8 |
% |
|
- |
|
8.6 |
% |
|||
ADJUSTED EBITDA % |
|
10.8 |
% |
|
9.7 |
% |
|
14.0 |
% |
|
14.3 |
% |
|
12.3 |
% |
|
12.1 |
% |
|
11.1 |
% |
|
15.9 |
% |
|
- |
|
13.1 |
% |
|||
Notes: | ||||||||||||||||||||||||||||||||
(1) Approximately $0.8 million of the Q2 fiscal 2018 restructuring charges were recorded in cost of products sold. De minimis restructuring charges were also recorded in cost of products sold in Q3 fiscal 2018. | ||||||||||||||||||||||||||||||||
(2) Represents the depreciation and amortization expense true up for the Cortland business assets that were reclassified out of held for sale in Q3 fiscal 2019, as though the assets had never been classified as held for sale. |
ACTUANT CORPORATION |
|||||||||||||||||||||||||||||||||
SUPPLEMENTAL UNAUDITED DATA | |||||||||||||||||||||||||||||||||
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES | |||||||||||||||||||||||||||||||||
(Dollars in thousands, except for per share amounts) | |||||||||||||||||||||||||||||||||
FISCAL 2018 | FISCAL 2019 | ||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | TOTAL | Q1 | Q2 | Q3 | Q4 | TOTAL | ||||||||||||||||||||||||
ADJUSTED EARNINGS (1) | |||||||||||||||||||||||||||||||||
NET EARNINGS (LOSS) (GAAP MEASURE) |
$ |
5,226 |
$ |
(18,221 |
) |
$ |
29,012 |
|
$ |
(37,664 |
) |
$ |
(21,648 |
) |
$ |
(17,452 |
) |
$ |
2,753 |
|
$ |
32,418 |
|
$ |
- |
$ |
17,719 |
|
|||||
IMPAIRMENT & DIVESTITURE CHARGES, NET OF TAX EFFECT |
|
- |
|
12,385 |
|
|
- |
|
|
62,949 |
|
|
75,334 |
|
|
33,836 |
|
|
6,688 |
|
|
(11,162 |
) |
|
- |
|
29,362 |
|
|||||
RESTRUCTURING CHARGES, NET OF TAX EFFECT (1) |
|
6,254 |
|
3,784 |
|
|
(249 |
) |
|
(337 |
) |
|
9,452 |
|
|
300 |
|
|
(191 |
) |
|
(749 |
) |
|
- |
|
(640 |
) |
|||||
ACCELERATED DEBT ISSUANCES & MODIFICATION COSTS, |
|
- |
|
- |
|
|
- |
|
|
601 |
|
|
601 |
|
|
- |
|
|
- |
|
|
358 |
|
|
- |
|
358 |
|
|||||
NET OF TAX EFFECT | |||||||||||||||||||||||||||||||||
DEPRECIATION & AMORTIZATION TRUE UP, NET OF TAX EFFECT |
|
- |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
1,302 |
|
|
- |
|
1,302 |
|
|||||
OTHER INCOME TAX (BENEFIT) EXPENSE |
|
- |
|
9,705 |
|
|
(4,891 |
) |
|
(1,831 |
) |
|
2,983 |
|
|
- |
|
|
2,258 |
|
|
5,412 |
|
|
- |
|
7,670 |
|
|||||
ADJUSTED EARNINGS |
$ |
11,480 |
$ |
7,653 |
|
$ |
23,872 |
|
$ |
23,718 |
|
$ |
66,722 |
|
$ |
16,684 |
|
$ |
11,508 |
|
$ |
27,579 |
|
$ |
- |
$ |
55,771 |
|
|||||
ADJUSTED DILUTED EARNINGS PER SHARE (2) | |||||||||||||||||||||||||||||||||
NET EARNINGS (LOSS) (GAAP MEASURE) |
$ |
0.09 |
$ |
(0.30 |
) |
$ |
0.48 |
|
$ |
(0.62 |
) |
$ |
(0.36 |
) |
$ |
(0.29 |
) |
$ |
0.04 |
|
$ |
0.52 |
|
$ |
- |
$ |
0.29 |
|
|||||
IMPAIRMENT & DIVESTITURE CHARGES, NET OF TAX EFFECT |
|
- |
|
0.21 |
|
|
- |
|
|
1.03 |
|
|
1.24 |
|
|
0.55 |
|
|
0.11 |
|
|
(0.18 |
) |
|
- |
|
0.47 |
|
|||||
RESTRUCTURING CHARGES, NET OF TAX EFFECT (1) |
|
0.10 |
|
0.06 |
|
|
- |
|
|
(0.01 |
) |
|
0.15 |
|
|
0.01 |
|
|
- |
|
|
(0.01 |
) |
|
- |
|
(0.01 |
) |
|||||
ACCELERATED DEBT ISSUANCES & MODIFICATION COSTS, |
|
- |
|
- |
|
|
- |
|
|
0.01 |
|
|
0.01 |
|
|
- |
|
|
- |
|
|
0.01 |
|
|
- |
|
0.01 |
|
|||||
NET OF TAX EFFECT | |||||||||||||||||||||||||||||||||
DEPRECIATION & AMORTIZATION TRUE UP, NET OF TAX EFFECT |
|
- |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
0.02 |
|
|
- |
|
0.02 |
|
|||||
OTHER INCOME TAX (BENEFIT) EXPENSE |
|
- |
|
0.16 |
|
|
(0.09 |
) |
|
(0.02 |
) |
|
0.05 |
|
|
- |
|
|
0.04 |
|
|
0.09 |
|
|
- |
|
0.12 |
|
|||||
ADJUSTED DILUTED EARNINGS PER SHARE |
$ |
0.19 |
$ |
0.13 |
|
$ |
0.39 |
|
$ |
0.39 |
|
$ |
1.09 |
|
$ |
0.27 |
|
$ |
0.19 |
|
$ |
0.45 |
|
$ |
- |
$ |
0.90 |
|
|||||
ADJUSTED EBITDA (3) | |||||||||||||||||||||||||||||||||
NET EARNINGS (LOSS) (GAAP MEASURE) |
$ |
5,226 |
$ |
(18,221 |
) |
$ |
29,012 |
|
$ |
(37,664 |
) |
$ |
(21,648 |
) |
$ |
(17,452 |
) |
$ |
2,753 |
|
$ |
32,418 |
|
$ |
- |
$ |
17,719 |
|
|||||
FINANCING COSTS, NET |
|
7,514 |
|
7,604 |
|
|
7,756 |
|
|
8,617 |
|
|
31,491 |
|
|
7,295 |
|
|
7,153 |
|
|
7,255 |
|
|
- |
|
21,703 |
|
|||||
INCOME TAX (BENEFIT) EXPENSE |
|
1,604 |
|
19,839 |
|
|
(3,995 |
) |
|
(8,472 |
) |
|
8,976 |
|
|
(72 |
) |
|
5,792 |
|
|
7,309 |
|
|
- |
|
13,029 |
|
|||||
DEPRECIATION & AMORTIZATION |
|
10,090 |
|
10,295 |
|
|
10,415 |
|
|
9,907 |
|
|
40,708 |
|
|
8,890 |
|
|
7,451 |
|
|
9,263 |
|
|
- |
|
25,604 |
|
|||||
EBITDA |
$ |
24,434 |
$ |
19,517 |
|
$ |
43,188 |
|
$ |
(27,612 |
) |
$ |
59,527 |
|
$ |
(1,339 |
) |
$ |
23,149 |
|
$ |
56,245 |
|
$ |
- |
$ |
78,055 |
|
|||||
IMPAIRMENT & OTHER DIVESTITURE CHARGES |
|
- |
|
2,987 |
|
|
- |
|
|
70,071 |
|
|
73,058 |
|
|
36,453 |
|
|
6,886 |
|
|
(10,597 |
) |
|
- |
|
32,742 |
|
|||||
RESTRUCTURING CHARGES |
|
6,629 |
|
4,284 |
|
|
1,186 |
|
|
746 |
|
|
12,845 |
|
|
403 |
|
|
60 |
|
|
1,115 |
|
|
- |
|
1,578 |
|
|||||
DEBT MODIFICATION COSTS |
|
- |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
288 |
|
|
- |
|
288 |
|
|||||
ADJUSTED EBITDA |
$ |
31,063 |
$ |
26,788 |
|
$ |
44,374 |
|
$ |
43,205 |
|
$ |
145,430 |
|
$ |
35,517 |
|
$ |
30,095 |
|
$ |
47,051 |
|
$ |
- |
$ |
112,663 |
|
|||||
FOOTNOTES | |||||||||||||||||||||||||||||||||
NOTE: |
The total of the individual quarters may not equal the annual total due to rounding. | ||||||||||||||||||||||||||||||||
(1) |
Approximately $0.8 million of Q2 fiscal 2018 restructuring charges were recorded in cost of products sold. De minimis restructuring charges were also recorded in cost of products sold in Q3 fiscal 2018. | ||||||||||||||||||||||||||||||||
(2) |
Adjusted earnings and adjusted diluted earnings per share represent net earnings (loss) and diluted earnings (loss) per share per the Condensed Consolidated Statements of Operations 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 (loss) or diluted earnings (loss) per share or 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. The total of the individual components may not equal due to rounding. | ||||||||||||||||||||||||||||||||
(3) |
EBITDA represents net earnings (loss) before financing costs, net, income tax (benefit) expense, and depreciation & amortization. EBITDA is not a calculation based upon generally accepted accounting principles (GAAP). The amounts included in the EBITDA and Adjusted EBITDA calculation, however, are derived from amounts included in the Condensed Consolidated Statements of Earnings. EBITDA should not be considered as an alternative to net earnings (loss), operating profit (loss) or operating cash flows. Actuant has presented EBITDA because it regularly reviews this performance measure. In addition, EBITDA is used by many of our investors and lenders, and is presented as a convenience to them. 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. |
ACTUANT CORPORATION | ||||||||||||||
SUPPLEMENTAL UNAUDITED DATA | ||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP GUIDANCE | ||||||||||||||
(Dollars in millions, except for per share amounts) | ||||||||||||||
Q4 FISCAL 2019 | FISCAL 2019 | |||||||||||||
LOW | HIGH | LOW | HIGH | |||||||||||
RECONCILIATION OF GAAP DILUTED EARNINGS PER SHARE TO ADJUSTED | ||||||||||||||
DILUTED EARNINGS PER SHARE GUIDANCE | ||||||||||||||
GAAP DILUTED EARNINGS PER SHARE |
$ |
0.14 |
$ |
0.22 |
$ |
0.43 |
|
$ |
0.51 |
|
||||
IMPAIRMENT & OTHER DIVESTITURE CHARGES, NET OF TAX EFFECT | TBD | TBD |
|
0.47 |
|
|
0.47 |
|
||||||
RESTRUCTURING CHARGES, NET OF TAX EFFECT |
|
0.11 |
|
0.09 |
|
0.10 |
|
|
0.08 |
|
||||
ACCELERATED DEBT ISSUANCES & MODIFICATION COSTS, NET OF TAX EFFECT |
|
- |
|
- |
|
0.01 |
|
|
0.01 |
|
||||
DEPRECIATION & AMORTIZATION TRUE UP, NET OF TAX EFFECT |
|
- |
|
- |
|
0.02 |
|
|
0.02 |
|
||||
OTHER INCOME TAX (BENEFIT) EXPENSE | TBD | TBD |
|
0.12 |
|
|
0.12 |
|
||||||
ADJUSTED DILUTED EARNINGS PER SHARE GUIDANCE |
$ |
0.25 |
$ |
0.31 |
$ |
1.15 |
|
$ |
1.21 |
|
||||
RECONCILIATION OF GAAP CASH FLOW FROM OPERATIONS TO FREE CASH FLOW | ||||||||||||||
CASH FLOW FROM OPERATIONS |
$ |
87 |
|
$ |
100 |
|
||||||||
CAPITAL EXPENDITURES |
|
(25 |
) |
|
(30 |
) |
||||||||
OTHER |
|
- |
|
|
- |
|
||||||||
FREE CASH FLOW GUIDANCE |
$ |
62 |
|
$ |
70 |
|
||||||||
FOOTNOTES | ||||||||||||||
NOTE: |
Management does not provide guidance on GAAP financial measures as we are unable to predict and estimate with certainty items such as potential impairments, refinancing costs, business divestiture gains/losses, discrete tax adjustments, or other items impacting GAAP financial metrics. As a result, we have included above only those items about which we are aware and are reasonably likely to occur during the guidance period covered. |
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