-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OjTwHQPsy9m0qeQtRikFrUnIfQUtb2wHMl/39uFHzGw28BGQMeh6/TZTtjv+krTQ UWUjyRNj1grCpaZrPrJ5nA== 0001157523-07-002883.txt : 20070322 0001157523-07-002883.hdr.sgml : 20070322 20070322080152 ACCESSION NUMBER: 0001157523-07-002883 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070322 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070322 DATE AS OF CHANGE: 20070322 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ACTUANT CORP CENTRAL INDEX KEY: 0000006955 STANDARD INDUSTRIAL CLASSIFICATION: MISC INDUSTRIAL & COMMERCIAL MACHINERY & EQUIPMENT [3590] IRS NUMBER: 390168610 STATE OF INCORPORATION: WI FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11288 FILM NUMBER: 07710538 BUSINESS ADDRESS: STREET 1: ATTN: TIMOTHY J. TESKE STREET 2: 13000 WEST SILVER SPRING DRIVE CITY: BUTLER STATE: WI ZIP: 53007 BUSINESS PHONE: 262-373-7438 MAIL ADDRESS: STREET 1: ATTN: TIMOTHY J. TESKE STREET 2: 13000 WEST SILVER SPRING DRIVE CITY: BUTLER STATE: WI ZIP: 53007 FORMER COMPANY: FORMER CONFORMED NAME: APPLIED POWER INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: APPLIED POWER INDUSTRIES INC DATE OF NAME CHANGE: 19730123 8-K 1 a5360743.txt ACTUANT CORPORATION 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): March 22, 2007 ACTUANT CORPORATION (Exact name of Registrant as specified in its charter) Wisconsin 1-11288 39-0168610 (State or other jurisdiction (Commission File (I.R.S. Employer of incorporation) Number) Identification No.) 13000 West Silver Spring Drive Butler, Wisconsin 53007 Mailing address: P.O. Box 3241, Milwaukee, Wisconsin 53201 (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code: (414) 352-4160 (Former name or address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02 Results of Operations and Financial Condition. On March 22, 2007, Actuant Corporation (the "Company") announced its results of operations for the second quarter ended February 28, 2007. A copy of the press release announcing the Company's results for the second quarter ended February 28, 2007 is attached as Exhibit 99.1 to this report on Form 8-K. Item 9.01 Financial Statements and Exhibits. (d) Exhibits 99.1 Press Release of the Company dated March 22, 2007. 2 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ACTUANT CORPORATION (Registrant) Date: March 22, 2007 By: /s/ Andrew G. Lampereur -------------------------- Andrew G. Lampereur Executive Vice President and Chief Financial Officer 3 EX-99.1 2 a5360743-ex991.txt EXHIBIT 99.1 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 -----END PRIVACY-ENHANCED MESSAGE-----