EX-99.1 2 a6060056ex991.htm EXHIBIT 99.1

Exhibit 99.1

Actuant Reclassifies Historical Results for Discontinued Operations

MILWAUKEE--(BUSINESS WIRE)--September 28, 2009--Actuant Corporation (NYSE:ATU) completed the sale of its Acme Aerospace and BH Electronics businesses during the fiscal quarter ended August 31, 2009. As a result of these divestitures, the Company has reclassified the historical operating results of these businesses to discontinued operations (see attachment).

On Wednesday September 30, 2009 the Company will be announcing financial results for its fourth quarter and fiscal year ended August 31, 2009. Results will include approximately $13 million of earnings from discontinued operations, net of income taxes, primarily reflecting the net gain on the divestitures noted above. During the quarter, the Company recognized an approximately $2 million pre-tax debt extinguishment charge upon the retirement of its bank term loan with the proceeds from its June equity offering. Excluding discontinued operations, restructuring costs and the debt extinguishment charge, the Company’s fourth quarter results from continuing operations will be within the $275-$295 million sales and $0.12-$0.20 diluted earnings per share guidance ranges it provided in its June 17, 2009 press release.

(tables follow)

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 branded hydraulic and electrical tools and supplies, umbilical, rope and cable solutions as well as highly engineered position and motion control systems. The Company employs a workforce of approximately 6,000 worldwide. Actuant trades on the NYSE under the symbol ATU.

Safe Harbor

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 Form 10-K 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.

Actuant Corporation
Condensed Consolidated Statements of Operations - REVISED FOR DISCONTINUED OPERATIONS PRESENTATION
(Dollars in thousands except per share amounts)
(Unaudited)
         
 
Three Months Ended Twelve Three Months Ended Nine
November 30, February 29, May 31, August 31, Months Ended November 30, February 28, May 31, Months Ended
2007 2008 2008 2008 August 31, 2008 2008 2009 2009

May 31, 2009

 
Net sales $ 400,999 $ 386,910 $ 431,811 $ 393,470 $ 1,613,190 $ 370,789 $ 293,799 $ 285,154 $ 949,742
Cost of products sold 263,827   256,003   281,092 251,219   1,052,141   240,564   199,291   189,793   629,648  
Gross profit 137,172 130,907 150,719 142,251 561,049 130,225 94,508 95,361 320,094
 
Selling, administrative and engineering expenses 79,574 81,129 86,762 83,144 330,609 73,676 73,002 63,841 210,518
Restructuring charges 5,521 4,952 - - 10,473 674 3,039 10,473 14,186
Impairment charges - - - - - 26,553 - 4,768 31,321
Amortization of intangible assets 3,031   3,235   3,797 3,870   13,933   4,231   4,983   5,132   14,346  
Operating profit 49,046 41,591 60,160 55,237 206,034 25,091 13,484 11,147 49,723
 
Financing costs, net 9,300 9,032 9,190 8,887 36,409 12,235 9,904 9,025 31,164
Other (income) expense, net (1,110 ) (670 ) 201 (1,412 ) (2,991 ) (534 ) (35 ) 782   213  
Earnings from continuing operations before
income tax expense and minority interest 40,856 33,229 50,769 47,762 172,616 13,390 3,615 1,340 18,346
 
Income tax expense (benefit) 14,537 11,738 12,959 14,182 53,416 1,497 (604 ) (1,907 ) (1,014 )
Minority interest, net of income taxes (6 ) (7 ) 37 (2 ) 22   (5 ) (10 ) 36   21  
 
Earnings from continuing operations 26,325 21,498 37,773 33,582 119,178 11,898 4,229 3,211 19,339
 
Earnings (loss) from discontinued operations,
net of income taxes 1,102 741 862 661 3,366 (300 ) (985 ) (20,846 ) (22,131 )
                 
Net earnings (loss) $ 27,427   $ 22,239   $ 38,635 $ 34,243   $ 122,544   $ 11,598   $ 3,244   $ (17,635 ) $ (2,792 )
 
Earnings from continuing operations per share
Basic $ 0.47 $ 0.39 $ 0.68 $ 0.60 $ 2.14 $ 0.21 $ 0.08 $ 0.06 $ 0.34
Diluted 0.42 0.34 0.59 0.53 1.88 0.19 0.08 0.06 0.33
 
Earnings (loss) per share
Basic $ 0.49 $ 0.40 $ 0.69 $ 0.61 $ 2.20 $ 0.21 $ 0.06 $ (0.31 ) $ (0.05 )
Diluted 0.43 0.35 0.60 0.54 1.93 0.19 0.06 (0.27 ) (0.01 )
 
Weighted average common shares outstanding
Basic 55,609 55,815 55,874 55,953 55,813 56,022 56,170 56,252 56,148
Diluted 64,654 64,716 64,945 65,011 64,833 64,395 64,256 64,051 64,234
ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA
(Dollars in thousands)
       
FISCAL 2008 FISCAL 2009
Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 TOTAL
SALES
INDUSTRIAL SEGMENT $ 87,412 $ 87,344 $ 101,593 $ 98,149 $ 374,498 $ 90,524 $ 71,682 $ 62,843 $ 225,049
ENERGY SEGMENT 49,677 43,458 58,442 60,823 212,400 73,982 59,526 62,251 195,759
ELECTRICAL SEGMENT 130,130 126,705 126,865 112,745 496,445 102,898 89,719 83,752 276,369
ENGINEERED SOLUTIONS SEGMENT 133,780   129,403   144,911   121,753   529,847   103,385   72,872   76,308   252,565  
TOTAL $ 400,999   $ 386,910   $ 431,811   $ 393,470   $ 1,613,190   $ 370,789   $ 293,799   $ 285,154   $ 949,742  
 
% SALES GROWTH
INDUSTRIAL SEGMENT 37 % 33 % 38 % 30 % 34 % 4 % -18 % -38 % -19 %
ENERGY SEGMENT 24 % 41 % 38 % 29 % 32 % 49 % 37 % 7 % 29 %
ELECTRICAL SEGMENT 2 % -1 % -5 % -15 % -5 % -21 % -29 % -34 % -28 %
ENGINEERED SOLUTIONS SEGMENT 23 % 16 % 10 % -1 % 11 % -23 % -44 % -47 % -38 %
TOTAL 18 % 15 % 13 % 4 % 12 % -8 % -24 % -34 % -22 %
 
OPERATING PROFIT (LOSS)
INDUSTRIAL SEGMENT $ 25,662 $ 25,990 $ 31,054 $ 31,103 $ 113,809 $ 26,107 $ 15,972 $ 15,597 $ 57,676
ENERGY SEGMENT 12,314 6,767 12,638 16,266 47,985 15,647 5,895 11,772 33,314
ELECTRICAL SEGMENT 10,299 11,044 8,546 5,121 35,010 5,896 2,404 3,119 11,419
ENGINEERED SOLUTIONS SEGMENT 12,707 10,485 16,125 11,296 50,613 7,865 (2,735 ) 991 6,121
CORPORATE / GENERAL (6,415 ) (7,743 ) (8,203 ) (8,549 ) (30,910 ) (3,197 ) (5,013 ) (4,815 ) (13,025 )
TOTAL - EXCLUDING IMPAIRMENT / RESTRUCTURING CHARGES $ 54,567 $ 46,543 $ 60,160 $ 55,237 $ 216,507 $ 52,318 $ 16,523 $ 26,664 $ 95,505
IMPAIRMENT CHARGES - - - - - (26,553 ) - (4,768 ) (31,321 )
RESTRUCTURING CHARGES (1) (5,521 ) (4,952 ) -   -   (10,473 ) (674 ) (3,039 ) (10,749 ) (14,462 )
TOTAL $ 49,046   $ 41,591   $ 60,160   $ 55,237   $ 206,034   $ 25,091   $ 13,484   $ 11,147   $ 49,723  
 
OPERATING PROFIT %
INDUSTRIAL SEGMENT 29.4 % 29.8 % 30.6 % 31.7 % 30.4 % 28.8 % 22.3 % 24.8 % 25.6 %
ENERGY SEGMENT 24.8 % 15.6 % 21.6 % 26.7 % 22.6 % 21.1 % 9.9 % 18.9 % 17.0 %
ELECTRICAL SEGMENT 7.9 % 8.7 % 6.7 % 4.5 % 7.1 % 5.7 % 2.7 % 3.7 % 4.1 %
ENGINEERED SOLUTIONS SEGMENT 9.5 % 8.1 % 11.1 % 9.3 % 9.6 % 7.6 % -3.8 % 1.3 % 2.4 %
TOTAL (INCLUDING CORPORATE) - EXCLUDING IMPAIRMENT / RESTRUCTURING CHARGES 13.6 % 12.0 % 13.9 % 14.0 % 13.4 % 14.1 % 5.6 % 9.4 % 10.1 %
 
EBITDA
INDUSTRIAL SEGMENT $ 28,017 $ 27,840 $ 32,617 $ 32,599 $ 121,073 $ 27,139 $ 17,058 $ 18,208 $ 62,405
ENERGY SEGMENT 14,553 9,546 15,771 20,399 60,269 21,671 11,492 15,080 48,243
ELECTRICAL SEGMENT 12,929 13,293 10,863 7,163 44,248 7,103 3,440 5,307 15,850
ENGINEERED SOLUTIONS SEGMENT 16,894 14,707 19,756 16,051 67,408 12,412 1,264 3,915 17,591
CORPORATE / GENERAL (6,632 ) (7,522 ) (7,991 ) (8,163 ) (30,308 ) (3,110 ) (4,058 ) (4,237 ) (11,405 )
TOTAL - EXCLUDING IMPAIRMENT / RESTRUCTURING CHARGES $ 65,761 $ 57,864 $ 71,016 $ 68,049 $ 262,690 $ 65,215 $ 29,196 $ 38,273 $ 132,684
IMPAIRMENT CHARGES - - - - - (26,553 ) - (4,768 ) (31,321 )
RESTRUCTURING CHARGES (1) (5,521 ) (4,952 ) -   -   (10,473 ) (674 ) (3,039 ) (10,749 ) (14,462 )
TOTAL $ 60,240   $ 52,912   $ 71,016   $ 68,049   $ 252,217   $ 37,988   $ 26,157   $ 22,756   $ 86,901  
 
EBITDA %
INDUSTRIAL SEGMENT 32.1 % 31.9 % 32.1 % 33.2 % 32.3 % 30.0 % 23.8 % 29.0 % 27.7 %
ENERGY SEGMENT 29.3 % 22.0 % 27.0 % 33.5 % 28.4 % 29.3 % 19.3 % 24.2 % 24.6 %
ELECTRICAL SEGMENT 9.9 % 10.5 % 8.6 % 6.4 % 8.9 % 6.9 % 3.8 % 6.3 % 5.7 %
ENGINEERED SOLUTIONS SEGMENT 12.6 % 11.4 % 13.6 % 13.2 % 12.7 % 12.0 % 1.7 % 5.1 % 7.0 %
TOTAL (INCLUDING CORPORATE) - EXCLUDING IMPAIRMENT / RESTRUCTURING CHARGES 16.4 % 15.0 % 16.4 % 17.3 % 16.3 % 17.6 % 9.9 % 13.4 % 14.0 %

Note: The total of the individual quarters may not equal the annual total due to rounding.

(1) The restructuring charge for the third quarter of fiscal 2009 and year-to-date fiscal 2009 includes $276 of charges included in cost of products sold on the Condensed Consolidated Statements of Operations.

ACTUANT CORPORATION
Reconciliation of GAAP measures to non-GAAP measures
(Dollars in thousands, except for per share amounts)
       
FISCAL 2008 FISCAL 2009
Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 TOTAL
NET EARNINGS (LOSS), EXCLUDING RESTRUCTURING CHARGES,
IMPAIRMENT CHARGES, INCOME TAX ADJUSTMENTS / CREDITS,
DEBT EXTINGUISHMENT CHARGES, AND DISCONTINUED OPERATIONS (1)
NET EARNINGS (LOSS) (GAAP MEASURE) $ 27,427 $ 22,239 $ 38,635 $ 34,243 $ 122,544 $ 11,598 $ 3,244 $ (17,635 ) $ (2,792 )
RESTRUCTURING CHARGES, NET OF TAX BENEFIT 5,521 4,729 - - 10,250 481 2,028 7,173 9,682
IMPAIRMENT CHARGES, NET OF TAX BENEFIT - - - - - 16,463 - 2,981 19,444
TAX ADJUSTMENTS / CREDITS - - (2,625 ) - (2,625 ) - - - -
DEBT EXTINGUISHMENT CHARGES, NET OF TAX BENEFIT - - - - - (236 ) - - (236 )
DISCONTINUED OPERATIONS, NET OF TAX BENEFIT (1,102 ) (741 ) (862 ) (661 ) (3,366 ) 300   985   20,846   22,131  
TOTAL (NON-GAAP MEASURE) $ 31,846   $ 26,227   $ 35,148   $ 33,582   $ 126,803   $ 28,606   $ 6,257   $ 13,365   $ 48,228  
 
DILUTED EARNINGS (LOSS) PER SHARE, EXCLUDING RESTRUCTURING CHARGES,
IMPAIRMENT CHARGES, INCOME TAX ADJUSTMENTS / CREDITS,
DEBT EXTINGUISHMENT CHARGES, AND DISCONTINUED OPERATIONS (1)
NET EARNINGS (LOSS) (GAAP MEASURE) $ 0.43 $ 0.35 $ 0.60 $ 0.54 $ 1.93 $ 0.19 $ 0.06 $ (0.27 ) $ (0.01 )
RESTRUCTURING CHARGES, NET OF TAX BENEFIT 0.09 0.07 - - 0.16 0.01 0.03 0.11 0.15
IMPAIRMENT CHARGES, NET OF TAX BENEFIT - - - - - 0.26 - 0.05 0.30
TAX ADJUSTMENTS / CREDITS - - (0.04 ) - (0.04 ) - - - -
DEBT EXTINGUISHMENT CHARGES, NET OF TAX BENEFIT - - - - - (0.00 ) - - (0.00 )
DISCONTINUED OPERATIONS, NET OF TAX BENEFIT (0.01 ) (0.01 ) (0.01 ) (0.01 ) (0.04 ) 0.00   0.02   0.33   0.34  
TOTAL (NON-GAAP MEASURE) $ 0.51   $ 0.41   $ 0.55   $ 0.53   $ 2.00   $ 0.45   $ 0.11   $ 0.22   $ 0.78  
 
EBITDA (2)
NET EARNINGS (LOSS) (GAAP MEASURE) $ 27,427 $ 22,239 $ 38,635 $ 34,243 $ 122,544 $ 11,598 $ 3,244 $ (17,635 ) $ (2,792 )
FINANCING COSTS, NET 9,300 9,032 9,190 8,887 36,409 12,235 9,904 9,025 31,164
INCOME TAX EXPENSE 14,537 11,738 12,959 14,182 53,416 1,497 (604 ) (1,907 ) (1,014 )
DEPRECIATION & AMORTIZATION 10,084 10,651 11,057 11,400 43,192 12,363 12,638 12,391 37,391
MINORITY INTEREST, NET OF INCOME TAX (6 ) (7 ) 37 (2 ) 22 (5 ) (10 ) 36 21
DISCONTINUED OPERATIONS, NET OF TAX BENEFIT (1,102 ) (741 ) (862 ) (661 ) (3,366 ) 300   985   20,846   22,131  
EBITDA (NON-GAAP MEASURE) $ 60,240 $ 52,912 $ 71,016 $ 68,049 $ 252,217 $ 37,988 $ 26,157 $ 22,756 $ 86,901
IMPAIRMENT CHARGES - - - - - 26,553 - 4,768 31,321
RESTRUCTURING CHARGES 5,521 4,952 - - 10,473 674 3,039 10,749 14,462
EBITDA (NON-GAAP MEASURE) - EXCLUDING DISCONTINUED OPERATIONS,              
IMPAIRMENT, AND RESTRUCTURING CHARGES $ 65,761   $ 57,864   $ 71,016   $ 68,049   $ 262,690   $ 65,215   $ 29,196   $ 38,273   $ 132,684  
(1)  

Net earnings and diluted earnings per share excluding restructuring charges, impairment charges, income tax adjustments / credits, debt extinguishment charges and discontinued operations represent net earnings and diluted earnings 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 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.  The total of the individual components may not equal due to rounding.

 
(2)

EBITDA represents net earnings before financing costs, net, income tax expense, depreciation & amortization, minority interest and discontinued operations.  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 Condensed Consolidated Statements of Operations 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.  The total of the individual quarters may not equal the annual total due to rounding.

CONTACT:
Actuant Corporation
Karen Bauer
Director, Investor Relations
262-373-7462