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 21, 2019
ACTUANT
CORPORATION
(Exact
name of Registrant as specified in its charter)
Wisconsin |
1-11288 |
39-0168610 |
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
N86 W12500 WESTBROOK CROSSING |
MENOMONEE FALLS, WISCONSIN 53051 |
|
Mailing address: P.O. Box 3241, Milwaukee, Wisconsin 53201 |
(Address of principal executive offices) (Zip code) |
Registrant’s
telephone number, including area code: (262) 293-1500
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))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). |
Emerging growth company ⃞ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ⃞ |
Item 2.02 Results of Operations and Financial Condition.
On March 21, 2019, Actuant Corporation (the “Company”) announced its results of operations for the second quarter ended February 28, 2019. A copy of the press release announcing the Company's results for the second quarter ended February 28, 2019 is attached as Exhibit 99.1 to this Current Report on Form 8-K.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
99.1 Press Release of the Company dated March 21, 2019.
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 21, 2019 | By: |
/s/ Fabrizio Rasetti |
|
|
Fabrizio Rasetti |
|
|
Executive Vice President, General Counsel |
||
|
and Secretary |
- 3 -
Exhibit 99.1
Actuant Reports Second Quarter 2019 Results
Second Quarter 2019 Highlights*
*This news release contains non-GAAP financial measures in addition to the financial measures in accordance with GAAP. Reconciliations of the GAAP to non-GAAP financial measures can be found in the footnotes to this release.
MILWAUKEE--(BUSINESS WIRE)--March 21, 2019--Actuant Corporation (NYSE: ATU) today announced results for its fiscal 2019 second quarter ended February 28, 2019.
“We continued to execute successfully against our strategic plan, as demonstrated by the strong 12% core growth in our IT&S segment despite weather related challenges in the quarter,” said Randy Baker, President and CEO. “The investments we have made in our commercial processes are yielding results, and we believe IT&S is well positioned for continued growth. Additionally, the restructuring actions we took in 2018, along with the decision to focus solely on standard product in our Heavy Lifting product offering, have provided improved profitability in the current fiscal year. EC&S had a solid quarter as well, driven by solid execution of their plan, core sales growth in the Americas and strong profit improvement.”
Mr. Baker continued, “As we plan for our future as a pure-play industrial tool company, we are focused on delivering world class operating margins aligned with our strategy. To further that objective, we are initiating a restructuring program centered on achieving savings both from the integration of the Enerpac and Hydratight businesses and in our corporate structure by better leveraging and consolidating certain global support functions, facilities and spend. We expect to achieve $12-$15 million of annual savings and anticipate completing these actions within 18-24 months. The one-time total cost of these actions is projected to be $15-$20 million. Additionally, during the quarter, we made significant progress toward optimizing our portfolio of businesses with the announcement of our intent to divest the EC&S segment and closing the sale of Precision-Hayes International and Cortland Fibron. We are confident that focusing on growing our high quality and high margin IT&S business and pursuing this sale is the best way to maximize value for Actuant’s shareholders while securing a positive future for EC&S and its talented employees around the world.”
Consolidated Results
(US$ in millions)
Three Months Ended Feb 28 | Six Months Ended Feb 28 | |||||||
2019 | 2018 | 2019 | 2018 | |||||
Sales | $271.9 | $275.2 | $564.4 | $564.1 | ||||
Operating Profit | $16.4 | $9.8 | $7.0 | $24.5 | ||||
Adjusted Op Profit | $23.3 | $17.1 | $50.8 | $38.4 | ||||
Adjusted Op Profit % | 8.6% | 6.2% | 9.0% | 6.8% | ||||
Earnings (Loss) per Share | $0.04 | $(0.30) | $(0.24) | $(0.22) | ||||
Adjusted Earnings per Share | $0.19 | $0.13 | $0.46 | $0.31 | ||||
Net Income (Loss) | $2.8 | $(18.2) | $(14.7) | $(13.0) | ||||
EBITDA | $23.1 | $19.5 | $21.8 | $44.0 | ||||
Adjusted EBITDA | $30.1 | $26.8 | $65.6 | $57.9 | ||||
EBITDA % | 8.5% | 7.1% | 3.9% | 7.8% | ||||
Adjusted EBITDA % | 11.1% | 9.7% | 11.6% | 10.3% |
Segment Results
Industrial Tools & Services Segment (IT&S)
(US$ in millions)
Three Months Ended Feb 28 | Six Months Ended Feb 28 | |||||||
2019 | 2018 | 2019 | 2018 | |||||
Sales | $149.5 | $137.0 | $298.2 | $279.0 | ||||
Operating Profit | $26.5 | $19.0 | $52.9 | $39.8 | ||||
Adjusted Op Profit (1) | $26.6 | $20.5 | $52.9 | $42.7 | ||||
Adjusted Op Profit % (1) | 17.8% | 15.0% | 17.8% | 15.3% |
(1) Excludes minimal restructuring charges in fiscal 2019 compared to $1.5 million in the second quarter of fiscal 2018 and $2.9 million in the six months ended February 28, 2018.
Engineered Components & Systems Segment (EC&S)
(US$ in millions)
Three Months Ended Feb 28 | Six Months Ended Feb 28 | |||||||
2019 | 2018 | 2019 | 2018 | |||||
Sales | $122.4 | $138.2 | $266.3 | $285.1 | ||||
Operating Profit (Loss) | $(1.4) | $(4.4) | $(29.7) | $(0.4) | ||||
Adjusted Op Profit (2) | $5.5 | $1.2 | $14.1 | $6.3 | ||||
Adjusted Op Profit % (2) | 4.5% | 0.9% | 5.3% | 2.2% |
(2) The second quarter of fiscal 2019 excludes $6.9 million of impairment and other divestiture charges. The second quarter of 2018 excludes $3.0 million of impairment and other divestiture charges, along with $2.6 million of restructuring charges. The six months ended February 28, 2019 excludes restructuring charges of $0.4 million and impairment and other divestiture charges of $43.3 million. The six months ended February 28, 2018 excludes restructuring charges of $3.7 million and $3.0 million of impairment and other divestiture charges.
Corporate Expenses and Income Taxes
Balance Sheet and Leverage
(US$ in millions)
Period Ending | ||||||
Feb 28, 2019 | Aug 31, 2018 | Feb 28, 2018 | ||||
Cash Balance | $170.4 | $250.5 | $153.6 | |||
Debt Balance | $485.6 | $532.7 | $547.3 | |||
Net Debt to Adjusted EBITDA | 2.1 | 1.9 | 3.0 |
Outlook
Mr. Baker concluded, "We are pleased with the strong results we achieved in the first half of fiscal 2019. Going forward, we expect that our ongoing actions to become a world class tool company along with cost reductions achieved through our restructuring program will enable us to drive growth and top-tier profitability. We are also continuing to invest strategically in new product development, commercial effectiveness and operational excellence to further drive value and profitability. We are confident that our strategies will unlock enhanced shareholder value.”
The Company reaffirms its outlook for fiscal year 2019 and provides the following outlook for third quarter 2019:
All guidance excludes restructuring, impairment and divestiture charges, one-time tax adjustments and the impact of potential future acquisitions, dispositions, share repurchases and tariffs.
Conference Call Information
An investor conference call is scheduled for 10am CT today, March 21, 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) | ||||||||||
February 28, | August 31, | |||||||||
2019 | 2018 | |||||||||
ASSETS | ||||||||||
Current assets | ||||||||||
Cash and cash equivalents | $ | 170,388 | $ | 250,490 | ||||||
Accounts receivable, net | 210,174 | 187,749 | ||||||||
Inventories, net | 161,646 | 156,356 | ||||||||
Assets held for sale | 56,113 | 23,573 | ||||||||
Other current assets | 54,863 | 42,732 | ||||||||
Total current assets | 653,184 | 660,900 | ||||||||
Property, plant and equipment, net | 83,132 | 90,220 | ||||||||
Goodwill | 480,208 | 512,412 | ||||||||
Other intangible assets, net | 150,035 | 181,037 | ||||||||
Other long-term assets | 36,498 | 36,769 | ||||||||
Total assets | $ | 1,403,057 | $ | 1,481,338 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
Current liabilities | ||||||||||
Trade accounts payable | $ | 122,486 | $ | 130,838 | ||||||
Accrued compensation and benefits | 37,402 | 54,508 | ||||||||
Current maturities of debt | 30,000 | 30,000 | ||||||||
Income taxes payable | 8,548 | 4,091 | ||||||||
Liabilities held for sale | 20,820 | 44,225 | ||||||||
Other current liabilities | 58,871 | 67,299 | ||||||||
Total current liabilities | 278,127 | 330,961 | ||||||||
Long-term debt, net | 455,573 | 502,695 | ||||||||
Deferred income taxes | 18,973 | 21,933 | ||||||||
Pension and postretirement benefit liabilities | 14,371 | 14,869 | ||||||||
Other long-term liabilities | 50,383 | 52,168 | ||||||||
Total liabilities | 817,427 | 922,626 | ||||||||
Shareholders' equity | ||||||||||
Capital stock | 16,364 | 16,285 | ||||||||
Additional paid-in capital | 174,418 | 167,448 | ||||||||
Treasury stock | (617,731 | ) | (617,731 | ) | ||||||
Retained earnings | 1,152,331 | 1,166,955 | ||||||||
Accumulated other comprehensive loss | (139,752 | ) | (174,245 | ) | ||||||
Stock held in trust | (2,989 | ) | (2,450 | ) | ||||||
Deferred compensation liability | 2,989 | 2,450 | ||||||||
Total shareholders' equity | 585,630 | 558,712 | ||||||||
Total liabilities and shareholders' equity | $ | 1,403,057 | $ | 1,481,338 |
Actuant Corporation | |||||||||||||||||
Condensed Consolidated Statements of Operations | |||||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
February 28, | February 28, | February 28, | February 28, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||
Net sales | $ | 271,907 | $ | 275,165 | $ | 564,438 | $ | 564,120 | |||||||||
Cost of products sold | 174,421 | 185,469 | 361,944 | 373,513 | |||||||||||||
Gross profit | 97,486 | 89,696 | 202,494 | 190,607 | |||||||||||||
Selling, administrative and engineering expenses | 70,745 | 68,287 | 143,936 | 142,765 | |||||||||||||
Amortization of intangible assets | 3,441 | 5,168 | 7,720 | 10,299 | |||||||||||||
Restructuring charges | 60 | 3,450 | 463 | 10,079 | |||||||||||||
Impairment & divestiture charges | 6,886 | 2,987 | 43,339 | 2,987 | |||||||||||||
Operating profit | 16,354 | 9,804 | 7,036 | 24,477 | |||||||||||||
Financing costs, net | 7,153 | 7,604 | 14,448 | 15,118 | |||||||||||||
Other expense, net | 656 | 582 | 1,568 | 911 | |||||||||||||
Income (loss) before income tax expense | 8,545 | 1,618 | (8,980 | ) | 8,448 | ||||||||||||
Income tax expense | 5,792 | 19,839 | 5,719 | 21,443 | |||||||||||||
Net earnings (loss) | $ | 2,753 | $ | (18,221 | ) | $ | (14,699 | ) | $ | (12,995 | ) | ||||||
Earnings (loss) per share | |||||||||||||||||
Basic | $ | 0.04 | $ | (0.30 | ) | $ | (0.24 | ) | $ | (0.22 | ) | ||||||
Diluted | 0.04 | (0.30 | ) | (0.24 | ) | (0.22 | ) | ||||||||||
Weighted average common shares outstanding | |||||||||||||||||
Basic | 61,243 | 60,318 | 61,137 | 60,095 | |||||||||||||
Diluted | 61,607 | 60,318 | 61,137 | 60,095 |
Actuant Corporation | ||||||||||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||||||||||
(In thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
February 28, | February 28, | February 28, | February 28, | |||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Operating Activities | ||||||||||||||||
Net earnings (loss) | $ | 2,753 | $ | (18,221 | ) | $ | (14,699 | ) | $ | (12,995 | ) | |||||
Adjustments to reconcile net earnings (loss) to net cash used in operating activities: | ||||||||||||||||
Impairment & divestiture charges, net of tax effect | 6,688 | 12,385 | 40,524 | 12,385 | ||||||||||||
Depreciation and amortization | 7,451 | 10,295 | 16,341 | 20,385 | ||||||||||||
Stock-based compensation expense | 3,568 | 2,872 | 7,162 | 8,292 | ||||||||||||
Benefit for deferred income taxes | (302 | ) | (6,817 | ) | (1,445 | ) | (7,124 | ) | ||||||||
Amortization of debt issuance costs | 301 | 413 | 602 | 826 | ||||||||||||
Other non-cash adjustments | (67 | ) | 87 | 63 | 200 | |||||||||||
Changes in components of working capital and other, excluding acquisitions and divestitures: | ||||||||||||||||
Accounts receivable | (18,760 | ) | (5,394 | ) | (36,436 | ) | (16,872 | ) | ||||||||
Inventories | (6,973 | ) | (6,805 | ) | (24,797 | ) | (18,433 | ) | ||||||||
Trade accounts payable | (3,861 | ) | (7,957 | ) | (2,810 | ) | (1,753 | ) | ||||||||
Prepaid expenses and other assets | (4,423 | ) | 2,875 | (9,421 | ) | (9,168 | ) | |||||||||
Income tax accounts | 467 | 19,219 | 1,531 | 17,505 | ||||||||||||
Accrued compensation and benefits | 104 | 2,629 | (16,440 | ) | (9,959 | ) | ||||||||||
Other accrued liabilities | (9,150 | ) | (7,229 | ) | (11,489 | ) | (5,395 | ) | ||||||||
Cash used in operating activities | (22,204 | ) | (1,648 | ) | (51,314 | ) | (22,106 | ) | ||||||||
Investing Activities | ||||||||||||||||
Capital expenditures | (8,001 | ) | (4,643 | ) | (15,667 | ) | (12,547 | ) | ||||||||
Proceeds from sale of property, plant and equipment | 41 | 81 | 52 | 113 | ||||||||||||
Rental asset buyout for Viking divestiture | - | - | - | (27,718 | ) | |||||||||||
Proceeds from sale of business, net of transaction costs | 36,159 | 8,780 | 36,159 | 8,780 | ||||||||||||
Cash paid for business acquisitions, net of cash acquired | - | (16,517 | ) | - | (16,517 | ) | ||||||||||
Cash provided by (used in) investing activities | 28,199 | (12,299 | ) | 20,544 | (47,889 | ) | ||||||||||
Financing Activities | ||||||||||||||||
Principal repayments on term loan | (40,000 | ) | (7,500 | ) | (47,500 | ) | (15,000 | ) | ||||||||
Stock option exercises & other |
479 | 8,074 | 1,031 | 10,305 | ||||||||||||
Taxes paid related to the net share settlement of equity awards | (1,288 | ) | (825 | ) | (1,489 | ) | (1,107 | ) | ||||||||
Cash dividend | - | - | (2,439 | ) | (2,390 | ) | ||||||||||
Cash used in financing activities | (40,809 | ) | (251 | ) | (50,397 | ) | (8,192 | ) | ||||||||
Effect of exchange rate changes on cash | 1,759 | 2,743 | 1,065 | 2,211 | ||||||||||||
Net decrease in cash and cash equivalents | (33,055 | ) | (11,455 | ) | (80,102 | ) | (75,976 | ) | ||||||||
Cash and cash equivalents - beginning of period | 203,443 | 165,050 | 250,490 | 229,571 | ||||||||||||
Cash and cash equivalents - end of period | $ | 170,388 | $ | 153,595 | $ | 170,388 | $ | 153,595 |
ACTUANT CORPORATION |
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SUPPLEMENTAL UNAUDITED DATA |
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(Dollars in thousands) |
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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 | $ | - | $ | - | $ | 298,176 | ||||||||||||||||||||||
ENGINEERED COMPONENTS & SYSTEMS SEGMENT | 146,964 | 138,179 | 158,361 | 148,022 | 591,526 | 143,876 | 122,386 | - | - | 266,262 | ||||||||||||||||||||||||||||||||
TOTAL | $ | 288,955 | $ | 275,165 | $ | 317,096 | $ | 301,395 | $ | 1,182,611 | $ | 292,531 | $ | 271,907 | $ | - | $ | - | $ | 564,438 | ||||||||||||||||||||||
% SALES GROWTH | ||||||||||||||||||||||||||||||||||||||||||
INDUSTRIAL TOOLS & SERVICES SEGMENT | 2 | % | 5 | % | 8 | % | 12 | % | 7 | % | 5 | % | 9 | % | - | - | 7 | % | ||||||||||||||||||||||||
ENGINEERED COMPONENTS & SYSTEMS SEGMENT | 16 | % | 7 | % | 7 | % | 6 | % | 9 | % | -2 | % | -11 | % | - | - | -7 | % | ||||||||||||||||||||||||
TOTAL | 9 | % | 6 | % | 7 | % | 9 | % | 8 | % | 1 | % | -1 | % | - | - | 0 | % | ||||||||||||||||||||||||
OPERATING PROFIT (LOSS) | ||||||||||||||||||||||||||||||||||||||||||
INDUSTRIAL TOOLS & SERVICES SEGMENT | $ | 22,218 | $ | 20,510 | $ | 32,206 | $ | 28,783 | $ | 103,718 | $ | 26,345 | $ | 26,596 | $ | - | $ | - | $ | 52,941 | ||||||||||||||||||||||
ENGINEERED COMPONENTS & SYSTEMS SEGMENT | 5,107 | 1,177 | 9,714 | 8,789 | 24,787 | 8,593 | 5,484 | - | - | 14,077 | ||||||||||||||||||||||||||||||||
CORPORATE / GENERAL | (6,023 | ) | (4,612 | ) | (8,042 | ) | (5,298 | ) | (23,976 | ) | (7,400 | ) | (8,780 | ) | - | - | (16,180 | ) | ||||||||||||||||||||||||
ADJUSTED OPERATING PROFIT | $ | 21,302 | $ | 17,075 | $ | 33,878 | $ | 32,274 | $ | 104,529 | $ | 27,538 | $ | 23,300 | $ | - | $ | - | $ | 50,838 | ||||||||||||||||||||||
IMPAIRMENT & DIVESTITURE CHARGES | - | (2,987 | ) | - | (70,071 | ) | (73,058 | ) | (36,453 | ) | (6,886 | ) | - | - | (43,339 | ) | ||||||||||||||||||||||||||
RESTRUCTURING CHARGES (1) | (6,629 | ) | (4,284 | ) | (1,186 | ) | (746 | ) | (12,845 | ) | (403 | ) | (60 | ) | - | - | (463 | ) | ||||||||||||||||||||||||
OPERATING PROFIT (LOSS) | $ | 14,673 | $ | 9,804 | $ | 32,692 | $ | (38,543 | ) | $ | 18,626 | $ | (9,318 | ) | $ | 16,354 | $ | - | $ | - | $ | 7,036 | ||||||||||||||||||||
ADJUSTED OPERATING PROFIT % | ||||||||||||||||||||||||||||||||||||||||||
INDUSTRIAL TOOLS & SERVICES SEGMENT | 15.6 | % | 15.0 | % | 20.3 | % | 18.8 | % | 17.5 | % | 17.7 | % | 17.8 | % | - | - | 17.8 | % | ||||||||||||||||||||||||
ENGINEERED COMPONENTS & SYSTEMS SEGMENT | 3.5 | % | 0.9 | % | 6.1 | % | 5.9 | % | 4.2 | % | 6.0 | % | 4.5 | % | - | - | 5.3 | % | ||||||||||||||||||||||||
ADJUSTED OPERATING PROFIT % | 7.4 | % | 6.2 | % | 10.7 | % | 10.7 | % | 8.8 | % | 9.4 | % | 8.6 | % | - | - | 9.0 | % | ||||||||||||||||||||||||
EBITDA | ||||||||||||||||||||||||||||||||||||||||||
INDUSTRIAL TOOLS & SERVICES SEGMENT | $ | 25,567 | $ | 24,594 | $ | 36,394 | $ | 32,763 | $ | 119,318 | $ | 30,038 | $ | 30,153 | $ | - | $ | - | $ | 60,191 | ||||||||||||||||||||||
ENGINEERED COMPONENTS & SYSTEMS SEGMENT | 11,004 | 7,267 | 15,093 | 15,114 | 48,478 | 12,841 | 8,486 | - | - | 21,327 | ||||||||||||||||||||||||||||||||
CORPORATE / GENERAL | (5,508 | ) | (5,073 | ) | (7,113 | ) | (4,672 | ) | (22,366 | ) | (7,362 | ) | (8,544 | ) | - | - | (15,907 | ) | ||||||||||||||||||||||||
ADJUSTED EBITDA | $ | 31,063 | $ | 26,788 | $ | 44,374 | $ | 43,205 | $ | 145,430 | $ | 35,517 | $ | 30,095 | $ | - | $ | - | $ | 65,611 | ||||||||||||||||||||||
IMPAIRMENT & DIVESTITURE CHARGES | - | (2,987 | ) | - | (70,071 | ) | (73,058 | ) | (36,453 | ) | (6,886 | ) | - | - | (43,339 | ) | ||||||||||||||||||||||||||
RESTRUCTURING CHARGES (1) | (6,629 | ) | (4,284 | ) | (1,186 | ) | (746 | ) | (12,845 | ) | (403 | ) | (60 | ) | - | - | (463 | ) | ||||||||||||||||||||||||
EBITDA | $ | 24,434 | $ | 19,517 | $ | 43,188 | $ | (27,612 | ) | $ | 59,527 | $ | (1,339 | ) | $ | 23,149 | $ | - | $ | - | $ | 21,809 | ||||||||||||||||||||
ADJUSTED EBITDA % | ||||||||||||||||||||||||||||||||||||||||||
INDUSTRIAL TOOLS & SERVICES SEGMENT | 18.0 | % | 18.0 | % | 22.9 | % | 21.4 | % | 20.2 | % | 20.2 | % | 20.2 | % | - | - | 20.2 | % | ||||||||||||||||||||||||
ENGINEERED COMPONENTS & SYSTEMS SEGMENT | 7.5 | % | 5.3 | % | 9.5 | % | 10.2 | % | 8.2 | % | 8.9 | % | 6.9 | % | - | - | 8.0 | % | ||||||||||||||||||||||||
ADJUSTED EBITDA % | 10.8 | % | 9.7 | % | 14.0 | % | 14.3 | % | 12.3 | % | 12.1 | % | 11.1 | % | - | - | 11.6 | % | ||||||||||||||||||||||||
Note: (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. |
ACTUANT CORPORATION |
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SUPPLEMENTAL UNAUDITED DATA |
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RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES | ||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except for per share amounts) |
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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 | $ | - | $ | - | $ | (14,699 | ) | |||||||||||||||||
IMPAIRMENT & DIVESTITURE CHARGES, NET OF TAX EFFECT | - | 12,385 | - | 62,949 | 75,334 | 33,836 | 6,688 | - | - | 40,524 | ||||||||||||||||||||||||||||||||
RESTRUCTURING CHARGES, NET OF TAX EFFECT (1) | 6,254 | 3,784 | (249 | ) | (337 | ) | 9,452 | 300 | (191 | ) | - | - | 109 | |||||||||||||||||||||||||||||
ACCELERATED DEBT ISSUANCES COSTS, NET OF TAX EFFECT | - | - | - | 601 | 601 | - | - | - | - | - | ||||||||||||||||||||||||||||||||
OTHER INCOME TAX (BENEFIT) EXPENSE | - | 9,705 | (4,891 | ) | (1,831 | ) | 2,983 | - | 2,258 | - | - | 2,258 | ||||||||||||||||||||||||||||||
ADJUSTED EARNINGS | $ | 11,480 | $ | 7,653 | $ | 23,872 | $ | 23,718 | $ | 66,722 | $ | 16,684 | $ | 11,508 | $ | - | $ | - | $ | 28,192 | ||||||||||||||||||||||
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 | $ | - | $ | - | $ | (0.24 | ) | |||||||||||||||||
IMPAIRMENT & DIVESTITURE CHARGES, NET OF TAX EFFECT | - | 0.21 | - | 1.03 | 1.24 | 0.55 | 0.11 | - | - | 0.66 | ||||||||||||||||||||||||||||||||
RESTRUCTURING CHARGES, NET OF TAX EFFECT (1) | 0.10 | 0.06 | - | (0.01 | ) | 0.15 | 0.01 | - | - | - | - | |||||||||||||||||||||||||||||||
ACCELERATED DEBT ISSUANCES COSTS, NET OF TAX EFFECT | - | - | - | 0.01 | 0.01 | - | - | - | - | - | ||||||||||||||||||||||||||||||||
OTHER INCOME TAX (BENEFIT) EXPENSE | - | 0.16 | (0.09 | ) | (0.02 | ) | 0.05 | - | 0.04 | - | - | 0.04 | ||||||||||||||||||||||||||||||
ADJUSTED DILUTED EARNINGS PER SHARE | $ | 0.19 | $ | 0.13 | $ | 0.39 | $ | 0.39 | $ | 1.09 | $ | 0.27 | $ | 0.19 | $ | - | $ | - | $ | 0.46 | ||||||||||||||||||||||
ADJUSTED EBITDA (3) | ||||||||||||||||||||||||||||||||||||||||||
NET EARNINGS (LOSS) (GAAP MEASURE) | $ | 5,226 | $ | (18,221 | ) | $ | 29,012 | $ | (37,664 | ) | $ | (21,648 | ) | $ | (17,452 | ) | $ | 2,753 | $ | - | $ | - | $ | (14,699 | ) | |||||||||||||||||
FINANCING COSTS, NET | 7,514 | 7,604 | 7,756 | 8,617 | 31,491 | 7,295 | 7,153 | - | - | 14,448 | ||||||||||||||||||||||||||||||||
INCOME TAX (BENEFIT) EXPENSE | 1,604 | 19,839 | (3,995 | ) | (8,472 | ) | 8,976 | (72 | ) | 5,792 | - | - | 5,719 | |||||||||||||||||||||||||||||
DEPRECIATION & AMORTIZATION | 10,090 | 10,295 | 10,415 | 9,907 | 40,708 | 8,890 | 7,451 | - | - | 16,341 | ||||||||||||||||||||||||||||||||
EBITDA | $ | 24,434 | $ | 19,517 | $ | 43,188 | $ | (27,612 | ) | $ | 59,527 | $ | (1,339 | ) | $ | 23,149 | $ | - | $ | - | $ | 21,809 | ||||||||||||||||||||
IMPAIRMENT & OTHER DIVESTITURE CHARGES | - | 2,987 | - | 70,071 | 73,058 | 36,453 | 6,886 | - | - | 43,339 | ||||||||||||||||||||||||||||||||
RESTRUCTURING CHARGES | 6,629 | 4,284 | 1,186 | 746 | 12,845 | 403 | 60 | - | - | 463 | ||||||||||||||||||||||||||||||||
ADJUSTED EBITDA | $ | 31,063 | $ | 26,788 | $ | 44,374 | $ | 43,205 | $ | 145,430 | $ | 35,517 | $ | 30,095 | $ | - | $ | - | $ | 65,611 | ||||||||||||||||||||||
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 Operations. 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) | |||||||||||||||||||
Q3 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 | $ | 0.40 | $ | 0.45 | $ | 1.09 | $ | 1.20 | |||||||||||
IMPAIRMENT & OTHER DIVESTITURE CHARGES, NET OF TAX EFFECT |
TBD | TBD | TBD | TBD | |||||||||||||||
RESTRUCTURING CHARGES, NET OF TAX EFFECT | TBD | TBD | TBD | TBD | |||||||||||||||
OTHER INCOME TAX (BENEFIT) EXPENSE | TBD | TBD | TBD | TBD | |||||||||||||||
ADJUSTED DILUTED EARNINGS PER SHARE GUIDANCE | $ | 0.40 | $ | 0.45 | $ | 1.09 | $ | 1.20 | |||||||||||
RECONCILIATION OF GAAP CASH FLOW FROM OPERATIONS TO FREE CASH FLOW | |||||||||||||||||||
CASH FLOW FROM OPERATIONS | $ | 105 | $ | 115 | |||||||||||||||
CAPITAL EXPENDITURES | (25 | ) | (30 | ) | |||||||||||||||
OTHER | - | - | |||||||||||||||||
FREE CASH FLOW GUIDANCE | $ | 80 | $ | 85 | |||||||||||||||
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. |
CONTACT:
Barb Bolens
VP Corporate Strategy & Investor Relations
262-293-1562