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Actuant Corporation (ATU) today announced results for its fourth
quarter and fiscal year ended August 31, 2012.
Highlights
--
Fourth quarter diluted earnings per share ("EPS") of $0.55, an
increase of 10% year-over-year. For the full year, EPS increased 24%
to $2.08 from $1.68 in the prior year (all periods represent results
from continuing operations, excluding special items - see attached
reconciliation of earnings.)
--
Core sales growth of 3% and 5% for the fourth quarter and full year,
respectively (total sales less the impact of acquisitions,
divestitures and foreign currency rate changes) with solid growth in
three of the four segments.
--
Year-over-year operating profit margin expansion (excluding the
previously announced impairment charge) of 20 basis points for the
fourth quarter and 110 basis points for the full year.
--
Cash flow from operations of $53 million for the fourth quarter and a
record $182 million for fiscal 2012.
--
Completed the acquisition of CrossControl in the fourth quarter,
improving the technology positioning of Maxima. Deployed a total of
$70 million on three tuck-in acquisitions during fiscal 2012.
--
Repurchased 2.7 million common shares in fiscal 2012 for $63 million
including 0.9 million shares for $24 million in the fourth quarter.
--
Updated full year fiscal 2013 guidance with revised sales and EPS
ranges of $1.68-1.72 billion and $2.20-2.30, respectively, excluding
the impact of future acquisitions and potential share repurchases.
Robert C. Arzbaecher, Chairman and CEO of Actuant commented, "We closed
out fiscal 2012 with fourth quarter results at the high end of our
expectations, excluding the impairment charge. As anticipated, core
sales growth moderated but was positive in the majority of the
portfolio. We successfully converted on this sales growth and achieved a
10% increase in EPS despite the toughest comparables of the year from a
foreign currency perspective. Our cash flow was outstanding and helped
drive free cash flow to net income conversion in excess of 100% for the
12th consecutive year."
Consolidated Results
Consolidated sales for the fourth quarter were $405 million compared to
$403 million in the comparable prior year quarter. Core sales increased
3% with acquisitions contributing 2%, offset by the negative 5% impact
of the weaker Euro. The fiscal 2012 fourth quarter net loss from
continuing operations was $16.5 million, or $0.23 per share compared to
net earnings and EPS from continuing operations of $37.3 million and
$0.50, respectively, in the comparable prior year quarter. The current
year quarter included the previously announced $62.5 million pre-tax
($0.77 per diluted share after tax) non-cash asset impairment charge
related to the Mastervolt business. Excluding this charge, fiscal 2012
fourth quarter EPS from continuing operations of $0.55 was 10% higher
than the $0.50 in the prior year quarter. (See attached reconciliation
of earnings.)
Sales for the year ended August 31, 2012 were $1.61 billion, 11% higher
than the $1.45 billion in the prior year. Excluding the 8% impact from
acquisitions and negative 2% impact of the weaker Euro, full year core
sales increased 5%. Earnings and EPS from continuing operations for the
year ended August 31, 2012 were $87.3 million and $1.17, respectively,
compared to $124.5 million and $1.68 in the prior year. Fiscal 2012
results include pre-tax debt refinancing costs of $16.8 million, or
$0.15 per diluted share after tax and a non-cash asset impairment charge
of $62.5 million pre-tax, or $0.76 per diluted share after tax.
Excluding these costs, fiscal 2012 EPS from continuing operations of
$2.08 was 24% higher than the $1.68 in the prior year. (See attached
reconciliation of earnings.)
Commenting on the full year results, Arzbaecher stated, "Fiscal 2012
results illustrate the benefit of Actuant’s diversity and growth
oriented business model. We delivered core sales growth for the year of
5% and deployed $70 million in tuck-in acquisitions with a focus on
higher growth markets. Adjusted operating profit improved 110 basis
points, despite incremental investment in our Growth + Innovation
("G+I") initiatives. We generated 24% EPS growth, excluding special
items, well above our initial 2012 guidance. This was accomplished
through a combination of improved sales and operating performance, a
stronger capital structure with lower interest expense and outstanding
shares, and the benefit of tuck-in acquisitions. This in turn drove
record free cash flow and reduced Actuant’s debt to EBITDA leverage to
the lowest level in our history. These record results are a testament to
the consistent execution of our proven business model and I want to
thank Actuant employees across the organization for their efforts in
achieving this strong performance."
Segment Results
------------------------------------------------------------------
Industrial Segment
(US $ in millions)
Three Months Ended August 31, Year Ended August 31,
------------------------------ ----------------------
2012 2011 2012 2011
--------- ------------------ ------- ------------
Sales $110.6 $108.9 $419.3 $393.0
Operating Profit $29.5 $28.6 $114.8 $98.4
Operating Profit % 26.6% 26.2% 27.4% 25.0%
Fourth quarter fiscal 2012 Industrial segment sales were $111 million,
2% higher than the prior year. Excluding the 5% negative impact of
foreign currency rate changes, core sales increased 7% over the prior
year. The improvement was driven by generally strong industrial tool
demand in North America. Continued execution on G+I initiatives and
vertical market strategies, along with solid Integrated Solutions
demand, also contributed to the growth. Year-over-year operating profit
margins in the fourth quarter improved 40 basis points due primarily to
the higher volumes, partially offset by incremental G+I investments and
unfavorable mix.
Energy Segment
(US $ in millions)
Three Months Ended August 31, Year Ended August 31,
------------------------------ ----------------------
2012 2011 2012 2011
--------- ------------------ ------- ------------
Sales $93.4 $82.7 $349.2 $293.1
Operating Profit $18.8 $17.2 $62.2 $49.3
Operating Profit % 20.2% 20.7% 17.8% 16.8%
Fiscal 2012 fourth quarter year-over-year Energy segment sales increased
13% to $93 million. Excluding the 4% impact from acquisitions and
negative 5% impact from foreign currency rate changes, core sales
increased 14% from the prior year’s robust levels. Maintenance spending
in oil & gas, power generation, refinery and petrochemical markets,
along with higher industry-wide capital expenditures on offshore energy
development, were the primary growth drivers. Quoting activity and
current oil prices continue to support strong demand across the Energy
segment’s served markets. Fourth quarter operating profit margin was the
highest of the year, but declined 50 basis points from the prior year
due to unfavorable mix and increased G+I spending.
Electrical Segment
(US $ in millions)
Three Months Ended August 31, Year Ended August 31,
------------------------------ ----------------------
2012 2011 2012 2011
--------- ------------------ ------- ------------
Sales $82.9 $80.1 $328.8 $286.0
Operating (Loss) Profit ($54.2) $6.5 ($34.6) $20.7
$8.3 $6.5 $27.9 $20.7
Adj. Operating Profit (1)
10.0% 8.1% 8.5% 7.2%
Adj. Operating Profit % (1)
(1) Excludes fourth quarter fiscal 2012 non-cash asset
impairment charge of $62.5 million.
Electrical segment fiscal 2012 fourth quarter sales were $83 million, 4%
higher than the comparable prior year quarter. Core sales increased 7%,
while the impact of the weaker Euro was a 3% headwind. The core sales
growth was broad based and reflected higher volumes in the solar,
industrial, retail and marine aftermarket channels. The marine OEM
market, most notably in Europe, was weaker than the prior year. Fourth
quarter adjusted operating profit margin increased 190 basis points from
the prior year due to the higher volumes and improved Mastervolt
profitability, which more than offset restructuring costs in the quarter.
Engineered Solutions Segment
(US $ in millions)
Three Months Ended August 31, Year Ended August 31,
------------------------------ ----------------------
2012 2011 2012 2011
--------- ------------------ ------- ------------
Sales $118.4 $131.7 $508.1 $473.2
Operating Profit $10.1 $16.4 $60.9 $63.6
Operating Profit % 8.5% 12.5% 12.0% 13.4%
Fourth quarter fiscal 2012 Engineered Solutions segment sales decreased
10% from the prior year to $118 million. Excluding the 5% impact from
acquisitions and negative 5% impact from foreign currency rate changes,
core sales declined 14%. Fourth quarter sales reflected lower OEM
production levels for heavy-duty trucks in China and Europe as well as a
significant decline in automotive sales. Demand in the global
agriculture and other off-highway equipment markets, as well as the
North American heavy-duty truck market, moderated from recent quarters.
Fourth quarter operating profit margin declined 400 basis points from
the prior year due to the lower volumes.
Corporate
Corporate expenses for the fourth quarter of fiscal 2012 were $8.7
million, $3.0 million below the comparable prior year period as lower
incentive compensation, idle facility and acquisition related costs was
partially offset by increased G+I spending at the corporate level.
Financial Position
Net debt at August 31, 2012 was $329 million (total debt of $397 million
less $68 million of cash), an increase of approximately $10 million
during the quarter. During the fourth quarter the Company deployed
approximately $40 million of cash for the CrossControl acquisition and
$24 million in stock repurchases (buy-back of approximately 0.9 million
shares of common stock) which more than offset the strong fourth quarter
operating cash flow. At August 31, 2012, the Company had a net debt to
EBITDA leverage ratio of 1.1 times, and its entire $600 million revolver
available.
Outlook
Arzbaecher continued, "Our outlook for fiscal 2013 assumes that the
global economy and worldwide industrial activity continue to reflect
uncertainty, with moderating growth in the US and weakness in Europe and
emerging markets. We anticipate fiscal 2013 core sales growth of 3-5%,
outpacing underlying GDP in the economies we serve due to our diverse
portfolio and company-specific growth initiatives. We expect total sales
of $1.68-1.72 billion, taking into account an average US dollar to Euro
exchange rate of 1.25 and carryover acquisition revenue of approximately
$50 million. On a year-over-year basis, the higher volumes coupled with
operational excellence initiatives, lower interest costs and completed
share repurchases should result in fiscal 2013 EPS of $2.20-2.30,
compared to our previous guidance of $2.15-2.30. We expect full year
free cash flow of approximately $200 million.
We expect first quarter fiscal 2013 sales in the $390-395 million range
and EPS of $0.48-0.52. Results in the first fiscal quarter reflect the
toughest comparables of the fiscal year for both foreign currency and
core growth, and include the impact of lower anticipated production
schedules at certain customers served by the Engineered Solutions
segment.
Our guidance excludes the impact of any future acquisitions and share
repurchases, as the timing and investment levels are unknown. However,
the acquisition pipeline is robust and, with our strong cash flow and
capital structure, we are well positioned financially to fund both
growth investments and opportunistic share buy-backs.
In summary, we are targeting record sales, earnings and cash flow in
fiscal 2013, reflecting the benefit of our diverse business portfolio,
demonstrated operational capabilities and a focus on our G+I
initiatives. We believe ongoing execution of our proven business model
will enable Actuant to continue to create shareholder value."
Conference Call Information
An investor conference call is scheduled for 10am CDT today, September
27, 2012. 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. 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.
About Actuant Corporation
Actuant Corporation is a diversified industrial company with operations
in more than 30 countries. The Actuant businesses are leaders in a broad
array of niche markets including branded hydraulic and electrical tools
and supplies; 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)
August 31, August 31,
2012 2011
-------------------- --------------------
ASSETS
Current assets
Cash and cash equivalents $ 68,184 $ 44,221
Accounts receivable, net 234,756 223,760
Inventories, net 211,690 223,235
Deferred income taxes 22,583 34,830
Other current assets 24,068 22,807
--------- ---------
Total current assets 561,281 548,853
Property, plant and equipment, net 115,884 128,649
Goodwill 866,412 888,466
Other intangible assets, net 445,884 479,406
Other long-term assets 17,658 17,843
--------- ---------
Total assets $ 2,007,119 $ 2,063,217
==== ========= ==== =========
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Trade accounts payable $ 174,746 $ 170,084
Accrued compensation and benefits 58,817 71,639
Short term borrowings and current maturities of debt 7,500 2,690
Income taxes payable 5,778 19,342
Other current liabilities 72,165 66,770
--------- ---------
Total current liabilities 319,006 330,525
Long-term debt 390,000 522,727
Deferred income taxes 132,653 172,259
Pension and postretirement benefit accruals 26,442 18,864
Other long-term liabilities 87,182 99,829
Shareholders’ equity
Capital stock 15,102 13,731
Additional paid-in capital 7,725 (154,231 )
Treasury stock (63,083 ) -
Retained earnings 1,161,564 1,077,192
Accumulated other comprehensive loss (69,472 ) (17,679 )
Stock held in trust (2,689 ) (2,137 )
Deferred compensation liability 2,689 2,137
--------- ---------
Total shareholders’ equity 1,051,836 919,013
--------- ---------
Total liabilities and shareholders’ equity $ 2,007,119 $ 2,063,217
==== ========= ==== =========
Actuant Corporation
Condensed Consolidated Statements of Operations
(Dollars in thousands except per share amounts)
(Unaudited)
Three Months Ended Twelve Months Ended
------------------------------- -----------------------------------
August 31, August 31, August 31, August 31,
2012 2011 2012 2011
---------------- -------------- ---------------- ------------------
Net sales $ 405,304 $ 403,436 $ 1,605,342 $ 1,445,323
Cost of products sold 247,953 248,455 987,971 889,424
------- ------- --------- ---------
Gross profit 157,351 154,981 617,371 555,899
Selling, administrative and engineering expenses 91,756 90,409 355,691 334,862
Impairment charge 62,464 - 62,464 -
Amortization of intangible assets 7,590 7,621 29,274 27,467
------- ------- --------- ---------
Operating profit (loss) (4,459 ) 56,951 169,942 193,570
Financing costs, net 6,281 8,479 29,560 32,119
Debt refinancing charges - - 16,830 -
Other expense, net 148 968 3,238 2,244
------- ------- --------- ---------
(10,888 ) 47,504 120,314 159,207
Earnings (loss) from continuing operations before income tax
expense
Income tax expense 5,572 10,171 33,024 34,711
------- ------- --------- ---------
Earnings (loss) from continuing operations (16,460 ) 37,333 87,290 124,496
Income (loss) from discontinued operations, net of income taxes - 4,049 - (12,937 )
------- ------- --------- --------- ---
Net earnings (loss) $ (16,460 ) $ 41,382 $ 87,290 $ 111,559
=== ======= === ===== ======= ===== ========= === ========= ===
Earnings (loss) from continuing operations per share
Basic $ (0.23 ) $ 0.55 $ 1.25 $ 1.82
Diluted (0.23 ) 0.50 1.17 1.68
Earnings (loss) per share
Basic $ (0.23 ) $ 0.61 $ 1.25 $ 1.63
Diluted (0.23 ) 0.55 1.17 1.50
Weighted average common shares outstanding
Basic 72,846 68,391 70,099 68,254
Diluted 72,846 75,279 74,940 75,305
Actuant Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
---------------------------------- -----------------------------------
August 31, August 31, August 31, August 31,
2012 2011 2012 2011
---------------- ----------------- ----------------- -----------------
Operating Activities
Net earnings (loss) $ (16,460 ) $ 41,382 $ 87,290 $ 111,559
Adjustments to reconcile net earnings (loss) to net cash provided by
operating activities:
Depreciation and amortization 14,071 14,853 54,263 52,996
Net loss on disposal of businesses - (4,049 ) - 11,695
Stock-based compensation expense 3,344 2,665 13,346 10,758
Provision (benefit) for deferred income taxes (8,387 ) 8,778 (10,524 ) 6,480
Impairment charge 62,464 - 62,464 -
Amortization of debt discount and debt issuance costs 498 495 1,990 2,904
Non-cash debt refinance charge - - 2,254 -
Other non-cash adjustments 139 (28 ) - (46 )
Changes in components of working capital and other:
Accounts receivable 9,382 24,731 (12,310 ) (2,564 )
Inventories 2,361 9,647 11,532 (29,909 )
Prepaid expenses and other assets (3,235 ) 344 (2,164 ) 5,876
Trade accounts payable 3,123 (11,242 ) 5,902 7,158
Income taxes payable (15,847 ) (2,749 ) (17,903 ) 4,155
Accrued compensation and benefits 2,474 11,532 (6,292 ) 12,178
Other accrued liabilities (912 ) (19,891 ) (7,519 ) (21,674 )
------- --- -------- --- -------- --- -------- ---
Net cash provided by operating activities 53,015 76,468 182,329 171,566
Investing Activities
Proceeds from sale of property, plant and equipment 15 1,420 8,501 1,779
Proceeds from sale of businesses, net of transaction costs - - - 3,463
Capital expenditures (5,249 ) (8,253 ) (22,740 ) (23,096 )
Business acquisitions, net of cash acquired (40,533 ) (153,409 ) (70,267 ) (313,456 )
------- --- -------- --- -------- --- -------- ---
Net cash used in investing activities (45,767 ) (160,242 ) (84,506 ) (331,310 )
Financing Activities
Net borrowings (repayments) on revolving credit facilities and other - 58,190 (58,167 ) 58,204
debt
Issuance of term loan - - - 100,000
Principal repayments on term loan (1,250 ) - (2,500 ) -
Repurchases of 2% Convertible Notes - - (102 ) (34 )
Proceeds on 5.625% Senior Note issuance - - 300,000 -
Redemption of 6.875% Senior Notes - - (250,000 ) -
Debt issuance costs (150 ) - (5,490 ) (5,197 )
Purchase of treasury shares (23,801 ) - (63,083 ) -
Stock option exercises and related tax benefits 4,521 950 10,913 8,235
Cash dividend - - (2,748 ) (2,716 )
------- -------- -------- --- -------- ---
Net cash provided by (used in) financing activities (20,680 ) 59,140 (71,177 ) 158,492
Effect of exchange rate changes on cash 1,467 556 (2,683 ) 5,251
------- -------- -------- --- --------
Net increase (decrease) in cash and cash equivalents (11,965 ) (24,078 ) 23,963 3,999
Cash and cash equivalents - beginning of period 80,149 68,299 44,221 40,222
------- -------- -------- --------
Cash and cash equivalents - end of period $ 68,184 $ 44,221 $ 68,184 $ 44,221
=== ======= === ======== === ======== === ========
ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA FROM CONTINUING OPERATIONS
(Dollars in thousands)
FISCAL 2011 FISCAL 2012
------------------------------------------------------------------ ------------------------------------------------------------------
Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL
------------ ------------ ------------ ------------ -------------- ------------ ------------ ------------ ------------ --------------
SALES
INDUSTRIAL SEGMENT $ 87,392 $ 88,935 $ 107,759 $ 108,927 $ 393,013 $ 100,253 $ 98,342 $ 110,102 $ 110,598 $ 419,295
ENERGY SEGMENT 70,743 61,587 78,002 82,728 293,060 80,421 78,937 96,399 93,406 349,163
ELECTRICAL SEGMENT 55,396 70,176 80,329 80,112 286,013 82,833 77,105 85,947 82,936 328,821
ENGINEERED SOLUTIONS SEGMENT 104,881 110,000 126,687 131,669 473,237 129,292 123,640 136,767 118,364 508,063
------- ------- ------- ------- --------- ------- ------- ------- ------- ---------
TOTAL $ 318,412 $ 330,698 $ 392,777 $ 403,436 $ 1,445,323 $ 392,799 $ 378,024 $ 429,215 $ 405,304 $ 1,605,342
= ======= = ======= = ======= = ======= = ========= = ======= = ======= = ======= = ======= = =========
% SALES GROWTH
INDUSTRIAL SEGMENT 34 % 28 % 35 % 27 % 31 % 15 % 11 % 2 % 2 % 7 %
ENERGY SEGMENT 10 % 14 % 38 % 35 % 24 % 14 % 28 % 24 % 13 % 19 %
ELECTRICAL SEGMENT 2 % 28 % 30 % 28 % 22 % 50 % 10 % 7 % 4 % 15 %
ENGINEERED SOLUTIONS SEGMENT 18 % 23 % 13 % 31 % 21 % 23 % 12 % 8 % -10 % 7 %
TOTAL 17 % 24 % 27 % 30 % 25 % 23 % 14 % 9 % 0 % 11 %
OPERATING PROFIT (LOSS)
INDUSTRIAL SEGMENT $ 20,187 $ 20,149 $ 29,517 $ 28,562 $ 98,415 $ 27,933 $ 26,690 $ 30,681 $ 29,473 $ 114,777
ENERGY SEGMENT 11,858 6,792 13,545 17,150 49,345 13,217 11,632 18,515 18,841 62,205
ELECTRICAL SEGMENT 3,760 4,945 5,462 6,516 20,683 4,977 5,801 8,814 8,300 27,892
ENGINEERED SOLUTIONS SEGMENT 13,802 13,425 19,977 16,408 63,612 18,999 13,281 18,467 10,104 60,851
CORPORATE / GENERAL (8,035 ) (8,265 ) (10,500 ) (11,685 ) (38,485 ) (7,845 ) (7,948 ) (8,813 ) (8,713 ) (33,319 )
------- - ------- - ------- - ------- - --------- - ------- - ------- - ------- - ------- - --------- -
TOTAL - EXCLUDING IMPAIRMENT CHARGE $ 41,572 $ 37,046 $ 58,001 $ 56,951 $ 193,570 $ 57,281 $ 49,456 $ 67,664 $ 58,005 $ 232,406
IMPAIRMENT CHARGE - - - - - - - - (62,464 ) (62,464 )
------- ------- ------- ------- --------- ------- ------- ------- ------- - --------- -
TOTAL $ 41,572 $ 37,046 $ 58,001 $ 56,951 $ 193,570 $ 57,281 $ 49,456 $ 67,664 $ (4,459 ) $ 169,942
= ======= = = ======= = = ======= = = ======= = = ========= = = ======= = = ======= = = ======= = = ======= = = ========= =
OPERATING PROFIT %
INDUSTRIAL SEGMENT 23.1 % 22.7 % 27.4 % 26.2 % 25.0 % 27.9 % 27.1 % 27.9 % 26.6 % 27.4 %
ENERGY SEGMENT 16.8 % 11.0 % 17.4 % 20.7 % 16.8 % 16.4 % 14.7 % 19.2 % 20.2 % 17.8 %
ELECTRICAL SEGMENT 6.8 % 7.0 % 6.8 % 8.1 % 7.2 % 6.0 % 7.5 % 10.3 % 10.0 % 8.5 %
ENGINEERED SOLUTIONS SEGMENT 13.2 % 12.2 % 15.8 % 12.5 % 13.4 % 14.7 % 10.7 % 13.5 % 8.5 % 12.0 %
TOTAL (INCLUDING CORPORATE) - EXCLUDING IMPAIRMENT CHARGE 13.1 % 11.2 % 14.8 % 14.1 % 13.4 % 14.6 % 13.1 % 15.8 % 14.3 % 14.5 %
EBITDA
INDUSTRIAL SEGMENT $ 22,449 $ 22,245 $ 31,227 $ 30,680 $ 106,601 $ 29,220 $ 29,116 $ 32,070 $ 31,774 $ 122,180
ENERGY SEGMENT 15,745 10,475 16,778 21,488 64,486 18,243 15,601 22,216 23,166 79,226
ELECTRICAL SEGMENT 5,067 8,075 8,208 9,390 30,740 7,705 8,697 11,444 10,969 38,815
ENGINEERED SOLUTIONS SEGMENT 17,184 16,346 23,878 20,046 77,454 22,213 16,762 21,418 13,991 74,384
CORPORATE / GENERAL (7,161 ) (7,709 ) (9,462 ) (10,769 ) (35,101 ) (7,217 ) (7,479 ) (8,506 ) (7,972 ) (31,174 )
------- - ------- - ------- - ------- - --------- - ------- - ------- - ------- - ------- - --------- -
TOTAL - EXCLUDING IMPAIRMENT CHARGE $ 53,284 $ 49,432 $ 70,629 $ 70,835 $ 244,180 $ 70,164 $ 62,697 $ 78,642 $ 71,928 $ 283,431
IMPAIRMENT CHARGE - - - - - - - - (62,464 ) (62,464 )
------- ------- ------- ------- --------- ------- ------- ------- ------- - --------- -
TOTAL $ 53,284 $ 49,432 $ 70,629 $ 70,835 $ 244,180 $ 70,164 $ 62,697 $ 78,642 $ 9,464 $ 220,967
= ======= = ======= = ======= = ======= = ========= = ======= = ======= = ======= = ======= = =========
EBITDA %
INDUSTRIAL SEGMENT 25.7 % 25.0 % 29.0 % 28.2 % 27.1 % 29.1 % 29.6 % 29.1 % 28.7 % 29.1 %
ENERGY SEGMENT 22.3 % 17.0 % 21.5 % 26.0 % 22.0 % 22.7 % 19.8 % 23.0 % 24.8 % 22.7 %
ELECTRICAL SEGMENT 9.1 % 11.5 % 10.2 % 11.7 % 10.7 % 9.3 % 11.3 % 13.3 % 13.2 % 11.8 %
ENGINEERED SOLUTIONS SEGMENT 16.4 % 14.9 % 18.8 % 15.2 % 16.4 % 17.2 % 13.6 % 15.7 % 11.8 % 14.6 %
TOTAL (INCLUDING CORPORATE) - EXCLUDING IMPAIRMENT CHARGE 16.7 % 14.9 % 18.0 % 17.6 % 16.9 % 17.9 % 16.6 % 18.3 % 17.7 % 17.7 %
ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA FROM CONTINUING OPERATIONS
RECONCILIATION OF GAAP MEASURE TO NON-GAAP MEASURES
(Dollars in thousands, except for per share amounts)
FISCAL 2011 FISCAL 2012
----------------------------------------------------- ------------------------------------------------------
Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL
--------- --------- --------- ----------- ----------- --------- --------- --------- ------------ -----------
EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE SPECIAL ITEMS
(1)
NET EARNINGS (LOSS) $ 25,890 $ 7,929 $ 36,358 $ 41,382 $ 111,559 $ 37,174 $ 32,175 $ 34,401 $ (16,460 ) $ 87,290
DISCONTINUED OPERATIONS, NET OF INCOME TAX 771 14,213 2,002 (4,049 ) 12,937 - - - - -
DEBT REFINANCING CHARGES, NET OF INCOME TAX - - - - - - - 10,482 - 10,482
IMPAIRMENT CHARGE, NET OF INCOME TAX - - - - - - - - 57,088 57,088
------ ------ ------ ------ ------- ------ ------ ------ ------- -------
TOTAL $ 26,661 $ 22,142 $ 38,360 $ 37,333 $ 124,496 $ 37,174 $ 32,175 $ 44,883 $ 40,628 $ 154,860
= ====== = ====== = ====== = ====== = == ======= = ====== = ====== = ====== = ======= = == =======
DILUTED EARNINGS (LOSS) PER SHARE, FROM
CONTINUING OPERATIONS BEFORE SPECIAL ITEMS (1)(3)
NET EARNINGS (LOSS) $ 0.35 $ 0.11 $ 0.49 $ 0.55 $ 1.50 $ 0.50 $ 0.43 $ 0.45 $ (0.23 ) $ 1.17
DISCONTINUED OPERATIONS, NET OF INCOME TAX 0.01 0.19 0.02 (0.05 ) 0.18 - - - - -
DEBT REFINANCING CHARGES, NET OF INCOME TAX - - - - - - - 0.15 - 0.15
IMPAIRMENT CHARGE, NET OF INCOME TAX - - - - - - - - 0.77 0.76
------ ------ ------ ------ ------- ------ ------ ------ ------- -------
TOTAL $ 0.36 $ 0.30 $ 0.51 $ 0.50 $ 1.68 $ 0.50 $ 0.43 $ 0.60 $ 0.55 $ 2.08
= ====== = ====== = ====== = ====== == ======= = ====== = ====== = ====== = ======= == =======
EBITDA (2)
NET EARNINGS (LOSS) (GAAP MEASURE) $ 25,890 $ 7,929 $ 36,358 $ 41,382 $ 111,559 $ 37,174 $ 32,175 $ 34,401 $ (16,460 ) $ 87,290
FINANCING COSTS, NET 7,552 8,238 7,850 8,479 32,119 8,222 7,821 24,066 6,281 46,390
INCOME TAX EXPENSE 6,911 6,169 11,460 10,171 34,711 11,228 9,631 6,593 5,572 33,024
DEPRECIATION & AMORTIZATION 12,160 12,883 12,959 14,852 52,854 13,540 13,070 13,582 14,071 54,263
DISCONTINUED OPERATIONS, NET OF INCOME TAX 771 14,213 2,002 (4,049 ) 12,937 - - - - -
------ ------ ------ ------ - ------- ------ ------ ------ ------- -------
EBITDA (NON-GAAP MEASURE) $ 53,284 $ 49,432 $ 70,629 $ 70,835 $ 244,180 $ 70,164 $ 62,697 $ 78,642 $ 9,464 $ 220,967
IMPAIRMENT CHARGE - - - - - - - - 62,464 62,464
------ ------ ------ ------ ------- ------ ------ ------ ------- -------
EBITDA (NON-GAAP MEASURE) - EXCLUDING IMPAIRMENT CHARGE $ 53,284 $ 49,432 $ 70,629 $ 70,835 $ 244,180 $ 70,164 $ 62,697 $ 78,642 $ 71,928 $ 283,431
= ====== = ====== = ====== = ====== == ======= = ====== = ====== = ====== = ======= == =======
FOOTNOTES
NOTE: The total of the individual quarters may not equal the annual total
due to rounding.
(1) Earnings (loss) from continuing operations and diluted earnings
(loss) per share, excluding special items (discontinued operations,
debt refinancing charges, and impairment charge), 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 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 (loss) before financing costs, net,
income tax expense, depreciation & amortization 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.
(3) Due to the net loss for the fourth quarter of fiscal 2012 the basic
weighted average common shares are used to calculate both basic and
diluted loss per share for the fourth quarter of fiscal 2012 to
avoid anti-dilution. Per share results for net earnings (loss) (GAAP
measure) was calculated using 72,846 shares outstanding. When
excluding the impairment charge from net earnings (loss), the result
is net earnings (not a net loss) which requires a diluted basis for
calculated EPS. For this reason, the per share results for the
impairment charge and total diluted earnings (non-GAAP measure) were
calculated using 74,158 shares outstanding for the fourth quarter of
fiscal 2012. Due to the difference in shares outstanding being used,
the per share results do not add for the fourth quarter of fiscal
2012.
SOURCE: Actuant Corporation
Actuant Corporation
Karen Bauer, 262-293-1562
Communications & Investor Relations Leader
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