(Source: Business Wire)
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
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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 %
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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
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(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.
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