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Actuant Reports Fourth Quarter and Full Year Fiscal 2015 Results; Provides 2016 Guidance

MILWAUKEE--(BUSINESS WIRE)--Sep. 30, 2015-- Actuant Corporation (NYSE: ATU) today announced results for its fourth quarter and fiscal year ended August 31, 2015.

Fourth Quarter Highlights

  • Fourth quarter total sales declined 15% year-over-year with 8% attributable to the strengthening of the US dollar. Core sales were down 7% (total sales excluding the impact of acquisitions, divestitures and foreign currency rate changes).
  • Diluted earnings per share (“EPS”) were $0.37 in the fourth quarter of fiscal 2015 versus $0.47 in the prior year, which excluded a $0.04 divestiture gain (see “Consolidated Results” below and attached reconciliation of earnings).
  • Continued tight cost control with the year-over-year percentage reduction in selling, administrative and engineering (SA&E) expense exceeding that of the sales decline for the second consecutive quarter.
  • Strong fourth quarter free cash flow resulting in full year free cash flow conversion of over 100% of net earnings for the 15th consecutive year.
  • Introduced fiscal 2016 full year sales and EPS guidance of $1.16-1.20 billion and $1.20-1.40, respectively, excluding restructuring charges associated with incremental cost reduction actions.

Robert C. Arzbaecher, Chairman, President and CEO of Actuant commented, “Fourth quarter sales and operating earnings were in line with our expectations and reflect the continuing impact of the downturn across key end markets including energy, agriculture and general industrial. Our focus remains on tightly managing costs while continuing to fund our best growth initiatives across the businesses. On the cost front, we again achieved a year-over-year percentage reduction in SA&E expense greater than the decline in revenues. However, gross profit and operating margins in the fourth quarter were down due to the adverse impact of lower production and absorption levels associated with inventory destocking, approximately $3 million of downsizing costs, unfavorable sales mix, and negative purchase price variances driven by the stronger US dollar. We were especially pleased with the strong fourth quarter cash flow which drove our 15th consecutive year of free cash flow conversion of net earnings in excess of 100%, which provides the fuel for future business growth.

Given our expectations of continued sluggish demand in fiscal 2016, we are undertaking actions to further simplify our business and rationalize the cost structure. This will position Actuant for stronger profitable growth as end market demand improves. We expect fiscal 2016 to be a transformative year for Actuant and I am excited to be able to launch these important actions to help achieve our vision.”

Consolidated Results

Consolidated sales for the fourth quarter were $300 million, 15% below the $354 million in the comparable prior year quarter. Core sales declined 7%, unfavorable foreign currency exchange rate changes negatively impacted sales by 8% and the net impact of acquisitions and divestitures was neutral. Fiscal 2015 fourth quarter earnings and EPS were $22.1 million, or $0.37 per share, compared to $35.6 million and $0.51 per share, respectively, in the comparable prior year quarter. The prior year included $2.8 million, or $0.04 per share gain on the sale of the RV business. Excluding this item, EPS declined 21% to $0.37 from $0.47 in the comparable prior year quarter (see attached reconciliation of earnings).

Sales for the fiscal year ended August 31, 2015 were $1,249 million, 11% lower than the $1,400 million in the prior year. Excluding the 6% decline from the stronger US dollar and neutral impact of acquisitions and divestitures, full year core sales declined 5%. Fiscal 2015 earnings from continuing operations were $19.9 million or $0.32 per diluted share. Excluding the $84 million ($1.33 per share) second quarter non-cash impairment charge, earnings and EPS from continuing operations in fiscal 2015 were $102.5 million, or $1.65 per diluted share, compared to $138.6 million, or $1.91 per diluted share for the prior year, excluding the aforementioned RV gain (see attached reconciliation of earnings).

   

Segment Results

 
Industrial Segment

(US $ in millions)

 

 
Three Months Ended Year Ended
August 31, August 31,
2015   2014 2015   2014
Sales $100.0 $111.9 $402.5 $413.9
Operating Profit $26.3 $32.8 $105.7 $120.2
Operating Profit % 26.3% 29.3% 26.3% 29.1%
 

Fourth quarter fiscal 2015 Industrial segment sales were $100 million, 11% lower than the comparable prior year period. Unfavorable currency translation was a 6% headwind, and core sales declined 5%. Integrated Solutions sales declined on a year-over-year basis with the wind-down of certain large project related activity. Industrial Tool demand increased modestly in Europe but declined overall due to sluggish activity levels across industrial markets in China and North America, including the impact of distributor destocking. Sequentially, the North American sales rate of change improved modestly while China weakened further. Fourth quarter margins declined year-over-year due to the lower sales, reduced overhead absorption associated with inventory reduction actions, and unfavorable purchase price variances resulting from the stronger US dollar.

   
Energy Segment

(US $ in millions)

 
Three Months Ended Year Ended
August 31, August 31,
2015   2014 2015   2014
Sales $100.8 $123.2 $411.9 $462.4
Operating (Loss) Profit $9.1 $18.0 $(41.4) $56.4
Adjusted Operating Profit (1) $9.1 $18.0 $43.0 $56.4
Adjusted Operating Profit % (1) 9.0% 14.7% 10.4% 12.2%
 

(1) Excludes second quarter fiscal 2015 pre-tax impairment charge of $84.4 million.

 

Fiscal 2015 fourth quarter Energy segment sales declined 18% year-over-year to $101 million. Excluding the unfavorable 10% foreign currency headwind, the 8% core sales decline was in line with expectations. Cortland continued to experience the impact of lower customer upstream capital spending, and posted a core sales reduction in line with its year-to-date pace. Hydratight’s core sales grew modestly in the quarter reflecting the commencement of service work on previously deferred maintenance projects, as well as solid activity levels in the Middle East. Viking core sales declined as expected, resulting from lower Asia Pacific activity as certain large mooring projects were completed. Fourth quarter operating profit margin declined due primarily to the high decremental margins at Viking, unfavorable mix at Hydratight (more service, less product and rental), restructuring costs, and lower production absorption, all of which were partially offset by cost reduction actions throughout the segment.

 
Engineered Solutions Segment

(US $ in millions)

   
Three Months Ended Year Ended
August 31, August 31,
2015   2014 2015   2014
Sales $99.5 $119.3 $434.9 $523.6
Operating Profit $3.2 $5.6 $19.8 $41.9
Operating Profit % 3.2% 4.7% 4.6% 8.0%
 

Fourth quarter fiscal 2015 Engineered Solutions segment sales were $100 million, 17% below the prior year. Excluding the 1% decline from the June 2014 RV product line divestiture and the 8% decrease from the stronger US dollar, core sales were 8% lower year-over-year. Stronger year-over-year European OEM heavy-duty truck production benefited core sales growth, however essentially all other segment end markets experienced weak fourth quarter demand, partially the result of customer inventory destocking. Fourth quarter operating profit margin declined year-over-year on lower volumes and manufacturing absorption, unfavorable purchase price variance associated with the stronger US dollar, and restructuring costs.

Corporate and Income Taxes

Corporate expenses of $9.8 million in the fourth quarter of fiscal 2015 were $1.5 million above the prior year due to an adverse legal matter and former CEO separation costs. Fourth quarter income taxes included the benefit of tax planning projects, favorable provision to return adjustments and other favorable income tax adjustments.

Financial Position

Net debt at August 31, 2015 was $419 million (total debt of $588 million less $169 million of cash), which was $73 million lower than the prior quarter end due to strong fourth quarter cash flow. Partially offsetting this was $7 million of cash used to repurchase approximately 0.3 million shares of common stock, as well as the impact of unfavorable foreign currency movements on net debt. At August 31, 2015, the Company had a net debt to EBITDA leverage ratio of 2.2 and nearly $600 million in revolver availability under the newly amended and extended credit agreement.

Outlook

Arzbaecher continued, “Actuant’s fiscal 2016 outlook reflects the existing weakness in our end markets. The first half in particular is expected to continue recent core sales trends, but should give way to sequential improvement in the back half of the year as well as easier comparisons. In particular, Energy experienced growth in the first half of fiscal 2015 and is only now seeing the full brunt of reduced oil & gas prices. We expect customers in our other segments to exhibit weak first half order patterns as part of inventory reduction efforts. Finally, foreign currency headwinds associated with the stronger US dollar will also be most acute in the early part of the fiscal year due to prior year comparisons.

We intend to further simplify our business and reduce our cost structure during the year. We are in the process of taking several incremental restructuring actions, and the related $25 million of pre-tax costs will be recognized over the next eighteen months as we exit certain facilities and reduce organizational complexity. Given the inherent difficulty in estimating the quarterly timing of the charges from such actions, we have excluded these charges from fiscal 2016 earnings guidance, but expect an approximate two year payback. Our guidance also excludes the impact of potential acquisitions and stock buybacks, which will be incorporated into future quarterly guidance updates as they occur.

We currently project full year fiscal 2016 sales in the range of $1.16 - 1.20 billion, reflecting a core sales decline of 1-4%, and $40 million of headwind from the stronger US dollar. EPS (excluding restructuring charges, future stock buybacks and acquisitions) is expected to be in the range of $1.20-1.40, reflecting the lower projected sales volume, unfavorable sales mix within the Energy segment and across our three segments, and a higher effective tax rate (estimated at 17-19%). Full year free cash flow is expected to be in the range of $110-120 million. First quarter guidance includes sales in the $275-285 million range on a 7-9% core sales decline, and EPS of $0.20-0.25 (excluding restructuring charges, future stock buybacks and acquisitions).

We are taking specific actions that we expect will help deliver 18% EBITDA margins in fiscal 2018, up from approximately 15% today. The majority of this improvement will be driven by internal initiatives such as simplification of organization structures and the next phase of facility consolidations. In addition, we expect to benefit from meaningful improvement in end market demand supplemented by disciplined capital deployment on tuck-in acquisitions. By focusing on a few critical initiatives, Actuant should be positioned to achieve double-digit EBITDA CAGR over the next three years reaching an approximate $300 million run rate by fiscal 2018.”

In closing, Arzbaecher stated, “Actuant is well-positioned to provide customers with advanced products and services, while funding both its internal simplification efforts and growth plans. The benefit of these actions will become increasingly clear as our end markets recover. These foundational improvements in our cost structure, combined with disciplined capital allocation, should drive increased shareholder value over the long-term.”

Conference Call Information

An investor conference call is scheduled for 10am CT today, September 30, 2015. 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

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 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)
             
August 31, August 31,
2015 2014
 
ASSETS
Current assets
Cash and cash equivalents $ 168,846 $ 109,012
Accounts receivable, net 193,081 227,008
Inventories, net 142,752 162,620
Deferred income taxes 12,922 11,050
Other current assets   42,788     33,300  
Total current assets 560,389 542,990
 
Property, plant and equipment, net 142,458 169,101
Goodwill 608,256 742,770
Other intangible assets, net 308,762 365,177
Other long-term assets   17,052     36,841  
 
Total assets $ 1,636,917   $ 1,856,879  
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Trade accounts payable $ 118,115 $ 145,798
Accrued compensation and benefits 43,707 52,964
Current maturities of debt and short-term borrowings 3,969 4,500
Income taxes payable 14,805 38,347
Other current liabilities   54,460     57,512  
Total current liabilities 235,056 299,121
 
Long-term debt 584,309 385,500
Deferred income taxes 72,941 96,970
Pension and postretirement benefit accruals 17,828 15,699
Other long-term liabilities   53,782     57,878  
Total liabilities 963,916 855,168
 
Shareholders' equity
Capital stock 15,787 15,695
Additional paid-in capital 104,308 93,449
Treasury stock (600,630 ) (388,627 )
Retained earnings 1,367,176 1,349,602
Accumulated other comprehensive loss (213,640 ) (68,408 )
Stock held in trust (4,292 ) (4,083 )
Deferred compensation liability   4,292     4,083  
Total shareholders' equity   673,001     1,001,711  
 
Total liabilities and shareholders' equity $ 1,636,917   $ 1,856,879  

 
Actuant Corporation
Condensed Consolidated Statements of Earnings
(Dollars in thousands except per share amounts)
(Unaudited)
           
 
Three Months Ended Twelve Months Ended
August 31, August 31, August 31, August 31,
2015   2014 2015   2014
 
Net sales $ 300,384 $ 354,349 $ 1,249,254 $ 1,399,862
Cost of products sold   193,841       212,253     787,414     852,990  
Gross profit 106,543 142,096 461,840 546,872
 
Selling, administrative and engineering expenses 71,792 87,438 299,601 332,093
Gain on product line divestiture - (13,495 ) - (13,495 )
Amortization of intangible assets 5,970 6,453 24,332 25,166
Impairment charge   -       -     84,353     -  
Operating profit 28,781 61,700 53,554 203,108
 
Financing costs, net 7,374 6,101 28,057 25,045
Other expense, net   595       950     106     4,037  
Earnings from continuing operations before income tax expense 20,812 54,649 25,391 174,026
 
Income tax expense (benefit)   (1,266 )     19,062     5,519     32,573  
Earnings from continuing operations 22,078 35,587 19,872 141,453
Earnings from discontinued operations, net of income taxes   -       -     -     22,120  
Net earnings $ 22,078     $ 35,587   $ 19,872   $ 163,573  
 
Earnings from continuing operations per share
Basic $ 0.37 $ 0.52 $ 0.32 $ 1.99
Diluted 0.37 0.51 0.32 1.95
 
Earnings per share
Basic $ 0.37 $ 0.52 $ 0.32 $ 2.31
Diluted 0.37 0.51 0.32 2.26
 
Weighted average common shares outstanding
Basic 59,314 68,025 61,262 70,942
Diluted 59,897 69,391 62,055 72,486

         
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,
2015 2014 2015 2014
 
Operating Activities
Net earnings $ 22,078 $ 35,587 $ 19,872 $ 163,573

Adjustments to reconcile net earnings to net cash provided by operating activities:

Depreciation and amortization 13,004 13,701 53,239 60,635
Net gain on disposal of businesses - (2,813 ) - (29,152 )
Stock-based compensation expense 2,809 3,109 12,046 17,115
Provision (benefit) for deferred income taxes (15,887 ) 4,272 (13,939 ) (7,273 )
Impairment charge - - 84,353 -
Amortization of debt discount and debt issuance costs 568 423 1,897 1,829
Other non-cash adjustments 392 178 805 (168 )
Changes in components of working capital and other:
Accounts receivable 24,142 27,607 12,827 1,336
Inventories 11,684 3,761 6,608 (21,915 )
Prepaid expenses and other assets 6,832 5,618 (8,761 ) 4,276
Trade accounts payable (11,523 ) (21,296 ) (19,801 ) (19,832 )
Income taxes payable/refundable 36,354 (12,881 ) (11,629 ) (38,820 )
Accrued compensation and benefits 2,620 3,226 (8,944 ) 11,779
Other accrued liabilities   (5,385 )   (8,444 )   395     (18,149 )
Cash provided by operating activities 87,688 52,048 128,968 125,234
 
Investing Activities
Proceeds from sale of property, plant and equipment 358 238 1,244 44,274
Proceeds from sale of businesses, net of transaction costs - 36,817 - 289,590
Capital expenditures (5,282 ) (8,018 ) (22,516 ) (41,857 )
Business acquisitions, net of cash acquired   -     -     -     (30,500 )
Cash (used in) provided by investing activities (4,924 ) 29,037 (21,272 ) 261,507
 
Financing Activities
Net borrowings (repayments) on revolving credit facility 220 - 220 (125,000 )
Principal repayments on term loan - - (3,375 ) -
Proceeds from term loan - - 213,375 -
Redemption of 5.625% Senior Notes (11,941 ) - (11,941 ) -
Purchase of treasury shares (7,376 ) (100,560 ) (212,003 ) (283,712 )
Payment of contingent acquisition consideration - - - (1,585 )
Debt issuance costs (150 ) - (2,025 ) -
Stock option exercises, related tax benefits and other 350 2,375 5,396 32,224
Cash dividend   -     -     (2,598 )   (2,919 )
Cash used in financing activities (18,897 ) (98,185 ) (12,951 ) (380,992 )
 
Effect of exchange rate changes on cash   (3,146 )   (3,513 )   (34,911 )   (723 )
Net increase (decrease) in cash and cash equivalents 60,721 (20,613 ) 59,834 5,026
Cash and cash equivalents - beginning of period   108,125     129,625     109,012     103,986  
Cash and cash equivalents - end of period $ 168,846   $ 109,012   $ 168,846   $ 109,012  

                   
ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA FROM CONTINUING OPERATIONS
  (Dollars in thousands)
 
FISCAL 2014 FISCAL 2015
Q1   Q2   Q3   Q4   TOTAL Q1   Q2   Q3   Q4   TOTAL
SALES
INDUSTRIAL SEGMENT $ 98,641 $ 93,571 $ 109,809 $ 111,880 $ 413,901 $ 102,413 $ 96,488 $ 103,546 $ 100,016 $ 402,463
ENERGY SEGMENT 107,925 106,031 125,231 123,181 462,368 111,522 100,211 99,296 100,846 411,875
ENGINEERED SOLUTIONS SEGMENT   132,990       128,168       143,147       119,288       523,593     113,830       104,306       117,258       99,522       434,916  
TOTAL $ 339,556     $ 327,770     $ 378,187     $ 354,349     $ 1,399,862   $ 327,765     $ 301,005     $ 320,100     $ 300,384     $ 1,249,254  
 
% SALES GROWTH
INDUSTRIAL SEGMENT -2 % -5 % -1 % 1 % -2 % 4 % 3 % -6 % -11 % -3 %
ENERGY SEGMENT 19 % 31 % 26 % 33 % 27 % 3 % -5 % -21 % -18 % -11 %
ENGINEERED SOLUTIONS SEGMENT 15 % 6 % 7 % -3 % 6 % -14 % -19 % -18 % -17 % -17 %
TOTAL 10 % 9 % 10 % 8 % 9 % -3 % -8 % -15 % -15 % -11 %
 
OPERATING PROFIT (LOSS)
INDUSTRIAL SEGMENT $ 26,897 $ 26,477 $ 34,123 $ 32,752 $ 120,249 $ 26,705 $ 23,517 $ 29,165 $ 26,267 $ 105,654
ENERGY SEGMENT 8,923 9,504 19,936 18,049 56,412 12,442 8,680 12,774 9,106 43,002
ENGINEERED SOLUTIONS SEGMENT 13,190 9,548 13,560 5,638 41,936 6,278 2,010 8,313 3,188 19,789
CORPORATE / GENERAL   (5,363 )     (6,548 )     (8,839 )     (8,234 )     (28,984 )   (7,207 )     (6,301 )     (7,250 )     (9,780 )     (30,538 )
TOTAL - EXCLUDING GAIN ON PRODUCT LINE DIVESTITURE AND IMPAIRMENT CHARGE $ 43,647 $ 38,981 $ 58,780 $ 48,205 $ 189,613 $ 38,218 $ 27,906 $ 43,002 $ 28,781 $ 137,907
GAIN ON PRODUCT LINE DIVESTITURE - - - 13,495 13,495 - - - - -
IMPAIRMENT CHARGE   -       -       -       -       -     -       (84,353 )     -       -       (84,353 )
TOTAL $ 43,647     $ 38,981     $ 58,780     $ 61,700     $ 203,108   $ 38,218     $ (56,447 )   $ 43,002     $ 28,781     $ 53,554  
 
OPERATING PROFIT %
INDUSTRIAL SEGMENT 27.3 % 28.3 % 31.1 % 29.3 % 29.1 % 26.1 % 24.4 % 28.2 % 26.3 % 26.3 %
ENERGY SEGMENT 8.3 % 9.0 % 15.9 % 14.7 % 12.2 % 11.2 % 8.7 % 12.9 % 9.0 % 10.4 %
ENGINEERED SOLUTIONS SEGMENT 9.9 % 7.4 % 9.5 % 4.7 % 8.0 % 5.5 % 1.9 % 7.1 % 3.2 % 4.6 %
TOTAL (INCLUDING CORPORATE) - EXCLUDING GAIN ON PRODUCT LINE DIVESTITURE AND IMPAIRMENT CHARGE 12.9 % 11.9 % 15.5 % 13.6 % 13.5 % 11.7 % 9.3 % 13.4 % 9.6 % 11.0 %
 
EBITDA
INDUSTRIAL SEGMENT $ 28,657 $ 27,907 $ 35,426 $ 35,017 $ 127,007 $ 28,715 $ 25,534 $ 31,194 $ 27,968 $ 113,411
ENERGY SEGMENT 17,923 18,130 27,898 24,809 88,760 20,011 15,732 19,278 15,348 70,369
ENGINEERED SOLUTIONS SEGMENT 17,365 13,581 18,464 9,046 58,456 11,514 5,603 12,294 6,635 36,046
CORPORATE / GENERAL   (5,235 )     (6,202 )     (8,659 )     (7,916 )     (28,012 )   (7,875 )     (5,111 )     (7,037 )     (8,770 )     (28,793 )
TOTAL - EXCLUDING GAIN ON PRODUCT LINE DIVESTITURE AND IMPAIRMENT CHARGE $ 58,710 $ 53,416 $ 73,129 $ 60,956 $ 246,211 $ 52,365 $ 41,758 $ 55,729 $ 41,181 $ 191,033
GAIN ON PRODUCT LINE DIVESTITURE - - - 13,495 13,495 - - - - -
IMPAIRMENT CHARGE   -       -       -       -       -     -       (84,353 )     -       -       (84,353 )
TOTAL $ 58,710     $ 53,416     $ 73,129     $ 74,451     $ 259,706   $ 52,365     $ (42,595 )   $ 55,729     $ 41,181     $ 106,680  
 
EBITDA %
INDUSTRIAL SEGMENT 29.1 % 29.8 % 32.3 % 31.3 % 30.7 % 28.0 % 26.5 % 30.1 % 28.0 % 28.2 %
ENERGY SEGMENT 16.6 % 17.1 % 22.3 % 20.1 % 19.2 % 17.9 % 15.7 % 19.4 % 15.2 % 17.1 %
ENGINEERED SOLUTIONS SEGMENT 13.1 % 10.6 % 12.9 % 7.6 % 11.2 % 10.1 % 5.4 % 10.5 % 6.7 % 8.3 %
TOTAL (INCLUDING CORPORATE) - EXCLUDING GAIN ON PRODUCT LINE DIVESTITURE AND IMPAIRMENT CHARGE 17.3 % 16.3 % 19.3 % 17.2 % 17.6 % 16.0 % 13.9 % 17.4 % 13.7 % 15.3 %

 
ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA
RECONCILIATION OF GAAP MEASURE TO NON-GAAP MEASURES
(Dollars in thousands, except for per share amounts)
                   
 
FISCAL 2014 FISCAL 2015
Q1   Q2   Q3   Q4   TOTAL Q1   Q2   Q3   Q4   TOTAL
EARNINGS BEFORE SPECIAL ITEMS (1)
NET EARNINGS (LOSS) $ 36,037 $ 41,392 $ 50,557 $ 35,587 $ 163,573 $ 24,674 $ (64,838 ) $ 37,958 $ 22,078 $ 19,872
EARNINGS FROM DISCONTINUED OPERATIONS, NET OF INCOME TAX   (3,032 )     (19,088 )     -     -       (22,120 )   -     -       -       -       -
EARNINGS (LOSS) FROM CONTINUING OPERATIONS 33,005 22,304 50,557 35,587 141,453 24,674 (64,838 ) 37,958 22,078 19,872
GAIN ON PRODUCT LINE DIVESTITURE, NET OF INCOME TAX - - - (2,813 ) (2,813 ) - - - - -
IMPAIRMENT CHARGE, NET OF INCOME TAX   -       -       -     -       -     -     82,636       -       -       82,636
TOTAL $ 33,005     $ 22,304     $ 50,557   $ 32,774     $ 138,640   $ 24,674   $ 17,798     $ 37,958     $ 22,078     $ 102,508
 

DILUTED EARNINGS PER SHARE, BEFORE SPECIAL ITEMS (1)

NET EARNINGS (LOSS) $ 0.48 $ 0.56 $ 0.70 $ 0.51 $ 2.26 $ 0.38 $ (1.05 ) $ 0.63 $ 0.37 $ 0.32
EARNINGS FROM DISCONTINUED OPERATIONS, NET OF INCOME TAX   (0.04 )     (0.26 )     -     -       (0.31 )   -     -       -       -       -
EARNINGS (LOSS) FROM CONTINUING OPERATIONS 0.44 0.30 0.70 0.51 1.95 0.38 (1.05 ) 0.63 0.37 0.32
GAIN ON PRODUCT LINE DIVESTITURE, NET OF INCOME TAX - - - (0.04 ) (0.04 ) - - - - -
IMPAIRMENT CHARGE, NET OF INCOME TAX   -       -       -     -       -     -     1.33       -       -       1.33
TOTAL $ 0.44     $ 0.30     $ 0.70   $ 0.47     $ 1.91   $ 0.38   $ 0.28     $ 0.63     $ 0.37     $ 1.65
 
 
EBITDA (2)
NET EARNINGS (LOSS) (GAAP MEASURE) $ 36,037 $ 41,392 $ 50,557 $ 35,587 $ 163,573 $ 24,674 $ (64,838 ) $ 37,958 $ 22,078 $ 19,872
EARNINGS FROM DISCONTINUED OPERATIONS, NET OF INCOME TAX   (3,032 )     (19,088 )     -     -       (22,120 )   -     -       -       -       -
EARNINGS (LOSS) FROM CONTINUING OPERATIONS 33,005 22,304 50,557 35,587 141,453 24,674 (64,838 ) 37,958 22,078 19,872
FINANCING COSTS, NET 6,750 6,262 5,932 6,101 25,045 6,191 7,030 7,462 7,374 28,057
INCOME TAX EXPENSE (BENEFIT) 2,751 9,089 1,671 19,062 32,573 7,792 1,980 (2,987 ) (1,266 ) 5,519
DEPRECIATION & AMORTIZATION   16,204       15,761       14,969     13,701       60,635     13,708     13,233       13,296       12,995       53,232
EBITDA - EXCLUDING DISCONTINUED OPERATIONS (NON-GAAP MEASURE) $ 58,710 $ 53,416 $ 73,129 $ 74,451 $ 259,706 $ 52,365 $ (42,595 ) $ 55,729 $ 41,181 $ 106,680
GAIN ON PRODUCT LINE DIVESTITURE - - - (13,495 ) (13,495 ) - - - - -
IMPAIRMENT CHARGE   -       -       -     -       -     -     84,353       -       -       84,353
EBITDA - EXCLUDING GAIN ON PRODUCT LINE DIVESTITURE AND IMPAIRMENT CHARGE (NON-GAAP MEASURE) $ 58,710     $ 53,416     $ 73,129   $ 60,956     $ 246,211   $ 52,365   $ 41,758     $ 55,729     $ 41,181     $ 191,033
 
FOOTNOTES
 
NOTE: The total of the individual quarters may not equal the annual total due to rounding.
 
(1) Earnings and diluted earnings per share, excluding special items (discontinued operations, gain on product line divestiture and impairment charge), represent net earnings (loss) and diluted earnings (loss) per share per the Condensed Consolidated Statements 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 (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 before financing costs, net, income tax expense, discontinued operations and depreciation & amortization. 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 Earnings data. EBITDA should not be considered as an alternative to net earnings (loss) or operating profit (loss) 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.

Source: Actuant Corporation

Actuant Corporation
Karen Bauer
Communications & Investor Relations Leader
262-293-1562