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Actuant Reports Fourth Quarter and Full Year Fiscal 2016 Results; Provides 2017 Guidance

MILWAUKEE--(BUSINESS WIRE)--Sep. 28, 2016-- Actuant Corporation (NYSE: ATU) today announced results for its fourth quarter and fiscal year ended August 31, 2016.

Fourth Quarter Highlights

  • Fourth quarter total sales declined 8% year-over-year with unfavorable foreign currency exchange rate changes negatively impacting sales by 1%, and the net benefit of acquisitions and divestitures adding 4%. Core sales were 11% lower year-over-year (total sales excluding the impact of acquisitions, divestitures and foreign currency rate changes).
  • GAAP diluted earnings per share (“EPS”) were $0.29 in the fourth quarter of fiscal 2016 versus $0.37 in the prior year. Excluding fourth quarter fiscal 2016 restructuring charges of $0.03 per share, and a net $0.02 per share divestiture gain, adjusted EPS was $0.30 (see “Consolidated Results” below and the attached reconciliation of earnings).
  • Restructuring activities continued with $3.1 million of pre-tax charges ($0.03 per share) incurred in the fourth quarter related to facility consolidations, structural changes and staffing reductions.
  • Divested Sanlo, a $10 million product line in the Engineered Solutions segment, to simplify the portfolio.
  • Strong fourth quarter GAAP cash flow from operating activities of $43 million, bringing the full year to $118 million.
  • Introduced fiscal 2017 full year sales and EPS guidance of $1.075-1.125 billion and $1.00-1.20, respectively, excluding restructuring charges.

Randy Baker, President and CEO of Actuant, commented, “Fourth quarter sales and adjusted operating results were in line with our expectations. End user demand across our diverse industrial markets appears to be stable at near trough levels. As anticipated, the fourth quarter core sales rate of change was weaker than the third quarter due to further customer destocking within Engineered Solutions and the conclusion of certain large projects within Energy. Margins continued to be adversely impacted by reduced sales volumes, unfavorable business mix and lower production and absorption levels. The pace of restructuring actions remains on track and we have been accelerating lean manufacturing efforts within the businesses to drive additional savings. Our recent acquisitions contributed nicely to the quarter’s financial results. We were especially pleased with the strong fourth quarter cash flow driving our 16th consecutive year of free cash flow conversion of net earnings in excess of 100%, which provides the capital for future growth investments. The divestiture of the Sanlo product line in the quarter demonstrates the measured portfolio shifts we expect to continue in order to build a more resilient Actuant. In summary, in this tepid demand environment our focus remains on tightly managing costs while continuing to invest in our best businesses.”

Consolidated Results

Consolidated sales for the fourth quarter were $276 million, 8% below the $300 million in the comparable prior year quarter. Core sales declined 11%, unfavorable foreign currency exchange rate changes negatively impacted sales by 1% and the net impact of acquisitions and divestitures added 4%. Fiscal 2016 fourth quarter earnings and EPS were $17.4 million, and $0.29 per share, compared to $22.1 million and $0.37 per share, respectively, in the comparable prior year quarter. The fourth quarter of 2016 included a $5.1 million pre-tax loss ($1.6 million or $0.02 per share after-tax gain) on the Sanlo product line divestiture. It also included $3.1 million in pre-tax restructuring charges ($2.1 million or $0.03 per share after-tax). Excluding these items, adjusted fiscal 2016 fourth quarter EPS was $0.30 compared to $0.37 in the prior year quarter due primarily to lower prior year income tax expense (see attached reconciliation of earnings).

Sales for the fiscal year ended August 31, 2016 were $1,149 million, 8% lower than the $1,249 million in the prior year. Excluding the 3% decline from the stronger US dollar and 1% benefit from acquisitions net of divestitures, full year core sales declined 6%. The full year fiscal 2016 net loss was $105.2 million or $1.78 per share, compared to earnings of $19.9 million or $0.32 per share in the prior year. Excluding impairment charges in both years, fiscal 2016 restructuring charges of $14.6 million ($0.17 per share), and the Sanlo divestiture, fiscal 2016 adjusted EPS was $1.22 compared to $1.65 in the prior year (see attached reconciliation of earnings).

Segment Results

Industrial Segment

(US $ in millions)

  Three Months Ended

August 31,

  Year Ended

August 31,

2016   2015 2016   2015
Sales $94.0 $100.0 $359.8 $402.5
Operating Profit $20.8 $26.3 $79.8 $105.7
Adjusted Op Profit (1) $22.1 $26.3 $82.9 $105.7
Adjusted Op Profit % (1) 23.6% 26.3% 23.0% 26.3%

(1) 2016 excludes $1.4 and $3.1 of restructuring charges in the fourth quarter and full year, respectively.

Fourth quarter fiscal 2016 Industrial segment sales were $94 million, 6% lower than the comparable prior year period. The Larzep acquisition added 2% to fourth quarter 2016 sales growth while currency translation was neutral resulting in a core sales decline of 8%. Integrated Solutions sales improved on a year-over-year basis due to higher standard product sales, yet project activity remains lumpy. Industrial Tool demand declined year-over-year, the result of continued tepid global activity across most served markets. North America remains the weakest region. While monthly order rates are erratic, the demand trend appears to be stable at the low run rate. Fourth quarter adjusted operating margins declined year-over-year primarily due to the impacts of lower sales and unfavorable mix.

Energy Segment

(US $ in millions)

  Three Months Ended

August 31,

  Year Ended

August 31,

2016   2015 2016   2015
Sales $91.4 $100.8 $392.7 $411.9
Operating Profit (Loss) $8.3 $9.1 $(107.5) $(41.4)
Adjusted Op Profit (2) $8.9 $9.1 $38.9 $43.0
Adjusted Op Profit % (2) 9.8% 9.0% 9.9% 10.4%

(2) 2016 excludes $0.7 and $5.5 of restructuring charges in the fourth quarter and full year, respectively. Full year results also exclude impairment charges of $140.8 million and $84.4 million in 2016 and 2015, respectively.

Fiscal 2016 fourth quarter Energy segment sales declined 9% year-over-year to $91 million. Excluding the unfavorable 4% foreign currency headwind, and 10% acquisition benefit, core sales declined 15%, in line with expectations. Core sales in the maintenance focused Hydratight business declined modestly, after delivering robust growth throughout the fiscal year. This lumpy demand pattern is typical and reflects the wind-up of certain large projects as well as maintenance push outs and scope reductions in oil & gas. The segment’s upstream oil & gas sales declined substantially year-over year, yet were sequentially similar to the third quarter, reflecting continued weak energy capital spending. The segment continues to successfully redirect resources to its non-oil & gas product lines which delivered sales growth in the quarter. Fourth quarter adjusted operating profit margin improved despite the high decremental margins at Viking, due primarily to the benefit of cost reduction actions throughout the segment as well as favorable mix within Cortland.

Engineered Solutions Segment

(US $ in millions)

  Three Months Ended

August 31,

  Year Ended

August 31,

2016   2015 2016   2015
Sales $90.3 $99.5 $396.9 $434.9
Operating Profit (Loss) $(5.0) $3.2 $(43.0) $19.8
Adjusted Op Profit (3) $0.9 $3.2 $13.2 $19.8
Adjusted Op Profit % (3) 1.0% 3.2% 3.3% 4.6%

(3) 2016 excludes $0.9 and $5.4 of restructuring charges in the fourth quarter and full year, respectively. 2016 fourth quarter and full year results exclude the $5.1 million pre-tax loss on the Sanlo divestiture. Finally, 2016 full year results also exclude impairment charges of $45.7 million.

Fourth quarter fiscal 2016 Engineered Solutions segment sales were $90 million, 9% below the prior year. The fourth quarter Sanlo divestiture took place at the end of the quarter and had no meaningful impact on the sales comparison. Segment core sales declined 9% as destocking by off-highway and agriculture OEMs continued to accelerate in the fourth quarter, which more than offset increases in European and China heavy-duty truck sales. Fourth quarter adjusted operating profit margin declined year-over-year on lower volumes and manufacturing absorption, as well as a $1.8 million warranty provision.

Corporate and Income Taxes

Corporate expenses of $5.6 million in the fourth quarter of fiscal 2016 were $4.2 million below the prior year which included an adverse legal matter and former CEO separation costs. In addition, the current year quarter benefitted from prior cost reduction actions. Fourth quarter income taxes included a $6.6 million benefit resulting from the Sanlo divestiture. Excluding restructuring and the Sanlo divestiture, the approximate 6% fourth quarter effective tax rate was in line with expectations but higher than last year’s negative rate which benefited from favorable adjustments.

Financial Position

Net debt at August 31, 2016 was $405 million (total debt of $585 million less $180 million of cash), which was $45 million lower than the prior quarter end due to strong cash flow and approximately $10 million of proceeds from the Sanlo divestiture. Partially offsetting this was $3 million of cash used to repurchase approximately 0.1 million shares of common stock. At August 31, 2016, the Company had a net debt to EBITDA leverage ratio of 2.5 times.

Outlook

Baker continued, “Looking into fiscal 2017, we currently do not see a catalyst to meaningfully improve overall end market conditions. The first half in particular is expected to continue recent core sales trends, OEM destocking, and difficult comparisons, notably in large project activity in Energy. We do expect these factors to give way to sequential year-over-year improvement in the back half of the fiscal year. We will continue to press ahead where we see self-help opportunities. We are actively pursuing sales growth above market rates through share capture and geographic expansion, remain focused on increasing maintenance orders, and are positioning the portfolio to support our best businesses. Through these efforts, and supported by our renewed operational discipline, we expect to translate a lower sales environment into operating profit margin growth in fiscal 2017.

We currently project full year fiscal 2017 sales in the range of $1.075 - 1.125 billion, reflecting a core sales decline of 2-6%. EPS (excluding restructuring charges) is expected to be in the range of $1.00-1.20, reflecting lower sales and a higher effective tax rate (estimated at approximately 15%), offset by the benefit of cost reduction actions. Full year free cash flow is expected to be in the range of $85-95 million. First quarter guidance includes sales in the $260-270 million range on a 14-16% core sales decline, and EPS of $0.14-0.19 (excluding restructuring charges). The first quarter of fiscal 2016 included a sizable Energy maintenance project which exacerbates the year-over-year decline.

As always, our guidance excludes the impact of potential future acquisitions, divestitures, and stock buybacks, which will be incorporated into future quarterly guidance updates as they occur.”

In closing, Baker stated, “Actuant is investing in its best businesses through both organic and acquisition focused efforts, is reinvigorating its lean initiative to improve the cost structure, and is building a culture of performance, all of which are expected to create long-term shareholder value.”

Conference Call Information

An investor conference call is scheduled for 10am CT today, September 28, 2016. 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,
2016 2015
 
ASSETS
Current assets
Cash and cash equivalents $ 179,604 $ 168,846
Accounts receivable, net 186,829 193,081
Inventories, net 130,756 142,752
Deferred income taxes - 12,922
Other current assets   45,463     42,788  
Total current assets 542,652 560,389
 
Property, plant and equipment, net 114,015 142,458
Goodwill 519,276 608,256
Other intangible assets, net 239,475 308,762
Other long-term assets   27,120     17,052  
 
Total assets $ 1,442,538   $ 1,636,917  
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Trade accounts payable $ 115,051 $ 118,115
Accrued compensation and benefits 46,901 43,707
Current maturities of debt and short-term borrowings 18,750 3,969
Income taxes payable 9,254 14,805
Other current liabilities   51,956     54,460  
Total current liabilities 241,912 235,056
 
Long-term debt 565,559 584,309
Deferred income taxes 31,356 72,941
Pension and postretirement benefit accruals 25,667 17,828
Other long-term liabilities   57,094     53,782  
Total liabilities 921,588 963,916
 
Shareholders' equity
Capital stock 15,879 15,787
Additional paid-in capital 114,980 104,308
Treasury stock (617,731 ) (600,630 )
Retained earnings 1,259,645 1,367,176
Accumulated other comprehensive loss (251,823 ) (213,640 )
Stock held in trust (2,646 ) (4,292 )
Deferred compensation liability   2,646     4,292  
Total shareholders' equity   520,950     673,001  
 
Total liabilities and shareholders' equity $ 1,442,538   $ 1,636,917  

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,
2016   2015 2016   2015
 
Net sales $ 275,769 $ 300,384 $ 1,149,410 $ 1,249,254
Cost of products sold   179,489     193,841     746,013     787,414
Gross profit 96,280 106,543 403,397 461,840
 
Selling, administrative and engineering expenses 64,295 71,792 274,497 299,601
Amortization of intangible assets 5,596 5,970 22,943 24,332
Loss on product line divestiture 5,092 - 5,092 -
Restructuring charges 3,113 - 14,571 -
Impairment charges   -     -     186,511     84,353
Operating profit (loss) 18,184 28,781 (100,217 ) 53,554
 
Financing costs, net 7,532 7,374 28,768 28,057
Other expense (income), net   (246 )   595     1,359     106
Income (loss) before income tax expense (benefit) 10,898 20,812 (130,344 ) 25,391
 
Income tax (benefit) expense   (6,504 )   (1,266 )   (25,170 )   5,519
Net income (loss) $ 17,402   $ 22,078   $ (105,174 ) $ 19,872
 
Earnings (loss) per share
Basic $ 0.30 $ 0.37 $ (1.78 ) $ 0.32
Diluted 0.29 0.37 (1.78 ) 0.32
 
Weighted average common shares outstanding
Basic 58,938 59,314 59,010 61,262
Diluted 59,598 59,897 59,010 62,055

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,
2016 2015 2016 2015
 
Operating Activities
Net earnings (loss) $ 17,402 $ 22,078 $ (105,174 ) $ 19,872
Adjustments to reconcile net loss to net cash provided by
operating activities:
Impairment charges net of deferred tax benefits - - 169,056 82,635
Depreciation and amortization 11,558 13,004 47,777 53,239
Stock-based compensation expense 2,874 2,809 10,442 12,046

Gain on product line divestiture, net of deferred tax benefits

(1,557 ) - (1,557 ) -
Amortization of debt issuance costs 413 568 1,652 1,897
Other non-cash adjustments (57 ) 392 (517 ) 805
Changes in components of working capital and other:
Accounts receivable 12,506 24,142 20,261 12,827
Inventories 4,766 11,684 10,202 6,608
Trade accounts payable (4,229 ) (11,523 ) (7,727 ) (19,801 )
Prepaid expenses and other assets 4,691 6,832 (3,291 ) (8,761 )
Income tax accounts 3,014 20,467 (25,319 ) (23,850 )
Accrued compensation and benefits 182 2,742 4,565 (6,478 )
Other accrued liabilities   (8,857 )   (5,385 )   (2,673 )   395  
Cash provided by operating activities 42,706 87,810 117,697 131,434
 
Investing Activities
Capital expenditures (4,586 ) (5,282 ) (20,209 ) (22,516 )
Proceeds from sale of property, plant and equipment 661 358 9,296 1,244
Business acquisitions, net of cash acquired (1,242 ) - (81,916 ) -
Proceeds from sale of product line, net of transaction costs   9,695     -     9,695     -  
Cash provided by (used in) investing activities 4,528 (4,924 ) (83,134 ) (21,272 )
 
Financing Activities
Net borrowings (repayments) on revolving credit facility - 220 (210 ) 220
Principal repayments on term loan (3,750 ) - (3,750 ) (3,375 )
Proceeds from term loan - - - 213,375
Redemption of 5.625% Senior Notes - (11,941 ) - (11,941 )
Purchase of treasury shares (2,976 ) (7,376 ) (17,101 ) (212,003 )
Debt issuance costs - (150 ) - (2,025 )
Taxes paid related to the net share settlement of equity awards (65 ) (122 ) (1,409 ) (2,466 )
Stock option exercises, related tax benefits and other 687 350 6,416 5,396
Cash dividend   -     -     (2,376 )   (2,598 )
Cash used in financing activities (6,104 ) (19,019 ) (18,430 ) (15,417 )
 
Effect of exchange rate changes on cash   1,385     (3,146 )   (5,375 )   (34,911 )
Net increase in cash and cash equivalents 42,515 60,721 10,758 59,834
Cash and cash equivalents - beginning of period   137,089     108,125     168,846     109,012  
Cash and cash equivalents - end of period $ 179,604   $ 168,846   $ 179,604   $ 168,846  

ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA FROM CONTINUING OPERATIONS
(Dollars in thousands)
                       
FISCAL 2015 FISCAL 2016
Q1   Q2   Q3   Q4   TOTAL Q1   Q2   Q3   Q4   TOTAL
SALES
INDUSTRIAL SEGMENT $ 102,413 $ 96,488 $ 103,546 $ 100,016 $ 402,463 $ 88,870 $ 81,189 $ 95,750 $ 94,008 $ 359,817
ENERGY SEGMENT 111,522 100,211 99,296 100,846 411,875 113,763 86,224 101,300 91,443 392,730
ENGINEERED SOLUTIONS SEGMENT   113,830       104,306       117,258       99,522       434,916     102,378       95,876       108,291       90,318       396,863  
TOTAL $ 327,765     $ 301,005     $ 320,100     $ 300,384     $ 1,249,254   $ 305,011     $ 263,289     $ 305,341     $ 275,769     $ 1,149,410  
 
% SALES GROWTH
INDUSTRIAL SEGMENT 4 % 3 % -6 % -11 % -3 % -13 % -16 % -8 % -6 % -11 %
ENERGY SEGMENT 3 % -5 % -21 % -18 % -11 % 2 % -14 % 2 % -9 % -5 %
ENGINEERED SOLUTIONS SEGMENT -14 % -19 % -18 % -17 % -17 % -10 % -8 % -8 % -9 % -9 %
TOTAL -3 % -8 % -15 % -15 % -11 % -7 % -13 % -5 % -8 % -8 %
 
OPERATING PROFIT (LOSS)
INDUSTRIAL SEGMENT $ 26,705 $ 23,517 $ 29,165 $ 26,267 $ 105,654 $ 21,263 $ 17,003 $ 22,519 $ 22,144 $ 82,929
ENERGY SEGMENT 12,442 8,680 12,774 9,106 43,002 12,124 5,348 12,438 8,941 38,851
ENGINEERED SOLUTIONS SEGMENT 6,278 2,010 8,313 3,188 19,789 4,937 2,555 4,768 927 13,187
CORPORATE / GENERAL   (7,207 )     (6,301 )     (7,250 )     (9,780 )     (30,538 )   (8,573 )     (6,928 )     (7,886 )     (5,623 )     (29,010 )
ADJUSTED OPERATING PROFIT $ 38,218 $ 27,906 $ 43,002 $ 28,781 $ 137,907 $ 29,751 $ 17,978 $ 31,839 $ 26,389 $ 105,957
IMPAIRMENT CHARGES - (84,353 ) - - (84,353 ) - (186,511 ) - - (186,511 )
LOSS ON SANLO PRODUCT LINE DIVESTITURE - - - - - - - - (5,092 ) (5,092 )
RESTRUCTURING CHARGES   -       -       -       -       -     (4,380 )     (3,582 )     (3,496 )     (3,113 )     (14,571 )
OPERATING PROFIT $ 38,218     $ (56,447 )   $ 43,002     $ 28,781     $ 53,554   $ 25,371     $ (172,115 )   $ 28,343     $ 18,184     $ (100,217 )
 
OPERATING PROFIT %
INDUSTRIAL SEGMENT 26.1 % 24.4 % 28.2 % 26.3 % 26.3 % 23.9 % 20.9 % 23.5 % 23.6 % 23.0 %
ENERGY SEGMENT 11.2 % 8.7 % 12.9 % 9.0 % 10.4 % 10.7 % 6.2 % 12.3 % 9.8 % 9.9 %
ENGINEERED SOLUTIONS SEGMENT 5.5 % 1.9 % 7.1 % 3.2 % 4.6 % 4.8 % 2.7 % 4.4 % 1.0 % 3.3 %
ADJUSTED OPERATING PROFIT % 11.7 % 9.3 % 13.4 % 9.6 % 11.0 % 9.8 % 6.8 % 10.4 % 9.6 % 9.2 %
 
EBITDA
INDUSTRIAL SEGMENT $ 28,715 $ 25,534 $ 31,194 $ 27,968 $ 113,411 $ 22,959 $ 18,829 $ 24,686 $ 24,209 $ 90,683
ENERGY SEGMENT 20,011 15,732 19,278 15,348 70,369 18,348 10,968 16,819 13,717 59,852
ENGINEERED SOLUTIONS SEGMENT 11,514 5,603 12,294 6,635 36,046 8,498 6,882 8,504 5,270 29,154
CORPORATE / GENERAL   (7,875 )     (5,111 )     (7,037 )     (8,770 )     (28,793 )   (8,201 )     (6,552 )     (7,560 )     (5,182 )     (27,495 )
ADJUSTED EBITDA $ 52,365 $ 41,758 $ 55,729 $ 41,181 $ 191,033 $ 41,604 $ 30,127 $ 42,449 $ 38,014 $ 152,194
IMPAIRMENT CHARGES - (84,353 ) - - (84,353 ) - (186,511 ) - - (186,511 )
LOSS ON SANLO PRODUCT LINE DIVESTITURE - - - - - - - - (5,092 ) (5,092 )
RESTRUCTURING CHARGES   -       -       -       -       -     (4,380 )     (3,582 )     (3,496 )     (3,113 )     (14,571 )
EBITDA $ 52,365     $ (42,595 )   $ 55,729     $ 41,181     $ 106,680   $ 37,224     $ (159,966 )   $ 38,953     $ 29,809     $ (53,980 )
 
EBITDA %
INDUSTRIAL SEGMENT 28.0 % 26.5 % 30.1 % 28.0 % 28.2 % 25.8 % 23.2 % 25.8 % 25.8 % 25.2 %
ENERGY SEGMENT 17.9 % 15.7 % 19.4 % 15.2 % 17.1 % 16.1 % 12.7 % 16.6 % 15.0 % 15.2 %
ENGINEERED SOLUTIONS SEGMENT 10.1 % 5.4 % 10.5 % 6.7 % 8.3 % 8.3 % 7.2 % 7.9 % 5.8 % 7.3 %
ADJUSTED EBITDA % 16.0 % 13.9 % 17.4 % 13.7 % 15.3 % 13.6 % 11.4 % 13.9 % 13.8 % 13.2 %

ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA
RECONCILIATION OF GAAP MEASURE TO NON-GAAP MEASURES
(Dollars in thousands, except for per share amounts)
                       
 
FISCAL 2015 FISCAL 2016
Q1   Q2   Q3   Q4   TOTAL Q1   Q2   Q3   Q4   TOTAL
ADJUSTED EARNINGS (1)
NET EARNINGS (LOSS) $ 24,674 $ (64,838 ) $ 37,958 $ 22,078 $ 19,872 $ 15,448 $ (159,190 ) $ 21,166 $ 17,402 $ (105,174 )
IMPAIRMENT CHARGES - 84,353 - - 84,353 - 186,511 - - 186,511
INCOME TAX BENEFIT ON IMPAIRMENT CHARGES - (1,717 ) - - (1,717 ) - (17,455 ) - - (17,455 )
LOSS ON SANLO PRODUCT LINE DIVESTITURE - - - - - - - - 5,092 5,092
INCOME TAX BENEFIT ON SANLO PRODUCT LINE DIVESTITURE - - - - - - - - (6,649 ) (6,649 )
RESTRUCTURING CHARGES - - - - - 4,380 3,582 3,496 3,113 14,571
INCOME TAX BENEFIT ON RESTRUCTURING CHARGES   -     -       -       -       -     (1,182 )     (1,185 )     (994 )     (960 )     (4,321 )
ADJUSTED EARNINGS $ 24,674   $ 17,798     $ 37,958     $ 22,078     $ 102,508   $ 18,646     $ 12,263     $ 23,668     $ 596     $ 72,575  
 
ADJUSTED EARNINGS PER SHARE (1)
NET EARNINGS (LOSS) $ 0.38 $ (1.05 ) $ 0.63 $ 0.37 $ 0.32 $ 0.26 $ (2.70 ) 0.36 $ 0.29 $ (1.78 )
IMPAIRMENT CHARGES - 1.33 - - 1.33 - 3.16 - - 3.16
INCOME TAX BENEFIT ON IMPAIRMENT CHARGES - - - - - - (0.30 ) - - (0.30 )
LOSS ON SANLO PRODUCT LINE DIVESTITURE - - - - - - - - 0.09 0.08
INCOME TAX BENEFIT ON SANLO PRODUCT LINE DIVESTITURE - - - - - - - - (0.11 ) (0.11 )
RESTRUCTURING CHARGES - - - - - 0.07 0.06 0.06 0.05 0.24
INCOME TAX BENEFIT ON RESTRUCTURING CHARGES   -     -       -       -       -     (0.02 )     (0.02 )     (0.02 )     (0.02 )     (0.07 )
ADJUSTED EARNINGS PER SHARE $ 0.38   $ 0.28     $ 0.63     $ 0.37     $ 1.65   $ 0.31     $ 0.21     $ 0.40     $ 0.30     $ 1.22  
 
 
EBITDA (2)
NET EARNINGS (LOSS) (GAAP MEASURE) $ 24,674 $ (64,838 ) $ 37,958 $ 22,078 $ 19,872 $ 15,448 $ (159,190 ) $ 21,166 $ 17,402 $ (105,174 )
FINANCING COSTS, NET 6,191 7,030 7,462 7,374 28,057 7,117 6,866 7,253 7,532 28,768
INCOME TAX EXPENSE (BENEFIT) 7,792 1,980 (2,987 ) (1,266 ) 5,519 2,187 (20,026 ) (827 ) (6,504 ) (25,170 )
DEPRECIATION & AMORTIZATION   13,708     13,233       13,296       12,995       53,232     12,472       12,384       11,361       11,379       47,596  
EBITDA $ 52,365 $ (42,595 ) $ 55,729 $ 41,181 $ 106,680 $ 37,224 $ (159,966 ) $ 38,953 $ 29,809 $ (53,980 )
IMPAIRMENT CHARGES - 84,353 - - 84,353 - 186,511 - - 186,511
LOSS ON SANLO PRODUCT LINE DIVESTITURE - - - - - - - - 5,092 5,092
RESTRUCTURING CHARGES   -     -       -       -       -     4,380       3,582       3,496       3,113       14,571  
ADJUSTED EBITDA $ 52,365   $ 41,758     $ 55,729     $ 41,181     $ 191,033   $ 41,604     $ 30,127     $ 42,449     $ 38,014     $ 152,194  
FOOTNOTES
 
NOTE:   The total of the individual quarters may not equal the annual total due to rounding.
 
(1) Adjusted earnings and adjusted earnings per share represent net earnings (loss) and 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 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.
 
(2) EBITDA represents net earnings before financing costs, net, income tax expense, 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 Operations data. 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.

Source: Actuant Corporation

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