UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934

Date of Report (Date of earliest event reported):  December 20, 2017


ACTUANT CORPORATION
(Exact name of Registrant as specified in its charter)

Wisconsin

1-11288

39-0168610

(State or other jurisdiction

of incorporation)

(Commission File

Number)

(I.R.S. Employer

Identification No.)



N86 W12500 WESTBROOK CROSSING

MENOMONEE FALLS, WISCONSIN 53051

 

Mailing address: P.O. Box 3241, Milwaukee, Wisconsin 53201

(Address of principal executive offices) (Zip code)


Registrant’s telephone number, including area code: (262) 293-1500



Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company     

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.     


Item 2.02 Results of Operations and Financial Condition.

On December 20, 2017, Actuant Corporation (the “Company”) announced its results of operations for the first quarter ended November 30, 2017.  A copy of the press release announcing the Company's results for the first quarter ended November 30, 2017 is attached as Exhibit 99.1 to this Current Report on Form 8-K.

Item 9.01 Financial Statements and Exhibits.      

(d) Exhibits

99.1      Press Release of the Company dated December 20, 2017.

- 2 -

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

 

ACTUANT CORPORATION

(Registrant)

 
Date: December 20, 2017 By:

/s/ Rick T. Dillon

 

Rick T. Dillon

Executive Vice President and

Chief Financial Officer

- 3 -

Exhibit 99.1

Actuant Reports First Quarter Results; Reaffirms Fiscal 2018 Guidance

MILWAUKEE--(BUSINESS WIRE)--December 20, 2017--Actuant Corporation (NYSE: ATU) today announced results for its first quarter ended November 30, 2017.

Highlights

Randy Baker, President and CEO of Actuant commented, “Actuant delivered solid first quarter financial results. Consolidated sales were above our expectations with robust on and off highway equipment demand and strong industrial volumes which more than offset the continued challenging energy maintenance environment. Unfavorable mix and higher warranty and other one-time costs contributed to the lower than expected margin flow through on those higher sales. Despite these items, and a modestly higher quarterly effective income tax rate, we delivered adjusted EPS of $0.19, at the high end of our guidance range. Importantly, we completed the portfolio management actions needed to significantly limit our offshore, upstream oil and gas exposure with the divestiture of Viking just after quarter end. In summary, a good start to the fiscal year and I am appreciative of the efforts and execution of Actuant employees to meet our financial commitments.”


Consolidated Results

Consolidated sales for the first quarter were $289 million, 9% higher than the $266 million in the comparable prior year quarter. Core sales improved 6% year-over-year while foreign currency rate changes increased sales 3%, with no impact from acquisitions or divestitures. Fiscal 2018 first quarter net earnings and EPS were $5.2 million, or $0.09, compared to $5.0 million and $0.08, respectively, in the comparable prior year quarter. Fiscal 2018 first quarter earnings included restructuring charges of $6.6 million ($6.3 million or $0.10 per share after tax). First quarter 2017 results included $2.9 million ($2.2 million or $0.04 per share, after tax) of restructuring charges and $7.8 million ($4.9 million or $0.08 per share after tax) of director and officer transition charges. Excluding these items, adjusted EPS for the first quarter of fiscal 2018 was $0.19 compared to $0.20 in the comparable prior year period (see attached reconciliation of earnings).

Segment Results

Industrial Segment
(US $ in millions)

        Three Months Ended
November 30,
2017   2016
Sales $96.9 $87.3
Operating Profit $18.3 $18.8
Adjusted Operating Profit (1) $19.5 $19.5
Adjusted Operating Profit %(1) 20.1% 22.3%

(1) Excludes restructuring charges of $1.2 million and $0.7 million in fiscal 2018 and 2017, respectively.

First quarter fiscal 2018 Industrial segment sales were $97 million or 11% higher than the prior year. The impact of foreign currency exchange rates was a 2% benefit resulting in a 9% year-over-year core sales increase. Overall demand for standard industrial tools remained strong globally and across the diverse set of end markets served, representing both market strength and the outgrowth associated with our commercial effectiveness efforts. The first quarter’s robust heavy lifting technology volume more than offset a decline in the concrete tensioning product category. First quarter adjusted operating profit margin of 20.1% reflects solid incremental margins on the industrial tool sales. However, these were more than offset by both unfavorable sales mix and discrete costs associated with heavy lifting projects, along with continued facility consolidation inefficiencies.

Energy Segment
(US $ in millions)

        Three Months Ended
November 30,
2017   2016
Sales $75.8 $84.6
Operating Profit $0.3 $3.2
Adjusted Operating Profit (2) $1.2 $3.3
Adjusted Operating Profit %(2) 1.6% 3.9%

(2) Excludes restructuring charges of $0.9 million and $0.1 million in the first quarter of fiscal 2018 and 2017, respectively.


Fiscal 2018 first quarter Energy segment sales declined 10% year-over-year to $76 million. Excluding the 2% favorable impact of the weaker US dollar, core sales declined 12%. As anticipated, Hydratight’s sales decreased in line with expectations due to the continuation of maintenance deferrals and scope reductions, most notably in the Asia Pacific region. Cortland sales grew double digits on the strength of non-energy rope and cable applications while Viking sales declined as anticipated. Energy segment adjusted operating profit margin declined to 1.6% but the segment was profitable despite the lower volumes and Viking operating losses due to the benefit of cost reductions actions.

Engineered Solutions Segment
(US $ in millions)

        Three Months Ended
November 30,
2017   2016
Sales $116.2 $93.9
Operating Profit $6.3 $0.7
Adjusted Operating Profit (3) $6.6 $2.8
Adjusted Operating Profit %(3) 5.7% 3.0%

(3) Excludes restructuring charges of $0.3 million and $2.1 million in the first quarter of fiscal 2018 and 2017, respectively.

First quarter fiscal 2018 Engineered Solutions segment sales were $116 million or 24% above the prior year. Excluding the 4% benefit of the weaker US dollar, year-over-year core sales increased 20%. The robust sales growth was seen across virtually every end market including heavy-duty truck, agriculture and various other off-highway equipment categories. First quarter adjusted operating profit margin improved 270 basis points from the comparable prior year quarter due to the higher volumes and cost reduction efforts.

Corporate Expenses and Income Taxes (excluding restructuring and transition charges)

Corporate expenses for the first quarter of fiscal 2018 were $6.0 million, or $0.4 million lower than the comparable prior year period due primarily to the benefit of cost reduction actions. The approximate 15% first quarter effective income tax rate was higher than the prior year’s 5% and modestly above expectations.

Financial Position

Net debt at November 30, 2017 was approximately $390 million (total debt of $555 million less $165 million of cash) which includes approximately $27 million in lease buy-out payments made during the quarter as a condition precedent to completion of the Viking divestiture on December 1, 2017.

Outlook

Baker continued, "As the first quarter results demonstrate, we believe we are on track to meet our financial guidance for the fiscal year. Our commitment to investing in organic growth initiatives, including commercial effectiveness and new products, is helping to deliver on our goal of sales outperformance versus the underlying markets. While we have seen margin headwinds, we are making progress correcting underlying operating inefficiencies, improving mix and restructuring our businesses where necessary.

For the full year, we are maintaining our prior sales guidance in the $1.10-1.13 billion range with core sales now up 1-3%. We are also maintaining our adjusted EPS guidance in the $1.05-1.15 range, with a full year estimated effective income tax rate of 5-10%. The effective date of the Viking divestiture and Mirage acquisition is consistent with our initial 2018 guidance assumptions. Free cash flow is projected to be in the $85-95 million range in fiscal 2018.


We expect second quarter sales to be in the $265-275 million range, with adjusted EPS of $0.10-0.15. The second quarter outlook incorporates the normal seasonal slowdown experienced across nearly all of our businesses, along with moderating heavy duty truck demand in China.

All guidance excludes restructuring and divestiture and impairment charges, as well as the impact of potential future acquisitions and share repurchases. We have a strong pipeline of focused tuck-in acquisitions, and we have ample capital to fund both our organic and inorganic deployment priorities."

Conference Call Information

An investor conference call is scheduled for 10 am CT today, December 20, 2017. 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 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)
         
November 30, August 31,
2017 2017
ASSETS
Current assets
Cash and cash equivalents $ 165,050 $ 229,571
Accounts receivable, net 201,317 190,206
Inventories, net 154,246 143,651
Assets held for sale 21,393 21,835
Other current assets   76,330     61,663  
Total current assets 618,336 646,926
 
Property, plant and equipment, net 98,988 94,521
Goodwill 531,454 530,081
Other intangible assets, net 216,032 220,489
Other long-term assets   25,431     24,938  
 
Total assets $ 1,490,241   $ 1,516,955  
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Trade accounts payable $ 141,745 $ 133,387
Accrued compensation and benefits 37,770 50,939
Current maturities of debt and short-term borrowings 30,000 30,000
Income taxes payable 6,642 6,080
Liabilities held for sale 70,787 101,083
Other current liabilities   56,975     57,445  
Total current liabilities 343,919 378,934
 
Long-term debt, net 524,629 531,940
Deferred income taxes 29,567 29,859
Pension and postretirement benefit liabilities 19,539 19,862
Other long-term liabilities   56,269     55,821  
Total liabilities 973,923 1,016,416
 
Shareholders' equity
Capital stock 16,079 16,040
Additional paid-in capital 145,938 138,449
Treasury stock (617,731 ) (617,731 )
Retained earnings 1,196,268 1,191,042
Accumulated other comprehensive loss (224,236 ) (227,261 )
Stock held in trust (2,722 ) (2,696 )
Deferred compensation liability   2,722     2,696  
Total shareholders' equity   516,318     500,539  
 
Total liabilities and shareholders' equity $ 1,490,241   $ 1,516,955  

   
Actuant Corporation
Condensed Consolidated Statements of Earnings
(Dollars in thousands, except per share amounts)
(Unaudited)
   
Three Months Ended
November 30, November 30,
2017   2016
 
Net sales $ 288,955 $ 265,793
Cost of products sold   188,044     172,726  
Gross profit 100,911 93,067
 
Selling, administrative and engineering expenses 74,478 68,602
Amortization of intangible assets 5,131 5,262
Director & officer transition charges - 7,784
Restructuring charges   6,629     2,948  
Operating profit 14,673 8,471
 
Financing costs, net 7,514 7,132
Other expense (income), net   329     (628 )
Earnings before income tax expense (benefit) 6,830 1,967
 
Income tax expense (benefit)   1,604     (2,998 )
Net earnings $ 5,226   $ 4,965  
 
Earnings per share
Basic $ 0.09 $ 0.08
Diluted 0.09 0.08
 
Weighted average common shares outstanding
Basic 59,871 58,972
Diluted 60,609 59,616

 
Actuant Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
   
Three Months Ended
November 30, November 30,
2017 2016
 
Operating Activities
Net earnings $ 5,226 $ 4,965
Adjustments to reconcile net earnings to net cash (used in)
provided by operating activities:
Depreciation and amortization 10,090 10,896
Stock-based compensation expense 5,420 9,554
Benefit for deferred income taxes (307 ) (2,865 )
Amortization of debt issuance costs 413 413
Other non-cash adjustments 113 464
Changes in components of working capital and other:
Accounts receivable (11,478 ) (8,252 )
Inventories (11,628 ) (8,142 )
Trade accounts payable 6,204 6,768
Prepaid expenses and other assets (12,043 ) (5,485 )
Income tax accounts (1,714 ) (1,946 )
Accrued compensation and benefits (12,588 ) (2,757 )
Other accrued liabilities   1,834     8,850  
Cash (used in) provided by operating activities (20,458 ) 12,463
 
Investing Activities
Capital expenditures (7,904 ) (5,139 )
Proceeds from sale of property, plant and equipment 32 130
Lease buyout for future divested business   (27,718 )   -  
Cash used in investing activities (35,590 ) (5,009 )
 
Financing Activities
Principal repayments on term loan (7,500 ) (3,750 )

Stock option exercises & other

2,231 964
Taxes paid related to the net share settlement of equity awards (282 ) (223 )
Cash dividend   (2,390 )   (2,358 )
Cash used in financing activities (7,941 ) (5,367 )
 
Effect of exchange rate changes on cash   (532 )   (4,820 )
Net decrease in cash and cash equivalents (64,521 ) (2,733 )
Cash and cash equivalents - beginning of period   229,571     179,604  
Cash and cash equivalents - end of period $ 165,050   $ 176,871  

                     
ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA
  (Dollars in thousands)
 
FISCAL 2017 FISCAL 2018
Q1   Q2   Q3   Q4   TOTAL Q1   Q2   Q3   Q4   TOTAL
SALES
INDUSTRIAL SEGMENT $ 87,290 $ 91,648 $ 100,503 $ 100,315 $ 379,756 $ 96,916 $   - $   - $   - $ 96,916
ENERGY SEGMENT 84,646 72,884 83,480 68,584 309,594 75,841 - - - 75,841
ENGINEERED SOLUTIONS SEGMENT   93,857       94,337       111,444       106,796       406,434     116,198         -       -       -     116,198  
TOTAL $ 265,793     $ 258,869     $ 295,427     $ 275,695     $ 1,095,784   $ 288,955     $   -   $   -   $   -   $ 288,955  
 
% SALES GROWTH
INDUSTRIAL SEGMENT -2 % 13 % 5 % 7 % 6 % 11 % - - - 11 %
ENERGY SEGMENT -26 % -15 % -18 % -25 % -21 % -10 % - - - -10 %
ENGINEERED SOLUTIONS SEGMENT -8 % -2 % 3 % 18 % 2 % 24 % - - - 24 %
TOTAL -13 % -2 % -3 % 0 % -5 % 9 % - - - 9 %
 
OPERATING PROFIT (LOSS)
INDUSTRIAL SEGMENT $ 19,491 $ 19,037 $ 24,019 $ 24,076 $ 86,623 $ 19,482 $ - $ - $ - $ 19,482
ENERGY SEGMENT 3,328 (647 ) 895 (3,675 ) (99 ) 1,224 - - - 1,224
ENGINEERED SOLUTIONS SEGMENT 2,834 3,282 8,174 6,069 20,359 6,618 - - - 6,618
CORPORATE / GENERAL   (6,450 )     (6,372 )     (5,372 )     (6,935 )     (25,128 )   (6,022 )       -       -       -     (6,022 )
ADJUSTED OPERATING PROFIT $ 19,203 $ 15,300 $ 27,716 $ 19,535 $ 81,755 $ 21,302 $ - $ - $ - $ 21,302
IMPAIRMENT & OTHER DIVESTITURE CHARGES - - - (116,979 ) (116,979 ) - - - - -
RESTRUCTURING CHARGES (2,948 ) (2,101 ) (384 ) (1,795 ) (7,228 ) (6,629 ) - - - (6,629 )
DIRECTOR & OFFICER TRANSITION CHARGES   (7,784 )     -       -       -       (7,784 )   -         -       -       -     -  
OPERATING PROFIT (LOSS) $ 8,471     $ 13,199     $ 27,332     $ (99,239 )   $ (50,236 ) $ 14,673     $   -   $   -   $   -   $ 14,673  
 
ADJUSTED OPERATING PROFIT %
INDUSTRIAL SEGMENT 22.3 % 20.8 % 23.9 % 24.0 % 22.8 % 20.1 % - - - 20.1 %
ENERGY SEGMENT 3.9 % -0.9 % 1.1 % -5.4 % 0.0 % 1.6 % - - - 1.6 %
ENGINEERED SOLUTIONS SEGMENT 3.0 % 3.5 % 7.3 % 5.7 % 5.0 % 5.7 % - - - 5.7 %
ADJUSTED OPERATING PROFIT % 7.2 % 5.9 % 9.4 % 7.1 % 7.5 % 7.4 % - - - 7.4 %
 
EBITDA
INDUSTRIAL SEGMENT $ 21,217 $ 21,064 $ 25,575 $ 25,851 $ 93,707 $ 21,202 $ - $ - $ - $ 21,202
ENERGY SEGMENT 9,108 2,943 4,633 142 16,826 5,125 - - - 5,125
ENGINEERED SOLUTIONS SEGMENT 6,281 7,277 11,716 9,533 34,807 10,254 - - - 10,254
CORPORATE / GENERAL   (5,879 )     (5,846 )     (4,868 )     (6,637 )     (23,230 )   (5,518 )       -       -       -     (5,518 )
ADJUSTED EBITDA $ 30,727 $ 25,438 $ 37,056 $ 28,889 $ 122,110 $ 31,063 $ - $ - $ - $ 31,063
IMPAIRMENT & OTHER DIVESTITURE CHARGES - - - (116,979 ) (116,979 ) - - - - -
RESTRUCTURING CHARGES (2,948 ) (2,101 ) (384 ) (1,795 ) (7,228 ) (6,629 ) - - - (6,629 )
DIRECTOR & OFFICER TRANSITION CHARGES   (7,784 )     -       -       -       (7,784 )   -         -       -       -     -  
EBITDA $ 19,995     $ 23,337     $ 36,672     $ (89,885 )   $ (9,881 ) $ 24,434     $   -   $   -   $   -   $ 24,434  
 
ADJUSTED EBITDA %
INDUSTRIAL SEGMENT 24.3 % 23.0 % 25.4 % 25.8 % 24.7 % 21.9 % - - - 21.9 %
ENERGY SEGMENT 10.8 % 4.0 % 5.5 % 0.2 % 5.4 % 6.8 % - - - 6.8 %
ENGINEERED SOLUTIONS SEGMENT 6.7 % 7.7 % 10.5 % 8.9 % 8.6 % 8.8 % - - - 8.8 %
ADJUSTED EBITDA % 11.6 % 9.8 % 12.5 % 10.5 % 11.1 % 10.8 % - - - 10.8 %

       

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 

 
ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
(Dollars in thousands, except for per share amounts)
 
 
FISCAL 2017 FISCAL 2018
Q1   Q2   Q3   Q4   TOTAL Q1   Q2   Q3   Q4   TOTAL
ADJUSTED EARNINGS (1)
NET EARNINGS (LOSS) $ 4,965 $ 5,074 $ 22,511 $ (98,764 ) $ (66,213 ) $ 5,226 $   - $   - $   - $ 5,226
IMPAIRMENT & OTHER DIVESTITURE CHARGES - - - 116,979 116,979 - - - - -
INCOME TAX BENEFIT ON IMPAIRMENT & OTHER DIVESTITURE CHARGES - - - (8,119 ) (8,119 ) - - - - -
DIRECTOR & OFFICER TRANSITION CHARGES 7,784 - - - 7,784 - - - - -
INCOME TAX BENEFIT ON DIRECTOR & OFFICER TRANSITION CHARGES (2,880 ) - - - (2,880 ) - - - - -
RESTRUCTURING CHARGES 2,948 2,101 384 1,795 7,228 6,629 - - - 6,629
INCOME TAX BENEFIT ON RESTRUCTURING CHARGES (777 ) (564 ) (124 ) (494 ) (1,959 ) (375 ) - - - (375 )
INCOME TAX BENEFIT   -       -       (3,193 )     -       (3,193 )   -         -       -       -     -  
ADJUSTED EARNINGS $ 12,040     $ 6,611     $ 19,578     $ 11,397     $ 49,627   $ 11,480     $   -   $   -   $   -   $ 11,480  
 
ADJUSTED DILUTED EARNINGS PER SHARE (1)
NET EARNINGS (LOSS) $ 0.08 $ 0.08 $ 0.37 $ (1.65 ) $ (1.11 ) $ 0.09 $ - $ - $ - $ 0.09
IMPAIRMENT & OTHER DIVESTITURE CHARGES - - - 1.96 1.96 - - - - -
INCOME TAX BENEFIT ON IMPAIRMENT & OTHER DIVESTITURE CHARGES - - - (0.14 ) (0.14 ) - - - - -
DIRECTOR & OFFICER TRANSITION CHARGES 0.13 - - - 0.13 - - - - -
INCOME TAX BENEFIT ON DIRECTOR & OFFICER TRANSITION CHARGES (0.05 ) - - - (0.05 ) - - - - -
RESTRUCTURING CHARGES 0.05 0.04 0.01 0.03 0.12 0.11 - - - 0.11
INCOME TAX BENEFIT ON RESTRUCTURING CHARGES (0.01 ) (0.01 ) (0.01 ) (0.01 ) (0.03 ) (0.01 ) - - - (0.01 )
INCOME TAX BENEFIT   -       -       (0.05 )     -       (0.05 )   -         -       -       -     -  
ADJUSTED DILUTED EARNINGS PER SHARE $ 0.20     $ 0.11     $ 0.32     $ 0.19     $ 0.83   $ 0.19     $   -   $   -   $   -   $ 0.19  
 
ADJUSTED EBITDA (2)
NET EARNINGS (LOSS) (GAAP MEASURE) $ 4,965 $ 5,074 $ 22,511 $ (98,764 ) $ (66,213 ) $ 5,226 $ - $ - $ - $ 5,226
FINANCING COSTS, NET 7,132 7,334 7,553 7,683 29,703 7,514 - - - 7,514
INCOME TAX (BENEFIT) EXPENSE (2,998 ) 200 (4,029 ) (9,651 ) (16,478 ) 1,604 - - - 1,604
DEPRECIATION & AMORTIZATION   10,896       10,729       10,637       10,847       43,108     10,090         -       -       -     10,090  
EBITDA $ 19,995 $ 23,337 $ 36,672 $ (89,885 ) $ (9,881 ) $ 24,434 $ - $ - $ - $ 24,434
IMPAIRMENT & OTHER DIVESTITURE CHARGES - - - 116,979 116,979 - - - - -
DIRECTOR & OFFICER TRANSITION CHARGES 7,784 - - - 7,784 - - - - -
RESTRUCTURING CHARGES   2,948       2,101       384       1,795       7,228     6,629         -       -       -     6,629  
ADJUSTED EBITDA $ 30,727     $ 25,438     $ 37,056     $ 28,889     $ 122,110   $ 31,063     $   -   $   -   $   -   $ 31,063  
FOOTNOTES
 
NOTE: The total of the individual quarters may not equal the annual total due to rounding.
 
(1) Adjusted earnings and adjusted diluted earnings per share represent net earnings (loss) and 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 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 (loss) before financing costs, net, income tax (benefit) expense, and depreciation & amortization. EBITDA is not a calculation based upon generally accepted accounting principles (GAAP). The amounts included in the EBITDA and Adjusted EBITDA calculation, however, are derived from amounts included in the Condensed Consolidated Statements of Earnings. EBITDA should not be considered as an alternative to net earnings (loss), operating profit (loss) or operating cash flows. Actuant has presented EBITDA because it regularly reviews this performance measure. In addition, EBITDA is used by many of our investors and lenders, and is presented as a convenience to them. The EBITDA measure presented may not always be comparable to similarly titled measures reported by other companies due to differences in the components of the calculation.

         
ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA
RECONCILIATION OF GAAP TO NON-GAAP GUIDANCE
  (Dollars in millions, except for per share amounts)
   
 
Q2 FISCAL 2018 FISCAL 2018
LOW   HIGH LOW   HIGH
RECONCILIATION OF GAAP DILUTED EARNINGS PER SHARE TO ADJUSTED
DILUTED EARNINGS PER SHARE GUIDANCE
GAAP DILUTED EARNINGS PER SHARE $ (0.21 ) $ (0.16 ) $ 0.67 $ 0.77
IMPAIRMENT & OTHER DIVESTITURE CHARGES (1) 0.25 0.25 0.25 0.25
RESTRUCTURING CHARGES   0.06       0.06     0.13       0.13  
ADJUSTED DILUTED EARNINGS PER SHARE GUIDANCE $ 0.10     $ 0.15   $ 1.05     $ 1.15  
 
 
RECONCILIATION OF GAAP CASH FLOW FROM OPERATIONS TO FREE CASH FLOW
CASH FLOW FROM OPERATIONS $ 105 $ 115
CAPITAL EXPENDITURES (30 ) (30 )
OTHER   10       10  
FREE CASH FLOW GUIDANCE $ 85     $ 95  
FOOTNOTES
 
NOTE:

Management does not provide guidance on GAAP financial measures as we are unable to predict and estimate with certainty items such as potential impairments, refinancing costs, business divestiture gains/losses, discrete tax adjustments, or other items impacting GAAP financial metrics. As a result, we have included above only those items about which we are aware and are reasonably likely to occur during the guidance period covered.

 
(1)

Represents the estimated remaining divestiture loss (net of tax) to be recognized upon completion of the sale of the Viking Seatech business effective December 1, 2017 (our fiscal 2018 second quarter).

 

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