ATU
$23.00
Actuant
$.60
2.68%
Earnings Details
3rd Quarter May 2017
Wednesday, June 21, 2017 8:00:11 AM
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Summary

Actuant Misses

Actuant (ATU) reported 3rd Quarter May 2017 earnings of $0.32 per share on revenue of $295.4 million. The consensus earnings estimate was $0.31 per share on revenue of $296.7 million. The Earnings Whisper number was $0.40 per share. Revenue fell 3.2% compared to the same quarter a year ago.

The company said it expects fiscal 2017 earnings of $0.82 to $0.87 per share on revenue of $1.08 billion to $1.09 billion. The company's previous guidance was earnings of $1.10 to $1.20 per share on revenue of $1.075 billion to $1.125 billion and the current consensus earnings estimate is $1.00 per share on revenue of $1.10 billion for the year ending August 31, 2017.

Actuant Corp is a diversified company that designs, manufactures and distributes a broad industrial products and systems to various end markets. The Company is organized into three operating segments as follows: Industrial, Energy & Engineered Solutions.

Results
Reported Earnings
$0.32
Earnings Whisper
$0.40
Consensus Estimate
$0.31
Reported Revenue
$295.4 Mil
Revenue Estimate
$296.7 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Actuant Reports Third Quarter Results; Revises Fiscal 2017 Guidance

Actuant Corporation (ATU) today announced results for its third quarter ended May 31, 2017.

Highlights

Consolidated sales were 3% below the comparable prior year quarter. Foreign currency rate changes reduced sales 2% and net acquisition & divestitures were a 1% headwind. The flat third quarter core sales rate of change reflected solid core growth in both the Industrial and Engineered Solutions segments, offset by difficult market conditions in the Energy segment.

GAAP diluted earnings per share ("EPS") were $0.37 in the third quarter of fiscal 2017 versus $0.36 in the prior year. Adjusted EPS was $0.32, which excludes third quarter fiscal 2017 restructuring charges and one-time income tax benefit of $0.05, compared to adjusted EPS of $0.40 in the comparable prior year period (see Consolidated Results below and the attached reconciliation of earnings).

Strong cash flow and good working capital management provide ample liquidity.

Implementing significant restructuring activities within the maintenance-driven portion of the Energy segment, and actively pursuing strategic alternatives for energy-related offshore mooring business.

Full year sales and adjusted EPS guidance revised to $1.080-1.090 billion and $0.82-$0.87 respectively, reflective of lower energy maintenance activity.

Randy Baker, President and CEO of Actuant, commented, "We had many positive market and strategy execution advancements in the third quarter, but they were not able to offset the difficult conditions that persist within the global energy market. Core sales in the Energy segment declined double digits given continued weak offshore upstream spending, and deterioration in maintenance related activity as customers strive to reduce cash outflows. In contrast, both Industrial and Engineered Solutions grew nicely with improvements in end market demand and customer production levels, along with the benefit of strategic efforts to improve sales effectiveness. These higher volumes delivered solid incremental profits within both growth segments. Adjusted EPS of $0.32, excluding restructuring and one-time tax benefits, was below our original guidance as previously communicated, with weak energy maintenance activity and unfavorable segment mix being the primary drivers. In summary, despite the challenges that persist in Energy, I am pleased with the progress we are making on our commercial, operational, and portfolio management strategies."

Consolidated Results

Consolidated sales for the third quarter were $295 million, 3% lower than the $305 million in the prior year. Core sales were flat as foreign currency rate changes reduced sales 2% and net acquisitions/divestitures were a 1% sales headwind. Fiscal 2017 third quarter net earnings and EPS were $22.5 million, or $0.37, compared to $21.2 million and $0.36, respectively, in the comparable prior year quarter. Fiscal 2017 third quarter earnings included restructuring charges of $0.3 million net of tax, as well as a $3.2 million one-time income tax benefit which increased EPS by $0.05. Third quarter 2016 results included restructuring charges of $2.5 million net of tax, or $0.04 per share. Excluding these items, adjusted EPS for the third quarter of fiscal 2017 was $0.32 compared to $0.40 in the comparable prior year period (see attached reconciliation of earnings).

Sales for the nine months ended May 31, 2017 were $820 million, 6% lower than the $874 million in the prior year. Excluding the 1% negative impact of foreign currency rate changes and 1% benefit of net acquisitions/divestitures, fiscal 2017 year-to-date core sales decreased 6%. Fiscal 2017 year-to-date net earnings and EPS were $32.6 million and $0.54, respectively. The comparable fiscal 2016 year-to-date net loss was $122.6 million or $2.08 per share. Excluding restructuring charges in both years, the 2017 director and officer transition charges and one-time income tax benefit, and fiscal 2016’s impairment charge, fiscal 2017 nine-month adjusted EPS was $0.64 compared to $0.92 in the comparable prior year period (see attached reconciliation of earnings).

Segment Results

Industrial Segment
(US $ in millions)
Three Months Ended May 31,
Nine Months Ended May 31,
2017
2016
2017
2016
Sales
$100.5
$95.8
$279.4
$265.8
Operating Profit
$23.7
$21.7
$60.8
$59.0
Adjusted Op Profit (1)
$24.0
$22.5
$62.5
$60.8
Adjusted Op Profit % (1)
23.9%
23.5%
22.4%
22.9%
(1) 2017 excludes $0.3 and $1.7 of restructuring charges
in the third quarter and nine months, respectively. 2016 excludes
$0.8 and $1.8 of restructuring charges in the third quarter and nine
months, respectively

Third quarter fiscal 2017 Industrial segment sales were $101 million or 5% higher than the prior year. The stronger US dollar resulted in a 1% currency headwind, resulting in core sales growth of 6%. The year-over-year improvement reflects broad based industrial tool demand growth across all geographies. Activity levels improved across an array of end markets and distribution channels, including those serving mining, bolting, construction and other verticals. A modest increase in concrete tensioning product sales was largely offset by a similarly modest decline in the lumpy heavy lifting product business. Third quarter adjusted operating profit margin of 23.9% improved 40 basis points from the prior year on the higher sales volumes, but was negatively impacted by duplicative costs and delayed savings associated with the concrete tensioning facility consolidation.

Energy Segment
(US $ in millions)
Three Months Ended May 31,
Nine Months Ended May 31,
2017
2016
2017
2016
Sales
$83.5
$101.3
$241.0
$301.3
Operating Profit (Loss)
$0.9
$10.8
$3.6
$(115.8)
Adjusted Op Profit (2)
$0.9
$12.4
$3.6
$29.9
Adjusted Op Profit % (2)
1.1%
12.3%
1.5%
9.9%
(2) 2016 excludes $1.6 and $4.9 of restructuring charges
in the third quarter and nine months, respectively. 2016 YTD also
excludes second quarter fiscal 2016 impairment charges of $140.9
million.

Fiscal 2017 third quarter Energy segment sales declined 18% year-over-year to $83 million. Excluding the 2% unfavorable impact of the stronger US dollar, year-over-year core sales declined 16%. Hydratight’s sales activity continued to see the impact of tight customer spending controls on maintenance activities which resulted in cancellations, deferrals and scope reductions, most notably in the Middle East and Asia Pacific regions. The segment experienced year-over-year declines in upstream offshore oil & gas related demand with below average seasonal sequential pick-up. However, the non-Energy portions of the Cortland business continued to see the benefit of sales growth. Adjusted profit margins include operating losses from the upstream offshore oil & gas related product lines and low labor and tool utilization rates associated with the sluggish maintenance activity.

Engineered Solutions Segment
(US $ in millions)
Three Months Ended May 31,
Nine Months Ended May 31,
2017
2016
2017
2016
Sales
$111.4
$108.3
$299.6
$306.5
Operating Profit (Loss)
$8.1
$3.7
$10.7
$(37.9)
Adjusted Op Profit (3)
$8.2
$4.8
$14.3
$12.3
Adjusted Op Profit % (3)
7.3%
4.4%
4.8%
4.0%
(3) 2017 excludes $0.1 and $3.6 of restructuring charges
in the third quarter and nine months, respectively. 2016 excludes
$1.1 and $4.5 of restructuring charges in the third quarter and nine
months, respectively. YTD also excludes second quarter 2016
impairment charges of $45.7 million.

Third quarter fiscal 2017 Engineered Solutions segment sales were $111 million or 3% higher than the prior year. Excluding the 3% unfavorable currency headwind and 2% Sanlo divestiture impact, year-over-year core sales increased 8%. Fiscal 2017 sales reflect improving customer production rates across nearly all served off-highway markets including agriculture and construction, as well as robust sales to China’s heavy-duty truck OEMs. Third quarter adjusted operating profit margin improved 290 basis points year-over-year due to higher volumes and the benefit of prior restructuring actions.

Corporate Expenses and Income Taxes

Corporate expenses for the third quarter of fiscal 2017 were $5.4 million, or $2.5 million lower than the comparable prior year period primarily due to lower M&A transaction expenses. Excluding the tax benefit on restructuring and one-time income tax benefit, the third quarter’s effective income tax rate was approximately -4% compared to 0% for the comparable prior year period (excluding restructuring).

Outlook

Baker continued, "As we enter the final quarter of the fiscal year, we remain confident in our strategies and execution on growth initiatives. We are encouraged by the progress across the organization in sales effectiveness and lean revitalization actions. Unfortunately, these advancements are being more than negated by the impact of the prolonged industry downturn within the energy business. I believe that the long-term fundamentals of the maintenance driven portion of the business remain attractive with its market leading position in a highly fragmented and profitable niche.

We are committed to taking the actions necessary to right size the maintenance operation for the current environment and to maximize available opportunities in the interim. In addition to these restructuring activities, we are taking action on the most impactful portfolio management steps including actively pursuing strategic alternatives for the offshore mooring operation. By extensively limiting our upstream, offshore activity tied predominately to exploration and well development, we believe we will buffer the level of cyclicality and improve long term profitability and cash flow.

Given the above factors, we now expect full year sales to be within the range of $1.080-1.090 billion. We currently expect fiscal 2017 adjusted EPS to be $0.82-0.87, down from $1.10-1.20 as lower energy maintenance volumes and unfavorable segment sales mix weigh on margins. Free cash flow is projected to be in the $65-70 million range in fiscal 2017, down from the previous range of $85-95 million, yet represents conversion of nearly 125% of adjusted net earnings.

All guidance excludes restructuring and transition costs, one-time income tax benefits, as well as the impact of potential future portfolio management actions, acquisitions and share repurchases.

In summary, our near term focus remains on controlling what we can by improving our commercial effectiveness and speed to market, enhancing our lean execution, managing our cost base to current market conditions, and completing critical portfolio management actions. We believe that these initiatives will position the company successfully through cycles regardless of market conditions."

Conference Call Information

An investor conference call is scheduled for 10am CT today, June 21, 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)
May 31,
August 31,
2017
2016
ASSETS
Current assets
Cash and cash equivalents
$
198,954
$
179,604
Accounts receivable, net
207,764
186,829
Inventories, net
130,255
130,756
Other current assets
68,478
45,463
Total current assets
605,451
542,652
Property, plant and equipment, net
117,377
114,015
Goodwill
519,793
519,276
Other intangible assets, net
223,286
239,475
Other long-term assets
22,132
23,242
Total assets
$ 1,488,039
$ 1,438,660
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Trade accounts payable
$
127,636
$
115,051
Accrued compensation and benefits
50,361
46,901
Current maturities of debt and short-term borrowings
30,000
18,750
Income taxes payable
8,785
9,254
Other current liabilities
51,924
51,956
Total current liabilities
268,706
241,912
Long-term debt, net
539,252
561,681
Deferred income taxes
32,315
31,356
Pension and postretirement benefit liabilities
24,462
25,667
Other long-term liabilities
51,744
57,094
Total liabilities
916,479
917,710
Shareholders’ equity
Capital stock
16,026
15,879
Additional paid-in capital
135,579
114,980
Treasury stock
(617,731 )
(617,731 )
Retained earnings
1,292,196
1,259,645
Accumulated other comprehensive loss
(254,510 )
(251,823 )
Stock held in trust
(2,134 )
(2,646 )
Deferred compensation liability
2,134
2,646
Total shareholders’ equity
571,560
520,950
Total liabilities and shareholders’ equity
$ 1,488,039
$ 1,438,660
Actuant Corporation
Condensed Consolidated Statements of Operations
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended
Nine Months Ended
May 31,
May 31,
May 31,
May 31,
2017
2016
2017
2016
Net sales
$ 295,427
$ 305,341
$ 820,089
$
873,641
Cost of products sold
192,623
197,815
536,892
566,524
Gross profit
102,804
107,526
283,197
307,117
Selling, administrative and engineering expenses
70,051
70,120
205,609
210,202
Amortization of intangible assets
5,037
5,567
15,368
17,347
Director & officer transition charges
-
-
7,784
-
Restructuring charges
384
3,496
5,433
11,458
Impairment charges
-
-
-
186,511
Operating profit (loss)
27,332
28,343
49,003
(118,401 )
Financing costs, net
7,553
7,253
22,019
21,236
Other expense, net
1,297
751
1,260
1,605
Earnings (loss) before income tax benefit
18,482
20,339
25,724
(141,242 )
Income tax benefit
(4,029 )
(827 )
(6,827 )
(18,666 )
Net earnings (loss)
$
22,511
$
21,166
$
32,551
$ (122,576 )
Earnings (loss) per share
Basic
$
0.38
$
0.36
$
0.55
$
(2.08 )
Diluted
0.37
0.36
0.54
(2.08 )
Weighted average common shares outstanding
Basic
59,675
58,923
59,339
59,034
Diluted
60,402
59,589
60,055
59,034
Actuant Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended
Nine Months Ended
May 31,
May 31,
May 31,
May 31,
2017
2016
2017
2016
Operating Activities
Net earnings (loss)
$
22,511
$
21,166
$
32,551
$ (122,576 )
Adjustments to reconcile net earnings to net cash provided by
operating activities:
Impairment charges net of deferred tax benefits
-
-
-
169,056
Depreciation and amortization
10,637
11,361
32,262
36,219
Stock-based compensation expense
2,675
1,790
14,852
7,568
Provision (benefit) for deferred income taxes
813
(2,645 )
1,364
(2,225 )
Amortization of debt issuance costs
418
413
1,244
1,239
Other non-cash adjustments
308
159
1,023
(460 )
Changes in components of working capital and other:
Accounts receivable
(1,721 )
(682 )
(22,618 )
7,755
Inventories
75
10,835
(319 )
5,436
Trade accounts payable
1,181
1,428
13,457
(3,498 )
Prepaid expenses and other assets
3,707
422
(7,112 )
(7,982 )
Income tax accounts
(12,355 )
(8,671 )
(19,922 )
(26,108 )
Accrued compensation and benefits
7,473
6,011
3,769
3,730
Other accrued liabilities
1,658
4,541
862
6,837
Cash provided by operating activities
37,380
46,128
51,413
74,991
Investing Activities
Capital expenditures
(8,224 )
(4,619 )
(22,919 )
(15,623 )
Proceeds from sale of property, plant and equipment
-
3,999
244
8,635
Business acquisitions, net of cash acquired
-
(65,648 )
-
(80,674 )
Cash used in investing activities
(8,224 )
(66,268 )
(22,675 )
(87,662 )
Financing Activities
Net borrowings (repayments) on revolving credit facility
-
-
-
(210 )
Principal repayments on term loan
(3,750 )
-
(11,250 )
-
Redemption of 5.625% senior notes
(500 )
-
(500 )
-
Purchase of treasury shares
-
(4,773 )
-
(14,125 )
Taxes paid related to the net share settlement of equity awards
(79 )
(12 )
(999 )
(1,344 )
Stock option exercises, related tax benefits and other
1,365
3,484
7,963
5,729
Payment of deferred acquisition consideration
(742 )
-
(742 )
-
Cash dividend
-
-
(2,358 )
(2,376 )
Cash used in financing activities
(3,706 )
(1,301 )
(7,886 )
(12,326 )
Effect of exchange rate changes on cash
1,614
3,859
(1,502 )
(6,760 )
Net increase (decrease) in cash and cash equivalents
27,064
(17,582 )
19,350
(31,757 )
Cash and cash equivalents - beginning of period
171,890
154,671
179,604
168,846
Cash and cash equivalents - end of period
$ 198,954
$ 137,089
$ 198,954
$
137,089
ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA FROM CONTINUING OPERATIONS
(Dollars in thousands)
FISCAL 2016
FISCAL 2017
Q1
Q2
Q3
Q4
TOTAL
Q1
Q2
Q3
Q4
TOTAL
SALES
INDUSTRIAL SEGMENT
$
88,870
$
81,189
$
95,750
$
94,008
$
359,817
$
87,290
$
91,648
$ 100,503
-
$ 279,441
ENERGY SEGMENT
113,763
86,224
101,300
91,443
392,730
84,646
72,884
83,480
-
241,010
ENGINEERED SOLUTIONS SEGMENT
102,378
95,876
108,291
90,318
396,863
93,857
94,337
111,444
-
299,638
TOTAL
$ 305,011
$
263,289
$ 305,341
$ 275,769
$ 1,149,410
$ 265,793
$ 258,869
$ 295,427
-
$ 820,089
% SALES GROWTH
INDUSTRIAL SEGMENT
-13 %
-16 %
-8 %
-6 %
-11 %
-2 %
13 %
5 %
-
5 %
ENERGY SEGMENT
2 %
-14 %
2 %
-9 %
-5 %
-26 %
-15 %
-18 %
-
-20 %
ENGINEERED SOLUTIONS SEGMENT
-10 %
-8 %
-8 %
-9 %
-9 %
-8 %
-2 %
3 %
-
-2 %
TOTAL
-7 %
-13 %
-5 %
-8 %
-8 %
-13 %
-2 %
-3 %
-
-6 %
OPERATING PROFIT (LOSS)
INDUSTRIAL SEGMENT
$
21,263
$
17,003
$
22,519
$
22,144
$
82,929
$
19,491
$
19,037
$
24,019
-
$
62,547
ENERGY SEGMENT
12,124
5,348
12,438
8,941
38,851
3,328
(647 )
895
-
3,576
ENGINEERED SOLUTIONS SEGMENT
4,937
2,555
4,768
927
13,187
2,834
3,282
8,174
-
14,290
CORPORATE / GENERAL
(8,573 )
(6,928 )
(7,886 )
(5,623 )
(29,010 )
(6,450 )
(6,372 )
(5,372 )
-
(18,194 )
ADJUSTED OPERATING PROFIT
$
29,751
$
17,978
$
31,839
$
26,389
$
105,957
$
19,203
$
15,300
$
27,716
-
$
62,219
IMPAIRMENT CHARGES
-
(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 )
(2,948 )
(2,101 )
(384 )
-
(5,433 )
DIRECTOR & OFFICER TRANSITION CHARGES
-
-
-
-
-
(7,784 )
-
-
-
(7,784 )
OPERATING PROFIT (LOSS)
$
25,371
$ (172,115 )
$
28,343
$
18,184
$
(100,217 )
$
8,471
$
13,199
$
27,332
-
$
49,002
ADJUSTED OPERATING PROFIT %
INDUSTRIAL SEGMENT
23.9 %
20.9 %
23.5 %
23.6 %
23.0 %
22.3 %
20.8 %
23.9 %
-
22.4 %
ENERGY SEGMENT
10.7 %
6.2 %
12.3 %
9.8 %
9.9 %
3.9 %
-0.9 %
1.1 %
-
1.5 %
ENGINEERED SOLUTIONS SEGMENT
4.8 %
2.7 %
4.4 %
1.0 %
3.3 %
3.0 %
3.5 %
7.3 %
-
4.8 %
ADJUSTED OPERATING PROFIT %
9.8 %
6.8 %
10.4 %
9.6 %
9.2 %
7.2 %
5.9 %
9.4 %
-
7.6 %
EBITDA
INDUSTRIAL SEGMENT
$
22,959
$
18,829
$
24,686
$
24,209
$
90,683
$
21,217
$
21,064
$
25,575
-
$
67,856
ENERGY SEGMENT
18,348
10,968
16,819
13,717
59,852
9,108
2,943
4,633
-
16,684
ENGINEERED SOLUTIONS SEGMENT
8,498
6,882
8,504
5,270
29,154
6,281
7,277
11,716
-
25,274
CORPORATE / GENERAL
(8,201 )
(6,552 )
(7,560 )
(5,182 )
(27,495 )
(5,879 )
(5,846 )
(4,868 )
-
(16,592 )
ADJUSTED EBITDA
$
41,604
$
30,127
$
42,449
$
38,014
$
152,194
$
30,727
$
25,438
$
37,056
-
$
93,222
IMPAIRMENT CHARGES
-
(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 )
(2,948 )
(2,101 )
(384 )
-
(5,433 )
DIRECTOR & OFFICER TRANSITION CHARGES
-
-
-
-
-
(7,784 )
-
-
-
(7,784 )
EBITDA
$
37,224
$ (159,966 )
$
38,953
$
29,809
$
(53,980 )
$
19,995
$
23,337
$
36,672
-
$
80,005
ADJUSTED EBITDA %
INDUSTRIAL SEGMENT
25.8 %
23.2 %
25.8 %
25.8 %
25.2 %
24.3 %
23.0 %
25.4 %
-
24.3 %
ENERGY SEGMENT
16.1 %
12.7 %
16.6 %
15.0 %
15.2 %
10.8 %
4.0 %
5.5 %
-
6.9 %
ENGINEERED SOLUTIONS SEGMENT
8.3 %
7.2 %
7.9 %
5.8 %
7.3 %
6.7 %
7.7 %
10.5 %
-
8.4 %
ADJUSTED EBITDA %
13.6 %
11.4 %
13.9 %
13.8 %
13.2 %
11.6 %
9.8 %
12.5 %
-
11.4 %
ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
(Dollars in thousands, except for per share amounts)
FISCAL 2016
FISCAL 2017
Q1
Q2
Q3
Q4
TOTAL
Q1
Q2
Q3
Q4
TOTAL
ADJUSTED EARNINGS (1)
NET EARNINGS (LOSS)
$ 15,448
$ (159,190 )
$ 21,166
$ 17,402
$ (105,174 )
$
4,965
5,074
22,511
-
$ 32,551
IMPAIRMENT CHARGES
-
186,511
-
-
186,511
-
-
-
-
-
INCOME TAX BENEFIT ON IMPAIRMENT CHARGES
-
(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 )
-
-
-
-
-
DIRECTOR & OFFICER TRANSITION CHARGES
-
-
-
-
-
7,784
-
-
-
7,784
INCOME TAX BENEFIT ON DIRECTOR & OFFICER TRANSITION CHARGES
-
-
-
-
-
(2,880 )
-
-
-
(2,880 )
RESTRUCTURING CHARGES
4,380
3,582
3,496
3,113
14,571
2,948
2,101
384
-
5,433
INCOME TAX BENEFIT ON RESTRUCTURING CHARGES
(1,182 )
(1,185 )
(994 )
(960 )
(4,321 )
(777 )
(564 )
(124 )
-
(1,465 )
INCOME TAX BENEFIT
-
-
-
-
-
-
-
(3,193 )
-
(3,193 )
ADJUSTED EARNINGS
$ 18,646
$
12,263
$ 23,668
$ 17,998
$
72,575
$ 12,040
$
6,611
$ 19,578
$ -
$ 38,230
ADJUSTED DILUTED EARNINGS PER SHARE (1)
NET EARNINGS (LOSS)
$
0.26
$
(2.70 )
$
0.36
$
0.29
$
(1.78 )
$
0.08
$
0.08
$
0.37
-
$
0.54
IMPAIRMENT CHARGES
-
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 )
-
-
-
-
-
DIRECTOR & OFFICER TRANSITION CHARGES
-
-
-
-
-
0.13
-
-
-
0.13
INCOME TAX BENEFIT ON DIRECTOR & OFFICER TRANSITION CHARGES
-
-
-
-
-
(0.05 )
-
-
-
(0.05 )
RESTRUCTURING CHARGES
0.07
0.06
0.06
0.05
0.24
0.05
0.04
0.01
-
0.09
INCOME TAX BENEFIT ON RESTRUCTURING CHARGES
(0.02 )
(0.02 )
(0.02 )
(0.02 )
(0.07 )
(0.01 )
(0.01 )
(0.01 )
-
(0.02 )
INCOME TAX BENEFIT
-
-
-
-
-
-
-
(0.05 )
-
(0.05 )
ADJUSTED DILUTED EARNINGS PER SHARE
$
0.31
$
0.21
$
0.40
$
0.30
$
1.22
$
0.20
$
0.11
$
0.32
$ -
$
0.64
ADJUSTED EBITDA (2)
NET EARNINGS (LOSS) (GAAP MEASURE)
$ 15,448
$ (159,190 )
$ 21,166
$ 17,402
$ (105,174 )
$
4,965
$
5,074
$ 22,511
-
$ 32,551
FINANCING COSTS, NET
7,117
6,866
7,253
7,532
28,768
7,132
7,334
7,553
-
22,019
INCOME TAX EXPENSE (BENEFIT)
2,187
(20,026 )
(827 )
(6,504 )
(25,170 )
(2,998 )
200
(4,029 )
-
(6,827 )
DEPRECIATION & AMORTIZATION
12,472
12,384
11,361
11,379
47,596
10,896
10,729
10,637
-
32,262
EBITDA
$ 37,224
$ (159,966 )
$ 38,953
$ 29,809
$
(53,980 )
$ 19,995
23,337
36,672
-
$ 80,005
IMPAIRMENT CHARGES
-
186,511
-
-
186,511
-
-
-
-
-
LOSS ON SANLO PRODUCT LINE DIVESTITURE
-
-
-
5,092
5,092
-
-
-
-
-
DIRECTOR & OFFICER TRANSITION CHARGES
-
-
-
-
-
7,784
-
-
-
7,784
RESTRUCTURING CHARGES
4,380
3,582
3,496
3,113
14,571
2,948
2,101
384
-
5,433
ADJUSTED EBITDA
$ 41,604
$
30,127
$ 42,449
$ 38,014
$
152,194
$ 30,727
25,438
37,056
-
$ 93,222
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 Operations net of charges or credits for
items to be highlighted for comparability purposes. These measures
should not be considered as an alternative to net earnings (loss) or
diluted earnings (loss) per share 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 and Adjusted EBITDA
calculation, however, are derived from amounts included in the
Condensed Consolidated Statements of Operations. 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)
Q4 FISCAL 2017
FISCAL 2017
LOW
HIGH
LOW
HIGH
RECONCILIATION OF GAAP DILUTED EARNINGS PER SHARE TO ADJUSTED
DILUTED EARNINGS PER SHARE GUIDANCE
GAAP DILUTED EARNINGS PER SHARE
$ 0.15
$ 0.20
$
0.69
$
0.74
DIRECTOR & OFFICER TRANSITION CHARGES
-
-
0.08
0.08
RESTRUCTURING CHARGES
0.03
0.03
0.10
0.10
INCOME TAX BENEFIT
-
-
(0.05 )
(0.05 )
ADJUSTED DILUTED EARNINGS PER SHARE GUIDANCE
$ 0.18
$ 0.23
$
0.82
$
0.87
RECONCILIATION OF GAAP CASH FLOW FROM OPERATIONS TO FREE CASH FLOW
CASH FLOW FROM OPERATIONS
$
85
$
90
CAPITAL EXPENDITURES
(30 )
(30 )
OTHER
10
10
FREE CASH FLOW GUIDANCE
$
65
$
70
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.

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SOURCE: Actuant Corporation

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