ATU
$26.00
Actuant
$.85
3.38%
Earnings Details
2nd Quarter February 2017
Wednesday, March 22, 2017 8:00:02 AM
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Summary

Actuant Misses

Actuant (ATU) reported 2nd Quarter February 2017 earnings of $0.11 per share on revenue of $258.9 million. The consensus earnings estimate was $0.12 per share on revenue of $250.4 million. The Earnings Whisper number was $0.13 per share. Revenue fell 1.7% compared to the same quarter a year ago.

The company said it expects third quarter earnings of $0.38 to $0.43 per share on revenue of $290.0 million to $300.0 million. The current consensus earnings estimate is $0.42 per share on revenue of $298.4 million for the quarter ending May 31, 2017. The company also said it now expects fiscal 2017 earnings of $1.10 to $1.20 per share and continues to expect revenue of $1.075 billion to $1.125 billion. The company's previous guidance was earnings of $1.10 to $1.30 per share and the current consensus earnings estimate is $1.13 per share on revenue of $1.09 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
$0.11
Earnings Whisper
$0.13
Consensus Estimate
$0.12
Reported Revenue
$258.9 Mil
Revenue Estimate
$250.4 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Actuant Reports Second Quarter Results; Updates Fiscal 2017 Guidance

Actuant Corporation (ATU) today announced results for its second quarter ended February 28, 2017.

Highlights

Consolidated sales were 2% below the comparable prior year quarter with acquisitions net of divestitures a 2% benefit and foreign currency rate changes a 1% headwind. Second quarter core sales were down 3% with a return to 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 $0.08 in the second quarter of fiscal 2017 versus $(2.70) in the prior year. Adjusted EPS was $0.11 excluding second quarter fiscal 2017 restructuring charges of $0.03 per share (see Consolidated Results below and the attached reconciliation of earnings).

Maintained fiscal 2017 full year sales guidance of $1.075-1.125 billion and narrowed adjusted EPS guidance to a range of $1.10-1.20 per share (excluding restructuring and transition charges).

Randy Baker, President and CEO of Actuant commented, "We delivered our financial commitments for the second quarter, with generally stable end market conditions and progress across a number of key strategic initiatives. Core sales in both Industrial and Engineered Solutions turned positive for the first time in approximately two years. Energy comparisons and market conditions were difficult in both maintenance and offshore capex related areas. As we pivot the organization more toward growth, we are increasing investments in new products, commercial effectiveness and growth regions, which in the short term limit margin expansion. Adjusted EPS of $0.11, excluding restructuring, was directly in line with our guidance. Normal seasonal cash flow and debt leverage provide us adequate liquidity. In summary, I’m pleased with the progression of our efforts and appreciative of the execution by Actuant employees around the globe."

Consolidated Results

Consolidated sales for the second quarter were $259 million, 2% lower than the $263 million in the prior year. Core sales declined 3% while foreign currency rate changes reduced sales 1% and net acquisitions/divestitures were a 2% sales benefit. Fiscal 2017 second quarter net earnings and EPS were $5.1 million, or $0.08, compared to a net loss of $159.2 million and $2.70, respectively, in the comparable prior year quarter. Fiscal 2017 second quarter earnings included restructuring charges of $2.1 million or $0.03 per share. Second quarter 2016 results included $3.6 million or $0.04 per share of restructuring charges and $186.5 million or $2.86 per share of impairment charges. Excluding these items, adjusted EPS for the second quarter of fiscal 2017 was $0.11 compared to $0.21 in the comparable prior year period (see attached reconciliation of earnings).

Sales for the six months ended February 28, 2017 were $525 million, 8% lower than the $568 million in the prior year. Excluding the 1% negative impact of foreign currency rate changes and 2% benefit of net acquisitions/divestitures, fiscal 2017 year-to-date core sales decreased 9%. Fiscal 2017 year-to-date net earnings and EPS were $10.0 million and $0.17, respectively. The comparable fiscal 2016 year-to-date net loss was $143.7 million or $2.43 per share. Excluding restructuring charges in both years, the 2017 director and officer transition charges, and fiscal 2016’s impairment charge, fiscal 2017 first half adjusted EPS was $0.31 compared to $0.52 in the comparable prior year period (see attached reconciliation of earnings).

Segment Results

Industrial Segment (US $ in millions)

Three Months Ended
Six Months Ended
February 28,
February 29,
February 28,
February 29,
2017
2016
2017
2016
Sales
$91.6
$81.2
$178.9
$170.1
Operating Profit
$18.3
$16.7
$37.1
$37.3
Adjusted Op Profit (1)
$19.0
$17.0
$38.5
$38.3
Adjusted Op Profit % (1)
20.8%
20.9%
21.5%
22.5%

(1) 2017 excludes $0.7 and $1.4 of restructuring charges in the second quarter and first half, respectively. 2016 excludes $0.3 and $1.0 of restructuring charges in the second quarter and first half, respectively

Second quarter fiscal 2017 Industrial segment sales were $92 million or 13% higher than the prior year. The Larzep acquisition added 2% while currency was neutral, resulting in an 11% year-over-year core sales increase. The core sales rate of change improved from -4% in the first quarter of fiscal 2017 and represents the first quarter of core sales growth in seven quarters. This reflects broad based demand improvement, with growth across all geographies and product lines. The construction related concrete tensioning and heavy lifting product sales experienced the highest growth rates. Second quarter adjusted operating profit margin of 20.8% was in line with expectations and consistent with the prior year as incremental volume was offset by unfavorable sales mix and commercial effectiveness investments.

Energy Segment (US $ in millions)

Three Months Ended
Six Months Ended
February 28,
February 29,
February 28,
February 29,
2017
2016
2017
2016
Sales
$72.9
$86.2
$157.5
$200.0
Operating Profit (Loss)
$(0.6)
$(136.8)
$2.6
$(126.6)
Adjusted Op (Loss) Profit (2)
$(0.6)
$5.3
$2.7
$17.5
Adjusted Op (Loss) Profit % (2)
(0.9)%
6.2%
1.7%
8.7%

(2) 2017 excludes $0.1 of restructuring charges in the first half. 2016 excludes $1.3 and $3.3 of restructuring charges in the second quarter and first half, respectively. Also excludes second quarter fiscal 2016 impairment charges of $140.8 million.

Fiscal 2017 second quarter Energy segment sales declined 15% year-over-year to $73 million. Excluding the 2% unfavorable impact of the stronger US dollar, and 8% benefit from last March’s process & pipeline services acquisition, year-over-year core sales declined 21%. Hydratight’s sales decreased due to prior year sizable project work coupled with tight customer spending controls on maintenance activities which resulted in deferrals and scope reductions. The segment continued to experience year-over-year declines in upstream offshore oil & gas related demand, although it remained stable sequentially. For the seasonally weak second quarter, Energy incurred an adjusted operating loss due primarily to the lower volumes and unfavorable sales mix.

Engineered Solutions Segment (US $ in millions)

Three Months Ended
Six Months Ended
February 28,
February 29,
February 28,
February 29,
2017
2016
2017
2016
Sales
$94.3
$95.9
$188.2
$198.3
Operating Profit (Loss)
$1.8
$(45.1)
$2.6
$(41.6)
Adjusted Op Profit (3)
$3.3
$2.6
$6.1
$7.5
Adjusted Op Profit % (3)
3.5%
2.7%
3.2%
3.8%

(3) 2017 excludes $1.5 and $3.5 of restructuring charges in the second quarter and first half, respectively. 2016 excludes $2.0 and $3.4 of restructuring charges in the second quarter and first half, respectively. Also excludes second quarter 2016 impairment charges of $45.7 million.

Second quarter fiscal 2017 Engineered Solutions segment sales were $94 million or 2% below the prior year. Excluding the 3% Sanlo divestiture impact, and 1% unfavorable currency headwind, year-over-year core sales increased 2%. The core sales rate of change improved sequentially from -5% in the previous quarter and represents the first quarter of growth in the past nine. Fiscal 2017 sales reflect robust production rates by China’s heavy-duty truck OEMs. While tepid end market demand continued across most of the segment’s other markets such as agriculture and off-highway equipment, our sales benefited from easier comparisons and moderating destocking activity by OEM customers. Second quarter adjusted operating profit margin improved year-over-year due to higher volumes and the benefit of cost saving actions.

Corporate and Income Taxes

Corporate expenses for the second quarter of fiscal 2017 were $6.4 million, or $0.5 million lower than the comparable prior year period. Excluding the tax benefit on restructuring, the approximate 10% second quarter effective income tax rate compared to -13% for the comparable prior year period (excluding the tax impact on restructuring and impairment charges) that included certain tax planning items.

Outlook

Baker continued, "Our results for the first half of fiscal 2017 have met expectations and give us confidence that we are on track for the year. We have begun to see encouraging indicators within the broad industrial landscape, although the sustainability and trajectory of improvement are yet to be determined. Our sales effectiveness, restructuring and lean revitalization actions are proceeding according to plan.

As such, for the full year we are maintaining our sales guidance in the $1.075-1.125 billion range with core sales anticipated to be down 2 to 5%. We are narrowing our adjusted EPS guidance from $1.10-1.30 to $1.10-1.20 as unfavorable sales mix and investments in growth are expected to limit further upside to margins in the near term. Free cash flow is projected to be in the $85-95 million range in fiscal 2017.

We expect third quarter sales to be in the $290-300 million range, with adjusted EPS of $0.38-0.43.

All guidance excludes restructuring and transition costs, as well as the impact of potential future acquisitions and share repurchases.

In summary, I continue to believe Actuant has strong growth potential as our end markets improve, we gain momentum in our commercial strategies, and we execute disciplined, tuck-in acquisitions. These, combined with our LEAD reinvigoration initiatives, provide us with many levers to create long-term shareholder value."

Conference Call Information

An investor conference call is scheduled for 10am CT today, March 22, 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)
February 28,
August 31,
2017
2016
ASSETS
Current assets
Cash and cash equivalents
$
171,890
$
179,604
Accounts receivable, net
201,914
186,829
Inventories, net
127,573
130,756
Other current assets
53,984
45,463
Total current assets
555,361
542,652
Property, plant and equipment, net
115,192
114,015
Goodwill
509,078
519,276
Other intangible assets, net
225,559
239,475
Other long-term assets
21,844
23,242
Total assets
$ 1,427,034
$ 1,438,660
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Trade accounts payable
$
124,949
$
115,051
Accrued compensation and benefits
42,363
46,901
Current maturities of debt and short-term borrowings
26,250
18,750
Income taxes payable
1,113
9,254
Other current liabilities
49,229
51,956
Total current liabilities
243,904
241,912
Long-term debt, net
547,058
561,681
Deferred income taxes
31,037
31,356
Pension and postretirement benefit liabilities
24,142
25,667
Other long-term liabilities
55,884
57,094
Total liabilities
902,025
917,710
Shareholders’ equity
Capital stock
16,013
15,879
Additional paid-in capital
131,877
114,980
Treasury stock
(617,731 )
(617,731 )
Retained earnings
1,269,684
1,259,645
Accumulated other comprehensive loss
(274,834 )
(251,823 )
Stock held in trust
(2,354 )
(2,646 )
Deferred compensation liability
2,354
2,646
Total shareholders’ equity
525,009
520,950
Total liabilities and shareholders’ equity
$ 1,427,034
$ 1,438,660
Actuant Corporation
Condensed Consolidated Statements of Operations
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended
Six Months Ended
February 28,
February 29,
February 28,
February 29,
2017
2016
2017
2016
Net sales
$ 258,869
$
263,289
$ 524,662
$
568,300
Cost of products sold
171,543
172,259
344,269
368,709
Gross profit
87,326
91,030
180,393
199,591
Selling, administrative and engineering expenses
66,957
67,172
135,561
140,083
Amortization of intangible assets
5,069
5,880
10,330
11,779
Director & officer transition charges
-
-
7,784
-
Restructuring charges
2,101
3,582
5,048
7,962
Impairment charges
-
186,511
-
186,511
Operating profit (loss)
13,199
(172,115 )
21,670
(146,744 )
Financing costs, net
7,334
6,866
14,467
13,982
Other expense (income), net
591
235
(38 )
855
Earnings before income tax expense (benefit)
5,274
(179,216 )
7,241
(161,581 )
Income tax expense (benefit)
200
(20,026 )
(2,798 )
(17,839 )
Net earnings (loss)
$
5,074
$ (159,190 )
$
10,039
$ (143,742 )
Earnings (loss) per share
Basic
$
0.09
$
(2.70 )
$
0.17
$
(2.43 )
Diluted
0.08
(2.70 )
0.17
(2.43 )
Weighted average common shares outstanding
Basic
59,368
58,991
59,170
59,089
Diluted
60,146
58,991
59,881
59,089
Actuant Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended
Six Months Ended
February 28,
February 29,
February 28,
February 29,
2017
2016
2017
2016
Operating Activities
Net earnings (loss)
$
5,074
$ (159,190 )
$
10,039
$ (143,742 )
Adjustments to reconcile net earnings to net cash provided by
operating activities:
Impairment charges net of deferred tax benefits
-
169,056
-
169,056
Depreciation and amortization
10,729
12,386
21,625
24,858
Stock-based compensation expense
2,623
2,817
12,177
5,778
Provision for deferred income taxes
3,416
264
551
420
Amortization of debt issuance costs
413
413
826
826
Other non-cash adjustments
251
311
715
(619 )
Changes in components of working capital and other:
Accounts receivable
(12,645 )
15,834
(20,897 )
8,437
Inventories
7,748
(2,548 )
(394 )
(5,399 )
Trade accounts payable
5,508
(12,661 )
12,276
(4,926 )
Prepaid expenses and other assets
(5,334 )
807
(10,819 )
(8,404 )
Income tax accounts
(5,243 )
(13,143 )
(7,567 )
(17,437 )
Accrued compensation and benefits
(947 )
(2,646 )
(3,704 )
(2,281 )
Other accrued liabilities
(9,645 )
(4,143 )
(795 )
2,296
Cash provided by operating activities
1,948
7,557
14,033
28,863
Investing Activities
Capital expenditures
(9,556 )
(5,475 )
(14,695 )
(11,004 )
Proceeds from sale of property, plant and equipment
114
3,199
244
4,636
Business acquisitions, net of cash acquired
-
(14,496 )
-
(15,026 )
Cash used in investing activities
(9,442 )
(16,772 )
(14,451 )
(21,394 )
Financing Activities
Net borrowings (repayments) on revolving credit facility
-
8
-
(210 )
Principal repayments on term loan
(3,750 )
-
(7,500 )
-
Purchase of treasury shares
-
(4,670 )
-
(9,352 )
Taxes paid related to the net share settlement of equity awards
(697 )
(395 )
(920 )
(1,332 )
Stock option exercises, related tax benefits and other
5,256
1,155
6,598
2,245
Cash dividend
-
-
(2,358 )
(2,376 )
Cash provided by (used in) financing activities
809
(3,902 )
(4,180 )
(11,025 )
Effect of exchange rate changes on cash
1,704
(4,157 )
(3,116 )
(10,619 )
Net decrease in cash and cash equivalents
(4,981 )
(17,274 )
(7,714 )
(14,175 )
Cash and cash equivalents - beginning of period
176,871
171,945
179,604
168,846
Cash and cash equivalents - end of period
$ 171,890
$
154,671
$ 171,890
$
154,671
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
-
-
$ 178,938
ENERGY SEGMENT
113,763
86,224
101,300
91,443
392,730
84,646
72,884
-
-
157,530
ENGINEERED SOLUTIONS SEGMENT
102,378
95,876
108,291
90,318
396,863
93,857
94,337
-
-
188,194
TOTAL
$ 305,011
$
263,289
$ 305,341
$ 275,769
$ 1,149,410
$ 265,793
$ 258,869
-
-
$ 524,662
% SALES GROWTH
INDUSTRIAL SEGMENT
-13 %
-16 %
-8 %
-6 %
-11 %
-2 %
13 %
-
-
5 %
ENERGY SEGMENT
2 %
-14 %
2 %
-9 %
-5 %
-26 %
-15 %
-
-
-21 %
ENGINEERED SOLUTIONS SEGMENT
-10 %
-8 %
-8 %
-9 %
-9 %
-8 %
-2 %
-
-
-5 %
TOTAL
-7 %
-13 %
-5 %
-8 %
-8 %
-13 %
-2 %
-
-
-8 %
OPERATING PROFIT (LOSS)
INDUSTRIAL SEGMENT
$
21,263
$
17,003
$
22,519
$
22,144
$
82,929
$
19,491
$
19,037
-
-
$
38,528
ENERGY SEGMENT
12,124
5,348
12,438
8,941
38,851
3,328
(647 )
-
-
2,681
ENGINEERED SOLUTIONS SEGMENT
4,937
2,555
4,768
927
13,187
2,834
3,282
-
-
6,116
CORPORATE / GENERAL
(8,573 )
(6,928 )
(7,886 )
(5,623 )
(29,010 )
(6,450 )
(6,372 )
-
-
(12,822 )
ADJUSTED OPERATING PROFIT
$
29,751
$
17,978
$
31,839
$
26,389
$
105,957
$
19,203
$
15,300
-
-
$
34,503
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 )
-
-
(5,049 )
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
-
-
$
21,670
ADJUSTED OPERATING PROFIT %
INDUSTRIAL SEGMENT
23.9 %
20.9 %
23.5 %
23.6 %
23.0 %
22.3 %
20.8 %
-
-
21.5 %
ENERGY SEGMENT
10.7 %
6.2 %
12.3 %
9.8 %
9.9 %
3.9 %
-0.9 %
-
-
1.7 %
ENGINEERED SOLUTIONS SEGMENT
4.8 %
2.7 %
4.4 %
1.0 %
3.3 %
3.0 %
3.5 %
-
-
3.2 %
ADJUSTED OPERATING PROFIT %
9.8 %
6.8 %
10.4 %
9.6 %
9.2 %
7.2 %
5.9 %
-
-
6.6 %
EBITDA
INDUSTRIAL SEGMENT
$
22,959
$
18,829
$
24,686
$
24,209
$
90,683
$
21,217
$
21,064
-
-
$
42,281
ENERGY SEGMENT
18,348
10,968
16,819
13,717
59,852
9,108
2,943
-
-
12,051
ENGINEERED SOLUTIONS SEGMENT
8,498
6,882
8,504
5,270
29,154
6,281
7,277
-
-
13,558
CORPORATE / GENERAL
(8,201 )
(6,552 )
(7,560 )
(5,182 )
(27,495 )
(5,879 )
(5,846 )
-
-
(11,725 )
ADJUSTED EBITDA
$
41,604
$
30,127
$
42,449
$
38,014
$
152,194
$
30,727
$
25,438
-
-
$
56,165
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 )
-
-
(5,049 )
DIRECTOR & OFFICER TRANSITION CHARGES
-
-
-
-
-
(7,784 )
-
-
-
(7,784 )
EBITDA
$
37,224
$ (159,966 )
$
38,953
$
29,809
$
(53,980 )
$
19,995
$
23,337
-
-
$
43,332
ADJUSTED EBITDA %
INDUSTRIAL SEGMENT
25.8 %
23.2 %
25.8 %
25.8 %
25.2 %
24.3 %
23.0 %
-
-
23.6 %
ENERGY SEGMENT
16.1 %
12.7 %
16.6 %
15.0 %
15.2 %
10.8 %
4.0 %
-
-
7.6 %
ENGINEERED SOLUTIONS SEGMENT
8.3 %
7.2 %
7.9 %
5.8 %
7.3 %
6.7 %
7.7 %
-
-
7.2 %
ADJUSTED EBITDA %
13.6 %
11.4 %
13.9 %
13.8 %
13.2 %
11.6 %
9.8 %
-
-
10.7 %
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
-
-
$ 10,039
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
-
-
5,049
INCOME TAX BENEFIT ON RESTRUCTURING CHARGES
(1,182 )
(1,185 )
(994 )
(960 )
(4,321 )
(777 )
(564 )
-
-
(1,341 )
ADJUSTED EARNINGS
$ 18,646
$
12,263
$ 23,668
$ 17,998
$
72,575
$ 12,040
6,611
-
-
$ 18,651
ADJUSTED DILUTED EARNINGS PER SHARE (1)
NET EARNINGS (LOSS)
$
0.26
$
(2.70 )
$
0.36
$
0.29
$
(1.78 )
$
0.08
$
0.08
-
-
$
0.17
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
-
-
0.08
INCOME TAX BENEFIT ON RESTRUCTURING CHARGES
(0.02 )
(0.02 )
(0.02 )
(0.02 )
(0.07 )
(0.01 )
(0.01 )
-
-
(0.02 )
ADJUSTED DILUTED EARNINGS PER SHARE
$
0.31
$
0.21
$
0.40
$
0.30
$
1.22
$
0.20
$
0.11
-
-
$
0.31
ADJUSTED EBITDA (2)
NET EARNINGS (LOSS) (GAAP MEASURE)
$ 15,448
$ (159,190 )
$ 21,166
$ 17,402
$ (105,174 )
$
4,965
$
5,074
-
-
$ 10,039
FINANCING COSTS, NET
7,117
6,866
7,253
7,532
28,768
7,132
7,334
-
-
14,466
INCOME TAX EXPENSE (BENEFIT)
2,187
(20,026 )
(827 )
(6,504 )
(25,170 )
(2,998 )
200
-
-
(2,798 )
DEPRECIATION & AMORTIZATION
12,472
12,384
11,361
11,379
47,596
10,896
10,729
-
-
21,625
EBITDA
$ 37,224
$ (159,966 )
$ 38,953
$ 29,809
$
(53,980 )
$ 19,995
23,337
-
-
$ 43,332
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
-
-
5,049
ADJUSTED EBITDA
$ 41,604
$
30,127
$ 42,449
$ 38,014
$
152,194
$ 30,727
25,438
-
-
$ 56,165
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)
Q3 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
$ 0.36
$ 0.41
$ 0.93
$
1.03
DIRECTOR & OFFICER TRANSITION CHARGES
-
-
0.08
0.08
RESTRUCTURING CHARGES
0.02
0.02
0.09
0.09
ADJUSTED DILUTED EARNINGS PER SHARE GUIDANCE
$ 0.38
$ 0.43
$ 1.10
$
1.20
RECONCILIATION OF GAAP CASH FLOW FROM OPERATIONS TO FREE CASH FLOW
CASH FLOW FROM OPERATIONS
$
110
$
110
CAPITAL EXPENDITURES
(30 )
(25 )
OTHER
5
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.

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SOURCE: Actuant Corporation

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