Actuant 2nd Quarter Earnings and EPS Increase 30% and 19%, Respectively.Business Editors MILWAUKEE--(BUSINESS WIRE)--March 20, 2002 Actuant Corporation (NYSE NYSE See: New York Stock Exchange :ATU (ADSL Transceiver Unit) A device that provides ADSL modulation of the telephone line. The device at the telco side is the ATU-C (Central), which is a line card plugged into the DSLAM. ) announced today results for its second quarter ended February February: see month. 28, 2002. Second quarter sales totaled $108.4 million compared to prior year sales of $115.5 million. Prior year sales include results from businesses that were sold during the last year, including Mox-Med and Enerpac's Toolholding units (collectively the "non-continuing businesses"). Excluding the non-continuing businesses, fiscal 2002 second quarter results were 1% lower than prior year. (See the attached supplemental unaudited segment data schedule for a reconciliation of financial results from non-continuing businesses to total reported results.) Excluding the effect of foreign currency rate changes and the non-continuing businesses, second quarter sales increased 1% from the comparable period in the prior year primarily due to the March 1, 2001 acquisition of Dewald. Second quarter fiscal 2002 net income and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of ("EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ") were $4.0 million and $0.44 per share, respectively, compared to $3.1 million and $0.37 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, respectively, in the prior year. As previously announced, the Company issued 3.45 million new shares of common stock on February 13, 2002. While the proceeds from this equity offering were received in mid-February n. 1. the middle part of February. Noun 1. mid-February - the middle part of February period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue , a portion of the actual debt reduction took place in mid-March n. 1. the middle part of March. Noun 1. mid-March - the middle part of March period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue period" , resulting in incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. EPS dilution Dilution A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities. Notes: Adding to the number of shares outstanding reduces the value of holdings of existing shareholders. during the quarter. The Company previously announced that its third quarter earnings will be negatively impacted by an approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. $8 million net extraordinary charge, or $0.65 per share, attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the early extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of $70 million of its 13% Senior Subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. Notes. Sales for the six-months ended February 28, 2002 were $221.6 million, compared to $235.3 million in the comparable prior year period. Excluding the non-continuing businesses, six-month sales declined 1% from $224.4 million to $221.6 million. Net earnings before the cumulative effect of change in accounting principle for the six months ended February 28, 2002 were $8.6 million, or $0.97 per diluted share, compared to $7.4 million, or $0.89 per diluted share for the comparable prior year period. As previously disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). , the Company adopted Statement of Financial Accounting Standards No. 142, "Goodwill and Other Intangible Assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. " at the beginning of fiscal 2002, which resulted in a net cumulative effect of accounting change charge of $7.2 million, or $0.85 per diluted share in the first quarter. Commenting on the results, Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. C. Arzbaecher, President and Chief Executive Officer of Actuant stated, "In the second quarter, the Company delivered sales of $108.4 million and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Arzbaecher continued, "Other than the recent surge See power surge. SURGE - Sorter, Updater, Report Generator, Etc. IBM 704, 1959. Sammet 1969, p.8. in demand for recreational vehicles (RVs), all of our North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. businesses had year-over-year sales declines due to weak economic conditions. While market conditions were not good, they did improve as the quarter progressed. "The positive market development during the quarter took place in RV, where we experienced more than a 35% increase in core sales. In total, RV sales this quarter more than doubled as a result of market growth and the acquisition of Dewald on March 1, 2001. Our challenge has been to ramp up Ramp Up To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale our supply chain and operations to meet the surge in orders." Fiscal 2002 second quarter sales in the Tools & Supplies segment, excluding non-continuing businesses, were $62.3 million, down approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 10% from last year's $69.6 million due to weaker economic conditions, particularly in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . Excluding foreign currency rate changes, Tools & Supplies sales declined 9%. Current year second quarter sales in the Engineered Solutions segment, excluding non-continuing businesses, were $46.1 million, compared to $40.3 million in the previous year. Excluding the effect of foreign currency rate changes and non-continuing businesses, Engineered Solutions sales increased 18%, primarily resulting from the acquisition of Dewald and increased demand from recreational vehicle OEMs. Excluding the non-continuing businesses, Actuant's second quarter EBITDA was $19.2 million, or 17.7% of sales, compared to $19.7 million, or 17.9% of sales, last year. Fiscal 2002 second quarter EBITDA included an approximate $0.6 million gain attributable to the final insurance settlement on last year's fire at its Netherlands Netherlands (nĕth`ərləndz), Du. Nederland or Koninkrijk der Nederlanden, officially Kingdom of the Netherlands, constitutional monarchy (2005 est. pop. 16,407,000), 15,963 sq mi (41,344 sq km), NW Europe. facility located in Oldenzaal  is a municipality and a town in the eastern Netherlands, near the border with Germany.It received city rights in 1249. . EBITDA margins improved in the Tools & Supplies segment due to reduced headcount head count or head·count n. 1. The act of counting people in a particular group. 2. The number of people counted in this way. Noun 1. and other cost reductions. Engineered Solutions EBITDA margins declined due to increased engineering and new customer development costs, sales mix sales mix See product mix. and other manufacturing inefficiencies associated with the sudden increase in RV orders. Actuant's February 28, 2002 gross debt was approximately $251 million, down approximately $79 million from the beginning of the second quarter, and reflected application of a portion of the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from the equity offering and quarterly cash flow against outstanding debt. The company's quarter-end cash balance included approximately $24 million of proceeds from the offering. The Company pre-paid approximately $40 million of Term Loan B late in the quarter, and, due to the equity offering, unwound un·wound v. Past tense and past participle of unwind. unwound unwind a portion of a floating-to-fixed interest rate swap Interest Rate Swap A deal between banks or companies where borrowers switch floating-rate loans for fixed rate loans in another country. These can be either the same or different currencies. agreement at a non-recurring cost of approximately $0.2 million, or $0.01 per share. Following the March 15, 2002 redemption The liberation of an estate in real property from a mortgage. Redemption is the process by which land that has been mortgaged or pledged is bought back or reclaimed. It is accomplished through a payment of the debt owed or a fulfillment of the other conditions. of $70 million of its 13% Senior Subordinated Notes, the Company's debt consisted of approximately $40 million of Term Loan B, $60 million of revolver revolver: see small arms. revolver Pistol with a revolving cylinder that provides multishot action. Some early versions, known as pepperboxes, had several barrels, but as early as the 17th century pistols were being made with a revolving chamber to borrowings, $13 million of Euro-denominated term loans, and $130 million of 13% Senior Subordinated Notes (excluding the non-amortized initial issuance discount). Commenting on the outlook for the balance of Actuant's fiscal year, Arzbaecher said "We continue to feel comfortable with analyst expectations and our previous guidance in terms of fiscal 2002. The Company's guidance is as follows: sales of $450-465 million, EBITDA of $85-88 million and EPS, adjusted for the effect of the equity offering, of $2.35-$2.45 per diluted share." Actuant, headquartered in Milwaukee, Wisconsin For other places with the same name, see Milwaukee (disambiguation). Milwaukee is the largest city within the state of Wisconsin and 25th largest (by population) in the United States. , is a diversified diversified (di·verˑ·s industrial company with operations in more than 15 countries. The Actuant businesses are leading companies in highly engineered position and motion control systems and branded tools. Products are offered under such established brand names as Enerpac, Gardner Bender Gardner Bender is a manufacturer of professional electrician's tools and supplies. External links
Carl August Nielsen, Carl Nielsen Sessions, Power-Packer, and Power Gear. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement Certain of the above comments represent forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. made pursuant to the provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Management cautions that these projections 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 for customers, the impact on the economy of the September September: see month. 11, 2001 terrorist attacks, the length of the current recession in the Company's markets, continued market acceptance of the Company's new product introductions, operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: 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 registration statements filed with the Securities and Exchange Commission for further information regarding risk factors. For further information on Actuant and its business units, visit the company's website at www.actuant.com.
Actuant Corporation
Comparative Balance Sheet
(Dollars in thousands)
February 28, August 31,
2002 2001
--------------- ---------------
ASSETS
Current Assets
Cash and cash equivalents $ 50,385 $ 26,554
Accounts receivable, net 55,209 54,971
Inventories, net 54,791 56,738
Deferred income taxes 9,432 5,833
Other current assets 4,928 5,074
--------------- ---------------
Total Current Assets 174,745 149,170
Property, plant and equipment, net 37,911 39,482
Goodwill, net 101,280 108,124
Other intangible assets, net 19,699 20,916
Other long-term assets 23,640 25,024
--------------- ---------------
Total Assets $ 357,275 $ 342,716
=============== ===============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Short-term borrowings $ 44 $ 1,568
Trade accounts payable 39,397 39,798
Accrued compensation and benefits 10,940 10,655
Income taxes payable 47,566 50,034
Other current liabilities 26,022 32,134
--------------- ---------------
Total Current Liabilities 123,969 134,189
Long-term debt 251,106 325,752
Deferred income taxes 4,083 3,907
Other long-term liabilities 18,584 18,622
Shareholders' Equity
Capital stock 2,317 1,603
Additional paid-in capital (524,474) (623,867)
Accumulated other comprehensive
income (loss) (21,446) (19,227)
Retained earnings 503,136 501,737
--------------- ---------------
Total Shareholders' Deficit (40,467) (139,754)
--------------- ---------------
Total Liabilities and
Shareholders' Equity $ 357,275 $ 342,716
=============== ===============
Actuant Corporation
Comparative Statement of Earnings
(In thousands except per share amounts)
Three Months Ended Six Months Ended
February 28, February 28,
---------------------- -----------------------
2002 2001 2002 2001
---------------------- -----------------------
Net Sales (1) $ 108,434 $ 115,521 $ 221,574 $ 235,317
Cost of Products
Sold (1) 71,744 74,545 146,851 152,511
---------------------- -----------------------
Gross Profit 36,690 40,976 74,723 82,806
Engineering, Selling
and Administrative
Expense 21,059 21,698 40,986 43,268
Amortization of
Intangible Assets 620 1,369 1,232 2,868
---------------------- -----------------------
Operating Profit 15,011 17,909 32,505 36,670
Other Expense(Income)
Net Financing Costs 9,808 12,529 19,697 25,500
Other - net (1,101) 165 (741) (1,297)
---------------------- -----------------------
Earnings Before
Income Taxes 6,304 5,215 13,549 12,467
Income Tax Expense 2,270 2,116 4,950 5,084
---------------------- -----------------------
Net Earnings Before
Cumulative Effect
of Change In
Accounting Principle 4,034 3,099 8,599 7,383
Cumulative Effect of
Change In Accounting
Principle - - (7,200) -
---------------------- -----------------------
Net Earnings $ 4,034 $ 3,099 $ 1,399 $ 7,383
====================== =======================
Basic Earnings
per Share
Continuing Operations $ 0.46 $ 0.39 $ 1.03 $ 0.93
Cumulative Effect of
Accounting Change $ - $ - $ (0.86) $ -
---------------------- -----------------------
Total $ 0.46 $ 0.39 $ 0.17 $ 0.93
====================== =======================
Diluted Earnings per
Share
Continuing Operations $ 0.44 $ 0.37 $ 0.97 $ 0.89
Cumulative Effect of
Accounting Change $ - $ - $ (0.81) $ -
---------------------- -----------------------
Total $ 0.44 $ 0.37 $ 0.16 $ 0.89
====================== =======================
Weighted Average Common
Shares Outstanding
Basic 8,723 7,934 8,370 7,931
Diluted 9,268 8,289 8,857 8,322
(1)Net sales and cost of goods sold for fiscal 2001 have been
restated to properly reflect shipping and handling income and
costs in accordance with Emerging Issues Task Force Abstract
No. 00-10.
ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED SEGMENT DATA
FISCAL 2001
-------------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
-------------------------------------------------
SALES (3)
TOOLS & SUPPLIES
SEGMENT $ 70,930 $ 69,565 $ 69,272 $ 68,118 $ 277,885
ENGINEERED
SOLUTIONS SEGMENT 43,610 40,322 50,954 48,204 183,090
-------------------------------------------------
TOTAL CONTINUING
BUSINESSES 114,540 109,887 120,226 116,322 460,975
NON-CONTINUING
BUSINESSES 5,256 5,634 5,882 4,192 20,964
-------------------------------------------------
TOTAL REPORTED
SALES $ 119,796 $ 115,521 $ 126,108 $ 120,514 $ 481,939
=================================================
% SALES GROWTH
TOOLS & SUPPLIES
SEGMENT
ENGINEERED SOLUTIONS SEGMENT
TOTAL CONTINUING BUSINESSES
NON-CONTINUING BUSINESSES
TOTAL REPORTED SALES
OPERATING PROFIT
TOOLS & SUPPLIES
SEGMENT $ 11,800 $ 11,900 $ 10,475 $ 12,438 $ 46,613
ENGINEERED SOLUTIONS
SEGMENT 7,220 5,767 7,595 7,373 27,955
CORPORATE / GENERAL (1,148) (1,341) (1,415) (2,320) (6,224)
-------------------------------------------------
TOTAL CONTINUING
BUSINESSES 17,872 16,326 16,655 17,491 68,344
NON-CONTINUING
BUSINESSES 889 1,583 1,421 1,451 5,344
OTHER ITEMS (1) - - (1,740) - (1,740)
-------------------------------------------------
TOTAL REPORTED
RESULTS $ 18,761 $ 17,909 $ 16,336 $ 18,942 $ 71,948
=================================================
OPERATING PROFIT %
TOOLS & SUPPLIES
SEGMENT 16.6% 17.1% 15.1% 18.3% 16.8%
ENGINEERED SOLUTIONS
SEGMENT 16.6% 14.3% 14.9% 15.3% 15.3%
TOTAL CONTINUING
(INCL. CORPORATE) 15.6% 14.9% 13.9% 15.0% 14.8%
EBITDA (4)
TOOLS & SUPPLIES
SEGMENT $ 14,187 $ 13,790 $ 13,910 $ 14,081 $ 55,968
ENGINEERED SOLUTIONS
SEGMENT (5) 8,498 6,353 9,910 8,662 33,423
CORPORATE / GENERAL 493 (434) (1,319) (1,466) (2,726)
-------------------------------------------------
TOTAL CONTINUING
BUSINESSES 23,178 19,709 22,501 21,277 86,665
NON-CONTINUING
BUSINESSES 1,237 1,893 1,789 1,746 6,665
OTHER ITEMS (2) - - (4,812) 18,017 13,205
-------------------------------------------------
TOTAL $ 24,415 $ 21,602 $ 19,478 $ 41,040 $ 106,535
=================================================
EBITDA %
TOOLS & SUPPLIES
SEGMENT 20.0% 19.8% 20.1% 20.7% 20.1%
ENGINEERED SOLUTIONS
SEGMENT 19.5% 15.8% 19.4% 18.0% 18.3%
TOTAL CONTINUING
(INCL. CORPORATE) 20.2% 17.9% 18.7% 18.3% 18.8%
ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED SEGMENT DATA
FISCAL 2002
-------------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
-------------------------------------------------
SALES (3)
TOOLS & SUPPLIES
SEGMENT $ 64,067 $ 62,338 $ 126,405
ENGINEERED
SOLUTIONS SEGMENT 49,073 46,096 95,169
-------------------------------------------------
TOTAL CONTINUING
BUSINESSES 113,140 108,434 - - 221,574
NON-CONTINUING
BUSINESSES - - 0
-------------------------------------------------
TOTAL REPORTED
SALES $ 113,140 $ 108,434 $ - $ - $ 221,574
=================================================
% SALES GROWTH
TOOLS & SUPPLIES
SEGMENT -9.7% -10.4% -10.0%
ENGINEERED SOLUTIONS
SEGMENT 12.5% 14.3% 13.4%
TOTAL CONTINUING
BUSINESSES -1.2% -1.3% -1.3%
NON-CONTINUING
BUSINESSES -100.0% -100.0% -100.0%
TOTAL REPORTED SALES -5.6% -6.1% -5.8%
OPERATING PROFIT
TOOLS & SUPPLIES
SEGMENT $ 11,565 $ 11,030 $ 22,595
ENGINEERED SOLUTIONS
SEGMENT 7,036 4,984 12,020
CORPORATE / GENERAL (1,107) (1,003) (2,110)
-------------------------------------------------
TOTAL CONTINUING
BUSINESSES 17,494 15,011 - - 32,505
NON-CONTINUING
BUSINESSES - - 0
OTHER ITEMS (1) - - 0
-------------------------------------------------
TOTAL REPORTED
RESULTS $ 17,494 $ 15,011 $ - $ - $ 32,505
=================================================
OPERATING PROFIT %
TOOLS & SUPPLIES
SEGMENT 18.1% 17.7% 17.9%
ENGINEERED SOLUTIONS
SEGMENT 14.3% 10.8% 12.6%
TOTAL CONTINUING
(INCL. CORPORATE) 15.5% 13.8% 14.7%
EBITDA (4)
TOOLS & SUPPLIES
SEGMENT $ 13,271 $ 13,213 $ 26,484
ENGINEERED SOLUTIONS
SEGMENT (5) 8,014 6,776 14,790
CORPORATE / GENERAL (1,143) (798) (1,941)
-------------------------------------------------
TOTAL CONTINUING
BUSINESSES 20,142 19,191 - - 39,333
NON-CONTINUING
BUSINESSES - - 0
OTHER ITEMS (2) - - 0
-------------------------------------------------
TOTAL $ 20,142 $ 19,191 $ - $ - $ 39,333
=================================================
EBITDA %
TOOLS & SUPPLIES
SEGMENT 20.7% 21.2% 21.0%
ENGINEERED SOLUTIONS
SEGMENT 16.3% 14.7% 15.5%
TOTAL CONTINUING
(INCL. CORPORATE) 17.8% 17.7% 17.8%
(1) In fiscal 2001, other operating profit is comprised of a
restructuring charge.
(2) In fiscal 2001, other EBITDA is comprised of losses on product
line dispositions, a restructuring charge, and gain on sale of
business.
(3) Sales in fiscal year 2001 have been restated to properly
reflect shipping and handling income in accordance with
Emerging Issues Task Force Abstract No. 00-10.
(4) Quarter 1 of FY 2002 excludes cumulative effect of change in
accounting principle ($7.2 million).
(5) Third quarter fiscal 2001 and second quarter 2002 EBITDA
includes a gain on insurance recoveries in excess of cost on a
replacement value policy of $1.0 and $0.6 million,
respectively.
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