Actuant Raises 2004 Guidance, Reports Record Quarterly Earnings Prior to Refinancing Charge.MILWAUKEE Milwaukee (mĭlwŏk`ē), city (1990 pop. 628,088), seat of Milwaukee co., SE Wis., at the point where the Milwaukee, Menominee, and Kinnickinnic rivers enter Lake Michigan; inc. 1846. -- 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. ) today announced results for its third quarter ended May 31, 2004. Third quarter sales increased approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 33% to $196.5 million from $147.2 million in the comparable prior year period. Current year results include those from Kwikee Products Company Inc. ("Kwikee") and Dresco B.V. ("Dresco"), which were acquired on September September: see month. 3, 2003 and December December: see month. 30, 2003, respectively. Excluding the impact of acquisitions and foreign currency exchange rate changes, third quarter sales increased approximately 17%. Third quarter fiscal 2004 net earnings 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 ("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. 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 $7.5 million and $0.30, respectively. These results include the previously announced $9.9 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta charge ($6.8 million net of tax, or $0.28 per share) attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of 13% Notes during the quarter. Excluding this refinancing Refinancing An extension and/or increase in amount of existing debt. charge, third quarter fiscal 2004 net earnings and diluted EPS were $14.3 million and $0.58, respectively. This compares favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. to prior year third quarter net earnings and diluted EPS of $10.0 million and $0.41, respectively. Fiscal 2003 third quarter results included a $0.8 million pre-tax gain ($0.02 per diluted share) for the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. settlement of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. matters for amounts less than previously accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. . Excluding the refinancing charge in the current year and the litigation-related gain in the prior year, third quarter diluted EPS grew 49% from $0.39 to $0.58 (see attached reconciliation of earnings). A[paragraph]Sales for the nine months ended May 31, 2004 were $539.1 million, approximately 23% higher than the $437.1 million in the comparable prior year period. Excluding the impact of acquisitions and foreign currency rate changes, sales for the nine-month period increased 8%. Net earnings for the nine months ended May 31, 2004 were $16.5 million, or $0.67 per diluted share, compared to $18.9 million, or $0.78 per diluted share for the comparable prior year period. The Company recorded net of tax special charges of $1.3 million, or $0.05 per diluted share, in the first nine months of fiscal 2003 related 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 debt and $4.2 million, or $0.17 per diluted share, related to litigation matters associated with divested businesses. The Company recorded net of tax special charges of $9.8 million or $0.40 per diluted share, in the first quarter of fiscal 2004, $1.5 million, or $0.06 per diluted share, in the second quarter and $6.8 million or $0.28 per diluted share in the third quarter, for the early extinguishment of debt. Excluding all of these special charges, net earnings and diluted EPS for the first nine months of fiscal 2004 were $34.6 million and $1.40, compared to $24.4 million and $1.00, respectively, in the comparable prior year period (see attached reconciliation of earnings). A[paragraph]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 CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , stated, "Actuant's third quarter results exceeded our expectations in terms of sales Terms of sale Conditions under which a firm proposes to sell its goods or services for cash or credit. , earnings and cash flow. Core sales grew 17% over the prior year due to the continued improvement in the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. economy and the 75% core sales increase in convertible top actuation ac·tu·ate tr.v. ac·tu·at·ed, ac·tu·at·ing, ac·tu·ates 1. To put into motion or action; activate: electrical relays that actuate the elevator's movements. 2. systems which reflected increased production of newly introduced convertible automobiles No invention has so transformed the landscape of the United States as the automobile, and no other country has so thoroughly adopted the automobile as its favorite means of transportation. . This represents the twelfth consecutive quarter of year-over-year diluted EPS improvement, excluding special items, and reflected higher sales volume and margin expansion in a number of operations, along with the continued benefit of lower interest expense. A[paragraph]"Both of this year's acquisitions - Kwikee and Dresco - were accretive to third quarter earnings, and we made progress during the quarter integrating them with existing operations. Additionally, our automotive margins improved during the quarter as had been forecasted due to improved manufacturing efficiencies in our plants in both the U.S. and The 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. . A[paragraph]"We were also pleased to reduce the 13% Notes outstanding by repurchasing approximately $32 million of notes during the quarter. With only $29 million remaining of the original $200 million 13% Notes issued, the related interest expense has declined further and will help drive future earnings and cash flow growth. Despite the premiums paid to repurchase the 13% Notes during the quarter, cash flow was exceptionally strong, leading to debt reduction of $19 million. A[paragraph]"We are three-fourths Noun 1. three-fourths - three of four equal parts; "three-fourths of a pound" three-quarters common fraction, simple fraction - the quotient of two integers of the way through fiscal 2004, and Actuant remains on track for record fiscal year sales and earnings, excluding refinancing costs. We are raising our full year sales guidance from $695-705 million to $710-715 million, and our diluted EPS guidance before refinancing charges from $1.75-1.85 per share to $1.85-1.90 per share. The projected full year 30-35% diluted EPS growth exceeds our annual goal of 15-20% due to the combination of significant automotive sales growth and interest expense reduction, which are not expected to improve at the same pace as we move forward. Our preliminary fiscal 2005 guidance is for sales in the $725-750 million range, and diluted EPS in the $2.15-2.25 per share range. The guidance assumes conservative economic growth, continued commodity pricing pressure, increased interest rates, relatively stable foreign currency exchange rates, and no acquisitions or divestitures. We are excited about Actuant's prospects for the future and its chances of delivering 15-20% EPS improvement in fiscal 2005." A[paragraph]Fiscal 2004 third quarter sales in the Tools & Supplies segment were $109.9 million, or approximately 20% higher than last year's $91.4 million, due to core sales growth, foreign currency rate changes and the impact of the Dresco acquisition. Excluding foreign currency and acquisition impacts, core Tools & Supplies revenues were up 5% over the prior year, with growth in both the hydraulic high force tools and electrical markets. Third quarter sales in the Engineered Solutions segment increased approximately 55% over the prior year to $86.6 million, reflecting higher shipments in all major markets, the Kwikee acquisition and the favorable impact of foreign currency. Excluding foreign currency rate changes and the Kwikee acquisition, segment sales increased 35%. A[paragraph]Actuant's third quarter operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. increased 30% over the prior year, due to corresponding sales growth. Third quarter operating profit as a percentage of sales declined slightly from 13.2% in the prior year to 12.8% in the current year, primarily the result of higher corporate expenses. A[paragraph]Tools & Supplies operating profit margins Operating profit margin The ratio of operating profit to net sales. improved from 15.0% to 16.0% year-over-year due to increased manufacturing absorption absorption [Lat.,=sucking from], taking of molecules of one substance directly into another substance. It is contrasted with adsorption, in which the molecules adhere only to the surface of the second substance. and cost reductions. Engineered Solutions operating profit margins declined year-over-year from 13.7% to 13.2%, but improved from the second quarter due to improved manufacturing efficiencies in the automotive business. A[paragraph]Total debt was reduced during the quarter as a result of strong operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. , declining to $212 million at May 31, 2004 from $231 million at the beginning of the quarter. Liquidity remains strong with approximately $220 million of availability under the Company's $250 million 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 . Third quarter net financing costs Net financing cost Also called the cost of carry or, simply carry, the difference between the cost of financing the purchase of an asset and the asset's cash yield. Positive carry means that the yield earned is greater than the financing cost; negative carry means that the declined 44% due to lower interest rates on funded debt Funded Debt Long-term debt that matures after more than one year. Notes: This is usually issued as a bond or a long-term note. See also: Bond, Debt, Maturity, Note Funded debt Debt maturing after more than one year. , primarily reflecting fewer 13% Notes outstanding compared to the prior year. A[paragraph]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 A[paragraph]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 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 ge·o·pol·i·tics n. (used with a sing. verb) 1. The study of the relationship among politics and geography, demography, and economics, especially with respect to the foreign policy of a nation. 2. a. activity on the economy, continued market acceptance of the Company's new product introductions, the successful integration of business unit acquisitions and related restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). , 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. A[paragraph]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 20 countries. The Actuant businesses are leading companies selling highly engineered position and motion control systems and branded tools. Products are offered under such established brand names as Dresco, 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. A[paragraph]The Company will be conducting an investor conference call at 11:00 EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT today to discuss third quarter results. For further information on Actuant and its business units, and to listen to today's conference call, visit the Company's website at www.actuant.com.
Actuant Corporation
Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited)
May 31, August 31,
2004 2003
---------- ----------
ASSETS
Current assets
Cash and cash equivalents $ 4,751 $ 4,593
Accounts receivable, net 98,602 81,825
Inventories, net 84,501 67,640
Deferred income taxes 15,137 14,727
Other current assets 5,854 3,977
---------- ----------
Total Current Assets 208,845 172,762
Property, plant and equipment, net 50,292 59,197
Goodwill 145,432 101,680
Other intangible assets, net 23,005 19,521
Other long-term assets 9,834 8,493
---------- ----------
Total Assets $437,408 $361,653
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings $ 329 $ 1,224
Trade accounts payable 63,079 53,045
Accrued compensation and benefits 21,859 16,773
Income taxes payable 13,898 21,444
Current maturities of long-term debt 3,951 8,918
Other current liabilities 37,624 40,753
---------- ----------
Total Current Liabilities 140,740 142,157
Long-term debt, less current maturities 207,543 159,692
Deferred income taxes 12,398 8,841
Pension and postretirement benefit accruals 30,940 29,430
Other long-term liabilities 32,195 29,042
Minority interest in net equity of consolidated
affiliates 96 4,117
Shareholders' equity
Capital stock 4,751 4,702
Additional paid-in capital (518,585) (522,627)
Accumulated other comprehensive income (loss) (17,309) (21,823)
Stock held in trust (765) (636)
Deferred compensation liability 765 636
Retained earnings 544,639 528,122
---------- ----------
Total Shareholders' Equity (Deficit) 13,496 (11,626)
---------- ----------
Total Liabilities and Shareholders' Equity $437,408 $361,653
========== ==========
Actuant Corporation
Consolidated Statements of Earnings
(In thousands except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
May 31, May 31,
------------------ ------------------
2004 2003 2004 2003
------------------ ------------------
Net Sales $196,481 $147,189 $539,087 $437,146
Cost of Products Sold 134,766 98,386 367,959 295,952
------------------ ------------------
Gross Profit 61,715 48,803 171,128 141,194
Selling, Administrative and
Engineering Expenses 35,943 28,880 103,328 85,834
Amortization of Intangible Assets 594 530 1,728 1,750
------------------ ------------------
Operating Profit 25,178 19,393 66,072 53,610
Net Financing Costs 2,900 5,177 11,168 16,282
Charge for Early Extinguishment
of Debt 9,940 - 27,277 1,974
Litigation Charge (Benefit)
associated with Divested
Businesses - (798) - 6,502
Other (Income) Expense, net 505 (515) 1,596 (1,021)
------------------ ------------------
Earnings from Continuing
Operations Before Income
Taxes and Minority Interest 11,833 15,529 26,031 29,873
Income Tax Expense 4,428 5,482 9,371 10,574
Minority Interest, net of Income
Taxes (61) 70 143 350
------------------ ------------------
Net Earnings $ 7,466 $ 9,977 $ 16,517 $ 18,949
================== ==================
Earnings per Share
Basic $ 0.31 $ 0.43 $ 0.70 $ 0.81
Diluted 0.30 0.41 0.67 0.78
Weighted Average Common Shares
Outstanding
Basic 23,703 23,380 23,615 23,290
Diluted 24,514 24,348 24,719 24,406
Actuant Corporation
Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended Nine Months Ended
May 31, May 31,
------------------------------------
2004 2003 2004 2003
-------- -------- -------- --------
Operating Activities
Net earnings $ 7,466 $ 9,977 $16,517 $18,949
Adjustments to reconcile earnings
to net cash provided by operating
activities:
Depreciation and amortization 4,066 3,628 12,254 11,139
Amortization of debt discount
and debt issuance costs 284 368 1,126 1,112
Write-off of debt discount and
debt issuance costs in
conjunction with early
extinguishment of debt 880 - 4,445 317
Provision (benefit) for deferred
income taxes 2,004 (220) 1,788 476
Loss on sale of assets - 42 137 67
Changes in operating assets and
liabilities, excluding the
effects of business acquisitions:
Accounts receivable 2,061 188 (2,885) (880)
Inventories (2,983) 718 (4,244) 4,728
Prepaid expenses and other
assets (305) 2,674 (1,357) 3,678
Trade accounts payable 6,264 (2,671) 2,717 (5,422)
Income taxes payable 312 4,644 (4,334) 1,348
Accrued interest (2,986) (3,798) (4,642) (3,798)
Other accrued liabilities 4,947 (4,729) 1,885 (365)
-------- -------- -------- --------
Net cash provided by operating
activities (a) 22,010 10,821 23,407 31,349
Investing Activities
Proceeds from sale of property,
plant and equipment - 384 14,601 393
Capital expenditures (2,099) (3,792) (8,000) (10,342)
Cash paid for business
acquisitions, net of cash
acquired - (444) (65,100) (9,174)
-------- -------- -------- --------
Net cash used in investing
activities (2,099) (3,852) (58,499) (19,123)
Financing Activities
Partial redemption of 13% senior
subordinated notes (31,543) - (80,897) (9,425)
Net proceeds from convertible
senior subordinated note
offering - - 144,994 -
Extinguishment of former senior
secured credit agreement - - (30,000) -
Initial proceeds from new senior
credit agreement - - 30,000 -
Net (repayments) borrowings on
revolving credit facilities and
short-term borrowings 13,711 (5,597) (3,941) 3,262
Principal borrowings on term
loans - - - 3,932
Principal payments on term loans (74) (1,007) (24,443) (11,673)
(Payments) proceeds from early
termination of interest rate
swaps (1,016) 1,550 (1,016) 1,550
Other 590 440 296 1,184
-------- -------- -------- --------
Net cash (used in) provided by
financing activities (18,332) (4,614) 34,993 (11,170)
Effect of exchange rate changes
on cash 45 220 257 403
-------- -------- -------- --------
Net increase in cash and cash
equivalents 1,624 2,575 158 1,459
Cash and cash equivalents -
beginning of period 3,127 1,927 4,593 3,043
-------- -------- -------- --------
Cash and cash equivalents - end
of period $ 4,751 $ 4,502 $ 4,751 $ 4,502
======== ======== ======== ========
(a) Includes cash paid in excess of face value on 13% senior
subordinated note redemptions of $9.1 million for the three months
ended May 31, 2004 and $22.8 million and $1.7 million for the nine
months ended May 31, 2004 and 2003, respectively.
ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA
(US dollars, in thousands)
FISCAL 2003
---------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
---------------------------------------------
SALES
TOOLS & SUPPLIES
SEGMENT $ 92,014 $ 90,651 $ 91,386 $ 92,433 $366,484
ENGINEERED SOLUTIONS
SEGMENT 55,844 51,448 55,803 55,814 218,909
---------------------------------------------
TOTAL REPORTED SALES $147,858 $142,099 $147,189 $148,247 $585,393
=============================================
% SALES GROWTH
TOOLS & SUPPLIES
SEGMENT 43.6% 45.4% 39.0% 37.2% 41.2%
ENGINEERED SOLUTIONS
SEGMENT 13.8% 11.6% 2.8% 3.3% 7.6%
TOTAL REPORTED SALES 30.7% 31.0% 22.6% 22.1% 26.4%
OPERATING PROFIT
TOOLS & SUPPLIES
SEGMENT $ 12,818 $ 12,224 $ 13,702 $ 13,417 $ 52,161
ENGINEERED SOLUTIONS
SEGMENT 6,616 5,760 7,648 7,571 27,595
CORPORATE / GENERAL (1,246) (1,955) (1,957) (1,813) (6,971)
---------------------------------------------
TOTAL REPORTED
RESULTS $ 18,188 $ 16,029 $ 19,393 $ 19,175 $ 72,785
=============================================
OPERATING PROFIT %
TOOLS & SUPPLIES
SEGMENT 13.9% 13.5% 15.0% 14.5% 14.2%
ENGINEERED SOLUTIONS
SEGMENT 11.8% 11.2% 13.7% 13.6% 12.6%
TOTAL (INCL.
CORPORATE) 12.3% 11.3% 13.2% 12.9% 12.4%
EBITDA EXCLUDING SPECIAL
ITEMS
TOOLS & SUPPLIES
SEGMENT $ 15,126 $ 14,454 $ 16,829 $ 15,746 $ 62,155
ENGINEERED SOLUTIONS
SEGMENT 7,666 7,501 8,739 8,947 32,853
CORPORATE / GENERAL (1,161) (1,354) (2,028) (375) (4,918)
---------------------------------------------
EBITDA 21,631 20,601 23,540 24,318 90,090
SPECIAL ITEMS (1) (9,274) - 798 - (8,476)
---------------------------------------------
EBITDA EXCLUDING
SPECIAL ITEMS $ 12,357 $ 20,601 $ 24,338 $ 24,318 $ 81,614
=============================================
EBITDA %
TOOLS & SUPPLIES
SEGMENT 16.4% 15.9% 18.4% 17.0% 17.0%
ENGINEERED SOLUTIONS
SEGMENT 13.7% 14.6% 15.7% 16.0% 15.0%
TOTAL EXCLUDING
SPECIAL ITEMS (INCL.
CORPORATE) 14.6% 14.5% 16.0% 16.4% 15.4%
FISCAL 2004
---------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
---------------------------------------------
SALES
TOOLS & SUPPLIES
SEGMENT $ 96,335 $103,554 $109,930 $309,819
ENGINEERED SOLUTIONS
SEGMENT 70,249 72,468 86,551 229,268
---------------------------------------------
TOTAL REPORTED SALES $166,584 $176,022 $196,481 $ - $539,087
=============================================
% SALES GROWTH
TOOLS & SUPPLIES
SEGMENT 4.7% 14.2% 20.3% 13.1%
ENGINEERED SOLUTIONS
SEGMENT 25.8% 40.9% 55.1% 40.6%
TOTAL REPORTED SALES 12.7% 23.9% 33.5% 23.3%
OPERATING PROFIT
TOOLS & SUPPLIES
SEGMENT $ 14,361 $ 15,714 $ 17,546 $ 47,621
ENGINEERED SOLUTIONS
SEGMENT 8,775 7,257 11,415 27,447
CORPORATE / GENERAL (2,414) (2,799) (3,783) (8,996)
---------------------------------------------
TOTAL REPORTED
RESULTS $ 20,722 $ 20,172 $ 25,178 $ - $ 66,072
=============================================
OPERATING PROFIT %
TOOLS & SUPPLIES
SEGMENT 14.9% 15.2% 16.0% 15.4%
ENGINEERED SOLUTIONS
SEGMENT 12.5% 10.0% 13.2% 12.0%
TOTAL (INCL.
CORPORATE) 12.4% 11.5% 12.8% 12.3%
EBITDA EXCLUDING SPECIAL
ITEMS
TOOLS & SUPPLIES
SEGMENT $ 16,668 $ 17,511 $ 19,618 $ 53,797
ENGINEERED SOLUTIONS
SEGMENT 9,921 8,986 12,753 31,660
CORPORATE / GENERAL (2,386) (2,709) (3,632) (8,727)
---------------------------------------------
EBITDA 24,203 23,788 28,739 - 76,730
SPECIAL ITEMS (1) (15,069) (2,268) (9,940) (27,277)
---------------------------------------------
EBITDA EXCLUDING
SPECIAL ITEMS $ 9,134 $ 21,520 $ 18,799 $ - $ 49,453
=============================================
EBITDA %
TOOLS & SUPPLIES
SEGMENT 17.3% 16.9% 17.8% 17.4%
ENGINEERED SOLUTIONS
SEGMENT 14.1% 12.4% 14.7% 13.8%
TOTAL EXCLUDING
SPECIAL ITEMS (INCL.
CORPORATE) 14.5% 13.5% 14.6% 14.2%
(1) First quarter 2003 special items include a $2.0 million charge
related to the early redemption of debt and a $7.3 million
charge related to litigation for business units divested prior
to the July 31, 2000 spin-off. Third quarter 2003 special items
represents an $0.8 million reversal of a portion of the $7.3
million first quarter charge for the favorable settlement of
such litigation. First and third quarter 2004 special items
represents charges related to the early redemption of debt.
Second quarter 2004 special items represents the non-cash
charge attributable to the write-off of remaining debt issuance
costs associated with the senior secured credit facility that
was replaced during February 2004.
ACTUANT CORPORATION
Reconciliation of GAAP measures to non-GAAP measures
(In thousands, except per share amounts)
FISCAL 2003
---------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
---------------------------------------------
NET EARNINGS EXCLUDING
SPECIAL ITEMS (1)
NET EARNINGS (GAAP
MEASURE) $ 1,856 $ 7,116 $ 9,977 $ 10,017 $ 28,966
DEBT EXTINGUISHMENT
COSTS (NET OF TAX) 1,273 - - - 1,273
LITIGATION MATTERS
RELATED TO BUSINESSES
DIVESTED PRIOR TO THE
SPIN-OFF OF APW LTD.
(NET OF TAX) 4,708 - (516) - 4,192
---------------------------------------------
NET EARNINGS EXCLUDING
SPECIAL ITEMS (NON-GAAP
MEASURE) $ 7,837 $ 7,116 $ 9,461 $ 10,017 $ 34,431
=============================================
DILUTED EARNINGS PER SHARE
EXCLUDING SPECIAL ITEMS (1)
NET EARNINGS (GAAP
MEASURE) $ 0.08 $ 0.29 $ 0.41 $ 0.41 $ 1.18
DEBT EXTINGUISHMENT
COSTS (NET OF TAX) 0.05 - - - 0.05
LITIGATION MATTERS
RELATED TO BUSINESSES
DIVESTED PRIOR TO THE
SPIN-OFF OF APW LTD.
(NET OF TAX) 0.19 - (0.02) - 0.17
---------------------------------------------
NET EARNINGS EXCLUDING
SPECIAL ITEMS (NON-GAAP
MEASURE) $ 0.32 $ 0.29 $ 0.39 $ 0.41 $ 1.40
=============================================
EBITDA EXCLUDING SPECIAL
ITEMS (2)
NET EARNINGS (GAAP
MEASURE) $ 1,856 $ 7,116 $ 9,977 $ 10,017 $ 28,966
NET FINANCING COSTS 5,662 5,443 5,177 5,148 21,430
INCOME TAX EXPENSE 1,067 4,025 5,482 5,350 15,924
DEPRECIATION &
AMORTIZATION 3,689 3,820 3,632 3,926 15,067
MINORITY INTEREST 83 197 70 (123) 227
---------------------------------------------
EBITDA (NON-GAAP
MEASURE) $ 12,357 $ 20,601 $ 24,338 $ 24,318 $ 81,614
SPECIAL ITEMS (3) 9,274 - (798) - 8,476
---------------------------------------------
EBITDA EXCLUDING SPECIAL
ITEMS (NON-GAAP
MEASURE) $ 21,631 $ 20,601 $ 23,540 $ 24,318 $ 90,090
=============================================
FISCAL 2004
---------------------------------------------
Q1 Q2 Q3 Q4 TOTAL
---------------------------------------------
NET EARNINGS EXCLUDING
SPECIAL ITEMS (1)
NET EARNINGS (GAAP
MEASURE) $ 293 $ 8,758 $ 7,466 $ 16,517
DEBT EXTINGUISHMENT
COSTS (NET OF TAX) 9,795 1,479 6,791 18,065
LITIGATION MATTERS
RELATED TO BUSINESSES
DIVESTED PRIOR TO THE
SPIN-OFF OF APW LTD.
(NET OF TAX) - - - -
---------------------------------------------
NET EARNINGS EXCLUDING
SPECIAL ITEMS (NON-GAAP
MEASURE) $ 10,088 $ 10,237 $ 14,257 $ - $ 34,582
=============================================
DILUTED EARNINGS PER SHARE
EXCLUDING SPECIAL ITEMS (1)
NET EARNINGS (GAAP
MEASURE) $ 0.01 $ 0.35 $ 0.30 $ 0.67
DEBT EXTINGUISHMENT
COSTS (NET OF TAX) 0.40 0.06 0.28 0.73
LITIGATION MATTERS
RELATED TO BUSINESSES
DIVESTED PRIOR TO THE
SPIN-OFF OF APW LTD.
(NET OF TAX) - - - -
---------------------------------------------
NET EARNINGS EXCLUDING
SPECIAL ITEMS (NON-GAAP
MEASURE) $ 0.41 $ 0.41 $ 0.58 $ - $ 1.40
=============================================
EBITDA EXCLUDING SPECIAL
ITEMS (2)
NET EARNINGS (GAAP
MEASURE) $ 293 $ 8,758 $ 7,466 $ 16,517
NET FINANCING COSTS 4,391 3,877 2,900 11,168
INCOME TAX EXPENSE 283 4,660 4,428 9,371
DEPRECIATION &
AMORTIZATION 3,934 4,254 4,066 12,254
MINORITY INTEREST 233 (29) (61) 143
---------------------------------------------
EBITDA (NON-GAAP
MEASURE) $ 9,134 $ 21,520 $ 18,799 $ - $ 49,453
SPECIAL ITEMS (3) 15,069 2,268 9,940 27,277
---------------------------------------------
EBITDA EXCLUDING SPECIAL
ITEMS (NON-GAAP
MEASURE) $ 24,203 $ 23,788 $ 28,739 $ - $ 76,730
=============================================
(1) Net earnings and diluted earnings per share excluding special
items represent net earnings and diluted earnings per share per
the Consolidated Statement of Earnings net of charges or credits
for special items that are not representative of the normal
recurring operations of the current portfolio of Actuant
companies. These items include expenses recorded to extinguish
debt entered into at the time of the spin-off and litigation
charges related to matters associated with businesses divested
prior to the spin-off. These measures should not be considered as
an alternative to net earnings or diluted earnings per share 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.
(2) EBITDA represents net earnings before net financing costs, income
tax expense, depreciation & amortization and minority interest.
EBITDA excluding special items represents EBITDA net of charges or
credits that are not representative of the normal recurring
operations of the current portfolio of Actuant companies. These
special items include expenses recorded to extinguish debt entered
into at the time of the spin-off and litigation charges related to
matters associated with businesses divested prior to the spin-off.
EBITDA is not a calculation based upon generally accepted
accounting principles (GAAP). The amounts included in the EBITDA
calculation, however, are derived from amounts included in the
Consolidated Statements of Earnings data. EBITDA should not be
considered as an alternative to net earnings or operating profit
as an indicator of the company's operating performance, or as an
alternative to operating cash flows as a measure of liquidity.
Actuant has presented EBITDA because it regularly
(3) First quarter 2003 special items include a $2.0 million charge
related to the early redemption of debt and a $7.3 million charge
related to litigation for business units divested prior to the
July 31, 2000 spin-off. Third quarter 2003 special items
represents an $0.8 million reversal of a portion of the $7.3
million first quarter charge for the favorable settlement of such
litigation. First and third quarter 2004 special items represents
charges related to the early redemption of debt. Second quarter
2004 special items represents the non-cash charge attributable to
the write-off of remaining debt issuance costs associated with the
senior secured credit facility that was replaced during February
2004.
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