Applied Power Announces First Quarter Earnings.MILWAUKEE--(BUSINESS WIRE)--Dec. 18, 1997--Applied Power Inc. (NYSE NYSE See: New York Stock Exchange :APW APW All Pro Wrestling APW Altmar Parish Williamstown (School District; Parish, New York) APW Add-Printer Wizard (Microsoft Windows) APW Augmented Plane Wave APW Apparent Polar Wander ) reported record sales and earnings for the first quarter ended November November: see month. 30, 1997. Net earnings were $12.2 million, or $0.83 per share, a 24 percent improvement from the $9.5 million, or $0.67 per share, reported for the same period last year. Sales for the first quarter of the current year were $208.7 million, an increase of 36 percent over the $153.1 million reported in the first quarter of fiscal year 1997. Commenting on the results Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a G. Sim (1) (Society for Information Management, Chicago, IL, www.simnet.org) Founded in 1968 as the Society for MIS, it is a membership organization made up of corporate and division heads of IT organizations. , Chairman 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. of Applied Power Inc. stated, "We are delighted with our first quarter results. Sales were up 36 percent, with all three of the business segments contributing. The unfavorable effect of the stronger US dollar is being offset by our sustainable growth initiatives, particularly in the Engineered Solutions (ES) and Technical Environments and Enclosures (TEE) segments. Sales increased 17 percent excluding the effect of currency and acquisitions." All of the Company's segments reported increased sales over the prior year's first quarter. TEE sales and operating profits 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 79 percent and 49 percent respectively over the first quarter of fiscal 1997. Tools & Supplies (TS) sales grew by 6 percent, but profits declined 4 percent. Excluding the unfavorable effect of the stronger US dollar, profits increased 2 percent. Engineered Solutions sales growth of 51 percent generated a 126 percent improvement in profits. Sim continued, "We are quite proud of our accomplishments in the first quarter. We completed the Versa/Tek acquisition in early October October: see month. , and we are pleased with the transition and cost reductions already completed and are excited about the growth prospects for the business units. While the Asian economies are a concern to everyone, our sales and earnings in Asia are up slightly in the first quarter over last year." The Company's debt increased $108.5 million during the quarter, primarily the result of the acquisition of Versa Versa Versatile System Architecture (Genrad) Technologies for $142 million. At November 30, 1997, outstanding debt totaled $231.7 million and debt to total capitalization Total capitalization The total long-term debt and all types of equity of a company that constitutes its capital structure. total capitalization See capitalization. was 49.9 percent. Applied Power, headquartered in Wisconsin Wisconsin, state, United States Wisconsin (wĭskŏn`sən, –sĭn), upper midwestern state of the United States. It is bounded by Lake Superior and the Upper Peninsula of Michigan, from which it is divided by the Menominee , is a global company comprised of three business segments. Technical Environments and Enclosures expertise is in configuring technical equipment for end users and in providing enclosures for electronic equipment. Engineered Solutions supplies components and systems based on 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 and vibration control technologies to a diverse group of OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and customers. Tools and Supplies provides industrial and electrical tools and accessories through various distributor and retail channels worldwide. For further information contact: Applied Power Inc. 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 Vice President & Chief Financial Officer 414-781-6600 To receive a faxed copy of this or other recent Applied Power communications, please call the Company's "News on Demand" services at 1-800-549-0679 (tables follow) -0-
Applied Power Inc.
Comparative Statement of Earnings
(In Thousands, Except per Share Amounts)
Three Months Ended November 30,
_______________________________
1997 1996
_____________ _______________
Sales $ 208,689 $ 153,096
Cost of Goods Sold 135,698 92,458
___________ ___________
Gross Profit 72,991 60,638
Engineering, Selling and Administrative
Expense 47,670 42,235
Amortization of Intangibles 2,312 1,498
___________ ___________
Operating Profit 23,009 16,905
Other Expense (Income)
Interest Expense (Net) 4,147 2,625
Other (Net) 114 (66)
___________ ___________
Earnings Before Income Taxes 18,748 14,346
Income Tax Expense 6,562 4,806
___________ ___________
Net Income $ 12,186 $ 9,540
___________ ___________
___________ ___________
Earnings per Share $ 0.83 $ 0.67
___________ ___________
___________ ___________
Average Shares Outstanding 14,651 14,186
Applied Power Inc.
Comparative Balance Sheet
(Dollars in Thousands)
November 30, August 31,
1997 1997
CURRENT ASSETS ___________ __________
Cash and Cash Equivalents $ 5,143 $ 5,846
Accounts Receivable 70,111 84,697
Inventories 122,715 115,761
Prepaid Expenses 22,068 19,602
___________ __________
Total Current Assets 220,037 225,906
Other Assets 8,731 7,305
Goodwill 200,595 109,078
Intangible Assets 46,714 30,723
Property, Plant & Equipment
Gross Property, Plant & Equipment 251,375 191,336
Less: Accumulated Depreciation (132,077) (100,756)
___________ __________
Net Property, Plant & Equipment 119,298 90,580
___________ __________
TOTAL ASSETS $ 595,375 $ 463,592
___________ __________
___________ __________
LIABILITIES AND SHAREHOLDERS' EQUITY
Short-term Borrowings $ 26,689 $ 21,428
Trade Accounts Payable 54,448 54,555
Accrued Compensation and Benefits 23,202 24,736
Income Taxes Payable 6,676 7,093
Other Current Liabilities 24,185 20,462
___________ __________
Total Current Liabilities 135,200 128,274
Long-term Debt, Less Current Portion 204,983 101,663
Deferred Income Taxes 15,494 14,596
Other Long-term Liabilities 22,380 14,950
SHAREHOLDERS' EQUITY
Common Stock 2,773 2,763
Additional Paid-in Capital 39,829 38,388
Retained Earnings 178,546 166,776
Cumulative Translation Adjustments (3,830) (3,818)
___________ __________
Total Shareholders' Equity 217,318 204,109
___________ __________
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 595,375 $ 463,592
___________ __________
___________ __________
CONTACT: Applied Power Inc. Robert C. Arzbaecher, 414/781-6600 |
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