Applied Power Announces Record Second Quarter Earnings.MILWAUKEE--(BUSINESS WIRE)--March 18, 1999--Applied Power Inc. (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 - NYSE NYSE See: New York Stock Exchange ) announced today record sales and earnings for the second quarter ended February February: see month. 28, 1999. Net Earnings were a record $19.3 million, or $.48 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 for the second quarter, an increase of 17% over the $16.5 million, or $.41 per diluted share in the previous year's second quarter. Excluding the non-cash amortization expense, after taxes, resulting primarily from recent acquisitions, Net Earnings increased 33% to $25.5 million in the fiscal 1999 second quarter compared to the fiscal 1998 second quarter. Sales were a record $422.0 million for the second quarter, a 51% increase over the prior year period. For the six months ended February 28, 1999, Net Earnings were $35.7 million, or $.89 per diluted share. Excluding one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. items from both the current and prior year periods, Net Earnings were $40.4 million or $1.01 per diluted share, an increase of 20% over the $33.9 million, or $.84 per diluted share reported in the prior year first half. Excluding after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. , non-cash amortization expense, first-half Net Earnings increased 35% to $52.7 million as compared to the prior year first half. One-time items relate to a non-taxable non-taxable adj → nicht steuerpflichtig non-taxable adj non-taxable income → reddito non imponibile insurance gain of $1.7 million in the first quarter of 1998, and one-time contract termination Defense procurement: the cessation or cancellation, in whole or in part, of work under a prime contract or a subcontract thereunder for the convenience of, or at the option of, the government, or due to failure of the contractor to perform in accordance with the terms of the contract (default). costs of $7.8 million before taxes in the first quarter of 1999. Sales for the first half of fiscal 1999 were a record $857.6 million, an increase of 55% over the same period last year. 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 commented, "We are very pleased that, at a time when the Company is growing rapidly, the cash efficiency of APW is improving. Our Earnings before Interest Taxes Depreciation and Amortization Noun 1. Earnings Before Interest Taxes Depreciation and Amortization - income before interest and taxes and depreciation and amortization have been subtracted; an indicator of a company's profitability that is watched by investors (especially in leveraged buyouts) (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 ) improved to 15.9% of sales as compared to 15.3% in the first quarter and 15.4% in the second quarter a year ago. While sales increased 51% in the second quarter, net primary working capital was essentially unchanged from the prior year. These improvements reflect the success of our World Class Performance Programs and our Strategic Purchasing and Global Sourcing Programs. Over a two year period, we have reduced working capital expressed as a percentage of sales by 50% and delivered significant productivity increases and material cost reductions in all of our business segments. These improvements are expanding our gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. and are an important contribution to the record profits we are enjoying." Sales in the Tools and Supplies segment grew 9% to $82.3 million in the second quarter as compared to the same period last year. EBITDA grew to $16.9 million, an increase of 66% over the prior second quarter. Sales in the Engineered Solutions segment increased 5% in the second quarter to $112.3 million. EBITDA grew to $24.7 million, an increase of 26% over the previous year's second quarter. Driven primarily by APW's recent acquisition activity, Sales in Enclosure enclosure (inclosure) n. land bounded by a fence, wall, hedge, ditch or other physical evidence of boundary. Unfortunately, too often these creations are not included among the actual legally-described boundaries and cause legal problems. ENCLOSURE. Products and Systems market increased 133% over the prior year's second quarter to $227.4 million. EBITDA improved 69% from the previous second quarter to $27.3 million. Debt as of February 28th was $876.4 million, an increase of $363.8 million from year end. This increase was principally due to the acquisition of Rubicon Rubicon (r  `bĭkŏn), Lat. Rubico, small stream that flows into the Adriatic and in Roman times marked the boundary between Cisalpine Gaul and ancient Italy. In 49 B.C. . Primary working capital was 13% compared to 19%
of annualized annualizedOf or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. sales in the prior year's second quarter. Business Outlook Commenting on the business outlook, Sim stated "We expect our two industrial businesses to continue to deliver significant year over year EBITDA improvements on moderate sales growth. Starting in the third quarter, sales in the Enclosure Products and Systems segment should accelerate as our strategic marketing programs take effect. This improving sales growth trend will benefit from expected growth in the semiconductor equipment market coupled with programmatic pro·gram·mat·ic adj. 1. Of, relating to, or having a program. 2. Following an overall plan or schedule: a step-by-step, programmatic approach to problem solving. 3. wins in the telecom and networking markets and the accelerating trend to outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. manufacturing by electronic companies. APW is ideally positioned to expand its position as the leading manufacturer and integrator (1) In electronics, a device that combines an input with a variable, such as time, and provides an analog output; for example, a watt-hour meter. (2) See systems integrator. of non-PC electronic enclosures. We are delighted by the discussions we are having with many customers, which can lead to significant new business similar to our recently announced Ericsson Er·ics·son , John 1803-1889. American engineer and inventor who built the first ironclad warship, the Monitor (1862), which engaged the Confederate Merrimack in a famous naval battle of the Civil War (March 9, 1862). partnership. We expect that some of these discussions may require us to make capital additions which is one of the reasons for improving our short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. borrowing liquidity by issuing the previously announced $175 million of Senior Subordinated notes which we expect to complete in March. These notes, coupled with cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses and some minor asset dispositions, should create a substantial reduction in our existing debt profile." Our business outlook comments represent forward looking statements 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 that could cause actual results to differ from these estimates. These factors include the economic environment in the industrial production, trucking, recreational vehicle, construction, aerospace, automotive, and electronic industries 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. and Europe. Applied Power's results are also subject to continued market acceptance of the Company's new product introductions, the successful integration of recent acquisitions, 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 foreign currency fluctuations and interest rate risk and other factors referred to in SEC filings. Applied Power Inc., headquartered in Butler, Wisconsin Butler is the name of some places in the U.S. state of Wisconsin:
This article consisting of geographical locations in Wisconsin is a disambiguation page, a list of pages that otherwise , is a global company comprised of three business segments. Enclosure Products and Systems provides electrical and electronic enclosure systems and technical furnishings furnishings the extra type or quantity of hair on the head, tail, ears or legs, specified for a particular breed. For example, the feathers in setters, the beard in Bearded collies, the eyebrows in Schnauzers. to a broad array of end user industries. Engineered Solutions supplies components and systems using thermal management, 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. 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, retail and direct channels worldwide. To receive a faxed copy of this or other recent Applied Power communications, please call the Company's "News on Demand" service at 1-800-549-0679. -- Financial Tables Follow --
Applied Power Inc.
Comparative Statement of Earnings
(In Thousands, Except per Share Amounts)
Three Months Ended February 28,
1999 1998
--------- ---------
Net sales $ 421,955 $ 279,398
Cost of products sold 295,445 183,277
--------- ---------
Gross Profit 126,510 96,121
Engineering, selling and
administrative expense 74,236 61,115
Amortization of intangible assets 7,088 3,291
--------- ---------
Operating Earnings 45,186 31,715
Other Expense (Income):
Net financing costs 15,489 6,146
Other (965) (366)
--------- ---------
Earnings before Income Taxes 30,662 25,935
Income Tax Expense 11,376 9,398
========= =========
Net Earnings $ 19,286 $ 16,537
========= =========
Basic Earnings per Share:
Earnings per Share $ 0.50 $ 0.43
========= =========
Weighted Average Common Shares
Outstanding (000's) 38,786 38,292
========= =========
Diluted Earnings per Share:
Earnings per Share $ 0.48 $ 0.41
========= =========
Weighted Average Common and Equivalent
Shares Outstanding (000's) 40,415 40,210
========= =========
Applied Power Inc.
Comparative Statement of Earnings
(In Thousands, Except per Share Amounts)
Six Months Ended February 28,
1999 1998
--------- ---------
Net sales $ 857,615 $ 554,773
Cost of products sold 593,703 362,970
--------- ---------
Gross Profit 263,912 191,803
Engineering, selling and
administrative expense 156,654 121,552
Amortization of intangible assets 14,153 5,971
Contract termination costs 7,824 -
--------- ---------
Operating Earnings 85,281 64,280
Other Expense (Income):
Net financing costs 29,388 11,363
Life insurance gain - (1,709)
Other (972) (558)
--------- ---------
Earnings before Income Taxes 56,865 55,184
Income Tax Expense 21,178 19,532
--------- ---------
Net Earnings $ 35,687 $ 35,652
========= =========
Basic Earnings per Share:
Earnings per Share $ 0.92 $ 0.93
========= =========
Weighted Average Common Shares
Outstanding (000's) 38,724 38,221
========= =========
Diluted Earnings per Share:
Earnings per Share $ 0.89 $ 0.89
========= =========
Weighted Average Common and Equivalent
Shares Outstanding (000's) 40,251 40,123
========= =========
Applied Power Inc.
Comparative Balance Sheet
(Dollars in Thousands)
February 28, August 31,
1999 1998
ASSETS --------- ---------
Current Assets
Cash and cash equivalents $ 8,097 $ 6,349
Accounts receivable 160,716 147,380
Inventories 198,737 164,786
Prepaid expenses 45,641 46,049
--------- ---------
Total Current Assets 413,191 364,564
Other assets 41,978 42,119
Goodwill 800,896 499,973
Intangible assets 46,177 42,896
Property, Plant & Equipment
Gross Property, Plant & Equipment 491,967 418,215
Less: Accumulated Depreciation (215,595) (193,045)
--------- ---------
Net Property, Plant & Equipment 276,372 225,170
--------- ---------
Total Assets $ 1,578,614 $ 1,174,722
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Short-term borrowings $ 3,072 $ 91
Trade accounts payable 146,490 127,470
Accrued compensation and benefits 37,578 45,457
Income taxes payable 21,762 12,898
Other current liabilities 53,058 74,792
--------- ---------
Total Current Liabilities 261,960 260,708
Long-term Debt 873,373 512,557
Deferred Income Taxes 22,991 23,065
Other Deferred Liabilities 39,562 36,510
--------- ---------
Total Liabilities 1,197,886 832,840
Shareholders' Equity 380,728 341,882
--------- ---------
Total Liabilities and
Shareholders' Equity $ 1,578,614 $ 1,174,722
========= =========
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