Applied Power Inc. Reports Record Third Quarter Results; Electronics Segment Sales Up 23% From Same Quarter Last Year.Business Editors WAUKESHA Waukesha (wô`kĭshô), city (1990 pop. 56,958), seat of Waukesha co., SE Wis., on the Fox River; inc. 1896. It is an industrial center in a dairy area. , Wis adv. 1. Certainly; really; indeed. v. t. 1. To think; to suppose; to imagine; - used chiefly in the first person sing. present tense, I wis. See the Note under Ywis. .--(BUSINESS WIRE)--June 16, 2000 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 ) today reported record sales and earnings for the fiscal third quarter and nine months ended May 31, 2000. Third Quarter Overview Sales for the three months ended May 31, 2000 were $498.3 million, up 13% from $440.5 million in the same period of 1999. Sales for the Electronics segment were $319.8 million, up 23% from the fiscal third quarter of 1999. Industrial segment sales were $178.5 million, down 1% from the same period last year. Excluding the negative impact of currency, Electronics sales grew 26% and Industrial sales grew 2% as compared to fiscal third quarter 1999. 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.
adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. costs associated with the pending spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. of the Electronics segment and an extraordinary loss on the sale of the Air Cargo air cargo: see aviation. Equipment business, was $78.2 million, an increase of 13% from the $69.3 million reported in the fiscal third quarter of 1999. EBITDA for the Electronics segment increased 22%, while EBITDA for the Industrial segment's continuing businesses increased 7% as compared to the same period last year. Cash Earnings, excluding both the one-time costs noted above and the 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. impact of intangible amortization, were $32.7 million as compared to $27.0 million in the third quarter of fiscal 1999, an increase of 21%. This resulted in cash earnings per share of $0.81 compared to $0.67 per share in the prior year third quarter. Net Earnings, excluding the one-time costs noted above and including the after-tax impact of intangible amortization, increased 26% to $25.6 million, or $0.64 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, compared to $20.5 million, or $0.51 per diluted share for the same period last year. Diluted 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. , including one-time costs, was $0.32 per diluted share for the fiscal third quarter of 2000. 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 Chief Executive Officer of Applied Power Inc. commented, "This is expected to be the last quarterly earnings release published by Applied Power. During the fourth quarter, we plan to spin-off our Electronics segment as APW Ltd. (NYSE: APW), and Applied Power, with its remaining Industrial businesses, will be changing its name to Actuant Corporation (NYSE: 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. ). It is satisfying that the Industrial segment has reported one of its strongest EBITDA quarters ever. Equally satisfying is the accelerating sales growth demonstrated over the past few quarters in our Electronics business. We are delighted that both businesses are starting their new chapters on such strong notes."
Summary of Financial Results (excluding one-time costs)
(Dollars in millions, except per share values)
----------------------------------------------------------------------
Q3F00 Q3F99 % Change 9MonF00 9 MonF99 % Change
Sales $498.3 $440.5 13% $1,421.7 $1,298.1 10%
EBITDA $ 78.2 $ 69.3 13% $ 224.2 $ 203.0 10%
Net Earnings $ 25.6 $ 20.5 25% $ 73.2 $ 60.9 20%
Cash Earnings $ 32.7 $ 27.0 21% $ 94.5 $ 79.8 19%
EPS - Cash $ 0.81 $ 0.67 21% $ 2.34 $ 1.98 18%
EPS - Diluted $ 0.64 $ 0.51 25% $ 1.82 $ 1.52 20%
----------------------------------------------------------------------
One-time items include: Fiscal 2000 Three months ended May 31, 2000 - Corporate reorganization The process of carrying out, through agreements and legal proceedings, a business plan for winding up the affairs of, or foreclosing a mortgage upon, the property of a corporation that has become insolvent. expenses related to the pending Electronics business spin-off of $1.0 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta , $0.6 million after tax, or $0.02 per diluted share - Extraordinary loss on sale of subsidiary of $12.2 million, net of tax benefit of $1.7 million, or $0.30 per diluted share Nine months ended May 31, 2000 - Corporate reorganization expenses related to the pending Electronics business spin-off of $4.4 million pre-tax, $2.8 million after tax, or $0.07 per diluted share - Extraordinary loss on sale of subsidiary of $12.2 million, net of tax benefit of $1.7 million, or $0.30 per diluted share - Recovery on an Industrial segment 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). of $1.4 million pre-tax, $0.9 million after tax, or $0.02 per diluted share - Extraordinary loss on 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 of $2.1 million net of a tax benefit of $1.25 million, or $0.05 per diluted share Fiscal 1999 Three and nine months ended May 31, 1999 - Contract termination costs of $7.8 million pre-tax, $4.7 million after tax, or $0.12 per diluted share About Applied Power Inc. Applied Power Inc., headquartered in Waukesha, Wisconsin Waukesha [ˈwɑkəˌʃɑ] is a city in and the county seat of Waukesha CountyGR6, Wisconsin, United States. As of the 2000 census, Waukesha had a total population of 64,826. , is a global company comprised of two business segments. Electronics supplies electronic enclosures, power supplies, thermal thermal /ther·mal/ (ther´m'l) pertaining to or characterized by heat. ther·mal adj. 1. Of, relating to, using, producing, or caused by heat. 2. systems, backplanes, and cabling either as products or integrated as a system supplied along with new product design, supply chain management, assembly and test services. Industrial is composed of standard and customized 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 products sold to a wide array of end users through distribution or directly into a variety of niche markets A niche market also known as a target market is a focused, targetable portion (subset) of a market sector. By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. . For further information contact: Applied Power Inc. Susan SUSAN Smallest Univalue Segment Assimilating Nucleus SUSAN Sub Saharan African Network SUSAN Smart Ultrasonic System for Aircraft NDE Hrobar, Vice President 262-523-7600 www.apw1.com 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. Applied Power's results are also subject to general economic conditions, 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, foreign currency fluctuations and interest rate risk. (Tables Follow)
Applied Power Inc.
Comparative Statement of Earnings
(In thousands, except per share amounts)
Three Months Ended
(1)
May 31, 2000 May 31, 1999 % Change
------------ ------------ --------
Net sales $ 498,325 $ 440,505 13.1%
Cost of products sold 349,556 301,904 15.8%
------------ ------------ --------
Gross Profit 148,769 138,601 7.3%
Engineering, selling and
administrative expense 83,597 81,336 2.8%
------------ ------------ --------
EBITA 65,172 57,265 13.8%
Amortization of intangible assets 7,948 7,445
Other Expense (Income):
Net financing costs 17,078 17,006
Other - net (595) (35)
------------ ------------
Earnings Before Income Taxes 40,741 32,849 24.0%
Income tax expense 15,176 12,320
------------ ------------
Net Earnings $ 25,565 $ 20,529 24.5%
============ ============
Cash Earnings $ 32,678 $ 27,048 20.8%
============ ============
Cash Earnings Per Share:
Earnings Per Share $ 0.81 $ 0.67 20.9%
============ ============
Diluted Earnings Per Share:
Earnings Per Share $ 0.64 $ 0.51 25.5%
============ ============
Weighted Average Common and
Equivalent Shares
Outstanding (000's) 40,234 40,130
============ ============
(1) Excludes corporate reorganization expenses related to the
pending Electronics business spin-off of $1.0 million pre-tax,
$0.6 after tax, or $0.02 per diluted share.
Excludes extraordinary loss on sale of subsidiary of $12.2
million, net of tax benefit of $1.7 million, or $0.30 per diluted
share.
Applied Power Inc.
Comparative Statement of Earnings
(In thousands, except per share amounts)
Nine Months Ended
(1) (2)
May 31, 2000 May 31, 1999 % Change
------------ ------------ --------
Net sales $1,421,669 $1,298,119 9.5%
Cost of products sold 995,392 895,607 11.1%
------------ ------------ --------
Gross Profit 426,277 402,512 5.9%
Engineering, selling and
administrative expense 240,338 237,989 1.0%
------------ ------------ --------
EBITA 185,939 164,523 13.0%
Amortization of intangible assets 23,746 21,599
Other Expense (Income):
Net financing costs 45,438 46,394
Other - net 108 (1,007)
------------ ------------
Earnings Before Income Taxes 116,647 97,537 19.6%
Income tax expense 43,456 36,628
------------ ------------
Net Earnings $ 73,191 $ 60,909 20.2%
============ ============
Cash Earnings $ 94,530 $ 79,757 18.5%
============ ============
Cash Earnings Per Share:
Earnings Per Share $ 2.34 $ 1.98 18.2%
============ ============
Diluted Earnings Per Share:
Earnings Per Share $ 1.82 $ 1.52 19.7%
============ ============
Weighted Average Common and
Equivalent Shares
Outstanding (000's) 40,302 40,204
============ ============
(1) Excludes corporate reorganization expenses related to the
pending Electronics business spin-off of $4.4 million pre-tax,
$2.8 after tax, or $0.07 per diluted share.
Excludes extraordinary loss on sale of subsidiary of $12.2
million, net of tax benefit of $1.7 million, or $0.30 per diluted
share.
Excludes extraordinary loss on early extinguishment of debt of
$2.1 million, net of tax benefit of $1.25 million, or $0.05 per
diluted share.
Excludes recovery on contract termination of $1.4 million pre-tax,
$0.9 million after tax, or $0.02 per diluted share.
(2) Excludes effect of contract termination costs of $7.8 million
pre-tax, $4.7 million after tax, or $0.12 per diluted share.
Applied Power Inc.
Comparative Balance Sheet
(Dollars in thousands)
May 31, August 31,
2000 1999
----------- ----------
ASSETS
Current Assets
Cash and cash equivalents $ 6,808 $ 22,258
Accounts receivable 182,832 149,525
Inventories 229,490 207,518
Prepaid expenses 33,745 29,735
----------- ----------
Total Current Assets 452,875 409,036
Property, Plant and Equipment
Gross Property, Plant and Equipment 529,789 549,112
Less: Accumulated depreciation (285,215) (275,210)
----------- ----------
Net Property, Plant and Equipment 244,574 273,902
----------- ----------
Goodwill 820,069 845,704
Other intangible assets 39,194 42,618
Other assets 51,437 53,586
----------- ----------
Total Assets $ 1,608,149 $ 1,624,846
=========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Short-term borrowings $ - $ 230
Trade accounts payable 186,249 157,515
Accrued compensation and benefits 40,816 47,089
Income taxes payable 36,906 36,491
Other current liabilities 60,180 82,340
----------- ----------
Total Current Liabilities 324,151 323,665
Long-term Debt 744,329 808,438
Deferred Income Taxes 16,370 15,869
Other Deferred Liabilities 60,535 59,045
----------- ----------
Total Liabilities 1,145,385 1,207,017
Shareholders' Equity
Common stock 7,822 7,796
Additional paid-in capital 14,255 12,388
Retained earnings 468,104 412,863
Accumulated other comprehensive income (27,417) (15,218)
----------- ----------
Total Shareholders' Equity 462,764 417,829
Total Liabilities and
Shareholders' Equity $ 1,608,149 $ 1,624,846
=========== ==========
Applied Power Inc.
Comparative Statement of Earnings
(In thousands, except per share amounts)
Three Months Ended
May 31, 2000 May 31, 1999 % Change
------------ ------------ --------
Net sales $ 498,325 $ 440,505 13.1%
Cost of products sold 349,556 301,904 15.8%
------------ ------------ --------
Gross Profit 148,769 138,601 7.3%
Engineering, selling and
administrative expense 83,597 81,336 2.8%
Corporate reorganization expenses 962 -
------------ ------------ --------
EBITA 64,210 57,265 12.1%
Amortization of intangible assets 7,948 7,445
Other Expense (Income):
Net financing costs 17,078 17,006
Other - net (595) (35)
------------ ------------
Earnings Before Income Taxes 39,779 32,849 21.1%
Income tax expense 14,819 12,320
------------ ------------
Income Before Extraordinary Item 24,960 20,529 21.6%
Extraordinary loss on sale of
subsidiary, net of income tax
benefit of $1.7 million (12,186) -
------------ ------------
Net Earnings $ 12,774 $ 20,529 -37.8%
============ ============
Cash Earnings $ 19,887 $ 27,048 -26.5%
============ ============
Cash Earnings Per Share:
Earnings Per Share $ 0.79 $ 0.67 17.9%
============ ============
Diluted Earnings Per Share:
Earnings Per Share before
extraordinary item $ 0.62 $ 0.51 21.6%
Extraordinary loss on sale
of subsidiary, net of income
tax benefit (0.30) -
------------ ------------
Earnings Per Share $ 0.32 $ 0.51 -37.2%
============ ============
Weighted Average Common and
Equivalent Shares
Outstanding (000's) 40,234 40,130
============ ============
Applied Power Inc.
Comparative Statement of Earnings
(In thousands, except per share amounts)
Nine Months Ended
May 31, 2000 May 31, 1999 % Change
------------ ------------ --------
Net sales $1,421,669 $ 1,298,119 9.5%
Cost of products sold 995,392 895,607 11.1%
------------ ------------ --------
Gross Profit 426,277 402,512 5.9%
Engineering, selling and
administrative expense 240,338 237,989 1.0%
Contract termination (recovery)
costs (1,446) 7,824
Corporate reorganization expenses 4,449 -
------------ ------------ --------
EBITA 182,936 156,699 16.7%
Amortization of intangible assets 23,746 21,599
Other Expense (Income):
Net financing costs 45,438 46,394
Other - net 108 (1,007)
------------ ------------
Earnings Before Income Taxes 113,644 89,713 26.7%
Income tax expense 42,377 33,498
------------ ------------
Income Before Extraordinary Items 71,267 56,215 26.8%
Extraordinary loss on
extinguishment of debt, net of
income tax benefit of $1.25
million (2,083) -
Extraordinary loss on sale of
subsidiary, net of income tax
benefit of $1.7 million (12,186) -
------------ ------------
Net Earnings $ 56,998 $ 56,215 1.3%
============ ============
Cash Earnings $ 78,337 $ 75,063 4.4%
============ ============
Cash Earnings Per Share:
Earnings Per Share before
extraordinary item $ 2.29 $ 1.86 23.1%
Extraordinary loss on
extinguishment of debt,
net of income tax benefit (0.05) -
------------ ------------
Earnings Per Share $ 2.24 $ 1.86 20.4%
============ ============
Diluted Earnings Per Share:
Earnings Per Share before
extraordinary item $ 1.77 $ 1.40 26.4%
Extraordinary loss on
extinguishment of debt,
net of income tax benefit (0.05) -
Extraordinary loss on sale
of subsidiary, net of
income tax benefit (0.30) -
------------ ------------
Earnings Per Share $ 1.42 $ 1.40 1.4%
============ ============
Weighted Average Common and
Equivalent Shares
Outstanding (000's) 40,302 40,204
============ ============
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion