Applied Power announces first quarter earnings.MILWAUKEE--(BUSINESS WIRE)--Dec. 19, 1996--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 ) reported record sales and earnings for the first quarter ended November November: see month. 30, 1996. Net earnings were $9.5 million, or $0.67 per share, a 22 percent improvement from the $7.7 million, or $0.55 per share, reported for the same period last year. This is the thirteenth consecutive quarter in which earnings per share growth has been 20 percent or better. Sales for the first quarter of the current year were $153.1 million, an increase of 10 percent over the $139.3 million reported in fiscal year 1996. Excluding the effect of the stronger dollar, sales grew by 12 percent. Year-over-year 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. improved from 38.8 percent to 39.6 percent, and 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 from 10.2 percent to 12.0 percent. The Company is renaming its Wright Line segment to Technical Environments and Enclosures ("TEE"). This segment combines Wright Line with the recently acquired Everest Electronic Enclosures business. Both businesses share some common products and manufacturing. The Wright Line business is focused on selling technical environments and standard electronic enclosures directly to end users, while the Everest business sells custom enclosures primarily to electronic equipment OEMs. All of the Company's segments reported improved profits on a year-over-year basis. TEE profits grew 72 percent on a strong 46 percent sales growth. Engineered Solutions ("ES") profits grew 22 percent on a sales reduction of 7 percent. Excluding the effect of the mobile equipment valve line sold last January January: see month. and the effect of the Cadillac Cadillac expensive automobile and status symbol. [Trademarks: Crowley Trade, 83] See : Luxury valve contract which ended in June June: see month. , sales in ES grew at a modest level. Distributed Products ("DP") profits grew 6 percent on a sales growth of 9 percent. The Company's debt increased $44.1 million during the quarter, primarily as a result of the acquisition of the Everest business. At November 30, 1996, outstanding debt totaled $136.7 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 42 percent. Applied Power is a global company comprised of three business segments. Engineered Solutions supplies components and systems based on hydraulic 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. Distributed Products provides industrial and electrical tools and consumables through various distributor and retail channels worldwide. Technical Environments and Enclosures expertise is in configuring technical equipment for end users and in providing enclosures for electronic equipment OEMs. -0-
Applied Power Inc.
Comparative Statement of Earnings
(In Thousands, Except per Share Amounts)
Three Months Ended November 30,
_______________________________
1996 1995
______________ ______________
Sales $ 153,09 $ 139,270
Cost of Goods Sold 92,458 85,189
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Gross Profit 60,638 54,081
Engineering, Selling and
Administrative Expense 42,235 39,856
______________ ______________
Operating Profit 18,403 14,225
Other Expense
Interest Expense (Net) 2,625 2,067
Amortization of Intangibles 1,498 720
Other (Net) (66) 100
______________ ______________
Earnings Before Income Taxes 14,346 11,338
Income Tax Expense 4,806 3,628
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Net Earnings $ 9,540 $ 7,710
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______________ ______________
Earnings per Share $ 0.67 $ 0.55
Average Shares Outstanding 14,186 13,993
Applied Power Inc.
Comparative Balance Sheet
(Dollars in Thousands)
November 30, August 31,
1996 1996
____________ __________
CURRENT ASSETS
Cash and Cash Equivalents $ 1,894 $ 1,001
Accounts Receivable 69,893 68,747
Inventories 123,538 120,648
Prepaid Expenses 16,390 16,758
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Total Current Assets 211,715 207,154
Other Assets 6,735 6,370
Goodwill 100,966 58,266
Intangible Assets 32,920 33,464
Property, Plant & Equipment
Gross Property, Plant & Equipment 174,308 168,125
Less: Accumulated Depreciation (95,442) (91,889)
____________ __________
Net Property, Plant & Equipment 78,866 76,236
____________ __________
TOTAL ASSETS $ 431,202 $ 381,490
____________ __________
____________ __________
LIABILITIES AND SHAREHOLDERS' EQUITY
Short-term Borrowings $ 20,885 $ 15,818
Trade Accounts Payable 38,910 41,397
Accrued Compensation and Benefits 17,525 20,805
Income Taxes Payable 7,431 8,344
Other Current Liabilities 23,850 22,378
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Total Current Liabilities 108,601 108,742
Long-term Debt, Less Current Portion 115,847 76,798
Deferred Income Taxes 13,930 14,381
Other Long-term Liabilities 14,682 13,114
SHAREHOLDERS' EQUITY
Common Stock 2,749 2,730
Additional Paid-in Capital 35,912 34,383
Retained Earnings 135,520 126,392
Cumulative Translation Adjustments 3,961 4,950
____________ __________
Total Shareholders' Equity 178,142 168,455
____________ __________
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 431,202 $ 381,490
____________ __________
____________ __________
CONTACT: Applied Power Inc., 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. 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, 414/781-6600 |
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