June 16, 2011 at 07:30 AM EDT
Actuant Reports Improved Third Quarter Results; Raises Fiscal 2011 Guidance and Provides Initial Fiscal 2012 Outlook

Actuant Corporation (NYSE: ATU) today announced results for its third quarter ended May 31, 2011.

Highlights

  • A 46% increase in diluted earnings per share from continuing operations (“EPS”) to $0.51, compared to $0.35 in the prior year quarter (excluding prior year restructuring and tax items - see attached reconciliation of earnings.)
  • Core sales growth in all four segments, resulting in a consolidated 14% year-over-year increase in core revenue (total sales less the impact of acquisitions, divestitures and foreign currency rate changes).
  • Year-over-year operating profit margin expansion of 140 basis points, excluding prior year restructuring costs.
  • Strong cash flow from operations totaling $75 million, putting the Company on track for delivering its full year cash flow target.
  • Completed the previously announced acquisition of Weasler Engineering, Inc. (“Weasler”) after quarter end, strengthening the Engineered Solutions segment.
  • Introduced fiscal 2012 sales and EPS outlook of $1.60-$1.65 billion and $1.80-$2.00, respectively.

Robert C. Arzbaecher, Chairman and CEO of Actuant commented, “Actuant is executing well and delivering terrific results, including another quarter of double digit organic sales growth, margin expansion, higher than expected EPS and healthy cash flow. We reported year-over-year core sales growth in all four segments, with sequential increases in three of the four segments and in excess of 20% year-over-year core growth in both Industrial and Energy. Incremental profits on the higher sales led to year-over-year operating margin expansion of 140 basis points and EPS above the top of our guidance range. We generated robust free cash flow and consistent with our business model, deployed it in growth investments, including the acquisition of Weasler just after quarter-end. It was a strong performance quarter by all measures and we expect that momentum to continue into our fourth quarter and next fiscal year.”

Consolidated Results from Continuing Operations

Consolidated sales for the third quarter were $393 million, 27% higher than the comparable prior year quarter. Core sales increased 14% with acquisitions contributing an additional 9% and the weaker U.S. dollar 4%. Earnings and EPS from continuing operations were $38.4 million and $0.51, respectively, compared to $28.3 million and $0.39 in the comparable prior year quarter. Results for the third quarter of fiscal 2010 included pre-tax restructuring costs as well as net income tax adjustments. Excluding these items, fiscal 2011 third quarter EPS from continuing operations of $0.51 was 46% higher than the $0.35 in the prior year. (See attached reconciliation of earnings.)

Sales for the nine months ended May 31, 2011 were $1,042 million, 23% higher than the $850 million in the comparable prior year period. Excluding the impact of the weaker US dollar (+1%) and acquisitions (+8%), year-to-date core sales increased 14%. Earnings and EPS from continuing operations for the nine months ended May 31, 2011 were $87.2 million, or $1.17 per diluted share, compared to $49.4 million, or $0.69 per diluted share for the comparable prior year period. Year-to-date fiscal 2010 results included pre-tax restructuring costs as well as net income tax adjustments. Excluding these items, current year-to-date EPS of $1.17 was 52% higher than the $0.77 for the comparable prior year period. (See attached reconciliation of earnings.)

Discontinued Operations

Discontinued operations represent the results for the European Electrical business for all periods presented. The $2.0 million ($0.02 per diluted share) third quarter loss primarily reflects post closing adjustments on the European Electrical business sale that took place in the second fiscal quarter.

Segment Results

Industrial Segment

(US $ in millions)

Three Months Ended

May 31,

Nine Months Ended

May 31,

2011 2010 2011 2010
Sales $ 107.8 $ 79.7 $ 284.1 $ 214.3
Operating Profit $ 29.5 $ 20.4 $ 69.9 $ 45.0
Adjusted Operating Profit(1) $ 29.5 $ 20.7 $ 69.9 $ 50.4
Adjusted Operating Profit %(1) 27.4 % 26.0 % 24.6 % 23.5 %

(1) Excludes restructuring costs of $0.3 million and $5.4 million for the three and nine months ended May 31, 2010.

Third quarter fiscal 2011 Industrial segment sales were $108 million, 35% higher than the prior year. Excluding foreign currency rate changes (+4%), and the benefit of the Integrated Solutions (IS) acquisitions (+8%), Industrial segment core sales increased 23%. This compares to year-over-year second quarter core sales growth of 15%. The accelerated year-over-year growth rate was driven by robust global demand across nearly all served markets, the introduction of new products and a focus on higher growth vertical markets. Adjusted operating profit margins also increased sequentially and year-over-year due to incremental volumes and favorable mix.

Energy Segment

(US $ in millions)

Three Months Ended

May 31,

Nine Months Ended

May 31,

2011 2010 2011 2010
Sales $ 78.0 $ 56.6 $ 210.3 $ 174.6
Operating Profit $ 13.5 $ 7.2 $ 32.2 $ 22.5
Adjusted Operating Profit(2) $ 13.5 $ 7.3 $ 32.2 $ 24.4
Adjusted Operating Profit %(2) 17.4 % 12.9 % 15.3 % 14.0 %

(2) Excludes restructuring costs of $0.1 million and $1.9 million for the three and nine months ended May 31, 2010.

Fiscal 2011 third quarter year-over-year Energy segment sales increased 38% to $78 million. Excluding the 9% contribution from acquisitions and 7% from foreign currency rate changes, core sales increased 22% due primarily to higher activity levels across virtually all of the segment’s primary markets, reflecting increased capital and maintenance related spending globally. Current year third quarter adjusted operating profit margins improved 450 basis points year-over-year due to operating leverage on the higher volumes.

Electrical Segment

(US $ in millions)

Three Months Ended

May 31,

Nine Months Ended

May 31,

2011 2010 2011 2010
Sales $ 80.3 $ 62.0 $ 205.9 $ 171.0
Operating Profit $ 5.5 $ 6.8 $ 14.2 $ 13.4
Adjusted Operating Profit(3) $ 5.5 $ 7.3 $ 14.2 $ 16.9
Adjusted Operating Profit %(3) 6.8 % 11.8 % 6.9 % 9.9 %

(3) Excludes restructuring costs of $0.5 million and $3.5 million for the three and nine months ended May 31, 2010.

Electrical segment fiscal 2011 third quarter sales were $80 million, 30% higher than the comparable prior year quarter. Excluding foreign currency rate changes (+1%) and the Mastervolt acquisition (+26%), core sales increased 3%, with growth in the North American marine, utility and OEM markets. Results from Mastervolt, which was acquired in December 2010, reflect marine market sales in line with expectations but weaker than expected solar inverter product sales due to European feed-in-tariff reductions and high channel inventory levels. Third quarter adjusted operating profit and margins were adversely impacted on a segment level basis due to solar market weakness which is expected to continue into the fourth fiscal quarter.

Engineered Solutions Segment

(US $ in millions)

Three Months Ended

May 31,

Nine Months Ended

May 31,

2011 2010 2011 2010
Sales $ 126.7 $ 111.7 $ 341.6 $ 290.3
Operating Profit $ 20.0 $ 13.2 $ 47.2 $ 22.2
Adjusted Operating Profit(4) $ 20.0 $ 13.6 $ 47.2 $ 25.0
Adjusted Operating Profit %(4) 15.8 % 12.1 % 13.8 % 8.6 %

(4) Excludes restructuring costs of $0.4 million and $2.8 million for the three and nine months ended May 31, 2010.

Third quarter fiscal 2011 Engineered Solutions segment sales increased 13% from the prior year to $127 million. Excluding the impact of the weaker U.S. dollar (+4%), year-over-year core sales grew 9%. This increase reflects strong demand from the global heavy-duty truck, agriculture, construction equipment and defense markets. As expected, year-over-year segment sales growth moderated sequentially, reflecting more difficult prior year comparisons and a decline in convertible top actuation revenues due to the anniversary of prior year new vehicle launches. Third quarter adjusted operating margins increased 370 basis points year-over-year due to margin leverage on the higher volumes and operational improvements.

Corporate

Corporate expenses for the third quarter of fiscal 2011 were $10.5 million. The approximate $3 million year-over-year increase results from training expenditures, growth and innovation initiative spending and provisions for idle facility holding costs.

Financial Position

Net debt at May 31, 2011 was $399 million (total debt of $467 million less $68 million of cash), a decrease of $69 million from the beginning of the quarter as the Company’s strong third quarter free cash flow was used to reduce revolver borrowings. In early June 2011, the Company deployed approximately $155 million of capital to fund the Weasler acquisition. Total quarter-end availability under the Company’s $600 million revolver, including the Weasler acquisition, was approximately $445 million at May 31, 2011.

Outlook

Arzbaecher continued, “Through the first nine months of fiscal 2011, Actuant has delivered strong financial results while simultaneously investing for future growth. We expect this momentum to continue into the fourth quarter and fiscal 2012. Given our strong third quarter results and the acquisition of Weasler, we have increased our full year fiscal 2011 sales guidance to $1.43-$1.44 billion. Our expectation is that Weasler will be EPS neutral in the fourth fiscal quarter due to one-time transaction costs and purchase accounting charges. However, we have raised our full year EPS guidance to $1.60-$1.65 to take into account current business momentum, including higher than expected third quarter earnings. We continue to forecast free cash flow in the $140-$150 million range for the fiscal year.

Based on our evaluation of both broad economic indicators and Actuant’s current business trends, we anticipate our businesses will continue to expand in fiscal 2012, but at a moderating growth rate as the year progresses. On a consolidated basis, we expect core growth in the range of 5%-8% for the full year with our later cycle energy and infrastructure end markets showing the most growth. The fiscal 2011 Mastervolt and Weasler acquisitions will also contribute to fiscal 2012 growth. Excluding future acquisitions, we are projecting fiscal 2012 EPS of $1.80-$2.00 on sales of approximately $1.60-$1.65 billion. Projected free cash flow for fiscal 2012 is $155-$165 million.

We remain committed to executing our proven business model which has rewarded shareholders, employees and stakeholders over the past decade with a strong track record of sales, earnings and cash flow growth.”

Conference Call Information

An investor conference call is scheduled for 10am CT today, June 16, 2011. Webcast information and conference call materials will be made available on the Actuant company website (www.actuant.com) prior to the start of the call.

Safe Harbor Statement

Certain of the above comments represent forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act 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 activity on the economy, continued market acceptance of the Company’s new product introductions, the successful integration of acquisitions, restructuring, operating margin 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 Form 10-K filed with the Securities and Exchange Commission for further information regarding risk factors. Actuant disclaims any obligation to publicly update or revise any forward-looking statements as a result of new information, future events or any other reason.

About Actuant Corporation

Actuant Corporation is a diversified industrial company with operations in more than 30 countries. The Actuant businesses are leaders in a broad array of niche markets including branded hydraulic and electrical tools and supplies; specialized products and services for energy markets and highly engineered position and motion control systems. The Company was founded in 1910 and is headquartered in Menomonee Falls, Wisconsin. Actuant trades on the NYSE under the symbol ATU. For further information on Actuant and its businesses, visit the Company's website at www.actuant.com.

(tables follow)

Actuant Corporation
Condensed Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited)
May 31,August 31,
20112010
ASSETS
Current assets
Cash and cash equivalents $ 68,299 $ 40,222
Accounts receivable, net 233,620 185,693
Inventories, net 213,265 146,154
Deferred income taxes 33,011 30,701
Other current assets 25,144 12,578
Current assets of discontinued operations - 44,802
Total current assets 573,339 460,150
Property, plant and equipment, net 110,769 108,382
Goodwill 812,095 704,889
Other intangible assets, net 419,395 336,978
Other long-term assets 13,617 11,304
Total assets $ 1,929,215 $ 1,621,703
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings $ - $ -
Trade accounts payable 172,252 130,051
Accrued compensation and benefits 55,840 53,212
Current maturities of long-term debt 1,250 -
Income taxes payable 58,749 50,318
Other current liabilities 75,852 74,561
Current liabilities of discontinued operations - 37,695
Total current liabilities 363,943 345,837
Long-term debt 465,966 367,380
Deferred income taxes 131,881 110,230
Pension and postretirement benefit accruals 27,723 28,072
Other long-term liabilities 61,839 30,463
Shareholders' equity
Capital stock 13,724 13,610
Additional paid-in capital (157,290 ) (175,157 )
Retained earnings 1,038,558 968,373
Accumulated other comprehensive loss (17,129 ) (67,105 )
Stock held in trust (2,081 ) (1,934 )
Deferred compensation liability 2,081 1,934
Total shareholders' equity 877,863 739,721
Total liabilities and shareholders' equity $ 1,929,215 $ 1,621,703

Actuant Corporation
Condensed Consolidated Statements of Earnings
(Dollars in thousands except per share amounts)
(Unaudited)
Three Months EndedNine Months Ended
May 31,May 31,May 31,May 31,
2011201020112010
Net sales $ 392,777 $ 310,068 $ 1,041,887 $ 850,146
Cost of products sold 238,739 193,882 640,969 537,474
Gross profit 154,038 116,186 400,918 312,672
Selling, administrative and engineering expenses 89,166 70,806 244,453 212,421
Amortization of intangible assets 6,871 5,285 19,846 16,071
Operating profit 58,001 40,095 136,619 84,180
Financing costs, net 7,850 7,782 23,640 24,115
Other expense (income), net 331 314 1,276 362

Earnings from continuing operations before income tax expense

49,820 31,999 111,703 59,703
Income tax expense 11,460 3,706 24,540 10,255
Earnings from continuing operations 38,360 28,293 87,163 49,448
Loss from discontinued operations, net of income taxes (2,002 ) (6,458 ) (16,986 ) (8,602 )
Net earnings $ 36,358 $ 21,835 $ 70,177 $ 40,846
Earnings from continuing operations per share
Basic $ 0.56 $ 0.42 $ 1.28 $ 0.73
Diluted 0.51 0.39 1.17 0.69
Earnings per share
Basic $ 0.53 $ 0.32 $ 1.03 $ 0.60
Diluted 0.49 0.30 0.95 0.57
Weighted average common shares outstanding
Basic 68,354 67,642 68,208 67,593
Diluted 75,571 74,389 75,314 74,156

Actuant Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months EndedNine Months Ended
May 31,May 31,May 31,May 31,
2011201020112010
Operating Activities
Net earnings $ 36,358 $ 21,835 $ 70,177 $ 40,846
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Depreciation and amortization 12,959 12,064 38,143 39,079
Net loss (gain) on disposal of businesses 2,002 - 15,744 (334 )
Stock-based compensation expense 3,280 2,146 8,093 6,044
Provision (benefit) for deferred income taxes (908 ) 155 (2,298 ) 682
Amortization of debt discount and debt issuance costs 495 1,005 2,409 2,964
Other non-cash adjustments 28 (295 ) (18 ) (707 )
Changes in components of working capital and other:
Accounts receivable (18,726 ) (16,592 ) (27,752 ) (28,555 )
Expiration of accounts receivable securitization program - - - (37,106 )
Inventories (13,964 ) 1,460 (39,533 ) (3,899 )
Prepaid expenses and other assets 1,939 84 5,989 2,372
Trade accounts payable 24,704 12,591 18,400 24,680
Income taxes payable 1,634 5,701 6,904 9,235
Accrued compensation and benefits 10,065 8,701 646 16,994
Other accrued liabilities 14,936 2,835 (1,806 ) (2,721 )
Net cash provided by operating activities 74,802 51,690 95,098 69,574
Investing Activities
Proceeds from sale of property, plant and equipment 93 390 359 1,073
Proceeds from sale of businesses, net of transaction costs - - 3,463 7,516
Capital expenditures (6,552 ) (6,437 ) (14,843 ) (13,213 )
Business acquisitions, net of cash acquired (1,514 ) (27,248 ) (160,047 ) (29,248 )
Net cash used in investing activities (7,973 ) (33,295 ) (171,068 ) (33,872 )
Financing Activities
Net borrowings (repayments) on revolving credit facilities (41,155 ) (11,579 ) 14 182
Issuance of term loan - - 100,000 -
Repurchases of 2% Convertible Notes - - (34 ) (22,894 )
Debt issuance costs - - (5,197 ) -
Stock option exercises and related tax benefits 472 682 7,285 1,692
Cash dividend - - (2,716 ) (2,702 )
Net cash provided by (used in) financing activities (40,683 ) (10,897 ) 99,352 (23,722 )
Effect of exchange rate changes on cash 1,753 (927 ) 4,695 (1,084 )
Net increase in cash and cash equivalents 27,899 6,571 28,077 10,896
Cash and cash equivalents - beginning of period 40,400 15,710 40,222 11,385
Cash and cash equivalents - end of period $ 68,299 $ 22,281 $ 68,299 $ 22,281

ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA FROM CONTINUING OPERATIONS
(Dollars in thousands)
FISCAL 2010 (1)FISCAL 2011 (1)
Q1Q2Q3Q4TOTALQ1Q2Q3Q4TOTAL
SALES
INDUSTRIAL SEGMENT $ 65,308 $ 69,235 $ 79,744 $ 85,696 $ 299,983 $ 87,392 $ 88,935 $ 107,759 $ 284,086
ENERGY SEGMENT 64,065 53,862 56,645 61,151 235,723 70,743 61,587 78,002 210,332
ELECTRICAL SEGMENT 54,065 54,927 61,967 62,743 233,702 55,396 70,176 80,329 205,901
ENGINEERED SOLUTIONS SEGMENT 89,202 89,414 111,712 100,772 391,100 104,881 110,000 126,687 341,568
TOTAL $ 272,640 $ 267,438 $ 310,068 $ 310,362 $ 1,160,508 $ 318,412 $ 330,698 $ 392,777 $ - $ 1,041,887
% SALES GROWTH
INDUSTRIAL SEGMENT -28 % -3 % 27 % 39 % 5 % 34 % 28 % 35 % 33 %
ENERGY SEGMENT -13 % -10 % -9 % -4 % -9 % 10 % 14 % 38 % 20 %
ELECTRICAL SEGMENT -20 % -8 % 10 % 7 % -3 % 2 % 28 % 30 % 20 %
ENGINEERED SOLUTIONS SEGMENT -14 % 23 % 46 % 31 % 19 % 18 % 23 % 13 % 18 %
TOTAL -19 % 1 % 20 % 19 % 4 % 17 % 24 % 27 % 23 %
OPERATING PROFIT (LOSS)
INDUSTRIAL SEGMENT $ 13,854 $ 15,847 $ 20,703 $ 21,778 $ 72,182 $ 20,187 $ 20,149 $ 29,517 $ 69,853
ENERGY SEGMENT 11,502 5,615 7,326 8,283 32,726 11,858 6,792 13,545 32,195
ELECTRICAL SEGMENT 4,073 5,539 7,309 7,446 24,367 3,760 4,945 5,462 14,167
ENGINEERED SOLUTIONS SEGMENT 5,481 6,007 13,554 10,242 35,284 13,802 13,425 19,977 47,204
CORPORATE / GENERAL (5,471 ) (5,561 ) (7,351 ) (7,710 ) (26,093 ) (8,035 ) (8,265 ) (10,500 ) (26,800 )
TOTAL - EXCLUDING RESTRUCTURING CHARGES $ 29,439 $ 27,447 $ 41,541 $ 40,039 $ 138,466 $ 41,572 $ 37,046 $ 58,001 $ - $ 136,619
RESTRUCTURING CHARGES (2,831 ) (9,968 ) (1,448 ) (2,447 ) (16,694 ) - - - -
TOTAL $ 26,608 $ 17,479 $ 40,093 $ 37,592 $ 121,772 $ 41,572 $ 37,046 $ 58,001 $ - $ 136,619
OPERATING PROFIT %
INDUSTRIAL SEGMENT 21.2 % 22.9 % 26.0 % 25.4 % 24.1 % 23.1 % 22.7 % 27.4 % 24.6 %
ENERGY SEGMENT 18.0 % 10.4 % 12.9 % 13.5 % 13.9 % 16.8 % 11.0 % 17.4 % 15.3 %
ELECTRICAL SEGMENT 7.5 % 10.1 % 11.8 % 11.9 % 10.4 % 6.8 % 7.0 % 6.8 % 6.9 %
ENGINEERED SOLUTIONS SEGMENT 6.1 % 6.7 % 12.1 % 10.2 % 9.0 % 13.2 % 12.2 % 15.8 % 13.8 %
TOTAL (INCLUDING CORPORATE) - EXCLUDING RESTRUCTURING CHARGES 10.8 % 10.3 % 13.4 % 12.9 % 11.9 % 13.1 % 11.2 % 14.8 % 13.1 %
EBITDA
INDUSTRIAL SEGMENT $ 15,633 $ 16,639 $ 21,632 $ 24,268 $ 78,172 $ 22,449 $ 22,245 $ 31,227 $ 75,921
ENERGY SEGMENT 15,493 10,072 11,353 11,731 48,649 15,745 10,475 16,778 42,998
ELECTRICAL SEGMENT 5,675 6,988 8,632 8,876 30,171 5,067 8,075 8,208 21,350
ENGINEERED SOLUTIONS SEGMENT 8,981 10,168 17,373 14,379 50,901 17,184 16,346 23,878 57,408
CORPORATE / GENERAL (4,771 ) (4,339 ) (6,542 ) (7,252 ) (22,904 ) (7,161 ) (7,709 ) (9,462 ) (24,332 )
TOTAL - EXCLUDING RESTRUCTURING CHARGES $ 41,011 $ 39,528 $ 52,448 $ 52,002 $ 184,989 $ 53,284 $ 49,432 $ 70,629 $ - $ 173,345
RESTRUCTURING CHARGES (2,831 ) (9,968 ) (1,448 ) (2,447 ) (16,694 ) - - - -
TOTAL $ 38,180 $ 29,560 $ 51,000 $ 49,555 $ 168,295 $ 53,284 $ 49,432 $ 70,629 $ - $ 173,345
EBITDA %
INDUSTRIAL SEGMENT 23.9 % 24.0 % 27.1 % 28.3 % 26.1 % 25.7 % 25.0 % 29.0 % 26.7 %
ENERGY SEGMENT 24.2 % 18.7 % 20.0 % 19.2 % 20.6 % 22.3 % 17.0 % 21.5 % 20.4 %
ELECTRICAL SEGMENT 10.5 % 12.7 % 13.9 % 14.1 % 12.9 % 9.1 % 11.5 % 10.2 % 10.4 %
ENGINEERED SOLUTIONS SEGMENT 10.1 % 11.4 % 15.6 % 14.3 % 13.0 % 16.4 % 14.9 % 18.8 % 16.8 %
TOTAL (INCLUDING CORPORATE) - EXCLUDING RESTRUCTURING CHARGES 15.0 % 14.8 % 16.9 % 16.8 % 15.9 % 16.7 % 14.9 % 18.0 % 16.6 %

ACTUANT CORPORATION
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES

(Dollars in thousands, except for per share amounts)

FISCAL 2010 (1)FISCAL 2011 (1)
Q1Q2Q3Q4TOTALQ1Q2Q3Q4TOTAL
OPERATING PROFIT (LOSS), EXCLUDING RESTRUCTURING CHARGES
INDUSTRIAL SEGMENT
OPERATING PROFIT (GAAP MEASURE) $ 13,676 $ 10,937 $ 20,374 $ 21,357 $ 66,344 $ 20,187 $ 20,149 $ 29,517 $ 69,853
RESTRUCTURING CHARGES 178 4,910 329 421 5,838 - - - -
ADJUSTED OPERATING PROFIT (NON-GAAP MEASURE) $ 13,854 $ 15,847 $ 20,703 $ 21,778 $ 72,182 $ 20,187 $ 20,149 $ 29,517 $ - $ 69,853
ENERGY SEGMENT
OPERATING PROFIT (GAAP MEASURE) $ 11,359 $ 3,922 $ 7,203 $ 8,218 $ 30,702 $ 11,858 $ 6,792 $ 13,545 $ 32,195
RESTRUCTURING CHARGES 143 1,693 123 65 2,024 - - - -
ADJUSTED OPERATING PROFIT (NON-GAAP MEASURE) $ 11,502 $ 5,615 $ 7,326 $ 8,283 $ 32,726 $ 11,858 $ 6,792 $ 13,545 $ - $ 32,195
ELECTRICAL SEGMENT
OPERATING PROFIT (GAAP MEASURE) $ 2,186 $ 4,373 $ 6,775 $ 6,519 $ 19,853 $ 3,760 $ 4,945 $ 5,462 $ 14,167
RESTRUCTURING CHARGES 1,887 1,166 534 927 4,514 - -

-

-
ADJUSTED OPERATING PROFIT (NON-GAAP MEASURE) $ 4,073 $ 5,539 $ 7,309 $ 7,446 $ 24,367 $ 3,760 $ 4,945 $ 5,462 $ - $ 14,167
ENGINEERED SOLUTIONS
OPERATING PROFIT (GAAP MEASURE) $ 5,053 $ 3,995 $ 13,170 $ 9,463 $ 31,681 $ 13,802 $ 13,425 $ 19,977 $ 47,204
RESTRUCTURING CHARGES 428 2,012 384 779 3,603 - -

-

-
ADJUSTED OPERATING PROFIT (NON-GAAP MEASURE) $ 5,481 $ 6,007 $ 13,554 $ 10,242 $ 35,284 $ 13,802 $ 13,425 $ 19,977 $ - $ 47,204
CORPORATE
OPERATING LOSS (GAAP MEASURE) $ (5,666 ) $ (5,748 ) $ (7,429 ) $ (7,965 ) $ (26,808 ) $ (8,035 ) $ (8,265 ) $ (10,500 ) $ (26,800 )
RESTRUCTURING CHARGES 195 187 78 255 715 - - - -
ADJUSTED OPERATING LOSS (NON-GAAP MEASURE) $ (5,471 ) $ (5,561 ) $ (7,351 ) $ (7,710 ) $ (26,093 ) $ (8,035 ) $ (8,265 ) $ (10,500 ) $ - $ (26,800 )
NET EARNINGS (LOSS), EXCLUDING RESTRUCTURING CHARGES,
INCOME TAX ADJUSTMENTS AND DISCONTINUED OPERATIONS (2)
NET EARNINGS (LOSS) (GAAP MEASURE) $ 11,854 $ 7,157 $ 21,835 $ (16,814 ) $ 24,031 $ 25,890 $ 7,929 $ 36,358 $ 70,177
RESTRUCTURING CHARGES, NET OF INCOME TAX 1,804 6,863 1,069 1,938 11,674 - - - -
INCOME TAX ADJUSTMENTS - - 632 - 632 - - - -
DISCONTINUED OPERATIONS, NET OF INCOME TAX 1,406 738 1,853 37,723 41,720 771 14,213 2,002 16,986
$ 15,064 $ 14,758 $ 25,389 $ 22,847 $ 78,057 $ 26,661 $ 22,142 $ 38,360 $ - $ 87,163
DILUTED EARNINGS (LOSS) PER SHARE, EXCLUDING RESTRUCTURING
CHARGES, INCOME TAX ADJUSTMENTS, AND DISCONTINUED
OPERATIONS (2)
NET EARNINGS (LOSS) (GAAP MEASURE) $ 0.17 $ 0.10 $ 0.30 $ (0.22 ) $ 0.35 $ 0.35 $ 0.11 $ 0.49 $ 0.95
RESTRUCTURING CHARGES, NET OF INCOME TAX 0.02 0.10 0.01 0.02 0.16 - - - -
INCOME TAX ADJUSTMENTS - - 0.01 - 0.01 - - - -
DISCONTINUED OPERATIONS, NET OF INCOME TAX 0.02 0.01 0.03 0.51 0.56 0.01 0.19 0.02 0.22
TOTAL (NON-GAAP MEASURE) $ 0.21 $ 0.21 $ 0.35 $ 0.31 $ 1.08 $ 0.36 $ 0.30 $ 0.51 $ - $ 1.17
EBITDA (3)
NET EARNINGS (LOSS) (GAAP MEASURE) $ 11,854 $ 7,157 $ 21,835 $ (16,814 ) $ 24,031 $ 25,890 $ 7,929 $ 36,358 $ 70,177
FINANCING COSTS, NET 8,538 7,798 7,779 7,744 31,859 7,552 8,238 7,850 23,640
INCOME TAX EXPENSE 4,529 2,020 3,706 8,590 18,846 6,911 6,169 11,460 24,540
DEPRECIATION & AMORTIZATION 11,853 11,847 11,222 12,312 47,234 12,160 12,883 12,959 38,002
DISCONTINUED OPERATIONS, NET OF INCOME TAX 1,406 738 6,458 37,723 46,325 771 14,213 2,002 16,986
EBITDA (NON-GAAP MEASURE) $ 38,180 $ 29,560 $ 51,000 $ 49,555 $ 168,295 $ 53,284 $ 49,432 $ 70,629 $ - $ 173,345
RESTRUCTURING CHARGES 2,831 9,968 1,448 2,447 16,694 - - - -
EBITDA (NON-GAAP MEASURE) - EXCLUDING DISCONTINUED
OPERATIONS AND RESTRUCTURING CHARGES $ 41,011 $ 39,528 $ 52,448 $ 52,002 $ 184,989 $ 53,284 $ 49,432 $ 70,629 $ - $ 173,345

ACTUANT CORPORATION
FOOTNOTES FOR SUPPLEMENTAL UNAUDITED DATA AND RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
(Dollars in thousands, except for per share amounts)
FOOTNOTES
NOTE: The total of the individual quarters may not equal the annual total due to rounding.
(1)

As a result of the global economic downturn in 2009, the Company implemented various restructuring initiatives aimed at reducing its cost structure and improving operational performance.  These restructuring actions were substantially completed at August 31, 2010.  Fiscal 2011 first, second and third quarter operating results include $461, $359 and $862 of restructuring charges, respectively, which are included in segment operating profit, EBITDA and earnings per share, as the amounts are not significant.  However, fiscal 2010 operating profit, EBITDA and earnings per share amounts exclude restructuring charges for comparability purposes.

A summary of restructuring charges included in cost of products sold is as follows:
FISCAL 2010FISCAL 2011
Q1Q2Q3Q4TOTALQ1Q2Q3Q4TOTAL
Restructuring - cost of products sold $ 54 $ 692 $ 92 $ 259 $ 1,097 $ - $ - $ - $ - $ -
(2)

Net earnings and diluted earnings per share excluding restructuring charges (2010 only), income tax adjustments and discontinued operations represent net earnings and diluted earnings per share per the Condensed Consolidated Statements of Earnings net of charges or credits for items to be highlighted for comparability purposes.  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.  The total of the individual components may not equal due to rounding.

(3)

EBITDA represents net earnings before financing costs, net, income tax expense, depreciation & amortization and discontinued operations.  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 Condensed 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 reviews this as a measure of the company's ability to incur and service debt.  In addition, EBITDA is used by many of our investors and lenders, and is presented as a convenience to them.  However, the EBITDA measure presented may not always be comparable to similarly titled measures reported by other companies due to differences in the components of the calculation.  The total of the individual quarters may not equal the annual total due to rounding.

Contacts:

Actuant Corporation
Karen Bauer
Communications & Investor Relations Leader
262-293-1562
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