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Actuant Reports Fourth Quarter And Full Year Fiscal 2012 Results

Stocks in this article: ATU

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)
   
August 31, August 31,
2012 2011
 
ASSETS
Current assets
Cash and cash equivalents $ 68,184 $ 44,221
Accounts receivable, net 234,756 223,760
Inventories, net 211,690 223,235
Deferred income taxes 22,583 34,830
Other current assets   24,068     22,807  
Total current assets 561,281 548,853
 
Property, plant and equipment, net 115,884 128,649
Goodwill 866,412 888,466
Other intangible assets, net 445,884 479,406
Other long-term assets   17,658     17,843  
 
Total assets $ 2,007,119   $ 2,063,217  
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Trade accounts payable $ 174,746 $ 170,084
Accrued compensation and benefits 58,817 71,639
Short term borrowings and current maturities of debt 7,500 2,690
Income taxes payable 5,778 19,342
Other current liabilities   72,165     66,770  
Total current liabilities 319,006 330,525
 
Long-term debt 390,000 522,727
Deferred income taxes 132,653 172,259
Pension and postretirement benefit accruals 26,442 18,864
Other long-term liabilities 87,182 99,829
 
Shareholders' equity
Capital stock 15,102 13,731
Additional paid-in capital 7,725 (154,231 )
Treasury stock (63,083 ) -
Retained earnings 1,161,564 1,077,192
Accumulated other comprehensive loss (69,472 ) (17,679 )
Stock held in trust (2,689 ) (2,137 )
Deferred compensation liability   2,689     2,137  
Total shareholders' equity   1,051,836     919,013  
 
Total liabilities and shareholders' equity $ 2,007,119   $ 2,063,217  
 

Actuant Corporation
Condensed Consolidated Statements of Operations
(Dollars in thousands except per share amounts)
(Unaudited)
       
Three Months Ended Twelve Months Ended
August 31, August 31, August 31, August 31,
2012   2011 2012   2011
 
Net sales $ 405,304 $ 403,436 $ 1,605,342 $ 1,445,323
Cost of products sold   247,953       248,455   987,971     889,424  
Gross profit 157,351 154,981 617,371 555,899
 
Selling, administrative and engineering expenses 91,756 90,409 355,691 334,862
Impairment charge 62,464 - 62,464 -
Amortization of intangible assets   7,590       7,621  

29,274

    27,467  
Operating profit (loss) (4,459 ) 56,951

169,942

193,570
 
Financing costs, net 6,281 8,479 29,560 32,119
Debt refinancing charges - - 16,830 -
Other expense, net   148       968   3,238     2,244  

Earnings (loss) from continuing operations before income tax expense

(10,888 ) 47,504

120,314

159,207
 
Income tax expense   5,572       10,171  

33,024

    34,711  
Earnings (loss) from continuing operations (16,460 ) 37,333

87,290

124,496
Income (loss) from discontinued operations, net of income taxes   -       4,049   -     (12,937 )
Net earnings (loss) $ (16,460 )   $ 41,382 $

87,290

  $ 111,559  
 
Earnings (loss) from continuing operations per share
Basic $ (0.23 ) $ 0.55 $ 1.25 $ 1.82
Diluted (0.23 ) 0.50 1.17 1.68
 
Earnings (loss) per share
Basic $ (0.23 ) $ 0.61 $ 1.25 $ 1.63
Diluted (0.23 ) 0.55 1.17 1.50
 
Weighted average common shares outstanding
Basic 72,846 68,391 70,099 68,254
Diluted 72,846 75,279 74,940 75,305
 

Actuant Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
       
Three Months Ended Twelve Months Ended
August 31, August 31, August 31, August 31,
2012 2011 2012 2011
 
Operating Activities
Net earnings (loss) $ (16,460 ) $ 41,382 $

87,290

$ 111,559
Adjustments to reconcile net earnings (loss) to net cash provided by
operating activities:
Depreciation and amortization 14,071 14,853

54,263

52,996
Net loss on disposal of businesses - (4,049 ) - 11,695
Stock-based compensation expense 3,344 2,665 13,346 10,758
Provision (benefit) for deferred income taxes (8,387 ) 8,778 (10,524 ) 6,480
Impairment charge 62,464 - 62,464 -
Amortization of debt discount and debt issuance costs 498 495 1,990 2,904
Non-cash debt refinance charge - - 2,254 -
Other non-cash adjustments 139 (28 ) - (46 )
Changes in components of working capital and other:
Accounts receivable 9,382 24,731 (12,310 ) (2,564 )
Inventories 2,361 9,647 11,532 (29,909 )
Prepaid expenses and other assets (3,235 ) 344 (2,164 ) 5,876
Trade accounts payable 3,123 (11,242 ) 5,902 7,158
Income taxes payable (15,847 ) (2,749 ) (17,903 ) 4,155
Accrued compensation and benefits 2,474 11,532 (6,292 ) 12,178
Other accrued liabilities   (912 )   (19,891 )  

(7,519

)   (21,674 )
Net cash provided by operating activities 53,015 76,468 182,329 171,566
 
Investing Activities
Proceeds from sale of property, plant and equipment 15 1,420 8,501 1,779
Proceeds from sale of businesses, net of transaction costs - - - 3,463
Capital expenditures (5,249 ) (8,253 ) (22,740 ) (23,096 )
Business acquisitions, net of cash acquired   (40,533 )   (153,409 )   (70,267 )   (313,456 )
Net cash used in investing activities (45,767 ) (160,242 ) (84,506 ) (331,310 )
 
Financing Activities
Net borrowings (repayments) on revolving credit facilities and other debt - 58,190 (58,167 ) 58,204
Issuance of term loan - - - 100,000
Principal repayments on term loan (1,250 ) - (2,500 ) -
Repurchases of 2% Convertible Notes - - (102 ) (34 )
Proceeds on 5.625% Senior Note issuance - - 300,000 -
Redemption of 6.875% Senior Notes - - (250,000 ) -
Debt issuance costs (150 ) - (5,490 ) (5,197 )
Purchase of treasury shares (23,801 ) - (63,083 ) -
Stock option exercises and related tax benefits 4,521 950 10,913 8,235
Cash dividend   -     -     (2,748 )   (2,716 )
Net cash provided by (used in) financing activities (20,680 ) 59,140 (71,177 ) 158,492
 
Effect of exchange rate changes on cash   1,467     556     (2,683 )   5,251  
Net increase (decrease) in cash and cash equivalents (11,965 ) (24,078 ) 23,963 3,999
Cash and cash equivalents - beginning of period   80,149     68,299     44,221     40,222  
Cash and cash equivalents - end of period $ 68,184   $ 44,221   $ 68,184   $ 44,221  
 

ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA FROM CONTINUING OPERATIONS
(Dollars in thousands)
                   
FISCAL 2011 FISCAL 2012
Q1   Q2   Q3   Q4   TOTAL Q1   Q2   Q3   Q4   TOTAL
SALES
INDUSTRIAL SEGMENT $ 87,392 $ 88,935 $ 107,759 $ 108,927 $ 393,013 $ 100,253 $ 98,342 $ 110,102 $ 110,598 $ 419,295
ENERGY SEGMENT 70,743 61,587 78,002 82,728 293,060 80,421 78,937 96,399 93,406 349,163
ELECTRICAL SEGMENT 55,396 70,176 80,329 80,112 286,013 82,833 77,105 85,947 82,936 328,821
ENGINEERED SOLUTIONS SEGMENT   104,881       110,000       126,687       131,669       473,237     129,292       123,640       136,767       118,364       508,063  
TOTAL $ 318,412     $ 330,698     $ 392,777     $ 403,436     $ 1,445,323   $ 392,799     $ 378,024     $ 429,215     $ 405,304     $ 1,605,342  
 
% SALES GROWTH
INDUSTRIAL SEGMENT 34 % 28 % 35 % 27 % 31 % 15 % 11 % 2 % 2 % 7 %
ENERGY SEGMENT 10 % 14 % 38 % 35 % 24 % 14 % 28 % 24 % 13 % 19 %
ELECTRICAL SEGMENT 2 % 28 % 30 % 28 % 22 % 50 % 10 % 7 % 4 % 15 %
ENGINEERED SOLUTIONS SEGMENT 18 % 23 % 13 % 31 % 21 % 23 % 12 % 8 % -10 % 7 %
TOTAL 17 % 24 % 27 % 30 % 25 % 23 % 14 % 9 % 0 % 11 %
 
OPERATING PROFIT (LOSS)
INDUSTRIAL SEGMENT $ 20,187 $ 20,149 $ 29,517 $ 28,562 $ 98,415 $ 27,933 $ 26,690 $ 30,681 $ 29,473 $

114,777

ENERGY SEGMENT 11,858 6,792 13,545 17,150 49,345 13,217 11,632 18,515 18,841 62,205
ELECTRICAL SEGMENT 3,760 4,945 5,462 6,516 20,683 4,977 5,801 8,814 8,300 27,892
ENGINEERED SOLUTIONS SEGMENT 13,802 13,425 19,977 16,408 63,612 18,999 13,281 18,467 10,104 60,851
CORPORATE / GENERAL   (8,035 )     (8,265 )     (10,500 )     (11,685 )     (38,485 )   (7,845 )     (7,948 )     (8,813 )     (8,713 )     (33,319 )
TOTAL - EXCLUDING IMPAIRMENT CHARGE $ 41,572 $ 37,046 $ 58,001 $ 56,951 $ 193,570 $ 57,281 $ 49,456 $ 67,664 $ 58,005 $

232,406

IMPAIRMENT CHARGE   -       -       -       -       -     -       -       -       (62,464 )     (62,464 )
TOTAL $ 41,572     $ 37,046     $ 58,001     $ 56,951     $ 193,570   $ 57,281     $ 49,456     $ 67,664     $ (4,459 )   $

169,942

 
 
OPERATING PROFIT %
INDUSTRIAL SEGMENT 23.1 % 22.7 % 27.4 % 26.2 % 25.0 % 27.9 % 27.1 % 27.9 % 26.6 % 27.4 %
ENERGY SEGMENT 16.8 % 11.0 % 17.4 % 20.7 % 16.8 % 16.4 % 14.7 % 19.2 % 20.2 % 17.8 %
ELECTRICAL SEGMENT 6.8 % 7.0 % 6.8 % 8.1 % 7.2 % 6.0 % 7.5 % 10.3 % 10.0 % 8.5 %
ENGINEERED SOLUTIONS SEGMENT 13.2 % 12.2 % 15.8 % 12.5 % 13.4 % 14.7 % 10.7 % 13.5 % 8.5 % 12.0 %
TOTAL (INCLUDING CORPORATE) - EXCLUDING IMPAIRMENT CHARGE 13.1 % 11.2 % 14.8 % 14.1 % 13.4 % 14.6 % 13.1 % 15.8 % 14.3 % 14.5 %
 
EBITDA
INDUSTRIAL SEGMENT $ 22,449 $ 22,245 $ 31,227 $ 30,680 $ 106,601 $ 29,220 $ 29,116 $ 32,070 $ 31,774 $ 122,180
ENERGY SEGMENT 15,745 10,475 16,778 21,488 64,486 18,243 15,601 22,216 23,166 79,226
ELECTRICAL SEGMENT 5,067 8,075 8,208 9,390 30,740 7,705 8,697 11,444 10,969 38,815
ENGINEERED SOLUTIONS SEGMENT 17,184 16,346 23,878 20,046 77,454 22,213 16,762 21,418 13,991 74,384
CORPORATE / GENERAL   (7,161 )     (7,709 )     (9,462 )     (10,769 )     (35,101 )   (7,217 )     (7,479 )     (8,506 )     (7,972 )     (31,174 )
TOTAL - EXCLUDING IMPAIRMENT CHARGE $ 53,284 $ 49,432 $ 70,629 $ 70,835 $ 244,180 $ 70,164 $ 62,697 $ 78,642 $ 71,928 $ 283,431
IMPAIRMENT CHARGE   -       -       -       -       -     -       -       -       (62,464 )     (62,464 )
TOTAL $ 53,284     $ 49,432     $ 70,629     $ 70,835     $ 244,180   $ 70,164     $ 62,697     $ 78,642     $ 9,464     $ 220,967  
 
EBITDA %
INDUSTRIAL SEGMENT 25.7 % 25.0 % 29.0 % 28.2 % 27.1 % 29.1 % 29.6 % 29.1 % 28.7 % 29.1 %
ENERGY SEGMENT 22.3 % 17.0 % 21.5 % 26.0 % 22.0 % 22.7 % 19.8 % 23.0 % 24.8 % 22.7 %
ELECTRICAL SEGMENT 9.1 % 11.5 % 10.2 % 11.7 % 10.7 % 9.3 % 11.3 % 13.3 % 13.2 % 11.8 %
ENGINEERED SOLUTIONS SEGMENT 16.4 % 14.9 % 18.8 % 15.2 % 16.4 % 17.2 % 13.6 % 15.7 % 11.8 % 14.6 %
TOTAL (INCLUDING CORPORATE) - EXCLUDING IMPAIRMENT CHARGE 16.7 % 14.9 % 18.0 % 17.6 % 16.9 % 17.9 % 16.6 % 18.3 % 17.7 % 17.7 %
 

ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA FROM CONTINUING OPERATIONS
RECONCILIATION OF GAAP MEASURE TO NON-GAAP MEASURES
(Dollars in thousands, except for per share amounts)
 
FISCAL 2011   FISCAL 2012
Q1   Q2   Q3   Q4   TOTAL Q1   Q2   Q3   Q4   TOTAL
EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE SPECIAL ITEMS (1)                
NET EARNINGS (LOSS) $ 25,890 $ 7,929 $ 36,358 $ 41,382 $ 111,559 $ 37,174 $ 32,175 $ 34,401 $ (16,460 ) $

87,290

DISCONTINUED OPERATIONS, NET OF INCOME TAX 771 14,213 2,002 (4,049 ) 12,937 - - - - -
DEBT REFINANCING CHARGES, NET OF INCOME TAX - - - - - - - 10,482 - 10,482
IMPAIRMENT CHARGE, NET OF INCOME TAX   -     -     -     -       -   -     -     -     57,088       57,088
TOTAL $ 26,661   $ 22,142   $ 38,360   $ 37,333     $ 124,496 $ 37,174   $ 32,175   $ 44,883   $ 40,628     $

154,860

 

 

DILUTED EARNINGS (LOSS) PER SHARE, FROM
CONTINUING OPERATIONS BEFORE SPECIAL ITEMS (1)(3)
NET EARNINGS (LOSS) $ 0.35 $ 0.11 $ 0.49 $ 0.55 $ 1.50 $ 0.50 $ 0.43 $ 0.45 $ (0.23 ) $ 1.17
DISCONTINUED OPERATIONS, NET OF INCOME TAX 0.01 0.19 0.02 (0.05 ) 0.18 - - - - -
DEBT REFINANCING CHARGES, NET OF INCOME TAX - - - - - - - 0.15 - 0.15
IMPAIRMENT CHARGE, NET OF INCOME TAX   -     -     -     -       -   -     -     -     0.77       0.76
TOTAL $ 0.36   $ 0.30   $ 0.51   $ 0.50     $ 1.68 $ 0.50   $ 0.43   $ 0.60   $ 0.55     $ 2.08
 
 
EBITDA (2)
NET EARNINGS (LOSS) (GAAP MEASURE) $ 25,890 $ 7,929 $ 36,358 $ 41,382 $ 111,559 $ 37,174 $ 32,175 $ 34,401 $ (16,460 ) $

87,290

FINANCING COSTS, NET 7,552 8,238 7,850 8,479 32,119 8,222 7,821 24,066 6,281 46,390
INCOME TAX EXPENSE 6,911 6,169 11,460 10,171 34,711 11,228 9,631 6,593 5,572

33,024

DEPRECIATION & AMORTIZATION 12,160 12,883 12,959 14,852 52,854 13,540 13,070 13,582 14,071

54,263

DISCONTINUED OPERATIONS, NET OF INCOME TAX   771     14,213     2,002     (4,049 )     12,937   -     -     -     -       -
EBITDA (NON-GAAP MEASURE) $ 53,284 $ 49,432 $ 70,629 $ 70,835 $ 244,180 $ 70,164 $ 62,697 $ 78,642 $ 9,464 $ 220,967
IMPAIRMENT CHARGE   -     -     -     -       -   -     -     -     62,464       62,464
EBITDA (NON-GAAP MEASURE) - EXCLUDING IMPAIRMENT CHARGE $ 53,284   $ 49,432   $ 70,629   $ 70,835     $ 244,180 $ 70,164   $ 62,697   $ 78,642   $ 71,928     $ 283,431
 
FOOTNOTES
 
NOTE:   The total of the individual quarters may not equal the annual total due to rounding.
 
(1) Earnings (loss) from continuing operations and diluted earnings (loss) per share, excluding special items (discontinued operations, debt refinancing charges, and impairment charge), represent net earnings (loss) and diluted earnings (loss) per share per the Condensed Consolidated Statements of Operations 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 (loss) or diluted earnings (loss) 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.
 
(2) EBITDA represents net earnings (loss) 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 Operations 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.
 
(3) Due to the net loss for the fourth quarter of fiscal 2012 the basic weighted average common shares are used to calculate both basic and diluted loss per share for the fourth quarter of fiscal 2012 to avoid anti-dilution. Per share results for net earnings (loss) (GAAP measure) was calculated using 72,846 shares outstanding. When excluding the impairment charge from net earnings (loss), the result is net earnings (not a net loss) which requires a diluted basis for calculated EPS. For this reason, the per share results for the impairment charge and total diluted earnings (non-GAAP measure) were calculated using 74,158 shares outstanding for the fourth quarter of fiscal 2012. Due to the difference in shares outstanding being used, the per share results do not add for the fourth quarter of fiscal 2012.
 




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