This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Actuant Reports Third Quarter Results; Provides Fiscal 2014 Outlook

Stocks in this article: ATU

Arzbaecher concluded, “We remain focused on long-term secular growth drivers which provide exciting organic and acquisition driven growth prospects. Given our healthy acquisition pipeline, the strongest balance sheet in our history and continued robust free cash flow generation, we are well positioned financially to capitalize on these strategic growth opportunities.”

Conference Call Information

An investor conference call is scheduled for 10am CT today, June 19, 2013. 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. This includes statements pertaining to, among other things, the planned divestiture of the Electrical segment, the potential timing thereof, and the prospects and expected financial results of Actuant after the planned transaction. 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 serving customers from operations in more than 30 countries. The Actuant businesses are leaders in a broad array of niche markets including branded hydraulic tools and solutions; 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,
2013 2012
 
ASSETS
Current assets
Cash and cash equivalents $ 161,418 $ 68,184
Accounts receivable, net 214,683 234,756
Inventories, net 145,226 211,690
Deferred income taxes 22,503 22,583
Other current assets 26,396 24,068
Assets of discontinued operations   264,058     -  
Total current assets 834,284 561,281
 
Property, plant and equipment, net 104,603 115,884
Goodwill 647,150 866,412
Other intangible assets, net 316,986 445,884
Other long-term assets   16,451     17,658  
 
Total assets $ 1,919,474   $ 2,007,119  
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Trade accounts payable $ 147,898 $ 174,746
Accrued compensation and benefits 42,055 58,817
Current maturities of debt 10,000 7,500
Income taxes payable 9,350 5,778
Other current liabilities 51,957 72,165
Liabilities of discontinued operations   52,283     -  
Total current liabilities 313,543 319,006
 
Long-term debt 382,500 390,000
Deferred income taxes 97,745 132,653
Pension and postretirement benefit accruals 25,567 26,442
Other long-term liabilities 68,281 87,182
 
Shareholders' equity
Capital stock 15,287 15,102
Additional paid-in capital 34,176 7,725
Treasury stock (76,753 ) (63,083 )
Retained earnings 1,133,364 1,161,564
Accumulated other comprehensive loss (74,236 ) (69,472 )
Stock held in trust (3,094 ) (2,689 )
Deferred compensation liability   3,094     2,689  
Total shareholders' equity   1,031,838     1,051,836  
 
Total liabilities and shareholders' equity $ 1,919,474   $ 2,007,119  
 

Actuant Corporation
Condensed Consolidated Statements of Operations
(Dollars in thousands except per share amounts)
(Unaudited)
 
    Three Months Ended     Nine Months Ended
May 31,     May 31, May 31,     May 31,
2013     2012 2013     2012
 
Net sales $ 344,205 $ 343,268 $ 952,482 $ 954,153
Cost of products sold   207,301         204,514   575,032         572,301
Gross profit 136,904 138,754 377,450 381,852
 
Selling, administrative and engineering expenses 74,323 74,341 222,521 210,806
Amortization of intangible assets   5,539         5,563   17,542         16,237
Operating profit 57,042 58,850 137,387 154,809
 
Financing costs, net 6,229 7,236 18,811 23,280
Debt refinancing costs - 16,830 - 16,830
Other expense, net   911         2,591   1,518         3,297
Earnings from continuing operations before income tax expense 49,902 32,193 117,058 111,402
 
Income tax expense   3,825         4,456   14,596         22,042
Earnings from continuing operations 46,077 27,737 102,462 89,360
Earnings (loss) from discontinued operations, net of income taxes   (139,060 )       6,664   (130,667 )       14,390
Net earnings (loss) $ (92,983 )     $ 34,401 $ (28,205 )     $ 103,750
 
Earnings from continuing operations per share
Basic $ 0.63 $ 0.39 $ 1.40 $ 1.29
Diluted 0.62 0.36 1.38 1.19
 
Earnings (loss) per share
Basic $ (1.27 ) $ 0.48 $ (0.39 ) $ 1.50
Diluted (1.24 ) 0.45 (0.38 ) 1.39
 
Weighted average common shares outstanding
Basic 73,133 71,083 72,957 69,184
Diluted 74,787 75,371 74,491 75,201
 

Actuant Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
 
    Three Months Ended     Nine Months Ended
May 31,     May 31, May 31,     May 31,
2013 2012 2013 2012
 
Operating Activities
Net earnings (loss) $ (92,983 ) $ 34,401 $ (28,205 ) $ 103,750
Adjustments to reconcile net earnings (loss) to net cash provided by
operating activities:
Depreciation and amortization 13,892 13,582 42,790 40,192
Stock-based compensation expense 3,379 3,040 10,507 10,002
Provision (benefit) for deferred income taxes (24,531 ) 117 (30,549 ) (2,137 )
Impairment charge 170,052 - 170,052 -
Amortization of debt discount and debt issuance costs 496 495 1,488 1,492
Non-cash debt refinance charge - 2,254 - 2,254
Other non-cash adjustments 343 208 171 (138 )
Changes in components of working capital and other:
Accounts receivable (21,312 ) (4,585 ) (25,033 ) (21,692 )
Inventories 11,478 10,231 7,326 9,171
Prepaid expenses and other assets (3,409 ) 3,208 (4,613 ) 1,071
Trade accounts payable 14,752 10,907 (7,529 ) 2,779
Income taxes payable (2,816 ) (2,092 ) (5,538 ) (2,056 )
Accrued compensation and benefits (402 ) 5,332 (12,829 ) (8,766 )
Other accrued liabilities   7,008     215     (1,768 )   (6,608 )
Net cash provided by operating activities 75,947 77,313 116,270 129,314
 
Investing Activities
Proceeds from sale of property, plant and equipment 140 711 1,317 8,486
Proceeds from sale of businesses, net of transaction costs 4,854 - 4,854 -
Capital expenditures (7,169 ) (7,039 ) (18,895 ) (17,491 )
Business acquisitions, net of cash acquired   (2,202 )   (10,827 )   (3,635 )   (29,734 )
Net cash used in investing activities (4,377 ) (17,155 ) (16,359 ) (38,739 )
 
Financing Activities
Net repayments on revolving credit facilities and other debt - (58,000 ) - (58,167 )
Principal repayments on term loan (2,500 ) (1,250 ) (5,000 ) (1,250 )
Repurchases of 2% Convertible Notes - (102 ) - (102 )
Proceeds on 5.625% Senior Note issuance - 300,000 - 300,000
Redemption of 6.875% Senior Notes - (250,000 ) - (250,000 )
Debt issuance costs - (5,340 ) - (5,340 )
Purchase of treasury shares (4,849 ) (18,872 ) (13,670 ) (39,282 )
Stock option exercises and related tax benefits 7,933 885 18,705 6,392
Cash dividend   -     -     (2,911 )   (2,748 )
Net cash provided by (used in) financing activities 584 (32,679 ) (2,876 ) (50,497 )
 
Effect of exchange rate changes on cash   (1,559 )   (5,775 )   (3,801 )   (4,150 )
Net increase in cash and cash equivalents 70,595 21,704 93,234 35,928
Cash and cash equivalents - beginning of period   90,823     58,445     68,184     44,221  
Cash and cash equivalents - end of period $ 161,418   $ 80,149   $ 161,418   $ 80,149  
 

ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA FROM CONTINUING OPERATIONS
(Dollars in thousands)
 
    FISCAL 2012     FISCAL 2013
Q1   Q2   Q3   Q4   TOTAL Q1   Q2   Q3     Q4     TOTAL
SALES                    
INDUSTRIAL SEGMENT $ 100,253 $ 98,342 $ 110,102 $ 110,598 $ 419,295 $ 101,122 $ 98,999 $ 111,308 $ 311,429
ENERGY SEGMENT 80,421 78,937 96,399 93,406 349,163 90,769 80,794 99,158 270,721
ENGINEERED SOLUTIONS SEGMENT   129,292       123,640       136,767       118,364       508,063     115,918       120,675       133,739               370,332  
TOTAL $ 309,966     $ 300,919     $ 343,268     $ 322,368     $ 1,276,521   $ 307,809     $ 300,468     $ 344,205             $ 952,482  
 
% SALES GROWTH
INDUSTRIAL SEGMENT 15 % 11 % 2 % 2 % 7 % 1 % 1 % 1 % 1 %
ENERGY SEGMENT 14 % 28 % 24 % 13 % 19 % 13 % 2 % 3 % 6 %
ENGINEERED SOLUTIONS SEGMENT 23 % 12 % 8 % -10 % 7 % -10 % -2 % -2 % -5 %
TOTAL 18 % 16 % 10 % 0 % 10 % -1 % 0 % 0 % 0 %
 
OPERATING PROFIT (LOSS)
INDUSTRIAL SEGMENT $ 27,933 $ 26,690 $ 30,681 $ 29,473 $ 114,777 $ 27,006 $ 26,350 $ 32,426 $ 85,782
ENERGY SEGMENT 13,217 11,632 18,515 18,841 62,205 15,387 9,677 19,736 44,800
ENGINEERED SOLUTIONS SEGMENT 18,999 13,281 18,467 10,104 60,851 7,625 8,275 12,754 28,654
CORPORATE / GENERAL   (7,845 )     (7,948 )     (8,813 )     (8,713 )     (33,319 )   (6,544 )     (7,431 )     (7,874 )             (21,849 )
TOTAL $ 52,304     $ 43,655     $ 58,850     $ 49,705     $ 204,514   $ 43,474     $ 36,871     $ 57,042             $ 137,387  
 
OPERATING PROFIT %
INDUSTRIAL SEGMENT 27.9 % 27.1 % 27.9 % 26.6 % 27.4 % 26.7 % 26.6 % 29.1 % 27.5 %
ENERGY SEGMENT 16.4 % 14.7 % 19.2 % 20.2 % 17.8 % 17.0 % 12.0 % 19.9 % 16.5 %
ENGINEERED SOLUTIONS SEGMENT 14.7 % 10.7 % 13.5 % 8.5 % 12.0 % 6.6 % 6.9 % 9.5 % 7.7 %
TOTAL (INCLUDING CORPORATE) 16.9 % 14.5 % 17.1 % 15.4 % 16.0 % 14.1 % 12.3 % 16.6 % 14.4 %
 
EBITDA
INDUSTRIAL SEGMENT $ 29,220 $ 29,116 $ 32,070 $ 31,774 $ 122,180 $ 29,033 $ 28,471 $ 34,374 $ 91,878
ENERGY SEGMENT 18,243 15,601 22,216 23,166 79,226 19,694 14,278 23,977 57,949
ENGINEERED SOLUTIONS SEGMENT 22,213 16,762 21,418 13,991 74,384 12,047 12,611 16,700 41,358
CORPORATE / GENERAL   (7,217 )     (7,479 )     (8,506 )     (7,972 )     (31,174 )   (6,195 )     (6,582 )     (7,556 )             (20,333 )
TOTAL $ 62,459     $ 54,000     $ 67,198     $ 60,959     $ 244,616   $ 54,579     $ 48,778     $ 67,495             $ 170,852  
 
EBITDA %
INDUSTRIAL SEGMENT 29.1 % 29.6 % 29.1 % 28.7 % 29.1 % 28.7 % 28.8 % 30.9 % 29.5 %
ENERGY SEGMENT 22.7 % 19.8 % 23.0 % 24.8 % 22.7 % 21.7 % 17.7 % 24.2 % 21.4 %
ENGINEERED SOLUTIONS SEGMENT 17.2 % 13.6 % 15.7 % 11.8 % 14.6 % 10.4 % 10.5 % 12.5 % 11.2 %
TOTAL (INCLUDING CORPORATE) 20.2 % 17.9 % 19.6 % 18.9 % 19.2 % 17.7 % 16.2 % 19.6 % 17.9 %
 

ACTUANT CORPORATION
SUPPLEMENTAL UNAUDITED DATA
RECONCILIATION OF GAAP MEASURE TO NON-GAAP MEASURES
(Dollars in thousands, except for per share amounts)
 
    FISCAL 2012     FISCAL 2013
Q1   Q2   Q3   Q4   TOTAL Q1   Q2   Q3     Q4     TOTAL
EARNINGS (LOSS) BEFORE SPECIAL ITEMS (1)                    
NET EARNINGS (LOSS) $ 37,174 $ 32,175 $ 34,401 $ (16,460 ) $ 87,290 $ 36,343 $ 28,435 $ (92,983 ) $ (28,205 )
DISCONTINUED OPERATIONS, NET OF INCOME TAX   (3,204 )     (4,522 )     (6,664 )     52,376       37,986   (5,792 )     (2,601 )     139,060               130,667  
EARNINGS FROM CONTINUING OPERATIONS 33,970 27,653 27,737 35,916 125,276 30,551 25,834 46,077 102,462
DEBT REFINANCING CHARGES, NET OF INCOME TAX   -       -       10,482       -       10,482   -       -       -               -  
TOTAL $ 33,970     $ 27,653     $ 38,219     $ 35,916     $ 135,758 $ 30,551     $ 25,834     $ 46,077             $ 102,462  
 
DILUTED EARNINGS (LOSS) PER SHARE, BEFORE
SPECIAL ITEMS (1)
NET EARNINGS (LOSS) $ 0.50 $ 0.43 $ 0.45 $ (0.22 ) $ 1.17 $ 0.49 $ 0.38 $ (1.24 ) $ (0.38 )
DISCONTINUED OPERATIONS, NET OF INCOME TAX   (0.04 )     (0.06 )     (0.09 )     0.70       0.51   (0.08 )     (0.03 )     1.86               1.76  
EARNINGS FROM CONTINUING OPERATIONS 0.46 0.37 0.36 0.48 1.68 0.41 0.35 0.62 1.38
DEBT REFINANCING CHARGES, NET OF INCOME TAX   -       -       0.15       -       0.15   -       -       -               -  
TOTAL $ 0.46     $ 0.37     $ 0.51     $ 0.48     $ 1.83 $ 0.41     $ 0.35     $ 0.62             $ 1.38  
 
 
EBITDA (2)
NET EARNINGS (LOSS) (GAAP MEASURE) $ 37,174 $ 32,175 $ 34,401 $ (16,460 ) $ 87,290 $ 36,343 $ 28,435 $ (92,983 ) $ (28,205 )
DISCONTINUED OPERATIONS, NET OF INCOME TAX   (3,204 )     (4,522 )     (6,664 )     52,376       37,986   (5,792 )     (2,601 )     139,060               130,667  
EARNINGS FROM CONTINUING OPERATIONS 33,970 27,653 27,737 35,916 125,276 30,551 25,834 46,077 102,462
FINANCING COSTS, NET 8,222 7,821 24,066 6,281 46,390 6,322 6,260 6,229 18,811
INCOME TAX EXPENSE 9,447 8,139 4,456 7,312 29,354 5,957 4,814 3,825 14,596
DEPRECIATION & AMORTIZATION   10,820       10,387       10,939       11,450       43,596   11,749       11,870       11,364               34,983  
EBITDA - EXCLUDING DISCONTINUED OPERATIONS (NON-GAAP MEASURE) $ 62,459     $ 54,000     $ 67,198     $ 60,959     $ 244,616 $ 54,579     $ 48,778     $ 67,495             $ 170,852  
 

FOOTNOTES

 
NOTE:     The total of the individual quarters may not equal the annual total due to rounding.
 
(1) Earnings (loss) and diluted earnings (loss) per share, excluding special items (debt refinancing charges and discontinued operations), 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, discontinued operations and depreciation & amortization. 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.
 




6 of 7

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,399.67 +19.26 0.12%
S&P 500 1,904.01 +17.25 0.91%
NASDAQ 4,316.0740 +57.6360 1.35%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs