Third Quarter of Fiscal 2022 Continuing
Operations Highlights*
- Net sales were $152 million, representing a 10% year-over-year
increase in core sales driven by continued strong and broad-based
demand in most regions; the strengthening of the US dollar reduced
sales by 4%
- GAAP operating margin was 4.4% and adjusted operating margin
was 9.0%
- Adjusted EBITDA margin was 12.0%
- GAAP diluted earnings per share (“EPS”) was $0.07 and adjusted
diluted EPS was $0.16
- Results reflect an $11 million increase in accounts receivable
reserves related to an agent in the Middle East/North
Africa/Caspian (“MENAC”) region ($0.14 per share, after tax), which
had an unfavorable impact of approximately 720 basis points on
adjusted EBITDA margin
- Leverage (Net Debt to Adjusted EBITDA) was 1.1x at May 31,
2022
- Purchased approximately 1.8 million shares at an average price
of $20.65, for a total of approximately $36 million under our share
repurchase program announced in March 2022
- Refined full year guidance for fiscal 2022 *This news release
contains financial measures in accordance with US Generally
Accepted Accounting Principles (“GAAP”) in addition to non-GAAP
financial measures. Reconciliations of the GAAP to non-GAAP
historical financial measures can be found in the tables
accompanying this release.
Enerpac Tool Group Corp. (NYSE: EPAC) (the “Company”) today
announced results for its fiscal third quarter ended May 31,
2022.
“Our solid third quarter sales and profit (excluding the impact
of the increase in receivable reserves) were the result of
continued broad-based demand and strong execution by our team
across our global footprint,” said Paul Sternlieb, Enerpac Tool
Group’s President & CEO. “Throughout the quarter, we continued
to navigate a challenging macroeconomic environment, including
ongoing supply chain and inflationary pressures as well as managing
through the Ukraine conflict and the COVID lockdown in China. I am
pleased with our team’s ability to remain focused on serving our
customers and creating value for all our stakeholders. In alignment
with our capital allocation strategy, we purchased approximately
1.8 million shares in the third quarter under our recently
announced repurchase authorization. With our ASCEND transformation
program well underway, I am encouraged by the momentum it has
already generated, thanks to the hard work of our employees across
all levels of the organization.”
Consolidated
Results from Continuing Operations
(US$ in millions, except per share)
Three Months Ended
Nine Months Ended
May 31,
2022
May 31,
2021
May 31,
2022
May 31,
2021
Net Sales
$151.9
$143.1
$419.4
$383.2
Net Income
$4.1
$25.3
$9.4
$33.7
Diluted Earnings Per Share
$0.07
$0.42
$0.15
$0.56
Adjusted Diluted Earnings Per Share
$0.16
$0.28
$0.47
$0.43
- Consolidated net sales for the third quarter of fiscal 2022
were $151.9 million compared to $143.1 million in the prior year
third quarter. Core sales improved 10% year over year, with product
sales up 12% and service revenues up 1%. The impact from foreign
currency exchange rates reduced net sales by 4% in the
quarter.
- Fiscal 2022 third quarter net income and diluted earnings per
share were $4.1 million and $0.07, respectively, compared to net
income and diluted EPS of $25.3 million and $0.42, respectively, in
the third quarter of fiscal 2021. Fiscal 2022 third quarter net
income included:
- A restructuring charge of $0.5 million ($0.4 million, or $0.01
per share, after tax) attributable to further actions to flatten
and simplify the organizational structure;
- ASCEND transformation program charges (“ASCEND charges”) of
$3.9 million ($3.0 million, or $0.05 per share, after tax)
primarily related to the use of external services for support in
the design and development of the program;
- Leadership transition and Board search charges of $2.8 million
($2.5 million, or $0.04 per share, after tax);
- Business review charges of $0.5 million ($0.3 million, or $0.01
per share, after tax) related to external support for the deep dive
business review prior to the launch of ASCEND; and
- A gain on the sale of a facility, net of transaction charges,
of $0.6 million ($0.5 million, or $0.01 per share, after tax)
related to footprint rationalization.
- Fiscal 2021 third quarter net income included:
- Restructuring charges of $1.6 million ($1.3 million, or $0.02
per share, after tax);
- Leadership transition and Board search charges of $0.6 million
($0.4 million, or $0.01 per share, after tax);
- Gain on sale of facility, net of transaction charges of $5.4
million ($2.4 million, or $0.04 per share, after tax) related to
the sale of a large manufacturing facility in China as part of our
footprint rationalization; and
- Tax benefits of $7.5 million ($0.12 per share) related to the
release of uncertain tax positions upon closure of income tax
audits.
- Excluding the items detailed above, adjusted diluted EPS was
$0.16 for the third quarter of fiscal 2022 compared to $0.28 in the
comparable prior year period.
- Consolidated net sales for the nine months ended May 31, 2022
were $419.4 million, compared to $383.2 million in the comparable
prior year period. Core sales increased 12% year over year, while
the net impact of foreign currency reduced net sales 2%.
- Fiscal 2022’s net income and diluted EPS for the nine months
ended May 31, 2022 were $9.4 million and $0.15, respectively,
compared to net income and diluted EPS of $33.7 million and $0.56,
respectively, in the comparable prior year period.
- Fiscal 2022 third quarter results reflect a $10.8 million
increase in receivable reserves ($0.14 per share, after tax)
related to an agent in the MENAC region. The issue is specific to
this agent and is not indicative of the market or any other agents
with which the Company works. The Company continues to do business
in the impacted country directly with end customers and is no
longer working with the individual agent.
Industrial Tools
& Services (IT&S)
(US$ in millions)
Three Months Ended
Nine Months Ended
May 31,
2022
May 31,
2021
May 31,
2022
May 31,
2021
Net Sales
$140.4
$133.4
$387.6
$358.3
Operating Profit
$19.2
$23.8
$49.9
$54.8
Adjusted Op Profit (1)
$19.4
$25.3
$54.7
$57.5
Adjusted Op Profit % (1)
13.8%
19.0%
14.1%
16.1%
(1)
Excludes $0.5 million of restructuring
charges, $0.1 million of leadership transition charges, $0.1
million of ASCEND charges and a gain on sale of a facility, net of
transaction charges, of $0.6 million in the third quarter of fiscal
2022 compared to $1.5 million of restructuring charges in the third
quarter of fiscal 2021. The nine months ended May 31, 2022 excludes
$3.7 million of restructuring charges, $1.1 million of impairment
& divestiture charges, $0.6 million of leadership transition
charges, $0.1 million of ASCEND charges and a gain on sale of a
facility, net of transaction charges, of $0.6 million compared to
$2.2 million of restructuring charges and $0.5 million of net
impairment & divestiture charges in the prior year period.
- Third quarter fiscal 2022 net sales were $140.4 million, 5%
higher than the prior fiscal year’s third quarter net sales. Core
sales increased 9% year over year.
- The increase in revenue is attributable to the continued global
market recovery from the COVID-19 pandemic in addition to the
impact of pricing actions taken to offset inflationary
pressures.
- Adjusted operating profit margin decreased year over year to
13.8%, primarily due to an additional receivable reserve in the
MENAC region, which had an unfavorable impact of 770 basis points
on adjusted operating profit margin.
Corporate Expenses and Income Taxes
from Continuing Operations
- Corporate expenses were $13.7 million and $1.0 million for the
third quarter of fiscal 2022 and fiscal 2021, respectively.
- Adjusted corporate expenses(2) of $6.7 million for the third
quarter of fiscal 2022 were $0.9 million higher than the comparable
prior year period expense of $5.8 million, primarily due to
insurance costs slightly offset by restructuring savings.
- The fiscal 2022 third quarter adjusted effective income tax
rate from continuing operations of approximately 22% was higher
than the third quarter fiscal 2021 adjusted rate of approximately
3%.
(2)
Excludes approximately $2.7 million of
leadership transition and Board search charges, $0.5 million of
business review charges and $3.8 million of ASCEND charges in the
third quarter of fiscal 2022 compared to $0.6 million of leadership
transition and Board search charges and a gain on sale of facility,
net of transaction charges, of $5.4 million in the third quarter of
fiscal 2021.
Discontinued Operations
Discontinued operations represent the impacts from certain
retained liabilities associated with the divestiture of the former
EC&S segment on October 31, 2019.
Balance Sheet and
Leverage
(US$ in millions)
Period Ended
May 31, 2022
February 28, 2022
May 31, 2021
Cash Balance
$123.7
$133.4
$136.3
Debt Balance
$205.0
$175.0
$195.0
Net Debt to Adjusted EBITDA**
1.1
0.6
1.1
Net debt at May 31, 2022 was approximately $81 million (total
debt of $205 million less $124 million of cash), which increased
approximately $39 million from February 28, 2022. Net Debt to
Adjusted EBITDA from continuing operations was 1.1x at May 31,
2022. The company purchased approximately 1.8 million shares of its
common stock in the third quarter of fiscal 2022 at an average
price of $20.65 for a total of approximately $36 million under its
share repurchase program announced in March of 2022.
**Calculated in accordance with the terms of the Company’s March
2019 Senior Credit Facility
Outlook
Mr. Sternlieb continued, “As we move into the last quarter of
fiscal 2022, we believe we are well positioned within our markets
to further capitalize on improving demand. We are also keenly
focused on executing the initiatives in our ASCEND transformation
program to unlock significant opportunities for value creation
across the organization, which we expect will generate incremental
adjusted EBITDA of $40 to $50 million and will cost $60 to $65
million*** over the life of the program.
“Should we begin to see markets soften, we expect our
transformation efforts, which are already underway, will position
us well. We continue to proactively manage inflationary pressures
and supply chain issues that impact our business and expect these
challenges to persist for the foreseeable future. Due to the
ongoing impact of the stronger US dollar, we have refined our full
year net sales guidance range to $560 to $570 million from $560 to
$580 million. In addition, we expect incremental adjusted EBITDA
margins**** of 35% to 45% excluding the impact of foreign currency
and the incremental receivable reserve in the third quarter related
to a MENAC agent.”
Mr. Sternlieb concluded, “We are continuing the important work
of accelerating growth, improving operational excellence, and
creating a more efficient and agile organization, and we remain
confident in our abilities to be successful as we drive toward
Enerpac Tool Group’s next phase of growth and profitability.”
***Approximately $6 to $10 million is expected to be attributed
to restructuring cost ****Incremental (or decremental) adjusted
EBITDA margin is equivalent to the change in adjusted EBITDA
divided by the change in Net Sales for the comparable periods.
Conference Call
Information
An investor conference call is scheduled for 10:00 am CT today,
June 28, 2022. Webcast information and conference call materials,
including an earnings presentation, are available on the Enerpac
Tool Group company website (www.enerpactoolgroup.com).
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.
Among other risks and uncertainties, Enerpac Tool Group’s results
are subject to risks and uncertainties arising from general
economic conditions, supply chain risk, material and labor cost
increases, the COVID-19 pandemic, including the impact of the
pandemic or related government responses on the Company’s business,
the businesses of the Company’s customers and vendors, employee
mobility and whether site-specific health and safety concerns
related to COVID-19 might require operations to be halted for some
period of time, volatile oil pricing, variation in demand from
customers, the impact of geopolitical activity on the economy,
including the invasion of Ukraine by Russia and international
sanctions imposed in response thereto, continued market acceptance
of the Company’s new product introductions, the successful
integration of acquisitions, the impact of restructurings, the
ability of the Company to achieve its plans or objectives related
to the ASCEND program, including any assumptions underlying its
calculation of expected incremental adjusted EBITDA, operating
margin risk due to competitive pricing and operating efficiencies,
tax law changes, foreign currency fluctuations and interest rate
risk. See the Company’s Form 10-K for the fiscal year ended August
31, 2021 filed with the Securities and Exchange Commission for
further information regarding risk factors. Enerpac Tool Group
disclaims any obligation to publicly update or revise any
forward-looking statements as a result of new information, future
events or any other reason.
Non-GAAP Financial
Information
This press release contains financial measures that are not
measures presented in conformity with GAAP. These non-GAAP measures
include EBITDA from continuing operations, adjusted EBITDA from
continuing operations, adjusted earnings from continuing
operations, adjusted diluted earnings per share from continuing
operations, adjusted operating profit from continuing operations,
segment adjusted operating profit, free cash flow and net debt.
This press release includes reconciliations of historical non-GAAP
measures to the most comparable GAAP measure, including in the
tables attached to this press release. This press release does not
include a quantitative reconciliation of non-GAAP measures
presented for any future period as such a reconciliation is not
practicable. Such future-period measures are presented in a manner
consistent with the presentation thereof for historical periods.
Management believes the non-GAAP measures presented in this press
release are commonly used financial measures for investors to
evaluate Enerpac Tool Group’s operating performance and financial
position with respect to the periods presented and, when read in
conjunction with the condensed consolidated financial statements,
present a useful tool to evaluate ongoing operations and provide
investors with metrics they can use to evaluate aspects of the
Company’s performance from period to period. In addition, these are
some of the financial metrics management uses in internal
evaluations of the overall performance of the Company’s business.
Management acknowledges that there are many items that impact a
company’s reported results and the adjustments reflected in these
non-GAAP measures are not intended to present all items that may
have impacted these results. In addition, these non-GAAP measures
are not necessarily comparable to similarly titled measures used by
other companies.
About Enerpac Tool Group
Enerpac Tool Group Corp. is a premier industrial tools and
services company serving a broad and diverse set of customers in
more than 100 countries. The Company’s businesses are global
leaders in high pressure hydraulic tools, controlled force products
and solutions for precise positioning of heavy loads that help
customers safely and reliably tackle some of the most challenging
jobs around the world. The Company was founded in 1910 and is
headquartered in Menomonee Falls, Wisconsin. Enerpac Tool Group
common stock trades on the NYSE under the symbol EPAC. For further
information on Enerpac Tool Group and its businesses, visit the
Company's website at www.enerpactoolgroup.com.
(tables follow)
Enerpac Tool Group
Corp.
Condensed Consolidated Balance
Sheets
(Dollars in thousands)
(Unaudited)
May 31,
August 31,
2022
2021
Assets Current assets Cash and cash equivalents
$
123,705
$
140,352
Accounts receivable, net
117,029
103,233
Inventories, net
86,897
75,347
Other current assets
38,657
38,503
Total current assets
366,288
357,435
Property, plant and equipment, net
44,400
48,590
Goodwill
267,199
277,593
Other intangible assets, net
45,163
54,545
Other long-term assets
74,249
82,084
Total assets
$
797,299
$
820,247
Liabilities and Shareholders' Equity Current
liabilities Trade accounts payable
$
65,741
$
61,958
Accrued compensation and benefits
21,227
21,597
Income taxes payable
3,892
5,674
Other current liabilities
43,666
45,535
Total current liabilities
134,526
134,764
Long-term debt, net
205,000
175,000
Deferred income taxes
6,586
4,397
Pension and postretirement benefit liabilities
16,179
17,783
Other long-term liabilities
68,736
76,105
Total liabilities
431,027
408,049
Shareholders' equity Capital stock
16,670
16,604
Additional paid-in capital
211,952
202,971
Treasury stock
(704,027
)
(667,732
)
Retained earnings
958,991
953,339
Accumulated other comprehensive loss
(117,314
)
(92,984
)
Stock held in trust
(3,148
)
(3,067
)
Deferred compensation liability
3,148
3,067
Total shareholders' equity
366,272
412,198
Total liabilities and shareholders' equity
$
797,299
$
820,247
Enerpac Tool Group Corp.
Condensed Consolidated
Statements of Earnings
(Dollars in thousands, except
per share amounts)
(Unaudited)
Three Months Ended
Nine Months Ended
May 31,
May 31,
May 31,
May 31,
2022
2021
2022
2021
Net sales
$
151,894
$
143,149
$
419,395
$
383,233
Cost of products sold
79,847
76,302
227,741
206,346
Gross profit
72,047
66,847
191,654
176,887
Selling, general and administrative expenses
63,095
40,468
162,240
130,061
Amortization of intangible assets
1,792
2,061
5,678
6,333
Restructuring charges
517
1,571
5,086
2,430
Impairment & divestiture charges
-
-
1,116
539
Operating profit
6,643
22,747
17,534
37,524
Financing costs, net
951
1,340
2,668
4,395
Other expense, net
254
540
1,004
1,598
Earnings before income tax expense
5,438
20,867
13,862
31,531
Income tax expense (benefit)
1,377
(4,390
)
4,495
(2,132
)
Net earnings from continuing operations
4,061
25,257
9,367
33,663
Loss from discontinued operations, net of income taxes
(2,418
)
(226
)
(3,715
)
(852
)
Net earnings
$
1,643
$
25,031
$
5,652
$
32,811
Earnings per share from continuing operations Basic
$
0.07
$
0.42
$
0.16
$
0.56
Diluted
0.07
0.42
0.15
0.56
Loss per share from discontinued operations Basic
$
(0.04
)
$
(0.00
)
$
(0.06
)
$
(0.01
)
Diluted
(0.04
)
(0.00
)
(0.06
)
(0.01
)
Earnings per share* Basic
$
0.03
$
0.42
$
0.09
$
0.55
Diluted
0.03
0.41
0.09
0.54
Weighted average common shares outstanding Basic
60,227
60,144
60,292
59,964
Diluted
60,610
60,574
60,640
60,312
*The total of earnings per share from continuing operations
and loss per share from discontinued operations may not equal
earnings per share due to rounding.
Enerpac Tool Group Corp.
Condensed Consolidated
Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended
Nine Months Ended
May 31,
May 31,
May 31,
May 31,
2022
2021
2022
2021
Operating Activities Cash provided by operating activities -
continuing operations
$
2,274
11,869
7,515
25,369
Cash provided by (used in) operating activities - discontinued
operations
245
(226
)
(319
)
(480
)
Cash provided by operating activities
$
2,519
11,643
7,196
24,889
Investing Activities Capital expenditures
(2,140
)
(3,874
)
(6,970
)
(9,504
)
Proceeds from sale of property, plant and equipment
995
21,806
1,158
22,401
Proceeds from company owned life insurance policies
-
2,911
-
2,911
Cash used in investing activities - continuing operations
(1,145
)
20,843
(5,812
)
15,808
Cash provided by investing activities - discontinued operations
-
-
-
-
Cash used in (provided by) investing activities
$
(1,145
)
20,843
(5,812
)
15,808
Financing Activities Borrowings on revolving credit
facility
30,000
-
45,000
10,000
Principal repayments on revolving credit facility
-
(15,000
)
(15,000
)
(70,000
)
Purchase of treasury shares
(36,295
)
-
(36,295
)
-
Stock options, taxes paid related to the net share settlement of
equity awards & other
62
1,767
(3,161
)
(32
)
Payment of cash dividend
-
-
(2,409
)
(2,394
)
Cash used in financing activities - continuing operations
$
(6,233
)
(13,233
)
(11,865
)
(62,426
)
Cash provided by financing activities - discontinued operations
-
-
-
750
Cash used in financing activities
$
(6,233
)
(13,233
)
(11,865
)
(61,676
)
Effect of exchange rate changes on cash
(4,866
)
1,772
(6,166
)
5,088
Net cash (decrease) increase from continuing operations
(9,970
)
21,251
(16,328
)
(16,161
)
Net cash increase (decrease) from discontinued operations
245
(226
)
(319
)
270
Net (decrease) increase from cash and cash equivalents
$
(9,725
)
21,025
(16,647
)
(15,891
)
Cash and cash equivalents - beginning of period
133,430
115,254
140,352
152,170
Cash and cash equivalents - end of period
$
123,705
$
136,279
$
123,705
$
136,279
Enerpac Tool Group Corp. Supplemental Unaudited
Data Reconciliation of GAAP Measures to Non-GAAP
Measures (Dollars in thousands)
Fiscal 2021
Fiscal 2022
Q1
Q2
Q3
Q4
TOTAL
Q1
Q2
Q3
Q4
TOTAL
Sales Industrial Tool & Services Segment
$
112,175
$
112,739
$
133,400
$
134,811
$
493,125
$
121,313
$
125,940
$
140,395
$
-
$
387,647
Other
7,255
7,915
9,749
10,616
35,535
9,590
10,659
11,499
-
31,748
Total
$
119,430
$
120,654
$
143,149
$
145,427
$
528,660
$
130,903
$
136,599
$
151,894
$
-
$
419,395
% Sales Growth Industrial Tool & Services Segment
-17
%
-9
%
44
%
31
%
8
%
8
%
12
%
5
%
-
8
%
Other
-35
%
-21
%
8
%
28
%
-8
%
32
%
35
%
18
%
-
27
%
Total
-19
%
-10
%
41
%
31
%
7
%
10
%
13
%
6
%
-
9
%
Operating Profit from Continuing Operations
Industrial Tool & Services Segment
$
17,362
$
14,880
$
25,304
$
26,772
$
84,318
$
19,646
$
15,654
$
19,421
$
-
$
54,721
Other
(1,662
)
(1,834
)
14
(968
)
(4,450
)
(1,257
)
334
1,017
-
94
Corporate / General
(6,282
)
(6,289
)
(5,808
)
(6,535
)
(24,915
)
(5,486
)
(4,309
)
(6,705
)
-
(16,501
)
Adjusted operating profit
$
9,418
$
6,757
$
19,510
$
19,269
$
54,953
$
12,903
$
11,679
$
13,733
$
-
$
38,314
Impairment & divestiture charges
(139
)
(401
)
-
(5,659
)
(6,198
)
-
(1,116
)
-
-
(1,116
)
Restructuring charges
(210
)
(649
)
(1,571
)
37
(2,392
)
(2,737
)
(1,832
)
(517
)
-
(5,086
)
Gain on sale of facility, net of transaction charges
-
-
5,359
-
5,359
-
-
585
-
585
Leadership transition & board search charges (2)
-
-
(551
)
(58
)
(609
)
(3,759
)
(1,747
)
(2,800
)
-
(8,305
)
Business review charges
-
-
-
-
-
-
(2,500
)
(502
)
-
(3,002
)
ASCEND transformation program charges
-
-
-
-
-
-
-
(3,856
)
-
(3,856
)
Operating profit
$
9,069
$
5,707
$
22,747
$
13,589
$
51,113
$
6,407
$
4,484
$
6,643
$
-
$
17,534
Adjusted Operating Profit % Industrial Tool &
Services Segment
15.5
%
13.2
%
19.0
%
19.9
%
17.1
%
16.2
%
12.4
%
13.8
%
-
14.1
%
Other
-22.9
%
-23.2
%
0.1
%
-9.1
%
-12.5
%
-13.1
%
3.1
%
8.8
%
-
0.3
%
Adjusted Operating Profit %
7.9
%
5.6
%
13.6
%
13.2
%
10.4
%
9.9
%
8.5
%
9.0
%
-
9.1
%
EBITDA from Continuing Operations (1) Earnings from
continuing operations
$
4,822
$
3,584
$
25,257
$
6,549
$
40,212
$
3,185
$
2,121
$
4,061
$
-
$
9,367
Financing costs, net
1,716
1,338
1,340
870
5,266
961
755
951
-
2,668
Income tax expense (benefit)
2,258
1
(4,390
)
5,895
3,763
1,781
1,337
1,377
-
4,495
Depreciation & amortization
5,458
5,507
5,473
5,173
21,611
5,175
4,986
4,822
-
14,983
EBITDA
$
14,254
$
10,430
$
27,680
$
18,487
$
70,852
$
11,102
$
9,199
$
11,211
$
-
$
31,513
Adjusted EBITDA from Continuing Operations (1)
Industrial Tool & Services Segment
$
21,002
$
18,210
$
28,873
$
30,421
$
98,506
$
22,996
$
19,260
$
22,853
$
-
$
65,109
Other
(740
)
(942
)
897
(133
)
(918
)
(263
)
1,225
1,912
-
2,873
Corporate / General
(5,659
)
(5,788
)
(5,327
)
(6,121
)
(22,896
)
(5,135
)
(4,091
)
(6,464
)
-
(15,689
)
Adjusted EBITDA
$
14,603
$
11,480
$
24,443
$
24,167
$
74,692
$
17,598
$
16,394
$
18,301
$
-
$
52,293
Impairment & divestiture charges
(139
)
(401
)
-
(5,659
)
(6,198
)
-
(1,116
)
-
-
(1,116
)
Restructuring charges
(210
)
(649
)
(1,571
)
37
(2,392
)
(2,737
)
(1,832
)
(517
)
-
(5,086
)
Gain on sale of facility, net of transaction charges
-
-
5,359
-
5,359
-
-
585
-
585
Leadership transition & board search charges (2)
-
-
(551
)
(58
)
(609
)
(3,759
)
(1,747
)
(2,800
)
-
(8,305
)
Business review charges
-
-
-
-
-
-
(2,500
)
(502
)
-
(3,002
)
ASCEND transformation program charges
-
-
-
-
-
-
-
(3,856
)
-
(3,856
)
EBITDA
$
14,254
$
10,430
$
27,680
$
18,487
$
70,852
$
11,102
$
9,199
$
11,211
$
-
$
31,513
Adjusted EBITDA % Industrial Tool & Services
Segment
18.7
%
16.2
%
21.6
%
22.6
%
20.0
%
19.0
%
15.3
%
16.3
%
-
16.8
%
Other
-10.2
%
-11.9
%
9.2
%
-1.3
%
-2.6
%
-2.7
%
11.5
%
16.6
%
-
9.0
%
Adjusted EBITDA %
12.2
%
9.5
%
17.1
%
16.6
%
14.1
%
13.4
%
12.0
%
12.0
%
-
12.5
%
Notes: (1) EBITDA represents net earnings from
continuing operations before financing costs, net, income tax
(benefit) expense, and depreciation & amortization. EBITDA is
not a calculation based upon GAAP. The amounts included in the
EBITDA and Adjusted EBITDA calculation, however, are derived from
amounts included in the Condensed Consolidated Statements of
Earnings. EBITDA and adjusted EBITDA should not be considered as
alternatives to net earnings, operating profit or operating cash
flows. The Company has presented EBITDA and adjusted EBITDA because
it regularly reviews these performance measures. In addition,
EBITDA and adjusted EBITDA are used by many of our investors and
lenders, and are presented as a convenience to them. The EBITDA and
adjusted EBITDA measures presented may not always be comparable to
similarly titled measures reported by other companies due to
differences in the components of the calculation. (2) Caption
updated from "Corporate development & board search fees" used
during Fiscal 2021 also updated to consolidate "Executive
Transition and board search charges" and "Sr. Leadership transition
charges" during the first part of Fiscal 2022 into one row. Costs
included have not been altered.
Enerpac Tool Group Corp.
Supplemental Unaudited Data Reconciliation of GAAP
Measures to Non-GAAP Measures (Continued) (Dollars in
thousands, except for per share amounts)
Fiscal 2021
Fiscal 2022
Q1
Q2
Q3
Q4
TOTAL
Q1
Q2
Q3
Q4
TOTAL
Adjusted Earnings (3) Net Earnings
$
4,598
$
3,182
$
25,031
$
5,266
$
38,077
$
2,788
$
1,221
$
1,643
$
-
$
5,652
Loss from Discontinued Operations, net of income tax
(224
)
(402
)
(226
)
(1,283
)
(2,135
)
(397
)
(900
)
(2,418
)
-
(3,715
)
Earnings from Continuing Operations
$
4,822
$
3,584
$
25,257
$
6,549
$
40,212
$
3,185
$
2,121
$
4,061
$
-
$
9,367
Impairment & divestiture charges
139
401
-
5,659
6,198
-
1,116
-
-
1,116
Restructuring charges
210
649
1,571
(37
)
2,392
2,737
1,832
517
-
5,086
Gain on sale of facility, net of transaction charges
-
-
(5,359
)
-
(5,359
)
-
-
(585
)
-
(585
)
Leadership transition & board search charges
-
-
551
58
609
3,759
1,747
2,800
-
8,305
Business review charges
-
-
-
-
-
-
2,500
502
-
3,002
ASCEND transformation program charges
-
-
-
-
-
-
-
3,856
-
3,856
Net tax effect of reconciling items above
(15
)
(100
)
2,647
(548
)
1,984
42
(805
)
(1,366
)
-
(2,129
)
Other income tax benefit
-
(632
)
(7,523
)
-
(8,155
)
-
210
-
-
210
Adjusted Earnings from Continuing Operations
$
5,156
$
3,902
$
17,144
$
11,681
$
37,881
$
9,723
$
8,721
$
9,785
$
-
$
28,228
Adjusted Diluted Earnings per share (3) Net Earnings
$
0.08
$
0.05
$
0.41
$
0.09
$
0.63
$
0.05
$
0.02
$
0.03
$
-
$
0.09
Loss from Discontinued Operations, net of income tax
(0.00
)
(0.01
)
(0.00
)
(0.02
)
(0.04
)
(0.01
)
(0.01
)
(0.04
)
-
(0.06
)
Earnings from Continuing Operations
$
0.08
$
0.06
$
0.42
$
0.11
$
0.67
$
0.05
$
0.03
$
0.07
$
-
$
0.15
Impairment & divestiture charges, net of tax effect
0.00
0.01
-
0.08
0.09
-
0.01
-
-
0.01
Restructuring charges, net of tax effect
0.00
0.01
0.02
0.00
0.03
0.04
0.03
0.01
-
0.08
Gain on sale of facility, net of transaction charges, net of tax
effect
-
-
(0.04
)
0.00
(0.04
)
-
-
(0.01
)
-
(0.01
)
Leadership transition & board search charges, net of tax effect
-
-
0.01
0.00
0.01
0.06
0.03
0.04
-
0.13
Business review charges, net of tax effect
-
-
-
-
-
-
0.04
0.01
-
0.04
ASCEND transformation program charges, net of tax effect
-
-
-
-
-
-
-
0.05
-
0.05
Other income tax benefit
-
(0.01
)
(0.12
)
-
(0.14
)
-
0.00
-
-
0.00
Adjusted Diluted Earnings per share from Continuing Operations
$
0.09
$
0.06
$
0.28
$
0.19
$
0.63
$
0.16
$
0.14
$
0.16
$
-
$
0.47
Free Cash Flow (4) Cash (used in) provided by
operating activities
$
8,667
$
4,579
$
11,643
$
29,294
$
54,183
$
(4,726
)
$
9,403
$
2,519
$
-
$
7,196
Capital expenditures
(1,905
)
(3,725
)
(3,874
)
(2,515
)
(12,019
)
(3,293
)
(1,537
)
(2,140
)
-
(6,970
)
Proceeds from sale of property, plant and equipment
47
548
21,806
8
22,409
133
30
995
-
1,158
Other
(2
)
(518
)
4,937
182
4,599
-
1
(1
)
-
-
Free Cash Flow
$
6,807
$
884
$
34,512
$
26,969
$
69,172
$
(7,886
)
$
7,897
$
1,373
$
-
$
1,384
Notes continued: (3) Adjusted earnings from
continuing operations and adjusted diluted earnings per share
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 are not calculated based upon generally accepted
accounting principles (GAAP) and should not be considered as an
alternative to net earnings or diluted earnings per share or 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 Enerpac Tool Group
companies. (4) Free cash flow primarily represents the operating
cash flow, proceeds from the sale of property, plant and equipment
combined with capital expenditures. For all reconciliations
of GAAP measures to Non-GAAP measures, the summation of the
individual components may not equal the total due to rounding. With
respect to the earnings per share reconciliations the impact of
share dilution on the calculation of the net earnings or loss per
share and discontinued operations per share may result in the
summation of these components not equaling the total earnings per
share from continuing operations.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220628005237/en/
Bobbi Belstner Senior Director, Investor Relations and Strategy
262.293.1912
Enerpac Tool (NYSE:EPAC)
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