First Quarter of Fiscal 2024 Continuing Operations
Highlights*
- Net sales were $142 million, a 1.9% increase year-over-year,
with organic growth of 5.5%**
- Gross margin expanded 360 basis points year-over-year to
52.3%
- GAAP operating margin was 20.2% and adjusted operating margin
was 22.8%
- Net earnings were $18 million, or $0.33 per share
- Adjusted EBITDA was $35 million, an increase of 31%
year-over-year. Adjusted EBITDA margin was 24.6%, an increase of
550 basis points year-over-year.
- Returned approximately $26 million to shareholders through
share repurchases
*This press release contains financial measures in
accordance with U.S. Generally Accepted Accounting Principles
(“GAAP”) in addition to non-GAAP financial measures.
Reconciliations of the non-GAAP financial measures to the
comparable GAAP measures are presented in the tables accompanying
this release.
**Organic growth, formerly referred to as core growth,
represents revenue growth excluding the impact of foreign exchange
rates, acquisitions, and divestitures. A reconciliation of organic
sales growth to the comparable net sales growth is presented in the
tables accompanying this release.
Enerpac Tool Group Corp. (NYSE: EPAC) today announced results
for its fiscal first quarter ended November 30, 2023.
“We began fiscal 2024 with another good quarter, underscored by
solid top-line growth and greatly expanded profitability,” said
Paul Sternlieb, Enerpac Tool Group’s President & CEO. “While we
maintain a cautious tone regarding full-year results, given
economic and geopolitical uncertainty, our performance demonstrates
the continued benefits of Enerpac’s ASCEND transformation program,
four-pillar growth strategy, and the permanent changes across the
organization that are making Enerpac more efficient, more
productive, and easier to do business with.”
Consolidated
Results from Continuing Operations
(US$ in millions, except per share)
Three Months Ended
November 30, 2023
November 30, 2022
Net Sales
$142.0
$139.4
Operating Profit
$28.7
$12.3
Adjusted Op Profit
$32.4
$23.1
Net Income
$18.3
$6.4
Diluted EPS
$0.33
$0.11
Adjusted Diluted EPS
$0.39
$0.29
Adjusted EBITDA
$34.9
$26.6
First Quarter Fiscal 2024 Consolidated Results
Comparisons
“First quarter gains in operating profit and margins reflect the
success of our transformational initiatives that enhance
productivity and efficiency at the gross profit and SG&A
lines,” stated Tony Colucci, Executive Vice President and Chief
Financial Officer. “Additionally, reported results reflect lower
ASCEND-related charges.”
Consolidated net sales for the first quarter of fiscal 2024 were
$142.0 million compared to $139.4 million in the prior-year period,
an increase of 1.9%. Organic sales, excluding the disposition of
Cortland Industrial and the impact of foreign currency, increased
5.5% year-over-year, with product sales up 4.2% and service
revenues ahead 10.1%. Net sales growth for the Industrial Tools
& Services (IT&S) reportable segment of 7.6%, with organic
growth of 5.8%, was partly offset by a year-over-year decline at
Cortland Biomedical, which comprises the Other operating
segment.
Gross margin expanded approximately 360 basis points
year-over-year to 52.3%, driven by operational improvements related
to ASCEND, favorable sales mix, volume leverage, carryover price
increases from fiscal 2023, and the disposition of Cortland
Industrial. Selling, general and administrative expenses of $44.6
million were $9.6 million lower year-over-year. Adjusted SG&A
was 29.0% of sales, down from 31.2% of sales in the year-ago
period.
Operating profit increased 133% year-over-year to $28.7 million,
with an operating profit margin of 20.2%, up from 8.8% in the first
quarter of fiscal 2023. Adjusted operating profit increased 40% to
$32.4 million, with an adjusted operating margin of 22.8%, a 620
basis point expansion over the prior-year period.
First quarter fiscal 2024 net earnings and diluted EPS were
$18.3 million and $0.33 respectively, compared to $6.4 million and
$0.11, respectively, in the year-ago period.
First quarter adjusted EBITDA was $34.9 million compared to
$26.6 million in the year-ago period, achieving an adjusted EBITDA
margin of 24.6%, up 550 basis points from 19.1% in the first
quarter of fiscal 2023.
Net cash used by operating activities was $6.7 million for the
first quarter of fiscal 2024 as compared to $17.5 million of cash
provided by operations in the prior-year period. The decrease in
cash from operations was primarily due to the timing of annual
incentive compensation payments along with payments made for the
ASCEND transformation program. In fiscal 2023, the annual incentive
compensation payment was recorded in the second quarter.
Industrial Tools
& Services (IT&S)
(US$ in millions)
Three Months Ended
November 30, 2023
November 30, 2022
Net Sales
$137.0
$127.3
Operating Profit
$35.6
$26.6
Operating Profit %
26.0%
20.9%
Adjusted Op Profit (1)
$38.5
$29.1
Adjusted Op Profit % (1)
28.1%
22.9%
(1) Excludes approximately $2.1 million of
restructuring charges and $0.8 million of ASCEND charges in the
first quarter of fiscal 2024 and approximately $0.9 million of
restructuring charges and $1.5 million of ASCEND charges in the
first quarter of fiscal 2023.
IT&S Results Comparisons
First quarter fiscal 2024 net sales for IT&S were $137.0
million, ahead 7.6% year-over-year with organic growth of 5.8%.
Organic growth was driven by a 4.5% increase in product sales and a
10.1% increase in service revenues. The segment’s operating profit
margin increased 510 basis points to 26.0% and adjusted operating
profit margin improved 520 basis points to 28.1%.
Corporate Expenses from Continuing Operations
Corporate expenses were $8.9 million and $15.8 million for the
first quarter of fiscal 2024 and fiscal 2023, respectively. The
year-over-year decline was driven by significantly lower
ASCEND-related charges during the quarter. Adjusted corporate
expenses(2) of $8.1 million for the first quarter increased $0.7
million compared to the prior year, as a result of higher incentive
compensation.
(2) First quarter fiscal 2024 adjusted
corporate expense excludes approximately $0.3 million of
restructuring charges, $0.4 million of ASCEND charges, and $0.1
million of impairment and divestiture charges as compared to
approximately $0.1 million of restructuring charges, $7.9 million
of ASCEND charges, and $0.4 million of leadership transition
charges in the first quarter of fiscal 2023.
Balance Sheet and
Leverage
(US$ in millions)
November
30, 2023
August 31,
2023
November
30, 2022
Cash Balance
$148.0
$154.4
$129.2
Debt Balance
$244.5
$214.1
$202.2
Net Debt to Adjusted EBITDA*
0.9x
0.6x
0.7x
*Calculated in accordance with the terms
of the Company’s September 2022 Senior Credit Facility.
Net debt at November 30, 2023, was $96.5 million, resulting in a
net debt to adjusted EBITDA ratio of 0.9x. The Company repurchased
approximately one million shares of its common stock in the first
quarter of fiscal 2024 for $26 million under its share repurchase
program announced in March 2022.
Outlook
“With the solid start to fiscal 2024, we are on track to achieve
our full-year financial objectives,” concluded Sternlieb.
As such, the Company affirms its fiscal 2024 guidance,
projecting a net sales range of $590 million to $605 million. The
forecast anticipates organic growth of approximately 2% to 4%, with
expected adjusted EBITDA in the range of $142 million to $152
million, and free cash flow between $60 million to $70 million.
This forecast is based on key foreign exchange rate assumptions and
assumes the absence of a broad-based global recession. The key
foreign exchange rates and other guidance assumptions are included
in the presentation materials accompanying the earnings
webcast.
Conference Call Information
An investor conference call is scheduled for 7:30 am CT on
December 20, 2023. 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. In addition to statements
with respect to guidance, the terms “outlook,” “guidance,” “may,”
“should,” “could,” “anticipate,” “believe,” “estimate,” “expect,”
“objective,” “plan,” “project” and similar expressions are intended
to identify forward-looking statements. Such forward-looking
statements are subject to inherent risks and uncertainties that may
cause actual results or events to differ materially from those
contemplated by such forward-looking statements. In addition to the
assumptions and other factors referred to specifically in
connection with such statements, risks and uncertainties that may
cause actual results or events to differ materially from those
contemplated by such forward-looking statements include, without
limitation, general economic uncertainty, market conditions in the
industrial, oil & gas, energy, power generation,
infrastructure, commercial construction, truck and automotive
industries, the impact of geopolitical activity, including the
invasion of Ukraine by Russia and international sanctions imposed
in response thereto, as well as the armed conflict involving Hamas
and Israel, the ability of the Company to achieve its plans or
objectives related to its growth strategy, market acceptance of
existing and new products, market acceptance of price increases,
successful integration of acquisitions, the impact of dispositions
and restructurings, the ability of the Company to continue to
achieve its objectives related to the ASCEND program, including any
assumptions underlying its calculation of expected incremental
operating profit or program investment, operating margin risk due
to competitive pricing and operating efficiencies, supply chain
risk, risks related to reliance on independent agents and
distributors for the distribution and service of products,
material, labor, or overhead cost increases, tax law changes,
foreign currency risk, interest rate risk, commodity risk, tariffs,
litigation matters, impairment of goodwill or other intangible
assets, the Company’s ability to access capital markets and other
risks and uncertainties that may be referred to or noted in the
Company’s reports filed with the Securities and Exchange Commission
from time to time, including those described in the Company’s Form
10-K for the fiscal year ended August 31, 2023 and most recent
report on Form 10-Q. 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 organic growth, 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 and adjusted EBITDA,
adjusted corporate expense, adjusted SG&A expense, free cash
flow and net debt. This press release includes reconciliations of
non-GAAP measures to the most comparable GAAP measure, included in
the tables attached to this press release or in footnotes to the
tables included in this press release. 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,
services, technology, and solutions provider serving a broad and
diverse set of customers and end markets for mission-critical
applications in more than 100 countries. The Company makes complex,
often hazardous jobs possible safely and efficiently. Enerpac Tool
Group’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 (In thousands) (Unaudited)
November 30, August 31,
2023
2023
Assets Current assets Cash and cash equivalents
$
147,956
$
154,415
Accounts receivable, net
94,925
97,649
Inventories, net
80,081
74,765
Other current assets
36,997
28,811
Total current assets
359,959
355,640
Property, plant and equipment, net
37,963
38,968
Goodwill
266,538
266,494
Other intangible assets, net
37,726
37,338
Other long-term assets
63,381
64,157
Total assets
$
765,567
$
762,597
Liabilities and Shareholders' Equity Current
liabilities Trade accounts payable
$
45,505
$
50,483
Accrued compensation and benefits
21,775
33,194
Current maturities of long-term debt
4,375
3,750
Income taxes payable
4,772
3,771
Other current liabilities
50,557
56,922
Total current liabilities
126,984
148,120
Long-term debt, net
240,128
210,337
Deferred income taxes
6,031
5,667
Pension and postretirement benefit liabilities
10,168
10,247
Other long-term liabilities
60,580
61,606
Total liabilities
443,891
435,977
Shareholders' equity Capital stock
16,793
16,752
Additional paid-in capital
223,474
220,472
Treasury stock
(826,622
)
(800,506
)
Retained earnings
1,028,871
1,011,112
Accumulated other comprehensive loss
(120,840
)
(121,210
)
Stock held in trust
(3,576
)
(3,484
)
Deferred compensation liability
3,576
3,484
Total shareholders' equity
321,676
326,620
Total liabilities and shareholders' equity
$
765,567
$
762,597
Enerpac Tool Group Corp. Condensed Consolidated
Statements of Earnings (In thousands, except per share
amounts) (Unaudited) Three Months
Ended November 30, November 30,
2023
2022
Net sales
$
141,970
$
139,382
Cost of products sold
67,720
71,476
Gross profit
74,250
67,906
Selling, general and administrative expenses
42,216
53,247
Amortization of intangible assets
824
1,368
Restructuring charges
2,401
982
Impairment & divestiture charges
147
-
Operating profit
28,662
12,309
Financing costs, net
3,697
2,815
Other expense, net
991
702
Earnings before income tax expense
23,974
8,792
Income tax expense
5,669
2,383
Net earnings from continuing operations
18,305
6,409
(Loss) earnings from discontinued operations, net of income
taxes
(567
)
1,044
Net earnings
$
17,738
$
7,453
Earnings per share from continuing
operations Basic
$
0.34
$
0.11
Diluted
0.33
0.11
(Loss) earnings per share from discontinued
operations Basic
$
(0.01
)
$
0.02
Diluted
(0.01
)
0.02
Earnings per share* Basic
$
0.33
$
0.13
Diluted
0.32
0.13
Weighted average common shares
outstanding Basic
54,527
56,886
Diluted
55,008
57,317
*The total of earnings per share from
continuing operations and loss (earnings) 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 November
30, November 30,
2023
2022
Operating Activities Cash (used in) provided by operating
activities - continuing operations
$
(3,917
)
$
17,814
Cash used in operating activities - discontinued operations
(2,758
)
(281
)
Cash (used in) provided by operating activities
$
(6,675
)
$
17,533
Investing Activities Capital expenditures
(1,567
)
(2,535
)
Purchase of business assets
(1,027
)
-
Cash used in investing activities - continuing operations
$
(2,594
)
$
(2,535
)
Cash used in investing activities
$
(2,594
)
$
(2,535
)
Financing Activities Borrowings on revolving credit
facility
39,000
14,000
Principal repayments on revolving credit facility
(8,000
)
(11,000
)
Principal repayments on term loan
(625
)
-
Proceeds from issuance of term loan
-
200,000
Payment for redemption of revolver
-
(200,000
)
Swingline borrowings/repayments, net
-
(4,000
)
Payment of debt issuance costs
-
(2,417
)
Purchase of treasury shares
(26,116
)
-
Stock options, taxes paid related to the net share settlement of
equity awards & other
236
3
Payment of cash dividend
(2,178
)
(2,274
)
Cash provided by (used in) financing activities - continuing
operations
$
2,317
$
(5,688
)
Cash provided by (used in) financing activities
$
2,317
$
(5,688
)
Effect of exchange rate changes on cash
493
(766
)
Net (decrease) increase from cash and cash equivalents
$
(6,459
)
$
8,544
Cash and cash equivalents - beginning of period
154,415
120,699
Cash and cash equivalents - end of period
$
147,956
$
129,243
Enerpac Tool Group Corp. Supplemental Unaudited Data
Reconciliation of GAAP Measures to Non-GAAP Measures for
Continuing Operations (In thousands) Fiscal 2023
Fiscal 2024 Q1 Q2 Q3 Q4
TOTAL Q1 Q2 Q3 Q4 TOTAL
Net Sales Industrial Tools & Services Segment
$
127,297
$
130,904
$
144,126
$
152,851
$
555,178
$
137,035
$
-
$
-
$
-
$
137,035
Other
12,085
11,056
12,127
7,758
43,026
4,935
-
-
-
4,935
Enerpac Tool Group
$
139,382
$
141,960
$
156,253
$
160,609
$
598,204
$
141,970
$
-
$
-
$
-
$
141,970
% Net Sales Growth Industrial Tools & Services
Segment
5
%
4
%
3
%
9
%
5
%
8
%
-
-
-
8
%
Other
26
%
4
%
5
%
-36
%
-2
%
-59
%
-
-
-
-59
%
Enerpac Tool Group
6
%
4
%
3
%
6
%
5
%
2
%
-
-
-
2
%
Adjusted Selling, general and administrative expenses
Selling, general and administrative expenses
$
53,247
$
52,059
$
48,809
$
50,949
$
205,063
$
42,216
$
-
$
-
$
-
$
42,216
Leadership transition charges
(400
)
(202
)
(90
)
(90
)
(783
)
-
-
-
-
-
M&A charges
-
(196
)
(166
)
(653
)
(1,015
)
-
-
-
-
-
ASCEND transformation program charges
(9,382
)
(11,197
)
(5,536
)
(8,381
)
(34,495
)
(1,093
)
-
-
-
(1,093
)
Adjusted Selling, general and administrative expenses
$
43,465
$
40,464
$
43,017
$
41,825
$
168,770
$
41,123
$
-
$
-
$
-
$
41,123
Adjusted Selling, general and administrative expenses
% Enerpac Tool Group
31.2
%
28.5
%
27.5
%
26.0
%
28.2
%
29.0
%
-
-
-
29.0
%
Adjusted Operating profit Operating profit
$
12,309
$
13,972
$
25,439
$
32,202
$
83,922
$
28,662
$
-
$
-
$
-
$
28,662
Impairment & divestiture (benefit) charges
-
-
-
(6,155
)
(6,155
)
147
-
-
-
147
Restructuring charges (1)
982
2,987
2,252
1,461
7,681
2,401
-
-
-
2,401
Leadership transition charges
400
202
90
90
783
-
-
-
-
-
M&A charges
-
196
166
653
1,015
-
-
-
-
-
ASCEND transformation program charges
9,419
11,372
5,947
8,681
35,419
1,229
-
-
-
1,229
Adjusted operating profit
$
23,110
$
28,729
$
33,894
$
36,932
$
122,665
$
32,439
$
-
$
-
$
-
$
32,439
Adjusted Operating Profit by Segment Industrial Tools
& Services Segment
$
29,099
$
34,836
$
39,814
$
45,269
$
149,019
$
38,470
$
-
$
-
$
-
$
38,470
Other
1,424
1,156
1,965
254
4,799
2,118
-
-
-
2,118
Corporate / General
(7,413
)
(7,263
)
(7,885
)
(8,591
)
(31,153
)
(8,149
)
-
-
-
(8,149
)
Adjusted operating profit
$
23,110
$
28,729
$
33,894
$
36,932
$
122,665
$
32,439
$
-
$
-
$
-
$
32,439
Adjusted Operating Profit % by Segment Industrial
Tools & Services Segment
22.9
%
26.6
%
27.6
%
29.6
%
26.8
%
28.1
%
-
-
-
28.1
%
Other
11.8
%
10.5
%
16.2
%
3.3
%
11.2
%
42.9
%
-
-
-
42.9
%
Adjusted Operating Profit %
16.6
%
20.2
%
21.7
%
23.0
%
20.5
%
22.8
%
-
-
-
22.8
%
EBITDA from Continuing Operations (2) Net earnings
from continuing operations
$
6,409
$
7,158
$
16,976
$
23,105
$
53,649
$
18,305
$
-
$
-
$
-
$
18,305
Financing costs, net
2,815
3,105
3,250
3,219
12,389
3,697
-
-
-
3,697
Income tax expense
2,383
2,988
4,688
5,190
15,249
5,669
-
-
-
5,669
Depreciation & amortization
4,193
4,226
4,084
3,810
16,313
3,426
-
-
-
3,426
EBITDA
$
15,800
$
17,477
$
28,998
$
35,324
$
97,600
$
31,097
$
-
$
-
$
-
$
31,097
Adjusted EBITDA from Continuing Operations (2) EBITDA
$
15,800
$
17,477
$
28,998
$
35,324
$
97,600
$
31,097
$
-
$
-
$
-
$
31,097
Impairment & divestiture (benefit) charges
-
-
-
(6,155
)
(6,155
)
147
-
-
-
147
Restructuring charges (1)
982
2,987
2,252
1,461
7,681
2,401
-
-
-
2,401
Leadership transition charges
400
202
90
90
783
-
-
-
-
-
M&A charges
-
196
166
653
1,015
-
-
-
-
-
ASCEND transformation program charges
9,419
11,372
5,947
8,681
35,419
1,229
-
-
-
1,229
Adjusted EBITDA
$
26,601
$
32,234
$
37,453
$
40,054
$
136,343
$
34,874
$
-
$
-
$
-
$
34,874
Adjusted EBITDA by Segment Industrial Tools &
Services Segment
$
31,698
$
37,458
$
42,525
$
47,952
$
159,633
$
40,880
$
-
$
-
$
-
$
40,880
Other
2,316
2,050
2,855
739
7,961
2,324
-
-
-
2,324
Corporate / General
(7,413
)
(7,274
)
(7,927
)
(8,637
)
(31,251
)
(8,330
)
-
-
-
(8,330
)
Adjusted EBITDA
$
26,601
$
32,234
$
37,453
$
40,054
$
136,343
$
34,874
$
-
$
-
$
-
$
34,874
Adjusted EBITDA % by Segment Industrial Tools &
Services Segment
24.9
%
28.6
%
29.5
%
31.4
%
28.8
%
29.8
%
-
-
-
29.8
%
Other
19.2
%
18.5
%
23.5
%
9.5
%
18.5
%
47.1
%
-
-
-
47.1
%
Adjusted EBITDA %
19.1
%
22.7
%
24.0
%
24.9
%
22.8
%
24.6
%
-
-
-
24.6
%
Notes: (1) Approximately $0.6 million of the Q4
fiscal 2023 restructuring charges were recorded in cost of products
sold. (2) EBITDA represents net earnings from continuing operations
before financing costs, net, income tax expense, and depreciation
& amortization. Neither EBITDA nor adjusted EBITDA are
calculated based upon generally accepted accounting principles
("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.
Enerpac Tool Group Corp. Supplemental
Unaudited Data Reconciliation of GAAP Measures to Non-GAAP
Measures (Continued) (In thousands) Fiscal 2023
Fiscal 2024 Q1 Q1 Net Sales by Segment
Industrial Tools & Services Segment
$
127,297
$
137,035
Other
12,085
4,935
Total
$
139,382
$
141,970
Plus: Fx Impact on Net Sales Industrial Tools &
Services Segment
$
2,262
$
-
Other
-
-
Total
$
2,262
$
-
Plus: Impact from Divestitures or Acquisitions on Net
Sales Industrial Tools & Services Segment
$
-
$
-
Other
(7,031
)
-
Total
$
(7,031
)
$
-
Organic Sales by Segment (3) Industrial Tools &
Services Segment
$
129,559
$
137,035
Other
5,054
4,935
Total
$
134,613
$
141,970
Organic Sales Growth (Decline) % Industrial Tools
& Services Segment
6
%
Other
-2
%
Total
5
%
Net Sales by Product Line Product
$
111,002
$
109,856
Service
28,380
32,114
Total
$
139,382
$
141,970
Plus: Fx Impact on Net Sales Product
$
1,481
$
-
Service
781
-
Total
$
2,262
$
-
Plus: Impact from Divestitures or Acquisitions on Net
Sales Product
(7,031
)
-
Service
-
-
Total
$
(7,031
)
$
-
Organic Sales by Segment (3) Product
$
105,452
$
109,856
Service
29,161
32,114
Total
$
134,613
$
141,970
Organic Sales Growth (Decline) % Product
4
%
Service
10
%
Total
5
%
(3) Organic Sales (formerly referred to as "core sales") is
defined as sales excluding the impact to foreign currency changes
and the impact from recent acquisitions and divestitures to net
sales
Enerpac Tool Group Corp. Supplemental Unaudited
Data Reconciliation of GAAP Measures to Non-GAAP Measures
(Continued) (In thousands, except for per share amounts)
Fiscal 2023 Fiscal 2024 Q1 Q2 Q3
Q4 TOTAL Q1 Q2 Q3 Q4
TOTAL Adjusted Earnings (4) Net Earnings
$
7,453
$
4,497
$
12,380
$
22,231
$
46,561
$
17,738
$
-
$
-
$
-
$
17,738
Earnings (loss) from Discontinued Operations, net of income tax
1,044
(2,661
)
(4,596
)
(874
)
(7,088
)
(567
)
-
-
-
(567
)
Net Earnings from Continuing Operations
$
6,409
$
7,158
$
16,976
$
23,105
$
53,649
$
18,305
$
-
$
-
$
-
$
18,305
Impairment & divestiture (benefit) charges
-
-
-
(6,155
)
(6,155
)
147
-
-
-
147
Restructuring charges (1)
982
2,987
2,252
1,461
7,681
2,401
-
-
-
2,401
Leadership transition charges
400
202
90
90
783
-
-
-
-
-
M&A charges
-
196
166
653
1,015
-
-
-
-
-
ASCEND transformation program charges
9,419
11,372
5,947
8,681
35,419
1,229
-
-
-
1,229
Accelerated debt issuance costs
317
-
-
-
317
Net tax effect of reconciling items above
(719
)
(1,652
)
(3,197
)
(4,408
)
(9,976
)
(411
)
-
-
-
(411
)
Other income tax expense
-
144
-
-
144
-
-
-
-
-
Adjusted Net Earnings from Continuing Operations
$
16,808
$
20,407
$
22,234
$
23,427
$
82,877
$
21,671
$
-
$
-
$
-
$
21,671
Adjusted Diluted Earnings per share (4) Net Earnings
$
0.13
$
0.08
$
0.22
$
0.40
$
0.82
$
0.32
$
-
$
-
$
-
$
0.32
Earnings (loss) from Discontinued Operations, net of income tax
0.02
(0.05
)
(0.08
)
(0.02
)
(0.12
)
(0.01
)
-
-
-
(0.01
)
Net Earnings from Continuing Operations
$
0.11
$
0.12
$
0.30
$
0.41
$
0.94
$
0.33
$
-
$
-
$
-
$
0.33
Impairment & divestiture (benefit) charges, net of tax effect
-
-
-
(0.11
)
(0.11
)
0.00
-
-
-
0.00
Restructuring charges (1), net of tax effect
0.02
0.05
0.03
0.01
0.11
0.04
-
-
-
0.04
Leadership transition charges, net of tax effect
0.01
0.00
0.00
0.00
0.01
-
-
-
-
-
M&A charges, net of tax effect
-
0.00
0.00
0.01
0.01
-
-
-
-
-
ASCEND transformation program charges, net of tax effect
0.15
0.17
0.06
0.10
0.48
0.02
-
-
-
0.02
Accelerated debt issuance costs, net of tax effect
0.01
0.00
0.00
0.00
0.00
-
-
-
-
-
Other income tax expense
-
0.00
-
-
-
-
-
-
-
-
Adjusted Diluted Earnings per share from Continuing
Operations
$
0.29
$
0.35
$
0.39
$
0.42
$
1.45
$
0.39
$
-
$
-
$
-
$
0.39
Free Cash Flow Cash provided by (used in) operating
activities
$
17,533
$
(7,756
)
$
17,254
$
50,572
$
77,603
$
(6,675
)
$
-
$
-
$
-
$
(6,675
)
Capital expenditures
(2,535
)
(2,346
)
(2,915
)
(919
)
(8,715
)
(1,567
)
-
-
-
(1,567
)
Free Cash Flow
$
14,998
$
(10,102
)
$
14,339
$
49,653
$
68,888
$
(8,242
)
$
-
$
-
$
-
$
(8,242
)
Notes continued: (4) 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 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. 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.
Enerpac Tool Group Corp.
Supplemental Unaudited Data Reconciliation of GAAP To
Non-GAAP Guidance (In millions) Fiscal 2024
Low High Reconciliation of Continued Operations
GAAP Operating Profit To Adjusted EBITDA (5) GAAP
Operating profit
$
113
$
130
ASCEND transformation program charges
10
7
Restructuring charges
5
3
Adjusted operating profit
$
128
$
140
Other expense, net
(1
)
(1
)
Depreciation & amortization
15
13
Adjusted EBITDA
$
142
$
152
Reconciliation of GAAP Cash Flow From Operations to Free
Cash Flow Cash provided by operating activities
$
72
$
87
Capital expenditures
(12
)
(17
)
Free Cash Flow Guidance
$
60
$
70
Notes continued: (5) Management does not provide
guidance on GAAP financial measures as we are unable to predict and
estimate with certainty items such as potential impairments,
refinancing costs, business divestiture gains/losses, discrete tax
adjustments, or other items impacting GAAP financial metrics. As a
result, we have included above only those items about which we are
aware and are reasonably likely to occur during the guidance period
covered.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231219661325/en/
Travis Williams Director of Investor Relations
+1.262.293.1912
Enerpac Tool (NYSE:EPAC)
Historical Stock Chart
From Apr 2024 to May 2024
Enerpac Tool (NYSE:EPAC)
Historical Stock Chart
From May 2023 to May 2024