Sign In  |  Register  |  About Pleasanton  |  Contact Us

Pleasanton, CA
September 01, 2020 1:32pm
7-Day Forecast | Traffic
  • Search Hotels in Pleasanton

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Enerpac Tool Group Reports Strong Fourth Quarter and Full-Year Results; Introduces Full-Year Fiscal 2024 Outlook

Fiscal 2023 Continuing Operations Highlights*

  • Net sales of $598 million, a 5% increase, with core sales growth of 8%. **
  • Operating margin was 14.0% and adjusted operating margin was 20.5%.
  • Net earnings were $54 million, or $0.94 per diluted share.
  • Adjusted EBITDA was $136 million, an increase of 65% year over year. Adjusted EBITDA margin was 22.8%, an increase of 830 basis points year over year.
  • Generated operating cash flow of $78 million and free cash flow of $70 million, an increase of 57% year over year.
  • Returned $58 million to shareholders through repurchase of 2.2 million shares.

Fourth Quarter of Fiscal 2023 Continuing Operations Highlights*

  • Net sales were $161 million, a 6% growth compared to the prior year, with a 9% increase in core sales. **
  • Operating margin was 20.0% and adjusted operating margin was 23.0%.
  • Net earnings were $23 million, or $0.41 per diluted share.
  • Adjusted EBITDA was $40 million, an increase of 31% year over year. Adjusted EBITDA margin was 24.9%, an increase of 480 basis points year over year.

*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.

**Core growth represents revenue growth excluding the impact of foreign exchange rates, acquisitions, and divestitures. A reconciliation of core sales to the comparable net sales are presented in the tables accompanying this release.

Enerpac Tool Group Corp. (NYSE: EPAC) (the “Company” or “Enerpac”) today announced results for its fiscal year and the fourth quarter ended August 31, 2023.

“We are extremely pleased with Enerpac’s performance in fiscal 2023,” said Paul Sternlieb, Enerpac Tool Group’s President & CEO. “We generated revenue and free cash flow at the high end of our guidance range, while adjusted EBITDA well outpaced our expectations. We were equally pleased with the benefit of our ASCEND transformation program. In fiscal 2023, the first full year of the program, we achieved our targeted adjusted EBITDA benefits a year ahead of plan and remain on track to attain our 25% adjusted EBITDA margin target by fiscal 2025. Through permanent change across the organization, we are making Enerpac more efficient, more productive, and easier to do business with.”

“We continue to invest in our growth strategy, including expansion in targeted vertical markets, digital transformation, customer-driven innovation, and expansion in Asia Pacific,” continued Sternlieb. “At the same time, we have returned $58 million in capital through our share repurchase program, while reducing our balance sheet leverage.”

Consolidated Results from Continuing Operations

 

(US$ in millions, except per share)

 

 

 

 

 

Three Months Ended

 

Twelve Months Ended

August 31,

2023

 

August 31,

2022

 

August 31,

2023

 

August 31, 2022

Net Sales

$160.6

 

$151.8

 

$598.2

 

$571.2

Net Earnings

$23.1

 

$10.2

 

$53.6

 

$19.6

Diluted Earnings Per Share

$0.41

 

$0.18

 

$0.94

 

$0.33

Adjusted Diluted Earnings Per Share

$0.42

 

$0.35

 

$1.45

 

$0.81

Fiscal 2023 Consolidated Results Comparisons

“On strong revenue growth, we captured exceptional improvement in operating profit and margins due to our transformational initiatives that enhanced productivity and efficiency at the gross profit and SG&A lines,” stated Tony Colucci, Executive Vice President and Chief Financial Officer.

Consolidated net sales in fiscal 2023 were $598.2 million, compared to $571.2 million in fiscal 2022. Core sales increased 8% year over year, with product sales up 12% and service revenues down 7%, the latter due to the implementation of 80/20 analysis and a more selective process for quoting projects in the MENAC region. Core growth was driven by the execution of ASCEND go-to-market initiatives to accelerate organic growth and the implementation of our growth strategy.

Operating profit increased 174% year over year to $83.9 million, with an operating profit margin of 14.0%, up from 5.4% in fiscal 2022. Operating margin expansion was driven by initiatives to accelerate organic growth, improve operational efficiency, and reduce SG&A, partially offset by additional costs associated with the ASCEND transformation program and higher incentive compensation.

Adjusted operating profit for fiscal 2023 increased 87% to $122.7 million with an adjusted operating margin of 20.5%, up from 11.5% in fiscal 2022. Adjusted operating margin benefited from initiatives to accelerate organic growth, improve operational efficiency, and reduce SG&A, partially offset by higher incentive compensation.

Fiscal 2023 net earnings and diluted EPS were $53.6 million and $0.94, respectively, compared to $19.6 million and $0.33, respectively, in fiscal 2022.

Fiscal 2023 adjusted EBITDA was $136.3 million compared to $82.8 million in fiscal 2022. The adjusted EBITDA margin expanded 830 basis points from 14.5% to 22.8% in fiscal 2023.

Fourth Quarter Consolidated Results Comparisons

Consolidated net sales for the fourth quarter of fiscal 2023 were $160.6 million compared to $151.8 million in the prior-year period. Core sales improved 9% year over year, with product sales up 14% and service revenues down 12%.

Operating profit increased 145% year over year to $32.2 million, with an operating profit margin of 20.0%, up from 8.6% in the fourth quarter of fiscal 2022. Adjusted operating profit increased 36% to $36.9 million in the fourth quarter of 2023 with a 510 basis points expansion in the adjusted operating margin to 23.0%.

Fiscal 2023 fourth quarter net earnings and diluted earnings per share were $23.1 million and $0.41, respectively, compared to $10.2 million and $0.18, respectively, in the fourth quarter of fiscal 2022.

Fourth quarter adjusted EBITDA was $40.1 million compared to $30.5 million in the year-ago period, achieving an adjusted EBITDA margin of 24.9%, up from 20.1% in the year-ago period.

Industrial Tools & Services (IT&S)

 

 

 

 

 

(US$ in millions)

 

 

 

 

 

 

 

 

Three Months Ended

 

Twelve Months Ended

August 31,

2023

 

August 31,

2022

 

August 31,

2023

 

August 31,

2022

Net Sales

$152.9

 

$139.7

 

$555.2

 

$527.3

Operating Profit

$42.6

 

$28.9

 

$135.9

 

$78.7

Operating Profit %

27.9%

 

20.7%

 

24.5%

 

14.9%

Adjusted Op Profit (1)

$45.3

 

$31.9

 

$149.0

 

$86.6

Adjusted Op Profit % (1)

29.6%

 

22.8%

 

26.8%

 

16.4%

 

(1) Excludes $1.4 million of restructuring charges and $1.3 million of ASCEND charges in the fourth quarter of fiscal 2023 compared to $2.2 million of restructuring charges and $0.8 million of ASCEND charges in the fourth quarter of fiscal 2022. The twelve months ended August 31, 2023, excludes $6.0 million of restructuring charges and $7.1 million of ASCEND charges, compared to $5.9 million of restructuring charges, $0.9 million of ASCEND charges, $1.1 million of impairment & divestiture charges, $0.5 million of leadership transition charges, and a gain on sale of a facility, net of transaction charges, of $0.6 million in the prior fiscal year.

IT&S Results Comparisons

Fiscal 2023 net sales for IT&S were $555.2 million, 5% higher than fiscal 2022, with an 8% increase in core sales. Operating profit margin increased 960 basis points to 24.5% and adjusted operating profit margin increased 1,040 basis points to 26.8% from 16.4%.

Fourth quarter fiscal 2023 net sales for IT&S were $152.9 million, ahead 9% year over year with an 8% increase in core sales. The segment’s operating profit margin increased 720 basis points to 27.9% and its adjusted operating profit margin increased 680 basis points to 29.6%.

The drivers of the year over year improvement in operating margin and adjusted operating margin for the IT&S segment are the same as those noted above in our consolidated results.

Corporate Expenses from Continuing Operations

Corporate expenses were $62.9 million and $48.8 million for fiscal 2023 and fiscal 2022, respectively. Adjusted corporate expenses(2) of $31.2 million in fiscal 2023 increased by $8.1 million year over year, primarily due to higher incentive compensation expense.

Corporate expenses were $16.8 million and $16.3 million for the fourth quarter of fiscal 2023 and fiscal 2022, respectively. Adjusted corporate expenses(2) of $8.6 million for the fourth quarter of fiscal 2023 increased by $2.1 million.

(2) Fiscal 2023 adjusted corporate expense excludes approximately $1.7 million of restructuring charges, $28.3 million of ASCEND charges, $1.0 million in M&A charges, $0.8 million of leadership transition charges, compared to $2.3 million of restructuring charges, $12.7 million of ASCEND charges, $7.7 million of leadership transition charges, and $3.0 million in business review charges in fiscal 2022. Fourth quarter fiscal 2023 adjusted corporate expense excludes approximately $0.1 million of restructuring charges, $7.4 million of ASCEND charges, $0.7 million in M&A charges, and $0.1 million of leadership transition charges as compared to $0.8 million of restructuring charges and $8.9 million of ASCEND charges in the fourth quarter of fiscal 2022.

Balance Sheet and Leverage

 

 

(US$ in millions)

 

 

 

August 31, 2023

 

May 31, 2023

 

August 31, 2022

Cash Balance

 

$154.4

 

$142.0

 

$120.7

Debt Balance

 

$214.1

 

$234.7

 

$204.0

Net Debt to Adjusted EBITDA*

 

0.6x

 

1.0x

 

0.9x

Net debt at August 31, 2023 was $60 million, resulting in a net debt to adjusted EBITDA ratio of 0.6x. The company purchased approximately 1.4 million shares of its common stock in the fourth quarter of fiscal 2023 for a total of approximately $37 million under its share repurchase program announced in March 2022.

*Calculated in accordance with the terms of the Company’s September 2022 Senior Credit Facility.

Outlook

“Our guidance for fiscal 2024 reflects a fair degree of caution, given the continued uncertainty in the macro environment," concluded Sternlieb. “However, we are confident in Enerpac’s ability to outperform the industry and gain share based on the success of our four-pillar growth strategy, and we remain committed to our multi-year financial framework of 6% to 7% compound annual growth of organic revenue through fiscal 2026.”

The company set its full-year fiscal 2024 net sales guidance range at $590 million to $605 million, with core growth of approximately 2 to 4 percent, adjusted EBITDA guidance at $142 million to $152 million, and anticipated free cash flow of $60 million to $70 million. This forecast is based on the Company’s key foreign exchange rate assumptions and assumes that there is no broad-based global recession.

Conference Call Information

An investor conference call is scheduled for 7:30 am CT on October 17, 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, 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 plans or objectives related to the ASCEND program, operating margin risk due to competitive pricing and operating efficiencies, supply chain risk, 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, 2022 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 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, 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. 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 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)

 

 

August 31,

 

August 31,

2023

 

2022

Assets
Current assets
Cash and cash equivalents

$

154,415

 

$

120,699

 

Accounts receivable, net

 

97,649

 

 

106,747

 

Inventories, net

 

74,765

 

 

83,672

 

Other current assets

 

28,811

 

 

31,262

 

Total current assets

 

355,640

 

 

342,380

 

 
Property, plant and equipment, net

 

38,968

 

 

41,372

 

Goodwill

 

266,494

 

 

257,949

 

Other intangible assets, net

 

37,338

 

 

41,507

 

Other long-term assets

 

64,157

 

 

74,104

 

 
Total assets

$

762,597

 

$

757,312

 

 
Liabilities and Shareholders' Equity
Current liabilities
Trade accounts payable

$

50,483

 

$

72,524

 

Accrued compensation and benefits

 

33,194

 

 

21,390

 

Current maturities of long-term debt

 

3,750

 

 

-

 

Short-term debt

 

-

 

 

4,000

 

Income taxes payable

 

3,771

 

 

4,594

 

Other current liabilities

 

56,922

 

 

50,680

 

Total current liabilities

 

148,120

 

 

153,188

 

 
Long-term debt, net

 

210,337

 

 

200,000

 

Deferred income taxes

 

5,667

 

 

7,355

 

Pension and postretirement benefit liabilities

 

10,247

 

 

11,941

 

Other long-term liabilities

 

61,606

 

 

66,217

 

Total liabilities

 

435,977

 

 

438,701

 

 
Shareholders' equity
Capital stock

 

16,752

 

 

16,679

 

Additional paid-in capital

 

220,472

 

 

212,986

 

Treasury stock

 

(800,506

)

 

(742,844

)

Retained earnings

 

1,011,112

 

 

966,751

 

Accumulated other comprehensive loss

 

(121,210

)

 

(134,961

)

Stock held in trust

 

(3,484

)

 

(3,209

)

Deferred compensation liability

 

3,484

 

 

3,209

 

Total shareholders' equity

 

326,620

 

 

318,611

 

 
Total liabilities and shareholders' equity

$

762,597

 

$

757,312

 

Enerpac Tool Group Corp.
Condensed Consolidated Statements of Earnings
(In thousands, except per share amounts)
(Unaudited)
 

Three Months Ended

 

Twelve Months Ended

August 31,

 

August 31,

 

August 31,

 

August 31,

2023

 

2022

 

2023

 

2022

Net sales

$

160,609

 

$

151,827

 

$

598,204

 

$

571,223

 

Cost of products sold

 

81,701

 

 

78,093

 

 

303,165

 

 

305,835

 

Gross profit

 

78,908

 

 

73,734

 

 

295,039

 

 

265,388

 

 
Selling, general and administrative expenses

 

50,948

 

 

54,634

 

 

205,064

 

 

216,874

 

Amortization of intangible assets

 

1,037

 

 

1,628

 

 

5,112

 

 

7,306

 

Restructuring charges

 

876

 

 

3,049

 

 

7,096

 

 

8,135

 

Impairment & divestiture (benefit) charges

 

(6,155

)

 

1,297

 

 

(6,155

)

 

2,413

 

Operating profit

 

32,202

 

 

13,126

 

 

83,922

 

 

30,660

 

 
Financing costs, net

 

3,219

 

 

1,719

 

 

12,389

 

 

4,386

 

Other expense, net

 

688

 

 

1,278

 

 

2,635

 

 

2,282

 

Earnings before income tax expense

 

28,295

 

 

10,129

 

 

68,898

 

 

23,992

 

 
Income tax expense (benefit)

 

5,190

 

 

(95

)

 

15,249

 

 

4,401

 

Net earnings from continuing operations

 

23,105

 

 

10,224

 

 

53,649

 

 

19,591

 

Loss from discontinued operations, net of income taxes

 

(874

)

 

(190

)

 

(7,088

)

 

(3,905

)

Net earnings

$

22,231

 

$

10,034

 

$

46,561

 

$

15,686

 

 
Earnings per share from continuing operations
Basic

$

0.41

 

$

0.18

 

$

0.95

 

$

0.33

 

Diluted

 

0.41

 

 

0.18

 

 

0.94

 

 

0.33

 

 
Loss per share from discontinued operations
Basic

$

(0.02

)

$

(0.00

)

$

(0.13

)

$

(0.07

)

Diluted

 

(0.02

)

 

(0.00

)

 

(0.12

)

 

(0.07

)

 
Earnings per share*
Basic

$

0.40

 

$

0.17

 

$

0.82

 

$

0.26

 

Diluted

 

0.40

 

 

0.17

 

 

0.82

 

 

0.26

 

 
Weighted average common shares outstanding
Basic

 

55,740

 

 

57,524

 

 

56,680

 

 

59,538

 

Diluted

 

56,219

 

 

57,963

 

 

57,117

 

 

59,909

 

 
*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

 

Twelve Months Ended

August 31,

 

August 31,

 

August 31,

 

August 31,

2023

 

2022

 

2023

 

2022

Operating Activities
Cash provided by operating activities - continuing operations

$

54,012

 

$

44,731

 

$

78,573

 

$

52,246

 

Cash used in operating activities - discontinued operations

 

(3,440

)

 

(191

)

 

(970

)

 

(510

)

Cash provided by operating activities

$

50,572

 

$

44,540

 

$

77,603

 

$

51,736

 

 
Investing Activities
Capital expenditures

 

(1,009

)

 

(1,447

)

 

(9,400

)

 

(8,417

)

Proceeds from sale of property, plant and equipment

 

90

 

 

18

 

 

685

 

 

1,176

 

Proceeds from sale of business, net of transaction costs

 

20,057

 

 

-

 

 

20,057

 

 

-

 

Cash provided by (used in) investing activities - continuing operations

$

19,138

 

$

(1,429

)

$

11,342

 

$

(7,241

)

Cash provided by (used in) investing activities

$

19,138

 

$

(1,429

)

$

11,342

 

$

(7,241

)

 
Financing Activities
Borrowings on revolving credit facility

 

9,000

 

 

40,000

 

 

69,000

 

 

85,000

 

Principal repayments on revolving credit facility

 

(29,000

)

 

(45,000

)

 

(53,000

)

 

(60,000

)

Principal repayments on term loan

 

(625

)

 

-

 

 

(1,250

)

 

-

 

Proceeds from issuance of term loan

 

-

 

 

-

 

 

200,000

 

 

-

 

Payment for redemption of revolver

 

-

 

 

-

 

 

(200,000

)

 

-

 

Swingline borrowings/repayments, net

 

-

 

 

4,000

 

 

(4,000

)

 

4,000

 

Payment of debt issuance costs

 

-

 

 

-

 

 

(2,486

)

 

-

 

Purchase of treasury shares

 

(36,831

)

 

(38,817

)

 

(57,662

)

 

(75,112

)

Stock options, taxes paid related to the net share settlement of equity awards & other

 

3

 

 

(520

)

 

(1,458

)

 

(3,681

)

Payment of cash dividend

 

-

 

 

-

 

 

(2,274

)

 

(2,409

)

Cash used in financing activities - continuing operations

$

(57,453

)

$

(40,337

)

$

(53,130

)

$

(52,202

)

Cash used in financing activities

$

(57,453

)

$

(40,337

)

$

(53,130

)

$

(52,202

)

 
Effect of exchange rate changes on cash

 

157

 

 

(5,780

)

 

(2,099

)

 

(11,946

)

 
Net cash increase (decrease) from continuing operations

 

15,854

 

 

(2,815

)

 

34,686

 

 

(19,143

)

Net cash decrease from discontinued operations

 

(3,440

)

 

(191

)

 

(970

)

 

(510

)

Net increase (decrease) from cash and cash equivalents

$

12,414

 

$

(3,006

)

$

33,716

 

$

(19,653

)

Cash and cash equivalents - beginning of period

 

142,001

 

 

123,705

 

 

120,699

 

 

140,352

 

Cash and cash equivalents - end of period

$

154,415

 

$

120,699

 

$

154,415

 

$

120,699

 

Enerpac Tool Group Corp.
Supplemental Unaudited Data
Reconciliation of GAAP Measures to Non-GAAP Measures
(In thousands) Fiscal 2022 Fiscal 2023
Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL
Net Sales
Industrial Tools & Services Segment

$

121,313

 

$

125,940

 

$

140,395

 

$

139,694

 

$

527,342

 

$

127,297

 

$

130,904

 

$

144,126

 

$

152,851

 

$

555,178

 

Other

 

9,590

 

 

10,659

 

 

11,499

 

 

12,133

 

 

43,881

 

 

12,085

 

 

11,056

 

 

12,127

 

 

7,758

 

 

43,026

 

Total

$

130,903

 

$

136,599

 

$

151,894

 

$

151,827

 

$

571,223

 

$

139,382

 

$

141,960

 

$

156,253

 

$

160,609

 

$

598,204

 

 
% Net Sales Growth
Industrial Tools & Services Segment

 

8

%

 

12

%

 

5

%

 

4

%

 

7

%

 

5

%

 

4

%

 

3

%

 

9

%

 

5

%

Other

 

32

%

 

35

%

 

18

%

 

14

%

 

23

%

 

26

%

 

4

%

 

5

%

 

-36

%

 

-2

%

Total

 

10

%

 

13

%

 

6

%

 

4

%

 

8

%

 

6

%

 

4

%

 

3

%

 

6

%

 

5

%

 
Adjusted Operating Profit from Continuing Operations
Operating profit

$

6,407

 

$

4,484

 

$

6,643

 

$

13,126

 

$

30,660

 

$

12,309

 

$

13,972

 

$

25,439

 

$

32,202

 

$

83,922

 

Impairment & divestiture charges (benefit)

 

-

 

 

1,116

 

 

-

 

 

1,297

 

 

2,413

 

 

-

 

 

-

 

 

-

 

 

(6,155

)

 

(6,155

)

Restructuring charges (1)

 

2,737

 

 

1,832

 

 

517

 

 

3,049

 

 

8,135

 

 

982

 

 

2,987

 

 

2,252

 

 

1,461

 

 

7,681

 

Gain on sale of facility, net of transaction charges

 

-

 

 

-

 

 

(585

)

 

-

 

 

(585

)

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Leadership transition charges (benefit) (2)

 

3,759

 

 

1,747

 

 

2,800

 

 

(37

)

 

8,269

 

 

400

 

 

202

 

 

90

 

 

90

 

 

783

 

Business review charges

 

-

 

 

2,500

 

 

502

 

 

-

 

 

3,002

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

M&A charges

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

196

 

 

166

 

 

653

 

 

1,015

 

ASCEND transformation program charges

 

-

 

 

-

 

 

3,856

 

 

9,760

 

 

13,616

 

 

9,419

 

 

11,372

 

 

5,947

 

 

8,681

 

 

35,419

 

Adjusted operating profit

$

12,903

 

$

11,679

 

$

13,733

 

$

27,195

 

$

65,510

 

$

23,110

 

$

28,729

 

$

33,894

 

$

36,932

 

$

122,665

 

 
Adjusted Operating Profit by Segment
Industrial Tools & Services Segment

$

19,646

 

$

15,654

 

$

19,421

 

$

31,878

 

$

86,600

 

$

29,099

 

$

34,836

 

$

39,814

 

$

45,269

 

$

149,019

 

Other

 

(1,257

)

 

334

 

 

1,017

 

 

1,853

 

 

1,947

 

 

1,424

 

 

1,156

 

 

1,965

 

 

254

 

 

4,799

 

Corporate / General

 

(5,486

)

 

(4,309

)

 

(6,705

)

 

(6,536

)

 

(23,037

)

 

(7,413

)

 

(7,263

)

 

(7,885

)

 

(8,591

)

 

(31,153

)

Adjusted operating profit

$

12,903

 

$

11,679

 

$

13,733

 

$

27,195

 

$

65,510

 

$

23,110

 

$

28,729

 

$

33,894

 

$

36,932

 

$

122,665

 

 
Adjusted Operating Profit %
Industrial Tools & Services Segment

 

16.2

%

 

12.4

%

 

13.8

%

 

22.8

%

 

16.4

%

 

22.9

%

 

26.6

%

 

27.6

%

 

29.6

%

 

26.8

%

Other

 

-13.1

%

 

3.1

%

 

8.8

%

 

15.3

%

 

4.4

%

 

11.8

%

 

10.5

%

 

16.2

%

 

3.3

%

 

11.2

%

Adjusted Operating Profit %

 

9.9

%

 

8.5

%

 

9.0

%

 

17.9

%

 

11.5

%

 

16.6

%

 

20.2

%

 

21.7

%

 

23.0

%

 

20.5

%

 
EBITDA from Continuing Operations (3)
Earnings from continuing operations

$

3,185

 

$

2,121

 

$

4,061

 

$

10,224

 

$

19,591

 

$

6,409

 

$

7,158

 

$

16,976

 

$

23,105

 

$

53,649

 

Financing costs, net

 

961

 

 

755

 

 

951

 

 

1,719

 

 

4,386

 

 

2,815

 

 

3,105

 

 

3,250

 

 

3,219

 

 

12,389

 

Income tax expense (benefit)

 

1,781

 

 

1,337

 

 

1,377

 

 

(95

)

 

4,401

 

 

2,383

 

 

2,988

 

 

4,688

 

 

5,190

 

 

15,249

 

Depreciation & amortization

 

5,175

 

 

4,986

 

 

4,822

 

 

4,617

 

 

19,600

 

 

4,193

 

 

4,226

 

 

4,084

 

 

3,810

 

 

16,313

 

EBITDA

$

11,102

 

$

9,199

 

$

11,211

 

$

16,465

 

$

47,978

 

$

15,800

 

$

17,477

 

$

28,998

 

$

35,324

 

$

97,600

 

 
Adjusted EBITDA from Continuing Operations (3)
EBITDA

$

11,102

 

$

9,199

 

$

11,211

 

$

16,465

 

$

47,978

 

$

15,800

 

$

17,477

 

$

28,998

 

$

35,324

 

$

97,600

 

Impairment & divestiture charges (benefit)

 

-

 

 

1,116

 

 

-

 

 

1,297

 

 

2,413

 

 

-

 

 

-

 

 

-

 

 

(6,155

)

 

(6,155

)

Restructuring charges (1)

 

2,737

 

 

1,832

 

 

517

 

 

3,049

 

 

8,135

 

 

982

 

 

2,987

 

 

2,252

 

 

1,461

 

 

7,681

 

Gain on sale of facility, net of transaction charges

 

-

 

 

-

 

 

(585

)

 

-

 

 

(585

)

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Leadership transition charges (benefit) (2)

 

3,759

 

 

1,747

 

 

2,800

 

 

(37

)

 

8,269

 

 

400

 

 

202

 

 

90

 

 

90

 

 

783

 

Business review charges

 

-

 

 

2,500

 

 

502

 

 

-

 

 

3,002

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

M&A charges

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

196

 

 

166

 

 

653

 

 

1,015

 

ASCEND transformation program charges

 

-

 

 

-

 

 

3,856

 

 

9,760

 

 

13,616

 

 

9,419

 

 

11,372

 

 

5,947

 

 

8,681

 

 

35,419

 

Adjusted EBITDA

$

17,598

 

$

16,394

 

$

18,301

 

$

30,534

 

$

82,828

 

$

26,601

 

$

32,234

 

$

37,453

 

$

40,054

 

$

136,343

 

 
Adjusted EBITDA by Segment
Industrial Tools & Services Segment

$

22,996

 

$

19,260

 

$

22,853

 

$

34,154

 

$

99,263

 

$

31,698

 

$

37,458

 

$

42,525

 

$

47,952

 

$

159,633

 

Other

 

(263

)

 

1,225

 

 

1,912

 

 

2,741

 

 

5,615

 

 

2,316

 

 

2,050

 

 

2,855

 

 

739

 

 

7,961

 

Corporate / General

 

(5,135

)

 

(4,091

)

 

(6,464

)

 

(6,361

)

 

(22,050

)

 

(7,413

)

 

(7,274

)

 

(7,927

)

 

(8,637

)

 

(31,251

)

Adjusted EBITDA

$

17,598

 

$

16,394

 

$

18,301

 

$

30,534

 

$

82,828

 

$

26,601

 

$

32,234

 

$

37,453

 

$

40,054

 

$

136,343

 

 
Adjusted EBITDA %
Industrial Tools & Services Segment

 

19.0

%

 

15.3

%

 

16.3

%

 

24.4

%

 

18.8

%

 

24.9

%

 

28.6

%

 

29.5

%

 

31.4

%

 

28.8

%

Other

 

-2.7

%

 

11.5

%

 

16.6

%

 

22.6

%

 

12.8

%

 

19.2

%

 

18.5

%

 

23.5

%

 

9.5

%

 

18.5

%

Adjusted EBITDA %

 

13.4

%

 

12.0

%

 

12.0

%

 

20.1

%

 

14.5

%

 

19.1

%

 

22.7

%

 

24.0

%

 

24.9

%

 

22.8

%

 
Notes:
(1) Approximately $0.6 million of the Q4 fiscal 2023 restructuring charges were recorded in cost of products sold.
(2) Caption updated from "Leadership transition & board search charges (benefit)" used during Fiscal 2022, costs included have not been altered.
(3) EBITDA represents net earnings from continuing operations before financing costs, net, income tax expense (benefit), 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
(In thousands) Fiscal 2022 Fiscal 2023
Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL
Net Sales by Segment
Industrial Tools & Services Segment

$

121,313

 

$

125,940

 

$

140,395

 

$

139,694

 

$

527,342

 

$

127,297

 

$

130,904

 

$

144,126

 

$

152,851

 

$

555,178

 

Other

 

9,590

 

 

10,659

 

 

11,499

 

 

12,133

 

 

43,881

 

 

12,085

 

 

11,056

 

 

12,127

 

 

7,758

 

 

43,026

 

Total

$

130,903

 

$

136,599

 

$

151,894

 

$

151,827

 

$

571,223

 

$

139,382

 

$

141,960

 

$

156,253

 

$

160,609

 

$

598,204

 

 
Fx Impact on Net Sales
Industrial Tools & Services Segment

$

(7,075

)

$

(3,189

)

$

(2,028

)

$

1,294

 

$

(10,998

)

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

Other

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Total

$

(7,075

)

$

(3,189

)

$

(2,028

)

$

1,294

 

$

(10,998

)

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

 
Impact from Divestitures or Acquisitions on Net Sales
Industrial Tools & Services Segment

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

Other

 

-

 

 

-

 

 

-

 

 

(5,556

)

 

(5,556

)

 

-

 

 

-

 

 

-

 

 

(121

)

 

(121

)

Total

$

-

 

$

-

 

$

-

 

$

(5,556

)

$

(5,556

)

$

-

 

$

-

 

$

-

 

$

(121

)

$

(121

)

 
Core Sales by Segment (4)
Industrial Tools & Services Segment

$

114,238

 

$

122,751

 

$

138,367

 

$

140,988

 

$

516,344

 

$

127,297

 

$

130,904

 

$

144,126

 

$

152,851

 

$

555,178

 

Other

 

9,590

 

 

10,659

 

 

11,499

 

 

6,577

 

 

38,325

 

 

12,085

 

 

11,056

 

 

12,127

 

 

7,637

 

 

42,905

 

Total

$

123,828

 

$

133,410

 

$

149,866

 

$

147,565

 

$

554,669

 

$

139,382

 

$

141,960

 

$

156,253

 

$

160,488

 

$

598,083

 

 
Core Sales Growth (Decline) %
Industrial Tools & Services Segment

 

11

%

 

7

%

 

4

%

 

8

%

 

8

%

Other

 

26

%

 

4

%

 

5

%

 

16

%

 

12

%

Total

 

13

%

 

6

%

 

4

%

 

9

%

 

8

%

 
Net Sales by Product Line
Product

$

101,939

 

$

108,157

 

$

121,414

 

$

122,616

 

$

454,126

 

$

111,002

 

$

115,251

 

$

129,995

 

$

134,379

 

$

490,629

 

Service

 

28,964

 

 

28,442

 

 

30,480

 

 

29,211

 

 

117,097

 

 

28,380

 

 

26,709

 

 

26,258

 

 

26,230

 

 

107,575

 

Total

$

130,903

 

$

136,599

 

$

151,894

 

$

151,827

 

$

571,223

 

$

139,382

 

$

141,960

 

$

156,253

 

$

160,609

 

$

598,204

 

 
Fx Impact on Net Sales
Product

$

(5,555

)

$

(2,628

)

$

(1,615

)

$

762

 

$

(9,035

)

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

Service

 

(1,520

)

 

(561

)

 

(413

)

 

532

 

 

(1,962

)

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Total

$

(7,075

)

$

(3,189

)

$

(2,028

)

$

1,294

 

$

(10,998

)

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

 
Impact from Divestitures or Acquisitions on Net Sales
Product

$

-

 

$

-

 

$

-

 

$

(5,556

)

$

(5,556

)

$

-

 

$

-

 

$

-

 

$

(121

)

$

(121

)

Service

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Total

$

-

 

$

-

 

$

-

 

$

(5,556

)

$

(5,556

)

$

-

 

$

-

 

$

-

 

$

(121

)

$

(121

)

 
Core Sales by Product Line (4)
Product

$

96,384

 

$

105,529

 

$

119,799

 

$

117,822

 

$

439,535

 

$

111,002

 

$

115,251

 

$

129,995

 

$

134,258

 

$

490,508

 

Service

 

27,444

 

 

27,881

 

 

30,067

 

 

29,743

 

 

115,135

 

 

28,380

 

 

26,709

 

 

26,258

 

 

26,230

 

 

107,575

 

Total

$

123,828

 

$

133,410

 

$

149,866

 

$

147,565

 

$

554,669

 

$

139,382

 

$

141,960

 

$

156,253

 

$

160,488

 

$

598,083

 

 
Core Sales Growth (Decline) %
Product

 

15

%

 

9

%

 

9

%

 

14

%

 

12

%

Service

 

3

%

 

-4

%

 

-13

%

 

-12

%

 

-7

%

Total

 

13

%

 

6

%

 

4

%

 

9

%

 

8

%

 
(4) 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 2022

 

Fiscal 2023

Q1

Q2

Q3

Q4

TOTAL

 

Q1

Q2

Q3

Q4

TOTAL

Adjusted Earnings (5)
Net Earnings

$

2,788

 

$

1,221

 

$

1,643

 

$

10,034

 

$

15,686

 

$

7,453

 

$

4,497

 

$

12,380

 

$

22,231

 

$

46,561

 

Loss from Discontinued Operations, net of income tax

 

(397

)

 

(900

)

 

(2,418

)

 

(190

)

 

(3,905

)

 

1,044

 

 

(2,661

)

 

(4,596

)

 

(874

)

 

(7,088

)

Earnings from Continuing Operations

$

3,185

 

$

2,121

 

$

4,061

 

$

10,224

 

$

19,591

 

$

6,409

 

$

7,158

 

$

16,976

 

$

23,105

 

$

53,649

 

Impairment & divestiture charges (benefit)

 

-

 

 

1,116

 

 

-

 

 

1,297

 

 

2,413

 

 

-

 

 

-

 

 

-

 

 

(6,155

)

 

(6,155

)

Restructuring charges (1)

 

2,737

 

 

1,832

 

 

517

 

 

3,049

 

 

8,135

 

 

982

 

 

2,987

 

 

2,252

 

 

1,461

 

 

7,681

 

Gain on sale of facility, net of transaction charges

 

-

 

 

-

 

 

(585

)

 

-

 

 

(585

)

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Leadership transition charges (benefit) (2)

 

3,759

 

 

1,747

 

 

2,800

 

 

(37

)

 

8,269

 

 

400

 

 

202

 

 

90

 

 

90

 

 

783

 

Business review charges

 

-

 

 

2,500

 

 

502

 

 

-

 

 

3,002

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

M&A charges

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

196

 

 

166

 

 

653

 

 

1,015

 

ASCEND transformation program charges

 

-

 

 

-

 

 

3,856

 

 

9,760

 

 

13,616

 

 

9,419

 

 

11,372

 

 

5,947

 

 

8,681

 

 

35,419

 

Accelerated debt issuance costs

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

317

 

 

-

 

 

-

 

 

-

 

 

317

 

Net tax effect of reconciling items above

 

42

 

 

(805

)

 

(1,366

)

 

(4,162

)

 

(6,291

)

 

(719

)

 

(1,652

)

 

(3,197

)

 

(4,408

)

 

(9,976

)

Other income tax (benefit) expense

 

-

 

 

210

 

 

-

 

 

-

 

 

210

 

 

-

 

 

144

 

 

-

 

 

-

 

 

144

 

Adjusted Earnings from Continuing Operations

$

9,723

 

$

8,721

 

$

9,785

 

$

20,131

 

$

48,360

 

$

16,808

 

$

20,407

 

$

22,234

 

$

23,427

 

$

82,877

 

 
Adjusted Diluted Earnings per share (5)
Net Earnings

$

0.05

 

$

0.02

 

$

0.03

 

$

0.17

 

$

0.26

 

$

0.13

 

$

0.08

 

$

0.22

 

$

0.40

 

$

0.82

 

Loss from Discontinued Operations, net of income tax

 

(0.01

)

 

(0.01

)

 

(0.04

)

 

(0.00

)

 

(0.07

)

 

0.02

 

 

(0.05

)

 

(0.08

)

 

(0.02

)

 

(0.12

)

Earnings from Continuing Operations

$

0.05

 

$

0.03

 

$

0.07

 

$

0.18

 

$

0.33

 

$

0.11

 

$

0.12

 

$

0.30

 

$

0.41

 

$

0.94

 

Impairment & divestiture charges (benefit), net of tax effect

 

-

 

 

0.01

 

 

-

 

 

0.02

 

 

0.04

 

 

-

 

 

-

 

 

-

 

 

(0.11

)

 

(0.11

)

Restructuring charges (1), net of tax effect

 

0.04

 

 

0.03

 

 

0.01

 

 

0.04

 

 

0.11

 

 

0.02

 

 

0.05

 

 

0.03

 

 

0.01

 

 

0.11

 

Gain on sale of facility, net of transaction charges, net of tax effect

 

-

 

 

-

 

 

(0.01

)

 

0.00

 

 

(0.01

)

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Leadership transition charges (benefit) (2), net of tax effect

 

0.06

 

 

0.03

 

 

0.04

 

 

(0.01

)

 

0.12

 

 

0.01

 

 

0.00

 

 

0.00

 

 

0.00

 

 

0.01

 

Business review charges, net of tax effect

 

-

 

 

0.04

 

 

0.01

 

 

(0.01

)

 

0.04

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

M&A charges, net of tax effect

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

0.00

 

 

0.00

 

 

0.01

 

 

0.01

 

ASCEND transformation program charges, net of tax effect

 

-

 

 

-

 

 

0.05

 

 

0.13

 

 

0.17

 

 

0.15

 

 

0.17

 

 

0.06

 

 

0.10

 

 

0.48

 

Accelerated debt issuance costs, net of tax effect

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

0.01

 

 

0.00

 

 

0.00

 

 

0.00

 

 

0.00

 

Other income tax (benefit) expense

 

-

 

 

0.00

 

 

-

 

 

-

 

 

-

 

 

-

 

 

0.00

 

 

-

 

 

-

 

 

-

 

Adjusted Diluted Earnings per share from Continuing Operations

$

0.16

 

$

0.14

 

$

0.16

 

$

0.35

 

$

0.81

 

$

0.29

 

$

0.35

 

$

0.39

 

$

0.42

 

$

1.45

 

 
Free Cash Flow (6)
Cash (used in) provided by operating activities

$

(4,726

)

$

9,403

 

$

2,519

 

$

44,540

 

$

51,736

 

$

17,533

 

$

(7,756

)

$

17,254

 

$

50,572

 

$

77,603

 

Capital expenditures

 

(3,293

)

 

(1,537

)

 

(2,140

)

 

(1,447

)

 

(8,417

)

 

(3,028

)

 

(2,437

)

 

(2,926

)

 

(1,009

)

 

(9,400

)

Proceeds from sale of property, plant and equipment

 

133

 

 

30

 

 

995

 

 

18

 

 

1,176

 

 

493

 

 

91

 

 

11

 

 

90

 

 

685

 

Other

 

-

 

 

1

 

 

(1

)

 

-

 

 

-

 

 

930

 

 

-

 

 

43

 

 

-

 

 

973

 

Free Cash Flow

$

(7,886

)

$

7,897

 

$

1,373

 

$

43,111

 

$

44,495

 

$

15,928

 

$

(10,102

)

$

14,382

 

$

49,653

 

$

69,861

 

 
Notes continued:
(5) 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.
(6) Free cash flow primarily represents the operating cash flow, proceeds from the sale of property, plant and equipment less 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.
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 (7)
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 (7)
Cash provided by operating activities

$

72

 

$

87

 

Capital expenditures

 

(12

)

 

(17

)

Other

 

-

 

 

-

 

Free Cash Flow Guidance

$

60

 

$

70

 

 
Notes continued:
(7) 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.

 

Contacts

Travis Williams

Director of Investor Relations

262.293.1912

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Photography by Christophe Tomatis
Copyright © 2010-2020 Pleasanton.com & California Media Partners, LLC. All rights reserved.