checkAd

     121  0 Kommentare Enerpac Tool Group Reports Third Quarter Fiscal 2024 Results

    Third Quarter of Fiscal 2024 Continuing Operations Highlights*

    • Net sales were $150 million, a 4% decline year-over-year, due to the disposition of Cortland Industrial
    • Organic sales increased 1.2% year-over-year**
    • Gross margin expanded 200 basis points year-over-year to 51.8%
    • Operating margin was 22.2% and adjusted operating margin was 24.6%
    • Net earnings were $23 million, or $0.41 per share, and adjusted net earnings were $26 million, or $0.47 per share
    • Adjusted EBITDA was $40 million, an increase of 6% year-over-year
    • Adjusted EBITDA margin was 26.4%, an expansion of 240 basis points year-over-year
    • Narrowing full-year organic revenue growth to 2% to 3% and raising the midpoint of adjusted EBITDA guidance

    *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 sales, formerly referred to as core sales, represents net sales excluding the impact of foreign exchange rates, acquisitions, and divestitures. A reconciliation of organic sales to the comparable net sales is presented in the tables accompanying this release.        

    MILWAUKEE, June 24, 2024 (GLOBE NEWSWIRE) -- Enerpac Tool Group Corp. (NYSE: EPAC) (the “Company” or “Enerpac”) today announced results for its fiscal third quarter ended May 31, 2024.

    “We were pleased with our continued progress in the quarter, particularly on capturing further margin expansion as we focus on driving enhanced operational efficiency and SG&A productivity,” said Paul Sternlieb, Enerpac Tool Group’s President & CEO. “While we experienced sequentially slower growth in the third quarter, we believe we are continuing to outpace the soft general industrial marketplace. Moreover, we continue to make solid progress toward our long-term financial and strategic objectives.”

    Consolidated Results from Continuing Operations
    (US$ in millions, except per share data)
      Three Months Ended   Nine Months Ended
      May 31,
    2024
      May 31,
    2023
      May 31,
    2024
      May 31,
    2023
    Net Sales $150.4   $156.3   $430.8   $437.6
    Operating Profit $33.4   $25.4   $91.5   $51.7
    Adjusted Operating Profit $37.0   $33.9   $101.0   $85.7
    Net Earnings $22.6   $17.0   $58.8   $30.5
    Diluted EPS $0.41   $0.30   $1.07   $0.53
    Adjusted Diluted EPS $0.47   $0.39   $1.22   $1.04
    Adjusted EBITDA $39.7   $37.5   $108.9   $96.3


    Third Quarter Fiscal 2024 Consolidated Results Comparisons

    Consolidated net sales for the third quarter of fiscal 2024 were $150.4 million compared to $156.3 million in the prior-year period, a decrease of 3.8%. Organic sales, excluding the disposition of Cortland Industrial and the impact of foreign currency, increased 1.2% year-over-year, with service revenue growth of 7.3% and flat product sales. Net sales growth for the Industrial Tools & Services (IT&S) reportable segment was 1.3%, with organic sales growth of 1.8%, partially offset by a year-over-year decline at Cortland Biomedical, which comprises the Other operating segment.

    Gross margin expanded 200 basis points year-over-year to 51.8%, driven by benefits from pricing actions, a favorable sales mix, and the disposition of Cortland Industrial. Selling, general and administrative expenses of $43.7 million declined $7.4 million year-over-year because of lower ASCEND transformation program expenses and a continued focus on managing discretionary spending. Adjusted SG&A was 27.0% of sales, down 50 basis points from 27.5% of sales in the year-ago period.

    Operating profit increased 31% year-over-year to $33.4 million, with an operating profit margin of 22.2%, up from 16.3% in the third quarter of fiscal 2023. Adjusted operating profit increased 9% to $37.0 million, with an adjusted operating margin of 24.6%, a 290 basis point expansion over the prior-year period.

    Third quarter fiscal 2024 net earnings and diluted EPS were $22.6 million and $0.41, respectively, compared to $17.0 million and $0.30, respectively, in the year-ago period.

    Third quarter adjusted EBITDA was $39.7 million compared to $37.5 million in the year-ago period, achieving an adjusted EBITDA margin of 26.4%, up 240 basis points from 24.0% in the third quarter of fiscal 2023.

    Net cash provided by operating activities was $30.3 million for the third quarter of fiscal 2024 as compared to $17.3 million in the prior-year period. The increase in cash from operations was primarily due to lower ASCEND transformation payments as well as higher net earnings. In addition, the Company continues to drive improvements in working capital management and inventory efficiency.

    Industrial Tools & Service (IT&S)
    (US$ in millions)        
      Three Months Ended   Nine Months Ended
      May 31,
    2024
      May 31,
    2023
      May 31,
    2024
      May 31,
    2023
    Net Sales $145.9   $144.1   $417.8   $402.3
    Operating Profit $41.0   $36.2   $114.0   $93.3
    Operating Profit % 28.1%   25.1%   27.3%   23.2%
    Adjusted Op Profit(1) $43.6   $39.8   $121.0   $103.8
    Adjusted Op Profit %(1) 29.9%   27.6%   29.0%   25.8%

    (1) Excludes approximately $1.5 million of restructuring charges and $1.1 million of ASCEND charges in the third quarter of fiscal 2024 as compared to approximately $1.1 million of restructuring charges and $2.5 million of ASCEND charges in the third quarter of fiscal 2023. The nine months ended May 31, 2024 excludes approximately $4.1 million of restructuring and $2.9 million of ASCEND charges in the third quarter of fiscal 2024 as compared to $4.6 million of restructuring charges and $5.8 million of ASCEND charges in the prior year period.

    IT&S Results Comparisons

    Third quarter fiscal 2024 net sales for IT&S were $145.9 million, ahead 1.3% year-over-year with organic growth of 1.8%. Organic growth was driven by strong performance of service revenues. The segment’s operating profit margin increased 300 basis points to 28.1% and adjusted operating profit margin improved 230 basis points to 29.9%.

    Corporate Expenses from Continuing Operations

    Corporate expenses were $8.9 million and $12.7 million for the third quarter of fiscal 2024 and fiscal 2023, respectively due to lower ASCEND-related charges during the third quarter of fiscal 2024. Adjusted corporate expenses(2) of $7.9 million for the third quarter of fiscal 2024 were flat compared to the prior year.

    (2) Excludes $1.0 million of ASCEND charges and minimal restructuring charges in the third quarter of fiscal 2024 compared to $3.5 million of ASCEND charges, $1.1 million of restructuring charges, $0.2 million of M&A charges, and $0.1 million of leadership transition charges in the third quarter of fiscal 2023.


    Balance Sheet and Leverage
    (US$ in millions) May 31, 2024   February 29, 2024   May 31, 2023
    Cash Balance $132.4   $153.7   $142.0
    Debt Balance $195.7   $244.9   $234.7
    Net Debt / Adjusted EBITDA* 0.5x   0.7x   1.0x
               

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

    Net debt on May 31, 2024, was $63.3 million, resulting in a net debt to adjusted EBITDA ratio of 0.5x. The Company repurchased 71,536 shares of its common stock in the third quarter of fiscal 2024 for a total of $2.6 million. There are approximately 2.9 million shares remaining under the 10 million share authorization announced in March of 2022.

    Outlook

    The Company is narrowing its fiscal 2024 guidance, projecting organic sales growth of approximately 2% to 3%. With a $5 million headwind from new foreign exchange rate assumptions, that translates to a net sales range of $585 million to $590 million. At the same time, the company increased the midpoint of adjusted EBITDA guidance, projecting a range of $147 million to $150 million based on better-than-expected margin performance. Free cash flow guidance is unchanged at $60 million to $70 million. The updated key foreign exchange rates and other guidance assumptions are included in the presentation materials accompanying the earnings webcast.

    “Enerpac’s continued success across our strategic and operational initiatives is supporting our growth and profitability objectives and advancing our position as a premier industrial solutions provider,” concluded Sternlieb. “The benefits of our transformational ASCEND program and our focused growth strategy, combined with our strong balance sheet, are the foundation of our shareholder value creation strategy.”

    Conference Call Information

    An investor conference call is scheduled for 7:30 am CT on June 25, 2024. 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 sales, 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 organic sales, 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)    
      May 31,   August 31,
        2024       2023  
    Assets      
    Current assets      
    Cash and cash equivalents $ 132,362     $ 154,415  
    Accounts receivable, net   107,617       97,649  
    Inventories, net   79,107       74,765  
    Other current assets   28,712       28,811  
    Total current assets   347,798       355,640  
           
    Property, plant and equipment, net   36,237       38,968  
    Goodwill   266,814       266,494  
    Other intangible assets, net   36,243       37,338  
    Other long-term assets   62,372       64,157  
           
    Total assets $ 749,464     $ 762,597  
           
    Liabilities and Shareholders' Equity      
    Current liabilities      
    Trade accounts payable $ 41,664     $ 50,483  
    Accrued compensation and benefits   24,305       33,194  
    Current maturities of long-term debt   5,000       3,750  
    Income taxes payable   7,223       3,771  
    Other current liabilities   43,799       56,922  
    Total current liabilities   121,991       148,120  
           
    Long-term debt, net   190,711       210,337  
    Deferred income taxes   3,656       5,667  
    Pension and postretirement benefit liabilities   9,873       10,247  
    Other long-term liabilities   57,462       61,606  
    Total liabilities   383,693       435,977  
           
    Shareholders' equity      
    Capital stock   10,858       16,752  
    Additional paid-in capital   230,996       220,472  
    Treasury stock   -       (800,506 )
    Retained earnings   245,256       1,011,112  
    Accumulated other comprehensive loss   (121,339 )     (121,210 )
    Stock held in trust   (3,777 )     (3,484 )
    Deferred compensation liability   3,777       3,484  
    Total shareholders' equity   365,771       326,620  
           
    Total liabilities and shareholders' equity $ 749,464     $ 762,597  
           



    Enerpac Tool Group Corp.
    Condensed Consolidated Statements of Earnings
    (In thousands, except per share amounts)
    (Unaudited)
                   
      Three Months Ended   Nine Months Ended
      May 31,   May 31,   May 31,   May 31,
        2024       2023       2024       2023  
    Net sales $ 150,389     $ 156,253     $ 430,796     $ 437,595  
    Cost of products sold   72,506       78,395       207,188       221,464  
    Gross profit   77,883       77,858       223,608       216,131  
                   
    Selling, general and administrative expenses   42,101       48,810       125,041       154,116  
    Amortization of intangible assets   824       1,357       2,480       4,075  
    Restructuring charges   1,595       2,252       4,393       6,220  
    Impairment & divestiture charges   -       -       147       -  
    Operating profit   33,363       25,439       91,547       51,720  
                   
    Financing costs, net   3,385       3,250       10,793       9,170  
    Other expense, net   544       525       2,079       1,948  
    Earnings before income tax expense   29,434       21,664       78,675       40,602  
                   
    Income tax expense   6,813       4,688       19,877       10,058  
    Net earnings from continuing operations   22,621       16,976       58,798       30,544  
    Earnings (loss) from discontinued operations, net of income taxes   3,157       (4,596 )     2,535       (6,214 )
    Net earnings $ 25,778     $ 12,380     $ 61,333     $ 24,330  
                   
    Earnings per share from continuing operations              
    Basic $ 0.42     $ 0.30     $ 1.08     $ 0.54  
    Diluted   0.41       0.30       1.07       0.53  
                   
    Earnings (loss) per share from discontinued operations              
    Basic $ 0.06     $ (0.08 )   $ 0.05     $ (0.11 )
    Diluted   0.06       (0.08 )     0.05       (0.11 )
                   
    Earnings per share*              
    Basic $ 0.47     $ 0.22     $ 1.13     $ 0.43  
    Diluted   0.47       0.22       1.12       0.42  
                   
    Weighted average common shares outstanding              
    Basic   54,292       57,052       54,344       56,993  
    Diluted   54,826       57,432       54,840       57,417  
                   
    *The total of earnings per share from continuing operations and earnings (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,
        2024       2023       2024       2023  
    Operating Activities              
    Cash provided by operating activities - continuing operations   27,479       16,602       39,544       24,561  
    Cash provided by (used in) operating activities - discontinued operations   2,827       652       (2,586 )     2,470  
    Cash provided by operating activities $ 30,306     $ 17,254     $ 36,958     $ 27,031  
                   
    Investing Activities              
    Capital expenditures   (1,818 )     (2,915 )     (4,970 )     (7,796 )
    Working capital adjustment from the sale of business assets   -       -       (1,133 )     -  
    Purchase of business assets   -       -       (1,402 )     -  
    Cash used in investing activities - continuing operations $ (1,818 )   $ (2,915 )   $ (7,505 )   $ (7,796 )
    Cash used in investing activities $ (1,818 )   $ (2,915 )   $ (7,505 )   $ (7,796 )
                   
    Financing Activities              
    Borrowings on revolving credit facility   -       26,000       48,000       60,000  
    Principal repayments on revolving credit facility   (48,000 )     -       (64,000 )     (24,000 )
    Principal repayments on term loan   (1,250 )     (625 )     (2,500 )     (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   -       -       -       (2,486 )
    Purchase of treasury shares   (2,583 )     (20,831 )     (32,691 )     (20,831 )
    Stock options, taxes paid related to the net share settlement of equity awards & other   2,170       (8 )     1,965       (1,461 )
    Payment of cash dividend   -       -       (2,178 )     (2,274 )
    Cash (used in) provided by financing activities - continuing operations $ (49,663 )   $ 4,536     $ (51,404 )   $ 4,323  
    Cash (used in) provided by financing activities $ (49,663 )   $ 4,536     $ (51,404 )   $ 4,323  
                   
    Effect of exchange rate changes on cash   (156 )     (1,537 )     (102 )     (2,256 )
                   
    Net (decrease) increase from cash and cash equivalents $ (21,331 )   $ 17,338     $ (22,053 )   $ 21,302  
    Cash and cash equivalents - beginning of period   153,693       124,663       154,415       120,699  
    Cash and cash equivalents - end of period $ 132,362     $ 142,001     $ 132,362     $ 142,001  
                   



    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   $ 134,822   $ 145,936   $ -   $ 417,793  
    Other   12,085     11,056     12,127     7,758     43,026       4,935     3,615     4,453     -     13,003  
    Enerpac Tool Group $ 139,382   $ 141,960   $ 156,253   $ 160,609   $ 598,204     $ 141,970   $ 138,437   $ 150,389   $ -   $ 430,796  
                           
    % Net Sales Growth (Decline)                      
    Industrial Tools & Services Segment   4.9 %   3.9 %   2.7 %   9.4 %   5.3 %     7.6 %   3.0 %   1.3 %   -     3.8 %
    Other   26.0 %   3.7 %   5.5 %   -36.1 %   -1.9 %     -59.2 %   -67.3 %   -63.3 %   -     -63.1 %
    Enerpac Tool Group   6.5 %   3.9 %   2.9 %   5.8 %   4.7 %     1.9 %   -2.5 %   -3.8 %   -     -1.6 %
                           
    Adjusted Selling, general and administrative expenses                  
    Selling, general and administrative expenses $ 53,247   $ 52,059   $ 48,810   $ 50,949   $ 205,063     $ 42,216   $ 40,723   $ 42,101   $ -   $ 125,041  
    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 )   (1,370 )   (1,457 )   -     (3,920 )
    Adjusted Selling, general and administrative expenses $ 43,465   $ 40,464   $ 43,018   $ 41,825   $ 168,770     $ 41,123   $ 39,353   $ 40,644   $ -   $ 121,121  
                           
    Adjusted Selling, general and administrative expenses %                  
    Enerpac Tool Group   31.2 %   28.5 %   27.5 %   26.0 %   28.2 %     29.0 %   28.4 %   27.0 %   -     28.1 %
                           
    Adjusted Operating profit                      
    Operating profit $ 12,309   $ 13,972   $ 25,439   $ 32,202   $ 83,922     $ 28,662   $ 29,521   $ 33,363   $ -   $ 91,547  
    Impairment & divestiture (benefit) charges   -     -     -     (6,155 )   (6,155 )     147     -     -     -     147  
    Restructuring charges (1)   982     2,987     2,252     1,461     7,681       2,401     398     1,595     -     4,393  
    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     1,607     2,042     -     4,878  
    Adjusted operating profit $ 23,110   $ 28,729   $ 33,894   $ 36,932   $ 122,665     $ 32,439   $ 31,526   $ 37,000   $ -   $ 100,965  
                           
    Adjusted Operating Profit by Segment                      
    Industrial Tools & Services Segment $ 29,099   $ 34,836   $ 39,814   $ 45,269   $ 149,019     $ 38,470   $ 38,909   $ 43,648   $ -   $ 121,027  
    Other   1,424     1,156     1,965     254     4,799       2,118     (79 )   1,284     -     3,323  
    Corporate / General   (7,413 )   (7,263 )   (7,885 )   (8,591 )   (31,153 )     (8,149 )   (7,304 )   (7,932 )   -     (23,385 )
    Adjusted operating profit $ 23,110   $ 28,729   $ 33,894   $ 36,932   $ 122,665     $ 32,439   $ 31,526   $ 37,000   $ -   $ 100,965  
                           
    Adjusted Operating Profit % by Segment                      
    Industrial Tools & Services Segment   22.9 %   26.6 %   27.6 %   29.6 %   26.8 %     28.1 %   28.9 %   29.9 %   -     29.0 %
    Other   11.8 %   10.5 %   16.2 %   3.3 %   11.2 %     42.9 %   -2.2 %   28.8 %   -     25.6 %
    Adjusted Operating Profit %   16.6 %   20.2 %   21.7 %   23.0 %   20.5 %     22.8 %   22.8 %   24.6 %   -     23.4 %
                           
    EBITDA from Continuing Operations (2)                      
    Net earnings from continuing operations $ 6,409   $ 7,158   $ 16,976   $ 23,105   $ 53,649     $ 18,305   $ 17,871   $ 22,621   $ -   $ 58,798  
    Financing costs, net   2,815     3,105     3,250     3,219     12,389       3,697     3,711     3,385     -     10,793  
    Income tax expense   2,383     2,988     4,688     5,190     15,249       5,669     7,396     6,813     -     19,877  
    Depreciation & amortization   4,193     4,226     4,084     3,810     16,313       3,426     3,328     3,216     -     9,970  
    EBITDA $ 15,800   $ 17,477   $ 28,998   $ 35,324   $ 97,600     $ 31,097   $ 32,306   $ 36,035   $ -   $ 99,438  
                           
    Adjusted EBITDA from Continuing Operations (2)                    
    EBITDA $ 15,800   $ 17,477   $ 28,998   $ 35,324   $ 97,600     $ 31,097   $ 32,306   $ 36,035   $ -   $ 99,438  
    Impairment & divestiture (benefit) charges   -     -     -     (6,155 )   (6,155 )     147     -     -     -     147  
    Restructuring charges (1)   982     2,987     2,252     1,461     7,681       2,401     398     1,595     -     4,393  
    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     1,607     2,042     -     4,878  
    Adjusted EBITDA $ 26,601   $ 32,234   $ 37,453   $ 40,054   $ 136,343     $ 34,874   $ 34,311   $ 39,672   $ -   $ 108,856  
                           
    Adjusted EBITDA by Segment                      
    Industrial Tools & Services Segment $ 31,698   $ 37,458   $ 42,525   $ 47,952   $ 159,633     $ 40,880   $ 41,443   $ 45,706   $ -   $ 128,030  
    Other   2,316     2,050     2,855     739     7,961       2,324     141     1,497     -     3,962  
    Corporate / General   (7,413 )   (7,274 )   (7,927 )   (8,637 )   (31,251 )     (8,330 )   (7,273 )   (7,531 )   -     (23,136 )
    Adjusted EBITDA $ 26,601   $ 32,234   $ 37,453   $ 40,054   $ 136,343     $ 34,874   $ 34,311   $ 39,672   $ -   $ 108,856  
                           
    Adjusted EBITDA % by Segment                      
    Industrial Tools & Services Segment   24.9 %   28.6 %   29.5 %   31.4 %   28.8 %     29.8 %   30.7 %   31.3 %   -     30.6 %
    Other   19.2 %   18.5 %   23.5 %   9.5 %   18.5 %     47.1 %   3.9 %   33.6 %   -     30.5 %
    Adjusted EBITDA %   19.1 %   22.7 %   24.0 %   24.9 %   22.8 %     24.6 %   24.8 %   26.4 %   -     25.3 %
                           
    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 Q2 Q3 TOTAL   Q1 Q2 Q3 TOTAL
    Net Sales by Segment                  
    Industrial Tools & Services Segment $ 127,297   $ 130,904   $ 144,126   $ 402,327     $ 137,035   $ 134,822   $ 145,936   $ 417,793  
    Other   12,085     11,056     12,127     35,268       4,935     3,615     4,453     13,003  
    Enerpac Tool Group $ 139,382   $ 141,960   $ 156,253   $ 437,595     $ 141,970   $ 138,437   $ 150,389   $ 430,796  
                       
    Adjustment: Fx Impact on Net Sales                  
    Industrial Tools & Services Segment $ 2,262   $ 294   $ (747 ) $ 1,809     $ -   $ -   $ -   $ -  
    Other   -     -     -     -       -     -     -     -  
    Enerpac Tool Group $ 2,262   $ 294   $ (747 ) $ 1,809     $ -   $ -   $ -   $ -  
                       
    Adjustment: Impact from Divestitures or Acquisitions on Net Sales            
    Industrial Tools & Services Segment $ -   $ -   $ -   $ -     $ -   $ -   $ -   $ -  
    Other   (7,031 )   (6,220 )   (6,938 )   (20,189 )     -     -     -     -  
    Enerpac Tool Group $ (7,031 ) $ (6,220 ) $ (6,938 ) $ (20,189 )   $ -   $ -   $ -   $ -  
                       
    Organic Sales by Segment (3)                  
    Industrial Tools & Services Segment $ 129,559   $ 131,198   $ 143,379   $ 404,136     $ 137,035   $ 134,822   $ 145,936   $ 417,793  
    Other   5,054     4,836     5,189     15,079       4,935     3,615     4,453     13,003  
    Enerpac Tool Group $ 134,613   $ 136,034   $ 148,568   $ 419,215     $ 141,970   $ 138,437   $ 150,389   $ 430,796  
                       
    Organic Sales Growth (Decline) %                  
    Industrial Tools & Services Segment             5.8 %   2.8 %   1.8 %   3.4 %
    Other             -2.4 %   -25.2 %   -14.2 %   -13.8 %
    Enerpac Tool Group             5.5 %   1.8 %   1.2 %   2.8 %
                       
                       
    Net Sales by Product Line                  
    Product $ 111,002   $ 115,251   $ 129,995   $ 356,249     $ 109,856   $ 111,557   $ 122,195   $ 343,609  
    Service   28,380     26,709     26,258     81,346       32,114     26,880     28,194     87,187  
    Enerpac Tool Group $ 139,382   $ 141,960   $ 156,253   $ 437,595     $ 141,970   $ 138,437   $ 150,389   $ 430,796  
                       
    Adjustment: Fx Impact on Net Sales                  
    Product $ 1,481   $ (90 ) $ (768 ) $ 624     $ -   $ -   $ -   $ -  
    Service   781     384     21     1,185       -     -     -     -  
    Enerpac Tool Group $ 2,262   $ 294   $ (747 ) $ 1,809     $ -   $ -   $ -   $ -  
                       
    Adjustment: Impact from Divestitures or Acquisitions on Net Sales            
    Product   (7,031 )   (6,220 )   (6,938 )   (20,189 )     -     -     -     -  
    Service   -     -     -     -       -     -     -     -  
    Enerpac Tool Group $ (7,031 ) $ (6,220 ) $ (6,938 ) $ (20,189 )   $ -   $ -   $ -   $ -  
                       
    Organic Sales by Product Line (3)                  
    Product $ 105,452   $ 108,941   $ 122,289   $ 336,684     $ 109,856   $ 111,557   $ 122,195   $ 343,609  
    Service   29,161     27,093     26,279     82,531       32,114     26,880     28,194     87,187  
    Enerpac Tool Group $ 134,613   $ 136,034   $ 148,568   $ 419,215     $ 141,970   $ 138,437   $ 150,389   $ 430,796  
                       
    Organic Sales Growth (Decline) %                  
    Product             4.2 %   2.4 %   -0.1 %   2.1 %
    Service             10.1 %   -0.8 %   7.3 %   5.6 %
    Enerpac Tool Group             5.5 %   1.8 %   1.2 %   2.8 %
                       
    (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   $ 17,817   $ 25,778   $ -   $ 61,333  
    Earnings (loss) from Discontinued Operations, net of income tax   1,044     (2,661 )   (4,596 )   (874 )   (7,088 )     (567 )   (54 )   3,157     -     2,535  
    Net Earnings from Continuing Operations $ 6,409   $ 7,158   $ 16,976   $ 23,105   $ 53,649     $ 18,305   $ 17,871   $ 22,621   $ -   $ 58,798  
    Impairment & divestiture (benefit) charges   -     -     -     (6,155 )   (6,155 )     147     -     -     -     147  
    Restructuring charges (1)   982     2,987     2,252     1,461     7,681       2,401     398     1,595     -     4,393  
    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     1,607     2,042     -     4,878  
    Accelerated debt issuance costs   317     -     -     -     317       -     -     -     -     -  
    Net tax effect of reconciling items above   (719 )   (1,652 )   (3,197 )   (4,408 )   (9,976 )     (411 )   (185 )   (666 )   -     (1,262 )
    Other income tax expense   -     144     -     -     144       -     137     -     -     137  
    Adjusted Net Earnings from Continuing Operations $ 16,808   $ 20,407   $ 22,234   $ 23,427   $ 82,877     $ 21,671   $ 19,828   $ 25,592   $ -   $ 67,091  
                           
    Adjusted Diluted Earnings per share (4)                      
    Net Earnings $ 0.13   $ 0.08   $ 0.22   $ 0.40   $ 0.82     $ 0.32   $ 0.33   $ 0.47   $ -   $ 1.12  
    Earnings (loss) from Discontinued Operations, net of income tax   0.02     (0.05 )   (0.08 )   (0.02 )   (0.12 )     (0.01 )   (0.00 )   0.06     -     0.05  
    Net Earnings from Continuing Operations $ 0.11   $ 0.12   $ 0.30   $ 0.41   $ 0.94     $ 0.33   $ 0.33   $ 0.41   $ -   $ 1.07  
    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     0.00     0.02     -     0.07  
    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     0.03     0.03     -     0.08  
    Accelerated debt issuance costs, net of tax effect   0.01     0.00     0.00     0.00     0.00       -     -     -     -     -  
    Other income tax expense   -     0.00     -     -     -       -     0.00     -     -     0.00  
    Adjusted Diluted Earnings per share from Continuing Operations $ 0.29   $ 0.35   $ 0.39   $ 0.42   $ 1.45     $ 0.39   $ 0.36   $ 0.47   $ -   $ 1.22  
                           
    Free Cash Flow                      
    Cash provided by (used in) operating activities $ 17,533   $ (7,756 ) $ 17,254   $ 50,572   $ 77,603     $ (6,675 ) $ 13,327   $ 30,306   $ -   $ 36,958  
    Capital expenditures   (2,535 )   (2,346 )   (2,915 )   (919 )   (8,715 )     (1,567 )   (1,585 )   (1,818 )   -     (4,970 )
    Free Cash Flow $ 14,998   $ (10,102 ) $ 14,339   $ 49,653   $ 68,888     $ (8,242 ) $ 11,742   $ 28,488   $ -   $ 31,988  
                           
    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 $ 118     $ 128  
    ASCEND transformation program charges   10       7  
    Restructuring charges   5       3  
    Adjusted operating profit $ 133     $ 138  
    Other expense, net   (1 )     (1 )
    Depreciation & amortization   15       13  
    Adjusted EBITDA $ 147     $ 150  
               
    Reconciliation of GAAP Cash Flow From Operations to Free Cash Flow
       
    Cash provided by operating activities $ 68     $ 83  
    Capital expenditures   (8 )     (13 )
    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.
       


    Contact:
    Travis Williams
    Director of Investor Relations
    +1.262.293.1912





    globenewswire
    0 Follower
    Autor folgen

    Verfasst von globenewswire
    Enerpac Tool Group Reports Third Quarter Fiscal 2024 Results Third Quarter of Fiscal 2024 Continuing Operations Highlights* Net sales were $150 million, a 4% decline year-over-year, due to the disposition of Cortland IndustrialOrganic sales increased 1.2% year-over-year**Gross margin …