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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231016334262/en/
Travis Williams Director of Investor Relations 262.293.1912
Enerpac Tool (NYSE:EPAC)
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