Enerpac Tool Group Corp. (NYSE: EPAC) (the “Company” or “Enerpac”)
today announced results for its fiscal first quarter ended November
30, 2024.
“We entered fiscal 2025 mindful of a sluggish
industrial macro environment,” said Paul Sternlieb, Enerpac Tool
Group’s President & CEO. “Nonetheless, we believe Enerpac can
continue to outperform the market given our global brand
leadership, targeted growth strategy, customer-driven innovation,
and continuous improvement process to enhance operational
efficiency and productivity.”
|
|
Consolidated Results from Continuing
Operations |
|
(US$ in millions, except per share) |
|
|
|
|
Three Months Ended |
|
November 30, 2024 |
|
November 30, 2023 |
Net Sales |
$145.2 |
|
$142.0 |
Operating Profit |
$31.1 |
|
$28.7 |
Adjusted Op Profit |
$31.3 |
|
$32.4 |
Net Earnings |
$21.7 |
|
$18.3 |
Diluted EPS |
$0.40 |
|
$0.33 |
Adjusted Diluted EPS |
$0.40 |
|
$0.39 |
Adjusted EBITDA |
$34.3 |
|
$34.9 |
|
|
|
|
First Quarter Fiscal 2025 Consolidated Results
Comparisons
“First quarter fiscal 2025 was essentially in
line with our expectations, reflecting our ability to operate in a
soft market, while lapping strong growth in the first quarter of
fiscal 2024,” said Darren Kozik, Executive Vice President and Chief
Financial Officer.
Consolidated net sales for the first quarter of
fiscal 2025 were $145.2 million compared to $142.0 million in the
prior-year period, an increase of 2.3%. Organic sales, excluding
the acquisition of DTA and the impact of foreign currency,
decreased 0.8% year-over-year. Service organic revenue growth of
5.6% was offset by a 2.7% decline in product sales. Net sales for
Industrial Tools & Services (IT&S) increased 2.3%, driven
by the increase in service revenue and the acquisition of DTA. The
organic sales decline of 1.0% for IT&S was partially offset by
a year-over-year improvement at Cortland Biomedical, which
comprises the Other operating segment.
Gross profit margin declined 90 basis points
year-over-year to 51.4% due to lower sales in the Americas, a
higher percentage of service revenue, and a return to normalized
margins at Cortland. Selling, general and administrative expenses
(SG&A) of $42.3 million were $2.3 million lower year-over-year.
SG&A was 29.1% of sales, down from 31.4% in the year-ago
period. Adjusted SG&A expenses, excluding one-time costs
associated with the acquisition of DTA, were $42.2 million as
compared to $41.1 million in fiscal 2024. The prior-year period
adjusted SG&A excluded ASCEND and restructuring charges. As a
percentage of sales, adjusted SG&A held flat at 29.0%.
Operating profit increased 9% year-over-year to
$31.1 million, with an operating profit margin of 21.4%, up from
20.2% in the first quarter of fiscal 2024. Adjusted operating
profit decreased 3.6% to $31.3 million, with an adjusted operating
margin of 21.5%, down from 22.8% in the year-ago period.
First quarter fiscal 2025 net income and diluted
EPS were $21.7 million and $0.40 respectively, compared to $18.3
million and $0.33, respectively, in the year-ago period.
First quarter adjusted EBITDA was $34.3 million
compared to $34.9 million in the year-ago period. Adjusted EBITDA
margin declined 100 basis points year-over-year to 23.6% driven by
lower gross margins coupled with the inclusion of DTA.
Net cash provided by operating activities was
$8.6 million for the first quarter of fiscal 2025 as compared to a
use of $6.7 million in the prior-year period. Cash flow from
operations was higher than the prior year, the benefit of higher
net earnings, lower annual incentive compensation payments made in
the first quarter compared to the prior year, and the absence of
payments related to discontinued operations.
Industrial
Tools & Services (IT&S) |
|
(US$ in millions) |
|
|
|
|
Three Months Ended |
|
November 30, 2024 |
|
November 30, 2023 |
Net Sales |
$140.1 |
|
$137.0 |
Operating Profit |
$38.0 |
|
$35.6 |
Operating Profit % |
27.1% |
|
26.0% |
Adjusted Op Profit (1) |
$38.1 |
|
$38.5 |
Adjusted Op Profit % (1) |
27.2% |
|
28.1% |
(1) Excludes approximately $0.1 million of
M&A costs in the first quarter of fiscal 2025 as compared to
approximately $2.1 million of restructuring charges and $0.8
million of ASCEND charges in the first quarter of fiscal 2024.
IT&S Results
Comparisons
First quarter fiscal 2025 net sales for IT&S
were $140.1 million, an increase of 2.3% year-over-year with
organic sales down 1.0%. The decline in organic sales was driven by
a 3.0% decrease in product sales, partially offset by a 5.6%
increase in service revenue. The segment’s operating profit margin
increased approximately 110 basis points to 27.1% as the prior-year
period included ASCEND and restructuring costs. Adjusted operating
profit margin declined 90 basis points to 27.2%, driven by sales
mix and the inclusion of DTA’s results.
DTA Acquisition
On September 4, Enerpac completed the
acquisition of DTA, a producer of automated on-site horizontal
movement products, to complement its Heavy Lifting Technology
product portfolio. “With the integration well underway, we are
capitalizing on the opportunity to leverage Enerpac’s global sales
network and expand DTA’s sales outside of Europe,” added
Sternlieb.
Corporate Expenses from Continuing
Operations
Corporate expenses were $8.2 million and $8.9
million for the first quarter of fiscal 2025 and fiscal 2024,
respectively. The prior-year period included charges for ASCEND and
restructuring. Adjusted corporate expenses(2) of $8.1 million for
the first quarter of fiscal 2025 were flat as compared to the
prior-year period.
(2) First quarter fiscal 2025 adjusted
corporate expenses exclude approximately $0.1 million of M&A
costs as compared to approximately $0.3 million of restructuring
charges and $0.4 million of ASCEND charges in the first quarter of
fiscal 2024.
Balance Sheet and Leverage |
|
|
|
|
(US$ in millions) |
|
November 30, 2024 |
August 31, 2024 |
November 30, 2023 |
Cash Balance |
|
$130.7 |
$167.1 |
$148.0 |
Debt Balance |
|
$193.3 |
$194.5 |
$244.5 |
Net Debt to Adjusted
EBITDA* |
|
0.5x |
0.2x |
0.9x |
*Calculated in accordance with the terms
of the Company’s September 2022 Senior Credit Facility.
Net debt on November 30, 2024, was $62.6
million, resulting in a net debt to adjusted EBITDA ratio of 0.5x.
The company repurchased approximately 110,000 shares of its common
stock in the first quarter of fiscal 2025 for a total of $4.4
million under its share repurchase program announced in March 2022.
Cash decreased from the end of fiscal 2024 primarily due to the
acquisition of DTA in the first quarter of fiscal 2025.
Outlook
“With the first quarter results roughly as
anticipated, we are maintaining our full-year fiscal 2025 guidance,
including total revenue and adjusted EBITDA growth of 5% at the
midpoint of our guidance,” concluded Sternlieb.
The Company is projecting a net sales range of
$610 million to $625 million in fiscal 2025. The forecast
anticipates organic sales growth of approximately 0% to 2%, with
expected adjusted EBITDA in the range of $150 million to $160
million, and free cash flow between $85 million to $95 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 December 19, 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, supply chain risks, including
disruptions in deliveries from suppliers due to political tensions
or the imposition, or threat of imposition, of tariffs, which could
be affected by the outcome of the recent U.S. presidential
election, the impact of geopolitical activity, including the
invasion of Ukraine by Russia and international sanctions imposed
in response thereto, as well as armed conflicts in the Middle East,
including the impact on shipping in the Red Sea, 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 PEP program, operating margin risk due to
competitive pricing and operating efficiencies, 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,
cybersecurity risk, 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, 2024. 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 adjusted operating profit and
adjusted EBITDA, adjusted corporate expense, adjusted SG&A
expense, free cash flow and net debt. This press release includes
reconciliations of non-GAAP measures to the most comparable GAAP
measure, included in the tables attached to this press release or
in footnotes to the tables included in this press release.
Management believes the non-GAAP measures presented in this press
release are commonly used financial measures for investors to
evaluate Enerpac Tool Group’s operating performance and financial
position with respect to the periods presented and, when read in
conjunction with the condensed consolidated financial statements,
present a useful tool to evaluate ongoing operations and provide
investors with metrics they can use to evaluate aspects of the
Company’s performance from period to period. In addition, these are
some of the financial metrics management uses in internal
evaluations of the overall performance of the Company’s business.
Management acknowledges that there are many items that impact a
company’s reported results and the adjustments reflected in these
non-GAAP measures are not intended to present all items that may
have impacted these results. In addition, these non-GAAP measures
are not necessarily comparable to similarly titled measures used by
other companies.
About Enerpac Tool Group
Enerpac Tool Group Corp. is a premier industrial
tools, services, technology, and solutions provider serving a broad
and diverse set of customers and end markets for mission-critical
applications in more than 100 countries. The Company makes complex,
often hazardous jobs possible safely and efficiently. Enerpac Tool
Group’s businesses are global leaders in high pressure hydraulic
tools, controlled force products, and solutions for precise
positioning of heavy loads that help customers safely and reliably
tackle some of the most challenging jobs around the world. The
Company was founded in 1910 and is headquartered in Menomonee
Falls, Wisconsin. Enerpac Tool Group common stock trades on the
NYSE under the symbol EPAC. For further information on Enerpac Tool
Group and its businesses, visit the Company's website at
www.enerpactoolgroup.com.
(tables follow)
|
Enerpac Tool
Group Corp. |
Condensed
Consolidated Balance Sheets |
(In
thousands) |
|
|
|
|
|
(Unaudited) |
|
|
|
November
30, |
August
31, |
|
|
2024 |
|
|
|
2024 |
|
Assets |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
$ |
130,733 |
|
|
$ |
167,094 |
|
Accounts receivable, net |
|
100,654 |
|
|
|
104,335 |
|
Inventories, net |
|
81,198 |
|
|
|
72,887 |
|
Other current assets |
|
37,185 |
|
|
|
27,942 |
|
Total current assets |
|
349,770 |
|
|
|
372,258 |
|
|
|
|
|
Property, plant and equipment, net |
|
45,821 |
|
|
|
40,285 |
|
Goodwill |
|
287,502 |
|
|
|
269,597 |
|
Other intangible assets, net |
|
34,482 |
|
|
|
36,058 |
|
Other long-term assets |
|
57,776 |
|
|
|
59,130 |
|
|
|
|
|
Total assets |
$ |
775,351 |
|
|
$ |
777,328 |
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
Current liabilities |
|
|
|
Current maturities of long-term debt |
$ |
5,000 |
|
|
$ |
5,000 |
|
Trade accounts payable |
|
46,931 |
|
|
|
43,368 |
|
Accrued compensation and benefits |
|
18,447 |
|
|
|
25,856 |
|
Income taxes payable |
|
5,729 |
|
|
|
5,321 |
|
Other current liabilities |
|
43,835 |
|
|
|
49,848 |
|
Total current liabilities |
|
119,942 |
|
|
|
129,393 |
|
|
|
|
|
Long-term debt, net |
|
188,294 |
|
|
|
189,503 |
|
Deferred income taxes |
|
6,111 |
|
|
|
3,696 |
|
Pension and postretirement benefit liabilities |
|
9,067 |
|
|
|
10,073 |
|
Other long-term liabilities |
|
53,928 |
|
|
|
52,684 |
|
Total liabilities |
|
377,342 |
|
|
|
385,349 |
|
|
|
|
|
Shareholders' equity |
|
|
|
Capital stock |
|
10,880 |
|
|
|
10,847 |
|
Additional paid-in capital |
|
233,964 |
|
|
|
235,660 |
|
Retained earnings |
|
279,239 |
|
|
|
261,870 |
|
Accumulated other comprehensive loss |
|
(126,074 |
) |
|
|
(116,398 |
) |
Stock held in trust |
|
(3,774 |
) |
|
|
(3,777 |
) |
Deferred compensation liability |
|
3,774 |
|
|
|
3,777 |
|
Total shareholders' equity |
|
398,009 |
|
|
|
391,979 |
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
775,351 |
|
|
$ |
777,328 |
|
|
|
|
|
Enerpac Tool
Group Corp. |
Condensed
Consolidated Statements of Earnings |
(In
thousands) |
|
|
|
|
|
Three Months Ended |
|
November
30, |
November
30, |
|
|
2024 |
|
|
2023 |
|
Net sales |
$ |
145,196 |
|
$ |
141,970 |
|
Cost of products sold |
|
70,544 |
|
|
67,720 |
|
Gross profit |
|
74,652 |
|
|
74,250 |
|
|
|
|
|
Selling, general and administrative expenses |
|
42,318 |
|
|
42,216 |
|
Amortization of intangible assets |
|
1,202 |
|
|
824 |
|
Restructuring charges |
|
- |
|
|
2,401 |
|
Impairment & divestiture charges |
|
- |
|
|
147 |
|
Operating profit |
|
31,132 |
|
|
28,662 |
|
|
|
|
|
Financing costs, net |
|
2,770 |
|
|
3,697 |
|
Other expense, net |
|
487 |
|
|
991 |
|
Earnings before income tax expense |
|
27,875 |
|
|
23,974 |
|
|
|
|
|
Income tax expense |
|
6,152 |
|
|
5,669 |
|
Net earnings from continuing operations |
|
21,723 |
|
|
18,305 |
|
Loss from discontinued operations, net of income taxes |
|
- |
|
|
(567 |
) |
Net earnings |
$ |
21,723 |
|
$ |
17,738 |
|
|
|
|
|
Earnings per share from continuing operations |
|
|
|
Basic |
$ |
0.40 |
|
$ |
0.34 |
|
Diluted |
|
0.40 |
|
|
0.33 |
|
|
|
|
|
Loss per share from discontinued operations |
|
|
|
Basic |
$ |
- |
|
$ |
(0.01 |
) |
Diluted |
|
- |
|
|
(0.01 |
) |
|
|
|
|
Earnings per share |
|
|
|
Basic |
$ |
0.40 |
|
$ |
0.33 |
|
Diluted |
|
0.40 |
|
|
0.32 |
|
|
|
|
|
Weighted average common shares outstanding |
|
|
|
Basic |
|
54,242 |
|
|
54,527 |
|
Diluted |
|
54,812 |
|
|
55,008 |
|
Enerpac Tool
Group Corp. |
Condensed
Consolidated Statements of Cash Flows |
(In
thousands) |
(Unaudited) |
|
|
|
|
|
Three Months Ended |
|
November
30, |
November
30, |
|
|
2024 |
|
|
|
2023 |
|
Operating Activities |
|
|
|
Cash provided by (used in) operating activities - continuing
operations |
|
8,649 |
|
|
|
(3,917 |
) |
Cash used in operating activities - discontinued operations |
|
- |
|
|
|
(2,758 |
) |
Cash provided by (used in) operating activities |
$ |
8,649 |
|
|
$ |
(6,675 |
) |
|
|
|
|
Investing Activities |
|
|
|
Capital expenditures |
|
(5,857 |
) |
|
|
(1,567 |
) |
Purchase of business assets |
|
- |
|
|
|
(1,027 |
) |
Cash paid for business acquisitions, net of cash acquired |
|
(27,196 |
) |
|
|
- |
|
Cash used in investing activities - continuing operations |
$ |
(33,053 |
) |
|
$ |
(2,594 |
) |
Cash used in investing activities |
$ |
(33,053 |
) |
|
$ |
(2,594 |
) |
|
|
|
|
Financing Activities |
|
|
|
Borrowings on revolving credit facility |
|
14,421 |
|
|
|
39,000 |
|
Principal repayments on revolving credit facility |
|
(14,421 |
) |
|
|
(8,000 |
) |
Principal repayments on term loan |
|
(1,250 |
) |
|
|
(625 |
) |
Purchase of treasury shares |
|
(4,379 |
) |
|
|
(26,116 |
) |
Stock options, taxes paid related to the net share settlement of
equity awards & other |
|
(4,987 |
) |
|
|
236 |
|
Payment of cash dividend |
|
(2,167 |
) |
|
|
(2,178 |
) |
Cash (used in) provided by financing activities - continuing
operations |
$ |
(12,783 |
) |
|
$ |
2,317 |
|
Cash (used in) provided by financing activities |
$ |
(12,783 |
) |
|
$ |
2,317 |
|
|
|
|
|
Effect of exchange rate changes on cash |
|
826 |
|
|
|
493 |
|
|
|
|
|
Net decrease from cash and cash equivalents |
$ |
(36,361 |
) |
|
$ |
(6,459 |
) |
Cash and cash equivalents - beginning of period |
|
167,094 |
|
|
|
154,415 |
|
Cash and cash equivalents - end of period |
$ |
130,733 |
|
|
$ |
147,956 |
|
|
|
|
|
Enerpac Tool
Group Corp. |
Supplemental
Unaudited Data |
Reconciliation
of GAAP Measures to Non-GAAP Measures for Continuing
Operations |
(In
thousands) |
|
Fiscal 2024 |
|
Fiscal 2025 |
|
Q1 |
Q2 |
Q3 |
Q4 |
TOTAL |
|
Q1 |
Q2 |
Q3 |
Q4 |
TOTAL |
Net Sales |
|
|
|
|
|
|
|
|
|
|
|
Industrial Tools & Services Segment |
$ |
137,035 |
|
$ |
134,822 |
|
$ |
145,936 |
|
$ |
153,360 |
|
$ |
571,153 |
|
|
$ |
140,134 |
|
$ |
- |
$ |
- |
$ |
- |
$ |
140,134 |
|
Other |
|
4,935 |
|
|
3,615 |
|
|
4,453 |
|
|
5,354 |
|
|
18,357 |
|
|
|
5,062 |
|
|
- |
|
- |
|
- |
|
5,062 |
|
Enerpac Tool Group |
$ |
141,970 |
|
$ |
138,437 |
|
$ |
150,389 |
|
$ |
158,714 |
|
$ |
589,510 |
|
|
$ |
145,196 |
|
$ |
- |
$ |
- |
$ |
- |
$ |
145,196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% Net Sales Growth (Decline) Year over Year |
|
|
|
|
|
|
|
|
|
|
Industrial Tools & Services Segment |
|
7.6 |
% |
|
3.0 |
% |
|
1.3 |
% |
|
0.3 |
% |
|
2.9 |
% |
|
|
2.3 |
% |
|
- |
|
- |
|
- |
|
2.3 |
% |
Other |
|
-59.2 |
% |
|
-67.3 |
% |
|
-63.3 |
% |
|
-31.0 |
% |
|
-57.3 |
% |
|
|
2.6 |
% |
|
- |
|
- |
|
- |
|
2.6 |
% |
Enerpac Tool Group |
|
1.9 |
% |
|
-2.5 |
% |
|
-3.8 |
% |
|
-1.2 |
% |
|
-1.5 |
% |
|
|
2.3 |
% |
|
- |
|
- |
|
- |
|
2.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Selling, general and administrative
expenses |
|
|
|
|
|
|
Selling, general and administrative expenses |
$ |
42,216 |
|
$ |
40,723 |
|
$ |
42,101 |
|
$ |
43,524 |
|
$ |
168,565 |
|
|
$ |
42,318 |
|
$ |
- |
$ |
- |
$ |
- |
$ |
42,318 |
|
M&A charges |
|
- |
|
|
- |
|
|
- |
|
|
(121 |
) |
|
(121 |
) |
|
|
(152 |
) |
|
- |
|
- |
|
- |
|
(152 |
) |
ASCEND transformation program charges |
|
(1,093 |
) |
|
(1,370 |
) |
|
(1,457 |
) |
|
(2,109 |
) |
|
(6,029 |
) |
|
|
- |
|
|
- |
|
- |
|
- |
|
- |
|
Adjusted Selling, general and administrative
expenses |
$ |
41,123 |
|
$ |
39,353 |
|
$ |
40,644 |
|
$ |
41,294 |
|
$ |
162,415 |
|
|
$ |
42,166 |
|
$ |
- |
$ |
- |
$ |
- |
$ |
42,166 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Selling, general and administrative expenses
% |
|
|
|
|
Enerpac Tool Group |
|
29.0 |
% |
|
28.4 |
% |
|
27.0 |
% |
|
26.0 |
% |
|
27.6 |
% |
|
|
29.0 |
% |
|
- |
|
- |
|
- |
|
29.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
$ |
28,662 |
|
$ |
29,521 |
|
$ |
33,363 |
|
$ |
30,040 |
|
$ |
121,587 |
|
|
$ |
31,132 |
|
$ |
- |
$ |
- |
$ |
- |
$ |
31,132 |
|
Impairment & divestiture charges |
|
147 |
|
|
- |
|
|
- |
|
|
- |
|
|
147 |
|
|
|
- |
|
|
- |
|
- |
|
- |
|
- |
|
Restructuring charges (1) |
|
2,401 |
|
|
398 |
|
|
1,595 |
|
|
3,450 |
|
|
7,843 |
|
|
|
- |
|
|
- |
|
- |
|
- |
|
- |
|
M&A charges |
|
- |
|
|
- |
|
|
- |
|
|
121 |
|
|
121 |
|
|
|
152 |
|
|
- |
|
- |
|
- |
|
152 |
|
ASCEND transformation program charges |
|
1,229 |
|
|
1,607 |
|
|
2,042 |
|
|
2,168 |
|
|
7,047 |
|
|
|
- |
|
|
- |
|
- |
|
- |
|
- |
|
Adjusted Operating profit |
$ |
32,439 |
|
$ |
31,526 |
|
$ |
37,000 |
|
$ |
35,779 |
|
$ |
136,745 |
|
|
$ |
31,284 |
|
$ |
- |
$ |
- |
$ |
- |
$ |
31,284 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating profit by Segment |
|
|
|
|
|
|
|
Industrial Tools & Services Segment |
$ |
38,470 |
|
$ |
38,909 |
|
$ |
43,648 |
|
$ |
42,989 |
|
$ |
164,016 |
|
|
$ |
38,074 |
|
$ |
- |
$ |
- |
$ |
- |
$ |
38,074 |
|
Other |
|
2,118 |
|
|
(79 |
) |
|
1,284 |
|
|
1,120 |
|
|
4,443 |
|
|
|
1,319 |
|
|
- |
|
- |
|
- |
|
1,319 |
|
Corporate / General |
|
(8,149 |
) |
|
(7,304 |
) |
|
(7,932 |
) |
|
(8,330 |
) |
|
(31,714 |
) |
|
|
(8,109 |
) |
|
- |
|
- |
|
- |
|
(8,109 |
) |
Adjusted operating profit |
$ |
32,439 |
|
$ |
31,526 |
|
$ |
37,000 |
|
$ |
35,779 |
|
$ |
136,745 |
|
|
$ |
31,284 |
|
$ |
- |
$ |
- |
$ |
- |
$ |
31,284 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating profit % |
|
|
|
|
|
|
|
|
|
|
|
|
Industrial Tools & Services Segment |
|
28.1 |
% |
|
28.9 |
% |
|
29.9 |
% |
|
28.0 |
% |
|
28.7 |
% |
|
|
27.2 |
% |
|
- |
|
- |
|
- |
|
27.2 |
% |
Other |
|
42.9 |
% |
|
-2.2 |
% |
|
28.8 |
% |
|
20.9 |
% |
|
24.2 |
% |
|
|
26.1 |
% |
|
- |
|
- |
|
- |
|
26.1 |
% |
Adjusted Operating Profit % |
|
22.8 |
% |
|
22.8 |
% |
|
24.6 |
% |
|
22.5 |
% |
|
23.2 |
% |
|
|
21.5 |
% |
|
- |
|
- |
|
- |
|
21.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA from Continuing Operations (2) |
|
|
|
|
|
|
|
|
Net earnings from continuing operations |
$ |
18,305 |
|
$ |
17,871 |
|
$ |
22,621 |
|
$ |
23,409 |
|
$ |
82,207 |
|
|
$ |
21,723 |
|
$ |
- |
$ |
- |
$ |
- |
$ |
21,723 |
|
Financing costs, net |
|
3,697 |
|
|
3,711 |
|
|
3,385 |
|
|
2,731 |
|
|
13,524 |
|
|
|
2,770 |
|
|
- |
|
- |
|
- |
|
2,770 |
|
Income tax expense |
|
5,669 |
|
|
7,396 |
|
|
6,813 |
|
|
3,435 |
|
|
23,312 |
|
|
|
6,152 |
|
|
- |
|
- |
|
- |
|
6,152 |
|
Depreciation & amortization |
|
3,426 |
|
|
3,328 |
|
|
3,216 |
|
|
3,304 |
|
|
13,275 |
|
|
|
3,514 |
|
|
- |
|
- |
|
- |
|
3,514 |
|
EBITDA |
$ |
31,097 |
|
$ |
32,306 |
|
$ |
36,035 |
|
$ |
32,879 |
|
$ |
132,318 |
|
|
$ |
34,159 |
|
$ |
- |
$ |
- |
$ |
- |
$ |
34,159 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
EBITDA |
$ |
31,097 |
|
$ |
32,306 |
|
$ |
36,035 |
|
$ |
32,879 |
|
$ |
132,318 |
|
|
$ |
34,159 |
|
$ |
- |
$ |
- |
$ |
- |
$ |
34,159 |
|
Impairment & divestiture charges |
|
147 |
|
|
- |
|
|
- |
|
|
- |
|
|
147 |
|
|
|
- |
|
|
- |
|
- |
|
- |
|
- |
|
Restructuring charges (1) |
|
2,401 |
|
|
398 |
|
|
1,595 |
|
|
3,450 |
|
|
7,843 |
|
|
|
- |
|
|
- |
|
- |
|
- |
|
- |
|
M&A charges |
|
- |
|
|
- |
|
|
- |
|
|
121 |
|
|
121 |
|
|
|
152 |
|
|
- |
|
- |
|
- |
|
152 |
|
ASCEND transformation program charges |
|
1,229 |
|
|
1,607 |
|
|
2,042 |
|
|
2,168 |
|
|
7,047 |
|
|
|
- |
|
|
- |
|
- |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
34,874 |
|
$ |
34,311 |
|
$ |
39,672 |
|
$ |
38,618 |
|
$ |
147,476 |
|
|
$ |
34,311 |
|
$ |
- |
$ |
- |
$ |
- |
$ |
34,311 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA by Segment |
|
|
|
|
|
|
|
Industrial Tools & Services Segment |
$ |
40,880 |
|
$ |
41,443 |
|
$ |
45,706 |
|
$ |
45,629 |
|
$ |
173,659 |
|
|
$ |
40,807 |
|
$ |
- |
$ |
- |
$ |
- |
$ |
40,807 |
|
Other |
|
2,324 |
|
|
141 |
|
|
1,497 |
|
|
1,367 |
|
|
5,330 |
|
|
|
1,546 |
|
|
- |
|
- |
|
- |
|
1,546 |
|
Corporate / General |
|
(8,330 |
) |
|
(7,273 |
) |
|
(7,531 |
) |
|
(8,378 |
) |
|
(31,513 |
) |
|
|
(8,042 |
) |
|
- |
|
- |
|
- |
|
(8,042 |
) |
Adjusted EBITDA |
$ |
34,874 |
|
$ |
34,311 |
|
$ |
39,672 |
|
$ |
38,618 |
|
$ |
147,476 |
|
|
$ |
34,311 |
|
$ |
- |
$ |
- |
$ |
- |
$ |
34,311 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial Tools & Services Segment |
|
29.8 |
% |
|
30.7 |
% |
|
31.3 |
% |
|
29.8 |
% |
|
30.4 |
% |
|
|
29.1 |
% |
|
- |
|
- |
|
- |
|
29.1 |
% |
Other |
|
47.1 |
% |
|
3.9 |
% |
|
33.6 |
% |
|
25.5 |
% |
|
29.0 |
% |
|
|
30.5 |
% |
|
- |
|
- |
|
- |
|
30.5 |
% |
Adjusted EBITDA % |
|
24.6 |
% |
|
24.8 |
% |
|
26.4 |
% |
|
24.3 |
% |
|
25.0 |
% |
|
|
23.6 |
% |
|
- |
|
- |
|
- |
|
23.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Notes: |
|
|
|
|
|
|
|
|
|
|
|
(1) Approximately $0.4
million of the Q4 fiscal 2024 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 2024 |
|
Fiscal 2025 |
|
Q1 |
|
Q1 |
Net Sales |
|
|
|
Industrial Tools & Services Segment |
$ |
137,035 |
|
$ |
140,134 |
|
Other |
|
4,935 |
|
|
5,062 |
|
Enerpac Tool Group |
$ |
141,970 |
|
$ |
145,196 |
|
|
|
|
|
Adjustment: Fx Impact on Net Sales |
|
|
|
Industrial Tools & Services Segment |
$ |
1,229 |
|
$ |
- |
|
Other |
|
- |
|
|
- |
|
Enerpac Tool Group |
$ |
1,229 |
|
$ |
- |
|
|
|
|
|
Adjustment: Impact from Divestitures or Acquisitions on Net
Sales |
|
|
Industrial Tools & Services Segment |
|
- |
|
|
(3,184 |
) |
Other |
|
- |
|
|
- |
|
Enerpac Tool Group |
$ |
- |
|
$ |
(3,184 |
) |
|
|
|
|
Organic Sales by Segment (3) |
|
|
|
Industrial Tools & Services Segment |
$ |
138,264 |
|
$ |
136,950 |
|
Other |
|
4,935 |
|
|
5,062 |
|
Enerpac Tool Group |
$ |
143,199 |
|
$ |
142,012 |
|
|
|
|
|
Organic Sales Growth (Decline) % |
|
|
|
Industrial Tools & Services Segment |
|
|
|
-1.0 |
% |
Other |
|
|
|
2.6 |
% |
Enerpac Tool Group |
|
|
|
-0.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales by Product Line |
|
|
|
Product |
$ |
109,856 |
|
$ |
111,149 |
|
Service |
|
32,114 |
|
|
34,047 |
|
Enerpac Tool Group |
$ |
141,970 |
|
$ |
145,196 |
|
|
|
|
|
Adjustment: Fx Impact on Net Sales |
|
|
|
Product |
$ |
1,115 |
|
$ |
- |
|
Service |
|
113 |
|
|
- |
|
Enerpac Tool Group |
$ |
1,229 |
|
$ |
- |
|
|
|
|
|
Adjustment: Impact from Divestitures or Acquisitions on Net
Sales |
|
|
Product |
|
- |
|
|
(3,184 |
) |
Service |
|
- |
|
|
- |
|
Enerpac Tool Group |
$ |
- |
|
$ |
(3,184 |
) |
|
|
|
|
Organic Sales by Product Line (3) |
|
|
|
Product |
$ |
110,971 |
|
$ |
107,965 |
|
Service |
|
32,227 |
|
|
34,047 |
|
Enerpac Tool Group |
$ |
143,199 |
|
$ |
142,012 |
|
|
|
|
|
Organic Sales Growth (Decline) % |
|
|
|
Product |
|
|
|
-2.7 |
% |
Service |
|
|
|
5.6 |
% |
Enerpac Tool Group |
|
|
|
-0.8 |
% |
|
|
|
|
(3) Organic 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 2024 |
|
Fiscal 2025 |
|
Q1 |
Q2 |
Q3 |
Q4 |
TOTAL |
|
Q1 |
Q2 |
Q3 |
Q4 |
TOTAL |
Adjusted Earnings (4) |
|
|
|
|
|
|
Net Earnings |
$ |
17,738 |
|
$ |
17,817 |
|
$ |
25,778 |
|
$ |
24,416 |
|
$ |
85,749 |
|
|
$ |
21,723 |
|
$ |
- |
$ |
- |
$ |
- |
$ |
21,723 |
|
(Loss) earnings from Discontinued Operations, net of income
tax |
|
(567 |
) |
|
(54 |
) |
|
3,157 |
|
|
1,007 |
|
|
3,542 |
|
|
|
- |
|
|
- |
|
- |
|
- |
|
- |
|
Net Earnings from Continuing Operations |
$ |
18,305 |
|
$ |
17,871 |
|
$ |
22,621 |
|
$ |
23,409 |
|
$ |
82,207 |
|
|
$ |
21,723 |
|
$ |
- |
$ |
- |
$ |
- |
$ |
21,723 |
|
Impairment & divestiture charges |
|
147 |
|
|
- |
|
|
- |
|
|
- |
|
|
147 |
|
|
|
- |
|
|
- |
|
- |
|
- |
|
- |
|
Restructuring charges (1) |
|
2,401 |
|
|
398 |
|
|
1,595 |
|
|
3,450 |
|
|
7,843 |
|
|
|
- |
|
|
- |
|
- |
|
- |
|
- |
|
M&A charges |
|
- |
|
|
- |
|
|
- |
|
|
121 |
|
|
121 |
|
|
|
152 |
|
|
- |
|
- |
|
- |
|
152 |
|
ASCEND transformation program charges |
|
1,229 |
|
|
1,607 |
|
|
2,042 |
|
|
2,168 |
|
|
7,047 |
|
|
|
- |
|
|
- |
|
- |
|
- |
|
- |
|
Net tax effect of reconciling items above |
|
(411 |
) |
|
(185 |
) |
|
(666 |
) |
|
(1,683 |
) |
|
(2,945 |
) |
|
|
(4 |
) |
|
- |
|
- |
|
- |
|
(4 |
) |
Other income tax expense |
|
- |
|
|
137 |
|
|
- |
|
|
- |
|
|
137 |
|
|
|
- |
|
|
- |
|
- |
|
- |
|
- |
|
Adjusted Net Earnings from Continuing
Operations |
$ |
21,671 |
|
$ |
19,828 |
|
$ |
25,592 |
|
$ |
27,465 |
|
$ |
94,557 |
|
|
$ |
21,871 |
|
$ |
- |
$ |
- |
$ |
- |
$ |
21,871 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted Earnings per share (4) |
|
|
|
|
|
|
Net Earnings |
$ |
0.32 |
|
$ |
0.33 |
|
$ |
0.47 |
|
$ |
0.44 |
|
$ |
1.56 |
|
|
$ |
0.40 |
|
$ |
- |
$ |
- |
$ |
- |
$ |
0.40 |
|
(Loss) earnings from Discontinued Operations, net of income
tax |
|
(0.01 |
) |
|
(0.00 |
) |
|
0.06 |
|
|
0.02 |
|
|
0.06 |
|
|
|
- |
|
|
- |
|
- |
|
- |
|
- |
|
Net Earnings from Continuing Operations |
$ |
0.33 |
|
$ |
0.33 |
|
$ |
0.41 |
|
$ |
0.43 |
|
$ |
1.50 |
|
|
$ |
0.40 |
|
$ |
- |
$ |
- |
$ |
- |
$ |
0.40 |
|
Impairment & divestiture charges, net of tax effect |
|
0.00 |
|
|
- |
|
|
- |
|
|
- |
|
|
0.00 |
|
|
|
- |
|
|
- |
|
- |
|
- |
|
- |
|
Restructuring charges (1), net of tax effect |
|
0.04 |
|
|
0.00 |
|
|
0.02 |
|
|
0.04 |
|
|
0.11 |
|
|
|
- |
|
|
- |
|
- |
|
- |
|
- |
|
M&A charges, net of tax effect |
|
- |
|
|
- |
|
|
- |
|
|
0.00 |
|
|
0.00 |
|
|
|
0.00 |
|
|
- |
|
- |
|
- |
|
0.00 |
|
ASCEND transformation program charges, net of tax effect |
|
0.02 |
|
|
0.03 |
|
|
0.03 |
|
|
0.03 |
|
|
0.11 |
|
|
|
- |
|
|
- |
|
- |
|
- |
|
- |
|
Other income tax expense |
|
- |
|
|
0.00 |
|
|
- |
|
|
- |
|
|
0.00 |
|
|
|
- |
|
|
- |
|
- |
|
- |
|
- |
|
Adjusted Diluted Earnings per share from Continuing
Operations |
$ |
0.39 |
|
$ |
0.36 |
|
$ |
0.47 |
|
$ |
0.50 |
|
$ |
1.72 |
|
|
$ |
0.40 |
|
$ |
- |
$ |
- |
$ |
- |
$ |
0.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow |
|
|
|
|
|
|
|
|
|
|
Cash (used in) provided by operating activities |
$ |
(6,675 |
) |
$ |
13,327 |
|
$ |
30,306 |
|
$ |
44,361 |
|
$ |
81,319 |
|
|
$ |
8,649 |
|
|
|
|
$ |
8,649 |
|
Capital expenditures |
|
(1,567 |
) |
|
(1,585 |
) |
|
(1,818 |
) |
|
(6,441 |
) |
|
(11,411 |
) |
|
|
(5,857 |
) |
|
|
|
|
(5,857 |
) |
Free Cash Flow |
$ |
(8,242 |
) |
$ |
11,742 |
|
$ |
28,488 |
|
$ |
37,920 |
|
$ |
69,908 |
|
|
$ |
2,792 |
|
$ |
- |
$ |
- |
$ |
- |
$ |
2,792 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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 2025 |
|
Low |
High |
Reconciliation of Continuing Operations GAAP Operating
Profit |
|
To Adjusted EBITDA (5) |
|
|
GAAP Operating profit |
$ |
135 |
|
$ |
147 |
|
Other expense, net |
|
(1 |
) |
|
(1 |
) |
Depreciation & amortization |
|
16 |
|
|
14 |
|
Adjusted EBITDA |
$ |
150 |
|
$ |
160 |
|
|
|
|
Reconciliation of GAAP Cash Flow From Operations to Free
Cash Flow |
|
Cash provided by operating activities |
$ |
61 |
|
$ |
76 |
|
Capital expenditures |
|
24 |
|
|
19 |
|
Free Cash Flow |
$ |
85 |
|
$ |
95 |
|
|
|
|
Notes continued: |
|
|
(5) Management does not provide guidance on certain 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
only those items about which we are aware and are reasonably likely
to occur during the guidance period covered. |
|
|
Contact: Travis WilliamsSenior Director, Investor
Relations+1.262.293.1912
Enerpac Tool (NYSE:EPAC)
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