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Enerpac Tool Group Reports Second Quarter Fiscal 2022 Results

Second Quarter of Fiscal 2022 Continuing Operations Highlights*

  • Net sales were $137 million, representing a 16% year-over-year increase in core sales
  • GAAP operating margin was 3.3% and adjusted operating margin was 8.5%
  • Adjusted EBITDA margin was 12.0%
  • GAAP diluted earnings per share (“EPS”) was $0.03 and adjusted diluted EPS was $0.14
  • Leverage (Net Debt to Adjusted EBITDA) was 0.6x at February 28, 2022
  • Suspended sales into Russia in March to ensure compliance with sanctions imposed by NATO nations
  • Updated full year guidance for fiscal 2022
  • Launching ASCEND transformation program and announcing new share repurchase authorization to enhance shareholder value



    *This news release contains financial measures in accordance with US Generally Accepted Accounting Principles (“GAAP”) in addition to non-GAAP financial measures. Reconciliations of the GAAP to non-GAAP historical financial measures can be found in the tables accompanying this release.

Enerpac Tool Group Corp. (NYSE: EPAC) (the “Company”) today announced results for its fiscal second quarter ended February 28, 2022.

“We are pleased to have achieved year-over-year core growth in all regions and encouraged by the sequential growth over the first quarter, despite the ongoing supply chain and logistic challenges,” said Paul Sternlieb, Enerpac Tool Group’s President & CEO. “We continue to see improvements in demand across several of our end markets but remain cautious as we head into the back half of our fiscal year given the continuing supply chain challenges and the very dynamic macroeconomic environment.”

 

Consolidated Results from Continuing Operations

 

 

 

 

(US$ in millions, except per share)

 

 

 

 

Three Months Ended

 

Six Months Ended

February 28,

2022

February 28,

2021

 

February 28,

2022

 

February 28,

2021

Net Sales

$136.6

 

$120.7

 

$267.5

 

$240.1

Net Income

$2.1

 

$3.6

 

$5.3

 

$8.4

Diluted Earnings Per Share

$0.03

 

$0.06

 

$0.09

 

$0.14

Adjusted Diluted Earnings Per Share

$0.14

 

$0.06

 

$0.30

 

$0.15

  • Consolidated net sales for the second quarter of fiscal 2022 were $136.6 million compared to $120.7 million in the prior year second quarter. Core sales improved 16% year over year, with product sales up 16% and service revenues up 13%. The impact from foreign currency exchange rates decreased net sales by 2% in the quarter.
  • Fiscal 2022 second quarter net income and diluted earnings per share were $2.1 million and $0.03, respectively, compared to net income and diluted EPS of $3.6 million and $0.06, respectively, in the second quarter of fiscal 2021. Fiscal 2022 second quarter net income included:
    • A restructuring charge of $1.8 million ($1.7 million, or $0.03 per share, after tax) attributable to further actions to flatten and simplify the organizational structure;
    • Impairment & divestiture charges of $1.1 million ($0.8 million, or $0.01 per share, after tax) related to intangible assets from historical acquisitions;
    • Business review charges of $2.5 million ($2.3 million, or $0.04 per share, after tax) related to external support for the deep dive business review;
    • Senior leadership transition charges of $1.7 million ($1.6 million, or $0.03 per share, after tax); and
    • Tax expense of $0.2 million ($0.00 per share) related to equity compensation deferred tax adjustments.
  • Fiscal 2021 second quarter net income included an impairment & divestiture charge of $0.4 million ($0.3 million, or $0.01 per share, after tax), restructuring charges of $0.6 million ($0.6 million, or $0.01 per share, after tax); and tax benefits of $0.6 million ($0.01 per share) related to equity compensation deferred tax adjustments.
  • Excluding the items detailed above, adjusted diluted EPS was $0.14 for the second quarter of fiscal 2022 compared to $0.06 in the comparable prior year period.
  • Consolidated net sales for the six months ended February 28, 2022 were $267.5 million, compared to $240.1 million in the comparable prior year period. Core sales increased 13% year over year, while the net impact of foreign currency decreased net sales 1%.
  • Fiscal 2022’s first half net income and diluted EPS were $5.3 million and $0.09, respectively, compared to net income and diluted EPS of $8.4 million and $0.14, respectively, in the comparable prior year period.

 

Industrial Tools & Services (IT&S)

 

 

 

 

 

(US$ in millions)

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

February 28,

2022

February 28,

2021

 

February 28,

2022

 

February 28,

2021

Net Sales

$125.9

 

$112.7

 

$247.3

 

$224.9

Operating Profit

$12.6

 

$13.9

 

$30.6

 

$31.0

Adjusted Op Profit (1)

$15.7

 

$14.9

 

$35.3

 

$32.2

Adjusted Op Profit % (1)

12.4%

 

13.2%

 

14.3%

 

14.3%

(1) Excludes $1.5 million of restructuring charges, $1.1 million of impairment & divestiture charges and $0.4 million of senior leadership transition charges in the second quarter of fiscal 2022 compared to $0.6 million of restructuring charges and $0.4 million of impairment & divestiture charges in the second quarter of fiscal 2021. The six months ended February 28, 2022 excludes $3.1 million of restructuring charges, $1.1 million of impairment & divestiture charges and $0.4 million of senior leadership transition charges compared to $0.7 million of restructuring charges and $0.5 million of impairment & divestiture charges in the prior year period.

  • Second quarter fiscal 2022 net sales were $125.9 million, 12% higher than the prior fiscal year’s second quarter net sales. Core sales increased 14% year over year.
  • The increase in revenue is attributable to the global market recovery from the COVID-19 pandemic and to a lesser extent the impact of pricing actions taken to offset inflationary pressures.
  • Adjusted operating profit margin decreased year over year to 12.4% primarily due to lower service mix/utilization and additional receivable reserves.

Corporate Expenses and Income Taxes from Continuing Operations

  • Corporate expenses were $8.4 million and $6.3 million for the second quarter of fiscal 2022 and fiscal 2021, respectively.
  • Adjusted corporate expenses(2) of $4.3 million for the second quarter of fiscal 2022 were $2.0 million lower than the comparable prior year period, primarily resulting from lower equity/incentive compensation and insurance costs.
  • The fiscal 2022 second quarter adjusted effective income tax rate from continuing operations of approximately 18% was higher than the second quarter fiscal 2021 adjusted rate of approximately 16%.

(2) Excludes approximately $0.3 million of restructuring charges, $2.5 million of business review charges, and $1.3 million of senior leadership transition charges in the second quarter of fiscal 2022. There were no comparable charges in the second quarter of fiscal 2021.

Discontinued Operations

Discontinued operations represent the impacts from certain retained liabilities associated with the divestiture of the former EC&S segment on October 31, 2019.

Balance Sheet and Leverage

 

(US$ in millions)

 

 

Period Ended

 

February 28, 2022

November 30, 2021

February 28, 2021

Cash Balance

 

$133.4

 

$126.5

 

$115.3

Debt Balance

 

$175.0

 

$175.0

 

$210.0

Net Debt to Adjusted EBITDA**

 

0.6

 

0.7

 

2.1

Net debt at February 28, 2022 was approximately $42 million (total debt of $175 million less $133 million of cash), which decreased approximately $6 million from November 30, 2021. Net Debt to Adjusted EBITDA from continuing operations was 0.6x at February 28, 2022.

**Calculated in accordance with the terms of the Company’s March 2019 Senior Credit Facility

ASCEND Launch and Share Repurchase Authorization

In a separate release this morning, the Company announced the launch of the ASCEND transformation program focused on driving accelerated growth and EBITDA to enhance shareholder value. The Company also announced that the Board of Directors authorized a new share repurchase program of up to 10 million shares of the Company's common stock.

Outlook

Mr. Sternlieb continued, “As we move into the back half of our fiscal year, our focus is on successfully executing on our new ASCEND transformation program and accelerating shareholder value creation. Despite the strong quarter, the turmoil of global events in the last month and the resulting macroeconomic challenges have created second half headwinds and uncertainty in our markets, and as such we are adjusting our full year guidance for fiscal 2022.

“Factors such as the stronger US Dollar, which accounts for roughly half of the impact to our new net sales guidance, continued inflationary pressures, continued supply chain disruptions as well as greater supply chain difficulties resulting from the Russia-Ukraine conflict and, to a lesser extent product sold directly into Russia which has been suspended to comply with sanctions, have caused us to revise our full year sales guidance, to a new range of $560 to $580 million. While we have some potential tailwinds that could help support growth, we remain cautious. We continue to expect incremental EBITDA margins*** of 35% to 45% excluding the impact of foreign currency.”

***Incremental (or decremental) adjusted EBITDA margin is equivalent to the change in adjusted EBITDA divided by the change in Net Sales for the comparable periods.

Conference Call Information

An investor conference call is scheduled for 10:00 am CT today, March 23, 2022. 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. Management cautions that these statements are based on current estimates of future performance and are highly dependent upon a variety of factors, which could cause actual results to differ from these estimates. Among other risks and uncertainties, Enerpac Tool Group’s results are subject to risks and uncertainties arising from general economic conditions, supply chain risk, material and labor cost increases, the COVID-19 pandemic, including the impact of the pandemic or related government responses on the Company’s business, the businesses of the Company’s customers and vendors, and employee mobility, and whether site-specific health and safety concerns related to COVID-19 might require operations to be halted for some period of time, volatile oil pricing, variation in demand from customers, the impact of geopolitical activity on the economy, including the invasion of Ukraine by Russia and international sanctions imposed in response thereto, continued market acceptance of the Company’s new product introductions, the successful integration of acquisitions, the impact of restructurings, the ability of the Company to achieve its plans or objectives related to the ASCEND program, including any assumptions underlying its calculation of expected incremental EBITDA, operating margin risk due to competitive pricing and operating efficiencies, tax law changes, foreign currency fluctuations and interest rate risk. See the Company’s Form 10-K for the fiscal year ended August 31, 2021 filed with the Securities and Exchange Commission for further information regarding risk factors. 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, free cash flow and net debt. This press release includes reconciliations of historical non-GAAP measures to the most comparable GAAP measure, including in the tables attached to this press release. This press release does not include a quantitative reconciliation of non-GAAP measures presented for any future period as such a reconciliation is not practicable. Such future-period measures are presented in a manner consistent with the presentation thereof for historical periods. 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 and services company serving a broad and diverse set of customers in more than 100 countries. The Company’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
(Dollars in thousands)
(Unaudited)
 
February 28, August 31,

2022

2021

Assets
Current assets
Cash and cash equivalents

$

133,430

 

$

140,352

 

Accounts receivable, net

 

113,460

 

 

103,233

 

Inventories, net

 

89,479

 

 

75,347

 

Other current assets

 

37,694

 

 

38,503

 

Total current assets

 

374,063

 

 

357,435

 

 
Property, plant and equipment, net

 

46,480

 

 

48,590

 

Goodwill

 

273,437

 

 

277,593

 

Other intangible assets, net

 

48,608

 

 

54,545

 

Other long-term assets

 

78,874

 

 

82,084

 

 
Total assets

$

821,462

 

$

820,247

 

 
Liabilities and Shareholders' Equity
Current liabilities
Trade accounts payable

$

66,422

 

$

61,958

 

Accrued compensation and benefits

 

20,852

 

 

21,597

 

Income taxes payable

 

6,270

 

 

5,674

 

Other current liabilities

 

46,772

 

 

45,535

 

Total current liabilities

 

140,316

 

 

134,764

 

 
Long-term debt, net

 

175,000

 

 

175,000

 

Deferred income taxes

 

5,540

 

 

4,397

 

Pension and postretirement benefit liabilities

 

16,805

 

 

17,783

 

Other long-term liabilities

 

70,778

 

 

76,105

 

Total liabilities

 

408,439

 

 

408,049

 

 
Shareholders' equity
Capital stock

 

16,669

 

 

16,604

 

Additional paid-in capital

 

208,022

 

 

202,971

 

Treasury stock

 

(667,732

)

 

(667,732

)

Retained earnings

 

957,348

 

 

953,339

 

Accumulated other comprehensive loss

 

(101,284

)

 

(92,984

)

Stock held in trust

 

(3,089

)

 

(3,067

)

Deferred compensation liability

 

3,089

 

 

3,067

 

Total shareholders' equity

 

413,023

 

 

412,198

 

 
Total liabilities and shareholders' equity

$

821,462

 

$

820,247

 

Enerpac Tool Group Corp.
Condensed Consolidated Statements of Earnings
(Dollars in thousands, except per share amounts)
(Unaudited)
 
Three Months Ended Six Months Ended
February 28, February 28, February 28, February 28,

2022

2021

2022

2021

Net sales

$

136,599

 

$

120,654

 

$

267,502

 

$

240,084

 

Cost of products sold

 

76,618

 

 

65,878

 

 

147,895

 

 

130,044

 

Gross profit

 

59,981

 

 

54,776

 

 

119,607

 

 

110,040

 

 
Selling, general and administrative expenses

 

50,668

 

 

45,883

 

 

99,145

 

 

89,593

 

Amortization of intangible assets

 

1,881

 

 

2,136

 

 

3,886

 

 

4,272

 

Restructuring charges

 

1,832

 

 

649

 

 

4,569

 

 

859

 

Impairment & divestiture charges

 

1,116

 

 

401

 

 

1,116

 

 

539

 

Operating profit

 

4,484

 

 

5,707

 

 

10,891

 

 

14,777

 

 
Financing costs, net

 

755

 

 

1,338

 

 

1,716

 

 

3,055

 

Other expense, net

 

271

 

 

784

 

 

751

 

 

1,058

 

Earnings before income tax expense

 

3,458

 

 

3,585

 

 

8,424

 

 

10,664

 

 
Income tax expense

 

1,337

 

 

1

 

 

3,118

 

 

2,258

 

Net earnings from continuing operations

 

2,121

 

 

3,584

 

 

5,306

 

 

8,406

 

Loss from discontinued operations, net of income taxes

 

(900

)

 

(402

)

 

(1,297

)

 

(626

)

Net earnings

$

1,221

 

$

3,182

 

$

4,009

 

$

7,780

 

 
Earnings per share from continuing operations
Basic

$

0.04

 

$

0.06

 

$

0.09

 

$

0.14

 

Diluted

 

0.03

 

 

0.06

 

 

0.09

 

 

0.14

 

 
Loss per share from discontinued operations
Basic

$

(0.01

)

$

(0.01

)

$

(0.02

)

$

(0.01

)

Diluted

 

(0.01

)

 

(0.01

)

 

(0.02

)

 

(0.01

)

 
Earnings per share*
Basic

$

0.02

 

$

0.05

 

$

0.07

 

$

0.13

 

Diluted

 

0.02

 

 

0.05

 

 

0.07

 

 

0.13

 

 
Weighted average common shares outstanding
Basic

 

60,387

 

 

59,938

 

 

60,324

 

 

59,874

 

Diluted

 

60,689

 

 

60,269

 

 

60,655

 

 

60,180

 

 
*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 Six Months Ended
February 28, February 28, February 28, February 28,

2022

2021

2022

2021

Operating Activities
Cash provided by operating activities - continuing operations

$

9,181

 

$

4,608

 

 

5,241

 

 

13,500

 

Cash provided by (used in) operating activities - discontinued operations

 

222

 

 

(29

)

 

(564

)

 

(254

)

Cash provided by operating activities

$

9,403

 

$

4,579

 

 

4,677

 

 

13,246

 

 
Investing Activities
Capital expenditures

 

(1,537

)

 

(3,725

)

 

(4,830

)

 

(5,630

)

Proceeds from sale of property, plant and equipment

 

30

 

 

548

 

 

163

 

 

595

 

Cash used in investing activities - continuing operations

 

(1,507

)

 

(3,177

)

 

(4,667

)

 

(5,035

)

Cash provided by investing activities - discontinued operations

 

-

 

 

-

 

 

-

 

 

-

 

Cash used in investing activities

$

(1,507

)

$

(3,177

)

 

(4,667

)

 

(5,035

)

 
Financing Activities
Borrowings on revolving credit facility

 

10,000

 

 

-

 

 

15,000

 

 

10,000

 

Principal repayments on revolving credit facility

 

(10,000

)

 

(45,000

)

 

(15,000

)

 

(55,000

)

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

 

(1,915

)

 

(1,625

)

 

(3,223

)

 

(1,799

)

Payment of cash dividend

 

-

 

 

-

 

 

(2,409

)

 

(2,394

)

Cash used in financing activities - continuing operations

$

(1,915

)

$

(46,625

)

 

(5,632

)

 

(49,193

)

Cash provided by financing activities - discontinued operations

 

-

 

 

-

 

 

-

 

 

750

 

Cash used in financing activities

$

(1,915

)

$

(46,625

)

 

(5,632

)

 

(48,443

)

 
Effect of exchange rate changes on cash

 

916

 

 

1,909

 

 

(1,300

)

 

3,316

 

 
Net cash increase (decrease) from continuing operations

 

6,675

 

 

(43,285

)

 

(6,358

)

 

(37,412

)

Net cash increase (decrease) from discontinued operations

 

222

 

 

(29

)

 

(564

)

 

496

 

Net increase (decrease) from cash and cash equivalents

$

6,897

 

$

(43,314

)

 

(6,922

)

 

(36,916

)

Cash and cash equivalents - beginning of period

 

126,533

 

 

158,568

 

 

140,352

 

 

152,170

 

Cash and cash equivalents - end of period

$

133,430

 

$

115,254

 

$

133,430

 

$

115,254

 

Enerpac Tool Group Corp.
Supplemental Unaudited Data
Reconciliation of GAAP Measures to Non-GAAP Measures
(Dollars in thousands)
Fiscal 2021 Fiscal 2022
Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL
Sales
Industrial Tool & Services Segment

$

112,175

 

$

112,739

 

$

133,400

 

$

134,811

 

$

493,125

 

$

121,313

 

$

125,940

 

$

-

$

-

$

247,253

 

Other

 

7,255

 

 

7,915

 

 

9,749

 

 

10,616

 

 

35,535

 

 

9,590

 

 

10,659

 

 

-

 

-

 

20,249

 

Total

$

119,430

 

$

120,654

 

$

143,149

 

$

145,427

 

$

528,660

 

$

130,903

 

$

136,599

 

$

-

$

-

$

267,502

 

 
% Sales Growth
Industrial Tool & Services Segment

 

-17

%

 

-9

%

 

44

%

 

31

%

 

8

%

 

8

%

 

12

%

 

-

 

-

 

10

%

Other

 

-35

%

 

-21

%

 

8

%

 

28

%

 

-8

%

 

32

%

 

35

%

 

-

 

-

 

33

%

Total

 

-19

%

 

-10

%

 

41

%

 

31

%

 

7

%

 

10

%

 

13

%

 

-

 

-

 

11

%

 
Operating Profit from Continuing Operations
Industrial Tool & Services Segment

$

17,362

 

$

14,880

 

$

25,304

 

$

26,772

 

$

84,318

 

$

19,646

 

$

15,654

 

$

-

$

-

$

35,300

 

Other

 

(1,662

)

 

(1,834

)

 

14

 

 

(968

)

 

(4,450

)

 

(1,257

)

 

334

 

 

-

 

-

 

(923

)

Corporate / General

 

(6,282

)

 

(6,289

)

 

(5,808

)

 

(6,535

)

 

(24,915

)

 

(5,486

)

 

(4,309

)

 

-

 

-

 

(9,795

)

Adjusted operating profit

$

9,418

 

$

6,757

 

$

19,510

 

$

19,269

 

$

54,953

 

$

12,903

 

$

11,679

 

$

-

$

-

$

24,582

 

Impairment & divestiture charges

 

(139

)

 

(401

)

 

-

 

 

(5,659

)

 

(6,198

)

 

-

 

 

(1,116

)

 

-

 

-

 

(1,116

)

Restructuring charges

 

(210

)

 

(649

)

 

(1,571

)

 

37

 

 

(2,392

)

 

(2,737

)

 

(1,832

)

 

-

 

-

 

(4,569

)

Gain on sale of facility, net of transaction charges

 

-

 

 

-

 

 

5,359

 

 

-

 

 

5,359

 

 

-

 

 

-

 

 

-

 

-

 

-

 

Executive transition & board search charges (2)

 

-

 

 

-

 

 

(551

)

 

(58

)

 

(609

)

 

(3,759

)

 

(37

)

 

-

 

-

 

(3,796

)

Business review charges

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(2,500

)

 

-

 

-

 

(2,500

)

Sr.Leadership transition charges

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(1,710

)

 

-

 

-

 

(1,710

)

Operating profit

$

9,069

 

$

5,707

 

$

22,747

 

$

13,589

 

$

51,113

 

$

6,407

 

$

4,484

 

$

-

$

-

$

10,891

 

 
Adjusted Operating Profit %
Industrial Tool & Services Segment

 

15.5

%

 

13.2

%

 

19.0

%

 

19.9

%

 

17.1

%

 

16.2

%

 

12.4

%

 

-

 

-

 

14.3

%

Other

 

-22.9

%

 

-23.2

%

 

0.1

%

 

-9.1

%

 

-12.5

%

 

-13.1

%

 

3.1

%

 

-

 

-

 

-4.6

%

Adjusted Operating Profit %

 

7.9

%

 

5.6

%

 

13.6

%

 

13.2

%

 

10.4

%

 

9.9

%

 

8.5

%

 

-

 

-

 

9.2

%

 
EBITDA from Continuing Operations (1)
Earnings from continuing operations

$

4,822

 

$

3,584

 

$

25,257

 

$

6,549

 

$

40,212

 

$

3,185

 

$

2,121

 

$

-

$

-

$

5,306

 

Financing costs, net

 

1,716

 

 

1,338

 

 

1,340

 

 

870

 

 

5,266

 

 

961

 

 

755

 

 

-

 

-

 

1,716

 

Income tax expense (benefit)

 

2,258

 

 

1

 

 

(4,390

)

 

5,895

 

 

3,763

 

 

1,781

 

 

1,337

 

 

-

 

-

 

3,118

 

Depreciation & amortization

 

5,458

 

 

5,507

 

 

5,473

 

 

5,173

 

 

21,611

 

 

5,175

 

 

4,986

 

 

-

 

-

 

10,161

 

EBITDA

$

14,254

 

$

10,430

 

$

27,680

 

$

18,487

 

$

70,852

 

$

11,102

 

$

9,199

 

$

-

$

-

$

20,301

 

 
Adjusted EBITDA from Continuing Operations (1)
Industrial Tool & Services Segment

$

21,002

 

$

18,210

 

$

28,873

 

$

30,421

 

$

98,506

 

$

22,996

 

$

19,260

 

$

-

$

-

$

42,256

 

Other

 

(740

)

 

(942

)

 

897

 

 

(133

)

 

(918

)

 

(263

)

 

1,225

 

 

-

 

-

 

962

 

Corporate / General

 

(5,659

)

 

(5,788

)

 

(5,327

)

 

(6,121

)

 

(22,896

)

 

(5,135

)

 

(4,091

)

 

-

 

-

 

(9,226

)

Adjusted EBITDA

$

14,603

 

$

11,480

 

$

24,443

 

$

24,167

 

$

74,692

 

$

17,598

 

$

16,394

 

$

-

$

-

$

33,992

 

Impairment & divestiture charges

 

(139

)

 

(401

)

 

-

 

 

(5,659

)

 

(6,198

)

 

-

 

 

(1,116

)

 

-

 

-

 

(1,116

)

Restructuring charges

 

(210

)

 

(649

)

 

(1,571

)

 

37

 

 

(2,392

)

 

(2,737

)

 

(1,832

)

 

-

 

-

 

(4,569

)

Gain on sale of facility, net of transaction charges

 

-

 

 

-

 

 

5,359

 

 

-

 

 

5,359

 

 

-

 

 

-

 

 

-

 

-

 

-

 

Executive transition & board search charges (2)

 

-

 

 

-

 

 

(551

)

 

(58

)

 

(609

)

 

(3,759

)

 

(37

)

 

-

 

-

 

(3,796

)

Business review charges

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(2,500

)

 

-

 

-

 

(2,500

)

Sr.Leadership transition charges

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

(1,710

)

 

-

 

-

 

(1,710

)

EBITDA

$

14,254

 

$

10,430

 

$

27,680

 

$

18,487

 

$

70,852

 

$

11,102

 

$

9,199

 

$

-

$

-

$

20,301

 

 
Adjusted EBITDA %
Industrial Tool & Services Segment

 

18.7

%

 

16.2

%

 

21.6

%

 

22.6

%

 

20.0

%

 

19.0

%

 

15.3

%

 

-

 

-

 

17.1

%

Other

 

-10.2

%

 

-11.9

%

 

9.2

%

 

-1.3

%

 

-2.6

%

 

-2.7

%

 

11.5

%

 

-

 

-

 

4.8

%

Adjusted EBITDA %

 

12.2

%

 

9.5

%

 

17.1

%

 

16.6

%

 

14.1

%

 

13.4

%

 

12.0

%

 

-

 

-

 

12.7

%

 
Notes:
(1) EBITDA represents net earnings from continuing operations before financing costs, net, income tax (benefit) expense, and depreciation & amortization. EBITDA is not a calculation based upon 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.
(2) Caption updated from "Corporate development & board search fees" used during Fiscal 2021. Costs included have not been altered.
Enerpac Tool Group Corp.
Supplemental Unaudited Data
Reconciliation of GAAP Measures to Non-GAAP Measures (Continued)
(Dollars in thousands, except for per share amounts)
Fiscal 2021 Fiscal 2022
Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL
Adjusted Earnings (3)
Net Earnings

$

4,598

 

$

3,182

 

$

25,031

 

$

5,266

 

$

38,077

 

$

2,788

 

$

1,221

 

$

-

$

-

$

4,009

 

Loss from Discontinued Operations, net of income tax

 

(224

)

 

(402

)

 

(226

)

 

(1,283

)

 

(2,135

)

 

(397

)

 

(900

)

 

-

 

-

 

(1,297

)

Earnings from Continuing Operations

$

4,822

 

$

3,584

 

$

25,257

 

$

6,549

 

$

40,212

 

$

3,185

 

$

2,121

 

$

-

$

-

$

5,306

 

Impairment & divestiture charges

 

139

 

 

401

 

 

-

 

 

5,659

 

 

6,198

 

 

-

 

 

1,116

 

 

-

 

-

 

1,116

 

Restructuring charges

 

210

 

 

649

 

 

1,571

 

 

(37

)

 

2,392

 

 

2,737

 

 

1,832

 

 

-

 

-

 

4,569

 

Gain on sale of facility, net of transaction charges

 

-

 

 

-

 

 

(5,359

)

 

-

 

 

(5,359

)

 

-

 

 

-

 

 

-

 

-

 

-

 

Executive transition & board search charges

 

-

 

 

-

 

 

551

 

 

58

 

 

609

 

 

3,759

 

 

37

 

 

-

 

-

 

3,796

 

Business review charges

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

2,500

 

 

-

 

-

 

2,500

 

Sr. leadership transition charges

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

1,710

 

 

-

 

-

 

1,710

 

Net tax effect of reconciling items above

 

(15

)

 

(100

)

 

2,647

 

 

(548

)

 

1,984

 

 

42

 

 

(805

)

 

-

 

-

 

(763

)

Other income tax (benefit) expense

 

-

 

 

(632

)

 

(7,523

)

 

-

 

 

(8,155

)

 

-

 

 

210

 

 

-

 

-

 

210

 

Adjusted Earnings from Continuing Operations

$

5,156

 

$

3,902

 

$

17,144

 

$

11,681

 

$

37,881

 

$

9,723

 

$

8,721

 

$

-

$

-

$

18,444

 

 
Adjusted Diluted Earnings per share (3)
Net Earnings

$

0.08

 

$

0.05

 

$

0.41

 

$

0.09

 

$

0.63

 

$

0.05

 

$

0.03

 

$

-

$

-

$

0.09

 

Loss from Discontinued Operations, net of income tax

 

(0.00

)

 

(0.01

)

 

(0.00

)

 

(0.02

)

 

(0.04

)

 

(0.01

)

 

(0.01

)

 

-

 

-

 

(0.02

)

Earnings from Continuing Operations

$

0.08

 

$

0.06

 

$

0.42

 

$

0.11

 

$

0.67

 

$

0.05

 

$

0.02

 

$

-

$

-

$

0.07

 

Impairment & divestiture charges, net of tax effect

 

0.00

 

 

0.01

 

 

-

 

 

0.08

 

 

0.09

 

 

-

 

 

0.01

 

 

-

 

-

 

0.01

 

Restructuring charges, net of tax effect

 

0.00

 

 

0.01

 

 

0.02

 

 

0.00

 

 

0.03

 

 

0.04

 

 

0.03

 

 

-

 

-

 

0.07

 

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

 

-

 

 

-

 

 

(0.04

)

 

0.00

 

 

(0.04

)

 

-

 

 

-

 

 

-

 

-

 

-

 

Executive transition & board search charges, net of tax effect

 

-

 

 

-

 

 

0.01

 

 

0.00

 

 

0.01

 

 

0.06

 

 

0.00

 

 

-

 

-

 

0.06

 

Business review charges, net of tax effect

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

0.04

 

 

-

 

-

 

0.04

 

Sr. leadership transition charges, net of tax effect

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

0.03

 

 

-

 

-

 

0.03

 

Other income tax (benefit) expense

 

-

 

 

(0.01

)

 

(0.12

)

 

-

 

 

(0.14

)

 

-

 

 

0.00

 

 

-

 

-

 

0.00

 

Adjusted Diluted Earnings per share from Continuing Operations

$

0.09

 

$

0.06

 

$

0.28

 

$

0.19

 

$

0.63

 

$

0.16

 

$

0.14

 

$

-

$

-

$

0.30

 

 
Free Cash Flow (4)
Cash (used in) provided by operating activities

$

8,667

 

$

4,579

 

$

11,643

 

$

29,294

 

$

54,183

 

$

(4,726

)

$

9,403

 

$

-

$

-

$

4,677

 

Capital expenditures

 

(1,905

)

 

(3,725

)

 

(3,874

)

 

(2,515

)

 

(12,019

)

 

(3,293

)

 

(1,537

)

 

-

 

-

 

(4,830

)

Proceeds from sale of property, plant and equipment

 

47

 

 

548

 

 

21,806

 

 

8

 

 

22,409

 

 

133

 

 

30

 

 

-

 

-

 

163

 

Other

 

(2

)

 

(518

)

 

4,937

 

 

182

 

 

4,599

 

 

-

 

 

1

 

 

-

 

-

 

1

 

Free Cash Flow

$

6,807

 

$

884

 

$

34,512

 

$

26,969

 

$

69,172

 

$

(7,886

)

$

7,897

 

$

-

$

-

$

11

 

 
Notes continued:
(3) 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 generally accepted accounting principles (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.
(4) Free cash flow primarily represents the operating cash flow, proceeds from the sale of property, plant and equipment combined with 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.

 

Contacts

Bobbi Belstner

Senior Director, Investor Relations and Strategy

262.293.1912

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