(MENAFN- GlobeNewsWire - Nasdaq) In a release issued under the same headline yesterday by Enerpac Tool Group Corp. (NYSE: EPAC), please note that in the Outlook section, the third paragraph should have read "Forecasted adjusted EBITDA is $150 million to $160 million, with anticipated free cash flow of $85 million to $95 million." and not "Forecasted adjusted EBITDA is $150 million to $160 million, with anticipated free cash flow of $89 million to $99 million." The $85 million to $95 million free cash flow guidance is consistent with the original financial tables included in the release and the presentation and slides for the earnings call held earlier today. The corrected release is as follows: Fiscal 2024 Continuing Operations Highlights *
Net sales were $590 million, a decline of 1.5% year-over-year, with organic growth of 2.2%. ** Gross margin expanded 180 basis points year-over-year to 51.1%. Operating margin was 20.6% and adjusted operating margin was 23.2%. Net earnings were $82 million and adjusted net earnings were $95 million, representing year-over-year increases of 53% and 14%, respectively. Diluted EPS was $1.50 and adjusted diluted EPS was $1.72. Adjusted EBITDA was $147 million, an increase of 8% year-over-year. Adjusted EBITDA margin of 25.0% increased 220 basis points. Cash from operations was $81 million with free cash flow of $70 million. Returned $38 million to shareholders through repurchase of 1.3 million shares and $2 million in dividend payments.
Fourth Quarter Continuing Operations Highlights *
Net sales were $159 million, a 1.2% decline compared to the prior year, with a 0.9% increase in organic sales. * * Operating margin was 18.9% and adjusted operating margin was 22.5%. Net earnings were $23 million, or $0.43 per diluted share, and adjusted net earnings were $27 million, or $0.50 per diluted share. Adjusted EBITDA was $39 million and adjusted EBITDA margin was 24.3%. Completed the acquisition of DTA on September 4, 2024 (subsequent to fiscal year-end).
* This press release contains financial measures in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) in addition to non-GAAP financial measures. Reconciliations of the non-GAAP financial measures to the comparable GAAP measures are presented in the tables accompanying this release.
** Organic growth represents revenue growth excluding the impact of foreign exchange rates, acquisitions, and divestitures. A reconciliation of organic sales to the comparable net sales are presented in the tables accompanying this release.
MILWAUKEE, Oct. 16, 2024 (GLOBE NEWSWIRE) -- Enerpac Tool Group Corp. (NYSE: EPAC) (the“Company” or“Enerpac”) today announced results for the fiscal year and fourth quarter ended August 31, 2024.
“In what remains a challenging macro-environment for the general industrial marketplace, Enerpac continued to achieve organic growth in fiscal 2024,” said Paul Sternlieb, Enerpac Tool Group's President & CEO.“We also continued to drive productivity and efficiency gains, further expanding gross margins and adjusted EBITDA margins for the year. Moreover, we remained good stewards of capital, investing in our growth strategy – including the September 4, 2024 acquisition of DTA – and returned $40 million to shareholders through our share repurchase program and dividend payments, while reducing our balance sheet leverage.”
“We are also excited that Darren Kozik will be joining Enerpac as Executive Vice President and Chief Financial Officer,” continued Sternlieb.“As noted in a separate release issued today, Darren's operational leadership and deep experience in global corporate finance, accounting, treasury, tax, and investor relations will make him a tremendous asset to the company.”
| Consolidated Results from Continuing Operations |
| (US$ in millions, except per share data) |
| | Three Months Ended | | Twelve Months Ended |
| | August 31,
2024 | | August 31,
2023 | | August 31,
2024 | | August 31,
2023 |
| Net Sales | $158.7 | | $160.6 | | $589.5 | | $598.2 |
| Operating Profit | $30.0 | | $32.2 | | $121.6 | | $83.9 |
| Adjusted Operating Profit | $35.8 | | $36.9 | | $136.7 | | $122.7 |
| Net Earnings | $23.4 | | $23.1 | | $82.2 | | $53.6 |
| Diluted EPS | $0.43 | | $0.41 | | $1.50 | | $0.94 |
| Adjusted Diluted EPS | $0.50 | | $0.42 | | $1.72 | | $1.45 |
| Adjusted EBITDA | $38.6 | | $40.1 | | $147.5 | | $136.3 |
| | | | | | | | |
Fiscal 2024 Consolidated Results from Continuing Operations Comparisons
Consolidated net sales were $589.5 million compared to $598.2 million in fiscal 2023, a decrease of 1.5%. Organic sales, excluding the disposition of Cortland Industrial and the impact of foreign currency, increased 2.2% year-over-year, with product and service revenues ahead 1.2% and 6.6%, respectively. Net sales growth for the Industrial Tools & Services (IT&S) reportable segment was 2.9%, with organic sales growth of 2.7%, partially offset by a year-over-year decline at Cortland Biomedical, which comprises the Other operating segment.
Gross margin expanded 180 basis points year-over-year to 51.1%, driven by several factors, including benefits from pricing actions, a favorable sales mix, and the disposition of Cortland Industrial. Selling, general and administrative expenses of $176.0 million declined $36.2 million year-over-year because of lower ASCEND transformation program expenses and a continued focus on driving greater efficiency and productivity. Adjusted SG&A of $162.4 million declined $6.4 million year-over-year, resulting in an adjusted SG&A of 27.6% of sales, down 60 basis points from 28.2% of sales in fiscal 2023.
Operating profit increased 45% year-over-year to $121.6 million, with an operating profit margin of 20.6%, up from 14.0% in fiscal 2023. Adjusted operating profit increased 11% to $136.7 million, with an adjusted operating margin of 23.2%, a 270 basis point expansion over fiscal 2023.
Fiscal 2024 net earnings and diluted EPS were $82.2 million and $1.50, respectively, compared to $53.6 million and $0.94, respectively, in fiscal 2023.
Fiscal 2024 adjusted EBITDA increased 8% to $147.5 million compared to $136.3 million in fiscal 2023. The adjusted EBITDA margin expanded 220 basis points from 22.8% to 25.0% in fiscal 2024.
Net cash provided by operating activities was $81.3 million in fiscal 2024, compared to $77.6 million in fiscal 2023. The increase in cash from operations was primarily due to higher net earnings as well as lower ASCEND transformation payments, partially offset by changes in working capital.
Fourth Quarter Consolidated Results from Continuing Operations Comparisons
Consolidated net sales for the fourth quarter of fiscal 2024 were $158.7 million compared to $160.6 million in the prior-year period, a 1.2% decline. While the rate of growth decelerated over the course of fiscal 2024, organic sales grew 0.9% year-over-year in the fourth quarter, with product sales down 0.8% and service revenues up 9.7%.
Operating profit declined 7% year-over-year to $30.0 million, with an operating profit margin of 18.9%, down from 20.0% in the fourth quarter of fiscal 2023. Adjusted operating profit declined 3% to $35.8 million in the fourth quarter of 2024, representing an adjusted operating margin of 22.5%. While the Company continued to control SG&A expense in the fourth quarter, gross margins were negatively impacted by lower product sales year-over-year, a higher percentage of service revenue, and unfavorable mix within the service projects completed.
Fiscal 2024 fourth quarter net earnings and diluted earnings per share were $23.4 million and $0.43, respectively, compared to $23.1 million and $0.41, respectively, in the fourth quarter of fiscal 2023.
Fourth quarter adjusted EBITDA was $38.6 million compared to $40.1 million in the year-ago period.
| Industrial Tools & Services (IT&S) | | | | | |
| (US$ in millions) | | | | | | | |
| | Three Months Ended | | Twelve Months Ended |
| | August 31,
2024 | | August 31,
2023 | | August 31,
2024 | | August 31,
2023 |
| Net Sales | $153.4 | | $152.9 | | $571.2 | | $555.2 |
| Operating Profit | $39.1 | | $42.6 | | $153.1 | | $135.9 |
| Operating Profit % | 25.5% | | 27.9% | | 26.8% | | 24.5% |
| Adjusted Op Profit (1) | $43.0 | | $45.3 | | $164.0 | | $149.0 |
| Adjusted Op Profit % (1) | 28.0% | | 29.6% | | 28.7% | | 26.8% |
(1) Excludes $3.1 million of restructuring charges and $0.8 million of ASCEND charges in the fourth quarter of fiscal 2024 compared to $1.4 million of restructuring charges and $1.3 million of ASCEND charges in the fourth quarter of fiscal 2023. The twelve months ended August 31, 2024, excludes $7.2 million of restructuring charges and $3.7 million of ASCEND charges, compared to $6.0 million of restructuring charges and $7.1 million of ASCEND charges in the prior fiscal year.
IT&S Results Comparisons
Fiscal 2024 net sales for IT&S were $571.2 million, 2.9% higher than fiscal 2023, with a 2.7% increase in organic sales. The increase was driven by product growth of 1.7% and service growth of 6.6%. The segment's operating profit margin increased 230 basis points to 26.8% and adjusted operating profit margin increased 190 basis points to 28.7% from 26.8%.
Fourth quarter fiscal 2024 net sales for IT&S were $153.4 million, approximately flat year-over-year with a 0.8% increase in organic sales. The segment's operating profit margin declined 240 basis points to 25.5% and its adjusted operating profit margin decreased 160 basis points to 28.0%.
Corporate Expenses from Continuing Operations
Corporate expenses were $35.8 million and $62.9 million for fiscal 2024 and fiscal 2023, respectively. Adjusted corporate expenses(2) of $31.7 million in fiscal 2024 increased by $0.6 million year-over-year, primarily due to higher incentive compensation expense.
Corporate expenses were $10.1 million and $16.8 million for the fourth quarter of fiscal 2024 and fiscal 2023, respectively. Adjusted corporate expenses(2) of $8.3 million for the fourth quarter of fiscal 2024 decreased by $0.3 million.
(2) Fiscal 2024 adjusted corporate expense excludes approximately $0.6 million of restructuring charges, $3.4 million of ASCEND charges, and $0.1 million in M&A charges, compared to $1.7 million of restructuring charges, $28.3 million of ASCEND charges, $1.0 million in M&A charges, and $0.8 million of leadership transition charges in fiscal 2023. Fourth quarter fiscal 2024 adjusted corporate expense excludes approximately $0.3 million of restructuring charges, $1.4 million of ASCEND charges, and $0.1 million in M&A charges as compared to $0.1 million of restructuring charges, $7.4 million of ASCEND charges, $0.7 million in M&A charges, and $0.1 million of leadership transition charges in the fourth quarter of fiscal 2023.
| | | | | |
| Balance Sheet and Leverage | | | | |
| (US$ in millions) | | | | |
| | | August 31, 2024 | May 31, 2024 | August 31, 2023 |
| Cash Balance | | $167.1 | $132.4 | $154.4 |
| Debt Balance | | $194.5 | $195.7 | $214.1 |
| Net Debt to Adjusted EBITDA* | | 0.2x | 0.5x | 0.6x |
| | | | | |
Net debt on August 31, 2024 was $27 million, resulting in a net debt to adjusted EBITDA ratio of 0.2x. The company purchased approximately 1.3 million shares of its common stock in fiscal 2024 for a total of approximately $38 million under its share repurchase program announced in March 2022. As of August 31, 2024, there were approximately 2.7 million shares remaining in the current share repurchase authorization program.
*Calculated in accordance with the terms of the Company's September 2022 Senior Credit Facility.
Outlook
“In setting our guidance for fiscal 2025, we are taking into account an expectation of a continued decline in the general industrial market. However, we believe Enerpac will continue to generate growth in fiscal 2025, representing our ability to outperform the industry and gain share driven by our targeted growth strategy," concluded Sternlieb.
The company set its full-year fiscal 2025 net sales guidance range at $610 million to $625 million, which includes organic growth of 0% to 2% and total net sales growth, inclusive of DTA, of 3% to 6%.
Forecasted adjusted EBITDA is $150 million to $160 million, with anticipated free cash flow of $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 October 16, 2024. Webcast information and conference call materials, including an earnings presentation, are available on the Enerpac Tool Group company website ( ).
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 upcoming 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 ASCEND program, including any assumptions underlying its calculation of expected incremental operating profit or program investment, operating margin risk due to competitive pricing and operating efficiencies, 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, 2023 and most recent report on Form 10-Q. Enerpac Tool Group disclaims any obligation to publicly update or revise any forward-looking statements as a result of new information, future events or any other reason.
Non-GAAP Financial Information
This press release contains financial measures that are not measures presented in conformity with GAAP. These non-GAAP measures include organic sales, EBITDA from continuing operations, adjusted EBITDA from continuing operations, adjusted earnings from continuing operations, adjusted diluted earnings per share from continuing operations, adjusted operating profit from continuing operations, segment organic sales, adjusted operating profit and adjusted EBITDA, adjusted corporate expense, adjusted SG&A expense, free cash flow and net debt. This press release includes reconciliations of non-GAAP measures to the most comparable GAAP measure, included in the tables attached to this press release or in footnotes to the tables included in this press release. Management believes the non-GAAP measures presented in this press release are commonly used financial measures for investors to evaluate Enerpac Tool Group's operating performance and financial position with respect to the periods presented and, when read in conjunction with the condensed consolidated financial statements, present a useful tool to evaluate ongoing operations and provide investors with metrics they can use to evaluate aspects of the Company's performance from period to period. In addition, these are some of the financial metrics management uses in internal evaluations of the overall performance of the Company's business. Management acknowledges that there are many items that impact a company's reported results and the adjustments reflected in these non-GAAP measures are not intended to present all items that may have impacted these results. In addition, these non-GAAP measures are not necessarily comparable to similarly titled measures used by other companies.
About Enerpac Tool Group
Enerpac Tool Group Corp. is a premier industrial tools, services, technology, and solutions provider serving a broad and diverse set of customers and end markets for mission-critical applications in more than 100 countries. The Company makes complex, often hazardous jobs possible safely and efficiently. Enerpac Tool Group's businesses are global leaders in high pressure hydraulic tools, controlled force products, and solutions for precise positioning of heavy loads that help customers safely and reliably tackle some of the most challenging jobs around the world. The Company was founded in 1910 and is headquartered in Menomonee Falls, Wisconsin. Enerpac Tool Group common stock trades on the NYSE under the symbol EPAC. For further information on Enerpac Tool Group and its businesses, visit the Company's website at .
(tables follow)
| |
| Enerpac Tool Group Corp. |
| Condensed Consolidated Balance Sheets |
| (In thousands) |
| | | | |
| | (Unaudited) | | |
| | August 31, | | August 31, |
| | | 2024 | | | | 2023 | |
| Assets | | | |
| Current assets | | | |
| Cash and cash equivalents | $ | 167,094 | | | $ | 154,415 | |
| Accounts receivable, net | | 104,335 | | | | 97,649 | |
| Inventories, net | | 72,887 | | | | 74,765 | |
| Other current assets | | 27,942 | | | | 28,811 | |
| Total current assets | | 372,258 | | | | 355,640 | |
| | | | |
| Property, plant and equipment, net | | 40,285 | | | | 38,968 | |
| Goodwill | | 269,597 | | | | 266,494 | |
| Other intangible assets, net | | 36,058 | | | | 37,338 | |
| Other long-term assets | | 59,130 | | | | 64,157 | |
| | | | |
| Total assets | $ | 777,328 | | | $ | 762,597 | |
| | | | |
| Liabilities and Shareholders' Equity | | | |
| Current liabilities | | | |
| Trade accounts payable | $ | 43,368 | | | $ | 50,483 | |
| Accrued compensation and benefits | | 25,856 | | | | 33,194 | |
| Current maturities of long-term debt | | 5,000 | | | | 3,750 | |
| Income taxes payable | | 5,321 | | | | 3,771 | |
| Other current liabilities | | 49,848 | | | | 56,922 | |
| Total current liabilities | | 129,393 | | | | 148,120 | |
| | | | |
| Long-term debt, net | | 189,503 | | | | 210,337 | |
| Deferred income taxes | | 3,696 | | | | 5,667 | |
| Pension and postretirement benefit liabilities | | 10,073 | | | | 10,247 | |
| Other long-term liabilities | | 52,684 | | | | 61,606 | |
| Total liabilities | | 385,349 | | | | 435,977 | |
| | | | |
| Shareholders' equity | | | |
| Capital stock | | 10,847 | | | | 16,752 | |
| Additional paid-in capital | | 235,660 | | | | 220,472 | |
| Treasury stock | | - | | | | (800,506 | ) |
| Retained earnings | | 261,870 | | | | 1,011,112 | |
| Accumulated other comprehensive loss | | (116,398 | ) | | | (121,210 | ) |
| Stock held in trust | | (3,777 | ) | | | (3,484 | ) |
| Deferred compensation liability | | 3,777 | | | | 3,484 | |
| Total shareholders' equity | | 391,979 | | | | 326,620 | |
| | | | |
| Total liabilities and shareholders' equity | $ | 777,328 | | | $ | 762,597 | |
| | | | |
| 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, |
| | | 2024 | | | | 2023 | | | | 2024 | | | | 2023 | |
| Net sales | $ | 158,714 | | | $ | 160,609 | | | $ | 589,510 | | | $ | 598,204 | |
| Cost of products sold | | 81,312 | | | | 81,701 | | | | 288,499 | | | | 303,165 | |
| Gross profit | | 77,402 | | | | 78,908 | | | | 301,011 | | | | 295,039 | |
| | | | | | | | |
| Selling, general and administrative expenses | | 43,524 | | | | 50,948 | | | | 168,565 | | | | 205,064 | |
| Amortization of intangible assets | | 831 | | | | 1,037 | | | | 3,312 | | | | 5,112 | |
| Restructuring charges | | 3,007 | | | | 876 | | | | 7,400 | | | | 7,096 | |
| Impairment & divestiture (benefit) charges | | - | | | | (6,155 | ) | | | 147 | | | | (6,155 | ) |
| Operating profit | | 30,040 | | | | 32,202 | | | | 121,587 | | | | 83,922 | |
| | | | | | | | |
| Financing costs, net | | 2,731 | | | | 3,219 | | | | 13,524 | | | | 12,389 | |
| Other expense, net | | 465 | | | | 688 | | | | 2,544 | | | | 2,635 | |
| Earnings before income tax expense | | 26,844 | | | | 28,295 | | | | 105,519 | | | | 68,898 | |
| | | | | | | | |
| Income tax expense | | 3,435 | | | | 5,190 | | | | 23,312 | | | | 15,249 | |
| Net earnings from continuing operations | | 23,409 | | | | 23,105 | | | | 82,207 | | | | 53,649 | |
| Earnings (loss) from discontinued operations, net of income taxes | | 1,007 | | | | (874 | ) | | | 3,542 | | | | (7,088 | ) |
| Net earnings | $ | 24,416 | | | $ | 22,231 | | | $ | 85,749 | | | $ | 46,561 | |
| | | | | | | | |
| Earnings per share from continuing operations | | | | | | | |
| Basic | $ | 0.43 | | | $ | 0.41 | | | $ | 1.51 | | | $ | 0.95 | |
| Diluted | | 0.43 | | | | 0.41 | | | | 1.50 | | | | 0.94 | |
| | | | | | | | |
| Earnings (loss) per share from discontinued operations | | | | | | | |
| Basic | $ | 0.02 | | | $ | (0.02 | ) | | $ | 0.07 | | | $ | (0.13 | ) |
| Diluted | | 0.02 | | | | (0.02 | ) | | | 0.06 | | | | (0.12 | ) |
| | | | | | | | |
| Earnings per share* | | | | | | | |
| Basic | $ | 0.45 | | | $ | 0.40 | | | $ | 1.58 | | | $ | 0.82 | |
| Diluted | | 0.44 | | | | 0.40 | | | | 1.56 | | | | 0.82 | |
| | | | | | | | |
| Weighted average common shares outstanding | | | | | | | |
| Basic | | 54,313 | | | | 55,740 | | | | 54,336 | | | | 56,680 | |
| Diluted | | 54,930 | | | | 56,219 | | | | 54,862 | | | | 57,117 | |
| | | | | | | | |
| *The total of earnings per share from continuing operations and earnings (loss) per share from discontinued operations may not equal earnings per share due to rounding. |
| | | | | | | | | | | | | | | | |
| Enerpac Tool Group Corp. |
| Condensed Consolidated Statements of Cash Flows |
| (In thousands) |
| (Unaudited) |
| | | | | | | | |
| | Three Months Ended | | Twelve Months Ended |
| | August 31, | | August 31, | | August 31, | | August 31, |
| | | 2024 | | | | 2023 | | | | 2024 | | | | 2023 | |
| Operating Activities | | | | | | | |
| Cash provided by operating activities - continuing operations | | 44,471 | | | | 54,012 | | | | 84,016 | | | | 78,573 | |
| Cash used in operating activities - discontinued operations | | (110 | ) | | | (3,440 | ) | | | (2,697 | ) | | | (970 | ) |
| Cash provided by operating activities | $ | 44,361 | | | $ | 50,572 | | | $ | 81,319 | | | $ | 77,603 | |
| | | | | | | | |
| Investing Activities | | | | | | | |
| Capital expenditures | | (6,441 | ) | | | (919 | ) | | | (11,411 | ) | | | (8,715 | ) |
| Working capital adjustment from the sale of business assets | | - | | | | - | | | | (1,133 | ) | | | - | |
| Purchase of business assets | | - | | | | - | | | | (1,402 | ) | | | - | |
| Proceeds from sale of business, net of transaction costs | | - | | | | 20,057 | | | | - | | | | 20,057 | |
| Cash (used in) provided by investing activities - continuing operations | $ | (6,441 | ) | | $ | 19,138 | | | $ | (13,946 | ) | | $ | 11,342 | |
| Cash (used in) provided by investing activities | $ | (6,441 | ) | | $ | 19,138 | | | $ | (13,946 | ) | | $ | 11,342 | |
| | | | | | | | |
| Financing Activities | | | | | | | |
| Borrowings on revolving credit facility | | 14,743 | | | | 9,000 | | | | 62,743 | | | | 69,000 | |
| Principal repayments on revolving credit facility | | (14,743 | ) | | | (29,000 | ) | | | (78,743 | ) | | | (53,000 | ) |
| Principal repayments on term loan | | (1,250 | ) | | | (625 | ) | | | (3,750 | ) | | | (1,250 | ) |
| Proceeds from issuance of term loan | | - | | | | - | | | | - | | | | 200,000 | |
| Payment for redemption of revolver | | - | | | | - | | | | - | | | | (200,000 | ) |
| Swingline borrowings/repayments, net | | - | | | | - | | | | - | | | | (4,000 | ) |
| Payment of debt issuance costs | | - | | | | - | | | | - | | | | (2,486 | ) |
| Purchase of treasury shares | | (5,661 | ) | | | (36,831 | ) | | | (38,354 | ) | | | (57,662 | ) |
| Stock options, taxes paid related to the net share settlement of equity awards & other | | 2,049 | | | | 3 | | | | 4,016 | | | | (1,458 | ) |
| Payment of cash dividend | | - | | | | - | | | | (2,178 | ) | | | (2,274 | ) |
| Cash used in financing activities - continuing operations | $ | (4,862 | ) | | $ | (57,453 | ) | | $ | (56,266 | ) | | $ | (53,130 | ) |
| Cash used in financing activities | $ | (4,862 | ) | | $ | (57,453 | ) | | $ | (56,266 | ) | | $ | (53,130 | ) |
| | | | | | | | |
| Effect of exchange rate changes on cash | | 1,674 | | | | 157 | | | | 1,572 | | | | (2,099 | ) |
| | | | | | | | |
| Net increase from cash and cash equivalents | $ | 34,732 | | | $ | 12,414 | | | $ | 12,679 | | | $ | 33,716 | |
| Cash and cash equivalents - beginning of period | | 132,362 | | | | 142,001 | | | | 154,415 | | | | 120,699 | |
| Cash and cash equivalents - end of period | $ | 167,094 | | | $ | 154,415 | | | $ | 167,094 | | | $ | 154,415 | |
| | | | | | | | |
| Enerpac Tool Group Corp. |
| Supplemental Unaudited Data |
| Reconciliation of GAAP Measures to Non-GAAP Measures for Continuing Operations |
| (In thousands) | Fiscal 2023 | | Fiscal 2024 |
| | Q1 | Q2 | Q3 | Q4 | TOTAL | | Q1 | Q2 | Q3 | Q4 | TOTAL |
| Net Sales | | | | | | | | | | | |
| Industrial Tools & Services Segment | $ | 127,297 | | $ | 130,904 | | $ | 144,126 | | $ | 152,851 | | $ | 555,178 | | | $ | 137,035 | | $ | 134,822 | | $ | 145,936 | | $ | 153,360 | | $ | 571,153 | |
| Other | | 12,085 | | | 11,056 | | | 12,127 | | | 7,758 | | | 43,026 | | | | 4,935 | | | 3,615 | | | 4,453 | | | 5,354 | | | 18,357 | |
| Enerpac Tool Group | $ | 139,382 | | $ | 141,960 | | $ | 156,253 | | $ | 160,609 | | $ | 598,204 | | | $ | 141,970 | | $ | 138,437 | | $ | 150,389 | | $ | 158,714 | | $ | 589,510 | |
| | | | | | | | | | | | |
| % Net Sales Growth (Decline) Year over Year | | | | | | | | | | | |
| Industrial Tools & Services Segment | | 4.9 | % | | 3.9 | % | | 2.7 | % | | 9.4 | % | | 5.3 | % | | | 7.6 | % | | 3.0 | % | | 1.3 | % | | 0.3 | % | | 2.9 | % |
| Other | | 26.0 | % | | 3.7 | % | | 5.5 | % | | -36.1 | % | | -1.9 | % | | | -59.2 | % | | -67.3 | % | | -63.3 | % | | -31.0 | % | | -57.3 | % |
| Enerpac Tool Group | | 6.5 | % | | 3.9 | % | | 2.9 | % | | 5.8 | % | | 4.7 | % | | | 1.9 | % | | -2.5 | % | | -3.8 | % | | -1.2 | % | | -1.5 | % |
| | | | | | | | | | | | |
| Adjusted Selling, general and administrative expenses | | | | | | | | | | | |
| Selling, general and administrative expenses | $ | 53,247 | | $ | 52,059 | | $ | 48,810 | | $ | 50,948 | | $ | 205,064 | | | $ | 42,216 | | $ | 40,723 | | $ | 42,101 | | $ | 43,524 | | $ | 168,565 | |
| Leadership transition charges | | (400 | ) | | (202 | ) | | (90 | ) | | (90 | ) | | (783 | ) | | | - | | | - | | | - | | | - | | | - | |
| M&A charges | | - | | | (196 | ) | | (166 | ) | | (653 | ) | | (1,015 | ) | | | - | | | - | | | - | | | (121 | ) | | (121 | ) |
| ASCEND transformation program charges | | (9,382 | ) | | (11,197 | ) | | (5,536 | ) | | (8,381 | ) | | (34,495 | ) | | | (1,093 | ) | | (1,370 | ) | | (1,457 | ) | | (2,109 | ) | | (6,029 | ) |
| Adjusted Selling, general and administrative expenses | $ | 43,465 | | $ | 40,464 | | $ | 43,018 | | $ | 41,824 | | $ | 168,771 | | | $ | 41,123 | | $ | 39,353 | | $ | 40,644 | | $ | 41,294 | | $ | 162,415 | |
| | | | | | | | | | | | |
| Adjusted Selling, general and administrative expenses % | | | | | | | | | | | |
| Enerpac Tool Group | | 31.2 | % | | 28.5 | % | | 27.5 | % | | 26.0 | % | | 28.2 | % | | | 29.0 | % | | 28.4 | % | | 27.0 | % | | 26.0 | % | | 27.6 | % |
| | | | | | | | | | | | |
| Adjusted Operating profit | | | | | | | | | | | |
| Operating profit | $ | 12,309 | | $ | 13,972 | | $ | 25,439 | | $ | 32,202 | | $ | 83,922 | | | $ | 28,662 | | $ | 29,521 | | $ | 33,363 | | $ | 30,040 | | $ | 121,587 | |
| Impairment & divestiture (benefit) charges | | - | | | - | | | - | | | (6,155 | ) | | (6,155 | ) | | | 147 | | | - | | | - | | | - | | | 147 | |
| Restructuring charges (1) | | 982 | | | 2,987 | | | 2,252 | | | 1,461 | | | 7,681 | | | | 2,401 | | | 398 | | | 1,595 | | | 3,450 | | | 7,843 | |
| Leadership transition charges | | 400 | | | 202 | | | 90 | | | 90 | | | 783 | | | | - | | | - | | | - | | | - | | | - | |
| M&A charges | | - | | | 196 | | | 166 | | | 653 | | | 1,015 | | | | - | | | - | | | - | | | 121 | | | 121 | |
| ASCEND transformation program charges | | 9,419 | | | 11,372 | | | 5,947 | | | 8,681 | | | 35,419 | | | | 1,229 | | | 1,607 | | | 2,042 | | | 2,168 | | | 7,047 | |
| Adjusted operating profit | $ | 23,110 | | $ | 28,729 | | $ | 33,894 | | $ | 36,932 | | $ | 122,665 | | | $ | 32,439 | | $ | 31,526 | | $ | 37,000 | | $ | 35,779 | | $ | 136,745 | |
| | | | | | | | | | | | |
| Adjusted Operating Profit by Segment | | | | | | | | | | | |
| Industrial Tools & Services Segment | $ | 29,099 | | $ | 34,836 | | $ | 39,814 | | $ | 45,269 | | $ | 149,019 | | | $ | 38,470 | | $ | 38,909 | | $ | 43,648 | | $ | 42,989 | | $ | 164,016 | |
| Other | | 1,424 | | | 1,156 | | | 1,965 | | | 254 | | | 4,799 | | | | 2,118 | | | (79 | ) | | 1,284 | | | 1,120 | | | 4,443 | |
| Corporate / General | | (7,413 | ) | | (7,263 | ) | | (7,885 | ) | | (8,591 | ) | | (31,153 | ) | | | (8,149 | ) | | (7,304 | ) | | (7,932 | ) | | (8,330 | ) | | (31,714 | ) |
| Adjusted operating profit | $ | 23,110 | | $ | 28,729 | | $ | 33,894 | | $ | 36,932 | | $ | 122,665 | | | $ | 32,439 | | $ | 31,526 | | $ | 37,000 | | $ | 35,779 | | $ | 136,745 | |
| | | | | | | | | | | | |
| Adjusted Operating Profit % by Segment | | | | | | | | | | | |
| Industrial Tools & Services Segment | | 22.9 | % | | 26.6 | % | | 27.6 | % | | 29.6 | % | | 26.8 | % | | | 28.1 | % | | 28.9 | % | | 29.9 | % | | 28.0 | % | | 28.7 | % |
| Other | | 11.8 | % | | 10.5 | % | | 16.2 | % | | 3.3 | % | | 11.2 | % | | | 42.9 | % | | -2.2 | % | | 28.8 | % | | 20.9 | % | | 24.2 | % |
| Adjusted Operating Profit % | | 16.6 | % | | 20.2 | % | | 21.7 | % | | 23.0 | % | | 20.5 | % | | | 22.8 | % | | 22.8 | % | | 24.6 | % | | 22.5 | % | | 23.2 | % |
| | | | | | | | | | | | |
| EBITDA from Continuing Operations (2) | | | | | | | | | | | |
| Net earnings from continuing operations | $ | 6,409 | | $ | 7,158 | | $ | 16,976 | | $ | 23,105 | | $ | 53,649 | | | $ | 18,305 | | $ | 17,871 | | $ | 22,621 | | $ | 23,409 | | $ | 82,207 | |
| Financing costs, net | | 2,815 | | | 3,105 | | | 3,250 | | | 3,219 | | | 12,389 | | | | 3,697 | | | 3,711 | | | 3,385 | | | 2,731 | | | 13,524 | |
| Income tax expense | | 2,383 | | | 2,988 | | | 4,688 | | | 5,190 | | | 15,249 | | | | 5,669 | | | 7,396 | | | 6,813 | | | 3,435 | | | 23,312 | |
| Depreciation & amortization | | 4,193 | | | 4,226 | | | 4,084 | | | 3,810 | | | 16,313 | | | | 3,426 | | | 3,328 | | | 3,216 | | | 3,304 | | | 13,275 | |
| EBITDA | $ | 15,800 | | $ | 17,477 | | $ | 28,998 | | $ | 35,324 | | $ | 97,600 | | | $ | 31,097 | | $ | 32,306 | | $ | 36,035 | | $ | 32,879 | | $ | 132,318 | |
| | | | | | | | | | | | |
| Adjusted EBITDA from Continuing Operations (2) | | | | | | | | | | | |
| EBITDA | $ | 15,800 | | $ | 17,477 | | $ | 28,998 | | $ | 35,324 | | $ | 97,600 | | | $ | 31,097 | | $ | 32,306 | | $ | 36,035 | | $ | 32,879 | | $ | 132,318 | |
| Impairment & divestiture (benefit) charges | | - | | | - | | | - | | | (6,155 | ) | | (6,155 | ) | | | 147 | | | - | | | - | | | - | | | 147 | |
| Restructuring charges (1) | | 982 | | | 2,987 | | | 2,252 | | | 1,461 | | | 7,681 | | | | 2,401 | | | 398 | | | 1,595 | | | 3,450 | | | 7,843 | |
| Leadership transition charges | | 400 | | | 202 | | | 90 | | | 90 | | | 783 | | | | - | | | - | | | - | | | - | | | - | |
| M&A charges | | - | | | 196 | | | 166 | | | 653 | | | 1,015 | | | | - | | | - | | | - | | | 121 | | | 121 | |
| ASCEND transformation program charges | | 9,419 | | | 11,372 | | | 5,947 | | | 8,681 | | | 35,419 | | | | 1,229 | | | 1,607 | | | 2,042 | | | 2,168 | | | 7,047 | |
| Adjusted EBITDA | $ | 26,601 | | $ | 32,234 | | $ | 37,453 | | $ | 40,054 | | $ | 136,343 | | | $ | 34,874 | | $ | 34,311 | | $ | 39,672 | | $ | 38,618 | | $ | 147,476 | |
| | | | | | | | | | | | | | | | |
| Adjusted EBITDA by Segment | | | | | | | | | | | | | | | |
| Industrial Tools & Services Segment | $ | 31,698 | | $ | 37,458 | | $ | 42,525 | | $ | 47,952 | | $ | 159,633 | | | $ | 40,880 | | $ | 41,443 | | $ | 45,706 | | $ | 45,629 | | $ | 173,659 | |
| Other | | 2,316 | | | 2,050 | | | 2,855 | | | 739 | | | 7,961 | | | | 2,324 | | | 141 | | | 1,497 | | | 1,367 | | | 5,330 | |
| Corporate / General | | (7,413 | ) | | (7,274 | ) | | (7,927 | ) | | (8,637 | ) | | (31,251 | ) | | | (8,330 | ) | | (7,273 | ) | | (7,531 | ) | | (8,378 | ) | | (31,513 | ) |
| Adjusted EBITDA | $ | 26,601 | | $ | 32,234 | | $ | 37,453 | | $ | 40,054 | | $ | 136,343 | | | $ | 34,874 | | $ | 34,311 | | $ | 39,672 | | $ | 38,618 | | $ | 147,476 | |
| | | | | | | | | | | | |
| Adjusted EBITDA % by Segment | | | | | | | | | | | |
| Industrial Tools & Services Segment | | 24.9 | % | | 28.6 | % | | 29.5 | % | | 31.4 | % | | 28.8 | % | | | 29.8 | % | | 30.7 | % | | 31.3 | % | | 29.8 | % | | 30.4 | % |
| Other | | 19.2 | % | | 18.5 | % | | 23.5 | % | | 9.5 | % | | 18.5 | % | | | 47.1 | % | | 3.9 | % | | 33.6 | % | | 25.5 | % | | 29.0 | % |
| Adjusted EBITDA % | | 19.1 | % | | 22.7 | % | | 24.0 | % | | 24.9 | % | | 22.8 | % | | | 24.6 | % | | 24.8 | % | | 26.4 | % | | 24.3 | % | | 25.0 | % |
| | | | | | | | | | | | |
| Notes : | | | | | | | | | | | |
| (1) Approximately $0.4 million of the Q4 fiscal 2024 and $0.6 million of the Q4 fiscal 2023 restructuring charges were recorded in cost of products sold. |
| (2) EBITDA represents net earnings from continuing operations before financing costs, net, income tax expense, and depreciation & amortization. Neither EBITDA nor adjusted EBITDA are calculated based upon generally accepted accounting principles ("GAAP"). The amounts included in the EBITDA and adjusted EBITDA calculation, however, are derived from amounts included in the Condensed Consolidated Statements of Earnings. EBITDA and adjusted EBITDA should not be considered as alternatives to net earnings, operating profit or operating cash flows. The Company has presented EBITDA and adjusted EBITDA because it regularly reviews these performance measures. In addition, EBITDA and adjusted EBITDA are used by many of our investors and lenders, and are presented as a convenience to them. The EBITDA and adjusted EBITDA measures presented may not always be comparable to similarly titled measures reported by other companies due to differences in the components of the calculation. |
| |
| Enerpac Tool Group Corp. |
| Supplemental Unaudited Data |
| Reconciliation of GAAP Measures to Non-GAAP Measures (Continued) |
| (In thousands) | Fiscal 2023 | | Fiscal 2024 |
| | Q1 | Q2 | Q3 | Q4 | TOTAL | | Q1 | Q2 | Q3 | Q4 | TOTAL |
| Net Sales by Segment | | | | | | | | | | | |
| Industrial Tools & Services Segment | $ | 127,297 | | $ | 130,904 | | $ | 144,126 | | $ | 152,851 | | $ | 555,178 | | | $ | 137,035 | | $ | 134,822 | | $ | 145,936 | | $ | 153,360 | | $ | 571,153 | |
| Other | | 12,085 | | | 11,056 | | | 12,127 | | | 7,758 | | | 43,026 | | | | 4,935 | | | 3,615 | | | 4,453 | | | 5,354 | | | 18,357 | |
| Enerpac Tool Group | $ | 139,382 | | $ | 141,960 | | $ | 156,253 | | $ | 160,609 | | $ | 598,204 | | | $ | 141,970 | | $ | 138,437 | | $ | 150,389 | | $ | 158,714 | | $ | 589,510 | |
| | | | | | | | | | | | |
| Adjustment: Fx Impact on Net Sales | | | | | | | | | | | |
| Industrial Tools & Services Segment | $ | 2,262 | | $ | 294 | | $ | (747 | ) | $ | (734 | ) | $ | 1,075 | | | $ | - | | $ | - | | $ | - | | $ | - | | $ | - | |
| Other | | - | | | - | | | - | | | - | | | - | | | | - | | | - | | | - | | | - | | | - | |
| Enerpac Tool Group | $ | 2,262 | | $ | 294 | | $ | (747 | ) | $ | (734 | ) | $ | 1,075 | | | $ | - | | $ | - | | $ | - | | $ | - | | $ | - | |
| | | | | | | | | | | | |
| Adjustment: Impact from Divestitures or Acquisitions on Net Sales | | | | | | | | |
| Industrial Tools & Services Segment | $ | - | | $ | - | | $ | - | | $ | - | | $ | - | | | $ | - | | $ | - | | $ | - | | $ | - | | $ | - | |
| Other | | (7,031 | ) | | (6,220 | ) | | (6,938 | ) | | (2,548 | ) | | (22,737 | ) | | | - | | | - | | | - | | | - | | | - | |
| Enerpac Tool Group | $ | (7,031 | ) | $ | (6,220 | ) | $ | (6,938 | ) | $ | (2,548 | ) | $ | (22,737 | | | $ | - | | $ | - | | $ | - | | $ | - | | $ | - | |
| | | | | | | | | | | | | | | | |
| Organic Sales by Segment (3) | | | | | | | | | | | | | | | |
| Industrial Tools & Services Segment | $ | 129,559 | | $ | 131,198 | | $ | 143,379 | | $ | 152,117 | | $ | 556,253 | | | $ | 137,035 | | $ | 134,822 | | $ | 145,936 | | $ | 153,360 | | $ | 571,153 | |
| Other | | 5,054 | | | 4,836 | | | 5,189 | | | 5,210 | | | 20,289 | | | | 4,935 | | | 3,615 | | | 4,453 | | | 5,354 | | | 18,357 | |
| Enerpac Tool Group | $ | 134,613 | | $ | 136,034 | | $ | 148,568 | | $ | 157,327 | | $ | 576,542 | | | $ | 141,970 | | $ | 138,437 | | $ | 150,389 | | $ | 158,714 | | $ | 589,510 | |
| | | | | | | | | | | | |
| Organic Sales Growth (Decline) % | | | | | | | | | | | |
| Industrial Tools & Services Segment | | | | | | | | 5.8 | % | | 2.8 | % | | 1.8 | % | | 0.8 | % | | 2.7 | % |
| Other | | | | | | | | -2.4 | % | | -25.2 | % | | -14.2 | % | | 2.8 | % | | -9.5 | % |
| Enerpac Tool Group | | | | | | | | 5.5 | % | | 1.8 | % | | 1.2 | % | | 0.9 | % | | 2.2 | % |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Net Sales by Product Line | | | | | | | | | | | |
| Product | $ | 111,002 | | $ | 115,251 | | $ | 129,995 | | $ | 134,379 | | $ | 490,629 | | | $ | 109,856 | | $ | 111,557 | | $ | 122,195 | | $ | 130,395 | | $ | 474,004 | |
| Service | | 28,380 | | | 26,709 | | | 26,258 | | | 26,230 | | | 107,575 | | | | 32,114 | | | 26,880 | | | 28,194 | | | 28,319 | | | 115,506 | |
| Enerpac Tool Group | $ | 139,382 | | $ | 141,960 | | $ | 156,253 | | $ | 160,609 | | $ | 598,204 | | | $ | 141,970 | | $ | 138,437 | | $ | 150,389 | | $ | 158,714 | | $ | 589,510 | |
| | | | | | | | | | | | |
| Adjustment: Fx Impact on Net Sales | | | | | | | | | | | |
| Product | $ | 1,481 | | $ | (90 | ) | $ | (768 | ) | $ | (319 | ) | $ | 304 | | | $ | - | | $ | - | | $ | - | | $ | - | | $ | - | |
| Service | | 781 | | | 384 | | | 21 | | | (415 | ) | | 770 | | | | - | | | - | | | - | | | - | | | - | |
| Enerpac Tool Group | $ | 2,262 | | $ | 294 | | $ | (747 | ) | $ | (734 | ) | $ | 1,075 | | | $ | - | | $ | - | | $ | - | | $ | - | | $ | - | |
| | | | | | | | | | | | |
| Adjustment: Impact from Divestitures or Acquisitions on Net Sales | | | | | | | | |
| Product | | (7,031 | ) | | (6,220 | ) | | (6,938 | ) | | (2,548 | ) | | (22,737 | ) | | | - | | | - | | | - | | | - | | | - | |
| Service | | - | | | - | | | - | | | - | | | - | | | | - | | | - | | | - | | | - | | | - | |
| Enerpac Tool Group | $ | (7,031 | ) | $ | (6,220 | ) | $ | (6,938 | ) | $ | (2,548 | ) | $ | (22,737 | | | $ | - | | $ | - | | $ | - | | $ | - | | $ | - | |
| | | | | | | | | | | | | | | | |
| Organic Sales by Product Line (3) | | | | | | | | | | | | | | | |
| Product | $ | 105,452 | | $ | 108,941 | | $ | 122,289 | | $ | 131,512 | | $ | 468,196 | | | $ | 109,856 | | $ | 111,557 | | $ | 122,195 | | $ | 130,395 | | $ | 474,004 | |
| Service | | 29,161 | | | 27,093 | | | 26,279 | | | 25,815 | | | 108,345 | | | | 32,114 | | | 26,880 | | | 28,194 | | | 28,319 | | | 115,506 | |
| Enerpac Tool Group | $ | 134,613 | | $ | 136,034 | | $ | 148,568 | | $ | 157,327 | | $ | 576,542 | | | $ | 141,970 | | $ | 138,437 | | $ | 150,389 | | $ | 158,714 | | $ | 589,510 | |
| | | | | | | | | | | | |
| Organic Sales Growth (Decline) % | | | | | | | | | | | |
| Product | | | | | | | | 4.2 | % | | 2.4 | % | | -0.1 | % | | -0.8 | % | | 1.2 | % |
| Service | | | | | | | | 10.1 | % | | -0.8 | % | | 7.3 | % | | 9.7 | % | | 6.6 | % |
| Enerpac Tool Group | | | | | | | | 5.5 | % | | 1.8 | % | | 1.2 | % | | 0.9 | % | | 2.2 | % |
| | | | | | | | | | | | |
| (3) Organic Sales (formerly referred to as "core sales") is defined as sales excluding the impact to foreign currency changes and the impact from recent acquisitions and divestitures to net sales. |
| |
| Enerpac Tool Group Corp. |
| Supplemental Unaudited Data |
| Reconciliation of GAAP Measures to Non-GAAP Measures (Continued) |
| (In thousands, except for per share amounts) |
| | Fiscal 2023 | | Fiscal 2024 |
| | Q1 | Q2 | Q3 | Q4 | TOTAL | | Q1 | Q2 | Q3 | Q4 | TOTAL |
| Adjusted Earnings (4) | | | | | | | | | | | |
| Net Earnings | $ | 7,453 | | $ | 4,497 | | $ | 12,380 | | $ | 22,231 | | $ | 46,561 | | | $ | 17,738 | | $ | 17,817 | | $ | 25,778 | | $ | 24,416 | | $ | 85,749 | |
| Earnings (loss) from Discontinued Operations, net of income tax | | 1,044 | | | (2,661 | ) | | (4,596 | ) | | (874 | ) | | (7,088 | ) | | | (567 | ) | | (54 | ) | | 3,157 | | | 1,007 | | | 3,542 | |
| Net Earnings from Continuing Operations | $ | 6,409 | | $ | 7,158 | | $ | 16,976 | | $ | 23,105 | | $ | 53,649 | | | $ | 18,305 | | $ | 17,871 | | $ | 22,621 | | $ | 23,409 | | $ | 82,207 | |
| Impairment & divestiture (benefit) charges | | - | | | - | | | - | | | (6,155 | ) | | (6,155 | ) | | | 147 | | | - | | | - | | | - | | | 147 | |
| Restructuring charges (1) | | 982 | | | 2,987 | | | 2,252 | | | 1,461 | | | 7,681 | | | | 2,401 | | | 398 | | | 1,595 | | | 3,450 | | | 7,843 | |
| Leadership transition charges | | 400 | | | 202 | | | 90 | | | 90 | | | 783 | | | | - | | | - | | | - | | | - | | | - | |
| M&A charges | | - | | | 196 | | | 166 | | | 653 | | | 1,015 | | | | - | | | - | | | - | | | 121 | | | 121 | |
| ASCEND transformation program charges | | 9,419 | | | 11,372 | | | 5,947 | | | 8,681 | | | 35,419 | | | | 1,229 | | | 1,607 | | | 2,042 | | | 2,168 | | | 7,047 | |
| Accelerated debt issuance costs | | 317 | | | - | | | - | | | - | | | 317 | | | | - | | | - | | | - | | | - | | | - | |
| Net tax effect of reconciling items above | | (719 | ) | | (1,652 | ) | | (3,197 | ) | | (4,408 | ) | | (9,976 | ) | | | (411 | ) | | (185 | ) | | (666 | ) | | (1,683 | ) | | (2,945 | ) |
| Other income tax expense | | - | | | 144 | | | - | | | - | | | 144 | | | | - | | | 137 | | | - | | | - | | | 137 | |
| Adjusted Net Earnings from Continuing Operations | $ | 16,808 | | $ | 20,407 | | $ | 22,234 | | $ | 23,427 | | $ | 82,877 | | | $ | 21,671 | | $ | 19,828 | | $ | 25,592 | | $ | 27,465 | | $ | 94,557 | |
| | | | | | | | | | | | |
| Adjusted Diluted Earnings per share (4) | | | | | | | | | | | |
| Net Earnings | $ | 0.13 | | $ | 0.08 | | $ | 0.22 | | $ | 0.40 | | $ | 0.82 | | | $ | 0.32 | | $ | 0.33 | | $ | 0.47 | | $ | 0.44 | | $ | 1.56 | |
| Earnings (loss) from Discontinued Operations, net of income tax | | 0.02 | | | (0.05 | ) | | (0.08 | ) | | (0.02 | ) | | (0.12 | ) | | | (0.01 | ) | | (0.00 | ) | | 0.06 | | | 0.02 | | | 0.06 | |
| Net Earnings from Continuing Operations | $ | 0.11 | | $ | 0.12 | | $ | 0.30 | | $ | 0.41 | | $ | 0.94 | | | $ | 0.33 | | $ | 0.33 | | $ | 0.41 | | $ | 0.43 | | $ | 1.50 | |
| Impairment & divestiture (benefit) charges, net of tax effect | | - | | | - | | | - | | | (0.11 | ) | | (0.11 | ) | | | 0.00 | | | - | | | - | | | - | | | 0.00 | |
| Restructuring charges (1), net of tax effect | | 0.02 | | | 0.05 | | | 0.03 | | | 0.01 | | | 0.11 | | | | 0.04 | | | 0.00 | | | 0.02 | | | 0.04 | | | 0.11 | |
| Leadership transition charges, net of tax effect | | 0.01 | | | 0.00 | | | 0.00 | | | 0.00 | | | 0.01 | | | | - | | | - | | | - | | | - | | | - | |
| M&A charges, net of tax effect | | - | | | 0.00 | | | 0.00 | | | 0.01 | | | 0.01 | | | | - | | | - | | | - | | | 0.00 | | | 0.00 | |
| ASCEND transformation program charges, net of tax effect | | 0.15 | | | 0.17 | | | 0.06 | | | 0.10 | | | 0.48 | | | | 0.02 | | | 0.03 | | | 0.03 | | | 0.03 | | | 0.11 | |
| Accelerated debt issuance costs, net of tax effect | | 0.01 | | | 0.00 | | | 0.00 | | | 0.00 | | | 0.00 | | | | - | | | - | | | - | | | - | | | - | |
| Other income tax expense | | - | | | 0.00 | | | - | | | - | | | - | | | | - | | | 0.00 | | | - | | | - | | | 0.00 | |
| Adjusted Diluted Earnings per share from Continuing Operations | $ | 0.29 | | $ | 0.35 | | $ | 0.39 | | $ | 0.42 | | $ | 1.45 | | | $ | 0.39 | | $ | 0.36 | | $ | 0.47 | | $ | 0.50 | | $ | 1.72 | |
| | | | | | | | | | | | |
| Free Cash Flow | | | | | | | | | | | |
| Cash provided by (used in) operating activities | $ | 17,533 | | $ | (7,756 | ) | $ | 17,254 | | $ | 50,572 | | $ | 77,603 | | | $ | (6,675 | ) | $ | 13,327 | | $ | 30,306 | | $ | 44,361 | | $ | 81,319 | |
| Capital expenditures | | (2,535 | ) | | (2,346 | ) | | (2,915 | ) | | (919 | ) | | (8,715 | ) | | | (1,567 | ) | | (1,585 | ) | | (1,818 | ) | | (6,441 | ) | | (11,411 | ) |
| Free Cash Flow | $ | 14,998 | | $ | (10,102 | ) | $ | 14,339 | | $ | 49,653 | | $ | 68,888 | | | $ | (8,242 | ) | $ | 11,742 | | $ | 28,488 | | $ | 37,920 | | $ | 69,908 | |
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| 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. |
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| 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. |
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| Enerpac Tool Group Corp. | | |
| Supplemental Unaudited Data | | |
| Reconciliation of GAAP To Non-GAAP Guidance | | |
| (In millions) | | |
| | Fiscal 2025 |
| | Low | High |
| Reconciliation of Continued 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 | |
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| 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 Guidance | $ | 85 | | $ | 95 | |
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| Notes continued: | | |
| (5) Management does not provide guidance on GAAP financial measures as we are unable to predict and estimate with certainty items such as potential impairments, refinancing costs, business divestiture gains/losses, discrete tax adjustments, or other items impacting GAAP financial metrics. As a result, we have included above only those items about which we are aware and are reasonably likely to occur during the guidance period covered. |
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