Actuant Reports First Quarter Results

Wed Dec 19, 2012 8:00am EST

* Reuters is not responsible for the content in this press release.

http://pdf.reuters.com/htmlnews/8knews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20121219:nBw195737a

http://www.businesswire.com/news/home/20121219005737/en

MILWAUKEE--(Business Wire)--
Actuant Corporation (NYSE: ATU) today announced results for its first quarter
ended November 30, 2012. 

Highlights

* Total sales declined 4% compared to the prior year with acquisitions
contributing 4%, the weaker Euro a 1% headwind, and core sales down 7%. 
* Diluted earnings per share ("EPS") were $0.49, a 2% reduction compared to the
prior year. 
* Operating profit margins were 13.6%, a 100 basis point reduction from the
prior year due primarily to the impact of lower volumes, most notably in the
Engineered Solutions segment. 
* Repurchased 0.3 million shares of common stock for $7 million in the quarter. 
* Introduced second quarter EPS guidance in the range of $0.34-0.38 per share.

Robert C. Arzbaecher, Chairman and CEO of Actuant commented, "Actuant`s first
quarter results reflect our customers` cautious approaches to spending and
managing inventory levels in light of economic uncertainty. Despite the benefit
of prior year acquisitions and continued core growth in both the Industrial and
Energy segments, overall revenue declined. This was primarily the result of
significant customer production declines across various OEM markets such as
heavy-duty truck and off-highway equipment to reduce inventories, as well as
weak solar sales in the Electrical segment. During the past ninety days, we
initiated both temporary and structural cost reduction actions to allow us to
continue to invest in long-term growth while protecting earnings in the current
weak environment." 

Consolidated Results

Consolidated sales for the first quarter were $377 million, 4% lower than the
$393 million in the comparable prior year quarter. Core sales declined 7%; the
weaker Euro reduced sales 1% while acquisitions contributed 4% to total sales.
Fiscal 2013 first quarter net earnings and EPS were $36.3 million, or $0.49 per
share, compared to $37.2 million and $0.50, respectively, in the comparable
prior year quarter. 

Segment Results

Industrial Segment 
(US $ in millions)

                           Three Months Ended         
                           November 30,               
                           2012              2011     
 Sales                     $101.1            $100.3   
 Operating Profit          $27.0             $27.9    
 Operating Profit %        26.7%             27.9%    
                                                      


First quarter fiscal 2013 Industrial segment sales were $101 million, 1% higher
than the prior year. Excluding the 1% negative impact of foreign currency rate
changes, core sales increased 2% driven by higher global Integrated Solutions
activity and steady industrial demand in most regions outside of Western Europe.
First quarter operating profit margin of 26.7% was in line with expectations as
the benefit of higher volumes was more than offset by unfavorable mix and
incremental Growth + Innovation (G+I) investments. 

Energy Segment 
(US $ in millions)

                           Three Months Ended         
                           November 30,               
                           2012              2011     
 Sales                     $90.8             $80.4    
 Operating Profit          $15.4             $13.2    
 Operating Profit %        17.0%             16.4%    
                                                      


Fiscal 2013 first quarter year-over-year Energy segment sales increased 13% to
$91 million. Excluding the 9% impact from acquisitions, core sales increased 4%
from the prior year`s strong levels. Hydratight experienced double digit core
sales growth on the strength of continued robust maintenance spending in oil &
gas, power generation, and other energy markets. Cortland core sales were down
from the prior year, but are expected to rebound given the high order intake in
the first quarter. Quoting activity and relatively stable energy prices continue
to support demand across the Energy segment`s served markets. First quarter
operating profit margin increased 60 basis points from the prior year due
primarily to favorable mix and volume leverage. 

Electrical Segment 
(US $ in millions)

                           Three Months Ended         
                           November 30,               
                           2012              2011     
 Sales                     $69.4             $82.8    
 Operating Profit          $7.8              $5.0     
 Operating Profit %        11.3%             6.0%     
                                                      


Electrical segment fiscal 2013 first quarter sales were $69 million, 16% lower
than the comparable prior year quarter. The 16% core sales decrease reflected
significantly lower solar inverter shipments compared to the prior year due to
the combination of weak current year demand and aggressive sales promotions in
the prior year. In addition, the impact of channel inventory reductions across
the segment`s served North American markets, and lower industrial transformer
demand contributed to the sales decline. First quarter operating profit margin
increased 530 basis points from the prior year due to the benefit of prior year
restructuring actions, as well as a fire related insurance recovery at
Mastervolt. 

Engineered Solutions Segment 
(US $ in millions)

                           Three Months Ended         
                           November 30,               
                           2012              2011     
 Sales                     $115.9            $129.3   
 Operating Profit          $7.6              $19.0    
 Operating Profit %        6.6%              14.7%    
                                                      


First quarter fiscal 2013 Engineered Solutions segment sales decreased 10% from
the prior year to $116 million. Excluding the 8% impact from acquisitions and
negative 1% impact from the weaker Euro, core sales declined 17%. First quarter
sales reflect significantly lower OEM production levels for heavy-duty trucks,
off-highway equipment and convertible autos, in part to reduce inventory levels.
Demand in the global agriculture market moderated, partially reflecting the US
drought impact on aftermarket sales. First quarter operating profit margin
declined due to the lower volumes and restructuring actions taken in the
segment. 

Corporate and Income Taxes

Corporate expenses for the first quarter of fiscal 2013 were $6.5 million, $1.3
million below the comparable prior year period due primarily to lower incentive
compensation. The effective income tax rate for the quarter was lower than the
prior year due to the execution of certain tax reduction initiatives. 

Financial Position

Net debt at November 30, 2012 was $328 million (total debt of $396 million less
$68 million of cash), essentially unchanged from fiscal year end. Actuant`s
first quarter cash flow was impacted by the payment of fiscal 2012 incentive
compensation and 401(k) company contributions, as well as an increase in primary
working capital. Additionally, the Company deployed approximately $7 million for
the repurchase of 0.3 million shares of common stock. At November 30, 2012, the
Company had a net debt to EBITDA leverage ratio of 1.2, and its entire $600
million revolver available. 

Outlook

Arzbaecher continued, "The economic picture remains cloudy as we start the
second quarter of fiscal 2013. Our customers remain cautious with ordering
patterns, and most OEMs are continuing to reduce inventory by ordering at a
slower pace than their end market sell-through levels. Although these conditions
make organic growth more challenging in the near-term, we remain focused on
investing for long-term growth through both G+I and acquisitions, as well as
managing our costs and maintaining a strong balance sheet. 

While we are seeing indications that market conditions are firming up in some
areas, volatility and uncertainty also persist. At this point, our full year EPS
guidance remains unchanged, yet we believe that the probability of attaining the
high end of the range is low if current economic conditions and uncertainty
continue. We expect fiscal 2013 sales to be approximately $1.600-1.625 billion,
with core sales for the year down 1-3%. 

We expect second quarter fiscal 2013 sales in the $360-370 million range and EPS
of $0.34-0.38. The second quarter historically represents the seasonally weakest
quarter of the fiscal year, and we expect to see the continued impact of
economic uncertainty including customer inventory reductions, most notably in
the Engineered Solutions segment. However, we are forecasting year-over-year
sales growth in both the Industrial and Energy segments. 

Consistent with our normal practice, the guidance excludes the impact of any
future acquisitions and share repurchases. With our projected $200 million of
fiscal 2013 free cash flow and strong capital structure, we are well positioned
financially to fund both growth investments and opportunistic share buy-backs. 

In summary, we continue to expect a challenging first half of fiscal 2013,
followed by modest growth in the second half of the year. We remain confident in
the fundamental strength of the Actuant businesses, have the right long-term
growth strategies in place, and the operating experience to manage through the
current environment." 

Conference Call Information

An investor conference call is scheduled for 10 am CT today, December 19, 2012.
Webcast information and conference call materials will be made available on the
Actuant company website (www.actuant.com) prior to the start of the call. 

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. Actuant`s results are
also subject to general economic conditions, variation in demand from customers,
the impact of geopolitical activity on the economy, continued market acceptance
of the Company`s new product introductions, the successful integration of
acquisitions, restructuring, operating margin risk due to competitive pricing
and operating efficiencies, supply chain risk, material and labor cost
increases, foreign currency fluctuations and interest rate risk. See the
Company`s Form 10-K filed with the Securities and Exchange Commission for
further information regarding risk factors. Actuant disclaims any obligation to
publicly update or revise any forward-looking statements as a result of new
information, future events or any other reason. 

About Actuant Corporation

Actuant Corporation is a diversified industrial company serving customers from
operations in more than 30 countries. The Actuant businesses are leaders in a
broad array of niche markets including branded hydraulic and electrical tools
and supplies; specialized products and services for energy markets and highly
engineered position and motion control systems. The Company was founded in 1910
and is headquartered in Menomonee Falls, Wisconsin. Actuant trades on the NYSE
under the symbol ATU. For further information on Actuant and its businesses,
visit the Company's website at www.actuant.com. 

(tables follow)

                                                                                                                         
                                                                                                                         
                                                                                                                         
 Actuant Corporation                                                                                                     
 Condensed Consolidated Balance Sheets                                                                                   
 (Dollars in thousands)                                                                                                  
 (Unaudited)                                                                                                             
                                                                                                                         
                                                                      November 30,                August 31,             
                                                                      2012                        2012                   
                                                                                                                         
 ASSETS                                                                                                                  
 Current assets                                                                                                          
                  Cash and cash equivalents                           $      68,311               $     68,184           
                  Accounts receivable, net                                   232,267                    234,756          
                  Inventories, net                                           225,084                    211,690          
                  Deferred income taxes                                      22,785                     22,583           
                  Other current assets                                       30,121                     24,068           
                                       Total current assets                  578,568                    561,281          
                                                                                                                         
 Property, plant and equipment, net                                          117,759                    115,884          
 Goodwill                                                                    871,698                    866,412          
 Other intangible assets, net                                                440,188                    445,884          
 Other long-term assets                                                      17,243                     17,658           
                                                                                                                         
                                       Total assets                   $      2,025,456            $     2,007,119        
                                                                                                                         
                                                                                                                         
 LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                    
 Current liabilities                                                                                                     
                  Trade accounts payable                              $      164,665              $     174,746          
                  Accrued compensation and benefits                          43,696                     58,817           
                  Current maturities of debt                                 8,750                      7,500            
                  Income taxes payable                                       5,982                      5,778            
                  Other current liabilities                                  66,754                     72,165           
                                       Total current liabilities             289,847                    319,006          
                                                                                                                         
 Long-term debt                                                              387,500                    390,000          
 Deferred income taxes                                                       129,951                    132,653          
 Pension and postretirement benefit accruals                                 26,233                     26,442           
 Other long-term liabilities                                                 89,927                     87,182           
                                                                                                                         
 Shareholders' equity                                                                                                    
                  Capital stock                                              15,158                     15,102           
                  Additional paid-in capital                                 16,450                     7,725            
                  Treasury stock                                             (70,225    )               (63,083    )     
                  Retained earnings                                          1,197,912                  1,161,564        
                  Accumulated other comprehensive loss                       (57,297    )               (69,472    )     
                  Stock held in trust                                        (2,340     )               (2,689     )     
                  Deferred compensation liability                            2,340                      2,689            
                                       Total shareholders' equity            1,101,998                  1,051,836        
                                                                                                                         
 Total liabilities and shareholders' equity                           $      2,025,456            $     2,007,119        
                                                                                                                         
                                                                                                                         
                                                                                                                         


 Actuant Corporation                                                                                        
 Condensed Consolidated Statements of Earnings                                                              
 (Dollars in thousands except per share amounts)                                                            
 (Unaudited)                                                                                                
                                                                                                            
                                                                                                            
                                                                  Three Months Ended                        
                                                                  November 30,            November 30,      
                                                                  2012                    2011              
                                                                                                            
 Net sales                                                        $        377,248        $        392,799  
 Cost of products sold                                                     230,262                 240,191  
                            Gross profit                                   146,986                 152,608  
                                                                                                            
 Selling, administrative and engineering expenses                          87,830                  88,109   
 Amortization of intangible assets                                         7,854                   7,218    
                            Operating profit                               51,302                  57,281   
                                                                                                            
 Financing costs, net                                                      6,322                   8,222    
 Other expense, net                                                        364                     657      
                            Earnings before income tax expense             44,616                  48,402   
                                                                                                            
 Income tax expense                                                        8,273                   11,228   
 Net earnings                                                     $        36,343         $        37,174   
                                                                                                            
 Earnings per share                                                                                         
                            Basic                                 $        0.50           $        0.54     
                            Diluted                                        0.49                    0.50     
                                                                                                            
 Weighted average common shares outstanding                                                                 
                            Basic                                          72,791                  68,421   
                            Diluted                                        74,271                  75,142   
                                                                                                            
                                                                                                            
                                                                                                            


 Actuant Corporation                                                                                                 
 Condensed Consolidated Statements of Cash Flows                                                                     
 (In thousands)                                                                                                      
 (Unaudited)                                                                                                         
                                                                                                                     
                                                                                                                     
                                                                  Three Months Ended                                 
                                                                  November 30,                November 30,           
                                                                  2012                        2011                   
                                                                                                                     
 Operating Activities                                                                                                
 Net earnings                                                     $      36,343               $      37,174          
 Adjustments to reconcile net earnings to net cash provided by                                                       
 operating activities:                                                                                               
 Depreciation and amortization                                           14,449                      13,540          
 Stock-based compensation expense                                        3,477                       3,543           
 Benefit for deferred income taxes                                       (3,156   )                  (950     )      
 Amortization of debt discount and debt issuance costs                   496                         497             
 Other non-cash adjustments                                              (177     )                  58              
 Changes in components of working capital and other:                                                                 
 Accounts receivable                                                     4,539                       (9,597   )      
 Inventories                                                             (11,318  )                  (2,595   )      
 Prepaid expenses and other assets                                       (6,143   )                  (825     )      
 Trade accounts payable                                                  (11,548  )                  (2,886   )      
 Income taxes payable                                                    1,161                       1,216           
 Accrued compensation and benefits                                       (13,953  )                  (19,169  )      
 Other accrued liabilities                                               (1,895   )                  469             
 Net cash provided by operating activities                               12,275                      20,475          
                                                                                                                     
 Investing Activities                                                                                                
 Proceeds from sale of property, plant and equipment                     977                         5,918           
 Capital expenditures                                                    (7,689   )                  (5,595   )      
 Business acquisitions, net of cash acquired                             (83      )                  (290     )      
 Net cash provided by (used in) investing activities                     (6,795   )                  33              
                                                                                                                     
 Financing Activities                                                                                                
 Net borrowings on revolving credit facilities and other debt            -                           4,809           
 Principal repayments on term loan                                       (1,250   )                  -               
 Purchase of treasury shares                                             (7,142   )                  (20,410  )      
 Stock option exercises and related tax benefits                         5,473                       2,782           
 Cash dividend                                                           (2,911   )                  (2,748   )      
 Net cash used in financing activities                                   (5,830   )                  (15,567  )      
                                                                                                                     
 Effect of exchange rate changes on cash                                 477                         (1,043   )      
 Net increase in cash and cash equivalents                               127                         3,898           
 Cash and cash equivalents - beginning of period                         68,184                      44,221          
 Cash and cash equivalents - end of period                        $      68,311               $      48,119          
                                                                                                                     
                                                                                                                     
                                                                                                                     


 ACTUANT CORPORATION                                                                                                                                                                                                                                           
 SUPPLEMENTAL UNAUDITED DATA                                                                                                                                                                                                                                   
           (Dollars in thousands)                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                               
                                                                                          FISCAL 2012                                                                                      FISCAL 2013                                                         
                                                                                          Q1                Q2                Q3                Q4                TOTAL                    Q1                   Q2        Q3        Q4        TOTAL            
 SALES                                                                                                                                                                                                                                                         
           INDUSTRIAL SEGMENT                                                             $  100,253        $  98,342         $  110,102        $  110,598        $   419,295              $  101,122                                         $   101,122      
           ENERGY SEGMENT                                                                    80,421            78,937            96,399            93,406             349,163                 90,769                                              90,769       
           ELECTRICAL SEGMENT                                                                82,833            77,105            85,947            82,936             328,821                 69,439                                              69,439       
           ENGINEERED SOLUTIONS SEGMENT                                                      129,292           123,640           136,767           118,364            508,063                 115,918                                             115,918      
                            TOTAL                                                         $  392,799        $  378,024        $  429,215        $  405,304        $   1,605,342            $  377,248                                         $   377,248      
                                                                                                                                                                                                                                                               
 % SALES GROWTH                                                                                                                                                                                                                                                
           INDUSTRIAL SEGMENT                                                                15       %        11       %        2        %        2        %         7          %            1        %                                          1        %   
           ENERGY SEGMENT                                                                    14       %        28       %        24       %        13       %         19         %            13       %                                          13       %   
           ELECTRICAL SEGMENT                                                                50       %        10       %        7        %        4        %         15         %            -16      %                                          -16      %   
           ENGINEERED SOLUTIONS SEGMENT                                                      23       %        12       %        8        %        -10      %         7          %            -10      %                                          -10      %   
                            TOTAL                                                            23       %        14       %        9        %        0        %         11         %            -4       %                                          -4       %   
                                                                                                                                                                                                                                                               
 OPERATING PROFIT (LOSS)                                                                                                                                                                                                                                       
           INDUSTRIAL SEGMENT                                                             $  27,933         $  26,690         $  30,681         $  29,473         $   114,777              $  27,006                                          $   27,006       
           ENERGY SEGMENT                                                                    13,217            11,632            18,515            18,841             62,205                  15,387                                              15,387       
           ELECTRICAL SEGMENT                                                                4,977             5,801             8,814             8,300              27,892                  7,828                                               7,828        
           ENGINEERED SOLUTIONS SEGMENT                                                      18,999            13,281            18,467            10,104             60,851                  7,625                                               7,625        
           CORPORATE / GENERAL                                                               (7,845   )        (7,948   )        (8,813   )        (8,713   )         (33,319    )            (6,544   )                                          (6,544   )   
                            TOTAL - EXCLUDING IMPAIRMENT CHARGE                           $  57,281         $  49,456         $  67,664         $  58,005         $   232,406              $  51,302                                          $   51,302       
           IMPAIRMENT CHARGE                                                                 -                 -                 -                 (62,464  )         (62,464    )            -                                                   -            
                            TOTAL                                                         $  57,281         $  49,456         $  67,664         $  (4,459   )     $   169,942              $  51,302                                          $   51,302       
                                                                                                                                                                                                                                                               
 OPERATING PROFIT %                                                                                                                                                                                                                                            
           INDUSTRIAL SEGMENT                                                                27.9     %        27.1     %        27.9     %        26.6     %         27.4       %            26.7     %                                          26.7     %   
           ENERGY SEGMENT                                                                    16.4     %        14.7     %        19.2     %        20.2     %         17.8       %            17.0     %                                          17.0     %   
           ELECTRICAL SEGMENT                                                                6.0      %        7.5      %        10.3     %        10.0     %         8.5        %            11.3     %                                          11.3     %   
           ENGINEERED SOLUTIONS SEGMENT                                                      14.7     %        10.7     %        13.5     %        8.5      %         12.0       %            6.6      %                                          6.6      %   
                                                                                                                                                                                                                                                               
                            TOTAL (INCLUDING CORPORATE) - EXCLUDING IMPAIRMENT CHARGE        14.6     %        13.1     %        15.8     %        14.3     %         14.5       %            13.6     %                                          13.6     %   
                                                                                                                                                                                                                                                               
 EBITDA                                                                                                                                                                                                                                                        
           INDUSTRIAL SEGMENT                                                             $  29,220         $  29,116         $  32,070         $  31,774         $   122,180              $  29,033                                          $   29,033       
           ENERGY SEGMENT                                                                    18,243            15,601            22,216            23,166             79,226                  19,694                                              19,694       
           ELECTRICAL SEGMENT                                                                7,705             8,697             11,444            10,969             38,815                  10,806                                              10,806       
           ENGINEERED SOLUTIONS SEGMENT                                                      22,213            16,762            21,418            13,991             74,384                  12,047                                              12,047       
           CORPORATE / GENERAL                                                               (7,217   )        (7,479   )        (8,506   )        (7,972   )         (31,174    )            (6,195   )                                          (6,195   )   
                            TOTAL - EXCLUDING IMPAIRMENT CHARGE                           $  70,164         $  62,697         $  78,642         $  71,928         $   283,431              $  65,385                                          $   65,385       
           IMPAIRMENT CHARGE                                                                 -                 -                 -                 (62,464  )         (62,464    )            -                                                   -            
                            TOTAL                                                         $  70,164         $  62,697         $  78,642         $  9,464          $   220,967              $  65,385                                          $   65,385       
                                                                                                                                                                                                                                                               
 EBITDA %                                                                                                                                                                                                                                                      
           INDUSTRIAL SEGMENT                                                                29.1     %        29.6     %        29.1     %        28.7     %         29.1       %            28.7     %                                          28.7     %   
           ENERGY SEGMENT                                                                    22.7     %        19.8     %        23.0     %        24.8     %         22.7       %            21.7     %                                          21.7     %   
           ELECTRICAL SEGMENT                                                                9.3      %        11.3     %        13.3     %        13.2     %         11.8       %            15.6     %                                          15.6     %   
           ENGINEERED SOLUTIONS SEGMENT                                                      17.2     %        13.6     %        15.7     %        11.8     %         14.6       %            10.4     %                                          10.4     %   
                                                                                                                                                                                                                                                               
                            TOTAL (INCLUDING CORPORATE) - EXCLUDING IMPAIRMENT CHARGE        17.9     %        16.6     %        18.3     %        17.7     %         17.7       %            17.3     %                                          17.3     %   
                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                                               


 ACTUANT CORPORATION                                                                                                                                                                                                                                           
 SUPPLEMENTAL UNAUDITED DATA                                                                                                                                                                                                                                   
 RECONCILIATION OF GAAP MEASURE TO NON-GAAP MEASURES                                                                                                                                                                                                           
              (Dollars in thousands, except for per share amounts)                                                                                                                                                                                             
                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                                               
                                                                                               FISCAL 2012                                                                                FISCAL 2013                                                          
                                                                                               Q1              Q2              Q3              Q4                   TOTAL                 Q1                  Q2          Q3          Q4          TOTAL        
 EARNINGS (LOSS) BEFORE SPECIAL ITEMS (1)                                                                                                                                                                                                                      
              NET EARNINGS (LOSS)                                                              $   37,174      $   32,175      $   34,401      $   (16,460  )       $    87,290           $   36,343                                              $    36,343  
              DEBT REFINANCING CHARGES, NET OF INCOME TAX                                          -               -               10,482          -                     10,482               -                                                        -       
              IMPAIRMENT CHARGE, NET OF INCOME TAX                                                 -               -               -               57,088                57,088               -                                                        -       
                               TOTAL                                                           $   37,174      $   32,175      $   44,883      $   40,628           $    154,860          $   36,343                                              $    36,343  
                                                                                                                                                                                                                                                               
 DILUTED EARNINGS (LOSS) PER SHARE, BEFORE                                                                                                                                                                                                                     
 SPECIAL ITEMS (1)(3)                                                                                                                                                                                                                                          
              NET EARNINGS (LOSS)                                                              $   0.50        $   0.43        $   0.45        $   (0.23    )       $    1.17             $   0.49                                                $    0.49    
              DEBT REFINANCING CHARGES, NET OF INCOME TAX                                          -               -               0.15            -                     0.15                 -                                                        -       
              IMPAIRMENT CHARGE, NET OF INCOME TAX                                                 -               -               -               0.77                  0.76                 -                                                        -       
                               TOTAL                                                           $   0.50        $   0.43        $   0.60        $   0.55             $    2.08             $   0.49                                                $    0.49    
                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                                               
 EBITDA (2)                                                                                                                                                                                                                                                    
              NET EARNINGS (LOSS) (GAAP MEASURE)                                               $   37,174      $   32,175      $   34,401      $   (16,460  )       $    87,290           $   36,343                                              $    36,343  
              FINANCING COSTS, NET                                                                 8,222           7,821           24,066          6,281                 46,390               6,322                                                    6,322   
              INCOME TAX EXPENSE                                                                   11,228          9,631           6,593           5,572                 33,024               8,273                                                    8,273   
              DEPRECIATION & AMORTIZATION                                                          13,540          13,070          13,582          14,071                54,263               14,447                                                   14,447  
              EBITDA (NON-GAAP MEASURE)                                                        $   70,164      $   62,697      $   78,642      $   9,464            $    220,967          $   65,385                                              $    65,385  
              IMPAIRMENT CHARGE                                                                    -               -               -               62,464                62,464               -                                                        -       
                               EBITDA (NON-GAAP MEASURE) - EXCLUDING IMPAIRMENT CHARGE         $   70,164      $   62,697      $   78,642      $   71,928           $    283,431          $   65,385                                              $    65,385  
                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                                               


 FOOTNOTES                                                                                                                                                                           
                                                                                                                                                                                     
 NOTE:     The total of the individual quarters may not equal the annual total due to rounding.                                                                                      
                                                                                                                                                                                     
 (1)       Earnings (loss) and diluted earnings (loss) per share, excluding special items (debt refinancing charges and impairment charge), represent net earnings (loss) and diluted 
           earnings (loss) per share per the Condensed Consolidated Statements of Earnings net of charges or credits for items to be highlighted for comparability purposes. These   
           measures should not be considered as an alternative to net earnings (loss) or diluted earnings (loss) per share 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 Actuant companies. The total of the individual   
           components may not equal due to rounding.                                                                                                                                 
                                                                                                                                                                                     
 (2)       EBITDA represents net earnings (loss) before financing costs, net, income tax expense, and depreciation & amortization. EBITDA is not a calculation based upon generally  
           accepted accounting principles (GAAP). The amounts included in the EBITDA calculation, however, are derived from amounts included in the Condensed Consolidated Statements 
           of Earnings data. EBITDA should not be considered as an alternative to net earnings or operating profit as an indicator of the Company's operating performance, or as an  
           alternative to operating cash flows as a measure of liquidity. Actuant has presented EBITDA because it regularly reviews this as a measure of the Company's ability to    
           incur and service debt. In addition, EBITDA is used by many of our investors and lenders, and is presented as a convenience to them. However, the EBITDA measure presented 
           may not always be comparable to similarly titled measures reported by other companies due to differences in the components of the calculation.                            
                                                                                                                                                                                     
 (3)       Due to the net loss for the fourth quarter of fiscal 2012, the basic weighted average common shares are used to calculate both basic and diluted loss per share for the   
           fourth quarter of fiscal 2012 to avoid anti-dilution. Per share results for net earnings (loss) (GAAP measure) was calculated using 72,846 shares outstanding. When       
           excluding the impairment charge from net earnings (loss), the result is net earnings (not a net loss) which requires a diluted basis for calculated EPS. For this reason, 
           the per share results for the impairment charge and total diluted earnings (non-GAAP measure) were calculated using 74,158 shares outstanding for the fourth quarter of   
           fiscal 2012. Due to the difference in shares outstanding being used, the per share results do not add for the fourth quarter of fiscal 2012.                              


Actuant Corporation
Karen Bauer
Communications & Investor Relations Leader
262-293-1562 



Copyright Business Wire 2012