Actuant Reports Second Quarter Results

Wed Mar 20, 2013 8:00am EDT

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MILWAUKEE--(Business Wire)--
Actuant Corporation (NYSE: ATU) today announced results for its second quarter
ended February 28, 2013. 

Highlights

* Delivered second quarter sales and earnings at the high end of the guidance
ranges. 
* Total sales were $370 million, down 2% year-over-year with acquisitions
contributing 4% and core sales declining 6%. 
* Diluted earnings per share ("EPS") of $0.38, 12% lower than the comparable
prior year period. 
* Operating profit margins were 11.3%, a 180 basis point reduction from the
prior year due primarily to the impact of lower sales and production levels. 
* Revised full year sales and EPS guidance to $1.575-1.600 billion and
$2.15-2.25, respectively.

Robert C. Arzbaecher, Chairman and CEO of Actuant commented, "We delivered
results for the second quarter at the high end of our sales and EPS guidance.
During the normally seasonally weak quarter, we experienced generally subdued
activity in the global industrial markets reflecting both cautious spending and
continued destocking initiatives by OEM customers. While economic conditions
remain weak in most end markets and regions, we have kept our organization agile
and are anticipating both seasonal and core growth in the second half of the
fiscal year. I want to thank our global team for their solid execution in the
quarter." 

Consolidated Results

Consolidated sales for the second quarter were $370 million, 2% lower than the
comparable prior year quarter. Core sales declined 6% with acquisitions
contributing 4% and the consolidated impact of foreign exchange negligible.
Fiscal 2013 second quarter net earnings were $28.4 million compared to $32.2
million in the comparable prior year quarter. EPS of $0.38 in the second quarter
of fiscal 2013 was 12% lower than the $0.43 in the comparable prior year
quarter. 

Sales for the six months ended February 28, 2013 were $748 million, 3% below the
$771 million in the comparable prior year period. Excluding the 4% impact of
acquisitions, year-to-date core sales declined 7%. Earnings and EPS for the six
months ended February 28, 2013 were $64.8 million, or $0.87 per diluted share,
compared to $69.3 million, or $0.94 per diluted share for the comparable prior
year period.

 Segment Results                                                                                  
                                                                                                  
 Industrial Segment                                                                               
 (US $ in millions)                                                                               
                                                                                                  
                       Three Months Ended                     Six Months Ended                    
                       February 28,           February 29,    February 28,          February 29,  
                       2013                   2012            2013                  2012          
 Sales                 $99.0                  $98.3           $200.1                $198.6        
 Operating Profit      $26.4                  $26.7           $53.4                 $54.6         
 Operating Profit %    26.6%                  27.1%           26.7%                 27.5%         
                                                                                                  


Second quarter fiscal 2013 Industrial segment sales were $99 million, 1% higher
than the prior year. Despite the difficult prior year comparison, core sales
increased 1% driven by higher global Integrated Solutions activity. North
America and the AsiaPac region saw the strongest growth, with year-over-year
core sales declines in Europe and China. Second quarter operating profit margin
of 26.6% was in line with expectations and modestly lower than the prior year
due to unfavorable mix.

 Energy Segment                                                                                   
 (US $ in millions)                                                                               
                                                                                                  
                       Three Months Ended                     Six Months Ended                    
                       February 28,           February 29,    February 28,          February 29,  
                       2013                   2012            2013                  2012          
 Sales                 $80.8                  $78.9           $171.6                $159.4        
 Operating Profit      $9.7                   $11.6           $25.1                 $24.8         
 Operating Profit %    12.0%                  14.7%           14.6%                 15.6%         
                                                                                                  


Fiscal 2013 second quarter year-over-year Energy segment sales increased 2% to
$81 million. Excluding the 3% impact from acquisitions, core sales declined 1%
from the prior year`s robust levels. Hydratight`s core sales increased during
the quarter reflecting solid MRO spending in oil & gas, partially offset by
difficult comparisons to last year`s strong North American nuclear maintenance
activity. Cortland had a core sales decline which was primarily due to lower
activity in non-energy markets such as defense, as well as modest push-outs of
energy related business. Second quarter operating profit declined despite the
modest growth in revenue due to an approximate $2.5 million earn-out reserve
reduction in the prior year.

 Electrical Segment                                                                               
 (US $ in millions)                                                                               
                                                                                                  
                       Three Months Ended                     Six Months Ended                    
                       February 28,           February 29,    February 28,          February 29,  
                       2013                   2012            2013                  2012          
 Sales                 $69.9                  $77.1           $139.3                $159.9        
 Operating Profit      $5.1                   $5.8            $12.9                 $10.8         
 Operating Profit %    7.3%                   7.5%            9.3%                  6.7%          
                                                                                                  


Electrical segment fiscal 2013 second quarter sales were $70 million, 9% lower
than the comparable prior year quarter. Similar to the first quarter, the core
sales decline was primarily attributable to lower solar inverter shipments and
industrial transformer demand. The marine and internet markets generated modest
core sales increases in the quarter. Second quarter operating profit margin was
essentially unchanged from the prior year despite the impact of lower volumes,
due to favorable mix and the net benefit of restructuring actions.

 Engineered Solutions Segment                                                                     
 (US $ in millions)                                                                               
                                                                                                  
                       Three Months Ended                     Six Months Ended                    
                       February 28,           February 29,    February 28,          February 29,  
                       2013                   2012            2013                  2012          
 Sales                 $120.7                 $123.6          $236.6                $252.9        
 Operating Profit      $8.3                   $13.3           $15.9                 $32.3         
 Operating Profit %    6.9%                   10.7%           6.7%                  12.8%         
                                                                                                  


Second quarter fiscal 2013 Engineered Solutions segment sales decreased 2% from
the prior year to $121 million. Excluding the 10% benefit from acquisitions,
year-over-year core sales declined 12%, a sequential improvement from the 17%
decline last quarter. Second quarter sales continued to be impacted by OEM
destocking in the heavy-duty truck, off-highway equipment and auto markets.
Demand in the global agriculture market was flat with the prior year. Second
quarter operating profit margin declined year-over-year, but was up
sequentially. The impact of lower volumes was partially offset by the benefit of
cost reduction actions taken in the segment. 

Corporate and Income Taxes

Corporate expenses for the second quarter of fiscal 2013 were $7.4 million, $0.5
million below the comparable prior year period due primarily to lower incentive
compensation provisions. The effective income tax rate for the quarter was lower
than the prior year, but up sequentially, reflecting the extension of the US R&D
tax credit, the impact of a reduced statutory tax rate on a deferred tax
liability balance, as well as tax planning benefits. 

Financial Position

Net debt at February 28, 2013 was $304 million (total debt of $395 million less
$91 million of cash); approximately $24 million below the prior quarter end and
the lowest level in the past five years. Essentially all of Actuant`s second
quarter cash flow was used to reduce net debt. Common stock repurchases during
the quarter amounted to fewer than 0.1 million shares, or approximately $2
million. At February 28, 2013, the Company had a net debt to EBITDA leverage
ratio of 1.1, and its entire $600 million revolver available. 

Outlook

Commenting on Actuant`s outlook, Arzbaecher stated, "When we initially provided
our fiscal 2013 guidance, we expected that our first half results would be lower
than the prior year, with growth resuming in the back half. Now at the mid-point
of the year, we believe we are at this inflection point with the most difficult
comparisons behind us. We are seeing indications that market conditions have
bottomed and are firming up in some areas, yet inconsistency and uncertainty
also persist. As a result, we expect the demand improvement curve to be less
steep and modestly pushed out further in calendar 2013 compared to our original
expectations. 

Given the current economic environment, our first half performance, and the
divestiture of an approximate $7 million product line last week, we have
modestly adjusted our full year sales and EPS guidance to $1.575-1.600 billion
and $2.15- 2.25, respectively. We now expect full year core sales to decline 3
to 5% from the previous negative 1 to 3%. We also expect headwind from the
weaker British Pound. Despite modestly weaker than anticipated core sales
growth, we expect to continue to be able to manage costs effectively and deliver
EPS growth in line with expectations. We are still targeting full year free cash
flow of approximately $200 million, but recognize it will be more of a challenge
than previously anticipated. 

We expect third quarter sales to be in the $410-420 million range. EPS is
expected to be in the $0.63-0.68 range compared to $0.60 in the prior year, with
continued cost reduction actions and a lower than full year average income tax
rate incorporated into the guidance. 

Consistent with past practice, all guidance excludes the impact of potential
future acquisitions and share repurchases." 

Arzbaecher concluded, "We remain focused on investing for long-term growth
through Growth + Innovation and acquisitions, while managing costs to drive full
year earnings improvement. Actuant is committed to maximizing results and
maintaining a strong balance sheet to deliver increased shareholder value." 

Conference Call Information

An investor conference call is scheduled for 10am CDT today, March 20, 2013.
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)                                                                                          
                                                                                                      
                                                  February 28,                 August 31,             
                                                  2013                         2012                   
                                                                                                      
 ASSETS                                                                                               
 Current assets                                                                                       
 Cash and cash equivalents                        $      90,823                $     68,184           
 Accounts receivable, net                                238,601                     234,756          
 Inventories, net                                        217,540                     211,690          
 Deferred income taxes                                   23,604                      22,583           
 Other current assets                                    24,862                      24,068           
 Total current assets                                    595,430                     561,281          
                                                                                                      
 Property, plant and equipment, net                      114,124                     115,884          
 Goodwill                                                866,685                     866,412          
 Other intangible assets, net                            430,827                     445,884          
 Other long-term assets                                  16,765                      17,658           
                                                                                                      
 Total assets                                     $      2,023,831             $     2,007,119        
                                                                                                      
                                                                                                      
 LIABILITIES AND SHAREHOLDERS' EQUITY                                                                 
 Current liabilities                                                                                  
 Trade accounts payable                           $      153,814               $     174,746          
 Accrued compensation and benefits                       45,297                      58,817           
 Current maturities of debt                              10,000                      7,500            
 Income taxes payable                                    2,852                       5,778            
 Other current liabilities                               58,566                      72,165           
 Total current liabilities                               270,529                     319,006          
                                                                                                      
 Long-term debt                                          385,000                     390,000          
 Deferred income taxes                                   129,080                     132,653          
 Pension and postretirement benefit accruals             26,137                      26,442           
 Other long-term liabilities                             88,817                      87,182           
                                                                                                      
 Shareholders' equity                                                                                 
 Capital stock                                           15,221                      15,102           
 Additional paid-in capital                              23,873                      7,725            
 Treasury stock                                          (71,904    )                (63,083    )     
 Retained earnings                                       1,226,346                   1,161,564        
 Accumulated other comprehensive loss                    (69,268    )                (69,472    )     
 Stock held in trust                                     (3,076     )                (2,689     )     
 Deferred compensation liability                         3,076                       2,689            
 Total shareholders' equity                              1,124,268                   1,051,836        
                                                                                                      
 Total liabilities and shareholders' equity       $      2,023,831             $     2,007,119        
                                                                                                      


 Actuant Corporation                                                                                                                                  
 Condensed Consolidated Statements of Earnings                                                                                                        
 (Dollars in thousands except per share amounts)                                                                                                      
 (Unaudited)                                                                                                                                          
                                                                                                                                                      
                                                       Three Months Ended                                   Six Months Ended                          
                                                       February 28,                February 29,             February 28,            February 29,      
                                                       2013                        2012                     2013                    2012              
                                                                                                                                                      
 Net sales                                             $      370,370              $      378,024           $        747,618        $        770,823  
 Cost of products sold                                        230,811                     236,732                    461,073                 476,923  
 Gross profit                                                 139,559                     141,292                    286,545                 293,900  
                                                                                                                                                      
 Selling, administrative and engineering expenses             89,977                      84,763                     177,807                 172,872  
 Amortization of intangible assets                            7,638                       7,073                      15,492                  14,291   
 Operating profit                                             41,944                      49,456                     93,246                  106,737  
                                                                                                                                                      
 Financing costs, net                                         6,260                       7,821                      12,582                  16,043   
 Other expense (income), net                                  (36      )                  (171     )                 328                     486      
 Earnings before income tax expense                           35,720                      41,806                     80,336                  90,208   
                                                                                                                                                      
 Income tax expense                                           7,285                       9,631                      15,558                  20,859   
 Net earnings                                          $      28,435               $      32,175            $        64,778         $        69,349   
                                                                                                                                                      
 Earnings per share                                                                                                                                   
 Basic                                                 $      0.39                 $      0.47              $        0.89           $        1.02     
 Diluted                                                      0.38                        0.43                       0.87                    0.94     
                                                                                                                                                      
 Weighted average common shares outstanding                                                                                                           
 Basic                                                        72,946                      68,064                     72,869                  68,242   
 Diluted                                                      74,416                      75,105                     74,343                  75,124   
                                                                                                                                                      


 Actuant Corporation                                                                                                                                                      
 Condensed Consolidated Statements of Cash Flows                                                                                                                          
 (In thousands)                                                                                                                                                           
 (Unaudited)                                                                                                                                                              
                                                                                                                                                                          
                                                                  Three Months Ended                                   Six Months Ended                                   
                                                                  February 28,                February 29,             February 28,                February 29,           
                                                                  2013                        2012                     2013                        2012                   
                                                                                                                                                                          
 Operating Activities                                                                                                                                                     
 Net earnings                                                     $      28,435               $      32,175            $      64,778               $      69,349          
 Adjustments to reconcile net earnings to net cash provided by                                                                                                            
 operating activities:                                                                                                                                                    
 Depreciation and amortization                                           14,451                      13,070                   28,898                      26,610          
 Stock-based compensation expense                                        3,651                       3,419                    7,128                       6,962           
 Benefit for deferred income taxes                                       (2,862   )                  (1,304   )               (6,018   )                  (2,254   )      
 Amortization of debt discount and debt issuance costs                   496                         500                      992                         997             
 Other non-cash adjustments                                              5                           (404     )               (172     )                  (346     )      
 Changes in components of working capital and other:                                                                                                                      
 Accounts receivable                                                     (8,260   )                  (7,510   )               (3,721   )                  (17,107  )      
 Inventories                                                             7,166                       1,535                    (4,152   )                  (1,060   )      
 Prepaid expenses and other assets                                       4,939                       (1,312   )               (1,204   )                  (2,137   )      
 Trade accounts payable                                                  (10,733  )                  (5,242   )               (22,281  )                  (8,128   )      
 Income taxes payable                                                    (3,883   )                  (1,180   )               (2,722   )                  36              
 Accrued compensation and benefits                                       1,526                       5,071                    (12,427  )                  (14,098  )      
 Other accrued liabilities                                               (6,883   )                  (7,292   )               (8,776   )                  (6,823   )      
 Net cash provided by operating activities                               28,048                      31,526                   40,323                      52,001          
                                                                                                                                                                          
 Investing Activities                                                                                                                                                     
 Proceeds from sale of property, plant and equipment                     200                         1,857                    1,177                       7,775           
 Capital expenditures                                                    (4,037   )                  (4,857   )               (11,726  )                  (10,452  )      
 Business acquisitions, net of cash acquired                             (1,350   )                  (18,617  )               (1,433   )                  (18,907  )      
 Net cash used in investing activities                                   (5,187   )                  (21,617  )               (11,982  )                  (21,584  )      
                                                                                                                                                                          
 Financing Activities                                                                                                                                                     
 Net repayments on revolving credit facilities and other debt            -                           (4,976   )               -                           (167     )      
 Principal repayments on term loan                                       (1,250   )                  -                        (2,500   )                  -               
 Purchase of treasury shares                                             (1,679   )                  -                        (8,821   )                  (20,410  )      
 Stock option exercises and related tax benefits                         5,299                       2,725                    10,772                      5,507           
 Cash dividend                                                           -                           -                        (2,911   )                  (2,748   )      
 Net cash provided by (used in) financing activities                     2,370                       (2,251   )               (3,460   )                  (17,818  )      
                                                                                                                                                                          
 Effect of exchange rate changes on cash                                 (2,719   )                  2,668                    (2,242   )                  1,625           
 Net increase in cash and cash equivalents                               22,512                      10,326                   22,639                      14,224          
 Cash and cash equivalents - beginning of period                         68,311                      48,119                   68,184                      44,221          
 Cash and cash equivalents - end of period                        $      90,823               $      58,445            $      90,823               $      58,445          
                                                                                                                                                                          


 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        $  98,999                       $   200,121      
 ENERGY SEGMENT                                                  80,421            78,937            96,399            93,406             349,163             90,769            80,794                           171,563      
 ELECTRICAL SEGMENT                                              82,833            77,105            85,947            82,936             328,821             69,439            69,902                           139,341      
 ENGINEERED SOLUTIONS SEGMENT                                    129,292           123,640           136,767           118,364            508,063             115,918           120,675                          236,593      
 TOTAL                                                        $  392,799        $  378,024        $  429,215        $  405,304        $   1,605,342        $  377,248        $  370,370                      $   747,618      
                                                                                                                                                                                                                              
 % SALES GROWTH                                                                                                                                                                                                               
 INDUSTRIAL SEGMENT                                              15       %        11       %        2        %        2        %         7          %        1        %        1        %                       1        %   
 ENERGY SEGMENT                                                  14       %        28       %        24       %        13       %         19         %        13       %        2        %                       8        %   
 ELECTRICAL SEGMENT                                              50       %        10       %        7        %        4        %         15         %        -16      %        -9       %                       -13      %   
 ENGINEERED SOLUTIONS SEGMENT                                    23       %        12       %        8        %        -10      %         7          %        -10      %        -2       %                       -6       %   
 TOTAL                                                           23       %        14       %        9        %        0        %         11         %        -4       %        -2       %                       -3       %   
                                                                                                                                                                                                                              
 OPERATING PROFIT (LOSS)                                                                                                                                                                                                      
 INDUSTRIAL SEGMENT                                           $  27,933         $  26,690         $  30,681         $  29,473         $   114,777          $  27,006         $  26,350                       $   53,356       
 ENERGY SEGMENT                                                  13,217            11,632            18,515            18,841             62,205              15,387            9,677                            25,064       
 ELECTRICAL SEGMENT                                              4,977             5,801             8,814             8,300              27,892              7,828             5,072                            12,900       
 ENGINEERED SOLUTIONS SEGMENT                                    18,999            13,281            18,467            10,104             60,851              7,625             8,275                            15,900       
 CORPORATE / GENERAL                                             (7,845   )        (7,948   )        (8,813   )        (8,713   )         (33,319    )        (6,544   )        (7,430   )                       (13,974  )   
 TOTAL - EXCLUDING IMPAIRMENT CHARGE                          $  57,281         $  49,456         $  67,664         $  58,005         $   232,406          $  51,302         $  41,944                       $   93,246       
 IMPAIRMENT CHARGE                                               -                 -                 -                 (62,464  )         (62,464    )        -                 -                                -            
 TOTAL                                                        $  57,281         $  49,456         $  67,664         $  (4,459   )     $   169,942          $  51,302         $  41,944                       $   93,246       
                                                                                                                                                                                                                              
 OPERATING PROFIT %                                                                                                                                                                                                           
 INDUSTRIAL SEGMENT                                              27.9     %        27.1     %        27.9     %        26.6     %         27.4       %        26.7     %        26.6     %                       26.7     %   
 ENERGY SEGMENT                                                  16.4     %        14.7     %        19.2     %        20.2     %         17.8       %        17.0     %        12.0     %                       14.6     %   
 ELECTRICAL SEGMENT                                              6.0      %        7.5      %        10.3     %        10.0     %         8.5        %        11.3     %        7.3      %                       9.3      %   
 ENGINEERED SOLUTIONS SEGMENT                                    14.7     %        10.7     %        13.5     %        8.5      %         12.0       %        6.6      %        6.9      %                       6.7      %   
 TOTAL (INCLUDING CORPORATE) - EXCLUDING IMPAIRMENT CHARGE       14.6     %        13.1     %        15.8     %        14.3     %         14.5       %        13.6     %        11.3     %                       12.5     %   
                                                                                                                                                                                                                              
 EBITDA                                                                                                                                                                                                                       
 INDUSTRIAL SEGMENT                                           $  29,220         $  29,116         $  32,070         $  31,774         $   122,180          $  29,033         $  28,471                       $   57,504       
 ENERGY SEGMENT                                                  18,243            15,601            22,216            23,166             79,226              19,694            14,278                           33,972       
 ELECTRICAL SEGMENT                                              7,705             8,697             11,444            10,969             38,815              10,806            7,653                            18,459       
 ENGINEERED SOLUTIONS SEGMENT                                    22,213            16,762            21,418            13,991             74,384              12,047            12,611                           24,658       
 CORPORATE / GENERAL                                             (7,217   )        (7,479   )        (8,506   )        (7,972   )         (31,174    )        (6,195   )        (6,582   )                       (12,777  )   
 TOTAL - EXCLUDING IMPAIRMENT CHARGE                          $  70,164         $  62,697         $  78,642         $  71,928         $   283,431          $  65,385         $  56,431                       $   121,816      
 IMPAIRMENT CHARGE                                               -                 -                 -                 (62,464  )         (62,464    )        -                 -                                -            
 TOTAL                                                        $  70,164         $  62,697         $  78,642         $  9,464          $   220,967          $  65,385         $  56,431                       $   121,816      
                                                                                                                                                                                                                              
 EBITDA %                                                                                                                                                                                                                     
 INDUSTRIAL SEGMENT                                              29.1     %        29.6     %        29.1     %        28.7     %         29.1       %        28.7     %        28.8     %                       28.7     %   
 ENERGY SEGMENT                                                  22.7     %        19.8     %        23.0     %        24.8     %         22.7       %        21.7     %        17.7     %                       19.8     %   
 ELECTRICAL SEGMENT                                              9.3      %        11.3     %        13.3     %        13.2     %         11.8       %        15.6     %        10.9     %                       13.2     %   
 ENGINEERED SOLUTIONS SEGMENT                                    17.2     %        13.6     %        15.7     %        11.8     %         14.6       %        10.4     %        10.5     %                       10.4     %   
 TOTAL (INCLUDING CORPORATE) - EXCLUDING IMPAIRMENT CHARGE       17.9     %        16.6     %        18.3     %        17.7     %         17.7       %        17.3     %        15.2     %                       16.3     %   
                                                                                                                                                                                                                              


 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     $   28,435                   $    64,778   
 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     $   28,435                   $    64,778   
                                                                                                                                                                                                     
 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       $   0.38                     $    0.87     
 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       $   0.38                     $    0.87     
                                                                                                                                                                                                     
                                                                                                                                                                                                     
 EBITDA (2)                                                                                                                                                                                          
 NET EARNINGS (LOSS) (GAAP MEASURE)                         $   37,174     $   32,175     $   34,401     $  (16,460  )     $    87,290     $   36,343     $   28,435                   $    64,778   
 FINANCING COSTS, NET                                           8,222          7,821          24,066        6,281               46,390         6,322          6,260                         12,582   
 INCOME TAX EXPENSE                                             11,228         9,631          6,593         5,572               33,024         8,273          7,285                         15,558   
 DEPRECIATION & AMORTIZATION                                    13,540         13,070         13,582        14,071              54,263         14,447         14,451                        28,898   
 EBITDA (NON-GAAP MEASURE)                                  $   70,164     $   62,697     $   78,642     $  9,464          $    220,967    $   65,385     $   56,431                   $    121,816  
 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     $   56,431                   $    121,816  


 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, 262-293-1562
Communications & Investor Relations Leader 



Copyright Business Wire 2013

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