8-K
ENERPAC TOOL GROUP CORP (EPAC)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
FORM 8-K
_________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 18, 2024
_______________________________
ENERPAC TOOL GROUP CORP.
(Exact name of registrant as specified in its charter)
_______________________________
| Wisconsin | 001-11288 | 39-0168610 |
|---|---|---|
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
N86 W12500 Westbrook Crossing
Menomonee Falls, Wisconsin 53051
Mailing address: P.O. Box 3241, Milwaukee, Wisconsin 53201
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (262) 293-1500
(Former name or former address, if changed since last report)
_______________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Class A Common Stock, par value $0.20 per share | EPAC | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
The information set forth in this Item 2.02 of this Current Report on Form 8-K and in Exhibit 99.1 is intended to be “furnished” under Item 2.02 of Form 8-K. Such information shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
On December 18, 2024, Enerpac Tool Group Corp. (the “Company”) issued a press release announcing its results of operations for the three months ended November 30, 2024, a copy of which is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
| 99.1 | Press Release of the Company dated December 18, 2024 |
|---|---|
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ENERPAC TOOL GROUP CORP. | ||
|---|---|---|
| Date: December 18, 2024 | By: | /s/ James Denis |
| James Denis | ||
| Executive Vice President, General Counsel and Secretary |
EdgarFiling
EXHIBIT 99.1
Enerpac Tool Group Reports First Quarter Fiscal 2025 Results
First Quarter of Fiscal 2025 Continuing Operations Highlights^*^
- Net sales were $145 million, a 2.3% increase compared to the prior year, with a 0.8% decline in organic sales.^*^^*^
- Operating margin was 21.4% and adjusted operating margin was 21.5%.
- Net income was $21.7 million, or $0.40 per diluted share, and adjusted net income was $21.9 million, or $0.40 per diluted share. GAAP and adjusted EPS increased 21% and 3% year-over-year, respectively.
- Adjusted EBITDA was $34.3 million and adjusted EBITDA margin was 23.6%.
- Completed acquisition of DTA with integration well underway.
^*^This press release contains financial measures in accordance with U.S. GenerallyAccepted Accounting Principles (“GAAP”) in addition to non-GAAP financial measures. Reconciliations of the non-GAAP financialmeasures to the comparable GAAP measures are presented in the tables accompanying this release.
^**^Organic sales represent net sales excluding the impact of foreign exchangerates, acquisitions, and divestitures. A reconciliation of organic sales to comparable net sales is presented in the tables accompanyingthis release.
MILWAUKEE, Dec. 18, 2024 (GLOBE NEWSWIRE) -- Enerpac Tool Group Corp. (NYSE: EPAC) (the “Company” or “Enerpac”) today announced results for its fiscal first quarter ended November 30, 2024.
“We entered fiscal 2025 mindful of a sluggish industrial macro environment,” said Paul Sternlieb, Enerpac Tool Group’s President & CEO. “Nonetheless, we believe Enerpac can continue to outperform the market given our global brand leadership, targeted growth strategy, customer-driven innovation, and continuous improvement process to enhance operational efficiency and productivity.”
| Consolidated Results from Continuing Operations | |
|---|---|
| (US<br> in millions, except per share) | |
| November 30, 2023 | |
| Net Sales | $142.0 |
| Operating Profit | $28.7 |
| Adjusted Op Profit | $32.4 |
| Net Earnings | $18.3 |
| Diluted EPS | $0.33 |
| Adjusted Diluted EPS | $0.39 |
| Adjusted EBITDA | $34.9 |
All values are in US Dollars.
First Quarter Fiscal 2025 Consolidated Results Comparisons
“First quarter fiscal 2025 was essentially in line with our expectations, reflecting our ability to operate in a soft market, while lapping strong growth in the first quarter of fiscal 2024,” said Darren Kozik, Executive Vice President and Chief Financial Officer.
Consolidated net sales for the first quarter of fiscal 2025 were $145.2 million compared to $142.0 million in the prior-year period, an increase of 2.3%. Organic sales, excluding the acquisition of DTA and the impact of foreign currency, decreased 0.8% year-over-year. Service organic revenue growth of 5.6% was offset by a 2.7% decline in product sales. Net sales for Industrial Tools & Services (IT&S) increased 2.3%, driven by the increase in service revenue and the acquisition of DTA. The organic sales decline of 1.0% for IT&S was partially offset by a year-over-year improvement at Cortland Biomedical, which comprises the Other operating segment.
Gross profit margin declined 90 basis points year-over-year to 51.4% due to lower sales in the Americas, a higher percentage of service revenue, and a return to normalized margins at Cortland. Selling, general and administrative expenses (SG&A) of $42.3 million were $2.3 million lower year-over-year. SG&A was 29.1% of sales, down from 31.4% in the year-ago period. Adjusted SG&A expenses, excluding one-time costs associated with the acquisition of DTA, were $42.2 million as compared to $41.1 million in fiscal 2024. The prior-year period adjusted SG&A excluded ASCEND and restructuring charges. As a percentage of sales, adjusted SG&A held flat at 29.0%.
Operating profit increased 9% year-over-year to $31.1 million, with an operating profit margin of 21.4%, up from 20.2% in the first quarter of fiscal 2024. Adjusted operating profit decreased 3.6% to $31.3 million, with an adjusted operating margin of 21.5%, down from 22.8% in the year-ago period.
First quarter fiscal 2025 net income and diluted EPS were $21.7 million and $0.40 respectively, compared to $18.3 million and $0.33, respectively, in the year-ago period.
First quarter adjusted EBITDA was $34.3 million compared to $34.9 million in the year-ago period. Adjusted EBITDA margin declined 100 basis points year-over-year to 23.6% driven by lower gross margins coupled with the inclusion of DTA.
Net cash provided by operating activities was $8.6 million for the first quarter of fiscal 2025 as compared to a use of $6.7 million in the prior-year period. Cash flow from operations was higher than the prior year, the benefit of higher net earnings, lower annual incentive compensation payments made in the first quarter compared to the prior year, and the absence of payments related to discontinued operations.
| Industrial Tools & Services (IT&S) | |
|---|---|
| (US<br> in millions) | |
| November 30,<br> 2023 | |
| Net Sales | $137.0 |
| Operating Profit | $35.6 |
| Operating Profit % | 26.0% |
| Adjusted Op Profit (1) | $38.5 |
| Adjusted Op Profit % (1) | 28.1% |
All values are in US Dollars.
^(1)^Excludes approximately $ 0.1 million of M&A costs in thefirst quarter of fiscal 202 5 a s compared to approximately $ 2.1 millionof restructuring charges and $ 0.8 million of ASCEND charges in the first quarter of fiscal 202 4 .
IT&S Results Comparisons
First quarter fiscal 2025 net sales for IT&S were $140.1 million, an increase of 2.3% year-over-year with organic sales down 1.0%. The decline in organic sales was driven by a 3.0% decrease in product sales, partially offset by a 5.6% increase in service revenue. The segment’s operating profit margin increased approximately 110 basis points to 27.1% as the prior-year period included ASCEND and restructuring costs. Adjusted operating profit margin declined 90 basis points to 27.2%, driven by sales mix and the inclusion of DTA’s results.
DTA Acquisition
On September 4, Enerpac completed the acquisition of DTA, a producer of automated on-site horizontal movement products, to complement its Heavy Lifting Technology product portfolio. “With the integration well underway, we are capitalizing on the opportunity to leverage Enerpac’s global sales network and expand DTA’s sales outside of Europe,” added Sternlieb.
Corporate Expenses from Continuing Operations
Corporate expenses were $8.2 million and $8.9 million for the first quarter of fiscal 2025 and fiscal 2024, respectively. The prior-year period included charges for ASCEND and restructuring. Adjusted corporate expenses^(2)^ of $8.1 million for the first quarter of fiscal 2025 were flat as compared to the prior-year period.
^(2)^ F irst quarter fiscal 202 5 adj usted corp orate expenses exclude approximately $ 0.1 million of M &Acosts a s compared to approximately $0. 3 million of restructuring charges and $ 0.4 million of ASCEND charges in the first quarter of fiscal 202 4 .
| Balance Sheet and Leverage | |||
|---|---|---|---|
| (US$ in millions) | November 30, 2024 | August 31, 2024 | November 30, 2023 |
| Cash Balance | $130.7 | $167.1 | $148.0 |
| Debt Balance | $193.3 | $194.5 | $244.5 |
| Net Debt to Adjusted EBITDA^*^ | 0.5x | 0.2x | 0.9x |
^*^Calculated in accordance with the terms of the Company’s September 2022 SeniorCredit Facility.
Net debt on November 30, 2024, was $62.6 million, resulting in a net debt to adjusted EBITDA ratio of 0.5x. The company repurchased approximately 110,000 shares of its common stock in the first quarter of fiscal 2025 for a total of $4.4 million under its share repurchase program announced in March 2022. Cash decreased from the end of fiscal 2024 primarily due to the acquisition of DTA in the first quarter of fiscal 2025.
Outlook
“With the first quarter results roughly as anticipated, we are maintaining our full-year fiscal 2025 guidance, including total revenue and adjusted EBITDA growth of 5% at the midpoint of our guidance,” concluded Sternlieb.
The Company is projecting a net sales range of $610 million to $625 million in fiscal 2025. The forecast anticipates organic sales growth of approximately 0% to 2%, with expected adjusted EBITDA in the range of $150 million to $160 million, and free cash flow between $85 million to $95 million. This forecast is based on the Company’s key foreign exchange rate assumptions and assumes that there is no broad-based global recession.
Conference Call Information
An investor conference call is scheduled for 7:30 am CT on December 19, 2024. Webcast information and conference call materials, including an earnings presentation, are available on the Enerpac Tool Group company website (www.enerpactoolgroup.com).
Safe Harbor Statement
Certain of the above comments represent forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. In addition to statements with respect to guidance, the terms “outlook,” “guidance,” “may,” “should,” “could,” “anticipate,” “believe,” “estimate,” “expect,” “objective,” “plan,” “project” and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are subject to inherent risks and uncertainties that may cause actual results or events to differ materially from those contemplated by such forward-looking statements. In addition to the assumptions and other factors referred to specifically in connection with such statements, risks and uncertainties that may cause actual results or events to differ materially from those contemplated by such forward-looking statements include, without limitation, general economic uncertainty, market conditions in the industrial, oil & gas, energy, power generation, infrastructure, commercial construction, truck and automotive industries, supply chain risks, including disruptions in deliveries from suppliers due to political tensions or the imposition, or threat of imposition, of tariffs, which could be affected by the outcome of the recent U.S. presidential election, the impact of geopolitical activity, including the invasion of Ukraine by Russia and international sanctions imposed in response thereto, as well as armed conflicts in the Middle East, including the impact on shipping in the Red Sea, the ability of the Company to achieve its plans or objectives related to its growth strategy, market acceptance of existing and new products, market acceptance of price increases, successful integration of acquisitions, the impact of dispositions and restructurings, the ability of the Company to continue to achieve its plans or objectives related to the PEP program, operating margin risk due to competitive pricing and operating efficiencies, risks related to reliance on independent agents and distributors for the distribution and service of products, material, labor, or overhead cost increases, tax law changes, foreign currency risk, interest rate risk, commodity risk, tariffs, litigation matters, cybersecurity risk, impairment of goodwill or other intangible assets, the Company’s ability to access capital markets and other risks and uncertainties that may be referred to or noted in the Company’s reports filed with the Securities and Exchange Commission from time to time, including those described in the Company’s Form 10-K for the fiscal year ended August 31, 2024. Enerpac Tool Group disclaims any obligation to publicly update or revise any forward-looking statements as a result of new information, future events or any other reason.
Non-GAAP Financial Information
This press release contains financial measures that are not measures presented in conformity with GAAP. These non-GAAP measures include organic sales, EBITDA from continuing operations, adjusted EBITDA from continuing operations, adjusted earnings from continuing operations, adjusted diluted earnings per share from continuing operations, adjusted operating profit from continuing operations, segment adjusted operating profit and adjusted EBITDA, adjusted corporate expense, adjusted SG&A expense, free cash flow and net debt. This press release includes reconciliations of non-GAAP measures to the most comparable GAAP measure, included in the tables attached to this press release or in footnotes to the tables included in this press release. Management believes the non-GAAP measures presented in this press release are commonly used financial measures for investors to evaluate Enerpac Tool Group’s operating performance and financial position with respect to the periods presented and, when read in conjunction with the condensed consolidated financial statements, present a useful tool to evaluate ongoing operations and provide investors with metrics they can use to evaluate aspects of the Company’s performance from period to period. In addition, these are some of the financial metrics management uses in internal evaluations of the overall performance of the Company’s business. Management acknowledges that there are many items that impact a company’s reported results and the adjustments reflected in these non-GAAP measures are not intended to present all items that may have impacted these results. In addition, these non-GAAP measures are not necessarily comparable to similarly titled measures used by other companies.
About Enerpac Tool Group
Enerpac Tool Group Corp. is a premier industrial tools, services, technology, and solutions provider serving a broad and diverse set of customers and end markets for mission-critical applications in more than 100 countries. The Company makes complex, often hazardous jobs possible safely and efficiently. Enerpac Tool Group’s businesses are global leaders in high pressure hydraulic tools, controlled force products, and solutions for precise positioning of heavy loads that help customers safely and reliably tackle some of the most challenging jobs around the world. The Company was founded in 1910 and is headquartered in Menomonee Falls, Wisconsin. Enerpac Tool Group common stock trades on the NYSE under the symbol EPAC. For further information on Enerpac Tool Group and its businesses, visit the Company's website at www.enerpactoolgroup.com.
(tables follow)
| Enerpac Tool Group Corp. | ||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Condensed Consolidated Balance Sheets | ||||||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| November 30, | August 31, | |||||||||||||||||||||||||
| 2024 | 2024 | |||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||
| Current assets | ||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 130,733 | $ | 167,094 | ||||||||||||||||||||||
| Accounts receivable, net | 100,654 | 104,335 | ||||||||||||||||||||||||
| Inventories, net | 81,198 | 72,887 | ||||||||||||||||||||||||
| Other current assets | 37,185 | 27,942 | ||||||||||||||||||||||||
| Total current assets | 349,770 | 372,258 | ||||||||||||||||||||||||
| Property, plant and equipment, net | 45,821 | 40,285 | ||||||||||||||||||||||||
| Goodwill | 287,502 | 269,597 | ||||||||||||||||||||||||
| Other intangible assets, net | 34,482 | 36,058 | ||||||||||||||||||||||||
| Other long-term assets | 57,776 | 59,130 | ||||||||||||||||||||||||
| Total assets | $ | 775,351 | $ | 777,328 | ||||||||||||||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||||
| Current maturities of long-term debt | $ | 5,000 | $ | 5,000 | ||||||||||||||||||||||
| Trade accounts payable | 46,931 | 43,368 | ||||||||||||||||||||||||
| Accrued compensation and benefits | 18,447 | 25,856 | ||||||||||||||||||||||||
| Income taxes payable | 5,729 | 5,321 | ||||||||||||||||||||||||
| Other current liabilities | 43,835 | 49,848 | ||||||||||||||||||||||||
| Total current liabilities | 119,942 | 129,393 | ||||||||||||||||||||||||
| Long-term debt, net | 188,294 | 189,503 | ||||||||||||||||||||||||
| Deferred income taxes | 6,111 | 3,696 | ||||||||||||||||||||||||
| Pension and postretirement benefit liabilities | 9,067 | 10,073 | ||||||||||||||||||||||||
| Other long-term liabilities | 53,928 | 52,684 | ||||||||||||||||||||||||
| Total liabilities | 377,342 | 385,349 | ||||||||||||||||||||||||
| Shareholders' equity | ||||||||||||||||||||||||||
| Capital stock | 10,880 | 10,847 | ||||||||||||||||||||||||
| Additional paid-in capital | 233,964 | 235,660 | ||||||||||||||||||||||||
| Retained earnings | 279,239 | 261,870 | ||||||||||||||||||||||||
| Accumulated other comprehensive loss | (126,074 | ) | (116,398 | ) | ||||||||||||||||||||||
| Stock held in trust | (3,774 | ) | (3,777 | ) | ||||||||||||||||||||||
| Deferred compensation liability | 3,774 | 3,777 | ||||||||||||||||||||||||
| Total shareholders' equity | 398,009 | 391,979 | ||||||||||||||||||||||||
| Total liabilities and shareholders'<br> equity | $ | 775,351 | $ | 777,328 | ||||||||||||||||||||||
| Enerpac Tool Group Corp. | ||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | |||||||||||||||||||||
| Condensed Consolidated Statements of Earnings | ||||||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||
| November 30, | November 30, | |||||||||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||||||||||
| Net sales | $ | 145,196 | $ | 141,970 | ||||||||||||||||||||||
| Cost of products sold | 70,544 | 67,720 | ||||||||||||||||||||||||
| Gross profit | 74,652 | 74,250 | ||||||||||||||||||||||||
| Selling, general and administrative expenses | 42,318 | 42,216 | ||||||||||||||||||||||||
| Amortization of intangible assets | 1,202 | 824 | ||||||||||||||||||||||||
| Restructuring charges | - | 2,401 | ||||||||||||||||||||||||
| Impairment & divestiture charges | - | 147 | ||||||||||||||||||||||||
| Operating profit | 31,132 | 28,662 | ||||||||||||||||||||||||
| Financing costs, net | 2,770 | 3,697 | ||||||||||||||||||||||||
| Other expense, net | 487 | 991 | ||||||||||||||||||||||||
| Earnings before income tax expense | 27,875 | 23,974 | ||||||||||||||||||||||||
| Income tax expense | 6,152 | 5,669 | ||||||||||||||||||||||||
| Net earnings from continuing operations | 21,723 | 18,305 | ||||||||||||||||||||||||
| Loss from discontinued operations, net<br> of income taxes | - | (567 | ) | |||||||||||||||||||||||
| Net earnings | $ | 21,723 | $ | 17,738 | ||||||||||||||||||||||
| Earnings per share from continuing operations | ||||||||||||||||||||||||||
| Basic | $ | 0.40 | $ | 0.34 | ||||||||||||||||||||||
| Diluted | 0.40 | 0.33 | ||||||||||||||||||||||||
| Loss per share from discontinued operations | ||||||||||||||||||||||||||
| Basic | $ | - | $ | (0.01 | ) | |||||||||||||||||||||
| Diluted | - | (0.01 | ) | |||||||||||||||||||||||
| Earnings per share | ||||||||||||||||||||||||||
| Basic | $ | 0.40 | $ | 0.33 | ||||||||||||||||||||||
| Diluted | 0.40 | 0.32 | ||||||||||||||||||||||||
| Weighted average common shares outstanding | ||||||||||||||||||||||||||
| Basic | 54,242 | 54,527 | ||||||||||||||||||||||||
| Diluted | 54,812 | 55,008 | ||||||||||||||||||||||||
| Enerpac Tool Group Corp. | ||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||||||||||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||
| November 30, | November 30, | |||||||||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||||||||||
| Operating Activities | ||||||||||||||||||||||||||
| Cash provided by (used in) operating activities - continuing<br> operations | 8,649 | (3,917 | ) | |||||||||||||||||||||||
| Cash used in operating activities - discontinued operations | - | (2,758 | ) | |||||||||||||||||||||||
| Cash provided by (used in) operating<br> activities | $ | 8,649 | $ | (6,675 | ) | |||||||||||||||||||||
| Investing Activities | ||||||||||||||||||||||||||
| Capital expenditures | (5,857 | ) | (1,567 | ) | ||||||||||||||||||||||
| Purchase of business assets | - | (1,027 | ) | |||||||||||||||||||||||
| Cash paid for business acquisitions,<br> net of cash acquired | (27,196 | ) | - | |||||||||||||||||||||||
| Cash used in investing activities - continuing operations | $ | (33,053 | ) | $ | (2,594 | ) | ||||||||||||||||||||
| Cash used in investing activities | $ | (33,053 | ) | $ | (2,594 | ) | ||||||||||||||||||||
| Financing Activities | ||||||||||||||||||||||||||
| Borrowings on revolving credit facility | 14,421 | 39,000 | ||||||||||||||||||||||||
| Principal repayments on revolving credit<br> facility | (14,421 | ) | (8,000 | ) | ||||||||||||||||||||||
| Principal repayments on term loan | (1,250 | ) | (625 | ) | ||||||||||||||||||||||
| Purchase of treasury shares | (4,379 | ) | (26,116 | ) | ||||||||||||||||||||||
| Stock options, taxes paid related to<br> the net share settlement of equity awards & other | (4,987 | ) | 236 | |||||||||||||||||||||||
| Payment of cash dividend | (2,167 | ) | (2,178 | ) | ||||||||||||||||||||||
| Cash (used in) provided by financing activities - continuing<br> operations | $ | (12,783 | ) | $ | 2,317 | |||||||||||||||||||||
| Cash (used in) provided by financing<br> activities | $ | (12,783 | ) | $ | 2,317 | |||||||||||||||||||||
| Effect of exchange rate changes on cash | 826 | 493 | ||||||||||||||||||||||||
| Net decrease from cash and cash equivalents | $ | (36,361 | ) | $ | (6,459 | ) | ||||||||||||||||||||
| Cash and cash equivalents - beginning of period | 167,094 | 154,415 | ||||||||||||||||||||||||
| Cash and cash equivalents - end of period | $ | 130,733 | $ | 147,956 | ||||||||||||||||||||||
| Enerpac Tool Group Corp. | ||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Supplemental Unaudited Data | ||||||||||||||||||||||||||
| Reconciliation of GAAP Measures to Non-GAAP Measures for Continuing<br> Operations | ||||||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||||||
| Fiscal 2025 | ||||||||||||||||||||||||||
| Q2 | Q3 | Q4 | TOTAL | Q1 | Q2 | Q3 | Q4 | TOTAL | ||||||||||||||||||
| Net Sales | ||||||||||||||||||||||||||
| Industrial<br> Tools & Services Segment | 137,035 | $ | 134,822 | $ | 145,936 | $ | 153,360 | $ | 571,153 | $ | 140,134 | $ | - | $ | - | $ | - | $ | 140,134 | |||||||
| Other | 4,935 | 3,615 | 4,453 | 5,354 | 18,357 | 5,062 | - | - | - | 5,062 | ||||||||||||||||
| Enerpac Tool Group | 141,970 | $ | 138,437 | $ | 150,389 | $ | 158,714 | $ | 589,510 | $ | 145,196 | $ | - | $ | - | $ | - | $ | 145,196 | |||||||
| % Net Sales Growth (Decline) Year over<br> Year | ||||||||||||||||||||||||||
| Industrial Tools & Services Segment | 7.6 | % | 3.0 | % | 1.3 | % | 0.3 | % | 2.9 | % | 2.3 | % | - | - | - | 2.3 | % | |||||||||
| Other | -59.2 | % | -67.3 | % | -63.3 | % | -31.0 | % | -57.3 | % | 2.6 | % | - | - | - | 2.6 | % | |||||||||
| Enerpac Tool Group | 1.9 | % | -2.5 | % | -3.8 | % | -1.2 | % | -1.5 | % | 2.3 | % | - | - | - | 2.3 | % | |||||||||
| Adjusted Selling, general and administrative<br> expenses | ||||||||||||||||||||||||||
| Selling, general and administrative<br> expenses | 42,216 | $ | 40,723 | $ | 42,101 | $ | 43,524 | $ | 168,565 | $ | 42,318 | $ | - | $ | - | $ | - | $ | 42,318 | |||||||
| M&A charges | - | - | - | (121 | ) | (121 | ) | (152 | ) | - | - | - | (152 | ) | ||||||||||||
| ASCEND transformation program charges | (1,093 | ) | (1,370 | ) | (1,457 | ) | (2,109 | ) | (6,029 | ) | - | - | - | - | - | |||||||||||
| Adjusted Selling, general and<br> administrative expenses | 41,123 | $ | 39,353 | $ | 40,644 | $ | 41,294 | $ | 162,415 | $ | 42,166 | $ | - | $ | - | $ | - | $ | 42,166 | |||||||
| Adjusted Selling, general and administrative<br> expenses % | ||||||||||||||||||||||||||
| Enerpac Tool Group | 29.0 | % | 28.4 | % | 27.0 | % | 26.0 | % | 27.6 | % | 29.0 | % | - | - | - | 29.0 | % | |||||||||
| Adjusted Operating profit | ||||||||||||||||||||||||||
| Operating profit | 28,662 | $ | 29,521 | $ | 33,363 | $ | 30,040 | $ | 121,587 | $ | 31,132 | $ | - | $ | - | $ | - | $ | 31,132 | |||||||
| Impairment & divestiture charges | 147 | - | - | - | 147 | - | - | - | - | - | ||||||||||||||||
| Restructuring charges (1) | 2,401 | 398 | 1,595 | 3,450 | 7,843 | - | - | - | - | - | ||||||||||||||||
| M&A charges | - | - | - | 121 | 121 | 152 | - | - | - | 152 | ||||||||||||||||
| ASCEND transformation program charges | 1,229 | 1,607 | 2,042 | 2,168 | 7,047 | - | - | - | - | - | ||||||||||||||||
| Adjusted Operating profit | 32,439 | $ | 31,526 | $ | 37,000 | $ | 35,779 | $ | 136,745 | $ | 31,284 | $ | - | $ | - | $ | - | $ | 31,284 | |||||||
| Adjusted Operating profit by Segment | ||||||||||||||||||||||||||
| Industrial Tools & Services Segment | 38,470 | $ | 38,909 | $ | 43,648 | $ | 42,989 | $ | 164,016 | $ | 38,074 | $ | - | $ | - | $ | - | $ | 38,074 | |||||||
| Other | 2,118 | (79 | ) | 1,284 | 1,120 | 4,443 | 1,319 | - | - | - | 1,319 | |||||||||||||||
| Corporate / General | (8,149 | ) | (7,304 | ) | (7,932 | ) | (8,330 | ) | (31,714 | ) | (8,109 | ) | - | - | - | (8,109 | ) | |||||||||
| Adjusted operating profit | 32,439 | $ | 31,526 | $ | 37,000 | $ | 35,779 | $ | 136,745 | $ | 31,284 | $ | - | $ | - | $ | - | $ | 31,284 | |||||||
| Adjusted Operating profit % | ||||||||||||||||||||||||||
| Industrial Tools & Services Segment | 28.1 | % | 28.9 | % | 29.9 | % | 28.0 | % | 28.7 | % | 27.2 | % | - | - | - | 27.2 | % | |||||||||
| Other | 42.9 | % | -2.2 | % | 28.8 | % | 20.9 | % | 24.2 | % | 26.1 | % | - | - | - | 26.1 | % | |||||||||
| Adjusted Operating Profit % | 22.8 | % | 22.8 | % | 24.6 | % | 22.5 | % | 23.2 | % | 21.5 | % | - | - | - | 21.5 | % | |||||||||
| EBITDA from Continuing Operations (2) | ||||||||||||||||||||||||||
| Net earnings from continuing operations | 18,305 | $ | 17,871 | $ | 22,621 | $ | 23,409 | $ | 82,207 | $ | 21,723 | $ | - | $ | - | $ | - | $ | 21,723 | |||||||
| Financing costs, net | 3,697 | 3,711 | 3,385 | 2,731 | 13,524 | 2,770 | - | - | - | 2,770 | ||||||||||||||||
| Income tax expense | 5,669 | 7,396 | 6,813 | 3,435 | 23,312 | 6,152 | - | - | - | 6,152 | ||||||||||||||||
| Depreciation & amortization | 3,426 | 3,328 | 3,216 | 3,304 | 13,275 | 3,514 | - | - | - | 3,514 | ||||||||||||||||
| EBITDA | 31,097 | $ | 32,306 | $ | 36,035 | $ | 32,879 | $ | 132,318 | $ | 34,159 | $ | - | $ | - | $ | - | $ | 34,159 | |||||||
| Adjusted EBITDA | ||||||||||||||||||||||||||
| EBITDA | 31,097 | $ | 32,306 | $ | 36,035 | $ | 32,879 | $ | 132,318 | $ | 34,159 | $ | - | $ | - | $ | - | $ | 34,159 | |||||||
| Impairment & divestiture charges | 147 | - | - | - | 147 | - | - | - | - | - | ||||||||||||||||
| Restructuring charges (1) | 2,401 | 398 | 1,595 | 3,450 | 7,843 | - | - | - | - | - | ||||||||||||||||
| M&A charges | - | - | - | 121 | 121 | 152 | - | - | - | 152 | ||||||||||||||||
| ASCEND transformation program charges | 1,229 | 1,607 | 2,042 | 2,168 | 7,047 | - | - | - | - | - | ||||||||||||||||
| Adjusted EBITDA | 34,874 | $ | 34,311 | $ | 39,672 | $ | 38,618 | $ | 147,476 | $ | 34,311 | $ | - | $ | - | $ | - | $ | 34,311 | |||||||
| Adjusted EBITDA by Segment | ||||||||||||||||||||||||||
| Industrial Tools & Services Segment | 40,880 | $ | 41,443 | $ | 45,706 | $ | 45,629 | $ | 173,659 | $ | 40,807 | $ | - | $ | - | $ | - | $ | 40,807 | |||||||
| Other | 2,324 | 141 | 1,497 | 1,367 | 5,330 | 1,546 | - | - | - | 1,546 | ||||||||||||||||
| Corporate / General | (8,330 | ) | (7,273 | ) | (7,531 | ) | (8,378 | ) | (31,513 | ) | (8,042 | ) | - | - | - | (8,042 | ) | |||||||||
| Adjusted EBITDA | 34,874 | $ | 34,311 | $ | 39,672 | $ | 38,618 | $ | 147,476 | $ | 34,311 | $ | - | $ | - | $ | - | $ | 34,311 | |||||||
| Adjusted EBITDA % | ||||||||||||||||||||||||||
| Industrial Tools & Services Segment | 29.8 | % | 30.7 | % | 31.3 | % | 29.8 | % | 30.4 | % | 29.1 | % | - | - | - | 29.1 | % | |||||||||
| Other | 47.1 | % | 3.9 | % | 33.6 | % | 25.5 | % | 29.0 | % | 30.5 | % | - | - | - | 30.5 | % | |||||||||
| Adjusted EBITDA % | 24.6 | % | 24.8 | % | 26.4 | % | 24.3 | % | 25.0 | % | 23.6 | % | - | - | - | 23.6 | % | |||||||||
| Notes: | ||||||||||||||||||||||||||
| (1) Approximately 0.4 million of the Q4 fiscal 2024 restructuring charges<br> were recorded in cost of products sold. | ||||||||||||||||||||||||||
| (2) EBITDA represents net earnings from continuing operations before<br> financing costs, net, income tax expense, and depreciation & amortization. Neither EBITDA nor adjusted EBITDA are calculated based<br> upon generally accepted accounting principles ("GAAP"). The amounts included in the EBITDA and adjusted EBITDA calculation, however, are<br> derived from amounts included in the Condensed Consolidated Statements of Earnings. EBITDA and adjusted EBITDA should not be considered<br> as alternatives to net earnings, operating profit or operating cash flows. The Company has presented EBITDA and adjusted EBITDA because<br> it regularly reviews these performance measures. In addition, EBITDA and adjusted EBITDA are used by many of our investors and lenders,<br> and are presented as a convenience to them. The EBITDA and adjusted EBITDA measures presented may not always be comparable to similarly<br> titled measures reported by other companies due to differences in the components of the calculation. |
All values are in US Dollars.
| Enerpac Tool Group Corp. | |||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Supplemental Unaudited Data | |||||||||||||||||||||||||||
| Reconciliation of GAAP Measures to Non-GAAP Measures (Continued) | |||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||
| Fiscal 2024 | Fiscal 2025 | ||||||||||||||||||||||||||
| Q1 | Q1 | ||||||||||||||||||||||||||
| Net Sales | |||||||||||||||||||||||||||
| Industrial<br> Tools & Services Segment | $ | 137,035 | $ | 140,134 | |||||||||||||||||||||||
| Other | 4,935 | 5,062 | |||||||||||||||||||||||||
| Enerpac Tool Group | $ | 141,970 | $ | 145,196 | |||||||||||||||||||||||
| Adjustment: Fx Impact on Net Sales | |||||||||||||||||||||||||||
| Industrial Tools & Services Segment | $ | 1,229 | $ | - | |||||||||||||||||||||||
| Other | - | - | |||||||||||||||||||||||||
| Enerpac Tool Group | $ | 1,229 | $ | - | |||||||||||||||||||||||
| Adjustment: Impact from Divestitures or Acquisitions on Net Sales | |||||||||||||||||||||||||||
| Industrial Tools & Services Segment | - | (3,184 | ) | ||||||||||||||||||||||||
| Other | - | - | |||||||||||||||||||||||||
| Enerpac Tool Group | $ | - | $ | (3,184 | ) | ||||||||||||||||||||||
| Organic Sales by Segment (3) | |||||||||||||||||||||||||||
| Industrial Tools & Services Segment | $ | 138,264 | $ | 136,950 | |||||||||||||||||||||||
| Other | 4,935 | 5,062 | |||||||||||||||||||||||||
| Enerpac Tool Group | $ | 143,199 | $ | 142,012 | |||||||||||||||||||||||
| Organic Sales Growth (Decline) % | |||||||||||||||||||||||||||
| Industrial Tools & Services Segment | -1.0 | % | |||||||||||||||||||||||||
| Other | 2.6 | % | |||||||||||||||||||||||||
| Enerpac Tool Group | -0.8 | % | |||||||||||||||||||||||||
| Net Sales by Product Line | |||||||||||||||||||||||||||
| Product | $ | 109,856 | $ | 111,149 | |||||||||||||||||||||||
| Service | 32,114 | 34,047 | |||||||||||||||||||||||||
| Enerpac Tool Group | $ | 141,970 | $ | 145,196 | |||||||||||||||||||||||
| Adjustment: Fx Impact on Net Sales | |||||||||||||||||||||||||||
| Product | $ | 1,115 | $ | - | |||||||||||||||||||||||
| Service | 113 | - | |||||||||||||||||||||||||
| Enerpac Tool Group | $ | 1,229 | $ | - | |||||||||||||||||||||||
| Adjustment: Impact from Divestitures or Acquisitions on Net Sales | |||||||||||||||||||||||||||
| Product | - | (3,184 | ) | ||||||||||||||||||||||||
| Service | - | - | |||||||||||||||||||||||||
| Enerpac Tool Group | $ | - | $ | (3,184 | ) | ||||||||||||||||||||||
| Organic Sales by Product Line (3) | |||||||||||||||||||||||||||
| Product | $ | 110,971 | $ | 107,965 | |||||||||||||||||||||||
| Service | 32,227 | 34,047 | |||||||||||||||||||||||||
| Enerpac Tool Group | $ | 143,199 | $ | 142,012 | |||||||||||||||||||||||
| Organic Sales Growth (Decline) % | |||||||||||||||||||||||||||
| Product | -2.7 | % | |||||||||||||||||||||||||
| Service | 5.6 | % | |||||||||||||||||||||||||
| Enerpac Tool Group | -0.8 | % | |||||||||||||||||||||||||
| (3) Organic Sales is defined as sales excluding the impact to foreign<br> currency changes and the impact from recent acquisitions and divestitures to net sales. | |||||||||||||||||||||||||||
| Enerpac Tool Group Corp. | |||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Supplemental Unaudited Data | |||||||||||||||||||||||||||
| Reconciliation of GAAP Measures to Non-GAAP Measures (Continued) | |||||||||||||||||||||||||||
| (In thousands, except for per share amounts) | |||||||||||||||||||||||||||
| Fiscal 2024 | Fiscal 2025 | ||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | TOTAL | Q1 | Q2 | Q3 | Q4 | TOTAL | ||||||||||||||||||
| Adjusted Earnings (4) | |||||||||||||||||||||||||||
| Net Earnings | $ | 17,738 | $ | 17,817 | $ | 25,778 | $ | 24,416 | $ | 85,749 | $ | 21,723 | $ | - | $ | - | $ | - | $ | 21,723 | |||||||
| (Loss) earnings from Discontinued Operations,<br> net of income tax | (567 | ) | (54 | ) | 3,157 | 1,007 | 3,542 | - | - | - | - | - | |||||||||||||||
| Net Earnings from Continuing Operations | $ | 18,305 | $ | 17,871 | $ | 22,621 | $ | 23,409 | $ | 82,207 | $ | 21,723 | $ | - | $ | - | $ | - | $ | 21,723 | |||||||
| Impairment & divestiture charges | 147 | - | - | - | 147 | - | - | - | - | - | |||||||||||||||||
| Restructuring charges (1) | 2,401 | 398 | 1,595 | 3,450 | 7,843 | - | - | - | - | - | |||||||||||||||||
| M&A charges | - | - | - | 121 | 121 | 152 | - | - | - | 152 | |||||||||||||||||
| ASCEND transformation program charges | 1,229 | 1,607 | 2,042 | 2,168 | 7,047 | - | - | - | - | - | |||||||||||||||||
| Net tax effect of reconciling items<br> above | (411 | ) | (185 | ) | (666 | ) | (1,683 | ) | (2,945 | ) | (4 | ) | - | - | - | (4 | ) | ||||||||||
| Other income tax expense | - | 137 | - | - | 137 | - | - | - | - | - | |||||||||||||||||
| Adjusted Net Earnings from Continuing Operations | $ | 21,671 | $ | 19,828 | $ | 25,592 | $ | 27,465 | $ | 94,557 | $ | 21,871 | $ | - | $ | - | $ | - | $ | 21,871 | |||||||
| Adjusted Diluted Earnings per share (4) | |||||||||||||||||||||||||||
| Net Earnings | $ | 0.32 | $ | 0.33 | $ | 0.47 | $ | 0.44 | $ | 1.56 | $ | 0.40 | $ | - | $ | - | $ | - | $ | 0.40 | |||||||
| (Loss) earnings from Discontinued Operations,<br> net of income tax | (0.01 | ) | (0.00 | ) | 0.06 | 0.02 | 0.06 | - | - | - | - | - | |||||||||||||||
| Net Earnings from Continuing Operations | $ | 0.33 | $ | 0.33 | $ | 0.41 | $ | 0.43 | $ | 1.50 | $ | 0.40 | $ | - | $ | - | $ | - | $ | 0.40 | |||||||
| Impairment & divestiture charges,<br> net of tax effect | 0.00 | - | - | - | 0.00 | - | - | - | - | - | |||||||||||||||||
| Restructuring charges (1), net of tax<br> effect | 0.04 | 0.00 | 0.02 | 0.04 | 0.11 | - | - | - | - | - | |||||||||||||||||
| M&A charges, net of tax effect | - | - | - | 0.00 | 0.00 | 0.00 | - | - | - | 0.00 | |||||||||||||||||
| ASCEND transformation program charges,<br> net of tax effect | 0.02 | 0.03 | 0.03 | 0.03 | 0.11 | - | - | - | - | - | |||||||||||||||||
| Other income tax expense | - | 0.00 | - | - | 0.00 | - | - | - | - | - | |||||||||||||||||
| Adjusted Diluted Earnings per share from Continuing Operations | $ | 0.39 | $ | 0.36 | $ | 0.47 | $ | 0.50 | $ | 1.72 | $ | 0.40 | $ | - | $ | - | $ | - | $ | 0.40 | |||||||
| Free Cash Flow | |||||||||||||||||||||||||||
| Cash (used in) provided by operating<br> activities | $ | (6,675 | ) | $ | 13,327 | $ | 30,306 | $ | 44,361 | $ | 81,319 | $ | 8,649 | $ | 8,649 | ||||||||||||
| Capital expenditures | (1,567 | ) | (1,585 | ) | (1,818 | ) | (6,441 | ) | (11,411 | ) | (5,857 | ) | (5,857 | ) | |||||||||||||
| Free Cash Flow | $ | (8,242 | ) | $ | 11,742 | $ | 28,488 | $ | 37,920 | $ | 69,908 | $ | 2,792 | $ | - | $ | - | $ | - | $ | 2,792 | ||||||
| Notes continued: | |||||||||||||||||||||||||||
| (4) Adjusted earnings from continuing operations and adjusted diluted<br> earnings per share represent net earnings and diluted earnings per share per the Condensed Consolidated Statements of Earnings net of<br> charges or credits for items to be highlighted for comparability purposes. These measures are not calculated based upon GAAP and should<br> not be considered as an alternative to net earnings or diluted earnings per share or as an indicator of the Company's operating performance.<br> However, this presentation is important to investors for understanding the operating results of the current portfolio of Enerpac Tool<br> Group companies. | |||||||||||||||||||||||||||
| For all reconciliations of GAAP measures to Non-GAAP measures, the summation of the individual components may not equal the total due to rounding. With respect to the earnings per share reconciliations the impact of share dilution on the calculation of the net earnings or loss per share and discontinued operations per share may result in the summation of these components not equaling the total earnings per share from continuing operations. | |||||||||||||||||||||||||||
| Enerpac Tool Group Corp. | |||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | |||||||||||||||||||||
| Supplemental Unaudited Data | |||||||||||||||||||||||||||
| Reconciliation of GAAP To Non-GAAP Guidance | |||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||
| Fiscal 2025 | |||||||||||||||||||||||||||
| Low | High | ||||||||||||||||||||||||||
| Reconciliation of Continuing Operations GAAP Operating Profit | |||||||||||||||||||||||||||
| To Adjusted EBITDA (5) | |||||||||||||||||||||||||||
| GAAP<br> Operating profit | $ | 135 | $ | 147 | |||||||||||||||||||||||
| Other expense, net | (1 | ) | (1 | ) | |||||||||||||||||||||||
| Depreciation & amortization | 16 | 14 | |||||||||||||||||||||||||
| Adjusted EBITDA | $ | 150 | $ | 160 | |||||||||||||||||||||||
| Reconciliation of GAAP Cash Flow From Operations to Free Cash Flow | |||||||||||||||||||||||||||
| Cash provided by operating activities | $ | 61 | $ | 76 | |||||||||||||||||||||||
| Capital expenditures | 24 | 19 | |||||||||||||||||||||||||
| Free Cash Flow | $ | 85 | $ | 95 | |||||||||||||||||||||||
| Notes continued: | |||||||||||||||||||||||||||
| (5) Management does not provide guidance on certain GAAP financial measures<br> as we are unable to predict and estimate with certainty items such as potential impairments, refinancing costs, business divestiture gains/losses,<br> discrete tax adjustments, or other items impacting GAAP financial metrics. As a result, we have included only those items about which<br> we are aware and are reasonably likely to occur during the guidance period covered. |
Contact: Travis Williams Senior Director, Investor Relations +1.262.293.1912