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): March 20, 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 March 20, 2024, Enerpac Tool Group Corp. (the “Company”) issued a press release announcing its results of operations for the three and six months ended February 29, 2024, 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 March 20, 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: March 20, 2024 | By: | /s/ James Denis |
| James Denis | ||
| Executive Vice President, General Counsel and Secretary |
EdgarFiling
EXHIBIT 99.1
Enerpac Tool Group Reports Second Quarter Fiscal 2024 Results andAffirms Full-Year Guidance
Second Quarter of Fiscal 2024 Continuing Operations Highlights^*^
- Net sales were $138 million, a 2% decline year-over-year, due to the disposition of Cortland Industrial
- Organic sales increased 2% year-over-year^*^^*^
- Gross margin expanded 200 basis points year-over-year to 51.6%
- Operating margin was 21.3% and adjusted operating margin was 22.8%
- Net earnings were $18 million, or $0.33 per share, and adjusted net earnings were $20 million, or $0.36 per share
- Adjusted EBITDA was $34 million, an increase of 6% year-over-year
- Adjusted EBITDA margin was 24.8%, an expansion of 210 basis points year-over-year
| ^*^This press release contains financial measures in accordance with U . S . Generally Accepted Accounting Principles (“GAAP”) in addition to non-GAAP financial measures . Reconciliations of the non-GAAP financial measures to the comparable GAAP measures are presented in the tables accompanying this release. |
|---|
| ^**^Organic sales , formerly referred to as c ore sales , represents net sales excluding the impact of foreign exchange rates, acquisitions , and divestitures. A r econciliation of o rganic sales to the comparable net sales is presented in the tables accompanying this release. |
MILWAUKEE, March 20, 2024 (GLOBE NEWSWIRE) -- Enerpac Tool Group Corp. (NYSE: EPAC) (the “Company” or “Enerpac”) today announced results for its fiscal second quarter ended February 29, 2024.
“Enerpac posted solid second quarter results despite the broader macro environment and an overall slowdown in the industrial sector,” said Paul Sternlieb, Enerpac Tool Group’s President & CEO. “We were particularly pleased with the margin expansion, as we made further progress improving operating efficiency and SG&A productivity. Moreover, we believe organic sales growth in our Industrial Tools & Services (IT&S) segment continues to outpace the market. Given our solid performance through the first half of fiscal 2024, we remain on track to achieve our full-year guidance and longer-term financial objectives.”
| Consolidated Results from Continuing Operations | |||
|---|---|---|---|
| (US in millions, except per share) | |||
| Six Months Ended | |||
| February<br> 28, <br>2023 | February<br> 29, <br>2024 | February<br> 28, <br>2023 | |
| Net Sales | $142.0 | $280.4 | $281.3 |
| Operating Profit | $14.0 | $58.2 | $26.3 |
| Adjusted Operating Profit | $28.7 | $64.0 | $51.8 |
| Net Earnings | $7.2 | $36.2 | $13.6 |
| Diluted EPS | $0.12 | $0.66 | $0.24 |
| Adjusted Diluted EPS | $0.35 | $0.76 | $0.65 |
| Adjusted EBITDA | $32.2 | $69.2 | $58.8 |
All values are in US Dollars.
Second Quarter Fiscal 2024 Consolidated Results Comparisons
Consolidated net sales for the second quarter of fiscal 2024 were $138.4 million compared to $142.0 million in the prior-year period, a decrease of 2.5%. Organic sales, excluding the disposition of Cortland Industrial and the impact of foreign currency, increased 1.8% year-over-year, with product sales up 2.4%, partially offset by a 0.8% service revenue decline. Net sales growth for the Industrial Tools & Services (IT&S) reportable segment of 3.0%, with organic sales growth of 2.8%, was partly offset by a year-over-year decline at Cortland Biomedical, which comprises the Other operating segment.
Gross margin expanded 200 basis points year-over-year to 51.6%, driven by benefits from pricing actions, a favorable sales mix, and the disposition of Cortland Industrial. Selling, general and administrative expenses of $41.1 million were $13.9 million lower year-over-year because of lower ASCEND transformation program expenses, lower restructuring charges, and a continued focus on managing discretionary spending. Adjusted SG&A was 28.4% of sales, down slightly from 28.5% of sales in the year-ago period.
Operating profit increased 111% year-over-year to $29.5 million, with an operating profit margin of 21.3%, up from 9.8% in the second quarter of fiscal 2023. Adjusted operating profit increased 9.7% to $31.5 million, with an adjusted operating margin of 22.8%, a 260 basis point expansion over the prior-year period.
Second quarter fiscal 2024 net earnings and diluted EPS were $17.9 million and $0.33, respectively, compared to $7.2 million and $0.12, respectively, in the year-ago period.
Second quarter adjusted EBITDA was $34.3 million compared to $32.2 million in the year-ago period, achieving an adjusted EBITDA margin of 24.8%, up from 22.7% in the second quarter of fiscal 2023.
Net cash provided by operating activities was $13.3 million for the second quarter of fiscal 2024 as compared to a use of $7.8 million in the prior-year period. The increase in cash from operations was primarily due to the timing of annual incentive compensation payments and lower ASCEND transformation payments as well as higher net earnings. In addition, the Company continues to drive improvements in working capital management and inventory efficiency.
| Industrial Tools & Service (IT&S) | |||
|---|---|---|---|
| (US in millions) | |||
| Six Months Ended | |||
| February<br> 28, <br>2023 | February<br> 29, <br>2024 | February<br> 28, <br>2023 | |
| Net Sales | $130.9 | $271.9 | $258.2 |
| Operating Profit | $30.4 | $73.0 | $57.1 |
| Operating Profit % | 23.3% | 26.8% | 22.1% |
| Adjusted Op Profit (1) | $34.8 | $77.4 | $63.9 |
| Adjusted Op Profit % (1) | 26.6% | 28.5% | 24.8% |
| (1) Excludes approximately 0.5 million<br> of restructuring charges and 1.0 million of ASCEND charges in the second quarter of fiscal 2024 as compared<br> to approximately 2.6 million of restructuring charges and 1.8 million of ASCEND charges in the second<br> quarter of fiscal 2023. The six months ended February 29, 2024 excludes approximately 2.6 million<br> of restructuring and 1.8 million of ASCEND charges in the second quarter of fiscal 2024 as compared to 3.5<br> million of restructuring charges and 3.3 million of ASCEND charges in the prior year period. |
All values are in US Dollars.
IT&S Results Comparisons
Second quarter fiscal 2024 net sales for IT&S were $134.8 million, ahead 3.0% year-over-year with organic growth of 2.8%. Organic growth was driven by pricing actions and favorable mix in product sales, partially offset by a slight decline in service. The segment’s operating profit margin increased 450 basis points to 27.8% and adjusted operating profit margin improved 230 basis points to 28.9%.
Corporate Expenses from Continuing Operations
Corporate expenses were $7.8 million and $17.6 million for the second quarter of fiscal 2024 and fiscal 2023, respectively. The year-over-year decline was driven by significantly lower ASCEND-related charges during the second quarter of fiscal 2024. Adjusted corporate expenses^(^^2)^ of $7.3 million for the second quarter of fiscal 2024 were flat compared to the prior year.
| ^(2)^Excludes a favorable restructuring charge s adjustment of $0.1 million and $0.6 million of ASCEND charges in the second quarter of fiscal 2024 compared to $0.4 million of restructuring charges, $9.5 million of ASCEND charges, $0.2 million of leadership transition charges , and $0.2 million of M&A charges in the second quarter of fiscal 2023. | |||
|---|---|---|---|
| Balance Sheet and Leverage | |||
| --- | --- | --- | --- |
| (US$ in millions) | February<br> 29, <br>2024 | November<br> 30, <br>2023 | February<br> 28, <br>2023 |
| Cash Balance | $153.7 | $148.0 | $124.7 |
| Debt Balance | $244.9 | $244.5 | $209.3 |
| Net Debt to Adjusted EBITDA^*^ | 0.7x | 0.9x | 0.9x |
| ^*^Calculated in accordance with the terms of the Company’s September 2022 Senior Credit Facility. |
Net debt on February 29, 2024, was $91.2 million, resulting in a net debt to adjusted EBITDA ratio of 0.7x. The Company repurchased approximately 139,000 shares of its common stock in the second quarter of fiscal 2024 for a total of $4.0 million under its share repurchase program announced in March 2022.
Outlook
“Through the first half of fiscal 2024, we achieved organic sales growth of 4% and an adjusted EBITDA margin of 24.7%, positioning Enerpac to achieve our full-year guidance and reach our targeted adjusted EBITDA margin of at least 25% in fiscal 2025.”
The Company affirms its fiscal 2024 guidance, projecting a net sales range of $590 million to $605 million. The forecast anticipates organic sales growth of approximately 2% to 4%, with adjusted EBITDA in the range of $142 million to $152 million, and free cash flow between $60 million to $70 million. This forecast is based on key foreign exchange rate assumptions and assumes the absence of a broad-based global recession. The key foreign exchange rates and other guidance assumptions are included in the presentation materials accompanying the earnings webcast.
Conference Call Information
An investor conference call is scheduled for 7:30 am CT on March 21, 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, the impact of geopolitical activity, including the invasion of Ukraine by Russia and international sanctions imposed in response thereto, as well as the armed conflict involving Hamas and Israel, 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 objectives related to the ASCEND program, including any assumptions underlying its calculation of expected incremental operating profit or program investment, operating margin risk due to competitive pricing and operating efficiencies, supply chain risk, 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, impairment of goodwill or other intangible assets, the Company’s ability to access capital markets and other risks and uncertainties that may be referred to or noted in the Company’s reports filed with the Securities and Exchange Commission from time to time, including those described in the Company’s Form 10-K for the fiscal year ended August 31, 2023 and most recent report on Form 10-Q. Enerpac Tool Group disclaims any obligation to publicly update or revise any forward-looking statements as a result of new information, future events or any other reason.
Non-GAAP Financial Information
This press release contains financial measures that are not measures presented in conformity with GAAP. These non-GAAP measures include organic sales, EBITDA from continuing operations, adjusted EBITDA from continuing operations, adjusted earnings from continuing operations, adjusted diluted earnings per share from continuing operations, adjusted operating profit from continuing operations, segment organic sales, adjusted operating profit and adjusted EBITDA, adjusted corporate expense, adjusted SG&A expense, free cash flow and net debt. This press release includes reconciliations of non-GAAP measures to the most comparable GAAP measure, included in the tables attached to this press release or in footnotes to the tables included in this press release. Management believes the non-GAAP measures presented in this press release are commonly used financial measures for investors to evaluate Enerpac Tool Group’s operating performance and financial position with respect to the periods presented and, when read in conjunction with the condensed consolidated financial statements, present a useful tool to evaluate ongoing operations and provide investors with metrics they can use to evaluate aspects of the Company’s performance from period to period. In addition, these are some of the financial metrics management uses in internal evaluations of the overall performance of the Company’s business. Management acknowledges that there are many items that impact a company’s reported results and the adjustments reflected in these non-GAAP measures are not intended to present all items that may have impacted these results. In addition, these non-GAAP measures are not necessarily comparable to similarly titled measures used by other companies.
About Enerpac Tool Group
Enerpac Tool Group Corp. is a premier industrial tools, services, technology, and solutions provider serving a broad and diverse set of customers and end markets for mission-critical applications in more than 100 countries. The Company makes complex, often hazardous jobs possible safely and efficiently. Enerpac Tool Group’s businesses are global leaders in high pressure hydraulic tools, controlled force products, and solutions for precise positioning of heavy loads that help customers safely and reliably tackle some of the most challenging jobs around the world. The Company was founded in 1910 and is headquartered in Menomonee Falls, Wisconsin. Enerpac Tool Group common stock trades on the NYSE under the symbol EPAC. For further information on Enerpac Tool Group and its businesses, visit the Company's website at www.enerpactoolgroup.com.
| Enerpac Tool Group Corp. | |||||||||||||||||||||||||||
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| Condensed Consolidated Balance Sheets | |||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||
| February 29, | August 31, | ||||||||||||||||||||||||||
| 2024 | 2023 | ||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||
| Current assets | |||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 153,693 | $ | 154,415 | |||||||||||||||||||||||
| Accounts receivable, net | 97,590 | 97,649 | |||||||||||||||||||||||||
| Inventories, net | 82,872 | 74,765 | |||||||||||||||||||||||||
| Other current assets | 33,150 | 28,811 | |||||||||||||||||||||||||
| Total current assets | 367,305 | 355,640 | |||||||||||||||||||||||||
| Property, plant and equipment, net | 36,963 | 38,968 | |||||||||||||||||||||||||
| Goodwill | 266,113 | 266,494 | |||||||||||||||||||||||||
| Other intangible assets, net | 36,856 | 37,338 | |||||||||||||||||||||||||
| Other long-term assets | 62,049 | 64,157 | |||||||||||||||||||||||||
| Total assets | $ | 769,286 | $ | 762,597 | |||||||||||||||||||||||
| Liabilities and Shareholders' Equity | |||||||||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||||||||
| Trade accounts payable | $ | 44,016 | $ | 50,483 | |||||||||||||||||||||||
| Accrued compensation and benefits | 20,452 | 33,194 | |||||||||||||||||||||||||
| Current maturities of long-term debt | 5,000 | 3,750 | |||||||||||||||||||||||||
| Income taxes payable | 4,060 | 3,771 | |||||||||||||||||||||||||
| Other current liabilities | 44,621 | 56,922 | |||||||||||||||||||||||||
| Total current liabilities | 118,149 | 148,120 | |||||||||||||||||||||||||
| Long-term debt, net | 239,920 | 210,337 | |||||||||||||||||||||||||
| Deferred income taxes | 6,644 | 5,667 | |||||||||||||||||||||||||
| Pension and postretirement benefit liabilities | 10,066 | 10,247 | |||||||||||||||||||||||||
| Other long-term liabilities | 57,581 | 61,606 | |||||||||||||||||||||||||
| Total liabilities | 432,360 | 435,977 | |||||||||||||||||||||||||
| Shareholders' equity | |||||||||||||||||||||||||||
| Capital stock | 10,851 | 16,752 | |||||||||||||||||||||||||
| Additional paid-in capital | 226,075 | 220,472 | |||||||||||||||||||||||||
| Treasury stock | - | (800,506 | ) | ||||||||||||||||||||||||
| Retained earnings | 222,047 | 1,011,112 | |||||||||||||||||||||||||
| Accumulated other comprehensive loss | (122,047 | ) | (121,210 | ) | |||||||||||||||||||||||
| Stock held in trust | (3,777 | ) | (3,484 | ) | |||||||||||||||||||||||
| Deferred compensation liability | 3,777 | 3,484 | |||||||||||||||||||||||||
| Total shareholders' equity | 336,926 | 326,620 | |||||||||||||||||||||||||
| Total liabilities and shareholders'<br> equity | $ | 769,286 | $ | 762,597 | |||||||||||||||||||||||
| Enerpac Tool Group Corp. | |||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||||||||
| Condensed Consolidated Statements of Earnings | |||||||||||||||||||||||||||
| (In thousands, except per share amounts) | |||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||
| February 29, | February 28, | February 29, | February 28, | ||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||
| Net sales | $ | 138,437 | $ | 141,960 | $ | 280,406 | $ | 281,342 | |||||||||||||||||||
| Cost of products sold | 66,962 | 71,593 | 134,681 | 143,069 | |||||||||||||||||||||||
| Gross profit | 71,475 | 70,367 | 145,725 | 138,273 | |||||||||||||||||||||||
| Selling, general and administrative expenses | 40,723 | 52,059 | 82,938 | 105,306 | |||||||||||||||||||||||
| Amortization of intangible assets | 833 | 1,349 | 1,657 | 2,717 | |||||||||||||||||||||||
| Restructuring charges | 398 | 2,987 | 2,799 | 3,969 | |||||||||||||||||||||||
| Impairment & divestiture charges | - | - | 147 | - | |||||||||||||||||||||||
| Operating profit | 29,521 | 13,972 | 58,184 | 26,281 | |||||||||||||||||||||||
| Financing costs, net | 3,711 | 3,105 | 7,408 | 5,920 | |||||||||||||||||||||||
| Other expense, net | 543 | 721 | 1,535 | 1,423 | |||||||||||||||||||||||
| Earnings before income tax expense | 25,267 | 10,146 | 49,241 | 18,938 | |||||||||||||||||||||||
| Income tax expense | 7,396 | 2,988 | 13,064 | 5,370 | |||||||||||||||||||||||
| Net earnings from continuing operations | 17,871 | 7,158 | 36,177 | 13,568 | |||||||||||||||||||||||
| Loss from discontinued operations, net<br> of income taxes | (54 | ) | (2,661 | ) | (622 | ) | (1,618 | ) | |||||||||||||||||||
| Net earnings | $ | 17,817 | $ | 4,497 | $ | 35,555 | $ | 11,950 | |||||||||||||||||||
| Earnings per share from continuing operations | |||||||||||||||||||||||||||
| Basic | $ | 0.33 | $ | 0.13 | $ | 0.67 | $ | 0.24 | |||||||||||||||||||
| Diluted | 0.33 | 0.12 | 0.66 | 0.24 | |||||||||||||||||||||||
| Loss per share from discontinued operations | |||||||||||||||||||||||||||
| Basic | $ | (0.00 | ) | $ | (0.05 | ) | $ | (0.01 | ) | $ | (0.03 | ) | |||||||||||||||
| Diluted | (0.00 | ) | (0.05 | ) | (0.01 | ) | (0.03 | ) | |||||||||||||||||||
| Earnings per share* | |||||||||||||||||||||||||||
| Basic | $ | 0.33 | $ | 0.08 | $ | 0.65 | $ | 0.21 | |||||||||||||||||||
| Diluted | 0.33 | 0.08 | 0.65 | 0.21 | |||||||||||||||||||||||
| Weighted average common shares outstanding | |||||||||||||||||||||||||||
| Basic | 54,213 | 57,042 | 54,370 | 56,964 | |||||||||||||||||||||||
| Diluted | 54,685 | 57,500 | 54,846 | 57,409 | |||||||||||||||||||||||
| *The total of earnings per share from continuing operations and loss (earnings) per share<br> from discontinued operations may not equal earnings per share due to rounding. | |||||||||||||||||||||||||||
| Enerpac Tool Group Corp. | |||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||||||||
| Condensed Consolidated Statements of Cash Flows | |||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||
| February 29, | February 28, | February 29, | February 28, | ||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||
| Operating Activities | |||||||||||||||||||||||||||
| Cash provided by (used in) operating activities - continuing<br> operations | $ | 15,982 | $ | (9,856 | ) | $ | 12,065 | $ | 7,959 | ||||||||||||||||||
| Cash (used in) provided by operating activities - discontinued<br> operations | (2,655 | ) | 2,100 | (5,413 | ) | 1,818 | |||||||||||||||||||||
| Cash provided by (used in) operating<br> activities | $ | 13,327 | $ | (7,756 | ) | $ | 6,652 | $ | 9,777 | ||||||||||||||||||
| Investing Activities | |||||||||||||||||||||||||||
| Capital expenditures | (1,585 | ) | (2,346 | ) | (3,152 | ) | (4,881 | ) | |||||||||||||||||||
| Purchase of business assets | (375 | ) | - | (1,402 | ) | - | |||||||||||||||||||||
| Working capital adjustment from the<br> sale of business assets | (1,133 | ) | - | (1,133 | ) | - | |||||||||||||||||||||
| Cash used in investing activities - continuing operations | $ | (3,093 | ) | $ | (2,346 | ) | $ | (5,687 | ) | $ | (4,881 | ) | |||||||||||||||
| Cash used in investing activities | $ | (3,093 | ) | $ | (2,346 | ) | $ | (5,687 | ) | $ | (4,881 | ) | |||||||||||||||
| Financing Activities | |||||||||||||||||||||||||||
| Borrowings on revolving credit facility | 9,000 | 20,000 | 48,000 | 41,000 | |||||||||||||||||||||||
| Principal repayments on revolving credit<br> facility | (8,000 | ) | (13,000 | ) | (16,000 | ) | (31,000 | ) | |||||||||||||||||||
| Principal repayments on term loan | (625 | ) | - | (1,250 | ) | - | |||||||||||||||||||||
| Proceeds from issuance of term loan | - | - | - | 200,000 | |||||||||||||||||||||||
| Payment for redemption of revolver | - | - | - | (200,000 | ) | ||||||||||||||||||||||
| Swingline borrowings/repayments, net | - | - | - | (4,000 | ) | ||||||||||||||||||||||
| Payment of debt issuance costs | - | (69 | ) | - | (2,486 | ) | |||||||||||||||||||||
| Purchase of treasury shares | (3,992 | ) | - | (30,108 | ) | - | |||||||||||||||||||||
| Stock options, taxes paid related to<br> the net share settlement of equity awards & other | (441 | ) | (1,456 | ) | (205 | ) | (1,453 | ) | |||||||||||||||||||
| Payment of cash dividend | - | - | (2,178 | ) | (2,274 | ) | |||||||||||||||||||||
| Cash (used in) provided by financing activities - continuing<br> operations | $ | (4,058 | ) | $ | 5,475 | $ | (1,741 | ) | $ | (213 | ) | ||||||||||||||||
| Cash (used in) provided by financing<br> activities | $ | (4,058 | ) | $ | 5,475 | $ | (1,741 | ) | $ | (213 | ) | ||||||||||||||||
| Effect of exchange rate changes on cash | (439 | ) | 47 | 54 | (719 | ) | |||||||||||||||||||||
| Net increase (decrease) from cash and cash equivalents | $ | 5,737 | $ | (4,580 | ) | $ | (722 | ) | $ | 3,964 | |||||||||||||||||
| Cash and cash equivalents - beginning of period | 147,956 | 129,243 | 154,415 | 120,699 | |||||||||||||||||||||||
| Cash and cash equivalents - end of period | $ | 153,693 | $ | 124,663 | $ | 153,693 | $ | 124,663 | |||||||||||||||||||
| Enerpac Tool Group Corp. | |||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Supplemental Unaudited Data | |||||||||||||||||||||||||||
| Reconciliation of GAAP Measures to Non-GAAP<br> Measures for Continuing Operations | |||||||||||||||||||||||||||
| (In thousands) | Fiscal 2024 | ||||||||||||||||||||||||||
| Q2 | Q3 | Q4 | TOTAL | Q1 | Q2 | Q3 | Q4 | TOTAL | |||||||||||||||||||
| Net Sales | |||||||||||||||||||||||||||
| Industrial<br> Tools & Services Segment | 127,297 | $ | 130,904 | $ | 144,126 | $ | 152,851 | $ | 555,178 | $ | 137,035 | $ | 134,822 | $ | - | $ | - | $ | 271,856 | ||||||||
| Other | 12,085 | 11,056 | 12,127 | 7,758 | 43,026 | 4,935 | 3,615 | - | - | 8,550 | |||||||||||||||||
| Enerpac Tool Group | 139,382 | $ | 141,960 | $ | 156,253 | $ | 160,609 | $ | 598,204 | $ | 141,970 | $ | 138,437 | $ | - | $ | - | $ | 280,406 | ||||||||
| % Net Sales Growth (Decline) | |||||||||||||||||||||||||||
| Industrial Tools & Services Segment | 5 | % | 4 | % | 3 | % | 9 | % | 5 | % | 8 | % | 3 | % | - | - | 5 | % | |||||||||
| Other | 26 | % | 4 | % | 5 | % | -36 | % | -2 | % | -59 | % | -67 | % | - | - | -63 | % | |||||||||
| Enerpac Tool Group | 6 | % | 4 | % | 3 | % | 6 | % | 5 | % | 2 | % | -2 | % | - | - | -0 | % | |||||||||
| Adjusted Selling, general and administrative<br> expenses | |||||||||||||||||||||||||||
| Selling, general and administrative<br> expenses | 53,247 | $ | 52,059 | $ | 48,809 | $ | 50,949 | $ | 205,063 | $ | 42,216 | $ | 40,723 | $ | - | $ | - | $ | 82,938 | ||||||||
| Leadership transition charges | (400 | ) | (202 | ) | (90 | ) | (90 | ) | (783 | ) | - | - | - | - | - | ||||||||||||
| M&A charges | - | (196 | ) | (166 | ) | (653 | ) | (1,015 | ) | - | - | - | - | - | |||||||||||||
| ASCEND transformation program charges | (9,382 | ) | (11,197 | ) | (5,536 | ) | (8,381 | ) | (34,495 | ) | (1,093 | ) | (1,370 | ) | - | - | (2,463 | ) | |||||||||
| Adjusted Selling, general and administrative<br> expenses | 43,465 | $ | 40,464 | $ | 43,017 | $ | 41,825 | $ | 168,770 | $ | 41,123 | $ | 39,353 | $ | - | $ | - | $ | 80,475 | ||||||||
| Adjusted Selling, general and administrative<br> expenses % | |||||||||||||||||||||||||||
| Enerpac Tool Group | 31.2 | % | 28.5 | % | 27.5 | % | 26.0 | % | 28.2 | % | 29.0 | % | 28.4 | % | - | - | 28.7 | % | |||||||||
| Adjusted Operating profit | |||||||||||||||||||||||||||
| Operating profit | 12,309 | $ | 13,972 | $ | 25,439 | $ | 32,202 | $ | 83,922 | $ | 28,662 | $ | 29,521 | $ | - | $ | - | $ | 58,184 | ||||||||
| Impairment & divestiture (benefit)<br> charges | - | - | - | (6,155 | ) | (6,155 | ) | 147 | - | - | - | 147 | |||||||||||||||
| Restructuring charges (1) | 982 | 2,987 | 2,252 | 1,461 | 7,681 | 2,401 | 398 | - | - | 2,799 | |||||||||||||||||
| Leadership transition charges | 400 | 202 | 90 | 90 | 783 | - | - | - | - | - | |||||||||||||||||
| M&A charges | - | 196 | 166 | 653 | 1,015 | - | - | - | - | - | |||||||||||||||||
| ASCEND transformation program charges | 9,419 | 11,372 | 5,947 | 8,681 | 35,419 | 1,229 | 1,607 | - | - | 2,837 | |||||||||||||||||
| Adjusted operating profit | 23,110 | $ | 28,729 | $ | 33,894 | $ | 36,932 | $ | 122,665 | $ | 32,439 | $ | 31,526 | $ | - | $ | - | $ | 63,967 | ||||||||
| Adjusted Operating Profit by Segment | |||||||||||||||||||||||||||
| Industrial Tools & Services Segment | 29,099 | $ | 34,836 | $ | 39,814 | $ | 45,269 | $ | 149,019 | $ | 38,470 | $ | 38,909 | $ | - | $ | - | $ | 77,379 | ||||||||
| Other | 1,424 | 1,156 | 1,965 | 254 | 4,799 | 2,118 | (79 | ) | - | - | 2,039 | ||||||||||||||||
| Corporate / General | (7,413 | ) | (7,263 | ) | (7,885 | ) | (8,591 | ) | (31,153 | ) | (8,149 | ) | (7,304 | ) | - | - | (15,451 | ) | |||||||||
| Adjusted operating profit | 23,110 | $ | 28,729 | $ | 33,894 | $ | 36,932 | $ | 122,665 | $ | 32,439 | $ | 31,526 | $ | - | $ | - | $ | 63,967 | ||||||||
| Adjusted Operating Profit % by Segment | |||||||||||||||||||||||||||
| Industrial Tools & Services Segment | 22.9 | % | 26.6 | % | 27.6 | % | 29.6 | % | 26.8 | % | 28.1 | % | 28.9 | % | - | - | 28.5 | % | |||||||||
| Other | 11.8 | % | 10.5 | % | 16.2 | % | 3.3 | % | 11.2 | % | 42.9 | % | -2.2 | % | - | - | 23.8 | % | |||||||||
| Adjusted Operating Profit % | 16.6 | % | 20.2 | % | 21.7 | % | 23.0 | % | 20.5 | % | 22.8 | % | 22.8 | % | - | - | 22.8 | % | |||||||||
| EBITDA from Continuing Operations (2) | |||||||||||||||||||||||||||
| Net earnings from continuing operations | 6,409 | $ | 7,158 | $ | 16,976 | $ | 23,105 | $ | 53,649 | $ | 18,305 | $ | 17,871 | $ | - | $ | - | $ | 36,177 | ||||||||
| Financing costs, net | 2,815 | 3,105 | 3,250 | 3,219 | 12,389 | 3,697 | 3,711 | - | - | 7,408 | |||||||||||||||||
| Income tax expense | 2,383 | 2,988 | 4,688 | 5,190 | 15,249 | 5,669 | 7,396 | - | - | 13,064 | |||||||||||||||||
| Depreciation & amortization | 4,193 | 4,226 | 4,084 | 3,810 | 16,313 | 3,426 | 3,328 | - | - | 6,754 | |||||||||||||||||
| EBITDA | 15,800 | $ | 17,477 | $ | 28,998 | $ | 35,324 | $ | 97,600 | $ | 31,097 | $ | 32,306 | $ | - | $ | - | $ | 63,403 | ||||||||
| Adjusted EBITDA from Continuing Operations<br> (2) | |||||||||||||||||||||||||||
| EBITDA | 15,800 | $ | 17,477 | $ | 28,998 | $ | 35,324 | $ | 97,600 | $ | 31,097 | $ | 32,306 | $ | - | $ | - | $ | 63,403 | ||||||||
| Impairment & divestiture (benefit)<br> charges | - | - | - | (6,155 | ) | (6,155 | ) | 147 | - | - | - | 147 | |||||||||||||||
| Restructuring charges (1) | 982 | 2,987 | 2,252 | 1,461 | 7,681 | 2,401 | 398 | - | - | 2,799 | |||||||||||||||||
| Leadership transition charges | 400 | 202 | 90 | 90 | 783 | - | - | - | - | - | |||||||||||||||||
| M&A charges | - | 196 | 166 | 653 | 1,015 | - | - | - | - | - | |||||||||||||||||
| ASCEND transformation program charges | 9,419 | 11,372 | 5,947 | 8,681 | 35,419 | 1,229 | 1,607 | - | - | 2,837 | |||||||||||||||||
| Adjusted EBITDA | 26,601 | $ | 32,234 | $ | 37,453 | $ | 40,054 | $ | 136,343 | $ | 34,874 | $ | 34,311 | $ | - | $ | - | $ | 69,186 | ||||||||
| Adjusted EBITDA by Segment | |||||||||||||||||||||||||||
| Industrial Tools & Services Segment | 31,698 | $ | 37,458 | $ | 42,525 | $ | 47,952 | $ | 159,633 | $ | 40,880 | $ | 41,443 | $ | - | $ | - | $ | 82,323 | ||||||||
| Other | 2,316 | 2,050 | 2,855 | 739 | 7,961 | 2,324 | 141 | - | - | 2,466 | |||||||||||||||||
| Corporate / General | (7,413 | ) | (7,274 | ) | (7,927 | ) | (8,637 | ) | (31,251 | ) | (8,330 | ) | (7,273 | ) | - | - | (15,603 | ) | |||||||||
| Adjusted EBITDA | 26,601 | $ | 32,234 | $ | 37,453 | $ | 40,054 | $ | 136,343 | $ | 34,874 | $ | 34,311 | $ | - | $ | - | $ | 69,186 | ||||||||
| Adjusted EBITDA % by Segment | |||||||||||||||||||||||||||
| Industrial Tools & Services Segment | 24.9 | % | 28.6 | % | 29.5 | % | 31.4 | % | 28.8 | % | 29.8 | % | 30.7 | % | - | - | 30.3 | % | |||||||||
| Other | 19.2 | % | 18.5 | % | 23.5 | % | 9.5 | % | 18.5 | % | 47.1 | % | 3.9 | % | - | - | 28.8 | % | |||||||||
| Adjusted EBITDA % | 19.1 | % | 22.7 | % | 24.0 | % | 24.9 | % | 22.8 | % | 24.6 | % | 24.8 | % | - | - | 24.7 | % | |||||||||
| Notes: | |||||||||||||||||||||||||||
| (1) Approximately 0.6 million of the Q4 fiscal<br> 2023 restructuring charges were recorded in cost of products sold. | |||||||||||||||||||||||||||
| (2) EBITDA represents net earnings from continuing<br> operations before financing costs, net, income tax expense, and depreciation & amortization. Neither EBITDA nor adjusted EBITDA are<br> calculated based upon generally accepted accounting principles ("GAAP"). The amounts included in the EBITDA and adjusted EBITDA calculation,<br> however, are derived from amounts included in the Condensed Consolidated Statements of Earnings. EBITDA and adjusted EBITDA should not<br> be considered as alternatives to net earnings, operating profit or operating cash flows. The Company has presented EBITDA and adjusted<br> EBITDA because it regularly reviews these performance measures. In addition, EBITDA and adjusted EBITDA are used by many of our investors<br> and lenders, and are presented as a convenience to them. The EBITDA and adjusted EBITDA measures presented may not always be comparable<br> to similarly 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 2023 | Fiscal 2024 | ||||||||||||||||||||||||||
| Q1 | Q2 | TOTAL | Q1 | Q2 | TOTAL | |||||||||||||||||||||||
| Net Sales by Segment | ||||||||||||||||||||||||||||
| Industrial Tools &<br> Services Segment | $ | 127,297 | $ | 130,904 | $ | 258,201 | $ | 137,035 | $ | 134,822 | $ | 271,856 | ||||||||||||||||
| Other | 12,085 | 11,056 | 23,141 | 4,935 | 3,615 | 8,550 | ||||||||||||||||||||||
| Enerpac Tool Group | $ | 139,382 | $ | 141,960 | $ | 281,342 | $ | 141,970 | $ | 138,437 | $ | 280,406 | ||||||||||||||||
| Adjustment: Fx Impact on Net Sales | ||||||||||||||||||||||||||||
| Industrial Tools & Services Segment | $ | 2,262 | $ | 294 | $ | 2,556 | $ | - | $ | - | $ | - | ||||||||||||||||
| Other | - | - | - | - | - | - | ||||||||||||||||||||||
| Enerpac Tool Group | $ | 2,262 | $ | 294 | $ | 2,556 | $ | - | $ | - | $ | - | ||||||||||||||||
| Adjustment: Impact from Divestitures or Acquisitions on Net Sales | ||||||||||||||||||||||||||||
| Industrial Tools & Services Segment | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
| Other | (7,031 | ) | (6,220 | ) | (13,251 | ) | - | - | - | |||||||||||||||||||
| Enerpac Tool Group | $ | (7,031 | ) | $ | (6,220 | ) | $ | (13,251 | ) | $ | - | $ | - | $ | - | |||||||||||||
| Organic Sales by Segment (3) | ||||||||||||||||||||||||||||
| Industrial Tools & Services Segment | $ | 129,559 | $ | 131,198 | $ | 260,757 | $ | 137,035 | $ | 134,822 | $ | 271,856 | ||||||||||||||||
| Other | 5,054 | 4,836 | 9,890 | 4,935 | 3,615 | 8,550 | ||||||||||||||||||||||
| Enerpac Tool Group | $ | 134,613 | $ | 136,034 | $ | 270,647 | $ | 141,970 | $ | 138,437 | $ | 280,406 | ||||||||||||||||
| Organic Sales Growth (Decline) % | ||||||||||||||||||||||||||||
| Industrial Tools & Services Segment | 5.8 | % | 2.8 | % | 4.3 | % | ||||||||||||||||||||||
| Other | -2.4 | % | -25.2 | % | -13.5 | % | ||||||||||||||||||||||
| Enerpac Tool Group | 5.5 | % | 1.8 | % | 3.6 | % | ||||||||||||||||||||||
| Net Sales by Product Line | ||||||||||||||||||||||||||||
| Product | $ | 111,002 | $ | 115,251 | $ | 226,254 | $ | 109,856 | $ | 111,557 | $ | 221,412 | ||||||||||||||||
| Service | 28,380 | 26,709 | 55,088 | 32,114 | 26,880 | 58,994 | ||||||||||||||||||||||
| Enerpac Tool Group | $ | 139,382 | $ | 141,960 | $ | 281,342 | $ | 141,970 | $ | 138,437 | $ | 280,406 | ||||||||||||||||
| Adjustment: Fx Impact on Net Sales | ||||||||||||||||||||||||||||
| Product | $ | 1,481 | $ | (90 | ) | $ | 1,391 | $ | - | $ | - | $ | - | |||||||||||||||
| Service | 781 | 384 | 1,165 | - | - | - | ||||||||||||||||||||||
| Enerpac Tool Group | $ | 2,262 | $ | 294 | $ | 2,556 | $ | - | $ | - | $ | - | ||||||||||||||||
| Adjustment: Impact from Divestitures or Acquisitions on Net Sales | ||||||||||||||||||||||||||||
| Product | (7,031 | ) | (6,220 | ) | (13,251 | ) | - | - | - | |||||||||||||||||||
| Service | - | - | - | - | - | - | ||||||||||||||||||||||
| Enerpac Tool Group | $ | (7,031 | ) | $ | (6,220 | ) | $ | (13,251 | ) | $ | - | $ | - | $ | - | |||||||||||||
| Organic Sales by Product Line (3) | ||||||||||||||||||||||||||||
| Product | $ | 105,452 | $ | 108,941 | $ | 214,394 | $ | 109,856 | $ | 111,557 | $ | 221,412 | ||||||||||||||||
| Service | 29,161 | 27,093 | 56,253 | 32,114 | 26,880 | 58,994 | ||||||||||||||||||||||
| Enerpac Tool Group | $ | 134,613 | $ | 136,034 | $ | 270,647 | $ | 141,970 | $ | 138,437 | $ | 280,406 | ||||||||||||||||
| Organic Sales Growth (Decline) % | ||||||||||||||||||||||||||||
| Product | 4.2 | % | 2.4 | % | 3.3 | % | ||||||||||||||||||||||
| Service | 10.1 | % | -0.8 | % | 4.9 | % | ||||||||||||||||||||||
| Enerpac Tool Group | 5.5 | % | 1.8 | % | 3.6 | % | ||||||||||||||||||||||
| (3) Organic Sales (formerly referred to as "core sales") is defined as<br> sales excluding the impact to foreign currency changes and the impact from recent acquisitions and divestitures to net sales | ||||||||||||||||||||||||||||
| Enerpac Tool Group Corp. | ||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Supplemental Unaudited Data | ||||||||||||||||||||||||||||
| Reconciliation of GAAP Measures to Non-GAAP Measures (Continued) | ||||||||||||||||||||||||||||
| (In thousands, except for per share amounts) | ||||||||||||||||||||||||||||
| Fiscal 2023 | Fiscal 2024 | |||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | TOTAL | Q1 | Q2 | Q3 | Q4 | TOTAL | |||||||||||||||||||
| Adjusted Earnings (4) | ||||||||||||||||||||||||||||
| Net<br> Earnings | $ | 7,453 | $ | 4,497 | $ | 12,380 | $ | 22,231 | $ | 46,561 | $ | 17,738 | $ | 17,817 | $ | - | $ | - | $ | 35,555 | ||||||||
| Earnings (loss) from Discontinued Operations,<br> net of income tax | 1,044 | (2,661 | ) | (4,596 | ) | (874 | ) | (7,088 | ) | (567 | ) | (54 | ) | - | - | (622 | ) | |||||||||||
| Net Earnings from Continuing Operations | $ | 6,409 | $ | 7,158 | $ | 16,976 | $ | 23,105 | $ | 53,649 | $ | 18,305 | $ | 17,871 | $ | - | $ | - | $ | 36,177 | ||||||||
| Impairment & divestiture (benefit)<br> charges | - | - | - | (6,155 | ) | (6,155 | ) | 147 | - | - | - | 147 | ||||||||||||||||
| Restructuring charges (1) | 982 | 2,987 | 2,252 | 1,461 | 7,681 | 2,401 | 398 | - | - | 2,799 | ||||||||||||||||||
| Leadership transition charges | 400 | 202 | 90 | 90 | 783 | - | - | - | - | - | ||||||||||||||||||
| M&A charges | - | 196 | 166 | 653 | 1,015 | - | - | - | - | - | ||||||||||||||||||
| ASCEND transformation program charges | 9,419 | 11,372 | 5,947 | 8,681 | 35,419 | 1,229 | 1,607 | - | - | 2,837 | ||||||||||||||||||
| Accelerated debt issuance costs | 317 | - | - | - | 317 | - | - | - | - | - | ||||||||||||||||||
| Net tax effect of reconciling items<br> above | (719 | ) | (1,652 | ) | (3,197 | ) | (4,408 | ) | (9,976 | ) | (411 | ) | (185 | ) | - | - | (596 | ) | ||||||||||
| Other income tax expense | - | 144 | - | - | 144 | - | 137 | - | - | 137 | ||||||||||||||||||
| Adjusted Net Earnings from Continuing Operations | $ | 16,808 | $ | 20,407 | $ | 22,234 | $ | 23,427 | $ | 82,877 | $ | 21,671 | $ | 19,828 | $ | - | $ | - | $ | 41,501 | ||||||||
| Adjusted Diluted Earnings per share (4) | ||||||||||||||||||||||||||||
| Net Earnings | $ | 0.13 | $ | 0.08 | $ | 0.22 | $ | 0.40 | $ | 0.82 | $ | 0.32 | $ | 0.33 | $ | - | $ | - | $ | 0.65 | ||||||||
| Earnings (loss) from Discontinued Operations,<br> net of income tax | 0.02 | (0.05 | ) | (0.08 | ) | (0.02 | ) | (0.12 | ) | (0.01 | ) | (0.00 | ) | - | - | (0.01 | ) | |||||||||||
| Net Earnings from Continuing Operations | $ | 0.11 | $ | 0.12 | $ | 0.30 | $ | 0.41 | $ | 0.94 | $ | 0.33 | $ | 0.33 | $ | - | $ | - | $ | 0.66 | ||||||||
| Impairment & divestiture (benefit)<br> charges, net of tax effect | - | - | - | (0.11 | ) | (0.11 | ) | 0.00 | - | - | - | 0.00 | ||||||||||||||||
| Restructuring charges (1), net of tax<br> effect | 0.02 | 0.05 | 0.03 | 0.01 | 0.11 | 0.04 | 0.00 | - | - | 0.04 | ||||||||||||||||||
| Leadership transition charges, net of<br> tax effect | 0.01 | 0.00 | 0.00 | 0.00 | 0.01 | - | - | - | - | - | ||||||||||||||||||
| M&A charges, net of tax effect | - | 0.00 | 0.00 | 0.01 | 0.01 | - | - | - | - | - | ||||||||||||||||||
| ASCEND transformation program charges,<br> net of tax effect | 0.15 | 0.17 | 0.06 | 0.10 | 0.48 | 0.02 | 0.03 | - | - | 0.05 | ||||||||||||||||||
| Accelerated debt issuance costs, net<br> of tax effect | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | - | - | - | - | - | ||||||||||||||||||
| Other income tax expense | - | 0.00 | - | - | - | - | 0.00 | - | - | 0.00 | ||||||||||||||||||
| Adjusted Diluted Earnings per share from Continuing Operations | $ | 0.29 | $ | 0.35 | $ | 0.39 | $ | 0.42 | $ | 1.45 | $ | 0.39 | $ | 0.36 | $ | - | $ | - | $ | 0.76 | ||||||||
| Free Cash Flow | ||||||||||||||||||||||||||||
| Cash provided by (used in) operating<br> activities | $ | 17,533 | $ | (7,756 | ) | $ | 17,254 | $ | 50,572 | $ | 77,603 | $ | (6,675 | ) | $ | 13,327 | $ | - | $ | - | $ | 6,652 | ||||||
| Capital expenditures | (2,535 | ) | (2,346 | ) | (2,915 | ) | (919 | ) | (8,715 | ) | (1,567 | ) | (1,585 | ) | - | - | (3,152 | ) | ||||||||||
| Free Cash Flow | $ | 14,998 | $ | (10,102 | ) | $ | 14,339 | $ | 49,653 | $ | 68,888 | $ | (8,242 | ) | $ | 11,742 | $ | - | $ | - | $ | 3,500 | ||||||
| Notes continued: | ||||||||||||||||||||||||||||
| (4) Adjusted earnings from continuing operations<br> and adjusted diluted earnings per share represent net earnings and diluted earnings per share per the Condensed Consolidated Statements<br> of Earnings net of charges or credits for items to be highlighted for comparability purposes. These measures are not calculated based<br> upon GAAP and should not be considered as an alternative to net earnings or diluted earnings per share or as an indicator of the Company's<br> operating performance. However, this presentation is important to investors for understanding the operating results of the current portfolio<br> of Enerpac Tool 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 2024 | ||||||||||||||||||||||||||||
| Low | High | |||||||||||||||||||||||||||
| Reconciliation of Continued Operations GAAP Operating Profit | ||||||||||||||||||||||||||||
| To Adjusted EBITDA (5) | ||||||||||||||||||||||||||||
| GAAP<br> Operating profit | $ | 113 | $ | 130 | ||||||||||||||||||||||||
| ASCEND transformation program charges | 10 | 7 | ||||||||||||||||||||||||||
| Restructuring charges | 5 | 3 | ||||||||||||||||||||||||||
| Adjusted operating profit | $ | 128 | $ | 140 | ||||||||||||||||||||||||
| Other expense, net | (1 | ) | (1 | ) | ||||||||||||||||||||||||
| Depreciation & amortization | 15 | 13 | ||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 142 | $ | 152 | ||||||||||||||||||||||||
| Reconciliation of GAAP Cash Flow From Operations to Free Cash Flow | ||||||||||||||||||||||||||||
| Cash provided by operating activities | $ | 72 | $ | 87 | ||||||||||||||||||||||||
| Capital expenditures | (12 | ) | (17 | ) | ||||||||||||||||||||||||
| Free Cash Flow Guidance | $ | 60 | $ | 70 | ||||||||||||||||||||||||
| Notes continued: | ||||||||||||||||||||||||||||
| (5) Management does not provide guidance on GAAP<br> financial measures as we are unable to predict and estimate with certainty items such as potential impairments, refinancing costs, business<br> divestiture gains/losses, discrete tax adjustments, or other items impacting GAAP financial metrics. As a result, we have included above<br> only those items about which we are aware and are reasonably likely to occur during the guidance period covered. |