Fiscal 2012 Second Quarter E arnings Earnings March 21, 2012

Transcription

1 Fiscal 2012 Second Quarter Earnings March 21, 2012

2 Safe Harbor Statements in this presentation that are not historical are considered forward-looking statements and are subject to change based on various factors and uncertainties that may cause actual results to differ significantly from expectations. Those factors are contained in Actuant s Securities and Exchange Commission filings. All estimates of future performance are as of March 21, In this presentation certain non-gaap financial measures may be used. Please see the supplemental financial schedules at the end of this presentation, accompanying the Q2 Fiscal 2012 earnings press release, or refer to the Investors section of Actuant s website ( ant com) for a reconciliation to the appropriate GAAP measure. 2

3 Second Quarter Highlights Delivered record second quarter EPS of $0.43, a year-over-year increase of 43% Core growth of 8%, up from 7% in Q1 with double digit core growth in three of four segments Year-over-year operating profit margin expansion of 190 basis points Completed Jeyco acquisition, tuck-in to Cortland platform in geographically significant Southeast Asia TTM snapshot: Sales: $1.57 Billion EBITDA: $274 Million EPS: $1.94 Free Cash Flow: $198 Million 3

4 Second Quarter Operating Results (US$ in millions except EPS) F' 2011 F' 2012 Change Sales $331 $378 14% Operating Profit $37 $49 33% 11.2% 13.1% 190 bps Adjusted EPS (1) $0.30 $ % Operating Results Above Expectations - Strong Core Sales Growth and Margin Expansion (1) From continuing operations 4

5 Core Sales Growth Sales (US$ in millions) $450 Year-over-Year Core Sales Rate of Change 25% $400 17% 18% 20% 14% 13% 14% 15% $350 10% 7% 8% 10% $300 5% 0% $250-3% -5% $200 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Sequential ential Acceleration of Year-Over-Year er Core Sales Growth to 8% -10% 5

6 Operating Profit Margin Improvement Trend (basis points) Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Nine Consecutive Quarters of Year-Over-Year Improvement Operating profit margin excluding restructuring in fiscal

7 Industrial Segment Continued solid year-over-year core sales growth with broad based strength across markets and geographies Traction with vertical market strategies and new products Strong IS quoting/orders Financial Snapshot (US$ in millions) 2nd Quarter y-o-y change Sales $98 $89 11% Op Income $26.7 $ % Op Margin 27.1% 22.7% 440 bps Year-over-year operating margins expanded reflecting higher volumes Sales Sales Trend Core Sales Change $120 40% 33% $100 30% 20% 22% 23% 19% 20% $80 15% 13% 11% 10% $60 0% $40-7% Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q % 7

8 Energy Segment Solid growth in both maintenance and capital projects across breadth of served markets Nuclear maintenance activity in North America particularly robust Margin improvement on higher volumes, benefit of earn out provision adjustment Sales $90 Financial Snapshot (US$ in millions) 2nd Quarter y-o-y change Sales $79 $62 28% Op Income $11.6 $6.8 71% Op Margin 14.7% 11.0% 370 bps Sales Trend Core Sales Change 40% 27% $80 28% 30% 22% $70 20% 12% $60 4% 5% 10% $50 0% $40-14% -11% -7% -10% $30 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q % 8

9 Electrical Segment Strong 14% core sales growth due to higher retail, utility, marine aftermarket and industrial demand; also pricing Mastervolt sales essentially flat with prior year s partial quarter Margin improvement on higher volume partially offset by plant closure costs Sales $90 Financial Snapshot (US$ in millions) 2nd Quarter y-o-y change Sales $77 $70 10% Op Income $5.8 $4.9 17% Op Margin 7.5% 7.0% 50 bps Sales Trend Core Sales Change 20% $80 14% 15% $70 9% 7% 10% $60 7% 5% 2% 3% $50-2% 0% 0% $40-5% $30-9% Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q % 9

10 Engineered Solutions Segment Year-over-year core sales decline of 9% on expected lower European/China truck production and decline in automotive volumes Financial Snapshot (US$ in millions) 2nd Quarter automotive volumes Agriculture, NA truck and construction equipment demand remains solid Margins reflect lower volumes partially offset by acquisition mix Sales y-o-y change change Sales $124 $110 12% Op Income $13.3 $13.4-1% Op Margin 10.7% 12.2% (150) bps Sales Trend Core Sales Change $150 43% 50% $130 37% 40% 22% 25% 30% $110 20% $90 16% 9% 10% -2% 0% 0% $70-9% -10% $50 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q % 10

11 Momentum and Execution Drive Results F' 2010 F' 2011 F' 2012 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Core Sales Growth -21% -3% +17% +18% +14% +13% +14% +10% +7% +8% Op.Profit Margin Growth (1) (450) Diluted EPS Growth (2) -53% +91% +59% +82% +71% +43% +46% +61% +39% +43% (1) Year-over-year basis point change from continuing i operations, excluding fiscal 2010 restructuring t charges. First Half Core Decline / Second Half Improvement (2) Year-over-year change from continuing operations, excluding fiscal 2010 restructuring charges and income tax adjustments. 11

12 Second Quarter Cash Flow / Net Debt (US$ in millions) Free Cash Flow Net Debt Reconciliation EBITDA $63 Net Debt - Nov 30, 2011 $482 Capital Expenditures (5) Acquisitions 19 PP&E Divested 2 Free Cash Flow (33) Cash Interest (11) FX/Other (1) Cash Taxes (8) Net Debt - Feb 29, 2012 $467 Working Capital/Other (8) Net Debt/EBITDA (1) 16X 1.6X Free Cash Flow $33 Net Debt/Capitalization 33% (1) Pro forma to include a full LTM of EBITDA for acquired businesses Strong Free Cash Flow Generation in Seasonally Weak Quarter 12

13 Jeyco Acquisition - Snapshot Headquarters: Financials: Offering: Served Markets: Rope Applications Perth, Australia Annual Revenue ~$20M Mooring, rigging & towing design, sale and rental. Rope and related products. Oil & Gas (>50%); marine, mining, defense Stingray Anchor Key Attributes Complementary products and services with Cortland, Selantic and Enerpac Integrated Solutions (ropes, slings, mooring, anchors, etc.) Energy/Cortland globalization: Asia Pacific growth opportunities Mooring Design and Installation Mining Bog Strops Cyclone Mooring Australia is key growth area for global energy and mining markets which are Actuant t focused growth markets Gorgon and other LNG fields provide opportunity to leverage increased shipping i activity it and mooring requirements in the region Strong management team with significant technical expertise 13

14 Cortland Opportunities Jeyco is 2 nd tuck-in to Cortland platform Serves diverse and growing global end markets Growth strategies Migration from wire rope to synthetic System sell with slings, anchors, etc. Enerpac IS leverage 14

15 Energy - Platform for Growth Aero/Other Sales Energy Financial Performance (US $ in millions) EBITDA (1) Petrochem Power Gen Nuclear Refineries Offshore $350 $300 $250 $200 $150 $110 $160 $212 $259 $236 $293 $320 $75 $60 $45 $30 Capital Related Projects $100 $50 $0 $ TTM $15 $0 (1) Excluding restructuring charges Asia Brazil, Africa, Other North Sea Norway NA Non Energy Acquisition and Integration Track Record Other Europe NA Power Gen/Aero/ / Petrochem NA O&G Middle East Caspian 15

16 Fiscal 2012 Outlook (US$ in millions except EPS, continuing ops) Full Year E Change Sales $1,445 $1,600-1, % Diluted EPS $1.68 $ % 3rd Quarter E Change Sales $393 $ % Diluted EPS $0.51 $ % Full Year Assumptions: Full year core sales growth of 5-8% Industrial +8 to 10% Energy +15 to 20% Electrical +5 to 10% Engineered Solutions down 3-6% Key FX assumptions ~$1.30/1 and ~ $1.55/1 Margin expansion of ~100 basis points ~ 23% effective tax rate Excludes future acquisitions, share repurchases 2012 Free Cash Flow Forecast of $ Million 16

17 Q & A Future Key Dates: Third Quarter Fiscal 2012 Earnings June 20, Annual Investor Day Tentative October 3, 2012

18 Appendix

19 Reconciliation of Non-GAAP Measures (US$ in millions except EPS) EBITDA Q2 Q Net Earnings $7.9 $32.2 Net Financing Costs $8.2 $7.8 Income Tax Expense $6.2 $9.6 Depreciation & Amortization $12.9 $13.1 Discontinued Operations $14.2 $0.0 Adjusted EBITDA $49.4 $62.7 Free Cash Flow Q2 Q Cash From Operations $13.8 $31.5 Capital Expenditures ($4.2) ($4.8) PP&E Divestitures $0.2 $1.9 Other $1.4 $4.6 Free Cash Flow $11.2 $