Actuant Corp. (ATU, Financial) filed Quarterly Report for the period ended 2008-11-30.
Actuant headquartered in Milwaukee Wisconsin is a diversified industrial company with operations in 15 countries. Actuant offers products under such established brand names as Enerpac Gardner Bender Milwaukee Cylinder Nielsen Sessions Power-Packer and Power Gear. Actuant Corp. has a market cap of $942.67 million; its shares were traded at around $18.89 with a P/E ratio of 8.6 and P/S ratio of 0.57. The dividend yield of Actuant Corp. stocks is 0.24%. Actuant Corp. had an annual average earning growth of 21.9% over the past 5 years.
Electrical net sales decreased by $32 million, or 24%, from $134 million for the three months ended November 30, 2007 to $102 million for the three months ended November 30, 2008. Excluding the $3 million unfavorable impact of foreign currency rate changes on translated results, core sales declined 22%. This decline is the result of lower demand in the retail DIY and residential construction markets and a substantial decline in products sold into the marine market, both reflecting weak consumer confidence. Additionally, year-over-year comparisons were negatively affected by our strategic decision to exit low margin products in the European Electrical product line.
Actuation Systems net sales decreased by $28 million, or 24%, from $113 million for the three months ended November 30, 2007 to $85 million for the three months ended November 30, 2008. Excluding sales from the Sanlo acquisition and the $4 million unfavorable impact of foreign currency rate changes on translated results, core sales declined 24% as a result of sharp declines in demand in vehicle markets, negatively impacting sales levels in the Companys RV, truck and automotive product lines.
In the three months ended November 30, 2007 the Company generated $29 million of cash from operating activities. This reflected $27 million of net earnings including $19 million of non-cash expenses, offset by the payment of fiscal 2007 incentive compensation and an increase in accounts receivable due to increased sales levels. These cash flows from operating activities and existing cash funded the $47 million purchase price for the September 2007 acquisition of TK Simplex. Additionally, we deployed $9 million on capital expenditures for ERP system upgrades and the construction of a new facility in China. Some of these additions were funded with approximately $8 million of proceeds received from sale and lease back transactions.
The Company, in the normal course of business, enters into certain real estate and equipment leases or guarantees such leases on behalf of its subsidiaries. In conjunction with the spin-off of a former subsidiary in fiscal 2000, the Company assigned its rights in the leases used by the former subsidiary, but was not released as a responsible party from all such leases by the lessors. All of these businesses were subsequently sold. The Company remains contingently liable for those leases if any of these businesses are unable to fulfill their obligations thereunder. The discounted present value of future minimum lease payments for such leases totals, assuming no offset for sub-leasing, approximately $5.1 million at November 30, 2008. The future undiscounted minimum lease payments for these leases are as follows: $0.3 million in the balance of calendar 2008; $1.1 million in calendar 2009; $1.1 million in calendar 2010; $1.2 million in calendar 2011; $1.2 million in calendar 2012 and $3.7 million thereafter.
As more fully discussed in Note 4, Accounts Receivable Securitization, in the Notes to Condensed Consolidated Financial Statements, the Company is party to an accounts receivable securitization program. Trade receivables sold and being serviced by the Company were $53.4 million and $52.9 million at November 30, 2008 and August 31, 2008, respectively. If the Company had discontinued this securitization program at November 30, 2008 it would have been required to borrow approximately $53.4 million to finance the working capital increase. The securitization agreement, which matures in September 2009, was amended in December 2008 to decrease available capacity from $65.0 million to $60.0 million.
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Gurus buys and sells of ATU
10-year financial history of ATU.
Insider buys/sells of ATU.
Actuant headquartered in Milwaukee Wisconsin is a diversified industrial company with operations in 15 countries. Actuant offers products under such established brand names as Enerpac Gardner Bender Milwaukee Cylinder Nielsen Sessions Power-Packer and Power Gear. Actuant Corp. has a market cap of $942.67 million; its shares were traded at around $18.89 with a P/E ratio of 8.6 and P/S ratio of 0.57. The dividend yield of Actuant Corp. stocks is 0.24%. Actuant Corp. had an annual average earning growth of 21.9% over the past 5 years.
Highlight of Business Operations:
Consolidated net sales decreased by $35 million, or 8%, from $415 million for the three months ended November 30, 2007 to $380 million for the three months ended November 30, 2008. Excluding the $23 million impact of sales from acquired businesses and the $15 million unfavorable impact of foreign currency exchange rate changes on translated results, fiscal 2009 first quarter consolidated core sales decreased 11% as compared to the fiscal 2008 first quarter.Electrical net sales decreased by $32 million, or 24%, from $134 million for the three months ended November 30, 2007 to $102 million for the three months ended November 30, 2008. Excluding the $3 million unfavorable impact of foreign currency rate changes on translated results, core sales declined 22%. This decline is the result of lower demand in the retail DIY and residential construction markets and a substantial decline in products sold into the marine market, both reflecting weak consumer confidence. Additionally, year-over-year comparisons were negatively affected by our strategic decision to exit low margin products in the European Electrical product line.
Actuation Systems net sales decreased by $28 million, or 24%, from $113 million for the three months ended November 30, 2007 to $85 million for the three months ended November 30, 2008. Excluding sales from the Sanlo acquisition and the $4 million unfavorable impact of foreign currency rate changes on translated results, core sales declined 24% as a result of sharp declines in demand in vehicle markets, negatively impacting sales levels in the Companys RV, truck and automotive product lines.
In the three months ended November 30, 2007 the Company generated $29 million of cash from operating activities. This reflected $27 million of net earnings including $19 million of non-cash expenses, offset by the payment of fiscal 2007 incentive compensation and an increase in accounts receivable due to increased sales levels. These cash flows from operating activities and existing cash funded the $47 million purchase price for the September 2007 acquisition of TK Simplex. Additionally, we deployed $9 million on capital expenditures for ERP system upgrades and the construction of a new facility in China. Some of these additions were funded with approximately $8 million of proceeds received from sale and lease back transactions.
The Company, in the normal course of business, enters into certain real estate and equipment leases or guarantees such leases on behalf of its subsidiaries. In conjunction with the spin-off of a former subsidiary in fiscal 2000, the Company assigned its rights in the leases used by the former subsidiary, but was not released as a responsible party from all such leases by the lessors. All of these businesses were subsequently sold. The Company remains contingently liable for those leases if any of these businesses are unable to fulfill their obligations thereunder. The discounted present value of future minimum lease payments for such leases totals, assuming no offset for sub-leasing, approximately $5.1 million at November 30, 2008. The future undiscounted minimum lease payments for these leases are as follows: $0.3 million in the balance of calendar 2008; $1.1 million in calendar 2009; $1.1 million in calendar 2010; $1.2 million in calendar 2011; $1.2 million in calendar 2012 and $3.7 million thereafter.
As more fully discussed in Note 4, Accounts Receivable Securitization, in the Notes to Condensed Consolidated Financial Statements, the Company is party to an accounts receivable securitization program. Trade receivables sold and being serviced by the Company were $53.4 million and $52.9 million at November 30, 2008 and August 31, 2008, respectively. If the Company had discontinued this securitization program at November 30, 2008 it would have been required to borrow approximately $53.4 million to finance the working capital increase. The securitization agreement, which matures in September 2009, was amended in December 2008 to decrease available capacity from $65.0 million to $60.0 million.
Read the The complete Report
Gurus who own ATU
ATU is in the portfolios of John Keeley, Ron Baron. More on ATU:Gurus buys and sells of ATU
10-year financial history of ATU.
Insider buys/sells of ATU.
