Enerpac Tool Group Reports Third Quarter Fiscal 2022 Results

Third Quarter of Fiscal 2022 Continuing Operations Highlights^*

• Net sales were $152 million, representing a 10% year-over-year increase in core sales driven by continued strong and broad-based demand in most regions; the strengthening of the US dollar reduced sales by 4%
• GAAP operating margin was 4.4% and adjusted operating margin was 9.0%
• Adjusted EBITDA margin was 12.0%
• GAAP diluted earnings per share (“EPS”) was $0.07 and adjusted diluted EPS was $0.16
• Results reflect an $11 million increase in accounts receivable reserves related to an agent in the Middle East/North Africa/Caspian (“MENAC”) region ($0.14 per share, after tax), which had an unfavorable impact of approximately 720 basis points on adjusted EBITDA margin
• Leverage (Net Debt to Adjusted EBITDA) was 1.1x at May 31, 2022
• Purchased approximately 1.8 million shares at an average price of $20.65, for a total of approximately $36 million under our share repurchase program announced in March 2022
• Refined full year guidance for fiscal 2022
  
  ^*This news release contains financial measures in accordance with US Generally Accepted Accounting Principles (“GAAP”) in addition to non-GAAP financial measures. Reconciliations of the GAAP to non-GAAP historical financial measures can be found in the tables accompanying this release.

MILWAUKEE--(BUSINESS WIRE)--Enerpac done like the Acct Note says.

Enerpac Tool Group Corp. (NYSE: EPAC) (the “Company”) today announced results for its fiscal third quarter ended May 31, 2022.

“Our solid third quarter sales and profit (excluding the impact of the increase in receivable reserves) were the result of continued broad-based demand and strong execution by our team across our global footprint,” said Paul Sternlieb, Enerpac Tool Group’s President & CEO. “Throughout the quarter, we continued to navigate a challenging macroeconomic environment, including ongoing supply chain and inflationary pressures as well as managing through the Ukraine conflict and the COVID lockdown in China. I am pleased with our team’s ability to remain focused on serving our customers and creating value for all our stakeholders. In alignment with our capital allocation strategy, we purchased approximately 1.8 million shares in the third quarter under our recently announced repurchase authorization. With our ASCEND transformation program well underway, I am encouraged by the momentum it has already generated, thanks to the hard work of our employees across all levels of the organization.”