Enerpac Tool(EPAC)2025-03-26 19:18Financial Performance - Net sales for the three months ended February 28, 2025, were 138.437 million for the same period in 2024[13] - Gross profit for the six months ended February 28, 2025, was 145.725 million in the prior year, reflecting a gross margin improvement[13] - Operating profit for the three months ended February 28, 2025, was 29.521 million in the same quarter of 2024[13] - Net earnings for the three months ended February 28, 2025, were 17.817 million for the same period in 2024, marking a 17.5% increase[14] - Earnings per share from continuing operations for the six months ended February 28, 2025, were 0.67 in the same period of 2024[13] - Net earnings for the six months ended February 28, 2025, increased to 35,555 thousand for the same period in 2024, representing a growth of 19%[20] - Total revenues for the six months ended February 28, 2025, were 280,406 thousand in the prior year, marking a growth of 4%[30] - The basic earnings per share from continuing operations for the three months ended February 28, 2025, was 0.33 for the same period in 2024[65] Assets and Liabilities - Total current assets decreased to 372.258 million as of August 31, 2024[17] - Total liabilities decreased to 385.349 million as of August 31, 2024[17] - As of February 28, 2025, the Company recorded long-term debt of 189.5 million as of August 31, 2024[52] - The total shareholders' equity as of February 28, 2025, was 391.979 million at the end of August 31, 2024[66] Cash Flow and Investments - Cash provided by operating activities from continuing operations was 12,065 thousand for the same period last year, reflecting a 33% increase[20] - Cash used in investing activities for the six months ended February 28, 2025, totaled 5,687 thousand in the prior year, reflecting a substantial increase[20] - The ending balance of cash and cash equivalents as of February 28, 2025, was 153,693 thousand at the end of February 2024, representing a decrease of 22%[20] Acquisitions and Restructuring - The Company acquired DTA The Smart Move, S.A. for an initial purchase price of 3.2 million and 6.4 million for the three and six months ended February 28, 2025, reported within the IT&S segment[50] - The ASCEND transformation program incurred total expenses of approximately 2.0 million and 74.7 million, including 398,000 in the three months ended February 29, 2024, with no restructuring charges reported in the same period of 2025[13] Risk Factors - The company continues to face risks related to supply chain issues and geopolitical instability, which may impact future performance[9] Tax and Compliance - The effective income tax rate for the three months ended February 28, 2025, was 24.5%, a decrease from 29.3% in the prior-year period, primarily due to favorable tax impacts from stock compensation[69] - The Company was in compliance with all financial covenants under the credit facility at February 28, 2025, including a net leverage ratio not exceeding 3.75 to 1.00[54] Segment Performance - IT&S segment net sales for the three months ended February 28, 2025, were 134,822,000 for the same period in the prior year, representing a growth of approximately 4.4%[71] - Operating profit for the IT&S segment for the six months ended February 29, 2024, was 72,900,000 for the same period in the prior year, indicating an increase of about 5.0%[71] Share Repurchase - The Company has repurchased a total of 30,411,708 shares for 30.1 million[64] - The maximum number of shares that may yet be purchased under the current repurchase program is 2,387,522 shares[64]