Enerpac Tool(US:EPAC)2022-03-23 16:00Financial Performance - Net sales for the three months ended February 28, 2022, were $136,599,000, representing a 13.3% increase from $120,654,000 for the same period in 2021[12] - Gross profit for the six months ended February 28, 2022, was $119,607,000, compared to $110,040,000 for the same period in 2021, indicating an increase of 8.5%[12] - Operating profit for the three months ended February 28, 2022, was $4,484,000, down from $5,707,000 in the same period of 2021, reflecting a decrease of 21.5%[12] - Net earnings from continuing operations for the three months ended February 28, 2022, were $2,121,000, compared to $3,584,000 for the same period in 2021, a decline of 40.9%[12] - Comprehensive income for the three months ended February 28, 2022, was $2,965,000, down from $12,339,000 in the same period of 2021, a decrease of 76.0%[14] - Total revenue for the three months ended February 28, 2022, was $136.6 million, an increase from $120.7 million for the same period in 2021, representing a growth of 13.5%[31] - Revenue recognized at a point in time for the six months ended February 28, 2022, was $267.5 million, compared to $240.1 million for the same period in 2021, reflecting a year-over-year increase of 11.4%[31] - Revenue recognized over time for the three months ended February 28, 2022, was $31.7 million, up from $29.9 million in the same period of 2021, showing a growth of 6.0%[31] Expenses and Liabilities - Selling, general and administrative expenses for the three months ended February 28, 2022, were $50,668,000, an increase from $45,883,000 in the same period of 2021, representing an increase of 10.0%[12] - The company incurred restructuring charges of $1,832,000 for the three months ended February 28, 2022, compared to $649,000 for the same period in 2021, indicating a significant increase[12] - Cash provided by operating activities decreased to $4,677 thousand from $13,246 thousand, a decline of 64.7%[21] - Total liabilities increased slightly to $408,439 thousand from $408,049 thousand, reflecting a marginal rise of 0.1%[18] - Cash and cash equivalents at the end of the period were $133,430 thousand, down from $140,352 thousand, a decrease of 4.4%[21] - Stock-based compensation expense increased to $8,289 thousand from $5,228 thousand, a rise of 58.9%[21] - Accumulated other comprehensive loss increased to $101,284 thousand from $92,984 thousand, an increase of 8.7%[28] Discontinued Operations - The company reported a loss from discontinued operations of $900,000 for the three months ended February 28, 2022, compared to a loss of $402,000 for the same period in 2021[12] - Loss from discontinued operations for the six months ended February 28, 2022, was $1.3 million, compared to a loss of $0.6 million for the same period in 2021, reflecting ongoing challenges post-divestiture[38] Assets and Inventory - Total current assets increased to $374,063 thousand from $357,435 thousand, representing a growth of 4.5%[18] - Inventories increased significantly to $89,479 thousand from $75,347 thousand, marking an increase of 18.7%[18] - Trade accounts payable rose to $66,422 thousand from $61,958 thousand, an increase of 7.4%[18] - The company’s total assets were $821,462 thousand as of February 28, 2022, slightly up from $820,247 thousand at August 31, 2021[59] Shareholder Equity and Earnings Per Share - Total shareholders' equity increased to $413,023,000 as of February 28, 2022, up from $409,806,000 at the end of November 2021, indicating a growth of 0.5%[53] - The diluted earnings per share from continuing operations for the three months ended February 28, 2022, was $0.03, down from $0.06 in the same period of 2021, reflecting a decrease of 50%[51] - The basic earnings per share from continuing operations for the six months ended February 28, 2022, was $0.09, down from $0.10 in the same period of 2021, a decrease of 10%[51] - The weighted average common shares outstanding for diluted calculations increased to 60,689,000 for the three months ended February 28, 2022, compared to 60,269,000 in the same period of 2021, an increase of 0.7%[51] Legal and Compliance - The company recorded an expense related to potential financial penalties from a Dutch investigation into sales linked to Crimea, reflecting ongoing legal contingencies[61] - The Company was in compliance with all financial covenants at February 28, 2022, including a maximum leverage ratio of 3.75:1[43] Future Outlook - The company anticipates potential increases in costs of commodities and raw materials, which could impact future financial results[6] - The company aims to enhance operational efficiency through restructuring initiatives, including workforce reductions and plant consolidations, to reduce manufacturing overhead[35]