Enerpac Tool(US:EPAC)2022-06-28 14:58Financial Performance - Net sales for Q3 2022 were $152 million, compared to $143 million in Q3 2021, representing a 6% increase[12] - Core sales grew by 10%, driven by IT&S product sales increasing by 12% and other product sales increasing by 18%[15] - Unfavorable foreign exchange (FX) impact reduced core sales by approximately $5 million, or 4%[15] - Adjusted EBITDA for Q3 2022 was $18 million, compared to $24 million in Q3 2021[31] - Adjusted EBITDA margin was 12%, negatively impacted by approximately 720 bps due to an increased receivable reserve related to a MENAC agent[15] - Adjusted diluted EPS decreased year-over-year due to a decrease in operating margin and a higher effective tax rate, with a $0.14 per share impact from the MENAC agent receivable reserve[16] Strategic Initiatives - The company is implementing the ASCEND transformation program, expecting $40-50 million in total incremental annualized adjusted EBITDA by Fiscal 2025, with an investment of $60-65 million over the program period[3] - The company repurchased nearly 1.8 million shares in Q3 for a total of $36 million[6] Market Dynamics - Strong top-line performance was driven by solid customer demand, despite FX headwinds[7] - The company actively managed ongoing supply chain and logistics challenges and continued to take pricing actions to offset cost increases and preserve margin[7] - COVID challenges impacted the quarter, particularly in the APAC region[7] - The crisis in Russia/Ukraine continued to impact the company, including dealer cautiousness, supply chain and logistics constraints, increased commodity costs, and foreign currency headwinds[7] Regional Performance - Americas growth was approximately in the mid-20% range[8] - MENAC growth was approximately in the mid-20% range[8] - Asia Pacific growth was approximately in the mid-single digits percentage range[8] - Europe experienced a decline of approximately in the low double digits percentage range[8] Fiscal Year 2022 Guidance - The company refined its Fiscal 2022 full-year net sales guidance to a range of $560 million to $570 million, primarily due to FX headwinds[28] - The company projects year-over-year core growth by category: IT&S Product ~ low teens%, IT&S Service ~ low single digits%, Other ~ low to mid 20%[28]