Enerpac Tool(US:EPAC)2021-03-24 17:39Financial Performance - Sales reached $121 million, with an 11% core sales decline (11% product decrease and 12% service decrease)[7] - Adjusted EBITDA decremental margins were 29%, excluding currency impacts, outperforming the target range of 35%-45%[7] - Adjusted Diluted EPS was $0.06[7] - The company paid down $45 million in debt, bringing leverage to 2.1x[3, 7] - Free Cash Flow generated $1 million, compared to a $9 million usage in the prior year period[7] Market Trends and Regional Performance - IT&S product core sales declines improved sequentially to 10% in Q2 from 14% in Q1[5] - Asia Pacific experienced a low single-digit (LSD) decline in core sales[8] - Europe saw a mid-single-digit (MSD) decline in core sales[8] - The Middle East faced a low double-digit (LDD) decline in core sales[8] - Americas also experienced a low double-digit (LDD) decline in core sales, but showed sequential improvement[8, 9] Outlook and Strategy - The company anticipates net sales returning to pre-COVID levels by the end of the fiscal year[24] - Incremental EBITDA margins are expected to be at the high end of 35%-45%, excluding currency impacts[24, 27] - Sales for the second half of fiscal year 2021 are projected to be between $280 million and $290 million[27]