Enerpac Tool Group Corp (EPAC), a global leader in industrial tools and services, has reported strong financial results for the third quarter of fiscal 2023, driven by solid growth in both product and service sales. The company’s net sales reached $156.25 million during the period, reflecting a 2.86% increase compared to the same period last year ($151.89 million). EPAC’s sustained performance highlights the company’s resilience amidst the ongoing COVID-19 pandemic and demonstrates its strong position in a highly competitive market.
As a premier industrial tools and services provider, Enerpac caters to a diverse range of customers across more than 100 countries. The company’s focus on developing new products and leveraging its growth strategy has significantly contributed to its robust financial performance. Despite facing multiple challenges, including the global economic recession, geopolitical risks, and the ongoing COVID-19 outbreak, Enerpac has managed to maintain growth and deliver substantial shareholder value.
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Significant Growth in Product Sales
In the recently reported third quarter, the company witnessed a significant increase in product sales, reaching $127.22 million compared to $117.15 million in the same quarter last year. This growth is driven by various factors, including the introduction of new products and market expansion strategies. Furthermore, service and rental sales saw an uptick, contributing $29.03 million to the company’s revenues, an increase from $34.73 million in the same quarter last year. These positive trends demonstrate the company’s commitment to innovation and customer-centricity.
Earnings Increase
The company’s earnings per share (EPS) also witnessed substantial growth in Q3, with diluted EPS from continuing operations standing at $0.30, compared to $0.07 in the same period last year. Moreover, net earnings reached $12.38 million, significantly outperforming the $1.64 million achieved during the same period in fiscal 2022.
Operational Efficiencies and Streamlined Cost Structure
Enerpac’s strong financial performance in Q3 can be attributed to its operational efficiencies and streamlined cost structure. The company’s selling, general, and administrative expenses decreased to $48.81 million, down from $63.09 million in the same quarter last year. Similarly, the company’s total assets, as of May 31, 2023, reached $793.07 million, up from $757.31 million as of August 31, 2022.
Financial Health
Despite the global uncertainties, the company has also managed to maintain its financial health, with strong cash reserves of $142 million, up from $120.7 million in August 2022. This financial stability enables the company to pursue strategic investments, including acquisitions and research and development initiatives, to further strengthen its market position and drive future growth.
Outlook
Operating in a highly dynamic and competitive market, Enerpac has managed to sustain growth while overcoming various challenges, including global economic crises and the impacts of the COVID-19 pandemic. The company’s Q3 performance demonstrates its ability to adapt to the changing market dynamics and deliver long-term value to its shareholders. Leveraging its strong product portfolio, efficient cost structure, and strategic growth initiatives, Enerpac is well-positioned for continued success in the coming years and beyond.
Income Statement
Financials in millions USD. Fiscal year is September – August. source
| Year | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 – 1995 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 0 | Revenue | 571.22 | 528.66 | 493.29 | 654.76 | 641.3 | 1095.78 | 1149.41 | 1249.25 | 1399.86 | 1279.74 | Upgrade |
| 1 | Revenue Growth (YoY) | 8.05% | 7.17% | -24.66% | 2.10% | -41.48% | -4.67% | -7.99% | -10.76% | 9.39% | 0.25% | Upgrade |
| 2 | Cost of Revenue | 305.84 | 285.5 | 276.1 | 362.11 | 358.02 | 716.07 | 746.01 | 787.41 | 852.99 | 772.79 | Upgrade |
| 3 | Gross Profit | 265.39 | 243.16 | 217.19 | 292.65 | 283.28 | 379.72 | 403.4 | 461.84 | 546.87 | 506.95 | Upgrade |
| 4 | Selling, General & Admin | 216.87 | 175.28 | 180.51 | 209.23 | 210.26 | 277.49 | 274.5 | 299.6 | 332.09 | 293.87 | Upgrade |
| 5 | Other Operating Expenses | 17.85 | 16.77 | 12.5 | 35.91 | 22.82 | 152.47 | 229.12 | 108.69 | 25.17 | 22.94 | Upgrade |
| 6 | Operating Expenses | 234.73 | 192.04 | 193.01 | 245.14 | 233.08 | 429.95 | 503.61 | 408.29 | 357.26 | 316.81 | Upgrade |
| 7 | Operating Income | 30.66 | 51.11 | 24.18 | 47.52 | 50.21 | -50.24 | -100.22 | 53.55 | 189.61 | 190.15 | Upgrade |
| 8 | Interest Expense / Income | 4.39 | 5.27 | 19.22 | 28.16 | 30.87 | 29.7 | 28.77 | 28.06 | 25.05 | 24.84 | Upgrade |
| 9 | Other Expense / Income | 6.19 | 4.01 | 1.95 | 257.84 | 26.53 | 2.75 | 1.36 | 0.11 | -31.58 | 119.89 | Upgrade |
| 10 | Pretax Income | 20.09 | 41.84 | 3.02 | -238.49 | -7.2 | -82.69 | -130.34 | 25.39 | 196.15 | 45.42 | Upgrade |
| 11 | Income Tax | 4.4 | 3.76 | 2.29 | 10.66 | 14.45 | -16.48 | -25.17 | 5.52 | 32.57 | 15.37 | Upgrade |
| 12 | Net Income | 15.69 | 38.08 | 0.72 | -249.15 | -21.65 | -66.21 | -105.17 | 19.87 | 163.57 | 30.05 | Upgrade |
| 13 | Net Income Growth | -58.80% | 5166.53% | – | – | – | – | – | -87.85% | 444.37% | -65.58% | Upgrade |
| 14 | Shares Outstanding (Basic) | 60 | 60 | 60 | 61 | 60 | 59 | 59 | 61 | 71 | 73 | Upgrade |
| 15 | Shares Outstanding (Diluted) | 60 | 60 | 60 | 62 | 61 | 59 | 59 | 62 | 72 | 75 | Upgrade |
| 16 | Shares Change | -0.82% | 0.22% | -2.17% | 0.95% | 2.68% | 0.72% | -4.91% | -14.39% | -2.81% | -0.48% | Upgrade |
| 17 | EPS (Basic) | 0.26 | 0.63 | 0.01 | -4.07 | -0.36 | -1.11 | -1.78 | 0.32 | 2.31 | 0.41 | Upgrade |
| 18 | EPS (Diluted) | 0.26 | 0.63 | 0.01 | -4.04 | -0.35 | -1.11 | -1.78 | 0.32 | 2.26 | 0.40 | Upgrade |
| 19 | EPS Growth | -58.73% | 6200.00% | – | – | – | – | – | -85.84% | 465.00% | -65.81% | Upgrade |
| 20 | Free Cash Flow Per Share | 0.75 | 1.08 | -0.24 | 0.66 | 1.57 | 1.02 | 1.81 | 1.80 | 1.81 | 2.35 | Upgrade |
| 21 | Dividend Per Share | 0.040 | 0.040 | 0.040 | 0.040 | 0.040 | 0.040 | 0.040 | 0.040 | 0.040 | 0.040 | Upgrade |
| 22 | Gross Margin | 46.46% | 45.99% | 44.03% | 44.70% | 44.17% | 34.65% | 35.10% | 36.97% | 39.07% | 39.61% | Upgrade |
| 23 | Operating Margin | 5.37% | 9.67% | 4.90% | 7.26% | 7.83% | -4.58% | -8.72% | 4.29% | 13.55% | 14.86% | Upgrade |
| 24 | Profit Margin | 2.75% | 7.20% | 0.15% | -38.05% | -3.38% | -6.04% | -9.15% | 1.59% | 11.68% | 2.35% | Upgrade |
| 25 | Free Cash Flow Margin | 7.79% | 12.21% | -2.94% | 6.17% | 14.84% | 5.56% | 9.29% | 8.82% | 9.19% | 13.42% | Upgrade |
| 26 | Effective Tax Rate | 21.91% | 8.99% | 76.02% | – | – | – | – | 21.74% | 16.61% | 33.84% | Upgrade |
| 27 | EBITDA | 44.07 | 68.72 | 42.95 | -190.11 | 44.08 | -9.88 | -53.8 | 106.69 | 281.83 | 124.16 | Upgrade |
| 28 | EBITDA Margin | 7.72% | 13.00% | 8.71% | -29.03% | 6.87% | -0.90% | -4.68% | 8.54% | 20.13% | 9.70% | Upgrade |
| 29 | Depreciation & Amortization | 19.6 | 21.61 | 20.72 | 20.22 | 20.41 | 43.11 | 47.78 | 53.24 | 60.64 | 53.9 | Upgrade |
| 30 | EBIT | 24.47 | 47.11 | 22.23 | -210.33 | 23.67 | -52.99 | -101.58 | 53.45 | 221.19 | 70.26 | Upgrade |
| 31 | EBIT Margin | 4.28% | 8.91% | 4.51% | -32.12% | 3.69% | -4.84% | -8.84% | 4.28% | 15.80% | 5.49% | Upgrade |
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