Enerpac Tool Group Corp (EPAC) recently released its SEC report for the three and nine months ended May 31, 2023, revealing improved earnings and progress on their ASCEND transformation program. The company’s earnings per share from continuing operations increased from $0.07 in Q3 2022 to $0.30 in Q3 2023, and from $0.16 to $0.54 for the first nine months of 2023 compared to the same period in 2022.
Enerpac Tool Group Corp is a global manufacturer of industrial products and solutions, primarily engaged in the design, manufacture, and distribution of branded hydraulic and mechanical tools. They provide services and tool rental to various industries, including infrastructure, industrial maintenance, oil & gas, mining, alternative and renewable energy, and civil construction.
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Net Sales and Operating Profits
The company’s net sales by reportable segment & product line for the IT&S segment increased from $109.9 million in Q3 2022 to $117.8 million in Q3 2023, and from $299.7 million to $320.9 million for the nine months ended May 31, 2023. Similarly, the net sales for the Other segment increased from $11.4 million in Q3 2022 to $12.1 million in Q3 2023, and from $31.7 million to $35.2 million for the nine months ended May 31, 2023.
Operating profit for the IT&S segment also increased from $19.2 million in Q3 2022 to $36.2 million in Q3 2023, and from $49.8 million to $93.2 million for the first nine months of 2023 compared to the same period in 2022. The company attributes these improved financial performances to its continuous global tax planning initiatives that maximize tax credits and deductions.
ASCEND Transformation Program
Enerpac Tool Group Corp has also made significant progress on its ASCEND transformation program. The program focuses on accelerating organic growth go-to-market strategies, improving operational excellence and production efficiency through a Lean approach, and driving greater efficiency and productivity in selling, general and administrative expenses. In March 2023, the company updated the expected annual operating profit range from this program to $50-$60 million, with investments of approximately $70-$75 million over the program’s life.
Share Repurchases
During the three months ended May 31, 2023, Enerpac Tool Group repurchased 843,689 shares for $20.8 million, slightly down from the 1,755,075 shares repurchased for $36.3 million in the same period the previous year. With 5,396,576 shares still available for repurchase under the current program, this buyback activity demonstrates the company’s commitment to returning value to shareholders.
Effective Tax Rate
The company’s effective tax rate for the three months ended May 31, 2023, was 21.6%, compared to 25.3% for the same period in the previous year. Enerpac Tool Group Corp has managed to maintain this lower effective tax rate through benefits driven by uncertain tax position releases related to statute expirations.
In Summary
In summary, Enerpac Tool Group Corp’s improved financial performance and progress on its ASCEND transformation program position the company for continued growth and increased shareholder value. With a focus on innovation, operational excellence and disciplined capital deployment, the company they will maintain profitability and generate strong cash flow.
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 |
Note that we may hold securities mentioned in this article. All data is based on recent SEC filings. Even though we have implemented various manual and automatic fact-checking and data acquisition processes, some incorrect information may have slipped through (false positive). Let us know if you find any inconsistencies!