Enerpac Tool Group Corp (EPAC), a global provider of branded hydraulic and mechanical tools and services, has reported an increase in core sales as a result of pricing actions undertaken during the company’s ASCEND transformation program. According to the company’s SEC report, for the quarter ending May 31, 2023, EPAC saw a 4% increase in core sales, alongside a year-over-year increase of 3% in net sales. This growth can be attributed to the pricing actions and productivity efficiency driven by ASCEND transformation program actions.
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In June 2022, EPAC approved a restructuring plan connected with the ASCEND transformation program
aimed at driving greater efficiency and productivity in global selling, general and administrative resources. The total costs for this plan were initially estimated at $6 to $10 million but later updated to $10 to $15 million. These costs are expected to be incurred over the expected duration of the transformation program, ending in the fourth quarter of the fiscal year 2024.
The reported increase in core sales was also partly due to the impact of pricing actions
, which led to a 9% increase in product core sales and a 13% decrease in service core sales. This decrease can be attributed to the implementation of 80/20 analysis and a more selective process for quoting projects in the Middle East region, focusing on more differentiated solutions.
The company’s gross profit margins as a percentage of sales increased by approximately 3%
due to pricing actions and productivity efficiency related to the ASCEND transformation program. The operating profit was reported to be $18 million higher in the third quarter of fiscal 2023 compared to the prior-year third quarter. Selling, general, and administrative (SG&A) expenses decreased compared to the third quarter of fiscal 2022 by $14 million, resulting from personnel savings from actions taken during the ASCEND transformation program.
During the first nine months of fiscal 2023, EPAC’s consolidated net sales reached $438 million
, increasing by $19 million or 4% compared to the prior year. Core sales increased by 7%, with sales being 3% unfavorably impacted by foreign currency. The gross profit margin increased by approximately 3%, mainly from pricing actions as well as productivity and efficiency improvements driven by the ASCEND transformation program.
In summary, Enerpac Tool Group Corp’s ASCEND transformation program enabled the company to increase core sales and achieve higher profit margins
through focused pricing actions and improved productivity efficiency. This strategic initiative has proven successful in driving growth and boosting the company’s financial performance in the short term, setting a positive outlook for the future of EPAC.
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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