Enerpac Tool Group Corp (EPAC), a leading manufacturer and distributor of a diverse range of industrial tools and services, has recently announced its new ASCEND Transformation Program. The program, which was launched in March 2022, aims to drive accelerated earnings growth and efficiency across the business. By fully implementing the program, the company hopes to achieve an incremental operating profit of $50 to $60 million annually.
Table of Contents
ASCEND Transformation Program Initiatives and Investment
The ASCEND Transformation Program is designed around three main initiatives – 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 (SG&A) expenses by better leveraging resources to create a more efficient and agile organization. Originally estimating an investment of $60 to $65 million, the budget estimate has since been increased to $70 to $75 million for the program, which is expected to be finalized by the end of fiscal 2024.
ASCEND Program Expenses and Restructuring Charges
During the first nine months of fiscal 2023, the program had total expenses amounting to $32.9 million, with $26.1 million recorded within SG&A expenses and $6.2 million in restructuring charges. In comparison, the total ASCEND program expenses for fiscal 2022 were at $3.9 million for both the three-month and nine-month period, recorded within SG&A expenses.
The company has implemented various restructuring initiatives, such as workforce reductions, plant consolidation, the shift of certain production and product sourcing to low-cost alternatives, and the centralization and standardization of administrative functions. For the three and nine months ending May 31, 2023, the company recorded a restructuring charge of $2.3 million and $6.2 million respectively, associated with the ASCEND transformation program.
Expected Growth and Efficiency Achievements
Enerpac Tool Group Corp has undertaken several key steps as part of its ongoing restructuring plan and aims to achieve significant growth and efficiency in the coming years through its ASCEND Transformation Program. As a result, stakeholders can expect the company to perform better, owing to improved productivity, cost efficiency, and customer-centric growth strategies.
Moving forward, the company’s sustained focus on operational excellence, lean approach to production, and the ongoing implementation of the ASCEND Transformation Program is expected to yield positive results both in terms of its financial performance and overall competitiveness in the industrial tools and services market. By achieving its targeted operating profit of $50 to $60 million upon the full implementation of the program, Enerpac Tool Group Corp aims to set a new benchmark for excellence and operational efficiency in the industry, aligning with the company’s strategic vision of becoming a pure-play industrial solutions leader in the years to come.
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!