Enerpac Tool Group Corp. · NYSE:EPAC
Enerpac Tool — Q3 2024 Earnings Presentation
22 slides from Enerpac Tool's earnings presentation, Jun 25, 2024
Slide 1: Q3 FY24 Earnings
Q3 FY24 Earnings June 25, 2024 1
Slide 2: Forward-Looking Statements and Non-GAAP Measures
Forward-Looking Statements and Non-GAAP Measures Statements made in this presentation that are not historical are forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. The terms “outlook,” “guidance,” “may,” “should, ”“could,” “anticipate
Slide 3: Advancing Enerpac's Corporate Strategy
Advancing Enerpac’s Corporate Strategy 3
Slide 4: Q3 FY24 Results
Q3 FY24 Results ($ in millions) Net Sales Net Sales Organic 3Q23 3Q24 Growth* Industrial Tools & Service (IT&S) $144 $146 +1.8% IT&S Product $118 $118 +0.5% IT&S Service $26 $28 +7.3% ** Other $12 $4 -14.2% Enerpac Tool Group $156 $150 +1.2% *Organic net sales is a non-GAAP measure and excludes the
Slide 5: Continued Operational and SG&A Efficiency Gains
Continued Operational and SG&A Efficiency Gains Gross Profit Margin SG&A % Adjusted SG&A %* 51.8% 49.8% 32.7% 29.1% 27.5% 27.0% 3Q23 3Q24 3Q23 3Q24 3Q23 3Q24 *Adjusted SG&A expense is a non-GAAP measure and excludes restructuring and other charges identified in the accompanying reconciliations to GA
Slide 6: Driving EBITDA & Margin Expansion
Driving EBITDA & Margin Expansion ($ in millions) Adjusted EBITDA* Adjusted EBITDA Margin* $40 $37 26.4% 24.0% 3Q23 3Q24 3Q23 3Q24 *Adjusted EBITDA and adjusted EBITDA margin are non-GAAP measures and exclude restructuring and other charges identified in the accompanying reconciliations to GAAP meas
Slide 7: Year-to-Date Gains
Year-to-Date Gains Organic Growth* +2.8% IT&S Organic Growth +3.4% Adjusted EBITDA** +13.1% Adjusted EBITDA Margin 25.3% (+330 bps) Free Cash Flow +66% *Organic net sales is a non-GAAP measure and excludes the impact of foreign exchange rates, acquisitions, and dispositions identified in the accompa
Slide 8: Strong Liquidity & Balanced Capital Allocation Strategy
Strong Liquidity & Balanced Capital Balance Sheet Allocation Strategy ($ in millions) Cash & Equivalents $132 Revolver Capacity (Undrawn) $399 Total Liquidity $531 Total Debt $196 Invest in Ourselves Disciplined M&A Net Debt/Adj. EBITDA* 0.5x Investments in Digital, Product Innovation, R&D, Operatio
Slide 9: Tightening FY24 Guidance
NET SALES Tightening FY24 Guidance $585 - $590M ~2-3% Organic Growth (previously ~2-4%) Key Assumptions: ▪ Targeting to outperform industry and gain market share ADJ. EBITDA ▪ No broad-based global recession $147 - $150M Depreciation & Amortization ~$13 - $15M Previously $142-$152M Interest Expense
Slide 10: IT&S Organic Growth by Region
IT&S Organic Growth by Region * Region 3Q23 3Q24 FY23 IT&S Regional Sales APAC 14% Americas 46% EMEA 39% *Organic net sales is a non-GAAP measure and excludes the impact of foreign exchange rates, acquisitions, and dispositions. 10
Slide 11: Target End Markets: Infrastructure
Target End Markets: Infrastructure The Fehmarnbelt fixed link project ▪ Largest global infrastructure project will connect Scandinavia with Central Europe via Germany ▪ When completed, it will be the longest immersed tunnel in the world at 11 miles ▪ Greatly reduces travel time, while cutting CO2 em
Slide 12: Target End Markets: Wind
Target End Markets: Wind ▪ FERC Rule 1920 removes key barrier to new wind project development ▪ Enerpac provides tools & solutions addressing the full lifecycle of wind turbines – from manufacturing to decommissioning ▪ Tower Flange Alignment tool selected by leading OEMs for its compact, integrated
Slide 13: Vibrant Innovation Pipeline: Battery Torque Wrench
Vibrant Innovation Pipeline: Battery Torque Wrench ▪ Easy-to-use, quick, accurate torque – across industries ▪ Models available for 3/4" to 1 1/2" square drive sizes provides a versatile solution across a broad range of applications ▪ Integrated digital motor vectoring system ensures accurate and re
Slide 14: Digital Transformation: E-Commerce
Digital Transformation: E-Commerce ▪ E-commerce sales +35% YTD on top of strong growth in FY23 ▪ U.S. homepage redesigned in 3Q ▪ More than 20 million impressions from our digital ad campaigns to date ▪ Return on ad spend well-above industry average ▪ Key vertical market microsites for wind, rail, a
Slide 15: Enerpac Tool Group
ENERPAC @) TOOL GROUP
Slide 16: Appendix
Appendix ENERPAC @) TOOL GROUP
Slide 17: Quarterly Results
Quarterly Results ($ in millions, except per share) Net Sales & YoY Organic Growth* Adjusted EBITDA and Margin* $161 $156 $40 $40 $150 $37 $142 $142 $35 $34 $139 $138 $32 $27 26.4% 13% 24.9% 24.6% 24.8% 24.0% 22.7% 9% 5% 6% 19.1% 4% 2% 1% 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 1Q23 2Q23 3Q23 4Q23 1Q24 2
Slide 18: Reconciliation of Non-GAAP Measures
Q3 FY23 Q3 FY23 Q3 FY22 % Change Net Sales $156 $152 2.9% Reconciliation of Non-GAAP Measures Fx Impact - (2) Divestiture - 0 Total $156 $150 4.3% (US$ in millions) Q4 FY23 Q4 FY23 Q4 FY22 % Change Consolidated NetOrganic Sales $161 $152 5.8% Q3 FY24 Organic Sales Q3 FY23 Organic Sales Sales by Quar
Slide 19: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (US$ in millions, except per share) Net Sales Adjusted Net Earnings from Continuing Operations Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Enerpac Tool Group $ 139 $ 142 $ 156 $ 161 $ 142 $ 138 $
Slide 20: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (US$ in millions) Adjusted Selling, general and administrative expenses Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Selling, general and administrative expenses $ 54 $ 55 $ 51 $ 52 $ 45 $ 41 $ 44 Selling, general and administrative expenses % 38.9% 38.
Slide 21: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (US$ in millions) Year-to-Date Organic Growth Consolidated Organic Sales Adjusted EBITDA YTD Q3 YTD Q3 YTD YTD Q3 YTD Q3 FY24 FY23 % Change FY23 FY24 Net Sales $431 $438 -1.6% EBITDA 62 99 Fx Impact - 2 Impairment & divestiture (benefit) charges - 0 Divestiture -
Slide 22: Notes to Reconciliation of Non-GAAP Measures
Notes to Reconciliation of Non-GAAP Measures (1) Approximately $0.6 million of the Q4 fiscal 2023 restructuring charges were recorded in cost of products sold. (2) EBITDA represents net earnings from continuing operations before financing costs, net, income tax expense, and depreciation & amortizati