Enerpac Tool Group Corp. · NYSE:EPAC
Enerpac Tool — Q1 2024 Earnings Presentation
19 slides from Enerpac Tool's earnings presentation, Dec 20, 2023
Slide 1: Q1 FY2024 Earnings
Q1 FY2024 Earnings December 20, 2023 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: Solid Start to Fiscal 2024
Solid Start to Fiscal 2024 ($ in millions) *Organic revenue growth excludes the impact of foreign exchange rates, acquisitions, and dispositions. **Adjusted EBITDA excludes restructuring and other charges identified in the accompanying reconciliations to GAAP measures. The Enerpac Tool Group fiscal
Slide 4: Solid Organic Growth Against Strong 1Q23 Comparisons
Solid Organic Growth Against Strong 1Q23 Comparisons* 1Q23 1Q24 Industrial Tools & Service (IT&S) 11.4% 5.8% IT&S Product 14.0% 4.5% IT&S Service 3.4% 10.1% ** Other 26.0% -2.4% Enerpac Tool Group 12.6% 5.5% *Organic revenue growth excludes the impact of foreign exchange rates, acquisitions, and dis
Slide 5: Driving Continued Operational and SG&A Efficiency and Productivity
Driving Continued Operational and SG&A Efficiency and Productivity * Gross Margin SG&A % Adjusted SG&A % 38.9% 52.3% 48.7% 31.4% 31.2% -75 29.0% bps 0b +360 ps -22 0b ps 1Q23 1Q24 1Q23 1Q24 1Q23 1Q24 *Adjusted SG&A expense excludes restructuring and other charges identified in the accompanying recon
Slide 6: Continued Strong Profitability Growth and Margin Improvement
Continued Strong Profitability Growth and Margin Improvement ($ in millions, except per share) Adjusted EBITDA and Margin* Adjusted Diluted EPS* $35 $0.39 24.6% $0.29 $27 19.1% 1Q23 1Q24 1Q23 1Q24 *Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted Diluted EPS exclude restructuring and other char
Slide 7: Strong Liquidity & Balance Sheet; Balanced Capital Allocation Strategy
Strong Liquidity & Balanced Capital Balance Sheet Allocation Strategy ($ in millions) Cash & Equivalents $148 Revolver Capacity (Undrawn) $352 Total Liquidity $500 Total Debt $245 Invest in Ourselves Disciplined M&A Net Debt/Adj. EBITDA* 0.9x Investments in Digital, Product Innovation, R&D, Operatio
Slide 8: IT&S Organic Growth by Region
IT&S Organic Growth by Region * Region 1Q23 1Q24 FY23 IT&S Regional Sales APAC 14% Americas 46% EMEA 39% *Organic revenue growth excludes the impact of foreign exchange rates, acquisitions, and dispositions. 8
Slide 9: Serving Broad Array of Vertical End Markets
Serving Broad Array of Vertical End Markets Large, Fragmented FY23 Estimated End- Vertical Markets Market Exposure* Provide Growth Opportunities and Oil & Gas/Petrochemical ~27% General Industrial ~23% Diversification for Industrial MRO, Machining, & Mfg ~14% Enerpac Power Generation ~10% Infrastruc
Slide 10: Innovation Driving Growth and Differentiation
Innovation Driving Growth and Differentiation SC-Series Enerpac CONNECT XC2-Series • Compact • Product Details • High Capacity • Lightweight • Firmware Updates • Extended Run Time • Precise • Service Records • Increased Oil Capacity SC and XC2 round out the best-in-class cordless pump portfolio, and
Slide 11: Executing Expansion Strategy in APAC
Executing Expansion Strategy in APAC Infrastructure • Well positioned to support key infrastructure projects throughout the region Second Brand Strategy • Signed multiple new distributors in region • New commercial managers hired in Southeast Asia Narita Airport - Japan • Leveraging Enerpac Academy
Slide 12: Q&A
Q&A ENERPAC @ TOOL GROUP
Slide 13: Appendix
Appendix ENERPAC @ TOOL GROUP
Slide 14: Affirming FY24 Guidance $590 - $605M
NET SALES Affirming FY24 Guidance $590 - $605M CORE GROWTH OF ~2-4% Key Assumptions: § Targeting to outperform industry and gain market share ADJ. EBITDA § No broad-based global recession Depreciation & Amortization ~$13-$15M $142 - $152M Interest Expense ~$14-$16M Adjusted Tax Rate ~20-25% Cash Tax
Slide 15: Quarterly Results
Quarterly Results ($ in millions, except per share) Net Sales & YoY Organic Growth* Adjusted Operating Profit and Margin* $161 $37 $156 $34 $32 $142 $142 $29 $139 $23 23.0% 22.8% 13% 21.7% 20.2% 9% 6% 16.6% 5% 4% 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 Adjusted EBITDA and Margin* Adjusted
Slide 16: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (US$ in millions) Consolidated Organic Q1 FY24 Organic Sales(3) Q1 FY23 Organic Sales(3) Sales(3) by Quarter by Product by Product Q1 FY23 IT&S Segment Organic Sales IT&S Segment Organic Sales Q1 FY23 Q1 FY22 % Change Q1 FY24 Q1 FY23 % Change Q1 FY23 Q1 FY22 % Cha
Slide 17: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (US$ in millions, except per share) Net Sales Adjusted Diluted Earnings per share from Continuing Operations (4) Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Enerpac Tool Group 139 142 156 161 142 Net Earnings 0.13 0.08 0.22 0.40
Slide 18: 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 Selling, general and administrative expenses $ 54 $ 55 $ 51 $ 52 $ 45 Selling, general and administrative expenses % 38.9% 38.8% 32.7% 32.3% 31.4% Selli
Slide 19: Reconciliation of Non-GAAP Measures
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 & amortization. Neith