Company profile

Ticker
EPAC
Exchange
CEO
Randal Wayne Baker
Employees
Incorporated in
Location
Fiscal year end
Former names
Applied Power Inc
SEC CIK
IRS number
390168610

EPAC stock data

(
)

Calendar

29 Oct 19
11 Dec 19
31 Aug 20

News

Company financial data Financial data

Quarter (USD) Aug 19 May 19 Feb 19 Nov 18
Revenue -204.95M 295.27M 271.91M 292.53M
Net income -266.86M 32.42M 2.75M -17.45M
Diluted EPS -4.33 0.52 0.04 -0.29
Net profit margin 130% 10.98% 1.01% -5.97%
Operating income -6.88M 47.36M 16.35M -9.32M
Net change in cash 9.82M 30.95M -33.06M -47.05M
Cash on hand 211.15M 201.33M 170.39M 203.44M
Cost of revenue -183.2M 183.37M 174.42M 187.52M
Annual (USD) Aug 19 Aug 18 Aug 17 Aug 16
Revenue 654.76M 1.18B 1.1B 1.15B
Net income -249.15M -21.65M -66.21M -105.17M
Diluted EPS -4.04 -0.35 -1.11 -1.78
Net profit margin -38.05% -1.83% -6.04% -9.15%
Operating income 47.52M 50.21M -84.85M -100.22M
Net change in cash -39.34M 20.92M 49.97M 10.76M
Cash on hand 211.15M 250.49M 229.57M 179.6M
Cost of revenue 362.11M 358.02M 356.22M 746.01M

Financial data from Actuant earnings reports

Financial report summary

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Risks
  • Deterioration of, or instability in, the domestic and international economy and challenging end market conditions could impact our ability to grow the business and adversely impact our financial condition, results of operations and cash flows.
  • If we fail to develop new products, or customers do not accept our new products, our business could be adversely affected.
  • Divestitures and discontinued operations could negatively impact our business, and retained liabilities from businesses that we sell could adversely affect our financial results.
  • Our growth strategy includes strategic acquisitions. We may not be able to consummate future acquisitions or successfully integrate them.
  • We may not be able to realize planned benefits from acquired companies.
  • The indemnification provisions of acquisition agreements may result in unexpected liabilities.
  • Our goodwill and other intangible assets represent a substantial amount of our total assets.
  • Our indebtedness could harm our operating flexibility and competitive position.
  • The financial and other covenants in our debt agreements may adversely affect us.
  • Our businesses operate in highly competitive markets, so we may be forced to cut prices or incur additional costs.
  • Our international operations pose currency and other risks.
  • Geopolitical unrest and terrorist activities may cause the economic conditions in the U.S. or abroad to deteriorate, which could harm our business.
  • Our significant reliance on third-party suppliers for components for the manufacture, assembly and sale of our products involves risks.
  • A material disruption at a significant manufacturing facility could adversely affect our ability to generate sales and result in increased costs that we cannot recover.
  • Large or rapid increases in the costs of commodities and raw materials, including impact of tariffs, or substantial decreases in their availability could adversely affect our operations.
  • We are subject to a wide variety of laws and regulations that may change in ways that are detrimental to our competitiveness or results.
  • Costs and liabilities arising from legal proceedings could be material and adversely impact our financial results.
  • Legal compliance risks could result in significant costs to our business or cause us to restrict current activities or curtail growth plans.
  • Health, Safety and Environmental laws and regulations may result in additional costs.
  • Our inability to attract, develop and retain qualified employees could have a material adverse impact on our operations.
  • Cyber security vulnerabilities, threats and more sophisticated and targeted computer crime could pose a risk to our systems, networks, products, solutions, services and data.
  • Our intellectual property portfolio may not prevent competitors from developing products and services similar to or duplicative to ours, and the value of our intellectual property may be negatively impacted by external dependencies.
  • Our competitors or other persons could assert that we have infringed their intellectual property rights.
  • Our customers and other business partners often require terms and conditions that expose us to significant risks and liabilities.
Management Discussion
  • Consolidated sales from continuing operations in fiscal 2019 were $655 million, 2% higher than the prior year sales of $641 million. Core sales increased 4% due to solid core sales growth in the IT&S segment (5%). Changes in foreign currency exchange rates unfavorably impacted sales comparisons by 2%. Gross profit margins remained relatively consistent year-over-year. We benefited from our strategic exit of highly customized heavy lifting projects which provided lower gross profit margins, offset from higher service & rental sales which provide lower gross profit margins. Operating profit was lower in fiscal 2019 as compared to fiscal 2018 as a result of increased impairment and divestiture charges. In fiscal 2019, we incurred $14 million of goodwill impairment charges associated with triggering events impacting Cortland U.S., $6 million of impairment & divestiture charges associated with the impairment of a customer relationship intangible in connection with the strategic exit of certain North America service offerings and $3 million of trade name impairment & divestiture charges associated with a re-branding strategy which will ultimately eliminate the use of certain secondary brands within the IT&S segment that were previously determined to be indefinite lived. In fiscal 2018, we incurred $3 million of impairment & divestiture charges associated with the divestiture of our Viking business. Financing costs also decreased in fiscal 2019 as a result of the execution of our capital allocation strategy to utilize cash to reduce our debt by $73 million over the course of fiscal 2019 in addition to reduced interest costs on our new Senior Credit Facility. Our income tax expense also decreased in fiscal 2019 as discussed in further detail within the Income Tax Expense section below.
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