EX-99.2
3
atu-12062017xexhibit992.htm
EXHIBIT 99.2
Exhibit
Exhibit 99.2
ACTUANT CORPORATION
Unaudited Pro Forma Consolidated Financial Statements
The following Unaudited Pro Forma Consolidated Financial Statements of Actuant Corporation (the "Company") have been prepared to reflect the December 1, 2017 sale of Viking SeaTech ("Viking") as described in Item 2.01 of the Current Report on Form 8-K filed with the Securities and Exchange Commission on December 6, 2017. This pro forma information is based on the historical consolidated financial statements of the Company and should be read in conjunction with the accompanying footnotes and the financial statements included in the Company's Annual Report on Form 10-K for the year ended August 31, 2017.
The accompanying Unaudited Pro Forma Consolidated Balance Sheet as of August 31, 2017 has been prepared to give effect to the divestiture as if it had occurred on August 31, 2017. The Unaudited Pro Forma Consolidated Statement of Operations for the year ended August 31, 2017 has been prepared to give effect to the divestiture as if it had occurred on September 1, 2016.
The Unaudited Pro Forma Consolidated Financial Statements include specific assumptions and adjustments related to the sale of Viking. Actual results may differ significantly from those reflected here in the Unaudited Consolidated Pro Forma Financial Statements for various reasons. The pro forma adjustments in the Unaudited Pro Forma Consolidated Balance Sheet and the Unaudited Pro Forma Statement of Operations included herein include the use of estimates and assumptions as described in the accompanying notes. The adjustments are based upon presently available information and assumptions that management believes are reasonable under the circumstances as of the date of this filing. The Unaudited Pro Forma Balance Sheet and Unaudited Pro Forma Statement of Operations include no assumptions regarding the use of net proceeds, which are presented as cash and cash equivalents on the Unaudited Pro Forma Consolidated Balance Sheet. Accordingly, the actual effect of the sale, due to this and other factors, including but not limited to changes in foreign currency exchange rates and changes in balances of the assets and liabilities of Viking, could differ significantly from the pro forma adjustments presented herein. The Company believes the current estimates provide a reasonable basis of presenting the significant effects of the transaction. However, the estimates and assumptions are subject to change as additional information becomes available.
The Unaudited Pro Forma Consolidated Balance Sheet and Unaudited Pro Forma Consolidated Statement of Operations are presented for informational purposes only. They are not intended to represent or be indicative of the consolidated financial position that would have occurred had the sale been completed as of August 31, 2017, in the case of the Unaudited Pro Forma Consolidated Balance Sheet, or September 1, 2016, in the case of the Unaudited Pro Forma Consolidated Statement of Operations, nor are they intended to be indicative of future results of operations or financial position.
Actuant Corporation
Pro Forma Consolidated Balance Sheet
August 31, 2017
(Unaudited)
(Dollars in thousands)
As
Pro Forma
Pro Forma
Reported
Adjustments
Adjusted
ASSETS
Current assets
Cash and cash equivalents
$
229,571
$
(19,989
)
(a)
$
209,582
Accounts receivable, net
190,206
-
190,206
Inventories, net
143,651
-
143,651
Assets held for sale
21,835
(21,835
)
(b)
-
Other current assets
61,663
-
61,663
Total current assets
646,926
(41,824
)
605,102
Property, plant and equipment
94,521
-
94,521
Goodwill
530,081
-
530,081
Other intangible assets, net
220,489
-
220,489
Other long-term assets
24,938
-
24,938
Total assets
$
1,516,955
$
(41,824
)
$
1,475,131
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Trade accounts payable
$
133,387
$
-
$
133,387
Accrued compensation and benefits
50,939
-
50,939
Current maturities of debt and short-term borrowings
30,000
-
30,000
Income taxes payable
6,080
(951
)
(c)
5,129
Liabilities held for sale
101,083
(101,083
)
(b)
-
Other current liabilities
57,445
805
(c)
58,250
Total current liabilities
378,934
(101,229
)
277,705
Long-term debt, net
531,940
-
531,940
Deferred income taxes
29,859
-
29,859
Pension and postretirement benefit liabilities
19,862
-
19,862
Other long-term liabilities
55,821
4,200
(c)
60,021
Total liabilities
1,016,416
(97,029
)
919,387
Shareholders' equity
-
Capital stock
16,040
-
16,040
Additional paid-in capital
138,449
-
138,449
Treasury stock
(617,731
)
-
(617,731
)
Retained earnings
1,191,042
(13,714
)
(d)
1,177,328
Accumulated other comprehensive loss
(227,261
)
68,919
(b)
(158,342
)
Stock held in trust
(2,696
)
-
(2,696
)
Deferred compensation liability
2,696
-
2,696
Total shareholders' equity
500,539
55,205
555,744
Total liabilities and shareholders' equity
$
1,516,955
$
(41,824
)
$
1,475,131
Actuant Corporation
Pro Forma Consolidated Statement of Operations
Year Ended August 31, 2017
(Unaudited)
(Dollars in thousands, except per share amounts)
As
Pro Forma
Pro Forma
Reported
Adjustments
Adjusted
Net sales
$
1,095,784
$
(18,709
)
(e)
$
1,077,075
Cost of products sold
716,067
(23,722
)
(e)
692,345
Gross profit
379,717
5,013
384,730
Selling, administrative and engineering expenses
277,488
(6,710
)
(e)
270,778
Amortization of intangible assets
20,474
-
20,474
Director & officer transition charges
7,784
-
7,784
Restructuring charges
7,228
-
7,228
Impairment & other divestiture charges
116,979
-
116,979
Operating loss
(50,236
)
11,723
(38,513
)
Financing costs, net
29,703
-
29,703
Other expense, net
2,752
-
2,752
Loss before income tax benefit
(82,691
)
11,723
(70,968
)
Income tax benefit
(16,478
)
1,586
(f)
(14,892
)
Net loss
$
(66,213
)
$
10,137
$
(56,076
)
Loss per share
Basic
$
(1.11
)
$
0.17
$
(0.94
)
Diluted
$
(1.11
)
$
0.17
$
(0.94
)
Weighted average common shares outstanding
Basic
59,436
59,436
59,436
Diluted
59,436
59,436
59,436
ACTUANT CORPORATION
Notes to Unaudited Pro Forma Consolidated Financial Statements
Basis of Presentation
On December 1, 2017, Actuant Corporation ("Actuant") completed the sale of its Viking SeaTech ("Viking") business to Acteon Group Limited ("Acteon"). The purchase price was $12 million and was paid in cash at the closing of the transaction, subject to closing working capital, cash and indebtedness and other adjustments.
The accompanying Unaudited Pro Forma Consolidated Balance Sheet as of August 31, 2017 has been prepared to give effect to the divestiture as if it had occurred on August 31, 2017. The Unaudited Pro Forma Consolidated Statement of Operations for the year ended August 31, 2017 has been prepared to give effect to the divestiture as if it had occurred on September 1, 2016.
Proforma Adjustments
Balance Sheet adjustments
(a)
Represents estimated net sale proceeds ($12 million less certain transaction costs and closing adjustments), offset by cash payments totaling $27 million resulting from the buyout of operating leases of Viking rental assets.
(b)
Reflects the elimination of the assets, liabilities and accumulated other comprehensive loss amounts associated with the disposition of the Viking business.
(c)
Represents the recognition of real estate lease exit liabilities and related income tax impact related to retained facilities that will no longer be utilized upon closing of the divestiture.
(d)
Represents the recognition of the anticipated after tax divestiture loss (including the exit lease charges), which would have been realized upon the disposition of the Viking business had the transaction closed on August 31, 2017. These adjustments are not included in the pro forma adjustments within the Unaudited Pro Forma Consolidated Statement of Operations as these amounts will be included in the Consolidated Statement of Operations of the registrant within twelve months following the transaction.
Statement of Operations adjustments
(e)
Reflects adjustments to remove direct revenues and expenses associated with the Viking business.
(f)
Reflects estimated ongoing income taxes related to the Viking business based on statutory rates adjusted for certain deductions and timing differences.

EX - 99 . 2 3 atu - 12062017xexhibit992 . htm EXHIBIT 99 . 2 Exhibit Exhibit 99 . 2 ACTUANT CORPORATION Unaudited Pro Forma Consolidated Financial Statements The following Unaudited Pro Forma Consolidated Financial Statements of Actuant Corporation ( the " Company " ) have been prepared to reflect the December 1 , 2017 sale of Viking SeaTech ( " Viking " ) as described in Item 2 . 01 of the Current Report on Form 8 - K filed with the Securities and Exchange Commission on December 6 , 2017 . This pro forma information is based on the historical consolidated financial statements of the Company and should be read in conjunction with the accompanying footnotes and the financial statements included in the Company 's Annual Report on Form 10 - K for the year ended August 31 , 2017 . The accompanying Unaudited Pro Forma Consolidated Balance Sheet as of August 31 , 2017 has been prepared to give effect to the divestiture as if it had occurred on August 31 , 2017 . The Unaudited Pro Forma Consolidated Statement of Operations for the year ended August 31 , 2017 has been prepared to give effect to the divestiture as if it had occurred on September 1 , 2016 . The Unaudited Pro Forma Consolidated Financial Statements include specific assumptions and adjustments related to the sale of Viking . Actual results may differ significantly from those reflected here in the Unaudited Consolidated Pro Forma Financial Statements for various reasons . The pro forma adjustments in the Unaudited Pro Forma Consolidated Balance Sheet and the Unaudited Pro Forma Statement of Operations included herein include the use of estimates and assumptions as described in the accompanying notes . The adjustments are based upon presently available information and assumptions that management believes are reasonable under the circumstances as of the date of this filing . The Unaudited Pro Forma Balance Sheet and Unaudited Pro Forma Statement of Operations include no assumptions regarding the use of net proceeds , which are presented as cash and cash equivalents on the Unaudited Pro Forma Consolidated Balance Sheet . Accordingly , the actual effect of the sale , due to this and other factors , including but not limited to changes in foreign currency exchange rates and changes in balances of the assets and liabilities of Viking , could differ significantly from the pro forma adjustments presented herein . The Company believes the current estimates provide a reasonable basis of presenting the significant effects of the transaction . However , the estimates and assumptions are subject to change as additional information becomes available . The Unaudited Pro Forma Consolidated Balance Sheet and Unaudited Pro Forma Consolidated Statement of Operations are presented for informational purposes only . They are not intended to represent or be indicative of the consolidated financial position that would have occurred had the sale been completed as of August 31 , 2017 , in the case of the Unaudited Pro Forma Consolidated Balance Sheet , or September 1 , 2016 , in the case of the Unaudited Pro Forma Consolidated Statement of Operations , nor are they intended to be indicative of future results of operations or financial position . Actuant Corporation Pro Forma Consolidated Balance Sheet August 31 , 2017 ( Unaudited ) ( Dollars in thousands ) As Pro Forma Pro Forma Reported Adjustments Adjusted ASSETS Current assets Cash and cash equivalents $ 229,571 $ ( 19,989 ) ( a ) $ 209,582 Accounts receivable , net 190,206 - 190,206 Inventories , net 143,651 - 143,651 Assets held for sale 21,835 ( 21,835 ) ( b ) - Other current assets 61,663 - 61,663 Total current assets 646,926 ( 41,824 ) 605,102 Property , plant and equipment 94,521 - 94,521 Goodwill 530,081 - 530,081 Other intangible assets , net 220,489 - 220,489 Other long - term assets 24,938 - 24,938 Total assets $ 1,516,955 $ ( 41,824 ) $ 1,475,131 LIABILITIES AND SHAREHOLDERS ' EQUITY Current liabilities Trade accounts payable $ 133,387 $ - $ 133,387 Accrued compensation and benefits 50,939 - 50,939 Current maturities of debt and short - term borrowings 30,000 - 30,000 Income taxes payable 6,080 ( 951 ) ( c ) 5,129 Liabilities held for sale 101,083 ( 101,083 ) ( b ) - Other current liabilities 57,445 805 ( c ) 58,250 Total current liabilities 378,934 ( 101,229 ) 277,705 Long - term debt , net 531,940 - 531,940 Deferred income taxes 29,859 - 29,859 Pension and post retirement benefit liabilities 19,862 - 19,862 Other long - term liabilities 55,821 4,200 ( c ) 60,021 Total liabilities 1,016,416 ( 97,029 ) 919,387 Shareholders ' equity - Capital stock 16,040 - 16,040 Additional paid - in capital 138,449 - 138,449 Treasury stock ( 617,731 ) - ( 617,731 ) Retained earnings 1,191,042 ( 13,714 ) ( d ) 1,177,328 Accumulated other comprehensive loss ( 227,261 ) 68,919 ( b ) ( 158,342 ) Stock held in trust ( 2,696 ) - ( 2,696 ) Deferred compensation liability 2,696 - 2,696 Total shareholders ' equity 500,539 55,205 555,744 Total liabilities and shareholders ' equity $ 1,516,955 $ ( 41,824 ) $ 1,475,131 Actuant Corporation Pro Forma Consolidated Statement of Operations Year Ended August 31 , 2017 ( Unaudited ) ( Dollars in thousands , except per share amounts ) As Pro Forma Pro Forma Reported Adjustments Adjusted Net sales $ 1,095,784 $ ( 18,709 ) ( e ) $ 1,077,075 Cost of products sold 716,067 ( 23,722 ) ( e ) 692,345 Gross profit 379,717 5,013 384,730 Selling , administrative and engineering expenses 277,488 ( 6,710 ) ( e ) 270,778 Amortization of intangible assets 20,474 - 20,474 Director & officer transition charges 7,784 - 7,784 Restructuring charges 7,228 - 7,228 Impairment & other divestiture charges 116,979 - 116,979 Operating loss ( 50,236 ) 11,723 ( 38,513 ) Financing costs , net 29,703 - 29,703 Other expense , net 2,752 - 2,752 Loss before income tax benefit ( 82,691 ) 11,723 ( 70,968 ) Income tax benefit ( 16,478 ) 1,586 ( f ) ( 14,892 ) Net loss $ ( 66,213 ) $ 10,137 $ ( 56,076 ) Loss per share Basic $ ( 1 . 11 ) $ 0 . 17 $ ( 0 . 94 ) Diluted $ ( 1 . 11 ) $ 0 . 17 $ ( 0 . 94 ) Weighted average common shares outstanding Basic 59,436 59,436 59,436 Diluted 59,436 59,436 59,436 ACTUANT CORPORATION Notes to Unaudited Pro Forma Consolidated Financial Statements Basis of Presentation On December 1 , 2017 , Actuant Corporation ( " Actuant " ) completed the sale of its Viking SeaTech ( " Viking " ) business to Acteon Group Limited ( " Acteon " ) . The purchase price was $ 12 million and was paid in cash at the closing of the transaction , subject to closing working capital , cash and indebtedness and other adjustments . The accompanying Unaudited Pro Forma Consolidated Balance Sheet as of August 31 , 2017 has been prepared to give effect to the divestiture as if it had occurred on August 31 , 2017 . The Unaudited Pro Forma Consolidated Statement of Operations for the year ended August 31 , 2017 has been prepared to give effect to the divestiture as if it had occurred on September 1 , 2016 . Proforma Adjustments Balance Sheet adjustments ( a ) Represents estimated net sale proceeds ( $ 12 million less certain transaction costs and closing adjustments ) , offset by cash payments totaling $ 27 million resulting from the buyout of operating leases of Viking rental assets . ( b ) Reflects the elimination of the assets , liabilities and accumulated other comprehensive loss amounts associated with the disposition of the Viking business . ( c ) Represents the recognition of real estate lease exit liabilities and related income tax impact related to retained facilities that will no longer be utilized upon closing of the divestiture . ( d ) Represents the recognition of the anticipated after tax divestiture loss ( including the exit lease charges ) , which would have been realized upon the disposition of the Viking business had the transaction closed on August 31 , 2017 . These adjustments are not included in the pro forma adjustments within the Unaudited Pro Forma Consolidated Statement of Operations as these amounts will be included in the Consolidated Statement of Operations of the registrant within twelve months following the transaction . Statement of Operations adjustments ( e ) Reflects adjustments to remove direct revenues and expenses associated with the Viking business . ( f ) Reflects estimated ongoing income taxes related to the Viking business based on statutory rates adjusted for certain deductions and timing differences .
O O O O O O O O O O O O O O O O O O O O B-Parties.SELLING_COMPANY I-Parties.SELLING_COMPANY O O O O O O O O O O O O O O O B-Parties.SELLING_COMPANY I-Parties.SELLING_COMPANY O O O O O O O O O O O O O O O O O O B-Parties.ACQUIRED_COMPANY I-Parties.ACQUIRED_COMPANY O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O B-Parties.SELLING_COMPANY I-Parties.SELLING_COMPANY O O O O O O O O O O B-Parties.ACQUIRED_COMPANY I-Parties.ACQUIRED_COMPANY O O O O O O O B-Parties.BUYING_COMPANY I-Parties.BUYING_COMPANY I-Parties.BUYING_COMPANY O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O