Posted December 21, 2022

Enerpac Tool Group reports 13% YOY sales increase for fiscal Q1'23

Enerpac Tool Group Corp. has announced its net sales were $139 million, with a 13% year-over-year increase in core sales driven by continued solid broad-based demand; the strengthening of the U.S. dollar reduced sales by 6% year over year.

The company's GAAP operating margin was 8.8% and adjusted operating margin was 16.6%, and adjusted EBITDA margin was 19.1%, an increase of 570 basis points year over year.

"During the quarter we continued to experience solid broad-based demand across all our regions, and we delivered double digit core growth in both the Americas and Europe,” said Paul Sternlieb, Enerpac Tool Group’s president & CEO. “We were pleased with our performance as demonstrated by our strong core sales growth, continued year-over-year EBITDA margin expansion, and solid free cash flow generation. We remain focused on supporting our customers and executing on our ASCEND transformation program to deliver profitable growth and ensure that the company is positioned for long term success.”

Other highlights include:

  • GAAP diluted earnings per share (“EPS”) was $0.11 and adjusted diluted EPS was $0.29
  • Generated cash flow from operations of $18 million and free cash flow of $16 million
  • Leverage (Net Debt to Adjusted EBITDA) was 0.7x at November 30, 2022
  • Refinanced Senior Credit Facility
  • Unveiled focused growth strategy "Raising the Bar” at Investor Day
  • No change to full year fiscal 2023 guidance

Sternlieb added, “We were excited to unveil our focused growth strategy and our new financial targets at our Investor Day in November. It was a great opportunity to interact with the investment community, highlight the strength of our management team, and demonstrate the exciting initiatives underway to unlock the full potential of the Enerpac Tool Group business. With the diversity of end markets we serve, our strong balance sheet, and the work that we are doing to execute on our ASCEND transformation program, we believe that we are well positioned to manage through an uncertain economic environment.”

*The company's news release contains financial measures in accordance with US Generally Accepted Accounting Principles (“GAAP”) in addition to non-GAAP financial measures. Reconciliations of the GAAP to non-GAAP financial measures can be found in the tables accompanying this release.