NYSE$EPAC

Enerpac Tool Group Corp · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Enerpac Tool Group's Q1 2023 earnings increased due to solid broad-based demand and ASCEND transformation program.

Enerpac Tool Group reported a strong first quarter in fiscal year 2023, driven by solid broad-based demand across all regions and double-digit core growth in the Americas and Europe. The company's performance was highlighted by strong core sales growth, continued year-over-year EBITDA margin expansion, and solid free cash flow generation. The company remains focused on supporting its customers and executing on its ASCEND transformation program to deliver profitable growth.

  • Net sales were $139 million, with a 13% year-over-year increase in core sales.
  • GAAP operating margin was 8.8% and adjusted operating margin was 16.6%.
  • GAAP diluted 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.

Headline financials

Total Revenue

$139M

Previous: $131M+6.5%
EPS (adj)

$0.29

Previous: $0.16+81.2%
Adjusted EBITDA Margin

19.1%

No prior period
Adjusted Operating Margin

16.6%

No prior period
Net Debt to Adj. EBITDA

0.7

No prior period
Free Cash Flow

$7.45M

Previous: $2.79M+167.3%
Net Income

$7.45M

Previous: $2.79M+167.3%
Operating Income

$12.3M

Previous: $6.41M+92.1%
Gross Profit

$67.9M

Previous: $59.6M+13.9%
Cash & Equivalents

$129M

Previous: $127M+2.1%
Total Assets

$774M

Previous: $812M-4.7%
Stock-Based Comp

$2.16M

Previous: $6.15M-64.9%

Revenue & EPS history

Enerpac · Revenue · Quarterly

$139M

Q1 2023+6.5%vs Q1 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Enerpac · $139M total across 2 segments · Q1 2023

  • Industrial Tools & Services
    $127M+4.9%
  • Other
    $12.1M+26.0%

Forward guidance

The company is not making any changes to its fiscal 2023 guidance announced in September, which continues to be full-year net sales of $565 to $585 million and an adjusted EBITDA range of $113 to $123 million, including an ASCEND EBITDA benefit of $12 to $18 million. The guidance is based on foreign exchange rates as noted in September and assumes that there is not a broad-based recession.

Tailwinds

  • ASCEND transformation program is expected to drive significant changes and enhancements across the organization.
  • New management team, mission, and strategic focus are expected to unlock the full potential of Enerpac Tool Group.
  • Full-year net sales are projected to be between $565 and $585 million.
  • Adjusted EBITDA is expected to range from $113 to $123 million.
  • ASCEND EBITDA benefit is projected to be between $12 and $18 million.

Headwinds

  • Guidance is based on foreign exchange rates as noted in September.
  • Guidance assumes that there is not a broad-based recession.
  • Economic uncertainty may impact market conditions in various industries.
  • Geopolitical activity, including the invasion of Ukraine by Russia, could pose risks.
  • Supply chain risks and material, labor, or overhead cost increases could affect results.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-1.8%

Avg return

Earnings day

-1.4%

Avg return

5 days after

-0.0%

Avg return

30 days after

33%

22 / 67 earnings

Positive

+14.9%

Q4 2023

Best reaction

-14.6%

Q1 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026
Q2 2026-0.7%-2.2%
Q1 2026-8.9%+1.5%+3.7%
Q4 2025+5.2%+5.4%-3.8%
Q3 2025+0.9%+0.2%+13.0%
Q2 2025+8.4%+3.3%-7.5%
Q1 2025-5.2%-10.4%-6.5%
Q4 2024-1.9%+0.3%+9.6%
Q3 2024-2.8%-0.8%+4.1%
Q2 2024+0.3%+1.6%+1.0%
Q1 2024+3.9%+10.3%-0.2%
Q4 2023+14.9%+8.6%+10.5%
Q3 2023+1.8%-3.6%+0.1%
Q2 2023-5.2%-4.2%-9.5%
Q1 2023+5.4%+6.2%+2.4%
Q4 2022+10.2%+10.7%+54.4%
Q3 2022-5.6%-5.9%+2.4%
Q2 2022+6.3%+8.5%+2.8%
Q1 2022-10.7%-8.5%-16.3%
Q4 2021-10.4%-6.7%-9.7%
Q3 2021+6.2%+9.0%+3.1%
Q2 2021-0.7%+3.4%+6.6%
Q1 2021-4.4%-4.1%-2.5%
Q4 2020-8.1%-4.1%-10.8%
Q3 2020-2.7%+2.6%+12.1%
Q2 2020-8.9%-6.6%-6.0%
Q1 2020+2.4%+1.0%-6.1%
Q4 2019-11.0%-14.2%-2.3%
Q3 2019-0.7%+2.8%-4.9%
Q2 2019-8.6%-7.9%+1.1%
Q1 2019-14.6%-16.4%-1.9%
Q4 2018-6.6%-6.6%-21.5%
Q3 2018+13.7%+12.9%+7.9%
Q2 2018-5.1%-2.7%+3.4%
Q1 2018-11.1%-10.5%-5.5%
Q4 2017-4.5%-4.3%-3.7%
Q3 2017-0.6%+3.7%+3.7%
Q2 2017-6.7%-10.8%-10.7%
Q1 2017-3.9%-5.3%-4.2%
Q4 2016+0.8%+6.4%+1.3%
Q3 2016-7.9%-19.8%-10.6%
Q2 2016+6.0%
Q1 2016+5.3%
Q4 2015+6.6%
Q3 2015-2.3%
Q2 2015+0.7%
Q1 2015-6.4%
Q4 2011+4.0%
Q4 2014+0.7%
Q3 2014-5.8%
Q2 2014+2.0%
Q1 2014-5.5%
Q4 2013+0.1%
Q3 2013-2.7%
Q2 2013-3.6%
Q1 2013-5.8%
Q1 2012-5.8%
Q4 2012-4.1%
Q3 2012-7.6%
Q2 2012-1.6%
Q4 2009-4.6%
Q3 2010-2.7%
Q3 2011-2.7%
Q2 2011-3.4%
Q2 2010-3.4%
Q1 2010-0.9%
Q1 2011-0.9%
Q4 2010-0.9%

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