Business Wire | Mar 24, 2021 08:30AM EDT

Enerpac Tool Group Reports Second Quarter Fiscal 2021 Results and Provides Outlook for Remainder of Fiscal Year

Mar. 24, 2021

MILWAUKEE--(BUSINESS WIRE)--Mar. 24, 2021--Enerpac Tool Group Corp. (NYSE: EPAC) (the "Company") today announced results for its fiscal second quarter ended February 28, 2021.

"Our second quarter showed a number of encouraging signs in the face of a market that continues to be affected by the COVID-19 pandemic," said Randy Baker, Enerpac Tool Group's President and CEO. "As anticipated, we saw a sequential sales increase despite the seasonal decrease we typically see in the second quarter. I am encouraged by the positive sentiment among our distributors with some modest improvement in stocking activity in the quarter along with the overall improving level of project activity we are experiencing. Collectively, these serve as clear indicators of the ongoing market recovery."

Mr. Baker added, "As we have progressed through the pandemic we have kept a long-term view of our business and remained focused on our key strategic initiatives, including investing in new product development, managing our acquisition pipeline, driving greater levels of dealer and customer engagement, and building a culture of inclusion and acceptance for our employees. At the same time, we have been disciplined in our response to shorter term challenges and we have maintained our strong balance sheet, paying down $45 million in debt in the quarter with leverage well within our preferred range. As we move forward and enter a post-COVID world, we believe we are well-positioned to capitalize on growth and increase both profitability and shareholder returns as we pursue our long-term vision as a pure play industrial tool company."

Consolidated Results from Continuing Operations

(US$ in millions, except per share)

Three Months Ended Six Months Ended

February February February February 28, 29, 28, 29, 2021 2020 2021 2020

Net Sales $120.7 $133.4 $240.1 $280.1

Net Income $3.6 $3.9 $8.4 $10.3

Earnings Per Share $0.06 $0.06 $0.14 $0.17

Adjusted Diluted Earnings $0.06 $0.09 $0.15 $0.21Per Share

* Consolidated net sales from continuing operations for the second quarter were $120.7 million compared to $133.4 million in the prior year second quarter. Core sales decreased 11% year-over-year, with product sales down 11% and service down 12%. The net impact of acquisitions and divestitures/strategic exits decreased net sales by an additional 1%, and the impact of foreign currency increased net sales 2%. * Fiscal 2021 second quarter net income from continuing operations and diluted earnings per share from continuing operations were $3.6 million and $0.06, respectively, compared to net income from continuing operations of $3.9 million and diluted earnings per share from continuing operations of $0.06 in the second quarter of fiscal 2020. Fiscal 2021 second quarter net income from continuing operations included: An impairment & divestiture charge of $0.4 million ($0.3 million or $0.01 per share, after tax); Restructuring charges of $0.6 million ($0.6 million or $0.01 per share, after tax), related to a previously announced restructuring plan; and Tax benefits of $0.6 million ($0.01 per share) related to equity compensation deferred tax adjustments. * Fiscal 2020 second quarter net income from continuing operations included a net impairment & divestiture gain of $0.8 million ($0.5 million or $0.01 per share, after tax), restructuring charges of $1.9 million ($1.7 million or $0.04 per share, after tax) related to the restructuring plan announced in fiscal 2019 and facility consolidations and purchase accounting charges of $0.2 million ($0.2 million after tax). * Excluding restructuring, impairment & divestiture charges and tax adjustments, adjusted diluted EPS from continuing operations was $0.06 for the second quarter of fiscal 2021 compared to $0.09 in the comparable prior year period. * Consolidated net sales for the six months ended February 28, 2021 were $240.1 million, compared to $280.1 million in the comparable prior year period. Core sales decreased 15% year-over-year, while the net impact of acquisitions and divestitures/strategic exits decreased net sales by 1% and the impact of foreign currency benefited net sales 2%. * Fiscal 2021's first half net income from continuing operations and diluted EPS from continuing operations were $8.4 million and $0.14, respectively, compared to net income from continuing operations and diluted EPS from continuing operations of $10.3 million and $0.17, respectively, in the comparable prior year period.

Industrial Tools & Services (IT&S)

(US$ in millions)

Three Months Ended Six Months Ended

February February February February 28, 29, 28, 29, 2021 2020 2021 2020

Sales $112.7 $123.4 $224.9 $259.0

Operating Profit $13.9 $20.6 $31.0 $46.6

Adjusted Op Profit ^(1) $14.9 $21.0 $32.2 $46.9

Adjusted Op Profit % ^ 13.2% 17.0% 14.3% 18.1%(1)

^(1) Excludes $0.6 million of restructuring charges and $0.4 million ofimpairment & divestiturecharges in the second quarter of fiscal 2021 compared to $1.0 million ofrestructuring charges,$0.8 million of net impairment & divestiture gains, along with $0.2 million ofpurchase accountingcharges in the second quarter of fiscal 2020. The six months ended February 28,2021 excludes$0.7 million of restructuring charges and $0.5 million of net impairment &divestiture chargescompared to $2.2 million of restructuring charges, $2.1 million of netimpairment & divestituregains and $0.2 million of purchase accounting charges.

* Second quarter fiscal 2021 net sales were $112.7 million, 9% lower than the prior fiscal year's second quarter net sales. Core sales decreased 10% year-over-year, while the net impact of acquisitions and divestitures/strategic exits decreased net sales 1% and the impact of foreign currency increased net sales 2%. * The decrease in revenue is attributable to the decline in demand primarily due to the COVID-19 pandemic. * Adjusted operating profit margin of 13.2% in the quarter decreased year-over-year primarily due to reduced sales volume, partially offset by significant savings from effective cost management and restructuring initiatives.

Corporate Expenses and Income Taxes (excluding restructuring items)

* Corporate expenses from continuing operations of $6.3 million for the second quarter of fiscal 2021 were $4.1 million lower than the comparable prior year period, primarily resulting from lower operating costs due to the prior year divestiture of the former Engineered Components & Systems (EC&S) segment, savings from restructuring initiatives and lower consulting fees offset by higher medical insurance and incentive compensation costs. * The fiscal 2021 second quarter effective income tax rate from continuing operations of approximately 16% was slightly higher than the second quarter fiscal 2020 rate of approximately 15%.

Discontinued Operations

Discontinued operations represent operating results for the divested EC&S segment through the October 31, 2019 completion date of the divestiture, as well as impacts from certain retained liabilities subsequent to the completion date.

Balance Sheet and Leverage

(US$ in millions)

Period Ended

February 28, November 30, February 29, 2021 2020 2020

Cash Balance $115.3 $158.6 $163.4

Debt Balance $210.0 $255.0 $286.4

Net Debt to Adjusted EBITDA** 2.1 1.9 1.3

Net debt at February 28, 2021 was approximately $95 million (total debt of $210 million less $115 million of cash), which decreased approximately $1 million from the prior quarter. Net Debt to Adjusted EBITDA from continuing operations was 2.1x at February 28, 2021.

**Calculated in accordance with the terms of the Company's March 2019 SeniorCredit Facility

Outlook

Mr. Baker continued, "While some uncertainty remains as we enter the back half of our fiscal year, we are optimistic that growth will continue to accelerate in the coming months as demand improves and our markets return to a normalized level of activity. For the second half of fiscal 2021, and barring any worsening COVID-19 conditions or related shutdowns, we expect sales to be in a range of $280 million to $290 million with continuing sequential improvement through the end of the fiscal year and anticipate incremental adjusted EBITDA margins on the high end of 35% to 45%, excluding the impact of currency. We expect to return to pre-COVID run rates as we exit the fiscal year."

Mr. Baker concluded, "Throughout the pandemic we have continued to drive our strategic initiatives. Looking ahead, we are confident in our ability to grow profitability and deliver increasing value for our shareholders. We look forward to returning to normalized run rates and executing our strategy as a pure play industrial tool company."

Conference Call Information

An investor conference call is scheduled for 10:00 am CT today, March 24, 2021. Webcast information and conference call materials are available on the Enerpac Tool Group company website (www.enerpactoolgroup.com).

Safe Harbor Statement

Certain of the above comments represent forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. Management cautions that these statements are based on current estimates of future performance and are highly dependent upon a variety of factors, which could cause actual results to differ from these estimates. Among other risks and uncertainties, Enerpac Tool Group's results are subject to risks and uncertainties arising from general economic conditions, the COVID-19 pandemic, including the impact of the pandemic or related government responses on the Company's business, the businesses of the Company's customers and vendors, employee mobility, and whether the Company's business and those of its customers and vendors will continue to be treated as "essential" operations under government orders restricting business activities or, even if so treated, whether site-specific health and safety concerns related to COVID-19 might otherwise require operations to be halted for some period of time, volatile oil pricing, variation in demand from customers, the impact of geopolitical activity on the economy, continued market acceptance of the Company's new product introductions, the successful integration of acquisitions, the impact of restructurings, operating margin risk due to competitive pricing and operating efficiencies, supply chain risk, material and labor cost increases, tax law changes, foreign currency fluctuations and interest rate risk. See the Company's Form 10-K for the fiscal year ended August 31, 2020 filed with the Securities and Exchange Commission for further information regarding risk factors. Enerpac Tool Group disclaims any obligation to publicly update or revise any forward-looking statements as a result of new information, future events or any other reason.

Non-GAAP Financial Information

This press release contains financial measures that are not measures presented in conformity with GAAP. These non-GAAP measures include EBITDA from continuing operations, adjusted EBITDA from continuing operations, adjusted earnings (loss) from continuing operations, adjusted diluted earnings (loss) per share from continuing operations, adjusted operating profit from continuing operations, segment adjusted operating profit and net debt. This press release includes reconciliations of historical non-GAAP measures to the most comparable GAAP measure, including in the tables attached to this press release. This press release does not include a reconciliation of non-GAAP measures presented for any future period. Such measures are calculated in a manner consistent with the presentation thereof for historical periods. Management believes the non-GAAP measures presented in this press release are commonly used financial measures for investors to evaluate Enerpac Tool Group's operating performance and financial position with respect to the periods presented and, when read in conjunction with the condensed consolidated financial statements, present a useful tool to evaluate ongoing operations and provide investors with metrics they can use to evaluate aspects of the Company's performance from period to period. In addition, these are some of the financial metrics management uses in internal evaluations of the overall performance of the Company's business. Management acknowledges that there are many items that impact a company's reported results and the adjustments reflected in these non-GAAP measures are not intended to present all items that may have impacted these results. In addition, these non-GAAP measures are not necessarily comparable to similarly titled measures used by other companies.

About Enerpac Tool Group

Enerpac Tool Group Corp. is a premier industrial tools and services company serving a broad and diverse set of customers in more than 100 countries. The Company's businesses are global leaders in high pressure hydraulic tools, controlled force products and solutions for precise positioning of heavy loads that help customers safely and reliably tackle some of the most challenging jobs around the world. The Company was founded in 1910 and is headquartered in Menomonee Falls, Wisconsin. Enerpac Tool Group trades on the NYSE under the symbol EPAC. For further information on Enerpac Tool Group and its businesses, visit the Company's website at www.enerpactoolgroup.com.

Enerpac Tool Group Corp.Condensed Consolidated Balance Sheets(Dollars in thousands)(Unaudited) February 28, August 31,

2021 2020

ASSETSCurrent assetsCash and cash equivalents $ 115,254 $ 152,170

Accounts receivable, net 94,984 84,170

Inventories, net 71,774 69,171

Other current assets 43,431 35,621

Total current assets 325,443 341,132

Property, plant and equipment, net 61,258 61,405

Goodwill 284,731 281,154

Other intangible assets, net 58,980 62,382

Other long-term assets 78,589 78,221

Total assets $ 809,001 $ 824,294

LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilitiesTrade accounts payable $ 49,736 $ 45,069

Accrued compensation and benefits 21,769 17,793

Income taxes payable 3,945 1,937

Other current liabilities 39,805 40,723

Total current liabilities 115,255 105,522

Long-term debt, net 210,000 255,000

Deferred income taxes 1,731 1,708

Pension and postretirement benefit liabilities 19,164 20,190

Other long-term liabilities 81,458 82,648

Total liabilities 427,608 465,068

Shareholders' equityCapital stock 16,576 16,519

Additional paid-in capital 197,036 193,492

Treasury stock (667,732 ) (667,732 )

Retained earnings 925,451 917,671

Accumulated other comprehensive loss (89,938 ) (100,724 )

Stock held in trust (2,996 ) (2,562 )

Deferred compensation liability 2,996 2,562

Total shareholders' equity 381,393 359,226

Total liabilities and shareholders' equity $ 809,001 $ 824,294

Enerpac Tool Group Corp.Condensed Consolidated Statements of Operations(Dollars in thousands, except per share amounts)(Unaudited) Three Months Ended Six Months Ended

February February February February 28, 29, 28, 29,

2021 2020 2021 2020

Net sales $ 120,654 $ 133,386 $ 240,084 $ 280,060

Cost of products sold 65,878 71,293 130,044 149,278

Gross profit 54,776 62,093 110,040 130,782

Selling, general and 45,883 50,245 89,593 102,076 administrative expensesAmortization of 2,136 2,120 4,272 3,993 intangible assetsRestructuring charges 649 1,929 859 3,900

Impairment & divestiture 401 (768 ) 539 (2,124 )charges (benefit)Operating profit 5,707 8,567 14,777 22,937

Financing costs, net 1,338 4,630 3,055 11,359

Other expense (income), 784 (787 ) 1,058 (468 )netEarnings before income 3,585 4,724 10,664 12,046 tax expense Income tax expense 1 806 2,258 1,756

Net earnings from 3,584 3,918 8,406 10,290 continuing operationsLoss from discontinued (402 ) (1,756 ) (626 ) (6,007 )operations, net ofincome taxesNet earnings $ 3,182 $ 2,162 $ 7,780 $ 4,283

Earnings per share fromcontinuing operationsBasic $ 0.06 $ 0.07 $ 0.14 $ 0.17

Diluted 0.06 0.06 0.14 0.17

Loss per share fromdiscontinued operationsBasic $ (0.01 ) $ (0.03 ) $ (0.01 ) $ (0.10 )

Diluted (0.01 ) (0.03 ) (0.01 ) (0.10 )

Earnings per shareBasic $ 0.05 $ 0.04 $ 0.13 $ 0.07

Diluted 0.05 0.04 0.13 0.07

Weighted average commonshares outstandingBasic 59,938 60,130 59,874 60,106

Diluted 60,269 60,513 60,180 60,557

Enerpac Tool Group Corp.Condensed Consolidated Statements of Cash Flows(In thousands)(Unaudited) Three Months Ended Six Months Ended

February February February February 29, 28, 29, 28,

2021 2020 2021 2020

Operating ActivitiesCash provided by (usedin) operating $ 4,608 $ (4,209 ) $ 13,500 $ (8,304 )activities - continuingoperationsCash used in operating (29 ) (1,605 ) (254 ) (20,437 )activities -discontinued operationsCash provided by (used 4,579 (5,814 ) 13,246 (28,741 )in) operatingactivities Investing ActivitiesCapital expenditures (3,725 ) (3,780 ) (5,630 ) (6,967 )

Lease buyout for - (575 ) - (575 )divested businessProceeds from sale of 548 288 595 450 property, plant andequipmentCash paid for business - (33,444 ) - (33,444 )acquisitions, net ofcash acquiredProceeds from sale of - - - 8,726 business, net oftransaction costsCash used in investing (3,177 ) (37,511 ) (5,035 ) (31,810 )activities - continuingoperationsCash provided by - 750 - 208,391 investing activities -discontinued operationsCash (used in) provided (3,177 ) (36,761 ) (5,035 ) 176,581 by investing activities Financing ActivitiesPrincipal repayments on - - - (175,000 )term loanBorrowings on revolving - - 10,000 100,000 credit facilityPrincipal repayments on (45,000 ) - (55,000 ) (100,000 )revolving creditfacilityPurchase of treasury - - - (17,805 )sharesStock options, taxespaid related to the net (1,625 ) (1,177 ) (1,799 ) (1,175 )share settlement ofequity awards & otherPayment of cash - - (2,394 ) (2,419 )dividendCash used in financing (46,625 ) (1,177 ) (49,193 ) (196,399 )activities - continuingoperationsCash provided by - - 750 - financing activities -discontinued operationsCash used in financing (46,625 ) (1,177 ) (48,443 ) (196,399 )activities Effect of exchange rate 1,909 409 3,316 845 changes on cash Net cash decrease from (43,285 ) (42,488 ) (37,412 ) (235,668 )continuing operationsNet cash (decrease) (29 ) (855 ) 496 187,954 increase fromdiscontinued operationsNet decrease from cash (43,314 ) (43,343 ) (36,916 ) (47,714 )and cash equivalentsCash and cash 158,568 206,780 152,170 211,151 equivalents - beginningof periodCash and cash $ 115,254 $ 163,437 $ 115,254 $ 163,437 equivalents - end ofperiodEnerpac Tool Group Corp.Supplemental Unaudited DataReconciliation of GAAP Measures to Non-GAAP Measures(Dollars in thousands) Fiscal 2020 Fiscal 2021 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTALSalesIndustrial Tool & $ 135,592 $ 123,361 $ 92,865 $ 103,044 $ 454,863 $ 112,175 $ 112,739 $ - $ - $ 224,915 Services SegmentOther 11,082 10,025 9,014 8,309 38,429 7,255 7,915 - - 15,169

Total $ 146,674 $ 133,386 $ 101,879 $ 111,353 $ 493,292 $ 119,430 $ 120,654 $ - $ - $ 240,084

% Sales GrowthIndustrial Tool & -9 % -17 % -44 % -29 % -25 % -17 % -9 % - - -13 %Services SegmentOther 12 % -2 % -21 % -39 % -15 % -35 % -21 % - - -28 %

Total -7 % -17 % -43 % -30 % -25 % -19 % -10 % - - -14 %

Operating Profit (Loss)from ContinuingOperationsIndustrial Tool & $ 25,928 $ 20,963 $ 8,228 $ 12,166 $ 67,284 $ 17,362 $ 14,880 $ - $ - $ 32,242 Services SegmentOther 399 (684 ) 21 (1,371 ) (1,635 ) (1,662 ) (1,834 ) - - (3,496 )

Corporate / General (11,342 ) (10,349 ) (8,197 ) (6,158 ) (36,045 ) (6,282 ) (6,289 ) - - (12,571 )

Adjusted operating $ 14,985 $ 9,930 $ 52 $ 4,637 $ 29,604 $ 9,418 $ 6,757 $ - $ - $ 16,175 profitImpairment & 1,356 768 1,443 (408 ) 3,159 (139 ) (401 ) - - (539 )divestiture benefit(charges)Restructuring & other (1,972 ) (1,929 ) (3,292 ) (987 ) (8,179 ) (210 ) (649 ) - - (859 )exit charges (1)Purchase accounting - (202 ) (201 ) - (403 ) - - - - - inventory step-upchargeOperating profit (loss) $ 14,369 $ 8,567 $ (1,998 ) $ 3,242 $ 24,181 $ 9,069 $ 5,707 $ - $ - $ 14,777

Adjusted OperatingProfit %Industrial Tool & 19.1 % 17.0 % 8.9 % 11.8 % 14.8 % 15.5 % 13.2 % - - 14.3 %Services SegmentOther 3.6 % -6.8 % 0.2 % -16.5 % -4.3 % -22.9 % -23.2 % - - -23.0 %

Adjusted Operating 10.2 % 7.4 % 0.1 % 4.2 % 6.0 % 7.9 % 5.6 % - - 6.7 %Profit %

EBITDA from ContinuingOperations (2)Earnings (loss) from $ 6,372 $ 3,918 $ (4,930 ) $ 197 $ 5,557 $ 4,822 $ 3,584 $ - $ - $ 8,406 continuing operationsFinancing costs, net 6,729 4,630 4,552 3,307 19,218 1,716 1,338 - - 3,055

Income tax expense 950 806 (407 ) 943 2,292 2,258 1 - - 2,258 (benefit)Depreciation & 4,779 5,277 5,318 5,347 20,720 5,458 5,507 - - 10,966 amortizationEBITDA $ 18,830 $ 14,631 $ 4,533 $ 9,794 $ 47,787 $ 14,254 $ 10,430 $ - $ - $ 24,685

Adjusted EBITDA fromContinuing Operations(2)Industrial Tool & $ 28,996 $ 24,022 $ 11,906 $ 15,938 $ 80,862 $ 21,002 $ 18,210 $ - $ - $ 39,212 Services SegmentOther 1,275 244 926 (449 ) 1,996 (740 ) (942 ) - - (1,682 )

Corporate / General (10,825 ) (8,272 ) (6,249 ) (5,058 ) (30,406 ) (5,659 ) (5,788 ) - - (11,447 )

Adjusted EBITDA $ 19,446 $ 15,994 $ 6,583 $ 10,431 $ 52,452 $ 14,603 $ 11,480 $ - $ - $ 26,083

Impairment & 1,356 768 1,443 (408 ) 3,159 (139 ) (401 ) - - (539 )divestiture benefit(charges)Restructuring & other (1,972 ) (1,929 ) (3,292 ) (987 ) (8,179 ) (210 ) (649 ) - - (859 )exit charges (1)Purchase accounting - (202 ) (201 ) - (403 ) - - - - - inventory step-upchargePension curtailment - - - 758 758 - - - - -

EBITDA $ 18,830 $ 14,631 $ 4,533 $ 9,794 $ 47,787 $ 14,254 $ 10,430 $ - $ - $ 24,685

Adjusted EBITDA %Industrial Tool & 21.4 % 19.5 % 12.8 % 15.5 % 17.8 % 18.7 % 16.2 % - - 17.4 %Services SegmentOther 11.5 % 2.4 % 10.3 % -5.4 % 5.2 % -10.2 % -11.9 % - - -11.1 %

Adjusted EBITDA % 13.3 % 12.0 % 6.5 % 9.4 % 10.6 % 12.2 % 9.5 % - - 10.9 %

Notes:(1) Approximately $0.8 million of the Q3 fiscal 2020 restructuring & other exitcharges were recorded in cost of products sold.(2) EBITDA represents net earnings (loss) from continuing operations beforefinancing costs, net, income tax (benefit) expense, and depreciation &amortization. EBITDA is not a calculation based upon GAAP. The amounts includedin the EBITDA and Adjusted EBITDA calculation, however, are derived fromamounts included in the Condensed Consolidated Statements of Operations. EBITDAand adjusted EBITDA should not be considered as alternatives to net earnings(loss), operating profit (loss) or operating cash flows. The Company haspresented EBITDA and adjusted EBITDA because it regularly reviews theseperformance measures. In addition, EBITDA and adjusted EBITDA are used by manyof our investors and lenders, and are presented as a convenience to them. TheEBITDA and adjusted EBITDA measures presented may not always be comparable tosimilarly titled measures reported by other companies due to differences in thecomponents of the calculation.Enerpac Tool Group Corp.Supplemental Unaudited DataReconciliation of GAAP Measures to Non-GAAP Measures (Continued)(Dollars in thousands, except for per share amounts) Fiscal 2020 Fiscal 2021 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTALAdjusted Earnings(Loss) (3)Net Earnings (Loss) $ 2,121 $ 2,162 $ (4,999 ) $ 1,439 $ 723 $ 4,598 $ 3,182 $ - $ - $ 7,780

(Loss) Earningsfrom Discontinued (4,251 ) (1,756 ) (69 ) 1,242 (4,834 ) (224 ) (402 ) - - (626 )Operations, net ofincome taxEarnings (Loss) $ 6,372 $ 3,918 $ (4,930 ) $ 197 $ 5,557 $ 4,822 $ 3,584 $ - $ - $ 8,406 from ContinuingOperationsImpairment & (1,356 ) (768 ) (1,443 ) 408 (3,159 ) 139 401 - - 539 divestiture(benefit) chargesRestructuring & 1,972 1,929 3,292 987 8,179 210 649 - - 859 other exit chargesAccelerated debt 625 - - 1,041 1,666 - - - - - issuance costsPurchase accounting - 202 201 - 403 - - - - - inventory step-upchargePension curtailment - - - (758 ) (758 ) - - - - -

Net tax effect of (52 ) (57 ) (624 ) (503 ) (1,236 ) (15 ) (100 ) - - (115 )reconciling itemsaboveOther income tax - (74 ) - - (74 ) - (632 ) - - (632 )benefitAdjusted Earnings(Loss) from $ 7,561 $ 5,150 $ (3,504 ) $ 1,372 $ 10,578 $ 5,156 $ 3,902 $ - $ - $ 9,057 ContinuingOperations (4) Adjusted DilutedEarnings (loss) pershare (3)Net Earnings (Loss) $ 0.03 $ 0.04 $ (0.08 ) $ 0.02 $ 0.01 $ 0.08 $ 0.05 $ - $ - $ 0.13

(Loss) Earningsfrom Discontinued (0.07 ) (0.03 ) 0.00 0.02 (0.08 ) (0.00 ) (0.01 ) - - (0.01 )Operations, net ofincome taxEarnings (Loss) $ 0.11 $ 0.06 $ (0.08 ) $ 0.00 $ 0.09 $ 0.08 $ 0.06 $ - $ - $ 0.14 from ContinuingOperationsImpairment &divestiture (0.02 ) (0.01 ) (0.02 ) 0.00 (0.04 ) 0.00 0.01 - - 0.01 (benefit) charges,net of tax effectRestructuring & 0.02 0.04 0.04 0.02 0.11 0.00 0.01 - - 0.01 other exit charges,net of tax effectAccelerated debt 0.01 - - 0.01 0.02 - - - - - issuance costs, netof tax effectPurchase accountinginventory step-up - 0.00 0.00 - 0.01 - - - - - charge, net of taxeffectPension - - - (0.01 ) (0.01 ) - - - - - curtailment, net oftax effectOther income tax - 0.00 - - - - (0.01 ) - - (0.01 )benefitAdjusted DilutedEarnings (Loss) per $ 0.12 $ 0.09 $ (0.06 ) $ 0.02 $ 0.18 $ 0.09 $ 0.06 $ - $ - $ 0.15 share fromContinuingOperations (4) Notes continued:(3) Adjusted earnings (loss) from continuing operations and adjusted dilutedearnings (loss) per share represent net earnings (loss) and diluted earnings(loss) per share per the Condensed Consolidated Statements of Operations net ofcharges or credits for items to be highlighted for comparability purposes.These measures are not calculated based upon generally accepted accountingprinciples (GAAP) and should not be considered as an alternative to netearnings (loss) or diluted earnings (loss) per share or as an indicator of theCompany's operating performance. However, this presentation is important toinvestors for understanding the operating results of the current portfolio ofEnerpac Tool Group companies.(4) Q3 Fiscal 2020 results included an adjusted loss from continuingoperations, therefore adjusted loss per share is not diluted and is, instead,calculated with basic shares. For all reconciliations of GAAP measures to Non-GAAP measures, the summation ofthe individual components may not equal the total due to rounding. With respectto the earnings per share reconciliations the impact of share dilution on thecalculation of the net earnings or loss per share and discontinued operationsper share may result in the summation of these components not equaling thetotal earnings (loss) per share from continuing operations. View source version on businesswire.com: https://www.businesswire.com/news/home/20210324005099/en/

CONTACT: Bobbi Belstner Director of Investor Relations and Strategy 262.293.1912