Business Wire | Jun 29, 2021 08:30AM EDT

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

Jun. 29, 2021

MILWAUKEE--(BUSINESS WIRE)--Jun. 29, 2021--Enerpac Tool Group Corp. (NYSE: EPAC) (the "Company") today announced results for its fiscal third quarter ended May 31, 2021.

"We are pleased with our return to year-over-year organic sales growth and the increased momentum as we progressed throughout the quarter," said Randy Baker, Enerpac Tool Group's President and CEO. "The continued positive sentiment among our distributors, the overall strength we are seeing across our vertical markets and product order rates in line with fiscal 2019 gives us confidence that our business will return to pre-COVID levels as we exit fiscal 2021."

Mr. Baker added, "As expected, we saw economies recover and business activities normalize across many parts of the world but there are still some regions that remain challenged by pandemic related lockdowns. Our teams executed exceptionally well through the inflationary pressures, labor shortages and supply chain constraints that are impacting Enerpac Tool Group as well as many other companies around the world. I am incredibly proud of our team's success in meeting customer demand and delivering a strong quarter despite these challenges. Enerpac Tool Group is well positioned to execute our strategic growth initiatives as the markets we serve continue to recover across the globe. With our strong balance sheet, we remain focused on new product development, driving organic growth and pursuing disciplined acquisition opportunities as we continue driving increased profitability and create value for all our stakeholders."

Consolidated Results from Continuing Operations

(US$ in millions, except per share)

Three Months Ended Nine Months Ended

May 31, May 31, May 31, May 31, 2021 2020 2021 2020

Net Sales $143.1 $101.9 $383.2 $381.9

Net Income (Loss) $25.3 ($4.9) $33.7 $5.4

Earnings (Loss) Per Share $0.42 ($0.08) $0.56 $0.09

Adjusted Diluted Earnings (Loss) $0.28 ($0.06) $0.43 $0.15Per Share

* Consolidated net sales from continuing operations for the third quarter were $143.1 million compared to $101.9 million in the prior year third quarter. Core sales improved 36% year-over-year, with product sales up 40% and service up 23%. The net impact of acquisitions and divestitures/strategic exits was immaterial, while the impact of foreign currency increased net sales by 6%. * Fiscal 2021 third quarter GAAP net income from continuing operations and diluted earnings per share from continuing operations were $25.3 million and $0.42, respectively, compared to a net loss from continuing operations of ($4.9) million and loss per share from continuing operations of ($0.08) in the third quarter of fiscal 2020. Fiscal 2021 third quarter net income from continuing operations included: Restructuring charges of $1.6 million ($1.3 million, or $0.02 per share, after tax), related to a previously announced restructuring plan; Corporate Development and Board search charges of $0.6 million ($0.4 million, or $0.01 per share, after tax); Gain on sale of facility, net of transaction charges of $5.4 million ($2.4 million, or $0.04 per share, after tax) related to the sale of a large manufacturing facility in China as part of our footprint rationalization; and Tax benefits of $7.5 million ($0.12 per share) related to the release of uncertain tax positions upon closure of income tax audits. * Fiscal 2020 third quarter net loss from continuing operations included a net impairment & divestiture gain of $1.4 million ($1.0 million, or $0.02 per share, after tax), restructuring charges of $3.3 million ($2.2 million, or $0.04 per share, after tax) primarily related to the restructuring plan announced in March 2020 to reduce redundant segment and corporate costs along with facility consolidations, and purchase accounting charges of $0.2 million ($0.2 million after tax). * Excluding the items detailed above, adjusted diluted EPS from continuing operations was $0.28 for the third quarter of fiscal 2021 compared to an adjusted loss per share from continuing operations of ($0.06) in the comparable prior year period. * Consolidated net sales for the nine months ended May 31, 2021 were $383.2 million, compared to $381.9 million in the comparable prior year period. Core sales were down 1% 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 by 2%. * Consolidated net income from continuing operations and diluted EPS from continuing operations for the nine months ended May 31, 2021 were $33.7 million and $0.56, respectively, compared to net income from continuing operations and diluted EPS from continuing operations of $5.4 million and $0.09, respectively, in the comparable prior year period.

Industrial Tools & Services (IT&S)

(US$ in millions)

Three Months Ended Nine Months Ended

May 31, 2021 May 31, 2020 May 31, 2021 May 31, 2020

Sales $133.4 $92.9 $358.3 $351.8

Operating Profit $23.8 $7.6 $54.8 $54.3

Adjusted Op Profit ^(1) $25.3 $8.2 $57.5 $55.1

Adjusted Op Profit % ^ 19.0% 8.9% 16.1% 15.7%(1)

(1) Excludes $1.5 million of restructuring charges in the third quarter of fiscal 2021 compared to $1.8 million of restructuring charges, $1.4 million of net impairment & divestiture gains, and $0.2 million of purchase accounting charges in the third quarter of fiscal 2020. The nine months ended May 31, 2021 excludes $2.2 million of restructuring charges and $0.5 million of net impairment & divestiture charges compared to $4.0 million of restructuring charges, $3.6 million of net impairment & divestiture gains, and $0.4 million of purchase accounting charges in the nine months ended May 31, 2020.

* Third quarter fiscal 2021 net sales were $133.4 million, 44% higher than the prior fiscal year's third quarter net sales. Core sales increased 39% year-over-year, while the net impact of acquisitions and divestitures/strategic exits was immaterial and the impact of foreign currency increased net sales by 6%. * The increase in revenue is attributable to the broad-based market recovery as regions of the world return to normalized levels of activity coming out of the pandemic. * Adjusted operating profit margin of 19.0% in the quarter increased year-over-year primarily due to increased sales volume and savings from cost management and restructuring initiatives.

Corporate Expenses and Income Taxes (excluding non-GAAP adjustments)

* Corporate expenses from continuing operations of $5.8 million for the third quarter of fiscal 2021 were $2.4 million lower than the comparable prior year period, primarily resulting from lower operating costs due to the prior fiscal year divestiture of the former Engineered Components & Systems (EC&S) segment, savings from equity compensations costs and lower consulting fees offset by higher insurance, legal and incentive compensation costs. * The fiscal 2021 third quarter effective income tax rate from continuing operations of approximately 3% was higher than the third quarter fiscal 2020 rate of approximately (7)%.

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

May 31, February 28, May 31, 2021 2021 2020

Cash Balance $136.3 $115.3 $163.6

Debt Balance $195.0 $210.0 $286.5

Net Debt to Adjusted EBITDA** 1.1 2.1 1.8



Net debt at May 31, 2021 was approximately $59 million (total debt of $195 million less $136 million of cash), which decreased approximately $36 million from the prior quarter. Net Debt to Adjusted EBITDA from continuing operations was 1.1x at May 31, 2021.

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

Outlook

Mr. Baker continued, "As we move into the last quarter of fiscal 2021, we anticipate strengthening business trends and remain optimistic that our global end markets will continue on the path to returning to a pre-pandemic level of activity. We previously guided expected sales to be in a range of $280 million to $290 million for the second half of fiscal 2021, with continuing sequential improvement through the end of the fiscal year and anticipated incremental Adjusted EBITDA margins at the high end of 35% to 45%, excluding the impact of currency. Given our strong third quarter results, we believe that the sales range will be $290 million to $295 million for the second half of fiscal 2021, implying fourth quarter sales of $147 million to $152 million, with incremental Adjusted EBITDA margins on the high end of the range provided."

Mr. Baker concluded, "Looking ahead, as end markets continue to recover, Enerpac Tool Group is well positioned to grow through new product development and organic growth in key vertical markets and inorganically through strategic acquisitions. We are encouraged by the broad-based improvement in the third quarter, confident in our ability to accelerate growth and look forward to executing our strategy to generate substantial shareholder value."

Conference Call Information

An investor conference call is scheduled for 10:00 am CT today, June 29, 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 quantitative reconciliation of non-GAAP measures presented for any future period as such a reconciliation is not practicable. Such future-period measures are presented 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 common stock 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.

(tables follow)

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

2021 2020

ASSETSCurrent assetsCash and cash equivalents $ 136,279 $ 152,170

Accounts receivable, net 112,590 84,170

Inventories, net 74,743 69,171

Other current assets 48,205 35,621

Total current assets 371,817 341,132

Property, plant and equipment, net 50,147 61,405

Goodwill 286,933 281,154

Other intangible assets, net 57,626 62,382

Other long-term assets 76,179 78,221

Total assets $ 842,702 $ 824,294

LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilitiesTrade accounts payable $ 59,898 $ 45,069

Accrued compensation and benefits 22,136 17,793

Income taxes payable 7,656 1,937

Other current liabilities 44,753 40,723

Total current liabilities 134,443 105,522

Long-term debt, net 195,000 255,000

Deferred income taxes 2,514 1,708

Pension and postretirement benefit liabilities 19,200 20,190

Other long-term liabilities 74,634 82,648

Total liabilities 425,791 465,068

Shareholders' equityCapital stock 16,598 16,519

Additional paid-in capital 200,963 193,492

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

Retained earnings 950,482 917,671

Accumulated other comprehensive loss (83,400 ) (100,724 )

Stock held in trust (2,999 ) (2,562 )

Deferred compensation liability 2,999 2,562

Total shareholders' equity 416,911 359,226

Total liabilities and shareholders' equity $ 842,702 $ 824,294

Enerpac Tool Group Corp.Condensed Consolidated Statements of Operations(Dollars in thousands, except per share amounts)(Unaudited) Three Months Ended Nine Months Ended May 31, May 31, May 31, May 31, 2021 2020 2021 2020

Net sales $ 143,149 $ 101,879 $ 383,233 $ 381,939

Cost of products sold 76,302 59,932 206,346 209,211

Gross profit 66,847 41,947 176,887 172,728

Selling, general and 40,468 40,766 130,061 142,842 administrative expensesAmortization of intangible 2,061 2,174 6,333 6,167 assetsRestructuring charges 1,571 2,448 2,430 6,348

Impairment & divestiture - (1,443 ) 539 (3,567 )(benefit) chargesOperating profit (loss) 22,747 (1,998 ) 37,524 20,938

Financing costs, net 1,340 4,552 4,395 15,911

Other expense (income), net 540 (1,213 ) 1,598 (1,682 )

Earnings (loss) before income 20,867 (5,337 ) 31,531 6,709 tax (benefit) expense Income tax (benefit) expense (4,390 ) (407 ) (2,132 ) 1,349

Net earnings (loss) from 25,257 (4,930 ) 33,663 5,360 continuing operationsLoss from discontinued (226 ) (69 ) (852 ) (6,076 )operations, net of incometaxesNet earnings (loss) $ 25,031 $ (4,999 ) $ 32,811 $ (716 )

Earnings (loss) per share fromcontinuing operationsBasic $ 0.42 $ (0.08 ) $ 0.56 $ 0.09

Diluted 0.42 (0.08 ) 0.56 0.09

Loss per share fromdiscontinued operationsBasic $ (0.00 ) $ (0.00 ) $ (0.01 ) $ (0.10 )

Diluted (0.00 ) (0.00 ) (0.01 ) (0.10 )

Earnings (loss) per shareBasic $ 0.42 $ (0.08 ) $ 0.55 $ (0.01 )

Diluted 0.41 (0.08 ) 0.54 (0.01 )

Weighted average common sharesoutstandingBasic 60,144 59,826 59,964 60,012

Diluted 60,574 59,826 60,312 60,358

Enerpac Tool Group Corp.Condensed Consolidated Statements of Cash Flows(In thousands)(Unaudited) Three Months Ended Nine Months Ended May 31, May 31, May 31, May 31, 2021 2020 2021 2020

Operating ActivitiesCash provided by operating 11,869 13,665 25,369 5,361 activities - continuingoperationsCash used in operating (226 ) (627 ) (480 ) (21,064 )activities - discontinuedoperationsCash provided by (used in) 11,643 13,038 24,889 (15,703 )operating activities Investing ActivitiesCapital expenditures (3,874 ) (2,341 ) (9,504 ) (9,308 )

Proceeds from sale of 21,806 185 22,401 635 property, plant andequipmentLease buyout for divested - - - (575 )businessLife Insurance Proceeds 2,911 - 2,911 -

Cash paid for business - 10 - (33,434 )acquisitions, net of cashacquiredProceeds from sale of - 1,500 - 10,226 business, net oftransaction costsCash provided by (used in) 20,843 (646 ) 15,808 (32,456 )investing activities -continuing operationsCash provided by investing - - - 208,391 activities - discontinuedoperationsCash provided by (used in) 20,843 (646 ) 15,808 175,935 investing activities Financing ActivitiesPrincipal repayments on - - - (175,000 )term loanBorrowings on revolving - - 10,000 100,000 credit facilityPrincipal repayments on (15,000 ) - (70,000 ) (100,000 )revolving credit facilityPurchase of treasury shares - (9,715 ) - (27,520 )

Stock options, taxes paidrelated to the net share 1,767 (284 ) (32 ) (1,459 )settlement of equity awards& otherPayment of cash dividend - - (2,394 ) (2,419 )

Cash used in financing (13,233 ) (9,999 ) (62,426 ) (206,398 )activities - continuingoperationsCash provided by financing - - 750 - activities - discontinuedoperationsCash used in financing (13,233 ) (9,999 ) (61,676 ) (206,398 )activities Effect of exchange rate 1,772 (2,227 ) 5,088 (1,382 )changes on cashNet cash increase 21,251 793 (16,161 ) (234,875 )(decrease) from continuingoperationsNet cash (decrease) (226 ) (627 ) 270 187,327 increase from discontinuedoperationsNet increase (decrease) 21,025 166 (15,891 ) (47,548 )from cash and cashequivalentsCash and cash equivalents - 115,254 163,437 152,170 211,151 beginning of periodCash and cash equivalents - $ 136,279 $ 163,603 $ 136,279 $ 163,603 end of periodEnerpac 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 TOTAL

Sales

Industrial Tool & $ 135,592 $ 123,361 $ 92,865 $ 103,044 $ 454,863 $ 112,175 $ 112,739 $ 133,400 $ - $ 358,315 Services SegmentOther 11,082 10,025 9,014 8,309 38,429 7,255 7,915 9,749 - 24,918

Total $ 146,674 $ 133,386 $ 101,879 $ 111,353 $ 493,292 $ 119,430 $ 120,654 $ 143,149 $ - $ 383,233



% Sales Growth

Industrial Tool & -9 % -17 % -44 % -29 % -25 % -17 % -9 % 44 % - 2 %Services SegmentOther 12 % -2 % -21 % -39 % -15 % -35 % -21 % 8 % - -17 %

Total -7 % -17 % -43 % -30 % -25 % -19 % -10 % 41 % - 0 %



Operating Profit (Loss) from ContinuingOperationsIndustrial Tool & $ 25,928 $ 20,963 $ 8,228 $ 12,166 $ 67,284 $ 17,362 $ 14,880 $ 25,304 $ - $ 57,546 Services SegmentOther 399 (684 ) 21 (1,371 ) (1,635 ) (1,662 ) (1,834 ) 14 - (3,482 )

Corporate / General (11,342 ) (10,349 ) (8,197 ) (6,158 ) (36,045 ) (6,282 ) (6,289 ) (5,808 ) - (18,379 )

Adjusted operating $ 14,985 $ 9,930 $ 52 $ 4,637 $ 29,604 $ 9,418 $ 6,757 $ 19,510 $ - $ 35,685 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 ) (1,571 ) - (2,430 )exit charges (1)Purchase accounting - (202 ) (201 ) - (403 ) - - - - - inventory step-upchargeGain on sale of - - - - - - - 5,359 - 5,359 facility, net oftransaction chargesCorporate development - - - - - - - (551 ) - (551 )and board searchchargesOperating profit (loss) $ 14,369 $ 8,567 $ (1,998 ) $ 3,242 $ 24,181 $ 9,069 $ 5,707 $ 22,747 $ - $ 37,524



Adjusted Operating Profit %Industrial Tool & 19.1 % 17.0 % 8.9 % 11.8 % 14.8 % 15.5 % 13.2 % 19.0 % - 16.1 %Services SegmentOther 3.6 % -6.8 % 0.2 % -16.5 % -4.3 % -22.9 % -23.2 % 0.1 % - -14.0 %

Adjusted Operating 10.2 % 7.4 % 0.1 % 4.2 % 6.0 % 7.9 % 5.6 % 13.6 % - 9.3 %Profit %

EBITDA from Continuing Operations (2)Earnings (loss) from $ 6,372 $ 3,918 $ (4,930 ) $ 197 $ 5,557 $ 4,822 $ 3,584 $ 25,257 $ - $ 33,663 continuing operationsFinancing costs, net 6,729 4,630 4,552 3,307 19,218 1,716 1,338 1,340 - 4,395

Income tax expense 950 806 (407 ) 943 2,292 2,258 1 (4,390 ) - (2,132 )(benefit)Depreciation & 4,779 5,277 5,318 5,347 20,720 5,458 5,507 5,473 - 16,438 amortizationEBITDA $ 18,830 $ 14,631 $ 4,533 $ 9,794 $ 47,787 $ 14,254 $ 10,430 $ 27,680 $ - $ 52,364



Adjusted EBITDA from Continuing Operations(2)Industrial Tool & $ 28,996 $ 24,022 $ 11,906 $ 15,938 $ 80,862 $ 21,002 $ 18,210 $ 28,873 $ - $ 68,085 Services SegmentOther 1,275 244 926 (449 ) 1,996 (740 ) (942 ) 897 - (785 )

Corporate / General (10,825 ) (8,272 ) (6,249 ) (5,058 ) (30,406 ) (5,659 ) (5,788 ) (5,327 ) - (16,775 )

Adjusted EBITDA $ 19,446 $ 15,994 $ 6,583 $ 10,431 $ 52,452 $ 14,603 $ 11,480 $ 24,443 $ - $ 50,525

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 ) (1,571 ) - (2,430 )exit charges (1)Purchase accounting - (202 ) (201 ) - (403 ) - - - - - inventory step-upchargePension curtailment - - - 758 758 - - - - -

Gain on sale of - - - - - - - 5,359 - 5,359 facility, net oftransaction chargesCorporate development - - - - - - - (551 ) - (551 )and board searchchargesEBITDA $ 18,830 $ 14,631 $ 4,533 $ 9,794 $ 47,787 $ 14,254 $ 10,430 $ 27,680 $ - $ 52,364



Adjusted EBITDA %

Industrial Tool & 21.4 % 19.5 % 12.8 % 15.5 % 17.8 % 18.7 % 16.2 % 21.6 % - 19.0 %Services SegmentOther 11.5 % 2.4 % 10.3 % -5.4 % 5.2 % -10.2 % -11.9 % 9.2 % - -3.2 %

Adjusted EBITDA % 13.3 % 12.0 % 6.5 % 9.4 % 10.6 % 12.2 % 9.5 % 17.1 % - 13.2 %



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 TOTAL

Adjusted Earnings (Loss)(3)Net Earnings $ 2,121 $ 2,162 $ (4,999 ) $ 1,439 $ 723 $ 4,598 $ 3,182 $ 25,031 $ - $ 32,811 (Loss)(Loss) Earningsfrom (4,251 ) (1,756 ) (69 ) 1,242 (4,834 ) (224 ) (402 ) (226 ) - (852 )DiscontinuedOperations, netof income taxEarnings (Loss) $ 6,372 $ 3,918 $ (4,930 ) $ 197 $ 5,557 $ 4,822 $ 3,584 $ 25,257 $ - $ 33,663 from ContinuingOperationsImpairment &divestiture (1,356 ) (768 ) (1,443 ) 408 (3,159 ) 139 401 - - 539 (benefit)chargesRestructuring & 1,972 1,929 3,292 987 8,179 210 649 1,571 - 2,430 other exitchargesAccelerated 625 - - 1,041 1,666 - - - - - debt issuancecostsPurchaseaccounting - 202 201 - 403 - - - - - inventorystep-up chargePension - - - (758 ) (758 ) - - - - - curtailmentGain on sale offacility, net - - - - - - - (5,359 ) - (5,359 )of transactionchargesCorporatedevelopment and - - - - - - - 551 - 551 board searchchargesNet tax effect (52 ) (57 ) (624 ) (503 ) (1,236 ) (15 ) (100 ) 2,647 - 2,532 of reconcilingitems aboveOther income - (74 ) - - (74 ) - (632 ) (7,523 ) - (8,155 )tax benefitAdjustedEarnings (Loss) $ 7,561 $ 5,150 $ (3,504 ) $ 1,372 $ 10,578 $ 5,156 $ 3,902 $ 17,144 $ - $ 26,201 from ContinuingOperations (4)

AdjustedDiluted Earnings (loss)per share (3)Net Earnings $ 0.03 $ 0.04 $ (0.08 ) $ 0.02 $ 0.01 $ 0.08 $ 0.05 $ 0.41 $ - $ 0.54 (Loss)(Loss) Earningsfrom (0.07 ) (0.03 ) 0.00 0.02 (0.08 ) (0.00 ) (0.01 ) (0.00 ) - (0.01 )DiscontinuedOperations, netof income taxEarnings (Loss) $ 0.11 $ 0.06 $ (0.08 ) $ 0.00 $ 0.09 $ 0.08 $ 0.06 $ 0.42 $ - $ 0.56 from ContinuingOperationsImpairment &divestiture (0.02 ) (0.01 ) (0.02 ) 0.00 (0.04 ) 0.00 0.01 - - 0.01 (benefit)charges, net oftax effectRestructuring &other exit 0.02 0.04 0.04 0.02 0.11 0.00 0.01 0.02 - 0.04 charges, net oftax effectAccelerateddebt issuance 0.01 - - 0.01 0.02 - - - - - costs, net oftax effectPurchaseaccountinginventory - 0.00 0.00 - 0.01 - - - - - step-up charge,net of taxeffectPensioncurtailment, - - - (0.01 ) (0.01 ) - - - - - net of taxeffectGain on sale offacility, net - - - - - - - (0.04 ) - (0.04 )of transactionchargesCorporatedevelopment and - - - - - - - 0.01 - 0.01 board searchchargesOther income - 0.00 - - - - (0.01 ) (0.12 ) - (0.14 )tax benefitAdjustedDilutedEarnings (Loss) $ 0.12 $ 0.09 $ (0.06 ) $ 0.02 $ 0.18 $ 0.09 $ 0.06 $ 0.28 $ - $ 0.43 per share fromContinuingOperations (4)

Free Cash Flow (5)Cash (used in)provided by $ (22,927 ) $ (5,814 ) $ 13,038 $ 12,544 $ (3,159 ) $ 8,667 $ 4,579 $ 11,643 $ - $ 24,889 operatingactivitiesCapital (3,187 ) (3,780 ) (2,341 ) (2,745 ) (12,053 ) (1,905 ) (3,725 ) (3,874 ) - (9,504 )expendituresProceeds fromsale of 162 288 185 73 708 47 548 21,806 - 22,401 property, plantand equipmentOther 1,353 122 - 12 1,487 (2 ) (518 ) 4,937 - 4,417

Free Cash Flow $ (24,599 ) $ (9,184 ) $ 10,882 $ 9,884 $ (13,017 ) $ 6,807 $ 884 $ 34,512 $ - $ 42,203



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.(5) Free cash flow primarily represents the operating cash flow, proceeds fromthe sale of property, plant and equipment combined with capital expenditures. 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/20210629005218/en/

CONTACT: Bobbi Belstner Senior Director, Investor Relations and Strategy 262.293.1912