- Enerpac Tool Group Corp (NYSE:EPAC) reported first-quarter net sales from continuing operations of $130.9 million, an increase of 9.6% year-over-year, missing the consensus of $141.72 million.
- Core sales improved 9% Y/Y, with product sales up 14% and service revenues down 3%.
- The gross margin contracted by 72 bps to 45.6%. The operating income declined 29.4% Y/Y to $6.41 million and the margin contracted by 270 bps to 4.9%.
- The adjusted operating margin was 9.9%, compared to 7.9% a year ago.
- Adjusted EPS improved to $0.16 from $0.09 in 1Q21, missing the consensus of $0.21.
- Adjusted EBITDA increased 20.5% Y/Y to $17.6 million, and margin expanded by 122 bps to 13.4%.
- Net Debt to Adjusted EBITDA from continuing operations was 0.7x at November 30, 2021.
- Enerpac Tool's cash used in operating activities was $4.73 million, compared to cash provided of $8.67 million a year ago. Free cash outflow was $7.89 million for the quarter.
- The company held $126.53 million in cash and equivalents as of November 30, 2021.
- "As we expected, our performance in the first quarter was impacted by global supply chain, logistics and inflationary pressures," said CEO Paul Sternlieb.
- FY22 Outlook: Enerpac Tool reiterated its guidance with sales of $590 million - $610 million versus the consensus of $599.62 million.
- In a separate press release issued today, Enerpac Tool reported the appointment of Scott Vuchetich as EVP, Marketing and President-Americas.
- Price Action: EPAC shares traded lower by 6.77% at $20.39 on the last check Tuesday.
