Enerpac Tool's Shares Fall on Executive Shak-Up News

Enerpac Tool Group Corp. (NYSE: EPAC) has announced a transition in its executive leadership. Anthony Colucci, the current Executive Vice President and Chief Financial Officer, is stepping down from his role to assume an executive position at a private equity firm. Colucci will continue to serve as CFO through March 1, 2024, to facilitate a smooth transition. In the interim, P. Shannon Burns has been appointed as the Interim Principal Financial Officer, and Patrick Dawson has been appointed as the Interim Principal Accounting Officer.

Paul Sternlieb, President and CEO of Enerpac Tool Group, expressed gratitude for Colucci's contributions, stating, "Since joining Enerpac, Tony has been a valued partner in the successful implementation of our ASCEND transformation program, which reached the expected benefits a year ahead of plan and has enabled us to create a far more efficient, productive, and profitable enterprise."

Mr. Colucci also shared his thoughts on the transition, saying, "I am very proud of what we have accomplished in terms of Enerpac's significant operational and financial improvements, as well as the talented team we have built. I believe Enerpac is well positioned for the future, and I wish the team continued success as they execute on the exciting growth strategy."

The company's President and CEO, Paul Sternlieb, further commented, "P. Shannon Burns is a seasoned finance executive who joined Enerpac in November 2022 as the Head of the Business Decision Support Office. Patrick Dawson started his career with Enerpac in November 2022 as the Corporate Controller."

Regarding the company's outlook, Sternlieb indicated, "I want to thank Tony for his contributions and wish him all the best in his new position." He added, "I believe Enerpac is well positioned for the future, and I wish the team continued success as they execute on the exciting growth strategy."

Enerpac Tool Group Corp. is a premier industrial tools, services, technology, and solutions provider serving a broad and diverse set of customers and end markets for mission-critical applications in more than 100 countries. The Company makes complex, often hazardous jobs possible safely and efficiently. Enerpac Tool Group'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's shares have moved -2.0%, and are now trading at a price of $30.75.

The company's full 8-K submission is available here.

2018 2019 2020 2021 2022 2023
Revenue (k) $1,182,611 $654,758 $493,292 $528,660 $571,223 $598,204
Revenue Growth n/a -44.63% -24.66% 7.17% 8.05% 4.72%
Gross Margins 24% 45% 44% 46% 46% 49%
Net Margins -2% -38% 0% 7% 3% 9%
Net Income (k) -$21,648 -$249,145 $723 $38,077 $15,686 $53,649
Earnings Per Share -$0.35 -$4.04 $0.01 $0.63 $0.26 $0.82
EPS Growth n/a -1054.29% 100.25% 6200.0% -58.73% 215.38%
Diluted Shares (k) 61,031 60,601 60,092 60,621 57,317 55,008
Free Cash Flow (k) $95,072 $38,922 -$15,212 $42,164 $43,319 $68,203
Capital Expenditures $11,021 $14,923 $12,053 $12,019 $8,417 $9,400
Current Ratio 2.13 2.88 3.26 2.74 2.29 2.83
Total Debt (k) $557,559 $295,059 $255,000 $175,000 $203,000 $245,125

Enerpac Tool has an excellent current ratio of 2.83, wider gross margins than its peer group, and a strong EPS growth trend. However, the firm has declining revenues and decreasing reinvestment in the business. Finally, we note that Enerpac Tool has weak net margins with a positive growth rate and positive cash flows.

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