Enerpac Tool Group Corp (NYSE:EPAC) stock fell 1.61% (As on Dec 22, 11:26:03 AM UTC-4, Source: Google Finance) after the company delivered weaker-than-expected results for first-quarter fiscal 2022. Organic sales in the quarter under review were up 9% year over year, driven by 14% growth in product sales. Service revenues in the quarter played spoilsport, decreasing 3% year over year. Industrial Tools & Services (92.7% of first-quarter fiscal 2022 net sales) revenues in the reported quarter totaled $121.3 million, reflecting an 8.1% increase from the year-ago figure. The year-over-year growth in revenues was driven by market recovery worldwide and the impacts of pricing actions taken by the company. Enerpac Tool’s cost of sales grew 11.1% year over year to $71.3 million. It represented 54.5% of the reported quarter’s net sales compared with 53.7% in the year-ago quarter. The gross profit increased 7.9% year over year to $59.6 million. The gross margin decreased 70 basis points year over year to 45.6%.

EPAC in the first quarter of FY 22 has reported the adjusted earnings per share of 16 cents, missing the analysts’ estimates for the adjusted earnings per share of 21 cents, according to Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 9.6 percent to $130.9 million in the first quarter of FY 22, beating the analysts’ estimates for revenue of $140.5 million. Adjusted operating income was $12.9 million in the reported quarter, reflecting an improvement from $9.4 million generated in the year-ago quarter. The adjusted operating margin in the quarter under review was 9.9% compared with 7.9% in the year-ago quarter. Net financing costs declined 44% year over year to $1 million.

Exiting first-quarter fiscal 2022, Enerpac Tool’s cash and cash equivalents totaled $126.5 million, down 9.9% from $140.4 million at the end of the last-reported quarter. Long-term debt was stable sequentially at $175 million. In the first quarter, the company repaid $50 million of revolving credit facility, and its borrowing from the same source was $5 million. Its net debt to adjusted EBITDA was 0.7X at the end of the fiscal first quarter versus 0.6X at fourth-quarter end. Capital spending totaled $3.3 million, up 72.9% year over year. Free cash outflow in the reported quarter was $7.9 million compared with cash inflow of $6.8 million in the year-ago quarter.