Enerpac Tool Group Corp (NYSE:EPAC) stock fell 1.19% (As on June 29, 11:10:52 AM UTC-4, Source: Google Finance) after the company missed the earnings estimates for the third quarter of FY 22. Fiscal 2022 third quarter results reflect a $10.8 million increase in receivable reserves ($0.14 per share, after tax) related to an agent in the MENAC region. The issue is specific to this agent and is not indicative of the market or any other agents with which the Company works. The Company continues to do business in the impacted country directly with end customers and is no longer working with the individual agent. Net debt at May 31, 2022 was approximately $81 million (total debt of $205 million less $124 million of cash), which increased approximately $39 million from February 28, 2022. Net Debt to Adjusted EBITDA from continuing operations was 1.1x at May 31, 2022. The company purchased approximately 1.8 million shares of its common stock in the third quarter of fiscal 2022 at an average price of $20.65 for a total of approximately $36 million under its share repurchase program announced in March of 2022.

EPAC in the third 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 28 cents, according to figures compiled by Thomson Reuters. The company had reported the adjusted revenue growth of 6.1 percent to $151.89 million in the third quarter of FY 22, from $143.14 million last year. Core sales improved 10% year over year, with product sales up 12% and service revenues up 1%. The impact from foreign currency exchange rates reduced net sales by 4% in the quarter. The increase in revenue is attributable to the continued global market recovery from the COVID-19 pandemic in addition to the impact of pricing actions taken to offset inflationary pressures. Adjusted operating profit margin decreased year over year to 13.8%, primarily due to an additional receivable reserve in the MENAC region, which had an unfavorable impact of 770 basis points on adjusted operating profit margin.

Enerpac expects full-year revenue to be in the range of $560 million to $570 million. The company expects to generate incremental adjusted EBITDA of $40 to $50 million and will cost $60 to $65 million. The company also keenly focused on executing the initiatives in the ASCEND transformation program to unlock significant opportunities for value creation across the organization.