READING, Pa., Aug. 5, 2015 /PRNewswire/ -- EnerSys (NYSE:
ENS) the global leader in stored energy solutions for industrial
applications, announced today results for its first quarter of
fiscal 2016, which ended on June 28,
2015.
Net earnings attributable to EnerSys stockholders ("Net
earnings") for the first quarter of fiscal 2016 were $48.4 million, or $1.03 per diluted share, including a favorable
highlighted net of tax impact of $0.03 per share from a gain of $3.3 million relating to the sale of a facility
in our Asia segment partially
offset by charges of $0.9 million for
restructuring plans, $0.5 million for
ERP system implementation and $0.2
million for fees related to acquisition activities.
The Net earnings of $1.03 per
diluted share compares to Net earnings per diluted share of
$0.99 per diluted share for the first
quarter of fiscal 2015, which included an unfavorable highlighted
net of tax impact of $0.03 per share
impact from a charge of $1.3 million
for restructuring plans and $0.2
million for fees related to acquisition activities.
Excluding these highlighted items, adjusted Net earnings per
diluted share for the first quarter of fiscal 2016, on a non-GAAP
basis were $1.00, which met the lower
end of range of the guidance of $1.00 to
$1.04 per diluted share given by the Company on May 27, 2015. These earnings compare to the prior
year first quarter adjusted Net Earnings of $1.02 per diluted share. Please refer to the
section included herein under the heading "Reconciliation of
Non-GAAP Financial Measures" for a discussion of the Company's use
of non-GAAP adjusted financial information.
Net sales for the first quarter of fiscal 2016 were $562.1 million, a decrease of 11% from the prior
year first quarter net sales of $634.1
million and an 11% sequential quarterly decrease from the
fourth quarter of fiscal 2015 net sales of $629.9 million. The 11% decrease compared to
prior year quarter was largely the result of a 9% decrease due to
foreign currency translation impact and a 3% decrease in organic
volume partially offset by a 1% increase due to pricing. The 11%
decrease in the current quarter compared to fourth quarter of
fiscal 2015 was largely the result of a decrease in organic volume
reflecting a 7% decrease in working days in the first quarter.
The Company's operating results for its business segments for
the first quarters of fiscal 2016 and 2015 are as follows:
|
Quarter
ended
|
|
($
millions)
|
|
June 28,
2015
|
|
June 29,
2014
|
Net sales by
segment
|
|
|
|
Americas
|
$
|
317.0
|
|
|
$
|
330.9
|
|
EMEA
|
196.7
|
|
|
242.0
|
|
Asia
|
48.4
|
|
|
61.2
|
|
|
|
|
|
Total net
sales
|
$
|
562.1
|
|
|
$
|
634.1
|
|
|
|
|
|
Operating
earnings
|
|
|
|
Americas
|
$
|
46.3
|
|
|
$
|
41.5
|
|
EMEA
|
20.6
|
|
|
28.6
|
|
Asia
|
0.0
|
|
|
3.6
|
|
Restructuring charges
- Americas
|
(0.6)
|
|
|
—
|
|
Restructuring charges
- EMEA
|
(0.6)
|
|
|
(1.8)
|
|
Gain on sale of
facility - Asia
|
4.3
|
|
|
—
|
|
ERP system
implementation - Americas
|
(0.8)
|
|
|
—
|
|
Acquisition activity
expense - Americas
|
(0.2)
|
|
|
—
|
|
Acquisition activity
expense - Asia
|
—
|
|
|
(0.2)
|
|
|
|
|
|
Total operating
earnings
|
$
|
69.0
|
|
|
$
|
71.7
|
|
|
EMEA -
Europe, Middle East and Africa
|
"Our adjusted earnings per share of $1.00 for our first quarter was in the range of
our previous guidance of $1.00 to
$1.04," stated John D. Craig,
chairman and chief executive officer of EnerSys. "We believe global
telecommunications spending has paused and we have experienced a
decline in reserve power order intake and backlog. We believe
reserve power orders will pick up by our third quarter. Our current
order intake and backlog are strong in motive power. Our second
quarter guidance for non-GAAP adjusted net earnings per diluted
share is $0.92 and $0.96, which excludes an expected charge of
$0.07 from our ongoing restructuring
programs, ERP system implementation and acquisition expenses."
Reconciliation of Non-GAAP Financial Measures
This press release contains financial information determined by
methods other than in accordance with U.S. Generally Accepted
Accounting Principles, ("GAAP"). EnerSys' management uses the
non-GAAP measure "adjusted Net Earnings" in their analysis of the
Company's performance. This measure, as used by EnerSys in past
quarters and years, adjusts Net Earnings determined in accordance
with GAAP to reflect changes in financial results associated with
the Company's restructuring initiatives and other highlighted
charges and income items. Management believes the presentation of
this financial measure reflecting these non-GAAP adjustments
provides important supplemental information in evaluating the
operating results of the Company as distinct from results that
include items that are not indicative of ongoing operating results;
in particular, those charges that the Company incurs as a result of
restructuring activities, impairment of goodwill and
indefinite-lived intangibles and those charges and credits that are
not directly related to operating unit performance, such as fees
and expenses related to acquisition activities, stock-based
compensation of senior executives, ERP system implementation and
tax valuation allowance changes. Because these charges are not
incurred as a result of ongoing operations or are incurred as a
result of a potential or previous acquisition, they are not a
helpful measure of the performance of our underlying business
particularly in light of their unpredictable nature. This non-GAAP
disclosure has limitations as an analytical tool, should not be
viewed as a substitute for Net Earnings determined in accordance
with GAAP, and should not be considered in isolation or as a
substitute for analysis of the Company's results as reported under
GAAP, nor is it necessarily comparable to non-GAAP performance
measures that may be presented by other companies. Management
believes that this non-GAAP supplemental information will be
helpful in understanding the Company's ongoing operating results.
This supplemental presentation should not be construed as an
inference that the Company's future results will be unaffected by
similar adjustments to Net Earnings determined in accordance with
GAAP.
Included below is a reconciliation of non-GAAP adjusted
financial measures to preliminary amounts. Non-GAAP adjusted
Net Earnings are calculated excluding restructuring and other
highlighted charges and credits. The following tables provide
additional information regarding certain non-GAAP measures:
|
Quarter
ended
|
|
June 28,
2015
|
|
|
June 29,
2014
|
|
|
(in millions,
except share and per share amounts)
|
Net Earnings
reconciliation
|
|
|
|
|
|
As reported Net
Earnings
|
$
|
48.4
|
|
|
$
|
49.2
|
|
Non-GAAP adjustments,
net of tax:
|
|
|
|
|
|
Restructuring charges
- Americas
|
0.4
|
(1)
|
|
—
|
|
Restructuring charges
- EMEA
|
0.5
|
(1)
|
|
1.3
|
(1)
|
Gain on sale of
facility - Asia
|
(3.3)
|
(2)
|
|
—
|
|
ERP system
implementation - Americas
|
0.5
|
(3)
|
|
—
|
|
Acquisition activity
expense - Americas
|
0.2
|
(4)
|
|
—
|
|
Acquisition activity
expense - Asia
|
—
|
|
|
0.2
|
(4)
|
Non-GAAP adjusted
Net Earnings
|
$
|
46.7
|
|
|
$
|
50.7
|
|
|
|
|
|
|
|
Outstanding shares
used in per share calculations
|
|
|
|
|
|
Basic
|
44,233,915
|
|
|
46,899,303
|
|
Diluted
|
46,756,376
|
|
|
49,726,238
|
|
|
|
|
|
|
|
Non-GAAP adjusted
Net Earnings per share:
|
|
|
|
|
|
Basic
|
$
|
1.06
|
|
|
$
|
1.08
|
|
Diluted
|
$
|
1.00
|
|
|
$
|
1.02
|
|
|
|
|
|
|
|
Reported Net
Earnings per share:
|
|
|
|
|
|
Basic
|
$
|
1.09
|
|
|
$
|
1.05
|
|
Diluted
|
$
|
1.03
|
|
|
$
|
0.99
|
|
Dividends per
common share
|
$
|
0.175
|
|
|
$
|
0.175
|
|
|
|
|
|
EMEA - Europe,
Middle East and Africa
|
(1)
|
Resulting from
pre-tax restructuring charges in Americas and EMEA of approximately
$0.6 million each in the first quarter of fiscal 2016 and $1.8
million in EMEA in the first quarter of fiscal 2015.
|
(2)
|
Resulting from
pre-tax gain on sale of facility in Asia of approximately $4.3
million in the first quarter of fiscal 2016.
|
(3)
|
Resulting from
pre-tax implementation costs of ERP system in Americas of
approximately $0.8 million in the first quarter of fiscal
2016.
|
(4)
|
Resulting from
pre-tax charges for acquisition activity expense in Americas of
approximately $0.2 million in the first quarter of fiscal 2016 and
$0.2 million in Asia for the first quarter of fiscal
2015.
|
Summary of
Earnings (Unaudited)
(In millions,
except share and per share data)
|
|
|
Quarter
ended
|
|
June 28,
2015
|
|
June 29,
2014
|
Net sales
|
$
|
562.1
|
|
|
$
|
634.1
|
|
Gross
profit
|
150.4
|
|
|
162.6
|
|
Operating
expenses
|
84.5
|
|
|
89.1
|
|
Restructuring
charges
|
1.2
|
|
|
1.8
|
|
Gain on sale of
facility
|
(4.3)
|
|
|
—
|
|
Operating
earnings
|
69.0
|
|
|
71.7
|
|
Earnings before
income taxes
|
62.0
|
|
|
65.8
|
|
Net earnings
attributable to EnerSys stockholders
|
$
|
48.4
|
|
|
$
|
49.2
|
|
|
|
|
|
Net earnings per
common share attributable to EnerSys stockholders:
|
|
|
|
Basic
|
$
|
1.09
|
|
|
$
|
1.05
|
|
Diluted
|
$
|
1.03
|
|
|
$
|
0.99
|
|
Dividends per common
share
|
$
|
0.175
|
|
|
$
|
0.175
|
|
Weighted-average
number of common shares used in per share calculations:
|
|
|
|
Basic
|
44,233,915
|
|
|
46,899,303
|
|
Diluted
|
46,756,376
|
|
|
49,726,238
|
|
EnerSys also announced that it will host a conference call to
discuss the Company's first quarter fiscal year 2016 financial
results and provide an overview of the business. The call will
conclude with a question and answer session.
The call, scheduled for Thursday, August
6, 2015 at 9:00 a.m. Eastern
Time, will be hosted by John D.
Craig, Chairman and Chief Executive Officer, David M. Shaffer, President & Chief
Operating Officer, and Michael J.
Schmidtlein, Senior Vice President Finance and Chief
Financial Officer.
The call will also be Webcast on EnerSys' website. There will be
a free download of a compatible media player on the Company's web
site at http://www.enersys.com.
The conference call information is:
Date:
|
Thursday, August 6,
2015
|
Time:
|
9:00 a.m. Eastern
Time
|
Via
Internet:
|
http://www.enersys.com
|
Domestic Dial-In
Number:
|
877-359-9508
|
International Dial-In
Number:
|
224-357-2393
|
Passcode:
|
78555290
|
A replay of the conference call will be available from
12:30 p.m. on August 6, 2015 through midnight on September 5, 2015.
The replay information is:
Via
Internet:
|
http://www.enersys.com
|
Domestic Replay
Number:
|
855-859-2056
|
International Replay
Number:
|
404-537-3406
|
Passcode:
|
78555290
|
For more information, contact Thomas
O'Neill, Vice President and Treasurer, EnerSys, P.O. Box
14145, Reading, PA 19612-4145,
USA. Tel: 610-236-4040; Web site:
www.enersys.com.
EDITOR'S NOTE: EnerSys, the global leader in stored energy
solutions for industrial applications, manufactures and distributes
reserve power and motive power batteries, battery chargers, power
equipment, battery accessories and outdoor equipment enclosure
solutions to customers worldwide. Motive power batteries and
chargers are utilized in electric forklift trucks and other
commercial electric powered vehicles. Reserve power batteries
are used in the telecommunication and utility industries,
uninterruptible power supplies, and numerous applications requiring
stored energy solutions including medical, aerospace and defense
systems. Outdoor equipment enclosure products are utilized in
the telecommunication, cable, utility, transportation
industries and by government and defense customers. The
company also provides aftermarket and customer support services to
its customers from over 100 countries through its sales and
manufacturing locations around the world.
More information regarding EnerSys can be found at
www.enersys.com.
Caution Concerning Forward-Looking Statements
This press release, and oral statements made regarding the
subjects of this release, contains forward-looking statements,
within the meaning of the Private Securities Litigation Reform Act
of 1995, or the Reform Act, which may include, but are not limited
to, statements regarding EnerSys' earnings estimates, intention to
pay quarterly cash dividends, return capital to stockholders,
plans, objectives, expectations and intentions and other statements
contained in this press release that are not historical facts,
including statements identified by words such as "believe," "plan,"
"seek," "expect," "intend," "estimate," "anticipate," "will," and
similar expressions. All statements addressing operating
performance, events, or developments that EnerSys expects or
anticipates will occur in the future, including statements relating
to sales growth, earnings or earnings per share growth, order
intake, backlog, payment of future cash dividends, execution of its
stock buy back program, and market share, as well as statements
expressing optimism or pessimism about future operating results or
benefits from either its cash dividend or its stock buy back
programs, are forward-looking statements within the meaning of the
Reform Act. The forward-looking statements are based on
management's current views and assumptions regarding future events
and operating performance, and are inherently subject to
significant business, economic, and competitive uncertainties and
contingencies and changes in circumstances, many of which are
beyond the Company's control. The statements in this press release
are made as of the date of this press release, even if subsequently
made available by EnerSys on its website or otherwise.
EnerSys does not undertake any obligation to update or revise these
statements to reflect events or circumstances occurring after the
date of this press release.
Although EnerSys does not make forward-looking statements unless
it believes it has a reasonable basis for doing so, EnerSys cannot
guarantee their accuracy. The foregoing factors, among others,
could cause actual results to differ materially from those
described in these forward-looking statements. For a list of
other factors which could affect EnerSys' results, including
earnings estimates, see EnerSys' filings with the Securities and
Exchange Commission, "Item 7. Management's Discussion and Analysis
of Financial Condition and Results of Operations," including
"Forward-Looking Statements," set forth in EnerSys' Annual Report
on Form 10-K for the fiscal year ended March
31, 2015. No undue reliance should be placed on any
forward-looking statements.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/enersys-reports-first-quarter-fiscal-2016-results-300124425.html
SOURCE EnerSys