EnerSys Reports Third Quarter Fiscal 2017 Results
Net earnings attributable to
Net earnings for the third quarter of fiscal 2016 were
Excluding these highlighted items, adjusted Net earnings per diluted share for the third quarter of fiscal 2017, on a non-GAAP basis, were
Net sales for the third quarter of fiscal 2017 were
The Company's operating results for its business segments for the third quarters of fiscal 2017 and 2016 are as follows:
Quarter ended |
|||||||
($ millions) |
|||||||
January 1, 2017 |
December 27, 2015 |
||||||
Net sales by segment |
|||||||
Americas |
$ |
314.0 |
$ |
306.3 |
|||
EMEA |
186.1 |
196.8 |
|||||
Asia |
63.6 |
70.5 |
|||||
Total net sales |
$ |
563.7 |
$ |
573.6 |
|||
Operating earnings |
|||||||
Americas |
$ |
44.8 |
$ |
41.6 |
|||
EMEA |
20.5 |
16.5 |
|||||
Asia |
4.0 |
1.7 |
|||||
Restructuring and other exit charges - Americas |
— |
(0.9) |
|||||
Inventory adjustment relating to exit activities - EMEA |
0.5 |
— |
|||||
Restructuring and other exit credits (charges) - EMEA |
1.2 |
(2.1) |
|||||
Restructuring charges - Asia |
— |
(0.2) |
|||||
Competition investigations and related legal charges - EMEA * |
(17.0) |
— |
|||||
ERP system implementation - Americas |
(0.6) |
(1.0) |
|||||
Deferred purchase consideration - Americas |
1.9 |
— |
|||||
Acquisition activity expense - Americas |
(0.1) |
— |
|||||
Acquisition activity expense - EMEA |
(0.1) |
— |
|||||
Acquisition activity expense - Asia |
— |
(0.1) |
|||||
Total operating earnings |
$ |
55.1 |
$ |
55.5 |
EMEA - Europe, Middle East and Africa |
* See Litigation and Other Legal Matters in Note 7 - Commitments, Contingencies and Litigation to the Consolidated Condensed Financial Statements in our Quarterly Report on Form 10-Q for the quarter ended January 1, 2017 for more details. |
Net earnings for the nine months of fiscal 2017 were
Net earnings for the nine months of fiscal 2016 were
Adjusted Net earnings for the nine months of fiscal 2017, on a non-GAAP basis, were
Net sales for the nine months of fiscal 2017 were
The Company's operating results for its business segments for the nine months of fiscal years 2017 and 2016 are as follows:
Nine months ended |
|||||||
($ millions) |
|||||||
January 1, 2017 |
December 27, 2015 |
||||||
Net sales by segment |
|||||||
Americas |
$ |
968.5 |
$ |
945.8 |
|||
EMEA |
563.8 |
582.9 |
|||||
Asia |
208.0 |
176.1 |
|||||
Total net sales |
$ |
1,740.3 |
$ |
1,704.8 |
|||
Operating earnings |
|||||||
Americas |
$ |
145.8 |
$ |
137.3 |
|||
EMEA |
57.3 |
54.2 |
|||||
Asia |
11.8 |
1.8 |
|||||
Restructuring charges - Americas |
(0.9) |
(1.5) |
|||||
Inventory adjustment relating to exit activities - EMEA |
(2.1) |
— |
|||||
Restructuring and other exit charges - EMEA |
(3.7) |
(4.6) |
|||||
Restructuring charges - Asia |
(0.4) |
(0.9) |
|||||
Competition investigations and related legal charges - EMEA * |
(17.0) |
(4.0) |
|||||
Reversal of legal accrual, net of fees - Americas |
— |
0.8 |
|||||
Gain on sale of facility - Asia |
— |
4.3 |
|||||
ERP system implementation - Americas |
(8.3) |
(2.8) |
|||||
Deferred purchase consideration - Americas |
1.9 |
— |
|||||
Acquisition activity expense - Americas |
(0.2) |
(0.2) |
|||||
Acquisition activity expense - EMEA |
(0.2) |
— |
|||||
Acquisition activity expense - Asia |
— |
(0.3) |
|||||
Total operating earnings |
$ |
184.0 |
$ |
184.1 |
EMEA - Europe, Middle East and Africa |
* See Litigation and Other Legal Matters in Note 7 - Commitments, Contingencies and Litigation to the Consolidated Condensed Financial Statements in our Quarterly Report on Form 10-Q for the quarter ended January 1, 2017 for more details. |
"I am pleased with the results of the third quarter," stated
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").
Included below is a reconciliation of non-GAAP adjusted financial measures to reported 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 |
|||||||||
January 1, 2017 |
December 27, 2015 |
||||||||
(in millions, except share and per share amounts) |
|||||||||
Net Earnings reconciliation |
|||||||||
As reported Net Earnings |
$ |
36.2 |
$ |
38.5 |
|||||
Non-GAAP adjustments, net of tax: |
|||||||||
Restructuring and other exit (credits) charges |
(1.8) |
(1) |
2.4 |
(1) |
|||||
Legal proceedings charge |
17.0 |
(2) |
— |
||||||
ERP system implementation |
0.4 |
(3) |
0.6 |
(3) |
|||||
Deferred purchase consideration |
(1.2) |
(4) |
— |
||||||
Acquisition activity expense |
0.1 |
(6) |
— |
||||||
Noncontrolling partner's share of restructuring and exit charges |
1.3 |
(7) |
— |
||||||
Non-GAAP adjusted Net Earnings |
$ |
52.0 |
$ |
41.5 |
|||||
Outstanding shares used in per share calculations |
|||||||||
Basic |
43,429,525 |
44,394,925 |
|||||||
Diluted |
44,049,674 |
44,976,204 |
|||||||
Non-GAAP adjusted Net Earnings per share: |
|||||||||
Basic |
$ |
1.20 |
$ |
0.94 |
|||||
Diluted |
$ |
1.18 |
$ |
0.92 |
|||||
Reported Net Earnings per share: |
|||||||||
Basic |
$ |
0.83 |
$ |
0.87 |
|||||
Diluted |
$ |
0.82 |
$ |
0.86 |
|||||
Dividends per common share |
$ |
0.175 |
$ |
0.175 |
The following table provides the regional allocation of the non-GAAP adjustments shown in the reconciliation above:
Quarter ended |
|||||||||||||||||
January 1, 2017 |
December 27, 2015 |
||||||||||||||||
Pre-tax |
Net of tax |
Pre-tax |
Net of tax |
||||||||||||||
($ millions) |
($ millions) |
||||||||||||||||
(1) Restructuring and other exit charges - Americas |
$ |
— |
$ |
— |
$ |
0.9 |
$ |
0.5 |
|||||||||
(1) Inventory adjustment relating to exit activities - EMEA - (South Africa joint venture) |
(0.5) |
(0.5) |
— |
— |
|||||||||||||
(1) Restructuring and other exit (credits) charges - EMEA |
(1.2) |
(1.3) |
2.1 |
1.7 |
|||||||||||||
(1) Restructuring charges - Asia |
— |
— |
0.2 |
0.2 |
|||||||||||||
(2) Competition investigations and related legal charges - EMEA * |
17.0 |
17.0 |
— |
— |
|||||||||||||
(3) ERP system implementation - Americas |
0.6 |
0.4 |
1.0 |
0.6 |
|||||||||||||
(4) Deferred purchase consideration - Americas |
(1.9) |
(1.2) |
— |
— |
|||||||||||||
(6) Acquisition activity expense - Americas |
0.1 |
0.1 |
— |
— |
|||||||||||||
(6) Acquisition activity expense - EMEA |
0.1 |
— |
— |
— |
|||||||||||||
(6) Acquisition activity expense - Asia |
— |
— |
0.1 |
— |
|||||||||||||
(7) Noncontrolling partner's share of restructuring and exit charges - EMEA - (South Africa joint venture) |
— |
1.3 |
— |
— |
|||||||||||||
Total Non-GAAP adjustments |
$ |
14.2 |
$ |
15.8 |
$ |
4.3 |
$ |
3.0 |
|||||||||
EMEA - Europe, Middle East and Africa |
||
* See Litigation and Other Legal Matters in Note 7 - Commitments, Contingencies and Litigation to the Consolidated Condensed Financial Statements in our Quarterly Report on Form 10-Q for the quarter ended January 1, 2017 for more details. |
Nine months ended |
|||||||||
January 1, 2017 |
December 27, 2015 |
||||||||
(in millions, except share and per share amounts) |
|||||||||
Net Earnings reconciliation |
|||||||||
As reported Net Earnings |
$ |
126.4 |
$ |
126.9 |
|||||
Non-GAAP adjustments, net of tax: |
|||||||||
Restructuring and other exit charges |
6.0 |
(1) |
5.3 |
(1) |
|||||
Legal proceedings charge / (reversal of legal accrual, net of fees) |
17.0 |
(2) |
2.9 |
(2) |
|||||
ERP system implementation |
5.3 |
(3) |
1.7 |
(3) |
|||||
Deferred purchase consideration |
(1.2) |
(4) |
— |
||||||
Gain on sale of facility |
— |
(3.3) |
(5) |
||||||
Acquisition activity expense |
0.3 |
(6) |
0.4 |
(6) |
|||||
Noncontrolling partner's share of restructuring and exit charges |
(1.3) |
(7) |
— |
||||||
Tax benefit related to stock-based compensation of senior executives |
— |
(1.0) |
(8) |
||||||
Non-GAAP adjusted Net Earnings |
$ |
152.5 |
$ |
132.9 |
|||||
Outstanding shares used in per share calculations |
|||||||||
Basic |
43,375,474 |
44,524,289 |
|||||||
Diluted |
43,943,010 |
45,912,659 |
|||||||
Non-GAAP adjusted Net Earnings per share: |
|||||||||
Basic |
$ |
3.52 |
$ |
2.99 |
|||||
Diluted |
$ |
3.47 |
$ |
2.90 |
|||||
Reported Net Earnings per share: |
|||||||||
Basic |
$ |
2.92 |
$ |
2.85 |
|||||
Diluted |
$ |
2.88 |
$ |
2.76 |
|||||
Dividends per common share |
$ |
0.525 |
$ |
0.525 |
The following table provides the regional allocation of the non-GAAP adjustments shown in the reconciliation above:
Nine months ended |
||||||||||||||||
January 1, 2017 |
December 27, 2015 |
|||||||||||||||
Pre-tax |
Net of tax |
Pre-tax |
Net of tax |
|||||||||||||
($ millions) |
($ millions) |
|||||||||||||||
(1) Restructuring charges - Americas |
$ |
0.9 |
$ |
0.5 |
$ |
1.5 |
$ |
0.9 |
||||||||
(1) Inventory adjustment relating to exit activities - EMEA - (South Africa joint venture) |
2.1 |
2.1 |
— |
— |
||||||||||||
(1) Restructuring and other exit charges - EMEA |
3.7 |
3.0 |
4.6 |
3.5 |
||||||||||||
(1) Restructuring charges - Asia |
0.4 |
0.4 |
0.9 |
0.9 |
||||||||||||
(2) Competition investigations and related legal charges - EMEA * |
17.0 |
17.0 |
4.0 |
3.4 |
||||||||||||
(2) Reversal of legal accrual, net of fees - Americas |
— |
— |
(0.8) |
(0.5) |
||||||||||||
(3) ERP system implementation - Americas |
8.3 |
5.3 |
2.8 |
1.7 |
||||||||||||
(4) Deferred purchase consideration - Americas |
(1.9) |
(1.2) |
— |
— |
||||||||||||
(5) Gain on sale of facility - Asia |
— |
— |
(4.3) |
(3.3) |
||||||||||||
(6) Acquisition activity expense - Americas |
0.2 |
0.2 |
0.2 |
0.2 |
||||||||||||
(6) Acquisition activity expense - EMEA |
0.2 |
0.1 |
— |
— |
||||||||||||
(6) Acquisition activity expense - Asia |
— |
— |
0.3 |
0.2 |
||||||||||||
(7) Noncontrolling partner's share of restructuring and exit charges - EMEA - (South Africa joint venture) |
— |
(1.3) |
— |
— |
||||||||||||
(8) Tax benefit related to stock-based compensation of senior executives |
— |
— |
— |
(1.0) |
||||||||||||
Total Non-GAAP adjustments |
$ |
30.9 |
$ |
26.1 |
$ |
9.2 |
$ |
6.0 |
EMEA - Europe, Middle East and Africa |
||
* See Litigation and Other Legal Matters in Note 7 - Commitments, Contingencies and Litigation to the Consolidated Condensed Financial Statements in our Quarterly Report on Form 10-Q for the quarter ended January 1, 2017 for more details. |
Summary of Earnings (Unaudited) (In millions, except share and per share data) |
|||||||
Quarter ended |
|||||||
January 1, 2017 |
December 27, 2015 |
||||||
Net sales |
$ |
563.7 |
$ |
573.6 |
|||
Gross profit |
155.9 |
145.8 |
|||||
Operating expenses |
85.0 |
87.1 |
|||||
Restructuring and other exit (credits) charges |
(1.2) |
3.2 |
|||||
Legal proceedings charge |
17.0 |
— |
|||||
Operating earnings |
55.1 |
55.5 |
|||||
Earnings before income taxes |
50.6 |
49.0 |
|||||
Net earnings attributable to EnerSys stockholders |
$ |
36.2 |
$ |
38.5 |
|||
Net earnings per common share attributable to EnerSys stockholders: |
|||||||
Basic |
$ |
0.83 |
$ |
0.87 |
|||
Diluted |
$ |
0.82 |
$ |
0.86 |
|||
Dividends per common share |
$ |
0.175 |
$ |
0.175 |
|||
Weighted-average number of common shares used in per share calculations: |
|||||||
Basic |
43,429,525 |
44,394,925 |
|||||
Diluted |
44,049,674 |
44,976,204 |
|||||
Nine months ended |
|||||||
January 1, 2017 |
December 27, 2015 |
||||||
Net sales |
$ |
1,740.3 |
$ |
1,704.8 |
|||
Gross profit |
483.5 |
451.2 |
|||||
Operating expenses |
277.5 |
261.2 |
|||||
Restructuring and other exit charges |
5.0 |
7.0 |
|||||
Legal proceedings charge |
17.0 |
3.2 |
|||||
Gain on sale of facility |
— |
(4.3) |
|||||
Operating earnings |
184.0 |
184.1 |
|||||
Earnings before income taxes |
167.6 |
164.8 |
|||||
Net earnings attributable to EnerSys stockholders |
$ |
126.4 |
$ |
126.9 |
|||
Net earnings per common share attributable to EnerSys stockholders: |
|||||||
Basic |
$ |
2.92 |
$ |
2.85 |
|||
Diluted |
$ |
2.88 |
$ |
2.76 |
|||
Dividends per common share |
$ |
0.525 |
$ |
0.525 |
|||
Weighted-average number of common shares used in per share calculations: |
|||||||
Basic |
43,375,474 |
44,524,289 |
|||||
Diluted |
43,943,010 |
45,912,659 |
The call, scheduled for
The call will also be Webcast on
The conference call information is:
Date: |
Thursday, February 9, 2017 |
Time: |
9:00 a.m. Eastern Time |
Via Internet: |
|
Domestic Dial-In Number: |
877-359-9508 |
International Dial-In Number: |
224-357-2393 |
Passcode: |
48203166 |
A replay of the conference call will be available from
The replay information is:
Via Internet: |
|
Domestic Replay Number: |
855-859-2056 |
International Replay Number: |
404-537-3406 |
Passcode: |
48203166 |
EDITOR'S NOTE:
More information regarding
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
Although
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/enersys-reports-third-quarter-fiscal-2017-results-300404513.html
SOURCE
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