EnerSys Reports Second Quarter Fiscal 2018 Results
Net earnings attributable to
Net earnings for the second quarter of fiscal 2017 were
Excluding these highlighted items, adjusted Net earnings per diluted share for the second quarter of fiscal 2018, on a non-GAAP basis, were
Net sales for the second quarter of fiscal 2018 were
The Company’s operating results for its business segments for the second quarters of fiscal 2018 and 2017 are as follows:
Quarter ended | |||||||
($ millions) | |||||||
October 1, 2017 | October 2, 2016 | ||||||
Net sales by segment | |||||||
Americas | $ | 341.5 | $ | 324.8 | |||
EMEA | 197.9 | 180.6 | |||||
Asia | 77.9 | 70.6 | |||||
Total net sales | $ | 617.3 | $ | 576.0 | |||
Operating earnings | |||||||
Americas | $ | 44.8 | $ | 50.3 | |||
EMEA | 17.9 | 17.0 | |||||
Asia | 4.2 | 3.6 | |||||
Inventory write-off relating to exit activities - EMEA | — | (2.6 | ) | ||||
Restructuring charges - Americas | (0.3 | ) | — | ||||
Restructuring charges - EMEA | (1.5 | ) | (4.6 | ) | |||
Restructuring charges - Asia | — | (0.3 | ) | ||||
ERP system implementation - Americas | (0.7 | ) | (0.4 | ) | |||
Acquisition activity expense - Americas | (0.1 | ) | — | ||||
Acquisition activity expense - EMEA | (0.3 | ) | (0.1 | ) | |||
Total operating earnings | $ | 64.0 | $ | 62.9 | |||
EMEA - Europe, Middle East and Africa |
Net earnings for the six months of fiscal 2018 were
Net earnings for the six months of fiscal 2017 were
Adjusted Net earnings for the six months of fiscal 2018, on a non-GAAP basis, were
Net sales for the six months of fiscal 2018 were
The Company's operating results for its business segments for the six months of fiscal years 2018 and 2017 are as follows:
Six months ended | |||||||
($ millions) | |||||||
October 1, 2017 | October 2, 2016 | ||||||
Net sales by segment | |||||||
Americas | $ | 696.1 | $ | 654.5 | |||
EMEA | 397.0 | 377.7 | |||||
Asia | 146.8 | 144.4 | |||||
Total net sales | $ | 1,239.9 | $ | 1,176.6 | |||
Operating earnings | |||||||
Americas | $ | 99.4 | $ | 101.0 | |||
EMEA | 31.4 | 36.8 | |||||
Asia | 7.4 | 7.8 | |||||
Restructuring charges - Americas | (0.3 | ) | (0.9 | ) | |||
Inventory adjustment relating to exit activities - EMEA | — | (2.6 | ) | ||||
Restructuring charges - EMEA | (2.3 | ) | (4.9 | ) | |||
Restructuring charges - Asia | — | (0.4 | ) | ||||
ERP system implementation - Americas | (1.6 | ) | (7.7 | ) | |||
Acquisition activity expense - Americas | (0.1 | ) | (0.1 | ) | |||
Acquisition activity expense - EMEA | (0.3 | ) | (0.1 | ) | |||
Total operating earnings | $ | 133.6 | $ | 128.9 | |||
EMEA - Europe, Middle East and Africa | |||||||
“Our core business remains stable,” 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").
Income tax effects of non-GAAP adjustments are calculated using the applicable statutory tax rate for the jurisdictions in which the charges (benefits) are incurred, while taking into consideration any valuation allowances. For those items which are non-taxable, the tax expense (benefit) is calculated at 0%.
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 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 | |||||||||||
October 1, 2017 | October 2, 2016 | ||||||||||
(in millions, except share and per share amounts) | |||||||||||
Net Earnings reconciliation | |||||||||||
As reported Net Earnings | $ | 43.2 | $ | 45.6 | |||||||
Non-GAAP adjustments: | |||||||||||
Restructuring charges | 1.8 | (1 | ) | 7.5 | (1 | ) | |||||
ERP system implementation | 0.7 | (2 | ) | 0.4 | (2 | ) | |||||
Acquisition activity expense | 0.4 | (3 | ) | 0.1 | (3 | ) | |||||
Non-controlling partner's share of restructuring and exit charges - EMEA - South Africa joint venture | — | (2.6 | ) | ||||||||
Income tax effect of above non-GAAP adjustments | (0.8 | ) | (0.6 | ) | |||||||
Non-GAAP adjusted Net Earnings | $ | 45.3 | $ | 50.4 | |||||||
Outstanding shares used in per share calculations | |||||||||||
Basic | 42,938,131 | 43,426,955 | |||||||||
Diluted | 43,327,361 | 43,949,543 | |||||||||
Non-GAAP adjusted Net Earnings per share: | |||||||||||
Basic | $ | 1.06 | $ | 1.16 | |||||||
Diluted | $ | 1.05 | $ | 1.15 | |||||||
Reported Net Earnings per share: | |||||||||||
Basic | $ | 1.01 | $ | 1.05 | |||||||
Diluted | $ | 1.00 | $ | 1.04 | |||||||
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 | |||||||||
October 1, 2017 | October 2, 2016 | ||||||||
Pre-tax | Pre-tax | ||||||||
($ millions) |
($ millions) | ||||||||
(1) Restructuring charges - Americas | $ | 0.3 | $ | — | |||||
(1) Inventory write-off relating to exit activities - EMEA - (South Africa joint venture) | — | 2.6 | |||||||
(1) Restructuring charges - EMEA | 1.5 | 4.6 | |||||||
(1) Restructuring charges - Asia | — | 0.3 | |||||||
(2) ERP system implementation - Americas | 0.7 | 0.4 | |||||||
(3) Acquisition activity expense - Americas | 0.1 | 0.1 | |||||||
(3) Acquisition activity expense - EMEA | 0.3 | — | |||||||
Total Non-GAAP adjustments | $ | 2.9 | $ | 8.0 | |||||
EMEA - Europe, Middle East and Africa | |||||||||
Six months ended | |||||||||||
October 1, 2017 | October 2, 2016 | ||||||||||
(in millions, except share and per share amounts) | |||||||||||
Net Earnings reconciliation | |||||||||||
As reported Net Earnings | $ | 91.4 | $ | 90.2 | |||||||
Non-GAAP adjustments: | |||||||||||
Restructuring charges | 2.6 | (1 | ) | 8.8 | (1 | ) | |||||
ERP system implementation | 1.6 | (2 | ) | 7.7 | (2 | ) | |||||
Acquisition activity expense | 0.4 | (3 | ) | 0.2 | (3 | ) | |||||
Non-controlling partner's share of restructuring and exit charges - EMEA - South Africa joint venture | — | (2.6 | ) | ||||||||
Income tax effect of above non-GAAP adjustments | (1.3 | ) | (3.8 | ) | |||||||
Non-GAAP adjusted Net Earnings | $ | 94.7 | $ | 100.5 | |||||||
Outstanding shares used in per share calculations | |||||||||||
Basic | 43,194,107 | 43,348,449 | |||||||||
Diluted | 43,745,218 | 43,889,678 | |||||||||
Non-GAAP adjusted Net Earnings per share: | |||||||||||
Basic | $ | 2.19 | $ | 2.32 | |||||||
Diluted | $ | 2.17 | $ | 2.29 | |||||||
Reported Net Earnings per share: | |||||||||||
Basic | $ | 2.12 | $ | 2.08 | |||||||
Diluted | $ | 2.09 | $ | 2.06 | |||||||
Dividends per common share | $ | 0.35 | $ | 0.35 | |||||||
The following table provides the regional allocation of the non-GAAP adjustments shown in the reconciliation above:
Six months ended | |||||||||
October 1, 2017 | October 2, 2016 | ||||||||
Pre-tax | Pre-tax | ||||||||
($ millions) |
($ millions) | ||||||||
(1) Restructuring charges - Americas | $ | 0.3 | $ | 0.9 | |||||
(1) Inventory adjustment relating to exit activities - EMEA - (South Africa joint venture) | — | 2.6 | |||||||
(1) Restructuring charges - EMEA | 2.3 | 4.9 | |||||||
(1) Restructuring charges - Asia | — | 0.4 | |||||||
(2) ERP system implementation - Americas | 1.6 | 7.7 | |||||||
(3) Acquisition activity expense - Americas | 0.1 | 0.1 | |||||||
(3) Acquisition activity expense - EMEA | 0.3 | 0.1 | |||||||
Total Non-GAAP adjustments | $ | 4.6 | $ | 16.7 | |||||
EMEA - Europe, Middle East and Africa | |||||||||
Summary of Earnings (Unaudited) (In millions, except share and per share data) |
|||||||
Quarter ended | |||||||
October 1, 2017 | October 2, 2016 | ||||||
Net sales | $ | 617.3 | $ | 576.0 | |||
Gross profit | 159.9 | 161.3 | |||||
Operating expenses | 94.1 | 93.5 | |||||
Restructuring charges | 1.8 | 4.9 | |||||
Operating earnings | 64.0 | 62.9 | |||||
Earnings before income taxes | 55.1 | 58.0 | |||||
Net earnings attributable to EnerSys stockholders | $ | 43.2 | $ | 45.6 | |||
Net earnings per common share attributable to EnerSys stockholders: | |||||||
Basic | $ | 1.01 | $ | 1.05 | |||
Diluted | $ | 1.00 | $ | 1.04 | |||
Dividends per common share | $ | 0.175 | $ | 0.175 | |||
Weighted-average number of common shares used in per share calculations: | |||||||
Basic | 42,938,131 | 43,426,955 | |||||
Diluted | 43,327,361 | 43,949,543 | |||||
Six months ended | |||||||
October 1, 2017 | October 2, 2016 | ||||||
Net sales | $ | 1,239.9 | $ | 1,176.6 | |||
Gross profit | 323.0 | 327.6 | |||||
Operating expenses | 186.8 | 192.5 | |||||
Restructuring charges | 2.6 | 6.2 | |||||
Operating earnings | 133.6 | 128.9 | |||||
Earnings before income taxes | 116.1 | 117.0 | |||||
Net earnings attributable to EnerSys stockholders | $ | 91.4 | $ | 90.2 | |||
Net earnings per common share attributable to EnerSys stockholders: | |||||||
Basic | $ | 2.12 | $ | 2.08 | |||
Diluted | $ | 2.09 | $ | 2.06 | |||
Dividends per common share | $ | 0.35 | $ | 0.35 | |||
Weighted-average number of common shares used in per share calculations: | |||||||
Basic | 43,194,107 | 43,348,449 | |||||
Diluted | 43,745,218 | 43,889,678 | |||||
The call, scheduled for
The call will also be Webcast on
The conference call information is:
Date: | Thursday, November 9, 2017 |
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: | 82785100 |
A replay of the conference call will be available from
The replay information is:
Via Internet: | http://www.enersys.com |
Domestic Replay Number: | 855-859-2056 |
International Replay Number: | 404-537-3406 |
Passcode: | 82785100 |
For more information, contact
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 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
Although