READING, Pa., June 1 /PRNewswire-FirstCall/ -- EnerSys (NYSE: ENS) the
world's largest manufacturer, marketer and distributor of industrial
batteries, today announced results for its fourth fiscal quarter and full
fiscal year 2009, which ended on March 31, 2009. Net earnings for the fourth
fiscal quarter of 2009 were $3.3 million or $0.07 per diluted share, including
an unfavorable $0.29 per share impact from the $13.8 million ($19.2 million
pre-tax) charge for our restructuring plans. This compares to diluted net
earnings per share of $0.39 for the fourth fiscal quarter of 2008, which
included unfavorable highlighted charges of $0.03 per share or $1.3 million
($1.9 million pre-tax). Net sales for the fourth quarter of 2009 were $393.2
million, a decrease of 32.4% from the prior year's fourth quarter net sales of
$581.9 million and a 14.7% sequential quarterly decrease from the third
quarter of 2009's net sales of $460.9 million. The 32.4% decline was
attributed to a 19% decline in organic volume, 8% from weaker foreign
currencies, primarily the euro, and 5% from reduced pricing related to lower
commodity costs. The decline in organic volume was a direct result of reduced
end-user demand.
Adjusted net earnings the fourth fiscal quarter of 2009, on a non-GAAP
basis, were $0.36 per diluted share. This compares to the prior year's fourth
quarter of $0.42 per diluted share on an adjusted, non-GAAP basis. These
earnings were achieved in spite of a significant decline in revenue which were
offset by the positive effects of our cost reduction activities and further
reductions in commodity costs, net of pricing. 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.
The Company's operating results for its reporting segments for the fourth
fiscal quarters of 2009 and 2008 are as follows (in millions):
Reserve Motive Consolidated
Power Power
Three months ended March 31, 2009:
Net sales $201.6 $191.6 $393.2
Operating earnings before
highlighted items $18.5 $12.3 $30.8
Restructuring charges (3.8) (15.4) (19.2)
Total operating earnings $14.7 $(3.1) $11.6
Three months ended March 31, 2008:
Net sales $252.6 $329.3 $581.9
Operating earnings before
highlighted items $12.4 $26.6 $39.0
Restructuring charges (0.1) (1.7) (1.8)
Total operating earnings $12.3 $24.9 $37.2
Net earnings for fiscal 2009 were $84.6 million or $1.71 per diluted
share, and included the net unfavorable impact from highlighted charges and
credits of $0.27 per share. Highlighted charges and credits included a
favorable $0.17 per share from the $8.5 million ($11.3 million pre-tax) gain
on sale of facilities, and total charges of $0.44 per share comprised of:
$15.9 million ($22.4 million pre-tax) for the restructuring plans; $3.4
million ($5.2 million pre-tax) for fees related to our debt refinancing; $2.2
million ($3.4 million pre-tax) for a legal proceedings charge; and $0.2
million ($0.3 million pre-tax) for fees related to secondary stock offerings.
Net earnings for fiscal 2008 were $59.7 million or $1.22 per diluted
share, and included $0.20 per share of highlighted charges: $9.1 million
($13.2 million pre-tax) of restructuring charges and $0.4 million ($0.6
million pre-tax) for fees related to secondary stock offerings.
Excluding the highlighted charges and credits in both fiscal years,
non-GAAP adjusted net earnings for fiscal 2009 were $97.8 million or $1.98 per
diluted share, a 41% increase when compared to non-GAAP adjusted net earnings
for fiscal 2008 of $69.2 million or $1.42 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.
The Company's operating results for its reporting segments for fiscal 2009
and 2008 are as follows (in millions):
Reserve Motive Consolidated
Power Power
Fiscal year ended March 31, 2009:
Net sales $933.8 $1,039.1 $1,972.9
Operating earnings before
highlighted items $86.4 $70.5 $156.9
Gain on sale of facilities 10.9 0.4 11.3
Legal proceedings charge (3.4) - (3.4)
Restructuring charges (5.5) (16.9) (22.4)
Total operating earnings $88.4 $54.0 $142.4
Fiscal year ended March 31, 2008:
Net sales $883.8 $1,142.8 $2,026.6
Operating earnings before
restructuring charges $43.8 $88.7 $132.5
Restructuring charges (8.5) (4.7) (13.2)
Total operating earnings $35.3 $84.0 $119.3
"As we previously announced on May 13, we achieved record earnings for the
full year of $1.98 per diluted share on an as adjusted basis. This is in
spite of the significant pressures we faced as a result of the global economic
downturn. We achieved these results in large part through the efforts of our
employees, our customer focus and our ongoing cost reduction activities," said
John D. Craig, chairman, president and chief executive officer of EnerSys.
"In response to the continuing economic downturn, we announced on May 13 that
we expanded our restructuring programs which we expect will yield an
additional annual savings of $7 million with a cost of $9 million."
Craig added, "We maintain our previously announced first quarter guidance
that non-GAAP adjusted net earnings per diluted share will be between $0.13
and $0.17, which excludes an expected charge of $0.09 per diluted share from
our ongoing European restructure actions."
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 highlighted charges and credits.
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 directly related to operating unit performance and
are unusual in nature and accordingly, are not indicative of ongoing operating
results. Management believes these charges or credits are not valid measures
of the performance of the Company's underlying business. 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 or expected 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:
Fiscal quarter ended
March 31, March 31,
2009 2008
(in millions, except share and
per share amounts)
Net earnings reconciliation
As reported net earnings $3.3 $19.5
Non-GAAP adjustments (net of tax):
Restructuring charge 13.8 (1) 1.2 (1)
Secondary offering - 0.1 (2)
Non-GAAP adjusted net earnings $17.1 $20.8
Outstanding shares used in per share
calculations
Basic 47,906,364 48,748,223
Diluted 47,951,003 49,895,646
Non-GAAP adjusted net earnings per share:
Basic $0.37 $0.43
Diluted $0.36 $0.42
Reported net earnings per share:
Basic $0.07 $0.40
Diluted $0.07 $0.39
Fiscal year ended
March 31, March 31,
2009 2008
(in millions, except share
and per share amounts)
Net earnings reconciliation
As reported net earnings $84.6 $59.7
Non-GAAP adjustments (net of tax):
Gain on sale of facilities (8.5)(3) -
Legal proceedings charge 2.2 (4) -
Restructuring charge 15.9 (1) 9.1 (1)
Refinancing related charges 3.4 (5) -
Secondary offering fees 0.2 (2) 0.4 (2)
Non-GAAP adjusted net earnings $97.8 $69.2
Outstanding shares used in per share
calculations
Basic 48,824,434 47,645,225
Diluted 49,420,303 48,644,450
Non-GAAP adjusted net earnings per share:
Basic $2.00 $1.45
Diluted $1.98 $1.42
Reported net earnings per share:
Basic $1.73 $1.25
Diluted $1.71 $1.22
(1) Resulting from pretax charges of approximately $19.2 million and
$22.4 million in the fourth fiscal quarter and fiscal year 2009; and
$1.8 million and $13.2 million in the fourth fiscal quarter and
fiscal year 2008, primarily for severance costs related to staff
reductions, and fixed asset write-offs for the 2009 Americas and
European restructuring plan, and 2008 European restructuring plan,
related to the Energia acquisition.
(2) Resulting from pretax charges of approximately $0.3 million and $0.6
million, for professional fees related to secondary stock offerings
which occurred in fiscal 2009 and 2008, respectively.
(3) Resulting from pretax gains of approximately $10.9 million, net of
fees and expenses, from the sale of the Manchester, England
manufacturing facility, recorded in the first fiscal quarter of 2009
and approximately $0.4 million from the sale of other facilities in
the third fiscal quarter of 2009.
(4) Resulting from pretax charge of approximately $3.4 million in the
first fiscal quarter of 2009 for a litigation award against the
Company.
(5) Resulting from pretax charges of approximately $5.2 million in the
first fiscal quarter of 2009 related to the refinancing of amounts
borrowed under the Company's prior senior secured credit facility.
These charges are comprised of an approximate $4.0 million write-off
of deferred financing fees and $1.2 million of losses incurred in
terminating certain interest rate swap agreements.
EnerSys
Summary of Earnings (Unaudited)
(In millions, except share and per share data)
Fiscal quarters ended
March 31, 2009 March 31, 2008
Net sales $393.2 $581.9
Gross profit 90.3 105.8
Operating expenses 59.5 66.8
Restructuring charges 19.2 1.8
Operating earnings 11.6 37.2
Earnings before income taxes 5.6 29.6
Net earnings $3.3 $19.5
Net earnings per common share:
Basic $0.07 $0.40
Diluted $0.07 $0.39
Weighted average shares
outstanding:
Basic 47,906,364 48,748,223
Diluted 47,951,003 49,895,646
EnerSys
Summary of Earnings (Unaudited)
(In millions, except share and per share data)
Fiscal years ended
March 31, 2009 March 31, 2008
Net sales $1,972.9 $2,026.6
Gross profit 413.4 381.9
Operating expenses 256.5 249.4
Gain on sale of facilities (11.3) -
Restructuring charges 22.4 13.2
Legal proceedings charge 3.4 -
Operating earnings 142.4 119.3
Earnings before income taxes 123.2 86.2
Net earnings $84.6 $59.7
Net earnings per common share:
Basic $1.73 $1.25
Diluted $1.71 $1.22
Weighted average shares
outstanding:
Basic 48,824,434 47,645,225
Diluted 49,420,303 48,644,450
EnerSys will host a conference call to discuss the Company's fourth fiscal
quarter 2009 financial results and provide an overview of the business. The
call will conclude with a question and answer session.
The call, scheduled for Tuesday, June 2, 2009, at 9:00 a.m. Eastern Time,
will be hosted by John D. Craig, Chairman, President and Chief Executive
Officer and Michael T. Philion, Executive 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 website at
http://www.enersys.com.
The conference call information is:
Date: Tuesday, June 2, 2009
Time: 9:00 a.m. Eastern Time
Via Internet: http://www.enersys.com
Domestic Dial-In Number: 866-713-8310
International Dial-In Number: 617-597-5308
Passcode: 49099078
A replay of the conference call will be available from 11:00 a.m. on June
2, 2009 through noon on June 30, 2009.
The replay information is:
Via Internet: http://www.enersys.com
Domestic Replay Number: 888-286-8010
International Replay Number: 617-801-6888
Passcode: 79366586
For more information, please contact Richard Zuidema, Executive Vice
President, EnerSys, P.O. Box 14145, Reading, PA 19612-4145. Tel:
800-538-3627; Website http://www.enersys.com.
EDITOR'S NOTE: EnerSys, the world leader in stored energy solutions for
industrial applications, manufactures and distributes reserve power and motive
power batteries, chargers, power equipment, and battery accessories to
customers worldwide. Motive power batteries are utilized in electric fork
trucks and other commercial electric powered vehicles. Reserve power batteries
are used in the telecommunications and utility industries, uninterruptible
power suppliers, and numerous applications requiring standby power. 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, 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, and market
share, as well as statements expressing optimism or pessimism about future
operating results, 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 EnerSys' 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, including "Item 7. Management's Discussion and Analysis
of Financial Condition and Results of Operations," including "Forward-Looking
Statements," set forth in the Company's Annual Report on Form 10-K for the
fiscal year ended March 31, 2009. No undue reliance should be placed on any
forward-looking statements.
SOURCE EnerSys
CONTACT:
Richard Zuidema
Executive Vice President of EnerSys
+1-800-538-3627