EnerSys Reports Fourth Quarter and Full Year Fiscal 2018 Results
Net earnings attributable to
Net earnings attributable to
Excluding these highlighted items, adjusted Net earnings per diluted share for the fourth quarter of fiscal 2018, on a non-GAAP basis, were
Net sales for the fourth quarter of fiscal 2018 were
The Company’s operating results for its business segments for the fourth quarters of fiscal 2018 and 2017 are as follows:
Quarter ended | |||||||
($ millions) | |||||||
March 31, 2018 | March 31, 2017 | ||||||
Net sales by segment | |||||||
Americas | $ | 380.5 | $ | 363.8 | |||
EMEA | 227.6 | 199.3 | |||||
Asia | 74.9 | 63.7 | |||||
Total net sales | $ | 683.0 | $ | 626.8 | |||
Operating earnings | |||||||
Americas | $ | 49.5 | $ | 53.5 | |||
EMEA | 21.8 | 19.3 | |||||
Asia | 1.9 | 3.3 | |||||
Inventory adjustment relating to exit activities - Americas | (3.4 | ) | — | ||||
Restructuring and other exit charges - EMEA | (0.9 | ) | (1.8 | ) | |||
Restructuring charges - Asia | (0.2 | ) | (0.3 | ) | |||
Impairment of goodwill and indefinite-lived intangibles - Americas | — | (9.3 | ) | ||||
Impairment of goodwill and indefinite-lived intangibles - EMEA | — | (4.7 | ) | ||||
Competition investigations and related legal charges - EMEA | — | (6.7 | ) | ||||
ERP system implementation and other - Americas | (1.2 | ) | (1.1 | ) | |||
Acquisition activity expense - Americas | (0.1 | ) | (0.1 | ) | |||
Acquisition activity expense - EMEA | (0.1 | ) | (0.2 | ) | |||
Total operating earnings | $ | 67.3 | $ | 51.9 |
EMEA - Europe, Middle East and Africa |
Net earnings for the twelve months of fiscal 2018 were
Net earnings for the twelve months of fiscal 2017 were
Adjusted Net earnings for the twelve months of fiscal 2018, on a non-GAAP basis, were
Net sales for the twelve months of fiscal 2018 were
The Company's operating results for its business segments for the twelve months of fiscal years 2018 and 2017 are as follows:
Twelve months ended | |||||||
($ millions) | |||||||
March 31, 2018 | March 31, 2017 | ||||||
Net sales by segment | |||||||
Americas | $ | 1,429.8 | $ | 1,332.3 | |||
EMEA | 849.5 | 763.1 | |||||
Asia | 302.5 | 271.7 | |||||
Total net sales | $ | 2,581.8 | $ | 2,367.1 | |||
Operating earnings | |||||||
Americas | $ | 192.6 | $ | 199.3 | |||
EMEA | 77.2 | 76.6 | |||||
Asia | 12.6 | 15.1 | |||||
Inventory adjustment relating to exit activities - Americas | (3.4 | ) | — | ||||
Restructuring charges - Americas | (1.3 | ) | (0.9 | ) | |||
Inventory adjustment relating to exit activities - EMEA | — | (2.1 | ) | ||||
Restructuring and other exit charges - EMEA | (4.0 | ) | (5.5 | ) | |||
Restructuring charges - Asia | (0.2 | ) | (0.7 | ) | |||
Impairment of goodwill and indefinite-lived intangibles - Americas | — | (9.3 | ) | ||||
Impairment of goodwill and indefinite-lived intangibles - EMEA | — | (4.7 | ) | ||||
Competition investigations and related legal charges - EMEA | — | (23.7 | ) | ||||
ERP system implementation and other - Americas | (3.3 | ) | (9.4 | ) | |||
Deferred purchase consideration - Americas | — | 1.9 | |||||
Acquisition activity expense - Americas | (0.3 | ) | (0.3 | ) | |||
Acquisition activity expense - EMEA | (0.6 | ) | (0.4 | ) | |||
Total operating earnings | $ | 269.3 | $ | 235.9 |
EMEA - Europe, Middle East and Africa |
“Our global business opportunities are stronger than ever,” 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 | ||||||||||
(in millions, except share and per share amounts) | ||||||||||
March 31, 2018 | March 31, 2017 | |||||||||
Net Earnings reconciliation | ||||||||||
As reported Net Earnings | $ | 54.0 | $ | 33.8 | ||||||
Non-GAAP adjustments: | ||||||||||
Restructuring charges | 4.5 | (1 | ) | 2.1 | (1 | ) | ||||
Impairment of goodwill and indefinite-lived intangibles | — | 14.0 | (2 | ) | ||||||
Legal proceedings charge | — | 6.7 | (3 | ) | ||||||
ERP system implementation and other | 1.2 | (4 | ) | 1.1 | (4 | ) | ||||
Acquisition activity expense | 0.2 | (6 | ) | 0.3 | (6 | ) | ||||
Income tax effect of above non-GAAP adjustments | (1.9 | ) | (1.4 | ) | ||||||
Reversal of foreign tax valuation allowance | (9.6 | ) | — | |||||||
Tax Act | 4.1 | — | ||||||||
Non-GAAP adjusted Net Earnings | $ | 52.5 | $ | 56.6 | ||||||
Outstanding shares used in per share calculations | ||||||||||
Basic | 41,934,187 | 43,430,911 | ||||||||
Diluted | 42,441,647 | 44,221,143 | ||||||||
Non-GAAP adjusted Net Earnings per share: | ||||||||||
Basic | $ | 1.25 | $ | 1.30 | ||||||
Diluted | $ | 1.24 | $ | 1.28 | ||||||
Reported Net Earnings per share: | ||||||||||
Basic | $ | 1.29 | $ | 0.78 | ||||||
Diluted | $ | 1.27 | $ | 0.76 | ||||||
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 | |||||||||
($ millions) | |||||||||
March 31, 2018 | March 31, 2017 | ||||||||
Pre-tax | Pre-tax | ||||||||
(1) Inventory adjustment relating to exit activities - Americas - (Cleveland, Ohio Facility) | $ | 3.4 | $ | — | |||||
(1) Restructuring and other exit charges - EMEA | 0.9 | 1.8 | |||||||
(1) Restructuring charges - Asia | 0.2 | 0.3 | |||||||
(2) Impairment of goodwill and indefinite-lived intangibles - Americas | — | 9.3 | |||||||
(2) Impairment of goodwill and indefinite-lived intangibles - EMEA | — | 4.7 | |||||||
(3) Competition investigations and related legal charges - EMEA | — | 6.7 | |||||||
(4) ERP system implementation and other - Americas | 1.2 | 1.1 | |||||||
(6) Acquisition activity expense - Americas | 0.1 | 0.1 | |||||||
(6) Acquisition activity expense - EMEA | 0.1 | 0.2 | |||||||
Total Non-GAAP adjustments | $ | 5.9 | $ | 24.2 |
EMEA - Europe, Middle East and Africa |
Twelve months ended | ||||||||||
(in millions, except share and per share amounts) | ||||||||||
March 31, 2018 | March 31, 2017 | |||||||||
Net Earnings reconciliation | ||||||||||
As reported Net Earnings | $ | 119.6 | $ | 160.2 | ||||||
Non-GAAP adjustments: | ||||||||||
Restructuring charges | 8.9 | (1 | ) | 9.2 | (1 | ) | ||||
Impairment of goodwill and indefinite-lived intangibles | — | 14.0 | (2 | ) | ||||||
Legal proceedings charge | — | 23.7 | (3 | ) | ||||||
ERP system implementation and other | 3.3 | (4 | ) | 9.4 | (4 | ) | ||||
Deferred purchase consideration | — | (1.9 | ) | (5 | ) | |||||
Acquisition activity expense | 0.9 | (6 | ) | 0.7 | (6 | ) | ||||
Income tax effect of above non-GAAP adjustments | (4.0 | ) | (4.9 | ) | ||||||
Reversal of foreign tax valuation allowance | (9.6 | ) | — | |||||||
Tax Act | 81.4 | — | ||||||||
Non-controlling partner's share of restructuring and exit charges - EMEA - South Africa joint venture | — | (1.3 | ) | |||||||
Non-GAAP adjusted Net Earnings | $ | 200.5 | $ | 209.1 | ||||||
Outstanding shares used in per share calculations | ||||||||||
Basic | 42,612,036 | 43,389,333 | ||||||||
Diluted | 43,119,856 | 44,012,543 | ||||||||
Non-GAAP adjusted Net Earnings per share: | ||||||||||
Basic | $ | 4.70 | $ | 4.82 | ||||||
Diluted | $ | 4.65 | $ | 4.75 | ||||||
Reported Net Earnings per share: | ||||||||||
Basic | $ | 2.81 | $ | 3.69 | ||||||
Diluted | $ | 2.77 | $ | 3.64 | ||||||
Dividends per common share | $ | 0.70 | $ | 0.70 | ||||||
The following table provides the regional allocation of the non-GAAP adjustments shown in the reconciliation above:
Twelve months ended | |||||||||
($ millions) | |||||||||
March 31, 2018 | March 31, 2017 | ||||||||
Pre-tax | Pre-tax | ||||||||
(1) Inventory adjustment relating to exit activities - Americas - (Cleveland, Ohio Facility) | $ | 3.4 | $ | 0.9 | |||||
(1) Restructuring charges - Americas | 1.3 | — | |||||||
(1) Inventory adjustment relating to exit activities - EMEA - (South Africa joint venture) | — | 2.1 | |||||||
(1) Restructuring and other exit charges - EMEA | 4.0 | 5.5 | |||||||
(1) Restructuring charges - Asia | 0.2 | 0.7 | |||||||
(2) Impairment of goodwill and indefinite-lived intangibles - Americas | — | 9.3 | |||||||
(2) Impairment of goodwill and indefinite-lived intangibles - EMEA | — | 4.7 | |||||||
(3) Competition investigations and related legal charges - EMEA | — | 23.7 | |||||||
(4) ERP system implementation and other - Americas | 3.3 | 9.4 | |||||||
(5) Deferred purchase consideration - Americas | — | (1.9 | ) | ||||||
(6) Acquisition activity expense - Americas | 0.3 | 0.3 | |||||||
(6) Acquisition activity expense - EMEA | 0.6 | 0.4 | |||||||
Total Non-GAAP adjustments | $ | 13.1 | $ | 55.1 |
EMEA - Europe, Middle East and Africa |
Summary of Earnings (Unaudited)
(In millions, except share and per share data)
Quarter ended | |||||||
March 31, 2018 | March 31, 2017 | ||||||
Net sales | $ | 683.0 | $ | 626.8 | |||
Gross profit | 167.0 | 167.1 | |||||
Operating expenses | 98.6 | 92.4 | |||||
Restructuring charges and other exit charges | 1.1 | 2.1 | |||||
Impairment of goodwill and indefinite-lived intangibles | — | 14.0 | |||||
Legal proceedings charge | — | 6.7 | |||||
Operating earnings | 67.3 | 51.9 | |||||
Earnings before income taxes | 59.7 | 45.1 | |||||
Income tax expense | 5.6 | 11.4 | |||||
Net earnings attributable to EnerSys stockholders | $ | 54.0 | $ | 33.8 | |||
Net reported earnings per common share attributable to EnerSys stockholders: | |||||||
Basic | $ | 1.29 | $ | 0.78 | |||
Diluted | $ | 1.27 | $ | 0.76 | |||
Dividends per common share | $ | 0.175 | $ | 0.175 | |||
Weighted-average number of common shares used in reported earnings per share calculations: | |||||||
Basic | 41,934,187 | 43,430,911 | |||||
Diluted | 42,441,647 | 44,221,143 | |||||
Twelve months ended | |||||||
March 31, 2018 | March 31, 2017 | ||||||
Net sales | $ | 2,581.8 | $ | 2,367.1 | |||
Gross profit | 656.9 | 650.6 | |||||
Operating expenses | 382.1 | 369.9 | |||||
Restructuring charges and other exit charges | 5.5 | 7.1 | |||||
Impairment of goodwill and indefinite-lived intangibles | — | 14.0 | |||||
Legal proceedings charge | — | 23.7 | |||||
Operating earnings | 269.3 | 235.9 | |||||
Earnings before income taxes | 238.3 | 212.7 | |||||
Income tax expense | 118.5 | 54.5 | |||||
Net earnings attributable to EnerSys stockholders | $ | 119.6 | $ | 160.2 | |||
Net reported earnings per common share attributable to EnerSys stockholders: | |||||||
Basic | $ | 2.81 | $ | 3.69 | |||
Diluted | $ | 2.77 | $ | 3.64 | |||
Dividends per common share | $ | 0.70 | $ | 0.70 | |||
Weighted-average number of common shares used in reported earnings per share calculations: | |||||||
Basic | 42,612,036 | 43,389,333 | |||||
Diluted | 43,119,856 | 44,012,543 | |||||
The call, scheduled for
The call will also be Webcast on
The conference call information is:
Date: | Thursday, May 31, 2018 |
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: | 4228359 |
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: | 4228359 |
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