Enersys Reports Fourth Quarter and Full Year Fiscal 2022 Results
$907 million record quarterly net sales +11.5% YOY- Backlog grows to
$1.3B on robust market demand across all business segments - Q4'22 price outpaced cost, driving sequential earnings improvement despite new macro headwinds
- Returned
$186 million to stockholders through share buybacks and dividends in FY’22 - Launched first comprehensive sustainability report in
April 2022
Key Financial Results and Metrics | Fourth Quarter ended | Full Year ended | |||||||||||||||||||||
In millions, except per share amounts | 2022 |
2021 |
Change | 2022 |
2021 |
Change | |||||||||||||||||
$ | 907.0 | $ | 813.5 | 11.5 | % | $ | 3,357.3 | $ | 2,977.9 | 12.7 | % | ||||||||||||
Diluted EPS (GAAP) | $ | 0.67 | $ | 0.78 | $ | (0.11 | ) | $ | 3.36 | $ | 3.32 | $ | 0.04 | ||||||||||
Adjusted Diluted EPS (non-GAAP) | $ | 1.20 | $ | 1.30 | $ | (0.10 | ) | $ | 4.47 | $ | 4.49 | $ | (0.02 | ) | |||||||||
Operating Earnings (GAAP) | $ | 44.5 | $ | 51.7 | $ | (7.2 | ) | $ | 206.2 | $ | 216.4 | $ | (10.2 | ) | |||||||||
Adjusted Operating Earnings (Non-GAAP)(1) | $ | 66.8 | $ | 78.4 | $ | (11.6 | ) | $ | 263.6 | $ | 284.2 | $ | (20.6 | ) | |||||||||
EBITDA (Non-GAAP)(2) | $ | 71.8 | $ | 76.2 | $ | (4.4 | ) | $ | 307.5 | $ | 302.9 | $ | 4.6 | ||||||||||
Adjusted EBITDA (Non-GAAP)(2) | $ | 87.8 | $ | 96.9 | $ | (9.1 | ) | $ | 339.5 | $ | 345.4 | $ | (5.9 | ) | |||||||||
Share Repurchases | $ | 41.8 | $ | — | $ | 41.8 | $ | 156.4 | $ | — | $ | 156.4 | |||||||||||
Dividend per share | $ | 0.175 | $ | 0.175 | $ | — | $ | 0.70 | $ | 0.70 | $ | — | |||||||||||
Total Capital Returned to Stockholders | $ | 49.0 | $ | 7.5 | $ | 41.50 | $ | 186.0 | $ | 30.0 | $ | 156.0 |
(1) Operating Earnings adjusted for charges that the Company incurs as a result of restructuring activities, impairment of goodwill and indefinite-lived intangibles and other assets, acquisition activities and those charges and credits that are not directly related to operating unit performance. A reconciliation of operating earnings to Non-GAAP adjusted earnings are provided in tables under the section titled Business Segment Operating Results.
(2) Net Earnings are adjusted for depreciation, amortization, interest and income taxes to arrive at Non-GAAP EBITDA. Non-GAAP Adjusted EBITDA is further adjusted for certain charges such as restructuring activities, impairment of goodwill and indefinite-lived intangibles and other assets, acquisition activities and other charges and credits as discussed under Reconciliations of GAAP to Non-GAAP Financial Measures.
Message from the CEO |
The March quarter marked a strong finish to a challenging year. Demand across all segments continued to surge, with fourth quarter net sales of
We achieved several key milestones in fiscal 2022, including the launch and UL safety listing of our high-performance NexSys® lithium iON batteries which feature an integrated Battery Management System (BMS) that performs auto-diagnosis, voltage limitation, and communication of performance data. We also exceeded our capacity goal for our Thin Plate Pure Lead (TPPL) batteries. Customer demand for this proprietary technology across all of our business segments continues to outpace our ability to supply. We expect to benefit further from the strength of this demand as we make progress toward increasing capacity by an additional
As we enter fiscal 2023, we expect to face ongoing challenges with continued supply chain constraints and inflation exacerbated by the senseless conflict between
Summary of Results
Fourth Quarter 2022
Net sales for the fourth quarter of fiscal 2022 were
Net earnings attributable to
Net earnings for the fourth quarter of fiscal 2021 was
Excluding these highlighted items, adjusted Net earnings per diluted share for the fourth quarter of fiscal 2022, on a non-GAAP basis, were
Summary of Results
Fiscal Year 2022
Net sales for the twelve months of fiscal 2022 were
Net earnings for the twelve months of fiscal 2022 was
Net earnings for the twelve months of fiscal 2021 was
Adjusted Net earnings per diluted share for the twelve months of fiscal 2022, on a non-GAAP basis, were
First Quarter 2023 Outlook
Macro headwinds from supply chain constraints, increasing interest rates and increased inflationary challenges have only been fueled by geopolitical events of the past quarter, and we anticipate these will not dramatically subside this calendar year. We will continue to take necessary pricing actions and expect to see ongoing mix benefits of our product redesign and re-sourcing efforts continuing throughout the year. We remain well-positioned to capitalize heavily on robust market demand in exciting end-markets, our strong order book, and price stickiness once the current macro environment normalizes, and we are tracking to our strategic plan. For the first quarter of fiscal 2023, we expect adjusted diluted earnings per share in the range of
Conference Call and Webcast Details
The Company will host a conference call to discuss its fourth quarter and full year 2022 financial results at
The conference call can be accessed by dialing 877-359-9508 (domestic) or +1-224-357-2393 (international); Passcode: 8598259. The replay will be available from
About
Sustainability
Sustainability at
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
CONTACT
Investor Relations and Financial Media
610-236-4040
E-mail: investorrelations@enersys.com
Public Relations Manager
Harris, Baio & McCullough
215-440-9800
E-mail: melissa@hbmadv.com
Consolidated Condensed Statements of Income (Unaudited)
(In millions, except share and per share data)
Quarter ended | Twelve months ended | ||||||||||||||
Net sales | $ | 907.0 | $ | 813.5 | $ | 3,357.3 | $ | 2,977.9 | |||||||
Gross profit | 194.6 | 197.3 | 750.0 | 739.1 | |||||||||||
Operating expenses | 140.3 | 124.9 | 520.8 | 482.3 | |||||||||||
Restructuring and other exit charges | 5.6 | 20.7 | 18.8 | 40.4 | |||||||||||
Impairment of indefinite-lived intangibles | 1.2 | — | 1.2 | — | |||||||||||
Loss on assets held for sale | 3.0 | — | 3.0 | — | |||||||||||
Operating earnings | 44.5 | 51.7 | 206.2 | 216.4 | |||||||||||
Earnings before income taxes | 38.9 | 43.2 | 173.9 | 170.1 | |||||||||||
Income tax expense | 10.8 | 9.4 | 30.0 | 26.8 | |||||||||||
Net earnings attributable to |
$ | 28.1 | $ | 33.8 | $ | 143.9 | $ | 143.3 | |||||||
Net reported earnings per common share attributable to |
|||||||||||||||
Basic | $ | 0.68 | $ | 0.79 | $ | 3.42 | $ | 3.37 | |||||||
Diluted | $ | 0.67 | $ | 0.78 | $ | 3.36 | $ | 3.32 | |||||||
Dividends per common share | $ | 0.175 | $ | 0.175 | $ | 0.70 | $ | 0.70 | |||||||
Weighted-average number of common shares used in reported earnings per share calculations: | |||||||||||||||
Basic | 41,243,629 | 42,686,413 | 42,106,337 | 42,548,449 | |||||||||||
Diluted | 41,843,270 | 43,587,698 | 42,783,373 | 43,224,403 |
Consolidated Balance Sheets
(In Thousands, Except Share and Per Share Data)
2022 | 2021 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 402,488 | $ | 451,808 | ||||
Accounts receivable, net of allowance for doubtful accounts (2022–$12,219; 2021–$12,992) |
719,434 | 603,581 | ||||||
Inventories, net | 715,712 | 518,247 | ||||||
Prepaid and other current assets | 155,559 | 117,681 | ||||||
Total current assets | 1,993,193 | 1,691,317 | ||||||
Property, plant, and equipment, net | 503,264 | 497,056 | ||||||
700,640 | 705,593 | |||||||
Other intangible assets, net | 396,202 | 430,898 | ||||||
Deferred taxes | 60,479 | 65,212 | ||||||
Other assets | 82,868 | 72,721 | ||||||
Total assets | $ | 3,736,646 | $ | 3,462,797 | ||||
Liabilities and Equity | ||||||||
Current liabilities: | ||||||||
Short-term debt | $ | 55,084 | $ | 34,153 | ||||
Current portion of finance leases | 185 | 236 | ||||||
Accounts payable | 393,096 | 323,876 | ||||||
Accrued expenses | 289,765 | 318,723 | ||||||
Total current liabilities | 738,130 | 676,988 | ||||||
Long-term debt, net of unamortized debt issuance costs | 1,243,002 | 969,618 | ||||||
Finance leases | 231 | 435 | ||||||
Deferred taxes | 78,228 | 76,412 | ||||||
Other liabilities | 183,780 | 195,768 | ||||||
Total liabilities | 2,243,371 | 1,919,221 | ||||||
Commitments and contingencies | ||||||||
Equity: | ||||||||
Preferred Stock, |
— | — | ||||||
Common Stock, |
557 | 555 | ||||||
Additional paid-in capital | 571,464 | 554,168 | ||||||
(719,119 | ) | (563,481 | ) | |||||
Retained earnings | 1,783,586 | 1,669,751 | ||||||
Contra equity - indemnification receivable | (3,620 | ) | (5,355 | ) | ||||
Accumulated other comprehensive loss | (143,495 | ) | (115,883 | ) | ||||
Total |
1,489,373 | 1,539,755 | ||||||
Nonredeemable noncontrolling interests | 3,902 | 3,821 | ||||||
Total equity | 1,493,275 | 1,543,576 | ||||||
Total liabilities and equity | $ | 3,736,646 | $ | 3,462,797 |
Consolidated Statements of Cash Flows
(In Thousands)
Fiscal year ended |
||||||||||||
2022 | 2021 | 2020 | ||||||||||
Cash flows from operating activities | ||||||||||||
Net earnings | $ | 143,911 | $ | 143,374 | $ | 137,116 | ||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 95,878 | 94,082 | 87,344 | |||||||||
Write-off of assets relating to restructuring and other exit charges | 6,503 | 10,231 | 10,986 | |||||||||
Loss on assets held for sale | 2,973 | — | — | |||||||||
Impairment of goodwill | — | — | 39,713 | |||||||||
Impairment of indefinite-lived intangibles | 1,178 | — | 4,549 | |||||||||
Derivatives not designated in hedging relationships: | ||||||||||||
Net losses (gains) | 157 | (430 | ) | 178 | ||||||||
Cash proceeds (settlements) | 255 | 905 | (793 | ) | ||||||||
Provision for doubtful accounts | 2,621 | 178 | 4,821 | |||||||||
Deferred income taxes | 1,115 | (8,994 | ) | (16,486 | ) | |||||||
Non-cash interest expense | 2,107 | 2,072 | 1,673 | |||||||||
Stock-based compensation | 24,289 | 19,817 | 20,780 | |||||||||
Gain on disposal of property, plant, and equipment | (490 | ) | (3,883 | ) | (86 | ) | ||||||
Changes in assets and liabilities, net of effects of acquisitions: | ||||||||||||
Accounts receivable | (128,956 | ) | 8,713 | 26,486 | ||||||||
Inventories | (212,839 | ) | 24,176 | (9,379 | ) | |||||||
Prepaid and other current assets | (32,044 | ) | 27,292 | (17,508 | ) | |||||||
Other assets | 270 | 424 | 3,089 | |||||||||
Accounts payable | 65,316 | 20,797 | (33,490 | ) | ||||||||
Accrued expenses | (38,578 | ) | 32,357 | 7,055 | ||||||||
Other liabilities | 749 | (12,736 | ) | (12,650 | ) | |||||||
Net cash (used in) provided by operating activities | (65,585 | ) | 358,375 | 253,398 | ||||||||
Cash flows from investing activities | ||||||||||||
Capital expenditures | (74,041 | ) | (70,020 | ) | (101,425 | ) | ||||||
Purchase of businesses | — | — | (176,548 | ) | ||||||||
Proceeds from disposal of facility | 3,268 | — | 720 | |||||||||
Insurance proceeds relating to property, plant and equipment | — | 4,800 | 403 | |||||||||
Proceeds from disposal of property, plant, and equipment | 1,540 | 176 | 2,031 | |||||||||
Net cash used in investing activities | (69,233 | ) | (65,044 | ) | (274,819 | ) | ||||||
Cash flows from financing activities | ||||||||||||
Net borrowings (repayments) on short-term debt | 20,556 | (15,934 | ) | (5,325 | ) | |||||||
Proceeds from Second Amended 2017 Revolver borrowings | 523,400 | 102,000 | 386,700 | |||||||||
Proceeds from 2027 Notes | — | — | 300,000 | |||||||||
Repayments of Second Amended 2017 Revolver borrowings | (88,400 | ) | (210,000 | ) | (517,700 | ) | ||||||
Repayments of Second Amended 2017 Term Loan | (161,447 | ) | (39,589 | ) | (28,138 | ) | ||||||
Debt issuance costs | (2,952 | ) | — | (4,607 | ) | |||||||
Finance lease obligations and other | 810 | 650 | 995 | |||||||||
Option proceeds, net | 1,336 | 9,114 | 1,417 | |||||||||
Payment of taxes related to net share settlement of equity awards | (9,150 | ) | (5,153 | ) | (6,393 | ) | ||||||
Purchase of treasury stock | (156,366 | ) | — | (34,561 | ) | |||||||
Dividends paid to stockholders | (29,353 | ) | (29,812 | ) | (29,705 | ) | ||||||
Net cash provided by (used in) financing activities | 98,434 | (188,724 | ) | 62,683 | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (12,936 | ) | 20,222 | (13,495 | ) | |||||||
Net (decrease) increase in cash and cash equivalents | (49,320 | ) | 124,829 | 27,767 | ||||||||
Cash and cash equivalents at beginning of year | 451,808 | 326,979 | 299,212 | |||||||||
Cash and cash equivalents at end of year | $ | 402,488 | $ | 451,808 | $ | 326,979 |
Reconciliation of GAAP to Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with
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%.
These non-GAAP disclosures have limitations as an analytical tool, should not be viewed as a substitute for operating earnings, Net earnings or net income 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 are they 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.
A reconciliation of non-GAAP adjusted operating earnings is set forth in the table below, providing a reconciliation of non-GAAP adjusted operating earnings to the Company’s reported operating results for its business segments.
Business Segment Operating Results
Quarter ended | |||||||||||||||
($ millions) | |||||||||||||||
Energy Systems | Specialty | Total | |||||||||||||
$ | 410.4 | $ | 364.9 | $ | 131.7 | $ | 907.0 | ||||||||
Operating Earnings | $ | 4.7 | $ | 29.8 | $ | 10.0 | $ | 44.5 | |||||||
Inventory adjustment relating to exit activities | 0.2 | 1.4 | — | 1.6 | |||||||||||
Restructuring and other exit charges | 1.4 | 4.2 | — | 5.6 | |||||||||||
Impairment of indefinite-lived intangibles | 0.5 | 0.7 | — | 1.2 | |||||||||||
Loss on assets held for sale | — | 3.0 | — | 3.0 | |||||||||||
Amortization of identified intangible assets from recent acquisitions | 5.8 | — | 0.5 | 6.3 | |||||||||||
Other | 3.3 | 1.0 | 0.3 | 4.6 | |||||||||||
Adjusted Operating Earnings | $ | 15.9 | $ | 40.1 | $ | 10.8 | $ | 66.8 |
Quarter ended | |||||||||||||||
($ millions) | |||||||||||||||
Energy Systems | Specialty | Total | |||||||||||||
$ | 348.8 | $ | 332.8 | $ | 131.9 | $ | 813.5 | ||||||||
Operating Earnings | $ | 3.1 | $ | 31.9 | $ | 16.7 | $ | 51.7 | |||||||
Restructuring and other exit charges | 0.5 | 20.0 | 0.2 | 20.7 | |||||||||||
Amortization of identified intangible assets from recent acquisitions | 5.5 | — | 0.5 | 6.0 | |||||||||||
Adjusted Operating Earnings | $ | 9.1 | $ | 51.9 | $ | 17.4 | $ | 78.4 |
Increase (Decrease) % from prior year quarter | Energy Systems | Specialty | Total | ||||||||
17.6 | % | 9.7 | % | (0.2 | )% | 11.5 | % | ||||
Operating Earnings | 51.4 | (6.4 | ) | (40.2 | ) | (13.9 | ) | ||||
Adjusted Operating Earnings | 74.0 | (22.7 | ) | (38.0 | ) | (14.8 | ) |
Twelve months ended | |||||||||||||||
($ millions) | |||||||||||||||
Energy Systems | Specialty | Total | |||||||||||||
$ | 1,536.6 | $ | 1,361.2 | $ | 459.5 | $ | 3,357.3 | ||||||||
Operating Earnings | $ | 15.1 | $ | 146.5 | $ | 44.6 | $ | 206.2 | |||||||
Inventory adjustment relating to exit activities | 0.2 | 2.4 | — | 2.6 | |||||||||||
Restructuring and other exit charges | 2.8 | 17.1 | (1.1 | ) | 18.8 | ||||||||||
Impairment of indefinite-lived intangibles | 0.5 | 0.7 | — | 1.2 | |||||||||||
Loss on assets held for sale | — | 3.0 | — | 3.0 | |||||||||||
Amortization of identified intangible assets from recent acquisitions | 23.6 | — | 1.8 | 25.4 | |||||||||||
Other | 5.1 | 1.0 | 0.3 | 6.4 | |||||||||||
Adjusted Operating Earnings | $ | 47.3 | $ | 170.7 | $ | 45.6 | $ | 263.6 |
Twelve months ended | |||||||||||||||
($ millions) | |||||||||||||||
Energy Systems | Specialty | Total | |||||||||||||
$ | 1,380.2 | $ | 1,163.8 | $ | 433.9 | $ | 2,977.9 | ||||||||
Operating Earnings | $ | 63.8 | $ | 106.7 | $ | 45.9 | $ | 216.4 | |||||||
Restructuring and other exit charges | 3.1 | 36.9 | 0.4 | 40.4 | |||||||||||
Amortization of identified intangible assets from recent acquisitions | 23.5 | — | 1.8 | 25.3 | |||||||||||
Acquisition activity expense | 0.2 | — | 0.1 | 0.3 | |||||||||||
Other | 1.5 | 0.3 | — | 1.8 | |||||||||||
Adjusted Operating Earnings | $ | 92.1 | $ | 143.9 | $ | 48.2 | $ | 284.2 |
Increase (Decrease) over prior year | Energy Systems | Specialty | Total | ||||||||
11.3 | % | 17.0 | % | 5.9 | % | 12.7 | % | ||||
Operating Earnings | (76.3 | ) | 37.4 | (2.7 | ) | (4.7 | ) | ||||
Adjusted Operating Earnings | (48.8 | ) | 18.8 | (5.2 | ) | (7.2 | ) |
Reconciliations of GAAP to Non-GAAP Financial Measures
(Unaudited)
The table below presents a reconciliation of Net Earnings to EBITDA and Adjusted EBITDA:
Quarter ended | Twelve months ended | ||||||||||||||
Net Earnings | $ | 28.1 | $ | 33.8 | $ | 143.9 | $ | 143.3 | |||||||
Depreciation | 15.3 | 15.8 | 62.6 | 60.9 | |||||||||||
Amortization | 8.2 | 8.1 | 33.2 | 33.4 | |||||||||||
Interest | 9.4 | 9.1 | 37.8 | 38.5 | |||||||||||
Income Taxes | 10.8 | 9.4 | 30.0 | 26.8 | |||||||||||
EBITDA | 71.8 | 76.2 | 307.5 | 302.9 | |||||||||||
Non-GAAP adjustments | 16.0 | 20.7 | 32.0 | 42.5 | |||||||||||
Adjusted EBITDA | $ | 87.8 | $ | 96.9 | $ | 339.5 | $ | 345.4 |
The following table provides the non-GAAP adjustments shown in the reconciliation above:
Quarter ended | Twelve months ended | ||||||||||||||
Inventory adjustment relating to exit activities | $ | 1.6 | $ | 0.0 | $ | 2.6 | $ | — | |||||||
Restructuring and other exit charges | 5.6 | 20.7 | 18.8 | 40.4 | |||||||||||
Impairment of indefinite-lived intangibles | 1.2 | — | 1.2 | — | |||||||||||
Loss on assets held for sale | 3.0 | — | 3.0 | — | |||||||||||
Acquisition activity expense | — | — | — | 0.3 | |||||||||||
Other | 4.6 | — | 6.4 | 1.8 | |||||||||||
Non-GAAP adjustments | $ | 16.0 | $ | 20.7 | $ | 32.0 | $ | 42.5 |
Included below is a reconciliation of non-GAAP adjusted Net earnings to reported amounts. Non-GAAP adjusted operating earnings and 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) | ||||||||
Net Earnings reconciliation | ||||||||
As reported Net Earnings | $ | 28.1 | $ | 33.8 | ||||
Non-GAAP adjustments: | ||||||||
Inventory adjustment relating to exit activities | 1.6 | (1) | — | |||||
Restructuring and other exit charges | 5.6 | (1) | 20.7 | (1) | ||||
Impairment of indefinite-lived intangibles | 1.2 | (2) | — | |||||
Loss on assets held for sale | 3.0 | (3) | — | |||||
Amortization of identified intangible assets from recent acquisitions | 6.3 | (4) | 6.0 | (4) | ||||
Other | 4.6 | (6) | — | |||||
Purchase accounting related tax | — | 2.2 | ||||||
Income tax effect of above non-GAAP adjustments | (0.3 | ) | (6.2 | ) | ||||
Non-GAAP adjusted Net Earnings | $ | 50.1 | $ | 56.5 | ||||
Outstanding shares used in per share calculations | ||||||||
Basic | 41,243,629 | 42,686,413 | ||||||
Diluted | 41,843,270 | 43,587,698 | ||||||
Non-GAAP adjusted Net Earnings per share: | ||||||||
Basic | $ | 1.21 | $ | 1.33 | ||||
Diluted | $ | 1.20 | $ | 1.30 | ||||
Reported Net Earnings (Loss) per share: | ||||||||
Basic | $ | 0.68 | $ | 0.79 | ||||
Diluted | $ | 0.67 | $ | 0.78 | ||||
Dividends per common share | $ | 0.175 | $ | 0.175 |
The following table provides the line of business allocation of the non-GAAP adjustments shown in the reconciliation above:
Quarter ended | ||||||||
($ millions) | ||||||||
Pre-tax | Pre-tax | |||||||
(1) Inventory adjustment relating to exit activities - Energy Systems | 0.2 | — | ||||||
(1) Inventory adjustment relating to exit activities - Motive | 1.4 | — | ||||||
(1) Restructuring and other exit charges - Energy Systems | 1.4 | 0.5 | ||||||
(1) Restructuring and other exit charges - |
4.2 | 20.0 | ||||||
(1) Restructuring and other exit charges - Specialty | — | 0.2 | ||||||
(2) Impairment of indefinite-lived intangibles - Energy Systems | 0.5 | — | ||||||
(2) Impairment of indefinite-lived intangibles - Motive | 0.7 | — | ||||||
(3) Loss on assets held for sale - Motive | 3.0 | — | ||||||
(4) Amortization of identified intangible assets from recent acquisitions - Energy Systems | 5.8 | 5.5 | ||||||
(4) Amortization of identified intangible assets from recent acquisitions - Specialty | 0.5 | 0.5 | ||||||
(6) Other - Energy Systems | 3.3 | — | ||||||
(6) Other - Motive | 1.0 | — | ||||||
(6) Other - Specialty | 0.3 | — | ||||||
Total Non-GAAP adjustments | $ | 22.3 | $ | 26.7 |
Twelve months ended | ||||||||
(in millions, except share and per share amounts) | ||||||||
Net Earnings reconciliation | ||||||||
As reported Net Earnings | $ | 143.9 | $ | 143.3 | ||||
Non-GAAP adjustments: | ||||||||
Inventory adjustment relating to exit activities | 2.6 | (1) | — | |||||
Restructuring and other exit charges | 18.8 | (1) | 40.4 | (1) | ||||
Impairment of indefinite-lived intangibles | 1.2 | (2) | — | |||||
Loss on assets held for sale | 3.0 | (3) | — | |||||
Amortization of identified intangible assets from recent acquisitions | 25.4 | (4) | 25.3 | (4) | ||||
Acquisition activity expense | — | 0.3 | (5) | |||||
Other | 6.4 | (6) | 1.8 | (6) | ||||
Purchase accounting related tax | — | 2.2 | ||||||
Income tax effect of above non-GAAP adjustments | (10.3 | ) | (17.3 | ) | ||||
Swiss Tax Reform | $ | — | $ | (1.9 | ) | |||
Non-GAAP adjusted Net Earnings | $ | 191.0 | $ | 194.1 | ||||
Outstanding shares used in per share calculations | ||||||||
Basic | 42,106,337 | 42,548,449 | ||||||
Diluted | 42,783,373 | 43,224,403 | ||||||
Non-GAAP adjusted Net Earnings per share: | ||||||||
Basic | $ | 4.54 | $ | 4.56 | ||||
Diluted | $ | 4.47 | $ | 4.49 | ||||
Reported Net Earnings (Loss) per share: | ||||||||
Basic | $ | 3.42 | $ | 3.37 | ||||
Diluted | $ | 3.36 | $ | 3.32 | ||||
Dividends per common share | $ | 0.70 | $ | 0.70 |
The following table provides the line of business allocation of the non-GAAP adjustments shown in the reconciliation above:
Twelve months ended | ||||||||
($ millions) | ||||||||
Pre-tax | Pre-tax | |||||||
(1) Inventory adjustment relating to exit activities - Energy Systems | 0.2 | — | ||||||
(1) Inventory adjustment relating to exit activities - |
2.4 | — | ||||||
(1) Restructuring and other exit charges - Energy Systems | 2.8 | 3.1 | ||||||
(1) Restructuring and other exit charges - |
17.1 | 36.9 | ||||||
(1) Restructuring and other exit charges - Specialty | (1.1 | ) | 0.4 | |||||
(2) Impairment of indefinite-lived intangibles - Energy Systems | 0.5 | — | ||||||
(2) Impairment of indefinite-lived intangibles - Motive | 0.7 | — | ||||||
(3) Loss on assets held for sale - Motive | 3.0 | — | ||||||
(4) Amortization of identified intangible assets from recent acquisitions - Energy Systems | 23.6 | 23.5 | ||||||
(4) Amortization of identified intangible assets from recent acquisitions - Specialty | 1.8 | 1.8 | ||||||
(5) Acquisition activity expense - Energy Systems | — | 0.2 | ||||||
(5) Acquisition activity expense - Specialty | — | 0.1 | ||||||
(6) Other - Energy Systems | 5.1 | 1.5 | ||||||
(6) Other - Motive | 1.0 | 0.3 | ||||||
(6) Other - Specialty | 0.3 | — | ||||||
Total Non-GAAP adjustments | $ | 57.4 | $ | 67.8 |
Source: EnerSys