EnerSys Reports Second Quarter Fiscal 2016 Results
Net earnings attributable to
The Net earnings of
Excluding these highlighted items, adjusted Net earnings per diluted share for the second quarter of fiscal 2016, on a non-GAAP basis were
Net sales for the second quarter of fiscal 2016 were
The Company's operating results for its business segments for the second quarters of fiscal 2016 and 2015 are as follows:
Quarter ended |
|||||||
($ millions) |
|||||||
September 27, 2015 |
September 28, 2014 |
||||||
Net sales by segment |
|||||||
Americas |
$ |
322.5 |
$ |
333.2 |
|||
EMEA |
189.4 |
233.3 |
|||||
Asia |
57.2 |
63.4 |
|||||
Total net sales |
$ |
569.1 |
$ |
629.9 |
|||
Operating earnings |
|||||||
Americas |
$ |
49.4 |
$ |
42.9 |
|||
EMEA |
17.1 |
26.1 |
|||||
Asia |
0.1 |
4.5 |
|||||
Restructuring and other exit charges - EMEA |
(1.9) |
(1.8) |
|||||
Restructuring charges - Asia |
(0.7) |
— |
|||||
Competition investigations and related legal charges - EMEA |
(4.0) |
— |
|||||
Reversal of legal accrual, net of fees - Americas |
0.8 |
16.2 |
|||||
ERP system implementation - Americas |
(1.0) |
(0.7) |
|||||
Stock-based compensation of senior executives (Americas $3.7, EMEA $2.7, Asia $0.7) |
— |
(7.1) |
|||||
Acquisition activity expense - Americas |
— |
(0.1) |
|||||
Acquisition activity expense - Asia |
(0.2) |
— |
|||||
Total operating earnings |
$ |
59.6 |
$ |
80.0 |
EMEA -
Net earnings for the six months of fiscal 2016 were
Net earnings for the six months of fiscal 2015 were
Adjusted Net earnings for the six months of fiscal 2016, on a non-GAAP basis, were
Net sales for the six months of fiscal 2016 were
The Company's operating results for its business segments for the six months of fiscal years 2016 and 2015 are as follows:
Six months ended |
|||||||
($ millions) |
|||||||
September 27, 2015 |
September 28, 2014 |
||||||
Net sales by segment |
|||||||
Americas |
$ |
639.5 |
$ |
664.1 |
|||
EMEA |
386.1 |
475.3 |
|||||
Asia |
105.6 |
124.6 |
|||||
Total net sales |
$ |
1,131.2 |
$ |
1,264.0 |
|||
Operating earnings |
|||||||
Americas |
$ |
95.7 |
$ |
84.4 |
|||
EMEA |
37.7 |
54.7 |
|||||
Asia |
0.1 |
8.1 |
|||||
Restructuring charges - Americas |
(0.6) |
— |
|||||
Restructuring and other exit charges - EMEA |
(2.5) |
(3.6) |
|||||
Restructuring charges - Asia |
(0.7) |
— |
|||||
Competition investigations and related legal charges - EMEA |
(4.0) |
— |
|||||
Reversal of legal accrual, net of fees - Americas |
0.8 |
16.2 |
|||||
Gain on sale of facility - Asia |
4.3 |
— |
|||||
Stock-based compensation of senior executives (Americas $3.7, EMEA $2.7, Asia $0.7) |
— |
(7.1) |
|||||
ERP system implementation - Americas |
(1.8) |
(0.7) |
|||||
Acquisition activity expense - Americas |
(0.2) |
(0.1) |
|||||
Acquisition activity expense - Asia |
(0.2) |
(0.2) |
|||||
Total operating earnings |
$ |
128.6 |
$ |
151.7 |
"Our adjusted earnings per share of
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 preliminary 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 |
|||||||||
September 27, 2015 |
September 28, 2014 |
||||||||
(in millions, except share and per share amounts) |
|||||||||
Net earnings reconciliation |
|||||||||
As reported Net earnings |
$ |
40.0 |
$ |
56.3 |
|||||
Non-GAAP adjustments, net of tax: |
|||||||||
Restructuring charges |
2.0 |
(1) |
1.4 |
(1) |
|||||
Legal proceedings charge / (reversal of legal accrual, net of fees) |
2.9 |
(2) |
(9.9) |
(2) |
|||||
Gain on disposition of equity interest in Altergy |
— |
(2.0) |
(2) |
||||||
ERP system implementation |
0.6 |
(3) |
0.5 |
(3) |
|||||
Stock-based compensation of senior executives |
— |
5.3 |
(4) |
||||||
Acquisition activity expense |
0.2 |
(6) |
0.1 |
(6) |
|||||
Tax benefit related to stock-based compensation of senior executives |
(1.0) |
(7) |
— |
||||||
Non-GAAP adjusted Net earnings |
$ |
44.7 |
$ |
51.7 |
|||||
Outstanding shares used in per share calculations |
|||||||||
Basic |
44,944,027 |
46,133,637 |
|||||||
Diluted |
46,005,399 |
48,537,276 |
|||||||
Non-GAAP adjusted Net earnings per share: |
|||||||||
Basic |
$ |
1.00 |
$ |
1.12 |
|||||
Diluted |
$ |
0.97 |
$ |
1.06 |
|||||
Reported Net earnings per share: |
|||||||||
Basic |
$ |
0.89 |
$ |
1.22 |
|||||
Diluted |
$ |
0.87 |
$ |
1.16 |
|||||
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 |
|||||||||||||||||
September 27, 2015 |
September 28, 2014 |
||||||||||||||||
Pre-tax |
Net of tax |
Pre-tax |
Net of tax |
||||||||||||||
($ millions) |
($ millions) |
||||||||||||||||
(1) Restructuring and other exit charges - EMEA |
$ |
1.9 |
$ |
1.3 |
$ |
1.8 |
$ |
1.4 |
|||||||||
(1) Restructuring - Asia |
0.7 |
0.7 |
— |
— |
|||||||||||||
(2) Competition investigations and related legal charges - EMEA |
4.0 |
3.4 |
— |
— |
|||||||||||||
(2) Reversal of legal accrual, net of fees - Americas |
(0.8) |
(0.5) |
(16.2) |
(9.9) |
|||||||||||||
(2) Gain on disposition of equity interest in Altergy - Americas |
— |
— |
(2.0) |
(2.0) |
|||||||||||||
(3) ERP system implementation - Americas |
1.0 |
0.6 |
0.7 |
0.5 |
|||||||||||||
(4) Stock-based compensation of senior executives - Americas |
— |
— |
3.7 |
2.8 |
|||||||||||||
(4) Stock-based compensation of senior executives - EMEA |
— |
— |
2.7 |
2.0 |
|||||||||||||
(4) Stock-based compensation of senior executives - Asia |
— |
— |
0.7 |
0.5 |
|||||||||||||
(6) Acquisition activity expense - Americas |
— |
— |
0.1 |
0.1 |
|||||||||||||
(6) Acquisition activity expense - Asia |
0.2 |
0.2 |
— |
— |
|||||||||||||
(7) Tax benefit related to stock-based compensation of senior executives |
(1.0) |
(1.0) |
— |
— |
|||||||||||||
Total Non-GAAP adjustments |
$ |
6.0 |
$ |
4.7 |
$ |
(8.5) |
$ |
(4.6) |
|||||||||
EMEA - Europe, Middle East and Africa |
Six months ended |
|||||||||
September 27, 2015 |
September 28, 2014 |
||||||||
(in millions, except share and per share amounts) |
|||||||||
Net earnings reconciliation |
|||||||||
As reported Net earnings |
$ |
88.4 |
$ |
105.5 |
|||||
Non-GAAP adjustments, net of tax: |
|||||||||
Restructuring charges |
2.9 |
(1) |
2.7 |
(1) |
|||||
Legal proceedings charge / (reversal of legal accrual, net of fees) |
2.9 |
(2) |
(9.9) |
(2) |
|||||
Gain on disposition of equity interest in Altergy |
— |
(2.0) |
(2) |
||||||
ERP system implementation |
1.1 |
(3) |
0.5 |
(3) |
|||||
Stock-based compensation of senior executives |
— |
5.3 |
(4) |
||||||
Gain on sale of facility |
(3.3) |
(5) |
— |
||||||
Acquisition activity expense |
0.4 |
(6) |
0.3 |
(6) |
|||||
Tax benefit related to stock-based compensation of senior executives |
(1.0) |
(7) |
— |
||||||
Non-GAAP adjusted Net earnings |
$ |
91.4 |
$ |
102.4 |
|||||
Outstanding shares used in per share calculations |
|||||||||
Basic |
44,588,971 |
46,516,470 |
|||||||
Diluted |
46,380,887 |
49,131,757 |
|||||||
Non-GAAP adjusted Net earnings per share: |
|||||||||
Basic |
$ |
2.05 |
$ |
2.20 |
|||||
Diluted |
$ |
1.97 |
$ |
2.08 |
|||||
Reported Net earnings per share: |
|||||||||
Basic |
$ |
1.98 |
$ |
2.27 |
|||||
Diluted |
$ |
1.91 |
$ |
2.15 |
|||||
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 |
||||||||||||||||
September 27, 2015 |
September 28, 2014 |
|||||||||||||||
Pre-tax |
Net of tax |
Pre-tax |
Net of tax |
|||||||||||||
($ millions) |
($ millions) |
|||||||||||||||
(1) Restructuring - Americas |
$ |
0.6 |
$ |
0.4 |
$ |
— |
$ |
— |
||||||||
(1) Restructuring and other exit charges - EMEA |
2.5 |
1.8 |
3.6 |
2.7 |
||||||||||||
(1) Restructuring - Asia |
0.7 |
0.7 |
— |
— |
||||||||||||
(2) Competition investigations and related legal charges - EMEA |
4.0 |
3.4 |
— |
— |
||||||||||||
(2) Reversal of legal accrual, net of fees - Americas |
(0.8) |
(0.5) |
(16.2) |
(9.9) |
||||||||||||
(2) Gain on disposition of equity interest in Altergy - Americas |
— |
— |
(2.0) |
(2.0) |
||||||||||||
(3) ERP system implementation - Americas |
1.8 |
1.1 |
0.7 |
0.5 |
||||||||||||
(4) Stock-based compensation of senior executives - Americas |
— |
— |
3.7 |
2.8 |
||||||||||||
(4) Stock-based compensation of senior executives - EMEA |
— |
— |
2.7 |
2.0 |
||||||||||||
(4) Stock-based compensation of senior executives - Asia |
— |
— |
0.7 |
0.5 |
||||||||||||
(5) Gain on sale of facility - Asia |
(4.3) |
(3.3) |
— |
— |
||||||||||||
(6) Acquisition activity expense - Americas |
0.2 |
0.2 |
0.1 |
0.1 |
||||||||||||
(6) Acquisition activity expense - Asia |
0.2 |
0.2 |
0.2 |
0.2 |
||||||||||||
(7) Tax benefit related to stock-based compensation of senior executives |
(1.0) |
(1.0) |
— |
— |
||||||||||||
Total Non-GAAP adjustments |
$ |
3.9 |
$ |
3.0 |
$ |
(6.5) |
$ |
(3.1) |
EMEA - Europe, Middle East and Africa |
Summary of Earnings (Unaudited) |
|||||||
(In millions, except share and per share data) |
|||||||
Quarter ended |
|||||||
September 27, 2015 |
September 28, 2014 |
||||||
Net sales |
$ |
569.1 |
$ |
629.9 |
|||
Gross profit |
155.0 |
162.5 |
|||||
Operating expenses |
89.6 |
96.9 |
|||||
Restructuring charges |
2.6 |
1.8 |
|||||
Legal accrual / (reversal of legal accrual, net of fees) |
3.2 |
(16.2) |
|||||
Operating earnings |
59.6 |
80.0 |
|||||
Earnings before income taxes |
53.8 |
79.1 |
|||||
Net earnings attributable to EnerSys stockholders |
$ |
40.0 |
$ |
56.3 |
|||
Net earnings per common share attributable to EnerSys stockholders: |
|||||||
Basic |
$ |
0.89 |
$ |
1.22 |
|||
Diluted |
$ |
0.87 |
$ |
1.16 |
|||
Dividends per common share |
$ |
0.175 |
$ |
0.175 |
|||
Weighted-average number of common shares used in per share calculations: |
|||||||
Basic |
44,944,027 |
46,133,637 |
|||||
Diluted |
46,005,399 |
48,537,276 |
Six months ended |
|||||||
September 27, 2015 |
September 28, 2014 |
||||||
Net sales |
$ |
1,131.2 |
$ |
1,264.0 |
|||
Gross profit |
305.4 |
325.1 |
|||||
Operating expenses |
174.1 |
186.0 |
|||||
Restructuring charges |
3.8 |
3.6 |
|||||
Legal accrual / (reversal of legal accrual, net of fees) |
3.2 |
(16.2) |
|||||
Gain on sale of facility |
(4.3) |
— |
|||||
Operating earnings |
128.6 |
151.7 |
|||||
Earnings before income taxes |
115.8 |
144.9 |
|||||
Net earnings attributable to EnerSys stockholders |
$ |
88.4 |
$ |
105.5 |
|||
Net earnings per common share attributable to EnerSys stockholders: |
|||||||
Basic |
$ |
1.98 |
$ |
2.27 |
|||
Diluted |
$ |
1.91 |
$ |
2.15 |
|||
Dividends per common share |
$ |
0.35 |
$ |
0.35 |
|||
Weighted-average number of common shares used in per share calculations: |
|||||||
Basic |
44,588,971 |
46,516,470 |
|||||
Diluted |
46,380,887 |
49,131,757 |
The call, scheduled for
The call will also be Webcast on
The conference call information is:
Date: |
Wednesday, November 4, 2015 |
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: |
21398899 |
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: |
21398899 |
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
Although
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/enersys-reports-second-quarter-fiscal-2016-results-300170092.html
SOURCE