EnerSys Reports Third Quarter Fiscal 2015 Results
Net earnings attributable to
The Net earnings of
Excluding these highlighted items, adjusted Net earnings per diluted share for the third quarter of fiscal 2015, on a non-GAAP basis, were
Net sales for the third quarter of fiscal 2015 were
The Company's operating results for its business segments for the third quarters of fiscal 2015 and 2014 are as follows:
Quarter ended |
|||||||
($ millions) |
|||||||
December 28, 2014 |
December 29, 2013 |
||||||
Net sales by segment |
|||||||
Americas |
$ |
314.3 |
$ |
327.0 |
|||
EMEA |
242.3 |
251.3 |
|||||
Asia |
55.0 |
64.8 |
|||||
Total net sales |
$ |
611.6 |
$ |
643.1 |
|||
Operating earnings |
|||||||
Americas |
$ |
41.7 |
$ |
48.9 |
|||
EMEA |
27.8 |
21.4 |
|||||
Asia |
2.4 |
7.2 |
|||||
Restructuring and other exit charges - EMEA |
(0.5) |
(12.8) |
|||||
Restructuring charges - Asia |
(1.9) |
(0.2) |
|||||
ERP system implementation - Americas |
(0.7) |
— |
|||||
Goodwill impairment charge - Asia |
— |
(5.2) |
|||||
Acquisition activity expense - Americas |
(0.1) |
(0.4) |
|||||
Total operating earnings |
$ |
68.7 |
$ |
58.9 |
EMEA -
Net earnings for the nine months of fiscal 2015 were
Net earnings for the nine months of fiscal 2014 were
Adjusted net earnings for the nine months of fiscal 2015, on a non-GAAP basis, were
Net sales for the nine months of fiscal 2015 were
The Company's operating results for its business segments for the nine months of fiscal years 2015 and 2014 are as follows:
Nine months ended |
|||||||
($ millions) |
|||||||
December 28, 2014 |
December 29, 2013 |
||||||
Net sales by segment |
|||||||
Americas |
$ |
978.4 |
$ |
930.3 |
|||
EMEA |
717.6 |
705.6 |
|||||
Asia |
179.6 |
173.3 |
|||||
Total net sales |
$ |
1,875.6 |
$ |
1,809.2 |
|||
Operating earnings |
|||||||
Americas |
$ |
126.1 |
$ |
134.5 |
|||
EMEA |
82.5 |
52.7 |
|||||
Asia |
10.5 |
16.5 |
|||||
Restructuring and other exit charges - EMEA |
(4.1) |
(14.3) |
|||||
Restructuring charges - Asia |
(1.9) |
(0.2) |
|||||
Reversal of legal accrual, net of fees - Americas |
16.2 |
— |
|||||
Stock-based compensation of senior executives (Americas $3.7, EMEA $2.7, Asia $0.7) |
(7.1) |
— |
|||||
ERP system implementation - Americas |
(1.4) |
— |
|||||
Goodwill impairment charge - Asia |
— |
(5.2) |
|||||
Acquisition activity expense - Americas |
(0.2) |
(1.1) |
|||||
Acquisition activity expense - Asia |
(0.2) |
(0.4) |
|||||
Total operating earnings |
$ |
220.4 |
$ |
182.5 |
"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 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 |
|||||||||
December 28, 2014 |
December 29, 2013 |
||||||||
(in millions, except share and per share amounts) |
|||||||||
Net earnings reconciliation |
|||||||||
As reported net earnings |
$ |
49.2 |
$ |
55.3 |
|||||
Non-GAAP adjustments, net of tax: |
|||||||||
Restructuring and other exit charges - EMEA |
0.5 |
(1) |
11.2 |
(1) |
|||||
Restructuring charge - Asia |
1.4 |
(1) |
0.1 |
(1) |
|||||
ERP system implementation - Americas |
0.4 |
(4) |
— |
||||||
Goodwill impairment charge - Asia |
— |
2.6 |
(5) |
||||||
Write-off of non-operating assets |
— |
6.3 |
(6) |
||||||
Acquisition activity expense - Americas |
0.1 |
(7) |
0.4 |
(7) |
|||||
Net tax benefit |
— |
(22.1) |
(8) |
||||||
Non-GAAP adjusted net earnings |
$ |
51.6 |
$ |
53.8 |
|||||
Weighted-average number of common shares used in per share calculations: |
|||||||||
Basic |
45,188,942 |
47,351,750 |
|||||||
Diluted |
47,368,173 |
50,214,782 |
|||||||
Non-GAAP adjusted net earnings per share: |
|||||||||
Basic |
$ |
1.14 |
$ |
1.14 |
|||||
Diluted |
$ |
1.09 |
$ |
1.07 |
|||||
Reported net earnings per share: |
|||||||||
Basic |
$ |
1.09 |
$ |
1.17 |
|||||
Diluted |
$ |
1.04 |
$ |
1.10 |
|||||
Dividends per common share |
$ |
0.175 |
$ |
0.125 |
Nine months ended |
|||||||||
December 28, 2014 |
December 29, 2013 |
||||||||
(in millions, except share and per share amounts) |
|||||||||
Net earnings reconciliation |
|||||||||
As reported net earnings |
$ |
154.7 |
$ |
137.5 |
|||||
Non-GAAP adjustments, net of tax: |
|||||||||
Restructuring and other exit charges - EMEA |
3.2 |
(1) |
12.3 |
(1) |
|||||
Restructuring charges - Asia |
1.4 |
(1) |
0.1 |
(1) |
|||||
Reversal of legal accrual, net of fees - Americas |
(9.9) |
(2) |
— |
||||||
Gain on disposition of equity interest in Altergy - Americas |
(2.0) |
(2) |
— |
||||||
Stock-based compensation of senior executives (Americas $2.8, EMEA $2.0, Asia $0.5) |
5.3 |
(3) |
— |
||||||
ERP system implementation - Americas |
0.9 |
(4) |
— |
||||||
Goodwill impairment charge - Asia |
— |
2.6 |
(5) |
||||||
Write-off of non-operating assets |
— |
6.3 |
(6) |
||||||
Acquisition activity expense - Americas |
0.2 |
(7) |
0.9 |
(7) |
|||||
Acquisition activity expense - Asia |
0.2 |
(7) |
0.3 |
(7) |
|||||
Net tax benefit |
— |
(22.1) |
(8) |
||||||
Non-GAAP adjusted net earnings |
$ |
154.0 |
$ |
137.9 |
|||||
Weighted-average number of common shares used in per share calculations: |
|||||||||
Basic |
46,073,961 |
47,598,076 |
|||||||
Diluted |
48,543,896 |
49,641,848 |
|||||||
Non-GAAP adjusted net earnings per share: |
|||||||||
Basic |
$ |
3.34 |
$ |
2.90 |
|||||
Diluted |
$ |
3.17 |
$ |
2.78 |
|||||
Reported net earnings per share: |
|||||||||
Basic |
$ |
3.36 |
$ |
2.89 |
|||||
Diluted |
$ |
3.19 |
$ |
2.77 |
|||||
Dividends per common share |
$ |
0.525 |
$ |
0.375 |
(1) |
Resulting from pre-tax restructuring and other exit charges in EMEA of $0.5 million and $1.9 million in Asia, respectively, in the third quarter of fiscal 2015 and $12.8 million in EMEA and $0.2 million in Asia, respectively, in the third quarter of fiscal 2014 and $4.1 million in EMEA and $1.9 million in Asia for the nine months of fiscal 2015 and $14.3 million in EMEA and $0.2 million in Asia for the nine months of fiscal 2014. |
|
(2) |
Resulting from pre-tax reversal of legal accrual, net of fees of $16.2 million relating to Altergy and gain on disposition of our equity interest in Altergy of $2.0 million in the nine months of fiscal 2015. |
|
(3) |
Resulting from pre-tax stock-based compensation of senior executives - Americas $3.7 million, EMEA $2.7 million and Asia $0.7 million in the nine months of fiscal 2015. |
|
(4) |
Resulting from pre-tax implementation costs of new ERP system in Americas of $0.7 million in the third quarter of fiscal 2015 and $1.4 million in the nine months of fiscal 2015. |
|
(5) |
Resulting from goodwill impairment charge net of share attributable to noncontrolling interest, in Asia in the prior year periods. |
|
(6) |
Resulting from writing off non-operating assets of $5.0 million and other miscellaneous charges relating to a previous acquisition of $1.5 million in the prior year periods. |
|
(7)
|
Resulting from pre-tax charges for acquisition activity expense of $0.1 million in Americas for the third quarter of fiscal 2015 and $0.4 million in Americas for the third quarter of fiscal 2014. Pre-tax charges for acquisition activity expense for the nine months of fiscal 2015 was $0.2 million in Americas and $0.2 million in Asia compared to $1.1 million in Americas and $0.4 million in Asia for the nine months of fiscal 2014. |
|
(8) |
Resulting from changes to certain valuation reserves in Europe and Asia in the prior year periods. |
Summary of Earnings (Unaudited) (In millions, except share and per share data)
|
|||||||
Quarter ended |
|||||||
December 28, 2014 |
December 29, 2013 |
||||||
Net sales |
$ |
611.6 |
$ |
643.1 |
|||
Gross profit |
157.3 |
167.2 |
|||||
Operating expenses |
86.2 |
90.1 |
|||||
Restructuring and other exit charges |
2.4 |
13.0 |
|||||
Goodwill impairment charge |
— |
5.2 |
|||||
Operating earnings |
68.7 |
58.9 |
|||||
Earnings before income taxes |
64.6 |
46.1 |
|||||
Net earnings attributable to EnerSys stockholders |
$ |
49.2 |
$ |
55.3 |
|||
Net earnings per common share attributable to EnerSys stockholders: |
|||||||
Basic |
$ |
1.09 |
$ |
1.17 |
|||
Diluted |
$ |
1.04 |
$ |
1.10 |
|||
Dividends per common share |
$ |
0.175 |
$ |
0.125 |
|||
Weighted-average number of common shares used in per share calculations: |
|||||||
Basic |
45,188,942 |
47,351,750 |
|||||
Diluted |
47,368,173 |
50,214,782 |
Nine months ended |
|||||||
December 28, 2014 |
December 29, 2013 |
||||||
Net sales |
$ |
1,875.6 |
$ |
1,809.2 |
|||
Gross profit |
482.4 |
451.6 |
|||||
Operating expenses |
272.2 |
249.4 |
|||||
Restructuring and other exit charges |
6.0 |
14.5 |
|||||
Reversal of legal accrual, net of fees |
(16.2) |
— |
|||||
Goodwill impairment charge |
— |
5.2 |
|||||
Operating earnings |
220.4 |
182.5 |
|||||
Earnings before income taxes |
209.5 |
158.5 |
|||||
Net earnings attributable to EnerSys stockholders |
$ |
154.7 |
$ |
137.5 |
|||
Net earnings per common share attributable to EnerSys stockholders: |
|||||||
Basic |
$ |
3.36 |
$ |
2.89 |
|||
Diluted |
$ |
3.19 |
$ |
2.77 |
|||
Dividends per common share |
$ |
0.525 |
$ |
0.375 |
|||
Weighted-average number of common shares used in per share calculations: |
|||||||
Basic |
46,073,961 |
47,598,076 |
|||||
Diluted |
48,543,896 |
49,641,848 |
The call, scheduled for
A live webcast of the conference call will be available on the Company's website at http://www.enersys.com under the "Investor Relations" link. Presentation materials to be used in conjunction with the conference call will become available under the aforementioned link shortly following the issuance of this press release.
The conference call information is:
Date: |
Thursday, February 5, 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: |
52031619 |
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: |
52031619 |
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-third-quarter-fiscal-2015-results-300031048.html
SOURCE