READING, Pa., Feb. 4, 2015 /PRNewswire/ -- EnerSys (NYSE:
ENS) the global leader in stored energy solutions for industrial
applications, announced today results for its third quarter of
fiscal 2015, which ended on December 28,
2014.
Net earnings attributable to EnerSys stockholders ("Net
earnings") for the third quarter of fiscal 2015 were $49.2 million, or $1.04 per diluted share, including an unfavorable
highlighted net of tax impact of $0.05 per share from charges of $1.9 million for restructuring and other exit
costs, $0.4 million for ERP system
implementation and $0.1 million for
fees related to acquisition activities.
The Net earnings of $1.04 per
diluted share compares to Net earnings per diluted share of
$1.10 for the third quarter of fiscal
2014, which included a favorable highlighted net of tax charges of
$0.03 per share from a net tax credit
of $22.1 million from a previously
unrecognized tax asset offset by a charge of $11.3 million for restructuring plans, impairment
of goodwill (net) of $2.6 million,
write-off of other non-operating assets and other miscellaneous
charges of $6.3 million and
$0.4 million for fees related to
acquisition activities.
Excluding these highlighted items, adjusted Net earnings per
diluted share for the third quarter of fiscal 2015, on a non-GAAP
basis, were $1.09, which exceeds the
guidance of $1.04 to $1.08 per
diluted share given by the Company on November 5, 2014. These earnings compare to the
prior year third quarter adjusted Net earnings of $1.07 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.
Net sales for the third quarter of fiscal 2015 were $611.6 million, a 5% decrease from the prior year
third quarter net sales of $643.1
million primarily due to a 6% decrease due to foreign
currency translation impact and a 2% decrease in organic volume
partially offset by a 2% increase due to acquisitions and a 1%
increase due to pricing. Sequential quarterly sales decreased 3%
from the second quarter of fiscal 2015 net sales of $629.9 million primarily due to foreign currency
translation impact.
The Company's operating results for its business segments for
the third quarters of fiscal 2015 and 2014 are as follows:
|
Quarter
ended
|
|
($
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 - Europe, the
Middle East and Africa
Net earnings for the nine months of fiscal 2015 were
$154.7 million, or $3.19 per diluted share, including a favorable
net of tax impact of $0.02 per share
from a legal accrual reversal, net of professional fees of
$9.9 million and gain of $2.0 million in connection with the disposition
of our equity interest in Altergy, pursuant to our previously
announced legal settlement, offset by charges of $4.6 million for restructuring and other exit
costs, $5.3 million for stock-based
compensation of senior executives, $0.9
million for ERP system implementation and $0.4 million for fees related to acquisition
activities.
Net earnings for the nine months of fiscal 2014 were
$137.5 million, or $2.77 per diluted share, including an unfavorable
net of tax impact of $0.01 per share
from a charge of $12.4 million for
restructuring plans, write-off of goodwill and other non-operating
assets of $8.9 million and
$1.2 million for fees related to
acquisition activities partially offset by a net tax credit for
$22.1 million.
Adjusted net earnings for the nine months of fiscal 2015, on a
non-GAAP basis, were $3.17 per
diluted share. This compares to the prior year nine months adjusted
net earnings of $2.78 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.
Net sales for the nine months of fiscal 2015 were $1,875.6 million, an increase of 4% from the net
sales of $1,809.2 million in the
comparable period in fiscal 2014 primarily due to a 5% increase
from acquisitions and a 1% increase in organic volume, partially
offset by a 2% decrease due foreign currency translation
impact.
The Company's operating results for its business segments for
the nine months of fiscal years 2015 and 2014 are as follows:
|
Nine months
ended
|
|
($
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 $1.09 was an all time record for any third
quarter in our Company's history," stated John D. Craig, chairman and chief executive
officer of EnerSys. "I am extremely impressed with our European
operating earnings results which were 30% higher than last year's
third quarter and are up over 50% year to date versus the same
period last year. In addition, I am pleased we were able to
achieve a third quarter earnings per share record in spite of
incurring a year-over-year increase in commodity costs. Our fourth
quarter guidance for non-GAAP adjusted net earnings per diluted
share is $1.10 to $1.14, which
excludes an expected net charge of $0.12 per diluted share from our ongoing
restructuring programs, acquisition expenses and other highlighted
items."
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 other highlighted
charges and income items. 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 indicative of ongoing operating results;
in particular, those charges that the Company incurs as a result of
restructuring activities and those charges and credits that are not
directly related to operating unit performance, such as fees and
expenses related to acquisition and litigation activities. Because
these charges are not incurred as a result of ongoing operations or
are incurred as a result of a potential acquisition, they are not a
helpful measure of the performance of our underlying business
particularly in light of their unpredictable nature. 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
|
|
|
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
|
|
EnerSys will host a conference call to discuss the Company's
third quarter fiscal 2015 financial results and provide an overview
of the business. The call will conclude with a question and answer
session.
The call, scheduled for Thursday,
February 5, 2015 at 9:00 a.m. Eastern
Time, will be hosted by John D.
Craig, Chairman and Chief Executive Officer, and
Michael J. Schmidtlein, Senior Vice
President Finance and Chief Financial Officer.
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
12:30 p.m. on February 5, 2015 through midnight on March 7, 2015.
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 Thomas
O'Neill, Vice President and Treasurer, EnerSys, P.O. Box
14145, Reading, PA 19612-4145,
USA. Tel: 610-236-4040; Web site:
www.enersys.com.
EDITOR'S NOTE: EnerSys, the global leader in stored energy
solutions for industrial applications, manufactures and distributes
reserve power and motive power batteries, battery chargers, power
equipment, battery accessories and outdoor equipment enclosure
solutions to customers worldwide. Motive power batteries and
chargers are utilized in electric forklift trucks and other
commercial electric powered vehicles. Reserve power batteries
are used in the telecommunication and utility industries,
uninterruptible power supplies, and numerous applications requiring
stored energy solutions including medical, aerospace and defense
systems. Outdoor equipment enclosure products are utilized in
the telecommunication, cable, utility, transportation
industries and by government and defense customers. 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, 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 EnerSys expects or
anticipates will occur in the future, including statements relating
to sales growth, earnings or earnings per share growth, payment of
future cash dividends, execution of its stock buy back program, and
market share, as well as statements expressing optimism or
pessimism about future operating results or benefits from either
its cash dividend or its stock buy back programs, 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 the Company's
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 2. Management's Discussion and Analysis
of Financial Condition and Results of Operations," and
"Forward-Looking Statements," set forth in EnerSys' Quarterly
Report on Form 10-Q for the fiscal period ended September 28, 2014. No undue reliance should be
placed on any forward-looking statements.
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 EnerSys