MILWAUKEE, Oct. 29, 2015 /PRNewswire/ -- Briggs &
Stratton Corporation (NYSE:BGG) today announced financial results
for its first fiscal quarter ended September
27, 2015.
Highlights:
- First quarter fiscal 2016 consolidated net sales were
$289 million, a decrease of
$3 million or 1.1% compared to the
prior year. Net sales increased $8
million or 2.6% before currency impacts
- First quarter fiscal 2016 consolidated adjusted net loss was
$15.2 million compared to the
adjusted net loss of $9.3 million in
the first quarter of fiscal 2015
- First quarter fiscal 2016 adjusted diluted loss per share was
$0.35, compared to the adjusted
diluted loss per share of $0.21 last
year
"Our first quarter results were better than we expected, driven
by solid late season activity in the major lawn and garden markets,
especially in the U.S.," said Todd J.
Teske, Chairman, President and Chief Executive Officer. "We
believe the late season activity has resulted in more normal
channel inventories compared to the end of last season. Also, we
are encouraged by the continued profitability improvement of our
Products business through a focus on selling high-end residential
and commercial products while improving the efficiency of our
operation." Teske continued, "While these factors are encouraging,
we are cautious about the global economy and continued foreign
currency headwinds as well as continued low oil prices which
negatively impact a portion of our Job Site product sales."
Consolidated Results:
Consolidated net sales for the first quarter of fiscal 2016 were
$289 million, a decrease of
$3 million or 1.1% from the first
quarter of fiscal 2015. Net sales decreased during the quarter
primarily due to an unfavorable foreign currency impact, net of
price increases, of $10.8 million,
predominately related to the weakening of the Euro, Australian
Dollar, and Brazilian Real. Excluding currency impacts, net
sales increased by $8 million. The
increase was driven by the results of acquisitions completed during
fiscal 2015, higher shipments of small engines used on walk mowers
and increased sales of commercial lawn and garden equipment.
The first quarter of fiscal 2016 adjusted consolidated net loss was
$15.2 million or $0.35 per diluted share. The first quarter of
fiscal 2015 adjusted consolidated net loss was $9.3 million or $0.21 per diluted share. Unfavorable
foreign currencies in the first quarter of fiscal 2016 had an
unfavorable impact on net income of approximately $1.2 million or $0.03 per diluted share. Lower production in the
first quarter of fiscal 2016, as anticipated due to last year's
pre-production of inventory to support the McDonough plant closure,
also had an unfavorable impact on net loss compared to last
year.
Non-GAAP Financial Measures and Segment Reporting
This release refers to non-GAAP financial measures including
"adjusted gross profit", "adjusted segment income (loss)", and
"adjusted net income (loss)". Refer to the accompanying
financial schedules for supplemental financial data and
corresponding reconciliations of these non-GAAP financial measures
to certain GAAP financial measures.
Segment income (loss) is defined as income (loss) from
operations plus equity in earnings of unconsolidated affiliates.
The Company has included a reconciliation from consolidated segment
income (loss) to income (loss) from operations in the accompanying
Adjusted Segment Information table.
Engines Segment:
|
|
Three Months
Ended September
|
(In
Thousands)
|
|
FY2016
|
|
FY2015
|
Net Sales
|
|
$
150,083
|
|
$
153,116
|
|
|
|
|
|
Gross Profit as
Reported
|
|
$
23,777
|
|
$
27,800
|
Restructuring
Charges
|
|
464
|
|
-
|
Adjusted Gross
Profit
|
|
$
24,241
|
|
$
27,800
|
|
|
|
|
|
Gross Profit % as
Reported
|
|
15.8%
|
|
18.2%
|
Adjusted Gross Profit
%
|
|
16.2%
|
|
18.2%
|
|
|
|
|
|
Segment Loss as
Reported
|
|
$
(20,754)
|
|
$
(13,677)
|
Restructuring
Charges
|
|
1,354
|
|
-
|
Litigation
Charges
|
|
850
|
|
-
|
Adjusted Segment
Loss
|
|
$
(18,550)
|
|
$
(13,677)
|
|
|
|
|
|
Segment Loss % as
Reported
|
|
-13.8%
|
|
-8.9%
|
Adjusted Segment Loss
%
|
|
-12.4%
|
|
-8.9%
|
Net sales in the first quarter of fiscal 2016 decreased
$3 million or 2.0% from the prior
year. Unfavorable foreign currency, net of offsetting price
increases, negatively impacted net sales by approximately
$4.9 million, largely due to the
weakening of the Euro. Total engine volumes shipped in the quarter
increased by 6.3% or approximately 50,000 engines, mainly
attributable to higher shipments of small engines used on walk
mowers due to improved lawn and garden markets in North America and Europe this past season. This resulted in more
normal channel inventories at the end of the season compared to
higher inventory levels last year.
Adjusted segment loss in the first quarter of fiscal 2016
increased by $4.9 million from the
prior year. The adjusted gross profit percentage was 16.2% in the
first quarter of fiscal 2016, a decrease of 200 basis points from
the prior year. Unfavorable foreign currency, net of offsetting
price increases, negatively impacted gross profit percentage by 250
basis points, largely due to the weakening of the Euro.
Manufacturing volume decreased by 7%, which reduced the
adjusted gross profit percentage by 90 basis points. Engine
production was elevated last year in the first quarter to support
the pre-build of products related to the closure of the McDonough
plant. Partially offsetting the lower gross profit percentage was
the benefit of manufacturing efficiency improvements and slightly
lower material costs.
Adjusted engineering, selling, general and administrative
expenses for the first quarter of fiscal 2016 increased
$0.5 million largely due to higher
costs related to pension expense and higher compensation expense,
partially offset by the benefit of the movement in foreign currency
rates.
Products Segment:
|
|
Three Months
Ended September
|
(In
Thousands)
|
|
FY2016
|
|
FY2015
|
Net Sales
|
|
$
162,541
|
|
$
166,128
|
|
|
|
|
|
Gross Profit as
Reported
|
|
$
27,143
|
|
$
19,384
|
Restructuring
Charges
|
|
1,995
|
|
6,846
|
Acquisition Related
Charges
|
|
250
|
|
1,172
|
Adjusted Gross
Profit
|
|
$
29,388
|
|
$
27,402
|
|
|
|
|
|
Gross Profit % as
Reported
|
|
16.7%
|
|
11.7%
|
Adjusted Gross Profit
%
|
|
18.1%
|
|
16.5%
|
|
|
|
|
|
Segment Income (Loss) as
Reported
|
|
$
62
|
|
$
(8,291)
|
Restructuring
Charges
|
|
2,019
|
|
7,801
|
Acquisition Related
Charges
|
|
276
|
|
1,350
|
Adjusted Segment
Income
|
|
$
2,357
|
|
$
860
|
|
|
|
|
|
Segment Income (Loss) % as
Reported
|
|
0.0%
|
|
-5.0%
|
Adjusted Segment Income
%
|
|
1.5%
|
|
0.5%
|
Net sales in the first quarter of fiscal 2016 decreased
$4 million or 2.2% from the prior
year. Unfavorable foreign currency, net of offsetting price
increases, negatively impacted net sales by approximately
$5.9 million, primarily related to
the Australian Dollar and Brazilian Real. Excluding currency
impacts, net sales increased by $2.3
million due to the results from the prior year acquisitions
of Allmand and Billy Goat as well as increased sales of high end
residential and commercial lawn and garden equipment through our
North America dealer
channel. Partially offsetting this increase were lower sales
of snow throwers into Europe
following two seasons of below normal snowfall and decreased sales
in Latin America due to
unfavorable economic conditions in the region. Lower generator
sales due to a prolonged absence of major storms and our planned
actions to narrow the assortment of lower priced Snapper consumer
lawn and garden equipment also offset the increase.
Adjusted segment income in the first quarter of fiscal 2016
improved by $1.5 million from the
prior year. The adjusted gross profit percentage of 18.1% in the
first quarter of fiscal 2016 increased 160 basis points year over
year. Adjusted gross margins improved by 180 basis points due to
increased manufacturing efficiencies, including $2.2 million of incremental savings realized from
the previously announced restructuring actions. Favorable sales
mix, which improved adjusted gross margins by approximately 70
basis points, was driven by our focus on selling higher margin lawn
and garden equipment and the results from last year's acquisitions.
Partially offsetting the higher gross profit margins was lower
manufacturing volume, which reduced adjusted gross profit margins
by 90 basis points. Manufacturing throughput decreased 13% during
the first quarter of fiscal 2016 as production had been elevated in
the first quarter of last year to pre-build products to support the
closure of the McDonough plant.
Adjusted engineering, selling, general and administrative
expenses in the first quarter of fiscal 2016 increased $0.8 million from the prior year largely due to
the Allmand and Billy Goat acquisitions, partially offset by the
benefit of the movement in foreign currency rates.
Corporate Items:
The effective tax rate for the first quarter of fiscal 2016
was 31.2%, compared to 40.9% for the same respective period
last year. The tax rates for the first quarters of fiscal 2016
and 2015 were primarily driven by losses incurred at certain
foreign subsidiaries for which the Company does not receive tax
benefits and foreign earnings in jurisdictions with tax rates that
vary from the U.S. statutory rate. The tax rate for the first
quarter of fiscal 2015 also included the reversal of previously
recorded reserves as a result of the effective settlement of the
Company's IRS audit for its 2009-2010 consolidated income tax
returns.
Financial Position:
Net debt at September 27, 2015 was
$209.4 million (total debt of
$263.4 million less $54.0 million of cash), or $46.3 million higher than the $163.1 million (total debt of $225.0 million less $61.9
million of cash) at September 28,
2014. The change in net debt is mainly attributable to the
acquisition of Billy Goat for approximately $28.3 million in cash, net of cash acquired,
during the fourth quarter of fiscal 2015. Cash flows used in
operating activities for fiscal 2016 were $82.7 million compared to $48.9 million in fiscal 2015. The decrease in
operating cash flows was primarily related to changes in working
capital, primarily higher accounts receivable and lower accounts
payable, partially offset by lower inventory levels. Inventory
levels were elevated last year in the first quarter to support the
McDonough plant closure.
Restructuring:
During the first quarter of fiscal 2016, the Company made
progress implementing the previously announced restructuring
actions to narrow its assortment of lower-priced Snapper consumer
lawn and garden equipment and consolidate its Products segment
manufacturing facilities in order to reduce costs. Production of
riding mowers, the last part of the manufacturing transition from
the McDonough plant, began at the Wauwatosa, Wisconsin plant during the first
quarter. In addition to the Products segment restructuring, the
Company implemented restructuring actions within the Engines
segment. These actions, which were completed in the first quarter
of fiscal 2016, included a headcount reduction at our plant in
Chongqing, China to offset lower
production of engines used on snow throwers as well as changes in
salaried personnel in the United
States. Pre-tax restructuring costs for the first quarter of
fiscal 2016 were $1.4 million and
$2.0 million related to the Engines
and Products segments, respectively. Pre-tax restructuring cost
estimates for the Products segment remain unchanged for fiscal 2016
at $4 million to $8 million. There
are no additional charges anticipated related to the Engine segment
restructuring actions. Incremental pre-tax savings related to the
Products restructuring actions during the first quarter of fiscal
2016 were $1.7 million. Incremental
cost savings as a result of these actions are anticipated to be
$5 million to $7 million in fiscal
2016.
Share Repurchase Program:
On August 13, 2014, the Board of
Directors authorized up to $50
million in funds for use in the common share repurchase
program. The common share repurchase program authorizes the
purchase of shares of the Company's common stock on the open market
or in private transactions from time to time, depending on market
conditions and certain governing loan covenants. During the first
quarter of fiscal 2016, the Company repurchased approximately
590,000 shares on the open market at an average price of
$18.95 per share. As of September 27, 2015, the Company has remaining
authorization to repurchase up to approximately $29 million of common stock with an expiration
date of June 30, 2016.
Outlook:
We are reaffirming our guidance for fiscal 2016. We anticipate
net sales for fiscal 2016 to be in a range of $1.90 billion to $1.96 billion. This sales range
contemplates modest organic growth with our expectations of the
U.S. and European markets to improve by 1% to 3% for the next
season. Acquisitions completed in fiscal 2015 are expected to
add up to 2% to net sales and reflects lower capital spending
levels by oil and gas companies based on lower oil pricing compared
with last year. Achievement of this growth will depend on the speed
with which we further diversify our Allmand brand into construction
and infrastructure sectors as well as internationally. Offsetting
organic and acquisition growth are lower estimated sales of
approximately 2% related to our reduction of the lower margin
Snapper SKUs that were discontinued as part of the restructuring
program and unfavorable net foreign currency impacts caused by a
strong U.S. dollar.
We continue to estimate fiscal 2016 net income to be in a range
of $54 million to $61 million or
$1.20 to $1.36 per diluted share
prior to the impact of any restructuring actions. Operating
margins are estimated to be 4.8% to 5.2%. Compared to last year,
operating margins are expected to be consistent as sales growth and
manufacturing efficiency improvements are offset by a stronger
dollar and increased pension expense caused by the adoption of new
mortality tables to value our pension liability. Also, fiscal 2016
reflects an expected return to a more normalized tax rate in the
range of 32% to 34% which represents a reduced benefit of
approximately $0.14 per diluted share
from fiscal 2015. Interest expense and other income is estimated to
be $21 million and $8.5 million, respectively. Capital expenditures
are estimated to be $65 million to $70
million.
Conference Call Information:
The Company will host a conference call tomorrow at 10:00 AM (ET) to review this information. A live
webcast of the conference call will be available on our corporate
website: http://www.basco.com/investor relations.
Also available is a dial-in number to access the call real-time
at (866) 804-3545. A replay will be offered beginning approximately
two hours after the call ends and will be available for one week.
Dial (888) 266-2081 to access the replay. The pass code will be
1649163.
Safe Harbor Statement:
This release contains certain forward-looking statements that
involve risks and uncertainties that could cause actual results to
differ materially from those projected in the forward-looking
statements. The words "anticipate", "believe", "estimate",
"expect", "forecast", "intend", "plan", "project", and similar
expressions are intended to identify forward-looking statements.
The forward-looking statements are based on the Company's current
views and assumptions and involve risks and uncertainties that
include, among other things, the ability to successfully forecast
demand for our products; changes in interest rates and foreign
exchange rates; the effects of weather on the purchasing patterns
of consumers and original equipment manufacturers (OEMs); actions
of engine manufacturers and OEMs with whom we compete; changes in
laws and regulations; changes in customer and OEM demand; changes
in prices of raw materials and parts that we purchase; changes in
domestic and foreign economic conditions; the ability to bring new
productive capacity on line efficiently and with good quality;
outcomes of legal proceedings and claims; the ability to realize
anticipated savings from restructuring actions; and other factors
disclosed from time to time in our SEC filings or otherwise,
including the factors discussed in Item 1A, Risk Factors, of
the Company's Annual Report on Form 10-K and in its periodic
reports on Form 10-Q. We undertake no obligation to update
forward-looking statements made in this release to reflect events
or circumstances after the date of this release.
About Briggs & Stratton Corporation:
Briggs & Stratton Corporation, headquartered in Milwaukee, Wisconsin, is the world's largest
producer of gasoline engines for outdoor power equipment. Its
wholly owned subsidiaries include North
America's number one marketer of pressure washers, and it is
a leading designer, manufacturer and marketer of power generation,
lawn and garden, turf care and job site products through its
Simplicity®, Snapper®, Snapper Pro®, Ferris®, PowerBoss®, Allmand™,
Billy Goat®, Murray®, Branco® and Victa® brands. Briggs &
Stratton products are designed, manufactured, marketed and serviced
in over 100 countries on six continents.
BRIGGS &
STRATTON CORPORATION AND SUBSIDIARIES
|
Consolidated
Statements of Operations for the Periods Ended
September
|
(In Thousands,
except per share data)
|
(Unaudited)
|
|
|
|
Three Months
Ended September
|
|
|
FY2016
|
|
FY2015
|
NET SALES
|
|
$
289,458
|
|
$
292,629
|
COST OF GOODS
SOLD
|
|
237,287
|
|
238,462
|
RESTRUCTURING
CHARGES
|
|
2,459
|
|
6,846
|
Gross
Profit
|
|
49,712
|
|
47,321
|
|
|
|
|
|
ENGINEERING, SELLING,
GENERAL AND ADMINISTRATIVE
EXPENSES
|
|
72,134
|
|
70,084
|
RESTRUCTURING
CHARGES
|
|
914
|
|
955
|
Loss from
Operations
|
|
(23,336)
|
|
(23,718)
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
(4,536)
|
|
(4,518)
|
OTHER
INCOME
|
|
1,455
|
|
2,373
|
Loss before Income
Taxes
|
|
(26,417)
|
|
(25,863)
|
|
|
|
|
|
CREDIT FOR INCOME
TAXES
|
|
(8,246)
|
|
(10,584)
|
Net Loss
|
|
$
(18,171)
|
|
$
(15,279)
|
|
|
|
|
|
EARNINGS (LOSS) PER
SHARE
|
|
|
|
|
Basic
|
|
$
(0.42)
|
|
$
(0.34)
|
Diluted
|
|
$
(0.42)
|
|
$
(0.34)
|
|
|
|
|
|
WEIGHTED AVERAGE
SHARES OUTSTANDING
|
|
|
|
|
Basic
|
|
43,478
|
|
45,113
|
Diluted
|
|
43,478
|
|
45,113
|
BRIGGS &
STRATTON CORPORATION AND SUBSIDIARIES
|
Consolidated
Balance Sheets as of the End of September
|
(In
Thousands)
|
(Unaudited)
|
|
CURRENT
ASSETS:
|
FY2016
|
|
FY2015
|
Cash and Cash
Equivalents
|
$
53,995
|
|
$
61,898
|
Accounts Receivable,
Net
|
168,964
|
|
166,313
|
Inventories
|
473,773
|
|
506,888
|
Deferred Income Tax
Asset
|
46,096
|
|
47,904
|
Prepaid Expenses and
Other Current Assets
|
47,006
|
|
39,799
|
Total Current
Assets
|
789,834
|
|
822,802
|
|
|
|
|
OTHER
ASSETS:
|
|
|
|
Goodwill
|
167,859
|
|
160,976
|
Investments
|
31,432
|
|
27,056
|
Debt Issuance Costs,
Net
|
3,481
|
|
4,428
|
Other Intangible
Assets, Net
|
107,237
|
|
101,594
|
Deferred Income Tax
Asset
|
17,571
|
|
291
|
Other Long-Term
Assets, Net
|
15,731
|
|
11,458
|
Total Other
Assets
|
343,311
|
|
305,803
|
|
|
|
|
|
|
|
|
PLANT AND
EQUIPMENT:
|
|
|
|
At Cost
|
1,039,144
|
|
1,040,081
|
Less - Accumulated
Depreciation
|
727,601
|
|
743,160
|
Plant and Equipment,
Net
|
311,543
|
|
296,921
|
|
$
1,444,688
|
|
$
1,425,526
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
Accounts
Payable
|
$
184,264
|
|
$
187,214
|
Short-Term
Debt
|
38,410
|
|
-
|
Accrued
Liabilities
|
143,332
|
|
140,888
|
Total Current
Liabilities
|
366,006
|
|
328,102
|
|
|
|
|
OTHER
LIABILITIES:
|
|
|
|
Accrued Pension
Cost
|
203,931
|
|
120,569
|
Accrued Employee
Benefits
|
23,233
|
|
24,538
|
Accrued
Postretirement Health Care Obligation
|
45,382
|
|
56,122
|
Deferred Income Tax
Liability
|
366
|
|
3,906
|
Other Long-Term
Liabilities
|
47,627
|
|
35,256
|
Long-Term
Debt
|
225,000
|
|
225,000
|
Total Other
Liabilities
|
545,539
|
|
465,391
|
|
|
|
|
SHAREHOLDERS'
INVESTMENT:
|
|
|
|
Common
Stock
|
579
|
|
579
|
Additional Paid-In
Capital
|
71,040
|
|
73,100
|
Retained
Earnings
|
1,047,338
|
|
1,027,469
|
Accumulated Other
Comprehensive Loss
|
(289,741)
|
|
(199,142)
|
Treasury Stock, at
Cost
|
(296,073)
|
|
(269,973)
|
Total Shareholders'
Investment
|
533,143
|
|
632,033
|
|
$
1,444,688
|
|
$
1,425,526
|
BRIGGS &
STRATTON CORPORATION AND SUBSIDIARIES
|
Consolidated
Statements of Cash Flows
|
(In
Thousands)
|
(Unaudited)
|
|
|
Three Months Ended
September
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
FY2016
|
|
FY2015
|
Net Loss
|
$
(18,171)
|
|
$
(15,279)
|
Adjustments to
Reconcile Net Loss to Net Cash Used in Operating
Activities:
|
|
|
|
Depreciation and
Amortization
|
13,397
|
|
12,939
|
Stock Compensation
Expense
|
1,627
|
|
1,605
|
Loss on Disposition
of Plant and Equipment
|
46
|
|
75
|
Provision for
Deferred Income Taxes
|
3,844
|
|
4,558
|
Equity in Earnings of
Unconsolidated Affiliates
|
(1,436)
|
|
(1,887)
|
Dividends Received
from Unconsolidated Affiliates
|
728
|
|
1,750
|
Non-Cash
Restructuring Charges
|
229
|
|
5,165
|
Changes in Operating
Assets and Liabilities:
|
|
|
|
Accounts
Receivable
|
45,558
|
|
70,347
|
Inventories
|
(95,342)
|
|
(117,735)
|
Other Current
Assets
|
2,408
|
|
8,628
|
Accounts Payable,
Accrued Liabilities and Income Taxes
|
(30,337)
|
|
(13,596)
|
Other, Net
|
(5,240)
|
|
(5,448)
|
Net Cash
Used in Operating Activities
|
(82,689)
|
|
(48,878)
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
Additions to Plant
and Equipment
|
(12,428)
|
|
(7,390)
|
Cash Paid for
Acquisitions, Net of Cash Acquired
|
(2,174)
|
|
(62,056)
|
Proceeds Received on
Disposition of Plant and Equipment
|
515
|
|
172
|
Net Cash
Used in Investing Activities
|
(14,087)
|
|
(69,274)
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
Net Borrowings on
Revolver
|
38,410
|
|
-
|
Stock Option Exercise
Proceeds and Tax Benefits
|
6,433
|
|
3,151
|
Treasury Stock
Purchases
|
(11,178)
|
|
(17,761)
|
Net Cash
Provided by (Used in) Financing Activities
|
33,665
|
|
(14,610)
|
|
|
|
|
EFFECT OF EXCHANGE
RATE CHANGES
|
(1,284)
|
|
(8)
|
NET DECREASE IN CASH
AND CASH EQUIVALENTS
|
(64,395)
|
|
(132,770)
|
CASH AND CASH
EQUIVALENTS, Beginning
|
118,390
|
|
194,668
|
CASH AND CASH
EQUIVALENTS, Ending
|
$
53,995
|
|
$
61,898
|
Non-GAAP Financial Measures
Briggs & Stratton prepares its financial statements
using Generally Accepted Accounting Principles (GAAP). When a
company discloses material information containing non-GAAP
financial measures, SEC regulations require that the disclosure
include a presentation of the most directly comparable GAAP measure
and a reconciliation of the GAAP and non-GAAP financial measures.
Management's inclusion of non-GAAP financial measures in this
release is intended to supplement, not replace, the presentation of
the financial results in accordance with GAAP. Briggs &
Stratton Corporation management believes that these non-GAAP
financial measures, when considered together with the GAAP
financial measures, provide information that is useful to investors
in understanding period-over-period operating results separate and
apart from items that may, or could, have a disproportionately
positive or negative impact on results in any particular period.
Management also believes that these non-GAAP financial measures
enhance the ability of investors to analyze our business trends and
to understand our performance. In addition, we may utilize non-GAAP
financial measures as a guide in our forecasting, budgeting and
long-term planning process. Non-GAAP financial measures should be
considered in addition to, and not as a substitute for, or superior
to, financial measures presented in accordance with GAAP. The
following table is a reconciliation of the non-GAAP financial
measures:
BRIGGS &
STRATTON CORPORATION AND SUBSIDIARIES
|
Adjusted Segment
Information for the Periods Ended September
|
(In Thousands,
except per share data)
|
(Unaudited)
|
|
|
|
Three Months
Ended September
|
|
|
FY2016
Reported
|
|
Adjustments1
|
|
FY2016
Adjusted
|
|
FY2015
Reported
|
|
Adjustments1
|
|
FY2015
Adjusted
|
|
|
|
|
|
|
|
NET SALES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Engines
|
|
$
150,083
|
|
$
-
|
|
$
150,083
|
|
$ 153,116
|
|
$
-
|
|
$
153,116
|
Products
|
|
162,541
|
|
-
|
|
162,541
|
|
166,128
|
|
-
|
|
166,128
|
Inter-Segment
Eliminations
|
|
(23,166)
|
|
-
|
|
(23,166)
|
|
(26,615)
|
|
-
|
|
(26,615)
|
Total
|
|
$
289,458
|
|
$
-
|
|
$
289,458
|
|
$ 292,629
|
|
$
-
|
|
$
292,629
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT:
|
|
|
|
|
|
|
|
|
|
|
|
|
Engines
|
|
$
23,777
|
|
$
464
|
|
$
24,241
|
|
$
27,800
|
|
$
-
|
|
$
27,800
|
Products
|
|
27,143
|
|
2,245
|
|
29,388
|
|
19,384
|
|
8,018
|
|
27,402
|
Inter-Segment
Eliminations
|
|
(1,208)
|
|
-
|
|
(1,208)
|
|
137
|
|
-
|
|
137
|
Total
|
|
$
49,712
|
|
$
2,709
|
|
$
52,421
|
|
$
47,321
|
|
$
8,018
|
|
$
55,339
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ENGINEERING, SELLING,
GENERAL AND ADMINISTRATIVE
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
Engines
|
|
$
44,301
|
|
$
850
|
|
$
43,451
|
|
$
42,929
|
|
$
-
|
|
$
42,929
|
Products
|
|
27,833
|
|
26
|
|
27,807
|
|
27,155
|
|
178
|
|
26,977
|
Total
|
|
$
72,134
|
|
$
876
|
|
$
71,258
|
|
$
70,084
|
|
$
178
|
|
$
69,906
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING
CHARGES
|
|
|
|
|
|
|
|
|
|
|
|
|
Engines
|
|
$
890
|
|
$
890
|
|
$
-
|
|
$
-
|
|
$
-
|
|
$
-
|
Products
|
|
24
|
|
24
|
|
-
|
|
955
|
|
955
|
|
-
|
Total
|
|
$
914
|
|
$
914
|
|
$
-
|
|
$
955
|
|
$
955
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY IN EARNINGS
OF UNCONSOLIDATED
AFFILIATES
|
|
|
|
|
|
|
|
|
|
|
|
Engines
|
|
$
660
|
|
$
-
|
|
$
660
|
|
$
1,452
|
|
$
-
|
|
$
1,452
|
Products
|
|
776
|
|
-
|
|
776
|
|
435
|
|
-
|
|
435
|
Total
|
|
$
1,436
|
|
$
-
|
|
$
1,436
|
|
$
1,887
|
|
$
-
|
|
$
1,887
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT INCOME (LOSS)
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Engines
|
|
$
(20,754)
|
|
$
2,204
|
|
$
(18,550)
|
|
$
(13,677)
|
|
$
-
|
|
$ (13,677)
|
Products
|
|
$
62
|
|
2,295
|
|
2,357
|
|
(8,291)
|
|
9,151
|
|
860
|
Inter-Segment
Eliminations
|
|
(1,208)
|
|
-
|
|
(1,208)
|
|
137
|
|
-
|
|
137
|
Total
|
|
$
(21,900)
|
|
$
4,499
|
|
$
(17,401)
|
|
$
(21,831)
|
|
$
9,151
|
|
$ (12,680)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from
Segment Income (Loss) to Income (Loss) before Income
Taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in Earnings of
Unconsolidated Affiliates
|
|
1,436
|
|
-
|
|
1,436
|
|
1,887
|
|
-
|
|
1,887
|
Income (Loss) from
Operations
|
|
$
(23,336)
|
|
$
4,499
|
|
$
(18,837)
|
|
$
(23,718)
|
|
$
9,151
|
|
$ (14,567)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
(4,536)
|
|
-
|
|
(4,536)
|
|
(4,518)
|
|
-
|
|
(4,518)
|
OTHER
INCOME
|
|
1,455
|
|
-
|
|
1,455
|
|
2,373
|
|
-
|
|
2,373
|
Income (Loss) before
Income Taxes
|
|
(26,417)
|
|
4,499
|
|
(21,918)
|
|
(25,863)
|
|
9,151
|
|
(16,712)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION (CREDIT)
FOR INCOME TAXES
|
|
(8,246)
|
|
1,528
|
|
(6,718)
|
|
(10,584)
|
|
3,203
|
|
(7,381)
|
Net Income
(Loss)
|
|
$
(18,171)
|
|
$
2,971
|
|
$
(15,200)
|
|
$
(15,279)
|
|
$
5,948
|
|
$
(9,331)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) PER
SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
(0.42)
|
|
$
0.07
|
|
$
(0.35)
|
|
$
(0.34)
|
|
$
0.13
|
|
$
(0.21)
|
Diluted
|
|
(0.42)
|
|
0.07
|
|
(0.35)
|
|
(0.34)
|
|
0.13
|
|
(0.21)
|
|
1
|
For the first quarter
of fiscal 2016, includes pre-tax restructuring charges of $3,373
($2,239 after tax), pre-tax acquisition-related charges of $276
($179 after tax), and certain pre-tax litigation charges of $850
($553 after tax). For the first quarter of fiscal 2015, includes
pre-tax restructuring charges of $7,801 ($5,071 after tax) and
pre-tax acquisition-related charges of $1,350 ($877 after
tax).
|
2
|
The Company defines
segment income (loss) as income (loss) from operations plus equity
in earnings of unconsolidated affiliates.
|
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SOURCE Briggs & Stratton Corporation