READING, Pa., May 5, 2016 /PRNewswire/ -- EnerSys (NYSE:
ENS) the global leader in stored energy solutions for industrial
applications, announced today preliminary results for its fourth
quarter and full year of fiscal 2016, which ended on March 31, 2016.
Please note that these results are preliminary and while
management expects them to be our final results, they could
change.
Net earnings attributable to EnerSys stockholders ("Net
Earnings") for the fourth quarter of fiscal 2016 are expected to be
$9.3 million, or $0.21 per diluted share, including an unfavorable
highlighted net of tax impact of $36.2
million or $0.82 per share
from non-cash charges relating to impairment of goodwill and other
assets, as well as, cash and non-cash charges or credits from our
restructuring plans and other highlighted items described in
further detail below.
The expected Net Earnings of $0.21
per diluted share compares to Net Earnings of $0.57 per diluted share for the fourth quarter of
fiscal 2015, which included an unfavorable highlighted net of tax
impact of $27.2 million or
$0.58 per share from non-cash charges
relating to impairment of goodwill and other assets, as well as,
cash and non-cash charges or credits from our restructuring plans
and other highlighted items.
Excluding these highlighted items, adjusted Net Earnings per
diluted share for the fourth quarter of fiscal 2016, on a non-GAAP
basis, are expected to be $1.03,
which would exceed the guidance of $0.98 to
$1.02 per diluted share given by the Company on January 28, 2016. These earnings compare to the
prior year fourth quarter adjusted Net Earnings of $1.15 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 which include tables
reconciling GAAP and non-GAAP adjusted financial measures for the
quarters and fiscal years ended March 31,
2016 and 2015.
Net sales for the fourth quarter of fiscal 2016 were
$611.4 million, a decrease of 3% from
the prior year fourth quarter net sales of $629.9 million and a 7% sequential quarterly
increase from the third quarter of fiscal 2016 net sales of
$573.6 million. The 3% decrease was
largely the result of a 2% decrease each in organic volume and
foreign currency translation impact, partially offset by an
increase of 1% from acquisitions.
Net Earnings for the twelve months of fiscal 2016 are expected
to be $136.2 million, or $2.99 per diluted share, including an unfavorable
net of tax impact of $42.2
million or $0.94 per share
from non-cash charges relating to impairment of goodwill and other
assets, as well as, cash and non-cash charges or credits from our
restructuring plans and other highlighted items.
Net Earnings for the twelve months of fiscal 2015 were
$181.2 million, or $3.77 per diluted share, including an unfavorable
impact from highlighted charges of $26.5
million or $0.55 per share
from non-cash charges relating to impairment of goodwill and other
assets, as well as, cash and non-cash charges or credits from our
restructuring plans and other highlighted items.
Adjusted Net Earnings per diluted share for the twelve months of
fiscal 2016, on a non-GAAP basis, are expected to be $3.93 and compares to $4.32 per diluted share for the twelve months of
fiscal 2015.
Net sales for the twelve months of fiscal 2016 were $2,316.2 million, a decrease of 8% compared to
the net sales of $2,505.5 million in
fiscal 2015. The 8% decrease was the result of a 7% decrease due to
foreign currency translation impact and a 2% decrease in organic
volume, partially offset by a 1% increase from acquisitions.
The impairment charges described above resulted from our annual
goodwill impairment testing and these charges reflect that certain
reporting units have projected cash flows that are insufficient to
support their existing carrying values for goodwill and other
indefinite-lived assets.
"Our full year adjusted Net Earnings per diluted share were
$3.93," stated David M. Shaffer, President and Chief Executive
Officer of EnerSys. "As we finished fiscal year 2016 the vast
majority of our businesses were operating above target. Management
is keenly focused on the improvement of the under-performing
units."
Mr. Shaffer added, "Our first quarter of fiscal 2017 guidance
for adjusted Net Earnings per diluted share is between $1.08 and $1.12, which excludes an expected
charge of $0.04 from our ongoing
restructuring programs, ERP system implementation and acquisition
expenses. We anticipate that sequential revenue will be flat to
slightly higher."
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, impairment of goodwill and
indefinite-lived intangibles and other assets and those charges and
credits that are not directly related to operating unit
performance, such as fees and expenses related to acquisition
activities, stock-based compensation of senior executives,
significant legal proceedings, ERP system implementation and tax
valuation allowance changes. Because these charges are not incurred
as a result of ongoing operations or are incurred as a result of a
potential or previous 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 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
|
|
|
|
March 31,
2016 (preliminary)
|
|
|
March 31,
2015
|
|
|
|
(in millions,
except share and per share amounts)
|
|
|
|
Net Earnings
reconciliation
|
|
|
|
|
|
|
|
As reported Net
Earnings
|
$
|
9.3
|
|
|
|
$
|
26.5
|
|
|
|
|
Non-GAAP adjustments,
net of tax:
|
|
|
|
|
|
|
|
Restructuring
charges
|
5.3
|
|
(1)
|
5.1
|
|
(1)
|
|
Impairment of
goodwill, indefinite-lived intangibles and fixed assets
|
32.1
|
|
(2)
|
|
20.7
|
|
(2)
|
|
|
ERP system
implementation
|
0.8
|
|
(3)
|
|
0.4
|
|
(3)
|
|
|
Charges relating to
sale of facility
|
1.1
|
|
(6)
|
|
—
|
|
|
|
|
Acquisition activity
expense
|
0.1
|
|
(7)
|
|
0.2
|
|
(7)
|
|
Net tax
expense
|
—
|
|
|
|
0.8
|
|
(8)
|
|
Noncontrolling
partner's share of impairment and exit charges
|
(3.2)
|
|
(9)
|
|
—
|
|
|
|
|
Non-GAAP adjusted
Net Earnings
|
$
|
45.5
|
|
|
|
$
|
53.7
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding shares
used in per share calculations
|
|
|
|
|
|
|
|
Basic
|
43,533,985
|
|
|
44,203,385
|
|
|
|
Diluted
|
44,158,541
|
|
|
46,579,230
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted
Net Earnings per share:
|
|
|
|
|
|
|
|
Basic
|
$
|
1.05
|
|
|
|
$
|
1.21
|
|
|
|
|
Diluted
|
$
|
1.03
|
|
|
|
$
|
1.15
|
|
|
|
|
|
|
|
|
|
|
|
Reported Net
Earnings per share:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.21
|
|
|
|
$
|
0.60
|
|
|
|
|
Diluted
|
$
|
0.21
|
|
|
|
$
|
0.57
|
|
|
|
|
Dividends per
common share
|
$
|
0.175
|
|
|
|
$
|
0.175
|
|
|
|
|
|
Quarter
ended
|
|
|
March 31,
2016 (preliminary)
|
|
March 31,
2015
|
|
|
Pre-tax
|
|
Net of tax
|
|
Pre-tax
|
|
Net of tax
|
|
|
($
millions)
|
|
($
millions)
|
|
(1) Restructuring
charges - Americas
|
|
$
|
0.6
|
|
|
$
|
0.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
(1) Restructuring and
other exit charges - EMEA
|
|
4.8
|
|
|
4.5
|
|
|
3.4
|
|
|
3.1
|
|
|
(1) Restructuring
charges - Asia
|
|
0.5
|
|
|
0.4
|
|
|
2.0
|
|
|
2.0
|
|
|
(2) Impairment of
goodwill and indefinite lived intangibles - Americas - (Purcell and
Quallion)
|
|
33.0
|
|
|
28.8
|
|
|
23.1
|
|
|
19.9
|
|
|
(2) Goodwill and
fixed assets impairment charge - EMEA - (South Africa joint
venture)
|
|
3.3
|
|
|
3.3
|
|
|
0.8
|
|
|
0.8
|
|
|
(3) ERP system
implementation - Americas
|
|
1.3
|
|
|
0.8
|
|
|
0.6
|
|
|
0.4
|
|
|
(6) Charges relating
to sale of facility - Asia
|
|
0.9
|
|
|
1.1
|
|
|
—
|
|
|
—
|
|
|
(7) Acquisition
activity expense - Americas
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7) Acquisition
activity expense - Asia
|
|
0.1
|
|
|
0.1
|
|
|
0.3
|
|
|
0.2
|
|
|
(8) Net tax expense -
Asia
|
|
—
|
|
|
—
|
|
|
0.8
|
|
|
0.8
|
|
|
(9) Noncontrolling
partner's share of impairment and exit charges - EMEA - (South
Africa joint venture)
|
|
—
|
|
|
(3.2)
|
|
|
—
|
|
|
—
|
|
|
Total Non-GAAP
adjustments
|
|
$
|
44.6
|
|
|
$
|
36.2
|
|
|
$
|
31.0
|
|
|
$
|
27.2
|
|
|
|
|
|
EMEA - Europe,
Middle East and Africa
|
|
Fiscal year
ended
|
|
|
March 31,
2016 (preliminary)
|
|
|
March 31,
2015
|
|
|
(in millions,
except share and per share amounts)
|
|
|
Net Earnings
reconciliation
|
|
|
|
|
|
|
As reported Net
Earnings
|
$
|
136.2
|
|
|
|
$
|
181.2
|
|
|
|
Non-GAAP adjustments,
net of tax:
|
|
|
|
|
|
|
Restructuring
charges
|
10.6
|
|
(1)
|
9.7
|
(1)
|
|
Impairment of
goodwill, indefinite-lived intangibles and fixed assets
|
32.1
|
|
(2)
|
|
20.7
|
|
(2)
|
|
Legal proceedings
charge / (reversal of legal accrual, net of fees)
|
2.9
|
|
(3)
|
|
(9.9)
|
|
(3)
|
|
Gain on disposition of
equity interest in Altergy
|
—
|
|
|
|
(2.0)
|
|
(3)
|
|
ERP system
implementation
|
2.5
|
|
(4)
|
|
1.3
|
|
(4)
|
|
Stock-based
compensation of senior executives
|
—
|
|
|
|
5.3
|
|
(5)
|
|
Gain on sale of
facility
|
(2.2)
|
|
(6)
|
|
—
|
|
|
|
Acquisition activity
expense
|
0.5
|
|
(7)
|
0.6
|
(7)
|
|
Net tax expense
(benefit)
|
(1.0)
|
|
(8)
|
|
0.8
|
|
(8)
|
|
Noncontrolling
partner's share of impairment and exit charges
|
(3.2)
|
|
(9)
|
|
—
|
|
|
|
Non-GAAP adjusted
Net Earnings
|
$
|
178.4
|
|
|
|
$
|
207.7
|
|
|
|
|
|
|
|
|
|
Outstanding shares
used in per share calculations
|
|
|
|
|
|
|
Basic
|
44,276,713
|
|
|
45,606,317
|
|
|
Diluted
|
45,474,130
|
|
|
48,052,729
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted
Net Earnings per share:
|
|
|
|
|
|
|
Basic
|
$
|
4.03
|
|
|
|
$
|
4.55
|
|
|
|
Diluted
|
$
|
3.93
|
|
|
|
$
|
4.32
|
|
|
|
|
|
|
|
|
|
Reported Net
Earnings per share:
|
|
|
|
|
|
|
Basic
|
$
|
3.08
|
|
|
|
$
|
3.97
|
|
|
|
Diluted
|
$
|
2.99
|
|
|
|
$
|
3.77
|
|
|
|
Dividends per
common share
|
$
|
0.70
|
|
|
|
$
|
0.70
|
|
|
The following table provides the regional allocation of the
non-GAAP adjustments shown in the reconciliation above:
|
|
Fiscal year
ended
|
|
|
March 31,
2016 (preliminary)
|
|
March 31,
2015
|
|
|
Pre-tax
|
|
Net of tax
|
|
Pre-tax
|
|
Net of tax
|
|
|
($
millions)
|
|
($
millions)
|
|
(1) Restructuring
charges - Americas
|
|
$
|
2.1
|
|
|
$
|
1.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
(1) Restructuring and
other exit charges - EMEA
|
|
9.5
|
|
|
8.0
|
|
|
7.5
|
|
|
6.3
|
|
|
(1) Restructuring
charges - Asia
|
|
1.4
|
|
|
1.3
|
|
|
3.9
|
|
|
3.4
|
|
|
(2) Impairment of
goodwill and indefinite lived intangibles - Americas - (Purcell
& Quallion)
|
|
33.0
|
|
|
28.8
|
|
|
23.1
|
|
|
19.9
|
|
|
(2) Goodwill and
fixed assets impairment charge - EMEA - (South Africa joint
venture)
|
|
3.3
|
|
|
3.3
|
|
|
0.8
|
|
|
0.8
|
|
|
(3) Competition
investigations and related legal charges - EMEA
|
|
4.0
|
|
|
3.4
|
|
|
—
|
|
|
—
|
|
|
(3) Reversal of legal
accrual, net of fees - Americas
|
|
(0.8)
|
|
|
(0.5)
|
|
|
(16.2)
|
|
|
(9.9)
|
|
|
(3) Gain on
disposition of equity interest in Altergy - Americas
|
|
—
|
|
|
—
|
|
|
(2.0)
|
|
|
(2.0)
|
|
|
(4) ERP system
implementation - Americas
|
|
4.1
|
|
|
2.5
|
|
|
2.0
|
|
|
1.3
|
|
|
(5) Stock-based
compensation of senior executives - Americas
|
|
—
|
|
|
—
|
|
|
3.7
|
|
|
2.8
|
|
|
(5) Stock-based
compensation of senior executives - EMEA
|
|
—
|
|
|
—
|
|
|
2.7
|
|
|
2.0
|
|
|
(5) Stock-based
compensation of senior executives - Asia
|
|
—
|
|
|
—
|
|
|
0.7
|
|
|
0.5
|
|
|
(6) Gain on sale of
facility - Asia
|
|
(3.4)
|
|
|
(2.2)
|
|
|
—
|
|
|
—
|
|
|
(7) Acquisition
activity expense - Americas
|
|
0.3
|
|
|
0.2
|
|
|
0.2
|
|
|
0.2
|
|
|
(7) Acquisition
activity expense - Asia
|
|
0.4
|
|
|
0.3
|
|
|
0.5
|
|
|
0.4
|
|
|
(8) Tax benefit
related to stock-based compensation of senior executives
|
|
—
|
|
|
(1.0)
|
|
|
—
|
|
|
—
|
|
|
(8) Net tax expense -
Asia
|
|
—
|
|
|
—
|
|
|
0.8
|
|
|
0.8
|
|
|
(9) Noncontrolling
partner's share of impairment and exit charges - EMEA - (South
Africa joint venture)
|
|
—
|
|
|
(3.2)
|
|
|
—
|
|
|
—
|
|
|
Total Non-GAAP
adjustments
|
|
$
|
53.9
|
|
|
$
|
42.2
|
|
|
$
|
27.7
|
|
|
$
|
26.5
|
|
EnerSys also announced that it will host a conference call to
discuss the Company's fourth quarter and fiscal year 2016 financial
results and provide an overview of the business. The call will
conclude with a question and answer session.
The call, scheduled for Wednesday, June
1, 2016 at 9:00 a.m. Eastern
Time, will be hosted by David M.
Shaffer, Chief Executive Officer, and Michael J. Schmidtlein, Chief Financial
Officer.
The call will also be Webcast on EnerSys' website. There will be
a free download of a compatible media player on the Company's web
site at http://www.enersys.com.
The conference call information is:
|
|
Date:
|
Wednesday, June 1,
2016
|
|
|
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:
|
60074442
|
A replay of the conference call will be available from
12:30 p.m. on June 1, 2016 through midnight on July 1, 2016.
The replay information is:
|
|
Via
Internet:
|
http://www.enersys.com
|
|
|
Domestic Replay
Number:
|
855-859-2056
|
|
|
International Replay
Number:
|
404-537-3406
|
|
|
Passcode:
|
60074442
|
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, order
intake, backlog, payment of future cash dividends, execution of its
stock buy back program, judicial or regulatory proceedings, 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, "Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations," including
"Forward-Looking Statements," set forth in EnerSys' Quarterly
Report on Form 10-Q for the period ended December 27, 2015. No undue reliance should be
placed on any forward-looking statements.
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SOURCE EnerSys