MILWAUKEE, Jan. 20, 2016 /PRNewswire/ -- Briggs &
Stratton Corporation (NYSE:BGG) today announced financial results
for its second fiscal quarter ended December
27, 2015.
Highlights:
- Second quarter fiscal 2016 consolidated net sales were
$413 million, a decrease of
$31 million or 7.0% compared to the
prior year. Net sales decreased $22
million or 5.0% before currency impacts.
- Second quarter fiscal 2016 consolidated adjusted net income
improved to $15.1 million compared to
the adjusted net income of $11.9
million in the second quarter of fiscal 2015. Second quarter
fiscal 2016 consolidated net income was $12.6 million compared to the net income of
$6.9 million in the second quarter of
fiscal 2015.
- Second quarter fiscal 2016 adjusted diluted earnings per share
was $0.34, an improvement compared to
the adjusted diluted earnings per share of $0.26 last year. Second quarter fiscal 2016
diluted earnings per share was $0.28
compared to the diluted earnings per share of $0.15 last year.
"We are pleased to report improved quarterly results with
continued margin improvements in both our engines and products
businesses. These improvements reflect our focus on selling higher
margin products as well as our focus on improving our operations,"
commented Todd J. Teske, Chairman,
President and Chief Executive Officer of Briggs & Stratton
Corporation. Teske continued, "We expect modest industry
growth in the upcoming season here in the U.S. and we maintain some
caution regarding the global economy. Looking forward to the
upcoming U.S. lawn & garden season, we have gained additional
placement of our engines on lawn and garden products as compared to
our placement last year. In addition to introducing new products to
the market this spring, we will be expanding our offering of new
products that we have launched over the past several years to give
consumers and commercial users around the world greater access to
this innovation."
Consolidated Results:
Consolidated net sales for the second quarter of fiscal 2016
were $413 million, a decrease of
$31 million or 7.0% from the second
quarter of fiscal 2015. Net sales decreased during the quarter
partially due to an unfavorable foreign currency impact, net of
price increases, of $8.8 million,
predominately related to the weakening of the Euro, Australian
Dollar, and Brazilian Real. Excluding currency impacts, net
sales decreased by $22 million. The
decrease in net sales was primarily a result of lower sales of job
site products, the timing of pressure washer shipments, and
lower sales of standby generators as well as lower shipments
in certain international regions. Partially offsetting this
decrease were increased shipments of engines to customers in
North America and higher sales of
commercial lawn and garden products in North America. The second quarter fiscal 2016
consolidated net income and diluted earnings per share, which
includes restructuring charges, litigation charges, and the
reinstatement of a deferred tax asset, were $12.6 million and $0.28, respectively, compared to a net income of
$6.9 million and diluted earnings per
share of $0.15 in the second quarter
of fiscal 2015. The second quarter fiscal 2016 adjusted
consolidated net income was $15.1
million or $0.34 per diluted
share as compared to adjusted consolidated net income of
$11.9 million or $0.26 per diluted share in the second quarter of
fiscal 2015.
Consolidated net sales for the first six months of fiscal 2016
were $703 million, a decrease of
$34.1 million or 4.6% from the first
six months of fiscal 2015. Net sales decreased during the first six
months of fiscal year 2016 partially due to an unfavorable foreign
currency impact, net of price increases, of $17.6 million, predominately related to the
weakening of the Euro, Australian Dollar, and Brazilian Real.
Excluding currency impacts, net sales decreased by $16.5 million. The decrease in net sales was
primarily from lower sales of job site products, the timing of
pressure washer shipments, and lower shipments to certain
international regions. Partially offsetting this decrease were
sales from Billy Goat, which was acquired in May 2015, higher shipments of small engines used
on walk mowers, and increased sales of commercial lawn and garden
products. The fiscal 2016 six months consolidated net loss, which
includes restructuring charges, acquisition-related charges,
litigation charges, and the reinstatement of a deferred tax asset,
was $5.6 million or $0.13 per diluted share. The first six months of
fiscal 2015 consolidated net loss, which included restructuring
charges and acquisition-related charges, was $8.3 million or $0.19 per diluted share. The first six months of
fiscal 2016 adjusted consolidated net loss was $0.1 million or $0.01 per diluted share as compared to adjusted
consolidated net income of $2.6
million or $0.05 per diluted
share in the first six months of fiscal 2015.
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 December
|
|
Six Months
Ended December
|
(In
Thousands)
|
|
FY2016
|
|
FY2015
|
|
FY2016
|
|
FY2015
|
Net Sales
|
|
$
262,007
|
|
$
271,704
|
|
$
412,090
|
|
$
424,820
|
|
|
|
|
|
|
|
|
|
Gross Profit as
Reported
|
|
$
65,635
|
|
$
62,896
|
|
$
89,411
|
|
$
90,696
|
Restructuring
Charges
|
|
-
|
|
-
|
|
464
|
|
-
|
Adjusted Gross
Profit
|
|
$
65,635
|
|
$
62,896
|
|
$
89,875
|
|
$
90,696
|
|
|
|
|
|
|
|
|
|
Gross Profit % as
Reported
|
|
25.1%
|
|
23.1%
|
|
21.7%
|
|
21.3%
|
Adjusted Gross Profit
%
|
|
25.1%
|
|
23.1%
|
|
21.8%
|
|
21.3%
|
|
|
|
|
|
|
|
|
|
Segment Income as
Reported
|
|
$
20,782
|
|
$
18,894
|
|
$
28
|
|
$
5,040
|
Restructuring
Charges
|
|
-
|
|
-
|
|
1,354
|
|
-
|
Litigation
Charges
|
|
1,975
|
|
-
|
|
2,825
|
|
-
|
Adjusted Segment
Income
|
|
$
22,757
|
|
$
18,894
|
|
$
4,207
|
|
$
5,040
|
|
|
|
|
|
|
|
|
|
Segment Income % as
Reported
|
|
7.9%
|
|
7.0%
|
|
0.0%
|
|
1.2%
|
Adjusted Segment
Income %
|
|
8.7%
|
|
7.0%
|
|
1.0%
|
|
1.2%
|
Net sales in the second quarter of fiscal 2016 decreased
$10 million or 3.6% from the prior
year. Unfavorable foreign currency, net of offsetting price
increases, negatively impacted net sales by approximately
$2.1 million, largely due to the
weakening of the Euro. Total engine volumes shipped in the quarter
decreased by 0.8% or approximately 15,000 engines, mainly
attributable to lower shipments into Europe and Asia as OEMs have delayed orders and are
expected to produce closer to the season due to caution over the
global economy, including the strength of the U.S. dollar.
Shipments of small engines to North American customers increased in
the quarter due to more normal pacing of walk mower production
following the improved lawn and garden season. In fiscal 2015 walk
mower production was delayed given elevated channel inventory
coming out of the previous season.
Adjusted segment income in the second quarter of fiscal 2016
increased by $3.9 million from the
prior year. The adjusted gross profit percentage was 25.1% in the
second quarter of fiscal 2016, an increase of 200 basis points from
the prior year. Expanded margins on new products, manufacturing
efficiency improvements and slightly lower material costs
contributed to the higher gross profit percentage compared to the
second quarter of fiscal 2015. Manufacturing volume was consistent
year over year during the second quarter. The impact of unfavorable
foreign currency was largely offset by price increases.
Adjusted engineering, selling, general and administrative
expenses for the second quarter of fiscal 2016 decreased
$0.9 million largely due to the
benefit of the movement in foreign currency rates, partially offset
by higher costs related to pension expense.
Products Segment:
|
|
Three Months
Ended December
|
|
Six Months
Ended December
|
(In
Thousands)
|
|
FY2016
|
|
FY2015
|
|
FY2016
|
|
FY2015
|
Net Sales
|
|
$
172,497
|
|
$
199,050
|
|
$
335,038
|
|
$
365,178
|
|
|
|
|
|
|
|
|
|
Gross Profit as
Reported
|
|
$
26,744
|
|
$
25,213
|
|
$
53,888
|
|
$
44,597
|
Restructuring
Charges
|
|
2,647
|
|
6,846
|
|
4,642
|
|
13,692
|
Acquisition Related
Charges
|
|
-
|
|
-
|
|
250
|
|
1,172
|
Adjusted Gross
Profit
|
|
$
29,391
|
|
$
32,059
|
|
$
58,780
|
|
$
59,461
|
|
|
|
|
|
|
|
|
|
Gross Profit % as
Reported
|
|
15.5%
|
|
12.7%
|
|
16.1%
|
|
12.2%
|
Adjusted Gross Profit
%
|
|
17.0%
|
|
16.1%
|
|
17.5%
|
|
16.3%
|
|
|
|
|
|
|
|
|
|
Segment Income (Loss)
as Reported
|
|
$
417
|
|
$
(3,884)
|
|
$
479
|
|
$
(11,997)
|
Restructuring
Charges
|
|
3,019
|
|
7,429
|
|
5,038
|
|
15,230
|
Acquisition Related
Charges
|
|
-
|
|
181
|
|
276
|
|
1,531
|
Adjusted Segment
Income
|
|
$
3,436
|
|
$
3,726
|
|
$
5,793
|
|
$
4,764
|
|
|
|
|
|
|
|
|
|
Segment Income (Loss)
% as Reported
|
|
0.2%
|
|
-2.0%
|
|
0.1%
|
|
-3.3%
|
Adjusted Segment
Income %
|
|
2.0%
|
|
1.9%
|
|
1.7%
|
|
1.3%
|
Net sales in the second quarter of fiscal 2016 decreased
$27 million or 13.3% from the prior
year. Unfavorable foreign currency, net of offsetting price
increases, negatively impacted net sales by approximately
$6.7 million, primarily related to
the Australian Dollar and Brazilian Real. Excluding currency
impacts, net sales decreased by $19.9
million, primarily from lower sales of job site products,
pressure washers, standby generators and snow throwers. Partially
offsetting this decrease were increased sales of high-end
residential and commercial lawn and garden equipment through our
North American dealer channel and the Billy Goat
acquisition.
Adjusted segment income in the second quarter of fiscal 2016
decreased by $0.3 million from the
prior year. The adjusted gross profit percentage of 17.0% in the
second quarter of fiscal 2016 increased 90 basis points year over
year. Adjusted gross margins improved due to manufacturing
efficiencies, including $2.0 million
of incremental savings realized from the previously announced
restructuring actions. Partially offsetting the higher gross profit
margins was lower manufacturing volume, which reduced adjusted
gross profit margins by 80 basis points. Manufacturing throughput
decreased 13% during the second quarter of fiscal 2016 as
production had been elevated in the second quarter of last year to
pre-build products to support the closure of the McDonough plant.
Unfavorable foreign currency, net of offsetting price increases,
negatively impacted gross profit percentage by 50 basis points,
largely due to the weakening of the Australian Dollar and Brazilian
Real.
Adjusted engineering, selling, general and administrative
expenses in the second quarter of fiscal 2016 decreased
$2.3 million from the prior year,
primarily due to the benefit of the movement in foreign currency
rates, partially offset by the Billy Goat acquisition.
Corporate Items:
The effective tax rates for the second quarter and first six
months of fiscal 2016 were 22.2% and 45.4% respectively,
compared to 33.7% and 45.8% for the same respective periods last
year. The tax rates for the second quarter and first six
months of fiscal 2016 and 2015 were primarily impacted by the
re-enactment of the U.S. research and development tax credit and
losses incurred at certain foreign subsidiaries for which the
Company has not recorded benefits. In addition, the tax rate for
the second quarter of fiscal 2016 was impacted by foreign earnings
in jurisdictions with tax rates that vary from the U.S. statutory
rate.
Financial Position:
Net debt at December 27, 2015 was
$257.8 million (total debt of
$318.2 million less $60.4 million of cash), or $2.4 million lower than the $260.3 million (total debt of $312.0 million less $51.7
million of cash) at December 28,
2014. Cash flows used in operating activities for fiscal
2016 were $98.6 million compared to
$114.0 million in fiscal 2015. The
decrease in operating cash flows used was primarily related to
changes in working capital, primarily lower inventory levels.
Inventory levels were elevated last year in the second quarter to
support the McDonough plant closure.
Restructuring:
During the second 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. Products segment
pre-tax restructuring costs for the second quarter and first six
months of fiscal 2016 were $3.0
million and $5.0 million,
respectively. Pre-tax restructuring cost estimates for the Products
segment for fiscal 2016 are $6 million to $8
million. Incremental pre-tax savings related to the Products
segment restructuring actions during the second quarter of fiscal
2016 were $2.0 million. Incremental
cost savings as a result of Products segment restructuring actions
are anticipated to be $5 million to $7
million in fiscal 2016. Engines segment restructuring
actions implemented and completed in the first quarter of fiscal
2016 resulted in pre-tax restructuring costs of $1.4 million.
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
six months of fiscal 2016, the Company repurchased approximately
1,344,000 shares on the open market at an average price of
$18.53 per share. As of December 27, 2015, the Company has remaining
authorization to repurchase up to approximately $15 million of common stock with an expiration
date of June 30, 2016.
Outlook:
Given the first half operating performance, we are increasing
our earnings guidance for fiscal 2016. We now estimate fiscal 2016
net income to be in a range of $56 million
to $63 million or $1.25 to
$1.41 per diluted share, up from previous guidance of
$54 million to $61 million or
$1.20 to $1.36 per diluted share;
prior to the impact of any restructuring actions or additional
share repurchases. Operating margins are estimated to be 5.0% to
5.3%. Compared to last year, operating margins are expected to be
slightly improved as product margin expansion and manufacturing
efficiency improvements are tempered by some economic instability
overseas, including the impacts of a stronger U.S. dollar.
We continue to 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. market 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. 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.
Fiscal 2016 reflects an expected return to a more normalized tax
rate in the range of 31% to 33%, which includes the benefit of
recently passed tax legislation. 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) 259-1024. 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
265811.
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
December
(In Thousands,
except per share data)
(Unaudited)
|
|
|
|
Three Months
Ended December
|
|
Six Months
Ended December
|
|
|
FY2016
|
|
FY2015
|
|
FY2016
|
|
FY2015
|
NET SALES
|
|
$
413,379
|
|
$ 444,287
|
|
$ 702,837
|
|
$
736,916
|
COST OF GOODS
SOLD
|
|
319,036
|
|
349,573
|
|
556,323
|
|
588,035
|
RESTRUCTURING
CHARGES
|
|
2,647
|
|
6,846
|
|
5,106
|
|
13,692
|
Gross
Profit
|
|
91,696
|
|
87,868
|
|
141,408
|
|
135,189
|
|
|
|
|
|
|
|
|
|
ENGINEERING, SELLING,
GENERAL
|
|
|
|
|
|
|
|
|
AND ADMINISTRATIVE
EXPENSES
|
|
72,559
|
|
73,970
|
|
144,693
|
|
144,053
|
RESTRUCTURING
CHARGES
|
|
372
|
|
583
|
|
1,286
|
|
1,538
|
Income (Loss) from
Operations
|
|
18,765
|
|
13,315
|
|
(4,571)
|
|
(10,402)
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
(5,013)
|
|
(4,890)
|
|
(9,549)
|
|
(9,408)
|
OTHER
INCOME
|
|
2,383
|
|
2,052
|
|
3,838
|
|
4,425
|
Income (Loss) before
Income Taxes
|
|
16,135
|
|
10,477
|
|
(10,282)
|
|
(15,385)
|
|
|
|
|
|
|
|
|
|
PROVISION (CREDIT)
FOR INCOME TAXES
|
|
3,575
|
|
3,534
|
|
(4,671)
|
|
(7,049)
|
Net Income
(Loss)
|
|
$
12,560
|
|
$
6,943
|
|
$
(5,611)
|
|
$
(8,336)
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) PER
SHARE
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.28
|
|
$
0.15
|
|
$
(0.13)
|
|
$
(0.19)
|
Diluted
|
|
0.28
|
|
0.15
|
|
(0.13)
|
|
(0.19)
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
SHARES OUTSTANDING
|
|
|
|
|
|
|
|
|
Basic
|
|
43,374
|
|
44,579
|
|
43,426
|
|
44,827
|
Diluted
|
|
43,470
|
|
44,629
|
|
43,426
|
|
44,827
|
Supplemental
International Sales Information
(In
Thousands)
(Unaudited)
|
|
|
|
Three Months
Ended December
|
|
Six Months
Ended December
|
|
|
FY2016
|
|
FY2015
|
|
FY2016
|
|
FY2015
|
International sales
based on product shipment destination
|
|
$
152,676
|
|
$
168,994
|
|
$
244,216
|
|
$
275,048
|
BRIGGS &
STRATTON CORPORATION AND SUBSIDIARIES
Consolidated
Balance Sheets as of the End of December
(In
Thousands) (Unaudited)
|
|
CURRENT
ASSETS:
|
FY2016
|
|
FY2015
|
Cash and Cash
Equivalents
|
$ 60,367
|
|
$ 51,690
|
Accounts Receivable,
Net
|
182,126
|
|
207,883
|
Inventories
|
505,322
|
|
540,117
|
Deferred Income Tax
Asset
|
46,135
|
|
49,263
|
Prepaid Expenses and
Other Current Assets
|
42,150
|
|
46,022
|
Total Current
Assets
|
836,100
|
|
894,975
|
|
|
|
|
OTHER
ASSETS:
|
|
|
|
Goodwill
|
168,032
|
|
159,680
|
Investments
|
34,538
|
|
27,967
|
Debt Issuance Costs,
Net
|
3,250
|
|
4,188
|
Other Intangible
Assets, Net
|
106,392
|
|
98,762
|
Deferred Income Tax
Asset
|
16,321
|
|
382
|
Other Long-Term
Assets, Net
|
15,819
|
|
11,358
|
Total Other
Assets
|
344,352
|
|
302,337
|
|
|
|
|
|
|
|
|
PLANT AND
EQUIPMENT:
|
|
|
|
At Cost
|
1,029,224
|
|
1,040,489
|
Less - Accumulated
Depreciation
|
717,625
|
|
744,711
|
Plant and Equipment,
Net
|
311,599
|
|
295,778
|
|
$ 1,492,051
|
|
$ 1,493,090
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
Accounts
Payable
|
$ 189,624
|
|
$ 181,909
|
Short-Term
Debt
|
93,243
|
|
87,000
|
Accrued
Liabilities
|
140,027
|
|
143,365
|
Total Current
Liabilities
|
422,894
|
|
412,274
|
|
|
|
|
OTHER
LIABILITIES:
|
|
|
|
Accrued Pension
Cost
|
199,597
|
|
114,406
|
Accrued Employee
Benefits
|
22,970
|
|
24,575
|
Accrued
Postretirement Health Care Obligation
|
42,989
|
|
53,626
|
Deferred Income Tax
Liability
|
154
|
|
10,179
|
Other Long-Term
Liabilities
|
47,650
|
|
36,247
|
Long-Term
Debt
|
225,000
|
|
225,000
|
Total Other
Liabilities
|
538,360
|
|
464,033
|
|
|
|
|
SHAREHOLDERS'
INVESTMENT:
|
|
|
|
Common
Stock
|
579
|
|
579
|
Additional Paid-In
Capital
|
72,533
|
|
74,775
|
Retained
Earnings
|
1,053,983
|
|
1,028,722
|
Accumulated Other
Comprehensive Loss
|
(287,678)
|
|
(208,119)
|
Treasury Stock, at
Cost
|
(308,620)
|
|
(279,174)
|
Total Shareholders'
Investment
|
530,797
|
|
616,783
|
|
$ 1,492,051
|
|
$ 1,493,090
|
BRIGGS &
STRATTON CORPORATION AND SUBSIDIARIES
Consolidated
Statements of Cash Flows
(In
Thousands)
(Unaudited)
|
|
|
Six Months Ended
December
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
FY2016
|
|
FY2015
|
Net Loss
|
$
(5,611)
|
|
$
(8,336)
|
Adjustments to
Reconcile Net Loss to Net Cash Used in Operating
Activities:
|
|
|
|
Depreciation and
Amortization
|
26,856
|
|
26,026
|
Stock Compensation
Expense
|
3,204
|
|
3,382
|
Loss on Disposition
of Plant and Equipment
|
249
|
|
132
|
Provision for
Deferred Income Taxes
|
2,435
|
|
8,420
|
Equity in Earnings of
Unconsolidated Affiliates
|
(3,187)
|
|
(3,341)
|
Dividends Received
from Unconsolidated Affiliates
|
4,436
|
|
4,381
|
Non-Cash
Restructuring Charges
|
1,611
|
|
9,190
|
Changes in Operating
Assets and Liabilities:
|
|
|
|
Accounts
Receivable
|
28,924
|
|
24,305
|
Inventories
|
(127,537)
|
|
(151,170)
|
Other Current
Assets
|
3,649
|
|
7,659
|
Accounts Payable,
Accrued Liabilities and Income Taxes
|
(25,552)
|
|
(26,912)
|
Other, Net
|
(8,112)
|
|
(7,768)
|
Net Cash
Used in Operating Activities
|
(98,635)
|
|
(114,032)
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
Additions to Plant
and Equipment
|
(25,843)
|
|
(23,289)
|
Cash Paid for
Acquisitions, Net of Cash Acquired
|
(2,174)
|
|
(62,056)
|
Proceeds Received on
Disposition of Plant and Equipment
|
997
|
|
289
|
Net Cash
Used in Investing Activities
|
(27,020)
|
|
(85,056)
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
Net Borrowings on
Revolver
|
93,243
|
|
87,000
|
Cash Dividends
Paid
|
(5,992)
|
|
(5,718)
|
Stock Option Exercise
Proceeds and Tax Benefits
|
7,230
|
|
3,652
|
Treasury Stock
Purchases
|
(24,903)
|
|
(27,598)
|
Net Cash
Provided by Financing Activities
|
69,578
|
|
57,336
|
|
|
|
|
EFFECT OF EXCHANGE
RATE CHANGES
|
(1,946)
|
|
(1,226)
|
NET DECREASE IN CASH
AND CASH EQUIVALENTS
|
(58,023)
|
|
(142,978)
|
CASH AND CASH
EQUIVALENTS, Beginning
|
118,390
|
|
194,668
|
CASH AND CASH
EQUIVALENTS, Ending
|
$
60,367
|
|
$ 51,690
|
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 tables are reconciliations of the non-GAAP financial
measures:
BRIGGS &
STRATTON CORPORATION AND SUBSIDIARIES
Adjusted Segment
Information for the Three Month Periods Ended
December
(In Thousands,
except per share data)
(Unaudited)
|
|
|
|
Three Months
Ended December
|
|
|
FY2016
Reported
|
|
Adjustments1
|
|
FY2016
Adjusted
|
|
FY2015
Reported
|
|
Adjustments1
|
|
FY2015
Adjusted
|
|
|
|
|
|
|
|
Gross
Profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
Engines
|
|
$
65,635
|
|
$
-
|
|
$
65,635
|
|
$
62,896
|
|
$
-
|
|
$
62,896
|
Products
|
|
26,744
|
|
2,647
|
|
29,391
|
|
25,213
|
|
6,846
|
|
32,059
|
Inter-Segment
Eliminations
|
|
(683)
|
|
-
|
|
(683)
|
|
(241)
|
|
-
|
|
(241)
|
Total
|
|
$
91,696
|
|
$
2,647
|
|
$
94,343
|
|
$
87,868
|
|
$
6,846
|
|
$
94,714
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineering, Selling,
General and Administrative Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Engines
|
|
$
46,214
|
|
$
1,975
|
|
$
44,239
|
|
$
45,161
|
|
$
-
|
|
$
45,161
|
Products
|
|
26,345
|
|
-
|
|
26,345
|
|
28,809
|
|
181
|
|
28,628
|
Total
|
|
$
72,559
|
|
$
1,975
|
|
$
70,584
|
|
$
73,970
|
|
$
181
|
|
$
73,789
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Income (Loss)
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Engines
|
|
$
20,782
|
|
$
1,975
|
|
$
22,757
|
|
$
18,894
|
|
$
-
|
|
$
18,894
|
Products
|
|
417
|
|
3,019
|
|
3,436
|
|
(3,884)
|
|
7,610
|
|
3,726
|
Inter-Segment
Eliminations
|
|
(683)
|
|
-
|
|
(683)
|
|
(241)
|
|
-
|
|
(241)
|
Total
|
|
$
20,516
|
|
$
4,994
|
|
$
25,510
|
|
$
14,769
|
|
$
7,610
|
|
$
22,379
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from
Segment Income (Loss) to Income before Income Taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in Earnings of
Unconsolidated Affiliates
|
|
1,751
|
|
-
|
|
1,751
|
|
1,454
|
|
-
|
|
1,454
|
Income from
Operations
|
|
$
18,765
|
|
$
4,994
|
|
$
23,759
|
|
$
13,315
|
|
$
7,610
|
|
$
20,925
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before Income
Taxes
|
|
16,135
|
|
4,994
|
|
21,129
|
|
10,477
|
|
7,610
|
|
18,087
|
Provision for Income
Taxes
|
|
3,575
|
|
2,417
|
|
5,992
|
|
3,534
|
|
2,664
|
|
6,198
|
Net
Income
|
|
$
12,560
|
|
$
2,577
|
|
$
15,137
|
|
$
6,943
|
|
$
4,946
|
|
$
11,889
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.28
|
|
$
0.06
|
|
$
0.34
|
|
$
0.15
|
|
$
0.11
|
|
$
0.26
|
Diluted
|
|
0.28
|
|
0.06
|
|
0.34
|
|
0.15
|
|
0.11
|
|
0.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
For the second
quarter of fiscal 2016, includes pre-tax restructuring charges of
$3,019 ($1,962 after tax), pre-tax litigation charges of $1,975
($1,284 after tax), and a tax benefit of $669 for reinstatement of
a deferred tax asset related to an investment in marketable
securities. For the second quarter of fiscal 2015, includes pre-tax
restructuring charges of $7,429 ($4,829 after tax) and pre-tax
acquisition-related charges of $181 ($117 after tax).
|
2
|
The Company defines
segment income (loss) as income (loss) from operations plus equity
in earnings of unconsolidated affiliates.
|
BRIGGS &
STRATTON CORPORATION AND SUBSIDIARIES
Adjusted Segment
Information for the Six Month Periods Ended December
(In Thousands,
except per share data)
(Unaudited)
|
|
|
|
Six Months
Ended December
|
|
|
FY2016
Reported
|
|
Adjustments1
|
|
FY2016
Adjusted
|
|
FY2015
Reported
|
|
Adjustments1
|
|
FY2015
Adjusted
|
|
|
|
|
|
|
|
Gross
Profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
Engines
|
|
$
89,411
|
|
$
464
|
|
$
89,875
|
|
$
90,696
|
|
$
-
|
|
$
90,696
|
Products
|
|
53,888
|
|
4,892
|
|
58,780
|
|
44,597
|
|
14,864
|
|
59,461
|
Inter-Segment
Eliminations
|
|
(1,891)
|
|
-
|
|
(1,891)
|
|
(104)
|
|
-
|
|
(104)
|
Total
|
|
$
141,408
|
|
$
5,356
|
|
$
146,764
|
|
$ 135,189
|
|
$
14,864
|
|
$ 150,053
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineering, Selling,
General and Administrative Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Engines
|
|
$
90,514
|
|
$
2,825
|
|
$
87,689
|
|
$
88,267
|
|
$
-
|
|
$
88,267
|
Products
|
|
54,179
|
|
26
|
|
54,153
|
|
55,786
|
|
359
|
|
55,427
|
Total
|
|
$
144,693
|
|
$
2,851
|
|
$
141,842
|
|
$ 144,053
|
|
$
359
|
|
$ 143,694
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Income (Loss)
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Engines
|
|
$
28
|
|
$
4,179
|
|
$
4,207
|
|
$
5,040
|
|
$
-
|
|
$
5,040
|
Products
|
|
479
|
|
5,314
|
|
5,793
|
|
(11,997)
|
|
16,761
|
|
4,764
|
Inter-Segment
Eliminations
|
|
(1,891)
|
|
-
|
|
(1,891)
|
|
(104)
|
|
-
|
|
(104)
|
Total
|
|
$
(1,384)
|
|
$
9,493
|
|
$
8,109
|
|
$
(7,061)
|
|
$
16,761
|
|
$
9,700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from
Segment Income (Loss) to Income (Loss) before Income
Taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in Earnings of
Unconsolidated Affiliates
|
|
3,187
|
|
-
|
|
3,187
|
|
3,341
|
|
-
|
|
3,341
|
Income (Loss) from
Operations
|
|
$
(4,571)
|
|
$
9,493
|
|
$
4,922
|
|
$ (10,402)
|
|
$
16,761
|
|
$
6,359
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) before
Income Taxes
|
|
(10,282)
|
|
9,493
|
|
(789)
|
|
(15,385)
|
|
16,761
|
|
1,376
|
Provision (Credit)
for Income Taxes
|
|
(4,671)
|
|
3,945
|
|
(726)
|
|
(7,049)
|
|
5,866
|
|
(1,183)
|
Net Income
(Loss)
|
|
$
(5,611)
|
|
$
5,548
|
|
$
(63)
|
|
$
(8,336)
|
|
$
10,895
|
|
$
2,559
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) Per
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
(0.13)
|
|
$
0.12
|
|
$
(0.01)
|
|
$
(0.19)
|
|
$
0.24
|
|
$
0.05
|
Diluted
|
|
(0.13)
|
|
0.12
|
|
(0.01)
|
|
(0.19)
|
|
0.24
|
|
0.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
For the first six
months of fiscal 2016, includes pre-tax restructuring charges of
$6,392 ($4,201 after tax), pre-tax acquisition-related charges of
$276 ($180 after tax), pre-tax litigation charges of $2,825 ($1,836
after tax), and a tax benefit of $669 for reinstatement of a
deferred tax asset related to an investment in marketable
securities. For the first six months of fiscal 2015, includes
pre-tax restructuring charges of $15,230 ($9,900 after tax) and
pre-tax acquisition-related charges of $1,531 ($995 after
tax).
|
2
|
The Company defines
segment income (loss) as income (loss) from operations plus equity
in earnings of unconsolidated affiliates.
|
Photo -
http://photos.prnewswire.com/prnh/20120529/CG15020LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/briggs--stratton-corporation-reports-results-for-the-second-quarter-of-fiscal-year-2016-improves-earnings-outlook-300207488.html
SOURCE Briggs & Stratton Corporation