EnerSys Reports First Quarter Fiscal 2019 Results
READING, Pa., Aug. 08, 2018 (GLOBE NEWSWIRE) -
EnerSys (NYSE:ENS), the global leader in stored energy solutions for industrial applications, announced today results for its first quarter of fiscal 2019, which ended on July 1, 2018.
Net earnings attributable to EnerSys stockholders (“Net earnings”) for the first quarter of fiscal 2019 were $45.9 million, or $1.08 per diluted share, which included an unfavorable highlighted net of tax impact of $3.8 million or $0.09 per share from highlighted items described in further detail in the tables shown below, reconciling non-GAAP adjusted financial measures to reported amounts.
Net earnings for the first quarter of fiscal 2018 were $48.2 million, or $1.09 per diluted share, which included an unfavorable highlighted net of tax impact of $1.2 million or $0.03 per share from highlighted items described in further detail in the tables shown below.
Excluding these highlighted items, adjusted Net earnings per diluted share for the first quarter of fiscal 2019, on a non-GAAP basis, were $1.17 which met the guidance of $1.15 to $1.19 per diluted share given by the Company on May 30, 2018. These earnings compare to the prior year first quarter adjusted Net earnings of $1.12 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 ended July 1, 2018 and July 2, 2017.
Net sales for the first quarter of fiscal 2019 were $670.9 million, an increase of 8% from the prior year first quarter net sales of $622.6 million and a 2% sequential quarterly decrease from the fourth quarter of fiscal 2018 net sales of $683.0 million. The increase in the current quarter compared to the prior year quarter was the result of a 5% increase in organic volume, a 2% increase in pricing and a 1% increase in foreign currency translation impact. The 2% sequential quarterly decrease was due to a 3% decrease in foreign currency translation impact partially offset by a 1% increase in pricing.
The Company’s operating results for its business segments for the first quarters of fiscal 2019 and 2018 are as follows:
“Demand for our premium products continues to be strong, especially in the USA,” stated David M. Shaffer, President and Chief Executive Officer of EnerSys. “If the cost of lead remains at current levels, we expect the resulting lower commodity costs, commencing after our second fiscal quarter, combined with continued strong demand will lead to higher profitability starting early in our second half of fiscal 2019.” Mr. Shaffer added, “Our second quarter guidance for non-GAAP adjusted net earnings per diluted share is between $1.14 to $1.18, which excludes an expected charge of $0.06 from our restructuring programs, ERP system implementation and acquisition expenses.”
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” as applicable, 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 significant legal proceedings, ERP system implementation and tax valuation allowance changes, including those related to the adoption of the Tax Cuts and Jobs Act. 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 as helpful a measure of the performance of our underlying business, particularly in light of their unpredictable nature and are difficult to forecast.
Income tax effects of non-GAAP adjustments are calculated using the applicable statutory tax rate for the jurisdictions in which the charges (benefits) are incurred, while taking into consideration any valuation allowances. For those items which are non-taxable, the tax expense (benefit) is calculated at 0%.
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:
EnerSys also announced that it will host a conference call to discuss the Company's first quarter fiscal year 2019 financial results and provide an overview of the business. The call will conclude with a question and answer session.
The call, scheduled for Thursday, August 9, 2018 at 9:00 a.m., Eastern Time, will be hosted by David M. Shaffer, President and 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 website at http://www.enersys.com.
The conference call information is:
Date: Thursday, August 9, 2018
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
A replay of the conference call will be available from 12:00 p.m. on August 9, 2018 through midnight on September 8, 2018.
The replay information is:
Via Internet: http://www.enersys.com
Domestic Replay Number: 855-859-2056
International Replay Number: 404-537-3406
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 or by emailing firstname.lastname@example.org; 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 in 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, commodity prices, 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 7. Management's Discussion and Analysis of Financial Condition and Results of Operations,” including “Forward-Looking Statements,” set forth in EnerSys’ Annual Report on Form 10-K for the fiscal year ended March 31, 2018. No undue reliance should be placed on any forward-looking statements.
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