EnerSys
Reports Fourth Quarter and Full Year Fiscal 2014 Results
READING,
Pa., May 28, 2014 /PRNewswire/ -- EnerSys (NYSE: ENS) the global leader in
stored energy solutions for industrial applications, announced today results for
its fourth quarter and full year of fiscal 2014, which ended on March 31,
2014.
Net
earnings attributable to EnerSys stockholders ("Net earnings") for the fourth
quarter of fiscal 2014 were $12.8 million, or $0.26 per diluted share, including
an unfavorable highlighted net of tax impact of $0.92 per share from a charge of
$10.6 million for restructuring plans, legal proceedings charge of $35.7 million
and $0.4 million for fees related to acquisition activities.
The
Net earnings of $0.26 per diluted share, compares to Net earnings per diluted
share of $0.77 for the fourth quarter of fiscal 2013, which included an
unfavorable highlighted net of tax charge of $0.03 per share from a charge of
$1.3 million for restructuring plans.
Excluding
these highlighted items, adjusted Net earnings per diluted share for the fourth
quarter of fiscal 2014, on a non-GAAP basis were $1.18, which exceeds the
guidance of $1.08 to $1.12 per diluted share given by the Company on February 5,
2014. These earnings compare to the prior year fourth quarter adjusted Net
earnings of $0.80 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 fourth quarter of fiscal 2014 were $665.2 million, a 16% increase
from the prior year fourth quarter net sales of $572.2 million. The 16% increase
was the result of a 9% increase in organic volume, a 6% increase from
acquisitions and a 1% increase due to pricing. Sequential quarterly sales
increased 3% from the third quarter of fiscal 2014 net sales of $643.1 million
primarily due to a 2% increase in organic volume improvement and a 1% increase
from acquisitions in Americas and Asia.
The
Company's operating results for its business segments for the fourth quarters of
fiscal 2014 and 2013 are as follows:
EMEA
- Europe, the Middle East and Africa
Net
earnings for the twelve months of fiscal 2014 were $150.3 million or $3.02 per
diluted share, including an unfavorable net of tax impact of $0.94 per share
from a charge of $23.0 million for restructuring plans, legal proceedings charge
of $35.7 million, write-off of goodwill and other non-operating assets of $8.9
million and $1.6 million for fees related to acquisition activities partially
offset by a net tax credit for $22.1 million.
Net
earnings for the twelve months of fiscal 2013 were $166.5 million or $3.42 per
diluted share, including an unfavorable net of tax impact of $0.13 per share
from a charge of $6.1 million for restructuring plans and $0.2 million for fees
related to acquisition activities.
Adjusted
net earnings for the twelve months of fiscal 2014, on a non-GAAP basis, were
$3.96 per diluted share. This compares to the prior year twelve months adjusted
net earnings of $3.55 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 twelve months of fiscal 2014 were $2,474.4 million, an increase of
9% from the net sales of $2,277.6 million in the comparable period in fiscal
2013. The 9% increase was primarily the result of a 5% increase in organic
volume, a 3% increase from acquisitions and a 1% increase due to
pricing.
The
Company's operating results for its business segments for the twelve months of
fiscal years 2014 and 2013, respectively, are as follows:
"We
are pleased with our previously reported full year record earnings of $3.96 per
diluted share on an as-adjusted basis," stated John D. Craig, chairman,
president and chief executive officer of EnerSys. "In addition, our EMEA
employees are to be congratulated for achieving operating earnings of 12.4% for
the fiscal fourth quarter. This is the first time they have exceeded our minimum
operating earnings target of 10%."
Mr.
Craig added, "Our first quarter of fiscal 2015 guidance for non-GAAP adjusted
net earnings per diluted share should be $1.02 to $1.06, which excludes an
expected net charge of $0.07 from our ongoing restructuring programs 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" 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:
(1)
Resulting from pre-tax restructuring charges in EMEA of approximately $12.8
million and $1.8 million in the fourth quarter of fiscal 2014 and 2013,
respectively and approximately $27.1 million and $4.5 million for the twelve
months of fiscal 2014 and 2013, respectively. Included in the restructuring
charges in EMEA for the fourth quarter and fiscal 2014 were exit costs related
to certain operations in Europe of approximately $5.6 million.
(2)
Resulting from pre-tax restructuring charges in Asia of approximately $0.1
million in the fourth quarter and $0.3 million and $2.7 million for the twelve
months of fiscal 2014 and 2013, respectively.
(3)
Resulting from pre-tax legal proceedings charge of $58.2 million as the result
of our previously disclosed unfavorable arbitration ruling.
(4)
Resulting from pre-tax charges for acquisition activity expense of approximately
$0.4 million in Americas in the fourth quarter of fiscal 2014. Pre-tax charges
for acquisition activity expense were approximately $1.5 million in Americas and
$0.4 million in Asia for the twelve months of fiscal 2014 and $0.3 million in
Americas for the twelve months of fiscal 2013.
(5)
Resulting from goodwill impairment charge net of share attributable to
noncontrolling interest, in Asia in the third quarter of fiscal 2014.
(6)
Resulting from pre-tax write off of non-operating assets of $5.0 million and
other miscellaneous charges relating to a previous acquisition of $1.5 million
in the third quarter of fiscal 2014.
(7)
Resulting from changes to certain valuation reserves in EMEA and Asia in the
third quarter of fiscal 2014.
EnerSys
will host a conference call to discuss the Company's fourth quarter fiscal 2014
financial results and provide an overview of the business. The call will
conclude with a question and answer session.
The
call, scheduled for Thursday, May 29, 2014 at 9:00 a.m. Eastern Time, will be
hosted by John D. Craig, Chairman, President & 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, May 29, 2014 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:
6927808
A
replay of the conference call will be available from 12:30 p.m. on May 29, 2014
through midnight on June 28, 2014.
The
replay information is:
Via
Internet: http://www.enersys.com Domestic
Replay Number: 855-859-2056 International
Replay Number: 404-537-3406 Passcode:
6927808
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 world 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 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 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, 2014. No undue
reliance should be placed on any forward-looking statements.
SOURCE
EnerSys
"Safe
Harbor" Statement under the Private Securities Litigation Reform Act of 1995:
Statements in this press release regarding EnerSys's business which are not
historical facts are "forward-looking statements" that involve risks and
uncertainties. For a discussion of such risks and uncertainties, which could
cause actual results to differ from those contained in the forward-looking
statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for
the most recently ended fiscal year.
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