MILWAUKEE, Jan. 25, 2017 /PRNewswire/ -- Briggs &
Stratton Corporation (NYSE:BGG) today announced financial results
for its second fiscal quarter ended January
1, 2017.
- Second quarter net sales were $428
million, up $15 million or
3.6% compared to last year.
- Second quarter net income was $15.3
million, an increase from GAAP net income of $12.6 million and adjusted net income of
$15.1 million last year.
- Second quarter diluted earnings per share were $0.35 compared to $0.28 (GAAP) and $0.34 (adjusted) last year.
- Repurchased $6.5 million in
shares under the share repurchase program during the quarter.
"We are pleased with how the first half of our fiscal year has
played out," said Todd J. Teske,
Chairman, President and Chief Executive Officer. "We have set
a solid foundation on which to deliver our full year projected
sales and profitability growth, which included modest support from
generator sales immediately following Hurricane Matthew. Our
engine placement on lawn and garden products is set for the
upcoming season and is consistent with last season as
anticipated. We continue to introduce new, innovative
residential products and engines that will help people get the job
done." Teske continued, "We have achieved strong sales growth of
commercial engines and products over the past several years and
sustaining this momentum is a key focus for us. We expect that
our new products and engines this year will result in further
success in this market. The new offerings are designed to improve
the productivity of people who use our equipment to earn a
living. This includes the launch of the Oil Guard system on
our Ferris mowers which allows for oil changes every 500 hours
compared to the typical 100 hours resulting in more uptime and more
lawns getting cut. We also continue to offer a strong lineup
for landscapers through our Billy Goat branded products including
our new easy to use sod cutter that we launched for the upcoming
season. Plus, we have introduced product expansions into
larger, light commercial style standby generators, as well as
towable air compressors and generators that are used on job
sites. These new offerings, along with many other actions we
are taking, further demonstrate that we are executing our strategy
of investing in higher value, higher margin products while
diversifying our business. All things considered, we believe that
we are set up for a solid back half of the fiscal year."
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://investors.basco.com.
Also available is a dial-in number to access the call real-time
at (877) 233-9136. A replay will be offered beginning approximately
two hours after the call ends and will be available for one week.
Dial (855) 859-2056 to access the replay.
Non-GAAP Financial Measures
This release refers to non-GAAP financial measures including
"adjusted gross profit", "adjusted engineering, selling, general,
and administrative expenses", "adjusted segment income (loss)",
"adjusted net income (loss)", and "adjusted diluted earnings per
share". Refer to the accompanying financial schedules for
supplemental financial data and corresponding reconciliations of
these non-GAAP financial measures to certain GAAP financial
measures.
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 (including effects from
the U.K.'s decision to exit the European Union); 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 (NYSE: BGG), headquartered in
Milwaukee, Wisconsin, is focused
on providing power to get work done and make people's lives better.
Briggs & Stratton is the world's largest producer of gasoline
engines for outdoor power equipment, and is a leading designer,
manufacturer and marketer of power generation, pressure washers,
lawn and garden, turf care and job site products through its Briggs
& Stratton®, Simplicity®, Snapper®, Ferris®, Vanguard™,
Allmand™, Billy Goat®, Murray®, Branco® and Victa® brands. Briggs
& Stratton products are designed, manufactured, marketed and
serviced in over 100 countries on six continents. For additional
information, please visit www.basco.com and
www.briggsandstratton.com.
BRIGGS &
STRATTON CORPORATION AND SUBSIDIARIES
|
Consolidated
Statements of Operations for the Periods Ended
December
|
(In Thousands,
except per share data)
|
|
|
|
|
Three Months
Ended December
|
|
Six Months
Ended December
|
|
|
FY2017
|
|
FY2016
|
|
FY2017
|
|
FY2016
|
NET SALES
|
|
$428,236
|
|
$413,379
|
|
$715,034
|
|
$702,837
|
COST OF GOODS
SOLD
|
|
332,830
|
|
319,036
|
|
567,106
|
|
556,323
|
RESTRUCTURING
CHARGES
|
|
-
|
|
2,647
|
|
-
|
|
5,106
|
Gross
Profit
|
|
95,406
|
|
91,696
|
|
147,928
|
|
141,408
|
|
|
|
|
|
|
|
|
|
ENGINEERING, SELLING,
GENERAL AND ADMINISTRATIVE
EXPENSES
|
|
73,032
|
|
72,559
|
|
145,095
|
|
144,693
|
RESTRUCTURING
CHARGES
|
|
-
|
|
372
|
|
-
|
|
1,286
|
EQUITY IN EARNINGS OF
UNCONSOLIDATED AFFILIATES (1)
|
|
3,011
|
|
-
|
|
6,239
|
|
-
|
Income (Loss) from
Operations
|
|
25,385
|
|
18,765
|
|
9,072
|
|
(4,571)
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
(5,133)
|
|
(5,013)
|
|
(9,638)
|
|
(9,549)
|
OTHER
INCOME
|
|
381
|
|
2,383
|
|
836
|
|
3,838
|
Income (Loss) before
Income Taxes
|
|
20,633
|
|
16,135
|
|
270
|
|
(10,282)
|
|
|
|
|
|
|
|
|
|
PROVISION (CREDIT)
FOR INCOME TAXES
|
|
5,382
|
|
3,575
|
|
(833)
|
|
(4,671)
|
Net Income
(Loss)
|
|
$
15,251
|
|
$
12,560
|
|
$
1,103
|
|
$
(5,611)
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) PER
SHARE
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.35
|
|
$
0.28
|
|
$
0.02
|
|
$
(0.13)
|
Diluted
|
|
0.35
|
|
$
0.28
|
|
0.02
|
|
(0.13)
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
SHARES OUTSTANDING
|
|
|
|
|
|
|
|
|
Basic
|
|
42,081
|
|
43,374
|
|
42,287
|
|
43,426
|
Diluted
|
|
42,142
|
|
43,470
|
|
42,337
|
|
43,426
|
|
|
1
|
Beginning in the
third quarter of fiscal 2016, the Company classifies its equity in
earnings of unconsolidated affiliates within Income from
Operations. Prior to the third quarter of fiscal 2016, equity in
earnings from unconsolidated affiliates is classified in Other
Income. See Adjusted Segment Information tables for prior year
equity in earnings of unconsolidated affiliates amounts.
|
Supplemental
International Sales Information
|
(In
Thousands)
|
|
|
|
Three Months
Ended December
|
|
Six Months
Ended December
|
|
FY2017
|
|
FY2016
|
|
FY2017
|
|
FY2016
|
International sales
based on product shipment destination
|
$158,727
|
|
$152,676
|
|
$268,614
|
|
$244,216
|
BRIGGS &
STRATTON CORPORATION AND SUBSIDIARIES
|
Consolidated
Balance Sheets as of the End of December
|
(In
Thousands)
|
|
|
CURRENT
ASSETS:
|
FY2017
|
|
FY2016
|
Cash and Cash
Equivalents
|
$
47,327
|
|
$
60,367
|
Accounts Receivable,
Net
|
222,768
|
|
182,126
|
Inventories
|
485,851
|
|
505,322
|
Deferred Income Tax
Asset
|
43,150
|
|
46,135
|
Prepaid Expenses and
Other Current Assets
|
36,010
|
|
42,150
|
Total Current
Assets
|
835,106
|
|
836,100
|
|
|
|
|
OTHER
ASSETS:
|
|
|
|
Goodwill
|
161,287
|
|
168,032
|
Investments
|
48,298
|
|
34,538
|
Other Intangible
Assets, Net
|
102,324
|
|
106,392
|
Deferred Income Tax
Asset
|
44,961
|
|
16,321
|
Other Long-Term
Assets, Net
|
20,171
|
|
16,880
|
Total Other
Assets
|
377,041
|
|
342,163
|
|
|
|
|
|
|
|
|
PLANT AND
EQUIPMENT:
|
|
|
|
At Cost
|
1,077,452
|
|
1,029,224
|
Less - Accumulated
Depreciation
|
746,289
|
|
717,625
|
Plant and Equipment,
Net
|
331,163
|
|
311,599
|
|
$
1,543,310
|
|
$
1,489,862
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
Accounts
Payable
|
$
186,291
|
|
$
189,624
|
Short-Term
Debt
|
132,100
|
|
93,243
|
Accrued
Liabilities
|
127,411
|
|
140,027
|
Total Current
Liabilities
|
445,802
|
|
422,894
|
|
|
|
|
OTHER
LIABILITIES:
|
|
|
|
Accrued Pension
Cost
|
301,551
|
|
199,597
|
Accrued Employee
Benefits
|
22,819
|
|
22,970
|
Accrued
Postretirement Health Care Obligation
|
33,658
|
|
42,989
|
Other Long-Term
Liabilities
|
43,797
|
|
47,804
|
Long-Term
Debt
|
221,570
|
|
222,811
|
Total Other
Liabilities
|
623,395
|
|
536,171
|
|
|
|
|
SHAREHOLDERS'
INVESTMENT:
|
|
|
|
Common
Stock
|
579
|
|
579
|
Additional Paid-In
Capital
|
68,144
|
|
72,533
|
Retained
Earnings
|
1,063,500
|
|
1,053,983
|
Accumulated Other
Comprehensive Loss
|
(336,952)
|
|
(287,678)
|
Treasury Stock, at
Cost
|
(321,158)
|
|
(308,620)
|
Total Shareholders'
Investment
|
474,113
|
|
530,797
|
|
$
1,543,310
|
|
$
1,489,862
|
BRIGGS &
STRATTON CORPORATION AND SUBSIDIARIES
|
Consolidated
Statements of Cash Flows
|
(In
Thousands)
|
|
|
|
Six Months Ended
December
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
FY2017
|
|
FY2016
|
Net Income
(Loss)
|
$
1,103
|
|
$
(5,611)
|
Adjustments to
Reconcile Net Income (Loss) to Net Cash Used in Operating
Activities:
|
|
|
|
Depreciation and
Amortization
|
28,156
|
|
26,856
|
Stock Compensation
Expense
|
2,826
|
|
3,204
|
Loss on Disposition
of Plant and Equipment
|
331
|
|
249
|
Provision for
Deferred Income Taxes
|
4,315
|
|
2,435
|
Equity in Earnings of
Unconsolidated Affiliates
|
(6,239)
|
|
(3,187)
|
Dividends Received
from Unconsolidated Affiliates
|
8,186
|
|
4,436
|
Non-Cash
Restructuring Charges
|
-
|
|
1,611
|
Changes in Operating
Assets and Liabilities:
|
|
|
|
Accounts
Receivable
|
(36,077)
|
|
28,924
|
Inventories
|
(99,787)
|
|
(127,537)
|
Other Current
Assets
|
1,203
|
|
3,649
|
Accounts Payable,
Accrued Liabilities and Income Taxes
|
(25,089)
|
|
(25,552)
|
Other, Net
|
(7,240)
|
|
(8,112)
|
Net Cash
Used in Operating Activities
|
(128,312)
|
|
(98,635)
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
Capital
Expenditures
|
(31,163)
|
|
(25,843)
|
Cash Paid for
Acquisitions, Net of Cash Acquired
|
-
|
|
(2,174)
|
Proceeds on Sale of
Investment in Marketable Securities
|
3,343
|
|
-
|
Proceeds Received on
Disposition of Plant and Equipment
|
1,009
|
|
997
|
Net Cash
Used in Investing Activities
|
(26,811)
|
|
(27,020)
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
Net Borrowings on
Revolver
|
132,100
|
|
93,243
|
Cash Dividends
Paid
|
(6,039)
|
|
(5,992)
|
Stock Option Exercise
Proceeds and Tax Benefits
|
4,243
|
|
7,230
|
Treasury Stock
Purchases
|
(15,153)
|
|
(24,903)
|
Payment of
Acquisition Contingent Liability
|
(813)
|
|
-
|
Net Cash
Provided by Financing Activities
|
114,338
|
|
69,578
|
|
|
|
|
EFFECT OF EXCHANGE
RATE CHANGES
|
(1,727)
|
|
(1,946)
|
NET DECREASE IN CASH
AND CASH EQUIVALENTS
|
(42,512)
|
|
(58,023)
|
CASH AND CASH
EQUIVALENTS, Beginning
|
89,839
|
|
118,390
|
CASH AND CASH
EQUIVALENTS, Ending
|
$
47,327
|
|
$
60,367
|
Liquidity and Capital Resources:
Net debt at January 1, 2017 was
$307.9 million (total debt, excluding
debt issuance costs, of $355.2
million less $47.3 million of
cash), or $50.0 million higher than
net debt of $257.9 million (total
debt, excluding debt issuance costs, of $318.2 million less $60.4
million of cash) at December 27,
2015.
Cash flows used in operating activities for the first six months
of fiscal 2017 were $128.3 million
compared to $98.6 million for the
same period in fiscal 2016. The increase in cash used in operating
activities was primarily related to changes in working capital,
including higher accounts receivable due to timing of sales year
over year.
During the first six months of fiscal 2017, the Company
repurchased approximately 787,000 shares on the open market at an
average price of $19.25 per share. As
of January 1, 2017, the Company had
remaining authorization to repurchase up to approximately
$35 million of common stock with an
expiration date of June 29, 2018.
SUPPLEMENTAL
SEGMENT INFORMATION AND OUTLOOK
|
|
|
Engines
Segment:
|
|
|
|
Three Months
Ended December
|
|
Six Months
Ended December
|
(In
Thousands)
|
|
FY2017
|
|
FY2016
|
|
FY2017
|
|
FY2016
|
Net Sales
|
|
$
260,737
|
|
$ 262,007
|
|
$
415,235
|
|
$ 412,090
|
|
|
|
|
|
|
|
|
|
Gross Profit as
Reported
|
|
$
61,573
|
|
$
65,635
|
|
$
92,559
|
|
$
89,411
|
Restructuring
Charges
|
|
-
|
|
-
|
|
-
|
|
464
|
Adjusted Gross
Profit
|
|
$
61,573
|
|
$
65,635
|
|
$
92,559
|
|
$
89,875
|
|
|
|
|
|
|
|
|
|
Gross Profit % as
Reported
|
|
23.6%
|
|
25.1%
|
|
22.3%
|
|
21.7%
|
Adjusted Gross Profit
%
|
|
23.6%
|
|
25.1%
|
|
22.3%
|
|
21.8%
|
|
|
|
|
|
|
|
|
|
Segment Income as
Reported
|
|
$
17,922
|
|
$
20,782
|
|
$
6,269
|
|
$
28
|
Restructuring
Charges
|
|
-
|
|
-
|
|
-
|
|
1,354
|
Litigation
Charges
|
|
-
|
|
1,975
|
|
-
|
|
2,825
|
Adjusted Segment
Income
|
|
$
17,922
|
|
$
22,757
|
|
$
6,269
|
|
$
4,207
|
|
|
|
|
|
|
|
|
|
Segment Income % as
Reported
|
|
6.9%
|
|
7.9%
|
|
1.5%
|
|
0.0%
|
Adjusted Segment Income
%
|
|
6.9%
|
|
8.7%
|
|
1.5%
|
|
1.0%
|
Second Quarter Highlights
- Starting in fiscal 2017, we implemented new sales terms for
engines shipped to overseas customers, which result in earlier
revenue recognition compared to the terms we used during previous
fiscal years. The change in terms caused units sold and net sales
to be higher by approximately 50,000 units and $5 million, respectively, in the second quarter
of fiscal 2017.
- Using comparable sales terms, engine volumes sold decreased by
2% or approximately 40,000 engines in the second quarter of fiscal
2017. The decrease is due to timing of sales as we continue to
anticipate that our customers will produce later in fiscal 2017
compared to fiscal 2016.
- Gross profit percentage decreased due to 8% lower manufacturing
volume as well as unfavorable foreign exchange, mainly due to a
decline in the value of the euro. Manufacturing efficiency improved
compared to the prior year.
- Investment in our ERP system upgrade and higher pension expense
were the primary drivers for ESG&A expenses to increase by
$1.5 million compared to last year
(after adjusting to exclude last year's litigation
settlement).
- Equity in earnings of unconsolidated affiliates increased by
$0.7 million largely due to the
increased ownership in our service parts distributor.
Products
Segment:
|
|
|
|
Three Months
Ended December
|
|
Six Months
Ended December
|
(In
Thousands)
|
|
FY2017
|
|
FY2016
|
|
FY2017
|
|
FY2016
|
Net Sales
|
|
$
190,701
|
|
$ 172,497
|
|
$
341,497
|
|
$ 335,038
|
|
|
|
|
|
|
|
|
|
Gross Profit as
Reported
|
|
$
33,178
|
|
$
26,744
|
|
$
56,129
|
|
$
53,888
|
Restructuring
Charges
|
|
-
|
|
2,647
|
|
-
|
|
4,642
|
Acquisition Related
Charges
|
|
-
|
|
-
|
|
-
|
|
250
|
Adjusted Gross
Profit
|
|
$
33,178
|
|
$
29,391
|
|
$
56,129
|
|
$
58,780
|
|
|
|
|
|
|
|
|
|
Gross Profit % as
Reported
|
|
17.4%
|
|
15.5%
|
|
16.4%
|
|
16.1%
|
Adjusted Gross Profit
%
|
|
17.4%
|
|
17.0%
|
|
16.4%
|
|
17.5%
|
|
|
|
|
|
|
|
|
|
Segment Income as
Reported
|
|
$
6,808
|
|
$
417
|
|
$
3,563
|
|
$
479
|
Restructuring
Charges
|
|
-
|
|
3,019
|
|
-
|
|
5,038
|
Acquisition Related
Charges
|
|
-
|
|
-
|
|
-
|
|
276
|
Adjusted Segment
Income
|
|
$
6,808
|
|
$
3,436
|
|
$
3,563
|
|
$
5,793
|
|
|
|
|
|
|
|
|
|
Segment Income % as
Reported
|
|
3.6%
|
|
0.2%
|
|
1.0%
|
|
0.1%
|
Adjusted Segment Income
%
|
|
3.6%
|
|
2.0%
|
|
1.0%
|
|
1.7%
|
Second Quarter Highlights
- Net sales increased by $18.2
million, primarily due to higher shipments of portable
generators due to Hurricane Matthew, higher sales of commercial
lawn and garden equipment, and timing of international
shipments.
- Gross profit percentage increased by 190 basis points. Adjusted
gross profit percentage increased 40 basis points, primarily due to
favorable sales mix driven by our focus on selling higher margin
lawn and garden equipment as well as the benefit of Hurricane
Matthew, partially offset by unfavorable foreign exchange mainly
due to the Australian dollar.
- Investment in our ERP system upgrade and higher marketing
expenses were the primary drivers for ESG&A expenses to
increase by $1.0 million compared to
last year (after adjusting to exclude restructuring charges in the
prior year).
- Equity in earnings of unconsolidated affiliates increased by
$0.6 million due to the increased
ownership in our service parts distributor.
Outlook:
Our outlook for fiscal 2017 remains unchanged from previous
guidance. We increased our full year guidance in October to
account for the immediate impact of selling portable generators to
the areas impacted following Hurricane Matthew. Given the
relatively lower severity of the storm at landfall and the related
lower impact of power outages, we have not observed a significant
change in generator sales that we can attribute to Hurricane
Matthew that would cause us to further change our guidance for
generator sales.
Summary of fiscal 2017 guidance:
- Net sales are expected to be in a range of $1.86 billion to $1.90 billion. We continue to
expect that the U.S. residential lawn and garden market will
improve by 1% to 4% including expected improvements in the housing
market and seasonal spring weather in key markets. We also continue
to expect that our engine customers will produce later in the
season than they did a year ago which may shift engine sales
between quarters. Further, as noted earlier we experienced a shift
in certain foreign sales from the second half of the fiscal year to
the first half of the fiscal year due to a change in our sales
terms.
- Net income is expected to be in a range of $57 million to $64 million or $1.31 to $1.46 per diluted share (prior to the
impact of any share repurchases).
- Operating margins are expected to be approximately 5.5% to
5.8%. Adjusted operating margins for fiscal 2016 were 5.0% (2.6%
GAAP), which included the equity in earnings of unconsolidated
affiliates for the second half of the fiscal year (5.2% if equity
in earnings of unconsolidated affiliates had been included for the
full year (2.7% GAAP)).
- The effective tax rate is expected to be in a range of 31% to
33%.
- Capital expenditures are expected to be $70 million to $80 million.
Non-GAAP Financial Measures
Briggs & Stratton Corporation 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)
|
|
|
|
|
Three Months
Ended December
|
|
|
FY2017
Reported
|
|
Adjustments
|
|
FY2017
Adjusted
|
|
FY2016
Reported
|
|
Adjustments1
|
|
FY2016
Adjusted
|
|
|
|
|
|
|
|
Gross
Profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
Engines
|
|
$
61,573
|
|
$
-
|
|
$
61,573
|
|
$
65,635
|
|
$
-
|
|
$
65,635
|
Products
|
|
33,178
|
|
-
|
|
33,178
|
|
26,744
|
|
2,647
|
|
29,391
|
Inter-Segment
Eliminations
|
|
655
|
|
-
|
|
655
|
|
(683)
|
|
-
|
|
(683)
|
Total
|
|
$
95,406
|
|
$
-
|
|
$
95,406
|
|
$
91,696
|
|
$
2,647
|
|
$
94,343
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineering, Selling,
General and Administrative Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Engines
|
|
$
45,706
|
|
$
-
|
|
$
45,706
|
|
$
46,214
|
|
$
1,975
|
|
$
44,239
|
Products
|
|
27,326
|
|
-
|
|
27,326
|
|
26,345
|
|
-
|
|
26,345
|
Total
|
|
$
73,032
|
|
$
-
|
|
$
73,032
|
|
$
72,559
|
|
$
1,975
|
|
$
70,584
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Income (Loss)
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Engines
|
|
$
17,922
|
|
$
-
|
|
$
17,922
|
|
$
20,782
|
|
$
1,975
|
|
$
22,757
|
Products
|
|
6,808
|
|
-
|
|
6,808
|
|
417
|
|
3,019
|
|
3,436
|
Inter-Segment
Eliminations
|
|
655
|
|
-
|
|
655
|
|
(683)
|
|
-
|
|
(683)
|
Total
|
|
$
25,385
|
|
$
-
|
|
$
25,385
|
|
$
20,516
|
|
$
4,994
|
|
$
25,510
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from
Segment Income (Loss) to Income before Income Taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in Earnings of
Unconsolidated Affiliates (2)
|
|
-
|
|
-
|
|
-
|
|
1,751
|
|
-
|
|
1,751
|
Income from
Operations
|
|
$
25,385
|
|
$
-
|
|
$
25,385
|
|
$
18,765
|
|
$
4,994
|
|
$
23,759
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before Income
Taxes
|
|
20,633
|
|
-
|
|
20,633
|
|
16,135
|
|
4,994
|
|
21,129
|
Provision for Income
Taxes
|
|
5,382
|
|
-
|
|
5,382
|
|
3,575
|
|
2,417
|
|
5,992
|
Net Income
|
|
$
15,251
|
|
$
-
|
|
$
15,251
|
|
$
12,560
|
|
$
2,577
|
|
$
15,137
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.35
|
|
$
-
|
|
$
0.35
|
|
$
0.28
|
|
$
0.06
|
|
$
0.34
|
Diluted
|
|
0.35
|
|
-
|
|
0.35
|
|
0.28
|
|
0.06
|
|
0.34
|
|
|
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.
|
|
|
2
|
For all periods
presented, equity in earnings of unconsolidated affiliates is
included in segment income (loss). Beginning with the third quarter
of fiscal 2016, the Company classifies its equity in earnings of
unconsolidated affiliates within income from operations. Prior to
the third quarter of fiscal 2016, equity in earnings of
unconsolidated affiliates is classified in other income.
|
BRIGGS &
STRATTON CORPORATION AND SUBSIDIARIES
|
Adjusted Segment
Information for the Six Month Periods Ended December
|
(In Thousands,
except per share data)
|
|
|
|
|
Six Months
Ended December
|
|
|
FY2017
Reported
|
|
Adjustments
|
|
FY2017
Adjusted
|
|
FY2016
Reported
|
|
Adjustments1
|
|
FY2016
Adjusted
|
|
|
|
|
|
|
|
Gross
Profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
Engines
|
|
$
92,559
|
|
$
-
|
|
$
92,559
|
|
$
89,411
|
|
$
464
|
|
$
89,875
|
Products
|
|
56,129
|
|
-
|
|
56,129
|
|
53,888
|
|
4,892
|
|
58,780
|
Inter-Segment
Eliminations
|
|
(760)
|
|
-
|
|
(760)
|
|
(1,891)
|
|
-
|
|
(1,891)
|
Total
|
|
$
147,928
|
|
$
-
|
|
$
147,928
|
|
$
141,408
|
|
$
5,356
|
|
$
146,764
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineering, Selling,
General and Administrative Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Engines
|
|
$
90,161
|
|
$
-
|
|
$
90,161
|
|
$
90,514
|
|
$
2,825
|
|
$
87,689
|
Products
|
|
54,934
|
|
-
|
|
54,934
|
|
54,179
|
|
26
|
|
54,153
|
Total
|
|
$
145,095
|
|
$
-
|
|
$
145,095
|
|
$
144,693
|
|
$
2,851
|
|
$
141,842
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Income (Loss)
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Engines
|
|
$
6,269
|
|
$
-
|
|
$
6,269
|
|
$
28
|
|
$
4,179
|
|
$
4,207
|
Products
|
|
3,563
|
|
-
|
|
3,563
|
|
479
|
|
5,314
|
|
5,793
|
Inter-Segment
Eliminations
|
|
(760)
|
|
-
|
|
(760)
|
|
(1,891)
|
|
-
|
|
(1,891)
|
Total
|
|
$
9,072
|
|
$
-
|
|
$
9,072
|
|
$
(1,384)
|
|
$
9,493
|
|
$
8,109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from
Segment Income (Loss) to Income before Income Taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in Earnings of
Unconsolidated Affiliates (2)
|
|
-
|
|
-
|
|
-
|
|
3,187
|
|
-
|
|
3,187
|
Income (Loss) from
Operations
|
|
$
9,072
|
|
$
-
|
|
$
9,072
|
|
$
(4,571)
|
|
$
9,493
|
|
$
4,922
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) before
Income Taxes
|
|
270
|
|
-
|
|
270
|
|
(10,282)
|
|
9,493
|
|
(789)
|
Provision (Credit)
for Income Taxes
|
|
(833)
|
|
-
|
|
(833)
|
|
(4,671)
|
|
3,945
|
|
(726)
|
Net Income
(Loss)
|
|
$
1,103
|
|
$
-
|
|
$
1,103
|
|
$
(5,611)
|
|
$
5,548
|
|
$
(63)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) Per
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.02
|
|
$
-
|
|
$
0.02
|
|
$
(0.13)
|
|
$
0.12
|
|
$
(0.01)
|
Diluted
|
|
0.02
|
|
-
|
|
0.02
|
|
(0.13)
|
|
0.12
|
|
(0.01)
|
|
|
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.
|
|
|
2
|
For all periods
presented, equity in earnings of unconsolidated affiliates is
included in segment income (loss). Beginning with the third quarter
of fiscal 2016, the Company classifies its equity in earnings of
unconsolidated affiliates within income from operations. Prior to
the third quarter of fiscal 2016, equity in earnings of
unconsolidated affiliates is classified in other income.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/briggs--stratton-corporation-reports-fiscal-2017-second-quarter-results-300396934.html
SOURCE Briggs & Stratton Corporation