MILWAUKEE, April 20, 2017 /PRNewswire/ -- Briggs &
Stratton Corporation (NYSE:BGG) today announced financial results
for its third fiscal quarter ended April 2,
2017.
- Fiscal third quarter net sales were $597
million, a decrease of $7
million or 1.1% compared to last year. Strong sales growth
in commercial engines and products was offset by a sales decline in
small engines due to OEM customers producing closer to the season,
as anticipated.
- Fiscal third quarter gross profit margin of 22.6% increased
from GAAP gross profit margin of 21.1% and adjusted gross profit
margin of 21.2%, principally on a more favorable product mix,
including a higher proportion of commercial engines and commercial
products, the positive impact of innovative new engines, and
improvements in manufacturing efficiencies.
- Third quarter net income was $35.8
million, an increase from GAAP net income of $26.8 million and adjusted net income of
$34.9 million last year.
- Third quarter diluted earnings per share were $0.83, an increase from $0.61 (GAAP) and $0.80 (adjusted) last year.
- Repurchased $2.8 million in
shares under the share repurchase program during the quarter.
"Our focus on growing higher margin commercial engines and
products has been an important factor in driving our improved
profitability over the last few years and we continued to make
progress during our fiscal third quarter," said Todd J. Teske, Chairman, President and Chief
Executive Officer. "The hard work over the past several
years to reposition our product portfolio and manufacturing
footprint in order to place the proper focus on commercial growth
of engines, lawn and turf care and job site products is showing
results as we have achieved solid growth driven in part by new
product introductions. These markets present an attractive
opportunity due to their size and anticipated growth rates. We
believe that we have the brands, the products and the distribution
network to grow our commercial portfolio in excess of the
market." Teske continued, "At the same time, we continue to
introduce new, innovative residential products and engines that
will help homeowners get the job done. Our engine
placement on residential lawnmowers again leads the market and
positions us well for improvements across the housing market.
As we have indicated throughout this fiscal year, both OEMs and
retailers have been cautious in their ordering activity, choosing
to produce and take inventory closer to the season. We saw
this particularly in the most recently completed quarter. We
remain optimistic that the upcoming season will reflect market
growth in the U.S. of 1-4% over the course of the mowing season.
Together, the base provided by our market-leading residential
products combined with the higher margin, higher growth commercial
products positions us well for profitable growth."
Outlook:
Our outlook for fiscal 2017 remains unchanged from previous
guidance, except for higher capital expenditures. Capital
expenditures are now expected to be $80
million to $90 million compared to previous guidance of
$70 million to $80 million.
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% over the course of the season. Customers have
taken a more cautious approach to building inventory for the season
as we anticipated. It is possible engine sales may shift beyond the
fourth quarter of fiscal 2017 depending on the pace with which the
season breaks.
- 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%.
- The effective tax rate is expected to be in a range of 31% to
33%.
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 March
|
(In Thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended March
|
|
Nine Months
Ended March
|
|
|
|
FY2017
|
|
FY2016
|
|
FY2017
|
|
FY2016
|
|
NET SALES
|
|
$596,965
|
|
$603,750
|
|
$1,311,998
|
|
$1,306,587
|
|
COST OF GOODS
SOLD
|
|
462,194
|
|
476,075
|
|
1,029,299
|
|
1,032,398
|
|
RESTRUCTURING
CHARGES
|
|
-
|
|
580
|
|
-
|
|
5,686
|
|
Gross
Profit
|
|
134,771
|
|
127,095
|
|
282,699
|
|
268,503
|
|
|
|
|
|
|
|
|
|
|
|
ENGINEERING, SELLING,
GENERAL
|
|
|
|
|
|
|
|
|
|
AND ADMINISTRATIVE
EXPENSES
|
|
78,279
|
|
75,288
|
|
223,373
|
|
219,980
|
|
RESTRUCTURING
CHARGES
|
|
-
|
|
144
|
|
-
|
|
1,430
|
|
GOODWILL
IMPAIRMENT
|
|
-
|
|
7,651
|
|
-
|
|
7,651
|
|
EQUITY IN EARNINGS OF
UNCONSOLIDATED AFFILIATES (1)
|
|
1,079
|
|
1,105
|
|
7,318
|
|
1,105
|
|
Income from
Operations
|
|
57,571
|
|
45,117
|
|
66,644
|
|
40,547
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
(5,521)
|
|
(5,593)
|
|
(15,159)
|
|
(15,142)
|
|
OTHER
INCOME
|
|
844
|
|
511
|
|
1,679
|
|
4,348
|
|
Income before Income
Taxes
|
|
52,894
|
|
40,035
|
|
53,164
|
|
29,753
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR INCOME
TAXES
|
|
17,075
|
|
13,212
|
|
16,242
|
|
8,541
|
|
Net Income
|
|
$
35,819
|
|
$
26,823
|
|
$
36,922
|
|
$
21,212
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.83
|
|
$
0.62
|
|
$
0.86
|
|
$
0.48
|
|
Diluted
|
|
0.83
|
|
0.61
|
|
0.86
|
|
0.48
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
SHARES OUTSTANDING
|
|
|
|
|
|
|
|
|
|
Basic
|
|
42,076
|
|
42,621
|
|
42,217
|
|
43,158
|
|
Diluted
|
|
42,175
|
|
42,889
|
|
42,271
|
|
43,377
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 March
|
|
Nine Months
Ended March
|
|
|
FY2017
|
|
FY2016
|
|
FY2017
|
|
FY2016
|
International sales
based on product shipment destination
|
|
$171,565
|
|
$160,277
|
|
$440,179
|
|
$404,493
|
BRIGGS &
STRATTON CORPORATION AND SUBSIDIARIES
|
Consolidated
Balance Sheets as of the End of March
|
(In
Thousands)
|
|
|
|
|
CURRENT
ASSETS:
|
FY2017
|
|
FY2016
|
Cash and Cash
Equivalents
|
$
52,097
|
|
$
43,716
|
Accounts Receivable,
Net
|
298,990
|
|
279,127
|
Inventories
|
413,572
|
|
419,537
|
Deferred Income Tax
Asset
|
45,914
|
|
47,902
|
Prepaid Expenses and
Other Current Assets
|
22,178
|
|
29,993
|
Total Current
Assets
|
832,751
|
|
820,275
|
|
|
|
|
OTHER
ASSETS:
|
|
|
|
Goodwill
|
161,823
|
|
160,998
|
Investments
|
49,535
|
|
56,715
|
Other Intangible
Assets, Net
|
101,847
|
|
106,544
|
Deferred Income Tax
Asset
|
39,093
|
|
14,393
|
Other Long-Term
Assets, Net
|
19,182
|
|
15,122
|
Total Other
Assets
|
371,480
|
|
353,772
|
|
|
|
|
|
|
|
|
PLANT AND
EQUIPMENT:
|
|
|
|
At Cost
|
1,086,778
|
|
1,038,994
|
Less - Accumulated
Depreciation
|
742,240
|
|
724,611
|
Plant and Equipment,
Net
|
344,538
|
|
314,383
|
|
$
1,548,769
|
|
$
1,488,430
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
Accounts
Payable
|
$
212,974
|
|
$
212,372
|
Short-Term
Debt
|
62,300
|
|
32,443
|
Accrued
Liabilities
|
144,023
|
|
155,965
|
Total Current
Liabilities
|
419,297
|
|
400,780
|
|
|
|
|
OTHER
LIABILITIES:
|
|
|
|
Accrued Pension
Cost
|
297,170
|
|
194,542
|
Accrued Employee
Benefits
|
22,649
|
|
22,778
|
Accrued
Postretirement Health Care Obligation
|
31,126
|
|
41,165
|
Other Long-Term
Liabilities
|
43,320
|
|
52,305
|
Long-Term
Debt
|
221,682
|
|
221,221
|
Total Other
Liabilities
|
615,947
|
|
532,011
|
|
|
|
|
SHAREHOLDERS'
INVESTMENT:
|
|
|
|
Common
Stock
|
579
|
|
579
|
Additional Paid-In
Capital
|
73,269
|
|
73,072
|
Retained
Earnings
|
1,093,323
|
|
1,074,959
|
Accumulated Other
Comprehensive Loss
|
(330,293)
|
|
(280,940)
|
Treasury Stock, at
Cost
|
(323,353)
|
|
(312,031)
|
Total Shareholders'
Investment
|
513,525
|
|
555,639
|
|
$
1,548,769
|
|
$
1,488,430
|
|
|
|
|
BRIGGS &
STRATTON CORPORATION AND SUBSIDIARIES
|
Consolidated
Statements of Cash Flows
|
(In
Thousands)
|
|
|
|
Nine Months Ended
March
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
FY2017
|
|
FY2016
|
Net Income
|
$
36,922
|
|
$
21,212
|
Adjustments to
Reconcile Net Income to Net Cash Used in Operating
Activities:
|
|
|
|
Depreciation and
Amortization
|
42,177
|
|
40,579
|
Stock Compensation
Expense
|
4,560
|
|
4,792
|
Goodwill
Impairment
|
-
|
|
7,651
|
Loss on Disposition
of Plant and Equipment
|
610
|
|
454
|
Provision for
Deferred Income Taxes
|
7,574
|
|
3,656
|
Equity in Earnings of
Unconsolidated Affiliates
|
(7,318)
|
|
(4,292)
|
Dividends Received
from Unconsolidated Affiliates
|
8,186
|
|
5,039
|
Non-Cash
Restructuring Charges
|
-
|
|
1,725
|
Changes in Operating
Assets and Liabilities:
|
|
|
|
Accounts
Receivable
|
(110,978)
|
|
(64,488)
|
Inventories
|
(27,553)
|
|
(41,903)
|
Other Current
Assets
|
584
|
|
1,429
|
Accounts Payable,
Accrued Liabilities and Income Taxes
|
30,041
|
|
25,598
|
Other, Net
|
(13,008)
|
|
(6,808)
|
Net Cash
Used in Operating Activities
|
(28,203)
|
|
(5,356)
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
Capital
Expenditures
|
(48,780)
|
|
(41,092)
|
Proceeds Received on
Disposition of Plant and Equipment
|
1,014
|
|
997
|
Cash Paid for
Acquisitions, Net of Cash Acquired
|
-
|
|
(3,074)
|
Cash Paid for
Investment in Unconsolidated Affiliates
|
-
|
|
(19,100)
|
Proceeds on Sale of
Investment in Marketable Securities
|
3,343
|
|
-
|
Other, Net
|
-
|
|
(750)
|
Net Cash
Used in Investing Activities
|
(44,423)
|
|
(63,019)
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
Net Borrowings on
Revolver
|
62,300
|
|
32,443
|
Repayments on
Long-Term Debt
|
-
|
|
(1,851)
|
Debt Issuance
Costs
|
-
|
|
(932)
|
Treasury Stock
Purchases
|
(17,924)
|
|
(33,394)
|
Payment of
Acquisition Contingent Liability
|
(1,625)
|
|
-
|
Stock Option Exercise
Proceeds and Tax Benefits
|
4,751
|
|
11,165
|
Cash Dividends
Paid
|
(12,028)
|
|
(11,885)
|
Net Cash
Provided by (Used in) Financing Activities
|
35,474
|
|
(4,454)
|
|
|
|
|
EFFECT OF EXCHANGE
RATE CHANGES
|
(590)
|
|
(1,845)
|
NET DECREASE IN CASH
AND CASH EQUIVALENTS
|
(37,742)
|
|
(74,674)
|
CASH AND CASH
EQUIVALENTS, Beginning
|
89,839
|
|
118,390
|
CASH AND CASH
EQUIVALENTS, Ending
|
$
52,097
|
|
$
43,716
|
|
|
|
|
Liquidity and Capital Resources:
Net debt at April 2, 2017 was
$233.4 million (total debt, excluding
debt issuance costs, of $285.4
million less $52.1 million of
cash), or $21.5 million higher than
net debt of $211.9 million (total
debt, excluding debt issuance costs, of $255.6 million less $43.7
million of cash) at March 27,
2016.
Cash flows used in operating activities for the first nine
months of fiscal 2017 were $28.2
million compared to $5.4
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 nine months of fiscal 2017, the Company
repurchased approximately 916,000 shares on the open market at an
average price of $19.57 per share. As
of April 2, 2017, the Company had
remaining authorization to repurchase up to approximately
$32 million of common stock with an
expiration date of June 29, 2018.
SUPPLEMENTAL
SEGMENT INFORMATION
|
|
Engines
Segment:
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended March
|
|
Nine Months
Ended March
|
|
|
(In
Thousands)
|
|
FY2017
|
|
FY2016
|
|
FY2017
|
|
FY2016
|
|
|
Net Sales
|
|
$
391,063
|
|
$ 415,680
|
|
$
806,298
|
|
$ 827,770
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit as
Reported
|
|
$
98,814
|
|
$
99,371
|
|
$
191,373
|
|
$ 188,783
|
|
|
Restructuring
Charges
|
|
-
|
|
-
|
|
-
|
|
464
|
|
|
Adjusted Gross
Profit
|
|
$
98,814
|
|
$
99,371
|
|
$
191,373
|
|
$ 189,247
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit % as
Reported
|
|
25.3%
|
|
23.9%
|
|
23.7%
|
|
22.8%
|
|
|
Adjusted Gross Profit
%
|
|
25.3%
|
|
23.9%
|
|
23.7%
|
|
22.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Income as
Reported
|
|
$
50,946
|
|
$
52,166
|
|
$
57,216
|
|
$
52,195
|
|
|
Restructuring
Charges
|
|
-
|
|
-
|
|
-
|
|
1,354
|
|
|
Litigation
Charges
|
|
-
|
|
-
|
|
-
|
|
2,825
|
|
|
Adjusted Segment
Income
|
|
$
50,946
|
|
$
52,166
|
|
$
57,216
|
|
$
56,374
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Income % as
Reported
|
|
13.0%
|
|
12.5%
|
|
7.1%
|
|
6.3%
|
|
|
Adjusted Segment Income
%
|
|
13.0%
|
|
12.5%
|
|
7.1%
|
|
6.8%
|
Third Quarter Highlights
- Starting in fiscal 2017, we implemented new sales terms for
engines shipped to overseas customers, resulting 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 in the first half of the fiscal year compared to the second
half. As a result of the change, units sold and net sales were
lower in the third quarter of fiscal 2017 by approximately 100,000
units and $10 million,
respectively.
- Using comparable sales terms, engine volumes sold decreased by
5% or approximately 160,000 engines in the third quarter of fiscal
2017. The decrease is due to a more cautious approach by our U.S.
customers in building inventory for the season following the
delayed start to the season last year. Offsetting the decrease were
higher sales of Vanguard commercial engines and higher European
engine sales.
- Gross profit percentage increased due to favorable sales mix
including a higher proportion of commercial engine sales and margin
lift on new products as well as manufacturing efficiency
improvements.
- Investment in our ERP system upgrade and higher pension expense
were the primary drivers for the $0.7
million increase in ESG&A expenses compared to last
year.
Products
Segment:
|
|
|
|
|
|
|
|
|
|
Three Months
Ended March
|
|
Nine Months
Ended March
|
|
(In
Thousands)
|
|
FY2017
|
|
FY2016
|
|
FY2017
|
|
FY2016
|
|
Net Sales
|
|
$
233,510
|
|
$ 220,845
|
|
$
575,007
|
|
$ 555,883
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit as
Reported
|
|
$
34,946
|
|
$
27,527
|
|
$
91,075
|
|
$
81,414
|
|
Restructuring
Charges
|
|
-
|
|
580
|
|
-
|
|
5,222
|
|
Acquisition Related
Charges
|
|
-
|
|
-
|
|
-
|
|
250
|
|
Adjusted Gross
Profit
|
|
$
34,946
|
|
$
28,107
|
|
$
91,075
|
|
$
86,886
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit % as
Reported
|
|
15.0%
|
|
12.5%
|
|
15.8%
|
|
14.6%
|
|
Adjusted Gross Profit
%
|
|
15.0%
|
|
12.7%
|
|
15.8%
|
|
15.6%
|
|
|
|
|
|
|
|
|
|
|
|
Segment Income (Loss) as
Reported
|
|
$
5,614
|
|
$
(7,246)
|
|
$
9,177
|
|
$
(6,767)
|
|
Restructuring
Charges
|
|
-
|
|
724
|
|
-
|
|
5,762
|
|
Goodwill
Impairment
|
|
-
|
|
7,651
|
|
-
|
|
7,651
|
|
Acquisition Related
Charges
|
|
-
|
|
-
|
|
-
|
|
276
|
|
Adjusted Segment
Income
|
|
$
5,614
|
|
$
1,129
|
|
$
9,177
|
|
$
6,922
|
|
|
|
|
|
|
|
|
|
|
|
Segment Income (Loss) % as
Reported
|
|
2.4%
|
|
-3.3%
|
|
1.6%
|
|
-1.2%
|
|
Adjusted Segment Income
%
|
|
2.4%
|
|
0.5%
|
|
1.6%
|
|
1.2%
|
Third Quarter Highlights
- Net sales increased by $12.7
million, primarily due to higher sales of commercial mowers,
turf care equipment and job site equipment.
- Gross profit percentage increased by 250 basis points. Adjusted
gross profit percentage increased 230 basis points, primarily due
to manufacturing efficiency improvements and favorable sales mix,
which includes higher sales of commercial products.
- Higher new product promotional expenses and the investment in
our ERP system upgrade were the primary drivers for the
$2.3 million increase in ESG&A
expenses compared to last year.
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 March
|
(In Thousands,
except per share data)
|
|
|
|
|
|
|
|
Three Months
Ended March
|
|
|
|
FY2017
Reported
|
|
Adjustments
|
|
FY2017
Adjusted
|
|
FY2016
Reported
|
|
Adjustments1
|
|
FY2016
Adjusted
|
|
|
|
|
|
|
|
|
|
Gross
Profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engines
|
|
$
98,814
|
|
$
-
|
|
$
98,814
|
|
$
99,371
|
|
$
-
|
|
$
99,371
|
|
Products
|
|
34,946
|
|
-
|
|
34,946
|
|
27,527
|
|
580
|
|
28,107
|
|
Inter-Segment
Eliminations
|
|
1,011
|
|
-
|
|
1,011
|
|
197
|
|
-
|
|
197
|
|
Total
|
|
$
134,771
|
|
$
-
|
|
$
134,771
|
|
$
127,095
|
|
$
580
|
|
$
127,675
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineering, Selling,
General and Administrative Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engines
|
|
$
48,450
|
|
$
-
|
|
$
48,450
|
|
$
47,759
|
|
$
-
|
|
$
47,759
|
|
Products
|
|
29,829
|
|
-
|
|
29,829
|
|
27,529
|
|
-
|
|
27,529
|
|
Total
|
|
$
78,279
|
|
$
-
|
|
$
78,279
|
|
$
75,288
|
|
$
-
|
|
$
75,288
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Income (Loss)
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engines
|
|
$
50,946
|
|
$
-
|
|
$
50,946
|
|
$
52,166
|
|
$
-
|
|
$
52,166
|
|
Products
|
|
5,614
|
|
-
|
|
5,614
|
|
(7,246)
|
|
8,375
|
|
1,129
|
|
Inter-Segment
Eliminations
|
|
1,011
|
|
-
|
|
1,011
|
|
197
|
|
-
|
|
197
|
|
Total
|
|
$
57,571
|
|
$
-
|
|
$
57,571
|
|
$
45,117
|
|
$
8,375
|
|
$
53,492
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from
Segment Income (Loss) to Income before Income Taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in Earnings of
Unconsolidated Affiliates (2)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Income from
Operations
|
|
$
57,571
|
|
$
-
|
|
$
57,571
|
|
$
45,117
|
|
$
8,375
|
|
$
53,492
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before Income
Taxes
|
|
52,894
|
|
-
|
|
52,894
|
|
40,035
|
|
8,375
|
|
48,410
|
|
Provision for Income
Taxes
|
|
17,075
|
|
-
|
|
17,075
|
|
13,212
|
|
254
|
|
13,466
|
|
Net Income
|
|
$
35,819
|
|
$
-
|
|
$
35,819
|
|
$
26,823
|
|
$
8,121
|
|
$
34,944
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.83
|
|
$
-
|
|
$
0.83
|
|
$
0.62
|
|
$
0.18
|
|
$
0.80
|
|
Diluted
|
|
0.83
|
|
-
|
|
0.83
|
|
0.61
|
|
0.19
|
|
0.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
For the third quarter
of fiscal 2016, includes pre-tax restructuring charges of $724
($470 after tax) and goodwill impairment charge of $7,651 which is
not deductible for income tax purposes.
|
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 Nine Month Periods Ended March
|
(In Thousands,
except per share data)
|
|
|
|
|
|
|
|
Nine Months
Ended March
|
|
|
|
FY2017
Reported
|
|
Adjustments
|
|
FY2017
Adjusted
|
|
FY2016
Reported
|
|
Adjustments1
|
|
FY2016
Adjusted
|
|
|
|
|
|
|
|
|
|
Gross
Profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engines
|
|
$
191,373
|
|
$
-
|
|
$
191,373
|
|
$
188,783
|
|
$
464
|
|
$
189,247
|
|
Products
|
|
91,075
|
|
-
|
|
91,075
|
|
81,414
|
|
5,472
|
|
86,886
|
|
Inter-Segment
Eliminations
|
|
251
|
|
-
|
|
251
|
|
(1,694)
|
|
-
|
|
(1,694)
|
|
Total
|
|
$
282,699
|
|
$
-
|
|
$
282,699
|
|
$
268,503
|
|
$
5,936
|
|
$
274,439
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineering, Selling,
General and Administrative Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engines
|
|
$
138,610
|
|
$
-
|
|
$
138,610
|
|
$
138,273
|
|
$
2,825
|
|
$
135,448
|
|
Products
|
|
84,763
|
|
-
|
|
84,763
|
|
81,707
|
|
26
|
|
81,681
|
|
Total
|
|
$
223,373
|
|
$
-
|
|
$
223,373
|
|
$
219,980
|
|
$
2,851
|
|
$
217,129
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Income (Loss)
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engines
|
|
$
57,216
|
|
$
-
|
|
$
57,216
|
|
$
52,195
|
|
$
4,179
|
|
$
56,374
|
|
Products
|
|
9,177
|
|
-
|
|
9,177
|
|
(6,767)
|
|
13,689
|
|
6,922
|
|
Inter-Segment
Eliminations
|
|
251
|
|
-
|
|
251
|
|
(1,694)
|
|
-
|
|
(1,694)
|
|
Total
|
|
$
66,644
|
|
$
-
|
|
$
66,644
|
|
$
43,734
|
|
$
17,868
|
|
$
61,602
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from
Segment Income (Loss) to Income before Income Taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in Earnings of
Unconsolidated Affiliates (2)
|
|
-
|
|
-
|
|
-
|
|
3,187
|
|
-
|
|
3,187
|
|
Income from
Operations
|
|
$
66,644
|
|
$
-
|
|
$
66,644
|
|
$
40,547
|
|
$
17,868
|
|
$
58,415
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before Income
Taxes
|
|
53,164
|
|
-
|
|
53,164
|
|
29,753
|
|
17,868
|
|
47,621
|
|
Provision for Income
Taxes
|
|
16,242
|
|
-
|
|
16,242
|
|
8,541
|
|
4,199
|
|
12,740
|
|
Net Income
|
|
$
36,922
|
|
$
-
|
|
$
36,922
|
|
$
21,212
|
|
$
13,669
|
|
$
34,881
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.86
|
|
$
-
|
|
$
0.86
|
|
$
0.48
|
|
$
0.31
|
|
$
0.79
|
|
Diluted
|
|
0.86
|
|
-
|
|
0.86
|
|
0.48
|
|
0.31
|
|
0.79
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
For the first nine
months of fiscal 2016, includes pre-tax restructuring charges of
$7,116 ($4,671 after tax), goodwill impairment charge of $7,651
which is not deductible for income tax purposes, 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-third-quarter-results-300443146.html
SOURCE Briggs & Stratton Corporation