EnerSys (NYSE: ENS), the global leader in stored energy solutions
for industrial applications, announced today preliminary results
for its fourth quarter and full year of fiscal 2021, which ended on
March 31, 2021 along with management guidance for the first quarter
of fiscal 2022.
Please note that these results are preliminary, and they could
change.
FY 21 Highlights |
Q4 |
Full Year |
- Net sales of $814M up 8%
sequentially
- Gross Profit Margins at 24%
- Leverage now 1.7x
- Motive Power and
Specialty accelerating
- Energy Systems addressing
supply chain challenges
|
- Operating earnings stable
despite pandemic
- Operating cashflows a record $358M
- NexSys Pure lithium offering sales
commenced
- Hagen restructuring ahead of schedule and
budget
- Opex efficiencies implemented and
maintained
|
Preliminary Key Results from Operations by Segments ($ in
millions) |
|
|
Q4 FY21 |
|
Q4 FY20 |
|
% Change |
Energy
Systems |
|
|
|
|
|
|
Net Sales |
|
$ |
348.8 |
|
$ |
315.1 |
|
10.7 |
|
% |
Operating
Earnings |
|
3.6 |
|
7.6 |
|
(52.2 |
) |
|
Adjusted Operating
Earnings * |
|
9.1 |
|
13.0 |
|
(29.0 |
) |
|
Motive
Power |
|
|
|
|
|
|
Net
Sales |
|
332.8 |
|
353.0 |
|
(5.7 |
) |
|
Operating
Earnings |
|
51.9 |
|
44.2 |
|
17.1 |
|
|
Adjusted Operating
Earnings * |
|
51.9 |
|
44.7 |
|
15.9 |
|
|
Specialty |
|
|
|
|
|
|
Net
Sales |
|
131.9 |
|
113.7 |
|
16.1 |
|
|
Operating
Earnings |
|
16.9 |
|
13.3 |
|
27.6 |
|
|
Adjusted Operating
Earnings * |
|
17.4 |
|
13.3 |
|
30.3 |
|
|
* This is a non-GAAP financial measure. See “Reconciliation of
Non-GAAP Financial Measures” for more information.
Message from the CEO
Given the unprecedented challenges of the past year, we
delivered excellent performance in fiscal 2021 with all of our
lines of business poised to take advantage of tremendous market
opportunities. We have emerged from the pandemic with fourth
quarter revenue up 4% year over year and 8% sequentially. This is a
tremendous testament to our ability to respond to market conditions
while progressing the integration of recent acquisitions and
advancing numerous new product offerings. Our record free cash flow
generation, more than double the average of the prior three years,
positions us to take advantage of opportunities in an evolving
market place. With accelerating demand, our focus will be on
mitigating global supply chain challenges while expanding our
higher margin TPPL capacity. Our fourth quarter adjusted earnings
per share of $1.30 was in the high end of our guidance range. As we
look to our first quarter fiscal 2022, despite the near term
challenges associated with a rapid COVID recovery, we expect
to achieve between $1.15 and $1.25 in as-adjusted earnings per
share.
David M. Shaffer, President and Chief Executive Officer,
EnerSys
Net earnings attributable to EnerSys stockholders (“Net
earnings”) for the fourth quarter of fiscal 2021 are expected to be
$33.8 million, or $0.78 per diluted share, which included an
unfavorable highlighted net of tax impact of $22.7 million, or
$0.52 per diluted share, from highlighted items described in
further detail in the tables shown below, reconciling non-GAAP
adjusted financial measures to reported amounts.
Net loss for the fourth quarter of fiscal 2020 was $1.5 million,
or $0.04 per diluted share, which included an unfavorable
highlighted net of tax impact of $49.0 million, or $1.15 per
diluted share from highlighted items described in further detail in
the tables shown below, reconciling non-GAAP adjusted financial
measures to reported amounts.
Excluding these highlighted items, adjusted Net earnings per
diluted share for the fourth quarter of fiscal 2021, on a non-GAAP
basis, are expected to be $1.30, which compares to the guidance of
$1.25 to $1.31 per diluted share for the fourth quarter given by
the Company on February 10, 2021. These earnings compare to the
prior year fourth quarter adjusted Net earnings of $1.11 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 includes tables reconciling GAAP and non-GAAP
adjusted financial measures for the quarters ended March 31, 2021
and March 31, 2020.
The Company announced on November 11, 2020, its plan to
substantially close its facility in Hagen, Germany, which produces
flooded motive power batteries for forklifts. The Company currently
estimates that the total charges approximate $60.0 million, the
majority of which are expected to be recorded by the end of
calendar 2021. Cash charges of approximately $40.0 million are
primarily for employee severance related payments, but also include
payments for cleanup related to the facility, contractual releases
and legal expenses. Non-cash charges from inventory and equipment
write-offs are estimated to be $20.0 million. These actions will
result in the reduction of approximately 200 employees. The total
charges for fiscal 2021 relating to this event amounted to $31.3
million, which included $8.0 million of non-cash charges.
Net sales for the fourth quarter of fiscal 2021 were $813.5
million, an increase of 4% from the prior year fourth quarter net
sales of $781.8 million and increased 8% sequentially from the
third quarter of fiscal 2021 net sales of $751.1 million. The
increase from the prior year quarter was the result of a 4%
increase in organic volume resulting from the pandemic and a 2%
increase in foreign currency translation impact, partially offset
by a 2% decrease in pricing. The 8% sequential increase was due to
organic volume improvement of 9% partially offset by a 1% decrease
in pricing.
On July 6, 2020, the Company announced that it was changing its
reportable segments, beginning with its first quarter of fiscal
2021, from being based on geographic regions to lines of business.
The new reportable segments are Energy Systems (which includes
energy solutions related to telecommunications systems,
uninterruptible power systems, and other power applications),
Motive Power (which includes power for electric industrial
forklifts used in manufacturing, warehousing and other material
handling applications, as well as mining equipment, diesel
locomotive starting and other rail equipment) and Specialty (which
includes energy solutions for transportation, satellites, military
aircraft, submarines, ships and other tactical vehicles). Prior
year quarter and year to date financial information has been
restated to reflect the new reportable segments.
The Company’s operating results for its business segments for
the fourth quarters of fiscal 2021 and 2020 are as follows:
|
Quarter ended |
|
($ millions) |
|
March 31, 2021(preliminary) |
|
Energy Systems |
|
Motive Power |
|
Specialty |
|
Total |
Net Sales |
$ |
348.8 |
|
|
$ |
332.8 |
|
|
$ |
131.9 |
|
|
$ |
813.5 |
|
|
|
|
|
|
|
|
|
Operating
Earnings |
$ |
3.1 |
|
|
$ |
31.9 |
|
|
$ |
16.7 |
|
|
$ |
51.7 |
|
Restructuring and other exit
charges |
0.5 |
|
|
20.0 |
|
|
0.2 |
|
|
20.7 |
|
Amortization of identified
intangible assets from recent acquisitions |
5.5 |
|
|
— |
|
|
0.5 |
|
|
6.0 |
|
Adjusted Operating
Earnings |
$ |
9.1 |
|
|
$ |
51.9 |
|
|
$ |
17.4 |
|
|
$ |
78.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended |
|
($ millions) |
|
March 31, 2020 |
|
Energy Systems |
|
Motive Power |
|
Specialty |
|
Total |
Net Sales |
$ |
315.1 |
|
|
$ |
353.0 |
|
|
$ |
113.7 |
|
|
$ |
781.8 |
|
|
|
|
|
|
|
|
|
Operating Earnings
(Loss) |
$ |
(21.3 |
) |
|
$ |
29.1 |
|
|
$ |
12.3 |
|
|
$ |
20.1 |
|
Inventory step up to fair
value relating to recent acquisitions |
(1.3 |
) |
|
— |
|
|
(0.6 |
) |
|
(1.9 |
) |
Restructuring and other exit
charges |
1.0 |
|
|
0.5 |
|
|
1.2 |
|
|
2.7 |
|
Impairment of goodwill |
27.9 |
|
|
11.8 |
|
|
— |
|
|
39.7 |
|
Impairment of indefinite-lived
intangibles |
1.3 |
|
|
2.8 |
|
|
0.4 |
|
|
4.5 |
|
Amortization of identified
intangible assets from recent acquisitions |
4.8 |
|
|
— |
|
|
(0.2 |
) |
|
4.6 |
|
ERP system implementation and
other |
0.6 |
|
|
0.5 |
|
|
0.1 |
|
|
1.2 |
|
Acquisition activity
expense |
— |
|
|
— |
|
|
0.1 |
|
|
0.1 |
|
Adjusted Operating
Earnings |
$ |
13.0 |
|
|
$ |
44.7 |
|
|
$ |
13.3 |
|
|
$ |
71.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings for the twelve months of fiscal 2021 are expected
to be $143.3 million, or $3.32 per diluted share, which included an
unfavorable highlighted net of tax impact of $50.8 million, or
$1.17 per diluted 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 twelve months of fiscal 2020 were $137.1
million, or $3.20 per diluted share, which included an unfavorable
highlighted net of tax impact of $63.5 million, or $1.48 per
diluted share from highlighted items described in further detail in
the tables shown below, reconciling non-GAAP adjusted financial
measures to reported amounts.
Adjusted Net earnings per diluted share for the twelve months of
fiscal 2021, on a non-GAAP basis, are expected to be $4.49. This
compares to the prior year twelve months adjusted Net earnings of
$4.68 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 2021 were $2,977.9
million, a decrease of 4% from the prior year twelve months net
sales of $3,087.8 million. The decrease from the prior year twelve
months was the result of a 5% decrease in organic volume resulting
from the pandemic and a 1% decrease in pricing, partially offset by
a 2% increase from the NorthStar acquisition.
The Company’s operating results for its business segments for
the twelve months of fiscal 2021 and 2020 are as follows:
|
Twelve months ended |
|
($ millions) |
|
March 31, 2021(preliminary) |
|
Energy Systems |
|
Motive Power |
|
Specialty |
|
Total |
Net Sales |
$ |
1,380.2 |
|
|
$ |
1,163.8 |
|
|
$ |
433.9 |
|
|
$ |
2,977.9 |
|
|
|
|
|
|
|
|
|
Operating
Earnings |
$ |
63.8 |
|
|
$ |
106.7 |
|
|
$ |
45.9 |
|
|
$ |
216.4 |
|
Restructuring and other exit
charges |
3.1 |
|
|
36.9 |
|
|
0.4 |
|
|
40.4 |
|
Amortization of identified
intangible assets from recent acquisitions |
23.5 |
|
|
— |
|
|
1.8 |
|
|
25.3 |
|
Other |
1.5 |
|
|
0.3 |
|
|
— |
|
|
1.8 |
|
Acquisition activity
expense |
0.2 |
|
|
— |
|
|
0.1 |
|
|
0.3 |
|
Adjusted Operating
Earnings |
$ |
92.1 |
|
|
$ |
143.9 |
|
|
$ |
48.2 |
|
|
$ |
284.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended |
|
($ millions) |
|
March 31, 2020 |
|
Energy Systems |
|
Motive Power |
|
Specialty |
|
Total |
Net Sales |
$ |
1,357.3 |
|
|
$ |
1,348.2 |
|
|
$ |
382.3 |
|
|
$ |
3,087.8 |
|
|
|
|
|
|
|
|
|
Operating
Earnings |
$ |
31.0 |
|
|
$ |
124.7 |
|
|
$ |
34.5 |
|
|
$ |
190.2 |
|
Inventory step up to fair
value relating to recent acquisitions |
0.3 |
|
|
— |
|
|
1.6 |
|
|
1.9 |
|
Restructuring and other exit
charges |
7.3 |
|
|
2.0 |
|
|
6.0 |
|
|
15.3 |
|
Fixed asset write-off relating
to exit activities and other |
0.1 |
|
|
5.4 |
|
|
— |
|
|
5.5 |
|
Impairment of goodwill |
27.9 |
|
|
11.8 |
|
|
— |
|
|
39.7 |
|
Impairment of indefinite-lived
intangibles |
1.3 |
|
|
2.8 |
|
|
0.4 |
|
|
4.5 |
|
Amortization of identified
intangible assets from recent acquisitions |
22.2 |
|
|
— |
|
|
0.9 |
|
|
23.1 |
|
ERP system implementation and
other |
3.1 |
|
|
2.1 |
|
|
0.1 |
|
|
5.3 |
|
Acquisition activity
expense |
1.1 |
|
|
— |
|
|
0.7 |
|
|
1.8 |
|
Adjusted Operating
Earnings |
$ |
94.3 |
|
|
$ |
148.8 |
|
|
$ |
44.2 |
|
|
$ |
287.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 measures “adjusted Net earnings” and “adjusted operating
earnings” as applicable, in their analysis of the Company's
performance. This measure, as used by EnerSys in past quarters and
years, adjusts operating earnings and 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 these financial measures 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 and overall business performance; in particular,
those charges that the Company incurs as a result of restructuring
activities, impairment of goodwill and indefinite-lived intangibles
and other assets, acquisition activities and those charges and
credits that are not directly related to operating unit
performance, such as significant legal proceedings, ERP system
implementation, amortization of Alpha and NorthStar related
intangible assets and tax valuation allowance changes, including
those related to the adoption of the Tax Cuts and Jobs Act in the
United States and the Federal Act on Tax Reform and AHV Financing
in Switzerland. 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. Although
we exclude the amortization of purchased intangibles from these
non-GAAP measures, management believes that it is important for
investors to understand that such intangible assets were recorded
as part of purchase accounting and contribute to revenue
generation.
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%.
These non-GAAP disclosures have limitations as an analytical
tool, should not be viewed as a substitute for operating earnings
or 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 are they 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.
A reconciliation of non-GAAP adjusted operating earnings is set
forth in the table above, providing a reconciliation of non-GAAP
adjusted operating earnings to the Company’s preliminary reported
operating results for its business segments. Included below is a
reconciliation of non-GAAP adjusted Net earnings to preliminary
reported amounts. Non-GAAP adjusted operating earnings and Net
earnings are calculated excluding restructuring and other
highlighted charges and credits. The following tables provide
additional information regarding certain non-GAAP measures:
|
Quarter ended |
|
|
(in millions, except share and per share
amounts) |
|
|
March 31, 2021(preliminary) |
|
March 31, 2020 |
|
Net Earnings
reconciliation |
|
|
|
|
As reported Net Earnings
(Loss) |
$ |
33.8 |
|
|
$ |
(1.5 |
) |
|
Non-GAAP adjustments: |
|
|
|
|
Inventory step up to fair value relating to recent
acquisitions |
— |
|
(1 |
) |
(1.9 |
) |
(1 |
) |
Restructuring and other exit charges |
20.7 |
|
(2 |
) |
2.7 |
|
(2 |
) |
Impairment of goodwill and indefinite-lived intangibles |
— |
|
(3 |
) |
44.2 |
|
(3 |
) |
Amortization of identified intangible assets from recent
acquisitions |
6.0 |
|
(4 |
) |
4.6 |
|
(4 |
) |
ERP system implementation and other |
— |
|
(5 |
) |
1.2 |
|
(5 |
) |
Acquisition activity expense |
— |
|
(6 |
) |
0.1 |
|
(6 |
) |
Purchase accounting related tax |
2.2 |
|
|
— |
|
|
Income tax effect of above non-GAAP adjustments |
(6.2 |
) |
|
(1.9 |
) |
|
Non-GAAP adjusted Net
Earnings |
$ |
56.5 |
|
|
$ |
47.5 |
|
|
|
|
|
|
|
Outstanding shares
used in Non-GAAP adjusted Net Earnings per share
calculations |
|
|
|
|
Basic |
|
42,686,413 |
|
|
|
|
42,312,315 |
|
|
Diluted |
|
43,587,698 |
|
|
|
|
42,921,613 |
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding shares
used in Reported Net Earnings per share calculations |
|
|
|
|
|
|
|
|
|
Basic |
|
42,686,413 |
|
|
|
|
42,312,315 |
|
|
Diluted |
|
43,587,698 |
|
|
|
|
42,312,315 |
|
|
Non-GAAP adjusted Net
Earnings per share: |
|
|
|
|
Basic |
$ |
1.33 |
|
|
$ |
1.12 |
|
|
Diluted |
$ |
1.30 |
|
|
$ |
1.11 |
|
|
|
|
|
|
|
Reported Net Earnings
(Loss) per share: |
|
|
|
|
Basic |
$ |
0.79 |
|
|
$ |
(0.04 |
) |
|
Diluted |
$ |
0.78 |
|
|
$ |
(0.04 |
) |
|
Dividends per common
share |
$ |
0.175 |
|
|
$ |
0.175 |
|
|
|
|
|
|
|
|
|
|
|
The following table provides the line of business allocation of
the non-GAAP adjustments shown in the reconciliation above:
|
|
Quarter ended |
|
|
($ millions) |
|
|
March 31, 2021(preliminary) |
|
March 31, 2020 |
|
|
Pre-tax |
|
Pre-tax |
(1) Inventory step up to fair value relating to recent acquisitions
- Energy Systems |
|
$ |
— |
|
|
$ |
(1.3 |
) |
(1) Inventory step up to fair
value relating to recent acquisitions - Specialty |
|
— |
|
|
(0.6 |
) |
(2) Restructuring charges -
Energy Systems |
|
0.5 |
|
|
1.0 |
|
(2) Restructuring and other
exit charges - Motive Power |
|
20.0 |
|
|
0.5 |
|
(2) Restructuring and other
exit charges - Specialty |
|
0.2 |
|
|
1.2 |
|
(3) Impairment of goodwill -
Energy Systems |
|
— |
|
|
27.9 |
|
(3) Impairment of goodwill -
Motive |
|
— |
|
|
11.8 |
|
(3) Impairment of
indefinite-lived intangibles - Energy Systems |
|
— |
|
|
1.3 |
|
(3) Impairment of
indefinite-lived intangibles - Motive |
|
— |
|
|
2.8 |
|
(3) Impairment of
indefinite-lived intangibles - Specialty |
|
— |
|
|
0.4 |
|
(4) Amortization of identified
intangible assets from recent acquisitions - Energy Systems |
|
5.5 |
|
|
4.8 |
|
(4) Amortization of identified
intangible assets from recent acquisitions - Specialty |
|
0.5 |
|
|
(0.2 |
) |
(5) ERP system implementation
and other - Energy Systems |
|
— |
|
|
0.6 |
|
(5) ERP system implementation
and other - Motive Power |
|
— |
|
|
0.5 |
|
(5) ERP system implementation
and other - Specialty |
|
— |
|
|
0.1 |
|
(6) Acquisition activity
expense - Specialty |
|
— |
|
|
0.1 |
|
Total Non-GAAP
adjustments |
|
$ |
26.7 |
|
|
$ |
50.9 |
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended |
|
|
(in millions, except share and per share
amounts) |
|
|
March 31, 2021(preliminary) |
|
March 31, 2020 |
|
Net Earnings
reconciliation |
|
|
|
|
As reported Net Earnings |
$ |
143.3 |
|
|
$ |
137.1 |
|
|
Non-GAAP adjustments: |
|
|
|
|
Inventory step up to fair value relating to recent
acquisitions |
— |
|
(1 |
) |
1.9 |
|
(1 |
) |
Restructuring and other exit charges |
40.4 |
|
(2 |
) |
20.8 |
|
(2 |
) |
Impairment of goodwill and indefinite-lived intangibles |
— |
|
(3 |
) |
44.2 |
|
(3 |
) |
Amortization of identified intangible assets from recent
acquisitions |
25.3 |
|
(4 |
) |
23.1 |
|
(4 |
) |
ERP system implementation and other |
1.8 |
|
(5 |
) |
5.3 |
|
(5 |
) |
Acquisition activity expense |
0.3 |
|
(6 |
) |
1.8 |
|
(6 |
) |
Purchase accounting related tax |
2.2 |
|
|
— |
|
|
Income tax effect of above non-GAAP adjustments |
(17.3 |
) |
|
(12.6 |
) |
|
Swiss Tax Reform |
(1.9 |
) |
|
(21.0 |
) |
|
Non-GAAP adjusted Net
Earnings |
$ |
194.1 |
|
|
$ |
200.6 |
|
|
|
|
|
|
|
Outstanding shares
used in per share calculations |
|
|
|
|
Basic |
|
42,548,449 |
|
|
|
|
42,411,834 |
|
|
Diluted |
|
43,224,403 |
|
|
|
|
42,896,775 |
|
|
|
|
|
|
|
Non-GAAP adjusted Net
Earnings per share: |
|
|
|
|
Basic |
$ |
4.56 |
|
|
$ |
4.73 |
|
|
Diluted |
$ |
4.49 |
|
|
$ |
4.68 |
|
|
|
|
|
|
|
Reported Net Earnings
per share: |
|
|
|
|
Basic |
$ |
3.37 |
|
|
$ |
3.23 |
|
|
Diluted |
$ |
3.32 |
|
|
$ |
3.20 |
|
|
Dividends per common
share |
$ |
0.70 |
|
|
$ |
0.70 |
|
|
|
|
|
|
|
|
|
|
|
The following table provides the line of business allocation of
the non-GAAP adjustments shown in the reconciliation above:
|
|
Twelve months ended |
|
|
($ millions) |
|
|
March 31, 2021(preliminary) |
|
March 31, 2020 |
|
|
Pre-tax |
|
Pre-tax |
(1) Inventory step up to fair value relating to recent acquisitions
- Energy Systems |
|
$ |
— |
|
|
$ |
0.3 |
|
(1) Inventory step up to fair
value relating to recent acquisitions - Specialty |
|
— |
|
|
1.6 |
|
(2) Restructuring charges -
Energy Systems |
|
3.1 |
|
|
7.3 |
|
(2) Restructuring and other
exit charges - Motive Power |
|
36.9 |
|
|
2.0 |
|
(2) Restructuring and other
exit charges - Specialty |
|
0.4 |
|
|
6.0 |
|
(2) Fixed asset write-off
relating to exit activities and other - Energy Systems |
|
— |
|
|
0.1 |
|
(2) Fixed asset write-off
relating to exit activities and other - Motive Power |
|
— |
|
|
5.4 |
|
(3) Impairment of goodwill -
Energy Systems |
|
— |
|
|
27.9 |
|
(3) Impairment of goodwill -
Motive |
|
— |
|
|
11.8 |
|
(3) Impairment of
indefinite-lived intangibles - Energy Systems |
|
— |
|
|
1.3 |
|
(3) Impairment of
indefinite-lived intangibles - Motive |
|
— |
|
|
2.8 |
|
(3) Impairment of
indefinite-lived intangibles - Specialty |
|
— |
|
|
0.4 |
|
(4) Amortization of identified
intangible assets from recent acquisitions - Energy Systems |
|
23.5 |
|
|
22.2 |
|
(4) Amortization of identified
intangible assets from recent acquisitions - Specialty |
|
1.8 |
|
|
0.9 |
|
(5) ERP system implementation
and other - Energy Systems |
|
1.5 |
|
|
3.1 |
|
(5) ERP system implementation
and other - Motive Power |
|
0.3 |
|
|
2.1 |
|
(5) ERP system implementation
and other - Specialty |
|
— |
|
|
0.1 |
|
(6) Acquisition activity
expense - Energy Systems |
|
0.2 |
|
|
1.1 |
|
(6) Acquisition activity
expense - Specialty |
|
0.1 |
|
|
0.7 |
|
Total Non-GAAP
adjustments |
|
$ |
67.8 |
|
|
$ |
97.1 |
|
|
|
|
|
|
|
|
|
|
Summary of Earnings (Unaudited)(In
millions, except share and per share data) |
|
|
Quarter ended |
|
March 31, 2021(preliminary) |
|
March 31, 2020 |
Net sales |
$ |
813.5 |
|
|
$ |
781.8 |
|
Gross profit |
197.3 |
|
|
200.8 |
|
Operating expenses |
124.9 |
|
|
133.8 |
|
Restructuring and other exit
charges |
20.7 |
|
|
2.7 |
|
Impairment of goodwill |
— |
|
|
39.7 |
|
Impairment of indefinite-lived
intangibles |
— |
|
|
4.5 |
|
Operating earnings |
51.7 |
|
|
20.1 |
|
Earnings before income
taxes |
43.2 |
|
|
7.4 |
|
Income tax expense |
9.4 |
|
|
8.9 |
|
Net earnings (loss)
attributable to EnerSys stockholders |
$ |
33.8 |
|
|
$ |
(1.5 |
) |
|
|
|
|
Net reported earnings (loss)
per common share attributable to EnerSys stockholders: |
|
|
|
Basic |
$ |
0.79 |
|
|
$ |
(0.04 |
) |
Diluted |
$ |
0.78 |
|
|
$ |
(0.04 |
) |
Dividends per common share |
$ |
0.175 |
|
|
$ |
0.175 |
|
Weighted-average number of
common shares used in reported earnings per share
calculations: |
|
|
|
Basic |
42,686,413 |
|
|
42,312,315 |
|
Diluted |
43,587,698 |
|
|
42,312,315 |
|
|
|
|
|
|
|
|
Twelve months ended |
|
March 31, 2021(preliminary) |
|
March 31, 2020 |
Net sales |
$ |
2,977.9 |
|
|
$ |
3,087.8 |
|
Gross profit |
739.1 |
|
|
784.9 |
|
Operating expenses |
482.3 |
|
|
529.7 |
|
Restructuring and other exit
charges |
40.4 |
|
|
20.8 |
|
Impairment of goodwill |
— |
|
|
39.7 |
|
Impairment of indefinite-lived
intangibles |
— |
|
|
4.5 |
|
Operating earnings |
216.4 |
|
|
190.2 |
|
Earnings before income
taxes |
170.1 |
|
|
147.0 |
|
Income tax expense |
26.8 |
|
|
9.9 |
|
Net earnings attributable to
EnerSys stockholders |
$ |
143.3 |
|
|
$ |
137.1 |
|
|
|
|
|
Net reported earnings per
common share attributable to EnerSys stockholders: |
|
|
|
Basic |
$ |
3.37 |
|
|
$ |
3.23 |
|
Diluted |
$ |
3.32 |
|
|
$ |
3.20 |
|
Dividends per common share |
$ |
0.70 |
|
|
$ |
0.70 |
|
Weighted-average number of
common shares used in reported earnings per share
calculations: |
|
|
|
Basic |
42,548,449 |
|
|
42,411,834 |
|
Diluted |
43,224,403 |
|
|
42,896,775 |
|
|
|
|
|
|
|
|
ENERSYSConsolidated Balance
Sheets (In Thousands, Except Share and Per Share
Data) |
|
|
|
March 31, |
|
|
2021(preliminary) |
|
2020 |
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
451,808 |
|
|
$ |
326,979 |
|
Accounts receivable, net of
allowance for doubtful accounts (2021–$12,992; 2020–$15,246) |
|
603,581 |
|
|
595,873 |
|
Inventories |
|
518,247 |
|
|
519,460 |
|
Prepaid and other current
assets |
|
117,681 |
|
|
120,593 |
|
Total current assets |
|
1,691,317 |
|
|
1,562,905 |
|
Property, plant, and
equipment, net |
|
497,056 |
|
|
480,014 |
|
Goodwill |
|
705,593 |
|
|
663,936 |
|
Other intangible assets,
net |
|
430,898 |
|
|
455,685 |
|
Deferred taxes |
|
65,212 |
|
|
55,803 |
|
Other assets |
|
72,721 |
|
|
83,355 |
|
Total assets |
|
$ |
3,462,797 |
|
|
$ |
3,301,698 |
|
Liabilities and Equity |
|
|
|
|
Current liabilities: |
|
|
|
|
Short-term debt |
|
$ |
34,153 |
|
|
$ |
46,544 |
|
Current portion of finance
leases |
|
236 |
|
|
162 |
|
Accounts payable |
|
323,876 |
|
|
281,873 |
|
Accrued expenses |
|
318,723 |
|
|
271,740 |
|
Total current liabilities |
|
676,988 |
|
|
600,319 |
|
Long-term debt, net of
unamortized debt issuance costs |
|
969,618 |
|
|
1,104,731 |
|
Finance leases |
|
435 |
|
|
407 |
|
Deferred taxes |
|
76,412 |
|
|
78,363 |
|
Other liabilities |
|
195,768 |
|
|
213,816 |
|
Total liabilities |
|
1,919,221 |
|
|
1,997,636 |
|
Commitments and
contingencies |
|
|
|
|
Equity: |
|
|
|
|
Preferred Stock, $0.01 par
value, 1,000,000 shares authorized, no shares issued or outstanding
at March 31, 2021 and at March 31, 2020 |
|
— |
|
|
— |
|
Common Stock, $0.01 par value
per share, 135,000,000 shares authorized, 55,552,810 shares issued
and 42,753,020 shares outstanding at March 31, 2021; 55,114,808
shares issued and 42,323,305 shares outstanding at March 31,
2020 |
|
555 |
|
|
551 |
|
Additional paid-in
capital |
|
554,168 |
|
|
529,100 |
|
Treasury stock at cost,
12,799,790 shares held as of March 31, 2021 and 12,791,503 shares
held as of March 31, 2020 |
|
(563,481 |
) |
|
(564,376 |
) |
Retained earnings |
|
1,669,751 |
|
|
1,556,980 |
|
Accumulated other
comprehensive loss |
|
(115,883 |
) |
|
(215,006 |
) |
Contra equity -
indemnification receivable |
|
(5,355 |
) |
|
(6,724 |
) |
Total EnerSys stockholders’
equity |
|
1,539,755 |
|
|
1,300,525 |
|
Nonredeemable noncontrolling
interests |
|
3,821 |
|
|
3,537 |
|
Total equity |
|
1,543,576 |
|
|
1,304,062 |
|
Total liabilities and
equity |
|
$ |
3,462,797 |
|
|
$ |
3,301,698 |
|
|
|
|
|
|
|
|
|
|
|
ENERSYSConsolidated Statements of Cash
Flows (In Thousands) |
|
|
|
Fiscal year ended March 31, |
|
|
2021(preliminary) |
|
2020 |
|
2019 |
Cash flows from
operating activities |
|
|
|
|
|
|
Net earnings |
|
$ |
143,374 |
|
|
$ |
137,116 |
|
|
$ |
160,627 |
|
Adjustments to reconcile net
earnings to net cash provided by operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
94,082 |
|
|
87,344 |
|
|
63,348 |
|
Write-off of assets relating to restructuring and other exit
charges |
|
10,231 |
|
|
10,986 |
|
|
26,308 |
|
Impairment of goodwill |
|
— |
|
|
39,713 |
|
|
— |
|
Impairment of indefinite-lived intangibles and fixed assets |
|
— |
|
|
4,549 |
|
|
— |
|
Derivatives not designated in hedging relationships: |
|
|
|
|
|
|
Net (gains) losses |
|
(430 |
) |
|
178 |
|
|
1,856 |
|
Cash (settlements) proceeds |
|
905 |
|
|
(793 |
) |
|
(1,802 |
) |
Provision for doubtful accounts |
|
178 |
|
|
4,821 |
|
|
1,385 |
|
Deferred income taxes |
|
(8,994 |
) |
|
(16,486 |
) |
|
(6,456 |
) |
Non-cash interest expense |
|
2,072 |
|
|
1,673 |
|
|
1,316 |
|
Stock-based compensation |
|
19,817 |
|
|
20,780 |
|
|
22,608 |
|
Gain on disposal of property, plant, and equipment |
|
(3,883 |
) |
|
(86 |
) |
|
(258 |
) |
Changes in assets and
liabilities, net of effects of acquisitions: |
|
|
|
|
|
|
Accounts receivable |
|
8,713 |
|
|
26,486 |
|
|
5,974 |
|
Inventories |
|
24,176 |
|
|
(9,379 |
) |
|
(46,614 |
) |
Prepaid and other current assets |
|
27,292 |
|
|
(17,508 |
) |
|
(20,195 |
) |
Other assets |
|
424 |
|
|
3,089 |
|
|
(7,611 |
) |
Accounts payable |
|
20,797 |
|
|
(33,490 |
) |
|
9,944 |
|
Legal proceedings accrual |
|
— |
|
|
— |
|
|
7,258 |
|
Accrued expenses |
|
32,357 |
|
|
7,055 |
|
|
(4,937 |
) |
Other liabilities |
|
(12,736 |
) |
|
(12,650 |
) |
|
(14,896 |
) |
Net cash provided by operating
activities |
|
358,375 |
|
|
253,398 |
|
|
197,855 |
|
|
|
|
|
|
|
|
Cash flows from
investing activities |
|
|
|
|
|
|
Capital expenditures |
|
(70,020 |
) |
|
(101,425 |
) |
|
(70,372 |
) |
Purchase of businesses |
|
— |
|
|
(176,548 |
) |
|
(654,614 |
) |
Proceeds from sale of
facility |
|
— |
|
|
720 |
|
|
— |
|
Insurance proceeds relating to
property, plant and equipment |
|
4,800 |
|
|
403 |
|
|
— |
|
Proceeds from disposal of
property, plant, and equipment |
|
176 |
|
|
2,031 |
|
|
1,103 |
|
Net cash used in investing
activities |
|
(65,044 |
) |
|
(274,819 |
) |
|
(723,883 |
) |
|
|
|
|
|
|
|
Cash flows from
financing activities |
|
|
|
|
|
|
Net (repayments) borrowings on
short-term debt |
|
(15,934 |
) |
|
(5,325 |
) |
|
37,424 |
|
Proceeds from Amended 2017
Revolver borrowings |
|
102,000 |
|
|
386,700 |
|
|
531,100 |
|
Proceeds from 2027 Notes |
|
— |
|
|
300,000 |
|
|
— |
|
Repayments of Amended 2017
Revolver borrowings |
|
(210,000 |
) |
|
(517,700 |
) |
|
(427,600 |
) |
Proceeds from Amended 2017
Term Loan |
|
— |
|
|
— |
|
|
299,105 |
|
Repayments of Amended 2017
Term Loan |
|
(39,589 |
) |
|
(28,138 |
) |
|
(11,666 |
) |
Debt issuance costs |
|
— |
|
|
(4,607 |
) |
|
(1,393 |
) |
Finance lease obligations and
other |
|
650 |
|
|
995 |
|
|
368 |
|
Option proceeds |
|
9,114 |
|
|
1,417 |
|
|
9,048 |
|
Payment of taxes related to
net share settlement of equity awards |
|
(5,153 |
) |
|
(6,393 |
) |
|
(3,630 |
) |
Purchase of treasury
stock |
|
— |
|
|
(34,561 |
) |
|
(56,436 |
) |
Dividends paid to
stockholders |
|
(29,812 |
) |
|
(29,705 |
) |
|
(29,743 |
) |
Net cash (used in) provided by
financing activities |
|
(188,724 |
) |
|
62,683 |
|
|
346,577 |
|
Effect of exchange rate
changes on cash and cash equivalents |
|
20,222 |
|
|
(13,495 |
) |
|
(43,455 |
) |
Net increase (decrease) in
cash and cash equivalents |
|
124,829 |
|
|
27,767 |
|
|
(222,906 |
) |
Cash and cash equivalents at
beginning of year |
|
326,979 |
|
|
299,212 |
|
|
522,118 |
|
Cash and cash equivalents at
end of year |
|
$ |
451,808 |
|
|
$ |
326,979 |
|
|
$ |
299,212 |
|
|
|
|
|
|
|
|
Supplemental disclosures: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash investing and
financing activities: |
|
|
|
|
|
|
Common stock issued as partial
consideration for Alpha acquisition |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
93,268 |
|
EnerSys also announced that it will host a conference call to
discuss the Company's fourth quarter and full year fiscal 2021
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 27, 2021 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, May 27, 2021 |
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: |
3579697 |
A replay of the conference call will be available from 12:00
a.m. on May 27, 2021 through 12:00 a.m. on June 26, 2021.
The replay information is:
Via Internet: |
http://www.enersys.com |
Domestic Replay Number: |
855-859-2056 |
International Replay Number: |
404-537-3406 |
Passcode: |
3579697 |
For more information, contact Michael J. Schmidtlein, Chief
Financial Officer, EnerSys, P.O. Box 14145, Reading, PA 19612-4145,
USA. Tel: 610-236-4040 or by emailing
investorrelations@enersys.com; Website: www.enersys.com.
EDITOR'S NOTE: EnerSys, the global leader in stored energy
solutions for industrial applications, manufactures and distributes
energy systems solutions and motive power batteries, specialty
batteries, battery chargers, power equipment, battery accessories
and outdoor equipment enclosure solutions to customers worldwide.
Energy Systems, which combine enclosures, power conversion, power
distribution and energy storage, are used in the telecommunication,
broadband and utility industries, uninterruptible power supplies,
and numerous applications requiring stored energy solutions. Motive
power batteries and chargers are utilized in electric forklift
trucks and other industrial electric powered vehicles. Specialty
batteries are used in aerospace and defense applications, large
over-the-road trucks, premium automotive, medical and security
systems applications. EnerSys also provides aftermarket and
customer support services to its customers in over 100 countries
through its sales and manufacturing locations around the world.
With the recent NorthStar acquisition, EnerSys has solidified its
position as the market leader for premium Thin Plate Pure Lead
batteries which are sold across all three lines of business.
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 its cash dividend, its stock buy back programs,
future responses to and effects of the COVID-19 pandemic 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 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations,” including
“Forward-Looking Statements,” set forth in EnerSys’ Quarterly
Report on Form 10-Q for the period ended January 3, 2021. No undue
reliance should be placed on any forward-looking
statements.
Enersys (NYSE:ENS)
Historical Stock Chart
From Apr 2024 to May 2024
Enersys (NYSE:ENS)
Historical Stock Chart
From May 2023 to May 2024