Briggs & Stratton Corp. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended December 27, 2015; Revises Earnings Guidance for the Full Year 2016
For the six months, the company reported net sales of $702,837,000 against $736,916,000 a year ago. Loss from operations was $4,571,000 against $10,402,000 a year ago. Loss before income taxes was $10,282,000 against $15,385,000 a year ago. Net loss was $5,611,000 against $8,336,000 a year ago. Diluted loss per share was $0.13 against $0.19 a year ago. Net cash used in operating activities was $98,635,000 against $114,032,000 a year ago. Additions to plant and equipment were $25,843,000 against $23,289,000 a year ago. Adjusted income from operations was $4,922,000 against $6,359,000 a year ago. Adjusted loss before income taxes was $789,000 against adjusted income before income taxes of $1,376,000 a year ago. Adjusted net loss was $63,000 against adjusted net income of $2,559,000 a year ago. Adjusted basic and basic and diluted loss per share was $0.01 against adjusted net income per share of $0.05 a year ago. Net debt at December 27, 2015 was $257.8 million.
Given the first half operating performance, the company is increasing the company's earnings guidance for fiscal 2016. The company now estimates fiscal 2016 net income to be in a range of $56 million to $63 million or $1.25 to $1.41 per diluted share, up from previous guidance of $54 million to $61 million or $1.20 to $1.36 per diluted share. Operating margins are estimated to be 5.0% to 5.3%. The company continues to anticipate net sales for fiscal 2016 to be in a range of $1.90 billion to $1.96 billion. This sales range contemplates modest organic growth with the company's expectations of the U.S. market to improve by 1% to 3% for the next season. Fiscal 2016 reflects an expected return to a more normalized tax rate in the range of 31% to 33%, which includes the benefit of recently passed tax legislation. Interest expense and other income is estimated to be $21 million and $8.5 million, respectively. Capital expenditures are estimated to be $65 million to $70 million.