EnerSys Reports Unaudited Earnings Results for the Third Quarter and Nine Months Ended December 27, 2015; Provides Earnings Guidance for the Fourth Quarter of 2016 and Capital Expenditures Guidance for the Full Year 2016
January 28, 2016 at 09:20 pm
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EnerSys reported unaudited earnings results for the third quarter and nine months ended December 27, 2015. For the quarter, the company reported net sales of $573.6 million compared to $611.6 million a year ago. Net earnings attributable to the stockholders were $38.5 million, or $0.86 per diluted share, including an unfavorable highlighted net of tax impact of $0.06 per share from a charge of $2.4 million for restructuring plans and $0.6 million for ERP system implementation. The net earnings of $0.86 per diluted share compares to net earnings of $1.04 per diluted share for the third quarter of fiscal 2015, which included an unfavorable highlighted net of tax impact of $0.05 per share impact from charges of $1.9 million for restructuring and other exit costs, $0.4 million for ERP system implementation and $0.1 million for fees related to acquisition activities. Total operating earnings $55.5 million compared to $68.7 million a year ago.
For the nine months, the company's net earnings were $126.9 million, or $2.76 per diluted share, including an unfavorable net of tax impact of $0.14 per share from a charge of $5.3 million for restructuring plans, $2.9 million for legal proceedings charge. Net earnings were $154.7 million, or $3.19 per diluted share, including a favorable net of tax impact of $0.02 per share from a legal accrual reversal, net of professional fees of $9.9 million and gain of $2.0 million in connection with the disposition of equity interest in Altergy, pursuant to a legal settlement, partially offset by charges of $4.6 million for restructuring and other exit costs, $5.3 million for stock-based compensation of senior executives, $0.9 million for ERP system implementation and $0.4 million for fees related to acquisition activities. Adjusted net earnings, on a non-GAAP basis, were $2.90 per diluted share. This compares to the prior year nine months adjusted net earnings of $3.17 per diluted share. Net sales were $1,704.8 million, a decrease of 9% from the net sales of $1,875.6 million in the comparable period in fiscal 2015. The 9% decrease was largely the result of an 8% decrease due to foreign currency translation impact and a 3% decrease in organic volume, partially offset by a 1% increase each from acquisitions and pricing. Total operating earnings were $184.1 million compared to $220.4 million a year ago. Capital expenditures were nearly $46 million.
The company provided earnings guidance for the fourth quarter of 2016. The company's fourth quarter guidance for non-GAAP adjusted net earnings per diluted share is $0.98 to $1.02, which excludes an expected charge of $0.04 from ongoing restructuring programs, ERP system implementation and acquisition expenses. Tax rate will be between 23% and 25% on adjusted net earnings.
For the year 2016, tax rate will be 24% on adjusted net earnings. Capital expenditures should reach up to $70 million.
EnerSys is engaged in designing, manufacturing, and distributing energy systems solutions, motive power batteries, specialty batteries, battery chargers, power equipment, battery accessories and outdoor thermal equipment enclosures solutions. The Companyâs segment includes Energy Systems, Motive Power, Specialty and New Ventures. The Energy Systems segment offers uninterruptible power systems (UPS) applications for computer and computer-controlled systems used in data centers, as well as telecommunications systems, switchgear and electrical control systems used in industrial facilities and electric utilities. The Motive Power segment offers power for electric industrial forklifts used in manufacturing, warehousing, and other material handling applications, as well as mining equipment, and diesel locomotive starting. Specialty segment offers batteries for starting, lighting and ignition applications in automotive and large over-the-road trucks, energy storage solutions for satellites.
EnerSys Reports Unaudited Earnings Results for the Third Quarter and Nine Months Ended December 27, 2015; Provides Earnings Guidance for the Fourth Quarter of 2016 and Capital Expenditures Guidance for the Full Year 2016