READING, Pa., Feb 07, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- EnerSys (NYSE: ENS), the
world's largest manufacturer, marketer and distributor of industrial
batteries, announced today its financial results for the third fiscal quarter
of 2007. Net earnings for this quarter were $11.0 million, or $0.24 per basic
share and $0.23 per diluted share. This compares to net earnings of $7.8
million, or $0.17 per basic and diluted share in the third fiscal quarter of
the prior year, and exceeds the previous guidance of $0.16 - $0.20 per diluted
share provided on November 8, 2006. The results for the third fiscal quarter
of 2007, and the guidance, included a non-recurring tax benefit of $0.04 per
share. Excluding this non-recurring tax benefit, adjusted net earnings for the
Company's third fiscal quarter of 2007 were $ 9.0 million, or $0.19 per basic
and diluted share. The results for the third fiscal quarter of 2006 included a
$2.6 million, $1.8 million net of tax charge primarily related to
restructuring activities. Excluding this restructuring charge, adjusted net
earnings for this quarter were $9.6 million or $0.21 per basic and $0.20 per
diluted share. Please refer to the paragraph below 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 third fiscal quarter of 2007 were $377.9 million
compared to $321.8 million in the comparable period of the prior year, or an
increase of 17.4 percent.
EnerSys' operating results for its reporting segments for the third fiscal
quarter of 2007 and comparable prior year period are as follows:
Fiscal quarters ended
(in millions)
December 31, 2006 January 1, 2006
Operating Operating
Net Sales Earnings Net Sales Earnings
Reserve Power $157.0 $7.4 $140.8 $8.0
Motive Power 220.9 13.8 181.0 11.7
Restructuring and
other charges - - - (2.6)
$377.9 $21.2 $321.8 $17.1
Net earnings for the nine fiscal months of 2007 were $34.6 million or
$0.74 per share basic and $0.73 per share diluted, including $0.06 per share
favorable impact from two legal settlements, the $0.04 per share non-recurring
tax benefit and the $0.01 per share unfavorable impact of legal and
professional fees related to a shelf registration statement and secondary
offering and an abandoned acquisition. This compares to net earnings of $19.0
million or $0.41 per basic and diluted share in the prior year period, which
included an $8.6 million, $5.9 million net of tax, charge primarily related to
restructuring activities. Excluding the highlighted charges and credits,
adjusted net earnings for the nine fiscal months of 2007 were $30.6 million or
$0.66 per basic and $0.64 per diluted share, compared to adjusted net earnings
for the nine fiscal months of 2006 of $24.9 million or $0.54 per basic and
$0.53 per diluted share. Please refer to the paragraph below under the heading
"Reconciliation of Non-GAAP Adjusted Financial Measures" for a discussion of
the Company's use of Non-GAAP adjusted financial information.
Net sales for the nine fiscal months of 2007 were $1,090.8 million
compared to $930.1 million in the prior year, or an increase of 17.3 percent.
EnerSys' operating results for its reporting segments for the nine fiscal
months of 2007 and comparable prior year period are as follows:
Nine fiscal months ended
(in millions)
December 31, 2006 January 1, 2006
Operating Operating
Net Sales Earnings Net Sales Earnings
Reserve Power $474.2 $27.1 $417.0 $26.2
Motive Power 616.6 40.6 513.1 27.0
Restructuring and
other charges - - - (8.6)
Litigation settlement
income - 3.8 - -
$1,090.8 $71.5 $930.1 $44.6
"I am pleased with our performance considering the continuing high
commodity costs," said John D. Craig, chairman, president and chief executive
officer of EnerSys. "Our success in realizing increased pricing and our
ongoing cost reduction initiatives are major contributors to our earnings
growth.
Craig added, "We anticipate that diluted net earnings per share for our
fourth quarter will be between $0.15 and $0.19. Our expected fourth quarter
earnings will be significantly affected by a 20 percent sequential, quarterly
increase in lead costs. This will increase our sequential quarterly costs by
approximately $15 million, an earnings per share impact of $0.21. We announced
additional price increases in both November 2006 and January 2007; however,
these pricing actions will not be fully realized until after the fourth
quarter. Further cost savings initiatives, continued progress in pricing
recovery and historically strong fourth quarter sales volume are all expected
to substantially offset these higher commodity costs. We remain committed to
achieving additional pricing recovery if commodity costs continue to
increase."
This press release contains forward-looking statements (within the meaning
of the Private Securities Litigation Reform Act of 1995) that are based on
management's current expectations and subject to uncertainties and changes in
circumstances. The Company's actual results may differ materially from the
forward-looking statements for a number of reasons. For a list of the factors,
which could affect the Company's results, including earnings estimates, see
"Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations," including "Forward-Looking Statements," set forth in
the Company's Quarterly Report on Form 10-Q for the third fiscal quarter ended
December 31, 2006, which was filed with the U.S. Securities and Exchange
Commission.
Reconciliation of Non-GAAP Adjusted 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 non-GAAP measures in their analysis of the
Company's performance. These measures, as used by EnerSys in past quarters,
adjust net earnings determined in accordance with GAAP to reflect changes in
financial results associated with the Company's restructuring initiatives and
unusual charges and income items. Management believes presentations of
financial measures reflecting these non-GAAP adjustments provide important
supplemental measurement information in evaluating the operating results of
the Company as distinct from results that include items that are not
indicative of ongoing operating results; in particular, the charges that the
Company incurs as a result of restructuring activities associated with our
acquisitions. Because these charges are incurred as a result of an
acquisition, they are not a valid measure of the performance of our underlying
business and accordingly, they are non-recurring in nature. These disclosures
have limitations as an analytical tool, should not be viewed as a substitute
for net earnings determined in accordance with GAAP, 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.
Included below is a reconciliation of non-GAAP adjusted financial measures
to reported amounts. Non-GAAP adjusted net earnings are calculated excluding
restructuring and highlighted charges. The following tables provide additional
information regarding certain non-GAAP measures:
Fiscal quarters ended
December 31, January 1,
2006 2006
(in millions, except
share and per share amounts)
Net earnings reconciliation
As reported net earnings $11.0 $7.8
Non-GAAP adjustments (net of tax):
Restructuring charge - 1.8 (1)
Non-recurring tax benefit (2.0) (2) -
Non-GAAP adjusted net earnings $9.0 $9.6
Outstanding shares used
in per share calculations
Basic 46,597,387 46,249,384
Diluted 47,699,968 46,949,052
Non-GAAP adjusted net earnings per share:
Basic $0.19 $0.21
Diluted $0.19 $0.20
Reported net earnings per share:
Basic $0.24 $0.17
Diluted $0.23 $0.17
Nine fiscal months ended
December 31, January 1,
2006 2006
(in millions, except
share and per share amounts)
Net earnings reconciliation
As reported net earnings $34.6 $19.0
Non-GAAP adjustments (net of tax):
Restructuring charge - 5.9 (1)
Litigation settlement income (2.6) (3) -
Shelf registration statement
and secondary offering
and an abandoned acquisition 0.6 (4) -
Non-recurring tax benefit (2.0) (2) -
Non-GAAP adjusted net earnings $30.6 $24.9
Outstanding shares used
in per share calculations
Basic 46,469,119 46,210,187
Diluted 47,538,258 46,738,021
Non-GAAP adjusted net
earnings per share:
Basic $0.66 $0.54
Diluted $0.64 $0.53
Reported net earnings per share:
Basic $0.74 $0.41
Diluted $0.73 $0.41
(1) Resulting from a pretax charges of $2.6 million in the fiscal third
quarter of 2006 and $8.6 million in the fiscal nine months of 2006,
primarily for severance costs related to staff reductions and other
acquisition related restructuring activities in Europe.
(2) Resulting from a non-recurring, favorable tax benefit, recorded in
the third fiscal quarter of 2007.
(3) Resulting from two favorable legal settlements, net of fees and
expenses, recorded in the first and second fiscal quarters of 2007.
(4) Resulting from legal and professional fees related to a shelf
registration statement and secondary offering, and an abandoned
acquisition, recorded in the second and third fiscal quarters of
2007.
EnerSys
Summary of Earnings
(In millions, except share and per share data)
(Unaudited)
Fiscal quarter ended
(in millions)
December 31, January 1,
2006 2006
Net sales $377.9 $321.8
Gross profit 76.9 69.6
Operating expenses 55.7 49.9
Restructuring and other charges - 2.6
Operating earnings 21.2 17.1
Earnings before income taxes 13.1 11.0
Net earnings $11.0 $7.8
Net earnings per common share
Basic $0.24 $0.17
Diluted $0.23 $0.17
Weighted average shares outstanding
Basic 46,597,387 46,249,384
Diluted 47,699,968 46,949,052
EnerSys
Summary of Earnings
(In millions, except share and per share data)
(Unaudited)
Nine fiscal months ended
(in millions)
December 31, January 1,
2006 2006
Net sales $1,090.8 $930.1
Gross profit 231.7 200.3
Operating expenses 164.0 147.1
Restructuring and other charges - 8.6
Litigation settlement income (3.8) -
Operating earnings 71.5 44.6
Earnings before income taxes 47.8 28.0
Net earnings $34.6 $19.0
Net earnings per common share
Basic $0.74 $0.41
Diluted $0.73 $0.41
Weighted average shares outstanding
Basic 46,469,119 46,210,187
Diluted 47,538,258 46,738,021
EnerSys will host a conference call to discuss the Company's third fiscal
quarter 2007 financial results and provide an overview of the business. The
call will conclude with a question and answer session.
The call, scheduled for February 8, 2007, at 9:00 a.m. Eastern Time, will
be hosted by John D. Craig, Chairman, President and Chief Executive Officer
and Michael T. Philion, Executive Vice President - Finance and Chief Financial
Officer.
The call will also be Webcast on EnerSys' Web site. There will be a free
download of a compatible media player on the Company's Web site at
http://www.enersys.com.
The conference call information is:
Date: Thursday, February 8, 2007
Time: 9:00 a.m. Eastern Time
Via Internet: http://www.enersys.com
Domestic Call-In Number: 800-299-7928
International Dial-In Number: 617-614-3926
Passcode: 40707378
A replay of the conference call will be available from 11:00 a.m. on
February 8, 2007, through midnight on March 8, 2007.
The replay information is:
Via Internet: http://www.enersys.com
Domestic Replay Number: 888-286-8010
International Replay Number: 617-801-6888
Passcode: 68380978
For more information, please contact Richard Zuidema, Executive Vice
President, EnerSys, P.O. Box 14145, Reading, PA 19612-4145.
Tel: 800-538-3627; Website http://www.enersys.com.
About EnerSys
EnerSys, the world leader in stored energy solutions for industrial
applications, manufactures, distributes and services reserve power and motive
power batteries, chargers, power equipment, and battery accessories to
customers worldwide. Reserve power batteries are used in the
telecommunications and utility industries, uninterruptible power suppliers,
and numerous applications requiring standby power. Motive power batteries are
utilized in electric forklift trucks and other commercial electric powered
vehicles. The Company also provides aftermarket and customer support services
to its customers from over 100 countries through its sales and manufacturing
locations around the world.
More information regarding EnerSys can be found at http://www.enersys.com.
SOURCE EnerSys
Richard Zuidema, Executive Vice President, EnerSys, +1-800-538-3627
