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EnerSys Reports Second Quarter Fiscal 2013 Results

READING, Pa., Nov. 5, 2012 /PRNewswire/ -- EnerSys (NYSE: ENS) the global leader in stored energy solutions for industrial applications, announced today results for its second quarter of fiscal 2013, which ended on September 30, 2012.

Net earnings attributable to EnerSys stockholders ("Net earnings") for the second quarter of fiscal 2013 were $43.8 million, or $0.90 per diluted share, including an unfavorable net of tax impact of $0.02 per share from a charge of $1.0 million for restructuring plans. The net earnings of $0.90 per diluted share, compares to diluted net earnings per share of $0.57 for the second quarter of fiscal 2012, which included an unfavorable net of tax impact of $0.01 per share from a charge of $0.7 million for restructuring plans and $0.4 million for fees related to acquisition activities, partially offset by a $0.6 million legal settlement income.

Excluding these highlighted items, adjusted net earnings per diluted share for the second quarter of fiscal 2013, on a non-GAAP basis was $0.92, which exceeds the guidance of $0.85 to $0.89 per diluted share given by the Company on August 8, 2012. These earnings compare to the prior year second quarter adjusted net earnings of $0.58 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 second quarter of fiscal 2013 were a second quarter record $554.2 million, an increase of 1% from the prior year second quarter net sales of $547.2 million. The 1% increase was the result of a 2% increase in organic volume, 4% increase from acquisitions, a 4% decrease from foreign currency translation impact and a 1% decrease due to pricing. Sequential quarterly sales decreased 7% from the first quarter of fiscal 2013 net sales of $593.9 million due to a 6% decrease in organic volume and a 1% decrease due to pricing.

The Company's operating results for its business segments for the second quarters of fiscal 2013 and 2012 are as follows:

 


Quarter ended


($ Millions)


September 30,


October 2,


2012


2011

Net sales by Segment








Europe

$

215.4



$

245.3


Americas


276.7




252.3


Asia


62.1




49.6










Total net sales

$

554.2



$

547.2










Operating earnings








Europe

$

14.1



$

14.7


Americas


43.6




28.0


Asia


6.6




0.5


Restructuring charges-Europe


(1.3)




(0.9)


Legal proceedings settlement income-Europe


-




0.9


Acquisition activity expense-Americas


(0.1)




(0.7)










Total operating earnings

$

62.9



$

42.5


 

Net earnings for the six months of fiscal 2013 were $89.6 million or $1.84 per diluted share, including an unfavorable net of tax impact of $0.03 per share from a charge of $1.3 million for restructuring plans and $0.1 million for fees related to acquisition activities.

Net earnings for the six months of fiscal 2012 were $61.8 million or $1.23 per diluted share, and included an unfavorable net of tax impact of $0.03 per share from a charge of $1.0 million for restructuring plans and $0.9 million for fees related to acquisition activities partially offset by a $0.6 million legal settlement in favor of the Company. 

Adjusted net earnings for the six months of fiscal 2013, on a non-GAAP basis, were $1.87 per diluted share. This compares to the prior year six months adjusted net earnings of $1.26 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 six months of fiscal 2013 were $1,148.1 million, an increase of 3% from the net sales of $1,116.4 million in the comparable period in fiscal 2012. The 3% increase was the result of a 4% increase in organic volume and a 4% increase from acquisitions partially offset by a 5% decrease from foreign currency translation impact.

The Company's operating results for its business segments for the six months of fiscal years 2013 and 2012 are as follows:

 


Six Months ended


($ Millions)


September 30,


October 2,


2012


2011

Net sales by Segment








Europe

$

452.5



$

498.3


Americas


565.6




511.5


Asia


130.0




106.6










Total net sales

$

1,148.1



$

1,116.4










Operating earnings








Europe

$

31.3



$

28.9


Americas


88.2




60.2


Asia


15.5




3.9


Restructuring charges-Europe


(1.7)




(1.3)


Legal proceedings settlement income-Europe


-




0.9


Acquisition activity expense-Europe


-




(0.1)


Acquisition activity expense-Americas


(0.2)




(1.3)










Total operating earnings

$

133.1



$

91.2


 

"During our second quarter we achieved record second quarter sales and operating earnings and reached our gross profit percentage target of 25% for the second consecutive quarter," stated John D. Craig, chairman, president and chief executive officer of EnerSys. "I am very pleased with our second quarter adjusted earnings of $0.92 per diluted share."

Mr. Craig added, "Our third quarter guidance for adjusted net earnings per diluted share is between $0.77 to $0.81, which excludes the expected charge of $0.08 from our restructuring programs and acquisition expenses. Recently, we experienced a slowing in our order intake which we expect will lead to a sequential reduction in our third quarter sales.  If we continue to experience softness in our global markets we plan to take actions similar to those we took in 2009 to take costs out of our businesses, including additional restructuring programs, with the objective of improving longer term profitability." 


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 measure "adjusted net earnings" in their analysis of the Company's performance. This measure, as used by EnerSys in past quarters and years, adjusts 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 this financial measure 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; in particular, those charges that the Company incurs as a result of restructuring activities and those charges and credits that are not directly related to operating unit performance, such as fees and expenses related to acquisition activities. Because these charges are not incurred as a result of ongoing operations or are incurred as a result of a potential acquisition, they are not a helpful measure of the performance of our underlying business. This non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for 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 is it 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 other highlighted charges and credits. The following tables provide additional information regarding certain non-GAAP measures:

 


Quarter ended



September 30,

2012



October 2,

2011



(in millions, except share and per share amounts)


Net earnings reconciliation








As reported net earnings

$

43.8



$

28.3


Non-GAAP adjustments, net of tax:








Restructuring charge-Europe


1.0

(1)



0.7

(1)

Legal proceedings settlement income-Europe


-




(0.6)

(3)

Acquisition activity expense-Americas


-

(2)



0.4

(2)

Non-GAAP adjusted net earnings

$

44.8



$

28.8










Outstanding shares used in per share calculations








Basic


48,188,331




49,469,694


Diluted


48,719,916




49,806,964










Non-GAAP adjusted net earnings per share:








Basic

$

0.93



$

0.58


Diluted

$

0.92



$

0.58










Reported net earnings per share:








Basic

$

0.91



$

0.57


Diluted

$

0.90



$

0.57


 

 


Six Months ended



September 30,

2012



October 2,

2011



(in millions, except share and per share amounts)


Net earnings reconciliation








As reported net earnings

$

89.6



$

61.8


Non-GAAP adjustments, net of tax:








Restructuring charge-Europe


1.3

(1)



1.0

(1)

Legal proceedings settlement income-Europe


-




(0.6)

(3)

Acquisition activity expense-Europe


-




0.1

(2)

Acquisition activity expense-Americas


0.1

(2)



0.8

(2)

Non-GAAP adjusted net earnings

$

91.0



$

63.1










Outstanding shares used in per share calculations








Basic


48,044,767




49,761,160


Diluted


48,573,454




50,237,620










Non-GAAP adjusted net earnings per share:








Basic

$

1.89



$

1.27


Diluted

$

1.87



$

1.26










Reported net earnings per share:








Basic

$

1.86



$

1.24


Diluted

$

1.84



$

1.23


 

(1)

Resulting from pre-tax restructuring charges in Europe of approximately $1.3 million in the second quarter of fiscal 2013 and approximately $0.9 million in the second quarter of fiscal 2012 and approximately $1.7 million for the six months of fiscal 2013 and approximately $1.3 million for the six months of fiscal 2012.

(2)

Resulting from pre-tax charges for acquisition activity expense in Americas of approximately $0.1 million in the second quarter of fiscal 2013 and $0.7 million in the second quarter of fiscal 2012. Pre-tax charges for acquisition activity expense for the six months of fiscal 2013 in Americas was approximately $0.2 million compared to $0.1 million in Europe and $1.3 million in Americas in the six months of fiscal 2012.

(3)

Resulting from pre-tax legal settlement income of approximately $0.9 million in Europe in the second quarter of fiscal 2012 relating to a fiscal 2009 litigation whereby the Company's share of damages was reduced and monies refunded.


 

Summary of Earnings (Unaudited)

(In millions, except share and per share data)





Quarter ended



September 30,

2012


October 2,

2011









Net sales

$

554.2


$

547.2


Gross profit


138.3



114.4


Operating expenses


74.1



71.9


Restructuring charges


1.3



0.9


Legal proceedings settlement income


-



(0.9)


Operating earnings


62.9



42.5


Earnings before income taxes


59.7



38.4


Net earnings attributable to EnerSys stockholders

$

43.8


$

28.3









Net earnings per common share attributable to EnerSys stockholders:







Basic

$

0.91


$

0.57


Diluted

$

0.90


$

0.57


Weighted average shares outstanding:







Basic


48,188,331



49,469,694


Diluted


48,719,916



49,806,964









 

 


Six Months ended



September 30,

2012


October 2,

2011









Net sales

$

1,148.1


$

1,116.4


Gross profit


286.6



236.4


Operating expenses


151.8



144.8


Restructuring charges


1.7



1.3


Legal proceedings settlement income


-



(0.9)


Operating earnings


133.1



91.2


Earnings before income taxes


124.0



82.5


Net earnings attributable to EnerSys stockholders

$

89.6


$

61.8









Net earnings per common share attributable to EnerSys stockholders:







Basic

$

1.86


$

1.24


Diluted

$

1.84


$

1.23


Weighted average shares outstanding:







Basic


48,044,767



49,761,160


Diluted


48,573,454



50,237,620










EnerSys will host a conference call to discuss the Company's second quarter fiscal 2013 financial results and provide an overview of the business. The call will conclude with a question and answer session.

The call, scheduled for Tuesday, November 6, 2012 at 9:00 a.m. Eastern Time, will be hosted by John D. Craig, Chairman, President & Chief Executive Officer, and Michael J. Schmidtlein, Senior Vice President Finance and Chief Financial Officer.

A live webcast of the conference call will be available on the Company's website at http://www.enersys.com under the "Investor Relations" link. Presentation materials to be used in conjunction with the conference call will become available under the aforementioned link shortly following the issuance of this press release.

The conference call information is:

Date:

Tuesday, November 6, 2012

Time:

9:00 a.m. Eastern Time

Via Internet:

http://www.enersys.com

Domestic Dial-In Number:

800-688-0836

International Dial-In Number:

617-614-4072

Passcode:

54218518

A replay of the conference call will be available from 11:00 a.m. on November 6, 2012 through 11:59 p.m. on December 4, 2012.

The replay information is:

Via Internet:

http://www.enersys.com

Domestic Replay Number:

888-286-8010

International Replay Number:

617-801-6888

Passcode:

45333834

EDITOR'S NOTE: EnerSys, the world leader in stored energy solutions for industrial applications, manufactures and distributes reserve power and motive power batteries, chargers, power equipment, and battery accessories to customers worldwide. Motive power batteries are utilized in electric fork trucks and other commercial electric powered vehicles. Reserve power batteries are used in the telecommunications and utility industries, uninterruptible power supplies, and numerous applications requiring standby power. 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 under the direction of its Americas, Europe and Asia regional headquarters.

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, 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, and market share, as well as statements expressing optimism or pessimism about future operating results, 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, including "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations," including "Forward-Looking Statements," set forth in EnerSys' Annual Report on Form 10-K for the fiscal year ended March 31, 2012. No undue reliance should be placed on any forward-looking statements.

SOURCE EnerSys

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