Delivers Gross Margin of 28.9%, Up 570 Basis Points From Prior Year and EPS of $1.86, Up 72% From Prior Year
Third Quarter Fiscal 2024 Highlights
(All comparisons against the third quarter of fiscal year 2023 unless otherwise noted)
- Delivered net sales of $862M, down 6%, primarily driven by temporary spending pauses in telecom and broadband
- Achieved GM of 28.9%, +570 bps, including $59M benefit from Inflation Reduction Act / IRC 45X tax credits
- Achieved adjusted GM(b) of 30.7%, +760 bps; excluding $59M benefit from IRC 45X tax credits 23.9%, up 80 bps
- Generated operating earnings of $93M, +18%, and adjusted operating earnings(2) of $130M, +53%
- Realized diluted EPS of $1.86, +72%, and adjusted diluted EPS(1) of $2.56, +102%
- Reduced net leverage(a) to 1.1 X EBITDA on operating cash flow of $135M
- Published second annual Task Force on Climate-Related Financial Disclosure (TCFD) Report
- Subsequent to the quarter end, issued $300M aggregate principal 6.625% senior notes due 2032
READING, Pa.–(BUSINESS WIRE)–#EnerSys–EnerSys (NYSE: ENS), the global leader in stored energy solutions for industrial applications, announced today results for its third quarter of fiscal 2024, which ended on December 31, 2023.
|
Message from the CEO |
We were pleased to deliver the third quarter of fiscal 2024 with adjusted EPS above the midpoint of our guidance range. Sales were lower versus the prior year as we continue to see demand pauses in the telecom and broadband markets as well as a return to normalcy in Motive Power orders, partially offset by strength in Specialty, services, and data centers, particularly in the Americas. We continue to hold price, a testament to the customer value we deliver. Order rates improved in the quarter with book-to-bill of 1.0. Motive Power delivered strong operating earnings in the quarter supported by ongoing increases in maintenance-free system sales. We are making consistent progress towards delivering the first 15 Fast Charge & Storage (FC&S) systems for our launch customer with installations targeted to begin this summer and our sales pipeline continues to grow as this new line of business has begun to materialize. We are continuing to take decisive actions to reduce our costs in the current lower telecom and broadband demand environment and are rebalancing our production lines to increase productivity.
During the quarter, based on additional proposed regulations issued by the U.S. Department of Treasury regarding Section 45X of the Internal Revenue Code, we concluded that more of our battery sales than previously anticipated qualify for the related tax credits, which supported our gross margin of 28.9%. As a result, we recorded a benefit of $59 million, including $29 million of retroactive credits. We now expect our estimated annual IRC 45X tax credits to be in the range of $120 million to $160 million.
Our balance sheet was a highlight this quarter with operating cash flow conversion of 177% and adjusted free cash flow conversion(b) 106%, which lowered leverage to 1.1X EBITDA. We reduced inventory through a targeted approach to specific raw materials and products.
We continue to methodically execute on our strategic growth plans. We remain highly confident in EnerSys’s position as a global leader in electrification and energy storage applications, with demand driven by critical global megatrends. With our industry-leading system solutions and strong customer relationships, we are well-positioned for growth in our diverse end markets.
David M. Shaffer, President and Chief Executive Officer, EnerSys
|
Key Financial Results and Metrics |
Third quarter ended |
|
Nine months ended |
||||||||||||||||
|
In millions, except per share amounts |
December 31, 2023 |
|
January 1, 2023 |
|
Change |
|
December 31, 2023 |
|
January 1, 2023 |
|
Change |
||||||||
|
Net Sales |
$ |
861.5 |
|
$ |
920.2 |
|
|
(6.4 |
)% |
|
$ |
2,671.1 |
|
$ |
2,718.6 |
|
|
(1.7 |
)% |
|
Diluted EPS (GAAP) |
$ |
1.86 |
|
$ |
1.08 |
|
$ |
0.78 |
|
|
$ |
5.02 |
|
$ |
2.66 |
|
$ |
2.36 |
|
|
Adjusted Diluted EPS (Non-GAAP)(1) |
$ |
2.56 |
|
$ |
1.27 |
|
$ |
1.29 |
|
|
$ |
6.27 |
|
$ |
3.52 |
|
$ |
2.75 |
|
|
Gross Profit (GAAP) |
$ |
248.6 |
|
$ |
213.7 |
|
$ |
34.9 |
|
|
$ |
728.5 |
|
$ |
594.1 |
|
$ |
134.4 |
|
|
Operating Earnings (GAAP) |
$ |
92.6 |
|
$ |
78.5 |
|
$ |
14.1 |
|
|
$ |
270.6 |
|
$ |
182.9 |
|
$ |
87.7 |
|
|
Adjusted Operating Earnings (Non-GAAP)(2) |
$ |
130.3 |
|
$ |
84.9 |
|
$ |
45.4 |
|
|
$ |
341.0 |
|
$ |
215.1 |
|
$ |
125.9 |
|
|
Net Earnings (GAAP) |
$ |
76.2 |
|
$ |
44.4 |
|
$ |
31.8 |
|
|
$ |
208.2 |
|
$ |
109.9 |
|
$ |
98.3 |
|
|
EBITDA (Non-GAAP)(3) |
$ |
113.5 |
|
$ |
97.9 |
|
$ |
15.6 |
|
|
$ |
333.0 |
|
$ |
248.4 |
|
$ |
84.6 |
|
|
Adjusted EBITDA (Non-GAAP)(3) |
$ |
144.3 |
|
$ |
98.1 |
|
$ |
46.2 |
|
|
$ |
382.3 |
|
$ |
269.3 |
|
$ |
113.0 |
|
|
Share Repurchases |
$ |
35.0 |
|
$ |
— |
|
$ |
35.0 |
|
|
$ |
82.3 |
|
$ |
22.9 |
|
$ |
59.4 |
|
|
Dividend per share |
$ |
0.225 |
|
$ |
0.175 |
|
$ |
0.05 |
|
|
$ |
0.625 |
|
$ |
0.525 |
|
$ |
0.10 |
|
|
Total Capital Returned to Stockholders |
$ |
44.1 |
|
$ |
7.1 |
|
$ |
37 |
|
|
$ |
107.8 |
|
$ |
44.2 |
|
$ |
63.6 |
|
(a) Net leverage ratio is a non-GAAP financial measure as defined pursuant to our credit agreement and discussed under Reconciliations of GAAP to Non-GAAP Financial Measures.
(b) Adjusted gross margin, and adjusted free cash flow conversion are non-GAAP financial measures defined and discussed under Reconciliations of GAAP to Non-GAAP Financial Measures.
(1) Adjusted Diluted EPS is a non-GAAP financial measure and discussed under Reconciliations of GAAP to Non-GAAP Financial Measures.
(2) Operating Earnings are adjusted for charges that the Company incurs as a result of restructuring and exit 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. A reconciliation of operating earnings to Non-GAAP Adjusted Earnings are provided in tables under the section titled Business Segment Operating Results.
(3) Net Earnings are adjusted for depreciation, amortization, interest and income taxes to arrive at Non-GAAP EBITDA. Non-GAAP Adjusted EBITDA is further adjusted for certain charges such as restructuring and exit activities, impairment of goodwill and indefinite-lived intangibles and other assets, acquisition activities and other charges and credits as discussed under Reconciliations of GAAP to Non-GAAP Financial Measures.
Summary of Results
Third Quarter 2024
Net sales for the third quarter of fiscal 2024 were $861.5 million, a decrease of 6.4% from the prior year third quarter net sales of $920.2 million. The decrease compared to prior year quarter was the result of a 7% decrease in organic volume, partially offset by a 1% increase in pricing.
Net earnings attributable to EnerSys stockholders (“Net earnings”) for the third quarter of fiscal 2024 was $76.2 million, or $1.86 per diluted share, which included an unfavorable highlighted net of tax impact of $28.8 million, or $0.70 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 third quarter of fiscal 2023 was $44.4 million, or $1.08 per diluted share, which included an unfavorable highlighted net of tax impact of $7.9 million, or $0.19 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 third quarter of fiscal 2024, on a non-GAAP basis, were $2.56, compared to the guidance of $2.50 to $2.60 per diluted share for the third quarter given by the Company on December 19, 2023. These earnings compare to the prior year third quarter adjusted Net earnings of $1.27 per diluted share. Please refer to the section included herein under the heading “Reconciliations of GAAP to 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 December 31, 2023 and January 1, 2023.
In the first quarter of fiscal 2024, we introduced a new line of business, New Ventures, that includes energy storage and management systems for demand charge reduction, utility back-up power, and dynamic fast charging for electric vehicles. The financial results of the New Ventures segment includes start up operating expenses and is included in the Corporate and other line in our operating earnings.
Fiscal Year to Date 2024
Net sales for the nine months of fiscal 2024 were $2,671.1 million, a decrease of 1.7% from the prior year nine months net sales of $2,718.6 million. This decrease was due to an 8% decrease in organic volume, partially offset by a 5% increase in pricing and a 1% increase in foreign currency translation.
Net earnings for the nine months of fiscal 2024 was $208.2 million, or $5.02 per diluted share, which included an unfavorable highlighted net of tax impact of $51.9 million, or $1.25 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 nine months of fiscal 2023 was $109.9 million, or $2.66 per diluted share, which included an unfavorable highlighted net of tax impact of $35.5 million, or $0.86 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 nine months of fiscal 2024, on a non-GAAP basis, were $6.27. This compares to the prior year nine months adjusted Net earnings of $3.52 per diluted share. Please refer to the section included herein under the heading “Reconciliations of GAAP to Non-GAAP Financial Measures” for a discussion of the Company’s use of non-GAAP adjusted financial information.
Fourth Quarter 2024 Outlook
In the fourth quarter of fiscal 2024, we expect:
- Adjusted diluted earnings per share in the range of $1.98 to $2.08, inclusive of $0.80 to $0.90 from IRC 45X tax benefits under the IRA. Note that the IRS has not yet finalized guidance related to section 45X, which could materially increase or decrease the quantity of our U.S. produced batteries that qualify for this credit.
- Gross margin in the range of 26.0% to 28.0%, including 350bps to 410bps from IRA credits.
- For the full year of fiscal 2024, we expect capital expenditures to be in the range of $80 million to $100 million.
“We remain optimistic about the trajectory of our business and are particularly pleased with our continued ability to maintain pricing. While we are seeing healthy demand trends in the majority of our end markets, we are managing our business prudently to navigate the temporary spending pauses by our telecom and broadband customers. We are well-positioned to capitalize on market opportunities as we deliver innovative products that are strategically aligned with secular trends,” said Andrea Funk, EnerSys Chief Financial Officer.
Please refer to the section included herein under the heading “Reconciliations of GAAP to Non-GAAP Financial Measures” for a discussion of the Company’s use of non-GAAP adjusted financial information.
Conference Call and Webcast Details
The Company will host a conference call to discuss its third quarter 2024 financial results at 9:00 AM (EST) Thursday, February 8, 2024. A live broadcast as well as a replay of the call can be accessed via https://edge.media-server.com/mmc/p/ie42kc8w/ or the Investor Relations section of the company’s website at https://investor.enersys.com.
To join the live call, please register at https://register.vevent.com/register/BI08ed58087c944a6ebf8d5ef243abafaa. A dial-in and unique PIN will be provided upon registration.
About EnerSys
EnerSys is the global leader in stored energy solutions for industrial applications and designs, 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. The company goes to market through four lines of business: Energy Systems, Motive Power, Specialty and New Ventures. Energy Systems, which combine power conversion, power distribution, energy storage, and enclosures, 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. New Ventures provides energy storage and management systems for various applications including demand charge reduction, utility back-up power, and dynamic fast charging for electric vehicles. EnerSys also provides aftermarket and customer support services to its customers in over 100 countries through its sales and manufacturing locations around the world. More information regarding EnerSys can be found at www.enersys.com.
Sustainability
Sustainability at EnerSys is about more than just the benefits and impacts of our products. Our commitment to sustainability encompasses many important environmental, social and governance issues. Sustainability is a fundamental part of how we manage our own operations. Minimizing our environmental footprint is a priority. Sustainability is our commitment to our employees, our customers and the communities we serve. Our products facilitate positive environmental, social, and economic impacts around the world. To learn more visit: https://www.enersys.com/en/about-us/sustainability/.
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, ability to identify and realize benefits in connection with acquisition and disposition opportunities, 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, application of Section 45X of the Internal Revenue Code, future responses to and effects of the pandemic, adverse developments with respect to the economic conditions in the U.S. in the markets in which we operate and other uncertainties, including the impact of supply chain disruptions, interest rate changes, inflationary pressures, geopolitical and other developments and labor shortages on the economic recovery and our business 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,” and “Forward-Looking Statements,” set forth in EnerSys’ Annual Report on Form 10-K for the fiscal year ended March 31, 2023. No undue reliance should be placed on any forward-looking statements.
|
EnerSys Consolidated Condensed Statements of Income (Unaudited) (In millions, except share and per share data) |
|||||||||||
|
|
Quarter ended |
|
Nine months ended |
||||||||
|
|
December 31, 2023 |
|
January 1, 2023 |
|
December 31, 2023 |
|
January 1, 2023 |
||||
|
Net sales |
$ |
861.5 |
|
$ |
920.2 |
|
$ |
2,671.1 |
|
$ |
2,718.6 |
|
Gross profit |
|
248.6 |
|
|
213.7 |
|
|
728.5 |
|
|
594.1 |
|
Operating expenses |
|
143.9 |
|
|
134.4 |
|
|
432.3 |
|
|
398.8 |
|
Restructuring and other exit charges |
|
6.1 |
|
|
0.8 |
|
|
19.6 |
|
|
12.4 |
|
Impairment of indefinite-lived intangibles |
|
6.0 |
|
|
— |
|
|
6.0 |
|
|
— |
|
Operating earnings |
|
92.6 |
|
|
78.5 |
|
|
270.6 |
|
|
182.9 |
|
Earnings before income taxes |
|
78.7 |
|
|
57.8 |
|
|
225.6 |
|
|
134.9 |
|
Income tax expense |
|
2.5 |
|
|
13.4 |
|
|
17.4 |
|
|
25.0 |
|
Net earnings attributable to EnerSys stockholders |
$ |
76.2 |
|
$ |
44.4 |
|
$ |
208.2 |
|
$ |
109.9 |
|
|
|
|
|
|
|
|
|
||||
|
Net reported earnings per common share attributable to EnerSys stockholders: |
|
|
|
|
|
|
|
||||
|
Basic |
$ |
1.88 |
|
$ |
1.09 |
|
$ |
5.11 |
|
$ |
2.69 |
|
Diluted |
$ |
1.86 |
|
$ |
1.08 |
|
$ |
5.02 |
|
$ |
2.66 |
|
Dividends per common share |
$ |
0.225 |
|
$ |
0.175 |
|
$ |
0.625 |
|
$ |
0.525 |
|
Weighted-average number of common shares used in reported earnings per share calculations: |
|
|
|
|
|
|
|
||||
|
Basic |
|
40,451,279 |
|
|
40,835,636 |
|
|
40,770,524 |
|
|
40,787,654 |
|
Diluted |
|
41,047,893 |
|
|
41,281,693 |
|
|
41,476,950 |
|
|
41,267,320 |
|
EnerSys Consolidated Condensed Balance Sheets (Unaudited) (In Thousands, Except Share and Per Share Data) |
||||||||
|
|
|
December 31, 2023 |
|
March 31, 2023 |
||||
|
Assets |
|
|
|
|
||||
|
Current assets: |
|
|
|
|
||||
|
Cash and cash equivalents |
|
$ |
332,714 |
|
|
$ |
346,665 |
|
|
Accounts receivable, net of allowance for doubtful accounts: December 31, 2023 – $10,312; March 31, 2023 – $8,775 |
|
|
498,499 |
|
|
|
637,817 |
|
|
Inventories, net |
|
|
755,163 |
|
|
|
797,798 |
|
|
Prepaid and other current assets |
|
|
185,901 |
|
|
|
113,601 |
|
|
Total current assets |
|
|
1,772,277 |
|
|
|
1,895,881 |
|
|
Property, plant, and equipment, net |
|
|
523,558 |
|
|
|
513,283 |
|
|
Goodwill |
|
|
691,172 |
|
|
|
676,715 |
|
|
Other intangible assets, net |
|
|
334,972 |
|
|
|
360,412 |
|
|
Deferred taxes |
|
|
53,406 |
|
|
|
49,152 |
|
|
Other assets |
|
|
127,253 |
|
|
|
121,231 |
|
|
Total assets |
|
$ |
3,502,638 |
|
|
$ |
3,616,674 |
|
|
Liabilities and Equity |
|
|
|
|
||||
|
Current liabilities: |
|
|
|
|
||||
|
Short-term debt |
|
$ |
30,937 |
|
|
$ |
30,642 |
|
|
Accounts payable |
|
|
342,066 |
|
|
|
378,641 |
|
|
Accrued expenses |
|
|
289,892 |
|
|
|
309,037 |
|
|
Total current liabilities |
|
|
662,895 |
|
|
|
718,320 |
|
|
Long-term debt, net of unamortized debt issuance costs |
|
|
880,833 |
|
|
|
1,041,989 |
|
|
Deferred taxes |
|
|
60,065 |
|
|
|
61,118 |
|
|
Other liabilities |
|
|
168,818 |
|
|
|
191,366 |
|
|
Total liabilities |
|
|
1,772,611 |
|
|
|
2,012,793 |
|
|
Commitments and contingencies |
|
|
|
|
||||
|
Equity: |
|
|
|
|
||||
|
Preferred Stock, $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding at December 31, 2023 and at March 31, 2023 |
|
|
— |
|
|
|
— |
|
|
Common Stock, $0.01 par value per share, 135,000,000 shares authorized, 56,347,317 shares issued and 40,399,131 shares outstanding at December 31, 2023; 56,004,613 shares issued and 40,901,059 shares outstanding at March 31, 2023 |
|
|
563 |
|
|
|
560 |
|
|
Additional paid-in capital |
|
|
620,408 |
|
|
|
596,464 |
|
|
Treasury stock at cost, 15,948,186 shares held as of December 31, 2023 and 15,103,554 shares held as of March 31, 2023 |
|
|
(822,658 |
) |
|
|
(740,956 |
) |
|
Retained earnings |
|
|
2,112,259 |
|
|
|
1,930,148 |
|
|
Contra equity – indemnification receivable |
|
|
(1,988 |
) |
|
|
(2,463 |
) |
|
Accumulated other comprehensive loss |
|
|
(182,050 |
) |
|
|
(183,474 |
) |
|
Total EnerSys stockholders’ equity |
|
|
1,726,534 |
|
|
|
1,600,279 |
|
|
Nonredeemable noncontrolling interests |
|
|
3,493 |
|
|
|
3,602 |
|
|
Total equity |
|
|
1,730,027 |
|
|
|
1,603,881 |
|
|
Total liabilities and equity |
|
$ |
3,502,638 |
|
|
$ |
3,616,674 |
|
|
EnerSys Consolidated Condensed Statements of Cash Flows (Unaudited) (In Thousands) |
||||||||
|
|
|
Nine months ended |
||||||
|
|
|
December 31, 2023 |
|
January 1, 2023 |
||||
|
Cash flows from operating activities |
|
|
|
|
||||
|
Net earnings |
|
$ |
208,184 |
|
|
$ |
109,860 |
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|
|
|
|
||||
|
Depreciation and amortization |
|
|
68,304 |
|
|
|
68,998 |
|
|
Write-off of assets relating to exit activities |
|
|
21,506 |
|
|
|
8,360 |
|
|
Impairment of indefinite-lived intangibles |
|
|
6,020 |
|
|
|
— |
|
|
Derivatives not designated in hedging relationships: |
|
|
|
|
||||
|
Net losses (gains) |
|
|
666 |
|
|
|
(1,383 |
) |
|
Cash (settlements) proceeds |
|
|
(203 |
) |
|
|
40 |
|
|
Provision for doubtful accounts |
|
|
1,912 |
|
|
|
(720 |
) |
|
Deferred income taxes |
|
|
(258 |
) |
|
|
(716 |
) |
|
Non-cash interest expense |
|
|
1,229 |
|
|
|
1,461 |
|
|
Stock-based compensation |
|
|
22,894 |
|
|
|
18,770 |
|
|
(Gain) loss on disposal of property, plant, and equipment |
|
|
644 |
|
|
|
(193 |
) |
|
Changes in assets and liabilities: |
|
|
|
|
||||
|
Accounts receivable |
|
|
139,508 |
|
|
|
123,398 |
|
|
Inventories |
|
|
27,401 |
|
|
|
(135,905 |
) |
|
Prepaid and other current assets |
|
|
(3,602 |
) |
|
|
(8,323 |
) |
|
Other assets |
|
|
(1,343 |
) |
|
|
(899 |
) |
|
Accounts payable |
|
|
(45,650 |
) |
|
|
(31,614 |
) |
|
Accrued expenses |
|
|
(126,857 |
) |
|
|
(17,149 |
) |
|
Other liabilities |
|
|
(108 |
) |
|
|
1,858 |
|
|
Net cash provided by (used in) operating activities |
|
|
320,247 |
|
|
|
135,843 |
|
|
|
|
|
|
|
||||
|
Cash flows from investing activities |
|
|
|
|
||||
|
Capital expenditures |
|
|
(59,005 |
) |
|
|
(57,512 |
) |
|
Purchase of business |
|
|
(8,270 |
) |
|
|
— |
|
|
Proceeds from termination of net investment hedges |
|
|
— |
|
|
|
43,384 |
|
|
Proceeds from disposal of property, plant, and equipment |
|
|
2,037 |
|
|
|
452 |
|
|
Net cash (used in) provided by investing activities |
|
|
(65,238 |
) |
|
|
(13,676 |
) |
|
|
|
|
|
|
||||
|
Cash flows from financing activities |
|
|
|
|
||||
|
Net (repayments) borrowings on short-term debt |
|
|
(440 |
) |
|
|
(20,317 |
) |
|
Proceeds from Second Amended Revolver borrowings |
|
|
182,500 |
|
|
|
291,100 |
|
|
Repayments of Second Amended Revolver borrowings |
|
|
(327,500 |
) |
|
|
(422,082 |
) |
|
Repayments of Second and Third Amended Term Loans |
|
|
(19,116 |
) |
|
|
(1,625 |
) |
|
Financing costs for debt modification |
|
|
— |
|
|
|
(1,096 |
) |
|
Option proceeds, net |
|
|
9,668 |
|
|
|
1,060 |
|
|
Payment of taxes related to net share settlement of equity awards |
|
|
(9,492 |
) |
|
|
(6,385 |
) |
|
Purchase of treasury stock |
|
|
(82,331 |
) |
|
|
(22,907 |
) |
|
Dividends paid to stockholders |
|
|
(25,423 |
) |
|
|
(21,386 |
) |
|
Other |
|
|
910 |
|
|
|
842 |
|
|
Net cash (used in) financing activities |
|
|
(271,224 |
) |
|
|
(202,796 |
) |
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
2,264 |
|
|
|
(23,778 |
) |
|
Net decrease in cash and cash equivalents |
|
|
(13,951 |
) |
|
|
(104,407 |
) |
|
Cash and cash equivalents at beginning of period |
|
|
346,665 |
|
|
|
402,488 |
|
|
Cash and cash equivalents at end of period |
|
$ |
332,714 |
|
|
$ |
298,081 |
|
Reconciliations of GAAP to 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”, “adjusted Diluted EPS”, “adjusted operating earnings”, “adjusted gross margin”, “adjusted EBITDA”, “adjusted EBITDA per credit agreement”, “net debt”, “net leverage ratio”, ” adjusted free cash flow conversion”, “net sales at constant currency”, and “net sales growth rate at constant currency” as applicable, in their analysis of the Company’s performance.
Contacts
Lisa Hartman
V.P., Investor Relations and Corporate Communications
EnerSys
610-236-4040
E-mail: investorrelations@enersys.com
