EnerSys Reports Fourth Quarter and Full Year Fiscal 2024 Results
EnerSys (NYSE: ENS) reported its fourth quarter and fiscal year 2024 results, ending March 31, 2024.
Fourth-quarter net sales were $911 million, an 8% decrease from the previous year, mainly due to temporary spending pauses in telecom and broadband sectors.
The gross margin improved by 300 basis points to 27.9%, driven by cost-improvement actions and tax credits.
Full-year net sales declined by 3% to $3.6 billion. Despite this, the company achieved a record diluted EPS of $6.50, up 53%, and an adjusted diluted EPS of $8.35, up 56%.
EnerSys announced the acquisition of Bren-Tronics, expected to close by the end of the fiscal first quarter.
The company's fiscal 2025 outlook includes net sales between $3.675 billion and $3.825 billion and adjusted diluted EPS between $8.55 and $8.95.
EnerSys is advancing its lithium-ion cell gigafactory and expects funding awards from the Department of Energy in August.
- Gross margin improved by 300 basis points to 27.9%.
- Achieved record diluted EPS of $6.50, up 53%, and adjusted diluted EPS of $8.35, up 56%.
- Reduced net leverage ratio to 1.0 X EBITDA on operating cash flow of $137 million.
- Returned $130 million to shareholders via share repurchases and dividends.
- Acquisition of Bren-Tronics expected to be accretive to earnings upon closing.
- Data Center revenue grew by 10% sequentially, now comprising 10% of total company revenue.
- Selected Greenville, South Carolina, for its lithium-ion cell gigafactory with $200 million in state and local funding secured.
- Net sales decreased by 8% in Q4 and 3.4% for the full fiscal year.
- Diluted EPS for Q4 dropped by 7%, and GAAP operating earnings declined by $14.5 million.
- Telecom and broadband sectors experienced spending pauses, affecting sales.
- Foreign currency translation negatively impacted net sales by 1%.
Insights
The financial performance of EnerSys in the fourth quarter and full year fiscal 2024 offers a mix of positive and negative signals. The net sales figures showing an 8% decrease year-over-year for the fourth quarter and a 3.4% decrease for the full year may initially seem concerning. However, these declines were largely anticipated due to temporary spending pauses in telecom and broadband sectors, which EnerSys had flagged in advance.
The company's gross margins saw a significant improvement, with an increase of 300 basis points in the fourth quarter, reaching
EnerSys increased its shareholder returns significantly, with a total return of
Looking ahead, the company has set a net sales guidance of
For investors, it's essential to weigh the short-term sales decline against the long-term profitability improvements and strategic investments in new technologies and acquisitions, such as Bren-Tronics. While the immediate sales dip may pose some risks, the improved margins and earnings, along with strategic growth initiatives, suggest a potentially favorable outlook for the company.
From a market perspective, EnerSys is strategically positioning itself to capitalize on several megatrends, including energy scarcity and the increasing demand for reliable power solutions. The acquisition of Bren-Tronics is particularly noteworthy, as it will expand EnerSys's presence in the defense applications market, which is less cyclical and offers stable growth prospects. This acquisition is expected to be immediately accretive to earnings upon closing, which is a positive indicator for future profitability.
The company's focus on energy storage and management systems aligns well with the global shift towards renewable energy and the need for enhanced grid stability. The development of a lithium-ion cell gigafactory in Greenville, South Carolina, supported by
Moreover, EnerSys is leveraging the Inflation Reduction Act and IRC 45X tax credits to boost its investments in domestic manufacturing, which not only supports its growth strategy but also aligns with favorable regulatory trends. The company is also seeing a shift in its revenue mix, with maintenance-free sales, including lithium solutions, reaching a record
For retail investors, it's important to recognize that while the short-term sales dip may seem concerning, the company's strategic initiatives and strong margin improvements point to a robust long-term growth trajectory. The market opportunities in energy storage, defense applications and new technologies are substantial and EnerSys appears well-positioned to take advantage of these trends.
Delivers Gross Margin of
Fourth Quarter Fiscal 2024 Highlights
(All comparisons against the fourth quarter of fiscal year 2023 unless otherwise noted)
-
Delivered net sales of
$911M 8% , primarily driven by temporary spending pauses in telecom and broadband -
Achieved GM of
27.9% , +300 bps, and adjusted GM(b) of28.0% , +310 bps, including$36M -
Realized diluted EPS of
$1.48 7% , and adjusted diluted EPS(1) of$2.08 14% -
Reduced net leverage ratio(a) to 1.0 X EBITDA on operating cash flow of
$137M - In May, published 2023 Sustainability Report
-
In May, announced agreement to acquire Bren-Tronics, a leading
U.S. manufacturer of portable power solutions
Full Year Fiscal 2024 Highlights
(All comparisons against 2023 unless otherwise noted)
-
Delivered net sales of
$3.6B 3% -
Achieved GM of
27.4% , +470 bps, and adjusted GM (b) of28.0% , +530 bps, including$136M -
Realized record diluted EPS of
$6.50 53% and adjusted diluted EPS of$8.35 56% -
Reported operating cash flow of
$457M + $177M -
Returned
$130M
(Photo: Business Wire)
Message from the CEO |
We delivered a strong finish to the fiscal year with our balanced business portfolio delivering solid results, highlighted by adjusted earnings per share at the high end of our guidance range. In the fourth quarter, net sales were down versus prior year, in line with our expectations, as positive momentum in the majority of our end markets continued to be muted by spending pauses in telecom and broadband. We generated gross margin improvement and adjusted operating earnings growth in our base business, which were bolstered by IRC 45X tax credits. In addition, we are realizing the benefits of our cost improvement actions in Energy Systems, and we are positioning the business to benefit from future growth opportunities. Our Motive Power revenue increased with higher demand offsetting some of the decline in our Energy Systems business. We continue to see increasing customer conversions as maintenance-free sales, including lithium solutions, reached a record
We are advancing on the development of our lithium-ion cell gigafactory. During the quarter, we selected
Subsequent to the end of the quarter, we were very pleased to announce our agreement to acquire Bren-Tronics, a leading
Fiscal 2024 was a year of several achievements toward our long-term strategic goals, as we navigated through a challenging environment. We are confident that the foundation we put in place this year, coupled with the investments we have made in our transformation, will yield accelerating results in the coming years. Energy scarcity will continue to be a global concern as megatrends are driving rapid growth in demand for reliable power. As a critical supplier of energy systems and energy storage solutions, EnerSys is strategically positioned to capitalize on this growth. Looking to fiscal 2025 and beyond, we remain focused on achieving the long-term targets we set at our Investor Day and delivering long-term value to our stockholders.
David M. Shaffer, President and Chief Executive Officer, EnerSys
Key Financial Results and Metrics |
Fourth quarter ended |
|
Twelve months ended |
||||||||||||||||
In millions, except per share amounts |
March 31, 2024 |
|
March 31, 2023 |
|
Change |
|
March 31, 2024 |
|
March 31, 2023 |
|
Change |
||||||||
Net Sales |
$ |
910.7 |
|
$ |
989.9 |
|
|
(8.0 |
)% |
|
$ |
3,581.8 |
|
$ |
3,708.5 |
|
|
(3.4 |
)% |
Diluted EPS (GAAP) |
$ |
1.48 |
|
$ |
1.59 |
|
$ |
(0.11 |
) |
|
$ |
6.50 |
|
$ |
4.25 |
|
$ |
2.25 |
|
Adjusted Diluted EPS (Non-GAAP)(1) |
$ |
2.08 |
|
$ |
1.82 |
|
$ |
0.26 |
|
|
$ |
8.35 |
|
$ |
5.34 |
|
$ |
3.01 |
|
Gross Profit (GAAP) |
$ |
254.3 |
|
$ |
246.0 |
|
$ |
8.3 |
|
|
$ |
982.8 |
|
$ |
840.1 |
|
$ |
142.7 |
|
Operating Earnings (GAAP) |
$ |
80.9 |
|
$ |
95.4 |
|
$ |
(14.5 |
) |
|
$ |
351.5 |
|
$ |
278.3 |
|
$ |
73.2 |
|
Adjusted Operating Earnings (Non-GAAP)(2) |
$ |
109.2 |
|
$ |
107.1 |
|
$ |
2.1 |
|
|
$ |
450.2 |
|
$ |
322.2 |
|
$ |
128.0 |
|
Net Earnings (GAAP) |
$ |
60.9 |
|
$ |
65.9 |
|
$ |
(5.0 |
) |
|
$ |
269.1 |
|
$ |
175.8 |
|
$ |
93.3 |
|
EBITDA (Non-GAAP)(3) |
$ |
101.1 |
|
$ |
112.9 |
|
$ |
(11.8 |
) |
|
$ |
434.1 |
|
$ |
361.3 |
|
$ |
72.8 |
|
Adjusted EBITDA (Non-GAAP)(3) |
$ |
124.5 |
|
$ |
118.2 |
|
$ |
6.3 |
|
|
$ |
506.8 |
|
$ |
387.5 |
|
$ |
119.3 |
|
Share Repurchases |
$ |
13.4 |
|
$ |
— |
|
$ |
13.4 |
|
|
$ |
95.7 |
|
$ |
22.9 |
|
$ |
72.8 |
|
Dividend per share |
$ |
0.225 |
|
$ |
0.175 |
|
$ |
0.05 |
|
|
$ |
0.850 |
|
$ |
0.700 |
|
$ |
0.15 |
|
Total Capital Returned to Stockholders |
$ |
22.5 |
|
$ |
7.1 |
|
$ |
15.4 |
|
|
$ |
130.3 |
|
$ |
51.3 |
|
$ |
79.0 |
|
(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) Non-GAAP EBITDA is calculated as net earnings adjusted for depreciation, amortization, interest and income taxes. 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
Fourth Quarter 2024
Net sales for the fourth quarter of fiscal 2024 were
Net earnings attributable to EnerSys stockholders (“Net earnings”) for the fourth quarter of fiscal 2024 was
Net earnings for the fourth quarter of fiscal 2023 was
Excluding these highlighted items, adjusted Net earnings per diluted share for the fourth quarter of fiscal 2024, on a non-GAAP basis, were
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 2024
Net sales for the twelve months of fiscal 2024 were
Net earnings for the twelve months of fiscal 2024 was
Net earnings for the twelve months of fiscal 2023 was
Adjusted Net earnings per diluted share for the twelve months of fiscal 2024, on a non-GAAP basis, were
First Quarter and Full Year 2025 Outlook
Beginning with the first quarter of 2025, EnerSys is making changes to its quarterly guidance metrics. The Company will now provide guidance on net sales and adjusted diluted earnings per share on a quarterly and fiscal year basis. The Company believes this information will provide a clearer view of its anticipated financial performance.
In the first quarter of fiscal 2025, EnerSys expects:
-
Net sales in the range of
$860M $900M -
Adjusted diluted earnings per share in the range of
$1.93 $2.03
For the full year fiscal 2025, EnerSys expects:
-
Net sales in the range of
$3,675M $3,825M -
Adjusted diluted earnings per share in the range of
$8.55 $8.95 -
Capital expenditures in the range of
$100M $120M
"We remain optimistic about the trajectory of our business and are on track to achieve the aggregate fiscal year 2027 targets we set at our Investor Day in June 2023. 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. In the first quarter, we expect seasonally lower volume in Motive Power and continued telecom and broadband spending pauses in Energy Systems. We expect to see some cost improvements and benefits from operational efficiencies flowing through to our bottom line. For fiscal year 2025, we expect volume growth driven by maintenance-free products in Motive Power, an increase in transportation aftermarket sales, and our first revenues from Fast Charge and Storage, with only moderate recovery in telecom and broadband markets to begin to occur towards the end of the fiscal year. The need for intelligent energy storage and management systems will only increase as the demand for electricity is significantly outpacing the capacity of the global grid infrastructure. EnerSys is well-positioned to capitalize on market opportunities as we deliver innovative products that are strategically aligned with these secular trends," said Andrea Funk, EnerSys Chief Financial Officer.
*Inclusive of 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
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 fourth quarter and full year 2024 financial results at 9:00 AM (EST) Thursday, May 23, 2024. A live broadcast as well as a replay of the call can be accessed via https://edge.media-server.com/mmc/p/xu2zf64r/ 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/BI78f078f5018241cf976352875e14708b. 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 buyback 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 buyback 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
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, 2024. 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 |
|
Twelve months ended |
||||||||
|
March 31, 2024 |
|
March 31, 2023 |
|
March 31, 2024 |
|
March 31, 2023 |
||||
Net sales |
$ |
910.7 |
|
$ |
989.9 |
|
$ |
3,581.8 |
|
$ |
3,708.5 |
Gross profit |
|
254.3 |
|
$ |
246.0 |
|
$ |
982.8 |
|
$ |
840.1 |
Operating expenses |
|
157.3 |
|
$ |
146.1 |
|
$ |
589.6 |
|
$ |
544.9 |
Restructuring and other exit charges |
|
8.5 |
|
$ |
4.0 |
|
$ |
28.1 |
|
$ |
16.4 |
Impairment of indefinite-lived intangibles |
|
7.6 |
|
$ |
0.5 |
|
$ |
13.6 |
|
$ |
0.5 |
Operating earnings |
|
80.9 |
|
$ |
95.4 |
|
$ |
351.5 |
|
$ |
278.3 |
Earnings before income taxes |
|
66.6 |
|
$ |
75.7 |
|
$ |
292.2 |
|
$ |
210.6 |
Income tax expense |
|
5.7 |
|
$ |
9.8 |
|
$ |
23.1 |
|
$ |
34.8 |
Net earnings attributable to EnerSys stockholders |
$ |
60.9 |
|
$ |
65.9 |
|
$ |
269.1 |
|
$ |
175.8 |
|
|
|
|
|
|
|
|
||||
Net reported earnings per common share attributable to EnerSys stockholders: |
|
|
|
|
|
|
|
||||
Basic |
$ |
1.51 |
|
$ |
1.61 |
|
$ |
6.62 |
|
$ |
4.31 |
Diluted |
$ |
1.48 |
|
$ |
1.59 |
|
$ |
6.50 |
|
$ |
4.25 |
Dividends per common share |
$ |
0.225 |
|
$ |
0.175 |
|
$ |
0.850 |
|
$ |
0.70 |
Weighted-average number of common shares used in reported earnings per share calculations: |
|
|
|
|
|
|
|
||||
Basic |
|
40,365,995 |
|
|
40,873,977 |
|
|
40,669,392 |
|
|
40,809,235 |
Diluted |
|
41,054,904 |
|
|
41,505,060 |
|
|
41,371,439 |
|
|
41,326,755 |
EnerSys Consolidated Condensed Balance Sheets (Unaudited) (In Thousands, Except Share and Per Share Data) |
||||||||
|
|
March 31, |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
333,324 |
|
|
$ |
346,665 |
|
Accounts receivable, net of allowance for doubtful accounts
(2024– |
|
|
524,725 |
|
|
|
637,817 |
|
Inventories, net |
|
|
697,698 |
|
|
|
797,798 |
|
Prepaid and other current assets |
|
|
226,949 |
|
|
|
113,601 |
|
Total current assets |
|
|
1,782,696 |
|
|
|
1,895,881 |
|
Property, plant, and equipment, net |
|
|
532,450 |
|
|
|
513,283 |
|
Goodwill |
|
|
682,934 |
|
|
|
676,715 |
|
Other intangible assets, net |
|
|
319,407 |
|
|
|
360,412 |
|
Deferred taxes |
|
|
49,798 |
|
|
|
49,152 |
|
Other assets |
|
|
98,721 |
|
|
|
121,231 |
|
Total assets |
|
$ |
3,466,006 |
|
|
$ |
3,616,674 |
|
Liabilities and Equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Short-term debt |
|
$ |
30,444 |
|
|
$ |
30,642 |
|
Current portion of finance leases |
|
|
237 |
|
|
|
90 |
|
Accounts payable |
|
|
369,456 |
|
|
|
378,641 |
|
Accrued expenses |
|
|
323,720 |
|
|
|
308,947 |
|
Total current liabilities |
|
|
723,857 |
|
|
|
718,320 |
|
Long-term debt, net of unamortized debt issuance costs |
|
|
801,965 |
|
|
|
1,041,989 |
|
Finance leases |
|
|
647 |
|
|
|
254 |
|
Deferred taxes |
|
|
30,583 |
|
|
|
61,118 |
|
Other liabilities |
|
|
151,882 |
|
|
|
191,112 |
|
Total liabilities |
|
|
1,708,934 |
|
|
|
2,012,793 |
|
Commitments and contingencies |
|
|
|
|
||||
Equity: |
|
|
|
|
||||
Preferred Stock, |
|
|
— |
|
|
|
— |
|
Common Stock, |
|
|
564 |
|
|
|
560 |
|
Additional paid-in capital |
|
|
629,879 |
|
|
|
596,464 |
|
Treasury stock at cost, 16,091,988 shares held as of March 31, 2024 and 15,103,554 shares held as of March 31, 2023 |
|
|
(835,827 |
) |
|
|
(740,956 |
) |
Retained earnings |
|
|
2,163,880 |
|
|
|
1,930,148 |
|
Contra equity - indemnification receivable |
|
|
— |
|
|
|
(2,463 |
) |
Accumulated other comprehensive loss |
|
|
(204,851 |
) |
|
|
(183,474 |
) |
Total EnerSys stockholders’ equity |
|
|
1,753,645 |
|
|
|
1,600,279 |
|
Nonredeemable noncontrolling interests |
|
|
3,427 |
|
|
|
3,602 |
|
Total equity |
|
|
1,757,072 |
|
|
|
1,603,881 |
|
Total liabilities and equity |
|
$ |
3,466,006 |
|
|
$ |
3,616,674 |
|
EnerSys Consolidated Condensed Statements of Cash Flows (Unaudited) (In Thousands) |
||||||||||||
|
|
Fiscal year ended March 31, |
||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2022 |
|
Cash flows from operating activities |
|
|
|
|
|
|
||||||
Net earnings |
|
$ |
269,096 |
|
|
$ |
175,810 |
|
|
$ |
143,911 |
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|
|
|
|
|
|
||||||
Depreciation and amortization |
|
|
92,021 |
|
|
|
91,153 |
|
|
|
95,878 |
|
Write-off of assets relating to restructuring and other exit charges |
|
|
24,229 |
|
|
|
8,920 |
|
|
|
6,503 |
|
Loss on assets held for sale |
|
|
— |
|
|
|
— |
|
|
|
2,973 |
|
Impairment of indefinite-lived intangibles |
|
|
13,619 |
|
|
|
480 |
|
|
|
1,178 |
|
Derivatives not designated in hedging relationships: |
|
|
|
|
|
|
||||||
Net losses (gains) |
|
|
846 |
|
|
|
(1,182 |
) |
|
|
157 |
|
Cash proceeds (settlements) |
|
|
(255 |
) |
|
|
470 |
|
|
|
255 |
|
Provision for doubtful accounts |
|
|
1,873 |
|
|
|
(431 |
) |
|
|
2,621 |
|
Deferred income taxes |
|
|
(29,344 |
) |
|
|
(15,236 |
) |
|
|
1,115 |
|
Non-cash interest expense |
|
|
2,450 |
|
|
|
1,964 |
|
|
|
2,107 |
|
Stock-based compensation |
|
|
30,607 |
|
|
|
26,371 |
|
|
|
24,289 |
|
Gain on disposal of property, plant, and equipment |
|
|
908 |
|
|
|
(113 |
) |
|
|
(490 |
) |
Changes in assets and liabilities, net of effects of acquisitions: |
|
|
|
|
|
|
||||||
Accounts receivable |
|
|
108,631 |
|
|
|
67,553 |
|
|
|
(128,956 |
) |
Inventories |
|
|
75,633 |
|
|
|
(96,413 |
) |
|
|
(212,839 |
) |
Prepaid and other current assets |
|
|
(112,701 |
) |
|
|
23,689 |
|
|
|
(32,044 |
) |
Other assets |
|
|
6,027 |
|
|
|
(6,298 |
) |
|
|
270 |
|
Accounts payable |
|
|
(15,131 |
) |
|
|
(4,236 |
) |
|
|
65,316 |
|
Accrued expenses |
|
|
(8,254 |
) |
|
|
5,747 |
|
|
|
(38,578 |
) |
Other liabilities |
|
|
(3,226 |
) |
|
|
1,690 |
|
|
|
749 |
|
Net cash provided by (used in) operating activities |
|
|
457,029 |
|
|
|
279,938 |
|
|
|
(65,585 |
) |
|
|
|
|
|
|
|
||||||
Cash flows from investing activities |
|
|
|
|
|
|
||||||
Capital expenditures |
|
|
(86,437 |
) |
|
|
(88,772 |
) |
|
|
(74,041 |
) |
Purchase of businesses |
|
|
(8,270 |
) |
|
|
— |
|
|
|
— |
|
Proceeds from disposal of facility |
|
|
— |
|
|
|
— |
|
|
|
3,268 |
|
Proceeds from disposal of property, plant, and equipment |
|
|
2,228 |
|
|
|
586 |
|
|
|
1,540 |
|
Proceeds from termination of net investment hedges |
|
|
— |
|
|
|
43,384 |
|
|
|
— |
|
Net cash used in investing activities |
|
|
(92,479 |
) |
|
|
(44,802 |
) |
|
|
(69,233 |
) |
|
|
|
|
|
|
|
||||||
Cash flows from financing activities |
|
|
|
|
|
|
||||||
Net borrowings (repayments) on short-term debt |
|
|
(231 |
) |
|
|
(21,719 |
) |
|
|
20,556 |
|
Proceeds from Second Amended Revolver borrowings |
|
|
182,500 |
|
|
|
310,500 |
|
|
|
523,400 |
|
Repayments of Second Amended Revolver borrowings |
|
|
(427,500 |
) |
|
|
(500,500 |
) |
|
|
(88,400 |
) |
Proceeds from Amended 2017 Term Loan |
|
|
— |
|
|
|
300,000 |
|
|
|
— |
|
Proceeds from 2027 Bonds |
|
|
300,000 |
|
|
|
— |
|
|
|
— |
|
Repayments of 2023 Senior Notes |
|
|
— |
|
|
|
(300,000 |
) |
|
|
— |
|
Repayments of Second and Third Amended Term Loan |
|
|
(293,889 |
) |
|
|
(5,215 |
) |
|
|
(161,447 |
) |
Debt issuance costs |
|
|
(4,061 |
) |
|
|
(1,121 |
) |
|
|
(2,952 |
) |
Finance lease obligations and other |
|
|
1,169 |
|
|
|
1,110 |
|
|
|
810 |
|
Option proceeds, net |
|
|
10,786 |
|
|
|
4,392 |
|
|
|
1,336 |
|
Payment of taxes related to net share settlement of equity awards |
|
|
(9,166 |
) |
|
|
(6,453 |
) |
|
|
(9,150 |
) |
Purchase of treasury stock |
|
|
(95,688 |
) |
|
|
(22,907 |
) |
|
|
(156,366 |
) |
Dividends paid to stockholders |
|
|
(34,480 |
) |
|
|
(28,537 |
) |
|
|
(29,353 |
) |
Net cash (used in) provided by financing activities |
|
|
(370,560 |
) |
|
|
(270,450 |
) |
|
|
98,434 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
(7,331 |
) |
|
|
(20,509 |
) |
|
|
(12,936 |
) |
Net (decrease) increase in cash and cash equivalents |
|
|
(13,341 |
) |
|
|
(55,823 |
) |
|
|
(49,320 |
) |
Cash and cash equivalents at beginning of year |
|
|
346,665 |
|
|
|
402,488 |
|
|
|
451,808 |
|
Cash and cash equivalents at end of year |
|
$ |
333,324 |
|
|
$ |
346,665 |
|
|
$ |
402,488 |
|
Reconciliations of GAAP to Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with
Income tax effects of non-GAAP adjustments are calculated using the applicable statutory tax rate for the jurisdictions in which the charges (benefits) are incurred, while taking into consideration any valuation allowances. For those items which are non-taxable, the tax expense (benefit) is calculated at
EnerSys does not provide a quantitative reconciliation of the Company’s projected range for adjusted diluted earnings per share for the first quarter of fiscal 2025 to diluted earnings per share, which is the most directly comparable GAAP measure, in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. EnerSys' adjusted diluted earnings per share guidance for the first quarter of fiscal 2025 excludes certain items, including but not limited to certain non-cash, large and/or unpredictable charges and benefits, charges from restructuring and exit activities, impairment of goodwill and indefinite-lived intangibles, acquisition and disposition activities, legal judgments, settlements, or other matters, and tax positions, that are inherently uncertain and difficult to predict, can be dependent on future events that are less capable of being controlled or reliably predicted by management and are not part of the Company's routine operating activities can be dependent on future events that are less capable of being controlled or reliably predicted by management and are not part of the Company's routine operating activities. Due to the uncertainty of the occurrence or timing of these future excluded items, management cannot accurately forecast many of these items for internal use and therefore cannot create a quantitative adjusted diluted earnings per share for the first quarter of fiscal 2025 to diluted earnings per share reconciliation without unreasonable efforts.
These non-GAAP disclosures have limitations as an analytical tool, should not be viewed as a substitute for operating earnings, Net earnings or net income 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 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.
A reconciliation of non-GAAP net sales and growth rates in constant currency are set forth in the table below, providing a reconciliation of non-GAAP constant currency net sales to the Company’s reported net sales for its business segments.
|
Quarter ended |
|
|
|
Twelve months ended |
|
|
||||||||||||
|
($ millions) |
|
|
|
($ millions) |
|
|
||||||||||||
|
March 31, 2024 |
|
March 31, 2023 |
|
Growth rate |
|
March 31, 2024 |
|
March 31, 2023 |
|
Growth rate |
||||||||
Energy Systems reported net sales |
$ |
369.4 |
|
|
$ |
458.2 |
|
(19.4 |
)% |
|
$ |
1,590.0 |
|
|
$ |
1,738.1 |
|
(8.5 |
)% |
Exchange rate effect |
|
10.2 |
|
|
|
|
|
|
|
13.8 |
|
|
|
|
|
||||
Energy Systems constant currency net sales |
|
379.6 |
|
|
|
|
(17.2 |
) |
|
|
1,603.8 |
|
|
|
|
(7.7 |
) |
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Motive Power reported net sales |
$ |
394.8 |
|
|
$ |
383.6 |
|
2.9 |
% |
|
$ |
1,456.2 |
|
|
$ |
1,451.3 |
|
0.3 |
% |
Exchange rate effect |
|
6.1 |
|
|
|
|
|
|
|
0.9 |
|
|
|
|
|
||||
Motive Power constant currency net sales |
|
400.9 |
|
|
|
|
4.5 |
|
|
|
1,457.1 |
|
|
|
|
0.4 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Specialty reported net sales |
$ |
146.5 |
|
|
$ |
148.1 |
|
(1.1 |
)% |
|
$ |
535.6 |
|
|
$ |
519.1 |
|
3.2 |
% |
Exchange rate effect |
|
(0.3 |
) |
|
|
|
|
|
|
(3.3 |
) |
|
|
|
|
||||
Specialty constant currency net sales |
|
146.2 |
|
|
|
|
(1.3 |
) |
|
|
532.3 |
|
|
|
|
2.5 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total reported net sales |
$ |
910.7 |
|
|
$ |
989.9 |
|
(8.0 |
)% |
|
$ |
3,581.8 |
|
|
$ |
3,708.5 |
|
(3.4 |
)% |
Exchange rate effect |
|
16.0 |
|
|
|
|
|
|
|
11.3 |
|
|
|
|
|
||||
Total constant currency net sales |
|
926.7 |
|
|
|
|
(6.4 |
) |
|
|
3,593.1 |
|
|
|
|
(3.1 |
) |
||
A reconciliation of non-GAAP adjusted operating earnings is set forth in the table below, providing a reconciliation of non-GAAP adjusted operating earnings to the Company’s reported operating results for its business segments. Corporate and other includes amounts managed on a company-wide basis and not directly allocated to any reportable segments, primarily relating to IRA production tax credits. Also, included are start up costs for exploration of a new lithium plant as well as start-up operating expenses from the New Ventures operating segment.
Business Segment Operating Results
|
Quarter ended |
||||||||||||||
|
($ millions) |
||||||||||||||
|
March 31, 2024 |
||||||||||||||
|
Energy Systems |
|
Motive Power |
|
Specialty |
|
Corporate and other |
|
Total |
||||||
Net Sales |
$ |
369.4 |
|
|
$ |
394.8 |
|
$ |
146.5 |
|
$ |
— |
|
$ |
910.7 |
|
|
|
|
|
|
|
|
|
|
||||||
Operating Earnings |
$ |
(4.9 |
) |
|
$ |
53.9 |
|
$ |
6.7 |
|
$ |
25.2 |
|
$ |
80.9 |
Inventory adjustment relating to exit activities |
|
1.0 |
|
|
|
— |
|
|
— |
|
|
— |
|
$ |
1.0 |
Restructuring and other exit charges |
|
3.8 |
|
|
|
3.7 |
|
|
1.0 |
|
|
— |
|
|
8.5 |
Impairment of indefinite-lived intangibles |
|
7.6 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
7.6 |
Amortization of intangible assets |
|
6.0 |
|
|
|
0.2 |
|
|
0.7 |
|
|
— |
|
|
6.9 |
Legal proceedings charge, net |
|
3.7 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
3.7 |
Other |
|
0.2 |
|
|
|
0.3 |
|
|
0.1 |
|
|
— |
|
|
0.6 |
Adjusted Operating Earnings |
$ |
17.4 |
|
|
$ |
58.1 |
|
$ |
8.5 |
|
$ |
25.2 |
|
$ |
109.2 |
|
Quarter ended |
|||||||||||||
|
($ millions) |
|||||||||||||
|
March 31, 2023 |
|||||||||||||
|
Energy Systems |
|
Motive Power |
|
Specialty |
|
Corporate and other |
|
Total |
|||||
Net Sales |
$ |
458.2 |
|
$ |
383.6 |
|
$ |
148.1 |
|
$ |
— |
|
$ |
989.9 |
|
|
|
|
|
|
|
|
|
|
|||||
Operating Earnings |
$ |
23.0 |
|
$ |
48.4 |
|
$ |
6.7 |
|
$ |
17.3 |
|
$ |
95.4 |
Restructuring and other exit charges |
|
0.3 |
|
|
1.6 |
|
|
2.1 |
|
|
— |
|
|
4.0 |
Impairment of indefinite-lived intangibles |
|
0.1 |
|
|
— |
|
|
0.4 |
|
|
— |
|
|
0.5 |
Amortization of intangible assets |
|
5.7 |
|
|
— |
|
|
0.5 |
|
|
— |
|
|
6.2 |
Other |
|
0.5 |
|
|
0.4 |
|
|
0.1 |
|
|
— |
|
|
1.0 |
Adjusted Operating Earnings |
$ |
29.6 |
|
$ |
50.4 |
|
$ |
9.8 |
|
$ |
17.3 |
|
$ |
107.1 |
|
|
|
|
|
|
|
|
|
|
|||||
Increase (Decrease) as a % from prior year quarter |
Energy Systems |
|
Motive Power |
|
Specialty |
|
Corporate and other |
|
Total |
|||||
Net Sales |
(19.4 |
)% |
|
2.9 |
% |
|
(1.1 |
)% |
|
— |
% |
|
(8.0 |
)% |
Operating Earnings |
NM |
|
|
11.3 |
|
|
0.2 |
|
|
45.8 |
|
|
(15.2 |
) |
Adjusted Operating Earnings |
(41.3 |
) |
|
15.4 |
|
|
(13.3 |
) |
|
45.8 |
|
|
2.0 |
|
NM = Not Meaningful
|
Twelve months ended |
|||||||||||||
|
($ millions) |
|||||||||||||
|
March 31, 2024 |
|||||||||||||
|
Energy Systems |
|
Motive Power |
|
Specialty |
|
Corporate and other |
|
Total |
|||||
Net Sales |
$ |
1,590.0 |
|
$ |
1,456.2 |
|
$ |
535.6 |
|
$ |
0.0 |
|
$ |
3,581.8 |
|
|
|
|
|
|
|
|
|
|
|||||
Operating Earnings |
$ |
15.5 |
|
$ |
201.2 |
|
$ |
17.6 |
|
$ |
117.2 |
|
$ |
351.5 |
Inventory adjustment relating to exit activities |
|
17.1 |
|
|
— |
|
|
3.1 |
|
|
— |
|
|
20.2 |
Restructuring and other exit charges |
|
8.9 |
|
|
11.6 |
|
|
7.6 |
|
|
— |
|
|
28.1 |
Impairment of indefinite-lived intangibles |
|
13.6 |
|
|
— |
|
|
— |
|
|
— |
|
|
13.6 |
Amortization of intangible assets |
|
24.5 |
|
|
0.7 |
|
|
2.8 |
|
|
— |
|
|
28.0 |
Legal proceedings charge, net |
|
3.7 |
|
|
— |
|
|
— |
|
|
— |
|
|
3.7 |
Other |
|
3.7 |
|
|
1.1 |
|
|
0.3 |
|
|
— |
|
|
5.1 |
Adjusted Operating Earnings |
$ |
87.0 |
|
$ |
214.6 |
|
$ |
31.4 |
|
$ |
117.2 |
|
$ |
450.2 |
|
Twelve months ended |
||||||||||||||
|
($ millions) |
||||||||||||||
|
March 31, 2023 |
||||||||||||||
|
Energy Systems |
|
Motive Power |
|
Specialty |
|
Corporate and other |
|
Total |
||||||
Net Sales |
$ |
1,738.1 |
|
|
$ |
1,451.3 |
|
$ |
519.1 |
|
$ |
0.0 |
|
$ |
3,708.5 |
|
|
|
|
|
|
|
|
|
|
||||||
Operating Earnings |
$ |
60.8 |
|
|
$ |
165.2 |
|
$ |
35.0 |
|
$ |
17.3 |
|
$ |
278.3 |
Inventory adjustment relating to exit activities |
|
(0.2 |
) |
|
|
0.8 |
|
|
— |
|
|
— |
|
|
0.6 |
Restructuring and other exit charges |
|
1.5 |
|
|
|
12.8 |
|
|
2.1 |
|
|
— |
|
|
16.4 |
Impairment of indefinite-lived intangibles |
|
0.1 |
|
|
|
— |
|
|
0.4 |
|
|
— |
|
|
0.5 |
Amortization of intangible assets |
|
23.4 |
|
|
|
— |
|
|
1.7 |
|
|
— |
|
|
25.1 |
Other |
|
0.6 |
|
|
|
0.6 |
|
|
0.1 |
|
|
— |
|
|
1.3 |
Adjusted Operating Earnings |
$ |
86.2 |
|
|
$ |
179.4 |
|
$ |
39.3 |
|
$ |
17.3 |
|
$ |
322.2 |
Increase (Decrease) as a % from prior year |
Energy Systems |
|
Motive Power |
|
Specialty |
|
Corporate and other |
|
Total |
||||
Net Sales |
(8.5 |
)% |
|
0.3 |
% |
|
3.2 |
% |
|
NM |
|
(3.4 |
)% |
Operating Earnings |
(74.6 |
) |
|
21.9 |
|
|
(49.7 |
) |
|
NM |
|
26.3 |
|
Adjusted Operating Earnings |
0.8 |
|
|
19.6 |
|
|
(20.2 |
) |
|
NM |
|
47.6 |
|
NM = Not Meaningful
Reconciliations of GAAP to Non-GAAP Financial Measures
(Unaudited)
The table below presents a reconciliation of Net Earnings to EBITDA and Adjusted EBITDA:
|
Quarter ended |
|
Twelve months ended |
||||||||
|
($ millions) |
|
($ millions) |
||||||||
|
March 31, 2024 |
|
March 31, 2023 |
|
March 31, 2024 |
|
March 31, 2023 |
||||
Net Earnings |
|
60.9 |
|
$ |
65.9 |
|
$ |
269.1 |
|
$ |
175.8 |
Depreciation |
|
16.8 |
|
|
15.3 |
|
|
64.0 |
|
|
60.4 |
Amortization |
|
6.9 |
|
|
6.9 |
|
|
28.0 |
|
|
30.8 |
Interest |
|
10.8 |
|
|
15.0 |
|
|
49.9 |
|
|
59.5 |
Income Taxes |
|
5.7 |
|
|
9.8 |
|
|
23.1 |
|
|
34.8 |
EBITDA |
|
101.1 |
|
|
112.9 |
|
|
434.1 |
|
|
361.3 |
Non-GAAP adjustments |
|
23.4 |
|
|
5.3 |
|
|
72.7 |
|
|
26.2 |
Adjusted EBITDA |
$ |
124.5 |
|
$ |
118.2 |
|
$ |
506.8 |
|
$ |
387.5 |
The following table provides the non-GAAP adjustments shown in the reconciliation above:
|
Quarter ended |
|
Twelve months ended |
||||||||
|
($ millions) |
|
($ millions) |
||||||||
|
March 31, 2024 |
|
March 31, 2023 |
|
March 31, 2024 |
|
March 31, 2023 |
||||
Inventory adjustment relating to exit activities |
$ |
1.0 |
|
$ |
— |
|
$ |
20.2 |
|
$ |
0.6 |
Restructuring and other exit charges |
|
8.5 |
|
|
4.0 |
|
|
28.1 |
|
|
16.4 |
Impairment of indefinite-lived intangibles |
|
7.6 |
|
|
0.5 |
|
|
13.6 |
|
|
0.5 |
Legal proceedings charge, net |
|
3.7 |
|
|
— |
|
|
3.7 |
|
|
— |
Other |
|
2.6 |
|
|
0.7 |
|
|
7.1 |
|
|
2.2 |
Remeasurement of monetary assets included in other (income) expense relating to exit from |
|
— |
|
|
— |
|
|
— |
|
|
4.5 |
Asset Securitization Transaction Fees |
|
— |
|
|
0.1 |
|
|
— |
|
|
0.6 |
Cost of funding to terminate net investment hedges |
|
— |
|
|
— |
|
|
— |
|
|
1.4 |
Non-GAAP adjustments |
$ |
23.4 |
|
$ |
5.3 |
|
$ |
72.7 |
|
$ |
26.2 |
The table below presents a reconciliation of Gross Profit and Gross Margin to Adjusted Gross Profit and Adjusted Gross Margin:
|
Quarter ended |
|
Twelve months ended |
||||||||||||
|
($ millions) |
|
($ millions) |
||||||||||||
|
March 31, 2024 |
|
March 31, 2023 |
|
March 31, 2024 |
|
March 31, 2023 |
||||||||
Gross Profit as reported |
$ |
254.3 |
|
|
$ |
246.0 |
|
|
$ |
982.8 |
|
|
$ |
840.1 |
|
Inventory adjustment relating to exit activities |
|
1.0 |
|
|
|
0.0 |
|
|
|
20.2 |
|
|
|
0.6 |
|
Adjusted Gross Profit |
|
255.3 |
|
|
|
246.0 |
|
|
|
1,003.0 |
|
|
|
840.7 |
|
|
|
|
|
|
|
|
|
||||||||
Gross Margin |
|
27.9 |
% |
|
|
24.9 |
% |
|
|
27.4 |
% |
|
|
22.7 |
% |
Adjusted Gross Margin |
|
28.0 |
% |
|
|
24.9 |
% |
|
|
28.0 |
% |
|
|
22.7 |
% |
The table below presents a reconciliation of Operating Cash Flow to Free Cash Flow and Adjusted Free Cash Flow Conversion percentages:
|
Quarter ended |
|
Twelve months ended |
||||||||||||
|
($ millions) |
|
($ millions) |
||||||||||||
|
March 31, 2024 |
|
March 31, 2023 |
|
March 31, 2024 |
|
March 31, 2023 |
||||||||
Net cash provided by (used in) operating activities |
$ |
136.8 |
|
|
$ |
144.1 |
|
|
$ |
457.0 |
|
|
$ |
279.9 |
|
Less Capital Expenditures |
|
(27.4 |
) |
|
|
(31.3 |
) |
|
|
(86.4 |
) |
|
|
(88.8 |
) |
Free Cash Flow |
|
109.4 |
|
|
|
112.8 |
|
|
|
370.6 |
|
|
|
191.1 |
|
|
Quarter ended |
|
Twelve months ended |
||||||||||||
|
($ millions) |
|
($ millions) |
||||||||||||
|
March 31, 2024 |
|
March 31, 2023 |
|
March 31, 2024 |
|
March 31, 2023 |
||||||||
Net cash provided by (used in) operating activities |
$ |
136.8 |
|
|
$ |
144.1 |
|
|
$ |
457.0 |
|
|
$ |
279.9 |
|
Net earnings |
|
60.9 |
|
|
|
65.9 |
|
|
|
269.1 |
|
|
|
175.8 |
|
Operating cash flow conversion % |
|
224.6 |
% |
|
|
218.7 |
% |
|
|
169.8 |
% |
|
|
159.2 |
% |
|
|
|
|
|
|
|
|
||||||||
Free cash flow |
|
109.4 |
|
|
|
112.8 |
|
|
|
370.6 |
|
|
|
191.1 |
|
Adjusted net earnings |
|
85.2 |
|
|
|
75.4 |
|
|
|
345.3 |
|
|
|
220.8 |
|
Adjusted free cash flow conversion % |
|
128.4 |
% |
|
|
149.6 |
% |
|
|
107.3 |
% |
|
|
86.5 |
% |
The following table provides a reconciliation of Net earnings to EBITDA (non-GAAP) and adjusted EBITDA (non-GAAP) per credit agreement for March 31, 2024 and March 31, 2023, in connection with the Fourth Amended Credit Facility:
|
|
Last twelve months |
||||
|
|
March 31, 2024 |
|
March 31, 2023 |
||
|
|
(in millions, except ratios) |
||||
Net earnings as reported |
|
$ |
269.1 |
|
$ |
175.8 |
Add back: |
|
|
|
|
||
Depreciation and amortization |
|
|
92.0 |
|
$ |
91.2 |
Interest expense |
|
|
49.9 |
|
$ |
59.5 |
Income tax expense |
|
|
23.1 |
|
|
34.8 |
EBITDA (non-GAAP) |
|
|
434.1 |
|
$ |
361.3 |
Adjustments per credit agreement definitions(1) |
|
|
85.8 |
|
|
51.7 |
Adjusted EBITDA (non-GAAP) per credit agreement(1) |
|
$ |
519.9 |
|
|
413.0 |
Total net debt(2) |
|
|
511.1 |
|
|
736.0 |
Leverage ratios: |
|
|
|
|
||
Total net debt/credit adjusted EBITDA ratio |
|
1.0 X |
|
1.8 X |
||
| (1) |
The |
|
| (2) |
Debt includes finance lease obligations and letters of credit and is net of all |
Included below is a reconciliation of historical non-GAAP adjusted Net earnings to reported amounts. Non-GAAP adjusted operating earnings and historical 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 |
|
||||||
|
(in millions, except share and per share amounts) |
|
||||||
|
March 31, 2024 |
|
March 31, 2023 |
|
||||
Net earnings reconciliation |
|
|
|
|
||||
As reported Net Earnings |
$ |
60.9 |
|
|
$ |
65.9 |
|
|
Non-GAAP adjustments: |
|
|
|
|
||||
Inventory adjustment relating to exit activities |
|
1.0 |
|
(1) |
|
— |
|
(1) |
Restructuring and other exit charges |
|
8.5 |
|
(1) |
|
4.0 |
|
(1) |
Impairment of indefinite-lived intangibles |
|
7.6 |
|
(2) |
|
0.5 |
|
(2) |
Loss on assets held for sale |
|
— |
|
(4) |
|
— |
|
(4) |
Amortization of identified intangible assets |
|
6.9 |
|
(3) |
|
6.2 |
|
(3) |
Asset Securitization Transaction Fees |
|
— |
|
|
|
0.1 |
|
|
Legal proceedings charge, net |
|
3.7 |
|
(4) |
|
— |
|
|
Other |
|
3.3 |
|
(4) |
|
0.7 |
|
|
Income tax effect of above non-GAAP adjustments |
|
(6.7 |
) |
|
|
(2.0 |
) |
|
Non-GAAP adjusted Net earnings |
$ |
85.2 |
|
|
$ |
75.4 |
|
|
|
|
|
|
|
||||
Outstanding shares used in per share calculations |
|
|
|
|
||||
Basic |
|
40,365,995 |
|
|
|
40,873,977 |
|
|
Diluted |
|
41,054,904 |
|
|
|
41,505,060 |
|
|
Non-GAAP adjusted Net earnings per share: |
|
|
|
|
||||
Basic |
$ |
2.11 |
|
|
$ |
1.85 |
|
|
Diluted |
$ |
2.08 |
|
|
$ |
1.82 |
|
|
|
|
|
|
|
||||
Reported Net earnings (Loss) per share: |
|
|
|
|
||||
Basic |
$ |
1.51 |
|
|
$ |
1.61 |
|
|
Diluted |
$ |
1.48 |
|
|
$ |
1.59 |
|
|
Dividends per common share |
$ |
0.225 |
|
|
$ |
0.175 |
|
|
The following table provides the line of business allocation of the non-GAAP adjustments of items relating operating earnings (that are allocated to lines of business) shown in the reconciliation above:
|
|
Quarter ended |
||||
|
|
($ millions) |
||||
|
|
March 31, 2024 |
|
March 31, 2023 |
||
|
|
Pre-tax |
|
Pre-tax |
||
(1) Inventory adjustment relating to exit activities - Energy Systems |
|
$ |
1.0 |
|
$ |
— |
(1) Restructuring and other exit charges - Energy Systems |
|
|
3.8 |
|
|
0.3 |
(1) Restructuring and other exit charges - Motive Power |
|
|
3.7 |
|
|
1.6 |
(1) Restructuring and other exit charges - Specialty |
|
|
1.0 |
|
|
2.1 |
(2) Impairment of indefinite-lived intangibles - Energy Systems |
|
|
7.6 |
|
|
0.1 |
(3) Impairment of indefinite-lived intangibles - Specialty |
|
|
— |
|
|
0.4 |
(3) Amortization of identified intangible assets - Energy Systems |
|
|
6.0 |
|
|
5.7 |
(3) Amortization of identified intangible assets - Motive Power |
|
|
0.2 |
|
|
— |
(3) Amortization of identified intangible assets - Specialty |
|
|
0.7 |
|
|
0.5 |
(4) Legal proceedings charge, net - Energy Systems |
|
|
3.7 |
|
|
|
(4) Other - Energy Systems |
|
|
0.2 |
|
|
— |
(4) Other - Motive Power |
|
|
0.3 |
|
|
— |
(4) Other - Specialty |
|
|
0.1 |
|
|
— |
Total Non-GAAP adjustments |
|
$ |
28.3 |
|
$ |
10.7 |
|
Twelve months ended |
|
||||||
|
(in millions, except share and per share amounts) |
|
||||||
|
March 31, 2024 |
|
March 31, 2023 |
|
||||
Net Earnings reconciliation |
|
|
|
|
||||
As reported Net Earnings |
$ |
269.1 |
|
|
$ |
175.8 |
|
|
Non-GAAP adjustments: |
|
|
|
|
||||
Inventory adjustment relating to exit activities |
|
20.2 |
|
(1) |
|
0.6 |
|
(1) |
Restructuring and other exit charges |
|
28.1 |
|
(1) |
|
16.4 |
|
(1) |
Impairment of indefinite-lived intangibles |
|
13.6 |
|
(2) |
|
0.5 |
|
(2) |
Loss on assets held for sale |
|
— |
|
|
|
— |
|
|
Amortization of identified intangible assets |
|
28.0 |
|
(2) |
|
25.1 |
|
(2) |
Remeasurement of monetary assets included in other (income) expense relating to exit from Russia Operations |
|
— |
|
|
|
4.5 |
|
|
Asset Securitization Transaction Fees |
|
— |
|
|
|
0.6 |
|
|
Acquisition activity expense |
|
— |
|
|
|
— |
|
|
Cost of funding to terminate net investment hedges |
|
— |
|
|
|
1.4 |
|
|
Financing fees related to debt modification |
|
— |
|
|
|
1.2 |
|
|
Legal proceedings charge, net |
|
3.7 |
|
(3) |
|
— |
|
|
Other |
|
7.8 |
|
(3) |
|
2.2 |
|
|
Income tax effect of above non-GAAP adjustments |
|
(25.2 |
) |
|
|
(7.5 |
) |
|
Financing fees related to debt modification |
$ |
— |
|
|
$ |
— |
|
|
Non-GAAP adjusted Net Earnings |
$ |
345.3 |
|
|
$ |
220.8 |
|
|
|
|
|
|
|
||||
Outstanding shares used in per share calculations |
|
|
|
|
||||
Basic |
|
40,669,392 |
|
|
|
40,809,235 |
|
|
Diluted |
|
41,371,439 |
|
|
|
41,326,755 |
|
|
Non-GAAP adjusted Net Earnings per share: |
|
|
|
|
||||
Basic |
$ |
8.49 |
|
|
$ |
5.41 |
|
|
Diluted |
$ |
8.35 |
|
|
$ |
5.34 |
|
|
|
|
|
|
|
||||
Reported Net Earnings (Loss) per share: |
|
|
|
|
||||
Basic |
$ |
6.62 |
|
|
$ |
4.31 |
|
|
Diluted |
$ |
6.50 |
|
|
$ |
4.25 |
|
|
Dividends per common share |
$ |
0.850 |
|
|
$ |
0.70 |
|
|
The following table provides the line of business allocation of the non-GAAP adjustments of items relating operating earnings (that are allocated to lines of business) shown in the reconciliation above:
|
|
Twelve months ended |
|||||
|
|
($ millions) |
|||||
|
|
March 31, 2024 |
|
March 31, 2023 |
|||
|
|
Pre-tax |
|
Pre-tax |
|||
(1) Inventory adjustment relating to exit activities - Energy Systems |
|
|
17.1 |
|
|
(0.2 |
) |
(1) Inventory adjustment relating to exit activities - Motive Power |
|
|
— |
|
|
0.8 |
|
(1) Inventory Adjustment relating to exit activities - Specialty |
|
|
3.1 |
|
|
— |
|
(1) Restructuring and other exit charges - Energy Systems |
|
|
8.9 |
|
|
1.5 |
|
(1) Restructuring and other exit charges - Motive Power |
|
|
11.6 |
|
|
12.8 |
|
(1) Restructuring and other exit charges - Specialty |
|
|
7.6 |
|
|
2.1 |
|
(2) Impairment of indefinite-lived intangibles - Energy Systems |
|
|
13.6 |
|
|
0.1 |
|
(2) Impairment of indefinite-lived intangibles - Specialty |
|
|
|
|
0.4 |
|
|
(2) Amortization of identified intangible assets - Energy Systems |
|
|
24.5 |
|
|
23.4 |
|
(2) Amortization of identified intangible assets - Motive Power |
|
|
0.7 |
|
|
— |
|
(2) Amortization of identified intangible assets - Specialty |
|
|
2.8 |
|
|
1.7 |
|
(3) Legal proceedings charge, net - Energy Systems |
|
|
3.7 |
|
|
||
(3) Other - Energy Systems |
|
|
3.7 |
|
|
— |
|
(3) Other - Motive Power |
|
|
1.1 |
|
|
— |
|
(3) Other - Specialty |
|
|
0.3 |
|
|
— |
|
Total Non-GAAP adjustments |
|
$ |
98.7 |
|
$ |
42.6 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240522026850/en/
Lisa Hartman
Vice President, Investor Relations and Corporate Communications
EnerSys
610-236-4040
E-mail: investorrelations@enersys.com
Source: EnerSys
FAQ
What was EnerSys's gross margin for the fourth quarter of fiscal 2024?
How did EnerSys's net sales for fiscal 2024 compare to the previous year?
What is the expected impact of the Bren-Tronics acquisition on EnerSys's earnings?
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How did telecom and broadband spending pauses affect EnerSys's fourth-quarter sales?
What financial improvement did EnerSys achieve in its gross margin?
