EnerSys Reports Third Quarter Fiscal 2024 Results
- Gross margin increased by 570 basis points to 28.9% compared to the prior year
- Diluted EPS was $1.86, up 72% from the prior year
- Operating cash flow conversion was 177% and adjusted free cash flow conversion was 106%
- The company reduced net leverage to 1.1 X EBITDA
- Published its second annual Task Force on Climate-Related Financial Disclosure (TCFD) Report
- EnerSys remains highly confident in its position as a global leader in electrification and energy storage applications
- Net sales decreased by 6% to $862M
- The decrease in organic volume by 7% was partially offset by a 1% increase in pricing
- Unfavorable highlighted net of tax impact of $28.8 million, or $0.70 per diluted share, from highlighted items
- Adjusted diluted earnings per share in the range of $1.98 to $2.08 for the fourth quarter
Insights
The reported increase in Gross Margin (GM) to 28.9% and the substantial rise in Earnings Per Share (EPS) by 72% are significant indicators of EnerSys's financial health. The GM improvement, partly due to the Inflation Reduction Act tax credits, reflects a robust cost management strategy and favorable policy impacts. The EPS growth is particularly noteworthy, outpacing the GM increase, which suggests enhanced profitability and operational efficiency. However, the decline in net sales by 6% raises concerns about market demand and competitive dynamics. The reduction in net leverage to 1.1X EBITDA is a positive sign of the company's deleveraging efforts and improved liquidity position. This financial de-risking is crucial for investor confidence, especially in volatile markets.
From a market perspective, EnerSys's performance in telecom and broadband sectors indicates a temporary slowdown, which may be due to broader industry trends or company-specific issues. The book-to-bill ratio of 1.0 suggests a balance between orders received and billed, which could point to stable future revenues. The mention of strength in specialty, services and data centers, particularly in the Americas, highlights potential growth areas that could offset declines in other segments. Investors should monitor these sectors closely for signs of sustained growth that may contribute to the company's long-term revenue diversification.
The strategic focus on electrification and energy storage applications aligns with global megatrends, such as the transition to renewable energy and electrification of transport. EnerSys's Fast Charge & Storage (FC&S) systems and the creation of a New Ventures line suggest innovation and adaptation to evolving market needs. These initiatives could position EnerSys as a key player in the energy transition. However, investors should be aware of the regulatory uncertainties mentioned in the outlook, particularly concerning the IRS guidance on IRC 45X tax benefits. These uncertainties could significantly impact future financials, making it a critical area for stakeholder attention.
Delivers Gross Margin of
Third Quarter Fiscal 2024 Highlights
(All comparisons against the third quarter of fiscal year 2023 unless otherwise noted)
-
Delivered net sales of
$862M 6% , primarily driven by temporary spending pauses in telecom and broadband -
Achieved GM of
28.9% , +570 bps, including$59M -
Achieved adjusted GM(b) of
30.7% , +760 bps; excluding$59M 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 6.625% senior notes due 2032
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
During the quarter, based on additional proposed regulations issued by the
Our balance sheet was a highlight this quarter with operating cash flow conversion of
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
Net earnings attributable to EnerSys stockholders (“Net earnings”) for the third quarter of fiscal 2024 was
Net earnings for the third quarter of fiscal 2023 was
Excluding these highlighted items, adjusted Net earnings per diluted share for the third 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 to Date 2024
Net sales for the nine months of fiscal 2024 were
Net earnings for the nine months of fiscal 2024 was
Net earnings for the nine months of fiscal 2023 was
Adjusted Net earnings per diluted share for the nine months of fiscal 2024, on a non-GAAP basis, were
Fourth Quarter 2024 Outlook
In the fourth quarter of fiscal 2024, we expect:
-
Adjusted diluted earnings per share in the range of
$1.98 $2.08 $0.80 $0.90 U.S. produced batteries that qualify for this credit. -
Gross margin in the range of
26.0% to28.0% , 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 $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
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 - |
|
|
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, |
|
|
— |
|
|
|
— |
|
Common Stock, |
|
|
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
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 fourth quarter of fiscal 2024 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 fourth quarter of fiscal 2024 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 fourth quarter of fiscal 2024 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 |
|
|
|
Nine months ended |
|
|
||||||||||||
|
($ millions) |
|
|
|
($ millions) |
|
|
||||||||||||
|
December 31, 2023 |
|
January 1, 2023 |
|
Growth rate |
|
December 31, 2023 |
|
January 1, 2023 |
|
Growth rate |
||||||||
Energy Systems reported net sales |
$ |
373.5 |
|
|
$ |
434.3 |
|
(14.0 |
)% |
|
$ |
1,220.6 |
|
|
$ |
1,279.9 |
|
(4.6 |
)% |
Exchange rate effect |
|
1.2 |
|
|
|
|
|
|
|
3.6 |
|
|
|
|
|
||||
Energy Systems constant currency net sales |
|
374.7 |
|
|
|
|
(13.7 |
) |
|
|
1,224.2 |
|
|
|
|
(4.4 |
) |
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Motive Power reported net sales |
$ |
355.4 |
|
|
$ |
361.8 |
|
(1.8 |
)% |
|
$ |
1,061.4 |
|
|
$ |
1,067.7 |
|
(0.6 |
)% |
Exchange rate effect |
|
(0.9 |
) |
|
|
|
|
|
|
(5.2 |
) |
|
|
|
|
||||
Motive Power constant currency net sales |
|
354.5 |
|
|
|
|
(2.0 |
) |
|
|
1,056.2 |
|
|
|
|
(1.1 |
) |
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Specialty reported net sales |
$ |
132.6 |
|
|
$ |
124.1 |
|
6.8 |
% |
|
$ |
389.1 |
|
|
$ |
371.0 |
|
4.9 |
% |
Exchange rate effect |
|
(1.1 |
) |
|
|
|
|
|
|
(3.0 |
) |
|
|
|
|
||||
Specialty constant currency net sales |
|
131.5 |
|
|
|
|
6.0 |
|
|
|
386.1 |
|
|
|
|
4.0 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total reported net sales |
$ |
861.5 |
|
|
$ |
920.2 |
|
(6.4 |
)% |
|
$ |
2,671.1 |
|
|
$ |
2,718.6 |
|
(1.7 |
)% |
Exchange rate effect |
|
(0.8 |
) |
|
|
|
|
|
|
(4.6 |
) |
|
|
|
|
||||
Total constant currency net sales |
|
860.7 |
|
|
|
|
(6.5 |
) |
|
|
2,666.5 |
|
|
|
|
(1.9 |
) |
||
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) |
||||||||||||||
|
December 31, 2023 |
||||||||||||||
|
Energy Systems |
|
Motive Power |
|
Specialty |
|
Corporate and other |
|
Total |
||||||
Net Sales |
$ |
373.5 |
|
|
$ |
355.4 |
|
$ |
132.6 |
|
$ |
— |
|
$ |
861.5 |
|
|
|
|
|
|
|
|
|
|
||||||
Operating Earnings |
$ |
(18.6 |
) |
|
$ |
49.5 |
|
$ |
6.0 |
|
$ |
55.7 |
|
$ |
92.6 |
Inventory adjustment relating to exit activities |
|
16.1 |
|
|
|
— |
|
|
— |
|
|
— |
|
$ |
16.1 |
Restructuring and other exit charges |
|
2.4 |
|
|
|
2.9 |
|
|
0.8 |
|
|
— |
|
|
6.1 |
Impairment of indefinite-lived intangibles |
|
6.0 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
6.0 |
Amortization of intangible assets |
|
6.0 |
|
|
|
0.2 |
|
|
0.7 |
|
|
— |
|
|
6.9 |
Other |
|
2.4 |
|
|
|
0.2 |
|
|
— |
|
|
— |
|
|
2.6 |
Adjusted Operating Earnings |
$ |
14.3 |
|
|
$ |
52.8 |
|
$ |
7.5 |
|
$ |
55.7 |
|
$ |
130.3 |
|
Quarter ended |
||||||||||||||||
|
($ millions) |
||||||||||||||||
|
January 1, 2023 |
||||||||||||||||
|
Energy Systems |
|
Motive Power |
|
Specialty |
|
Corporate and other |
|
Total |
||||||||
Net Sales |
$ |
434.3 |
|
|
$ |
361.8 |
|
|
$ |
124.1 |
|
$ |
— |
|
$ |
920.2 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating Earnings |
$ |
20.5 |
|
|
$ |
47.1 |
|
|
$ |
10.9 |
|
$ |
— |
|
$ |
78.5 |
|
Inventory adjustment relating to exit activities |
|
(0.2 |
) |
|
|
(0.7 |
) |
|
|
— |
|
|
— |
|
|
(0.9 |
) |
Restructuring and other exit charges |
|
0.2 |
|
|
|
0.6 |
|
|
|
— |
|
|
— |
|
|
0.8 |
|
Amortization of intangible assets |
|
5.9 |
|
|
|
— |
|
|
|
0.4 |
|
|
|
|
6.3 |
|
|
Other |
|
0.1 |
|
|
|
0.1 |
|
|
|
|
|
— |
|
|
0.2 |
|
|
Adjusted Operating Earnings |
$ |
26.5 |
|
|
$ |
47.1 |
|
|
$ |
11.3 |
|
$ |
— |
|
$ |
84.9 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Increase (Decrease) as a % from prior year quarter |
Energy Systems |
|
Motive Power |
|
Specialty |
|
Corporate and other |
|
Total |
||||
Net Sales |
(14.0 |
)% |
|
(1.8 |
)% |
|
6.8 |
% |
|
NM |
|
(6.4 |
)% |
Operating Earnings |
(190.1 |
) |
|
5.4 |
|
|
(45.3 |
) |
|
NM |
|
17.9 |
|
Adjusted Operating Earnings |
(46.0 |
) |
|
11.9 |
|
|
(33.7 |
) |
|
NM |
|
53.4 |
|
NM = Not Meaningful |
|||||||||||||
|
Nine months ended |
|||||||||||||
|
($ millions) |
|||||||||||||
|
December 31, 2023 |
|||||||||||||
|
Energy Systems |
|
Motive Power |
|
Specialty |
|
Corporate and other |
|
Total |
|||||
Net Sales |
$ |
1,220.6 |
|
$ |
1,061.4 |
|
$ |
389.1 |
|
$ |
— |
|
$ |
2,671.1 |
|
|
|
|
|
|
|
|
|
|
|||||
Operating Earnings |
$ |
20.4 |
|
$ |
147.3 |
|
$ |
10.9 |
|
$ |
92.0 |
|
$ |
270.6 |
Inventory adjustment relating to exit activities |
|
16.1 |
|
|
— |
|
|
3.1 |
|
|
— |
|
|
19.2 |
Restructuring and other exit charges |
|
5.1 |
|
|
7.9 |
|
|
6.6 |
|
|
— |
|
|
19.6 |
Impairment of indefinite-lived intangibles |
|
6.0 |
|
|
— |
|
|
— |
|
|
— |
|
|
6.0 |
Amortization of intangible assets |
|
18.5 |
|
|
0.5 |
|
|
2.1 |
|
|
— |
|
|
21.1 |
Other |
|
3.5 |
|
|
0.8 |
|
|
0.2 |
|
|
— |
|
|
4.5 |
Adjusted Operating Earnings |
$ |
69.6 |
|
$ |
156.5 |
|
$ |
22.9 |
|
$ |
92.0 |
|
$ |
341.0 |
|
Nine months ended |
||||||||||||||
|
($ millions) |
||||||||||||||
|
January 1, 2023 |
||||||||||||||
|
Energy Systems |
|
Motive Power |
|
Specialty |
|
Corporate and other |
|
Total |
||||||
Net Sales |
$ |
1,279.9 |
|
|
$ |
1,067.7 |
|
$ |
371.0 |
|
$ |
— |
|
$ |
2,718.6 |
|
|
|
|
|
|
|
|
|
|
||||||
Operating Earnings |
$ |
37.8 |
|
|
$ |
116.8 |
|
$ |
28.3 |
|
$ |
— |
|
$ |
182.9 |
Inventory adjustment relating to exit activities |
|
(0.2 |
) |
|
|
0.8 |
|
|
— |
|
|
— |
|
|
0.6 |
Restructuring and other exit charges |
|
1.2 |
|
|
|
11.2 |
|
|
— |
|
|
— |
|
|
12.4 |
Amortization of intangible assets |
|
17.7 |
|
|
|
— |
|
|
1.2 |
|
|
— |
|
|
18.9 |
Other |
|
0.1 |
|
|
|
0.2 |
|
|
— |
|
|
— |
|
|
0.3 |
Adjusted Operating Earnings |
$ |
56.6 |
|
|
$ |
129.0 |
|
$ |
29.5 |
|
$ |
— |
|
$ |
215.1 |
Increase (Decrease) as a % from prior year |
Energy Systems |
|
Motive Power |
|
Specialty |
|
Corporate and other |
|
Total |
||||
Net Sales |
(4.6 |
)% |
|
(0.6 |
)% |
|
4.9 |
% |
|
NM |
|
(1.7 |
)% |
Operating Earnings |
(46.3 |
) |
|
26.2 |
|
|
(61.5 |
) |
|
NM |
|
48.0 |
|
Adjusted Operating Earnings |
23.0 |
|
|
21.2 |
|
|
(22.5 |
) |
|
NM |
|
58.4 |
|
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 |
|
Nine months ended |
||||||||
|
($ millions) |
|
($ millions) |
||||||||
|
December 31, 2023 |
|
January 1, 2023 |
|
December 31, 2023 |
|
January 1, 2023 |
||||
Net Earnings |
$ |
76.2 |
|
$ |
44.4 |
|
|
208.2 |
|
$ |
109.9 |
Depreciation |
|
16.2 |
|
|
14.8 |
|
|
47.2 |
|
|
45.1 |
Amortization |
|
6.9 |
|
|
7.8 |
|
|
21.1 |
|
|
23.9 |
Interest |
|
11.7 |
|
|
17.5 |
|
|
39.1 |
|
|
44.5 |
Income Taxes |
|
2.5 |
|
|
13.4 |
|
|
17.4 |
|
|
25.0 |
EBITDA |
|
113.5 |
|
|
97.9 |
|
|
333.0 |
|
|
248.4 |
Non-GAAP adjustments |
|
30.8 |
|
|
0.2 |
|
|
49.3 |
|
|
20.9 |
Adjusted EBITDA |
$ |
144.3 |
|
$ |
98.1 |
|
$ |
382.3 |
|
$ |
269.3 |
The following table provides the non-GAAP adjustments shown in the reconciliation above:
|
Quarter ended |
|
Nine months ended |
|||||||||
|
($ millions) |
|
($ millions) |
|||||||||
|
December 31, 2023 |
|
January 1, 2023 |
|
December 31, 2023 |
|
January 1, 2023 |
|||||
Inventory adjustment relating to exit activities |
$ |
16.1 |
|
$ |
(0.9 |
) |
|
$ |
19.2 |
|
$ |
0.6 |
Restructuring and other exit charges |
|
6.1 |
|
|
0.8 |
|
|
|
19.6 |
|
|
12.4 |
Impairment of indefinite-lived intangibles |
|
6.0 |
|
|
— |
|
|
|
6.0 |
|
|
0.0 |
Other |
|
2.6 |
|
|
0.4 |
|
|
|
4.5 |
|
|
1.5 |
Remeasurement of monetary assets included in other (income) expense relating to exit from |
|
— |
|
|
(0.6 |
) |
|
|
— |
|
|
4.5 |
Asset Securitization Transaction Fees |
|
— |
|
|
0.5 |
|
|
|
— |
|
|
0.5 |
Cost of funding to terminate net investment hedges |
|
— |
|
|
— |
|
|
|
— |
|
|
1.4 |
Non-GAAP adjustments |
$ |
30.8 |
|
$ |
0.2 |
|
|
$ |
49.3 |
|
$ |
20.9 |
The table below presents a reconciliation of Gross Profit and Gross Margin to Adjusted Gross Profit and Adjusted Gross Margin:
|
Quarter ended |
|
Nine months ended |
||||||||||||
|
($ millions) |
|
($ millions) |
||||||||||||
|
December 31, 2023 |
|
January 1, 2023 |
|
December 31, 2023 |
|
January 1, 2023 |
||||||||
Gross Profit as reported |
$ |
248.6 |
|
|
$ |
213.7 |
|
|
$ |
728.5 |
|
|
$ |
594.1 |
|
Inventory adjustment relating to exit activities |
|
16.1 |
|
|
|
(0.9 |
) |
|
|
19.2 |
|
|
|
0.7 |
|
Adjusted Gross Profit |
|
264.7 |
|
|
|
212.8 |
|
|
|
747.7 |
|
|
|
594.8 |
|
|
|
|
|
|
|
|
|
||||||||
Gross Margin |
|
28.9 |
% |
|
|
23.2 |
% |
|
|
27.3 |
% |
|
|
21.9 |
% |
Adjusted Gross Margin |
|
30.7 |
% |
|
|
23.1 |
% |
|
|
28.0 |
% |
|
|
21.9 |
% |
The table below presents a reconciliation of Operating Cash Flow to Free Cash Flow and Adjusted Free Cash Flow Conversion percentages:
|
Quarter ended |
|
Nine months ended |
||||||||||||
|
($ millions) |
|
($ millions) |
||||||||||||
|
December 31, 2023 |
|
January 1, 2023 |
|
December 31, 2023 |
|
January 1, 2023 |
||||||||
Net cash provided by (used in) operating activities |
$ |
134.5 |
|
|
$ |
206.1 |
|
|
$ |
320.2 |
|
|
$ |
135.8 |
|
Less Capital Expenditures |
|
(23.1 |
) |
|
|
(17.8 |
) |
|
|
(59.0 |
) |
|
|
(57.5 |
) |
Free Cash Flow |
|
111.4 |
|
|
|
188.3 |
|
|
|
261.2 |
|
|
|
78.3 |
|
|
Quarter ended |
|
Nine months ended |
||||||||||||
|
($ millions) |
|
($ millions) |
||||||||||||
|
December 31, 2023 |
|
January 1, 2023 |
|
December 31, 2023 |
|
January 1, 2023 |
||||||||
Net cash provided by (used in) operating activities |
$ |
134.5 |
|
|
$ |
206.1 |
|
|
$ |
320.2 |
|
|
$ |
135.8 |
|
Net earnings |
|
76.2 |
|
|
|
44.4 |
|
|
|
208.2 |
|
|
|
109.9 |
|
Operating cash flow conversion % |
|
176.5 |
% |
|
|
464.2 |
% |
|
|
153.8 |
% |
|
|
123.6 |
% |
|
|
|
|
|
|
|
|
||||||||
Free cash flow |
|
111.4 |
|
|
|
188.3 |
|
|
|
261.2 |
|
|
|
78.3 |
|
Adjusted net earnings |
|
105.0 |
|
|
|
52.3 |
|
|
|
260.1 |
|
|
|
145.4 |
|
Adjusted free cash flow conversion % |
|
106.1 |
% |
|
|
360.0 |
% |
|
|
100.4 |
% |
|
|
53.9 |
% |
The following table provides a reconciliation of Net earnings to EBITDA (non-GAAP) and adjusted EBITDA (non-GAAP) per credit agreement for December 31, 2023 and January 1, 2023, in connection with the Fourth Amended Credit Facility:
|
|
Last twelve months |
||||
|
|
December 31, 2023 |
|
January 1, 2023 |
||
|
|
(in millions, except ratios) |
||||
Net earnings as reported |
|
$ |
274.1 |
|
$ |
137.9 |
Add back: |
|
|
|
|
||
Depreciation and amortization |
|
|
90.5 |
|
|
92.6 |
Interest expense |
|
|
54.1 |
|
|
53.9 |
Income tax expense |
|
|
27.3 |
|
|
35.8 |
EBITDA (non-GAAP) |
|
|
446.0 |
|
|
320.2 |
Adjustments per credit agreement definitions(1) |
|
|
78.6 |
|
|
59.8 |
Adjusted EBITDA (non-GAAP) per credit agreement(1) |
|
$ |
524.6 |
|
$ |
380.0 |
Total net debt(2) |
|
|
586.9 |
|
|
858.9 |
Leverage ratios: |
|
|
|
|
||
Total net debt/credit adjusted EBITDA ratio |
|
1.1 X |
|
2.3 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) |
|
||||||
|
December 31, 2023 |
|
January 1, 2023 |
|
||||
Net earnings reconciliation |
|
|
|
|
||||
As reported Net Earnings |
$ |
76.2 |
|
|
$ |
44.4 |
|
|
Non-GAAP adjustments: |
|
|
|
|
||||
Inventory adjustment relating to exit activities |
|
16.1 |
|
(1) |
|
(0.9 |
) |
(1) |
Restructuring and other exit charges |
|
6.1 |
|
(1) |
|
0.8 |
|
(1) |
Impairment of indefinite-lived intangibles |
|
6.0 |
|
(2) |
|
— |
|
(2) |
Amortization of identified intangible assets |
|
6.9 |
|
(3) |
|
6.3 |
|
(3) |
Remeasurement of monetary assets included in other (income) expense relating to exit from |
|
— |
|
|
|
(0.6 |
) |
|
Asset Securitization Transaction Fees |
|
— |
|
|
|
0.5 |
|
|
Other |
|
2.6 |
|
(4) |
|
0.4 |
|
|
Income tax effect of above non-GAAP adjustments |
|
(8.9 |
) |
|
|
1.4 |
|
|
Non-GAAP adjusted Net earnings |
$ |
105.0 |
|
|
$ |
52.3 |
|
|
|
|
|
|
|
||||
Outstanding shares used in per share calculations |
|
|
|
|
||||
Basic |
|
40,451,279 |
|
|
|
40,835,636 |
|
|
Diluted |
|
41,047,893 |
|
|
|
41,281,693 |
|
|
Non-GAAP adjusted Net earnings per share: |
|
|
|
|
||||
Basic |
$ |
2.59 |
|
|
$ |
1.28 |
|
|
Diluted |
$ |
2.56 |
|
|
$ |
1.27 |
|
|
|
|
|
|
|
||||
Reported Net earnings (Loss) per share: |
|
|
|
|
||||
Basic |
$ |
1.88 |
|
|
$ |
1.09 |
|
|
Diluted |
$ |
1.86 |
|
|
$ |
1.08 |
|
|
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) |
|||||
|
|
December 31, 2023 |
|
January 1, 2023 |
|||
|
|
Pre-tax |
|
Pre-tax |
|||
(1) Inventory adjustment relating to exit activities - Energy Systems |
|
$ |
16.1 |
|
$ |
(0.2 |
) |
(1) Inventory adjustment relating to exit activities - Motive Power |
|
$ |
— |
|
$ |
(0.7 |
) |
(1) Restructuring and other exit charges - Energy Systems |
|
|
2.4 |
|
|
0.2 |
|
(1) Restructuring and other exit charges - Motive Power |
|
|
2.9 |
|
|
0.6 |
|
(1) Restructuring and other exit charges - Specialty |
|
|
0.8 |
|
|
— |
|
(2) Impairment of indefinite-lived intangibles - Energy Systems |
|
|
6.0 |
|
|
— |
|
(3) Amortization of identified intangible assets - Energy Systems |
|
|
6.0 |
|
|
5.9 |
|
(3) Amortization of identified intangible assets - Motive Power |
|
|
0.2 |
|
|
— |
|
(3) Amortization of identified intangible assets - Specialty |
|
|
0.7 |
|
|
0.4 |
|
(4) Other - Energy Systems |
|
|
2.4 |
|
|
— |
|
(4) Other - Motive Power |
|
|
0.2 |
|
|
— |
|
Total Non-GAAP adjustments |
|
$ |
37.7 |
|
$ |
6.2 |
|
|
Nine months ended |
|
||||||
|
(in millions, except share and per share amounts) |
|
||||||
|
December 31, 2023 |
|
January 1, 2023 |
|
||||
Net Earnings reconciliation |
|
|
|
|
||||
As reported Net Earnings |
$ |
208.2 |
|
|
$ |
109.9 |
|
|
Non-GAAP adjustments: |
|
|
|
|
||||
Inventory adjustment relating to exit activities |
|
19.2 |
|
(1) |
|
0.6 |
|
(1) |
Restructuring and other exit charges |
|
19.6 |
|
(1) |
|
12.4 |
|
(1) |
Impairment of indefinite-lived intangibles |
|
6.0 |
|
(2) |
|
— |
|
(2) |
Amortization of identified intangible assets |
|
21.1 |
|
(2) |
|
18.9 |
|
(2) |
Remeasurement of monetary assets included in other (income) expense relating to exit from Russia Operations |
|
— |
|
|
|
4.5 |
|
|
Asset Securitization Transaction Fees |
|
— |
|
|
|
0.5 |
|
|
Acquisition activity expense |
|
— |
|
|
|
— |
|
|
Cost of funding to terminate net investment hedges |
|
— |
|
|
|
1.4 |
|
|
Financing fees related to debt modification |
|
— |
|
|
|
1.2 |
|
|
Other |
|
4.5 |
|
(3) |
|
1.5 |
|
|
Income tax effect of above non-GAAP adjustments |
|
(18.5 |
) |
|
|
(5.5 |
) |
|
Non-GAAP adjusted Net Earnings |
$ |
260.1 |
|
|
$ |
145.4 |
|
|
|
|
|
|
|
||||
Outstanding shares used in per share calculations |
|
|
|
|
||||
Basic |
|
40,770,524 |
|
|
|
40,787,654 |
|
|
Diluted |
|
41,476,950 |
|
|
|
41,267,320 |
|
|
Non-GAAP adjusted Net Earnings per share: |
|
|
|
|
||||
Basic |
$ |
6.38 |
|
|
$ |
3.56 |
|
|
Diluted |
$ |
6.27 |
|
|
$ |
3.52 |
|
|
|
|
|
|
|
||||
Reported Net Earnings (Loss) per share: |
|
|
|
|
||||
Basic |
$ |
5.11 |
|
|
$ |
2.69 |
|
|
Diluted |
$ |
5.02 |
|
|
$ |
2.66 |
|
|
Dividends per common share |
$ |
0.625 |
|
|
$ |
0.525 |
|
|
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:
|
|
Nine months ended |
|||||
|
|
($ millions) |
|||||
|
|
December 31, 2023 |
|
January 1, 2023 |
|||
|
|
Pre-tax |
|
Pre-tax |
|||
(1) Inventory adjustment relating to exit activities - Energy Systems |
|
|
16.1 |
|
|
(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 |
|
|
5.1 |
|
|
1.2 |
|
(1) Restructuring and other exit charges - Motive Power |
|
|
7.9 |
|
|
11.2 |
|
(1) Restructuring and other exit charges - Specialty |
|
|
6.6 |
|
|
— |
|
(2) Impairment of indefinite-lived intangibles - Energy Systems |
|
|
6.0 |
|
|
— |
|
(2) Amortization of identified intangible assets - Energy Systems |
|
|
18.5 |
|
|
17.7 |
|
(2) Amortization of identified intangible assets - Motive Power |
|
|
0.5 |
|
|
— |
|
(2) Amortization of identified intangible assets - Specialty |
|
|
2.1 |
|
|
1.2 |
|
(3) Other - Energy Systems |
|
|
3.5 |
|
|
— |
|
(3) Other - Motive Power |
|
|
0.8 |
|
|
— |
|
(3) Other - Specialty |
|
|
0.2 |
|
|
— |
|
Total Non-GAAP adjustments |
|
$ |
70.4 |
|
$ |
31.9 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240207265587/en/
Lisa Hartman
V.P., Investor Relations and Corporate Communications
EnerSys
610-236-4040
E-mail: investorrelations@enersys.com
Source: EnerSys
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