EnerSys Reports First Quarter Fiscal 2025 Results
Delivers Gross Margin of 28%, Up 160 Basis Points From Prior Year
First Quarter Fiscal 2025 Highlights
(All comparisons against the first quarter of fiscal year 2024 unless otherwise noted)
- Delivered net sales of $853M, down 6%, with Motive Power on plan, continued pressure in Communications, and spending pause in Class 8 truck OEMs
- Encouraging demand signals in Energy Systems with backlog increasing for the first time in eight quarters
- Achieved GM of 28.0%, +160 bps, including increased benefits from Inflation Reduction Act / IRC 45X tax credits
- Realized diluted EPS of $1.71, +7%, and adjusted diluted EPS(1) of $1.98, +5%
- Net leverage ratio(a) 1.1 X EBITDA on operating cash flow of $10M
- In July, closed on acquisition of Bren-Tronics, a leading U.S. manufacturer of portable lithium power solutions
- On August 7, 2024, the Board of Directors declared a 7% increase in the company’s quarterly dividend to $0.24 per share for the second quarter of 2025
READING, Pa.–(BUSINESS WIRE)–#EnerSys—EnerSys (NYSE: ENS), the global leader in stored energy solutions for industrial applications, announced today results for its first quarter of fiscal 2025, which ended on June 30, 2024.
|
Message from the CEO |
In the first quarter of our new fiscal year, we delivered EPS at the mid-point and revenue slightly below the low end of our guidance range. Amid topline temporary market pressures, we are advancing on our strategic initiatives, delivering cost reductions, and remain optimistic for this fiscal year’s results. In Energy Systems, volumes and mix were down on continued weakness in Communications, however the impact was partly mitigated by realization of our significant cost reduction actions, and we saw encouraging order trends at the end of the quarter. Revenue performance was impacted by foreign exchange rate headwinds and a market wide drop in Class 8 truck OEM demand. Motive Power was a bright spot, with volumes and margins increasing versus the prior year, supported by consistent customer demand in logistics and warehousing, and continued strength in our maintenance-free offerings. In our Missouri factories we delivered improved productivity, although results were pressured by under-absorption from lower volumes. We anticipate this will improve in the second half of the year as Communications spend resumes and Specialty aftermarket volume picks up. We delivered EPS as planned by holding price and taking disciplined cost reduction actions while investing in exciting future growth opportunities.
We are in the final testing phase of our first commercially ready Fast Charge & Storage (FC&S) system, which will soon be delivered to our launch customer. In July, we closed on the acquisition of Bren-Tronics, a leading U.S. manufacturer of portable power solutions, which expands our lithium product offerings and presence in the defense market, and which we expect will be immediately accretive.
We continue to advance our lithium gigafactory planning and look forward to learning the results of the Department of Energy’s funding allocation in the coming weeks. We are building our collaborative relationship with Verkor, making investments to support their growth, and progressing on the key agreements which will support our cell development and factory operations.
Although some of the headwinds we experienced in the first quarter are expected to persist in the second quarter, we see promising demand indicators and positive momentum across our business, with sequential growth as we progress through the fiscal year. We remain optimistic about our full year earnings outlook and excited about our position as a leading enabler of the global energy transition with significant growth opportunities ahead.
David M. Shaffer, President and Chief Executive Officer, EnerSys
|
Key Financial Results and Metrics |
First quarter ended |
||||||||
|
In millions, except per share amounts |
June 30, 2024 |
|
July 2, 2023 |
|
Change |
||||
|
Net Sales |
$ |
852.9 |
|
$ |
908.6 |
|
|
(6.1 |
)% |
|
Diluted EPS (GAAP) |
$ |
1.71 |
|
$ |
1.60 |
|
$ |
0.11 |
|
|
Adjusted Diluted EPS (Non-GAAP)(1) |
$ |
1.98 |
|
$ |
1.89 |
|
$ |
0.09 |
|
|
Gross Profit (GAAP) |
$ |
238.4 |
|
$ |
240.3 |
|
$ |
(1.9 |
) |
|
Operating Earnings (GAAP) |
$ |
91.3 |
|
$ |
89.4 |
|
$ |
1.9 |
|
|
Adjusted Operating Earnings (Non-GAAP)(2) |
$ |
105.7 |
|
$ |
107.2 |
|
$ |
(1.5 |
) |
|
Net Earnings (GAAP) |
$ |
70.1 |
|
$ |
66.8 |
|
$ |
3.3 |
|
|
EBITDA (Non-GAAP)(3) |
$ |
113.9 |
|
$ |
111.4 |
|
$ |
2.5 |
|
|
Adjusted EBITDA (Non-GAAP)(3) |
$ |
121.4 |
|
$ |
122.2 |
|
$ |
(0.8 |
) |
|
Share Repurchases |
$ |
11.6 |
|
$ |
— |
|
$ |
11.6 |
|
|
Dividend per share |
$ |
0.225 |
|
$ |
0.175 |
|
$ |
0.05 |
|
|
Total Capital Returned to Stockholders |
$ |
20.7 |
|
$ |
7.1 |
|
$ |
13.6 |
|
|
(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. |
|
(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
First Quarter 2025
Net sales for the first quarter of fiscal 2025 were $852.9 million, a decrease of 6.1% from the prior year first quarter net sales of $908.6 million, and slightly below the low end of the first quarter fiscal 2025 guidance of $860 million to $900 million. The decrease compared to prior year quarter was the result of a 3% decrease in organic volume, a 2% decrease in price/mix and a 1% decrease in foreign currency translation impact.
Net earnings attributable to EnerSys stockholders (“Net earnings”) for the first quarter of fiscal 2025 was $70.1 million, or $1.71 per diluted share, which included an unfavorable highlighted net of tax impact of $10.9 million, or $0.27 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 first quarter of fiscal 2024 was $66.8 million, or $1.60 per diluted share, which included an unfavorable highlighted net of tax impact of $11.8 million, or $0.29 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 first quarter of fiscal 2025, on a non-GAAP basis, were $1.98, compared to the guidance of $1.93 to $2.03 per diluted share for the first quarter given by the Company on May, 22, 2024. These earnings compare to the prior year first quarter adjusted Net earnings of $1.89 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 June 30, 2024 and July 2, 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.
Quarterly Dividend
The company announced today that its Board of Directors has declared a quarterly cash dividend increase of 7% to $0.24 per share of common stock payable on September 30, 2024, to holders of record as of September 16, 2024. This increase is up from $0.225 per share paid in the first quarter of 2025.
Second Quarter and Full Year 2025 Outlook
In the second quarter of fiscal 2025, EnerSys expects:
- Net sales in the range of $880M to $920M
- Adjusted diluted earnings per share in the range of $2.05 to $2.15*
For the full year fiscal 2025, EnerSys expects:
- Net sales in the range of $3,735M to $3,885M, up from prior guidance of $3,675M to $3,825M
- Adjusted diluted earnings per share in the range of $8.80 to $9.20*, up from prior guidance of $8.55 to $8.95*
- Capital expenditures in the range of $100M to $120M
“We remain optimistic about our fiscal year 2025 financial targets. As a result, we are increasing the mid-point of our full year fiscal 2025 revenue guidance by $60 million and our full year fiscal 2025 adjusted diluted earnings per share guidance by $0.25 per share to include the incremental benefits of our acquisition of Bren-Tronics on top of the base business expectations that were in our previous guidance. While we are seeing encouraging demand trends in the majority of our end markets, we are managing our business prudently to navigate the spending pauses in the Class 8 truck OEM and Communications markets. We believe inventory de-stocking is complete and the deferred spending that is occurring is unsustainable to maintain network resiliency, resulting in pent-up demand that will materialize later this year. In the second quarter, we expect a modest sequential improvement in North America Communications spending in Energy Systems, modest Transportation aftermarket volume growth in Specialty, and incremental revenue from Bren-Tronics. We also expect to see continued cost improvements and benefits from operational efficiencies flowing through to our bottom line. The global concern over energy scarcity will persist as major trends drive a swift rise in the demand for reliable power. As a key provider of energy systems and storage solutions, EnerSys is well-positioned to take advantage of this growth opportunity. We remain focused on delivering long-term value to our stockholders,” said Andrea Funk, EnerSys Chief Financial Officer.
*Inclusive of IRC 45X tax benefits created with 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.
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 first quarter results at 9:00 AM (ET) Thursday, August 8, 2024. A live broadcast as well as a replay of the call can be accessed via https://edge.media-server.com/mmc/p/6m475zy4/ 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/BI3ddd2fa2c98f44939b244b0ff22777b1. 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 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, 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 |
||||
|
|
June 30, 2024 |
|
July 2, 2023 |
||
|
Net sales |
$ |
852.9 |
|
$ |
908.6 |
|
Gross profit |
|
238.4 |
|
$ |
240.3 |
|
Operating expenses |
|
141.2 |
|
$ |
144.6 |
|
Restructuring and other exit charges |
|
5.9 |
|
$ |
6.3 |
|
Operating earnings |
|
91.3 |
|
$ |
89.4 |
|
Earnings before income taxes |
|
79.3 |
|
$ |
73.5 |
|
Income tax expense |
|
9.2 |
|
$ |
6.7 |
|
Net earnings attributable to EnerSys stockholders |
$ |
70.1 |
|
$ |
66.8 |
|
|
|
|
|
||
|
Net reported earnings per common share attributable to EnerSys stockholders: |
|
|
|
||
|
Basic |
$ |
1.74 |
|
$ |
1.63 |
|
Diluted |
$ |
1.71 |
|
$ |
1.60 |
|
Dividends per common share |
$ |
0.225 |
|
$ |
0.175 |
|
Weighted-average number of common shares used in reported earnings per share calculations: |
|
|
|
||
|
Basic |
|
40,204,013 |
|
|
40,937,334 |
|
Diluted |
|
40,986,116 |
|
|
41,698,324 |
|
EnerSys Consolidated Condensed Balance Sheets (Unaudited) (In Thousands, Except Share and Per Share Data) |
||||||||
|
|
|
June 30, 2024 |
|
March 31, 2024 |
||||
|
Assets |
|
|
|
|
||||
|
Current assets: |
|
|
|
|
||||
|
Cash and cash equivalents |
|
$ |
344,069 |
|
|
$ |
333,324 |
|
|
Accounts receivable, net of allowance for doubtful accounts: June 30, 2024 – $8,447; March 31, 2024 – $8,107 |
|
|
507,925 |
|
|
|
524,725 |
|
|
Inventories, net |
|
|
713,698 |
|
|
|
697,698 |
|
|
Prepaid and other current assets |
|
|
283,407 |
|
|
|
226,949 |
|
|
Total current assets |
|
|
1,849,099 |
|
|
|
1,782,696 |
|
|
Property, plant, and equipment, net |
|
|
547,071 |
|
|
|
532,450 |
|
|
Goodwill |
|
|
679,164 |
|
|
|
682,934 |
|
|
Other intangible assets, net |
|
|
312,237 |
|
|
|
319,407 |
|
|
Deferred taxes |
|
|
48,512 |
|
|
|
49,798 |
|
|
Other assets |
|
|
121,164 |
|
|
|
98,721 |
|
|
Total assets |
|
$ |
3,557,247 |
|
|
$ |
3,466,006 |
|
|
Liabilities and Equity |
|
|
|
|
||||
|
Current liabilities: |
|
|
|
|
||||
|
Short-term debt |
|
$ |
29,960 |
|
|
$ |
30,444 |
|
|
Accounts payable |
|
|
354,729 |
|
|
|
369,456 |
|
|
Accrued expenses |
|
|
301,104 |
|
|
|
323,957 |
|
|
Total current liabilities |
|
|
685,793 |
|
|
|
723,857 |
|
|
Long-term debt, net of unamortized debt issuance costs |
|
|
867,104 |
|
|
|
801,965 |
|
|
Deferred taxes |
|
|
33,602 |
|
|
|
30,583 |
|
|
Other liabilities |
|
|
159,559 |
|
|
|
152,529 |
|
|
Total liabilities |
|
|
1,746,058 |
|
|
|
1,708,934 |
|
|
Commitments and contingencies |
|
|
|
|
||||
|
Equity: |
|
|
|
|
||||
|
Preferred Stock, $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding at June 30, 2024 and at March 31, 2024 |
|
|
— |
|
|
|
— |
|
|
Common Stock, $0.01 par value per share, 135,000,000 shares authorized, 56,455,353 shares issued and 40,237,053 shares outstanding at June 30, 2024; 56,363,924 shares issued and 40,271,936 shares outstanding at March 31, 2024 |
|
|
565 |
|
|
|
564 |
|
|
Additional paid-in capital |
|
|
644,155 |
|
|
|
629,879 |
|
|
Treasury stock at cost, 16,218,300 shares held as of June 30, 2024 and 16,091,988 shares held as of March 31, 2024 |
|
|
(847,283 |
) |
|
|
(835,827 |
) |
|
Retained earnings |
|
|
2,224,720 |
|
|
|
2,163,880 |
|
|
Accumulated other comprehensive loss |
|
|
(214,373 |
) |
|
|
(204,851 |
) |
|
Total EnerSys stockholders’ equity |
|
|
1,807,784 |
|
|
|
1,753,645 |
|
|
Nonredeemable noncontrolling interests |
|
|
3,405 |
|
|
|
3,427 |
|
|
Total equity |
|
|
1,811,189 |
|
|
|
1,757,072 |
|
|
Total liabilities and equity |
|
$ |
3,557,247 |
|
|
$ |
3,466,006 |
|
|
EnerSys Consolidated Condensed Statements of Cash Flows (Unaudited) (In Thousands) |
||||||||
|
|
|
Quarter ended |
||||||
|
|
|
June 30, 2024 |
|
July 2, 2023 |
||||
|
Cash flows from operating activities |
|
|
|
|
||||
|
Net earnings |
|
$ |
70,111 |
|
|
$ |
66,797 |
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|
|
|
|
||||
|
Depreciation and amortization |
|
|
23,550 |
|
|
|
22,693 |
|
|
Write-off of assets relating to exit activities |
|
|
118 |
|
|
|
3,343 |
|
|
Derivatives not designated in hedging relationships: |
|
|
|
|
||||
|
Net losses (gains) |
|
|
(354 |
) |
|
|
503 |
|
|
Cash (settlements) proceeds |
|
|
(190 |
) |
|
|
657 |
|
|
Provision for doubtful accounts |
|
|
628 |
|
|
|
504 |
|
|
Deferred income taxes |
|
|
31 |
|
|
|
42 |
|
|
Non-cash interest expense |
|
|
490 |
|
|
|
410 |
|
|
Stock-based compensation |
|
|
7,062 |
|
|
|
7,933 |
|
|
(Gain) loss on disposal of property, plant, and equipment |
|
|
(10 |
) |
|
|
43 |
|
|
Changes in assets and liabilities: |
|
|
|
|
||||
|
Accounts receivable |
|
|
12,183 |
|
|
|
73,198 |
|
|
Inventories |
|
|
(16,484 |
) |
|
|
(10,965 |
) |
|
Prepaid and other current assets |
|
|
(9,889 |
) |
|
|
(4,089 |
) |
|
Other assets |
|
|
(2,437 |
) |
|
|
(484 |
) |
|
Accounts payable |
|
|
(10,349 |
) |
|
|
(39,307 |
) |
|
Accrued expenses |
|
|
(64,251 |
) |
|
|
(46,647 |
) |
|
Other liabilities |
|
|
189 |
|
|
|
315 |
|
|
Net cash provided by (used in) operating activities |
|
|
10,398 |
|
|
|
74,946 |
|
|
|
|
|
|
|
||||
|
Cash flows from investing activities |
|
|
|
|
||||
|
Capital expenditures |
|
|
(36,137 |
) |
|
|
(16,093 |
) |
|
Purchase of business |
|
|
— |
|
|
|
(8,270 |
) |
|
Proceeds from disposal of property, plant, and equipment |
|
|
5 |
|
|
|
44 |
|
|
Investment in Equity Securities |
|
|
(10,852 |
) |
|
|
— |
|
|
Net cash (used in) provided by investing activities |
|
|
(46,984 |
) |
|
|
(24,319 |
) |
|
|
|
|
|
|
||||
|
Cash flows from financing activities |
|
|
|
|
||||
|
Net (repayments) borrowings on short-term debt |
|
|
(195 |
) |
|
|
(404 |
) |
|
Proceeds from Second Amended Revolver borrowings |
|
|
65,000 |
|
|
|
80,000 |
|
|
Repayments of Second Amended Revolver borrowings |
|
|
— |
|
|
|
(216,380 |
) |
|
Finance lease obligations |
|
|
5 |
|
|
|
— |
|
|
Option proceeds, net |
|
|
6,958 |
|
|
|
7,654 |
|
|
Payment of taxes related to net share settlement of equity awards |
|
|
(46 |
) |
|
|
— |
|
|
Purchase of treasury stock |
|
|
(11,641 |
) |
|
|
— |
|
|
Issuance of treasury stock- ESPP |
|
|
261 |
|
|
|
— |
|
|
Dividends paid to stockholders |
|
|
(9,043 |
) |
|
|
(7,173 |
) |
|
Debt issuance costs |
|
|
(351 |
) |
|
|
— |
|
|
Other |
|
|
(2 |
) |
|
|
354 |
|
|
Net cash (used in) financing activities |
|
|
50,946 |
|
|
|
(135,949 |
) |
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
(3,615 |
) |
|
|
(3,001 |
) |
|
Net decrease in cash and cash equivalents |
|
|
10,745 |
|
|
|
(88,323 |
) |
|
Cash and cash equivalents at beginning of period |
|
|
333,324 |
|
|
|
346,665 |
|
|
Cash and cash equivalents at end of period |
|
$ |
344,069 |
|
|
$ |
258,342 |
|
|
|
|
|
|
|
||||
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”, “EBITDA”, “adjusted EBITDA”, “adjusted EBITDA per credit agreement”, “net debt”, “net leverage ratio”, and “adjusted free cash flow conversion” as applicable, in their analysis of the Company’s performance. Adjusted Net earnings, adjusted gross margin, and adjusted operating earnings measures, as used by EnerSys in past quarters and years, adjusts Net earnings and operating earnings determined in accordance with GAAP to reflect changes in financial results associated with the Company’s restructuring initiatives and other highlighted charges and income items. Adjusted EBITDA is a key performance measure that our management uses to assess our operating performance. Because Adjusted EBITDA facilitates internal comparisons of our historical operating performance on a more consistent basis, we use this measure as an overall assessment of our performance, to evaluate the effectiveness of our business strategies and for business planning purposes.
Contacts
Lisa Hartman
Vice President, Investor Relations and Corporate Communications
EnerSys
610-236-4040
E-mail: investorrelations@enersys.com
