EnerSys Reports Fourth Quarter and Full Year Fiscal 2024 Results
Delivers Gross Margin of 27.9%, up 300 Basis Points From Prior Year
Fourth Quarter Fiscal 2024 Highlights
(All comparisons against the fourth quarter of fiscal year 2023 unless otherwise noted)
- Delivered net sales of $911M, down 8%, primarily driven by temporary spending pauses in telecom and broadband
- Achieved GM of 27.9%, +300 bps, and adjusted GM(b) of 28.0%, +310 bps, including $36M benefit from Inflation Reduction Act / IRC 45X tax credits
- Realized diluted EPS of $1.48, down 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, down 3%
- Achieved GM of 27.4%, +470 bps, and adjusted GM (b) of 28.0%, +530 bps, including $136M benefit from Inflation Reduction Act / IRC 45X tax credits
- 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 to shareholders through share repurchases and dividends
READING, Pa.–(BUSINESS WIRE)–#EnerSys—EnerSys (NYSE: ENS), the global leader in stored energy solutions for industrial applications, announced today results for its fourth quarter and full year fiscal 2024, which ended on March 31, 2024.
|
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 25% of Motive Power sales in the quarter. Data Center growth was a bright spot, up 10% sequentially, bringing data center revenue to 10% of total company revenue, up from 8% in prior year fourth quarter. In our Specialty business, performance was supported by productivity improvements in our Missouri factory. We continue to progress toward full commercialization of our Fast Charge and Storage (FC&S) solution and are on track for our first system installations in late summer 2024.
We are advancing on the development of our lithium-ion cell gigafactory. During the quarter, we selected Greenville, South Carolina, as the location and we secured state and local funding totaling $200 million. EnerSys has applied to the Department of Energy for additional funding with awards expected to be announced in August. We intend to use the IRC 45X tax credits to increase our investments in domestic manufacturing of energy dense batteries, as the law intended.
Subsequent to the end of the quarter, we were very pleased to announce our agreement to acquire Bren-Tronics, a leading U.S. manufacturer of portable power solutions, which will expand our presence in critical defense applications, broaden our product offerings, and strengthen our product development capabilities. The acquisition will be immediately accretive to our earnings upon closing, which is expected near the end of our fiscal first quarter.
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 $910.7 million, a decrease of 8.0% from the prior year fourth quarter net sales of $989.9 million. The decrease compared to prior year quarter was the result of a 7% decrease in organic volume and a 1% decrease in foreign currency translation impact.
Net earnings attributable to EnerSys stockholders (“Net earnings”) for the fourth quarter of fiscal 2024 was $60.9 million, or $1.48 per diluted share, which included an unfavorable highlighted net of tax impact of $24.3 million, or $0.60 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 fourth quarter of fiscal 2023 was $65.9 million, or $1.59 per diluted share, which included an unfavorable highlighted net of tax impact of $9.5 million, or $0.23 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 fourth quarter of fiscal 2024, on a non-GAAP basis, were $2.08, compared to the guidance of $1.98 to $2.08 per diluted share for the fourth quarter given by the Company on February 7, 2024. These earnings compare to the prior year fourth quarter adjusted Net earnings of $1.82 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 March 31, 2024 and March 31, 2023.
In the first quarter of fiscal 2024, we introduced a new line of business, New Ventures, that includes energy storage and management systems for demand charge reduction, utility back-up power, and dynamic fast charging for electric vehicles. The financial results of the New Ventures segment includes start up operating expenses and is included in the Corporate and other line in our operating earnings.
Fiscal Year 2024
Net sales for the twelve months of fiscal 2024 were $3,581.8 million, a decrease of 3.4% from the prior year twelve months net sales of $3,708.5 million. This decrease was due to a 7% decrease in organic volume, partially offset by a 4% increase in pricing.
Net earnings for the twelve months of fiscal 2024 was $269.1 million, or $6.50 per diluted share, which included an unfavorable highlighted net of tax impact of $76.2 million, or $1.85 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 twelve months of fiscal 2023 was $175.8 million, or $4.25 per diluted share, which included an unfavorable highlighted net of tax impact of $45.0 million, or $1.09 per diluted share, from highlighted items described in further detail in the tables shown below, reconciling non-GAAP adjusted financial measures to reported amounts.
Adjusted Net earnings per diluted share for the twelve months of fiscal 2024, on a non-GAAP basis, were $8.35. This compares to the prior year twelve months adjusted Net earnings of $5.34 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.
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 to $900M
- Adjusted diluted earnings per share in the range of $1.93 to $2.03*
For the full year fiscal 2025, EnerSys expects:
- Net sales in the range of $3,675M to $3,825M
- Adjusted diluted earnings per share in the range of $8.55 to $8.95*
- Capital expenditures in the range of $100M to $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 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 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 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 |
|
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–$8,107; 2023–$8,775) |
|
|
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, $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding at March 31, 2024 and at March 31, 2023 |
|
|
— |
|
|
|
— |
|
|
Common Stock, $0.01 par value per share, 135,000,000 shares authorized, 56,363,924 shares issued and 40,271,936 shares outstanding at March 31, 2024; 56,004,613 shares issued and 40,901,059 shares outstanding at March 31, 2023 |
|
|
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 |
|
Contacts
Lisa Hartman
Vice President, Investor Relations and Corporate Communications
EnerSys
610-236-4040
E-mail: investorrelations@enersys.com
