EnerSys the global leader in stored energy solutions for industrial applications, announced today results for its fourth quarter and full year of fiscal 2014, which ended on March 31, 2014.
Net earnings attributable to EnerSys stockholders ("Net earnings") for the fourth quarter of fiscal 2014 were $12.8 million, or $0.26 per diluted share, including an unfavorable highlighted net of tax impact of $0.92 per share from a charge of $10.6 million for restructuring plans, legal proceedings charge of $35.7 million and $0.4 million for fees related to acquisition activities.
The Net earnings of $0.26 per diluted share, compares to Net earnings per diluted share of $0.77 for the fourth quarter of fiscal 2013, which included an unfavorable highlighted net of tax charge of $0.03 per share from a charge of $1.3 million for restructuring plans.
Excluding these highlighted items, adjusted Net earnings per diluted share for the fourth quarter of fiscal 2014, on a non-GAAP basis were $1.18, which exceeds the guidance of $1.08 to $1.12 per diluted share given by the Company on February 5, 2014. These earnings compare to the prior year fourth quarter adjusted Net earnings of $0.80 per diluted share. Please refer to the section included herein under the heading "Reconciliation of Non-GAAP Financial Measures" for a discussion of the Company's use of non-GAAP adjusted financial information.
Net sales for the fourth quarter of fiscal 2014 were $665.2 million, a 16% increase from the prior year fourth quarter net sales of $572.2 million. The 16% increase was the result of a 9% increase in organic volume, a 6% increase from acquisitions and a 1% increase due to pricing. Sequential quarterly sales increased 3% from the third quarter of fiscal 2014 net sales of $643.1 million primarily due to a 2% increase in organic volume improvement and a 1% increase from acquisitions in Americas and Asia.
Net earnings for the twelve months of fiscal 2014 were $150.3 million or $3.02 per diluted share, including an unfavorable net of tax impact of $0.94 per share from a charge of $23.0 million for restructuring plans, legal proceedings charge of $35.7 million, write-off of goodwill and other non-operating assets of $8.9 million and $1.6 million for fees related to acquisition activities partially offset by a net tax credit for $22.1 million.
Net earnings for the twelve months of fiscal 2013 were $166.5 million or $3.42 per diluted share, including an unfavorable net of tax impact of $0.13 per share from a charge of $6.1 million for restructuring plans and $0.2 million for fees related to acquisition activities.
Adjusted net earnings for the twelve months of fiscal 2014, on a non-GAAP basis, were $3.96 per diluted share. This compares to the prior year twelve months adjusted net earnings of $3.55 per diluted share. Please refer to the section included herein under the heading "Reconciliation of Non-GAAP Financial Measures" for a discussion of the Company's use of non-GAAP adjusted financial information.
Net sales for the twelve months of fiscal 2014 were $2,474.4 million, an increase of 9% from the net sales of $2,277.6 million in the comparable period in fiscal 2013. The 9% increase was primarily the result of a 5% increase in organic volume, a 3% increase from acquisitions and a 1% increase due to pricing.
"We are pleased with our previously reported full year record earnings of $3.96 per diluted share on an as-adjusted basis," stated John D. Craig, chairman, president and chief executive officer of EnerSys. "In addition, our EMEA employees are to be congratulated for achieving operating earnings of 12.4% for the fiscal fourth quarter. This is the first time they have exceeded our minimum operating earnings target of 10%."
Mr. Craig added, "Our first quarter of fiscal 2015 guidance for non-GAAP adjusted net earnings per diluted share should be $1.02 to $1.06, which excludes an expected net charge of $0.07 from our ongoing restructuring programs and acquisition expenses."
Reconciliation of 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 measure "adjusted Net earnings" in their analysis of the Company's performance. This measure, as used by EnerSys in past quarters and years, adjusts Net 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. Management believes the presentation of this financial measure reflecting these non-GAAP adjustments provides important supplemental information in evaluating the operating results of the Company as distinct from results that include items that are not indicative of ongoing operating results; in particular, those charges that the Company incurs as a result of restructuring activities and those charges and credits that are not directly related to operating unit performance, such as fees and expenses related to acquisition and litigation activities. Because these charges are not incurred as a result of ongoing operations or are incurred as a result of a potential acquisition, they are not a helpful measure of the performance of our underlying business particularly in light of their unpredictable nature. This non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for net earnings 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 is it 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.
EnerSys will host a conference call to discuss the Company's fourth quarter fiscal 2014 financial results and provide an overview of the business. The call will conclude with a question and answer session.
The call, scheduled for Thursday, May 29, 2014 at 9:00 a.m. Eastern Time, will be hosted by John D. Craig, Chairman, President & Chief Executive Officer, and Michael J. Schmidtlein, Senior Vice President Finance and Chief Financial Officer.
EnerSys, the world leader in stored energy solutions for industrial applications, manufactures and distributes reserve power and motive power batteries, battery chargers, power equipment, battery accessories and outdoor equipment enclosure solutions to customers worldwide. Motive power batteries and chargers are utilized in electric forklift trucks and other commercial electric powered vehicles. Reserve power batteries are used in the telecommunication and utility industries, uninterruptible power supplies, and numerous applications requiring stored energy solutions including aerospace and defense systems. Outdoor equipment enclosure products are utilized in the telecommunication, cable, utility, transportation industries and by government and defense customers. The company also provides aftermarket and customer support services to its customers from over 100 countries through its sales and manufacturing locations around the world.