Virtus InfraCap U.S. Preferred Stock ETF (NYSE Arca: PFFA) DECLARES MONTHLY DISTRIBUTION
NEW YORK, Aug. 19, 2019 /PRNewswire/ -- The Virtus InfraCap U.S. Preferred Stock ETF (NYSE Arca: PFFA) has declared a monthly distribution of $0.19 per share. The distribution will be paid August 28, 2019 to shareholders of record as of the close of business August 21, 2019.
InfraCap REIT Preferred ETF (NYSE Arca: PFFR) DECLARES MONTHLY DIVIDEND
NEW YORK, Aug. 19, 2019 /PRNewswire/ -- The InfraCap REIT Preferred ETF (NYSE Arca: PFFR) has declared a monthly distribution of $0.12 per share. The distribution will be paid August 28, 2019 to shareholders of record as of the close of business August 21, 2019.
New BondNav® Features Simplify Bond Investing & Portfolio Management
SAN FRANCISCO, Aug. 19, 2019 /PRNewswire/ -- 280 CapMarkets introduced updates to BondNav, further streamlining bond investing and portfolio management for financial advisors and their investor clients.
InfraCap MLP ETF (NYSE Arca: AMZA) DECLARES MONTHLY DISTRIBUTION
NEW YORK, Aug. 19, 2019 /PRNewswire/ -- The InfraCap MLP ETF (NYSE Arca: AMZA) (the "Fund") has declared a monthly distribution of $0.08 ($0.96 per share on an annualized basis). The distribution will be paid August 28, 2019 to shareholders of record as of the close of business August 21, 2019. AMZA Cash Distribution: Ex-Date: Tuesday, August 20, 2019 Record Date: Wednesday, August 21, 2019 Payable Date: Wednesday, August 28, 2019The fund estimates that 100 percent of the distribution, or $0.08 per share, is attributable to return of capital and that 0.00 percent, or $0.00 per share, is attributable to dividend income. Infrastructure Capital Advisors expects to declare future distributions on a monthly basis. Distributions are planned, but not guaranteed, for every month. The next distribution is scheduled to occur in September 2019. For more information about AMZA's distribution policy, its 2019 distribution calendar, or tax information, please visit the fund's website at www.virtusetfs.com. About Virtus ETF Advisers Virtus ETF Advisers is a New York-based, multi-manager ETF sponsor and affiliate of Virtus Investment Partners. With actively managed and index-based investment capabilities across multiple asset classes, Virtus offers a range of complementary exchange-traded-funds subadvised by select investment managers. About Infrastructure Capital Advisors Infrastructure Capital Advisors, LLC (ICA) is an SEC-registered investment advisor that manages exchange traded funds and a series of hedge funds. The firm was formed in 2012 and is based in New York City. ICA seeks total-return opportunities in key infrastructure sectors, including energy, real estate, transportation, industrials and utilities. It often identifies opportunities in entities that are not taxed at the entity level, such as master limited partnerships ("MLPs") and real estate investment trusts ("REITs"). It also looks for opportunities in credit and related securities, such as preferred stocks. Current income is a primary objective in most, but not all, of the company's investing activities. The focus is generally on asset-intensive companies that generate and distribute substantial streams of free cash flow. For more information, please visit www.infracapfunds.com. DISCLOSURE Fund Risks Exchange Traded Funds: The value of an ETF may be more volatile than the underlying portfolio of securities the ETF is designed to track. The costs of owning the ETF may exceed the cost of investing directly in the underlying securities. MLP Interest Rates: As yield-based investments, MLPs carry interest rate risk and may underperform in rising interest rate environments. Additionally, when investors have heightened fears about the economy, the risk spread between MLPs and competing investment options can widen, which may have an adverse effect on the stock price of MLPs. Rising interest rates may increase the potential cost of MLPs financing projects or cost of operations, and may affect the demand for MLP investments, either of which may result in lower performance by or distributions from the Fund's MLP investments. Industry/Sector Concentration: A fund that focuses its investments in a particular industry or sector will be more sensitive to conditions that affect that industry or sector than a non-concentrated fund. Short Sales: The fund may engage in short sales, and may experience a loss if the price of a borrowed security increases before the date on which the fund replaces the security. Leverage: When a fund leverages its portfolio, the value of its shares may be more volatile and all other risks may be compounded. Derivatives: Investments in derivatives such as futures, options, forwards, and swaps may increase volatility or cause a loss greater than the principal investment. MLPs: Investments in Master Limited Partnerships may be adversely impacted by tax law changes, regulation, or factors affecting underlying assets. No Guarantee: There is no guarantee that the portfolio will meet its objective. You should consider the fund's investment objectives, risks, and charges and expenses carefully before investing. Contact ETF Distributors LLC at 1-888-383-4184 or visit www.infracapmlp.com to obtain a prospectus which contains this and other information about the fund. The prospectus should be read carefully before investing. Virtus ETF Advisers, LLC serves as the investment advisor and Infrastructure Capital Advisors, LLC serves as the sub-advisor to the Fund. The Fund is distributed by ETF Distributors LLC, an affiliate of Virtus ETF Advisers, LLC. View original content to download multimedia:http://www.prnewswire.com/news-releases/infracap-mlp-etf-nyse-arca-amza-declares-monthly-distribution-300903706.html SOURCE Virtus ETF Advisers
Pointer Telocation Reports Second Quarter 2019 Financial Results
ROSH HAAYIN, Israel, Aug. 15, 2019 /PRNewswire/ -- Pointer Telocation Ltd. (NASDAQ: PNTR) (TASE: PNTR), a leading provider of telematic services and technology solutions for Fleet Management, Mobile Asset Management and Internet of Vehicles, announced its financial results for second quarter and six months ended June 30, 2019.
Tapestry, Inc. Reports Fiscal 2019 Fourth Quarter and Full Year Results
NEW YORK--(BUSINESS WIRE)-- Tapestry, Inc. (NYSE: TPR), a leading New York-based house of modern luxury accessories and lifestyle brands, today reported results for the fiscal four
Lazydays Holdings, Inc. Reports Second Quarter 2019 Financial Results
TAMPA, Fla., Aug. 13, 2019 /PRNewswire/ -- Lazydays Holdings, Inc. (Lazydays" or the "Company") (NasdaqCM: LAZY) announced financial results for the second quarter ended June 30, 2019.
Briggs & Stratton Corporation Reports Fiscal 2019 Fourth Quarter And Full-Year Results
MILWAUKEE, Aug. 15, 2019 /PRNewswire/ -- Briggs & Stratton Corporation (NYSE: BGG) today announced financial results for its fiscal fourth quarter and year ended June 30, 2019. For the fiscal 2019 fourth quarter: Fiscal fourth quarter net sales were $472 million, a decrease of $30 million or 5.9% from $502 million for the prior year. Fiscal 2018's fourth quarter included approximately $20 million of accelerated sales in anticipation of the go-live of the Company's upgraded ERP system at the beginning of fiscal 2019. Adjusting for this, net sales this year decreased approximately 2%. Shipments for the fiscal 2019 fourth quarter fell short of expectations primarily due to difficult market conditions caused by an unusually wet spring in North America compounded by near-term market disruptions caused by channel partner transitions. Quarterly GAAP gross profit margin of 14.4% and adjusted gross profit margin of 15.0% decreased from gross profit margin of 21.7% and adjusted gross profit margin of 22.1% last year due to sales mix, lower production volumes and operational inefficiencies. Challenges in labor availability restricted the Company's ability to more quickly remediate start-up inefficiencies related to the business optimization initiatives. Fourth quarter GAAP net loss of $18.5 million, or $0.45 per share, included business optimization charges, acquisition integration charges and a pension settlement charge. Excluding these items, adjusted net loss was $14.9 million, or $0.36 per share, as compared to adjusted net income of $0.47 per diluted share for the fourth quarter of fiscal 2018. The fourth quarter of fiscal 2019 also included a non-cash tax related charge of $5.1 million, or $0.12 per share.For the fiscal 2019 full year: Fiscal 2019 net sales were $1.84 billion, down $44.7 million or 2.4% from $1.88 billion for fiscal 2018 primarily due to unusually dry weather conditions in Australia and Europe, lower storm generator sales and lower service parts sales, and near-term disruption caused by channel partner transitions, including the bankruptcy of a major North American retailer. Sales of commercial engines and products increased approximately 13% for the fiscal year. Full-year GAAP gross profit margin of 16.4% was down from 21.2% for fiscal 2018. Adjusted gross profit margin of 17.0% was down from 21.5% last year due to sales mix, lower production volumes and startup inefficiencies from the Company's business optimization initiatives. Full-year GAAP net loss of $54.1 million, or $1.31 per share, included business optimization charges, bad debt expense for a major retailer that filed for bankruptcy protection, a litigation settlement charge, a pension settlement charge, senior note repurchase premiums, a tax charge associated with tax reform and integration charges. Excluding these items, adjusted net loss was $12.9 million, or $0.32 per share."We are clearly disappointed with the fiscal 2019 results. The fourth quarter capped a difficult year of unprecedented market challenges and higher than expected operational inefficiencies encountered during the ramp-up of our business optimization initiatives," stated Todd J. Teske, Chairman, President and Chief Executive Officer. "The North America lawn and garden market slowed considerably as the quarter progressed from unusually wet, cool spring weather compounded by near-term market disruptions with channel partners. Europe set record high temperatures in June and July to impede channel inventory reductions. While we achieved operational improvements on many of the business optimization program start-up issues, continued inefficiencies offset the benefit of those improvements, including near-term labor availability challenges." Teske continued, "Regardless of the cause of the various headwinds, it is our responsibility to address the issues and restore the company to growth and profitability. As we enter fiscal 2020, we are intensely focused on five key areas to drive improvements in performance: First, we are working aggressively to complete the business optimization program and eliminate the operational inefficiencies to begin realizing the $35 million to $40 million in pre-tax cost savings from the program. Second, as we also announced today, we will be consolidating engine production within our plant in Poplar Bluff, Missouri, to streamline operations and adjust production capacity to meet current and anticipated future needs. This initiative will reduce pre-tax expenses by up to $14 million when fully implemented. Third, we will be devoting increased time and focus to more fully analyzing the dynamics of our market with outside help to position our business for more sustained growth and higher returns. Gaining an outside perspective will help our thinking, planning and actions to further adapt to the continually changing environment so that we are properly positioned as the market continues to change. Fourth, we intend to strengthen our balance sheet, with the near-term objectives of improving working capital and lowering debt. With the winding down of investments in our business optimization initiatives, projected lower capital expenditures and the action announced today to reduce the cash dividend, we will be directing more funds to reduce debt and invest in attractive commercial products and enabling technologies. Fifth, we are making solid progress on a debt refinancing which we expect to close before the end of our first fiscal quarter. We believe the refinancing will provide good flexibility as we strengthen the balance sheet and execute our strategy."Teske concluded, "There is no question that fiscal 2019 was enormously difficult from both a market perspective and our execution on operational excellence. Still, the several foundational changes we implemented advanced our commercial growth and diversification strategy and position us well for the long term. We remain confident in our strategy and view fiscal 2020 as an opportunity to get back on track." Fiscal 2020 Outlook: Net sales are expected to be within a range of $1.91 billion to $1.97 billion for fiscal 2020, which contemplates midpoint growth of approximately 5.5% over fiscal 2019's performance. This outlook compares with the Company's previous preliminary expectation of approximately $2.01 billion in sales for fiscal 2020. The revision to the outlook principally relates to the lower base sales for fiscal 2019, a reduction in the Company's estimate of the North American market due to near-term disruption caused by channel partner transitions and the prolonged impact of weather on Europe, which has experienced hot and dry conditions in the early months of summer. The estimated sales growth breaks down as follows: 2.5-3.5% of total sales growth is expected to be driven by commercial sales. 2-4% of total sales growth is expected to be driven by residential sales, which contemplates some market rebound for more normal weather conditions in North America and Europe as well as a reduction in inventory liquidation from channel partner transitions. The growth also contemplates more normal shipments of service parts due to improved throughput. The fiscal 2020 outlook does not include storm sales, which contributed approximately $25 million of net sales in fiscal 2019. Price increases are expected to help offset incremental tariff costs. Adjusted net income is expected within a range of $9 million to $17 million, or $0.20 to $0.40 per diluted share, prior to the impact of costs related to the Company's business optimization program and the engine manufacturing consolidation project. The revision from the prior, preliminary estimate of approximately $1.30 per share, relates to the lower sales outlook, in addition to the impact on margin from expected lower production to reduce inventories and expected continuation of some operational inefficiencies into the first half of the fiscal year. Operating margins before business optimization costs and engine manufacturing consolidation costs are expected to be approximately 2.5% to 3.0%. Compared to fiscal 2019, operating margins are expected to improve due to a favorable sales mix from growth of commercial products and a rebound of service parts sales, improved plant utilization on higher production levels, efficiency improvements and business optimization program savings. Higher tariffs are expected to be offset by pricing, efficiency improvements and product cost improvements. Operating margins are lower than historical norms, however, in part, due to anticipated operational inefficiencies in the first half of the fiscal year and throttled back plant utilization to reduce inventories. Interest expense is expected to be approximately $34 million, which contemplated elevated debt levels. Other income (loss) is expected to be a loss of approximately $2.5 million, which includes approximately $3 million of incremental pension expense. Equity in earnings of unconsolidated affiliates is expected to be $10 million. The tax rate before business optimization costs and engine manufacturing consolidation costs is expected to be approximately 25%. The Company expects capital expenditures to be approximately $55 million, which includes anticipated expenditures related to the engine manufacturing consolidation project in fiscal 2020. The Company expects to achieve positive cash flow from operations net of capital spending. Pre-tax charges associated with the business optimization program are expected to be approximately $5 million as this program concludes. Pre-tax charges associated with the engine manufacturing consolidation program are expected to be $30 million to $35 million, split evenly between cash and non-cash charges, of which $15 million to $20 million are expected to be recognized in fiscal 2020. Cost savings associated with the engine manufacturing consolidation program are expected to begin in fiscal 2021 and ramp to the full run rate of $12 million to $14 million in fiscal 2022.Conference Call Information: The Company will host a conference call today at 10:00 AM (ET) to review the fourth quarter financial results. A live webcast of the conference call will be available on the company's corporate website: http://investors.basco.com. Also available is a dial-in number to access the call real-time. Dial (877) 233-9136 and enter Conference ID 2156568. A replay will be offered beginning approximately two hours after the call ends and will be available for one week. Dial (855) 859-2056 and enter the Conference ID to access the replay. Non-GAAP Financial Measures: This release refers to non-GAAP financial measures including "adjusted gross profit", "adjusted engineering, selling, general, and administrative expenses", "adjusted segment income (loss)", "adjusted net income (loss)", and "adjusted diluted earnings (loss) per share." Refer to the accompanying financial schedules for supplemental financial data and corresponding reconciliations of these non-GAAP financial measures to certain GAAP financial measures. Safe Harbor Statement: This release contains certain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. The words "anticipate", "believe", "estimate", "expect", "forecast", "intend", "plan", "project", and similar expressions are intended to identify forward-looking statements. The forward-looking statements are based on the company's current views and assumptions and involve risks and uncertainties that include, among other things, the ability to successfully forecast demand for its products; changes in interest rates and foreign exchange rates; the effects of weather on the purchasing patterns of consumers and original equipment manufacturers (OEMs); actions of engine manufacturers and OEMs with whom the company competes; changes in laws and regulations, including U.S. tax reform, changes in tax rates, laws and regulations as well as related guidance; imposition of new, or changes in existing, duties, tariffs and trade agreements; changes in customer and OEM demand; changes in prices of raw materials and parts that the company purchases; changes in domestic and foreign economic conditions (including effects from the U.K.'s decision to exit the European Union); the ability to bring new productive capacity on line efficiently and with good quality; outcomes of legal proceedings and claims; the ability to realize anticipated savings from the business optimization program and restructuring actions; and other factors disclosed from time to time in the company's SEC filings or otherwise, including the factors discussed in Item 1A, Risk Factors, of the company's Annual Report on Form 10-K and in its periodic reports on Form 10-Q. The company undertakes no obligation to update forward-looking statements made in this release to reflect events or circumstances after the date of this release. About Briggs & Stratton Corporation: Briggs & Stratton Corporation (NYSE: BGG), headquartered in Milwaukee, Wisconsin, is focused on providing power to get work done and make people's lives better. Briggs & Stratton is the world's largest producer of gasoline engines for outdoor power equipment, and is a leading designer, manufacturer and marketer of power generation, pressure washer, lawn and garden, turf care and job site products through its Briggs & Stratton®, Simplicity®, Snapper®, Ferris®, Vanguard®, Allmand®, Billy Goat®, Murray®, Branco®, and Victa® brands. Briggs & Stratton products are designed, manufactured, marketed and serviced in over 100 countries on six continents. For additional information, please visit www.basco.com and www.briggsandstratton.com. BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES Consolidated Statements of Operations for the Periods Ended June (In Thousands, except per share data) Three Months Ended June Twelve Months Ended June FY2019 FY2018 FY2019 FY2018 NET SALES $471,951 $501,694 $1,836,605 $1,881,294 COST OF GOODS SOLD 404,132 393,017 1,535,554 1,483,212 Gross Profit 67,819 108,677 301,051 398,082 ENGINEERING, SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 81,724 129,926 349,276 375,230 EQUITY IN EARNINGS OF UNCONSOLIDATED AFFILIATES 3,243 2,819 9,029 9,257 Income (Loss) from Operations (10,662) (18,430) (39,196) 32,109 INTEREST EXPENSE (7,511) (6,153) (29,242) (25,320) OTHER INCOME (51) 1,016 340 4,312 Income (Loss) before Income Taxes (18,224) (23,567) (68,098) 11,101 PROVISION (CREDIT) FOR INCOME TAXES 316 (11,742) (14,015) 22,421 Net Income (Loss) $ (18,540) $ (11,825) $ (54,083) $ (11,320) EARNINGS (LOSS) PER SHARE Basic $ (0.45) $ (0.29) $ (1.31) $ (0.28) Diluted $ (0.45) $ (0.29) $ (1.31) $ (0.28) WEIGHTED AVERAGE SHARES OUTSTANDING Basic 41,516 41,947 41,647 42,068 Diluted 41,516 41,947 41,647 42,068 Supplemental International Sales Information (In Thousands) Three Months Ended June Twelve Months Ended June FY2019 FY2018 FY2019 FY2018 International sales based on product shipment destination $102,502 $102,069 $481,970 $534,607 BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets as of the End of June (In Thousands) CURRENT ASSETS: FY2019 FY2018 Cash and Cash Equivalents $ 29,569 $ 44,923 Accounts Receivable, Net 198,498 182,801 Inventories 502,006 411,831 Prepaid Expenses and Other Current Assets 32,899 39,651 Total Current Assets 762,972 679,206 OTHER ASSETS: Goodwill 169,682 163,200 Investments 49,641 50,960 Other Intangible Assets, Net 96,738 95,864 Deferred Income Tax Asset 43,172 12,149 Other Long-Term Assets, Net 18,676 20,507 Total Other Assets 377,909 342,680 PLANT AND EQUIPMENT: At Cost 1,220,339 1,175,165 Less - Accumulated Depreciation 809,294 753,085 Plant and Equipment, Net 411,045 422,080 $ 1,551,926 $ 1,443,966 CURRENT LIABILITIES: Accounts Payable $ 287,620 $ 204,173 Short-Term Debt 160,540 48,036 Accrued Liabilities 129,585 131,897 Total Current Liabilities 577,745 384,106 OTHER LIABILITIES: Accrued Pension Cost 221,033 189,872 Accrued Employee Benefits 21,311 20,196 Accrued Postretirement Health Care Obligation 25,929 30,186 Other Long-Term Liabilities 63,724 49,228 Long-Term Debt 195,464 199,954 Total Other Liabilities 527,461 489,436 SHAREHOLDERS' INVESTMENT: Common Stock 579 579 Additional Paid-In Capital 78,902 76,408 Retained Earnings 993,873 1,071,480 Accumulated Other Comprehensive Loss (292,550) (252,272) Treasury Stock, at Cost (334,084) (325,771) Total Shareholders' Investment 446,720 570,424 $ 1,551,926 $ 1,443,966 BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES Consolidated Statements of Cash Flows (In Thousands) Twelve Months Ended June CASH FLOWS FROM OPERATING ACTIVITIES: FY2019 FY2018 Net Loss $(54,083) $(11,320) Adjustments to Reconcile Net Loss to Net Cash Provided by (Used in) Operating Activities: Depreciation and Amortization 64,200 58,258 Stock Compensation Expense 7,180 6,675 Loss on Disposition of Plant and Equipment 551 1,915 Provision (Credit) for Deferred Income Taxes (17,949) 35,351 Equity in Earnings of Unconsolidated Affiliates (12,142) (12,230) Dividends Received from Unconsolidated Affiliates 11,359 10,911 Pension Settlement 521 41,157 Pension Cash Contributions - (30,000) Changes in Operating Assets and Liabilities: Accounts Receivable (15,910) 47,180 Inventories (91,171) (37,446) Other Current Assets (1,304) (4,759) Accounts Payable, Accrued Liabilities and Income Taxes 80,717 (10,345) Other, Net (7,304) (2,624) Net Cash Provided by (Used in) Operating Activities (35,335) 92,723 CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures (52,454) (103,203) Proceeds Received on Disposition of Plant and Equipment 69 339 Cash Paid for Acquisitions, Net of Cash Acquired (9,791) (1,800) Net Cash Used in Investing Activities (62,176) (104,664) CASH FLOWS FROM FINANCING ACTIVITIES: Net Borrowings on Revolver 112,504 48,036 Long Term Note Payable - 7,685 Debt Issuance Costs - (1,154) Treasury Stock Purchases (11,937) (10,312) Repayments of Long Term Debt (5,424) (22,261) Stock Option Exercise Proceeds and Tax Benefits 1,823 3,772 Payments Related to Shares Withheld for Taxes for Stock Compensation (257) (1,396) Cash Dividends Paid (17,781) (23,951) Net Cash Provided by Financing Activities 78,928 419 EFFECT OF EXCHANGE RATE CHANGES (293) (967) NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (18,876) (12,489) CASH, CASH EQUIVALENTS AND RESTRICTED CASH, Beginning 1 49,218 61,707 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, Ending 2 $ 30,342 $ 49,218 1 Included within Beginning Cash, Cash Equivalents, and Restricted Cash is approximately $4.3 million and $0 of restricted cash as of July 1, 2018 and July 2, 2017, respectively. 2 Included within Ending Cash, Cash Equivalents, and Restricted Cash is approximately $0.8 million and $4.3 million of restricted cash as of June 30, 2019 and July 1, 2018, respectively. SUPPLEMENTAL SEGMENT INFORMATION Engines Segment: Three Months Ended June Twelve Months Ended June (In Thousands) FY2019 FY2018 FY2019 FY2018 Net Sales $ 261,357 $ 275,775 $ 988,707 $ 1,066,318 Gross Profit as Reported $ 48,797 $ 69,217 $ 193,069 $ 252,645 Business Optimization 950 822 2,662 2,854 Adjusted Gross Profit $ 49,747 $ 70,039 $ 195,731 $ 255,499 Gross Profit % as Reported 18.7% 25.1% 19.5% 23.7% Adjusted Gross Profit % 19.0% 25.4% 19.8% 24.0% Segment Income (Loss) as Reported $ 1,060 $ (26,183) $ (15,519) $ 9,593 Business Optimization 2,130 46,671 29,149 53,913 Adjusted Segment Income $ 3,190 $ 20,488 $ 13,630 $ 63,506 Segment Income (Loss) % as Reported 0.4% (9.5%) (1.6%) 0.9% Adjusted Segment Income % 1.2% 7.4% 1.4% 6.0% Fourth Quarter Highlights Engine unit volumes decreased by 6%, or approximately 100,000 engines, in the fourth quarter of fiscal 2019 from the same period last year. Fiscal 2018's fourth quarter included approximately $15 million of sales that were accelerated prior to the go-live of the Company's upgraded ERP. Sales were lower than anticipated in the fourth quarter of fiscal 2019 primarily due to lower shipments of consumer engines in North America in a challenging market environment, which included unusually wet spring weather and near-term disruption caused by channel partner transitions including the bankruptcy of a large retailer. Service parts sales declined year over year, both in North America and Europe, despite progress in improving throughput compared to earlier in fiscal 2019. Partially offsetting the decrease was growth of commercial engines sales and higher pricing. GAAP and adjusted gross profit percentage decreased 640 basis points from last year. The decrease was driven by inefficiencies (260 bps), a 24% reduction in manufacturing volume (250 bps), material and tariff costs net of price increases (100 bps) and unfavorable sales mix. Inefficiencies from start-up activities related to the Company's ERP upgrade and the on-shoring of Vanguard engines which led to elevated supply chain and labor costs to ensure timely delivery of Vanguard engines and to improve the throughput of service parts. Improvements to these inefficiencies were hampered by labor availability challenges. GAAP ESG&A expenses declined $47.5 million and adjusted ESG&A expenses increased $2.7 million from last year. Products Segment: Three Months Ended June Twelve Months Ended June (In Thousands) FY2019 FY2018 FY2019 FY2018 Net Sales $ 233,258 $ 250,162 $ 932,137 $ 904,007 Gross Profit as Reported $ 19,582 $ 39,363 $ 108,984 $ 144,933 Business Optimization 2,227 1,281 9,207 3,775 Adjusted Gross Profit $ 21,809 $ 40,644 $ 118,191 $ 148,708 Gross Profit % as Reported 8.4% 15.7% 11.7% 16.0% Adjusted Gross Profit % 9.3% 16.2% 12.7% 16.4% Segment Income (Loss) as Reported $ (11,162) $ 7,656 $ (22,675) $ 22,012 Business Optimization 2,567 2,855 15,840 8,113 Litigation Settlement - - 2,000 - Retailer Bankruptcy Bad Debt Expense - - 4,132 - Acquisition Related Charges 153 - 676 - Adjusted Segment Income (Loss) $ (8,443) $ 10,511 $ (27) $ 30,125 Segment Income (Loss) % as Reported (4.8%) 3.1% (2.4%) 2.4% Adjusted Segment Income (Loss) % (3.6%) 4.2% (0.0%) 3.3% Fourth Quarter Highlights Net sales decreased by $16.9 million, or 6.8%, from the same period last year. Fiscal 2018's fourth quarter included approximately $5 million of sales that were accelerated prior to the go-live of the Company's upgraded ERP. The decrease was also due to lower pressure washer and generator sales due to channel partners controlling inventory levels. Fiscal 2019 fourth quarter sales fell short of the Company's expectations due to challenging market conditions, including the unusually wet spring weather in North America and lower than planned production due to labor availability challenges. GAAP gross profit percentage decreased 730 basis points and adjusted gross profit percentage decreased by 690 basis points from the fourth quarter of fiscal 2018. The decrease in the adjusted gross profit percentage was attributed to unfavorable sales mix (270 bps), manufacturing inefficiencies (220 basis points) and increased material and tariff costs net of price increases (200 bps). Sales mix was predominantly driven by shifts within the pressure washer, generator and lawn tractor categories towards more entry level models. Improvements to inefficiencies from start-up activities related to the business optimization program were hampered by labor availability challenges. GAAP ESG&A expenses decreased by $0.7 million and adjusted ESG&A expenses increased by $0.4 million from the previous year. Non-GAAP Financial Measures Briggs & Stratton Corporation prepares its financial statements using Generally Accepted Accounting Principles (GAAP). When a company discloses material information containing non-GAAP financial measures, SEC regulations require that the disclosure include a presentation of the most directly comparable GAAP measure and a reconciliation of the GAAP and non-GAAP financial measures. Management's inclusion of non-GAAP financial measures in this release is intended to supplement, not replace, the presentation of the financial results in accordance with GAAP. Briggs & Stratton Corporation management believes that these non-GAAP financial measures, when considered together with the GAAP financial measures, provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionately positive or negative impact on results in any particular period. Management also believes that these non-GAAP financial measures enhance the ability of investors to analyze the Company's business trends and to understand the Company's performance. In addition, management may utilize non-GAAP financial measures as a guide in the Company's forecasting, budgeting and long-term planning process. Non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial measures presented in accordance with GAAP. The following tables are reconciliations of the non-GAAP financial measures: BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES Adjusted Segment Information for the Three Month Periods Ended June (In Thousands, except per share data) Three Months Ended June FY2019Reported Adjustments1 FY2019Adjusted FY2018Reported Adjustments FY2018Adjusted Gross Profit Engines $ 48,797 $ 950 $ 49,747 $ 69,217 $ 822 $ 70,039 Products 19,582 2,227 21,809 39,363 1,281 40,644 Inter-Segment Eliminations (560) - (560) 97 - 97 Total $ 67,819 $ 3,177 $ 70,996 $108,677 $ 2,103 $110,780 Engineering, Selling, General and Administrative Expenses Engines $ 49,592 $ 683 $ 48,909 $ 97,132 $ 45,515 $ 51,617 Products 32,132 493 31,639 32,794 1,573 31,221 Total $ 81,724 $ 1,176 $ 80,548 $129,926 $ 47,088 $ 82,838 Equity in Earnings of Unconsolidated Affiliates Engines $ 1,855 $ 496 $ 2,351 $ 1,732 $ 334 $ 2,066 Products 1,388 - 1,388 1,087 - 1,087 Total $ 3,243 $ 496 $ 3,739 $ 2,819 $ 334 $ 3,153 Segment Income (Loss) Engines $ 1,060 $ 2,130 $ 3,190 $ (26,183) $ 46,671 $ 20,488 Products (11,162) 2,720 (8,443) 7,656 2,855 10,511 Inter-Segment Eliminations (560) - (560) 97 - 97 Total $(10,662) $ 4,849 $ (5,813) $ (18,430) $ 49,526 $ 31,096 Interest Expense $ (7,511) $ - $ (7,511) $ (6,153) $ 211 $ (5,942) Other Income $ (51) $ 521 $ 470 $ 1,016 $ - $ 1,016 Income before Income Taxes (18,224) 5,370 (12,854) (23,567) 49,737 26,170 Provision for Income Taxes 316 1,759 2,075 (11,742) 17,779 6,037 Net Income $(18,540) $ 3,611 $(14,929) $ (11,825) $ 31,957 $ 20,132 Earnings Per Share Basic $ (0.45) $ 0.09 $ (0.36) $ (0.29) $ 0.76 $ 0.47 Diluted (0.45) 0.09 (0.36) (0.29) 0.76 0.47 1 For the fourth quarter of fiscal 2019, business optimization expenses included $0.2 million ($0.2 million after tax) of non-cash charges related to accelerated depreciation, and $4.5 million ($2.9 million after tax) of cash charges related primarily to activities associated with the upgrade to the Company's ERP system, professional services, employee termination benefits, and plant rearrangement activities. The Company recognized $0.2 million ($0.1 million after tax) related to acquisition integration activities. Other income includes a $0.5 million ($0.3 million after tax) pension settlement charge. Tax expense includes a $0.1 million charge associated with the Tax Cuts and Jobs Act of 2017 to record the impact of the inclusion of foreign earnings. BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES Adjusted Segment Information for the Twelve Month Periods Ended June (In Thousands, except per share data) Twelve Months Ended June FY2019Reported Adjustments1 FY2019Adjusted FY2018Reported Adjustments FY2018Adjusted Gross Profit Engines $193,069 $ 2,662 $195,731 $252,645 $ 2,854 $255,499 Products 108,984 9,207 118,191 144,933 3,775 148,708 Inter-Segment Eliminations (1,002) - (1,002) 504 - 504 Total $301,051 $ 11,869 $312,920 $398,082 $ 6,629 $404,710 Engineering, Selling, General and Administrative Expenses Engines $213,589 $ 23,374 $190,215 $248,286 $ 48,096 $200,190 Products 135,687 13,441 122,246 126,944 4,339 122,605 Total $349,276 $ 36,815 $312,461 $375,230 $ 52,435 $322,796 Equity in Earnings of Unconsolidated Affiliates Engines $ 5,001 $ 3,113 $ 8,114 $ 5,234 $ 2,964 $ 8,198 Products 4,028 - 4,028 4,023 - 4,023 Total $ 9,029 $ 3,113 $ 12,142 $ 9,257 $ 2,964 $ 12,221 Segment Income (Loss) Engines $ (15,519) $ 29,149 $ 13,630 $ 9,593 $ 53,913 $ 63,506 Products (22,675) 22,648 (27) 22,012 8,113 30,125 Inter-Segment Eliminations (1,002) - (1,002) 504 - 504 Total $ (39,196) $ 51,797 $ 12,601 $ 32,109 $ 62,026 $ 94,135 Interest Expense $ (29,242) $ 263 $ (28,979) $ (25,320) $ 2,228 $ (23,092) Other Income $ 340 $ 521 $ 861 $ 4,312 $ - $ 4,312 Income before Income Taxes (68,098) 52,581 (15,517) 11,101 64,254 75,355 Provision for Income Taxes (14,015) 11,362 (2,653) 22,421 (2,836) 19,585 Net Income (Loss) $ (54,083) $ 41,220 $ (12,863) $ (11,320) $ 67,090 $ 55,770 Earnings (Loss) Per Share Basic $ (1.31) $ 0.99 $ (0.32) $ (0.28) $ 1.57 $ 1.29 Diluted (1.31) 0.99 (0.32) (0.28) 1.57 1.29 1 For the first twelve months of fiscal 2019, business optimization expenses include $3.2 million ($2.5 million after tax) of non-cash charges related to accelerated depreciation, and $41.9 million ($32.1 million after tax) of cash charges related primarily to activities associated with the upgrade to the Company's ERP system, professional services, employee termination benefits, and plant rearrangement activities. The Company recognized bad debt expense of $4.1 million ($3.1 million after tax) after a major retailer announced that it had filed for bankruptcy protection. The Company recognized $2.0 million ($1.5 million after tax) for amounts accrued related to a litigation settlement and $0.6 million ($0.4 million after tax) related to acquisition integration activities. Interest expense includes $0.2 million ($0.2 million after tax) for premiums paid to repurchase senior notes. Other income includes a $0.5 million ($0.3 million after tax) pension settlement charge. Tax expense includes a $1.0 million charge associated with the Tax Cuts and Jobs Act of 2017 to record the impact of the inclusion of foreign earnings. View original content to download multimedia:http://www.prnewswire.com/news-releases/briggs--stratton-corporation-reports-fiscal-2019-fourth-quarter-and-full-year-results-300902054.html SOURCE Briggs & Stratton Corporation
Accenture Federal Services Wins U.S. Navy Bureau of Medicine and Surgery Contract to Help Transform Healthcare Delivery for Sailors, Marines and their Families
|Global News & Financial Markets|