Briggs & Stratton Corporation Announces Resignation of William F. Achtmeyer from the Company's Board of Directors, Effective August 29, 2014
Aug 21 14
On August 15, 2014, William F. Achtmeyer informed Briggs & Stratton Corporation that he would be resigning from the Company's Board of Directors effective August 29, 2014. Mr. Achtmeyer is Chairman, Managing Partner and Chief Executive Officer of The Parthenon Group LLC. The Parthenon Group has announced that it has signed an agreement to combine its operations worldwide with Ernst & Young. The combination of The Parthenon Group and EY is subject to the satisfaction of agreed conditions, including that Mr. Achtmeyer complies with existing EY partnership rules stipulating that partners may not serve on the board of directors of for profit companies. As such, Mr. Achtmeyer has decided to resign from the Board of Briggs & Stratton Corporation. Mr. Achtmeyer's decision to resign did not relate to any disagreement on matters relating to the Company's operations, policies or practices. In connection with Mr. Achtmeyer's resignation, the size of the Board is being reduced to eight directors, effective August 29, 2014.
Briggs & Stratton Corporation Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended June 29, 2014; Provides Earnings Guidance for Fiscal 2015; Reports Goodwill and Tradename Impairment for the Fourth Quarter Ended June 29, 2014
Aug 14 14
Briggs & Stratton Corporation reported unaudited consolidated earnings results for the fourth quarter and full year ended June 29, 2014. Consolidated net sales for the fourth quarter of fiscal 2014 were $496.8 million, an increase of $19.6 million or 4.1% from $477.2 million for the fourth quarter of fiscal 2013, due to higher sales of large engines used on riding lawnmowers, pressure washers, and service parts used on lawn and garden equipment. The increase in sales was partially offset by lower sales of smaller engines used in walk lawnmowers and decreased sales of generators. Income from operations was $10.6 million against loss from operations of $79.1 million last year. Income before income taxes was $9.2 million against loss before income taxes of $81.6 million last year. The fiscal 2014 fourth quarter consolidated net income, which includes restructuring actions and goodwill and trade name impairment charges, was $7.8 million or $0.17 per basic and diluted share. The fourth quarter of fiscal 2013 consolidated net loss, which included restructuring charges, goodwill and trade name impairment charges, and a litigation settlement, was $55.0 million or $1.17 per basic and diluted share. Adjusted net sales were $496.8 million against $477.2 million last year. Adjusted income from operations was $20.5 million against $16.6 million last year. Adjusted income before income taxes was $19.1 million against $14.2 million last year. Adjusted net income was $14.6 million or $0.31 per basic and diluted share against $10.7 million or $0.22 per basic and diluted share last year.
Consolidated net sales for fiscal 2014 were $1.9 billion against $1.9 billion last year, due to lower sales of generators and the engines that power them. The impact of fewer weather related events creating demand for generators and the related engines was an estimated sales decrease of $100 million for fiscal 2014. This decrease was offset by higher sales of engines used on U.S. lawn and garden equipment, increased sales of pressure washers and sales from Branco, which was acquired mid-year in fiscal 2013. Income from operations was $46.3 million against loss from operations of $40.6 million last year. Income before income taxes was $37.1 million against loss before income taxes of $52.1 million last year. Fiscal 2014 consolidated net income, which included restructuring actions and goodwill and trade name impairment charges, was $28.3 million or $0.59 per basic and diluted share. Fiscal 2013 consolidated net loss, which includes restructuring charges, goodwill and trade name impairment charges, and a litigation settlement, was $33.7 million or $0.73 per basic and diluted share. The estimated impact of the reduced storms on generator and related engine sales in fiscal 2014 was $0.20 per diluted share compared with fiscal 2013 which had storms including Hurricanes Isaac and Sandy. Net cash provided by operating activities was $127.1 million against $160.8 million last year. Additions to plant and equipment were $60.4 million against $44.9 million last year. Adjusted net sales were $1.9 billion against $1.9 billion last year. Adjusted income from operations was $61.3 million against $73.6 million last year. Adjusted income before income taxes was $52.1 million against $62.0 million last year. Adjusted net income was $39.0 million or $0.82 per basic and diluted share against $45.1 million or $0.93 per basic and diluted share last year. Net debt at June 29, 2014 was $30.3 million or $6.6 million lower than the $36.9 million at June 30, 2013. The decrease in operating cash flows was primarily related to changes in working capital as higher fourth quarter sales in fiscal 2014 led to a larger accounts receivable balance year over year. The change was partially offset by no contributions to the pension plan in fiscal 2014 compared to $29.4 million of contributions in fiscal 2013.
For the quarter, goodwill and trade name impairment was $8.5 million against $90.1 million last year.
For fiscal 2015, the company projects net income to be in a range of $50 million to $60 million or $1.07 per diluted share to $1.27 per diluted share prior to the impact of acquisitions, additional share repurchases, or costs related to announced restructuring actions. Fiscal 2015 consolidated net sales are projected to be in a range of $1.88 billion to $1.94 billion. The company estimates that the retail market for lawn and garden products will increase 1% - 4% in the U.S. next season. Sales estimates do not include the impact of landed hurricanes. Operating income margins for fiscal 2015 are expected to improve over fiscal 2014 and be in a range of 4.5% to 5.0% and reflect the positive impacts of the restructuring actions, particularly in the last quarter of the fiscal year. Interest expense and other income are estimated to be approximately $19 million and $7 million, respectively. Effective tax rate is projected to be in a range of 30% to 33% and capital expenditures are projected to be approximately $60 million to $65 million. Cash flows are anticipated modestly higher than the operating cash flow in fiscal 2014. Improved earnings and additional cash generated from net working capital reductions of $20 million to $30 million primarily related to inventory reductions will contribute to cash flows from operations.
Briggs & Stratton Corporation Declares Increase in Quarterly Dividend Payable on October 1, 2014
Aug 13 14
The Board of Directors of Briggs & Stratton Corporation declared a quarterly cash dividend of twelve and one half cents ($0.125) per common share. This represents an increase of approximately 4% from the prior quarterly dividend of $0.12 per share. The dividend is payable October 1, 2014 to shareholders of record at the close of business September 17, 2014.