JLTV Program Ramping Up After Protest Ended
Increases Fiscal 2016 EPS Estimate Range to $2.30 to $2.70
Declares Quarterly Cash Dividend of $0.19 Per Share
OSHKOSH, Wis.--(BUSINESS WIRE)--
Oshkosh Corporation (NYSE: OSK) today reported fiscal 2016 second
quarter net income of $56.1 million, or $0.76 per diluted share,
compared to $54.6 million, or $0.69 per diluted share, in the second
quarter of fiscal 2015. Results for the second quarter of fiscal 2015
included after-tax costs of $9.3 million incurred in connection with the
refinancing of the Company’s senior notes due 2020. Excluding this item,
fiscal 2015 second quarter adjusted1 net income was
$63.9 million, or $0.81 per diluted share.
Consolidated net sales in the second quarter of fiscal 2016 were
$1.52 billion, a decrease of 1.9 percent compared to the prior year
second quarter. Higher sales in the defense, fire & emergency and
commercial segments almost completely offset a decline in sales in the
access equipment segment.
Consolidated operating income in the second quarter of fiscal 2016 was
$91.4 million, or 6.0 percent of sales, compared to $109.7 million, or
7.1 percent of sales, in the prior year second quarter. The decline in
operating income was driven by lower access equipment segment sales and
higher corporate expenses, offset in part by improved performance in the
defense segment. The Company also experienced improved margins and
operating income in the fire & emergency and commercial segments as both
segments continued to execute on strategies to deliver improved
operational efficiencies.
“I’m proud of the focus that our team members exhibited executing our
MOVE strategy as we delivered earnings per share of $0.76 during the
second fiscal quarter, significantly exceeding our expectations,” stated
Wilson R. Jones, Oshkosh Corporation president and chief executive
officer. “Better than expected results in the access equipment and
defense segments, along with discrete tax benefits of $0.06 per share,
drove the higher than previously anticipated earnings.
“Our North American access equipment rental customers, as expected,
adopted a more cautious approach to rental fleet capital expenditures
during the quarter. However, we believe rental company market conditions
continue to support a reasonable level of fleet investment. We believe a
generally more positive view on the U.S. economy, a solid construction
outlook and a relatively mild winter in the U.S. led some rental
companies to make access equipment purchase decisions earlier in the
year than they may have previously planned, leading to higher than
expected sales in the access equipment segment in the second quarter.
“The defense segment achieved sales in the quarter above our prior
expectations and delivered strong operational performance,” added Jones.
“We’re also pleased that our defense team can now move forward on the
JLTV program without the constraints of the competitor protest that was
filed after the award of the production contract to Oshkosh. Our defense
team is energized to begin delivering these game-changing vehicles to
our customer this fall. The team also secured a contract that they have
been pursuing from an international customer for more than 1,000 M-ATVs.
The team is working with the customer to finalize the funding and
vehicle delivery schedule for this important contract and as a result,
our outlook for fiscal 2016 and the defense segment backlog exclude any
sales of vehicles under this contract.
“We are modestly raising our earnings per share expectations for fiscal
2016 from a range of $2.20 to $2.60 to a range of $2.30 to $2.70,
largely as the result of a lower estimated tax rate, along with
increased expectations for results in the defense segment.”
Factors affecting second quarter results for the Company’s business
segments included:
Access Equipment – Access equipment segment sales declined
23.2 percent to $754.3 million for the second quarter of fiscal 2016.
The decline in sales was primarily due to the slowdown in North American
replacement demand that began last summer and lower shipments of
telehandlers in North America. In the second quarter of fiscal 2015, the
access equipment segment experienced a large increase in telehandler
sales related to the transition to Tier 4 engines.
Access equipment segment operating income decreased 44.7 percent to
$75.7 million, or 10.0 percent of sales, for the second quarter of
fiscal 2016 compared to $136.9 million, or 13.9 percent of sales, in the
second quarter of fiscal 2015. The decrease in operating income was
primarily the result of the lower sales volume and a challenging pricing
environment, the impact of a prior year benefit associated with a
favorable vendor recovery settlement and adverse manufacturing
absorption as the business significantly reduced production rates,
offset in part by lower spending on engine emissions standards changes.
Defense – Defense segment sales for the second quarter of fiscal
2016 increased 87.1 percent to $297.0 million. The increase in sales was
primarily due to increased sales of Family of Heavy Tactical Vehicles
(“FHTVs”) and international Mine Resistant Ambush Protected All-Terrain
Vehicles (“M-ATVs”). The Company experienced a break in production under
the FHTV program in the second quarter of fiscal 2015.
The defense segment recorded operating income of $27.8 million, or
9.4 percent of sales, for the second quarter of fiscal 2016 compared to
an operating loss of $12.0 million, or 7.5 percent of sales, in the
second quarter of fiscal 2015. The increase in operating results was
largely due to higher sales volume and favorable product mix.
Fire & Emergency – Fire & emergency segment sales for the
second quarter of fiscal 2016 increased 18.5 percent to $240.4 million.
Sales in the second quarter of fiscal 2016 benefited from higher
domestic fire apparatus deliveries as a result of increased production
rates to meet higher demand and the delivery of a multi-unit
international order. Improved operational efficiencies have allowed the
fire & emergency segment to increase and maintain higher production
rates.
Fire & emergency segment operating income increased 66.0 percent to
$14.9 million, or 6.2 percent of sales, for the second quarter of fiscal
2016 compared to $9.0 million, or 4.4 percent of sales, in the second
quarter of fiscal 2015. Higher sales volume was the largest contributor
to the increase in operating income.
Commercial – Commercial segment sales increased 7.1 percent to
$236.7 million in the second quarter of fiscal 2016. The increase in
sales was primarily attributable to higher refuse collection vehicle
volume driven by fleet replenishment by private waste haulers and share
gains.
Commercial segment operating income increased 99.0 percent to
$17.2 million, or 7.3 percent of sales, for the second quarter of fiscal
2016 compared to $8.6 million, or 3.9 percent of sales, in the second
quarter of fiscal 2015. The increase in operating income was primarily a
result of improved product mix and higher sales volume.
Corporate – Corporate operating expenses increased $11.4 million
in the second quarter of fiscal 2016 to $44.2 million. The increase in
corporate operating expenses in the second quarter of fiscal 2016 was
primarily due to increased start-up costs of a shared manufacturing
facility and higher health care costs compared to the second quarter of
fiscal 2015.
Interest Expense Net of Interest Income – Interest expense net of
interest income decreased $13.1 million to $15.1 million in the second
quarter of fiscal 2016. Results for the second quarter of fiscal 2015
included a $14.7 million charge related to debt extinguishment costs in
connection with the refinancing of the Company’s senior notes. Excluding
debt extinguishment costs, adjusted1 interest expense net of
interest income increased $1.6 million in the second quarter of fiscal
2016. The benefit of lower interest rates on the Company’s refinanced
senior notes was more than offset by increased borrowings to support
increased working capital levels.
Provision for Income Taxes – The Company recorded income tax
expense of $20.3 million in the second quarter of fiscal 2016, or
27.0 percent of pre-tax income, compared to $29.5 million, or
35.7 percent of pre-tax income, in the second quarter of fiscal 2015.
The Company recorded $4.4 million, or $0.06 per share, of discrete tax
benefits in the second quarter of fiscal 2016.
Share Repurchases – Share repurchases completed during the
previous twelve months had the effect of increasing earnings per share
in the second quarter of fiscal 2016 by $0.05 compared to the prior year
second quarter. The Company did not repurchase any shares in the second
quarter of fiscal 2016.
Six-month Results
The Company reported net sales for the first six months of fiscal 2016
of $2.78 billion and net income of $70.7 million, or $0.95 per share.
This compares with net sales of $2.91 billion and net income of
$89.3 million, or $1.12 per share, in the first six months of the prior
year. Consolidated net sales in the first six months of fiscal 2016
declined 4.5 percent on significantly lower access equipment segment
sales. Earnings for the first six months of fiscal 2016 were
$70.7 million, or $0.95 per share, as compared to adjusted1
earnings of $96.5 million, or $1.21 per share, in the first six months
of fiscal 2015. Improved operating income results in each of the
Company’s non-access equipment segments were not sufficient to offset
the impact of lower sales in the Company’s access equipment segment and
higher corporate expenses, including increased start-up costs of a
shared manufacturing facility. Earnings per share in the first six
months of fiscal 2016 improved $0.06 compared to the prior year period
as a result of lower average diluted shares outstanding. Earnings per
share for the first six months of fiscal 2016 were negatively impacted
by $0.02 as a result of the strengthening U.S. dollar.
Fiscal 2016 Expectations
The Company increased its fiscal 2016 earnings per share estimate range
to $2.30 to $2.70 on projected net sales of $5.7 billion to
$6.0 billion. The increased estimate range largely reflects a lower
estimated tax rate as a result of the discrete tax benefits recorded in
the second fiscal quarter and increased expectations for defense segment
results, partially offset by expected higher corporate costs.
Dividend Announcement
The Company’s Board of Directors today declared a quarterly cash
dividend of $0.19 per share of Common Stock. The dividend will be
payable on May 31, 2016, to shareholders of record as of May 16, 2016.
Conference Call
The Company will comment on its fiscal 2016 second quarter earnings and
its full-year fiscal 2016 outlook during a conference call at 9:00 a.m.
EDT this morning. Slides for the call will be available on the Company’s
website beginning at 7:00 a.m. EDT this morning. The call will be
webcast simultaneously over the Internet. To access the webcast,
listeners can go to www.oshkoshcorporation.com
at least 15 minutes prior to the event and follow instructions for
listening to the webcast. An audio replay of the call and related
question and answer session will be available for 12 months at this
website.
Forward-Looking Statements
This press release contains statements that the Company believes to be
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. All statements other than
statements of historical fact, including, without limitation, statements
regarding the Company’s future financial position, business strategy,
targets, projected sales, costs, earnings, capital expenditures, debt
levels and cash flows, and plans and objectives of management for future
operations, are forward-looking statements. When used in this press
release, words such as “may,” “will,” “expect,” “intend,” “estimate,”
“anticipate,” “believe,” “should,” “project” or “plan” or the negative
thereof or variations thereon or similar terminology are generally
intended to identify forward-looking statements. These forward-looking
statements are not guarantees of future performance and are subject to
risks, uncertainties, assumptions and other factors, some of which are
beyond the Company’s control, which could cause actual results to differ
materially from those expressed or implied by such forward-looking
statements. These factors include the cyclical nature of the Company’s
access equipment, commercial and fire & emergency markets, which are
particularly impacted by the strength of U.S. and European economies and
construction seasons; the Company’s estimates of access equipment demand
which, among other factors, is influenced by customer historical buying
patterns and rental company fleet replacement strategies; the strength
of the U.S. dollar and its impact on Company exports, translation of
foreign sales and purchased materials; the expected level and timing of
U.S. Department of Defense (“DoD”) and international defense customer
procurement of products and services and funding or payments thereof;
the Company’s ability to utilize material and components which it has
committed to purchase from suppliers; higher material costs resulting
from production variability due to uncertainty of timing of funding or
payments from international defense customers; risks related to
reductions in government expenditures in light of U.S. defense budget
pressures, sequestration and an uncertain DoD tactical wheeled vehicle
strategy; the impact of any DoD solicitation for competition for future
contracts to produce military vehicles, including a future Family of
Medium Tactical Vehicle production contract; the Company’s ability to
increase prices to raise margins or offset higher input costs;
increasing commodity and other raw material costs, particularly in a
sustained economic recovery; risks related to facilities expansion,
consolidation and alignment, including the amounts of related costs and
charges and that anticipated cost savings may not be achieved; global
economic uncertainty, which could lead to additional impairment charges
related to many of the Company’s intangible assets and/or a slower
recovery in the Company’s cyclical businesses than Company or equity
market expectations; projected adoption rates of work at height
machinery in emerging markets; the impact of severe weather or natural
disasters that may affect the Company, its suppliers or its customers;
risks related to the collectability of receivables, particularly for
those businesses with exposure to construction markets; the cost of any
warranty campaigns related to the Company’s products; risks related to
production or shipment delays arising from quality or production issues;
risks associated with international operations and sales, including
compliance with the Foreign Corrupt Practices Act; the Company’s ability
to comply with complex laws and regulations applicable to U.S.
government contractors; cybersecurity risks and costs of defending
against, mitigating and responding to a data security breach; and risks
related to the Company’s ability to successfully execute on its
strategic road map and meet its long-term financial goals. Additional
information concerning these and other factors is contained in the
Company’s filings with the Securities and Exchange Commission, including
the Form 8-K filed today. All forward-looking statements speak only as
of the date of this press release. The Company assumes no obligation,
and disclaims any obligation, to update information contained in this
press release. Investors should be aware that the Company may not update
such information until the Company’s next quarterly earnings conference
call, if at all.
About Oshkosh Corporation
Oshkosh Corporation is a leading designer, manufacturer and marketer of
a broad range of access equipment, commercial, fire & emergency,
military and specialty vehicles and vehicle bodies. Oshkosh Corporation
manufactures, distributes and services products under the brands of
Oshkosh®, JLG®, Pierce®, McNeilus®,
Jerr-Dan®, Frontline™, CON-E-CO®, London®
and IMT®. Oshkosh products are valued worldwide by rental
companies, concrete placement and refuse collection businesses, fire &
emergency departments, municipal and airport services and defense
forces, where high quality, superior performance, rugged reliability and
long-term value are paramount. For more information, log on to www.oshkoshcorporation.com.
®, TM All brand names referred to in this news release are
trademarks of Oshkosh Corporation or its subsidiary companies.
|
|
OSHKOSH CORPORATION
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
(Unaudited; in millions, except share and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
|
|
March 31,
|
|
March 31,
|
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
$
|
1,524.3
|
|
|
$
|
1,554.2
|
|
|
$
|
2,776.3
|
|
|
$
|
2,907.5
|
|
Cost of sales
|
|
|
|
|
|
1,265.0
|
|
|
|
1,278.4
|
|
|
|
2,334.2
|
|
|
|
2,402.0
|
|
Gross income
|
|
|
|
|
|
259.3
|
|
|
|
275.8
|
|
|
|
442.1
|
|
|
|
505.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
|
|
|
154.7
|
|
|
|
152.8
|
|
|
|
294.0
|
|
|
|
303.3
|
|
Amortization of purchased intangibles
|
|
|
|
|
|
13.2
|
|
|
|
13.3
|
|
|
|
26.4
|
|
|
|
26.8
|
|
Total operating expenses
|
|
|
|
|
|
167.9
|
|
|
|
166.1
|
|
|
|
320.4
|
|
|
|
330.1
|
|
Operating income
|
|
|
|
|
|
91.4
|
|
|
|
109.7
|
|
|
|
121.7
|
|
|
|
175.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
|
|
(15.6
|
)
|
|
|
(28.8
|
)
|
|
|
(30.2
|
)
|
|
|
(43.2
|
)
|
Interest income
|
|
|
|
|
|
0.5
|
|
|
|
0.6
|
|
|
|
1.0
|
|
|
|
1.4
|
|
Miscellaneous, net
|
|
|
|
|
|
(1.0
|
)
|
|
|
1.3
|
|
|
|
(1.0
|
)
|
|
|
-
|
|
Income before income taxes and equity
|
|
|
|
|
|
|
|
|
|
|
|
in earnings of unconsolidated affiliates
|
|
|
|
|
|
75.3
|
|
|
|
82.8
|
|
|
|
91.5
|
|
|
|
133.6
|
|
Provision for income taxes
|
|
|
|
|
|
20.3
|
|
|
|
29.5
|
|
|
|
22.0
|
|
|
|
45.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before equity in earnings of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
unconsolidated affiliates
|
|
|
|
|
|
55.0
|
|
|
|
53.3
|
|
|
|
69.5
|
|
|
|
87.9
|
|
Equity in earnings of unconsolidated affiliates
|
|
|
|
|
|
1.1
|
|
|
|
1.3
|
|
|
|
1.2
|
|
|
|
1.4
|
|
Net income
|
|
|
|
|
$
|
56.1
|
|
|
$
|
54.6
|
|
|
$
|
70.7
|
|
|
$
|
89.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts available to common shareholders, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
$
|
56.1
|
|
|
$
|
54.6
|
|
|
$
|
70.7
|
|
|
$
|
89.3
|
|
Allocated to participating securities
|
|
|
|
|
|
-
|
|
|
|
(0.1
|
)
|
|
|
-
|
|
|
|
(0.2
|
)
|
Net income available to common shareholders
|
|
|
|
|
$
|
56.1
|
|
|
$
|
54.5
|
|
|
$
|
70.7
|
|
|
$
|
89.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to common shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
$
|
0.77
|
|
|
$
|
0.70
|
|
|
$
|
0.96
|
|
|
$
|
1.14
|
|
Diluted
|
|
|
|
|
|
0.76
|
|
|
|
0.69
|
|
|
|
0.95
|
|
|
|
1.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted-average shares outstanding
|
|
|
|
|
|
73,118,295
|
|
|
|
78,007,479
|
|
|
|
73,593,439
|
|
|
|
78,433,035
|
|
Dilutive stock options and other equity-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
based compensation awards
|
|
|
|
|
|
743,045
|
|
|
|
1,102,424
|
|
|
|
766,421
|
|
|
|
1,103,796
|
|
Participating restricted stock
|
|
|
|
|
|
-
|
|
|
|
(115,163
|
)
|
|
|
-
|
|
|
|
(112,237
|
)
|
Diluted weighted-average shares outstanding
|
|
|
|
|
|
73,861,340
|
|
|
|
78,994,740
|
|
|
|
74,359,860
|
|
|
|
79,424,594
|
|
|
|
OSHKOSH CORPORATION
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(Unaudited; in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
September 30,
|
|
|
|
|
|
2016
|
|
2015
|
ASSETS
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
$
|
38.4
|
|
|
$
|
42.9
|
|
Receivables, net
|
|
|
|
|
|
1,046.0
|
|
|
|
964.6
|
|
Inventories, net
|
|
|
|
|
|
1,373.4
|
|
|
|
1,301.7
|
|
Deferred income taxes, net
|
|
|
|
|
|
54.5
|
|
|
|
52.2
|
|
Other current assets
|
|
|
|
|
|
77.9
|
|
|
|
67.9
|
|
Total current assets
|
|
|
|
|
|
2,590.2
|
|
|
|
2,429.3
|
|
Investment in unconsolidated affiliates
|
|
|
|
|
|
16.8
|
|
|
|
16.2
|
|
Property, plant and equipment:
|
|
|
|
|
|
|
|
Property, plant and equipment
|
|
|
|
|
|
1,121.8
|
|
|
|
1,093.7
|
|
Accumulated depreciation
|
|
|
|
|
|
(643.5
|
)
|
|
|
(617.9
|
)
|
Property, plant and equipment, net
|
|
|
|
|
|
478.3
|
|
|
|
475.8
|
|
Goodwill
|
|
|
|
|
|
1,006.0
|
|
|
|
1,001.1
|
|
Purchased intangible assets, net
|
|
|
|
|
|
580.2
|
|
|
|
606.7
|
|
Other long-term assets
|
|
|
|
|
|
79.7
|
|
|
|
83.9
|
|
Total assets
|
|
|
|
|
$
|
4,751.2
|
|
|
$
|
4,613.0
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Revolving credit facilities and current maturities
|
|
|
|
|
|
|
|
of long-term debt
|
|
|
|
|
$
|
155.7
|
|
|
$
|
83.5
|
|
Accounts payable
|
|
|
|
|
|
597.7
|
|
|
|
552.8
|
|
Customer advances
|
|
|
|
|
|
525.9
|
|
|
|
440.2
|
|
Payroll-related obligations
|
|
|
|
|
|
123.6
|
|
|
|
116.6
|
|
Other current liabilities
|
|
|
|
|
|
241.6
|
|
|
|
265.0
|
|
Total current liabilities
|
|
|
|
|
|
1,644.5
|
|
|
|
1,458.1
|
|
Long-term debt, less current maturities
|
|
|
|
|
|
845.0
|
|
|
|
855.0
|
|
Deferred income taxes, net
|
|
|
|
|
|
88.6
|
|
|
|
91.7
|
|
Other long-term liabilities
|
|
|
|
|
|
298.7
|
|
|
|
297.1
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
|
1,874.4
|
|
|
|
1,911.1
|
|
Total liabilities and shareholders' equity
|
|
|
|
|
$
|
4,751.2
|
|
|
$
|
4,613.0
|
|
|
|
OSHKOSH CORPORATION
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited; in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
2016
|
|
2015
|
Operating activities:
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
$
|
70.7
|
|
|
$
|
89.3
|
|
Depreciation and amortization
|
|
|
|
|
|
63.7
|
|
|
|
64.0
|
|
Stock-based compensation expense
|
|
|
|
|
|
11.4
|
|
|
|
11.4
|
|
Deferred income taxes
|
|
|
|
|
|
(7.0
|
)
|
|
|
(4.7
|
)
|
Foreign currency transaction losses
|
|
|
|
|
|
0.3
|
|
|
|
10.7
|
|
Gain on sale of assets
|
|
|
|
|
|
(6.3
|
)
|
|
|
(5.0
|
)
|
Other non-cash adjustments
|
|
|
|
|
|
(0.2
|
)
|
|
|
12.8
|
|
Changes in operating assets and liabilities
|
|
|
|
|
|
(38.1
|
)
|
|
|
(249.2
|
)
|
Net cash provided (used) by operating activities
|
|
|
|
|
|
94.5
|
|
|
|
(70.7
|
)
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
|
|
Additions to property, plant and equipment
|
|
|
|
|
|
(40.3
|
)
|
|
|
(69.8
|
)
|
Additions to equipment held for rental
|
|
|
|
|
|
(22.7
|
)
|
|
|
(15.5
|
)
|
Proceeds from sale of equipment held for rental
|
|
|
|
|
|
26.1
|
|
|
|
13.4
|
|
Other investing activities
|
|
|
|
|
|
(1.0
|
)
|
|
|
(1.5
|
)
|
Net cash used by investing activities
|
|
|
|
|
|
(37.9
|
)
|
|
|
(73.4
|
)
|
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
|
|
Net increase (decrease) in short-term debt
|
|
|
|
|
|
(21.3
|
)
|
|
|
13.7
|
|
Proceeds from issuance of debt
|
|
|
|
|
|
|
|
(original maturities greater than three months)
|
|
|
|
|
|
273.5
|
|
|
|
315.0
|
|
Repayments of debt (original maturities greater than three months)
|
|
|
|
|
|
(190.0
|
)
|
|
|
(325.0
|
)
|
Repurchases of common stock
|
|
|
|
|
|
(100.1
|
)
|
|
|
(88.1
|
)
|
Dividends paid
|
|
|
|
|
|
(28.0
|
)
|
|
|
(26.7
|
)
|
Debt issuance costs
|
|
|
|
|
|
-
|
|
|
|
(15.4
|
)
|
Proceeds from exercise of stock options
|
|
|
|
|
|
1.9
|
|
|
|
3.4
|
|
Excess tax benefit from stock-based compensation
|
|
|
|
|
|
0.9
|
|
|
|
4.1
|
|
Net cash used by financing activities
|
|
|
|
|
|
(63.1
|
)
|
|
|
(119.0
|
)
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash
|
|
|
|
|
|
2.0
|
|
|
|
2.7
|
|
Decrease in cash and cash equivalents
|
|
|
|
|
|
(4.5
|
)
|
|
|
(260.4
|
)
|
Cash and cash equivalents at beginning of period
|
|
|
|
|
|
42.9
|
|
|
|
313.8
|
|
Cash and cash equivalents at end of period
|
|
|
|
|
$
|
38.4
|
|
|
$
|
53.4
|
|
|
|
OSHKOSH CORPORATION
|
SEGMENT INFORMATION
|
(Unaudited; in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
External
|
|
Inter-
|
|
Net
|
|
External
|
|
Inter-
|
|
Net
|
|
|
|
|
Customers
|
|
segment
|
|
Sales
|
|
Customers
|
|
segment
|
|
Sales
|
Access equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerial work platforms
|
|
|
|
$
|
375.1
|
|
$
|
-
|
|
|
$
|
375.1
|
|
|
$
|
432.5
|
|
$
|
-
|
|
|
$
|
432.5
|
|
Telehandlers
|
|
|
|
|
214.7
|
|
|
-
|
|
|
|
214.7
|
|
|
|
379.7
|
|
|
-
|
|
|
|
379.7
|
|
Other
|
|
|
|
|
164.5
|
|
|
-
|
|
|
|
164.5
|
|
|
|
169.6
|
|
|
-
|
|
|
|
169.6
|
|
Total access equipment
|
|
|
|
|
754.3
|
|
|
-
|
|
|
|
754.3
|
|
|
|
981.8
|
|
|
-
|
|
|
|
981.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defense
|
|
|
|
|
296.8
|
|
|
0.2
|
|
|
|
297.0
|
|
|
|
157.6
|
|
|
1.1
|
|
|
|
158.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fire & emergency
|
|
|
|
|
237.2
|
|
|
3.2
|
|
|
|
240.4
|
|
|
|
194.6
|
|
|
8.3
|
|
|
|
202.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concrete placement
|
|
|
|
|
111.3
|
|
|
-
|
|
|
|
111.3
|
|
|
|
111.0
|
|
|
-
|
|
|
|
111.0
|
|
Refuse collection
|
|
|
|
|
99.5
|
|
|
-
|
|
|
|
99.5
|
|
|
|
76.7
|
|
|
-
|
|
|
|
76.7
|
|
Other
|
|
|
|
|
25.2
|
|
|
0.7
|
|
|
|
25.9
|
|
|
|
32.5
|
|
|
0.7
|
|
|
|
33.2
|
|
Total commercial
|
|
|
|
|
236.0
|
|
|
0.7
|
|
|
|
236.7
|
|
|
|
220.2
|
|
|
0.7
|
|
|
|
220.9
|
|
Intersegment eliminations
|
|
|
|
|
-
|
|
|
(4.1
|
)
|
|
|
(4.1
|
)
|
|
|
-
|
|
|
(10.1
|
)
|
|
|
(10.1
|
)
|
Consolidated net sales
|
|
|
|
$
|
1,524.3
|
|
$
|
-
|
|
|
$
|
1,524.3
|
|
|
$
|
1,554.2
|
|
$
|
-
|
|
|
$
|
1,554.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended March 31,
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
External
|
|
Inter-
|
|
Net
|
|
External
|
|
Inter-
|
|
Net
|
|
|
|
|
Customers
|
|
segment
|
|
Sales
|
|
Customers
|
|
segment
|
|
Sales
|
Access equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerial work platforms
|
|
|
|
$
|
617.1
|
|
$
|
-
|
|
|
$
|
617.1
|
|
|
$
|
709.8
|
|
$
|
-
|
|
|
$
|
709.8
|
|
Telehandlers
|
|
|
|
|
326.5
|
|
|
-
|
|
|
|
326.5
|
|
|
|
670.1
|
|
|
-
|
|
|
|
670.1
|
|
Other
|
|
|
|
|
340.5
|
|
|
-
|
|
|
|
340.5
|
|
|
|
318.6
|
|
|
-
|
|
|
|
318.6
|
|
Total access equipment
|
|
|
|
|
1,284.1
|
|
|
-
|
|
|
|
1,284.1
|
|
|
|
1,698.5
|
|
|
-
|
|
|
|
1,698.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defense
|
|
|
|
|
613.7
|
|
|
1.3
|
|
|
|
615.0
|
|
|
|
426.8
|
|
|
1.2
|
|
|
|
428.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fire & emergency
|
|
|
|
|
442.6
|
|
|
5.3
|
|
|
|
447.9
|
|
|
|
354.1
|
|
|
15.8
|
|
|
|
369.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concrete placement
|
|
|
|
|
183.6
|
|
|
-
|
|
|
|
183.6
|
|
|
|
197.1
|
|
|
-
|
|
|
|
197.1
|
|
Refuse collection
|
|
|
|
|
198.5
|
|
|
-
|
|
|
|
198.5
|
|
|
|
166.3
|
|
|
-
|
|
|
|
166.3
|
|
Other
|
|
|
|
|
53.8
|
|
|
1.1
|
|
|
|
54.9
|
|
|
|
64.7
|
|
|
3.0
|
|
|
|
67.7
|
|
Total commercial
|
|
|
|
|
435.9
|
|
|
1.1
|
|
|
|
437.0
|
|
|
|
428.1
|
|
|
3.0
|
|
|
|
431.1
|
|
Intersegment eliminations
|
|
|
|
|
-
|
|
|
(7.7
|
)
|
|
|
(7.7
|
)
|
|
|
-
|
|
|
(20.0
|
)
|
|
|
(20.0
|
)
|
Consolidated net sales
|
|
|
|
$
|
2,776.3
|
|
$
|
-
|
|
|
$
|
2,776.3
|
|
|
$
|
2,907.5
|
|
$
|
-
|
|
|
$
|
2,907.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
|
March 31,
|
|
March 31,
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Operating income (loss):
|
|
|
|
|
|
|
|
|
|
|
Access equipment
|
|
|
|
$
|
75.7
|
|
|
$
|
136.9
|
|
|
$
|
96.1
|
|
|
$
|
214.1
|
|
Defense
|
|
|
|
|
27.8
|
|
|
|
(12.0
|
)
|
|
|
51.0
|
|
|
|
(2.2
|
)
|
Fire & emergency
|
|
|
|
|
14.9
|
|
|
|
9.0
|
|
|
|
25.0
|
|
|
|
10.5
|
|
Commercial
|
|
|
|
|
17.2
|
|
|
|
8.6
|
|
|
|
26.1
|
|
|
|
21.0
|
|
Corporate
|
|
|
|
|
(44.2
|
)
|
|
|
(32.8
|
)
|
|
|
(76.5
|
)
|
|
|
(68.1
|
)
|
Intersegment eliminations
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.1
|
|
Consolidated
|
|
|
|
$
|
91.4
|
|
|
$
|
109.7
|
|
|
$
|
121.7
|
|
|
$
|
175.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
Period-end backlog:
|
|
|
|
|
|
|
|
|
|
|
Access equipment
|
|
|
|
$
|
664.8
|
|
|
$
|
654.1
|
|
|
|
|
|
Defense
|
|
|
|
|
1,680.5
|
|
|
|
573.9
|
|
|
|
|
|
Fire & emergency
|
|
|
|
|
903.4
|
|
|
|
716.1
|
|
|
|
|
|
Commercial
|
|
|
|
|
289.4
|
|
|
|
291.8
|
|
|
|
|
|
Consolidated
|
|
|
|
$
|
3,538.1
|
|
|
$
|
2,235.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defense and consolidated backlog at March 31, 2016 excludes a contract
award from an international customer for over 1,000 M-ATVs as the
Company works with the customer to finalize funding and vehicle delivery
schedules.
Non-GAAP Financial Measures
The Company reports its financial results in accordance with generally
accepted accounting principles in the United States of America (GAAP).
The Company is presenting various operating results both on a reported
basis and on a basis excluding items that affect comparability of
results. When the Company uses operating results excluding certain items
as described below, they are considered non-GAAP financial measures. The
Company believes excluding the impact of these items is useful to
investors in comparing the Company’s performance to prior period
results. Non-GAAP financial measures should be viewed in addition to,
and not as an alternative for, the Company’s results prepared in
accordance with GAAP. The table below presents a reconciliation of the
Company’s presented non-GAAP measures to the most directly comparable
GAAP measures (in millions, except per share amounts):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
|
|
March 31, 2015
|
|
|
March 31, 2015
|
|
|
|
|
|
|
|
|
|
Adjusted interest expense net of interest
|
|
|
|
|
|
|
|
|
income (non-GAAP)
|
|
|
|
|
$
|
(13.5
|
)
|
|
|
$
|
(27.1
|
)
|
Debt extinguishment costs
|
|
|
|
|
|
(14.7
|
)
|
|
|
|
(14.7
|
)
|
Interest expense net of interest income (GAAP)
|
|
|
|
|
$
|
(28.2
|
)
|
|
|
$
|
(41.8
|
)
|
|
|
|
|
|
|
|
|
|
Adjusted net income (non-GAAP)
|
|
|
|
|
$
|
63.9
|
|
|
|
$
|
96.5
|
|
OPEB curtailment / settlement, net of tax
|
|
|
|
|
|
-
|
|
|
|
|
2.1
|
|
Debt extinguishment costs, net of tax
|
|
|
|
|
|
(9.3
|
)
|
|
|
|
(9.3
|
)
|
Net income (GAAP)
|
|
|
|
|
$
|
54.6
|
|
|
|
$
|
89.3
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per share-diluted (non-GAAP)
|
|
|
|
|
$
|
0.81
|
|
|
|
$
|
1.21
|
|
OPEB curtailment / settlement, net of tax
|
|
|
|
|
|
-
|
|
|
|
|
0.03
|
|
Debt extinguishment costs, net of tax
|
|
|
|
|
|
(0.12
|
)
|
|
|
|
(0.12
|
)
|
Earnings per share-diluted (GAAP)
|
|
|
|
|
$
|
0.69
|
|
|
|
$
|
1.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
____________________________
1 This press release refers to GAAP (U.S. generally accepted
accounting principles) and non-GAAP financial measures. Oshkosh
Corporation believes that the non-GAAP measures provide investors a
useful comparison of the Company’s performance to prior period results.
These non-GAAP measures may not be comparable to similarly titled
measures disclosed by other companies. A reconciliation of these
non-GAAP financial measures to the most comparable GAAP measures can be
found under the caption “Non-GAAP Financial Measures” in this press
release.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160428005410/en/
Source: Oshkosh Corporation