Reaffirms Fiscal 2017 Estimated EPS Range of $3.00 to $3.40
Announces 11 Percent Increase in Quarterly Cash Dividend to $0.21
Per Share
OSHKOSH, Wis.--(BUSINESS WIRE)--
Oshkosh Corporation (NYSE: OSK) today reported fiscal 2016 fourth
quarter net income of $61.5 million, or $0.82 per diluted share,
compared to $50.3 million, or $0.64 per diluted share, in the fourth
quarter of fiscal 2015. Comparisons in this news release are to the
corresponding period of the prior year, unless otherwise noted.
Results for the fourth quarter of fiscal 2016 were adversely impacted by
a $17.5 million after-tax asset impairment and workforce reduction
charge related to a decision to outsource aftermarket parts distribution
in the access equipment segment. Results for the fourth quarter of
fiscal 2015 were adversely impacted by a combined $2.4 million after-tax
workforce reduction charge in the access equipment segment and in
corporate. Excluding these items, fiscal 2016 fourth quarter adjusted1
net income was $79.0 million, or $1.05 per diluted share, compared to
fiscal 2015 fourth quarter adjusted1 net income of
$52.7 million, or $0.67 per diluted share.
Consolidated net sales in the fourth quarter of fiscal 2016 were
$1.76 billion, an increase of 11.2 percent. The Company reported an
increase in sales in all segments. Higher international sales in the
defense segment accounted for the majority of the increase in sales in
the fourth quarter of fiscal 2016.
Consolidated operating income in the fourth quarter of fiscal 2016 was
$95.5 million, or 5.4 percent of sales, compared to $86.6 million, or
5.5 percent of sales, in the prior year fourth quarter. Fiscal 2016
fourth quarter adjusted1 consolidated operating income was
$123.3 million, or 7.0 percent of sales, excluding asset impairment and
workforce reduction charges of $27.8 million. Fiscal 2015 fourth quarter
adjusted1 consolidated operating income was $89.5 million, or
5.7 percent of sales, excluding workforce reduction charges of
$2.9 million. The increase in adjusted1 operating income
was primarily the result of higher defense and access equipment segment
operating income, offset in part by higher corporate expenses.
The Company reported net cash flow provided by operating activities for
fiscal 2016 of $577.7 million. Cash flow provided by operating
activities less additions to property, plant and equipment of
$92.5 million plus net proceeds from the sale of equipment held for
rental of $5.4 million resulted in free cash flow1 for
fiscal 2016 of $490.6 million.
“We finished the year on a high note with fiscal fourth quarter adjusted1
earnings per share of $1.05, which exceeded both our most recent
estimates for the quarter and our results from the fourth quarter of
fiscal 2015,” said Wilson R. Jones, president and chief executive
officer of Oshkosh Corporation. “Higher than expected sales in the
access equipment segment as well as lower bid & proposal costs due to
the timing of the FMTV request for proposal and favorable LIFO, warranty
and benefits costs in the defense segment drove the higher than expected
results for the quarter. Our improved year-over-year performance
compared to the fourth quarter of fiscal 2015 was led primarily by
significantly stronger results in our defense segment, including the
sale of 325 international M-ATVs. We also benefited from revenue growth
in our fire & emergency segment, which drives our confidence in the
strength of this business as we enter fiscal 2017.
“During the quarter, we also began shipping our revolutionary new
defense vehicle, the JLTV. This is just the beginning of our eight year
contract to supply the U.S. Army and Marines with the world’s most
capable light protected tactical wheeled vehicle. There is great
interest in the JLTV from international customers as well, which further
strengthens our long-term positive outlook.
“Our access equipment team delivered on the commitment to balance
production as inventory was reduced to targeted levels at fiscal year
end helping to drive strong free cash flow1 of $490 million
during the year.
“It’s clear that customers with exposure to construction markets are
maintaining their cautious approach to capital expenditures, but our
defense and fire & emergency segments help provide a solid outlook for
fiscal 2017. In addition, as noted during our recent Analyst Day, we
continue to work on simplifying our businesses by focusing on those
activities that drive the most value for both customers and
shareholders. I am confident in our team’s ability to navigate through
challenging market conditions in some of our businesses and position
Oshkosh Corporation to take advantage of future opportunities.
“As we consider our markets, our performance in fiscal 2016 and our
opportunities, I am pleased to announce that we are reiterating our
earnings per share expectations range for fiscal 2017 of $3.00 to $3.40.”
Factors affecting fourth quarter results for the Company’s business
segments included:
Access Equipment – Access equipment segment net sales increased
0.8 percent to $775.8 million in the fourth quarter of fiscal 2016.
Access equipment segment operating income decreased 20.0 percent to
$45.2 million, or 5.8 percent of sales, in the fourth quarter of fiscal
2016 compared to $56.5 million, or 7.3 percent of sales, in the fourth
quarter of fiscal 2015. Access equipment segment results for the fourth
quarter of fiscal 2016 were adversely impacted by charges of
$27.8 million for asset impairments and workforce reductions. Access
equipment segment results for the fourth quarter of fiscal 2015 included
$2.5 million in workforce reduction charges. Excluding these costs,
adjusted1 operating income was $73.0 million, or 9.4 percent
of sales, in the fourth quarter of fiscal 2016 compared to
$59.0 million, or 7.7 percent of sales, in the fourth quarter of fiscal
2015. The increase in adjusted1 operating income was
primarily the result of lower spending on engine emissions standards
changes, favorable material costs and lower provisions for valuation
reserves on used equipment, offset in part by a challenging pricing
environment.
Defense – Defense segment net sales for the fourth quarter of
fiscal 2016 increased 48.5 percent to $471.8 million. The increase in
sales was primarily due to increased sales of international Mine
Resistant Ambush Protected All Terrain Vehicles (M-ATV) as well as
higher sales of legacy heavy tactical wheeled vehicles to the U.S.
government.
Defense segment operating income increased 183.4 percent to
$52.4 million, or 11.1 percent of sales, in the fourth quarter of fiscal
2016 compared to $18.5 million, or 5.8 percent of sales, in the fourth
quarter of fiscal 2015. The increase in operating results was largely
due to the impact of higher sales volume and lower provisions related to
contract audits.
Fire & Emergency – Fire & emergency segment net sales for the
fourth quarter of fiscal 2016 increased 4.7 percent to $256.9 million.
Sales in the fourth quarter of fiscal 2016 benefited from higher
domestic fire apparatus deliveries as a result of increased production
rates to meet higher demand, offset in part by lower airport products
volume. Improved operational efficiencies have allowed the fire &
emergency segment to increase its production rates.
Fire & emergency segment operating income decreased 5.8 percent to
$22.3 million, or 8.7 percent of sales, in the fourth quarter of fiscal
2016 compared to $23.7 million, or 9.6 percent of sales, in the fourth
quarter of fiscal 2015. The decrease in operating income was primarily a
result of an unfavorable airport products and broadcast vehicles mix
offset in part by the impact of higher sales volumes.
Commercial – Commercial segment net sales increased 0.6 percent
to $254.3 million in the fourth quarter of fiscal 2016.
Commercial segment operating income decreased 15.9 percent to
$17.7 million, or 7.0 percent of sales, in the fourth quarter of fiscal
2016 compared to $21.1 million, or 8.4 percent of sales, in the fourth
quarter of fiscal 2015. The decrease in operating income was primarily a
result of production inefficiencies associated with the launch of new
products and investments in MOVE initiatives.
Corporate – Corporate operating costs increased $8.9 million in
the fourth quarter of fiscal 2016 to $42.1 million due primarily to
higher share-based compensation expense, largely as a result of the
impact of an increase in the Company's share price on variable
share-based compensation, and higher incentive compensation expense.
Interest Expense Net of Interest Income – Interest expense net of
interest income increased $0.6 million to $13.8 million in the fourth
quarter of fiscal 2016 as a result of borrowings to support increased
working capital levels.
Provision for Income Taxes – The Company recorded income tax
expense of $22.0 million in the fourth quarter of fiscal 2016, or
26.4 percent of pre-tax income, compared to $18.7 million, or
27.3 percent of pre-tax income, in the fourth quarter of fiscal 2015.
Tax optimization strategies contributed to a reduction in the Company’s
effective income tax rate in the fourth quarter of fiscal 2016. The
Company recorded $3.5 million of discrete tax benefits in the fourth
quarter of fiscal 2015, generally related to reductions of income tax
reserves related to the settlement of tax audits and expiration of
statutes of limitations.
Share Repurchases – Share repurchases completed during the
previous twelve months benefited earnings per diluted share in the
fourth quarter of fiscal 2016 by $0.03 compared to the prior year fourth
quarter. The Company did not repurchase any shares in the fourth quarter
of fiscal 2016.
Full-Year Results
The Company reported net sales for fiscal 2016 of $6.28 billion and net
income of $216.4 million, or $2.91 per diluted share. This compares with
net sales of $6.10 billion and net income of $229.5 million, or
$2.90 per diluted share, in fiscal 2015. Results for fiscal 2016 were
adversely impacted by a $17.5 million, or $0.23 per diluted share,
after-tax asset impairment and workforce reduction charge in the access
equipment segment. Results for fiscal 2015 were adversely impacted by a
combined $2.4 million, or $0.03 per diluted share, after-tax workforce
reduction charge in the access equipment segment and in corporate,
after-tax costs of $9.3 million, or $0.12 per diluted share, incurred in
connection with the refinancing of the Company’s senior notes due 2020
and a $2.1 million, or $0.03 per diluted share, after-tax other
postretirement benefit curtailment gain. Excluding these items, adjusted1
net income for fiscal 2016 was $233.9 million, or $3.14 per diluted
share, compared to $239.1 million, or $3.02 per diluted share, in fiscal
2015. Improved operating income results in each of the Company’s
non-access equipment segments in fiscal 2016 were not sufficient to
offset the impact of lower sales in the access equipment segment and
higher corporate expenses, including increased start-up costs of a
shared manufacturing facility and higher incentive compensation expense.
Earnings per diluted share in fiscal 2016 benefited $0.17 compared to
the prior year as a result of lower average shares outstanding.
Fiscal 2017 Expectations
The Company reaffirms its fiscal 2017 diluted earnings per share
estimate range of $3.00 to $3.40 on projected net sales of $6.5 billion
to $6.7 billion and operating income of $390 million to $430 million.
Dividend Announcement
The Company’s Board of Directors today declared a quarterly cash
dividend of $0.21 per share of Common Stock. The dividend, increased by
approximately 11 percent from the previous dividend, will be payable on
December 1, 2016, to shareholders of record as of November 17, 2016.
Conference Call
The Company will comment on its fiscal 2016 fourth quarter earnings and
its full-year fiscal 2017 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 news 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 news
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 acceptance of and funding or
payments for such products and services; the outcome of a competitor’s
protest of orders we received from the DoD; 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 (FMTV) 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 news release. The Company assumes no obligation, and
disclaims any obligation, to update information contained in this news
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
|
|
Fiscal Year Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
1,755.4
|
|
|
$
|
1,578.3
|
|
|
$
|
6,279.2
|
|
|
$
|
6,098.1
|
|
Cost of sales
|
|
|
|
1,456.3
|
|
|
|
1,328.6
|
|
|
|
5,223.4
|
|
|
|
5,058.9
|
|
Gross income
|
|
|
|
299.1
|
|
|
|
249.7
|
|
|
|
1,055.8
|
|
|
|
1,039.2
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
|
163.7
|
|
|
|
149.9
|
|
|
|
612.4
|
|
|
|
587.4
|
|
Amortization of purchased intangibles
|
|
|
|
13.0
|
|
|
|
13.2
|
|
|
|
52.5
|
|
|
|
53.2
|
|
Long-lived asset impairment charge
|
|
|
|
26.9
|
|
|
|
-
|
|
|
|
26.9
|
|
|
|
-
|
|
Total operating expenses
|
|
|
|
203.6
|
|
|
|
163.1
|
|
|
|
691.8
|
|
|
|
640.6
|
|
Operating income
|
|
|
|
95.5
|
|
|
|
86.6
|
|
|
|
364.0
|
|
|
|
398.6
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
(14.4
|
)
|
|
|
(13.7
|
)
|
|
|
(60.4
|
)
|
|
|
(70.1
|
)
|
Interest income
|
|
|
|
0.6
|
|
|
|
0.5
|
|
|
|
2.1
|
|
|
|
2.5
|
|
Miscellaneous, net
|
|
|
|
1.5
|
|
|
|
(4.7
|
)
|
|
|
1.3
|
|
|
|
(4.9
|
)
|
Income before income taxes and equity
|
|
|
|
|
|
|
|
|
|
in earnings of unconsolidated affiliates
|
|
|
|
83.2
|
|
|
|
68.7
|
|
|
|
307.0
|
|
|
|
326.1
|
|
Provision for income taxes
|
|
|
|
22.0
|
|
|
|
18.7
|
|
|
|
92.4
|
|
|
|
99.2
|
|
Income before equity in earnings of
|
|
|
|
|
|
|
|
|
|
unconsolidated affiliates
|
|
|
|
61.2
|
|
|
|
50.0
|
|
|
|
214.6
|
|
|
|
226.9
|
|
Equity in earnings of unconsolidated
|
|
|
|
|
|
|
|
|
|
affiliates
|
|
|
|
0.3
|
|
|
|
0.3
|
|
|
|
1.8
|
|
|
|
2.6
|
|
Net income
|
|
|
$
|
61.5
|
|
|
$
|
50.3
|
|
|
$
|
216.4
|
|
|
$
|
229.5
|
|
|
|
|
|
|
|
|
|
|
|
Amounts available to common shareholders, net of tax:
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
61.5
|
|
|
$
|
50.3
|
|
|
$
|
216.4
|
|
|
$
|
229.5
|
|
Allocated to participating securities
|
|
|
|
-
|
|
|
|
(0.1
|
)
|
|
|
-
|
|
|
|
(0.5
|
)
|
Net income available to common shareholders
|
|
|
$
|
61.5
|
|
|
$
|
50.2
|
|
|
$
|
216.4
|
|
|
$
|
229.0
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to common shareholders:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.83
|
|
|
$
|
0.65
|
|
|
$
|
2.94
|
|
|
$
|
2.94
|
|
Diluted
|
|
|
|
0.82
|
|
|
|
0.64
|
|
|
|
2.91
|
|
|
|
2.90
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted-average shares outstanding
|
|
|
|
73,700,883
|
|
|
|
76,988,788
|
|
|
|
73,570,020
|
|
|
|
77,990,432
|
|
Dilutive stock options and other equity-
|
|
|
|
|
|
|
|
|
|
based compensation awards
|
|
|
|
1,042,412
|
|
|
|
1,011,970
|
|
|
|
862,898
|
|
|
|
1,101,303
|
|
Participating restricted stock
|
|
|
|
-
|
|
|
|
(97,343
|
)
|
|
|
-
|
|
|
|
(110,317
|
)
|
Diluted weighted-average shares outstanding
|
|
|
|
74,743,295
|
|
|
|
77,903,415
|
|
|
|
74,432,918
|
|
|
|
78,981,418
|
|
|
|
OSHKOSH CORPORATION
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(Unaudited; in millions)
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
|
2016
|
|
|
2015*
|
ASSETS
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
321.9
|
|
|
|
$
|
42.9
|
|
Receivables, net
|
|
|
|
1,021.9
|
|
|
|
|
964.6
|
|
Inventories, net
|
|
|
|
979.8
|
|
|
|
|
1,301.7
|
|
Other current assets
|
|
|
|
93.9
|
|
|
|
|
67.9
|
|
Total current assets
|
|
|
|
2,417.5
|
|
|
|
|
2,377.1
|
|
Property, plant and equipment:
|
|
|
|
|
|
|
Property, plant and equipment
|
|
|
|
1,110.6
|
|
|
|
|
1,093.7
|
|
Accumulated depreciation
|
|
|
|
(658.5
|
)
|
|
|
|
(617.9
|
)
|
Property, plant and equipment, net
|
|
|
|
452.1
|
|
|
|
|
475.8
|
|
Goodwill
|
|
|
|
1,003.5
|
|
|
|
|
1,001.1
|
|
Purchased intangible assets, net
|
|
|
|
553.5
|
|
|
|
|
606.7
|
|
Other long-term assets
|
|
|
|
87.2
|
|
|
|
|
92.0
|
|
Total assets
|
|
|
$
|
4,513.8
|
|
|
|
$
|
4,552.7
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Revolving credit facilities and current maturities
|
|
|
|
|
|
|
of long-term debt
|
|
|
$
|
20.0
|
|
|
|
$
|
83.5
|
|
Accounts payable
|
|
|
|
466.1
|
|
|
|
|
552.8
|
|
Customer advances
|
|
|
|
471.8
|
|
|
|
|
440.2
|
|
Payroll-related obligations
|
|
|
|
147.9
|
|
|
|
|
116.6
|
|
Other current liabilities
|
|
|
|
261.8
|
|
|
|
|
265.0
|
|
Total current liabilities
|
|
|
|
1,367.6
|
|
|
|
|
1,458.1
|
|
Long-term debt, less current maturities
|
|
|
|
826.2
|
|
|
|
|
844.3
|
|
Deferred income taxes, net
|
|
|
|
11.3
|
|
|
|
|
42.1
|
|
Other long-term liabilities
|
|
|
|
332.2
|
|
|
|
|
297.1
|
|
Commitments and contingencies
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
1,976.5
|
|
|
|
|
1,911.1
|
|
Total liabilities and shareholders' equity
|
|
|
$
|
4,513.8
|
|
|
|
$
|
4,552.7
|
|
|
|
|
|
|
|
|
|
|
|
|
* Prior year amounts reclassified to conform to current year
standards.
|
|
|
OSHKOSH CORPORATION
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited; in millions)
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended
|
|
|
|
September 30,
|
|
|
|
2016
|
|
|
2015
|
Operating activities:
|
|
|
|
|
|
|
Net income
|
|
|
$
|
216.4
|
|
|
|
$
|
229.5
|
|
Depreciation and amortization
|
|
|
|
128.8
|
|
|
|
|
124.5
|
|
Long-lived asset impairment charge
|
|
|
|
26.9
|
|
|
|
|
-
|
|
Stock-based compensation expense
|
|
|
|
18.7
|
|
|
|
|
21.4
|
|
Deferred income taxes
|
|
|
|
(17.0
|
)
|
|
|
|
(12.2
|
)
|
Gain on sale of assets
|
|
|
|
(19.1
|
)
|
|
|
|
(9.3
|
)
|
Foreign currency transaction (gains) losses
|
|
|
|
(1.1
|
)
|
|
|
|
10.4
|
|
Other non-cash adjustments
|
|
|
|
0.3
|
|
|
|
|
14.1
|
|
Changes in operating assets and liabilities
|
|
|
|
223.8
|
|
|
|
|
(295.9
|
)
|
Net cash provided by operating activities
|
|
|
|
577.7
|
|
|
|
|
82.5
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
|
Additions to property, plant and equipment
|
|
|
|
(92.5
|
)
|
|
|
|
(131.7
|
)
|
Additions to equipment held for rental
|
|
|
|
(34.8
|
)
|
|
|
|
(26.3
|
)
|
Proceeds from sale of equipment held for rental
|
|
|
|
40.2
|
|
|
|
|
26.8
|
|
Acquisition of business, net of cash acquired
|
|
|
|
-
|
|
|
|
|
(10.0
|
)
|
Other investing activities
|
|
|
|
(2.1
|
)
|
|
|
|
1.1
|
|
Net cash used by investing activities
|
|
|
|
(89.2
|
)
|
|
|
|
(140.1
|
)
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
|
Proceeds from issuance of debt
|
|
|
|
|
|
|
(original maturities greater than three months)
|
|
|
|
323.5
|
|
|
|
|
375.0
|
|
Repayments of debt (original maturities greater than three months)
|
|
|
|
(373.5
|
)
|
|
|
|
(365.0
|
)
|
Net increase (decrease) in short-term debt
|
|
|
|
(33.5
|
)
|
|
|
|
33.5
|
|
Debt issuance costs
|
|
|
|
-
|
|
|
|
|
(15.5
|
)
|
Repurchases of common stock
|
|
|
|
(100.1
|
)
|
|
|
|
(200.4
|
)
|
Dividends paid
|
|
|
|
(55.9
|
)
|
|
|
|
(53.1
|
)
|
Proceeds from exercise of stock options
|
|
|
|
21.7
|
|
|
|
|
8.6
|
|
Excess tax benefit from stock-based compensation
|
|
|
|
2.0
|
|
|
|
|
4.0
|
|
Net cash used by financing activities
|
|
|
|
(215.8
|
)
|
|
|
|
(212.9
|
)
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash
|
|
|
|
6.3
|
|
|
|
|
(0.4
|
)
|
Increase (decrease) in cash and cash equivalents
|
|
|
|
279.0
|
|
|
|
|
(270.9
|
)
|
Cash and cash equivalents at beginning of period
|
|
|
|
42.9
|
|
|
|
|
313.8
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
321.9
|
|
|
|
$
|
42.9
|
|
|
|
OSHKOSH CORPORATION
|
SEGMENT INFORMATION
|
(Unaudited; in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
|
2016
|
|
2015
|
|
|
|
External
|
|
Inter-
|
|
Net
|
|
External
|
|
Inter-
|
|
Net
|
|
|
|
Customers
|
|
segment
|
|
Sales
|
|
Customers
|
|
segment
|
|
Sales
|
Access equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerial work platforms
|
|
|
$
|
411.0
|
|
$
|
-
|
|
|
$
|
411.0
|
|
|
$
|
374.5
|
|
$
|
-
|
|
|
$
|
374.5
|
|
Telehandlers
|
|
|
|
180.8
|
|
|
-
|
|
|
|
180.8
|
|
|
|
234.6
|
|
|
-
|
|
|
|
234.6
|
|
Other
|
|
|
|
184.0
|
|
|
-
|
|
|
|
184.0
|
|
|
|
160.4
|
|
|
-
|
|
|
|
160.4
|
|
Total access equipment
|
|
|
|
775.8
|
|
|
-
|
|
|
|
775.8
|
|
|
|
769.5
|
|
|
-
|
|
|
|
769.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defense
|
|
|
|
471.6
|
|
|
0.2
|
|
|
|
471.8
|
|
|
|
313.9
|
|
|
3.7
|
|
|
|
317.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fire & emergency
|
|
|
|
254.7
|
|
|
2.2
|
|
|
|
256.9
|
|
|
|
242.4
|
|
|
3.0
|
|
|
|
245.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concrete placement
|
|
|
|
115.4
|
|
|
-
|
|
|
|
115.4
|
|
|
|
105.9
|
|
|
-
|
|
|
|
105.9
|
|
Refuse collection
|
|
|
|
114.1
|
|
|
-
|
|
|
|
114.1
|
|
|
|
115.1
|
|
|
-
|
|
|
|
115.1
|
|
Other
|
|
|
|
23.8
|
|
|
1.0
|
|
|
|
24.8
|
|
|
|
31.5
|
|
|
0.4
|
|
|
|
31.9
|
|
Total commercial
|
|
|
|
253.3
|
|
|
1.0
|
|
|
|
254.3
|
|
|
|
252.5
|
|
|
0.4
|
|
|
|
252.9
|
|
Intersegment eliminations
|
|
|
|
-
|
|
|
(3.4
|
)
|
|
|
(3.4
|
)
|
|
|
-
|
|
|
(7.1
|
)
|
|
|
(7.1
|
)
|
Consolidated net sales
|
|
|
$
|
1,755.4
|
|
$
|
-
|
|
|
$
|
1,755.4
|
|
|
$
|
1,578.3
|
|
$
|
-
|
|
|
$
|
1,578.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended September 30,
|
|
|
|
2016
|
|
2015
|
|
|
|
External
|
|
Inter-
|
|
Net
|
|
External
|
|
Inter-
|
|
Net
|
|
|
|
Customers
|
|
segment
|
|
Sales
|
|
Customers
|
|
segment
|
|
Sales
|
Access equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerial work platforms
|
|
|
$
|
1,539.5
|
|
$
|
-
|
|
|
$
|
1,539.5
|
|
|
$
|
1,627.0
|
|
$
|
-
|
|
|
$
|
1,627.0
|
|
Telehandlers
|
|
|
|
773.9
|
|
|
-
|
|
|
|
773.9
|
|
|
|
1,126.1
|
|
|
-
|
|
|
|
1,126.1
|
|
Other
|
|
|
|
699.0
|
|
|
-
|
|
|
|
699.0
|
|
|
|
647.5
|
|
|
-
|
|
|
|
647.5
|
|
Total access equipment
|
|
|
|
3,012.4
|
|
|
-
|
|
|
|
3,012.4
|
|
|
|
3,400.6
|
|
|
-
|
|
|
|
3,400.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defense
|
|
|
|
1,349.3
|
|
|
1.8
|
|
|
|
1,351.1
|
|
|
|
931.8
|
|
|
8.0
|
|
|
|
939.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fire & emergency
|
|
|
|
941.5
|
|
|
11.8
|
|
|
|
953.3
|
|
|
|
791.5
|
|
|
23.6
|
|
|
|
815.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concrete placement
|
|
|
|
463.6
|
|
|
-
|
|
|
|
463.6
|
|
|
|
461.0
|
|
|
-
|
|
|
|
461.0
|
|
Refuse collection
|
|
|
|
409.1
|
|
|
-
|
|
|
|
409.1
|
|
|
|
385.0
|
|
|
-
|
|
|
|
385.0
|
|
Other
|
|
|
|
103.3
|
|
|
3.2
|
|
|
|
106.5
|
|
|
|
128.2
|
|
|
3.8
|
|
|
|
132.0
|
|
Total commercial
|
|
|
|
976.0
|
|
|
3.2
|
|
|
|
979.2
|
|
|
|
974.2
|
|
|
3.8
|
|
|
|
978.0
|
|
Intersegment eliminations
|
|
|
|
-
|
|
|
(16.8
|
)
|
|
|
(16.8
|
)
|
|
|
-
|
|
|
(35.4
|
)
|
|
|
(35.4
|
)
|
Consolidated net sales
|
|
|
$
|
6,279.2
|
|
$
|
-
|
|
|
$
|
6,279.2
|
|
|
$
|
6,098.1
|
|
$
|
-
|
|
|
$
|
6,098.1
|
|
|
|
OSHKOSH CORPORATION
|
SEGMENT INFORMATION (continued)
|
(Unaudited; in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Fiscal Year Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Operating income (loss):
|
|
|
|
|
|
|
|
|
|
Access equipment
|
|
|
$
|
45.2
|
|
|
$
|
56.5
|
|
|
$
|
263.4
|
|
|
$
|
407.0
|
|
Defense
|
|
|
|
52.4
|
|
|
|
18.5
|
|
|
|
122.5
|
|
|
|
9.2
|
|
Fire & emergency
|
|
|
|
22.3
|
|
|
|
23.7
|
|
|
|
67.0
|
|
|
|
43.8
|
|
Commercial
|
|
|
|
17.7
|
|
|
|
21.1
|
|
|
|
67.6
|
|
|
|
64.5
|
|
Corporate
|
|
|
|
(42.1
|
)
|
|
|
(33.2
|
)
|
|
|
(156.5
|
)
|
|
|
(126.0
|
)
|
Intersegment eliminations
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.1
|
|
Consolidated
|
|
|
$
|
95.5
|
|
|
$
|
86.6
|
|
|
$
|
364.0
|
|
|
$
|
398.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
Period-end backlog:
|
|
|
|
|
|
|
|
|
|
Access equipment
|
|
|
$
|
179.3
|
|
|
$
|
209.7
|
|
|
|
|
|
Defense*
|
|
|
|
2,332.4
|
|
|
|
1,414.0
|
|
|
|
|
|
Fire & emergency
|
|
|
|
852.9
|
|
|
|
790.7
|
|
|
|
|
|
Commercial
|
|
|
|
173.3
|
|
|
|
193.0
|
|
|
|
|
|
Consolidated
|
|
|
$
|
3,537.9
|
|
|
$
|
2,607.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Backlog at September 30, 2016 included $379.9 million of FMTV
orders under protest.
|
|
|
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
|
|
Fiscal Year Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
Adjusted access equipment segment operating
|
|
|
|
|
|
|
|
|
|
income (non-GAAP)
|
|
|
$
|
73.0
|
|
|
$
|
59.0
|
|
|
$
|
291.2
|
|
|
$
|
409.5
|
|
Long-lived asset impairment charge
|
|
|
|
(26.9
|
)
|
|
|
-
|
|
|
|
(26.9
|
)
|
|
|
-
|
|
Workforce reduction charges
|
|
|
|
(0.9
|
)
|
|
|
(2.5
|
)
|
|
|
(0.9
|
)
|
|
|
(2.5
|
)
|
Access equipment segment operating income (GAAP)
|
|
|
$
|
45.2
|
|
|
$
|
56.5
|
|
|
$
|
263.4
|
|
|
$
|
407.0
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income (non-GAAP)
|
|
|
$
|
123.3
|
|
|
$
|
89.5
|
|
|
$
|
391.8
|
|
|
$
|
398.1
|
|
Long-lived asset impairment charge
|
|
|
|
(26.9
|
)
|
|
|
-
|
|
|
|
(26.9
|
)
|
|
|
-
|
|
OPEB curtailment / settlement
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3.4
|
|
Workforce reduction charges
|
|
|
|
(0.9
|
)
|
|
|
(2.9
|
)
|
|
|
(0.9
|
)
|
|
|
(2.9
|
)
|
Operating income (GAAP)
|
|
|
$
|
95.5
|
|
|
$
|
86.6
|
|
|
$
|
364.0
|
|
|
$
|
398.6
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income (non-GAAP)
|
|
|
$
|
79.0
|
|
|
$
|
52.7
|
|
|
$
|
233.9
|
|
|
$
|
239.1
|
|
Long-lived asset impairment charge, net of tax
|
|
|
|
(16.7
|
)
|
|
|
-
|
|
|
|
(16.7
|
)
|
|
|
-
|
|
OPEB curtailment / settlement, net of tax
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2.1
|
|
Workforce reduction charges, net of tax
|
|
|
|
(0.8
|
)
|
|
|
(2.4
|
)
|
|
|
(0.8
|
)
|
|
|
(2.4
|
)
|
Debt extinguishment costs, net of tax
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(9.3
|
)
|
Net income (GAAP)
|
|
|
$
|
61.5
|
|
|
$
|
50.3
|
|
|
$
|
216.4
|
|
|
$
|
229.5
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per share-diluted (non-GAAP)
|
|
|
$
|
1.05
|
|
|
$
|
0.67
|
|
|
$
|
3.14
|
|
|
$
|
3.02
|
|
Long-lived asset impairment charge, net of tax
|
|
|
|
(0.22
|
)
|
|
|
-
|
|
|
|
(0.22
|
)
|
|
|
-
|
|
OPEB curtailment / settlement, net of tax
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.03
|
|
Workforce reduction charges, net of tax
|
|
|
|
(0.01
|
)
|
|
|
(0.03
|
)
|
|
|
(0.01
|
)
|
|
|
(0.03
|
)
|
Debt extinguishment costs, net of tax
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(0.12
|
)
|
Earnings per share-diluted (GAAP)
|
|
|
$
|
0.82
|
|
|
$
|
0.64
|
|
|
$
|
2.91
|
|
|
$
|
2.90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended
|
|
|
|
|
|
|
|
September 30,
|
|
|
|
|
|
|
|
2016
|
|
2015
|
Net cash flows provided by operating activities
|
|
|
|
|
|
|
$
|
577.7
|
|
|
$
|
82.5
|
|
Additions to property, plant and equipment
|
|
|
|
|
|
|
|
(92.5
|
)
|
|
|
(131.7
|
)
|
Additions to equipment held for rental
|
|
|
|
|
|
|
|
(34.8
|
)
|
|
|
(26.3
|
)
|
Proceeds from sale of equipment held for rental
|
|
|
|
|
|
|
|
40.2
|
|
|
|
26.8
|
|
Free cash flow
|
|
|
|
|
|
|
$
|
490.6
|
|
|
$
|
(48.7
|
)
|
__________________________________
1 This news 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 news
release.

View source version on businesswire.com: http://www.businesswire.com/news/home/20161101005554/en/
Source: Oshkosh Corporation