News Details
Oshkosh Corporation Reports Fiscal 2017 Third Quarter Results
Aug. 02, 2017
Increases Fiscal 2017
Declares Quarterly Cash Dividend of
Consolidated net sales in the third quarter of fiscal 2017 were
Consolidated operating income increased 44.3 percent to
“We are pleased to report another quarter of strong performance
highlighted by growth in revenue, operating income and earnings per
share in our fiscal third quarter,” said
“This was a strong quarter by many measures of performance and we are
proud of the way our team members are executing in this, our 100th
year as a company. In particular, our access equipment and fire &
emergency segments reported stronger than expected results in the
quarter and all of our non-defense segments ended the period with higher
year over year backlogs. Additionally, our defense team worked hard to
deliver M-ATVs in support of a large international order that extends
into the first quarter of fiscal 2018. They are also on track delivering
JLTVs to the
“As a result of our strong performance and positive outlook for the
remainder of fiscal 2017, we are increasing our expectations for fiscal
2017 earnings per share to be in a range from
Factors affecting third quarter results for the Company’s business segments included:
Access Equipment – Access equipment segment net sales increased
2.9 percent to
Access equipment segment operating income increased 6.6 percent to
Defense – Defense segment net sales for the third quarter of
fiscal 2017 increased 82.6 percent to
Defense segment operating income increased 226.7 percent to
Fire & Emergency – Fire & emergency segment net sales for the
third quarter of fiscal 2017 increased 13.8 percent to
Fire & emergency segment operating income increased 56.3 percent to
Commercial – Commercial segment net sales increased 2.5 percent
to
Commercial segment operating income decreased 9.2 percent to
Corporate – Corporate operating costs decreased
Interest Expense Net of Interest Income – Interest expense net of
interest income decreased
Provision for Income Taxes – The Company recorded income tax
expense of
Nine-month Results
The Company reported net sales for the first nine months of fiscal 2017
of
Fiscal 2017 Expectations
The Company increased its fiscal 2017 diluted earnings per share
estimate range to
Dividend Announcement
The Company’s Board of Directors today declared a quarterly cash
dividend of
Conference Call
The Company will comment on its fiscal 2017 third quarter earnings and
its full-year fiscal 2017 outlook during a conference call at
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
About
Founded in 1917,
Today,
®, ™ All brand names referred to in this news release are
trademarks of
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Unaudited; in millions, except share and per share amounts) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
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2017 | 2016 | 2017 | 2016 | |||||||||||||
Net sales | $ | 2,036.9 | $ | 1,747.5 | $ | 4,866.6 | $ | 4,523.8 | ||||||||
Cost of sales | 1,650.0 | 1,432.9 | 4,018.7 | 3,767.1 | ||||||||||||
Gross income | 386.9 | 314.6 | 847.9 | 756.7 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling, general and administrative | 163.9 | 154.7 | 484.7 | 448.7 | ||||||||||||
Amortization of purchased intangibles | 11.1 | 13.1 | 34.7 | 39.5 | ||||||||||||
Total operating expenses | 175.0 | 167.8 | 519.4 | 488.2 | ||||||||||||
Operating income | 211.9 | 146.8 | 328.5 | 268.5 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest expense | (15.3 | ) | (15.8 | ) | (45.1 | ) | (46.0 | ) | ||||||||
Interest income | 1.4 | 0.5 | 3.2 | 1.5 | ||||||||||||
Miscellaneous, net | 0.6 | 0.8 | 3.1 | (0.2 | ) | |||||||||||
Income before income taxes and equity | ||||||||||||||||
in earnings of unconsolidated affiliates | 198.6 | 132.3 | 289.7 | 223.8 | ||||||||||||
Provision for income taxes | 70.1 | 48.4 | 98.9 | 70.4 | ||||||||||||
Income before equity in earnings of | ||||||||||||||||
unconsolidated affiliates | 128.5 | 83.9 | 190.8 | 153.4 | ||||||||||||
Equity in earnings of unconsolidated affiliates |
0.1 | 0.3 | 1.3 | 1.5 | ||||||||||||
Net income | $ | 128.6 | $ | 84.2 | $ | 192.1 | $ | 154.9 | ||||||||
Earnings per share attributable to common shareholders: |
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Basic | $ | 1.72 | $ | 1.15 | $ | 2.57 | $ | 2.11 | ||||||||
Diluted | 1.69 | 1.13 | 2.54 | 2.08 | ||||||||||||
Basic weighted-average shares outstanding | 74,806,775 | 73,390,624 | 74,593,065 | 73,526,081 | ||||||||||||
Dilutive stock options and other equity- | ||||||||||||||||
based compensation awards | 1,086,050 | 876,338 | 1,092,479 | 803,060 | ||||||||||||
Diluted weighted-average shares outstanding | 75,892,825 | 74,266,962 | 75,685,544 | 74,329,141 |
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CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited; in millions) | ||||||||
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2017 | 2016 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 373.2 | $ | 321.9 | ||||
Receivables, net | 1,182.3 | 1,021.9 | ||||||
Inventories, net | 1,410.7 | 979.8 | ||||||
Other current assets | 84.0 | 93.9 | ||||||
Total current assets | 3,050.2 | 2,417.5 | ||||||
Property, plant and equipment: | ||||||||
Property, plant and equipment | 1,152.3 | 1,110.6 | ||||||
Accumulated depreciation | (708.9 | ) | (658.5 | ) | ||||
Property, plant and equipment, net | 443.4 | 452.1 | ||||||
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1,006.5 | 1,003.5 | ||||||
Purchased intangible assets, net | 518.8 | 553.5 | ||||||
Other long-term assets | 73.7 | 87.2 | ||||||
Total assets | $ | 5,092.6 | $ | 4,513.8 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Revolving credit facilities and current maturities | ||||||||
of long-term debt | $ | 18.0 | $ | 20.0 | ||||
Accounts payable | 686.9 | 466.1 | ||||||
Customer advances | 559.4 | 471.8 | ||||||
Payroll-related obligations | 167.0 | 147.9 | ||||||
Other current liabilities | 341.8 | 261.8 | ||||||
Total current liabilities | 1,773.1 | 1,367.6 | ||||||
Long-term debt, less current maturities | 812.5 | 826.2 | ||||||
Other long-term liabilities | 327.9 | 343.5 | ||||||
Commitments and contingencies | ||||||||
Shareholders' equity | 2,179.1 | 1,976.5 | ||||||
Total liabilities and shareholders' equity | $ | 5,092.6 | $ | 4,513.8 |
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited; in millions) | ||||||||
Nine Months Ended | ||||||||
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2017 | 2016 | |||||||
Operating activities: | ||||||||
Net income | $ | 192.1 | $ | 154.9 | ||||
Depreciation and amortization | 97.3 | 95.9 | ||||||
Stock-based compensation expense | 16.8 | 16.0 | ||||||
Deferred income taxes | 3.8 | (4.5 | ) | |||||
Gain on sale of assets | (5.2 | ) | (7.6 | ) | ||||
Foreign currency transaction losses | 2.1 | 0.1 | ||||||
Other non-cash adjustments | 0.4 | 0.7 | ||||||
Changes in operating assets and liabilities | (183.4 | ) | (92.0 | ) | ||||
Net cash provided by operating activities | 123.9 | 163.5 | ||||||
Investing activities: | ||||||||
Additions to property, plant and equipment | (45.2 | ) | (62.3 | ) | ||||
Additions to equipment held for rental | (26.3 | ) | (30.9 | ) | ||||
Proceeds from sale of equipment held for rental | 42.3 | 33.7 | ||||||
Other investing activities | (1.4 | ) | (1.5 | ) | ||||
Net cash used by investing activities | (30.6 | ) | (61.0 | ) | ||||
Financing activities: | ||||||||
Net increase (decrease) in short-term debt | 3.0 | (16.5 | ) | |||||
Proceeds from issuance of debt | - | 323.5 | ||||||
Repayments of debt | (20.0 | ) | (278.5 | ) | ||||
Repurchases of common stock | (3.0 | ) | (101.7 | ) | ||||
Dividends paid | (47.1 | ) | (41.9 | ) | ||||
Proceeds from exercise of stock options | 34.2 | 8.8 | ||||||
Excess tax benefit from stock-based compensation | - | 1.3 | ||||||
Net cash used by financing activities | (32.9 | ) | (105.0 | ) | ||||
Effect of exchange rate changes on cash | (9.1 | ) | 5.1 | |||||
Increase in cash and cash equivalents | 51.3 | 2.6 | ||||||
Cash and cash equivalents at beginning of period | 321.9 | 42.9 | ||||||
Cash and cash equivalents at end of period | $ | 373.2 | $ | 45.5 |
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SEGMENT INFORMATION | ||||||||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||||||||
Three Months Ended |
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2017 | 2016 | |||||||||||||||||||||
External | Inter- | Net | External | Inter- | Net | |||||||||||||||||
Customers | segment | Sales | Customers | segment | Sales | |||||||||||||||||
Access equipment | ||||||||||||||||||||||
Aerial work platforms | $ | 583.1 | $ | - | $ | 583.1 | $ | 511.4 | $ | - | $ | 511.4 | ||||||||||
Telehandlers | 202.9 | - | 202.9 | 266.6 | - | 266.6 | ||||||||||||||||
Other | 194.2 | - | 194.2 | 174.5 | - | 174.5 | ||||||||||||||||
Total access equipment | 980.2 | - | 980.2 | 952.5 | - | 952.5 | ||||||||||||||||
Defense | 482.2 | 0.5 | 482.7 | 264.0 | 0.3 | 264.3 | ||||||||||||||||
Fire & emergency | 278.9 | 4.0 | 282.9 | 244.2 | 4.3 | 248.5 | ||||||||||||||||
Commercial | ||||||||||||||||||||||
Concrete placement | 158.5 | - | 158.5 | 164.6 | - | 164.6 | ||||||||||||||||
Refuse collection | 107.8 | - | 107.8 | 96.5 | - | 96.5 | ||||||||||||||||
Other | 27.3 | 1.6 | 28.9 | 25.7 | 1.1 | 26.8 | ||||||||||||||||
Total commercial | 293.6 | 1.6 | 295.2 | 286.8 | 1.1 | 287.9 | ||||||||||||||||
Corporate & eliminations | 2.0 | (6.1 | ) | (4.1 | ) | - | (5.7 | ) | (5.7 | ) | ||||||||||||
$ | 2,036.9 | $ | - | $ | 2,036.9 | $ | 1,747.5 | $ | - | $ | 1,747.5 | |||||||||||
Nine Months Ended |
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2017 | 2016 | |||||||||||||||||||||
External | Inter- | Net | External | Inter- | Net | |||||||||||||||||
Customers | segment | Sales | Customers | segment | Sales | |||||||||||||||||
Access equipment | ||||||||||||||||||||||
Aerial work platforms | $ | 1,186.2 | $ | - | $ | 1,186.2 | $ | 1,128.5 | $ | - | $ | 1,128.5 | ||||||||||
Telehandlers | 457.8 | - | 457.8 | 593.1 | - | 593.1 | ||||||||||||||||
Other | 548.6 | - | 548.6 | 515.0 | - | 515.0 | ||||||||||||||||
Total access equipment | 2,192.6 | - | 2,192.6 | 2,236.6 | - | 2,236.6 | ||||||||||||||||
Defense | 1,222.1 | 1.2 | 1,223.3 | 877.7 | 1.6 | 879.3 | ||||||||||||||||
Fire & emergency | 741.5 | 11.4 | 752.9 | 686.8 | 9.6 | 696.4 | ||||||||||||||||
Commercial | ||||||||||||||||||||||
Concrete placement | 355.6 | - | 355.6 | 348.2 | - | 348.2 | ||||||||||||||||
Refuse collection | 279.1 | - | 279.1 | 295.0 | - | 295.0 | ||||||||||||||||
Other | 71.1 | 4.6 | 75.7 | 79.5 | 2.2 | 81.7 | ||||||||||||||||
Total commercial | 705.8 | 4.6 | 710.4 | 722.7 | 2.2 | 724.9 | ||||||||||||||||
Corporate & eliminations | 4.6 | (17.2 | ) | (12.6 | ) | - | (13.4 | ) | (13.4 | ) | ||||||||||||
$ | 4,866.6 | $ | - | $ | 4,866.6 | $ | 4,523.8 | $ | - | $ | 4,523.8 |
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SEGMENT INFORMATION (continued) | ||||||||||||||||
(Unaudited; in millions) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
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2017 | 2016 | 2017 | 2016 | |||||||||||||
Operating income (loss): | ||||||||||||||||
Access equipment | $ | 130.2 | $ | 122.1 | $ | 196.7 | $ | 218.2 | ||||||||
Defense | 62.4 | 19.1 | 134.9 | 70.1 | ||||||||||||
Fire & emergency | 30.8 | 19.7 | 69.6 | 44.7 | ||||||||||||
Commercial | 21.6 | 23.8 | 32.2 | 49.9 | ||||||||||||
Corporate | (33.1 | ) | (37.9 | ) | (104.9 | ) | (114.4 | ) | ||||||||
$ | 211.9 | $ | 146.8 | $ | 328.5 | $ | 268.5 | |||||||||
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2017 | 2016 | |||||||||||||||
Period-end backlog: | ||||||||||||||||
Access equipment | $ | 523.0 | $ | 374.6 | ||||||||||||
Defense | 1,904.9 | 2,288.3 | ||||||||||||||
Fire & emergency | 894.1 | 852.8 | ||||||||||||||
Commercial | 333.5 | 206.3 | ||||||||||||||
$ | 3,655.5 | $ | 3,722.0 | |||||||||||||
Non-GAAP Financial Measures
The Company reports its financial results in accordance with generally
accepted accounting principles in
Three Months | Nine Months | |||||||
Ended | Ended | |||||||
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Adjusted access equipment segment operating income (Non-GAAP) | $ | 140.8 | $ | 224.5 | ||||
Restructuring-related costs | (10.6 | ) | (27.8 | ) | ||||
Access equipment segment operating income (GAAP) | $ | 130.2 | $ | 196.7 | ||||
Adjusted consolidated operating income (Non-GAAP) | $ | 222.5 | $ | 356.3 | ||||
Restructuring-related costs | (10.6 | ) | (27.8 | ) | ||||
Consolidated operating income (GAAP) | $ | 211.9 | $ | 328.5 | ||||
Adjusted provision for income taxes (Non-GAAP) | $ | 69.5 | $ | 101.8 | ||||
Income tax expense (benefit) for restructuring-related costs | 0.6 | (2.9 | ) | |||||
Provision for income taxes (GAAP) | $ | 70.1 | $ | 98.9 | ||||
Adjusted net income (Non-GAAP) | $ | 139.8 | $ | 217.0 | ||||
Restructuring-related costs, net of tax | (11.2 | ) | (24.9 | ) | ||||
Net income (GAAP) | $ | 128.6 | $ | 192.1 | ||||
Adjusted diluted earnings per share (Non-GAAP) | $ | 1.84 | $ | 2.87 | ||||
Restructuring-related costs, net of tax | (0.15 | ) | (0.33 | ) | ||||
Diluted earnings per share (GAAP) | $ | 1.69 | $ | 2.54 | ||||
Fiscal 2017 Expectations | ||||||||
Low | High | |||||||
Adjusted operating income (Non-GAAP) | $ | 480.0 | $ | 490.0 | ||||
Restructuring-related costs | (41.0 | ) | (41.0 | ) | ||||
Operating income (GAAP) | $ | 439.0 | $ | 449.0 | ||||
Adjusted diluted earnings per share (Non-GAAP) | $ | 3.80 | $ | 3.90 | ||||
Restructuring-related costs | (0.47 | ) | (0.47 | ) | ||||
Diluted earnings per share (GAAP) | $ | 3.33 | $ | 3.43 |
1 This news release refers to GAAP (
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