News Details
Oshkosh Corporation Reports Fiscal 2023 First Quarter Results
Apr. 27, 2023
Reports Sales of
Reports Strong Orders Leading to a Record Backlog of Nearly
Reports Diluted Earnings per Share of
Raises Fiscal 2023 Sales and Earnings Expectations
Declares Quarterly Cash Dividend of
Adjusted1 net income for the first quarter of fiscal 2023 excludes net after-tax charges of
“The Oshkosh team delivered strong first quarter results that exceeded expectations,” said
“While higher interest rates may be impacting other areas of the economy, we continue to experience strong demand for our access products. In addition, fire apparatus and refuse collection vehicle demand both remain very strong in our Vocational segment. We are prudently expanding capacity in both the Access and Vocational segments to meet market demand.
“During the quarter, we announced North America’s first fully integrated, zero emission electric refuse collection vehicle, creating a new category and bringing advanced technology to the refuse collection industry. Customers are excited about this new technology, and we are exhibiting a prototype of the unit at the Waste Expo conference in
“As a result of our positive start to 2023, strong demand and confidence in our continued progress on key operational initiatives, we are increasing our full year 2023 expectations. We now expect full year earnings per share to be in a range of
Consolidated sales in the first quarter of fiscal 2023 increased 16.6 percent to
Consolidated operating income in the first quarter of fiscal 2023 increased 311.3 percent to
Consolidated operating results in the first quarter of fiscal 2023 included a loss of
Factors affecting first quarter results for the Company’s business segments included:
Access - Access segment sales for the first quarter of fiscal 2023 increased 35.1 percent to
Access segment operating income in the first quarter of fiscal 2023 increased 2,268.4 percent to
Defense - Defense segment sales for the first quarter of fiscal 2023 decreased 4.2 percent to
Defense segment operating income in the first quarter of fiscal 2023 decreased 91.2 percent to
Vocational - Vocational segment sales for the first quarter of fiscal 2023 increased 6.3 percent to
Vocational segment operating income in the first quarter of fiscal 2023 decreased 31.5 percent to
Vocational segment results in the first quarter of fiscal 2023 included a loss of
Corporate - Corporate costs in the first quarter of fiscal 2023 decreased
Interest Expense Net of Interest Income - Interest expense net of interest income in the first quarter of fiscal 2023 decreased
Miscellaneous, net - Miscellaneous income for the first quarter of fiscal 2023 primarily related to a
Provision for Income Taxes - The Company recorded income tax expense in the first quarter of fiscal 2023 of
Dividend Announcement
The Company’s Board of Directors today declared a quarterly cash dividend of
Fiscal 2023 Expectations
The Company expects its fiscal 2023 adjusted1 diluted earnings per share to be in the range of
Conference Call
The Company will host 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 extent of supply chain and logistics disruptions; the Company’s ability to increase prices or impose surcharges to raise margins or to offset higher input costs, including increased raw material, labor, freight and overhead costs; the Company's ability to accurately predict future input costs associated with Defense contracts; the Company’s ability to attract and retain production labor in a timely manner; the cyclical nature of the Company’s access equipment, fire apparatus and refuse collection markets, which are particularly impacted by the strength of
About
At
________
1 This news release refers to GAAP ( |
®, ™ All brand names referred to in this news release are trademarks of |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In millions, except share and per share amounts; unaudited) |
|||||||||
|
|
Three Months Ended
|
|||||||
|
|
2023 |
|
2022 |
|||||
Net sales |
|
$ |
2,268.1 |
|
|
$ |
1,945.7 |
|
|
Cost of sales |
|
|
1,934.3 |
|
|
|
1,741.9 |
|
|
Gross income |
|
|
333.8 |
|
|
|
203.8 |
|
|
|
|
|
|
|
|
|
|||
Operating expenses: |
|
|
|
|
|
|
|||
Selling, general and administrative |
|
|
199.1 |
|
|
|
169.2 |
|
|
Amortization of purchased intangibles |
|
|
3.9 |
|
|
|
2.8 |
|
|
Total operating expenses |
|
|
203.0 |
|
|
|
172.0 |
|
|
Operating income |
|
|
130.8 |
|
|
|
31.8 |
|
|
|
|
|
|
|
|
|
|||
Other income (expense): |
|
|
|
|
|
|
|||
Interest expense |
|
|
(13.4 |
) |
|
|
(12.6 |
) |
|
Interest income |
|
|
6.2 |
|
|
|
1.0 |
|
|
Miscellaneous, net |
|
|
5.8 |
|
|
|
1.1 |
|
|
Income before income taxes and losses of unconsolidated affiliates |
|
|
129.4 |
|
|
|
21.3 |
|
|
Provision for income taxes |
|
|
34.2 |
|
|
|
20.8 |
|
|
Income before losses of unconsolidated affiliates |
|
|
95.2 |
|
|
|
0.5 |
|
|
Losses of unconsolidated affiliates |
|
|
(6.7 |
) |
|
|
(0.7 |
) |
|
Net income |
|
$ |
88.5 |
|
|
$ |
(0.2 |
) |
|
|
|
|
|
|
|
|
|||
Earnings per share: |
|
|
|
|
|
|
|||
Basic |
|
$ |
1.35 |
|
|
$ |
— |
|
|
Diluted |
|
|
1.34 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|||
Basic weighted-average shares outstanding |
|
|
65,440,014 |
|
|
|
66,394,041 |
|
|
Dilutive equity-based compensation awards |
|
|
390,971 |
|
|
|
— |
|
|
Diluted weighted-average shares outstanding |
|
|
65,830,985 |
|
|
|
66,394,041 |
|
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(In millions; unaudited) |
||||||||
|
|
|
|
|
||||
|
|
2023 |
|
2022 |
||||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
538.7 |
|
|
$ |
805.9 |
|
Receivables, net |
|
|
1,311.7 |
|
|
|
1,162.0 |
|
Unbilled receivables, net |
|
|
554.4 |
|
|
|
586.3 |
|
Inventories |
|
|
1,905.9 |
|
|
|
1,865.6 |
|
Income taxes receivable |
|
|
15.8 |
|
|
|
21.6 |
|
Other current assets |
|
|
87.1 |
|
|
|
90.7 |
|
Total current assets |
|
|
4,413.6 |
|
|
|
4,532.1 |
|
Property, plant and equipment: |
|
|
|
|
|
|
||
Property, plant and equipment |
|
|
1,873.6 |
|
|
|
1,804.4 |
|
Accumulated depreciation |
|
|
(1,002.1 |
) |
|
|
(978.2 |
) |
Property, plant and equipment, net |
|
|
871.5 |
|
|
|
826.2 |
|
|
|
|
1,129.2 |
|
|
|
1,042.0 |
|
Purchased intangible assets, net |
|
|
536.1 |
|
|
|
457.0 |
|
Deferred income taxes |
|
|
153.2 |
|
|
|
134.8 |
|
Deferred contract costs |
|
|
485.9 |
|
|
|
415.8 |
|
Other long-term assets |
|
|
326.9 |
|
|
|
321.1 |
|
Total assets |
|
$ |
7,916.4 |
|
|
$ |
7,729.0 |
|
|
|
|
|
|
|
|
||
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Revolving credit facilities |
|
$ |
2.1 |
|
|
$ |
9.7 |
|
Accounts payable |
|
|
1,091.2 |
|
|
|
1,129.0 |
|
Customer advances |
|
|
688.9 |
|
|
|
696.7 |
|
Payroll-related obligations |
|
|
146.9 |
|
|
|
119.5 |
|
Income taxes payable |
|
|
150.5 |
|
|
|
100.3 |
|
Other current liabilities |
|
|
379.0 |
|
|
|
373.4 |
|
Total current liabilities |
|
|
2,458.6 |
|
|
|
2,428.6 |
|
Long-term debt |
|
|
595.2 |
|
|
|
595.0 |
|
Long-term customer advances |
|
|
1,110.6 |
|
|
|
1,020.5 |
|
Other long-term liabilities |
|
|
504.8 |
|
|
|
499.2 |
|
Commitments and contingencies |
|
|
|
|
|
|
||
Shareholders’ equity |
|
|
3,247.2 |
|
|
|
3,185.7 |
|
Total liabilities and shareholders’ equity |
|
$ |
7,916.4 |
|
|
$ |
7,729.0 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions; unaudited) |
||||||||
|
|
Three Months Ended
|
|
|||||
|
|
2023 |
|
|
2022 |
|
||
Operating activities: |
|
|
|
|
|
|
||
Net income (loss) |
|
$ |
88.5 |
|
|
$ |
(0.2 |
) |
Depreciation and amortization |
|
|
30.5 |
|
|
|
26.4 |
|
Stock-based incentive compensation |
|
|
6.8 |
|
|
|
6.8 |
|
Loss on sales of business, net of tax |
|
|
11.0 |
|
|
|
- |
|
Deferred income taxes |
|
|
(26.3 |
) |
|
|
1.6 |
|
Gain on sale of assets |
|
|
(0.1 |
) |
|
|
(1.0 |
) |
Foreign currency transaction gains |
|
|
(0.8 |
) |
|
|
(1.5 |
) |
Other non-cash adjustments |
|
|
6.9 |
|
|
|
(0.6 |
) |
Changes in operating assets and liabilities |
|
|
(36.7 |
) |
|
|
297.4 |
|
Net cash provided by operating activities |
|
|
79.8 |
|
|
|
328.9 |
|
|
|
|
|
|
|
|
||
Investing activities: |
|
|
|
|
|
|
||
Additions to property, plant and equipment |
|
|
(111.5 |
) |
|
|
(26.1 |
) |
Additions to equipment held for rental |
|
|
(1.2 |
) |
|
|
(1.9 |
) |
Acquisition of business, net of cash acquired |
|
|
(187.9 |
) |
|
|
- |
|
Proceeds from sale of business, net of cash sold |
|
|
23.1 |
|
|
|
- |
|
Proceeds from sale of equipment held for rental |
|
|
1.6 |
|
|
|
3.2 |
|
Other investing activities |
|
|
(1.2 |
) |
|
|
(15.3 |
) |
Net cash used in investing activities |
|
|
(277.1 |
) |
|
|
(40.1 |
) |
|
|
|
|
|
|
|
||
Financing activities: |
|
|
|
|
|
|
||
Repayments of debt |
|
|
(25.0 |
) |
|
|
(225.0 |
) |
Repurchases of Common Stock |
|
|
(15.2 |
) |
|
|
(85.0 |
) |
Dividends paid |
|
|
(26.8 |
) |
|
|
(24.5 |
) |
Other financing activities |
|
|
(4.1 |
) |
|
|
(3.4 |
) |
Net cash used in financing activities |
|
|
(71.1 |
) |
|
|
(337.9 |
) |
|
|
|
|
|
|
|
||
Effect of exchange rate changes on cash and cash equivalents |
|
|
1.2 |
|
|
|
(2.1 |
) |
Decrease in cash and cash equivalents |
|
|
(267.2 |
) |
|
|
(51.2 |
) |
Cash and cash equivalents at beginning of period |
|
|
805.9 |
|
|
|
995.7 |
|
Cash and cash equivalents at end of period |
|
$ |
538.7 |
|
|
$ |
944.5 |
|
.
SEGMENT INFORMATION (In millions; unaudited) |
||||||||
|
|
Three Months Ended
|
||||||
|
|
2023 |
|
2022 |
||||
|
|
|
|
|
|
|
||
Access |
|
|
|
|
|
|
||
Aerial work platforms |
|
$ |
602.0 |
|
|
$ |
439.7 |
|
Telehandlers |
|
|
341.4 |
|
|
|
229.7 |
|
Other |
|
|
249.8 |
|
|
|
213.7 |
|
Total Access |
|
|
1,193.2 |
|
|
|
883.1 |
|
Defense |
|
|
513.1 |
|
|
|
535.6 |
|
Vocational |
|
|
|
|
|
|
||
Fire apparatus |
|
|
288.4 |
|
|
|
279.9 |
|
Refuse collection |
|
|
141.9 |
|
|
|
129.3 |
|
Other |
|
|
132.4 |
|
|
|
120.1 |
|
Total Vocational |
|
|
562.7 |
|
|
|
529.3 |
|
Corporate and intersegment eliminations |
|
|
(0.9 |
) |
|
|
(2.3 |
) |
Consolidated |
|
$ |
2,268.1 |
|
|
$ |
1,945.7 |
|
|
|
Three Months Ended
|
|
|||||
|
|
2023 |
|
2022 |
||||
Operating Income |
|
|
|
|
|
|
||
Access |
|
$ |
135.0 |
|
|
$ |
5.7 |
|
Defense |
|
|
1.7 |
|
|
|
19.4 |
|
Vocational |
|
|
28.1 |
|
|
|
41.0 |
|
Corporate and intersegment eliminations |
|
|
(34.0 |
) |
|
|
(34.3 |
) |
Consolidated Operating Income |
|
$ |
130.8 |
|
|
$ |
31.8 |
|
|
|
|
||||||
|
|
2023 |
|
2022 |
||||
Period-end backlog: |
|
|
|
|
|
|
||
Access |
|
$ |
4,374.8 |
|
|
$ |
3,959.0 |
|
Defense |
|
|
6,834.2 |
|
|
|
6,185.5 |
|
Vocational |
|
|
3,631.4 |
|
|
|
2,554.0 |
|
|
|
$ |
14,840.4 |
|
|
$ |
12,698.5 |
|
Non-GAAP Financial Measures
The Company reports its financial results in accordance with generally accepted accounting principles in
|
|
Three Months Ended
|
||||||
|
|
2023 |
|
2022 |
||||
Defense segment operating income (GAAP) |
|
$ |
1.7 |
|
|
$ |
19.4 |
|
Restructuring costs |
|
|
0.8 |
|
|
|
- |
|
Adjusted Defense segment operating income (non-GAAP) |
|
$ |
2.5 |
|
|
$ |
19.4 |
|
|
|
|
|
|
|
|
||
Vocational segment operating income (GAAP) |
|
$ |
28.1 |
|
|
$ |
41.0 |
|
Restructuring costs |
|
|
2.3 |
|
|
|
- |
|
Loss on sale of a business |
|
|
13.3 |
|
|
|
- |
|
Adjusted Vocational segment operating income (non-GAAP) |
|
$ |
43.7 |
|
|
$ |
41.0 |
|
|
|
|
|
|
|
|
||
Corporate operating expenses (GAAP) |
|
$ |
(34.0 |
) |
|
$ |
(34.3 |
) |
Restructuring costs |
|
|
0.6 |
|
|
|
- |
|
Adjusted Corporate operating expenses (non-GAAP) |
|
$ |
(33.4 |
) |
|
$ |
(34.3 |
) |
|
|
|
|
|
|
|
||
Consolidated operating income (GAAP) |
|
$ |
130.8 |
|
|
$ |
31.8 |
|
Restructuring costs |
|
|
3.7 |
|
|
|
- |
|
Loss on sale of a business |
|
|
13.3 |
|
|
|
- |
|
Adjusted consolidated operating income (non-GAAP) |
$ |
147.8 |
|
$ |
31.8 |
|
|
|
Three Months Ended
|
||||||
|
|
2023 |
|
2022 |
||||
Miscellaneous, net (GAAP) |
|
$ |
5.8 |
|
|
$ |
1.1 |
|
Pension advisor settlement |
|
|
(4.7 |
) |
|
|
- |
|
Adjusted miscellaneous, net (non-GAAP) |
|
$ |
1.1 |
|
|
$ |
1.1 |
|
|
|
|
|
|
|
|
||
Provision for income taxes (GAAP) |
|
$ |
34.2 |
|
|
$ |
20.8 |
|
Income tax benefit for restructuring costs |
|
|
0.9 |
|
|
|
- |
|
Income tax benefit on sale of a business |
|
|
2.3 |
|
|
|
- |
|
Income tax provision on pension advisor settlement |
|
|
(1.1 |
) |
|
|
- |
|
Anti-hybrid tax on prior period income |
|
|
- |
|
|
|
(18.1 |
) |
Adjusted provision for income taxes (non-GAAP) |
|
$ |
36.3 |
|
|
$ |
2.7 |
|
|
|
|
|
|
|
|
||
Net income (loss) (GAAP) |
|
$ |
88.5 |
|
|
$ |
(0.2 |
) |
Restructuring costs, net of tax |
|
|
2.8 |
|
|
|
- |
|
Loss on sale of a business, net of tax |
|
|
11.0 |
|
|
|
- |
|
Pension advisor settlement, net of tax |
|
|
(3.6 |
) |
|
|
- |
|
Impairment of equity method investment |
|
|
5.9 |
|
|
|
- |
|
Anti-hybrid tax on prior period income |
|
|
|
|
|
18.1 |
|
|
Adjusted net income (non-GAAP) |
|
$ |
104.6 |
|
|
$ |
17.9 |
|
|
|
|
|
|
|
|
||
Earnings per share-diluted (GAAP) |
|
$ |
1.34 |
|
|
$ |
- |
|
Restructuring costs, net of tax |
|
|
0.04 |
|
|
|
- |
|
Loss on sale of a business, net of tax |
|
|
0.17 |
|
|
|
- |
|
Pension advisor settlement, net of tax |
|
|
(0.05 |
) |
|
|
- |
|
Impairment of equity method investment |
|
|
0.09 |
|
|
|
- |
|
Anti-hybrid tax on prior period income |
|
|
- |
|
|
|
0.27 |
|
Adjusted earnings per share-diluted (non-GAAP) |
|
$ |
1.59 |
|
|
$ |
0.27 |
|
|
|
Fiscal 2023 Expectations |
|
|
Earnings per share-diluted (GAAP) |
|
$ |
5.75 |
|
Restructuring costs, net of tax |
|
|
0.04 |
|
Loss on sale of a business, net of tax |
|
|
0.17 |
|
Pension advisor settlement, net of tax |
|
|
(0.05 |
) |
Impairment of equity method investment |
|
|
0.09 |
|
Adjusted earnings per share-diluted (non-GAAP) |
|
$ |
6.00 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230426005782/en/
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