Enersys (ENS) 10-Q Quarterly Report August 2021

Reading, PA, USA, August 11, 2021 – EnerSys (NYSE: ENS), the global leader in stored energy solutions for industrial applications, announced today results for its first quarter of fiscal 2022, which ended on July 4, 2021.


First Quarter FY 22 Highlights
•Net sales of $815M up 16% vs. Q1'21 •Q1’22 backlog growth of $157M •GP 24% includes recent inflation pressure •Supply chain slowed Q1 shipments and earnings			•Credit Facility amended and extended to 2026 •Bank debt leverage at 1.95X •TPPL capacity of $300M per quarter on track •Solid progress on new product initiatives


Key Results from Operations by Segments ($ in millions)
	Q1 FY22		Q1 FY21		% Change
Energy Systems
Net Sales	$	371.2	$	353.4	5.0	%
Operating Earnings	7.1		22.0		(67.8)
Adjusted Operating Earnings *	13.1		28.1		(53.6)
Motive Power
Net Sales	336.1		262.8		27.9
Operating Earnings	50.6		27.3		85.6
Adjusted Operating Earnings *	50.6		27.3		85.6
Specialty
Net Sales	107.6		88.7		21.3
Operating Earnings	11.0		5.3		109.5
Adjusted Operating Earnings *	11.4		5.8		98.7

* This is a non-GAAP financial measure. See “Reconciliation of Non-GAAP Financial Measures” for more information.

Message from the CEO

We delivered a solid Q1, with extremely strong demand for our products and services throughout each of our business segments. Revenue was up 16% vs last year, but perhaps more importantly, up more than 4% from two years ago, with quarterly backlog growth of $157M. Like many industrial companies, we are facing supply chain challenges that are restraining revenue and earnings growth, especially in our first half of F22. While we are being cautious due to the fluidity of lingering COVID impacts, we remain optimistic that consistently robust orders, a strong backlog, recent pricing actions and a steadily improving supply chain will sequentially benefit our second half. We expect our adjusted diluted earnings per share to be between $1.03 and $1.13 in our second fiscal quarter with sequential impacts from the acceleration of investment in our new EV fast charging program along with our global annual wage increases moving from April 1 to July 1.

David M. Shaffer, President and Chief Executive Officer, EnerSys

The following information was filed by Enersys (ENS) on Wednesday, August 11, 2021 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Enersys's 10-Q Quarterly Report:

Financial - Earnings Highlight
Motive Power and Specialty enjoyed mild improvements in gross profit margin from price increases and productivity improvements.

Revenue - Geography Highlight
Prepaid and other current assets provided a source of funds of $2.7 million, from the receipt of $15.0 million towards the insurance receivable relating to the Richmond plant claim in fiscal 2020 offset by related accruals of $9.3 million, the receipt of a working capital adjustment claim of $2.0 million, relating to an acquisition made several years ago, partially offset by an increase in contract assets of $5.7 million.
Revenue - Product Highlight
Solid revenue growth enabled the expansion in Specialty's operating margins.
Financial - Cash Flow Highlight
Liquidity and Capital Resources Cash Flow and Financing Activities Operating activities used cash of $48.1 million in the current quarter of fiscal 2022 compared to $116.6 million of cash generated in the first quarter of fiscal 2021, with the decrease in operating cash resulting mainly due to changes in our primary working capital, details of which can be found below.
Other - Other Highlight
Liquidity and Capital Resources We believe that our financial position is strong and we have substantial liquidity to cover short-term liquidity requirements and anticipated growth in the foreseeable future, with $406 million of available cash and cash equivalents and available and undrawn committed credit lines of approximately $746 million at July 4, 2021, availability subject to credit agreement financial covenants.
Financial - Earnings
The Motive Power operating earnings,...Read more
Financial - Earnings
The Specialty operating earnings, as...Read more
Legal - Other
In addition to the property...Read more
Financial - Expense
In fiscal 2020, our selling...Read more
Other - Other
Currency translation had a positive...Read more
Financial - Earnings
The Energy Systems operating earnings,...Read more
Other - Other
The Swiss tax reform measures...Read more
Financial - Expense
Accrued expenses decreased by $18.6...Read more
M & A - Other
We believe that our strong...Read more
Revenue - Geography
Primary working capital and primary...Read more
Revenue - Geography
Investing activities used cash of...Read more
Financial - Earnings
Lower margin revenue growth, along...Read more
Revenue - Product
The large increase in primary...Read more
Financial - Earnings
Operating earnings increased $7.7 million...Read more
Other - Other
Based on current commodity markets,...Read more
Financial - Expense
Historically, volatility of commodity costs...Read more
Financial - Earnings
Earnings Before Income Taxes Quarter...Read more
Financial - Income
Income from the Company's Swiss...Read more
Financial - Cash Flow
EnerSys' management uses the non-GAAP...Read more
Financial - Earnings
Gross profit, as a percentage...Read more
Financial - Expense
The decrease in interest expense...Read more
Financial - Income
The consolidated effective income tax...Read more
Other - Other
The increase in primary working...Read more
Revenue - Geography
The foreign effective income tax...Read more
Revenue - Product
Segment sales Net sales of...Read more
Revenue - Product
Net sales of our Motive...Read more
Revenue - Product
Net sales of our Specialty...Read more
Revenue - Product
Results of Operations Net Sales...Read more
Financial - Earnings
Gross Profit Gross profit increased...Read more
Financial - Income
Our effective income tax rate...Read more
Revenue - Product
We plan to retain the...Read more
Financial - Expense
Prepaid and other current assets...Read more
Financial - Expense
While some of these benefits...Read more
Other - Other
These statements speak only as...Read more
Other - Other
As a result of the...Read more
Revenue - Product
This increase was primarily due...Read more
Revenue - Product
The increase was primarily due...Read more
Revenue - Product
This increase was the result...Read more
Other - Other
EnerSys and its representatives may,...Read more
Other - Other
The tax provision for the...Read more
Financial - Income
A net gain of $1.2...Read more
Financial - Income
A net gain of $0.7...Read more
Financial - Cash Flow
These disclosures have limitations as...Read more
Revenue - Product
We also provide aftermarket and...Read more
Financial - Expense
29 Table of Contents Interest...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Enersys provided additional information to their SEC Filing as exhibits

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Ticker: ENS
CIK: 1289308
Form Type: 10-Q Quarterly Report
Accession Number: 0001289308-21-000043
Submitted to the SEC: Wed Aug 11 2021 4:15:20 PM EST
Accepted by the SEC: Wed Aug 11 2021
Period: Sunday, July 4, 2021
Industry: Wholesale Electrical Apparatus And Equipment Wiring Supplies