News Releases

Briggs & Stratton Corporation Reports Fiscal 2019 Second Quarter Results

January 23, 2019 at 4:27 PM EST

MILWAUKEE, Jan. 23, 2019 /PRNewswire/ -- Briggs & Stratton Corporation (NYSE: BGG) today announced financial results for its second fiscal quarter ended December 30, 2018.

  • Second fiscal quarter net sales were $505 million, an increase of $59 million, or 13.2%, from $446 million in the prior year.
  • Continued favorable momentum in sales of engines and products designed for commercial markets led to growth of 18% on a trailing twelve month basis.
  • Quarterly GAAP gross profit margin of 18.3% and adjusted gross profit margin of 18.6% decreased from a GAAP gross profit margin of 20.8% and adjusted gross profit margin of 21.1% last year primarily due to sales mix and lower production volumes.
  • Second quarter GAAP net loss of $2.6 million, or $0.07 per share, included business optimization charges, premiums on the repurchase of senior notes, integration charges, and tax adjustments associated with the Tax Cut & Jobs Act (TCJA). Excluding these items, adjusted net income was $8.4 million, or $0.20 per diluted share, compared to $10.7 million, or $0.25 per diluted share, in the prior year.
  • The company repurchased $6.3 million of common stock under the company's share repurchase program during the second fiscal quarter of fiscal 2019.
  • The company is revising its fiscal 2019 earnings outlook to $1.10 to $1.30 per diluted share, before business optimization costs and other charges, from previous guidance of $1.40 to $1.60 per diluted share. The revision reflects the weather-related market softness in Europe and Australia and the impact of the Sears bankruptcy.

Briggs & Stratton Corporation logo.  (PRNewsFoto/Briggs & Stratton Corporation) (PRNewsfoto/Briggs & Stratton Corporation)

"Robust sales in the second quarter, across both residential and commercial lines, enabled us to recapture much of the sales shortfall from earlier in the year and demonstrated the continued favorable momentum of our strategy to grow commercial sales," said Todd J. Teske, Chairman, President and Chief Executive Officer. "We achieved higher sales despite significant headwinds from difficult weather-related market conditions in Europe and Australia and lower sales of aftermarket service parts from lower throughput at our distribution center hub."  Teske added, "During the second quarter, we made significant progress on our business optimization program, including improvements to return our parts business back to its historical high service levels.  We are also pleased by the engine placement achieved for the upcoming lawn and garden season, and are encouraged by the enthusiasm surrounding new brand launches.  Equally encouraging, activity remains high in commercial lines. With a broader range of innovative products and stronger distribution, we are serving more commercial applications than ever before. Business activity across all commercial lines – turf and landscape, engines, and job site – remains high, as professionals increasingly turn to Briggs for power to make them more productive on the job." 

Teske continued, "The market headwinds caused by the drought conditions in Australia and Europe as well as the Sears bankruptcy have resulted in a decrease to our fiscal 2019 outlook, but we expect much of these headwinds to ease by next season.  Despite these near-term issues, the continued strong growth in commercial and high placement in residential demonstrate that our strategy has us on the right path to deliver long-term growth in sales and profitability as well as greater business diversification. By the end of fiscal 2019, we expect to have our business optimization initiative largely completed, which positions us well to support our strong commercial sales momentum and deliver meaningful profitability improvement."

Fiscal 2019 Outlook:

  • Net sales are now expected to be in a range of $1.90 billion to $1.96 billion (previously $1.95 billion to $2.01 billion), a $50 million reduction. The decrease contemplates a $30 million impact from the Sears bankruptcy and $40 million in lower sales in Australia and Europe due to unfavorable weather, partially offset by incremental generator sales of $20 million related to Hurricanes Florence and Michael, which occurred in the first half of fiscal 2019.
  • Net income is now expected to be in a range of $47 million to $55 million (previously $60 million to $68 million), or $1.10 to $1.30 per diluted share (previously $1.40 to $1.60 per diluted share). The reduction is due to the company's expectation of lower sales and manufacturing volumes, partially offset by spending reductions. The outlook is prior to the impact of costs related to the company's business optimization program and other charges incurred to date or the benefit of share repurchases.
  • Operating margin is expected to be 4.5% to 4.8% (previously 5.3% to 5.5%), before the impact of charges from the business optimization program, bad debt charge, the litigation settlement charge or acquisition costs.
  • The company continues to anticipate capital expenditures of approximately $65 million.
  • The company's business optimization program is now expected to generate pre-tax savings of $35 million to $40 million (previously $30 million to $35 million) by fiscal 2021. Total pre-tax charges to achieve the savings are now expected in the range of $60 million to $70 million (previously $50 million to $55 million), including fiscal 2019 program costs of $42 million to $46 million (previously $27 million to $32 million). The increase largely relates to higher than anticipated costs related to the ERP upgrade.

Conference Call Information:

The company will host a conference call tomorrow at 10:00 AM (ET) to review the second quarter financial results. A live webcast of the conference call will be available on the company's corporate website: http://investors.basco.com.

Also available is a dial-in number to access the call real-time at (877) 233-9136 and enter Conference ID 6374426. A replay will be offered beginning approximately two hours after the call ends and will be available for one week. Dial (855) 859-2056 and enter the Conference ID to access the replay.

Non-GAAP Financial Measures:

This release refers to non-GAAP financial measures including "adjusted gross profit", "adjusted engineering, selling, general, and administrative expenses", "adjusted segment income (loss)", "adjusted net income (loss)", and "adjusted diluted earnings (loss) per share." Refer to the accompanying financial schedules for supplemental financial data and corresponding reconciliations of these non-GAAP financial measures to certain GAAP financial measures.

Safe Harbor Statement:

This release contains certain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. The words "anticipate", "believe", "estimate", "expect", "forecast", "intend", "plan", "project", and similar expressions are intended to identify forward-looking statements. The forward-looking statements are based on the company's current views and assumptions and involve risks and uncertainties that include, among other things, the ability to successfully forecast demand for its products; changes in interest rates and foreign exchange rates; the effects of weather on the purchasing patterns of consumers and original equipment manufacturers (OEMs); actions of engine manufacturers and OEMs with whom the company competes; changes in laws and regulations, including U.S. tax reform, changes in tax rates, laws and regulations as well as related guidance; imposition of new, or change in existing, duties, tariffs and trade agreements; changes in customer and OEM demand; changes in prices of raw materials and parts that the company purchases; changes in domestic and foreign economic conditions (including effects from the U.K.'s decision to exit the European Union); the ability to bring new productive capacity on line efficiently and with good quality; outcomes of legal proceedings and claims; the ability to realize anticipated savings from the business optimization program and restructuring actions; and other factors disclosed from time to time in the company's SEC filings or otherwise, including the factors discussed in Item 1A, Risk Factors, of the company's Annual Report on Form 10-K and in its periodic reports on Form 10-Q. The company undertakes no obligation to update forward-looking statements made in this release to reflect events or circumstances after the date of this release.

About Briggs & Stratton Corporation:

Briggs & Stratton Corporation (NYSE: BGG), headquartered in Milwaukee, Wisconsin, is focused on providing power to get work done and make people's lives better. Briggs & Stratton is the world's largest producer of gasoline engines for outdoor power equipment, and is a leading designer, manufacturer and marketer of power generation, pressure washer, lawn and garden, turf care and job site products through its Briggs & Stratton®, Simplicity®, Snapper®, Ferris®, Vanguard®, Allmand®, Billy Goat®, Murray®, Branco®, and Victa® brands. Briggs & Stratton products are designed, manufactured, marketed and serviced in over 100 countries on six continents. For additional information, please visit www.basco.com and www.briggsandstratton.com.

 

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

Consolidated Statements of Operations for the Periods Ended December

(In Thousands, except per share data)




 Three Months Ended December 


 Six Months Ended December 



FY2019


FY2018


FY2019


FY2018

NET SALES


$ 505,462


$446,436


$784,459


$775,531

COST OF GOODS SOLD


413,005


353,570


648,248


616,400

Gross Profit 


92,457


92,866


136,211


159,131










ENGINEERING, SELLING, GENERAL









AND ADMINISTRATIVE EXPENSES


87,139


77,590


187,998


164,062

EQUITY IN EARNINGS OF UNCONSOLIDATED AFFILIATES


3,017


2,113


5,990


5,726

Income (Loss) from Operations


8,335


17,389


(45,797)


795










INTEREST EXPENSE


(7,482)


(5,593)


(12,643)


(10,550)

OTHER INCOME (EXPENSE)


(946)


384


(603)


860

Income (Loss) before Income Taxes


(93)


12,180


(59,043)


(8,895)










PROVISION (CREDIT) FOR INCOME TAXES


2,511


28,524


(15,452)


22,488

Net Loss


$    (2,604)


$ (16,344)


$ (43,591)


$ (31,383)










EARNINGS (LOSS) PER SHARE









Basic  


$      (0.07)


$      (0.39)


$      (1.05)


$      (0.75)

Diluted


$      (0.07)


$      (0.39)


$      (1.05)


$      (0.75)










WEIGHTED AVERAGE SHARES OUTSTANDING









Basic  


41,689


42,154


41,773


42,130

Diluted


41,689


42,154


41,773


42,130

 

Supplemental International Sales Information

(In Thousands)




 Three Months Ended December 


 Six Months Ended December 



FY2019


FY2018


FY2019


FY2018

International sales based on product shipment destination


$148,125


$157,248


$236,651


$271,885

 

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets as of the End of December

(In Thousands)





CURRENT ASSETS:

FY2019


FY2018

Cash and Cash Equivalents

$      33,954


$      66,366

Accounts Receivable, Net

242,232


201,253

Inventories

567,256


501,531

Prepaid Expenses and Other Current Assets

38,481


37,901

Total Current Assets

881,923


807,051





OTHER ASSETS:




Goodwill

169,401


164,312

Investments

47,078


47,626

Other Intangible Assets, Net

98,619


98,895

Deferred Income Tax Asset

30,442


43,882

Other Long-Term Assets, Net

19,852


19,870

Total Other Assets

365,392


374,585









PLANT AND EQUIPMENT:




At Cost

1,193,090


1,140,232

Less - Accumulated Depreciation

779,935


754,654

Plant and Equipment, Net

413,155


385,578


$ 1,660,470


$ 1,567,214









CURRENT LIABILITIES:




Accounts Payable

$    226,536


$    208,307

Short-Term Debt

314,073


128,647

Accrued Liabilities

132,179


142,785

Total Current Liabilities

672,788


479,739





OTHER LIABILITIES:




Accrued Pension Cost

182,925


232,769

Accrued Employee Benefits

20,174


21,664

Accrued Postretirement Health Care Obligation

26,763


31,361

Other Long-Term Liabilities

56,388


51,464

Long-Term Debt

196,013


222,008

Total Other Liabilities

482,263


559,266





SHAREHOLDERS' INVESTMENT:




Common Stock

579


579

Additional Paid-In Capital

77,310


73,635

Retained Earnings

1,016,205


1,063,501

Accumulated Other Comprehensive Loss

(254,768)


(290,254)

Treasury Stock, at Cost

(333,907)


(319,252)

Total Shareholders' Investment

505,419


528,209


$ 1,660,470


$ 1,567,214

 

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(In Thousands)



Six Months Ended December





CASH FLOWS FROM OPERATING ACTIVITIES:

FY2019


FY2018

Net Loss

$                  (43,591)


$                  (31,383)

Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities:




Depreciation and Amortization

32,263


28,524

Stock Compensation Expense

3,177


3,869

Loss on Disposition of Plant and Equipment

66


1,553

Provision for Deferred Income Taxes

(19,550)


18,427

Equity in Earnings of Unconsolidated Affiliates 

(7,854)


(6,948)

Dividends Received from Unconsolidated Affiliates 

10,510


9,810

Changes in Operating Assets and Liabilities:




Accounts Receivable

(59,838)


29,900

Inventories

(157,401)


(126,075)

Other Current Assets

1,947


(3,402)

Accounts Payable, Accrued Liabilities and Income Taxes

22,382


16,808

Other, Net

1,862


(5,944)

   Net Cash Used in Operating Activities

(216,027)


(64,861)





CASH FLOWS FROM INVESTING ACTIVITIES:




Capital Expenditures

(34,234)


(45,597)

Proceeds Received on Disposition of Plant and Equipment

12


686

Cash Paid for Acquisitions, Net of Cash Acquired

(8,865)


(1,800)

   Net Cash Used in Investing Activities

(43,087)


(46,711)





CASH FLOWS FROM FINANCING ACTIVITIES:




Net Borrowings on Revolver

266,038


128,648

Long Term Note Payable

-


7,685

Debt Issuance Costs

-


(1,154)

Treasury Stock Purchases

(11,429)


(3,128)

Repayments of Long Term Debt

(4,875)


-

Stock Option Exercise Proceeds and Tax Benefits

1,823


2,939

Payments Related to Shares Withheld for Taxes for Stock Compensation

(257)


(1,147)

Cash Dividends Paid

(5,948)


(5,998)

   Net Cash Provided by Financing Activities

245,352


127,845





EFFECT OF EXCHANGE RATE CHANGES

(336)


1,090

NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH

(14,098)


17,363

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, Beginning 1

49,218


61,707

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, Ending 2

$                   35,120


$                   79,070


1 Included within Beginning Cash, Cash Equivalents, and Restricted Cash is approximately $4.3 million and $0 of restricted cash as of July 1, 2018 and July 2, 2017, respectively.


2 Included within Ending Cash, Cash Equivalents, and Restricted Cash is approximately $1.2 million and $12.7 million of restricted cash as of December 30, 2018 and December 31, 2017, respectively. 

SUPPLEMENTAL SEGMENT INFORMATION

Engines Segment:



 Three Months Ended December 


 Six Months Ended December 

(In Thousands)


FY2019


FY2018


FY2019


FY2018

     Net Sales


$ 272,018


$ 243,505


$ 391,108


$ 406,252










     Gross Profit as Reported


$   55,614


$   55,429


$   71,551


$   86,648

Business Optimization


665


703


1,088


1,128

     Adjusted Gross Profit


$   56,279


$   56,132


$   72,639


$   87,776










     Gross Profit % as Reported


20.4%


22.8%


18.3%


21.3%

     Adjusted Gross Profit %


20.7%


23.1%


18.6%


21.6%










     Segment Income (Loss) as Reported


$      4,658


$      8,722


$  (39,593)


$  (10,894)

Business Optimization


7,508


2,016


21,871


4,347

     Adjusted Segment Income (Loss)


$   12,166


$   10,738


$  (17,722)


$    (6,547)










     Segment Income (Loss) % as Reported


1.7%


3.6%


-10.1%


-2.7%

     Adjusted Segment Income (Loss) %


4.5%


4.4%


-4.5%


-1.6%


Second Quarter Highlights

  • Engine sales unit volumes increased by 17%, or approximately 274,000 engines, in the second quarter of fiscal 2019 compared to the same period last year. The increase was primarily due to timing of residential shipments in North America, continued growth in commercial sales and higher pricing. The increase was partially offset by declines in Europe and Australia due to higher channel inventories following prolonged dry weather conditions, as well as declines in service parts sales primarily from lower service distribution throughput.
  • Gross profit percentage decreased due to approximately 7% lower manufacturing volume, inefficiencies driven by lower service distribution throughput, and unfavorable sales mix, which includes lower service parts sales. Higher material costs and tariffs were largely offset by pricing increases.
  • GAAP ESG&A expenses increased by $4.9 million from last year due to higher investment in the upgrade to the company's ERP system. Adjusted ESG&A expenses decreased $0.9 million from last year due to lower employee compensation costs.

 

Products Segment:











 Three Months Ended December 


 Six Months Ended December 

(In Thousands)


FY2019


FY2018


FY2019


FY2018

     Net Sales


$ 254,627


$ 222,080


$ 427,670


$ 408,676










     Gross Profit as Reported


$   37,577


$   37,090


$   65,213


$   72,797

Business Optimization


834


754


3,713


1,522

     Adjusted Gross Profit


$   38,411


$   37,844


$   68,926


$   74,319










     Gross Profit % as Reported


14.8%


16.7%


15.2%


17.8%

     Adjusted Gross Profit %


15.1%


17.0%


16.1%


18.2%










     Segment Income (Loss) as Reported


$      4,411


$      8,320


$    (5,651)


$   12,003

Business Optimization


3,235


1,044


8,802


3,950

Litigation Settlement


-


-


2,000


-

Retailer Bankruptcy Bad Debt Expense


-


-


4,132


-

Acquisition Related Charges


170


-


235


-

     Adjusted Segment Income 


$      7,816


$      9,364


$      9,518


$   15,953










     Segment Income (Loss) % as Reported


1.7%


3.7%


-1.3%


2.9%

     Adjusted Segment Income %


3.1%


4.2%


2.2%


3.9%

Second Quarter Highlights

  • Net sales increased by $32.5 million, or 14.7%, from the same period last year. The increase was primarily due to higher sales of pressure washers, commercial mowers and job site equipment and higher pricing. The increase was partially offset by lower mower sales in Australia due to unfavorable weather conditions and lower sales of storm generators.
  • Gross profit percentage and adjusted gross profit percentage decreased by 190 basis points, primarily due to unfavorable sales mix and manufacturing inefficiencies. Higher pricing offset increases in material costs and tariff costs.
  • GAAP ESG&A expenses increased by $4.6 million and adjusted ESG&A expenses increased by $2.4 million compared to last year due to higher compensation costs, higher commissions expense on increased sales volume and higher costs associated with investments to upgrade the company's ERP system and growing commercial offerings.

Non-GAAP Financial Measures

Briggs & Stratton Corporation prepares its financial statements using Generally Accepted Accounting Principles (GAAP). When a company discloses material information containing non-GAAP financial measures, SEC regulations require that the disclosure include a presentation of the most directly comparable GAAP measure and a reconciliation of the GAAP and non-GAAP financial measures. Management's inclusion of non-GAAP financial measures in this release is intended to supplement, not replace, the presentation of the financial results in accordance with GAAP. Briggs & Stratton Corporation management believes that these non-GAAP financial measures, when considered together with the GAAP financial measures, provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionately positive or negative impact on results in any particular period. Management also believes that these non-GAAP financial measures enhance the ability of investors to analyze the company's business trends and to understand the company's performance. In addition, management may utilize non-GAAP financial measures as a guide in the company's forecasting, budgeting and long-term planning process. Non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial measures presented in accordance with GAAP. The following tables are reconciliations of the non-GAAP financial measures:

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

Adjusted Segment Information for the Three Month Periods Ended December

(In Thousands, except per share data)




 Three Months Ended December 



  FY2019
Reported


Adjustments1


 FY2019
Adjusted


  FY2018
Reported


Adjustments


  FY2018
Adjusted








Gross Profit













Engines


$         55,614


$                  665


$         56,279


$         55,429


$              703


$         56,132

Products


37,577


834


38,411


37,090


754


37,844

Inter-Segment Eliminations


(734)


-


(734)


347


-


347

Total


$         92,457


$               1,499


$         93,956


$         92,866


$           1,457


$         94,323














Engineering, Selling, General and Administrative Expenses













Engines


$         52,769


$               5,915


$         46,854


$         47,866


$                 90


$         47,776

Products


34,370


2,571


31,799


29,724


290


29,434

Total


$         87,139


$               8,487


$         78,653


$         77,590


$              380


$         77,210














Equity in Earnings of
Unconsolidated Affiliates













Engines


$           1,814


$                  927


$           2,741


$           1,159


$           1,223


$           2,382

Products


1,203


-


1,203


954


-


954

Total


$           3,017


$                  927


$           3,944


$           2,113


$           1,223


$           3,336














Segment Income













Engines


$           4,658


$               7,508


$         12,166


$           8,722


$           2,016


$         10,738

Products


4,411


3,405


7,816


8,320


1,044


9,364

Inter-Segment Eliminations


(734)


-


(734)


347


-


347

Total


$           8,335


$             10,913


$         19,248


$         17,389


$           3,060


$         20,449














Interest Expense


$         (7,482)


$                  248


$         (7,234)


$         (5,593)


$                   -


$         (5,593)














Income (Loss) before Income Taxes


(93)


11,161


11,068


12,180


3,060


15,240

Provision for Income Taxes


2,511


143


2,654


28,524


(24,010)


4,514

Net Income  (Loss)


$         (2,604)


$             11,018


$           8,414


$       (16,344)


$         27,070


$         10,726














Earnings (Loss) Per Share













Basic  


$            (0.07)


$                 0.27


$             0.20


$            (0.39)


$             0.64


$             0.25

Diluted


(0.07)


0.27


0.20


(0.39)


0.64


0.25



1

For the second quarter of fiscal 2019, business optimization expenses include $0.7 million ($0.6 million after tax) of non-cash charges related to accelerated depreciation, and $10.0 million ($9.0 million after tax) of cash charges related primarily to activities associated with the upgrade to the Company's ERP system, professional services, employee termination benefits, and plant rearrangement activities. Interest expense includes $0.2 million ($0.2 million after tax) for premiums paid to repurchase senior notes. The Company recognized $0.2 million ($0.1 million after tax) related to acquisition integration activities. Tax expense includes a $1.1 million charge associated with the Tax Cuts and Jobs Act of 2017 to record the impact of the inclusion of foreign earnings. 

 

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

Adjusted Segment Information for the Six Month Periods Ended December

(In Thousands, except per share data)




 Six Months Ended December 



FY2019
Reported


Adjustments1


FY2019
Adjusted


FY2018
Reported


Adjustments


FY2018
Adjusted








Gross Profit













Engines


$         71,551


$           1,088


$         72,639


$         86,648


$           1,128


$         87,776

Products


65,213


3,713


68,926


72,797


1,522


74,319

Inter-Segment Eliminations


(553)


-


(553)


(314)


-


(314)

Total


$      136,211


$           4,801


$      141,012


$      159,131


$           2,650


$      161,781














Engineering, Selling, General and Administrative Expenses













Engines


$      114,697


$         18,919


$         95,778


$      100,983


$           1,996


$         98,987

Products


73,302


11,456


61,846


63,079


2,428


60,651

Total


$      187,998


$         30,375


$      157,623


$      164,062


$           4,424


$      159,638














Equity in Earnings of
Unconsolidated Affiliates













Engines


$           3,553


$           1,864


$           5,417


$           3,441


$           1,223


$           4,664

Products


2,437


-


2,437


2,285


-


2,285

Total


$           5,990


$           1,864


$           7,854


$           5,726


$           1,223


$           6,949














Segment Income (Loss)













Engines


$       (39,593)


$         21,871


$       (17,722)


$       (10,894)


$           4,347


$         (6,547)

Products


(5,651)


15,169


9,518


12,003


3,950


15,953

Inter-Segment Eliminations


(553)


-


(553)


(314)


-


(314)

Total


$       (45,797)


$         37,040


$         (8,757)


$              795


$           8,297


$           9,092














Interest Expense


$       (12,643)


$              248


$       (12,395)


$       (10,550)


$                    -


$       (10,550)














Income before Income Taxes


(59,043)


37,288


(21,755)


(8,895)


8,297


(598)

Provision for Income Taxes


(15,452)


6,308


(9,144)


22,488


(22,501)


(13)

Net Income (Loss)


$       (43,591)


$         30,980


$       (12,611)


$       (31,383)


$         30,798


$             (585)














Earnings (Loss) Per Share













Basic  


$            (1.05)


$             0.74


$            (0.31)


$            (0.75)


$             0.73


$            (0.02)

Diluted


(1.05)


0.74


(0.31)


(0.75)


0.73


(0.02)



1

For the first six months of fiscal 2019, business optimization expenses include $1.4 million ($1.2 million after tax) of non-cash charges related to accelerated depreciation, and $28.6 million ($23.7 million after tax) of cash charges related primarily to activities associated with the upgrade to the Company's ERP system, professional services, employee termination benefits, and plant rearrangement activities. The Company recognized bad debt expense of $4.1 million ($3.1 million after tax) after a major retailer announced that it had filed for bankruptcy protection. The Company recognized $2.0 million ($1.5 million after tax) for amounts accrued related to a litigation settlement and $0.2 million ($0.1 million after tax) related to acquisition integration activities. Interest expense includes $0.2 million ($0.2 million after tax) for premiums paid to repurchase senior notes. Tax expense includes a $1.1 million charge associated with the Tax Cuts and Jobs Act of 2017 to record the impact of the inclusion of foreign earnings. 

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/briggs--stratton-corporation-reports-fiscal-2019-second-quarter-results-300783250.html

SOURCE Briggs & Stratton Corporation

Investor Relations, Mark A. Schwertfeger, Senior VP and Chief Financial Officer, (800) 365-2759