News Releases

Briggs & Stratton Corporation Reports Fiscal 2020 Third Quarter Results

May 7, 2020 at 7:00 AM EDT
Company taking aggressive action to control costs, enhance liquidity, and advance its strategic priorities

MILWAUKEE, May 7, 2020 /PRNewswire/ -- Briggs & Stratton Corporation (NYSE: BGG), a recognized global leader in providing power to get work done, today announced financial results for its third quarter of fiscal 2020, ended March 29, 2020

Fiscal Third Quarter 2020 Highlights:

  • Net sales of $474 million declined $107 million, or 18%, from the prior year, as pandemic-related actions customers took late in the quarter compounded anticipated short-term impacts in certain business areas.
  • Gross profit margin of 13.4% (GAAP) and adjusted gross profit margin of 15.2% decreased from gross profit margin of 16.7% (GAAP) and adjusted gross profit margin of 17.4%, respectively, last year.
  • GAAP net loss was $145 million, or $3.47 per share, compared with net income of $8.0 million, or $0.19 per diluted share, for the third quarter of fiscal 2019. Net loss for the third quarter of fiscal 2020 included non-cash goodwill impairment charges of $67 million related to a recent review of end markets inclusive of effects related to COVID-19. The company also recorded a $70 million non-cash valuation allowance against deferred tax assets.
  • Adjusted net loss was $10.8 million, or $0.26 per share, compared to net income of $14.6 million, or $0.34 per diluted share, for the prior year.
  • The company withdrew its full-year fiscal 2020 guidance on March 31, 2020, due to the uncertainly caused by the COVID-19 pandemic.

"As we work through these uncertain times, I want to acknowledge the exemplary efforts of our entire team to ensure the health and safety of our communities, customers, business partners and ourselves," said Briggs & Stratton Chairman, President and Chief Executive Officer Todd J. Teske.  "I could not be prouder of our employees' dedication and responsiveness to our customers' needs as we face these challenging times head on."

Teske continued, "Our third quarter performance reflects the unexpected and rapid impact this pandemic has had across the global economy. Our OEM customers and channel partners quickly decreased business activity in the latter half of March to protect workers and public health and safety, which impacted our anticipated shipments. Combined with actions we are taking as part of our repositioning plan, we are aggressively working to reduce costs, better manage working capital, and prioritize cash generation. These actions resulted in the reduction of inventories by $85 million during the quarter.  Lastly, we recently amended our credit agreement to enhance our liquidity to better navigate the economic impact of the pandemic as we continue our work to secure long-term capital for the business."

Teske concluded, "We remain focused on our strategic priorities, including the consolidation of our residential engine production from two facilities to one which will generate up to $14 million in savings, and the commercialization of our Vanguard commercial battery system. We recognized $5 million in cost savings during the quarter from our Business Optimization Program and improved operating efficiencies.  We are also focused on the strategic repositioning plan we announced in early March, which builds on our foundation as a clear leader in power application. We also must continue to address our financial position and liquidity. We will continue to assess business conditions and move forward with these strategic goals in mind."

Conference Call Information:

The company will host a conference call today, May 7, 2020, at 10:00 AM (ET) to review its third 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. To join, dial (877) 233-9136 and enter Conference ID 4887033. 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 impact of the COVID-19 pandemic on the company's business, financial position, results of operations and liquidity including its ability to continue as a going concern and its ability to access additional funding sources; 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 changes 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 March

(In Thousands, except per share data)





 Three Months Ended March 


 Nine Months Ended March 



FY2020


FY2019


FY2020


FY2019

NET SALES


$ 473,535


$580,196


$1,225,195


$1,364,655

COST OF GOODS SOLD


410,071


483,209


1,050,460


1,131,422

Gross Profit 


63,464


96,987


174,735


233,233










ENGINEERING, SELLING, GENERAL









AND ADMINISTRATIVE EXPENSES


74,897


79,521


232,758


267,553

GOODWILL IMPAIRMENT


67,480


-


67,480


-

EQUITY IN EARNINGS OF UNCONSOLIDATED AFFILIATES


(2,746)


(205)


(537)


5,786

Loss from Operations


(81,659)


17,261


(126,040)


(28,534)










INTEREST EXPENSE


(9,521)


(9,088)


(25,390)


(21,731)

OTHER INCOME (EXPENSE)


(1,773)


953


(2,904)


391

Loss before Income Taxes


(92,953)


9,126


(154,334)


(49,874)










PROVISION (CREDIT) FOR INCOME TAXES


51,653


1,121


39,253


(14,331)

Net Loss


$(144,606)


$    8,005


$  (193,587)


$    (35,543)










EARNINGS (LOSS) PER SHARE









Basic  


$      (3.47)


$      0.19


$        (4.65)


$        (0.86)

Diluted


$      (3.47)


$      0.19


$        (4.65)


$        (0.86)










WEIGHTED AVERAGE SHARES OUTSTANDING









Basic  


41,726


41,527


41,685


41,691

Diluted


41,726


41,527


41,685


41,691

 

Supplemental International Sales Information

(In Thousands)




 Three Months Ended March 


 Nine Months Ended March 



FY2020


FY2019


FY2020


FY2019

International sales based on product shipment destination


$138,771


$142,817


$385,406


$379,468

 

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets as of the End of March

(In Thousands)






CURRENT ASSETS:

FY2020


FY2019

Cash and Cash Equivalents

$              44,413


$              23,863

Accounts Receivable, Net

236,341


253,536

Inventories

526,514


525,210

Prepaid Expenses and Other Current Assets

36,381


34,682

Total Current Assets

843,649


837,291





OTHER ASSETS:




Goodwill

100,360


169,693

Investments

30,554


46,937

Other Intangible Assets, Net

95,064


97,465

Deferred Income Tax Asset

4,364


31,031

Other Long-Term Assets, Net

21,149


20,365

Right of Use Asset

103,924


-

Total Other Assets

355,415


365,491









PLANT AND EQUIPMENT:




At Cost

1,238,822


1,208,747

Less - Accumulated Depreciation

848,488


795,467

Plant and Equipment, Net

390,334


413,280


$         1,589,398


$         1,616,062









CURRENT LIABILITIES:




Accounts Payable

$            192,114


$            272,125

Short-Term Debt (1)

597,473


211,545

Accrued Liabilities

128,987


143,432

Short-Term Lease Obligations

11,710


-

Total Current Liabilities

930,284


627,102





OTHER LIABILITIES:




Accrued Pension Cost

209,318


179,487

Accrued Employee Benefits

21,110


20,122

Accrued Postretirement Health Care Obligation

22,035


25,294

Other Long-Term Liabilities

77,244


61,050

Long-Term Lease Obligations

90,067


-

Long-Term Debt

-


195,464

Total Other Liabilities

419,774


481,417





SHAREHOLDERS' INVESTMENT:




Common Stock

579


579

Additional Paid-In Capital

72,341


77,523

Retained Earnings

796,426


1,018,265

Accumulated Other Comprehensive Loss

(305,891)


(255,021)

Treasury Stock, at Cost

(324,115)


(333,803)

Total Shareholders' Investment

239,340


507,543


$         1,589,398


$         1,616,062



(1)

As a result of the revolving credit agreement ("ABL Facility") amendment entered into on April 27, 2020, the Company classifies its outstanding borrowings under the ABL facility as a short term liability, in compliance with U.S. Generally Accepted Accounting Principles, due to the requirement to directly apply cash deposits to repay outstanding loans

 

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(In Thousands)



Nine Months Ended March





CASH FLOWS FROM OPERATING ACTIVITIES:

FY2020


FY2019

Net Loss

$               (193,587)


$                 (35,543)

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




Depreciation and Amortization

54,819


47,385

Stock Compensation Expense

4,468


5,496

Goodwill and Tradename Impairment

67,480


-

Pension Settlement Expense

-


-

Loss on Disposition of Plant and Equipment

1,412


66

Provision for Deferred Income Taxes

36,294


(19,247)

Equity in Earnings of Unconsolidated Affiliates 

(3,302)


(8,403)

Dividends Received from Unconsolidated Affiliates 

10,376


10,510

Loss on Disposition of Unconsolidated Affiliates

1,000


-

Changes in Operating Assets and Liabilities:




Accounts Receivable

(41,447)


(70,876)

Inventories

(26,843)


(113,407)

Other Current Assets

(3,301)


(856)

Accounts Payable, Accrued Liabilities and Income Taxes

(75,314)


77,905

Other, Net

(1,633)


2,079

   Net Cash Used in Operating Activities

(169,578)


(104,891)





CASH FLOWS FROM INVESTING ACTIVITIES:




Capital Expenditures

(43,066)


(46,379)

Proceeds Received on Disposition of Plant and Equipment

2,680


31

Cash Paid for Acquisitions, Net of Cash Acquired

-


(8,865)

   Net Cash Used in Investing Activities

(40,386)


(55,213)





CASH FLOWS FROM FINANCING ACTIVITIES:




Net Borrowings on Revolver

241,684


163,509

Debt Issuance Costs

(6,161)


-

Treasury Stock Purchases

-


(11,937)

Repayments of Long Term Debt

-


(5,424)

Stock Option Exercise Proceeds and Tax Benefits

-


1,823

Payments Related to Shares Withheld for Taxes for Stock Compensation

(55)


(257)

Cash Dividends Paid

(10,136)


(11,891)

   Net Cash Provided by Financing Activities

225,332


135,823





EFFECT OF EXCHANGE RATE CHANGES

(570)


(239)

NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH

14,798


(24,520)

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, Beginning 1

30,342


49,218

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, Ending 2

$                   45,140


$                   24,698



1

Included within Beginning Cash, Cash Equivalents, and Restricted Cash is approximately $0.8 million and $4.3 of restricted cash as of June 30, 2019 and July 1, 2018, respectively.

2

Included within Ending Cash, Cash Equivalents, and Restricted Cash is approximately $0.7 million and $0.8 million of restricted cash as of March 29, 2020 and March 31, 2019, respectively. 

 

SUPPLEMENTAL SEGMENT INFORMATION


Engines Segment:




 Three Months Ended March 


 Nine Months Ended March 

(In Thousands)


FY2020


FY2019


FY2020


FY2019

     Net Sales


$269,619


$336,243


$  622,163


$727,351










     Gross Profit as Reported


$  45,418


$  72,529


$    97,753


$144,272

Engine Manufacturing Consolidation Project


6,184


-


18,136


-

Business Optimization


-


623


223


1,712

     Adjusted Gross Profit


$  51,602


$  73,152


$  116,112


$145,984










     Gross Profit % as Reported


16.8%


21.6%


15.7%


19.8%

     Adjusted Gross Profit %


19.1%


21.8%


18.7%


20.1%










     Segment Income (Loss) as Reported


$ (59,161)


$  22,833


$(101,312)


$ (16,579)

Engine Manufacturing Consolidation Project


6,184


-


18,136


-

Business Optimization


3,281


5,211


5,766


27,083

Goodwill Impairment


55,463


-


55,463


-

Business Realignment


944


-


944


-

     Adjusted Segment Income (Loss)


$    6,711


$  28,044


$  (21,003)


$  10,504










     Segment Income (Loss) % as Reported


-21.9%


6.8%


-16.3%


-2.3%

     Adjusted Segment Income (Loss) %


2.5%


8.3%


-3.4%


1.4%


Third Quarter Highlights

  • Engine sales unit volumes decreased by approximately 538,000 engines, or 26%, on lower shipments of residential engines. The majority of this decrease was anticipated due to timing of shipments based on the company's belief that channel partners would order sequentially later compared to last year. Shipments also declined due to the impact of the COVID-19 pandemic causing several customers to close down or reduce production operations in the latter half of March.
  • Net sales of $270 million declined 20% from a year ago, including an estimated negative impact of $10 million from the COVID-19 pandemic which reduced segment sales by three percentage points. The company estimates that COVID-19 reduced adjusted segment income of $6.7 million by approximately $4 million.
  • GAAP gross profit percentage compared to last year decreased 480 basis points and adjusted gross profit margin decreased 270 basis points, predominantly on lower production volumes, and unfavorable foreign exchange. The decrease in margins was partially offset by business optimization program savings and manufacturing efficiency improvements of nearly $6 million.
  • Segment results include a non-cash goodwill impairment charge of $55 million, reflecting current market conditions, including the uncertainties related to the COVID-19 pandemic.
  • Results also include: $10.4 million in charges consisting of: $6.2 million for the consolidation of the company's residential engine manufacturing facilities; $3.3 million in business optimization charges; and a $0.9 million charge related to the company's strategic repositioning plan.
  • GAAP engineering, selling, general and administrative expenses (ESG&A) declined by $3.3 million. Adjusted ESG&A decreased $0.4 million

          

Products Segment:












 Three Months Ended March 


 Nine Months Ended March 

(In Thousands)


FY2020


FY2019


FY2020


FY2019

     Net Sales


$229,368


$271,209


$  666,993


$698,879










     Gross Profit as Reported


$  17,789


$  24,348


$    77,786


$  89,402

Business Optimization


489


3,267


1,579


6,978

Litigation Settlement


1,700


-


1,700


-

     Adjusted Gross Profit


$  19,978


$  27,615


$    81,065


$  96,380










     Gross Profit % as Reported


7.8%


9.0%


11.7%


12.8%

     Adjusted Gross Profit %


8.7%


10.2%


12.2%


13.8%










     Segment Income (Loss) as Reported


$ (22,755)


$   (5,682)


$  (23,924)


$ (11,513)

Business Optimization


489


4,407


2,053


13,207

Goodwill Impairment


12,017


-


12,017


-

Litigation Settlement


1,700


-


1,700


2,000

Business Realignment


305




305



Retailer Bankruptcy Bad Debt Expense


-


-


-


4,132

Acquisition Related Charges


-


287


-


523

     Adjusted Segment Income 


$   (8,244)


$      (988)


$    (7,849)


$    8,349










     Segment Income % as Reported


-9.9%


-2.1%


-3.6%


-1.6%

     Adjusted Segment Income %


-3.6%


-0.4%


-1.2%


1.2%

Third Quarter Highlights

  • Net sales decreased by $42 million, or 15%, on lower shipments of turf and job site products as well as lower sales of portable generators. The company estimates that the COVID-19 pandemic reduced segment sales by approximately $30 million. The impact of the pandemic on segment income is estimated at approximately $7 million.
  • Gross profit percentage on a GAAP basis decreased by 120 basis points from a year ago. The adjusted gross profit percentage decreased 150 basis points, principally related to unfavorable sales mix, including the impact of COVID-19, which predominantly impacted turf product sales through the company's independent dealer channel, higher material costs and unfavorable foreign exchange. Offsetting the decrease in adjusted margin were improved manufacturing efficiencies and business optimization program savings of nearly $5 million.
  • Segment results include a non-cash goodwill impairment charge of $12 million, related to the job site business.
  • Results also include: $0.5 million in business optimization charges; a $1.7 million charge for litigation settlement, and a $0.3 million charge related to the company's strategic repositioning plan.
  • GAAP ESG&A expense decreased $1.3 million from a year ago. Adjusted ESG&A expense of $28.6 million declined $0.2 million from a year ago.

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 March

(In Thousands, except per share data)




 Three Months Ended March 



  FY2020
Reported


Adjustments1


 FY2020
Adjusted


  FY2019
Reported


Adjustments


  FY2019
Adjusted








Gross Profit













Engines


$         45,418


$           6,184


$         51,602


$         72,529


$         623


$         73,151

Products


17,789


2,189


19,978


24,348


3,267


27,615

Inter-Segment Eliminations


257


-


257


110


-


110

Total


$         63,464


$           8,373


$         71,837


$         96,987


$      3,890


$       100,876














Engineering, Selling, General and Administrative Expenses













Engines


$         45,983


$              907


$         45,076


$         49,287


$      3,835


$         45,452

Products


28,914


305


28,609


30,234


1,428


28,806

Total


$         74,897


$           1,212


$         73,685


$         79,521


$      5,263


$         74,258














Goodwill Impairment













Engines


$         55,463


$         55,463


$                   -


$                 -


$              -


$                   -

Products


$         12,017


12,017


-


-


-


-

Total


$         67,480


$         67,480


$                   -


$                 -


$              -


$                 -














Equity in Earnings of
Unconsolidated Affiliates













Engines


$          (3,133)


$           3,318


$              185


$             (408)


$         753


$              345

Products


387


-


387


203


-


203

Total


$          (2,746)


$           3,318


$              572


$             (205)


$         753


$              548














Segment Income (Loss)













Engines


$        (59,161)


$         65,872


$           6,711


$         22,833


$      5,211


$         28,044

Products


(22,755)


14,511


(8,244)


(5,682)


4,694


(988)

Inter-Segment Eliminations


257


-


257


110


-


110

Total


$        (81,659)


$         80,383


$          (1,276)


$         17,261


$      9,905


$         27,166














Interest Expense


$          (9,521)


$                  -


$          (9,521)


$          (9,088)


$           15


$          (9,073)

Other Income (Expense)


$          (1,773)


$                20


$          (1,753)


$              953


$              -


$              953














Income (Loss) before Income Taxes


(92,953)


80,403


(12,550)


9,126


9,920


19,046

Provision (Benefit) for Income Taxes


51,653


(53,360)


(1,707)


1,121


3,288


4,409

Net Income  (Loss)


$      (144,606)


$       133,763


$        (10,843)


$           8,005


$      6,632


$         14,637














Earnings (Loss) Per Share













Basic  


$            (3.47)


$             3.21


$            (0.26)


$             0.19


$        0.15


$             0.34

Diluted


(3.47)


3.21


(0.26)


0.19


0.15


0.34



1

For the third quarter of fiscal 2020, engine manufacturing consolidation charges include $4.0 million ($1.0 million after tax) of cash charges and $2.2 million ($0.6 million after tax) of non-cash charges related to the closure of the engine plant in Murray, Kentucky. Business optimization expenses include $2.8 million ($0.7 million after tax) of cash charges and $0.9 million ($0.2 million after tax) to the warehouse optimization program and the plan to onshore Commercial engine production. Goodwill Impairment charges include $67.5 million ($67.5 million after tax) of non-cash impairment charges related to the impairment of Job Site and Engines goodwill.  Gross profit includes $1.7 million ($0.4 million after tax) related to the settlement of a product liability matter. ESG&A includes $1.3 million ($0.3 million after tax) related to business realignment. Tax expense includes a $70.3. million charge to record a valuation allowance against deferred tax assets and a $7.5 million benefit as a result of the Coronavirus Aid and Relief and Economic Security Act (CARES Act).

 

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

Adjusted Segment Information for the Nine Month Periods Ended March

(In Thousands, except per share data)





 Nine Months Ended March 




FY2020
Reported


Adjustments1


FY2020
Adjusted


FY2019
Reported


Adjustments


FY2019
Adjusted










Gross Profit














Engines


$         97,753


$         18,359


$       116,112


$       144,272


$      1,712


$       145,984


Products


77,786


3,279


81,065


89,402


6,978


96,380


Inter-Segment Eliminations


(804)


-


(804)


(441)


-


(441)


Total


$       174,735


$         21,638


$       196,373


$       233,233


$      8,690


$       241,923
















Engineering, Selling, General and Administrative Expenses














Engines


$       141,498


$           2,648


$       138,850


$       163,997


$    22,754


$       141,243


Products


91,260


779


90,481


103,556


12,884


90,672


Total


$       232,758


$           3,427


$       229,331


$       267,552


$    35,638


$       231,915
















Goodwill Impairment














Engines


$         55,463


$         55,463


$                   -


$                 -


$              -


$                   -


Products


$         12,017


12,017


-


-


-


-


Total


$         67,480


$         67,480


$                   -


$                 -


$              -


$                 -
















Equity in Earnings of
Unconsolidated Affiliates














Engines


$          (2,104)


$           3,839


$           1,735


$           3,146


$      2,617


$           5,763


Products


1,567


-


1,567


2,640


-


2,640


Total


$             (537)


$           3,839


$           3,302


$           5,786


$      2,617


$           8,403
















Segment Income (Loss)














Engines


$      (101,312)


$         80,309


$        (21,003)


$        (16,579)


$    27,083


$         10,504


Products


(23,924)


16,075


(7,849)


(11,513)


19,862


8,349


Inter-Segment Eliminations


(804)


-


(804)


(441)


-


(441)


Total


$      (126,040)


$         96,384


$        (29,656)


$        (28,533)


$    46,945


$         18,411
















Interest Expense


$        (25,390)


$                   -


$        (25,390)


$        (21,731)


$         263


$        (21,468)


Other Income (Expense)


$          (2,904)


$                20


$          (2,884)


$              391


$              -


$              391
















Income (Loss) before Income Taxes


(154,334)


96,404


(57,930)


(49,874)


47,208


(2,666)


Provision (Benefit) for Income Taxes


39,253


(50,581)


(11,328)


(14,331)


9,602


(4,729)


Net Income (Loss)


$      (193,587)


$       146,985


$        (46,602)


$        (35,543)


$    37,606


$           2,063
















Earnings (Loss) Per Share














Basic  


$            (4.65)


$             3.53


$            (1.12)


$            (0.86)


$        0.90


$             0.04


Diluted


(4.65)


3.53


(1.12)


(0.86)


0.90


0.04



1

For the nine months ended March 29, 2020, engine manufacturing consolidation charges include $9.0 million ($5.2 million after tax) of cash charges and $9.1 million ($5.3 million after tax) of non-cash charges related to the closure of the engine plant in Murray, Kentucky. Business optimization expenses include $5.6 million ($3.2 million after tax) of cash charges and $2.2 million ($1.3 after tax) to the warehouse optimization program and the plan to onshore Commercial engine production. Goodwill Impairment charges include $67.5 million ($67.5 million after tax) of non-cash impairment charges related to the impairment of Job Site and Engines goodwill. Gross profit includes $1.7 million ($1.0 million after tax) related to the settlement of a product liability matter.  ESG&A includes $1.3 million ($0.8 million after tax) related to business realignment. Tax expense includes a $70.3 million charge to record a valuation allowance against deferred tax assets and a $7.5 million benefit as a result of the Coronavirus Aid and Relief and Economic Security Act (CARES Act).

 

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SOURCE Briggs & Stratton Corporation

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