Briggs & Stratton Corporation (NYSE:BGG) Q2 2015 Earnings Conference Call - Final Transcript

Jan 22, 2015 • 10:00 am ET


Briggs & Stratton Corporation (NYSE:BGG) Q2 2015 Earnings Conference Call - Final Transcript


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Good day, and ladies gentlemen, and welcome to the Briggs & Stratton 2015 Quarterly Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session and instructions will be given at that time. [Operator Instructions] Please note, today's conference is being recorded. I would now hand the conference over to Dave Rodgers. Please go ahead.

David Rodgers

Good morning, and welcome to the Briggs & Stratton Fiscal 2015 Second Quarter Earnings Conference Call. I'm Dave Rogers, Chief Financial Officer, and joining me today is Todd Teske, our Chairman, President and Chief Executive Officer.

Today's presentation and our answers to your questions will include forward-looking statements. These statements are based on our current assessment of the markets we operate in. Actual results could differ materially from any stated or implied projections due to changes in one or more of the factors as described in the Safe Harbor section of today's earnings release and in our filings with the SEC. We'll also make reference to certain non-GAAP financial measures during today's call. Additional information regarding these financial measures, including reconciliations to comparable U.S. GAAP measures, is available in our earnings release and in our SEC filings.

This conference call will be made available on our website approximately two hours after the end of this call. A phone replay will also be available within a few hours of the completion of this call.

Now here's Todd.

Todd Teske

Good morning, everyone, and thank you for joining us today. As we announced in our release sent out last night, our sales for the second quarter of fiscal 2015 were approximately $444 million, an increase from last year of 6.6% or $28 million. In addition to increased sales, we also improved earnings from last year. Net income adjusted to exclude restructuring charges was $11.9 million in the quarter, an increase of $9.6 million from last year's net income of $2.3 million.

Accordingly, adjusted diluted earnings per share for the quarter were $0.26 compared to $0.05 per share in the prior year. The higher sales compared with the prior year reflects our first full quarter of ownership of Allmand Bros., which is in line with expectations we had for this acquisition. In addition, we saw sales increases in snow throwers, pressure washers and our commercial lawn equipment.

In addition, due to share gains we had made in particular with our larger engines for riding equipment, we had a favorable mix of engines sold that benefited not only sales but also our margins in the quarter.

We did experience some sales headwinds in the quarter. Total engine units shipped were lower due to higher inventory in the channel following this past lawn and garden season. We also saw lower sales in power generation as well as some slightly lower sales of power products in certain international regions due to slowing economies and uncertain consumer sentiment.

The snow season got off to an early start this season, with snow falling across many portions