EnerSys (NYSE:ENS) Q2 2020 Earnings Conference Call Transcript

Nov 07, 2019 • 09:00 am ET

Previous

EnerSys (NYSE:ENS) Q2 2020 Earnings Conference Call Transcript

Share
Close

Loading Event

Loading Transcript

Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by and welcome to the Q2 2020 EnerSys Earnings Conference Call. [Operator Instructions].

I would now like to hand the conference over to your speaker today David Shaffer, President and CEO. Thank you and please go ahead sir.

Executive
David M. Shaffer

Thanks Phoebe. Good morning and thank you for joining us. On the call with me this morning is Mike Schmidtlein, our CFO. Last evening we posted on our website slides that we will be referencing during the call this morning. If you didn't get a chance to see this information, you can go to the webcast tab in the Investor's section of our website at www.enersys.com.

I am going to ask Mike to cover information regarding forward-looking statements.

Executive
Michael J. Schmidtlein

Thank you, David, and good morning to everyone. As a reminder, we will be presenting certain forward-looking statements on this call that are based on management's current expectations and views regarding future events and operating performance, and are subject to uncertainties and changes in circumstances. Our actual results may differ materially from the forward-looking statements for a number of reasons.

Our forward-looking statements are applicable only as of the date of this presentation. For a list of factors which could affect our future results, including our earnings estimates, see forward-looking statements included in Item 2 of Management's Discussion and Analysis of Financial Condition and Results of Operation set forth in our Quarterly Report on Form 10-Q for the fiscal quarter ended September 29, 2019, which was filed with the U.S. Securities and Exchange Commission. In addition, we will also be presenting certain non-GAAP financial measures. For an explanation of the differences between the comparable GAAP financial information and the non-GAAP information, please see our company's Form 8-K, which includes our press release dated November 6, 2019, which is located on our website at www.enersys.com.

Now let me turn it back to you, David.

Executive
David M. Shaffer

Thanks Mike. Before covering our second quarter of fiscal 2020 results, I'd like to touch on a few important events that took place during the quarter that will help set the stage for the rest of our remarks.

Please turn to slide 3; in mid-September, we announced the acquisition of NorthStar from a Swedish private equity fund. In addition to a small assembly business in Stockholm, NorthStar has two production facilities in Springfield, Missouri, where it manufactures and distributes energy storage products, nearest in design and performance to EnerSys thin plate pure lead or TPPL products. The newest of the two factories also has additional floor space immediately available for our new TPPL high speed production line. As you may recall, we are going to have to take up two manufacturing lines to install the high speed line at our Warrensburg facility. We will now be able to preserve $100 million of revenue capacity at Warrensburg, on top of NorthStar's additional capacity, and will no longer require an inventory build in advance and installation.

This acquisition fits perfectly with our previous previously discussed strategy to