EnerSys (NYSE:ENS) Q1 2021 Earnings Conference Call - Final Transcript

Aug 13, 2020 • 09:00 am ET


EnerSys (NYSE:ENS) Q1 2021 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by and welcome to the Q1 2021 EnerSys Earnings Call.

[Operator Instructions]

I would now like to introduce your host of this conference call, Mr. David Shaffer, President and CEO. You may begin, sir.

David M. Shaffer

Thanks, Kevin. Good morning and thank you for joining us for our first quarter 2021 earnings call.

On the call with me this morning is Mike Schmidtlein, our Chief Financial Officer.

Last evening, we posted slides on our website 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 Investors section of our website at www.enersys.com.

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

Michael J. Schmidtlein

Thank you, Dave, 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, management's discussion and analysis of financial condition and results of operations set forth in our quarterly report on Form 10-Q for the fiscal quarter ended July 5, 2020, which was filed with the US 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 August 12, 2020, which is included on our website at www.enersys.com.

Now let me turn it back to you, Dave.

David M. Shaffer

Thanks, Mike.

I would like to spend the first few minutes of this morning's call providing an update on the state of the business and how COVID continues to present a challenge in the current environment. Later on, I'll provide more insight into each of our business segments.

As you know, the coronavirus continues to significantly impact economic activity around the world. As we discussed on our year-end call in June, following the initial outbreak and subsequent shelter-in-place actions in March and April, local state and governments forced the closure of electric forklift and Class 8 over-the-road truck OEM customers, which had an immediate and significant effect on order rates. Our Q1 results reflect these temporary shutdowns particularly in the motive business. While all of these customers' facilities have since reopened, they have done so at a reduced capacity due to market demand and supply chain disruptions. Our factories have remained open throughout, given we are essential, critical infrastructure suppliers in communications, information technology, defense, energy, transportation systems, and we have secured our global supply chain.

One of our primary areas of