News Details
Oshkosh Corporation Reports Fiscal 2020 First Quarter Results
Jan. 29, 2020
Reaffirms Fiscal 2020
Declares Quarterly Cash Dividend of
Consolidated net sales in the first quarter of fiscal 2020 decreased 6.0 percent to
Consolidated operating income in the first quarter of fiscal 2020 decreased 32.0 percent to
“We delivered first quarter results, including sales of
“During the quarter, our defense segment received a Joint Light Tactical Vehicle (JLTV) order for just over
“It’s still early in the year, but there are a number of positive items that give us confidence in reaffirming our full year earnings per share estimate range of
Factors affecting first quarter results for the Company’s business segments included:
Access Equipment - Access equipment segment net sales in the first quarter of fiscal 2020 decreased 13.1 percent to
Access equipment segment operating income in the first quarter of fiscal 2020 increased 3.9 percent to
Defense - Defense segment net sales for the first quarter of fiscal 2020 increased 6.2 percent to
Defense segment operating income in the first quarter of fiscal 2020 decreased 56.5 percent to
Fire & Emergency - Fire & emergency segment net sales for the first quarter of fiscal 2020 decreased 11.2 percent to
Fire & emergency segment operating income in the first quarter of fiscal 2020 decreased 22.3 percent to
Commercial - Commercial segment net sales for the first quarter of fiscal 2020 increased 0.9 percent to
Commercial segment operating income in the first quarter of fiscal 2020 decreased 4.8 percent to
Corporate - Corporate operating costs in the first quarter of fiscal 2020 increased
Interest Expense Net of Interest Income - Interest expense net of interest income in the first quarter of fiscal 2020 increased
Provision for Income Taxes - The Company recorded income tax expense in the first quarter of fiscal 2020 of
Share Repurchases –The Company repurchased 128,869 shares of Common Stock for
Fiscal 2020 Expectations
The Company reaffirmed its fiscal 2020 diluted earnings per share estimate range of
Dividend Announcement
The Company’s Board of Directors today declared a quarterly cash dividend of
Conference Call
The Company will host a conference call at
Forward Looking Statements
This news release contains statements that the Company believes to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including, without limitation, statements regarding the Company’s future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations, are forward-looking statements. When used in this news release, words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “project” or “plan” or the negative thereof or variations thereon or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond the Company’s control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include the cyclical nature of the Company’s access equipment, commercial and fire & emergency markets, which are particularly impacted by the strength of
About
At
________
®, ™ All brand names referred to in this news release are trademarks of
|
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
||||||||
(In millions, except share and per share amounts; unaudited) |
||||||||
|
|
Three Months Ended
|
||||||
|
|
2019 |
|
2018 |
||||
Net sales |
|
$ |
1,695.1 |
|
|
$ |
1,803.4 |
|
Cost of sales |
|
|
1,405.6 |
|
|
|
1,475.1 |
|
Gross income |
|
|
289.5 |
|
|
|
328.3 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
|
173.4 |
|
|
|
158.6 |
|
Amortization of purchased intangibles |
|
|
7.0 |
|
|
|
9.2 |
|
Total operating expenses |
|
|
180.4 |
|
|
|
167.8 |
|
Operating income |
|
|
109.1 |
|
|
|
160.5 |
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
Interest expense |
|
|
(13.1 |
) |
|
|
(13.7 |
) |
Interest income |
|
|
1.3 |
|
|
|
2.2 |
|
Miscellaneous, net |
|
|
(0.4 |
) |
|
|
(1.2 |
) |
Income before income taxes and earnings (losses) of unconsolidated affiliates |
|
|
96.9 |
|
|
|
147.8 |
|
Provision for income taxes |
|
|
20.7 |
|
|
|
39.7 |
|
Income before earnings (losses) of unconsolidated affiliates |
|
|
76.2 |
|
|
|
108.1 |
|
Equity in earnings (losses) of unconsolidated affiliates |
|
|
(0.5 |
) |
|
|
0.9 |
|
Net income |
|
$ |
75.7 |
|
|
$ |
109.0 |
|
|
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.11 |
|
|
$ |
1.53 |
|
Diluted |
|
|
1.10 |
|
|
|
1.51 |
|
|
|
|
|
|
|
|
|
|
Basic weighted-average shares outstanding |
|
|
68,098,220 |
|
|
|
71,464,489 |
|
Dilutive equity-based compensation awards |
|
|
843,307 |
|
|
|
637,337 |
|
Diluted weighted-average shares outstanding |
|
|
68,941,527 |
|
|
|
72,101,826 |
|
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(In millions; unaudited) |
||||||||
|
|
|
|
2019 |
||||
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
264.0 |
|
|
$ |
448.4 |
|
Receivables, net |
|
|
911.6 |
|
|
|
1,082.3 |
|
Unbilled receivables, net |
|
|
544.0 |
|
|
|
549.5 |
|
Inventories, net |
|
|
1,430.7 |
|
|
|
1,249.2 |
|
Other current assets |
|
|
80.3 |
|
|
|
78.9 |
|
Total current assets |
|
|
3,230.6 |
|
|
|
3,408.3 |
|
Property, plant and equipment: |
|
|
|
|
|
|
|
|
Property, plant and equipment |
|
|
1,356.5 |
|
|
|
1,360.9 |
|
Accumulated depreciation |
|
|
(797.7 |
) |
|
|
(787.3 |
) |
Property, plant and equipment, net |
|
|
558.8 |
|
|
|
573.6 |
|
|
|
|
1,001.4 |
|
|
|
995.7 |
|
Purchased intangible assets, net |
|
|
425.5 |
|
|
|
432.3 |
|
Other long-term assets |
|
|
339.9 |
|
|
|
156.4 |
|
Total assets |
|
$ |
5,556.2 |
|
|
$ |
5,566.3 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Revolving credit facilities and current maturities of long-term debt |
|
$ |
— |
|
|
$ |
— |
|
Accounts payable |
|
|
612.7 |
|
|
|
795.5 |
|
Customer advances |
|
|
407.2 |
|
|
|
382.0 |
|
Payroll-related obligations |
|
|
125.7 |
|
|
|
183.6 |
|
Income taxes payable |
|
|
32.8 |
|
|
|
73.5 |
|
Other current liabilities |
|
|
330.8 |
|
|
|
307.3 |
|
Total current liabilities |
|
|
1,509.2 |
|
|
|
1,741.9 |
|
Long-term debt, less current maturities |
|
|
819.2 |
|
|
|
819.0 |
|
Other long-term liabilities |
|
|
546.7 |
|
|
|
405.6 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
Shareholders’ equity |
|
|
2,681.1 |
|
|
|
2,599.8 |
|
Total liabilities and shareholders’ equity |
|
$ |
5,556.2 |
|
|
$ |
5,566.3 |
|
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(In millions; unaudited) |
||||||||
|
|
Three Months Ended |
||||||
|
|
2019 |
|
2018 |
||||
Operating activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
75.7 |
|
|
$ |
109.0 |
|
Depreciation and amortization |
|
|
28.0 |
|
|
|
28.7 |
|
Stock-based compensation expense |
|
|
9.4 |
|
|
|
7.9 |
|
Deferred income taxes |
|
|
0.8 |
|
|
|
(1.0 |
) |
Gain on sale of assets |
|
|
(8.6 |
) |
|
|
(0.8 |
) |
Foreign currency transaction (gains) losses |
|
|
(1.3 |
) |
|
|
(0.2 |
) |
Other non-cash adjustments |
|
|
0.4 |
|
|
|
(0.9 |
) |
Changes in operating assets and liabilities |
|
|
(254.3 |
) |
|
|
(228.6 |
) |
Net cash used by operating activities |
|
|
(149.9 |
) |
|
|
(85.9 |
) |
|
|
|
|
|
|
|
|
|
Investing activities: |
|
|
|
|
|
|
|
|
Additions to property, plant and equipment |
|
|
(33.7 |
) |
|
|
(13.2 |
) |
Additions to equipment held for rental |
|
|
(7.5 |
) |
|
|
(5.9 |
) |
Proceeds from sale of equipment held for rental |
|
|
29.0 |
|
|
|
2.3 |
|
Other investing activities |
|
|
(1.0 |
) |
|
|
1.7 |
|
Net cash used by investing activities |
|
|
(13.2 |
) |
|
|
(15.1 |
) |
|
|
|
|
|
|
|
|
|
Financing activities: |
|
|
|
|
|
|
|
|
Repurchases of Common Stock |
|
|
(17.9 |
) |
|
|
(176.9 |
) |
Dividends paid |
|
|
(20.4 |
) |
|
|
(19.3 |
) |
Proceeds from exercise of stock options |
|
|
14.8 |
|
|
|
1.7 |
|
Other financing activities |
|
|
(0.3 |
) |
|
|
- |
|
Net cash used by financing activities |
|
|
(23.8 |
) |
|
|
(194.5 |
) |
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash |
|
|
2.5 |
|
|
|
0.8 |
|
Decrease in cash and cash equivalents |
|
|
(184.4 |
) |
|
|
(294.7 |
) |
Cash and cash equivalents at beginning of period |
|
|
448.4 |
|
|
|
454.6 |
|
Cash and cash equivalents at end of period |
|
$ |
264.0 |
|
|
$ |
159.9 |
|
|
||||||||||||||||||||||||
SEGMENT INFORMATION |
||||||||||||||||||||||||
(In millions; unaudited) |
||||||||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||||||
|
|
2019 |
|
2018 |
||||||||||||||||||||
|
|
External Customers |
|
Inter- segment |
|
Net Sales |
|
External Customers |
|
Inter- segment |
|
Net Sales |
||||||||||||
Access Equipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerial work platforms |
|
$ |
306.0 |
|
|
$ |
— |
|
|
$ |
306.0 |
|
|
$ |
337.7 |
|
|
$ |
— |
|
|
$ |
337.7 |
|
Telehandlers |
|
|
201.4 |
|
|
|
— |
|
|
|
201.4 |
|
|
|
269.5 |
|
|
|
— |
|
|
|
269.5 |
|
Other |
|
|
210.5 |
|
|
|
— |
|
|
|
210.5 |
|
|
|
219.3 |
|
|
|
— |
|
|
|
219.3 |
|
Total access equipment |
|
|
717.9 |
|
|
|
— |
|
|
|
717.9 |
|
|
|
826.5 |
|
|
|
— |
|
|
|
826.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defense |
|
|
492.6 |
|
|
|
0.5 |
|
|
|
493.1 |
|
|
|
463.8 |
|
|
|
0.3 |
|
|
|
464.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fire & Emergency |
|
|
260.0 |
|
|
|
2.4 |
|
|
|
262.4 |
|
|
|
291.2 |
|
|
|
4.3 |
|
|
|
295.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concrete placement |
|
|
75.7 |
|
|
|
— |
|
|
|
75.7 |
|
|
|
81.7 |
|
|
|
— |
|
|
|
81.7 |
|
Refuse collection |
|
|
115.9 |
|
|
|
— |
|
|
|
115.9 |
|
|
|
109.2 |
|
|
|
— |
|
|
|
109.2 |
|
Other |
|
|
32.3 |
|
|
|
0.3 |
|
|
|
32.6 |
|
|
|
30.7 |
|
|
|
0.6 |
|
|
|
31.3 |
|
Total commercial |
|
|
223.9 |
|
|
|
0.3 |
|
|
|
224.2 |
|
|
|
221.6 |
|
|
|
0.6 |
|
|
|
222.2 |
|
Corporate and intersegment eliminations |
|
|
0.7 |
|
|
|
(3.2 |
) |
|
|
(2.5 |
) |
|
|
0.3 |
|
|
|
(5.2 |
) |
|
|
(4.9 |
) |
|
|
$ |
1,695.1 |
|
|
$ |
— |
|
|
$ |
1,695.1 |
|
|
$ |
1,803.4 |
|
|
$ |
— |
|
|
$ |
1,803.4 |
|
|
|
Three Months Ended
|
||||||
|
|
2019 |
|
2018 |
||||
Operating income (loss): |
|
|
|
|
|
|
|
|
Access Equipment |
|
$ |
69.0 |
|
|
$ |
66.4 |
|
Defense |
|
|
30.9 |
|
|
|
71.1 |
|
Fire & Emergency |
|
|
31.0 |
|
|
|
39.9 |
|
Commercial |
|
|
17.8 |
|
|
|
18.7 |
|
Corporate and intersegment eliminations |
|
|
(39.6 |
) |
|
|
(35.6 |
) |
|
|
$ |
109.1 |
|
|
$ |
160.5 |
|
|
|
|
||||||
|
|
2019 |
|
2018 |
||||
Period-end backlog: |
|
|
|
|
|
|
|
|
Access Equipment |
|
$ |
1,011.1 |
|
|
$ |
1,697.2 |
|
Defense |
|
|
2,941.5 |
|
|
|
3,195.7 |
|
Fire & Emergency |
|
|
1,107.9 |
|
|
|
949.5 |
|
Commercial |
|
|
366.8 |
|
|
|
415.4 |
|
|
|
$ |
5,427.3 |
|
|
$ |
6,257.8 |
|
Non-GAAP Financial Measures
The Company reports its financial results in accordance with generally accepted accounting principles in
|
|
Three Months Ended
|
||||||
|
|
2019 |
|
2018 |
||||
Provision for income taxes (GAAP) |
|
$ |
20.7 |
|
|
$ |
39.7 |
|
Repatriation tax |
|
|
— |
|
|
|
(7.0 |
) |
Adjusted provision for income taxes (non-GAAP) |
|
$ |
20.7 |
|
|
$ |
32.7 |
|
|
|
|
|
|
|
|
|
|
Net income (GAAP) |
|
$ |
75.7 |
|
|
$ |
109.0 |
|
Repatriation tax |
|
|
— |
|
|
|
7.0 |
|
Adjusted net income (non-GAAP) |
|
$ |
75.7 |
|
|
$ |
116.0 |
|
|
|
|
|
|
|
|
|
|
Earnings per share-diluted (GAAP) |
|
$ |
1.10 |
|
|
$ |
1.51 |
|
Repatriation tax |
|
|
— |
|
|
|
0.10 |
|
Adjusted earnings per share-diluted (non-GAAP) |
$ |
1.10 |
$ |
1.61 |
1 This news release refers to GAAP (
View source version on businesswire.com: https://www.businesswire.com/news/home/20200129005239/en/
Financial:
Senior Vice President, Investor Relations
920.502.3266
Media:
Senior Vice President, Chief Marketing Officer
920.502.3670
Source: