News Details
OSHKOSH CORPORATION REPORTS FISCAL 2021 FIRST QUARTER RESULTS
Jan. 27, 2021
Solid Start to the Fiscal Year
Declares Quarterly Cash Dividend of
Consolidated net sales in the first quarter of fiscal 2021 decreased 7.0 percent to
Consolidated operating income in the first quarter of fiscal 2021 decreased 12.1 percent to
“We are pleased to announce fiscal first quarter sales of
“During the quarter, our Defense segment received a Joint Light Tactical Vehicle (JLTV) order for just over
“While the timing of recovery in our Access Equipment segment remains difficult to predict, we are confident in the strength and resilience of our businesses as we continue to adapt and pivot during the pandemic. Although we are not providing quantitative expectations with today’s announcement, we are seeing improvement in our end markets and believe that we are well positioned to grow revenues in the back half of fiscal 2021 and retain a positive long-term outlook,” said Jones.
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 2021 decreased 21.5 percent to
Access Equipment segment operating income in the first quarter of fiscal 2021 decreased 63.9 percent to
Defense - Defense segment net sales for the first quarter of fiscal 2021 increased 10.0 percent to
Defense segment operating income in the first quarter of fiscal 2021 increased 70.3 percent to
Fire & Emergency - Fire & Emergency segment net sales for the first quarter of fiscal 2021 increased 6.6 percent to
Fire & Emergency segment operating income in the first quarter of fiscal 2021 increased 13.6 percent to
Commercial - Commercial segment net sales for the first quarter of fiscal 2021 decreased 12.7 percent to
Commercial segment operating income in the first quarter of fiscal 2021 decreased 33.1 percent to
Corporate - Corporate operating costs in the first quarter of fiscal 2021 decreased
Interest Expense Net of Interest Income - Interest expense net of interest income in the first quarter of fiscal 2021 decreased
Provision for Income Taxes - The Company recorded income tax expense in the first quarter of fiscal 2021 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 overall impact of the COVID-19 pandemic on the Company’s business, results of operations and financial condition; the duration and severity of the COVID-19 pandemic; actions that may be taken by governmental authorities and others to address or otherwise mitigate the impact of the COVID-19 pandemic; the negative impacts of the COVID-19 pandemic on global economies and the Company’s customers, suppliers and employees; 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
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In millions, except share and per share amounts; unaudited) |
||||||||
|
|
Three Months Ended
|
||||||
|
|
2020 |
|
2019 |
||||
Net sales |
|
$ |
1,576.5 |
|
|
$ |
1,695.1 |
|
Cost of sales |
|
|
1,333.9 |
|
|
|
1,405.6 |
|
Gross income |
|
|
242.6 |
|
|
|
289.5 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
|
145.4 |
|
|
|
173.4 |
|
Amortization of purchased intangibles |
|
|
1.3 |
|
|
|
7.0 |
|
Total operating expenses |
|
|
146.7 |
|
|
|
180.4 |
|
Operating income |
|
|
95.9 |
|
|
|
109.1 |
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
Interest expense |
|
|
(12.0 |
) |
|
|
(13.1 |
) |
Interest income |
|
|
0.6 |
|
|
|
1.3 |
|
Miscellaneous, net |
|
|
(1.5 |
) |
|
|
(0.4 |
) |
Income before income taxes and losses of unconsolidated affiliates |
|
|
83.0 |
|
|
|
96.9 |
|
Provision for income taxes |
|
|
13.2 |
|
|
|
20.7 |
|
Income before losses of unconsolidated affiliates |
|
|
69.8 |
|
|
|
76.2 |
|
Equity in losses of unconsolidated affiliates |
|
|
(0.3 |
) |
|
|
(0.5 |
) |
Net income |
|
$ |
69.5 |
|
|
$ |
75.7 |
|
|
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.02 |
|
|
$ |
1.11 |
|
Diluted |
|
|
1.01 |
|
|
|
1.10 |
|
|
|
|
|
|
|
|
|
|
Basic weighted-average shares outstanding |
|
|
68,240,322 |
|
|
|
68,098,220 |
|
Dilutive equity-based compensation awards |
|
|
568,241 |
|
|
|
843,307 |
|
Diluted weighted-average shares outstanding |
|
|
68,808,563 |
|
|
|
68,941,527 |
|
CONDENSED CONSOLIDATED BALANCE SHEETS (In millions; unaudited) |
||||||||
|
|
2020 |
|
2020 |
||||
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
898.6 |
|
|
$ |
582.9 |
|
Receivables, net |
|
|
699.2 |
|
|
|
857.6 |
|
Unbilled receivables |
|
|
531.4 |
|
|
|
483.6 |
|
Inventories, net |
|
|
1,502.8 |
|
|
|
1,505.4 |
|
Other current assets |
|
|
117.4 |
|
|
|
106.3 |
|
Total current assets |
|
|
3,749.4 |
|
|
|
3,535.8 |
|
Property, plant and equipment: |
|
|
|
|
|
|
|
|
Property, plant and equipment |
|
|
1,391.8 |
|
|
|
1,397.0 |
|
Accumulated depreciation |
|
|
(836.6 |
) |
|
|
(831.1 |
) |
Property, plant and equipment, net |
|
|
555.2 |
|
|
|
565.9 |
|
|
|
|
1,018.7 |
|
|
|
1,009.5 |
|
Purchased intangible assets, net |
|
|
417.2 |
|
|
|
418.2 |
|
Other long-term assets |
|
|
275.9 |
|
|
|
286.5 |
|
Total assets |
|
$ |
6,016.4 |
|
|
$ |
5,815.9 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Revolving credit facilities and current maturities of long-term debt |
|
$ |
- |
|
|
$ |
5.2 |
|
Accounts payable |
|
|
532.2 |
|
|
|
577.8 |
|
Customer advances |
|
|
684.6 |
|
|
|
491.4 |
|
Payroll-related obligations |
|
|
134.4 |
|
|
|
150.8 |
|
Income taxes payable |
|
|
37.6 |
|
|
|
14.7 |
|
Other current liabilities |
|
|
322.7 |
|
|
|
345.2 |
|
Total current liabilities |
|
|
1,711.5 |
|
|
|
1,585.1 |
|
Long-term debt, less current maturities |
|
|
818.1 |
|
|
|
817.9 |
|
Other long-term liabilities |
|
|
554.2 |
|
|
|
562.2 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
Shareholders’ equity |
|
|
2,932.6 |
|
|
|
2,850.7 |
|
Total liabilities and shareholders’ equity |
|
$ |
6,016.4 |
|
|
$ |
5,815.9 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions; unaudited) |
||||||||
|
|
Three Months Ended
|
||||||
|
|
2020 |
|
2019 |
||||
Operating activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
69.5 |
|
|
$ |
75.7 |
|
Depreciation and amortization |
|
|
26.6 |
|
|
|
28.0 |
|
Stock-based compensation expense |
|
|
6.6 |
|
|
|
9.4 |
|
Deferred income taxes |
|
|
0.2 |
|
|
|
0.8 |
|
(Gain) loss on sale of assets |
|
|
2.7 |
|
|
|
(8.6 |
) |
Foreign currency transaction (gains) losses |
|
|
0.5 |
|
|
|
(1.3 |
) |
Other non-cash adjustments |
|
|
2.6 |
|
|
|
0.4 |
|
Changes in operating assets and liabilities |
|
|
259.4 |
|
|
|
(254.3 |
) |
Net cash provided (used) by operating activities |
|
|
368.1 |
|
|
|
(149.9 |
) |
|
|
|
|
|
|
|
|
|
Investing activities: |
|
|
|
|
|
|
|
|
Additions to property, plant and equipment |
|
|
(21.6 |
) |
|
|
(33.7 |
) |
Additions to equipment held for rental |
|
|
(1.9 |
) |
|
|
(7.5 |
) |
Proceeds from sale of equipment held for rental |
|
|
2.7 |
|
|
|
29.0 |
|
Other investing activities |
|
|
(2.5 |
) |
|
|
(1.0 |
) |
Net cash used by investing activities |
|
|
(23.3 |
) |
|
|
(13.2 |
) |
|
|
|
|
|
|
|
|
|
Financing activities: |
|
|
|
|
|
|
|
|
Repayment of debt |
|
|
(5.2 |
) |
|
|
- |
|
Repurchases of Common Stock |
|
|
(8.0 |
) |
|
|
(17.9 |
) |
Dividends paid |
|
|
(22.5 |
) |
|
|
(20.4 |
) |
Proceeds from exercise of stock options |
|
|
4.6 |
|
|
|
14.8 |
|
Other financing activities |
|
|
(1.2 |
) |
|
|
(0.3 |
) |
Net cash used by financing activities |
|
|
(32.3 |
) |
|
|
(23.8 |
) |
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash |
|
|
3.2 |
|
|
|
2.5 |
|
Increase (decrease) in cash and cash equivalents |
|
|
315.7 |
|
|
|
(184.4 |
) |
Cash and cash equivalents at beginning of period |
|
|
582.9 |
|
|
|
448.4 |
|
Cash and cash equivalents at end of period |
|
$ |
898.6 |
|
|
$ |
264.0 |
|
SEGMENT INFORMATION (In millions; unaudited) |
||||||||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||||||
|
|
2020 |
|
2019 |
||||||||||||||||||||
|
|
External Customers |
|
Inter- segment |
|
Net Sales |
|
External Customers |
|
Inter- segment |
|
Net Sales |
||||||||||||
Access Equipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerial work platforms |
|
$ |
278.0 |
|
|
$ |
- |
|
|
$ |
278.0 |
|
|
$ |
306.0 |
|
|
$ |
- |
|
|
$ |
306.0 |
|
Telehandlers |
|
|
122.9 |
|
|
|
- |
|
|
|
122.9 |
|
|
|
201.4 |
|
|
|
- |
|
|
|
201.4 |
|
Other |
|
|
161.5 |
|
|
|
1.3 |
|
|
|
162.8 |
|
|
|
210.5 |
|
|
|
- |
|
|
|
210.5 |
|
Total Access Equipment |
|
|
562.4 |
|
|
|
1.3 |
|
|
|
563.7 |
|
|
|
717.9 |
|
|
|
- |
|
|
|
717.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defense(a) |
|
|
550.0 |
|
|
|
0.3 |
|
|
|
550.3 |
|
|
|
499.9 |
|
|
|
0.5 |
|
|
|
500.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fire & Emergency(a) |
|
|
269.8 |
|
|
|
4.1 |
|
|
|
273.9 |
|
|
|
252.7 |
|
|
|
4.2 |
|
|
|
256.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refuse collection |
|
|
102.3 |
|
|
|
- |
|
|
|
102.3 |
|
|
|
115.9 |
|
|
|
- |
|
|
|
115.9 |
|
Concrete placement |
|
|
67.7 |
|
|
|
- |
|
|
|
67.7 |
|
|
|
75.7 |
|
|
|
- |
|
|
|
75.7 |
|
Other |
|
|
24.2 |
|
|
|
1.5 |
|
|
|
25.7 |
|
|
|
32.3 |
|
|
|
0.3 |
|
|
|
32.6 |
|
Total Commercial |
|
|
194.2 |
|
|
|
1.5 |
|
|
|
195.7 |
|
|
|
223.9 |
|
|
|
0.3 |
|
|
|
224.2 |
|
Corporate and intersegment eliminations |
|
|
0.1 |
|
|
|
(7.2 |
) |
|
|
(7.1 |
) |
|
|
0.7 |
|
|
|
(5.0 |
) |
|
|
(4.3 |
) |
|
|
$ |
1,576.5 |
|
|
$ |
- |
|
|
$ |
1,576.5 |
|
|
$ |
1,695.1 |
|
|
$ |
- |
|
|
$ |
1,695.1 |
|
|
|
Three Months Ended
|
||||||
|
|
2020 |
|
2019 |
||||
Operating income (loss): |
|
|
|
|
|
|
|
|
Access Equipment |
|
$ |
24.9 |
|
|
$ |
69.0 |
|
Defense(a) |
|
|
52.8 |
|
|
|
31.0 |
|
Fire & Emergency(a) |
|
|
35.1 |
|
|
|
30.9 |
|
Commercial |
|
|
11.9 |
|
|
|
17.8 |
|
Corporate and intersegment eliminations |
|
|
(28.8 |
) |
|
|
(39.6 |
) |
|
|
$ |
95.9 |
|
|
$ |
109.1 |
|
|
|
|
||||||
|
|
2020 |
|
2019 |
||||
Period-end backlog: |
|
|
|
|
|
|
|
|
Access Equipment |
|
$ |
771.5 |
|
|
$ |
1,011.1 |
|
Defense(a) |
|
|
3,399.9 |
|
|
|
2,979.6 |
|
Fire & Emergency(a) |
|
|
1,170.8 |
|
|
|
1,069.8 |
|
Commercial |
|
|
361.0 |
|
|
|
366.8 |
|
|
|
$ |
5,703.2 |
|
|
$ |
5,427.3 |
|
(a) |
On |
Non-GAAP Financial Measures
The Company reports its financial results in accordance with generally accepted accounting principles in
|
|
Three Months Ended
|
||||||
|
|
2020 |
|
2019 |
||||
Access Equipment segment operating income (GAAP) |
|
$ |
24.9 |
|
|
$ |
69.0 |
|
Restructuring-related costs |
|
|
8.0 |
|
|
|
- |
|
Adjusted Access Equipment segment operating income (non-GAAP) |
|
$ |
32.9 |
|
|
$ |
69.0 |
|
|
|
|
|
|
|
|
|
|
Defense segment operating income (GAAP) |
|
$ |
52.8 |
|
|
$ |
31.0 |
|
Acquisition costs |
|
|
0.7 |
|
|
|
- |
|
Adjusted Defense segment operating income (non-GAAP) |
|
$ |
53.5 |
|
|
$ |
31.0 |
|
|
|
|
|
|
|
|
|
|
Consolidated operating income (GAAP) |
|
$ |
95.9 |
|
|
$ |
109.1 |
|
Restructuring-related costs |
|
|
8.0 |
|
|
|
- |
|
Acquisition costs |
|
|
0.7 |
|
|
|
- |
|
Adjusted consolidated operating income (non-GAAP) |
|
$ |
104.6 |
|
|
$ |
109.1 |
|
|
|
|
|
|
|
|
|
|
Pre-tax Income (GAAP) |
|
$ |
83.0 |
|
|
$ |
96.9 |
|
Restructuring-related costs |
|
|
8.0 |
|
|
|
- |
|
Acquisition costs |
|
|
0.7 |
|
|
|
- |
|
Adjusted pre-tax income (non-GAAP) |
|
$ |
91.7 |
|
|
$ |
96.9 |
|
|
|
|
|
|
|
|
|
|
Provision for income taxes (GAAP) |
|
$ |
13.2 |
|
|
$ |
20.7 |
|
Income tax benefit of restructuring-related costs |
|
|
0.2 |
|
|
|
- |
|
Income tax benefit of acquisition costs |
|
|
0.1 |
|
|
|
- |
|
Adjusted provision for income taxes (non-GAAP) |
|
$ |
13.5 |
|
|
$ |
20.7 |
|
|
|
|
|
|
|
|
|
|
Net income (GAAP) |
|
$ |
69.5 |
|
|
$ |
75.7 |
|
Restructuring-related costs, net of tax |
|
|
7.8 |
|
|
|
- |
|
Acquisition costs, net of tax |
|
|
0.6 |
|
|
|
- |
|
Adjusted net income (non-GAAP) |
|
$ |
77.9 |
|
|
$ |
75.7 |
|
|
|
|
|
|
|
|
|
|
Earnings per share-diluted (GAAP) |
|
$ |
1.01 |
|
|
$ |
1.10 |
|
Restructuring-related costs, net of tax |
|
|
0.11 |
|
|
|
- |
|
Acquisition costs, net of tax |
|
|
0.01 |
|
|
|
- |
|
Adjusted earnings per share-diluted (non-GAAP) |
|
$ |
1.13 |
|
|
$ |
1.10 |
|
1 This news release refers to GAAP (
View source version on businesswire.com: https://www.businesswire.com/news/home/20210127005253/en/
Financial:
Senior Vice President, Investor Relations
920.502.3266
Media:
Senior Vice President, Chief Marketing Officer
920.502.3670
Source: