Briggs & Stratton Corporation reports results for the fourth quarter and 12 months of fiscal 2011

Aug. 11, 2011 /PRNewswire via COMTEX

Briggs & Stratton Corporation announced financial results for its fourth fiscal quarter and year ended July 3, 2011.

Highlights:

Fiscal 2011 consolidated net sales were $2.1 billion, an increase of 4.0% from fiscal 2010. Fourth quarter fiscal 2011 consolidated net sales were $605.2 million, or 1.7% lower than the fourth quarter of fiscal 2010.
Fiscal 2011 consolidated net income of $24.4 million declined by $12.3 million from fiscal 2010. Fourth quarter fiscal 2011 consolidated net loss of $17.8 million declined by $36.0 million from net income reported in the fourth quarter of fiscal 2010.
The company recorded a non-cash goodwill impairment charge of $49.5 million during the fourth quarter of fiscal 2011 related to the Power Products segment.
Adjusted consolidated net income for fiscal 2011 was $63.2 million, which was 14.4% higher than fiscal 2010 adjusted consolidated net income.
Adjusted consolidated net income for the fourth quarter of fiscal 2011 was $16.5 million, which was lower by $1.7 million or 9.2% compared to fiscal 2010 consolidated net income.
Board of Directors authorizes $50 million share repurchase program.
Net debt decreased in fiscal 2011 by $71.5 million.

“We are pleased with our fiscal 2011 results when considering the significant challenges that have confronted the U.S. lawn and garden market,” commented Todd J. Teske, Chairman, President & Chief Executive Officer of Briggs & Stratton. “Sales growth in our international markets continued through the fourth quarter of fiscal 2011. This diversification of our customer base helped us deliver 14.4% growth in adjusted consolidated net income in a year that the North American consumer lawn and garden market has declined double-digits.” Teske continued, “The Board’s authorization of a $50 million share repurchase program reflects continued confidence in our strategy, the long-term prospects of the business and our commitment to increase shareholder value. Our business continues to generate healthy cash flow, which allows us to opportunistically repurchase common shares while maintaining the flexibility to make strategic investments as we grow our business.”

Consolidated Results:

Consolidated net sales for the fourth quarter of fiscal 2011 were $605.2 million, a decrease of $10.4 million or 1.7% when compared to the same period a year ago. The fiscal 2011 fourth quarter consolidated net loss was $17.8 million or $0.36 per diluted share. The fourth quarter of fiscal 2010 consolidated net income was $18.2 million or $0.36 per diluted share.

Included in consolidated net income for the fourth quarter of fiscal 2011 was a $49.5 million non-cash pre-tax charge associated with the impairment of Power Products segment goodwill ($34.3 million after tax or $0.68 per diluted share). After considering the impact of the non-cash goodwill impairment, adjusted consolidated net income for the fourth quarter of fiscal 2011 was $16.5 million or $0.32 per diluted share, which was lower by $1.7 million or $0.04 per diluted share compared to fiscal 2010 consolidated net income of $18.2 million or $0.36 per diluted share. The impairment charge is a non-cash expense that did not adversely affect the company’s debt position, cash flow, liquidity or compliance with financial covenants under its credit facilities. No impairment charges were recorded within the Engines segment.

Consolidated net sales for fiscal 2011 were $2.1 billion, an increase of $82.1 million or 4.0% when compared to the same period a year ago. Fiscal 2011 consolidated net income was $24.4 million or $0.48 per diluted share. Fiscal 2010 consolidated net income was $36.6 million or $0.73 per diluted share.

Included in consolidated net income for fiscal 2011 was the aforementioned $49.5 million non-cash pre-tax charge associated with the impairment of Power Products segment goodwill ($34.3 million after tax or $0.68 per diluted share), a $3.5 million pre-tax charge ($2.2 million after tax or $0.04 per diluted share) related to previously announced organization changes and $3.9 million of additional pre-tax costs ($2.4 million after tax or $0.05 per diluted share) associated with the redemption premium of the 8.875% Senior Notes and the write-off of the related deferred financing costs. Included in consolidated net income for fiscal 2010 was a litigation settlement of $30.6 million ($18.7 million after-tax or $0.37 per diluted share).After considering the impact of items related to the goodwill impairment, organization changes, debt redemption and litigation settlement, adjusted consolidated net income for fiscal 2011 was $63.2 million or $1.25 per diluted share, which was higher by $8.0 million or $0.15 per diluted share compared to fiscal 2010 adjusted consolidated net income of $55.3 million or $1.10 per diluted share.