0000950124-01-503573.txt : 20011026
0000950124-01-503573.hdr.sgml : 20011026
ACCESSION NUMBER: 0000950124-01-503573
CONFORMED SUBMISSION TYPE: 8-K
PUBLIC DOCUMENT COUNT: 2
CONFORMED PERIOD OF REPORT: 20011018
ITEM INFORMATION: Other events
ITEM INFORMATION: Financial statements and exhibits
FILED AS OF DATE: 20011018
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: BRIGGS & STRATTON CORP
CENTRAL INDEX KEY: 0000014195
STANDARD INDUSTRIAL CLASSIFICATION: ENGINES & TURBINES [3510]
IRS NUMBER: 390182330
STATE OF INCORPORATION: WI
FISCAL YEAR END: 0627
FILING VALUES:
FORM TYPE: 8-K
SEC ACT: 1934 Act
SEC FILE NUMBER: 001-01370
FILM NUMBER: 1761591
BUSINESS ADDRESS:
STREET 1: 12301 W WIRTH ST
CITY: WAUWATOSA
STATE: WI
ZIP: 53222
BUSINESS PHONE: 4142595333
MAIL ADDRESS:
STREET 1: P O BOX 702
CITY: MILWAUKEE
STATE: WI
ZIP: 53201
8-K
1
c65541e8-k.txt
FORM 8-K
--------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): OCTOBER 18, 2001
BRIGGS & STRATTON CORPORATION
(Exact name of registrant as specified in its charter)
1-1370
(Commission file number)
WISCONSIN 39-0182330
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
12301 WEST WIRTH STREET, WAUWATOSA, WISCONSIN 53222
(Address of principal executive offices) (Zip Code)
(414) 259-5333
(Registrant's telephone number, including area code)
--------------------------------------------------------------------------------
ITEM 5. OTHER EVENTS AND REGULATION FD DISCLOSURE.
On October 18, 2001, Briggs & Stratton Corporation announced its first
quarter financial results in the press release attached hereto as Exhibit 99.1.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits
Exhibit No. Exhibit
99.1 Press Release, dated October 18, 2001.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this amendment to be signed on its behalf by the
undersigned thereunto duly authorized.
BRIGGS & STRATTON CORPORATION
By: /s/ James E. Brenn
------------------------------
James E. Brenn
Senior Vice President and
Chief Financial Officer
Date: October 18, 2001
BRIGGS & STRATTON CORPORATION
(THE "REGISTRANT")
(COMMISSION FILE NO. 1-1370)
EXHIBIT INDEX
TO
CURRENT REPORT ON FORM 8-K
DATE OF REPORT: OCTOBER 18, 2001
INCORPORATED HEREIN FILED
EXHIBIT NO. DESCRIPTION BY REFERENCE TO HEREWITH
----------- ----------- ------------------- --------
99.1 Press release dated October 18, X
2001
EX-99.1
3
c65541ex99-1.txt
PRESS RELEASE DATED OCTOBER 18, 2001
EXHIBIT 99.1
BRIGGS & STRATTON CORPORATION REPORTS FIRST QUARTER
RESULTS THAT EXCEED EXPECTATIONS
MILWAUKEE, October 18, 2001/PR Newswire/-Briggs & Stratton
Corporation (NYSE:BGG)
Briggs & Stratton today announced a first quarter loss of $17.4 million or $.81
per diluted share. While greater than the $6.3 million or $.29 per share loss
experienced in the first quarter of last year, the result was better than
analysts' expectations for the quarter.
Lower earnings in the first quarter were basically the result of a 37% decrease
in engine production and higher interest expense. The significant decline in
production between years reflects our desire to lower our working capital in the
first half of the year. The increased interest expense is the result of
long-term debt added to make the Generac Portable Products acquisition.
ENGINES:
First quarter sales were $179.5 million versus $181.3 million in the prior year.
The slight decline is the result of a negative mix change to lower priced units,
offset by a 5% increase in unit sales, primarily to international customers. We
anticipate that the mix change will reverse in future quarters.
Operating income in the first quarter declined from a loss of $7.8 million last
year to a loss of $17.6 million this year. The primary reason for this decline
is the significant reduction in engine production between years. The 37% decline
in production unit volume occurred across the entire engine product line. We
project that we will produce a quantity of engines this fiscal year similar to
last year. However, for fiscal 2002, increased production is anticipated to
occur in the second half of the year.
GENERAC PORTABLE PRODUCTS:
Net sales in the first quarter were $55.1 million. Sales from the comparable
period a year ago when Briggs & Stratton did not own Generac were $45.1 million.
Increased generator sales were the primary reason for the improvement, although
it appears that the generator market has not recovered to the extent we
originally expected.
Reasonable restocking levels occurred at retail for the first time since the
post Y2K decline. However, currently the 2001 hurricane season resembles 2000,
which lacked the major activity that normally creates additional demand.
Operating income was $1.6 million this year, compared to $.6 million last year.
The improvement was the result of increases in operating efficiencies.
Integration of Generac into Briggs & Stratton continues to progress smoothly.
All major integrations will be accomplished by the end of calendar 2001.
OUTLOOK:
Our current estimates for fiscal 2002 continue to anticipate net income of
between $58 and $62 million. Sales at Generac are now anticipated to be less
than originally planned due to the light hurricane season. We are keeping our
projected demand for engines in the spring constant because it is too early to
understand how current events and economic conditions will influence purchase
decisions to be made five to seven months in the future. In response to the
economic environment, however, we are directing operations to effect tighter
expense controls.
First quarter results were better than anticipated, but this was primarily due
to the timing of sales and production between the first and second quarters. We
still anticipate that results in the first half of fiscal 2002 will be
significantly lower than those for the comparable period in fiscal 2001. In
years like fiscal 2001, where there have been adequate supplies of engines and
finished product to satisfy retail demand, the original equipment manufacturers
who buy our products have a tendency to take engines later in the fiscal year,
i.e., closer to retail demand. If repeated, as we expect, this tendency will
lower both our engines sales and plant utilization in the first half of fiscal
2002.
For the second quarter, sales are projected to be approximately $350 million;
$310 million for Engines and $40 million for Generac. Gross margins are
estimated to be 17%, reflecting lower plant utilization. Engineering, selling
and administrative expenses are anticipated to be $39 million and interest
expense is projected at $11.6 million.
The Company will host a conference call today at 10:00 AM (EDT) to review this
information. A live web cast of the conference call will be available on its
corporate website: http://www.briggsandstratton.com/shareholders. Also available
is a dial-in number to access the call real-time at (800) 606-8940. A replay
will be offered beginning approximately two hours after the call ends and will
be available for one week. Dial (800) 615-3210 to access the replay. The pass
code will be 5566531.
THIS RELEASE CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS THAT INVOLVE RISKS AND
UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE
PROJECTED IN THE FORWARD-LOOKING STATEMENTS. THE WORDS "ANTICIPATE", "BELIEVE",
"ESTIMATE", "EXPECT", "INTEND", "MAY", "OBJECTIVE", "PLAN", "SEEK", "THINK",
"WILL", AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING
STATEMENTS. THE FORWARD-LOOKING STATEMENTS ARE BASED ON THE COMPANY'S CURRENT
VIEWS AND ASSUMPTIONS AND INVOLVE RISKS AND UNCERTAINTIES THAT INCLUDE, AMONG
OTHER THINGS, OUR ABILITY TO SUCCESSFULLY FORECAST DEMAND FOR OUR PRODUCTS AND
APPROPRIATELY ADJUST OUR MANUFACTURING AND INVENTORY LEVELS; CHANGES IN OUR
OPERATING EXPENSES; OUR ABILITY TO SUCCESSFULLY INTEGRATE THE ACQUISITION OF
GENERAC PORTABLE PRODUCTS, INC. INTO OUR OPERATIONS; CHANGES IN INTEREST RATES;
THE EFFECTS OF WEATHER ON THE PURCHASING PATTERNS OF CONSUMERS AND ORIGINAL
EQUIPMENT MANUFACTURERS (OEMS); ACTIONS OF ENGINE MANUFACTURERS AND OEMS WITH
WHOM WE COMPETE; THE SEASONAL NATURE OF OUR BUSINESS; CHANGES IN LAWS AND
REGULATIONS, INCLUDING ENVIRONMENTAL AND ACCOUNTING STANDARDS; WORK STOPPAGES OR
OTHER CONSEQUENCES OF ANY DETERIORATION IN OUR EMPLOYEE RELATIONS; CHANGES IN
CUSTOMER AND OEM DEMAND; CHANGES IN PRICES OF PURCHASED RAW MATERIALS AND PARTS
THAT WE PURCHASE; CHANGES IN DOMESTIC ECONOMIC CONDITIONS, INCLUDING HOUSING
STARTS AND CHANGES IN CONSUMER DISPOSABLE INCOME; CHANGES IN FOREIGN ECONOMIC
CONDITIONS, INCLUDING CURRENCY RATE FLUCTUATIONS; AND OTHER FACTORS THAT MAY BE
DISCLOSED FROM TIME TO TIME IN OUR SEC FILINGS OR OTHERWISE. SOME OR ALL OF THE
FACTORS MAY BE BEYOND OUR CONTROL. WE CAUTION YOU THAT ANY FORWARD-LOOKING
STATEMENT REFLECTS ONLY OUR BELIEF AT THE TIME THE STATEMENT IS MADE. WE
UNDERTAKE NO OBLIGATION TO UPDATE ANY FORWARD-LOOKING STATEMENT TO REFLECT
EVENTS OR CIRCUMSTANCES AFTER THE DATE ON WHICH THE STATEMENT IS MADE.
BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
-----------------------------------
(IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED FISCAL SEPTEMBER
-----------------------------------
2001 2000
---- ----
NET SALES $ 221,329 $ 181,251
COST OF GOODS SOLD 199,807 155,453
------------- -------------
Gross Profit on Sales 21,522 25,798
ENGINEERING, SELLING, GENERAL
AND ADMINISTRATIVE EXPENSES 38,224 33,612
------------- -------------
Loss from Operations (16,702) (7,814)
INTEREST EXPENSE (10,422) (4,568)
OTHER INCOME (EXPENSE), Net 315 2,373
------------- -------------
Loss Before Credit for Income Taxes (26,809) (10,009)
CREDIT FOR INCOME TAXES (9,385) (3,705)
-------------- -------------
Net Loss $ (17,424) $ (6,304)
============= =============
Average Shares Outstanding 21,600 21,612
============= =============
BASIC EARNINGS PER SHARE $ (0.81) $ (0.29)
============= =============
Diluted Average Shares Outstanding 21,613 21,629
============= =============
DILUTED EARNINGS PER SHARE $ (0.81) $ (0.29)
============= =============
SEGMENT INFORMATION
-------------------
(IN THOUSANDS)
THREE MONTHS ENDED FISCAL SEPTEMBER
-----------------------------------
NET SALES: 2001 2000
--- ----
Engines $ 179,487 $ 181,251
Generac Portable Products 55,128 -
Other (13,286) -
------------- -------------
Total * $ 221,329 $ 181,251
============= =============
*Includes international sales of $ 56,709 $ 49,711
============= =============
INCOME (LOSS) FROM OPERATIONS:
Engines $ (17,620) $ (7,814)
Generac Portable Products 1,643 -
Other (725) -
------------- -------------
Total $ (16,702) $ (7,814)
============= =============
BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS AS OF THE END OF FISCAL SEPTEMBER 2001 AND 2000
---------------------------------------------------------------------------
(IN THOUSANDS)
CURRENT ASSETS: 2001 2000
---- ----
Cash and Cash Equivalents $ 24,600 $ 11,939
Accounts Receivable 156,315 140,370
Inventories 345,905 356,874
Other 57,233 56,698
------------- -------------
Total Current Assets 584,053 565,881
------------- -------------
OTHER ASSETS:
Investments 46,330 51,308
Prepaid Pension 43,835 8,398
Deferred Loan Costs 10,371 679
Capitalized Software 6,246 6,673
Intangible Assets 152,464 --
------------- -------------
Total Other Assets 259,246 67,058
------------- -------------
PLANT AND EQUIPMENT,
at Cost 903,899 851,135
Less - Accumulated
Depreciation 484,283 454,457
------------- -------------
Net Plant and Equipment 419,616 396,678
------------- -------------
$ 1,262,915 $ 1,029,617
============= =============
CURRENT LIABILITIES: 2001 2000
---- ----
Accounts Payable $ 104,282 $ 92,348
Domestic Notes Payable 3,300 198,126
Foreign Loans 16,427 16,015
Accrued Liabilities 119,355 125,534
------------- -------------
Total Current Liabilities 243,364 432,023
------------- -------------
OTHER LIABILITIES:
Deferred Revenue on Sale of
Plant & Equipment 15,498 15,649
Deferred Income Tax Liability 7,794 5,031
Accrued Pension Cost 15,067 11,671
Accrued Employee Benefits 13,001 12,831
Postretirement Health Care
Obligation 61,328 64,971
Long-Term Debt 508,280 98,564
------------- -------------
Total Other Liabilities 620,968 208,717
------------- -------------
SHAREHOLDERS' INVESTMENT:
Common Stock and Additional
Paid-in Capital 36,277 36,367
Retained Earnings 719,115 708,987
Accumulated Other Comprehensive
Loss (6,323) (5,684)
Unearned Compensation on
Restricted Stock (278) (384)
Treasury Stock, at Cost (350,208) (350,409)
------------- -------------
Total Shareholders' Investment 398,583 388,877
------------- -------------
$ 1,262,915 $ 1,029,617
============= =============
CONSOLIDATED STATEMENTS OF CASH FLOWS
-------------------------------------
(IN THOUSANDS)
THREE MONTHS ENDED FISCAL SEPTEMBER
-----------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES: 2001 2000
---- ----
Net Loss $ (17,424) $ (6,304)
Depreciation and Amortization 15,023 13,787
Loss on Disposition of Plant and Equipment 702 54
Pension Income, Net (6,964) (2,366)
Provision (Credit) for Deferred Income Taxes 3,534 (3)
Increase in Accounts Receivable (11,101) (137)
Increase in Inventories (24,205) (99,100)
(Increase) Decrease in Other Current Assets (734) 959
Increase (Decrease) in Accounts Payable and Accrued Liabilities 1,564 (32,731)
Other, Net (1,304) (2,727)
----------- -----------
Net Cash Used in Operating Activities (40,909) (128,568)
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to Plant and Equipment (18,155) (15,326)
Proceeds Received on Disposition of Plant and Equipment 287 844
----------- -----------
Net Cash Used in Investing Activities (17,868) (14,482)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net Borrowings on Loans and Notes Payable 136 151,976
Issuance Costs of Long-Term Debt (240) --
Dividends (6,691) (6,689)
Purchase of Common Stock for Treasury - (6,118)
Proceeds from Exercise of Stock Options 52 253
----------- -----------
Net Cash (Used in) Provided by Financing Activities (6,743) 139,422
----------- -----------
EFFECT OF EXCHANGE RATE CHANGES 1,377 (1,422)
----------- -----------
NET DECREASE IN CASH AND CASH EQUIVALENTS (64,143) (5,050)
CASH AND CASH EQUIVALENTS, Beginning 88,743 16,989
----------- -----------
CASH AND CASH EQUIVALENTS, Ending $ 24,600 $ 11,939
=========== ===========