- Fiscal first quarter net sales were $329 million, an increase of $42 million, or 14.7%, from $287 million for the prior year, due to both higher shipments of generators related to hurricane activity and continued favorable momentum in sales of engines and products designed for commercial markets.
- Quarterly gross profit margin of 20.1% (GAAP) and adjusted gross profit margin of 20.5% increased from a gross profit margin of 18.3% last year primarily from the favorable storm contribution.
- First quarter net loss was $15.0 million (GAAP). Adjusted net loss was $11.3 million, an improvement from a net loss of $14.1 million last year. On a per-share basis, the loss was $0.36 (GAAP). Adjusted loss per share for the fiscal first quarter was $0.27, an improvement from a $0.34 loss per share for the first quarter of fiscal 2017.
- The company is increasing its fiscal 2018 earnings outlook to $1.41 to $1.58 per diluted share, before business optimization costs, from previous guidance of $1.31 to $1.48 per diluted share due to the impact to date of storm-related activity.
- The company will be hosting an investor day on November 1st in New York City (and webcast) where it will provide an overview of its strategy and long-term financial targets, discuss growth opportunities across its business and showcase global innovations.
"Our first quarter results were better than we expected, largely driven by strong demand for generators resulting from the recent hurricanes and early shipments of engines to fulfill customer orders," said Todd J. Teske, Chairman, President and Chief Executive Officer. "At the same time, we maintained positive momentum in our commercial offerings, delivering innovative products that make people more productive. In addition, favorable grass growing conditions in the U.S. and Europe extended from the late summer months into early fall. We continue to believe that U.S. lawn and garden channel inventories are near historic lows. All of this makes us well-positioned to achieve our sales growth outlook for the year."
Teske continued, "I am proud of the efforts of our team, who diligently worked with our retail partners throughout the development and aftermath of the storms to deliver generators to help people in the affected areas in their time of need. Our increased sales and earnings guidance for fiscal 2018 reflects the storm impact to date and does not include estimates beyond this period. While it is too early to quantify its impact, the active storm season this year has stimulated higher activity, particularly for our standby generator product offerings, as consumers and small businesses look for reliable back-up power solutions."
Updated fiscal 2018 guidance:
- Net sales are expected to be in a range of $1.90 billion to $1.95 billion, up from previous guidance of $1.87 billion to $1.92 billion.
- Net income is expected to be in a range of $60 million to $68 million (previously $56 million to $64 million), or $1.41 to $1.58 per diluted share (previously $1.31 to $1.48 per diluted share), prior to the impact of costs related to our business optimization program or the benefit of any share repurchases.
- Operating margins are expected to be approximately 5.8%-6.0% (previously 5.6% to 5.8%) prior to the impact of costs related to our business optimization program.
Investor Day Information
The company previously announced that it will be hosting an investor day on November 1, in New York City. The event begins at 9 a.m. Eastern Time and will end at approximately noon. The company will simultaneously webcast the audio portion and slides of its investor day presentation, which will be available on the company's investor website: http://investors.basco.com. A replay of the audio webcast will be available shortly after the conclusion of the event. Presentation materials and an archived recording of the event will be available on the company's website for at least 30 days.
Teske commented, "This event, a first for Briggs & Stratton, will help investors gain a deeper understanding about the growth opportunities for our business, the catalysts for growth and our roadmap supporting the long-range performance targets we will be introducing. We are optimistic about the future for Briggs & Stratton, as we diversify our business to serve higher-growth commercial segments and drive operational excellence across our global operations."