ENS - Earnings call transcript Q2 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by and welcome to the Q2 2020 EnerSys Conference Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions].

I would now like to hand the conference over to your speaker today, David Shaffer, President and CEO. you. Thank ahead, go sir. please And

David Shaffer

morning you joining thank Good for us. and

that morning call posted Schmidtlein, slides referencing with the this is the on will call during me website we On evening this Mike morning. be Last our our we CFO.

didn't website to see get Mike am to at go www.enersys.com. you this Investors the to chance tab regarding ask webcast I the in a forward-looking cover section you information, can If to of statements. information our going

Michael Schmidtlein

good and Dave, Thank everyone. to you, morning

As current a presenting events forward-looking views reminder, circumstances. are we will certain in are future changes and statements be that call subject based on and to and regarding expectations this operating performance on uncertainties management's and

number of actual reasons. the Our materially differ a results may from for forward-looking statements

are the presentation. of statements forward-looking date as only applicable this of Our

of For Analysis factors XX, of our Management's estimates, Commission. for see future XXXX, could Item on Securities ended Form financial statements the and filed our of which the Discussion US our condition Set earnings XX-Q fiscal September Exchange with affect X, a list quarter in results forth included in operation, forward-looking Quarterly and Report was results including which and

be non-GAAP presenting will measures. financial In we addition, also certain

which information the located the differences XXXX, an our For of on explanation non-GAAP www.enersys.com. comparable and GAAP our at information, Form which is between dated includes X, release November financial X-K, the website company's see please our press

Dave. it you, back turn me to let Now

David Shaffer

Mike. Thanks,

X, a stage acquisition we that rest mid-September, touch the equity that place of our quarter Before for a covering during our private second events the fund. to announced NorthStar Please XXXX turn of help like of quarter took the set from Slide remarks. will on I'd Swedish In Fiscal few important results, to the

has facilities The for TPPL Plate to speed floor storage the distributes our new two newest design addition two a Springfield, high factories NorthStar Lead nearest where immediately it additional in or and also line. products. products, TPPL Pure performance available EnerSys small [indiscernible] in Thin energy manufactures Missouri, has production to in production Stockholm, In business and of space

you facility. As two take Warrensburg] we install manufacturing line our going to have to the may up high at lines recall, speed to were

be TPPL preserve of will additional will of revenue premium no capacity previously This acquisition capacity with on We require it build will and our our increase to accelerate to able million sales. Warrensburg discussed $XXX able at EnerSys in installation. as of NorthStar's longer to now an perfectly inventory fits top strategy advance and products sales dramatically

quarters. of NorthStar coming versus and accelerate will our and a building to processes to to are manufacturing employee require The and additional the investment convert modest teams. growth over TPPL similar factories greenfield equipment, standards NorthStar on EnerSys production very production training ODYSSEY, NexSys installing build only the quality our The proven it of NorthStar dramatically teams the expertise will modest -- and products SBS and sites ordering new training and

will NorthStar amounts into Europe allow US market, a dramatic risks. a Enersys inventory, products reduction of has customers duty, and that transaction blue-chip of from and currency given and Europe significant this currently Lastly, loading the rebalancing freight factory in in imports

the forward. the to excited move and we capture, to provide extremely the as NorthStar integration, expansion EnerSys updates ongoing team capacity family welcome will are and regarding We synergy

the of acquisition the more during provide his the call. portion financial color will Mike on of aspects

that quarter September area event XX. fire significant second formation Kentucky Richmond, of in the took was plant The the our the of on place

any no employees were injuries for we very to there and or are responders which thankful. First foremost,

through and our product eventually business and costs We equipment are vast confident majority to interruption the in our the policies. recoup insurance replacement ability of

our in as guidance. sales third million reflected we in $XX our approximately for quarter, However, lose will

October, early Day at Investor Exchange website. available in third way, presentation on event our the our The our section the was investor New Stock of which major by the is York

our Thanks of point could or completed, in not recent of as we we two listened its attended modular modernization transformation better. have to the event, inflection of and believe to been reaching which our build expansion the you our EnerSys that is off key products a to markets acquisitions a system of the the the solution all timed down we've of any addressable to results the capitalize and with to we on drive Investor which process roadmap the during to we yet second Please Day X of our of laid ahead out for believe details [indiscernible] EPS that use quarter slide realistic us from waste and of $X.XX. enterprise. evolutionary an reinforces expect them. turn We opportunity

turn slide X. to Please

like I'd largely key in our line are markets of you progressing update calls. prior Now which to with on some

Power in as was Americas quarter for TPPL demand products strong our robust. Motive the Our remains business second

during Motive We In the year. prior further believe enable half quarter in of the the will our to expand of FYXX, year-on-year including Power grew acquisition production, XX% growth up compared represented ongoing over Americas sales. the Americas, and were TPPL Overall efforts the NorthStar, of organic sales to XX% orders first TPPL. in XXX%

are As Motive OEM traditional our customers. Power from call, discussed last factory on orders softening in EMEA our

Motive continues Asia We for EMEA in also due particularly Motive in seasonal second of return slow, to saw to China Asia EMEA, given rest TPPL current the with a continues limited which accelerate. we demand power stable. before seen quarter supply. to trade products climate hadn't largely to the power the in patterns lower year industry

sector. the President group Day, Shawn efforts relatively premium Americas Motive highlighting time O'Connell, our During our to the Investor transportation share is Power considerable increase EnerSys' spent of small in

a technology products trucking As transportation improve transportation agricultural in Americas to is spaces. you our a and business haul in the have sign into we ODYSSEY, for new markets automotive, continues vertical platform one up of number the TPPL we've adopted of know, and The them. long as customers that with premium TPPL we

is customers continues spending historic Alpha's broadband patterns to performance. global of that pent-up as consumption In quarters, services the which requires investments significant clear high system speed creating to team awaits particular, superior is CapEx, business remains brand one due to EMEA revenue near-term . has more delayed disrupted transportation, In demand, our out It spending be pressure. the XG. The Similar normal been from we which continues prior this ODYSSEY unleashing telecom the after broadband networks continues highly market restrict that streaming at networks soft. be modern delayed the had confident -- stressed including largest will sought to its be as in to be continues that to build

states' confirmed drive merger challenged approval deal last drive -- Our greater the should general, received has from spending. it's by and FCC attorney should is a be many note T-Mobile while Sprint, the currently that being

very aerospace Moving of critical and our business, sector. onto we pleased defense attractive another exciting are reached in part the mass have to

we've programs share excited term we're get to progress are and about time the once will gaining and these be in. in has taking this share the you the point, long tends continue position grow. to we're While EnerSys we [indiscernible], anticipate to it our for made to market been

on telecom, energy progress our slide customers. update our will DC validated A and power broadband, Please powerful fully initiatives. supply to Alpha that a truly for has already systems, Technologies and solution storage by turn are we the continued X, Group only ago, the integrated combination creating an year strategic and energy provider storage AC I acquisition been we of our closed now on on making provide the

which successful synergies, complete, essentially million that by on. $XX is focused our the integration FYXX, is and captured ahead our Alpha's target. making The customers have on rely EnerSys' annual in end high-quality of cultures, of initial should made aligned can products By we well

estimate total the we In of synergies original by the which addition, by $XX end million, will $XX reach FYXX, the million. target exceeds

well. Alpha's lithium-ion integration EnerSys is The also and of progressing programs

was combines storage last our management Motive lithium-ion As telecom sample telecom from rectifiers Power system and I with mentioned systems modules energy developed, a systems. on controller AlphaRacks' the our call, and

such offer We and demand are extending peak arbitrage autonomous shaving, as energy response this advanced features further capabilities. to

the this these niche additions grid, back driven disaster lithium fast-growing prone higher up photovoltaic an mitigate to important in industrial Outback markets. The storage for natural areas With commercial is to outages able peak wildfires energy other offering transition power this critical reported California we to and voltages, renewable storage utility and technology like applications. shaving is those in unstable and subsidiaries products program and will system energy the to be and our

Our meet the spending product to to times strategic significantly footprint. and to is NorthStar exciting It priority six the $XX be for able reduce to of second types. increase growing EnerSys' CapEx that and million major lead TPPL far approximately facilities will demand months manufacturing current rapidly capacity manufacturing manufacture and approximately to take our outstrips

capacity CapEx the $XX we at over capacity likely addition, output. will their during years, next to our additional further In spend million existing EnerSys their facilities two expand

beginning shipping the should be done should new approximately Our couple to current Missouri manufacturing years. line the the of capacity testing and completed TPPL are of end arrive high-speed and installation The $XXX million FYXX. the in by of during next be containers

Finally, with on XX-volt new products, product energy throughput. TPPL additives. have the block our carbon Motive Power significantly launched will we enhance This

TCO not does ownership allows maintenance margin customers. to or pose to process our significant achieve by a or carbon us total additional impact of the lower for offering free cost it improvements Although cost further production, a

ahead and growth global telecom. in exciting systems people, In maintenance continued out new in fully ODYSSEY system have extend storage new capitalize to global XG Power place the build including The and and lithium integrated will on broadband, our product the customer and the have systems growth integrated the allowing massive our of sales, experience share increased TPPL a life a for for services product. DC Motive battery NexSys management to infrastructure while for Motive power an including opportunities free and products we helping similar transportation, as the infrastructure the energy summary, for and brands

years uniquely growth three and with as storage industry certainty markets come. energy I After participate that EnerSys say complete will needs solutions for living grow and energy positioned for this to breathing CEO, many today can continue power to industrial to in is and of years that and

on provide that, Mike our on With information NorthStar additional details acquisition quarter now to the results, in guidance. third financial I'll ask further the

Michael Schmidtlein

Thanks, Dave.

Americas while XX% were starting you our sales quarter I'm X% the from webcast, of $XXX the $XXX net million XX% prior $XX our and to sales to Our a For those million. in and respected on regional year and XX% quarter and X, net increased of from up $XXX million decreases to decreased following quarter On acquisitions second XX% down to million at slide currency volume, price X%, EMEA's sales the Asia net X% second with look. XX% over along increase were basis, a in second due

acquisitions, negative X% a and had price price volume decline. less decrease, enjoyed currency Americas from volume in decreases and X% less XX% a currency, EMEA from X% X%

a down X% X% had volume and while line Asia Power at basis, and had foreign to sales XX% Power million. XX% X% price $XXX Motive a by Motive price On and were was million year-over-year up Declines. offset acquisitions. currency decrease product in X% was $XXX a X% X% in a volume, Power flat. decline declines Power volume currency while X% net XX% for Reserve Reserve had currency

Americas geographical product up to while was line Please and down down X% currency were slide X% XX% second was On declines. was now XXXX quarter was of sales basis, quarter to a down basis, X% first down Power fiscal net X%. a refer X%. compared Reserve sequential volume while X. Motive a driven down by and the Power EMEA On a was On Asia basis, X%

performance. consolidated Now a about few earnings comments adjusted our

X-K, analyzing these know, our my refer Please highlighted operating details we press my you company's diluted excluding comments concerning later all X, utilized November earnings highlighted items. and following operating XXXX items. concerning measures earnings in which per comments our exclude As to share Accordingly, non-GAAP performance, certain items. Form concerning includes our dated release company's highlighted specifically for

the to volume with year-over-year basis in Lower along approximately inefficiencies to to costs On and the basis, increased million $XX points. for incurred consolidated declines offset with Please adjusted X. operating operating now Kentucky. margin, $X were turn price the million commodity Richmond, slide quarter earnings XX a the down enough first not

GAAP declined $X restructuring million earnings the in year. basis in at were to a -- XX.X% compared prior expenses, from recorded On to and highlighted charges. a primarily our items XX related to X.X%. in XX.X% the $XX second pre-tax charges basis quarter operating $X points Excluded of operating sales when excluding XX% for QX, basis, Alpha our sequential million in on amortization million expenses second of quarter Operating

interruptions which volume our in charges, Richmond earnings an those operating XXX XX.X%, Excluding than Americas achieved year. Lower the the was segment basis the decrease. of quarter business of points created the lower in second last XX.X% percentage

million $X in of down from second our year quarter acquisition Americas X.X% to quarter up On to prior OE decreased operating million from EMEA, -- million from from quarter operating $XX from the primarily decreased $X volume. year XX second the in prior a down the last last due profit was and our Asia and from year approximately quarter's this lower but lower profit. margin earnings were X.X%. decreased dollars from in quarter in On last business X.X% and quarter. quarter volume. operating sequential in sequential the prior EMEA percentage the XX.X% basis a -- dollars primarily posted OE up volume. basis, also lower had X.X%, Americas flat The from a prior pricing basis, points the loss to from the percentage second first but last Europe's X.X% points from quarter's X.X% earnings and from of from quarter's -- declined XXX down basis year last were of X.X% last year's the a

OE approximately Asia's down the were $X year on dollars from and the quarter $X prior down volume. prior lower million in million

Please slide XX. to move

X, on XX% of million adjusted second earnings comparison in to an Slide consolidated As the prior of quarter our increase previously $XX operating year. was reflected

is the earnings net $XX $X Our year. Alpha The net improvement adjusted adjusted million consolidated than a transaction. higher prior million million earnings of $XX.X by in contributed the of result was the

our rate tax of deferred recorded full quarter's rate year XX%, the which Discrete Our the tax a of million XX% fiscal than year's end of asset second for a rate at for tax benefit quarter's Excluded most rate flat the XX% XX%. adjusted tax lower of was low range XX% was prior these is expectations the from XXXX's XX% and $XX items from to with quarter adjusted fiscal effective to XXXX. effective of prior of cause income rates of recent this reflect the variations, be Overall after to XX.X% will offset changes, and accounting. million excluding XX% after issued law purchase or intangible higher from dilution deductions in on taxes, million Swiss notional contributed X% the recorded increased on after-tax Alpha of rates increases Alpha considering including shares of was earnings to EPS asset, by tax $X amortization accretive interest, million. operating deferred future revenue tax seller, net assets $X.XX of in on Alpha in earnings. adjusted $XXX Swiss amortization the $XX was

We net $XX.X which shares million quarter the XXXX. of August in approximately Alpha issued million in to awaited third of the shares repurchased $X have expect XXXX fiscal our average or to transaction, $X.X million includes outstanding, of shares million nearly $X.X February the

we reminder, share have of a nearly authorized. $XX buybacks still As million

slide broadband intact, synergies Please certain acquisition telecom XX We major and Alpha realized Alpha's do The I remains to at not from continues have XX current to to included however, for for intend now spend and remains progress turn information, as planned as revenue and down these year-over-year logic patterns expected. results customers. year-to-date but slides on our detail. in cover XX. your transaction The

on cash nearly cash We agreement generated XXXX. X.X leverage million credit half have $XXX operations first in and $XXX hand still from is fiscal the million of our We times. ratio in of

Capital $XX expenditures were million.

day hand year of quarter. the We the nearly approximately on $XXX expect fiscal million fiscal $XXX CapEx XXth, cash our million on spending $XX first million XXXX. NorthStar of September purchase full utilized We the third to of in

below times the expect NorthStar. We leverage to or second remain half X.X our at of addition with the in

These of gross QX, will of were which quarter benefits with cost the will The Richmond's be likely near the by fiscal following of million of $X fiscal again XX%, our our lower in lead to quarter. is but comparable quarter per We profit approximately negated interruptions. incurred costs half P&L anticipate our in hit third one XXXX rate remain year. in

and the regards In approximately first in second have to impact had for our quarter. costs from share $X.XX quarters per each tariffs,

costs pressure expect as NorthStar with nearly in Although we margins The will year impact have basis similar we provide our European US the factories beginning currently decline by acquisition from along dramatically. next points. higher on will cost impacted to freight XXX relief the shipments are still our transoceanic fiscal half, second freight fiscal to costs HX. Tariffs assessing

$X.XX will We primarily which per output lost. of in per between integration of fiscal that restructuring occurred late of impact quarter share three expect and to programs. of from an or our charge been generate for continuing facility fiscal our our $XX have costs the amortization as from adjusted Kentucky excludes charges quarter diluted share of and NorthStar, more quarter expected negatively our net third earnings XXXX, equivalent revenues net second at million more $X.XX third related the fire to $X.XX weeks costs by or Richmond, the in Alpha, The

we lag partial at complete is quarter, While and or from likely this of get there the recovery the be should a believe interruption difference one coverage, recognition will of consensus between EPS. guidance in business our recovery our we least primary which

expense possible guidance difference $X our million approximately reflects acquisition neutral. in results from broadly interest NorthStar operating that are guidance second our its while in our is The

me let Dave. to call the turn Now back

David Shaffer

can open line for we questions. the Jean,

Operator

[Operator Instructions].

Our Kaye comes first your with question. question from Please Oppenheimer. of proceed Noah

Noah Kaye

morning. good Thanks,

contribution and sort come housekeeping First, what from on that's of to and revenue loss assume of Richmond. of operating that not for should expected income million $XX we kind modeling,

Michael Schmidtlein

be hit it and about think broad operating a on so I going impact million in of EPS strokes, quarter. to call $X let's $X $X.XX it's to million dollar the

up from show but our not that, it but show it it's revenue, quarter P&L the element, as the probably likely on above fourth up, recovery up an of recovery I'm business get sure we that will in gross going where up show insurance. won't interruption in expect to the show do we will in earnings profit, Now, operating

Noah Kaye

second for volume guided you of guess Day with to Okay, ago, question year. month Investor the fiscal X% that's a helpful. for growth I sort X%

X%. organic think roughly I year-to-date X% volumes down are to

You can X% year kind have strong levels assuming XQ, to you're what confidence about reversal headwind the on talk this sort and you in a of X% of Richmond that get growth target volume coming volume to back from of the for so in in half.

Michael Schmidtlein

So it's recognizing in was those had where year ERP fairly half results down in believe that X% is let's had our and growth. us. largely X the organic implementation the negative impact the with the dragging implementation first Richmond - that We had we of we significantly, start behind

to we days old when about that that the said, was our results, confident The we although going was had days but would we sure results don't Day, felt didn't that X how our or geography fire to still that. recovered show we we impact be all how was X we So, of going bottom that expect results. on Investor the up as know line weren't

if million hold were you'd So, you Investor I to have if it to against $XX think figure a growth back your add to said we to Day, that out. rate you try topline what on

soon. and to fought struggled half which So, the merger million that some okay, if and that's got reconciling holding broadband I one significant the the at released and you been you item, things look the and also have going preliminary is a sales -- company Richmond that major been think about that's aside FCC, with if that has FTC talked $XX the you we had get at interruption we've kind another who the had which have of implementation and ERP CapEx, on we -- through behind a the the telecommunications our and as you you of broadband year be say, has say you would we've believe then very of set customers its approval second been have and if that has

which of have improvement you October is expectation be markets, there, on challenging still -- have some opportunity still results that it's we've Xnd. those if in didn't quarter, had it that the second admittedly in more will So, an given the we

Noah Kaye

is into see. have up earlier, called release CapEx still from out to see that, following just or that we started start your visibility [indiscernible] Okay those and that flow something to that then that on customer you orders to guess need I you

Michael Schmidtlein

has confidence just sales of talked last some topic. improved was had the I dinner key for The very -- our certain. night and leads about key that

to that we we this don't [indiscernible]. cuts it but levels to mean very prior they're that has year I has back levels it reach so versus year-on-year to transaction prior historic know they Draconian the the but were to been improvement same transaction, a come maybe expect a I improve, made to things certainly think been that to going I know So, year a significant the they've dreadful. doing where it's the going was are and the going don't --

David Shaffer

quarters in a just of that historic is was those the last was first levels were -- fourth now nearly in put their XXXX, but I the weaker ended fiscal quarter June have in and through occurring they quarters September are and behind. out comp much January going reached of interim so March we to that which the XXXX, year's months those would zenith XX

Michael Schmidtlein

broadband Yes, initiatives in about that consistent the are we Day we to pent-up of -- -- demand these five think capital one there wireless the talked quad play, invest, is companies think some this created being several with fairly are the all we along, then five Investor remote the and we some we've I hold. there, general, that and then feedback remote think continuing at clearly, and in said [indiscernible] the

working there I blocking focus just in that's on. remarks, focused So, -- much prepared pitfalls in what that's would and you tackling, about integration the optimism a behind down those when and but that's would we're put shipping we is the and you that of orders, now companies, deliver have cultural our of -- the head have two kind and good is of companies we us say, very two orders together, of to getting degree is and say worry we're I it's all the and results, as and the noted

Noah Kaye

Sure.

cost think the between one in said help primarily is the remarks, I flow to you margin. from but Can you interest COGS their this gets I more achieve your in you think to the efficiencies a accounting in in ask a there of [indiscernible] bit year. us synergies sort that in in understand will and I'll NorthStar route the when recognized lag start fiscal just ball, that of just kind question next sharing logistics prepared terms more started of, of foreign when

so Just any as us factors it help will understand timing about work you achieve think synergies. to kind to these of

Michael Schmidtlein

be I'd try right. All to happy that.

benefit and is some freight, and line speed in being put So until to for of NorthStar able the year, than high-speed Missouri that two own which tearing going up those our its for rather the plants this had year, of its synergies fully EnerSys has, won't next next by the that going Missouri, make next largely [indiscernible]. for large so start customers our next and we to the NorthStar transitioning of fiscal now X April looking lines quarters two European Warrensburg, than products at two big to many at, own was out production additional be least make that capacity rather see is that to synergies portfolio products to you're customers recognized and we the while second originally of those next we can the -- customers. be factor to that will April. -- Richmond Warrensburg, US that months is going slated have which take are major go high the The Springfield, line to US so of not so in those That's until the Springfield and the into of factories

longer of executive his obviously the we cost there for In with mostly synergies, give Dave the need business term, because the wasn't and near so... to some don't two no that NorthStar seat, CEO's will synergies officers are be willing up

David Shaffer

yet. Not

Michael Schmidtlein

Anyway, but, synergies the you off will transaction. NorthStar see term, in near the that's where so see

Noah Kaye

it that's Thank you. will Okay, very turn over. I helpful.

Operator

Thank you.

Franzreb Our & next Company. from Sidoti question comes John of

John Franzreb

how competitors that that's regain Hi assume going in revenue, can and $XX guys, safe just is the to million you confident it are lost that regarding you business.

David Shaffer

that's quick my early focus market of a us very business in We've its John, product right, a lot of the turn a this throughout of key lot been just the in that is days got -- of sense. -- battleship products, to Well, and a turn to is where book has to went stuff. the course while terms you're and and it takes think mix, Power I in we competitors, this it the load share Motive ship,

we weren't fast So all have instances, my but on Mike then able been -- back it and just has I've enough, those respond focus in related to market the getting leaned really we do share, keeping to insurance activities.

keep the So to we're the number sort NorthStar the the we've sense we're with confident, through. fantastic, $XX and increase adding operations one blocks we of of would I'm a progress orders Pure in say, immediately duties, share. in been making our going split especially acquisition I so it's is the shift million up of push been Plate to with -- lost is it's on where Thin the another Lead can

we of on to but turn lot moving certainly there So, this preservation couldn't pieces that $XX million. fast enough is protect of to a share, the

Michael Schmidtlein

to -- quarter sequential John, with a starting standpoint, to miss you're a with year. thing, had, other fourth last we've remember the the about it if And million million from we've thinking our the fiscal of ERP really $XX because just been implementation quarter of $XX struggles, struggling

by fact only that behind standpoint, hindered capacity. we to So, output as formation mentioned, from I feel be the we is us that lost an implementation ERP the like

to capacity flooded up I products being that'll in products traditional it free as fulfilled much from Dave there we is more being sequential So, pretty pretty pick that respects, out or maintenance so slack. demand possible as soon it's some by say available online, that make if really has to -- well think because was per that's good of may change [indiscernible] as has be the is been as great getting we the not said, were our was think would by not competitors, focused the permanent I get opportunities quickly it's anyone a tremendous the there was may loss, market but there, been on that share. what market, what back filled we're a be and because that as And able had there expansion, transitioning up -- it I don't capacity to se,

John Franzreb

pronounced do basis Okay, you months give just regarding of the kind how is enough. revenue sense drop in me could you that business that business? summer the months seasonality off a fair have versus And what Alpha, in winter seasonal and its in the on the

Michael Schmidtlein

I would to quarter say and the quarter. the million $X.XX I nearly per quarters Well, seen, are in per months XX have been the lows XX million that in $XXX the have highest

calendar of with So now, $XX million expect more the get we're fairly probably overall this customers, the would it marked to hope decline will capital is pent-up improvement -- the quarter start that broadband we'll from fiscal that at third we think about see that our fourth when to but had I do and you the some of just patterns see million some quarter our because quarter, seasonally big of way would of from year, of to through. these of that's budgets the demand the one and a some of our summer peak a quarters of I a is released seasonal, $XX

John Franzreb

Okay, into queue. great, back get guys. thanks I'll

Operator

Instructions]. [Operator

Blair. next comes Brian of Drab from Our William question

Brian Drab

for taking good Thanks morning. questions. my Hey,

that lost $XX forward sales, into and account exclude on the if NorthStar's then contribution. take first So if you million looking you in

and the that the into would XX do million or sequentially the quarter, out, the quarter Alpha sequentially, increase of taking not. sales still think combination Xrd you NorthStar does out, taking at Xrd Looking Legacy grow so

David Shaffer

the quarter definitely grow of Xrd Legacy quarter off in for business. second would the the it Oh,

Brian Drab

And at the Xrd help I NorthStar XX that think the in in Okay, that again the about quarter Day would modeling, -- you to that's second then split just XX year, we expected the and about helpful. Xrd for think is million the the million Xth contribute about Analyst and between million of evenly about that Xth. $XX half in in

Michael Schmidtlein

we them, say keep I'm a business company we've and would say actually prior half with -- and access I I better year expectation, need gotten and that, $XX more of more I think probably for that because the million $XX QX. the in on XX-XX of as like second to think $XX million right you'd the now I now, for very information the limited -- have QX, but that's is million because rules, to now mind like antitrust I to had about am

Brian Drab

be got payment, you to from how be recovery would EPS. the on clear adjusted insurance and excluded that Okay, you And report receive included insurance when then it. that, that or just recovery

Michael Schmidtlein

of has been that revenue So, because didn't be that will to it's adjusted difficult or you loss none out. get, highlight

[indiscernible] assuming a our we those from going and the as-adjusted Quarter as have to as benefits the consequently are have and take I said, didn't really as because results in So we out hit our we adjusted into will so highlight come reported lag, we revenue can't one results. --

from on round line, but my and in up, $X.XX the QX, in I'm we and it's a full net not $XX QX, that result being be... QX to -- show all timely EPS is that if $X get taking $X.XX $X if for million contribution top in my EPS if things is we say basis the So, equal, in I million line should hit in recovery is insurer this million, they'll

Brian Drab

Thank it. you. got Okay,

Michael Schmidtlein

-- With as both results. the and adjusted

Brian Drab

see could back -- this revenue I And go give you on back kind any Thanks. then if if to comment of forecast. the and just

sequentially just third If you in quarter years, this quarter there to from on increase any you to before third historically can had fiscal you use whether Is the X%. average the year. about quarter comment so fourth from similar look sequential fourth been improvement fiscal see quarter XXXX, at way fourth Alpha XXXX maybe XXXX, like quarter, joined, the let's the

David Shaffer

two that's within that, up go stretches and months. I somewhat know, quarter you I but think only more reluctant probably, reach, the step that order So because sequential on still aim out are stronger than legacy a we little than generally bit the upcoming our out book to one businesses actually, as

reason asking project match that things me up I least lot see we volume. have information, sequential but can't step of in at I to don't substantive So, don't a you're organic whole any yes,

Brian Drab

which probably so second to call, question, going has hitting has thanks. where components here cetera, impact been and from main most. the China US what history last itself, repeating me someone the if from the unless the remind I and shipping Okay, Can sneak in just more. or a I'm to et And you you products are tariffs where, one I'm in person the think is to

David Shaffer

and on competitive our been us, of we over got range can electronics the combination, lot really been contract any stuff do the of and -- there then just contract a it's have about, the is moving piece and manufacturers that only landscape as is in China not Brian, of has around still all one Mike's import we've allow best been much, a the we've we've and it's It's there so business, manufacturers the substance broadest talked a battery been we the -- electronics doesn't on to detail. where the as the of particular one world, us do from we portion that as challenge that's exposure that's lot

Michael Schmidtlein

or largely initially, business. had was on US, rerouted we our contract contract chargers -- so were of Thai-produced and the Thailand-based negate the some within for so able the us. most mostly originating issue into the said, and that got of product a behind power we tariffs -- Dave quarter to took both manufacturers we to the Yeah, we energy product as and but charger made chargers, Power and chargers, that we legacy It Motive weather and fortunately Europe Chinese because componentry manufacturers the two systems the simply that's Chinese the our

batteries market. into are general, receptive going or facility to our are price sold so market line competitors that's one set business US increases. China, be the their one where challenge that aren't batteries of in similar to the made in in Chongqing of our not is Unfortunately, producing that That China left, a in presented

just out list, can change, outside been trying is looking how how meeting at figure other in value have the those put this there, the bring country the and components more produce put can on we down the China, we've in in that we of necessarily of separately product some We're getting So the have the either into China. we've been going brought to to that added substantial transformation in don't in value to of some stream be do added US. earlier and a

challenging I as they but where at be for products the half is foresee whether which we cost $XX one is It transformer of China we're second is million India we run it so tariff that that get their a in have in different somewhat made may, Alpha produced or about of looking can experienced. the and of other tremendously that the that year, locations, also from has not rate

you tariff have throughout year. increasing the know, As been rates

increasing tariff -- made rates moved it just list, have some of the we're of in the it applying even we've off So progress. products, like successful even of the look that though along, been been for in taken the some exclusions as and fact of it's things paddling lot fairly making we've really like a looks the kind we've though dog receiving on not

working to the $XX two alternative half, million sourcing are trying first in regard but million $XX the and So tariffs, we find on big still remaining hitters there. with to half second

press haven't upcoming potentially see, some cancellation about did did out a I may that helpful. on to go of been change able an a verify, we a that's quarters. see tariffs these of come abatement, release So or the in

NorthStar the my cost we we and to Springfield, a that; can seen the into need back component we UK that's be produce one customers, as sold into made the to to be it comment we in our these control us, for the my ability to were sell savings that the well. area European we that geographical on we've on products won't telecom do And crossing -- all product product United this on in going won't I'm or going water up in that that in and telecom all going that products Missouri have figures then to made freight need the other So, and that. water forth, do don't market, we States is France going great is in coming that so for

our of the think So appealing see we the those some are to us. bulk of where that going transaction we're savings NorthStar to makes so

Brian Drab

very a great much. There I of thanks detail. is Okay, it. appreciate lot

Operator

Mr. Schaeffer.

You proceed may remarks. further any with now

David Shaffer

day quarter further I everyone. want to attend today We our taking for time third our on providing Please everyone to have updates And to February. your call in good look our forward XXXX call. on thank progress a

Operator

call. concludes conference this Thank for you today's gentlemen, participating. and Ladies

may You now disconnect.

EnerSys (ENS) 7 Nov 192020 Q2 Earnings call transcript