Briggs & Stratton Corp. (BGG) filed Quarterly Report for the period ended 2009-09-27.
Briggs & Stratton Corp. is one of the world's largest producers of air cooled gasoline engines for outdoor power equipment. The company designs manufactures markets and services these products for original equipment manufacturers worldwide. These engines are primarily aluminum alloy gasoline engines. Briggs & Stratton Corp. has a market cap of $949 million; its shares were traded at around $18.98 with a P/E ratio of 29.6 and P/S ratio of 0.4. The dividend yield of Briggs & Stratton Corp. stocks is 2.4%.
Highlight of Business Operations:
Consolidated net sales for the first quarter of fiscal 2010 were $325 million, a decrease of $134 million or 29% when compared to the same period a year ago.
First quarter fiscal 2010 net sales for the Engines Segment were $210 million versus $259 million in fiscal 2010, a decrease of $49 million or 19%. This decrease reflects a 22% decrease in engine unit shipments from the prior year attributable to softer consumer demand for lawn and garden equipment and a decrease in demand for engines for portable generators due to the lack of landed hurricanes year over year.
Cash provided by operating activities in the first quarter of fiscal 2010 was $11.9 million, a $14.0 million improvement from the $2.1 million used by operating activities in the first quarter of fiscal 2009. This improvement was primarily attributable to $17.1 million less of working capital requirements compared to the first quarter of fiscal 2009, which was primarily due to a $63.1 million reduction in accounts receivable offset by a $44.0 million increase in inventory.
Cash used by investing activities was $7.0 million and $34.4 million in the first quarters of fiscal 2010 and fiscal 2009, respectively. The $27.4 million decrease was primarily the result of the absence of the $24.8 million used for the acquisition of Victa Lawncare Pty. Ltd. in the first quarter of fiscal 2009 and planned reductions to plant and equipment spending.
Cash provided by financing activities was $4.8 million and $38.1 million in the first quarters of fiscal 2010 and fiscal 2009, respectively. This decrease is attributable to decreased net borrowings for working capital purposes.
On July 12, 2007, the Company entered into a $500 million amended and restated multicurrency credit agreement. The Amended Credit Agreement (“Revolver”) provides a revolving credit facility for up to $500 million in revolving loans, including up to $25 million in swing-line loans. The Revolver has a term of five years and all outstanding borrowings on the Revolver are due and payable on July 12, 2012. As of September 27, 2009, the unused availability of the revolving credit facility was approximately $457 million. This credit facility and the Company’s other indebtedness contain restrictive covenants as described in Note 9 of the Notes to the Consolidated Financial Statements of the Company’s Annual Report on Form 10-K. As of the end of the first quarter of fiscal 2010, the Company was in compliance with these covenants.
BGG is in the portfolios of Charles Brandes of Brandes Investment.
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