Briggs & Stratton Corporation reported consolidated earnings results for the second quarter and six months ended January 1, 2017. For the quarter, the company reported net sales of $428,236,000, income from operations of $25,385,000, income before income taxes of $20,633,000, net income of $15,251,000 or $0.35 per basic and diluted share against net sales of $413,379,000, income from operations of $18,765,000, income before income taxes of $16,135,000, net income of $12,560,000 or $0.28 per basic and diluted share a year ago. Year-to-date depreciation and amortization of $28 million slightly trailed capital expenditures of $31 million. Year-to-date capital expenditures increased by $5 million, largely due to the investment in ERP upgrade.

For the six months, the company reported net sales of $715,034,000, income from operations of $9,072,000, income before income taxes of $270,000, net income of $1,103,000 or $0.02 per basic and diluted share against net sales of $702,837,000, loss from operations of $4,571,000, loss before income taxes of $10,282,000, net loss of $5,611,000 or $0.13 per basic and diluted share a year ago. Net cash used in operating activities of $128,312,000 compared to $98,635,000 a year ago. Capital expenditures were $31,163,000 compared to $25,843,000 a year ago. Net debt as at October 2, 2016 was $230.4 million. The decrease in cash used in operating activities was primarily related to a lower net loss. Net debt at January 1, 2017 was $307.9 million (total debt, excluding debt issuance costs, of $355.2 million less $47.3 million of cash), or $50.0 million higher than net debt of $257.9 million (total debt, excluding debt issuance costs, of $318.2 million less $60.4 million of cash) at December 27, 2015. The increase in cash used in operating activities was primarily related to changes in working capital, including higher accounts receivable due to timing of sales year over year.

Net sales are expected to be in a range of $1.86 billion to $1.90 billion. Net income is expected to be in a range of $57 million to $64 million or $1.31 to $1.46 per diluted share (prior to the impact of any share repurchases). The effective tax rate is expected to be in a range of 31% to 33%. Capital expenditures are expected to be $70 million to $80 million.