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Briggs & Stratton Corporation Reports Results For The Fourth Quarter And Fiscal 2013

   Briggs & Stratton Corporation Reports Results For The Fourth Quarter And
                                 Fiscal 2013

PR Newswire

MILWAUKEE, Aug. 15, 2013

MILWAUKEE, Aug. 15, 2013 /PRNewswire/ -- Briggs & Stratton Corporation
(NYSE:BGG) today announced financial results for its fourth fiscal quarter and
year ended June 30, 2013.

(Logo:http://photos.prnewswire.com/prnh/20120529/CG15020LOGO)

Highlights:

  oFourth quarter fiscal 2013 consolidated net sales were $477.2 million, a
    decrease of $24 million from the prior year. Fourth quarter 2013 adjusted
    net income was $10.7 million, a decrease of $0.2 million from the prior
    year. Fourth quarter 2013 adjusted diluted earnings per share were $0.22,
    or comparable to the prior year.
  oThe Company recorded a non-cash pre-tax goodwill and tradename impairment
    charge of $90.1 million ($62.0 million after tax or $1.30 per diluted
    share) during the fourth quarter of fiscal 2013 within its Products
    Segment.
  oPre-tax charges related to the previously announced restructuring actions
    and a legal settlement were $5.7 and $24.1 million during the three and
    twelve months ended June 30, 2013, respectively.
  oIncluding the impairment charges, restructuring costs and legal
    settlement, the fourth quarter fiscal 2013 consolidated net loss was $55.0
    million compared to a net loss of $8.4 million in the same period last
    year.
  oFiscal 2013 consolidated net sales were $1.9 billion, a decrease of 9.9%
    from fiscal 2012. Fiscal 2013 adjusted net income was $45.1 million
    compared to $57.8 million in fiscal 2012. Fiscal 2013 adjusted diluted
    earnings per share were $0.93 compared to $1.15 in fiscal 2012.
  oOperating cash flows for fiscal 2013 improved to $160.8 million from $66.0
    million in fiscal 2012. Net debt at fiscal year-end 2013 was $36.9
    million, a decrease from $71.9 million at the end of fiscal 2012.
  oThe Company's restructuring actions achieved pre-tax savings of $37.2
    million during fiscal 2013.
  oIncluding the impairment charges, restructuring costs and legal
    settlement, the fiscal 2013 consolidated net loss was $33.7 million
    compared to net income of $29.0 million in fiscal 2012.

"During fiscal 2013, our industry continued to be impacted by cautious
consumer spending on outdoor power equipment and channel inventory corrections
following last summer's droughts in the United States and Australia. We have
seen retail sales momentum increase over the past several weeks compared to
last year and we believe that inventory levels in the channel are decreasing
to more normal levels," commented Todd J. Teske, Chairman, President and Chief
Executive Officer of Briggs & Stratton Corporation. "Focusing on things within
our control, we had solid execution during the year on realizing $37 million
in cost savings from our restructuring actions, exiting the lower margin mass
retail lawn and garden products business and expanding our international
distribution in Southeast Asia and Latin America including the acquisition of
Branco in Brazil," Teske continued. "Our focus on reducing the working capital
requirements in the business resulted in over $160 million of cash flows from
operations in fiscal 2013 and a solid balance sheet which positions us well
for executing our strategy of growing the global engines business and
expanding in higher margin products in our existing markets and in developing
regions of the world."

Consolidated Results:

Consolidated net sales for the fourth quarter of fiscal 2013 were $477.2
million, a decrease of $24.0 million or 4.8% from the fourth quarter of fiscal
2012. Net sales were lower compared to the fourth quarter of the prior year
primarily as a result of delayed spring weather patterns in the U.S. and
Europe that have not yet recovered in the current season and due to the
company's decision to no longer sell lawn and garden products to large mass
retailers in the U.S. Fiscal 2013 fourth quarter consolidated net loss, which
includes goodwill and tradename impairment, litigation settlement, and
restructuring charges, was $55.0 million, or $1.17 per diluted share. The
fourth quarter of fiscal 2012 consolidated net loss including restructuring
charges, was $8.4 million, or $0.18 per diluted share.

Included in the consolidated net loss for the fourth quarter of fiscal 2013
were pre-tax charges of $90.1 million for a non-cash goodwill and tradename
impairment, $1.9 million for a litigation settlement associated with a
horsepower labeling lawsuit in Canada, and $3.8 million related to previously
announced restructuring actions. Included in consolidated net income for the
fourth quarter of fiscal 2012 were pre-tax charges of $30.1 million also
related to the restructuring actions. After removing the impact of these
items, the adjusted consolidated net income for the fourth quarter of fiscal
2013 was $10.7 million or $0.22 per diluted share, which was $0.2
millionlower compared to the fourth quarter fiscal 2012 adjusted consolidated
net income of $10.8 million or $0.22 per diluted share. The goodwill and
tradename impairment charge is a non-cash expense that did not adversely
affect the company's debt position, cash flow, liquidity or compliance with
financial covenants under its credit facilities. No goodwill or tradename
impairment charges were recorded within the Engines Segment.

Consolidated net sales for fiscal 2013 were $1.9 billion, a decrease of $204.0
million or 9.9% when compared to the same period a year ago. Consolidated net
loss for fiscal 2013 was $33.7 million or $0.73 per diluted share.
Consolidated net income for fiscal 2012 was $29.0 million or $0.57 per diluted
share.

Included in the consolidated net loss for fiscal 2013 were pre-tax charges of
$90.1 million for the goodwill and tradename impairment, $1.9 million for the
litigation settlement and $22.2 million related to previously announced
restructuring actions. Included in consolidated net income for fiscal 2012
were pre-tax charges of $49.9 million also related to the restructuring
actions. After removing the impact of these items, the adjusted consolidated
net income for fiscal 2013 was $45.1 million or $0.93 per diluted share, which
was a decrease of $12.8 million or $0.22 per diluted share compared to fiscal
2012 adjusted consolidated net income of $57.8 million or $1.15 per diluted
share.

Engines Segment:

                       Three Months Ended Fiscal  Twelve Months Ended Fiscal
                       June                       June
(In Thousands)         2013           2012         2013           2012
 Engines Net       $ 299,043      $ 322,456    $ 1,189,674    $ 1,309,942
Sales
 Engines Gross     $  54,506     $  63,768   $  236,486   $  250,323
Profit as Reported
 Restructuring  1,662          4,314        9,008          14,257
Charges
 Adjusted Engines  $  56,168     $  68,082   $  245,494   $  264,580
Gross Profit
 Engines Gross     18.2%          19.8%        19.9%          19.1%
Profit % as Reported
 Adjusted Engines  18.8%          21.1%        20.6%          20.2%
Gross Profit %
 Engines Income                                $           $   
from Operations as     $  10,519     $  14,684   59,093         66,559
Reported
 Restructuring  1,662          8,371        12,443         18,314
Charges
 Litigation     1,877          -            1,877          -
Settlement
 Adjusted Engines                              $           $   
Income from            $  14,058     $  23,055   73,413         84,873
Operations
 Engines Income
from Operations % as   3.5%           4.6%         5.0%           5.1%
Reported
 Adjusted Engines
Income from            4.7%           7.1%         6.2%           6.5%
Operations %

Engines Segment fiscal 2013 fourth quarter net sales were $299.0 million,
which was $23.4 million or 7.3% lower than the fourth quarter of fiscal 2012.
This decrease in net sales was driven by reduced shipments of engines used on
walk and riding lawnmowers, pressure washers and snow throwers in North
American and European markets. OEM customers, retailers and dealers took
actions to reduce channel inventories coming off a historic drought during
last season in North America and a late start to warmer spring weather this
season in both North America and Europe. Net sales were also lower in the
fourth quarter of fiscal 2013 due to an unfavorable mix of engines sold and
unfavorable foreign exchange of $2.3 million primarily related to the Euro.

The Engines Segment adjusted gross profit percentage for the fourth quarter of
2013 was 18.8%, which was 2.3% lower compared to the fourth quarter of fiscal
2012. The adjusted gross profit percentage was unfavorably impacted by 1.9% as
a result of a 20% reduction in engines built to control inventory levels in
response to reduced shipments. The reduced manufacturing activity enabled the
acceleration of annual plant repair and maintenance into the fourth fiscal
quarter of 2013 which had an unfavorable impact on the adjusted gross profit
percentage of 1.2%. Restructuring savings achieved of $2.7 million partially
offset the reduction in adjusted gross profit percentage. Lower material costs
were offset by reduced pricing, unfavorable foreign exchange and an
unfavorable mix of engines sold.

The Engines Segment engineering, selling, general and administrative expenses
were $44.0 million in the fourth quarter of fiscal 2013, a decrease of $1.0
million from the fourth quarter of fiscal 2012 primarily due to lower
compensation costs and reduced selling expenses in response to reduced sales.
Partially offsetting these reductions was a $1.9 million litigation settlement
charge in the fourth quarter of 2013 associated with a horsepower labeling
case in Canada. The litigation settlement charge is excluded from the Engine
Segment's adjusted income from operations.

Engines Segment net sales for fiscal 2013 were $1.19 billion, which was $120.3
million or 9.2% lower than the same period a year ago. This decrease in net
sales was primarily driven by reduced shipments of engines used on walk, ride
and snow equipment in the North American market as well as lower sales to OEM
customers for the European and Australasian markets. European markets were off
considerably given macroeconomic issues and unfavorable weather conditions.
Australasia markets were off due to a significant lack of rainfall in highly
populated areas. In addition, sales were lower in fiscal 2013 due to an
unfavorable mix of engines sold that reflected proportionately lower sales of
large engines and unfavorable foreign exchange of $11.6 million primarily
related to the Euro.

The Engines Segment adjusted gross profit percentage for 2013 was 20.6%, which
was 0.4% higher compared to fiscal 2012. The adjusted gross profit percentage
was favorably impacted by 1.5% due to lower manufacturing costs achieved
through restructuring savings of $10.9 million and start-up costs incurred in
fiscal 2012 associated with launching our phase III emissions compliant
engines. Partially offsetting this improvement was a 9% reduction in engines
built in fiscal 2013 which reduced the adjusted gross profit percentage by
1.3%. Lower material costs were mostly offset by reduced pricing, unfavorable
foreign exchange and an unfavorable mix of engines sold.

The Engines Segment engineering, selling, general and administrative expenses
were $174.0 million in fiscal 2013, or $5.7 million lower compared to fiscal
2012. The decrease is primarily due to lower compensation costs of $8.4
million as a result of the previously announced reduction of 10% of the global
salaried workforce and reduced selling costs in response to the softness in
the global markets, partially offset by $2.8 million of increased pension
expense compared to the same period last year.

Products Segment:

                             Three Months Ended Fiscal   Twelve Months Ended
                             June                        Fiscal June
(In Thousands)               2013           2012          2013       2012
 Products Net Sales      $ 203,127      $ 220,141    $        $  
                                                          805,450    952,110
 Products Gross Profit   $  23,594     $   4,518  $       $   
as Reported                                               87,392     86,193
 Restructuring        2,129          20,682        9,753      30,503
Charges
 Adjusted Products       $  25,723     $  25,200   $       $  
Gross Profit                                              97,145     116,696
 Products Gross Profit   11.6%          2.1%          10.9%      9.1%
% as Reported
 Adjusted Products       12.7%          11.4%         12.1%      12.3%
Gross Profit %
 Products Income (Loss)  $ (93,131)    $ (27,248)   $         $  
from Operations as Reported                               (104,918)  (25,531)
 Restructuring        2,129          21,732        9,753      31,553
Charges
 Goodwill and         90,080         -             90,080     -
Tradename Impairment
 Adjusted Products                                    $       $    
Income (Loss) from           $    (922)  $  (5,516)  (5,085)    6,022
Operations
 Products Income (Loss)
from Operations % as         -45.8%         -12.4%        -13.0%     -2.7%
Reported
 Adjusted Products
Income (Loss) from           -0.5%          -2.5%         -0.6%      0.6%
Operations %

Products Segment fiscal 2013 fourth quarter net sales were $203.1 million, a
decrease of $17.0 million or 7.7% from the fourth quarter of fiscal 2012. The
decrease in net sales was primarily related to the Company's decision to exit
the sale of lawn and garden equipment through national mass retailers. In
addition, pressure washer sales decreased in North America from last year due
to a later start to this spring selling season. The net sales decrease was
partially offset by higher sales of lawn and garden equipment to dealers in
the U.S. and increased net sales in Brazil from the acquisition of Branco in
December of 2012. 

The Products Segment adjusted gross profit percentage for the fourth quarter
of 2013 was 12.7%, which was 1.3% higher than the adjusted gross profit
percentage for the fourth quarter of fiscal 2012. The adjusted gross profit
percentage benefitted by 2.0% as a result of favorable pricing and the impact
of a higher proportion of units shipped through the dealer channel and 1.1%
due to achieving restructuring cost savings of $2.5 million. The addition of
sales from the Branco acquisition and favorable foreign exchange also improved
the adjusted gross profit percentage. The improvement was partially offset by
a decrease of 3.1% due to unfavorable absorption associated with a 15%
decrease in production throughput. The McDonough, Georgia manufacturing
facility was idled for three weeks in the quarter in order to control
inventory levels in response to softness in the U.S. market coming off of last
season's historic drought coupled with the late spring conditions in the
current season. 

The Products Segment fiscal 2013 fourth quarter engineering, selling, general
and administrative expenses were $26.6 million, a decrease of $4.1 million
from the fourth quarter of fiscal 2012. The decrease was attributable to lower
compensation costs, $0.6 million of lower bad debt expense and reduced selling
costs in response to the softness in the global markets. These reductions were
partially offset by the addition of expenses related to the Branco
acquisition.

Products Segment net sales for fiscal 2013 were $805.5 million, a decrease of
$146.7 million or 15.4% from the same period a year ago. Approximately $90
million of the net sales decrease resulted from our decision to exit the sale
of lawn and garden equipment through national mass retailers. The remaining
decrease was primarily due to lower sales volumes of snow equipment due to
significantly below average snowfall in North America and reduced sales of
lawn and garden equipment resulting from prolonged drought conditions in the
United States and Australasia. The decrease in net sales was partially offset
by higher shipments of portable and standby generators in the North American
market.

The Products Segment adjusted gross profit percentage for fiscal 2013 was
12.1%, which was 0.2% lower compared to the adjusted gross profit percentage
for fiscal 2012. The adjusted gross profit percentage decreased 3.1% due to
unfavorable absorption associated with a 15% decrease in production volume.
The McDonough, Georgia manufacturing facility shutdown days increased by
nearly six weeks in fiscal 2013 compared to last year. This enabled the
Products Segment to achieve a reduction in inventory levels despite the
challenge of reduced sales volumes caused by lower market demand. The
unfavorable volume impact on gross profit percentage was partially offset by a
2.3% benefit due to achieving restructuring cost savings of $13.6 million and
other efficiency improvements. The addition of sales from the Branco
acquisition and favorable foreign exchange, primarily due to the Australian
dollar, also increased the gross margin percentage in fiscal 2013.

The Products Segment engineering, selling, general and administrative expenses
were $102.2 million in fiscal 2013, a decrease of $8.4 million from fiscal
2012. The decrease was attributable to lower compensation costs which include
a $2.5 million benefit from the previously announced global salaried employee
reduction as well as reduced selling expenses in response to the softness in
the global markets. These reductions were partially offset by the addition of
expenses related to the Branco acquisition.

Corporate Items:

Interest expense for the fourth quarter of fiscal 2013 was $0.1 million higher
compared to the same period a year ago. For fiscal 2013, interest expense was
comparable to fiscal 2012. 

The effective tax rate for the fourth quarter and fiscal 2013 YTD was 32.6%
and 35.5%, respectively, compared to 37.0% and 2.9% for the same respective
periods last year. The decrease in the effective tax rate for the fourth
quarter of fiscal 2013 compared to the fourth quarter of fiscal 2012 is
primarily due to a $5.6 million non-deductible goodwill impairment charge
recognized in the fourth quarter of fiscal 2013. The increase in the effective
tax rate for fiscal 2013 compared to fiscal 2012 was primarily due to a net
benefit of $5.6 million associated with restructuring charges incurred in
connection with closing the Company's Ostrava manufacturing facility, a net
benefit of $5.1 million due to the expiration of a non-U.S. statute of
limitation period during fiscal 2012, and an additional tax expense of $5.6
million for a non-cash goodwill impairment charge in fiscal 2013.

Financial Position:

Net debt at June 30, 2013 was $36.9 million (total debt of $225.3 million less
$188.4 million of cash), or $35.0 million lower from the $71.9 million (total
debt of $228.0 million less $156.1 million of cash) at July 1, 2012. Cash
flows provided by operating activities for fiscal 2013 were $160.8 million
compared to $66.0 million in fiscal 2012. The improvement in operating cash
flows was primarily related to lower working capital needs in fiscal 2013
associated with lower levels of accounts receivable and inventory compared to
the prior year.

Restructuring:

The previously announced restructuring actions remain on schedule. The Company
achieved total pre-tax savings for the fourth quarter and fiscal 2013 of $8.3
million and $37.2 million, respectively. In the fourth quarter of fiscal 2013,
the Company closed on the sale of its Ostrava, Czech Republic manufacturing
facility and has nearly completed all activities associated with exiting the
Newbern, Tennessee manufacturing facility. The Company continues to make
progress towards moving horizontal engine manufacturing from its Auburn,
Alabama plant to China. As noted previously, pre-tax restructuring costs for
the fourth quarter and fiscal 2013 were $3.8 million and $22.2 million,
respectively. Pre-tax restructuring costs for fiscal 2014 are estimated to be
$4 million to $8 million. Incremental restructuring savings are expected to be
$3 million to $5 million. 

Share Repurchase Program:

On August10, 2011, the Board of Directors of the Company authorized up to $50
million in funds for use in a common share repurchase program with an
expiration of June30, 2013. On August 8, 2012, the Board of Directors of the
Company authorized up to an additional $50 million in funds associated with
the common share repurchase program and an extension of the expiration date to
June 30, 2014. The common share repurchase program authorizes the purchase of
shares of the Company's common stock on the open market or in private
transactions from time to time, depending on market conditions and certain
governing loan covenants. During fiscal 2013, the Company repurchased
approximately 1.5 million shares on the open market at an average price of
$19.63 per share.

Outlook:

For fiscal 2014, the Company projects net income to be in a range of $50
million to $62 million or $1.04 to $1.28 per diluted share prior to the impact
of any additional share repurchases and costs related to our announced
restructuring actions. Our fiscal 2014 consolidated net sales are projected to
be in a range of $1.88 billion to $2.03 billion. We estimate that the retail
market for lawn and garden products will increase 4-6% in the U.S. next
season. The estimated incremental impact of exiting the sale of lawn and
garden equipment through national mass retailers is approximately $10 million
to $15 million of reduced sales in fiscal 2014. In addition, sales in fiscal
2013 were favorably impacted by sales of portable and standby generators in
response to power outages during hurricanes Isaac and Sandy. The upper end of
our earnings projections contemplates a higher market recovery in excess of
10% for the U.S. lawn and garden market, normal snowfall and a landed
hurricane. Operating income margins are expected to improve over fiscal 2013
and be in a range of 4.5% to 5.0% and reflect the positive impacts of the
restructuring actions. Interest expense and other income are estimated to be
approximately $18 million and $5 million, respectively. The effective tax rate
is projected to be in a range of 30% to 33% and capital expenditures are
projected to be approximately $50 million to $55 million.

Conference Call Information:

The Company will host a conference call today at 10:00 AM (ET) to review this
information. A live webcast of the conference call will be available on our
corporate website: http://www.briggsandstratton.com/shareholders. Also
available is a dial-in number to access the call real-time at (866) 804-3545.
A replay will be offered beginning approximately two hours after the call ends
and will be available for one week. Dial (888) 266-2081 to access the replay.
The pass code will be 1596431.

Safe Harbor Statement:

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", "forecast", "intend", "plan", "project", 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, the ability to successfully forecast demand for our products; changes
in interest rates and foreign exchange 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; changes in laws
and regulations; changes in customer and OEM demand; changes in prices of raw
materials and parts that we purchase; changes in domestic and foreign economic
conditions; the ability to bring new productive capacity on line efficiently
and with good quality; outcomes of legal proceedings and claims; and other
factors disclosed from time to time in our SEC filings or otherwise, including
the factors discussed in Item1A, Risk Factors, of the Company's Annual Report
on Form 10-K and in its periodic reports on Form 10-Q.

About Briggs & Stratton Corporation:

Briggs & Stratton Corporation, headquartered in Milwaukee, Wisconsin, is the
world's largest producer of gasoline engines for outdoor power equipment. Its
wholly owned subsidiaries include North America's number one manufacturer of
portable generators and pressure washers, and it is a leading designer,
manufacturer and marketer of lawn and garden and turf care through its
Simplicity®, Snapper®, Ferris®, Murray®, Branco® and Victa® brands. Briggs &
Stratton products are designed, manufactured, marketed and serviced in over
100 countries on six continents.



BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations for the Fiscal Periods Ended June
(In Thousands, except per share data)
(Unaudited)
                       Three Months Ended Fiscal  Twelve Months Ended Fiscal
                       June                       June
                       2013             2012       2013           2012
NET SALES              $477,153         $501,192   $1,862,498     $2,066,533
COST OF GOODS SOLD     391,793          406,517    1,514,597      1,685,048
RESTRUCTURING CHARGES  3,791            24,996     18,761         44,760
Gross Profit          81,569           69,679     329,140        336,725
ENGINEERING, SELLING,
GENERAL
AND ADMINISTRATIVE     70,632           75,743     276,188        290,381
EXPENSES
RESTRUCTURING CHARGES  -                5,107      3,435          5,107
GOODWILL AND           90,080           -          90,080         -
TRADENAME IMPAIRMENT
Income (Loss) from     (79,143)         (11,171)   (40,563)       41,237
Operations
INTEREST EXPENSE       (4,717)          (4,597)    (18,519)       (18,542)
OTHER INCOME           2,281            2,429      6,941          7,178
Income (Loss) before   (81,579)         (13,339)   (52,141)       29,873
Income Taxes
PROVISION (CREDIT)     (26,568)         (4,931)    (18,484)       867
FOR INCOME TAXES
Net Income (Loss)      $ (55,011)      $         $            $   
                                        (8,408)   (33,657)      29,006
Average Shares         47,310           47,890     47,172         48,965
Outstanding
BASIC EARNINGS (LOSS)  $   (1.17)    $        $          $     
PER SHARE                               (0.18)    (0.73)         0.58
Diluted Average        47,310           47,890     47,172         49,909
Shares Outstanding
DILUTED EARNINGS       $   (1.17)    $        $          $     
(LOSS) PER SHARE                        (0.18)    (0.73)         0.57



Segment Information
(In Thousands)
(Unaudited)
                       Three Months Ended Fiscal  Twelve Months Ended Fiscal
                       June                       June
                       2013           2012         2013            2012
NET SALES:
Engines                $ 299,043      $ 322,456    $ 1,189,674    $ 1,309,942
Products               203,127        220,141      805,450         952,110
Inter-Segment          (25,017)       (41,405)     (132,626)       (195,519)
Eliminations
 Total *            $ 477,153      $ 501,192    $ 1,862,498    $ 2,066,533
 * International
sales based on                                                     $ 
product shipment       $ 104,199      $  95,869   $  557,534    625,578
destination included
in net sales
GROSS PROFIT:
Engines                $  54,506     $  63,768   $  236,486    $ 
                                                                   250,323
Products               23,594         4,518        87,392          86,193
Inter-Segment          3,469          1,393        5,262           209
Eliminations
 Total              $  81,569     $  69,679   $  329,140    $ 
                                                                   336,725
INCOME (LOSS) FROM
OPERATIONS:
Engines                $  10,519     $  14,684   $   59,093   $  
                                                                   66,559
Products               (93,131)       (27,248)     (104,918)       (25,531)
Inter-Segment          3,469          1,393        5,262           209
Eliminations
 Total              $ (79,143)     $ (11,171)   $  (40,563)   $  
                                                                   41,237



Non-GAAP Financial Measures

Briggs& Stratton prepares its financial statements using Generally Accepted
Accounting Principles (GAAP). When a company discloses material information
containing non-GAAP financial measures, SEC regulations require that the
disclosure include a presentation of the most directly comparable GAAP measure
and a reconciliation of the GAAP and non-GAAP financial measure. Management's
inclusion of non-GAAP financial measures in this release is intended to
supplement, not replace, the presentation of the financial results in
accordance with GAAP. Briggs & Stratton Corporation management believes that
these non-GAAP financial measures, when considered together with the GAAP
financial measures, provide information that is useful to investors in
understanding period-over-period operating results separate and apart from
items that may, or could, have a disproportionately positive or negative
impact on results in any particular period. Management also believes that
these non-GAAP financial measures enhance the ability of investors to analyze
our business trends and to understand our performance. In addition, we may
utilize non-GAAP financial measures as a guide in our forecasting, budgeting
and long-term planning process. Non-GAAP financial measures should be
considered in addition to, and not as a substitute for, or superior to,
financial measures presented in accordance with GAAP. The following table is a
reconciliation of the non-GAAP financial measures:



BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES
Adjusted Net Income (Loss) & Diluted Earnings (Loss) Per Share for the Fiscal
Periods Ended June
(In Thousands, except per share data)
(Unaudited)
                             Three Months Ended Fiscal  Twelve Months Ended
                             June                       Fiscal June
                             2013           2012         2013        2012
Net Income (Loss)            $ (55,011)     $ (8,408)   $ (33,657)  $ 29,006
  Tax effected charges to
  reported net income:
         Restructuring       2,498          19,254       15,527      28,805
         Charges^1
         Goodwill and
         Tradename           61,964         -            61,964      -
         Impairment^2
         Litigation          1,220          -            1,220       -
         Settlement^3
Adjusted Net Income          $  10,671     $ 10,846    $  45,054  $ 57,811
Diluted Earnings (Loss) Per  $   (1.17)   $  (0.18)  $         $  
Share                                                    (0.73)      0.57
  Tax effected charges to
  reported diluted earnings
  per share:
         Restructuring       0.05           0.40         0.33        0.58
         Charges^1
         Goodwill and
         Tradename           1.30           -            1.30        -
         Impairment^2
         Litigation          0.03           -            0.03        -
         Settlement^3
Adjusted Diluted Earnings    $    0.22   $   0.22  $        $  
Per Share^4                                              0.93        1.15

   For Fiscal 2013, represents charges of $3,791 net of $1,293 of taxes for
^1 the fourth quarter, and $22,196 net of $6,669 of taxes for the year. For
   Fiscal 2012, represents charges of $30,103 net of $10,849 of taxes for the
   fourth quarter, and $49,867 net of $21,062 of taxes for the year.
   Represents a $90,080 charge, of which $13,807 related to non-deductible
^2 goodwill for tax purposes. The remaining impairment generated a $28,116
   tax benefit.
^3 Represents costs of $1,877 net of $657 of taxes.
^4 Earnings per share amounts may not total due to rounding.



BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES
Adjusted Segment Gross Profit for the Fiscal Periods Ended June
(In Thousands)
(Unaudited)
                       Three Months Ended Fiscal  Twelve Months Ended Fiscal
                       June                       June
                       2013            2012        2013            2012
GROSS PROFIT:
Engines
 Gross Profit       $ 54,506        $ 63,768    $ 236,486       $ 250,323
 Restructuring  1,662           4,314       9,008           14,257
Charges
 Adjusted Engines   $ 56,168        $ 68,082    $ 245,494       $ 264,580
Gross Profit
Products
 Gross Profit       23,594          4,518       87,392          86,193
 Restructuring  2,129           20,682      9,753           30,503
Charges
 Adjusted Products  $ 25,723        $ 25,200    $  97,145      $ 116,696
Gross Profit
 Inter-Segment      3,469           1,393       5,262           209
Eliminations
Adjusted Gross Profit  $ 85,360        $ 94,675    $ 347,901       $ 381,485



BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES
Adjusted Segment Income (Loss) from Operations for the Fiscal Periods Ended
June
(In Thousands)
(Unaudited)
                                Three Months Ended     Twelve Months Ended
                                Fiscal June            Fiscal June
                                2013         2012       2013         2012
INCOME (LOSS) FROM
OPERATIONS:
  Engines
   Income from Operations   $ 10,519     $ 14,684   $ 59,093    $ 66,559
    Restructuring         1,662        8,371      12,443       18,314
  Charges
    Litigation            1,877        -          1,877        -
  Settlement
   Adjusted Engines         $ 14,058     $ 23,055   $ 73,413    $ 84,873
  Income from Operations
  Products
   Income (Loss) from       (93,131)     (27,248)   (104,918)    (25,531)
  Operations
                         2,129        21,732     9,753        31,553
  RestructuringCharges
   Goodwill and          90,080       -          90,080       -
  Tradename Impairment
   Adjusted Products Income $          $          $  (5,085)  $  6,022
  (Loss) from Operations        (922)        (5,516)
  Inter-Segment Eliminations    3,469        1,393      5,262        209
  Adjusted Income (Loss) from   $ 16,605     $ 18,932   $ 73,590    $ 91,104
  Operations



BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets as of the End of Fiscal June
(In Thousands)
(Unaudited)
CURRENT ASSETS:                               2013          2012
Cash and Cash Equivalents                     $  188,445  $  156,075
Accounts Receivable, Net                      190,800       223,996
Inventories                                   408,095       433,684
Deferred Income Tax Asset                     47,534        44,527
Assets Held For Sale                          -             10,404
Prepaid Expenses and Other Current Assets     24,107        42,814
 Total Current Assets                      858,981       911,500
OTHER ASSETS:
Goodwill                                      147,352       204,764
Investments                                   19,764        22,163
Debt Issuance Costs, Net                      4,710         5,717
Other Intangible Assets, Net                  87,980        87,067
Deferred Income Tax Asset                     27,544        66,951
Other Long-Term Assets, Net                   14,025        8,820
 Total Other Assets                        301,375       395,482
PLANT AND EQUIPMENT:
At Cost                                       1,019,355     1,026,845
Less - Accumulated Depreciation               732,160       725,596
 Plant and Equipment, Net                  287,195       301,249
                                              $ 1,447,551   $ 1,608,231
CURRENT LIABILITIES:
Accounts Payable                              $  143,189  $  151,153
Short-Term Debt                               300           3,000
Accrued Liabilities                           131,266       151,756
 Total Current Liabilities                 274,755       305,909
OTHER LIABILITIES:
Accrued Pension Cost                          150,131       296,394
Accrued Employee Benefits                     23,458        25,035
Accrued Postretirement Health Care Obligation 72,695        89,842
Other Long-Term Liabilities                   33,574        34,081
Long-Term Debt                                225,000       225,000
 Total Other Liabilities                   504,858       670,352
SHAREHOLDERS' INVESTMENT:
Common Stock                                  579           579
Additional Paid-In Capital                    77,004        81,723
Retained Earnings                             1,042,917     1,099,859
Accumulated Other Comprehensive Loss          (224,928)     (322,704)
Treasury Stock, at Cost                       (227,634)     (227,487)
 Total Shareholders' Investment            667,938       631,970
                                              $ 1,447,551   $ 1,608,231



BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(In Thousands)
(Unaudited)
                                               Twelve Months Ended Fiscal June
CASH FLOWS FROM OPERATING ACTIVITIES:          2013               2012
Net Income (Loss)                              $ (33,657)        $  29,006
Adjustments to Reconcile Net Income (Loss) to
Net Cash Provided by Operating Activities:
 Depreciation and Amortization              $  55,752         $ 63,714
 Stock Compensation Expense                 6,514              5,555
 Goodwill and Tradename Impairment          90,080             -
 Loss on Disposition of Plant and Equipment 696                174
 Provision (Credit) for Deferred Income     (27,914)           3,926
Taxes
 Earnings of Unconsolidated Affiliates     (4,244)            (5,100)
 Dividends Received from Unconsolidated     4,636              4,029
Affiliates
 Pension Cash Contributions                 (29,363)           (28,746)
 Non-Cash Restructuring Charges             13,081             35,910
Changes in Operating Assets and Liabilities:
 Accounts Receivable                        42,121             6,195
 Inventories                                34,696             (20,693)
 Other Current Assets                       10,232             (6,945)
 Accounts Payable, Accrued Liabilities and  9,196              (9,755)
Income Taxes
Other, Net                                     (11,013)           (11,309)
  Net Cash Provided by Operating          160,813            65,961
Activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to Plant and Equipment               (44,878)           (49,573)
Proceeds Received on Disposition of Plant and  12,492             1,457
Equipment
Payments Made for Acquisitions, Net of Cash    (59,627)           (2,673)
Acquired
  Net Cash Used in Investing Activities   (92,013)           (50,789)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net Borrowings on Revolver                     -                  -
Repayments on Short-Term Debt                  (2,700)            -
Debt Issuance Costs                            -                  (2,007)
Dividends Paid                                 (23,285)           (22,011)
Stock Option Exercise Proceeds and Tax         19,988             235
Benefits
Treasury Stock Purchases                       (30,359)           (39,287)
  Net Cash Used in Financing Activities   (36,356)           (63,070)
EFFECT OF EXCHANGE RATE CHANGES                (74)               (5,666)
NET INCREASE (DECREASE) IN CASH AND CASH       32,370             (53,564)
EQUIVALENTS
CASH AND CASH EQUIVALENTS, Beginning           156,075            209,639
CASH AND CASH EQUIVALENTS, Ending              $ 188,445          $ 156,075

SOURCE Briggs & Stratton Corporation

Website: http://www.briggsandstratton.com
Contact: David J. Rodgers, Senior VP and Chief Financial Officer, (414)
259-5333