Briggs Stratton (NYSE BGG)

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					Briggs & Stratton (NYSE: BGG)                                                                                                     Location: Wauwatosa, WI
Analyst: Rishi Trivedi                                                                                                                                   Date: 19 November 2004
                               BUSINESS DESCRIPTION                                                                STOCK PRICE PERFORMANCE
Briggs & Stratton Corp is a leading designer, manufacturer, market, and servicer of
Iron Mountain Incorporated provides records and information management, and
air cooled gasoline engines for outdoor power equipment to OEMs worldwide. Briggs
related services. The company’s records management services include records
& Stratton engines are marketed under various brand names, including Classic,
management program development and implementation to help customers comply
Sprint, Quattro, Quantum, INTEK, I/C, Industrial Plus and Vanguard in both the
with specific regulatory requirements; implementation of policy-based programs;
consumer and commercial markets. Additionally, through a wholly owned subsidiary                                                                                             1,600
digital archiving services for secure and legally compliant long term archiving of
the Company designs, manufactures, and markets portable generators, pressure                          42.00
electronic records; secure shredding services that ensure privacy and a secure chain
washers and related accessories. Finally, the firm sells more racing engines than any
of record custody; and specialized services for vital records, film and sound, and                                                                                           1,200
firm in the world.
regulated industries, such as healthcare, energy, and financial services.                             39.00
                                     INVESTMENT THESIS
                                                                                                      36.00                                                                  800
B&S operates principally in the quasi-competitive market of air cooled gas engines,
earning sustainable returns-on-equity near 20%. Due solely to a $10 million bad debt
expense charge for industry leader in the document management space,
Iron Mountain is the an potentially insolvent OEM buyer, the firm revised earnings                    33.00                                                                  400
down from $165 to $155 million FY05, meanwhile Company has gains in top line
commanding a 50% market share in the U.S. Therecording 20% also achieved
considerable market share in Europe and South America. Management has
growth and 5-7% long term organic growth. Despite low required Capex, pricing
succeeded in achieving top line growth while at the samerisk, the firm trades at nearly               30.00                                                                0
increases in a strong market, and no more than average time improving operating
efficiency. While the Companyfirm has the added merit of benefitingas a result of a
10x next year's earnings. The has taken on considerable leverage from the Bush                         7/19/2004       8/19/2004             9/19/2004              10/19/2004
election, CPI inflation, and the Sears stable cash flows should believe none of this
string of acquisitions, Iron Mountain's Kmart merger--although I allow it to delever is
quickly, increasing returns to the equity holders.
priced into the equity.

                                                                              FINANCIAL SUMMARY

Results of                        FY Ended 31 June,
Operations                    2002      2003      2004    LTM(1)          Balance Sheet Data                       Trading Statistics
Revenue                     $1,529.3 $1,657.6 $1,947.3    $2,054.9        Total Debt                  $360.9       Share Price (11/17/2004)                                    $37.35
  Growth                     17.0%     8.4%      17.5%      NA            Cash & Equivalents            28.9       Diluted Shares Outstanding (6/27/2004)                        25.5
EBITDA                       182.2     213.4     301.1     291.7          Net Debt                     332.1       52 Week High                                                 44.50
  EBITDA Margin             11.9%      12.9%     15.5%    14.2%           Pre-Acquisition Net Debt     $18.6       52 Week Low                                                  31.18
EBIT                         116.2      149.9    234.2    222.7                                                    Equity Market Value                                           952.4
 EBIT Margin                 7.6%       9.0%     12.0%    10.8%           Credit Stats                 LTM         Net Debt, Preferred & Minority Interest                       332.1
                                                                          Total Debt/EBITDA             1.2x       Enterprise Value (EV)                                      $1,284.5
D&A                          65.9       63.5     66.8      68.9           Net Debt/EBITDA               1.1x
CapEx                        (43.5)     (36.9)   (52.2)    (58.8)         EBITDA/Interest               8.1x       Valuation Multiples           2001        2002     2003    LTM(1)
Interest Expense              44.4       40.3     37.6      35.9                                                   EV/Revenue                     0.8x       0.8x     0.7x     0.6x
                                                                                                                   EV/EBITDA                      7.0x       6.0x     4.3x     4.4x
                                                                                                                   EV/EBIT                       11.1x       8.6x     5.5x     5.8x

(1) Figures as of 6/30/04