- Net sales totaled $438.1 million, an 8% increase compared to
the first quarter of fiscal 2023; foreign currency had a 1%
favorable impact on net sales year-over-year.
- Operating income of $19.5 million, or 4.4% of net sales, an
improvement compared to $13.6 million, or 3.3% of net sales, in the
same period last year.
- Net income of $10.8 million, or $0.43 per diluted share, an
improvement compared to $9.5 million, or $0.38 per diluted share,
in the first quarter of fiscal 2023.
Kimball Electronics, Inc. (Nasdaq: KE) today announced financial
results for the first quarter of fiscal 2024.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20231106549123/en/
Three Months Ended
September 30,
(Amounts in Thousands, except EPS)
2023
2022
Net Sales
$
438,081
$
405,889
Operating Income
$
19,490
$
13,571
Operating Income %
4.4
%
3.3
%
Net Income
$
10,754
$
9,509
Diluted EPS
$
0.43
$
0.38
Richard D. Phillips, Chief Executive Officer, stated, “I am very
pleased with our results for the first quarter, particularly in
light of the current macro environment. Q1 was a strong start to
the fiscal year with record first quarter sales and operating
income, year-over-year margin expansion, and 13% growth in net
income. While these results were in-line with our expectations, we
have been evaluating the impact of recent short-term market
disruptions, including the UAW strike, global economic conditions,
and geopolitical events, and have updated our guidance for the full
year of fiscal 2024 to reflect softening demand in the end market
verticals we serve.”
Mr. Phillips continued, “Longer-term, we continue to be
encouraged by the growth opportunities in these markets, supported
by favorable industry megatrends. With a strong funnel of new
business, our capital allocation strategy is focused on organic
growth, which will likely include additional global expansions in
the future, combined with investments in automation and efficiency.
We are winning together, the Kimball way, and I am excited about
what lies ahead for our Company.”
The Company ended the first quarter of fiscal 2024 with cash and
cash equivalents of $56.6 million and borrowings outstanding on
credit facilities of $296.7 million, including $235.0 million
classified as long term, and $90.5 million of borrowing capacity
available. Cash flow generated from operating activities in the
first quarter of fiscal 2024 was $12.8 million, and capital
expenditures were $11.3 million.
Net Sales by Vertical Market for Q1 Fiscal 2024:
Three Months Ended
September 30,
(Amounts in Millions)
2023
*
2022
*
Percent Change
Automotive (1)
$
212.5
49
%
$
188.2
46
%
13
%
Medical (1)
102.4
23
%
116.0
29
%
(12
)%
Industrial (1)
123.2
28
%
101.7
25
%
21
%
Total Net Sales
$
438.1
$
405.9
8
%
* As a percent of Total Net Sales
(1) Beginning in fiscal year 2024,
miscellaneous sales previously reported in Other are now reported
in the respective three end market verticals; all prior periods
have been recast to conform to current period presentation
– Automotive includes electronic power
steering, body controls, automated driver assist systems, and
electronic braking systems
– Medical includes sleep therapy and
respiratory care, image guided therapy, in vitro diagnostics, drug
delivery, AED, and patient monitoring
– Industrial includes climate controls,
automation controls, optical inspection, smart metering, and public
safety
Net sales for fiscal year 2024 are now expected to be flat with
the prior year, compared to the previous estimate of a 4% to 7%
increase. Operating income is also estimated to be in line with
fiscal 2023, compared to the previous guidance range of 4.7% to
5.2% of net sales. The outlook for capital expenditures did not
change with a range of $70 to $80 million.
Forward-Looking
Statements
Certain statements contained within this release are considered
forward-looking, including our fiscal year 2024 guidance, under the
Private Securities Litigation Reform Act of 1995. The statements
may be identified by the use of words such as “expect,” “should,”
“goal,” “predict,” “will,” “future,” “optimistic,” “confident,” and
“believe.” Undue reliance should not be placed on these
forward-looking statements. These statements are based on current
expectations of future events and thus are inherently subject to
uncertainty. If underlying assumptions prove inaccurate or known or
unknown risks or uncertainties materialize, actual results could
vary materially from our expectations and projections. These
forward-looking statements are subject to risks and uncertainties
including, without limitation, global economic conditions,
geopolitical environment and conflicts such as the war in Ukraine,
global health emergencies, availability or cost of raw materials
and components, foreign exchange rate fluctuations, and our ability
to convert new business opportunities into customers and revenue.
Additional cautionary statements regarding other risk factors that
could have an effect on the future performance of the company are
contained in its Annual Report on Form 10-K for the year ended June
30, 2023.
Non-GAAP Financial
Measures
This press release contains non-GAAP financial measures. The
non-GAAP financial measures contained herein include constant
currency growth, adjusted operating income, adjusted net income,
adjusted diluted EPS, and ROIC. Reconciliations of the reported
GAAP numbers to these non-GAAP financial measures are included in
the Reconciliation of Non-GAAP Financial Measures section below.
Management believes these measures are useful and allow investors
to meaningfully trend, analyze, and benchmark the performance of
the company’s core operations. The company’s non-GAAP financial
measures are not necessarily comparable to non-GAAP information
used by other companies.
About Kimball Electronics,
Inc.
Kimball Electronics is a multifaceted manufacturing solutions
provider of electronics and diversified contract manufacturing
services to customers around the world. From our operations in the
United States, China, India, Japan, Mexico, Poland, Romania,
Thailand, and Vietnam, our teams are proud to provide manufacturing
services for a variety of industries. Recognized for a reputation
of excellence, we are committed to a high-performance culture that
values personal and organizational commitment to quality,
reliability, value, speed, and ethical behavior. Kimball
Electronics, Inc. (Nasdaq: KE) is headquartered in Jasper,
Indiana.
To learn more about Kimball Electronics, visit:
www.kimballelectronics.com.
Conference Call /
Webcast
Date:
November 7, 2023
Time:
10:00 AM Eastern Time
Live Webcast:
investors.kimballelectronics.com/events-and-presentations/events
Dial-In #:
404-975-4839 (other locations -
833-470-1428)
Conference ID:
408670
For those unable to participate in the live webcast, the call
will be archived at investors.kimballelectronics.com.
Lasting relationships. Global
success.
Financial highlights for the first quarter ended September 30,
2023 are as follows:
Condensed Consolidated Statements of
Income
(Unaudited)
Three Months Ended
(Amounts in Thousands, except Per Share
Data)
September 30, 2023
September 30, 2022
Net Sales
$
438,081
100.0
%
$
405,889
100.0
%
Cost of Sales
402,539
91.9
%
376,568
92.8
%
Gross Profit
35,542
8.1
%
29,321
7.2
%
Selling and Administrative Expenses
16,052
3.7
%
15,750
3.9
%
Operating Income
19,490
4.4
%
13,571
3.3
%
Interest Income
299
0.1
%
17
—
%
Interest Expense
(5,447
)
(1.2
)%
(1,920
)
(0.5
)%
Non-Operating Income (Expense), net
(1,131
)
(0.3
)%
500
0.2
%
Other Income (Expense), net
(6,279
)
(1.4
)%
(1,403
)
(0.3
)%
Income Before Taxes on Income
13,211
3.0
%
12,168
3.0
%
Provision for Income Taxes
2,457
0.5
%
2,659
0.7
%
Net Income
$
10,754
2.5
%
$
9,509
2.3
%
Earnings Per Share of Common Stock:
Basic
$
0.43
$
0.38
Diluted
$
0.43
$
0.38
Average Number of Shares Outstanding:
Basic
25,041
24,826
Diluted
25,238
24,955
Condensed Consolidated Statements of Cash Flows
Three Months Ended
(Unaudited)
September 30,
(Amounts in Thousands)
2023
2022
Net Cash Flow provided by (used for)
Operating Activities
$
12,801
$
(60,194
)
Net Cash Flow used for Investing
Activities
(11,302
)
(19,320
)
Net Cash Flow provided by Financing
Activities
13,985
50,769
Effect of Exchange Rate Change on Cash,
Cash Equivalents, and Restricted Cash
(549
)
(1,391
)
Net Increase (Decrease) in Cash, Cash
Equivalents, and Restricted Cash
14,935
(30,136
)
Cash, Cash Equivalents, and Restricted
Cash at Beginning of Period
43,864
49,851
Cash, Cash Equivalents, and Restricted
Cash at End of Period
$
58,799
$
19,715
(Unaudited)
Condensed Consolidated Balance
Sheets
September 30,
2023
June 30, 2023
(Amounts in Thousands)
ASSETS
Cash and cash equivalents
$
56,581
$
42,955
Receivables, net
259,419
308,167
Contract assets
87,675
78,798
Inventories
482,229
450,319
Prepaid expenses and other current
assets
45,141
49,188
Property and Equipment, net
268,645
267,684
Goodwill
12,011
12,011
Other Intangible Assets, net
11,603
12,335
Other Assets
39,862
38,262
Total Assets
$
1,263,166
$
1,259,719
LIABILITIES AND SHARE OWNERS’
EQUITY
Current portion of borrowings under credit
facilities
$
61,680
$
46,454
Accounts payable
308,912
322,274
Advances from customers
41,467
33,905
Accrued expenses
66,272
72,515
Long-term debt under credit facilities,
less current portion
235,000
235,000
Long-term income taxes payable
3,255
5,859
Other long-term liabilities
18,318
19,718
Share Owners’ Equity
528,262
523,994
Total Liabilities and Share Owners’
Equity
$
1,263,166
$
1,259,719
Reconciliation of Non-GAAP Financial
Measures
(Unaudited)
(Amounts in Thousands, except Per Share
Data)
Three Months Ended
September 30,
2023
2022
Net Sales Growth (vs. same period in prior
year)
8
%
39
%
Foreign Currency Exchange Impact
1
%
(5
)%
Constant Currency Growth
7
%
44
%
Operating Income, as reported
$
19,490
$
13,571
SERP
(177
)
(235
)
Adjusted Operating Income
$
19,313
$
13,336
Twelve Months Ended
September 30,
2023
2022
Operating Income
$
93,648
$
61,340
SERP
759
(1,711
)
Legal Recovery
(212
)
—
Adjusted Operating Income (non-GAAP)
$
94,195
$
59,629
Tax Effect
22,913
16,356
After-tax Adjusted Operating Income
$
71,282
$
43,273
Average Invested Capital (1)
$
738,096
$
544,711
ROIC
9.7
%
7.9
%
(1) Average invested capital is computed
using Share Owners’ equity plus current and non-current debt less
cash and cash equivalents averaged for the last five quarters.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231106549123/en/
Andrew D. Regrut Vice President, Investor Relations 812.827.4151
Investor.Relations@kimballelectronics.com
Kimball Electronics (NASDAQ:KE)
Historical Stock Chart
From Mar 2024 to Apr 2024
Kimball Electronics (NASDAQ:KE)
Historical Stock Chart
From Apr 2023 to Apr 2024