- Net sales in the first quarter of fiscal 2022 totaled $292.7
million.
- Net income of $2.6 million, or $0.10 per diluted share.
- Adjusted non-GAAP net income of $1.5 million, or $0.06 per
diluted share.
Kimball Electronics, Inc. (Nasdaq: KE) today announced financial
results for the first quarter ended September 30, 2021.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20211103006226/en/
Three Months Ended
September 30,
(Amounts in Thousands, except EPS)
2021
2020
Net Sales
$
292,717
$
331,749
Operating Income
$
4,780
$
17,807
Adjusted Operating Income (non-GAAP)
(1)
$
3,309
$
18,016
Operating Income %
1.6
%
5.4
%
Adjusted Operating Income (non-GAAP) %
1.1
%
5.4
%
Net Income
$
2,564
$
16,811
Adjusted Net Income (non-GAAP) (1)
$
1,514
$
16,552
Diluted EPS
$
0.10
$
0.66
Adjusted Diluted EPS (non-GAAP) (1)
$
0.06
$
0.65
(1) A reconciliation of GAAP and non-GAAP
financial measures is included below.
Donald D. Charron, Chairman and Chief Executive Officer, stated,
“I am proud of our people, our company, and the results for Q1,
considering the difficult operating environment caused by issues in
the global supply chain. Component shortages, which are impacting
companies worldwide, continue to make it challenging to keep pace
with strong market demand. We were disappointed by the lack of
improvement in the overall situation in the September ending
quarter, when we were actually expecting some level of recovery.
Conditions deteriorated in the period due to COVID related
restrictions in Malaysia, and the worsening of the backlog in U.S.
west coast ports.”
Mr. Charron continued, “While these supply chain challenges had
a more significant impact on absorption than anticipated, we are
committed to retaining our experienced and talented workforce
around the world as we see these disruptions as a short-term issue.
As supply constraints ease, we are well positioned to ramp
production on our record backlog and support our strong funnel of
new product introductions. We are reiterating our guidance for
fiscal 2022, although the bifurcation between the first and second
halves will be more pronounced.”
First Quarter Fiscal Year 2022 Overview
- Net sales decreased 12% compared to the first quarter of fiscal
year 2021. Foreign currency had a favorable impact of 1% on net
sales in the quarter compared to the same period a year ago.
- Cash flow used for operating activities of $8.2 million during
the first quarter of fiscal 2022.
- Cash conversion days (“CCD”) for the quarter ended September
30, 2021 were 73 days, down from 76 days in the first quarter of
fiscal year 2021. CCD is calculated as the sum of days sales
outstanding plus contract asset days plus production days supply on
hand less accounts payable days.
- Investments in capital expenditures were $12.7 million during
the quarter.
- Cash and cash equivalents were $89.3 million and borrowings
outstanding on credit facilities were $72.6 million at September
30, 2021, including $40.0 million classified as long term.
Fiscal Year 2022 Guidance
As part of today’s announcement, the Company is reiterating its
guidance for fiscal year 2022.
- Net sales in the range of $1.4 - $1.5 billion, an 8% to 16%
increase year-over-year.
- Operating income in the range of 4.5% - 5.0% of net sales.
- Capital expenditures of $60 - $70 million in support of the
expansions of the facilities in Thailand and Mexico.
Net Sales by Vertical Market for Q1 Fiscal 2022:
Three Months Ended
September 30,
(Amounts in Millions)
2021
*
2020
*
Percent Change
Automotive
$
129.4
44
%
$
118.3
36
%
9
%
Medical
85.0
29
%
127.1
38
%
(33)
%
Industrial
63.9
22
%
70.0
21
%
(9)
%
Public Safety
11.1
4
%
13.3
4
%
(16)
%
Other
3.3
1
%
3.0
1
%
7
%
Total Net Sales
$
292.7
$
331.7
(12)
%
∗ As a percent of Total Net Sales
– 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, and smart metering
– Public Safety includes thermal imaging,
first responder electronics, and security
Forward-Looking
Statements
Certain statements contained within this release are considered
forward-looking, including our fiscal year 2022 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, global health emergencies including the
COVID-19 pandemic, 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, 2021.
Non-GAAP Financial
Measures
This press release contains non-GAAP financial measures. The
non-GAAP financial measures contained herein include 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 4, 2021
Time:
10:00 AM Eastern Time
Live Webcast:
investors.kimballelectronics.com/events-and-presentations/events
Dial-In #:
877-248-9893 (International Calls
- 873-415-0287)
Conference ID:
8062466
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,
2021 are as follows:
Condensed Consolidated Statements of
Income
(Unaudited)
Three Months Ended
(Amounts in Thousands, except Per Share
Data)
September 30, 2021
September 30, 2020
Net Sales
$
292,717
100.0
%
$
331,749
100.0
%
Cost of Sales
277,117
94.7
%
301,166
90.8
%
Gross Profit
15,600
5.3
%
30,583
9.2
%
Selling and Administrative Expenses
12,204
4.2
%
13,117
3.9
%
Other General Expense (Income)
(1,384)
(0.5)
%
(341)
(0.1)
%
Operating Income
4,780
1.6
%
17,807
5.4
%
Other Income (Expense), net
(1,249)
(0.4)
%
2,135
0.6
%
Income Before Taxes on Income
3,531
1.2
%
19,942
6.0
%
Provision for Income Taxes
967
0.3
%
3,131
0.9
%
Net Income
$
2,564
0.9
%
$
16,811
5.1
%
Earnings Per Share of Common Stock:
Basic
$
0.10
$
0.67
Diluted
$
0.10
$
0.66
Average Number of Shares Outstanding:
Basic
25,145
25,153
Diluted
25,301
25,270
Condensed Consolidated Statements of Cash Flows
Three Months Ended
(Unaudited)
September 30,
(Amounts in Thousands)
2021
2020
Net Cash Flow (used for) provided by
Operating Activities
$
(8,187)
$
20,701
Net Cash Flow used for Investing
Activities
(12,868)
(8,322)
Net Cash Flow provided by (used for)
Financing Activities
4,965
(5,787)
Effect of Exchange Rate Change on Cash and
Cash Equivalents
(1,028)
1,793
Net (Decrease) Increase in Cash and Cash
Equivalents
(17,118)
8,385
Cash and Cash Equivalents at Beginning of
Period
106,442
64,990
Cash and Cash Equivalents at End of
Period
$
89,324
$
73,375
(Unaudited)
Condensed Consolidated Balance
Sheets
September 30,
2021
June 30, 2021
(Amounts in Thousands)
ASSETS
Cash and cash equivalents
$
89,324
$
106,442
Receivables, net
176,881
203,382
Contract assets
46,080
45,863
Inventories
262,125
200,386
Prepaid expenses and other current
assets
27,773
27,320
Property and Equipment, net
166,085
163,251
Goodwill
12,011
12,011
Other Intangible Assets, net
16,606
17,008
Other Assets
41,381
38,398
Total Assets
$
838,266
$
814,061
LIABILITIES AND SHARE OWNERS’
EQUITY
Current portion of borrowings under credit
facilities
$
32,636
$
26,214
Accounts payable
247,175
216,544
Accrued expenses
46,772
58,016
Long-term debt under credit facilities,
less current portion
40,000
40,000
Long-term income taxes payable
7,812
8,854
Other
24,057
22,461
Share Owners’ Equity
439,814
441,972
Total Liabilities and Share Owners’
Equity
$
838,266
$
814,061
Reconciliation of Non-GAAP Financial
Measures
(Unaudited)
(Amounts in Thousands, except Per Share
Data)
Three Months Ended
September 30,
2021
2020
Operating Income, as reported
$
4,780
$
17,807
SERP
(87)
550
Legal Recovery
(1,384)
(341)
Adjusted Operating Income
$
3,309
$
18,016
Net Income, as reported
$
2,564
$
16,811
Legal Recovery, After-Tax
(1,050)
(259)
Adjusted Net Income
$
1,514
$
16,552
Diluted Earnings per Share, as
reported
$
0.10
$
0.66
Legal Recovery
(0.04)
(0.01)
Adjusted Diluted Earnings per Share
$
0.06
$
0.65
Twelve Months Ended
September 30,
2021
2020
Operating Income
$
52,676
$
38,688
Goodwill Impairment
—
7,925
SERP
1,436
1,420
Legal Recovery
(1,415)
(341)
Adjusted Operating Income (non-GAAP)
$
52,697
$
47,692
Tax Effect
11,017
9,940
After-tax Adjusted Operating Income
$
41,680
$
37,752
Average Invested Capital (1)
$
414,121
$
435,465
ROIC
10.1
%
8.7
%
(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/20211103006226/en/
Andrew D. Regrut Head of Investor Relations 812.827.4151
Investor.Relations@kimballelectronics.com
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