Methode Electronics, Inc. (NYSE:MEI), a global developer of
custom-engineered and application-specific products and solutions,
announced financial results for the third quarter and first nine
months of Fiscal 2018 ended January 27, 2018.
Third Quarter Fiscal 2018Methode's
third-quarter Fiscal 2018 net sales increased $32.4 million, or
16.6 percent, to $228.0 million from $195.6 million in the same
quarter of Fiscal 2017. Year over year, currency rate fluctuations
increased net sales $4.4 million.
Net income decreased $48.0 million to a loss of $24.3 million or
$0.65 per share, in the third quarter of Fiscal 2018 from income of
$23.7 million, or $0.63 per share, in the same period of Fiscal
2017. In the Fiscal 2018 third quarter, the impact from increased
tax expense due to the enactment of the Tax Cuts and Jobs Act
(“U.S. Tax Reform”) was $56.8 million, or $1.52 per share.
Year over year, Fiscal 2018 third-quarter net income was
negatively affected by:
- increased tax expense of $56.8 million, due to the enactment of
the U.S. Tax Reform;
- higher wages expense of $1.6 million;
- increased intangible asset amortization expense of $1.4 million
related to acquisitions;
- warranty expense in the Automotive segment of $1.0
million;
- higher interest expense of $0.5 million;
- increased travel expense of $0.4 million;
- customer pricing reductions; and
- unfavorable currency impact.
Year over year, Fiscal 2018 third-quarter net income benefitted
from:
- higher sales in the Automotive segment (inclusive of new
acquisitions);
- reversal of expense for performance-based stock award
amortization of $6.0 million due to recent changes regarding Fiscal
2020 EBITDA estimates (driven primarily by the slower adoption of
Dabir Surfaces medical devices);
- increased international government grants of $2.1 million;
and
- gain from the sale of a licensing agreement of $1.6
million.
Consolidated gross margins as a percentage of net sales
decreased to 26.4 percent in the Fiscal 2018 third quarter from
27.3 percent in the Fiscal 2017 period. Gross margins declined
primarily as a result of sales mix related to newly acquired
businesses in the Automotive segment, warranty expense, unfavorable
currency impact and pricing reductions in the Automotive and
Interface segments.
Selling and administrative expenses as a percentage of sales
decreased to 9.9 percent for the Fiscal 2018 third quarter compared
to 12.1 percent in the same period last year. Selling and
administrative expenses decreased $1.2 million, or 5.1 percent, to
$22.5 million in the Fiscal 2018 third quarter compared to $23.7
million in the prior-year third quarter due primarily to the
reversal of the stock award expense as well as the absence of
expense related to operating units exited at the end of Fiscal
2017. This was partially offset by expenses from new acquisitions
and increases for wages and travel.
Year over year, intangible asset amortization expense in the
third quarter of Fiscal 2018 increased $1.4 million, or 233.3
percent, to $2.0 million, due to new acquisitions.
In the Fiscal 2018 third quarter, income tax expense increased
$56.8 million to $63.4 million compared to $6.6 million in the
Fiscal 2017 third quarter, primarily due to the enactment of the
U.S. Tax Reform. The $56.8 million of U.S. Tax Reform expense can
be further broken down into provisional estimates of $52.6 million
for a one-time repatriation tax and $4.2 million for the
re-measurement of U.S. deferred tax assets in the consolidated
financial statements. The Company’s effective tax rate increased to
162.1 percent in the Fiscal 2018 period from 21.9 percent in the
previous third quarter. The Company’s tax rate excluding the
effects of the U.S. Tax Reform charge would have been 16.9 percent
for the Fiscal 2018 third quarter.
Segment ComparisonsComparing the Automotive
segment's Fiscal 2018 third quarter to the same period of Fiscal
2017,
- Net sales improved 22.9 percent, or $34.5 million ($22.0
million from Pacific Insight and $8.5 million from Procoplast),
attributable to:
- a 53.1 percent sales increase in Europe due to sales from
Procoplast, higher customer-funded tooling and design fees,
favorable currency impact and higher hidden switch and sensor
product volumes; and
- a 21.6 percent sales improvement in North America due to sales
from Pacific Insight and increased user interface product volume,
partially mitigated by lower transmission lead-frame assemblies
volume and pricing reductions; partially offset by
- an 8.9 percent sales decrease in Asia due to lower sales of
transmission lead-frame assemblies and steering angle sensor
product volumes and pricing reductions.
- Gross margins as a percentage of sales declined to 27.9 percent
from 29.8 percent due to sales mix related to acquisitions,
warranty expense, unfavorable currency impact and pricing
reductions.
- Income from operations improved $2.5 million, or 6.8 percent,
resulting from higher sales and reversal of the stock award
expense, partially offset by increased intangible asset
amortization and warranty expense, pricing reductions and
unfavorable currency impact.
Comparing the Interface segment's Fiscal 2018 third quarter to
the same period of Fiscal 2017,
- Net sales decreased 6.4 percent, or $1.9 million, attributable
to:
- a 40.0 percent sales decline in Asia due to lower legacy
product volume; and
- a 6.7 percent sales decrease in North America due to the exit
of Connectivity at the end of Fiscal 2017, partially offset by
increased radio remote control product volume.
- Sales in Europe were constant, as improved radio remote control
product volume was offset by decreased data solution product
volume.
- Gross margins as a percentage of sales decreased to 22.2
percent from 22.8 percent due to pricing reductions and unfavorable
currency impact, partially offset by increased radio remote control
product volume.
- Income from operations increased $0.5 million, or 38.5 percent,
due to lower legal fees and the reversal of stock award expense,
partially offset by unfavorable currency impact.
Comparing the Power Products segment's Fiscal 2018 third quarter
to the same period of Fiscal 2017,
- Net sales decreased 1.3 percent, or $0.2 million, attributable
to:
- an 8.8 percent sales decrease in North America as the result of
lower PowerRail® and other busbar product volumes; partially offset
by
- a 10.5 percent sales improvement in Europe driven by new
product launches, partially offset by lower bypass switch product
volume.
- Sales in Asia were constant.
- Gross margins as a percentage of sales decreased to 23.7
percent from 26.6 percent, primarily due to higher copper
prices.
- Income from operations declined $0.2 million, or 6.3 percent,
as the result of lower sales and unfavorable sales mix, partially
offset by the reversal of the stock award expense and lower bad
debt expense.
First Nine Months Fiscal 2018Methode's
first-nine months of Fiscal 2018 net sales increased $62.6 million,
or 10.5 percent, to $659.3 million from $596.7 million in the same
period of Fiscal 2017. Year over year, currency rate fluctuations
increased net sales by $6.5 million.
Net income decreased $49.3 million to $20.4 million, or $0.54
per share, in the first nine months of Fiscal 2018 from $69.7
million, or $1.86 per share, in the same period of Fiscal 2017. In
the first nine months of Fiscal 2018, the impact from increased tax
expense due to the enactment of the Tax Cuts and Jobs Act was $56.8
million, or $1.52 per share.
Year over year, Fiscal 2018 first-nine month net income was
negatively affected by:
- increased tax expense of $56.8 million, due to the enactment of
the U.S. Tax Reform;
- acquisition-related expenses and purchase accounting
adjustments of $6.8 million;
- increased wages and other compensation expenses of $2.1
million;
- increased intangible asset amortization expense of $1.9 million
related to acquisitions;
- increased investment in Dabir Surfaces of $1.8 million;
- the absence of commodity pricing adjustments in the Automotive
segment of $1.0 million;
- the absence of one-time reversal of accruals related to
customer commercial issues in the Automotive segment of $1.0
million;
- warranty expense in the Automotive segment of $1.0
million;
- customer pricing reductions;
- unfavorable currency impact; and
- unfavorable commodity pricing of certain raw materials.
Year over year, Fiscal 2018 first-nine month net income
benefitted from:
- higher sales in the Automotive (inclusive of new acquisitions)
and Power Products segments;
- reversal of expense for performance-based stock award
amortization of $6.0 million due to recent changes regarding Fiscal
2020 EBITDA estimates (driven primarily by slower adoption of Dabir
Surfaces medical devices);
- gain from the sale of rights for a licensing agreement of $1.6
million; and
- increased international government grants of $0.6 million.
Consolidated gross margins as a percentage of sales decreased
slightly to 27.0 percent in the Fiscal 2018 nine months from 27.3
percent in the Fiscal 2017 nine months. Gross margins in the Fiscal
2018 period were negatively impacted by unfavorable sales mix
related to acquisitions, warranty expense, purchase accounting
adjustments, unfavorable currency impact, pricing reductions,
higher commodity pricing on certain raw materials and increased
investment in Dabir, partially offset by higher sales. Gross
margins were favorably impacted in the Fiscal 2017 period by the
commodity pricing adjustments and reversal of customer commercial
accruals.
Selling and administrative expenses as a percentage of sales
decreased to 12.6 percent for the Fiscal 2018 first nine months
compared to 12.8 percent in the same period last year. Selling and
administrative expenses increased $6.9 million, or 9.0 percent, to
$83.3 million in the Fiscal 2018 first nine months compared to
$76.4 million in the prior-year period, due primarily to
acquisition-related expense, additional selling and administrative
expenses from acquisitions and higher wages and travel expenses,
partially mitigated by the reversal of the stock award expense and
the absence of expense related to operating units exited at the end
of Fiscal 2017.
Year over year intangible asset amortization expense in the
Fiscal 2018 nine months increased $1.9 million, or 105.6 percent,
to $3.7 million, due to new acquisitions.
In the first nine months of Fiscal 2018, income tax expense
increased $54.3 million to $72.6 million compared to $18.3 million
in the Fiscal 2017 period primarily due to the enactment of the
U.S. Tax Reform. Of the total income tax expense of $72.6 million
recorded during the Fiscal 2018 nine months, $56.8 million relates
to U.S. Tax Reform. This can be further broken down into
provisional estimates of $52.6 million for a one-time repatriation
tax and $4.2 million for the remeasurement of U.S. deferred tax
assets in the consolidated financial statements. The Company’s
effective tax rate increased to 78.1 percent in the Fiscal 2018
period from 20.8 percent in the previous period. The Company’s tax
rate excluding the effects of Tax Reform charge would have been
17.0 percent for the nine months of Fiscal 2018.
Segment ComparisonsComparing the Automotive
segment's Fiscal 2018 nine months to the same period of Fiscal
2017,
- Net sales increased 14.4 percent, or $66.5 million ($29.0
million from Pacific Insight and $17.6 million from Procoplast),
attributable to:
- a 41.6 percent sales improvement in Europe due to sales from
Procoplast, increased customer- funded tooling and design fees,
favorable currency impact and higher hidden switch and sensor
product volumes; and
- a 10.5 percent sales increase in North America due to sales
from Pacific Insight and higher user- interface sales volumes,
partially offset by center console pricing reductions, net of
higher sales volumes and decreased transmission lead-frame
assemblies volume and pricing reductions; partially offset by
- an 8.9 percent sales decrease in Asia due to lower transmission
lead-frame assemblies and steering angle sensor product volumes and
pricing reductions.
- Gross margins as a percentage of sales declined to 28.4 percent
from 29.5 percent due to unfavorable sales mix due to acquisitions,
warranty expense, purchase accounting adjustments, pricing
reductions, and unfavorable currency impact. Gross margins in the
Fiscal 2017 period were favorably impacted by commodity pricing
adjustments and one-time reversal of accruals related to customer
commercial issues.
- Income from operations increased $6.9 million, or 6.2 percent,
as the result of increased sales and the reversal of stock award
expense, partially offset by acquisition-related costs, increased
intangible asset amortization expense, warranty expense, pricing
reductions, unfavorable currency impact, the absence of the Fiscal
2017 favorable commodity pricing adjustments and one-time reversal
of accruals, and higher severance and travel expenses.
Comparing the Interface segment's Fiscal 2018 first nine months
to the same period of Fiscal 2017,
- Net sales decreased 9.1 percent, or $8.6 million, attributable
to:
- a 41.4 percent sales decline in Asia due to lower legacy
product volume; and
- a 12.7 percent sales decrease in North America due to the exit
of Connectivity at the end of Fiscal 2017, partially mitigated by
higher radio remote control and data solutions product volumes;
partially offset by
- a 10.3 percent sales improvement in Europe as the result of
increased radio remote control product volume, partially offset by
lower data solution product volume and pricing reductions.
- Gross margins as a percentage of sales improved to 22.0 percent
from 21.6 percent due to favorable sales mix, partially mitigated
by lower sales volume and price reductions.
- Income from operations increased to $4.0 million from a loss of
$0.1 million due to favorable sales mix, lower legal expenses and
the reversal of stock award expense, partially offset by lower
sales volumes.
Comparing the Power Products segment's Fiscal 2018 first nine
months to the same period of Fiscal 2017,
- Net sales increased 12.3 percent, or $4.9 million, attributable
to:
- a 93.0 percent sales improvement in Europe driven by higher
bypass switch product volume;
- a 7.1 percent sales increase in Asia due to higher busbar
product volume; partially offset by
- a 2.9 percent sales decrease in North America.
- Gross margins as a percentage of sales decreased to 25.9
percent from 26.3 percent due to unfavorable copper pricing,
partially offset by higher sales.
- Income from operations improved $1.6 million, or 20.8 percent,
as the result of increased sales, the reversal of stock award
expense and lower legal fees, partially mitigated by unfavorable
copper pricing.
GuidanceMethode updated Fiscal 2018 guidance
for sales to the range of $900 million to $910 million from a range
of $880 million to $900 million, pre-tax income from operations to
the range of $125 to $130 million from $114 to $127 million and
earnings per share (inclusive of the U.S. Tax Reform charge) to the
range of $1.23 to $1.33 from $2.43 to $2.63. The U.S. Tax Reform
charge will negatively impact Fiscal 2018 earnings per share by
$1.52.
The guidance ranges for Fiscal 2018 are based upon management's
expectations regarding a variety of factors and involve a number of
risks and uncertainties, including, but not limited to, the
following:
- sales volumes and timing thereof for certain makes and models
of pickup trucks, sports utility vehicles and passenger cars;
- price of commodities, particularly copper and resins;
- potential effect of increased legal fees related to the
Hetronic lawsuit;
- sales mix within the markets served;
- currency exchange effect of the operations of foreign
businesses;
- continued ability to realize manufacturing efficiencies;
- no significant supplier issues or manufacturing quality
events;
- no unusual or one-time items;
- no additional acquisitions, divestitures or restructuring
charges; and
- changes to technical guidance or assumptions associated with
the provisional tax estimate of U.S. tax reform.
Management CommentsPresident and Chief
Executive Officer Donald W. Duda said, “While tax reform will not
dramatically change Methode’s tax rate, we believe it will provide
much greater flexibility in how we manage our cash
internationally.”
Mr. Duda concluded, “We remain very confident in our Dabir
medical business, however, the pace and timing of its adoption
continues to be constrained by the pace at which health systems
adopt new products.”
Conference CallThe Company will conduct a
conference call and Webcast to review financial and operational
highlights led by its President and Chief Executive Officer, Donald
W. Duda, and Chief Financial Officer, John Hrudicka, today at 10:00
a.m. Central time.
To participate in the conference call, please dial (877)
407-9210 (domestic) or (201) 689-8049 (international) at least five
minutes prior to the start of the event. A simultaneous Webcast can
be accessed through the Company’s Web site, www.methode.com, by
selecting the Investor Relations page, and then clicking on the
“Webcast” icon.
A replay of the conference call will be available shortly after
the call through April 1, 2018, by dialing (877) 481-4010 and
providing Conference ID number 26119. On the Internet, a replay
will be available for 30 days through the Company’s Web site,
www.methode.com, by selecting the Investor Relations page and then
clicking on the “Webcast” icon.
About Methode Electronics, Inc.Methode
Electronics, Inc. (NYSE:MEI) is a global developer of custom
engineered and application specific products and solutions with
manufacturing, design and testing facilities in Belgium, Canada,
China, Egypt, Germany, India, Italy, Lebanon, Malta, Mexico,
Singapore, Switzerland, the United Kingdom and the United States.
We design, manufacture and market devices employing electrical,
electronic, wireless, safety radio remote control, sensing and
optical technologies to control and convey signals through sensors,
interconnections and controls. Our business is managed on a segment
basis, with those segments being Automotive, Interface, Power
Products and Other. Our components are in the primary end markets
of the automobile, computer, information processing and networking
equipment, voice and data communication systems, consumer
electronics, appliances, aerospace vehicles and industrial
equipment industries. Further information can be found on Methode's
Web site www.methode.com.
Forward-Looking StatementsThis press release
contains certain forward-looking statements, which reflect
management's expectations regarding future events and operating
performance and speak only as of the date hereof. These
forward-looking statements are subject to the safe harbor
protection provided under the securities laws. Methode undertakes
no duty to update any forward-looking statement to conform the
statement to actual results or changes in Methode's expectations on
a quarterly basis or otherwise. The forward-looking statements in
this press release involve a number of risks and uncertainties. The
factors that could cause actual results to differ materially from
our expectations are detailed in Methode's filings with the
Securities and Exchange Commission, such as our annual and
quarterly reports. Such factors may include, without limitation,
the following: (1) dependence on a small number of large customers,
including two large automotive customers; (2) dependence on the
automotive, appliance, computer and communications industries; (3)
investment in programs prior to the recognition of revenue; (4)
ability to successfully market and sell Dabir Surfaces; (5)
significant adjustments to expense based on the probability of
meeting certain performance levels in our long-term incentive plan;
(6) timing, quality and cost of new program launches; (7) ability
to withstand price pressure, including pricing reductions; (8)
success of Pacific Insight and Procoplast and/or our ability to
implement and profit from new applications of the acquired
technology; (9) recognition of goodwill impairment charges; (10)
customary risks related to conducting global operations; (11)
currency fluctuations; (12) the effect of any material
modifications to NAFTA and other international trade agreements;
(13) ability to withstand business interruptions; (14) dependence
on our supply chain; (15) income tax rate fluctuations; (16) breach
of our information technology systems; (17) dependence on the
availability and price of raw materials; (18) continued economic
challenges in Europe including the exit of the United Kingdom from
the European Union; (19) fluctuations in our gross margins; (20)
ability to keep pace with rapid technological changes; (21) ability
to protect our intellectual property; (22) ability to avoid design
or manufacturing defects; (23) ability to compete effectively; (24)
successfully benefit from acquisitions and divestitures; (25) costs
and expenses due to regulations regarding conflict minerals; and
(26) the location of a significant amount of cash outside of the
U.S.
For Methode Electronics, Inc. - Investor Contacts:Kristine
Walczak, Dresner Corporate Services, 312-780-7205,
kwalczak@dresnerco.com
METHODE ELECTRONICS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited)($ in millions, except per
share data)
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
January 27, 2018 |
|
January 28, 2017 |
|
January 27, 2018 |
|
January 28, 2017 |
Net Sales |
|
$ |
228.0 |
|
|
$ |
195.6 |
|
|
$ |
659.3 |
|
|
$ |
596.7 |
|
|
|
|
|
|
|
|
|
|
Cost of Products
Sold |
|
167.9 |
|
|
142.2 |
|
|
481.6 |
|
|
433.7 |
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
60.1 |
|
|
53.4 |
|
|
177.7 |
|
|
163.0 |
|
|
|
|
|
|
|
|
|
|
Selling and
Administrative Expenses |
|
22.5 |
|
|
23.7 |
|
|
83.3 |
|
|
76.4 |
|
Amortization of
Intangibles |
|
2.0 |
|
|
0.6 |
|
|
3.7 |
|
|
1.8 |
|
|
|
|
|
|
|
|
|
|
Income from
Operations |
|
35.6 |
|
|
29.1 |
|
|
90.7 |
|
|
84.8 |
|
|
|
|
|
|
|
|
|
|
Interest Expense
(Income), Net |
|
0.3 |
|
|
(0.2 |
) |
|
0.3 |
|
|
(0.3 |
) |
Other Income, Net |
|
(3.8 |
) |
|
(1.0 |
) |
|
(2.6 |
) |
|
(2.9 |
) |
|
|
|
|
|
|
|
|
|
Income before Income
Taxes |
|
39.1 |
|
|
30.3 |
|
|
93.0 |
|
|
88.0 |
|
|
|
|
|
|
|
|
|
|
Income Tax Expense |
|
63.4 |
|
|
6.6 |
|
|
72.6 |
|
|
18.3 |
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
$ |
(24.3 |
) |
|
$ |
23.7 |
|
|
$ |
20.4 |
|
|
$ |
69.7 |
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
Income (Loss) per Share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.65 |
) |
|
$ |
0.64 |
|
|
$ |
0.54 |
|
|
$ |
1.87 |
|
Diluted |
|
$ |
(0.65 |
) |
|
$ |
0.63 |
|
|
$ |
0.54 |
|
|
$ |
1.86 |
|
|
|
|
|
|
|
|
|
|
Cash Dividends: |
|
|
|
|
|
|
|
|
Common
Stock |
|
$ |
0.11 |
|
|
$ |
0.09 |
|
|
$ |
0.29 |
|
|
$ |
0.27 |
|
|
|
|
|
|
|
|
|
|
Weighted Average Number
of Common Shares Outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
37,292,934 |
|
|
37,217,302 |
|
|
37,275,041 |
|
|
37,297,757 |
|
Diluted |
|
37,292,934 |
|
|
37,470,653 |
|
|
37,661,020 |
|
|
37,477,967 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
METHODE ELECTRONICS, INC. AND
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS(in millions, except per share
data) |
|
|
|
|
|
|
|
January 27, 2018 |
|
April 29, 2017 |
|
|
(Unaudited) |
|
|
Assets: |
|
|
|
|
Current Assets: |
|
|
|
|
Cash and
Cash Equivalents |
|
$ |
304.0 |
|
|
$ |
294.0 |
|
Accounts
Receivable, Net |
|
201.4 |
|
|
165.3 |
|
Inventories: |
|
|
|
|
Finished
Products |
|
14.6 |
|
|
10.9 |
|
Work in
Process |
|
15.6 |
|
|
8.7 |
|
Materials |
|
53.4 |
|
|
38.3 |
|
Total
Inventories. |
|
83.6 |
|
|
57.9 |
|
Prepaid
and Refundable Income Taxes |
|
0.6 |
|
|
0.6 |
|
Prepaid
Expenses and Other Current Assets |
|
15.7 |
|
|
12.5 |
|
Total Current
Assets |
|
605.3 |
|
|
530.3 |
|
Property Plan and
Equipment: |
|
|
|
|
Land |
|
0.8 |
|
|
0.6 |
|
Buildings
and Building Improvements |
|
64.3 |
|
|
48.2 |
|
Machinery
and Equipment |
|
364.6 |
|
|
287.9 |
|
Property,
Plant and Equipment, Gross |
|
429.7 |
|
|
336.7 |
|
Less:
Allowances for Depreciation. |
|
276.0 |
|
|
246.1 |
|
Property, Plant and
Equipment, Net |
|
153.7 |
|
|
90.6 |
|
Other Assets: |
|
|
|
|
Goodwill |
|
59.6 |
|
|
1.6 |
|
Other
Intangible Assets, Net |
|
65.6 |
|
|
6.6 |
|
Cash
Surrender Value of Life Insurance |
|
8.2 |
|
|
7.8 |
|
Deferred
Income Taxes |
|
35.9 |
|
|
40.4 |
|
Pre-production Costs |
|
18.0 |
|
|
15.5 |
|
Other |
|
13.5 |
|
|
11.2 |
|
Total Other Assets |
|
200.8 |
|
|
83.1 |
|
Total Assets |
|
$ |
959.8 |
|
|
$ |
704.0 |
|
Liabilities and
Shareholders' Equity: |
|
|
|
|
Current
Liabilities: |
|
|
|
|
Accounts
Payable |
|
$ |
87.9 |
|
|
$ |
75.3 |
|
Salaries,
Wages and Payroll Taxes |
|
20.1 |
|
|
18.7 |
|
Other
Accrued Expenses |
|
27.0 |
|
|
17.7 |
|
Short-term Debt |
|
2.9 |
|
|
— |
|
Income
Tax Payable |
|
12.4 |
|
|
12.7 |
|
Total Current
Liabilities |
|
150.3 |
|
|
124.4 |
|
Long-term Debt |
|
116.0 |
|
|
27.0 |
|
Long-term Income Taxes
Payable. |
|
48.3 |
|
|
— |
|
Other Liabilities |
|
8.2 |
|
|
2.6 |
|
Deferred Income
Taxes. |
|
19.6 |
|
|
— |
|
Deferred
Compensation |
|
10.2 |
|
|
8.9 |
|
Total Liabilities |
|
352.6 |
|
|
162.9 |
|
Shareholders'
Equity: |
|
|
|
|
Common
Stock, $0.50 par value, 100,000,000 shares authorized, 38,193,353
and 38,133,925 shares issued as of January 27, 2018 and
April 29, 2017, respectively |
|
19.1 |
|
|
19.1 |
|
Additional Paid-in Capital |
|
135.8 |
|
|
132.2 |
|
Accumulated Other Comprehensive Income (Loss) |
|
24.6 |
|
|
(25.7 |
) |
Treasury
Stock, 1,346,624 shares as of January 27, 2018 and April 29,
2017. |
|
(11.5 |
) |
|
(11.5 |
) |
Retained
Earnings |
|
439.2 |
|
|
427.0 |
|
Total Shareholders'
Equity |
|
607.2 |
|
|
541.1 |
|
Total Liabilities and
Shareholders' Equity |
|
$ |
959.8 |
|
|
$ |
704.0 |
|
|
|
|
|
METHODE ELECTRONICS, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH
FLOWS(in millions) |
|
|
|
|
|
Nine Months Ended |
|
|
January 27, 2018 |
|
January 28, 2017 |
Operating
Activities: |
|
|
|
|
Net
Income |
|
$ |
20.4 |
|
|
$ |
69.7 |
|
Adjustments to Reconcile Net Income to Net Cash Provided by
Operating Activities: |
|
|
|
|
Gain on
Sale of Licensing Agreement |
|
(1.6 |
) |
|
— |
|
Provision
for Depreciation |
|
16.3 |
|
|
15.8 |
|
Amortization of Intangible Assets |
|
3.7 |
|
|
1.8 |
|
Stock-based Compensation |
|
3.3 |
|
|
9.8 |
|
Provision
for Bad Debt |
|
0.1 |
|
|
— |
|
Change in
Deferred Income Taxes |
|
(12.2 |
) |
|
— |
|
Changes
in Operating Assets and Liabilities: |
|
|
|
|
Accounts Receivable |
|
5.9 |
|
|
16.5 |
|
Inventories |
|
(5.8 |
) |
|
3.1 |
|
Prepaid Expenses and Other Assets |
|
14.6 |
|
|
(7.5 |
) |
Accounts Payable and Other Expenses |
|
42.4 |
|
|
(2.5 |
) |
Net Cash Provided by
Operating Activities |
|
87.1 |
|
|
106.7 |
|
Investing
Activities: |
|
|
|
|
Purchases
of Property, Plant and Equipment |
|
(34.7 |
) |
|
(13.2 |
) |
Acquisition of Business, Net of Cash Received |
|
(129.9 |
) |
|
— |
|
Purchases
of Technology Licenses, Net |
|
(0.7 |
) |
|
— |
|
Sale of
Business/Investment/Property |
|
0.3 |
|
|
— |
|
Net Cash Used in
Investing Activities |
|
(165.0 |
) |
|
(13.2 |
) |
Financing
Activities: |
|
|
|
|
Taxes
Paid Related to Net Share Settlement of Equity Awards |
|
(0.3 |
) |
|
(1.1 |
) |
Purchase
of Common Stock |
|
— |
|
|
(9.8 |
) |
Proceeds
from Exercise of Stock Options |
|
0.2 |
|
|
2.7 |
|
Tax
Benefit from Stock Option Exercises |
|
— |
|
|
0.5 |
|
Cash
Dividends |
|
(10.6 |
) |
|
(10.3 |
) |
Proceeds
from Borrowings |
|
71.3 |
|
|
— |
|
Repayment
of Borrowings |
|
(3.0 |
) |
|
(20.0 |
) |
Net Cash Provided
(Used) in Financing Activities |
|
57.6 |
|
|
(38.0 |
) |
Effect of Foreign
Currency Exchange Rate Changes on Cash |
|
30.3 |
|
|
(14.5 |
) |
Increase in Cash and
Cash Equivalents |
|
10.0 |
|
|
41.0 |
|
Cash and Cash
Equivalents at Beginning of Year |
|
294.0 |
|
|
227.8 |
|
Cash and Cash
Equivalents at End of Period |
|
$ |
304.0 |
|
|
$ |
268.8 |
|
|
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