• Kimball Electronics, Inc. Reports Third Quarter Fiscal Year 2021 Results

    ソース: Nasdaq GlobeNewswire / 05 5 2021 16:05:01   America/New_York

    • Net sales in the third quarter were $310 million, up 6% year-over-year
    • Third quarter operating income was 4.7% of net sales and adjusted operating income (non-GAAP) was 4.6%
    • Net income of $10.5 million (adjusted non-GAAP $9.9 million) and diluted EPS of $0.41 (adjusted non-GAAP $0.39) in the third quarter
    • Strong cash flows provided by operating activities of $31.5 million during the third quarter

    JASPER, Ind., May 05, 2021 (GLOBE NEWSWIRE) -- Kimball Electronics, Inc. (Nasdaq: KE) today announced financial results for the third quarter ended March 31, 2021. 

        


     Three Months Ended Nine Months Ended
     March 31, March 31,
    (Amounts in Thousands, except EPS)2021 2020 2021 2020
    Net Sales$310,329  $293,925  $962,682  $914,394 
    Operating Income$14,638  $10,588  $48,624  $30,387 
    Adjusted Operating Income (non-GAAP) (1)(2)$14,426  $9,674  $49,432  $29,953 
    Operating Income %4.7% 3.6% 5.1% 3.3%
    Adjusted Operating Income (non-GAAP) %4.6% 3.3% 5.1% 3.3%
    Net Income$10,472  $6,259  $42,345  $19,469 
    Adjusted Net Income (non-GAAP) (1)$9,933  $6,259  $41,680  $19,469 
    Diluted EPS$0.41  $0.25  $1.67  $0.76 
    Adjusted Diluted EPS (non-GAAP) (1)$0.39  $0.25  $1.65  $0.76 

    (1)  A reconciliation of GAAP and non-GAAP financial measures is included below. 

    (2)  Beginning in the first quarter of fiscal year 2021, adjusted operating income excludes changes in the fair value of our supplemental employee retirement plan, or SERP, liability which are exactly offset by the revaluation to fair value of the SERP investments in Other Income (Expense), net, and as a result have no impact on net income.  Prior reported periods have been revised accordingly.

    Donald D. Charron, Chairman and Chief Executive Officer, stated, “We are very pleased with our operating results for the third quarter of fiscal year 2021.  Our team remains resilient as we work through the ongoing challenges caused by the pandemic and the global semiconductor shortage.  Despite the adversity, we again delivered solid operating income exceeding our goal of 4.5%, and we continued to deliver excellent cash flow from operations, which on a year-to-date basis has more than doubled from the prior year.”

    Mr. Charron continued, “Due to the global semiconductor shortage, a significant amount of our shippable backlog shifted out of Q3 and Q4 of fiscal year 2021 to the first half of fiscal year 2022.  Many industry experts are forecasting the global semiconductor shortage will remain with us for most of this calendar year.  However, when considering the semiconductor delivery commitments that we currently have from our suppliers, we are still expecting a very strong fourth quarter of fiscal year 2021 both sequentially and year-over-year.”

    Third Quarter Fiscal Year 2021 Overview:

    • Consolidated net sales increased 6% compared to the third quarter of fiscal year 2020.  Foreign currency had a favorable 3% impact on net sales in the current quarter compared to the same period a year ago.
    • Operating activities provided cash of $31.5 million during the quarter, which compares to cash provided by operating activities of $12.0 million in the third quarter of fiscal year 2020.
    • Cash conversion days (“CCD”) for the quarter ended March 31, 2021 were 66 days, down from 75 days in the second quarter of fiscal year 2021 and 81 days in the quarter ended March 31, 2020.  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 $8.7 million during the quarter.
    • Cash and cash equivalents were $89.7 million and borrowings outstanding on credit facilities were $60.5 million at March 31, 2021, including $40.0 million classified as long term.

    Net Sales by Vertical Market:

     Three Months Ended  
     March 31,  
    (Amounts in Millions)2021 2020 Percent
    Change
    Automotive$139.6 $124.4 12%
    Medical85.4 87.1 (2)%
    Industrial69.2 65.6 5%
    Public Safety13.5 12.5 9%
    Other2.6 4.3 (41)%
    Total Net Sales$310.3 $293.9 6%

    Forward-Looking Statements
    Certain statements contained within this release are considered forward-looking 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.”  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, 2020. 

    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, and adjusted diluted EPS.  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.

    Conference Call / Webcast
      
    Date:May 6, 2021
    Time:10:00 AM Eastern Time
    Live Webcast:investors.kimballelectronics.com/events-presentations
    Dial-In #:800-992-4934 (International Calls - 937-502-2251)
    Conference ID:5958058

    For those unable to participate in the live webcast, the call will be archived at investors.kimballelectronics.com.

    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.

    Lasting relationships. Global success.

    Financial highlights for the third quarter and year-to-date period ended March 31, 2021 are as follows:

    Condensed Consolidated Statements of Income
    (Unaudited)Three Months Ended
    (Amounts in Thousands, except Per Share Data)March 31, 2021
     March 31, 2020
    Net Sales$310,329 100.0% $293,925 100.0%
    Cost of Sales284,323 91.6% 273,713 93.1%
    Gross Profit26,006 8.4% 20,212 6.9%
    Selling and Administrative Expenses11,744 3.8% 9,624 3.3%
    Other General Income(376) (0.1)%  —%
    Operating Income14,638 4.7% 10,588 3.6%
    Other Income (Expense), net(641) (0.2)% (1,893) (0.6)%
    Income Before Taxes on Income13,997 4.5% 8,695 3.0%
    Provision for Income Taxes3,525 1.1% 2,436 0.9%
    Net Income$10,472 3.4% $6,259 2.1%
            
    Earnings Per Share of Common Stock:       
    Basic$0.42   $0.25  
    Diluted$0.41   $0.25  
            
    Average Number of Shares Outstanding:       
    Basic25,049   25,181  
    Diluted25,217   25,287  


            
    (Unaudited)Nine Months Ended
    (Amounts in Thousands, except Per Share Data)March 31, 2021
     March 31, 2020
    Net Sales$962,682 100.0% $914,394 100.0%
    Cost of Sales876,428 91.0% 851,478 93.1%
    Gross Profit86,254 9.0% 62,916 6.9%
    Selling and Administrative Expenses38,347 4.0% 32,529 3.6%
    Other General Income(717) (0.1)%  —%
    Operating Income48,624 5.1% 30,387 3.3%
    Other Income (Expense), net3,905 0.4% (4,152) (0.4)%
    Income Before Taxes on Income52,529 5.5% 26,235 2.9%
    Provision for Income Taxes10,184 1.1% 6,766 0.8%
    Net Income$42,345 4.4% $19,469 2.1%
            
    Earnings Per Share of Common Stock:       
    Basic$1.68   $0.77  
    Diluted$1.67   $0.76  
            
    Average Number of Shares Outstanding:       
    Basic25,101   25,308  
    Diluted25,288   25,466  


    Condensed Consolidated Statements of Cash FlowsNine Months Ended
    (Unaudited)March 31,
    (Amounts in Thousands)2021 2020
    Net Cash Flow provided by Operating Activities$103,755 $51,318
    Net Cash Flow used for Investing Activities(22,972) (27,602)
    Net Cash Flow used for Financing Activities(58,729) (13,489)
    Effect of Exchange Rate Change on Cash and Cash Equivalents2,607 (1,191)
    Net Increase in Cash and Cash Equivalents24,661 9,036
    Cash and Cash Equivalents at Beginning of Period64,990 49,276
    Cash and Cash Equivalents at End of Period$89,651 $58,312


     (Unaudited)  
    Condensed Consolidated Balance SheetsMarch 31,
    2021
     June 30,
    2020
    (Amounts in Thousands)
    ASSETS   
        Cash and cash equivalents$89,651  $64,990 
        Receivables, net197,769  180,133 
        Contract assets53,171  70,350 
        Inventories181,131  219,043 
        Prepaid expenses and other current assets31,959  23,891 
        Property and Equipment, net154,409  154,529 
        Goodwill12,011  12,011 
        Other Intangible Assets, net17,590  19,343 
        Other Assets37,542  30,539 
            Total Assets$775,233  $774,829 
        
    LIABILITIES AND SHARE OWNERS EQUITY   
        Current portion of borrowings under credit facilities$20,518  $26,638 
        Accounts payable208,281  203,703 
        Accrued expenses49,985  42,264 
        Long-term debt under credit facilities, less current portion40,000  91,500 
        Long-term income taxes payable8,854  9,765 
        Other22,630  21,594 
        Share Owners’ Equity424,965  379,365 
            Total Liabilities and Share Owners’ Equity$775,233  $774,829 


    Reconciliation of Non-GAAP Financial Measures
    (Unaudited)
    (Amounts in Thousands, except Per Share Data)
            
    Operating Income excluding SERP and Lawsuit Proceeds       
     Three Months Ended
     Nine Months Ended
     March 31,
     March 31,
     2021 2020 2021 2020
    Operating Income, as reported$14,638 $10,588 $48,624 $30,387
    Add: SERP (1)164 (914) 1,525 (434)
    Less: Settlement Proceeds from Lawsuit376  717 
    Adjusted Operating Income$14,426 $9,674 $49,432 $29,953
            
            
    Net Income excluding Adjustments After Measurement Period on GES Acquisition and Lawsuit Proceeds       
     Three Months Ended
     Nine Months Ended
     March 31,
     March 31,
     2021 2020 2021 2020
    Net Income, as reported$10,472 $6,259 $42,345 $19,469
    Less: After-Tax Adjustments After Measurement Period on GES Acquisition254  121 
    Less: After-Tax Settlement Proceeds from Lawsuit285  544 
    Adjusted Net Income$9,933 $6,259 $41,680 $19,469
            
            
    Diluted Earnings per Share excluding Adjustments After Measurement Period on GES Acquisition and Lawsuit Proceeds       
     Three Months Ended
     Nine Months Ended
     March 31,
     March 31,
     2021 2020 2021 2020
    Diluted Earnings per Share, as reported$0.41 $0.25 $1.67 $0.76
    Less: After-Tax Adjustments After Measurement Period on GES Acquisition0.01   
    Less: Impact of Settlement Proceeds from Lawsuit0.01  0.02 
    Adjusted Diluted Earnings per Share$0.39 $0.25 $1.65 $0.76
            

    (1)  Beginning in the first quarter of fiscal year 2021, adjusted operating income excludes changes in the fair value of our supplemental employee retirement plan, or SERP, liability which are exactly offset by the revaluation of the fair value of the SERP investments in Other Income (Expense), net, and as a result have no impact on net income.  Prior reported periods have been revised accordingly.

    CONTACT:
    Andy Regrut
    Head of Investor Relations
    Telephone: 812.827.4151
    E-mail: Investor.Relations@kimballelectronics.com


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