Indiana | 001-36454 | 35-2047713 | ||
(State or other jurisdiction of | (Commission File | (IRS Employer Identification No.) | ||
incorporation) | Number) |
1600 Royal Street, Jasper, Indiana | 47549-1001 | |
(Address of principal executive offices) | (Zip Code) |
Not Applicable |
(Former name or former address, if changed since last report) |
Exhibit | ||
Number | Description | |
99.1 | Earnings Release dated February 12, 2015 |
KIMBALL ELECTRONICS, INC. | |
By: | /s/ Michael K. Sergesketter |
MICHAEL K. SERGESKETTER Vice President, Chief Financial Officer |
Exhibit | ||
Number | Description | |
99.1 | Earnings Release dated February 12, 2015 |
• | Net sales of $207.6 million increased 15% from the prior year second quarter. Sales related to the exit of JCI were down $12.3 million compared to the same quarter last year. |
• | Gross profit as a percent of net sales increased 0.9 percentage points from the prior year second quarter. |
• | Spin-off expenses in the current year second quarter totaled $1.3 million. |
• | Operating income was $8.7 million (4.2% of net sales) while adjusted operating income (non-GAAP), excluding spin-off costs, was $10.0 million (4.8% of net sales). |
• | Net income was $6.2 million for the second quarter with adjusted net income (non-GAAP) of $7.4 million. |
• | Diluted earnings per share was $0.21 and adjusted diluted earnings per share (non-GAAP) was $0.25 for the second quarter of fiscal year 2015. |
• | Cash flows provided by operating activities for the second quarter of fiscal year 2015 was $8.0 million. |
• | Cash and cash equivalents at December 31, 2014 was $61.7 million, which included $44.3 million transferred from Kimball International upon completion of the spin-off. |
• | Days sales outstanding, calculated as accounts receivable divided by one day’s average net sales, was 59.5 days for the three months ended December 31, 2014 compared to 58.8 days for the three months ended December 31, 2013. |
Three Months Ended | ||||||||||
December 31, | ||||||||||
(Amounts in Millions) | 2014 | 2013 | Percent Change | |||||||
Automotive | $ | 73.9 | $ | 66.0 | 12 | % | ||||
Medical | 62.3 | 49.9 | 25 | % | ||||||
Industrial | 49.9 | 50.0 | — | % | ||||||
Public Safety | 16.9 | 12.4 | 36 | % | ||||||
Other | 4.6 | 3.0 | 56 | % | ||||||
Total Net Sales | $ | 207.6 | $ | 181.3 | 15 | % |
Conference Call / Webcast | ||
Date: | February 12, 2015 | |
Time: | 10:00 AM Eastern Time | |
Dial-In #: | 800-992-4934 (International Calls - 937-502-2251) | |
Conference ID: | 66408346 |
Condensed Consolidated Statements of Income | |||||||||||||
(Unaudited) | Three Months Ended | ||||||||||||
(Amounts in Thousands, except per share data) | December 31, 2014 | December 31, 2013 | |||||||||||
Net Sales | $ | 207,563 | 100.0 | % | $ | 181,264 | 100.0 | % | |||||
Cost of Sales | 189,705 | 91.4 | % | 167,327 | 92.3 | % | |||||||
Gross Profit | 17,858 | 8.6 | % | 13,937 | 7.7 | % | |||||||
Selling and Administrative Expenses | 9,161 | 4.4 | % | 9,056 | 5.0 | % | |||||||
Operating Income | 8,697 | 4.2 | % | 4,881 | 2.7 | % | |||||||
Other Income (Expense), net | 154 | 0.1 | % | 396 | 0.2 | % | |||||||
Income Before Taxes on Income | 8,851 | 4.3 | % | 5,277 | 2.9 | % | |||||||
Provision for Income Taxes | 2,622 | 1.3 | % | 77 | 0.0 | % | |||||||
Net Income | $ | 6,229 | 3.0 | % | $ | 5,200 | 2.9 | % | |||||
Earnings Per Share of Common Stock: | |||||||||||||
Basic | $ | 0.21 | $ | 0.18 | |||||||||
Diluted | $ | 0.21 | $ | 0.18 | |||||||||
Average Number of Shares Outstanding: | |||||||||||||
Basic | 29,162 | 29,143 | |||||||||||
Diluted | 29,294 | 29,143 |
(Unaudited) | Six Months Ended | ||||||||||||
(Amounts in Thousands, except per share data) | December 31, 2014 | December 31, 2013 | |||||||||||
Net Sales | $ | 411,366 | 100.0 | % | $ | 356,901 | 100.0 | % | |||||
Cost of Sales | 375,605 | 91.3 | % | 330,539 | 92.6 | % | |||||||
Gross Profit | 35,761 | 8.7 | % | 26,362 | 7.4 | % | |||||||
Selling and Administrative Expenses | 19,277 | 4.7 | % | 16,795 | 4.7 | % | |||||||
Other General Income | — | — | % | (5,022 | ) | (1.4 | )% | ||||||
Restructuring Expense | — | — | % | 402 | 0.1 | % | |||||||
Operating Income | 16,484 | 4.0 | % | 14,187 | 4.0 | % | |||||||
Other Income (Expense), net | (343 | ) | (0.1 | )% | 587 | 0.1 | % | ||||||
Income Before Taxes on Income | 16,141 | 3.9 | % | 14,774 | 4.1 | % | |||||||
Provision for Income Taxes | 4,521 | 1.1 | % | 1,876 | 0.5 | % | |||||||
Net Income | $ | 11,620 | 2.8 | % | $ | 12,898 | 3.6 | % | |||||
Earnings Per Share of Common Stock: | |||||||||||||
Basic | $ | 0.40 | $ | 0.44 | |||||||||
Diluted | $ | 0.40 | $ | 0.44 | |||||||||
Average Number of Shares Outstanding: | |||||||||||||
Basic | 29,153 | 29,143 | |||||||||||
Diluted | 29,317 | 29,143 |
Condensed Consolidated Statements of Cash Flows | Six Months Ended | ||||||
(Unaudited) | December 31, | ||||||
(Amounts in Thousands) | 2014 | 2013 | |||||
Net Cash Flow provided by Operating Activities | $ | 3,541 | $ | 20,742 | |||
Net Cash Flow used for Investing Activities | (16,589 | ) | (7,879 | ) | |||
Net Cash Flow provided by (used for) Financing Activities | 50,172 | (6,518 | ) | ||||
Effect of Exchange Rate Change on Cash | (1,720 | ) | 274 | ||||
Net Increase in Cash and Cash Equivalents | 35,404 | 6,619 | |||||
Cash and Cash Equivalents at Beginning of Period | 26,260 | 18,424 | |||||
Cash and Cash Equivalents at End of Period | $ | 61,664 | $ | 25,043 |
(Unaudited) | |||||||
Condensed Consolidated Balance Sheets | December 31, 2014 | June 30, 2014 | |||||
(Amounts in Thousands) | |||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 61,664 | $ | 26,260 | |||
Receivables, net | 135,787 | 128,425 | |||||
Inventories | 124,500 | 116,159 | |||||
Prepaid expenses and other current assets | 20,345 | 20,490 | |||||
Property and Equipment, net | 98,656 | 97,934 | |||||
Goodwill | 2,564 | 2,564 | |||||
Other Intangible Assets, net | 3,839 | 1,830 | |||||
Other Assets | 16,408 | 15,068 | |||||
Total Assets | $ | 463,763 | $ | 408,730 | |||
LIABILITIES AND SHARE OWNERS’ EQUITY | |||||||
Accounts payable | $ | 126,136 | $ | 119,853 | |||
Accrued expenses | 26,119 | 26,602 | |||||
Other | 9,584 | 9,903 | |||||
Share Owners’ Equity | 301,924 | 252,372 | |||||
Total Liabilities and Share Owners’ Equity | $ | 463,763 | $ | 408,730 |
Reconciliation of Non-GAAP Financial Measures | |||||||||||||||
(Unaudited) | |||||||||||||||
(Amounts in Thousands, except per share data) | |||||||||||||||
Operating Income excluding Spin-off Expenses, Restructuring Charges and Settlement Proceeds from Lawsuits | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
Kimball Electronics, Inc. | 2014 | 2013 | 2014 | 2013 | |||||||||||
Operating Income, as reported | $ | 8,697 | $ | 4,881 | $ | 16,484 | $ | 14,187 | |||||||
Add: Pre-tax Spin-off Expenses | 1,285 | — | 2,249 | — | |||||||||||
Less: Pre-tax Settlement Proceeds from Lawsuits | — | — | — | 5,022 | |||||||||||
Add: Pre-tax Restructuring Charges | — | — | — | 402 | |||||||||||
Adjusted Operating Income | $ | 9,982 | $ | 4,881 | $ | 18,733 | $ | 9,567 | |||||||
Net Income excluding Spin-off Expenses, Restructuring Charges and Settlement Proceeds from Lawsuits | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
Kimball Electronics, Inc. | 2014 | 2013 | 2014 | 2013 | |||||||||||
Net Income, as reported | $ | 6,229 | $ | 5,200 | $ | 11,620 | $ | 12,898 | |||||||
Add: After-tax Spin-off Expenses | 1,168 | — | 2,132 | — | |||||||||||
Less: After-tax Settlement Proceeds from Lawsuits | — | — | — | 3,134 | |||||||||||
Add: After-tax Restructuring Charges | — | — | — | 251 | |||||||||||
Adjusted Net Income | $ | 7,397 | $ | 5,200 | $ | 13,752 | $ | 10,015 | |||||||
Diluted Earnings per Share excluding Spin-off Expenses, Restructuring Charges and Settlement Proceeds from Lawsuits | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
Kimball Electronics, Inc. | 2014 | 2013 | 2014 | 2013 | |||||||||||
Diluted Earnings per Share, as reported | $ | 0.21 | $ | 0.18 | $ | 0.40 | $ | 0.44 | |||||||
Add: Impact of Spin-off Expenses | 0.04 | — | 0.07 | — | |||||||||||
Less: Impact of Settlement Proceeds from Lawsuits | — | — | — | 0.11 | |||||||||||
Add: Impact of Restructuring Charges | — | — | — | 0.01 | |||||||||||
Adjusted Diluted Earnings per Share | $ | 0.25 | $ | 0.18 | $ | 0.47 | $ | 0.34 |
'!A8VME="!B96=I;CTB[[N_(B!I9#TB5S5-
M,$UP0V5H:4AZ &UP
M34TZ3W)I9VEN86Q$;V-U;65N=$E$/2)U=6ED.C5$,C`X.3(T.3-"1D1",3$Y
M,31!.#4Y,$0S,34P.$,X(B!X;7!-33I296YD:71I;VY#;&%S W"24*UV8V%@5"QW/%$T5UQX#3^46;MXU"QQ6;IY>Q357^=YK```@`!^\XJQ
M14A^&WV$2;A^36]Z3<1^E&![)GD5DD5[>&)ID&5[^4IRCMI\DR]CCC5]
M?@I^D!]_P,LZFN*$_;=FF".#YZ,!E9F"_(WZDTV"2W@KD4.!V&%\CW6!FDE^
MC?>!@2YYC5>!XPG/CIN#",G3F=^.K;8DSB^YJK"@11RSJ#&39P;(I4:$E@``@QR``.8?
M=G!S&-`;=TMS\;F`>!]TS*(J>.IUKXHD>;)VH7%C>G]WHU>&>T]XGSLO?#%Y
MEA:=?2%YZ.0/=(=^:,YK=8E^&[?Z=GQ]Y:#+=V5]RHC=>$M]S7`N>3-]Y%9;
M>A5]^3H'>N]^$A4@>U1]P>(Q
H\&+M%U!
MH&**@4R)G4R)B3J-FL&([":4F3&(_PT_FER'/0``@!J``(H0JD&6Q'NNII:4
MS6R8HP62[%RZGZ&1.4P)G(6/T3HRF=V.]"9;F#^/6PU"F2>(]P``@`"``(FH
MJ9Z?('M`I?B=\UK6@``@`!R'9GA;8=BC8NC;NYE#WPQ<$%G:6NC
M<8QIH5GE
"/VT(3
M
27"YGTVN:7MIIOE[D841KEU$[8W)M6$(794MNZS%M9F5P11Y8
M9=YQ`0<.=!-QS@``@`"``'8C6(=P>&I>6V]QO5VU7@ER[5`"8%1T`4$M8D%U
M`#":8SMUUAVX8OMV/0;G=%5WA```@`"``'3S55-Y(6E"6&EYQURP6RMZ3D\1
M799ZO$!47XE[(C`'8%A[@QU/8(E[NP;6=')\Z@``@`"``'/]4I&!N6A@5<^!
MQEOA6+&!IDY06S*!O4Z.)N5LV5IZ(^$VS62J()S\'6Q:'AB[>6WR'01R=7.2'Q0;3='B$
MG0``@`"``'*S3G"2FF