Indiana | 001-36454 | 35-2047713 | ||
(State or other jurisdiction of | (Commission File | (IRS Employer Identification No.) | ||
incorporation) | Number) |
1205 Kimball Boulevard, Jasper, Indiana | 47546 | |
(Address of principal executive offices) | (Zip Code) |
Former Address: 1600 Royal Street, Jasper, Indiana 47549-1001 |
(Former name or former address, if changed since last report) |
Exhibit | ||
Number | Description | |
99.1 | Earnings Release dated August 6, 2015 | |
99.2 | Supplementary Information |
KIMBALL ELECTRONICS, INC. | |
By: | /s/ Michael K. Sergesketter |
MICHAEL K. SERGESKETTER Vice President, Chief Financial Officer |
Exhibit | ||
Number | Description | |
99.1 | Earnings Release dated August 6, 2015 | |
99.2 | Supplementary Information |
Three Months Ended | Fiscal Year Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(Amounts in Thousands, except EPS) | 2015 | 2014 | 2015 | 2014 | |||||||||||
Net Sales | $ | 201,126 | $ | 198,949 | $ | 819,350 | $ | 741,530 | |||||||
Operating Income | $ | 9,050 | $ | 7,721 | $ | 36,355 | $ | 29,930 | |||||||
Adjusted Operating Income (non-GAAP) | $ | 9,074 | $ | 9,152 | $ | 38,949 | $ | 26,877 | |||||||
Operating Income % | 4.5 | % | 3.9 | % | 4.4 | % | 4.0 | % | |||||||
Adjusted Operating Income (non-GAAP) % | 4.5 | % | 4.6 | % | 4.8 | % | 3.6 | % | |||||||
Net Income | $ | 7,394 | $ | 5,359 | $ | 26,205 | $ | 24,613 | |||||||
Adjusted Net Income (non-GAAP) | $ | 7,410 | $ | 6,790 | $ | 28,631 | $ | 23,548 | |||||||
Diluted EPS | $ | 0.25 | $ | 0.18 | $ | 0.89 | $ | 0.84 | |||||||
Adjusted Diluted EPS (non-GAAP) | $ | 0.25 | $ | 0.23 | $ | 0.97 | $ | 0.81 |
• | Net sales increased 1% from the prior year fourth quarter. |
• | Sales related to the exit of JCI were down $16.8 million compared to the same quarter last year. |
• | Spin-off expenses in the current year fourth quarter were insignificant. Prior year fourth quarter spin-off costs were $1.4 million. |
• | Cash flows provided by operating activities for the fourth quarter of fiscal year 2015 were $16.8 million. |
• | Cash and cash equivalents at June 30, 2015 were $65.2 million. |
• | Days sales outstanding, calculated as the average of monthly trade accounts and notes receivable divided by one day’s average net sales, was 61.6 days for the three months ended June 30, 2015 compared to 56.0 days for the three months ended June 30, 2014. |
• | Net sales increased 10% from the prior fiscal year. |
• | Sales related to the exit of JCI were down $57.6 million compared to the prior year. |
• | Spin-off expenses totaled $2.6 million and $2.2 million in fiscal years 2015 and 2014, respectively. |
• | The prior fiscal year comparison includes $5.7 million of pre-tax income resulting from settlement proceeds related to two antitrust class action lawsuits of which the Company was a member. |
• | Cash flows provided by operating activities for fiscal year 2015 were $28.1 million. |
• | Capital expenditures were $36.9 million in fiscal year 2015 compared to $20.8 million in fiscal year 2014. |
Three Months Ended | ||||||||||
June 30, | ||||||||||
(Amounts in Millions) | 2015 | 2014 | Percent Change | |||||||
Automotive | $ | 79.2 | $ | 74.1 | 7 | % | ||||
Medical | 58.0 | 56.5 | 3 | % | ||||||
Industrial | 44.9 | 50.7 | (11 | )% | ||||||
Public Safety | 15.0 | 14.3 | 5 | % | ||||||
Other | 4.0 | 3.3 | 22 | % | ||||||
Total Net Sales | $ | 201.1 | $ | 198.9 | 1 | % |
• | The China automotive market is expecting to slow as evidenced by the recent lowering of the forecasted growth rate for auto sales in calendar year 2015 by China's Association of Automobile Manufacturers. |
• | Given the slowing China automotive market, incremental costs related to the Romania greenfield start-up, and the ramp up of a significant new product introduction, management is maintaining its operating income goal of 4% for fiscal year 2016. |
• | Capital expenditures, including capital related to the Romania greenfield start-up, for fiscal year 2016 are expected to be slightly higher than fiscal year 2015. |
• | A new mid-range goal of $1 billion in net sales by fiscal year 2018 has been set by Management. |
Conference Call / Webcast | ||
Date: | August 6, 2015 | |
Time: | 10:00 AM Eastern Time | |
Dial-In #: | 800-992-4934 (International Calls - 937-502-2251) | |
Conference ID: | 82939811 |
Condensed Consolidated Statements of Income | |||||||||||||
(Unaudited) | Three Months Ended | ||||||||||||
(Amounts in Thousands, except per share data) | June 30, 2015 | June 30, 2014 | |||||||||||
Net Sales | $ | 201,126 | 100.0 | % | $ | 198,949 | 100.0 | % | |||||
Cost of Sales | 183,417 | 91.2 | % | 180,868 | 90.9 | % | |||||||
Gross Profit | 17,709 | 8.8 | % | 18,081 | 9.1 | % | |||||||
Selling and Administrative Expenses | 8,659 | 4.3 | % | 10,360 | 5.2 | % | |||||||
Operating Income | 9,050 | 4.5 | % | 7,721 | 3.9 | % | |||||||
Other Income (Expense), net | (355 | ) | (0.2 | )% | (378 | ) | (0.2 | )% | |||||
Income Before Taxes on Income | 8,695 | 4.3 | % | 7,343 | 3.7 | % | |||||||
Provision for Income Taxes | 1,301 | 0.6 | % | 1,984 | 1.0 | % | |||||||
Net Income | $ | 7,394 | 3.7 | % | $ | 5,359 | 2.7 | % | |||||
Earnings Per Share of Common Stock: | |||||||||||||
Basic | $ | 0.25 | $ | 0.18 | |||||||||
Diluted | $ | 0.25 | $ | 0.18 | |||||||||
Average Number of Shares Outstanding: | |||||||||||||
Basic | 29,172 | 29,143 | |||||||||||
Diluted | 29,367 | 29,143 |
(Unaudited) | Fiscal Year Ended | ||||||||||||
(Amounts in Thousands, except per share data) | June 30, 2015 | June 30, 2014 | |||||||||||
Net Sales | $ | 819,350 | 100.0 | % | $ | 741,530 | 100.0 | % | |||||
Cost of Sales | 746,927 | 91.2 | % | 680,534 | 91.8 | % | |||||||
Gross Profit | 72,423 | 8.8 | % | 60,996 | 8.2 | % | |||||||
Selling and Administrative Expenses | 36,068 | 4.4 | % | 36,352 | 4.9 | % | |||||||
Other General Income | — | — | % | (5,688 | ) | (0.8 | )% | ||||||
Restructuring Expense | — | — | % | 402 | 0.1 | % | |||||||
Operating Income | 36,355 | 4.4 | % | 29,930 | 4.0 | % | |||||||
Other Income (Expense), net | (1,584 | ) | (0.2 | )% | 312 | 0.1 | % | ||||||
Income Before Taxes on Income | 34,771 | 4.2 | % | 30,242 | 4.1 | % | |||||||
Provision for Income Taxes | 8,566 | 1.0 | % | 5,629 | 0.8 | % | |||||||
Net Income | $ | 26,205 | 3.2 | % | $ | 24,613 | 3.3 | % | |||||
Earnings Per Share of Common Stock: | |||||||||||||
Basic | $ | 0.90 | $ | 0.84 | |||||||||
Diluted | $ | 0.89 | $ | 0.84 | |||||||||
Average Number of Shares Outstanding: | |||||||||||||
Basic | 29,162 | 29,143 | |||||||||||
Diluted | 29,388 | 29,143 |
Condensed Consolidated Statements of Cash Flows | Fiscal Year Ended | ||||||
(Unaudited) | June 30, | ||||||
(Amounts in Thousands) | 2015 | 2014 | |||||
Net Cash Flow provided by Operating Activities | $ | 28,064 | $ | 39,306 | |||
Net Cash Flow used for Investing Activities | (36,516 | ) | (19,991 | ) | |||
Net Cash Flow provided by (used for) Financing Activities | 50,172 | (11,620 | ) | ||||
Effect of Exchange Rate Change on Cash | (2,800 | ) | 141 | ||||
Net Increase in Cash and Cash Equivalents | 38,920 | 7,836 | |||||
Cash and Cash Equivalents at Beginning of Year | 26,260 | 18,424 | |||||
Cash and Cash Equivalents at End of Year | $ | 65,180 | $ | 26,260 |
(Unaudited) | |||||||
Condensed Consolidated Balance Sheets | June 30, 2015 | June 30, 2014 | |||||
(Amounts in Thousands) | |||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 65,180 | $ | 26,260 | |||
Receivables, net | 139,892 | 128,425 | |||||
Inventories | 125,198 | 116,159 | |||||
Prepaid expenses and other current assets | 23,922 | 20,490 | |||||
Property and Equipment, net | 106,779 | 97,934 | |||||
Goodwill | 2,564 | 2,564 | |||||
Other Intangible Assets, net | 4,509 | 1,830 | |||||
Other Assets | 15,213 | 15,068 | |||||
Total Assets | $ | 483,257 | $ | 408,730 | |||
LIABILITIES AND SHARE OWNERS’ EQUITY | |||||||
Accounts payable | $ | 133,409 | $ | 119,853 | |||
Accrued expenses | 26,545 | 26,602 | |||||
Other | 10,854 | 9,903 | |||||
Share Owners’ Equity | 312,449 | 252,372 | |||||
Total Liabilities and Share Owners’ Equity | $ | 483,257 | $ | 408,730 |
Reconciliation of Non-GAAP Financial Measures | |||||||||||||||
(Unaudited) | |||||||||||||||
(Amounts in Thousands, except per share data) | |||||||||||||||
Operating Income excluding Spin-off Expenses, Settlement Proceeds from Lawsuits, and Restructuring Charges | |||||||||||||||
Three Months Ended | Fiscal Year Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
Kimball Electronics, Inc. | 2015 | 2014 | 2015 | 2014 | |||||||||||
Operating Income, as reported | $ | 9,050 | $ | 7,721 | $ | 36,355 | $ | 29,930 | |||||||
Add: Pre-tax Spin-off Expenses | 24 | 1,431 | 2,594 | 2,233 | |||||||||||
Less: Pre-tax Settlement Proceeds from Lawsuits | — | — | — | 5,688 | |||||||||||
Add: Pre-tax Restructuring Charges | — | — | — | 402 | |||||||||||
Adjusted Operating Income | $ | 9,074 | $ | 9,152 | $ | 38,949 | $ | 26,877 | |||||||
Net Income excluding Spin-off Expenses, Settlement Proceeds from Lawsuits, and Restructuring Charges | |||||||||||||||
Three Months Ended | Fiscal Year Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
Kimball Electronics, Inc. | 2015 | 2014 | 2015 | 2014 | |||||||||||
Net Income, as reported | $ | 7,394 | $ | 5,359 | $ | 26,205 | $ | 24,613 | |||||||
Add: After-tax Spin-off Expenses | 16 | 1,431 | 2,426 | 2,233 | |||||||||||
Less: After-tax Settlement Proceeds from Lawsuits | — | — | — | 3,549 | |||||||||||
Add: After-tax Restructuring Charges | — | — | — | 251 | |||||||||||
Adjusted Net Income | $ | 7,410 | $ | 6,790 | $ | 28,631 | $ | 23,548 | |||||||
Diluted Earnings per Share excluding Spin-off Expenses, Settlement Proceeds from Lawsuits, and Restructuring Charges | |||||||||||||||
Three Months Ended | Fiscal Year Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
Kimball Electronics, Inc. | 2015 | 2014 | 2015 | 2014 | |||||||||||
Diluted Earnings per Share, as reported | $ | 0.25 | $ | 0.18 | $ | 0.89 | $ | 0.84 | |||||||
Add: Impact of Spin-off Expenses | 0.00 | 0.05 | 0.08 | 0.08 | |||||||||||
Less: Impact of Settlement Proceeds from Lawsuits | — | — | — | 0.12 | |||||||||||
Add: Impact of Restructuring Charges | — | — | — | 0.01 | |||||||||||
Adjusted Diluted Earnings per Share | $ | 0.25 | $ | 0.23 | $ | 0.97 | $ | 0.81 |
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