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) |
Not Applicable |
(Former name or former address, if changed since last report) |
Exhibit | ||
Number | Description | |
99.1 | Earnings Release dated February 1, 2017 | |
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 February 1, 2017 | |
99.2 | Supplementary Information |
• | Quarterly net sales record of $230 million |
• | Operating income as a percent of net sales of 5.3% |
• | Diluted EPS of $0.28 |
• | Returned $7.4 million to Share Owners in stock repurchases |
Three Months Ended | |||||||
December 31, | |||||||
(Amounts in Thousands, except EPS) | 2016 | 2015 | |||||
Net Sales | $ | 230,265 | $ | 207,129 | |||
Operating Income | $ | 12,241 | $ | 6,933 | |||
Operating Income % | 5.3 | % | 3.3 | % | |||
Net Income | $ | 7,812 | $ | 4,564 | |||
Diluted EPS | $ | 0.28 | $ | 0.16 |
Six Months Ended | |||||||
December 31, | |||||||
(Amounts in Thousands, except EPS) | 2016 | 2015 | |||||
Net Sales | $ | 456,716 | $ | 407,547 | |||
Operating Income | $ | 25,063 | $ | 13,854 | |||
Adjusted Operating Income (non-GAAP)* | $ | 21,058 | $ | 13,991 | |||
Operating Income % | 5.5 | % | 3.4 | % | |||
Adjusted Operating Income (non-GAAP) % | 4.6 | % | 3.4 | % | |||
Net Income | $ | 17,934 | $ | 9,039 | |||
Adjusted Net Income (non-GAAP)* | $ | 14,510 | $ | 9,124 | |||
Diluted EPS | $ | 0.65 | $ | 0.31 | |||
Adjusted Diluted EPS (non-GAAP)* | $ | 0.52 | $ | 0.31 |
• | Consolidated net sales increased 11% compared to the second quarter of fiscal year 2016, the fourth consecutive quarterly sales record. Excluding sales from recent acquisitions, consolidated net sales were up 9% from the prior year quarter. |
• | The ramp-up of the Company’s Romania facility negatively impacted net income by $0.9 million during the quarter compared with the net income impact of $0.7 million from incremental start-up costs in the prior year. |
• | Return on invested capital (“ROIC”) is 10.7%, which has improved from 7.7% in the prior year (see reconciliation of non-GAAP financial measures for ROIC calculation). |
• | Cash flow from operating activities was $12.1 million for the quarter. |
• | Cash conversion days (“CCD”) for the quarter ended December 31, 2016 were 59 days, which were unchanged from the same quarter last year. CCD is calculated as the sum of days sales outstanding plus production days supply on hand less accounts payable days. |
• | Investments in capital expenditures were $9.4 million during the quarter. |
• | $7.4 million was returned to Share Owners during the quarter in the form of common stock repurchases. |
• | Cash and cash equivalents were $42.7 million and borrowings outstanding on credit facilities were $9.0 million at December 31, 2016. |
Three Months Ended | ||||||||||
December 31, | ||||||||||
(Amounts in Millions) | 2016 | 2015 | Percent Change | |||||||
Automotive | $ | 96.3 | $ | 82.6 | 16 | % | ||||
Medical | 63.4 | 60.0 | 6 | % | ||||||
Industrial | 48.4 | 42.8 | 13 | % | ||||||
Public Safety | 15.8 | 15.9 | (1 | )% | ||||||
Other | 6.4 | 5.8 | 10 | % | ||||||
Total Net Sales | $ | 230.3 | $ | 207.1 | 11 | % |
Conference Call / Webcast | ||
Date: | February 2, 2017 | |
Time: | 10:00 AM Eastern Time | |
Dial-In #: | 800-992-4934 (International Calls - 937-502-2251) | |
Conference ID: | 47809340 |
Condensed Consolidated Statements of Income | |||||||||||||
(Unaudited) | Three Months Ended | ||||||||||||
(Amounts in Thousands, except Per Share Data) | December 31, 2016 | December 31, 2015 | |||||||||||
Net Sales | $ | 230,265 | 100.0 | % | $ | 207,129 | 100.0 | % | |||||
Cost of Sales | 209,712 | 91.1 | % | 191,014 | 92.2 | % | |||||||
Gross Profit | 20,553 | 8.9 | % | 16,115 | 7.8 | % | |||||||
Selling and Administrative Expenses | 8,312 | 3.6 | % | 9,182 | 4.5 | % | |||||||
Operating Income | 12,241 | 5.3 | % | 6,933 | 3.3 | % | |||||||
Other Income (Expense), net | (1,014 | ) | (0.4 | )% | (588 | ) | (0.2 | )% | |||||
Income Before Taxes on Income | 11,227 | 4.9 | % | 6,345 | 3.1 | % | |||||||
Provision for Income Taxes | 3,415 | 1.5 | % | 1,781 | 0.9 | % | |||||||
Net Income | $ | 7,812 | 3.4 | % | $ | 4,564 | 2.2 | % | |||||
Earnings Per Share of Common Stock: | |||||||||||||
Basic | $ | 0.29 | $ | 0.16 | |||||||||
Diluted | $ | 0.28 | $ | 0.16 | |||||||||
Average Number of Shares Outstanding: | |||||||||||||
Basic | 27,350 | 29,228 | |||||||||||
Diluted | 27,455 | 29,278 |
(Unaudited) | Six Months Ended | ||||||||||||
(Amounts in Thousands, except Per Share Data) | December 31, 2016 | December 31, 2015 | |||||||||||
Net Sales | $ | 456,716 | 100.0 | % | $ | 407,547 | 100.0 | % | |||||
Cost of Sales | 417,841 | 91.5 | % | 376,152 | 92.3 | % | |||||||
Gross Profit | 38,875 | 8.5 | % | 31,395 | 7.7 | % | |||||||
Selling and Administrative Expenses | 17,817 | 3.9 | % | 17,541 | 4.3 | % | |||||||
Other General Income | (4,005 | ) | (0.9 | )% | — | — | % | ||||||
Operating Income | 25,063 | 5.5 | % | 13,854 | 3.4 | % | |||||||
Other Income (Expense), net | (251 | ) | (0.1 | )% | (1,254 | ) | (0.3 | )% | |||||
Income Before Taxes on Income | 24,812 | 5.4 | % | 12,600 | 3.1 | % | |||||||
Provision for Income Taxes | 6,878 | 1.5 | % | 3,561 | 0.9 | % | |||||||
Net Income | $ | 17,934 | 3.9 | % | $ | 9,039 | 2.2 | % | |||||
Earnings Per Share of Common Stock: | |||||||||||||
Basic | $ | 0.65 | $ | 0.31 | |||||||||
Diluted | $ | 0.65 | $ | 0.31 | |||||||||
Average Number of Shares Outstanding: | |||||||||||||
Basic | 27,714 | 29,260 | |||||||||||
Diluted | 27,775 | 29,350 |
Condensed Consolidated Statements of Cash Flows | Six Months Ended | ||||||
(Unaudited) | December 31, | ||||||
(Amounts in Thousands) | 2016 | 2015 | |||||
Net Cash Flow provided by Operating Activities | $ | 26,091 | $ | 16,319 | |||
Net Cash Flow used for Investing Activities | (21,688 | ) | (19,262 | ) | |||
Net Cash Flow used for Financing Activities | (15,032 | ) | (1,193 | ) | |||
Effect of Exchange Rate Change on Cash and Cash Equivalents | (1,369 | ) | (545 | ) | |||
Net Decrease in Cash and Cash Equivalents | (11,998 | ) | (4,681 | ) | |||
Cash and Cash Equivalents at Beginning of Period | 54,738 | 65,180 | |||||
Cash and Cash Equivalents at End of Period | $ | 42,740 | $ | 60,499 |
(Unaudited) | |||||||
Condensed Consolidated Balance Sheets | December 31, 2016 | June 30, 2016 | |||||
(Amounts in Thousands) | |||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 42,740 | $ | 54,738 | |||
Receivables, net | 156,535 | 149,652 | |||||
Inventories | 138,729 | 132,877 | |||||
Prepaid expenses and other current assets | 25,420 | 24,944 | |||||
Property and Equipment, net | 130,918 | 120,701 | |||||
Goodwill | 6,191 | 6,191 | |||||
Other Intangible Assets, net | 4,804 | 4,593 | |||||
Other Assets | 18,034 | 16,869 | |||||
Total Assets | $ | 523,371 | $ | 510,565 | |||
LIABILITIES AND SHARE OWNERS’ EQUITY | |||||||
Borrowings under credit facilities | $ | 9,000 | $ | 9,000 | |||
Accounts payable | 150,730 | 142,152 | |||||
Accrued expenses | 25,399 | 23,651 | |||||
Other | 12,441 | 11,393 | |||||
Share Owners’ Equity | 325,801 | 324,369 | |||||
Total Liabilities and Share Owners’ Equity | $ | 523,371 | $ | 510,565 |
Reconciliation of Non-GAAP Financial Measures | ||||||||
(Unaudited) | ||||||||
(Amounts in Thousands, except Per Share Data) | ||||||||
Operating Income excluding Spin-off Expenses and Lawsuit Proceeds | ||||||||
Six Months Ended | ||||||||
December 31, | ||||||||
2016 | 2015 | |||||||
Operating Income, as reported | $ | 25,063 | $ | 13,854 | ||||
Add: Pre-tax Spin-off Expenses | — | 137 | ||||||
Less: Pre-tax Settlement Proceeds from Lawsuit | 4,005 | — | ||||||
Adjusted Operating Income | $ | 21,058 | $ | 13,991 | ||||
Net Income excluding Spin-off Expenses, Lawsuit Proceeds, and Bargain Purchase Gain | ||||||||
Six Months Ended | ||||||||
December 31, | ||||||||
2016 | 2015 | |||||||
Net Income, as reported | $ | 17,934 | $ | 9,039 | ||||
Add: After-tax Spin-off Expenses | — | 85 | ||||||
Less: After-tax Settlement Proceeds from Lawsuit | 2,499 | — | ||||||
Less: Bargain Purchase Gain | 925 | — | ||||||
Adjusted Net Income | $ | 14,510 | $ | 9,124 | ||||
Diluted Earnings per Share excluding Spin-off Expenses, Lawsuit Proceeds, and Bargain Purchase Gain | ||||||||
Six Months Ended | ||||||||
December 31, | ||||||||
2016 | 2015 | |||||||
Diluted Earnings per Share, as reported | $ | 0.65 | $ | 0.31 | ||||
Add: Impact of Spin-off Expenses | — | 0.00 | ||||||
Less: Impact of Settlement Proceeds from Lawsuits | 0.09 | — | ||||||
Less: Bargain Purchase Gain | 0.04 | — | ||||||
Adjusted Diluted Earnings per Share | $ | 0.52 | $ | 0.31 | ||||
Return on Invested Capital (ROIC) | ||||||||
Six Months Ended | ||||||||
December 31, | ||||||||
2016 | 2015 | |||||||
Adjusted Operating Income | $ | 21,058 | $ | 13,991 | ||||
Annualized Adjusted Operating Income | $ | 42,116 | $ | 27,982 | ||||
Tax Rate | 27.0 | % | 29.2 | % | ||||
Tax Effect | $ | 11,371 | $ | 8,171 | ||||
After Tax Annualized Adjusted Operating Income | $ | 30,745 | $ | 19,811 | ||||
Average Invested Capital * | $ | 286,347 | $ | 256,785 | ||||
ROIC | 10.7 | % | 7.7 | % |
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