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 August 2, 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 August 2, 2017 | |
99.2 | Supplementary Information |
• | Quarterly net sales record of $241 million |
• | Fourth quarter net income of $8.1 million and diluted EPS of $0.30 |
• | $12.0 million of cash flow provided by operations in the quarter |
• | Returned $5.1 million to Share Owners through stock repurchases during the quarter |
Three Months Ended | |||||||
June 30, | |||||||
(Amounts in Thousands, except EPS) | 2017 | 2016 | |||||
Net Sales | $ | 241,268 | $ | 220,402 | |||
Operating Income | $ | 8,455 | $ | 8,790 | |||
Operating Income % | 3.5 | % | 4.0 | % | |||
Net Income | $ | 8,128 | $ | 5,771 | |||
Diluted EPS | $ | 0.30 | $ | 0.20 |
Fiscal Year Ended | |||||||
June 30, | |||||||
(Amounts in Thousands, except EPS) | 2017 | 2016 | |||||
Net Sales | $ | 930,914 | $ | 842,060 | |||
Operating Income | $ | 43,057 | $ | 29,722 | |||
Adjusted Operating Income (non-GAAP)* | $ | 39,052 | $ | 29,859 | |||
Operating Income % | 4.6 | % | 3.5 | % | |||
Adjusted Operating Income (non-GAAP) % | 4.2 | % | 3.5 | % | |||
Net Income | $ | 34,179 | $ | 22,287 | |||
Adjusted Net Income (non-GAAP)* | $ | 30,755 | $ | 22,372 | |||
Diluted EPS | $ | 1.24 | $ | 0.76 | |||
Adjusted Diluted EPS (non-GAAP)* | $ | 1.12 | $ | 0.77 |
• | Consolidated net sales increased 9% compared to the fourth quarter of fiscal year 2016, the sixth consecutive quarterly sales record. |
• | Cash flow provided by operating activities was $12.0 million for the quarter, which compares to $8.8 million in the prior year fourth quarter. |
• | Cash conversion days (“CCD”) for the quarter ended June 30, 2017 were 60 days, which compares to 59 days in 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 $8.3 million during the quarter. |
• | $5.1 million was returned to Share Owners during the quarter in the form of common stock repurchases. |
• | Cash and cash equivalents were $44.6 million and borrowings outstanding on credit facilities were $10.0 million at June 30, 2017. |
Three Months Ended | ||||||||||
June 30, | ||||||||||
(Amounts in Millions) | 2017 | 2016 | Percent Change | |||||||
Automotive | $ | 95.9 | $ | 86.5 | 11 | % | ||||
Medical | 68.3 | 65.2 | 5 | % | ||||||
Industrial | 51.9 | 48.6 | 7 | % | ||||||
Public Safety | 20.5 | 14.7 | 39 | % | ||||||
Other | 4.7 | 5.4 | (14 | )% | ||||||
Total Net Sales | $ | 241.3 | $ | 220.4 | 9 | % |
• | Net sales increased 11% from the prior fiscal year, setting a new annual net sales record of $930.9 million. |
• | $4.0 million in Other General Income, $2.5 million net of tax, was received during the year relating to proceeds from the settlement of a class action lawsuit of which the Company was a member. |
• | Adjusted operating income in fiscal year 2017 of 4.2% surpassed the Company’s stated goal of 4.0%. |
• | Acquired Aircom Manufacturing, Inc. during the fiscal year, which also resulted in a bargain purchase gain included in Net Income of $0.9 million. |
• | Set new records for Net Income and Diluted EPS. |
• | Cash flow provided by operating activities for fiscal year 2017 was $46.8 million, which compares to $36.8 million for fiscal year 2016. |
• | Capital expenditures were $34.3 million in fiscal year 2017, flat with prior year expenditures of $34.6 million. |
• | Return on invested capital (“ROIC”) was 10.4% for fiscal year 2017, which improved from 9.0% for the prior fiscal year (see reconciliation of non-GAAP financial measures for ROIC calculation). |
• | During the year $21.9 million was returned to Share Owners in the form of common stock repurchases. |
• | Net sales goal remains $1.0 billion for fiscal year 2018. |
• | Operating income goal is being increased from 4.0% to 4.5%. |
• | ROIC long-term goal remains 12.5%. |
• | Fiscal year 2018 capital expenditures expected to decline to a level approximating depreciation expense. |
Conference Call / Webcast | ||
Date: | August 3, 2017 | |
Time: | 10:00 AM Eastern Time | |
Dial-In #: | 800-992-4934 (International Calls - 937-502-2251) | |
Conference ID: | 58019425 |
Condensed Consolidated Statements of Income | |||||||||||||
(Unaudited) | Three Months Ended | ||||||||||||
(Amounts in Thousands, except Per Share Data) | June 30, 2017 | June 30, 2016 | |||||||||||
Net Sales | $ | 241,268 | 100.0 | % | $ | 220,402 | 100.0 | % | |||||
Cost of Sales | 223,266 | 92.5 | % | 203,444 | 92.3 | % | |||||||
Gross Profit | 18,002 | 7.5 | % | 16,958 | 7.7 | % | |||||||
Selling and Administrative Expenses | 9,547 | 4.0 | % | 8,168 | 3.7 | % | |||||||
Operating Income | 8,455 | 3.5 | % | 8,790 | 4.0 | % | |||||||
Other Income (Expense), net | 1,117 | 0.5 | % | (725 | ) | (0.3 | )% | ||||||
Income Before Taxes on Income | 9,572 | 4.0 | % | 8,065 | 3.7 | % | |||||||
Provision for Income Taxes | 1,444 | 0.6 | % | 2,294 | 1.1 | % | |||||||
Net Income | $ | 8,128 | 3.4 | % | $ | 5,771 | 2.6 | % | |||||
Earnings Per Share of Common Stock: | |||||||||||||
Basic | $ | 0.30 | $ | 0.20 | |||||||||
Diluted | $ | 0.30 | $ | 0.20 | |||||||||
Average Number of Shares Outstanding: | |||||||||||||
Basic | 26,957 | 28,374 | |||||||||||
Diluted | 27,151 | 28,641 |
(Unaudited) | Fiscal Year Ended | ||||||||||||
(Amounts in Thousands, except Per Share Data) | June 30, 2017 | June 30, 2016 | |||||||||||
Net Sales | $ | 930,914 | 100.0 | % | $ | 842,060 | 100.0 | % | |||||
Cost of Sales | 855,319 | 91.9 | % | 777,522 | 92.3 | % | |||||||
Gross Profit | 75,595 | 8.1 | % | 64,538 | 7.7 | % | |||||||
Selling and Administrative Expenses | 36,543 | 3.9 | % | 34,816 | 4.2 | % | |||||||
Other General Income | (4,005 | ) | (0.4 | )% | — | — | % | ||||||
Operating Income | 43,057 | 4.6 | % | 29,722 | 3.5 | % | |||||||
Other Income (Expense), net | 1,198 | 0.2 | % | (1,746 | ) | (0.2 | )% | ||||||
Income Before Taxes on Income | 44,255 | 4.8 | % | 27,976 | 3.3 | % | |||||||
Provision for Income Taxes | 10,076 | 1.1 | % | 5,689 | 0.7 | % | |||||||
Net Income | $ | 34,179 | 3.7 | % | $ | 22,287 | 2.6 | % | |||||
Earnings Per Share of Common Stock: | |||||||||||||
Basic | $ | 1.25 | $ | 0.77 | |||||||||
Diluted | $ | 1.24 | $ | 0.76 | |||||||||
Average Number of Shares Outstanding: | |||||||||||||
Basic | 27,413 | 28,916 | |||||||||||
Diluted | 27,530 | 29,176 |
Condensed Consolidated Statements of Cash Flows | Fiscal Year Ended | ||||||
(Unaudited) | June 30, | ||||||
(Amounts in Thousands) | 2017 | 2016 | |||||
Net Cash Flow provided by Operating Activities | $ | 46,754 | $ | 36,832 | |||
Net Cash Flow used for Investing Activities | (35,709 | ) | (42,590 | ) | |||
Net Cash Flow used for Financing Activities | (22,034 | ) | (4,300 | ) | |||
Effect of Exchange Rate Change on Cash and Cash Equivalents | 806 | (384 | ) | ||||
Net Decrease in Cash and Cash Equivalents | (10,183 | ) | (10,442 | ) | |||
Cash and Cash Equivalents at Beginning of Year | 54,738 | 65,180 | |||||
Cash and Cash Equivalents at End of Year | $ | 44,555 | $ | 54,738 |
(Unaudited) | |||||||
Condensed Consolidated Balance Sheets | June 30, 2017 | June 30, 2016 | |||||
(Amounts in Thousands) | |||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 44,555 | $ | 54,738 | |||
Receivables, net | 169,785 | 149,652 | |||||
Inventories | 144,606 | 132,877 | |||||
Prepaid expenses and other current assets | 29,219 | 24,944 | |||||
Property and Equipment, net | 137,549 | 120,701 | |||||
Goodwill | 6,191 | 6,191 | |||||
Other Intangible Assets, net | 4,581 | 4,593 | |||||
Other Assets | 18,458 | 16,869 | |||||
Total Assets | $ | 554,944 | $ | 510,565 | |||
LIABILITIES AND SHARE OWNERS’ EQUITY | |||||||
Borrowings under credit facilities | $ | 10,000 | $ | 9,000 | |||
Accounts payable | 154,619 | 142,152 | |||||
Accrued expenses | 34,630 | 23,651 | |||||
Other | 13,423 | 11,393 | |||||
Share Owners’ Equity | 342,272 | 324,369 | |||||
Total Liabilities and Share Owners’ Equity | $ | 554,944 | $ | 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 | ||||||||
Fiscal Year Ended | ||||||||
June 30, | ||||||||
2017 | 2016 | |||||||
Operating Income, as reported | $ | 43,057 | $ | 29,722 | ||||
Add: Pre-tax Spin-off Expenses | — | 137 | ||||||
Less: Pre-tax Settlement Proceeds from Lawsuit | 4,005 | — | ||||||
Adjusted Operating Income | $ | 39,052 | $ | 29,859 | ||||
Net Income excluding Spin-off Expenses, Lawsuit Proceeds, and Bargain Purchase Gain | ||||||||
Fiscal Year Ended | ||||||||
June 30, | ||||||||
2017 | 2016 | |||||||
Net Income, as reported | $ | 34,179 | $ | 22,287 | ||||
Add: After-tax Spin-off Expenses | — | 85 | ||||||
Less: After-tax Settlement Proceeds from Lawsuit | 2,499 | — | ||||||
Less: Bargain Purchase Gain | 925 | — | ||||||
Adjusted Net Income | $ | 30,755 | $ | 22,372 | ||||
Diluted Earnings per Share excluding Spin-off Expenses, Lawsuit Proceeds, and Bargain Purchase Gain | ||||||||
Fiscal Year Ended | ||||||||
June 30, | ||||||||
2017 | 2016 | |||||||
Diluted Earnings per Share, as reported | $ | 1.24 | $ | 0.76 | ||||
Add: Impact of Spin-off Expenses | — | 0.01 | ||||||
Less: Impact of Settlement Proceeds from Lawsuits | 0.09 | — | ||||||
Less: Bargain Purchase Gain | 0.03 | — | ||||||
Adjusted Diluted Earnings per Share | $ | 1.12 | $ | 0.77 | ||||
Return on Invested Capital (ROIC) | ||||||||
Fiscal Year Ended | ||||||||
June 30, | ||||||||
2017 | 2016 | |||||||
Adjusted Operating Income | $ | 39,052 | $ | 29,859 | ||||
Tax Rate | 21.8 | % | 20.4 | % | ||||
Tax Effect | $ | 8,513 | $ | 6,091 | ||||
After Tax Adjusted Operating Income | $ | 30,539 | $ | 23,768 | ||||
Average Invested Capital * | $ | 293,516 | $ | 263,371 | ||||
ROIC | 10.4 | % | 9.0 | % |
'!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