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 | ||
99.2 |
KIMBALL ELECTRONICS, INC. | |
By: | /s/ Michael K. Sergesketter |
MICHAEL K. SERGESKETTER Vice President, Chief Financial Officer |
• | First quarter net sales were $266 million, up 5% from the prior year first quarter |
• | Net income of $5.1 million and diluted earnings per share of $0.19 |
• | Returned $5.4 million to Share Owners in stock repurchases during the quarter |
Three Months Ended | ||||||||
September 30, | ||||||||
(Amounts in Thousands, except EPS) | 2018 (1) | 2017 | ||||||
Net Sales | $ | 265,620 | $ | 253,204 | ||||
Operating Income (2) | $ | 7,032 | $ | 9,523 | ||||
Adjusted Operating Income (non-GAAP) (2) (3) | $ | 6,940 | $ | 9,523 | ||||
Operating Income % | 2.6 | % | 3.8 | % | ||||
Net Income | $ | 5,069 | $ | 8,480 | ||||
Adjusted Net Income (non-GAAP) (3) | $ | 4,999 | $ | 8,480 | ||||
Diluted EPS | $ | 0.19 | $ | 0.31 |
• | Consolidated net sales increased 5% organically compared to the first quarter of fiscal year 2018. |
• | The current quarter includes non-operating expense of $0.7 million related to pre-tax net losses from foreign currency movements, which compares to pre-tax net gains of $1.1 million recognized in non-operating income in the same quarter of the prior year related to foreign currency movements. |
• | The Romania facility continues to progress in its ramp-up and improved its impact to the consolidated operating income percent by 30 basis points compared to the prior year first quarter. |
• | Operating activities used cash of $10.0 million during the quarter, which compares to cash used by operating activities of $0.2 million in the first quarter of fiscal year 2018. |
• | Cash conversion days (“CCD”) for the quarter ended September 30, 2018 were 68 days, up from 59 days in the same quarter last year. CCD is calculated as the sum of days sales outstanding plus contract asset days plus production days supply on hand less accounts payable days. |
• | $5.4 million was returned to Share Owners during the quarter in the form of common stock repurchases. |
• | Investments in capital expenditures were $4.8 million during the quarter. |
• | Cash and cash equivalents were $75.0 million and borrowings outstanding on credit facilities were $59.3 million at September 30, 2018. |
• | Return on invested capital (“ROIC”), calculated for the trailing twelve months, was 9.3% and 10.2% for the twelve months ended September 30, 2018 and 2017, respectively (see reconciliation of non-GAAP financial measures for ROIC calculation). |
Three Months Ended | ||||||||||
September 30, | ||||||||||
(Amounts in Millions) | 2018 | 2017 | Percent Change | |||||||
Automotive | $ | 105.9 | $ | 102.0 | 4 | % | ||||
Medical | 82.2 | 76.2 | 8 | % | ||||||
Industrial | 57.4 | 54.8 | 5 | % | ||||||
Public Safety | 17.1 | 17.2 | — | % | ||||||
Other | 3.0 | 3.0 | — | % | ||||||
Total Net Sales | $ | 265.6 | $ | 253.2 | 5 | % |
Conference Call / Webcast | ||
Date: | November 7, 2018 | |
Time: | 10:00 AM Eastern Time | |
Dial-In #: | 800-992-4934 (International Calls - 937-502-2251) | |
Conference ID: | 7129658 |
Condensed Consolidated Statements of Income | |||||||||||||
(Unaudited) | Three Months Ended | ||||||||||||
(Amounts in Thousands, except Per Share Data) | September 30, 2018 (1) | September 30, 2017 | |||||||||||
Net Sales | $ | 265,620 | 100.0 | % | $ | 253,204 | 100.0 | % | |||||
Cost of Sales (2) | 247,434 | 93.2 | % | 233,751 | 92.3 | % | |||||||
Gross Profit (2) | 18,186 | 6.8 | % | 19,453 | 7.7 | % | |||||||
Selling and Administrative Expenses (2) | 11,246 | 4.2 | % | 9,930 | 3.9 | % | |||||||
Other General Income | (92 | ) | — | % | — | — | % | ||||||
Operating Income (2) | 7,032 | 2.6 | % | 9,523 | 3.8 | % | |||||||
Other Income (Expense), net (2) | (554 | ) | (0.2 | )% | 1,312 | 0.5 | % | ||||||
Income Before Taxes on Income | 6,478 | 2.4 | % | 10,835 | 4.3 | % | |||||||
Provision for Income Taxes | 1,409 | 0.5 | % | 2,355 | 1.0 | % | |||||||
Net Income | $ | 5,069 | 1.9 | % | $ | 8,480 | 3.3 | % | |||||
Earnings Per Share of Common Stock: | |||||||||||||
Basic | $ | 0.19 | $ | 0.32 | |||||||||
Diluted | $ | 0.19 | $ | 0.31 | |||||||||
Average Number of Shares Outstanding: | |||||||||||||
Basic | 26,507 | 26,859 | |||||||||||
Diluted | 26,628 | 27,028 |
Condensed Consolidated Statements of Cash Flows | Three Months Ended | ||||||
(Unaudited) | September 30, | ||||||
(Amounts in Thousands) | 2018 | 2017 | |||||
Net Cash Flow used for Operating Activities | $ | (10,013 | ) | $ | (169 | ) | |
Net Cash Flow used for Investing Activities | (4,646 | ) | (6,066 | ) | |||
Net Cash Flow provided by (used for) Financing Activities | 43,714 | (948 | ) | ||||
Effect of Exchange Rate Change on Cash and Cash Equivalents | (514 | ) | 944 | ||||
Net Increase (Decrease) in Cash and Cash Equivalents | 28,541 | (6,239 | ) | ||||
Cash and Cash Equivalents at Beginning of Period | 46,428 | 44,555 | |||||
Cash and Cash Equivalents at End of Period | $ | 74,969 | $ | 38,316 |
(Unaudited) | |||||||
Condensed Consolidated Balance Sheets | September 30, 2018 | June 30, 2018 | |||||
(Amounts in Thousands) | |||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 74,969 | $ | 46,428 | |||
Receivables, net | 169,630 | 173,559 | |||||
Contract assets * | 43,619 | — | |||||
Inventories * | 188,572 | 201,596 | |||||
Prepaid expenses and other current assets | 15,587 | 15,405 | |||||
Property and Equipment, net | 134,831 | 137,210 | |||||
Goodwill | 6,191 | 6,191 | |||||
Other Intangible Assets, net | 4,713 | 4,375 | |||||
Other Assets * | 24,764 | 23,994 | |||||
Total Assets | $ | 662,876 | $ | 608,758 | |||
LIABILITIES AND SHARE OWNERS’ EQUITY | |||||||
Borrowings under credit facilities | $ | 59,271 | $ | 8,337 | |||
Accounts payable | 192,657 | 187,788 | |||||
Accrued expenses * | 28,134 | 32,446 | |||||
Long-term income taxes payable | 11,286 | 12,361 | |||||
Other | 12,644 | 12,299 | |||||
Share Owners’ Equity * | 358,884 | 355,527 | |||||
Total Liabilities and Share Owners’ Equity | $ | 662,876 | $ | 608,758 |
Reconciliation of Non-GAAP Financial Measures | ||||||||
(Unaudited) | ||||||||
(Amounts in Thousands, except Per Share Data) | ||||||||
Operating Income excluding Lawsuit Proceeds | ||||||||
Three Months Ended | ||||||||
September 30, | ||||||||
2018 | 2017 | |||||||
Operating Income, as reported (1) | $ | 7,032 | $ | 9,523 | ||||
Less: Pre-tax Settlement Proceeds from Lawsuit | 92 | — | ||||||
Adjusted Operating Income (1) | $ | 6,940 | $ | 9,523 | ||||
Net Income excluding Lawsuit Proceeds | ||||||||
Three Months Ended | ||||||||
September 30, | ||||||||
2018 | 2017 | |||||||
Net Income, as reported | $ | 5,069 | $ | 8,480 | ||||
Less: After-tax Settlement Proceeds from Lawsuit | 70 | — | ||||||
Adjusted Net Income | $ | 4,999 | $ | 8,480 | ||||
Return on Invested Capital (ROIC) | ||||||||
Twelve Months Ended | ||||||||
September 30, | ||||||||
2018 | 2017 | |||||||
Operating Income (GAAP) (1) | $ | 39,547 | $ | 39,568 | ||||
Less: Pre-tax Settlement Proceeds from Lawsuit | $ | 92 | $ | — | ||||
Adjusted Operating Income (non-GAAP) (1) | $ | 39,455 | $ | 39,568 | ||||
Tax Effect (2) | $ | 9,152 | $ | 8,723 | ||||
After Tax Adjusted Operating Income | $ | 30,303 | $ | 30,845 | ||||
Average Invested Capital (3) | $ | 326,168 | $ | 302,721 | ||||
ROIC | 9.3 | % | 10.2 | % |
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