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) |
Securities registered pursuant to Section 12(b) of the Act: | ||
Title of each Class | Trading Symbol | Name of each exchange on which registered |
Common Stock, no par value | KE | The NASDAQ Stock Market LLC |
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 $313 million, up 18% year-over-year |
• | Operating income, as a percent of net sales, increased 90 basis points from the prior year first quarter |
• | Strong cash flow provided by operations of $39.6 million during the quarter |
• | Returned $3.5 million to Share Owners in stock repurchases during the quarter |
Three Months Ended | |||||||
September 30, | |||||||
(Amounts in Thousands, except EPS) | 2019 | 2018 | |||||
Net Sales | $ | 313,385 | $ | 265,620 | |||
Operating Income | $ | 11,115 | $ | 7,032 | |||
Adjusted Operating Income (non-GAAP) (1) | $ | 11,115 | $ | 6,940 | |||
Operating Income % | 3.5 | % | 2.6 | % | |||
Net Income | $ | 6,598 | $ | 5,069 | |||
Adjusted Net Income (non-GAAP) (1) | $ | 6,598 | $ | 4,999 | |||
Diluted EPS | $ | 0.26 | $ | 0.19 |
• | Consolidated net sales increased 18% compared to the first quarter of fiscal year 2019. The GES acquisition added 2% to net sales for the quarter while unfavorable foreign currency movements adversely impacted consolidated net sales by approximately 2% compared to the same quarter a year ago. |
• | Operating activities provided cash of $39.6 million during the quarter, which compares to cash used by operating activities of $10.0 million in the first quarter of fiscal year 2019. |
• | Cash conversion days (“CCD”) for the quarter ended September 30, 2019 were 73 days, which declined sequentially from 77 days in the fourth quarter of fiscal year 2019 from improvement in days sales outstanding as a result of increased utilization of accounts receivable factoring arrangements. CCD is calculated as the sum of days sales outstanding plus contract asset days plus production days supply on hand less accounts payable days. |
• | Investments in capital expenditures were $11.7 million during the quarter. |
• | $3.5 million was returned to Share Owners during the quarter in the form of common stock repurchases. |
• | Cash and cash equivalents were $55.4 million and borrowings outstanding on credit facilities were $109.6 million at September 30, 2019, including $91.5 million classified as long-term. |
• | Return on invested capital (“ROIC”), calculated for the trailing twelve months, was 9.0% and 9.3% for the twelve months ended September 30, 2019 and 2018, respectively (see reconciliation of non-GAAP financial measures for ROIC calculation). |
Three Months Ended | ||||||||||
September 30, | ||||||||||
(Amounts in Millions) | 2019 | 2018 | Percent Change | |||||||
Automotive | $ | 124.4 | $ | 105.9 | 17 | % | ||||
Medical | 101.3 | 82.2 | 23 | % | ||||||
Industrial | 64.7 | 57.4 | 13 | % | ||||||
Public Safety | 17.1 | 17.1 | — | % | ||||||
Other | 5.9 | 3.0 | 96 | % | ||||||
Total Net Sales | $ | 313.4 | $ | 265.6 | 18 | % |
Conference Call / Webcast | ||
Date: | November 6, 2019 | |
Time: | 10:00 AM Eastern Time | |
Dial-In #: | 800-992-4934 (International Calls - 937-502-2251) | |
Conference ID: | 1836429 |
Condensed Consolidated Statements of Income | |||||||||||||
(Unaudited) | Three Months Ended | ||||||||||||
(Amounts in Thousands, except Per Share Data) | September 30, 2019 | September 30, 2018 | |||||||||||
Net Sales | $ | 313,385 | 100.0 | % | $ | 265,620 | 100.0 | % | |||||
Cost of Sales | 291,192 | 92.9 | % | 247,434 | 93.2 | % | |||||||
Gross Profit | 22,193 | 7.1 | % | 18,186 | 6.8 | % | |||||||
Selling and Administrative Expenses | 11,078 | 3.6 | % | 11,246 | 4.2 | % | |||||||
Other General Income | — | — | % | (92 | ) | — | % | ||||||
Operating Income | 11,115 | 3.5 | % | 7,032 | 2.6 | % | |||||||
Other Income (Expense), net | (2,402 | ) | (0.7 | )% | (554 | ) | (0.2 | )% | |||||
Income Before Taxes on Income | 8,713 | 2.8 | % | 6,478 | 2.4 | % | |||||||
Provision for Income Taxes | 2,115 | 0.7 | % | 1,409 | 0.5 | % | |||||||
Net Income | $ | 6,598 | 2.1 | % | $ | 5,069 | 1.9 | % | |||||
Earnings Per Share of Common Stock: | |||||||||||||
Basic | $ | 0.26 | $ | 0.19 | |||||||||
Diluted | $ | 0.26 | $ | 0.19 | |||||||||
Average Number of Shares Outstanding: | |||||||||||||
Basic | 25,495 | 26,507 | |||||||||||
Diluted | 25,609 | 26,628 |
Condensed Consolidated Statements of Cash Flows | Three Months Ended | ||||||
(Unaudited) | September 30, | ||||||
(Amounts in Thousands) | 2019 | 2018 | |||||
Net Cash Flow provided by (used for) Operating Activities | $ | 39,619 | $ | (10,013 | ) | ||
Net Cash Flow used for Investing Activities | (11,725 | ) | (4,646 | ) | |||
Net Cash Flow (used for) provided by Financing Activities | (20,588 | ) | 43,714 | ||||
Effect of Exchange Rate Change on Cash and Cash Equivalents | (1,231 | ) | (514 | ) | |||
Net Increase in Cash and Cash Equivalents | 6,075 | 28,541 | |||||
Cash and Cash Equivalents at Beginning of Period | 49,276 | 46,428 | |||||
Cash and Cash Equivalents at End of Period | $ | 55,351 | $ | 74,969 |
(Unaudited) | |||||||
Condensed Consolidated Balance Sheets | September 30, 2019 | June 30, 2019 | |||||
(Amounts in Thousands) | |||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 55,351 | $ | 49,276 | |||
Receivables, net | 185,771 | 225,555 | |||||
Contract assets | 60,800 | 51,929 | |||||
Inventories | 200,753 | 203,840 | |||||
Prepaid expenses and other current assets | 25,377 | 24,713 | |||||
Property and Equipment, net | 142,895 | 143,629 | |||||
Goodwill | 19,936 | 18,104 | |||||
Other Intangible Assets, net | 21,505 | 22,188 | |||||
Other Assets | 27,507 | 24,877 | |||||
Total Assets | $ | 739,895 | $ | 764,111 | |||
LIABILITIES AND SHARE OWNERS’ EQUITY | |||||||
Current portion of borrowings under credit facilities | $ | 18,067 | $ | 34,713 | |||
Accounts payable | 193,300 | 197,001 | |||||
Accrued expenses | 38,210 | 43,196 | |||||
Long-term debt under credit facilities, less current portion | 91,500 | 91,500 | |||||
Long-term income taxes payable | 9,765 | 9,765 | |||||
Other | 19,800 | 18,082 | |||||
Share Owners’ Equity | 369,253 | 369,854 | |||||
Total Liabilities and Share Owners’ Equity | $ | 739,895 | $ | 764,111 |
Reconciliation of Non-GAAP Financial Measures | ||||||||
(Unaudited) | ||||||||
(Amounts in Thousands, except Per Share Data) | ||||||||
Operating Income excluding Lawsuit Proceeds | ||||||||
Three Months Ended | ||||||||
September 30, | ||||||||
2019 | 2018 | |||||||
Operating Income, as reported | $ | 11,115 | $ | 7,032 | ||||
Less: Pre-tax Settlement Proceeds from Lawsuit | — | 92 | ||||||
Adjusted Operating Income | $ | 11,115 | $ | 6,940 | ||||
Net Income excluding Lawsuit Proceeds | ||||||||
Three Months Ended | ||||||||
September 30, | ||||||||
2019 | 2018 | |||||||
Net Income, as reported | $ | 6,598 | $ | 5,069 | ||||
Less: After-tax Settlement Proceeds from Lawsuit | — | 70 | ||||||
Adjusted Net Income | $ | 6,598 | $ | 4,999 | ||||
Return on Invested Capital (ROIC) | ||||||||
Twelve Months Ended | ||||||||
September 30, | ||||||||
2019 | 2018 | |||||||
Operating Income | $ | 46,143 | $ | 39,547 | ||||
Less: Pre-tax Settlement Proceeds from Lawsuits | $ | 215 | $ | 92 | ||||
Adjusted Operating Income (non-GAAP) | $ | 45,928 | $ | 39,455 | ||||
Tax Effect (1) | $ | 8,920 | $ | 9,152 | ||||
After-Tax Adjusted Operating Income | $ | 37,008 | $ | 30,303 | ||||
Average Invested Capital (2) | $ | 411,735 | $ | 326,168 | ||||
ROIC | 9.0 | % | 9.3 | % |
'!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