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 |
• | Third quarter net sales were $294 million, down 6% year-over-year |
• | Net income of $6.3 million and diluted earnings per share of $0.25 |
• | Strong cash flows of $12.0 million were provided from operating activities during the third quarter |
Three Months Ended | Nine Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
(Amounts in Thousands, except EPS) | 2020 | 2019 | 2020 | 2019 | |||||||||||
Net Sales | $ | 293,925 | $ | 313,454 | $ | 914,394 | $ | 863,223 | |||||||
Operating Income | $ | 10,588 | $ | 14,497 | $ | 30,387 | $ | 31,741 | |||||||
Adjusted Operating Income (non-GAAP) (1) | $ | 10,588 | $ | 14,497 | $ | 30,387 | $ | 31,649 | |||||||
Operating Income % | 3.6 | % | 4.6 | % | 3.3 | % | 3.7 | % | |||||||
Net Income | $ | 6,259 | $ | 11,849 | $ | 19,469 | $ | 24,033 | |||||||
Adjusted Net Income (non-GAAP) (1) | $ | 6,259 | $ | 11,849 | $ | 19,469 | $ | 23,712 | |||||||
Diluted EPS | $ | 0.25 | $ | 0.46 | $ | 0.76 | $ | 0.92 | |||||||
Adjusted Diluted EPS (non-GAAP) (1) | $ | 0.25 | $ | 0.46 | $ | 0.76 | $ | 0.90 |
• | Consolidated net sales decreased 6% compared to the third quarter of fiscal year 2019. Foreign currency headwinds had an unfavorable 1% impact on net sales in the current quarter. |
• | Operating activities provided cash of $12.0 million during the quarter, which compares to cash used by operating activities of $14.6 million in the third quarter of fiscal year 2019. |
• | Cash conversion days (“CCD”) for the quarter ended March 31, 2020 were 81 days, up from 75 days in the quarter ended March 31, 2019 and 76 days in the second quarter of fiscal year 2020. 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 $5.7 million during the quarter. |
• | $2.7 million was returned to Share Owners during the quarter in the form of common stock repurchases. The stock repurchase plan has been temporarily suspended as a result of the COVID-19 environment. |
• | Return on invested capital (“ROIC”), calculated for the trailing twelve months, was 7.1% and 9.0% for the twelve months ended March 31, 2020 and 2019, respectively (see reconciliation of non-GAAP financial measures for ROIC calculation). |
Three Months Ended | ||||||||||
March 31, | ||||||||||
(Amounts in Millions) | 2020 | 2019 | Percent Change | |||||||
Automotive | $ | 124.4 | $ | 127.3 | (2 | )% | ||||
Medical | 87.1 | 99.1 | (12 | )% | ||||||
Industrial | 65.6 | 68.0 | (3 | )% | ||||||
Public Safety | 12.5 | 15.1 | (18 | )% | ||||||
Other | 4.3 | 4.0 | 8 | % | ||||||
Total Net Sales | $ | 293.9 | $ | 313.5 | (6 | )% |
Conference Call / Webcast | ||
Date: | May 5, 2020 | |
Time: | 10:00 AM Eastern Time | |
Live Webcast: | investors.kimballelectronics.com/events-and-presentations | |
Dial-In #: | 800-992-4934 (International Calls - 937-502-2251) | |
Conference ID: | 2576287 |
Condensed Consolidated Statements of Income | |||||||||||||
(Unaudited) | Three Months Ended | ||||||||||||
(Amounts in Thousands, except Per Share Data) | March 31, 2020 | March 31, 2019 | |||||||||||
Net Sales | $ | 293,925 | 100.0 | % | $ | 313,454 | 100.0 | % | |||||
Cost of Sales | 273,713 | 93.1 | % | 286,900 | 91.5 | % | |||||||
Gross Profit | 20,212 | 6.9 | % | 26,554 | 8.5 | % | |||||||
Selling and Administrative Expenses | 9,624 | 3.3 | % | 12,057 | 3.9 | % | |||||||
Operating Income | 10,588 | 3.6 | % | 14,497 | 4.6 | % | |||||||
Other Income (Expense), net | (1,893 | ) | (0.6 | )% | 177 | 0.1 | % | ||||||
Income Before Taxes on Income | 8,695 | 3.0 | % | 14,674 | 4.7 | % | |||||||
Provision for Income Taxes | 2,436 | 0.9 | % | 2,825 | 0.9 | % | |||||||
Net Income | $ | 6,259 | 2.1 | % | $ | 11,849 | 3.8 | % | |||||
Earnings Per Share of Common Stock: | |||||||||||||
Basic | $ | 0.25 | $ | 0.46 | |||||||||
Diluted | $ | 0.25 | $ | 0.46 | |||||||||
Average Number of Shares Outstanding: | |||||||||||||
Basic | 25,181 | 25,479 | |||||||||||
Diluted | 25,287 | 25,568 |
(Unaudited) | Nine Months Ended | ||||||||||||
(Amounts in Thousands, except Per Share Data) | March 31, 2020 | March 31, 2019 | |||||||||||
Net Sales | $ | 914,394 | 100.0 | % | $ | 863,223 | 100.0 | % | |||||
Cost of Sales | 851,478 | 93.1 | % | 798,039 | 92.4 | % | |||||||
Gross Profit | 62,916 | 6.9 | % | 65,184 | 7.6 | % | |||||||
Selling and Administrative Expenses | 32,529 | 3.6 | % | 33,535 | 3.9 | % | |||||||
Other General Income | — | — | % | (92 | ) | — | % | ||||||
Operating Income | 30,387 | 3.3 | % | 31,741 | 3.7 | % | |||||||
Other Income (Expense), net | (4,152 | ) | (0.4 | )% | (1,970 | ) | (0.3 | )% | |||||
Income Before Taxes on Income | 26,235 | 2.9 | % | 29,771 | 3.4 | % | |||||||
Provision for Income Taxes | 6,766 | 0.8 | % | 5,738 | 0.6 | % | |||||||
Net Income | $ | 19,469 | 2.1 | % | $ | 24,033 | 2.8 | % | |||||
Earnings Per Share of Common Stock: | |||||||||||||
Basic | $ | 0.77 | $ | 0.92 | |||||||||
Diluted | $ | 0.76 | $ | 0.92 | |||||||||
Average Number of Shares Outstanding: | |||||||||||||
Basic | 25,308 | 25,993 | |||||||||||
Diluted | 25,466 | 26,181 |
Condensed Consolidated Statements of Cash Flows | Nine Months Ended | ||||||
(Unaudited) | March 31, | ||||||
(Amounts in Thousands) | 2020 | 2019 | |||||
Net Cash Flow provided by (used for) Operating Activities | $ | 51,318 | $ | (18,980 | ) | ||
Net Cash Flow used for Investing Activities | (27,602 | ) | (59,464 | ) | |||
Net Cash Flow (used for) provided by Financing Activities | (13,489 | ) | 80,315 | ||||
Effect of Exchange Rate Change on Cash and Cash Equivalents | (1,191 | ) | (1,149 | ) | |||
Net Increase in Cash and Cash Equivalents | 9,036 | 722 | |||||
Cash and Cash Equivalents at Beginning of Period | 49,276 | 46,428 | |||||
Cash and Cash Equivalents at End of Period | $ | 58,312 | $ | 47,150 |
(Unaudited) | |||||||
Condensed Consolidated Balance Sheets | March 31, 2020 | June 30, 2019 | |||||
(Amounts in Thousands) | |||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 58,312 | $ | 49,276 | |||
Receivables, net | 191,343 | 225,555 | |||||
Contract assets | 69,474 | 51,929 | |||||
Inventories | 198,961 | 203,840 | |||||
Prepaid expenses and other current assets | 25,374 | 24,713 | |||||
Property and Equipment, net | 145,958 | 143,629 | |||||
Goodwill | 19,936 | 18,104 | |||||
Other Intangible Assets, net | 20,003 | 22,188 | |||||
Other Assets | 28,889 | 24,877 | |||||
Total Assets | $ | 758,250 | $ | 764,111 | |||
LIABILITIES AND SHARE OWNERS’ EQUITY | |||||||
Current portion of borrowings under credit facilities | $ | 30,901 | $ | 34,713 | |||
Accounts payable | 191,551 | 197,001 | |||||
Accrued expenses | 39,611 | 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 | 19,534 | 18,082 | |||||
Share Owners’ Equity | 375,388 | 369,854 | |||||
Total Liabilities and Share Owners’ Equity | $ | 758,250 | $ | 764,111 |
Reconciliation of Non-GAAP Financial Measures | |||||||||||||||
(Unaudited) | |||||||||||||||
(Amounts in Thousands, except Per Share Data) | |||||||||||||||
Operating Income excluding Lawsuit Proceeds | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Operating Income, as reported | $ | 10,588 | $ | 14,497 | $ | 30,387 | $ | 31,741 | |||||||
Less: Pre-tax Settlement Proceeds from Lawsuit | — | — | — | 92 | |||||||||||
Adjusted Operating Income | $ | 10,588 | $ | 14,497 | $ | 30,387 | $ | 31,649 | |||||||
Net Income excluding Tax Reform and Lawsuit Proceeds | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net Income, as reported | $ | 6,259 | $ | 11,849 | $ | 19,469 | $ | 24,033 | |||||||
Add: Adjustments to Provision for Income Taxes from Tax Reform | — | — | — | (251 | ) | ||||||||||
Less: After-tax Settlement Proceeds from Lawsuit | — | — | — | 70 | |||||||||||
Adjusted Net Income | $ | 6,259 | $ | 11,849 | $ | 19,469 | $ | 23,712 | |||||||
Diluted Earnings per Share excluding Tax Reform and Lawsuit Proceeds | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Diluted Earnings per Share, as reported | $ | 0.25 | $ | 0.46 | $ | 0.76 | $ | 0.92 | |||||||
Add: Adjustments to Provision for Income Taxes from Tax Reform | — | — | — | (0.01 | ) | ||||||||||
Less: Impact of Settlement Proceeds from Lawsuit | — | — | — | 0.01 | |||||||||||
Adjusted Diluted Earnings per Share | $ | 0.25 | $ | 0.46 | $ | 0.76 | $ | 0.90 | |||||||
Return on Invested Capital (ROIC) | |||||||||||||||
Twelve Months Ended | |||||||||||||||
March 31, | |||||||||||||||
2020 | 2019 | ||||||||||||||
Operating Income | $ | 40,706 | $ | 43,007 | |||||||||||
Less: Pre-tax Settlement Proceeds from Lawsuits | $ | 215 | $ | 92 | |||||||||||
Adjusted Operating Income (non-GAAP) | $ | 40,491 | $ | 42,915 | |||||||||||
Tax Effect (1) | $ | 9,195 | $ | 9,718 | |||||||||||
After-tax Adjusted Operating Income | $ | 31,296 | $ | 33,197 | |||||||||||
Average Invested Capital (2) | $ | 438,634 | $ | 366,995 | |||||||||||
ROIC | 7.1 | % | 9.0 | % |
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