Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Kimball Electronics Reports Q1 Results With Strong Start to the Fiscal Year; Company Updates Guidance for Fiscal 2024 By: Kimball Electronics, Inc. via Business Wire November 06, 2023 at 16:15 PM EST Net sales totaled $438.1 million, an 8% increase compared to the first quarter of fiscal 2023; foreign currency had a 1% favorable impact on net sales year-over-year. Operating income of $19.5 million, or 4.4% of net sales, an improvement compared to $13.6 million, or 3.3% of net sales, in the same period last year. Net income of $10.8 million, or $0.43 per diluted share, an improvement compared to $9.5 million, or $0.38 per diluted share, in the first quarter of fiscal 2023. Kimball Electronics, Inc. (Nasdaq: KE) today announced financial results for the first quarter of fiscal 2024. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20231106549123/en/ Three Months Ended September 30, (Amounts in Thousands, except EPS) 2023 2022 Net Sales $ 438,081 $ 405,889 Operating Income $ 19,490 $ 13,571 Operating Income % 4.4 % 3.3 % Net Income $ 10,754 $ 9,509 Diluted EPS $ 0.43 $ 0.38 Richard D. Phillips, Chief Executive Officer, stated, “I am very pleased with our results for the first quarter, particularly in light of the current macro environment. Q1 was a strong start to the fiscal year with record first quarter sales and operating income, year-over-year margin expansion, and 13% growth in net income. While these results were in-line with our expectations, we have been evaluating the impact of recent short-term market disruptions, including the UAW strike, global economic conditions, and geopolitical events, and have updated our guidance for the full year of fiscal 2024 to reflect softening demand in the end market verticals we serve.” Mr. Phillips continued, “Longer-term, we continue to be encouraged by the growth opportunities in these markets, supported by favorable industry megatrends. With a strong funnel of new business, our capital allocation strategy is focused on organic growth, which will likely include additional global expansions in the future, combined with investments in automation and efficiency. We are winning together, the Kimball way, and I am excited about what lies ahead for our Company.” The Company ended the first quarter of fiscal 2024 with cash and cash equivalents of $56.6 million and borrowings outstanding on credit facilities of $296.7 million, including $235.0 million classified as long term, and $90.5 million of borrowing capacity available. Cash flow generated from operating activities in the first quarter of fiscal 2024 was $12.8 million, and capital expenditures were $11.3 million. Net Sales by Vertical Market for Q1 Fiscal 2024: Three Months Ended September 30, (Amounts in Millions) 2023 * 2022 * Percent Change Automotive (1) $ 212.5 49 % $ 188.2 46 % 13 % Medical (1) 102.4 23 % 116.0 29 % (12 )% Industrial (1) 123.2 28 % 101.7 25 % 21 % Total Net Sales $ 438.1 $ 405.9 8 % * As a percent of Total Net Sales (1) Beginning in fiscal year 2024, miscellaneous sales previously reported in Other are now reported in the respective three end market verticals; all prior periods have been recast to conform to current period presentation – Automotive includes electronic power steering, body controls, automated driver assist systems, and electronic braking systems – Medical includes sleep therapy and respiratory care, image guided therapy, in vitro diagnostics, drug delivery, AED, and patient monitoring – Industrial includes climate controls, automation controls, optical inspection, smart metering, and public safety Net sales for fiscal year 2024 are now expected to be flat with the prior year, compared to the previous estimate of a 4% to 7% increase. Operating income is also estimated to be in line with fiscal 2023, compared to the previous guidance range of 4.7% to 5.2% of net sales. The outlook for capital expenditures did not change with a range of $70 to $80 million. Forward-Looking Statements Certain statements contained within this release are considered forward-looking, including our fiscal year 2024 guidance, under the Private Securities Litigation Reform Act of 1995. The statements may be identified by the use of words such as “expect,” “should,” “goal,” “predict,” “will,” “future,” “optimistic,” “confident,” and “believe.” Undue reliance should not be placed on these forward-looking statements. These statements are based on current expectations of future events and thus are inherently subject to uncertainty. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from our expectations and projections. These forward-looking statements are subject to risks and uncertainties including, without limitation, global economic conditions, geopolitical environment and conflicts such as the war in Ukraine, global health emergencies, availability or cost of raw materials and components, foreign exchange rate fluctuations, and our ability to convert new business opportunities into customers and revenue. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of the company are contained in its Annual Report on Form 10-K for the year ended June 30, 2023. Non-GAAP Financial Measures This press release contains non-GAAP financial measures. The non-GAAP financial measures contained herein include constant currency growth, adjusted operating income, adjusted net income, adjusted diluted EPS, and ROIC. Reconciliations of the reported GAAP numbers to these non-GAAP financial measures are included in the Reconciliation of Non-GAAP Financial Measures section below. Management believes these measures are useful and allow investors to meaningfully trend, analyze, and benchmark the performance of the company’s core operations. The company’s non-GAAP financial measures are not necessarily comparable to non-GAAP information used by other companies. About Kimball Electronics, Inc. Kimball Electronics is a multifaceted manufacturing solutions provider of electronics and diversified contract manufacturing services to customers around the world. From our operations in the United States, China, India, Japan, Mexico, Poland, Romania, Thailand, and Vietnam, our teams are proud to provide manufacturing services for a variety of industries. Recognized for a reputation of excellence, we are committed to a high-performance culture that values personal and organizational commitment to quality, reliability, value, speed, and ethical behavior. Kimball Electronics, Inc. (Nasdaq: KE) is headquartered in Jasper, Indiana. To learn more about Kimball Electronics, visit: www.kimballelectronics.com. Conference Call / Webcast Date: November 7, 2023 Time: 10:00 AM Eastern Time Live Webcast: investors.kimballelectronics.com/events-and-presentations/events Dial-In #: 404-975-4839 (other locations - 833-470-1428) Conference ID: 408670 For those unable to participate in the live webcast, the call will be archived at investors.kimballelectronics.com. Lasting relationships. Global success. Financial highlights for the first quarter ended September 30, 2023 are as follows: Condensed Consolidated Statements of Income (Unaudited) Three Months Ended (Amounts in Thousands, except Per Share Data) September 30, 2023 September 30, 2022 Net Sales $ 438,081 100.0 % $ 405,889 100.0 % Cost of Sales 402,539 91.9 % 376,568 92.8 % Gross Profit 35,542 8.1 % 29,321 7.2 % Selling and Administrative Expenses 16,052 3.7 % 15,750 3.9 % Operating Income 19,490 4.4 % 13,571 3.3 % Interest Income 299 0.1 % 17 — % Interest Expense (5,447 ) (1.2 )% (1,920 ) (0.5 )% Non-Operating Income (Expense), net (1,131 ) (0.3 )% 500 0.2 % Other Income (Expense), net (6,279 ) (1.4 )% (1,403 ) (0.3 )% Income Before Taxes on Income 13,211 3.0 % 12,168 3.0 % Provision for Income Taxes 2,457 0.5 % 2,659 0.7 % Net Income $ 10,754 2.5 % $ 9,509 2.3 % Earnings Per Share of Common Stock: Basic $ 0.43 $ 0.38 Diluted $ 0.43 $ 0.38 Average Number of Shares Outstanding: Basic 25,041 24,826 Diluted 25,238 24,955 Condensed Consolidated Statements of Cash Flows Three Months Ended (Unaudited) September 30, (Amounts in Thousands) 2023 2022 Net Cash Flow provided by (used for) Operating Activities $ 12,801 $ (60,194 ) Net Cash Flow used for Investing Activities (11,302 ) (19,320 ) Net Cash Flow provided by Financing Activities 13,985 50,769 Effect of Exchange Rate Change on Cash, Cash Equivalents, and Restricted Cash (549 ) (1,391 ) Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash 14,935 (30,136 ) Cash, Cash Equivalents, and Restricted Cash at Beginning of Period 43,864 49,851 Cash, Cash Equivalents, and Restricted Cash at End of Period $ 58,799 $ 19,715 (Unaudited) Condensed Consolidated Balance Sheets September 30, 2023 June 30, 2023 (Amounts in Thousands) ASSETS Cash and cash equivalents $ 56,581 $ 42,955 Receivables, net 259,419 308,167 Contract assets 87,675 78,798 Inventories 482,229 450,319 Prepaid expenses and other current assets 45,141 49,188 Property and Equipment, net 268,645 267,684 Goodwill 12,011 12,011 Other Intangible Assets, net 11,603 12,335 Other Assets 39,862 38,262 Total Assets $ 1,263,166 $ 1,259,719 LIABILITIES AND SHARE OWNERS’ EQUITY Current portion of borrowings under credit facilities $ 61,680 $ 46,454 Accounts payable 308,912 322,274 Advances from customers 41,467 33,905 Accrued expenses 66,272 72,515 Long-term debt under credit facilities, less current portion 235,000 235,000 Long-term income taxes payable 3,255 5,859 Other long-term liabilities 18,318 19,718 Share Owners’ Equity 528,262 523,994 Total Liabilities and Share Owners’ Equity $ 1,263,166 $ 1,259,719 Reconciliation of Non-GAAP Financial Measures (Unaudited) (Amounts in Thousands, except Per Share Data) Three Months Ended September 30, 2023 2022 Net Sales Growth (vs. same period in prior year) 8 % 39 % Foreign Currency Exchange Impact 1 % (5 )% Constant Currency Growth 7 % 44 % Operating Income, as reported $ 19,490 $ 13,571 SERP (177 ) (235 ) Adjusted Operating Income $ 19,313 $ 13,336 Twelve Months Ended September 30, 2023 2022 Operating Income $ 93,648 $ 61,340 SERP 759 (1,711 ) Legal Recovery (212 ) — Adjusted Operating Income (non-GAAP) $ 94,195 $ 59,629 Tax Effect 22,913 16,356 After-tax Adjusted Operating Income $ 71,282 $ 43,273 Average Invested Capital (1) $ 738,096 $ 544,711 ROIC 9.7 % 7.9 % (1) Average invested capital is computed using Share Owners’ equity plus current and non-current debt less cash and cash equivalents averaged for the last five quarters. View source version on businesswire.com: https://www.businesswire.com/news/home/20231106549123/en/ Kimball Electronics reports Q1 results with strong start to the fiscal year Contacts Andrew D. Regrut Vice President, Investor Relations 812.827.4151 Investor.Relations@kimballelectronics.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Kimball Electronics Reports Q1 Results With Strong Start to the Fiscal Year; Company Updates Guidance for Fiscal 2024 By: Kimball Electronics, Inc. via Business Wire November 06, 2023 at 16:15 PM EST Net sales totaled $438.1 million, an 8% increase compared to the first quarter of fiscal 2023; foreign currency had a 1% favorable impact on net sales year-over-year. Operating income of $19.5 million, or 4.4% of net sales, an improvement compared to $13.6 million, or 3.3% of net sales, in the same period last year. Net income of $10.8 million, or $0.43 per diluted share, an improvement compared to $9.5 million, or $0.38 per diluted share, in the first quarter of fiscal 2023. Kimball Electronics, Inc. (Nasdaq: KE) today announced financial results for the first quarter of fiscal 2024. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20231106549123/en/ Three Months Ended September 30, (Amounts in Thousands, except EPS) 2023 2022 Net Sales $ 438,081 $ 405,889 Operating Income $ 19,490 $ 13,571 Operating Income % 4.4 % 3.3 % Net Income $ 10,754 $ 9,509 Diluted EPS $ 0.43 $ 0.38 Richard D. Phillips, Chief Executive Officer, stated, “I am very pleased with our results for the first quarter, particularly in light of the current macro environment. Q1 was a strong start to the fiscal year with record first quarter sales and operating income, year-over-year margin expansion, and 13% growth in net income. While these results were in-line with our expectations, we have been evaluating the impact of recent short-term market disruptions, including the UAW strike, global economic conditions, and geopolitical events, and have updated our guidance for the full year of fiscal 2024 to reflect softening demand in the end market verticals we serve.” Mr. Phillips continued, “Longer-term, we continue to be encouraged by the growth opportunities in these markets, supported by favorable industry megatrends. With a strong funnel of new business, our capital allocation strategy is focused on organic growth, which will likely include additional global expansions in the future, combined with investments in automation and efficiency. We are winning together, the Kimball way, and I am excited about what lies ahead for our Company.” The Company ended the first quarter of fiscal 2024 with cash and cash equivalents of $56.6 million and borrowings outstanding on credit facilities of $296.7 million, including $235.0 million classified as long term, and $90.5 million of borrowing capacity available. Cash flow generated from operating activities in the first quarter of fiscal 2024 was $12.8 million, and capital expenditures were $11.3 million. Net Sales by Vertical Market for Q1 Fiscal 2024: Three Months Ended September 30, (Amounts in Millions) 2023 * 2022 * Percent Change Automotive (1) $ 212.5 49 % $ 188.2 46 % 13 % Medical (1) 102.4 23 % 116.0 29 % (12 )% Industrial (1) 123.2 28 % 101.7 25 % 21 % Total Net Sales $ 438.1 $ 405.9 8 % * As a percent of Total Net Sales (1) Beginning in fiscal year 2024, miscellaneous sales previously reported in Other are now reported in the respective three end market verticals; all prior periods have been recast to conform to current period presentation – Automotive includes electronic power steering, body controls, automated driver assist systems, and electronic braking systems – Medical includes sleep therapy and respiratory care, image guided therapy, in vitro diagnostics, drug delivery, AED, and patient monitoring – Industrial includes climate controls, automation controls, optical inspection, smart metering, and public safety Net sales for fiscal year 2024 are now expected to be flat with the prior year, compared to the previous estimate of a 4% to 7% increase. Operating income is also estimated to be in line with fiscal 2023, compared to the previous guidance range of 4.7% to 5.2% of net sales. The outlook for capital expenditures did not change with a range of $70 to $80 million. Forward-Looking Statements Certain statements contained within this release are considered forward-looking, including our fiscal year 2024 guidance, under the Private Securities Litigation Reform Act of 1995. The statements may be identified by the use of words such as “expect,” “should,” “goal,” “predict,” “will,” “future,” “optimistic,” “confident,” and “believe.” Undue reliance should not be placed on these forward-looking statements. These statements are based on current expectations of future events and thus are inherently subject to uncertainty. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from our expectations and projections. These forward-looking statements are subject to risks and uncertainties including, without limitation, global economic conditions, geopolitical environment and conflicts such as the war in Ukraine, global health emergencies, availability or cost of raw materials and components, foreign exchange rate fluctuations, and our ability to convert new business opportunities into customers and revenue. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of the company are contained in its Annual Report on Form 10-K for the year ended June 30, 2023. Non-GAAP Financial Measures This press release contains non-GAAP financial measures. The non-GAAP financial measures contained herein include constant currency growth, adjusted operating income, adjusted net income, adjusted diluted EPS, and ROIC. Reconciliations of the reported GAAP numbers to these non-GAAP financial measures are included in the Reconciliation of Non-GAAP Financial Measures section below. Management believes these measures are useful and allow investors to meaningfully trend, analyze, and benchmark the performance of the company’s core operations. The company’s non-GAAP financial measures are not necessarily comparable to non-GAAP information used by other companies. About Kimball Electronics, Inc. Kimball Electronics is a multifaceted manufacturing solutions provider of electronics and diversified contract manufacturing services to customers around the world. From our operations in the United States, China, India, Japan, Mexico, Poland, Romania, Thailand, and Vietnam, our teams are proud to provide manufacturing services for a variety of industries. Recognized for a reputation of excellence, we are committed to a high-performance culture that values personal and organizational commitment to quality, reliability, value, speed, and ethical behavior. Kimball Electronics, Inc. (Nasdaq: KE) is headquartered in Jasper, Indiana. To learn more about Kimball Electronics, visit: www.kimballelectronics.com. Conference Call / Webcast Date: November 7, 2023 Time: 10:00 AM Eastern Time Live Webcast: investors.kimballelectronics.com/events-and-presentations/events Dial-In #: 404-975-4839 (other locations - 833-470-1428) Conference ID: 408670 For those unable to participate in the live webcast, the call will be archived at investors.kimballelectronics.com. Lasting relationships. Global success. Financial highlights for the first quarter ended September 30, 2023 are as follows: Condensed Consolidated Statements of Income (Unaudited) Three Months Ended (Amounts in Thousands, except Per Share Data) September 30, 2023 September 30, 2022 Net Sales $ 438,081 100.0 % $ 405,889 100.0 % Cost of Sales 402,539 91.9 % 376,568 92.8 % Gross Profit 35,542 8.1 % 29,321 7.2 % Selling and Administrative Expenses 16,052 3.7 % 15,750 3.9 % Operating Income 19,490 4.4 % 13,571 3.3 % Interest Income 299 0.1 % 17 — % Interest Expense (5,447 ) (1.2 )% (1,920 ) (0.5 )% Non-Operating Income (Expense), net (1,131 ) (0.3 )% 500 0.2 % Other Income (Expense), net (6,279 ) (1.4 )% (1,403 ) (0.3 )% Income Before Taxes on Income 13,211 3.0 % 12,168 3.0 % Provision for Income Taxes 2,457 0.5 % 2,659 0.7 % Net Income $ 10,754 2.5 % $ 9,509 2.3 % Earnings Per Share of Common Stock: Basic $ 0.43 $ 0.38 Diluted $ 0.43 $ 0.38 Average Number of Shares Outstanding: Basic 25,041 24,826 Diluted 25,238 24,955 Condensed Consolidated Statements of Cash Flows Three Months Ended (Unaudited) September 30, (Amounts in Thousands) 2023 2022 Net Cash Flow provided by (used for) Operating Activities $ 12,801 $ (60,194 ) Net Cash Flow used for Investing Activities (11,302 ) (19,320 ) Net Cash Flow provided by Financing Activities 13,985 50,769 Effect of Exchange Rate Change on Cash, Cash Equivalents, and Restricted Cash (549 ) (1,391 ) Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash 14,935 (30,136 ) Cash, Cash Equivalents, and Restricted Cash at Beginning of Period 43,864 49,851 Cash, Cash Equivalents, and Restricted Cash at End of Period $ 58,799 $ 19,715 (Unaudited) Condensed Consolidated Balance Sheets September 30, 2023 June 30, 2023 (Amounts in Thousands) ASSETS Cash and cash equivalents $ 56,581 $ 42,955 Receivables, net 259,419 308,167 Contract assets 87,675 78,798 Inventories 482,229 450,319 Prepaid expenses and other current assets 45,141 49,188 Property and Equipment, net 268,645 267,684 Goodwill 12,011 12,011 Other Intangible Assets, net 11,603 12,335 Other Assets 39,862 38,262 Total Assets $ 1,263,166 $ 1,259,719 LIABILITIES AND SHARE OWNERS’ EQUITY Current portion of borrowings under credit facilities $ 61,680 $ 46,454 Accounts payable 308,912 322,274 Advances from customers 41,467 33,905 Accrued expenses 66,272 72,515 Long-term debt under credit facilities, less current portion 235,000 235,000 Long-term income taxes payable 3,255 5,859 Other long-term liabilities 18,318 19,718 Share Owners’ Equity 528,262 523,994 Total Liabilities and Share Owners’ Equity $ 1,263,166 $ 1,259,719 Reconciliation of Non-GAAP Financial Measures (Unaudited) (Amounts in Thousands, except Per Share Data) Three Months Ended September 30, 2023 2022 Net Sales Growth (vs. same period in prior year) 8 % 39 % Foreign Currency Exchange Impact 1 % (5 )% Constant Currency Growth 7 % 44 % Operating Income, as reported $ 19,490 $ 13,571 SERP (177 ) (235 ) Adjusted Operating Income $ 19,313 $ 13,336 Twelve Months Ended September 30, 2023 2022 Operating Income $ 93,648 $ 61,340 SERP 759 (1,711 ) Legal Recovery (212 ) — Adjusted Operating Income (non-GAAP) $ 94,195 $ 59,629 Tax Effect 22,913 16,356 After-tax Adjusted Operating Income $ 71,282 $ 43,273 Average Invested Capital (1) $ 738,096 $ 544,711 ROIC 9.7 % 7.9 % (1) Average invested capital is computed using Share Owners’ equity plus current and non-current debt less cash and cash equivalents averaged for the last five quarters. View source version on businesswire.com: https://www.businesswire.com/news/home/20231106549123/en/ Kimball Electronics reports Q1 results with strong start to the fiscal year Contacts Andrew D. Regrut Vice President, Investor Relations 812.827.4151 Investor.Relations@kimballelectronics.com
Net sales totaled $438.1 million, an 8% increase compared to the first quarter of fiscal 2023; foreign currency had a 1% favorable impact on net sales year-over-year. Operating income of $19.5 million, or 4.4% of net sales, an improvement compared to $13.6 million, or 3.3% of net sales, in the same period last year. Net income of $10.8 million, or $0.43 per diluted share, an improvement compared to $9.5 million, or $0.38 per diluted share, in the first quarter of fiscal 2023.
Kimball Electronics, Inc. (Nasdaq: KE) today announced financial results for the first quarter of fiscal 2024. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20231106549123/en/ Three Months Ended September 30, (Amounts in Thousands, except EPS) 2023 2022 Net Sales $ 438,081 $ 405,889 Operating Income $ 19,490 $ 13,571 Operating Income % 4.4 % 3.3 % Net Income $ 10,754 $ 9,509 Diluted EPS $ 0.43 $ 0.38 Richard D. Phillips, Chief Executive Officer, stated, “I am very pleased with our results for the first quarter, particularly in light of the current macro environment. Q1 was a strong start to the fiscal year with record first quarter sales and operating income, year-over-year margin expansion, and 13% growth in net income. While these results were in-line with our expectations, we have been evaluating the impact of recent short-term market disruptions, including the UAW strike, global economic conditions, and geopolitical events, and have updated our guidance for the full year of fiscal 2024 to reflect softening demand in the end market verticals we serve.” Mr. Phillips continued, “Longer-term, we continue to be encouraged by the growth opportunities in these markets, supported by favorable industry megatrends. With a strong funnel of new business, our capital allocation strategy is focused on organic growth, which will likely include additional global expansions in the future, combined with investments in automation and efficiency. We are winning together, the Kimball way, and I am excited about what lies ahead for our Company.” The Company ended the first quarter of fiscal 2024 with cash and cash equivalents of $56.6 million and borrowings outstanding on credit facilities of $296.7 million, including $235.0 million classified as long term, and $90.5 million of borrowing capacity available. Cash flow generated from operating activities in the first quarter of fiscal 2024 was $12.8 million, and capital expenditures were $11.3 million. Net Sales by Vertical Market for Q1 Fiscal 2024: Three Months Ended September 30, (Amounts in Millions) 2023 * 2022 * Percent Change Automotive (1) $ 212.5 49 % $ 188.2 46 % 13 % Medical (1) 102.4 23 % 116.0 29 % (12 )% Industrial (1) 123.2 28 % 101.7 25 % 21 % Total Net Sales $ 438.1 $ 405.9 8 % * As a percent of Total Net Sales (1) Beginning in fiscal year 2024, miscellaneous sales previously reported in Other are now reported in the respective three end market verticals; all prior periods have been recast to conform to current period presentation – Automotive includes electronic power steering, body controls, automated driver assist systems, and electronic braking systems – Medical includes sleep therapy and respiratory care, image guided therapy, in vitro diagnostics, drug delivery, AED, and patient monitoring – Industrial includes climate controls, automation controls, optical inspection, smart metering, and public safety Net sales for fiscal year 2024 are now expected to be flat with the prior year, compared to the previous estimate of a 4% to 7% increase. Operating income is also estimated to be in line with fiscal 2023, compared to the previous guidance range of 4.7% to 5.2% of net sales. The outlook for capital expenditures did not change with a range of $70 to $80 million. Forward-Looking Statements Certain statements contained within this release are considered forward-looking, including our fiscal year 2024 guidance, under the Private Securities Litigation Reform Act of 1995. The statements may be identified by the use of words such as “expect,” “should,” “goal,” “predict,” “will,” “future,” “optimistic,” “confident,” and “believe.” Undue reliance should not be placed on these forward-looking statements. These statements are based on current expectations of future events and thus are inherently subject to uncertainty. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from our expectations and projections. These forward-looking statements are subject to risks and uncertainties including, without limitation, global economic conditions, geopolitical environment and conflicts such as the war in Ukraine, global health emergencies, availability or cost of raw materials and components, foreign exchange rate fluctuations, and our ability to convert new business opportunities into customers and revenue. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of the company are contained in its Annual Report on Form 10-K for the year ended June 30, 2023. Non-GAAP Financial Measures This press release contains non-GAAP financial measures. The non-GAAP financial measures contained herein include constant currency growth, adjusted operating income, adjusted net income, adjusted diluted EPS, and ROIC. Reconciliations of the reported GAAP numbers to these non-GAAP financial measures are included in the Reconciliation of Non-GAAP Financial Measures section below. Management believes these measures are useful and allow investors to meaningfully trend, analyze, and benchmark the performance of the company’s core operations. The company’s non-GAAP financial measures are not necessarily comparable to non-GAAP information used by other companies. About Kimball Electronics, Inc. Kimball Electronics is a multifaceted manufacturing solutions provider of electronics and diversified contract manufacturing services to customers around the world. From our operations in the United States, China, India, Japan, Mexico, Poland, Romania, Thailand, and Vietnam, our teams are proud to provide manufacturing services for a variety of industries. Recognized for a reputation of excellence, we are committed to a high-performance culture that values personal and organizational commitment to quality, reliability, value, speed, and ethical behavior. Kimball Electronics, Inc. (Nasdaq: KE) is headquartered in Jasper, Indiana. To learn more about Kimball Electronics, visit: www.kimballelectronics.com. Conference Call / Webcast Date: November 7, 2023 Time: 10:00 AM Eastern Time Live Webcast: investors.kimballelectronics.com/events-and-presentations/events Dial-In #: 404-975-4839 (other locations - 833-470-1428) Conference ID: 408670 For those unable to participate in the live webcast, the call will be archived at investors.kimballelectronics.com. Lasting relationships. Global success. Financial highlights for the first quarter ended September 30, 2023 are as follows: Condensed Consolidated Statements of Income (Unaudited) Three Months Ended (Amounts in Thousands, except Per Share Data) September 30, 2023 September 30, 2022 Net Sales $ 438,081 100.0 % $ 405,889 100.0 % Cost of Sales 402,539 91.9 % 376,568 92.8 % Gross Profit 35,542 8.1 % 29,321 7.2 % Selling and Administrative Expenses 16,052 3.7 % 15,750 3.9 % Operating Income 19,490 4.4 % 13,571 3.3 % Interest Income 299 0.1 % 17 — % Interest Expense (5,447 ) (1.2 )% (1,920 ) (0.5 )% Non-Operating Income (Expense), net (1,131 ) (0.3 )% 500 0.2 % Other Income (Expense), net (6,279 ) (1.4 )% (1,403 ) (0.3 )% Income Before Taxes on Income 13,211 3.0 % 12,168 3.0 % Provision for Income Taxes 2,457 0.5 % 2,659 0.7 % Net Income $ 10,754 2.5 % $ 9,509 2.3 % Earnings Per Share of Common Stock: Basic $ 0.43 $ 0.38 Diluted $ 0.43 $ 0.38 Average Number of Shares Outstanding: Basic 25,041 24,826 Diluted 25,238 24,955 Condensed Consolidated Statements of Cash Flows Three Months Ended (Unaudited) September 30, (Amounts in Thousands) 2023 2022 Net Cash Flow provided by (used for) Operating Activities $ 12,801 $ (60,194 ) Net Cash Flow used for Investing Activities (11,302 ) (19,320 ) Net Cash Flow provided by Financing Activities 13,985 50,769 Effect of Exchange Rate Change on Cash, Cash Equivalents, and Restricted Cash (549 ) (1,391 ) Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash 14,935 (30,136 ) Cash, Cash Equivalents, and Restricted Cash at Beginning of Period 43,864 49,851 Cash, Cash Equivalents, and Restricted Cash at End of Period $ 58,799 $ 19,715 (Unaudited) Condensed Consolidated Balance Sheets September 30, 2023 June 30, 2023 (Amounts in Thousands) ASSETS Cash and cash equivalents $ 56,581 $ 42,955 Receivables, net 259,419 308,167 Contract assets 87,675 78,798 Inventories 482,229 450,319 Prepaid expenses and other current assets 45,141 49,188 Property and Equipment, net 268,645 267,684 Goodwill 12,011 12,011 Other Intangible Assets, net 11,603 12,335 Other Assets 39,862 38,262 Total Assets $ 1,263,166 $ 1,259,719 LIABILITIES AND SHARE OWNERS’ EQUITY Current portion of borrowings under credit facilities $ 61,680 $ 46,454 Accounts payable 308,912 322,274 Advances from customers 41,467 33,905 Accrued expenses 66,272 72,515 Long-term debt under credit facilities, less current portion 235,000 235,000 Long-term income taxes payable 3,255 5,859 Other long-term liabilities 18,318 19,718 Share Owners’ Equity 528,262 523,994 Total Liabilities and Share Owners’ Equity $ 1,263,166 $ 1,259,719 Reconciliation of Non-GAAP Financial Measures (Unaudited) (Amounts in Thousands, except Per Share Data) Three Months Ended September 30, 2023 2022 Net Sales Growth (vs. same period in prior year) 8 % 39 % Foreign Currency Exchange Impact 1 % (5 )% Constant Currency Growth 7 % 44 % Operating Income, as reported $ 19,490 $ 13,571 SERP (177 ) (235 ) Adjusted Operating Income $ 19,313 $ 13,336 Twelve Months Ended September 30, 2023 2022 Operating Income $ 93,648 $ 61,340 SERP 759 (1,711 ) Legal Recovery (212 ) — Adjusted Operating Income (non-GAAP) $ 94,195 $ 59,629 Tax Effect 22,913 16,356 After-tax Adjusted Operating Income $ 71,282 $ 43,273 Average Invested Capital (1) $ 738,096 $ 544,711 ROIC 9.7 % 7.9 % (1) Average invested capital is computed using Share Owners’ equity plus current and non-current debt less cash and cash equivalents averaged for the last five quarters. 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Andrew D. Regrut Vice President, Investor Relations 812.827.4151 Investor.Relations@kimballelectronics.com