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 Q3 Results; Company Announces Renewed Strategic Focus, Including Expected Divestiture of the Automation, Test & Measurement Business By: Kimball Electronics, Inc. via Business Wire May 07, 2024 at 16:25 PM EDT Kimball Electronics, Inc. (Nasdaq: KE) today announced financial results for the third quarter of fiscal 2024 with net sales totaling $425.0 million and a net loss of $6.1 million, or $0.24 per share. This result includes the impairment of the Automation, Test & Measurement business, which the Company expects to divest, along with restructuring expense, partially offset by the recovery of a legal settlement. A detailed reconciliation is provided later in this release. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240507684308/en/ Excluding these items, adjusted net income in the third quarter of fiscal 2024 totaled $8.4 million, or $0.34 per diluted share, and adjusted operating income equaled $17.0 million, or 4.0% of net sales. Cash flow from operating activities in the quarter was $42.6 million driven by inventory reductions. Company sharpens strategic focus on EMS operations and aligns cost structure to short-term demand trends. Guidance for adjusted operating income in fiscal 2024 reiterated, while the estimate for net sales was updated, in response to the challenging operating environment, and capital expenditures strategically reduced. Resumption of share repurchases approved by the Board of Directors. Three Months Ended Nine Months Ended March 31, March 31, (Amounts in Thousands, except EPS) 2024 2023 2024 2023 Net Sales $ 425,036 $ 484,703 $ 1,284,352 $ 1,327,288 Operating Income $ (6,431 ) $ 25,220 $ 29,669 $ 56,280 Adjusted Operating Income (non-GAAP) (1) $ 16,960 $ 25,573 $ 53,367 $ 56,738 Operating Income % (1.5 )% 5.2 % 2.3 % 4.2 % Adjusted Operating Income (non-GAAP) % 4.0 % 5.3 % 4.2 % 4.3 % Net Income (Loss) $ (6,076 ) $ 16,400 $ 12,968 $ 36,629 Adjusted Net Income (non-GAAP) (1) $ 8,441 $ 16,400 $ 27,485 $ 36,908 Diluted EPS $ (0.24 ) $ 0.65 $ 0.51 $ 1.46 Adjusted Diluted EPS (non-GAAP) (1) $ 0.34 $ 0.65 $ 1.09 $ 1.47 (1) A reconciliation of GAAP and non-GAAP financial measures is included below. Commenting on today’s announcement, Richard D. Phillips, Chief Executive Officer, stated, “As we anticipated, the operating environment has remained challenged for the EMS industry, and our sales in the third quarter declined as expected. During this period of end market softness, we have focused on ‘controlling what we can control,’ proactively aligning our cost structure with short-term demand trends, maintaining competitiveness with stable operating margins, and focusing on working capital improvements.” Mr. Phillips continued, “We’re taking meaningful steps to sharpen our strategic focus and further position the Company for profitable growth, and stronger performance moving forward. With the expected divestiture of the Automation, Test & Measurement business, our team can increase focus and support on our core EMS operations. While we suspect the macro headwinds will persist in fiscal 2025, we’re continuing to make investments in long-term growth opportunities supported by a robust funnel for new business in the next 18-24 months, while deploying a capital allocation strategy that balances growth, lasting customer relationships, and returning cash to Share Owners with opportunistic share repurchases.” The Company ended the third quarter of fiscal 2024 with cash and cash equivalents of $65.2 million and borrowings outstanding on credit facilities of $319.6 million, including $235.0 million classified as long term, and $117.4 million of borrowing capacity available. Capital expenditures were $13.4 million in Q3. Net Sales by Vertical Market for Q3 Fiscal 2024: Three Months Ended Nine Months Ended March 31, March 31, (Amounts in Millions) 2024 * 2023 * Percent Change 2024 * 2023 * Percent Change Automotive (1) $ 202.0 47 % $ 221.9 46 % (9 )% $ 614.7 48 % $ 615.3 46 % — % Medical (1) 113.0 27 % 135.5 28 % (17 )% 323.5 25 % 377.1 29 % (14 )% Industrial (1) 110.0 26 % 127.3 26 % (14 )% 346.2 27 % 334.9 25 % 3 % Total Net Sales $ 425.0 $ 484.7 (12 )% $ 1,284.4 $ 1,327.3 (3 )% * 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, and public safety Guidance for Fiscal Year 2024 The Company reiterated its guidance for adjusted operating income in fiscal year 2024 of 4.2% to 4.6% of net sales. In response to the current economic environment, net sales are now expected to decline 4% to 6%, compared to the previous estimate of a 2% to 4% decrease. Capital expenditures are estimated to be in the range of $55 to $60 million, compared to the previous guidance 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: May 8, 2024 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: 889032 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 third quarter and year-to-date period ended March 31, 2024 are as follows: Condensed Consolidated Statements of Income (Unaudited) Three Months Ended (Amounts in Thousands, except Per Share Data) March 31, 2024 March 31, 2023 Net Sales $ 425,036 100.0 % $ 484,703 100.0 % Cost of Sales 391,492 92.1 % 441,731 91.1 % Gross Profit 33,544 7.9 % 42,972 8.9 % Selling and Administrative Expenses 16,861 3.9 % 17,752 3.7 % Other General Expense (Income) (892 ) (0.2 )% — — % Restructuring Expense 1,622 0.4 % — — % Goodwill Impairment 5,820 1.4 % — — % Asset Impairment 16,564 3.9 % — — % Operating Income (Loss) (6,431 ) (1.5 )% 25,220 5.2 % Interest Income 83 — % 45 — % Interest Expense (5,875 ) (1.4 )% (4,822 ) (1.0 )% Non-Operating Income (Expense), net (530 ) (0.1 )% 1,433 0.3 % Other Income (Expense), net (6,322 ) (1.5 )% (3,344 ) (0.7 )% Income Before Taxes on Income (12,753 ) (3.0 )% 21,876 4.5 % Provision for Income Taxes (6,677 ) (1.6 )% 5,476 1.1 % Net Income (Loss) $ (6,076 ) (1.4 )% $ 16,400 3.4 % Earnings Per Share of Common Stock: Basic $ (0.24 ) $ 0.66 Diluted $ (0.24 ) $ 0.65 Average Number of Shares Outstanding: Basic 25,118 24,898 Diluted 25,118 25,067 (Unaudited) Nine Months Ended (Amounts in Thousands, except Per Share Data) March 31, 2024 March 31, 2023 Net Sales $ 1,284,352 100.0 % $ 1,327,288 100.0 % Cost of Sales 1,180,833 91.9 % 1,220,804 92.0 % Gross Profit 103,519 8.1 % 106,484 8.0 % Selling and Administrative Expenses 50,736 4.0 % 50,204 3.8 % Other General Expense (Income) (892 ) (0.1 )% — — % Restructuring Expense 1,622 0.1 % — — % Goodwill Impairment 5,820 0.5 % — — % Asset Impairment 16,564 1.3 % — — % Operating Income 29,669 2.3 % 56,280 4.2 % Interest Income 483 — % 88 — % Interest Expense (17,459 ) (1.4 )% (10,790 ) (0.8 )% Non-Operating Income (Expense), net (959 ) — % 2,659 0.2 % Other Income (Expense), net (17,935 ) (1.4 )% (8,043 ) (0.6 )% Income Before Taxes on Income 11,734 0.9 % 48,237 3.6 % Provision for Income Taxes (1,234 ) (0.1 )% 11,608 0.8 % Net Income $ 12,968 1.0 % $ 36,629 2.8 % Earnings Per Share of Common Stock: Basic $ 0.52 $ 1.47 Diluted $ 0.51 $ 1.46 Average Number of Shares Outstanding: Basic 25,084 24,868 Diluted 25,263 25,031 Condensed Consolidated Statements of Cash Flows Nine Months Ended (Unaudited) March 31, (Amounts in Thousands) 2024 2023 Net Cash Flow provided by (used for) Operating Activities $ 24,717 $ (57,885 ) Net Cash Flow used for Investing Activities (37,702 ) (66,497 ) Net Cash Flow provided by Financing Activities 36,571 107,148 Effect of Exchange Rate Change on Cash, Cash Equivalents, and Restricted Cash (113 ) (294 ) Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash 23,473 (17,528 ) Cash, Cash Equivalents, and Restricted Cash at Beginning of Period 43,864 49,851 Cash, Cash Equivalents, and Restricted Cash at End of Period $ 67,337 $ 32,323 (Unaudited) Condensed Consolidated Balance Sheets March 31, 2024 June 30, 2023 (Amounts in Thousands) ASSETS Cash and cash equivalents $ 65,208 $ 42,955 Receivables, net 277,894 308,167 Contract assets 76,073 78,798 Inventories 396,199 450,319 Prepaid expenses and other current assets 43,018 49,188 Assets held for sale 29,619 — Property and Equipment, net 273,823 267,684 Goodwill 6,191 12,011 Other Intangible Assets, net 3,197 12,335 Other Assets 89,606 38,262 Total Assets $ 1,260,828 $ 1,259,719 LIABILITIES AND SHARE OWNERS’ EQUITY Current portion of borrowings under credit facilities $ 84,618 $ 46,454 Accounts payable 248,174 322,274 Advances from customers 36,099 33,905 Accrued expenses 59,621 72,515 Liabilities held for sale 9,369 — 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 45,631 19,718 Share Owners’ Equity 539,061 523,994 Total Liabilities and Share Owners’ Equity $ 1,260,828 $ 1,259,719 Other Financial Metrics (Unaudited) (Amounts in Millions, except CCD) At or For the Three Months Ended Nine Months Ended March 31, March 31, 2024 2023 2024 2023 Depreciation and Amortization $ 10.5 $ 8.2 $ 28.5 $ 23.8 Stock-Based Compensation $ 1.8 $ 2.0 $ 5.4 $ 5.4 Cash Conversion Days (CCD) (1) 110 92 Open Orders (2) $ 831 $ 882 (1) Cash Conversion Days (“CCD”) are calculated as the sum of Days Sales Outstanding plus Contract Asset Days plus Production Days Supply on Hand less Accounts Payable Days and less Advances from Customers Days. CCD, or a similar metric, is used in our industry and by our management to measure the efficiency of managing working capital. (2) Open Orders are the aggregate sales price of production pursuant to unfulfilled customer orders. Select Financial Results of Automation, Test & Measurement (Unaudited) (Amounts in Millions) Three Months Ended Nine Months Ended March 31, March 31, 2024 2023 2024 2023 Net Sales $ 8.1 $ 16.8 $ 30.9 $ 40.6 Operating Income (Loss) (1) $ (25.4 ) $ 1.6 $ (24.3 ) $ 0.1 (1) Includes goodwill impairment of $5.8 million and asset impairment of $16.6 million for the three and nine months ended March 31, 2024. Also includes allocated corporate overhead expenses. Reconciliation of Non-GAAP Financial Measures (Unaudited) (Amounts in Thousands, except Per Share Data) Three Months Ended Nine Months Ended March 31, March 31, 2024 2023 2024 2023 Net Sales Growth (vs. same period in prior year) (12 )% 32 % (3 )% 36 % Foreign Currency Exchange Impact — % (2 )% — % (4 )% Constant Currency Growth (12 )% 34 % (3 )% 40 % Selling and Administrative Expenses, as reported $ 16,861 $ 17,752 $ 50,736 $ 50,204 SERP (277 ) (353 ) (584 ) (458 ) Adjusted Selling and Administrative Expenses $ 16,584 $ 17,399 $ 50,152 $ 49,746 Operating Income (Loss), as reported $ (6,431 ) $ 25,220 $ 29,669 $ 56,280 SERP 277 353 584 458 Legal Settlements (Recovery) (892 ) — (892 ) — Restructuring Expense 1,622 — 1,622 — Goodwill Impairment 5,820 — 5,820 — Asset Impairment 16,564 — 16,564 — Adjusted Operating Income $ 16,960 $ 25,573 $ 53,367 $ 56,738 Net Income (Loss), as reported $ (6,076 ) $ 16,400 $ 12,968 $ 36,629 Adjustments After Measurement Period on GES Acquisition — — — 279 Legal Settlements (Recovery), After-Tax (676 ) — (676 ) — Restructuring Expense, After-Tax 1,230 — 1,230 — Goodwill Impairment, After-Tax 4,414 — 4,414 — Asset Impairment, After-Tax 9,549 — 9,549 — Adjusted Net Income $ 8,441 $ 16,400 $ 27,485 $ 36,908 Diluted Earnings per Share, as reported $ (0.24 ) $ 0.65 $ 0.51 $ 1.46 Adjustments After Measurement Period on GES Acquisition — — — 0.01 Legal Settlements (Recovery) (0.03 ) — (0.03 ) — Restructuring Expense 0.05 — 0.05 — Goodwill Impairment 0.18 — 0.18 — Asset Impairment 0.38 — 0.38 — Adjusted Diluted Earnings per Share $ 0.34 $ 0.65 $ 1.09 $ 1.47 Twelve Months Ended March 31, 2024 2023 Operating Income $ 61,118 $ 76,858 Goodwill Impairment 5,820 — SERP 827 (701 ) Legal Recovery (1,104 ) — Restructuring Expense 1,622 — Asset Impairment 16,564 — Adjusted Operating Income (non-GAAP) $ 84,847 $ 76,157 Tax Effect 19,947 20,375 After-tax Adjusted Operating Income $ 64,900 $ 55,782 Average Invested Capital (1) $ 783,059 $ 659,911 ROIC 8.3 % 8.5 % (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/20240507684308/en/ Kimball Electronics reports Q3 results; Company announces renewed strategic focus, including expected divestiture of the Automation, Test & Measurement business. 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 Q3 Results; Company Announces Renewed Strategic Focus, Including Expected Divestiture of the Automation, Test & Measurement Business By: Kimball Electronics, Inc. via Business Wire May 07, 2024 at 16:25 PM EDT Kimball Electronics, Inc. (Nasdaq: KE) today announced financial results for the third quarter of fiscal 2024 with net sales totaling $425.0 million and a net loss of $6.1 million, or $0.24 per share. This result includes the impairment of the Automation, Test & Measurement business, which the Company expects to divest, along with restructuring expense, partially offset by the recovery of a legal settlement. A detailed reconciliation is provided later in this release. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240507684308/en/ Excluding these items, adjusted net income in the third quarter of fiscal 2024 totaled $8.4 million, or $0.34 per diluted share, and adjusted operating income equaled $17.0 million, or 4.0% of net sales. Cash flow from operating activities in the quarter was $42.6 million driven by inventory reductions. Company sharpens strategic focus on EMS operations and aligns cost structure to short-term demand trends. Guidance for adjusted operating income in fiscal 2024 reiterated, while the estimate for net sales was updated, in response to the challenging operating environment, and capital expenditures strategically reduced. Resumption of share repurchases approved by the Board of Directors. Three Months Ended Nine Months Ended March 31, March 31, (Amounts in Thousands, except EPS) 2024 2023 2024 2023 Net Sales $ 425,036 $ 484,703 $ 1,284,352 $ 1,327,288 Operating Income $ (6,431 ) $ 25,220 $ 29,669 $ 56,280 Adjusted Operating Income (non-GAAP) (1) $ 16,960 $ 25,573 $ 53,367 $ 56,738 Operating Income % (1.5 )% 5.2 % 2.3 % 4.2 % Adjusted Operating Income (non-GAAP) % 4.0 % 5.3 % 4.2 % 4.3 % Net Income (Loss) $ (6,076 ) $ 16,400 $ 12,968 $ 36,629 Adjusted Net Income (non-GAAP) (1) $ 8,441 $ 16,400 $ 27,485 $ 36,908 Diluted EPS $ (0.24 ) $ 0.65 $ 0.51 $ 1.46 Adjusted Diluted EPS (non-GAAP) (1) $ 0.34 $ 0.65 $ 1.09 $ 1.47 (1) A reconciliation of GAAP and non-GAAP financial measures is included below. Commenting on today’s announcement, Richard D. Phillips, Chief Executive Officer, stated, “As we anticipated, the operating environment has remained challenged for the EMS industry, and our sales in the third quarter declined as expected. During this period of end market softness, we have focused on ‘controlling what we can control,’ proactively aligning our cost structure with short-term demand trends, maintaining competitiveness with stable operating margins, and focusing on working capital improvements.” Mr. Phillips continued, “We’re taking meaningful steps to sharpen our strategic focus and further position the Company for profitable growth, and stronger performance moving forward. With the expected divestiture of the Automation, Test & Measurement business, our team can increase focus and support on our core EMS operations. While we suspect the macro headwinds will persist in fiscal 2025, we’re continuing to make investments in long-term growth opportunities supported by a robust funnel for new business in the next 18-24 months, while deploying a capital allocation strategy that balances growth, lasting customer relationships, and returning cash to Share Owners with opportunistic share repurchases.” The Company ended the third quarter of fiscal 2024 with cash and cash equivalents of $65.2 million and borrowings outstanding on credit facilities of $319.6 million, including $235.0 million classified as long term, and $117.4 million of borrowing capacity available. Capital expenditures were $13.4 million in Q3. Net Sales by Vertical Market for Q3 Fiscal 2024: Three Months Ended Nine Months Ended March 31, March 31, (Amounts in Millions) 2024 * 2023 * Percent Change 2024 * 2023 * Percent Change Automotive (1) $ 202.0 47 % $ 221.9 46 % (9 )% $ 614.7 48 % $ 615.3 46 % — % Medical (1) 113.0 27 % 135.5 28 % (17 )% 323.5 25 % 377.1 29 % (14 )% Industrial (1) 110.0 26 % 127.3 26 % (14 )% 346.2 27 % 334.9 25 % 3 % Total Net Sales $ 425.0 $ 484.7 (12 )% $ 1,284.4 $ 1,327.3 (3 )% * 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, and public safety Guidance for Fiscal Year 2024 The Company reiterated its guidance for adjusted operating income in fiscal year 2024 of 4.2% to 4.6% of net sales. In response to the current economic environment, net sales are now expected to decline 4% to 6%, compared to the previous estimate of a 2% to 4% decrease. Capital expenditures are estimated to be in the range of $55 to $60 million, compared to the previous guidance 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: May 8, 2024 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: 889032 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 third quarter and year-to-date period ended March 31, 2024 are as follows: Condensed Consolidated Statements of Income (Unaudited) Three Months Ended (Amounts in Thousands, except Per Share Data) March 31, 2024 March 31, 2023 Net Sales $ 425,036 100.0 % $ 484,703 100.0 % Cost of Sales 391,492 92.1 % 441,731 91.1 % Gross Profit 33,544 7.9 % 42,972 8.9 % Selling and Administrative Expenses 16,861 3.9 % 17,752 3.7 % Other General Expense (Income) (892 ) (0.2 )% — — % Restructuring Expense 1,622 0.4 % — — % Goodwill Impairment 5,820 1.4 % — — % Asset Impairment 16,564 3.9 % — — % Operating Income (Loss) (6,431 ) (1.5 )% 25,220 5.2 % Interest Income 83 — % 45 — % Interest Expense (5,875 ) (1.4 )% (4,822 ) (1.0 )% Non-Operating Income (Expense), net (530 ) (0.1 )% 1,433 0.3 % Other Income (Expense), net (6,322 ) (1.5 )% (3,344 ) (0.7 )% Income Before Taxes on Income (12,753 ) (3.0 )% 21,876 4.5 % Provision for Income Taxes (6,677 ) (1.6 )% 5,476 1.1 % Net Income (Loss) $ (6,076 ) (1.4 )% $ 16,400 3.4 % Earnings Per Share of Common Stock: Basic $ (0.24 ) $ 0.66 Diluted $ (0.24 ) $ 0.65 Average Number of Shares Outstanding: Basic 25,118 24,898 Diluted 25,118 25,067 (Unaudited) Nine Months Ended (Amounts in Thousands, except Per Share Data) March 31, 2024 March 31, 2023 Net Sales $ 1,284,352 100.0 % $ 1,327,288 100.0 % Cost of Sales 1,180,833 91.9 % 1,220,804 92.0 % Gross Profit 103,519 8.1 % 106,484 8.0 % Selling and Administrative Expenses 50,736 4.0 % 50,204 3.8 % Other General Expense (Income) (892 ) (0.1 )% — — % Restructuring Expense 1,622 0.1 % — — % Goodwill Impairment 5,820 0.5 % — — % Asset Impairment 16,564 1.3 % — — % Operating Income 29,669 2.3 % 56,280 4.2 % Interest Income 483 — % 88 — % Interest Expense (17,459 ) (1.4 )% (10,790 ) (0.8 )% Non-Operating Income (Expense), net (959 ) — % 2,659 0.2 % Other Income (Expense), net (17,935 ) (1.4 )% (8,043 ) (0.6 )% Income Before Taxes on Income 11,734 0.9 % 48,237 3.6 % Provision for Income Taxes (1,234 ) (0.1 )% 11,608 0.8 % Net Income $ 12,968 1.0 % $ 36,629 2.8 % Earnings Per Share of Common Stock: Basic $ 0.52 $ 1.47 Diluted $ 0.51 $ 1.46 Average Number of Shares Outstanding: Basic 25,084 24,868 Diluted 25,263 25,031 Condensed Consolidated Statements of Cash Flows Nine Months Ended (Unaudited) March 31, (Amounts in Thousands) 2024 2023 Net Cash Flow provided by (used for) Operating Activities $ 24,717 $ (57,885 ) Net Cash Flow used for Investing Activities (37,702 ) (66,497 ) Net Cash Flow provided by Financing Activities 36,571 107,148 Effect of Exchange Rate Change on Cash, Cash Equivalents, and Restricted Cash (113 ) (294 ) Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash 23,473 (17,528 ) Cash, Cash Equivalents, and Restricted Cash at Beginning of Period 43,864 49,851 Cash, Cash Equivalents, and Restricted Cash at End of Period $ 67,337 $ 32,323 (Unaudited) Condensed Consolidated Balance Sheets March 31, 2024 June 30, 2023 (Amounts in Thousands) ASSETS Cash and cash equivalents $ 65,208 $ 42,955 Receivables, net 277,894 308,167 Contract assets 76,073 78,798 Inventories 396,199 450,319 Prepaid expenses and other current assets 43,018 49,188 Assets held for sale 29,619 — Property and Equipment, net 273,823 267,684 Goodwill 6,191 12,011 Other Intangible Assets, net 3,197 12,335 Other Assets 89,606 38,262 Total Assets $ 1,260,828 $ 1,259,719 LIABILITIES AND SHARE OWNERS’ EQUITY Current portion of borrowings under credit facilities $ 84,618 $ 46,454 Accounts payable 248,174 322,274 Advances from customers 36,099 33,905 Accrued expenses 59,621 72,515 Liabilities held for sale 9,369 — 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 45,631 19,718 Share Owners’ Equity 539,061 523,994 Total Liabilities and Share Owners’ Equity $ 1,260,828 $ 1,259,719 Other Financial Metrics (Unaudited) (Amounts in Millions, except CCD) At or For the Three Months Ended Nine Months Ended March 31, March 31, 2024 2023 2024 2023 Depreciation and Amortization $ 10.5 $ 8.2 $ 28.5 $ 23.8 Stock-Based Compensation $ 1.8 $ 2.0 $ 5.4 $ 5.4 Cash Conversion Days (CCD) (1) 110 92 Open Orders (2) $ 831 $ 882 (1) Cash Conversion Days (“CCD”) are calculated as the sum of Days Sales Outstanding plus Contract Asset Days plus Production Days Supply on Hand less Accounts Payable Days and less Advances from Customers Days. CCD, or a similar metric, is used in our industry and by our management to measure the efficiency of managing working capital. (2) Open Orders are the aggregate sales price of production pursuant to unfulfilled customer orders. Select Financial Results of Automation, Test & Measurement (Unaudited) (Amounts in Millions) Three Months Ended Nine Months Ended March 31, March 31, 2024 2023 2024 2023 Net Sales $ 8.1 $ 16.8 $ 30.9 $ 40.6 Operating Income (Loss) (1) $ (25.4 ) $ 1.6 $ (24.3 ) $ 0.1 (1) Includes goodwill impairment of $5.8 million and asset impairment of $16.6 million for the three and nine months ended March 31, 2024. Also includes allocated corporate overhead expenses. Reconciliation of Non-GAAP Financial Measures (Unaudited) (Amounts in Thousands, except Per Share Data) Three Months Ended Nine Months Ended March 31, March 31, 2024 2023 2024 2023 Net Sales Growth (vs. same period in prior year) (12 )% 32 % (3 )% 36 % Foreign Currency Exchange Impact — % (2 )% — % (4 )% Constant Currency Growth (12 )% 34 % (3 )% 40 % Selling and Administrative Expenses, as reported $ 16,861 $ 17,752 $ 50,736 $ 50,204 SERP (277 ) (353 ) (584 ) (458 ) Adjusted Selling and Administrative Expenses $ 16,584 $ 17,399 $ 50,152 $ 49,746 Operating Income (Loss), as reported $ (6,431 ) $ 25,220 $ 29,669 $ 56,280 SERP 277 353 584 458 Legal Settlements (Recovery) (892 ) — (892 ) — Restructuring Expense 1,622 — 1,622 — Goodwill Impairment 5,820 — 5,820 — Asset Impairment 16,564 — 16,564 — Adjusted Operating Income $ 16,960 $ 25,573 $ 53,367 $ 56,738 Net Income (Loss), as reported $ (6,076 ) $ 16,400 $ 12,968 $ 36,629 Adjustments After Measurement Period on GES Acquisition — — — 279 Legal Settlements (Recovery), After-Tax (676 ) — (676 ) — Restructuring Expense, After-Tax 1,230 — 1,230 — Goodwill Impairment, After-Tax 4,414 — 4,414 — Asset Impairment, After-Tax 9,549 — 9,549 — Adjusted Net Income $ 8,441 $ 16,400 $ 27,485 $ 36,908 Diluted Earnings per Share, as reported $ (0.24 ) $ 0.65 $ 0.51 $ 1.46 Adjustments After Measurement Period on GES Acquisition — — — 0.01 Legal Settlements (Recovery) (0.03 ) — (0.03 ) — Restructuring Expense 0.05 — 0.05 — Goodwill Impairment 0.18 — 0.18 — Asset Impairment 0.38 — 0.38 — Adjusted Diluted Earnings per Share $ 0.34 $ 0.65 $ 1.09 $ 1.47 Twelve Months Ended March 31, 2024 2023 Operating Income $ 61,118 $ 76,858 Goodwill Impairment 5,820 — SERP 827 (701 ) Legal Recovery (1,104 ) — Restructuring Expense 1,622 — Asset Impairment 16,564 — Adjusted Operating Income (non-GAAP) $ 84,847 $ 76,157 Tax Effect 19,947 20,375 After-tax Adjusted Operating Income $ 64,900 $ 55,782 Average Invested Capital (1) $ 783,059 $ 659,911 ROIC 8.3 % 8.5 % (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/20240507684308/en/ Kimball Electronics reports Q3 results; Company announces renewed strategic focus, including expected divestiture of the Automation, Test & Measurement business. Contacts Andrew D. Regrut Vice President, Investor Relations 812.827.4151 Investor.Relations@kimballelectronics.com
Kimball Electronics, Inc. (Nasdaq: KE) today announced financial results for the third quarter of fiscal 2024 with net sales totaling $425.0 million and a net loss of $6.1 million, or $0.24 per share. This result includes the impairment of the Automation, Test & Measurement business, which the Company expects to divest, along with restructuring expense, partially offset by the recovery of a legal settlement. A detailed reconciliation is provided later in this release. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240507684308/en/ Excluding these items, adjusted net income in the third quarter of fiscal 2024 totaled $8.4 million, or $0.34 per diluted share, and adjusted operating income equaled $17.0 million, or 4.0% of net sales. Cash flow from operating activities in the quarter was $42.6 million driven by inventory reductions. Company sharpens strategic focus on EMS operations and aligns cost structure to short-term demand trends. Guidance for adjusted operating income in fiscal 2024 reiterated, while the estimate for net sales was updated, in response to the challenging operating environment, and capital expenditures strategically reduced. Resumption of share repurchases approved by the Board of Directors. Three Months Ended Nine Months Ended March 31, March 31, (Amounts in Thousands, except EPS) 2024 2023 2024 2023 Net Sales $ 425,036 $ 484,703 $ 1,284,352 $ 1,327,288 Operating Income $ (6,431 ) $ 25,220 $ 29,669 $ 56,280 Adjusted Operating Income (non-GAAP) (1) $ 16,960 $ 25,573 $ 53,367 $ 56,738 Operating Income % (1.5 )% 5.2 % 2.3 % 4.2 % Adjusted Operating Income (non-GAAP) % 4.0 % 5.3 % 4.2 % 4.3 % Net Income (Loss) $ (6,076 ) $ 16,400 $ 12,968 $ 36,629 Adjusted Net Income (non-GAAP) (1) $ 8,441 $ 16,400 $ 27,485 $ 36,908 Diluted EPS $ (0.24 ) $ 0.65 $ 0.51 $ 1.46 Adjusted Diluted EPS (non-GAAP) (1) $ 0.34 $ 0.65 $ 1.09 $ 1.47 (1) A reconciliation of GAAP and non-GAAP financial measures is included below. Commenting on today’s announcement, Richard D. Phillips, Chief Executive Officer, stated, “As we anticipated, the operating environment has remained challenged for the EMS industry, and our sales in the third quarter declined as expected. During this period of end market softness, we have focused on ‘controlling what we can control,’ proactively aligning our cost structure with short-term demand trends, maintaining competitiveness with stable operating margins, and focusing on working capital improvements.” Mr. Phillips continued, “We’re taking meaningful steps to sharpen our strategic focus and further position the Company for profitable growth, and stronger performance moving forward. With the expected divestiture of the Automation, Test & Measurement business, our team can increase focus and support on our core EMS operations. While we suspect the macro headwinds will persist in fiscal 2025, we’re continuing to make investments in long-term growth opportunities supported by a robust funnel for new business in the next 18-24 months, while deploying a capital allocation strategy that balances growth, lasting customer relationships, and returning cash to Share Owners with opportunistic share repurchases.” The Company ended the third quarter of fiscal 2024 with cash and cash equivalents of $65.2 million and borrowings outstanding on credit facilities of $319.6 million, including $235.0 million classified as long term, and $117.4 million of borrowing capacity available. Capital expenditures were $13.4 million in Q3. Net Sales by Vertical Market for Q3 Fiscal 2024: Three Months Ended Nine Months Ended March 31, March 31, (Amounts in Millions) 2024 * 2023 * Percent Change 2024 * 2023 * Percent Change Automotive (1) $ 202.0 47 % $ 221.9 46 % (9 )% $ 614.7 48 % $ 615.3 46 % — % Medical (1) 113.0 27 % 135.5 28 % (17 )% 323.5 25 % 377.1 29 % (14 )% Industrial (1) 110.0 26 % 127.3 26 % (14 )% 346.2 27 % 334.9 25 % 3 % Total Net Sales $ 425.0 $ 484.7 (12 )% $ 1,284.4 $ 1,327.3 (3 )% * 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, and public safety Guidance for Fiscal Year 2024 The Company reiterated its guidance for adjusted operating income in fiscal year 2024 of 4.2% to 4.6% of net sales. In response to the current economic environment, net sales are now expected to decline 4% to 6%, compared to the previous estimate of a 2% to 4% decrease. Capital expenditures are estimated to be in the range of $55 to $60 million, compared to the previous guidance 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: May 8, 2024 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: 889032 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 third quarter and year-to-date period ended March 31, 2024 are as follows: Condensed Consolidated Statements of Income (Unaudited) Three Months Ended (Amounts in Thousands, except Per Share Data) March 31, 2024 March 31, 2023 Net Sales $ 425,036 100.0 % $ 484,703 100.0 % Cost of Sales 391,492 92.1 % 441,731 91.1 % Gross Profit 33,544 7.9 % 42,972 8.9 % Selling and Administrative Expenses 16,861 3.9 % 17,752 3.7 % Other General Expense (Income) (892 ) (0.2 )% — — % Restructuring Expense 1,622 0.4 % — — % Goodwill Impairment 5,820 1.4 % — — % Asset Impairment 16,564 3.9 % — — % Operating Income (Loss) (6,431 ) (1.5 )% 25,220 5.2 % Interest Income 83 — % 45 — % Interest Expense (5,875 ) (1.4 )% (4,822 ) (1.0 )% Non-Operating Income (Expense), net (530 ) (0.1 )% 1,433 0.3 % Other Income (Expense), net (6,322 ) (1.5 )% (3,344 ) (0.7 )% Income Before Taxes on Income (12,753 ) (3.0 )% 21,876 4.5 % Provision for Income Taxes (6,677 ) (1.6 )% 5,476 1.1 % Net Income (Loss) $ (6,076 ) (1.4 )% $ 16,400 3.4 % Earnings Per Share of Common Stock: Basic $ (0.24 ) $ 0.66 Diluted $ (0.24 ) $ 0.65 Average Number of Shares Outstanding: Basic 25,118 24,898 Diluted 25,118 25,067 (Unaudited) Nine Months Ended (Amounts in Thousands, except Per Share Data) March 31, 2024 March 31, 2023 Net Sales $ 1,284,352 100.0 % $ 1,327,288 100.0 % Cost of Sales 1,180,833 91.9 % 1,220,804 92.0 % Gross Profit 103,519 8.1 % 106,484 8.0 % Selling and Administrative Expenses 50,736 4.0 % 50,204 3.8 % Other General Expense (Income) (892 ) (0.1 )% — — % Restructuring Expense 1,622 0.1 % — — % Goodwill Impairment 5,820 0.5 % — — % Asset Impairment 16,564 1.3 % — — % Operating Income 29,669 2.3 % 56,280 4.2 % Interest Income 483 — % 88 — % Interest Expense (17,459 ) (1.4 )% (10,790 ) (0.8 )% Non-Operating Income (Expense), net (959 ) — % 2,659 0.2 % Other Income (Expense), net (17,935 ) (1.4 )% (8,043 ) (0.6 )% Income Before Taxes on Income 11,734 0.9 % 48,237 3.6 % Provision for Income Taxes (1,234 ) (0.1 )% 11,608 0.8 % Net Income $ 12,968 1.0 % $ 36,629 2.8 % Earnings Per Share of Common Stock: Basic $ 0.52 $ 1.47 Diluted $ 0.51 $ 1.46 Average Number of Shares Outstanding: Basic 25,084 24,868 Diluted 25,263 25,031 Condensed Consolidated Statements of Cash Flows Nine Months Ended (Unaudited) March 31, (Amounts in Thousands) 2024 2023 Net Cash Flow provided by (used for) Operating Activities $ 24,717 $ (57,885 ) Net Cash Flow used for Investing Activities (37,702 ) (66,497 ) Net Cash Flow provided by Financing Activities 36,571 107,148 Effect of Exchange Rate Change on Cash, Cash Equivalents, and Restricted Cash (113 ) (294 ) Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash 23,473 (17,528 ) Cash, Cash Equivalents, and Restricted Cash at Beginning of Period 43,864 49,851 Cash, Cash Equivalents, and Restricted Cash at End of Period $ 67,337 $ 32,323 (Unaudited) Condensed Consolidated Balance Sheets March 31, 2024 June 30, 2023 (Amounts in Thousands) ASSETS Cash and cash equivalents $ 65,208 $ 42,955 Receivables, net 277,894 308,167 Contract assets 76,073 78,798 Inventories 396,199 450,319 Prepaid expenses and other current assets 43,018 49,188 Assets held for sale 29,619 — Property and Equipment, net 273,823 267,684 Goodwill 6,191 12,011 Other Intangible Assets, net 3,197 12,335 Other Assets 89,606 38,262 Total Assets $ 1,260,828 $ 1,259,719 LIABILITIES AND SHARE OWNERS’ EQUITY Current portion of borrowings under credit facilities $ 84,618 $ 46,454 Accounts payable 248,174 322,274 Advances from customers 36,099 33,905 Accrued expenses 59,621 72,515 Liabilities held for sale 9,369 — 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 45,631 19,718 Share Owners’ Equity 539,061 523,994 Total Liabilities and Share Owners’ Equity $ 1,260,828 $ 1,259,719 Other Financial Metrics (Unaudited) (Amounts in Millions, except CCD) At or For the Three Months Ended Nine Months Ended March 31, March 31, 2024 2023 2024 2023 Depreciation and Amortization $ 10.5 $ 8.2 $ 28.5 $ 23.8 Stock-Based Compensation $ 1.8 $ 2.0 $ 5.4 $ 5.4 Cash Conversion Days (CCD) (1) 110 92 Open Orders (2) $ 831 $ 882 (1) Cash Conversion Days (“CCD”) are calculated as the sum of Days Sales Outstanding plus Contract Asset Days plus Production Days Supply on Hand less Accounts Payable Days and less Advances from Customers Days. CCD, or a similar metric, is used in our industry and by our management to measure the efficiency of managing working capital. (2) Open Orders are the aggregate sales price of production pursuant to unfulfilled customer orders. Select Financial Results of Automation, Test & Measurement (Unaudited) (Amounts in Millions) Three Months Ended Nine Months Ended March 31, March 31, 2024 2023 2024 2023 Net Sales $ 8.1 $ 16.8 $ 30.9 $ 40.6 Operating Income (Loss) (1) $ (25.4 ) $ 1.6 $ (24.3 ) $ 0.1 (1) Includes goodwill impairment of $5.8 million and asset impairment of $16.6 million for the three and nine months ended March 31, 2024. Also includes allocated corporate overhead expenses. Reconciliation of Non-GAAP Financial Measures (Unaudited) (Amounts in Thousands, except Per Share Data) Three Months Ended Nine Months Ended March 31, March 31, 2024 2023 2024 2023 Net Sales Growth (vs. same period in prior year) (12 )% 32 % (3 )% 36 % Foreign Currency Exchange Impact — % (2 )% — % (4 )% Constant Currency Growth (12 )% 34 % (3 )% 40 % Selling and Administrative Expenses, as reported $ 16,861 $ 17,752 $ 50,736 $ 50,204 SERP (277 ) (353 ) (584 ) (458 ) Adjusted Selling and Administrative Expenses $ 16,584 $ 17,399 $ 50,152 $ 49,746 Operating Income (Loss), as reported $ (6,431 ) $ 25,220 $ 29,669 $ 56,280 SERP 277 353 584 458 Legal Settlements (Recovery) (892 ) — (892 ) — Restructuring Expense 1,622 — 1,622 — Goodwill Impairment 5,820 — 5,820 — Asset Impairment 16,564 — 16,564 — Adjusted Operating Income $ 16,960 $ 25,573 $ 53,367 $ 56,738 Net Income (Loss), as reported $ (6,076 ) $ 16,400 $ 12,968 $ 36,629 Adjustments After Measurement Period on GES Acquisition — — — 279 Legal Settlements (Recovery), After-Tax (676 ) — (676 ) — Restructuring Expense, After-Tax 1,230 — 1,230 — Goodwill Impairment, After-Tax 4,414 — 4,414 — Asset Impairment, After-Tax 9,549 — 9,549 — Adjusted Net Income $ 8,441 $ 16,400 $ 27,485 $ 36,908 Diluted Earnings per Share, as reported $ (0.24 ) $ 0.65 $ 0.51 $ 1.46 Adjustments After Measurement Period on GES Acquisition — — — 0.01 Legal Settlements (Recovery) (0.03 ) — (0.03 ) — Restructuring Expense 0.05 — 0.05 — Goodwill Impairment 0.18 — 0.18 — Asset Impairment 0.38 — 0.38 — Adjusted Diluted Earnings per Share $ 0.34 $ 0.65 $ 1.09 $ 1.47 Twelve Months Ended March 31, 2024 2023 Operating Income $ 61,118 $ 76,858 Goodwill Impairment 5,820 — SERP 827 (701 ) Legal Recovery (1,104 ) — Restructuring Expense 1,622 — Asset Impairment 16,564 — Adjusted Operating Income (non-GAAP) $ 84,847 $ 76,157 Tax Effect 19,947 20,375 After-tax Adjusted Operating Income $ 64,900 $ 55,782 Average Invested Capital (1) $ 783,059 $ 659,911 ROIC 8.3 % 8.5 % (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/20240507684308/en/
Kimball Electronics reports Q3 results; Company announces renewed strategic focus, including expected divestiture of the Automation, Test & Measurement business.
Andrew D. Regrut Vice President, Investor Relations 812.827.4151 Investor.Relations@kimballelectronics.com