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 |
Three Months Ended | Fiscal Year Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(Amounts in Thousands, except EPS) | 2019 (1) | 2018 | 2019 (1) | 2018 | |||||||||||
Net Sales | $ | 318,621 | $ | 276,768 | $ | 1,181,844 | $ | 1,072,061 | |||||||
Operating Income (2) | $ | 10,319 | $ | 11,266 | $ | 42,060 | $ | 42,038 | |||||||
Adjusted Operating Income (non-GAAP) (2) (3) | $ | 10,104 | $ | 11,266 | $ | 41,753 | $ | 42,038 | |||||||
Operating Income % | 3.2 | % | 4.1 | % | 3.6 | % | 3.9 | % | |||||||
Adjusted Operating Income (non-GAAP) % | 3.2 | % | 4.1 | % | 3.5 | % | 3.9 | % | |||||||
Net Income | $ | 7,525 | $ | 5,784 | $ | 31,558 | $ | 16,752 | |||||||
Adjusted Net Income (non-GAAP) (3) | $ | 7,362 | $ | 7,193 | $ | 31,074 | $ | 34,611 | |||||||
Diluted EPS | $ | 0.29 | $ | 0.22 | $ | 1.21 | $ | 0.62 | |||||||
Adjusted Diluted EPS (non-GAAP) (3) | $ | 0.29 | $ | 0.27 | $ | 1.19 | $ | 1.28 |
• | Consolidated net sales set a new quarterly record while increasing 15% compared to the fourth quarter of fiscal year 2018. The GES acquisition added 2% to net sales during the quarter while unfavorable foreign currency movements decreased net sales by approximately 3% compared to the prior year fourth quarter. |
• | Operating activities provided cash of $12.2 million during the quarter, which compares to cash provided by operating activities of $19.3 million in the fourth quarter of fiscal year 2018. |
• | Cash conversion days (“CCD”) for the quarter ended June 30, 2019 were 77 days, up from 63 days in the same quarter last year largely related to an increase in raw material inventories to maintain appropriate buffer stock levels in the tight supply environment. 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 $9.8 million during the quarter. |
• | Cash and cash equivalents were $49.3 million and borrowings outstanding on credit facilities were $126.2 million at June 30, 2019, including $91.5 million classified as long-term. |
Three Months Ended | ||||||||||
June 30, | ||||||||||
(Amounts in Millions) | 2019 | 2018 | Percent Change | |||||||
Automotive | $ | 128.7 | $ | 114.7 | 12 | % | ||||
Medical | 100.5 | 86.4 | 16 | % | ||||||
Industrial | 68.3 | 57.0 | 20 | % | ||||||
Public Safety | 16.1 | 15.9 | 1 | % | ||||||
Other | 5.0 | 2.8 | 83 | % | ||||||
Total Net Sales | $ | 318.6 | $ | 276.8 | 15 | % |
• | Net sales increased 10% from the prior fiscal year, setting a new annual net sales record of $1.18 billion. |
• | Cash flow used by operating activities for fiscal year 2019 was $6.7 million. |
• | Investments in capital expenditures were $25.8 million and cash paid, net of cash acquired, for the GES acquisition was $43.9 million during fiscal year 2019. |
• | Return on invested capital (“ROIC”) was 8.7% for fiscal year 2019, down from 10.1% for the prior fiscal year (see reconciliation of non-GAAP financial measures for ROIC calculation). |
• | During the year, $23.4 million was returned to Share Owners in the form of common stock repurchases. |
• | Net sales goal remains 8% annual organic growth rate. |
• | Operating income percent goal remains 4.5%. |
• | ROIC long-term goal remains 12.5%. |
Conference Call / Webcast | ||
Date: | August 1, 2019 | |
Time: | 10:00 AM Eastern Time | |
Dial-In #: | 800-992-4934 (International Calls - 937-502-2251) | |
Conference ID: | 8487695 |
Condensed Consolidated Statements of Income | |||||||||||||
(Unaudited) | Three Months Ended | ||||||||||||
(Amounts in Thousands, except Per Share Data) | June 30, 2019 (1) | June 30, 2018 | |||||||||||
Net Sales | $ | 318,621 | 100.0 | % | $ | 276,768 | 100.0 | % | |||||
Cost of Sales (2) | 295,399 | 92.7 | % | 253,993 | 91.8 | % | |||||||
Gross Profit (2) | 23,222 | 7.3 | % | 22,775 | 8.2 | % | |||||||
Selling and Administrative Expenses (2) | 13,118 | 4.2 | % | 11,509 | 4.1 | % | |||||||
Other General Income | (215 | ) | (0.1 | )% | — | — | % | ||||||
Operating Income (2) | 10,319 | 3.2 | % | 11,266 | 4.1 | % | |||||||
Other Income (Expense), net (2) | (1,605 | ) | (0.5 | )% | (1,041 | ) | (0.4 | )% | |||||
Income Before Taxes on Income | 8,714 | 2.7 | % | 10,225 | 3.7 | % | |||||||
Provision for Income Taxes | 1,189 | 0.3 | % | 4,441 | 1.6 | % | |||||||
Net Income | $ | 7,525 | 2.4 | % | $ | 5,784 | 2.1 | % | |||||
Earnings Per Share of Common Stock: | |||||||||||||
Basic | $ | 0.30 | $ | 0.22 | |||||||||
Diluted | $ | 0.29 | $ | 0.22 | |||||||||
Average Number of Shares Outstanding: | |||||||||||||
Basic | 25,450 | 26,642 | |||||||||||
Diluted | 25,622 | 26,851 |
(Unaudited) | Fiscal Year Ended | ||||||||||||
(Amounts in Thousands, except Per Share Data) | June 30, 2019 (1) | June 30, 2018 | |||||||||||
Net Sales | $ | 1,181,844 | 100.0 | % | $ | 1,072,061 | 100.0 | % | |||||
Cost of Sales (2) | 1,093,438 | 92.5 | % | 986,031 | 92.0 | % | |||||||
Gross Profit (2) | 88,406 | 7.5 | % | 86,030 | 8.0 | % | |||||||
Selling and Administrative Expenses (2) | 46,653 | 3.9 | % | 43,992 | 4.1 | % | |||||||
Other General Income | (307 | ) | — | % | — | — | % | ||||||
Operating Income (2) | 42,060 | 3.6 | % | 42,038 | 3.9 | % | |||||||
Other Income (Expense), net (2) | (3,575 | ) | (0.3 | )% | 2,737 | 0.3 | % | ||||||
Income Before Taxes on Income | 38,485 | 3.3 | % | 44,775 | 4.2 | % | |||||||
Provision for Income Taxes | 6,927 | 0.6 | % | 28,023 | 2.6 | % | |||||||
Net Income | $ | 31,558 | 2.7 | % | $ | 16,752 | 1.6 | % | |||||
Earnings Per Share of Common Stock: | |||||||||||||
Basic | $ | 1.22 | $ | 0.63 | |||||||||
Diluted | $ | 1.21 | $ | 0.62 | |||||||||
Average Number of Shares Outstanding: | |||||||||||||
Basic | 25,857 | 26,745 | |||||||||||
Diluted | 26,082 | 27,007 |
Condensed Consolidated Statements of Cash Flows | Fiscal Year Ended | ||||||
(Unaudited) | June 30, | ||||||
(Amounts in Thousands) | 2019 | 2018 | |||||
Net Cash Flow (used for) provided by Operating Activities | $ | (6,748 | ) | $ | 40,200 | ||
Net Cash Flow used for Investing Activities | (68,709 | ) | (26,214 | ) | |||
Net Cash Flow provided by (used for) Financing Activities | 79,430 | (12,603 | ) | ||||
Effect of Exchange Rate Change on Cash and Cash Equivalents | (1,125 | ) | 490 | ||||
Net Increase in Cash and Cash Equivalents | 2,848 | 1,873 | |||||
Cash and Cash Equivalents at Beginning of Period | 46,428 | 44,555 | |||||
Cash and Cash Equivalents at End of Period | $ | 49,276 | $ | 46,428 |
(Unaudited) | |||||||
Condensed Consolidated Balance Sheets | June 30, 2019 | June 30, 2018 | |||||
(Amounts in Thousands) | |||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 49,276 | $ | 46,428 | |||
Receivables, net | 225,555 | 173,559 | |||||
Contract assets (1) | 51,929 | — | |||||
Inventories (1) | 203,840 | 201,596 | |||||
Prepaid expenses and other current assets | 24,713 | 15,405 | |||||
Property and Equipment, net | 143,629 | 137,210 | |||||
Goodwill | 16,104 | 6,191 | |||||
Other Intangible Assets, net | 22,188 | 4,375 | |||||
Other Assets (1) | 24,877 | 23,994 | |||||
Total Assets | $ | 762,111 | $ | 608,758 | |||
LIABILITIES AND SHARE OWNERS’ EQUITY | |||||||
Current portion of borrowings under credit facilities | $ | 34,713 | $ | 8,337 | |||
Accounts payable | 197,001 | 187,788 | |||||
Accrued expenses (1) | 43,196 | 32,446 | |||||
Long-term debt under credit facilities, less current portion | 91,500 | — | |||||
Long-term income taxes payable | 9,765 | 12,361 | |||||
Other | 16,082 | 12,299 | |||||
Share Owners’ Equity (1) | 369,854 | 355,527 | |||||
Total Liabilities and Share Owners’ Equity | $ | 762,111 | $ | 608,758 |
Reconciliation of Non-GAAP Financial Measures | |||||||||||||||
(Unaudited) | |||||||||||||||
(Amounts in Thousands, except Per Share Data) | |||||||||||||||
Operating Income excluding Lawsuit Proceeds | |||||||||||||||
Three Months Ended | Fiscal Year Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Operating Income, as reported (1) | $ | 10,319 | $ | 11,266 | $ | 42,060 | $ | 42,038 | |||||||
Less: Pre-tax Settlement Proceeds from Lawsuits | 215 | — | 307 | — | |||||||||||
Adjusted Operating Income (1) | $ | 10,104 | $ | 11,266 | $ | 41,753 | $ | 42,038 | |||||||
Net Income excluding Tax Reform and Lawsuit Proceeds | |||||||||||||||
Three Months Ended | Fiscal Year Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net Income, as reported | $ | 7,525 | $ | 5,784 | $ | 31,558 | $ | 16,752 | |||||||
Add: Adjustments to Provision for Income Taxes from Tax Reform during measurement period | — | 1,409 | (251 | ) | 17,859 | ||||||||||
Less: After-tax Settlement Proceeds from Lawsuits | 163 | — | 233 | — | |||||||||||
Adjusted Net Income | $ | 7,362 | $ | 7,193 | $ | 31,074 | $ | 34,611 | |||||||
Diluted Earnings per Share excluding Tax Reform and Lawsuit Proceeds | |||||||||||||||
Three Months Ended | Fiscal Year Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Diluted Earnings per Share, as reported | $ | 0.29 | $ | 0.22 | $ | 1.21 | $ | 0.62 | |||||||
Add: Adjustments to Provision for Income Taxes from Tax Reform during measurement period | — | 0.05 | (0.01 | ) | 0.66 | ||||||||||
Less: Impact of Settlement Proceeds from Lawsuits | — | — | 0.01 | — | |||||||||||
Adjusted Diluted Earnings per Share | $ | 0.29 | $ | 0.27 | $ | 1.19 | $ | 1.28 | |||||||
Return on Invested Capital (ROIC) | |||||||||||||||
Fiscal Year Ended | |||||||||||||||
June 30, | |||||||||||||||
2019 | 2018 | ||||||||||||||
Operating Income (GAAP) (1) | $ | 42,060 | $ | 42,038 | |||||||||||
Less: Pre-tax Settlement Proceeds from Lawsuits | $ | 307 | $ | — | |||||||||||
Adjusted Operating Income (non-GAAP) (1) | $ | 41,753 | $ | 42,038 | |||||||||||
Tax Effect (2) | $ | 7,729 | $ | 9,715 | |||||||||||
After Tax Adjusted Operating Income | $ | 34,024 | $ | 32,323 | |||||||||||
Average Invested Capital (3) | $ | 390,528 | $ | 319,074 | |||||||||||
ROIC | 8.7 | % | 10.1 | % |
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