Kimball Electronics Reports Q2 Results, Company Updates Outlook for Fiscal Year 2025
Kimball Electronics (KE) reported Q2 fiscal 2025 results with net sales of $357.4 million and operating income of $8.2 million (2.3% of net sales). The company generated $29.5 million in operating cash flow, marking the fourth consecutive quarter of positive cash flow. Notable improvements include a $29 million reduction in inventory from Q1 and a $41 million decrease in borrowings.
The company experienced declining customer demand across all segments: Automotive sales decreased 4% to $192.8 million, Medical sales fell 22% to $84.0 million, and Industrial sales dropped 20% to $80.6 million. In response, KE has revised its fiscal year 2025 guidance downward, now projecting net sales between $1.40-$1.44 billion and adjusted operating income of 3.4-3.6% of net sales.
Kimball Electronics (KE) ha riportato i risultati del secondo trimestre dell'anno fiscale 2025, con vendite nette di 357,4 milioni di dollari e un reddito operativo di 8,2 milioni di dollari (2,3% delle vendite nette). L'azienda ha generato un flusso di cassa operativo di 29,5 milioni di dollari, segnando il quarto trimestre consecutivo di flusso di cassa positivo. Tra i miglioramenti significativi ci sono una riduzione di 29 milioni di dollari dell'inventario rispetto al primo trimestre e una diminuzione dei prestiti di 41 milioni di dollari.
L'azienda ha riscontrato una diminuzione della domanda da parte dei clienti in tutti i segmenti: le vendite nel settore automobilistico sono diminuite del 4% a 192,8 milioni di dollari, le vendite nel settore medico sono scese del 22% a 84,0 milioni di dollari e le vendite nel settore industriale sono calate del 20% a 80,6 milioni di dollari. In risposta a questa situazione, KE ha rivisto al ribasso le sue previsioni per l'anno fiscale 2025, ora prevedendo vendite nette tra 1,40 e 1,44 miliardi di dollari e un reddito operativo rettificato del 3,4-3,6% delle vendite nette.
Kimball Electronics (KE) reportó los resultados del segundo trimestre del año fiscal 2025, con ventas netas de 357,4 millones de dólares y un ingreso operativo de 8,2 millones de dólares (2,3% de las ventas netas). La empresa generó un flujo de efectivo operativo de 29,5 millones de dólares, marcando el cuarto trimestre consecutivo de flujo de efectivo positivo. Las mejoras notables incluyen una reducción de 29 millones de dólares en inventario desde el primer trimestre y una disminución de 41 millones de dólares en préstamos.
La empresa experimentó una disminución en la demanda de los clientes en todos los segmentos: las ventas automotrices disminuyeron un 4% a 192,8 millones de dólares, las ventas médicas cayeron un 22% a 84,0 millones de dólares y las ventas industriales se redujeron un 20% a 80,6 millones de dólares. En respuesta, KE ha revisado a la baja su guía para el año fiscal 2025, ahora proyectando ventas netas entre 1,40 y 1,44 mil millones de dólares y un ingreso operativo ajustado del 3,4-3,6% de las ventas netas.
킴볼 전자(KE)는 2025 회계 연도 2분기 결과를 보고하며,净 매출은 3억 5,740만 달러, 운영 소득은 820만 달러(净 매출의 2.3%)로 나타났습니다. 이 회사는 2,950만 달러의 운영 현금 흐름을 창출했으며, 긍정적인 현금 흐름이 4분기 연속 기록되었습니다. 주목할 만한 개선 사항으로는 1분기 대비 2,900만 달러의 재고 감소와 4,100만 달러의 차입금 감소가 있습니다.
회사는 모든 부문에서 고객 수요 감소를 경험했습니다: 자동차 판매는 4% 감소하여 1억 9,280만 달러, 의료 판매는 22% 감소하여 8,400만 달러, 산업 판매는 20% 감소하여 8,060만 달러에 달했습니다. 이에 KE는 2025 회계 연도 가이던스를 하향 조정하여 잔여매출을 14억에서 14억 4천만 달러사이로, 조정 운영 소득을净 매출의 3.4-3.6%로 예상하고 있습니다.
Kimball Electronics (KE) a annoncé les résultats du deuxième trimestre de l'exercice fiscal 2025, avec des ventes nettes de 357,4 millions de dollars et un bénéfice opérationnel de 8,2 millions de dollars (2,3 % des ventes nettes). L'entreprise a généré un flux de trésorerie d'exploitation de 29,5 millions de dollars, marquant le quatrième trimestre consécutif de flux de trésorerie positif. Parmi les améliorations notables, on compte une réduction de l'inventaire de 29 millions de dollars par rapport au premier trimestre et une diminution des emprunts de 41 millions de dollars.
L'entreprise a constaté une baisse de la demande des clients dans tous les segments : les ventes automobiles ont diminué de 4 % à 192,8 millions de dollars, les ventes médicales ont chuté de 22 % à 84,0 millions de dollars et les ventes industrielles ont baissé de 20 % à 80,6 millions de dollars. En réponse, KE a révisé à la baisse sa prévision de l'exercice fiscal 2025, s'attendant désormais à des ventes nettes comprises entre 1,40 et 1,44 milliard de dollars et un bénéfice opérationnel ajusté de 3,4 à 3,6 % des ventes nettes.
Kimball Electronics (KE) hat die Ergebnisse für das zweite Quartal des Geschäftsjahres 2025 veröffentlicht, mit Nettoumsätzen von 357,4 Millionen Dollar und einem Betriebsgewinn von 8,2 Millionen Dollar (2,3% des Nettoumsatzes). Das Unternehmen erzielte einen operativen Cashflow von 29,5 Millionen Dollar, was das vierte aufeinanderfolgende Quartal mit positivem Cashflow markiert. Zu den bemerkenswerten Verbesserungen gehören eine Reduzierung des Inventars um 29 Millionen Dollar im Vergleich zum ersten Quartal und ein Rückgang der Darlehen um 41 Millionen Dollar.
Das Unternehmen verzeichnete sinkende Kundenanfragen in allen Segmenten: Der Umsatz im Automobilsektor sank um 4% auf 192,8 Millionen Dollar, der Umsatz im medizinischen Sektor fiel um 22% auf 84,0 Millionen Dollar, und der Umsatz im Industriesektor ging um 20% auf 80,6 Millionen Dollar zurück. In Reaktion darauf hat KE seine Prognose für das Geschäftsjahr 2025 nach unten korrigiert und erwartet nun Nettoumsätze zwischen 1,40 und 1,44 Milliarden Dollar sowie ein bereinigtes Betriebsergebnis von 3,4-3,6% des Nettoumsatzes.
- Fourth consecutive quarter of positive operating cash flow ($29.5M)
- Reduced inventory by $182M (37%) from peak levels
- Decreased borrowings by $90M (30%) since fiscal year start
- Secured additional $100M Term Loan A for enhanced liquidity
- Net sales declined 15% YoY to $357.4M
- Operating income decreased 50% YoY to $8.2M
- Medical segment revenue dropped 22% YoY
- Industrial segment revenue fell 20% YoY
- Lowered FY2025 guidance for both revenue and operating income
Insights
Kimball Electronics' Q2 FY2025 results reveal a company in transition, implementing strategic measures amid challenging market conditions. The 15% YoY revenue decline to
The company's aggressive working capital management has yielded impressive results:
- Inventory reduction of
$182 million (37% from peak) - Debt reduction of
$90 million (30% since fiscal year start) - Four consecutive quarters of positive operating cash flow
The vertical market analysis reveals varying degrees of pressure:
- Automotive remains resilient with only a
4% decline, now representing54% of revenue - Medical segment faced steeper challenges with a
22% decline - Industrial segment (excluding AT&M) decreased
20%
The strategic restructuring plan, including the Tampa facility closure and AT&M divestiture, demonstrates management's commitment to streamlining operations. The new
While the reduced guidance signals near-term challenges, the company's focus on operational efficiency and strategic repositioning suggests a methodical approach to building a more resilient business model. The adjusted operating margin guidance of
Second Quarter Fiscal 2025 Highlights
-
Net sales totaled
$357.4 million -
Operating income of
$8.2 million 2.3% of net sales, adjusted operating income of3.7% -
Inventory ended the quarter at
$306 million $29 million $182 million 37% , from peak levels -
Cash generated by operating activities of
$29.5 million -
Borrowings on credit facilities of
$205 million $41 million $90 million 30% , from the beginning of the fiscal year -
Enhanced the capital structure by amending the credit facility with the addition of a 5-year,
$100 million
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
December 31, |
|
December 31, |
||||||||||||
(Amounts in Thousands, except EPS) |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net Sales |
$ |
357,392 |
|
|
$ |
421,235 |
|
|
$ |
731,648 |
|
|
$ |
859,316 |
|
Operating Income |
$ |
8,230 |
|
|
$ |
16,610 |
|
|
$ |
17,345 |
|
|
$ |
36,100 |
|
Adjusted Operating Income (non-GAAP) (1) |
$ |
13,333 |
|
|
$ |
19,063 |
|
|
$ |
25,923 |
|
|
$ |
40,069 |
|
Operating Income % |
|
2.3 |
% |
|
|
3.9 |
% |
|
|
2.4 |
% |
|
|
4.2 |
% |
Adjusted Operating Income (non-GAAP) % |
|
3.7 |
% |
|
|
4.5 |
% |
|
|
3.5 |
% |
|
|
4.7 |
% |
Net Income |
$ |
3,432 |
|
|
$ |
8,290 |
|
|
$ |
6,586 |
|
|
$ |
19,044 |
|
Adjusted Net Income (non-GAAP) (1) |
$ |
7,354 |
|
|
$ |
9,783 |
|
|
$ |
12,881 |
|
|
$ |
21,821 |
|
Diluted EPS |
$ |
0.14 |
|
|
$ |
0.33 |
|
|
$ |
0.26 |
|
|
$ |
0.75 |
|
Adjusted Diluted EPS (non-GAAP) (1) |
$ |
0.29 |
|
|
$ |
0.39 |
|
|
$ |
0.51 |
|
|
$ |
0.86 |
|
(1) |
Beginning in the first quarter of fiscal year 2025, adjusted results exclude stock compensation expense. Prior reported periods have been revised accordingly. A reconciliation of GAAP and non-GAAP financial measures is included below. |
|
Commenting on today’s announcement, Richard D. Phillips, Chief Executive Officer, stated, “The results for the second quarter were in line with expectations as we continue to navigate a sustained period of declining customer demand, while focusing on what is controllable. For the fourth consecutive quarter, cash flow generated from operating activities was positive, inventory levels were reduced, and debt was paid down, with borrowings nearly
Mr. Phillips continued, “The Company is being strategically repositioned for a return to growth with a restructuring plan that includes the divestiture of the non-core assets from the AT&M business, improved facility utilization with the planned closing of our plant in
The Company ended the second quarter of fiscal 2025 with cash and cash equivalents of
Net Sales by Vertical Market for Q2 Fiscal 2025: |
|||||||||||||||||||||||||||||||||
|
Three Months Ended |
|
|
|
Six Months Ended |
|
|
||||||||||||||||||||||||||
|
December 31, |
|
|
|
December 31, |
|
|
||||||||||||||||||||||||||
(Amounts in Millions) |
2024 |
|
* |
|
2023 |
|
* |
|
Percent Change |
|
2024 |
|
* |
|
2023 |
|
* |
|
Percent Change |
||||||||||||||
Automotive |
$ |
192.8 |
|
54 |
% |
|
$ |
200.2 |
|
47 |
% |
|
(4 |
)% |
|
$ |
381.1 |
|
52 |
% |
|
$ |
412.7 |
|
48 |
% |
|
(8 |
)% |
||||
Medical |
|
84.0 |
|
|
23 |
% |
|
|
108.1 |
|
|
26 |
% |
|
(22 |
)% |
|
|
173.8 |
|
|
24 |
% |
|
|
210.5 |
|
|
25 |
% |
|
(17 |
)% |
Industrial excluding AT&M (1) |
|
80.6 |
|
|
23 |
% |
|
|
100.4 |
|
|
24 |
% |
|
(20 |
)% |
|
|
174.6 |
|
|
24 |
% |
|
|
213.3 |
|
|
24 |
% |
|
(18 |
)% |
Net Sales excluding AT&M (1) |
$ |
357.4 |
|
|
100 |
% |
|
$ |
408.7 |
|
|
97 |
% |
|
(13 |
)% |
|
$ |
729.5 |
|
|
100 |
% |
|
$ |
836.5 |
|
|
97 |
% |
|
(13 |
)% |
AT&M (1) |
|
— |
|
|
— |
% |
|
|
12.5 |
|
|
3 |
% |
|
(100 |
)% |
|
|
2.1 |
|
|
— |
% |
|
|
22.8 |
|
|
3 |
% |
|
(91 |
)% |
Total Net Sales |
$ |
357.4 |
|
|
100 |
% |
|
$ |
421.2 |
|
|
100 |
% |
|
(15 |
)% |
|
$ |
731.6 |
|
|
100 |
% |
|
$ |
859.3 |
|
|
100 |
% |
|
(15 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
* As a percent of Total Net Sales |
|||||||||||||||||||||||||||||||||
(1) Sales from our Automation, Test, and Measurement business (AT&M), which was divested effective July 31, 2024, were previously included in the Industrial vertical |
|||||||||||||||||||||||||||||||||
– 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, and public safety |
|||||||||||||||||||||||||||||||||
Company Guidance for Fiscal Year 2025:
-
Net sales in the range of
$1.40 $1.44 billion $1.44 $1.54 billion -
Adjusted operating income of
3.4% -3.6% of net sales, compared to the previous guidance of4.0% -4.5% of net sales(a) -
The estimate for capital expenditures remains unchanged at
$40 $50 million
| (a) | Fiscal year 2025 guidance reflects a change in our adjusted operating income calculation beginning in fiscal year 2025, which excludes stock compensation expense. This change better aligns our presentation with others in our industry. A reconciliation of GAAP and non-GAAP financial measures is included below. |
|
Forward-Looking Statements
Certain statements contained within this release are considered forward-looking, including our 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
Non-GAAP Financial Measures
This press release contains non-GAAP financial measures. The non-GAAP financial measures contained herein include constant currency growth, net sales excluding Automation, Test & Measurement, adjusted selling and administrative expenses, 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 global, multifaceted manufacturing solutions provider of electronics and diversified contract manufacturing services to customers around the world. From our operations in
To learn more about Kimball Electronics, visit www.kimballelectronics.com.
Conference Call / Webcast |
|
|
|
Date: |
February 5, 2025 |
Time: |
10:00 AM Eastern Time |
Live Webcast: |
investors.kimballelectronics.com/events-and-presentations/events |
Dial-In #: |
877-407-8293 (or 201-689-8349) |
|
|
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 second quarter and year-to-date period ended December 31, 2024 are as follows:
Condensed Consolidated Statements of Income |
|||||||||||||
(Unaudited) |
Three Months Ended |
||||||||||||
(Amounts in Thousands, except Per Share Data) |
December 31, 2024 |
|
December 31, 2023 |
||||||||||
Net Sales |
$ |
357,392 |
|
|
100.0 |
% |
|
$ |
421,235 |
|
|
100.0 |
% |
Cost of Sales |
|
333,965 |
|
|
93.4 |
% |
|
|
386,802 |
|
|
91.8 |
% |
Gross Profit |
|
23,427 |
|
|
6.6 |
% |
|
|
34,433 |
|
|
8.2 |
% |
Selling and Administrative Expenses |
|
10,526 |
|
|
3.0 |
% |
|
|
17,823 |
|
|
4.3 |
% |
Restructuring Expense |
|
4,671 |
|
|
1.3 |
% |
|
|
— |
|
|
— |
% |
|
|
|
|
|
|
|
|
||||||
Operating Income |
|
8,230 |
|
|
2.3 |
% |
|
|
16,610 |
|
|
3.9 |
% |
Interest Income |
|
253 |
|
|
0.1 |
% |
|
|
101 |
|
|
— |
% |
Interest Expense |
|
(4,241 |
) |
|
(1.2 |
)% |
|
|
(6,137 |
) |
|
(1.5 |
)% |
Non-Operating Income (Expense), net |
|
(768 |
) |
|
(0.2 |
)% |
|
|
702 |
|
|
0.3 |
% |
Other Income (Expense), net |
|
(4,756 |
) |
|
(1.3 |
)% |
|
|
(5,334 |
) |
|
(1.2 |
)% |
Income Before Taxes on Income |
|
3,474 |
|
|
1.0 |
% |
|
|
11,276 |
|
|
2.7 |
% |
Provision for Income Taxes |
|
42 |
|
|
— |
% |
|
|
2,986 |
|
|
0.7 |
% |
Net Income |
$ |
3,432 |
|
|
1.0 |
% |
|
$ |
8,290 |
|
|
2.0 |
% |
|
|
|
|
|
|
|
|
||||||
Earnings Per Share of Common Stock: |
|
|
|
|
|
|
|
||||||
Basic |
$ |
0.14 |
|
|
|
|
$ |
0.33 |
|
|
|
||
Diluted |
$ |
0.14 |
|
|
|
|
$ |
0.33 |
|
|
|
||
Average Number of Shares Outstanding: |
|
|
|
|
|
|
|
||||||
Basic |
|
24,870 |
|
|
|
|
|
25,094 |
|
|
|
||
Diluted |
|
24,968 |
|
|
|
|
|
25,211 |
|
|
|
||
|
|||||||||||||
(Unaudited) |
Six Months Ended |
||||||||||||
(Amounts in Thousands, except Per Share Data) |
December 31, 2024 |
|
December 31, 2023 |
||||||||||
Net Sales |
$ |
731,648 |
|
|
100.0 |
% |
|
$ |
859,316 |
|
|
100.0 |
% |
Cost of Sales |
|
684,621 |
|
|
93.6 |
% |
|
|
789,341 |
|
|
91.9 |
% |
Gross Profit |
|
47,027 |
|
|
6.4 |
% |
|
|
69,975 |
|
|
8.1 |
% |
Selling and Administrative Expenses |
|
23,953 |
|
|
3.2 |
% |
|
|
33,875 |
|
|
3.9 |
% |
Restructuring Expense |
|
6,993 |
|
|
1.0 |
% |
|
|
— |
|
|
— |
% |
Gain on Disposal |
|
(1,264 |
) |
|
(0.2 |
)% |
|
|
— |
|
|
— |
% |
Operating Income |
|
17,345 |
|
|
2.4 |
% |
|
|
36,100 |
|
|
4.2 |
% |
Interest Income |
|
475 |
|
|
0.1 |
% |
|
|
400 |
|
|
— |
% |
Interest Expense |
|
(9,033 |
) |
|
(1.2 |
)% |
|
|
(11,584 |
) |
|
(1.3 |
)% |
Non-Operating Income (Expense), net |
|
(2,429 |
) |
|
(0.4 |
)% |
|
|
(429 |
) |
|
(0.1 |
)% |
Other Income (Expense), net |
|
(10,987 |
) |
|
(1.5 |
)% |
|
|
(11,613 |
) |
|
(1.4 |
)% |
Income Before Taxes on Income |
|
6,358 |
|
|
0.9 |
% |
|
|
24,487 |
|
|
2.8 |
% |
Provision (Benefit) for Income Taxes |
|
(228 |
) |
|
0.0 |
% |
|
|
5,443 |
|
|
0.6 |
% |
Net Income |
$ |
6,586 |
|
|
0.9 |
% |
|
$ |
19,044 |
|
|
2.2 |
% |
|
|
|
|
|
|
|
|
||||||
Earnings Per Share of Common Stock: |
|
|
|
|
|
|
|
||||||
Basic |
$ |
0.26 |
|
|
|
|
$ |
0.76 |
|
|
|
||
Diluted |
$ |
0.26 |
|
|
|
|
$ |
0.75 |
|
|
|
||
|
|
|
|
|
|
|
|
||||||
Average Number of Shares Outstanding: |
|
|
|
|
|
|
|
||||||
Basic |
|
24,924 |
|
|
|
|
|
25,067 |
|
|
|
||
Diluted |
|
25,098 |
|
|
|
|
|
25,240 |
|
|
|
||
Condensed Consolidated Statements of Cash Flows |
Six Months Ended |
||||||
(Unaudited) |
December 31, |
||||||
(Amounts in Thousands) |
2024 |
|
2023 |
||||
Net Cash Flow provided by (used for) Operating Activities |
$ |
74,932 |
|
|
$ |
(17,922 |
) |
Net Cash Flow used for Investing Activities |
|
(1,214 |
) |
|
|
(24,365 |
) |
Net Cash Flow (used for) provided by Financing Activities |
|
(97,255 |
) |
|
|
38,859 |
|
Effect of Exchange Rate Change on Cash, Cash Equivalents, and Restricted Cash |
|
(722 |
) |
|
|
368 |
|
Net Decrease in Cash, Cash Equivalents, and Restricted Cash |
|
(24,259 |
) |
|
|
(3,060 |
) |
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period |
|
78,779 |
|
|
|
43,864 |
|
Cash, Cash Equivalents, and Restricted Cash at End of Period |
$ |
54,520 |
|
|
$ |
40,804 |
|
|
(Unaudited) |
|
|
||||
Condensed Consolidated Balance Sheets |
December 31,
|
|
June 30,
|
||||
(Amounts in Thousands) |
|||||||
ASSETS |
|
|
|
||||
Cash and cash equivalents |
$ |
53,865 |
|
$ |
77,965 |
||
Receivables, net |
|
235,166 |
|
|
|
282,336 |
|
Contract assets |
|
81,957 |
|
|
|
76,320 |
|
Inventories |
|
306,242 |
|
|
|
338,116 |
|
Prepaid expenses and other current assets |
|
31,550 |
|
|
|
44,682 |
|
Assets held for sale |
|
— |
|
|
|
27,587 |
|
Property and Equipment, net |
|
271,251 |
|
|
|
269,659 |
|
Goodwill |
|
6,191 |
|
|
|
6,191 |
|
Other Intangible Assets, net |
|
2,716 |
|
|
|
2,994 |
|
Other Assets, net |
|
85,498 |
|
|
|
82,069 |
|
Total Assets |
$ |
1,074,436 |
|
|
$ |
1,207,919 |
|
|
|
|
|
||||
LIABILITIES AND SHARE OWNERS’ EQUITY |
|
|
|
||||
Current portion of long-term debt |
$ |
24,900 |
|
|
$ |
59,837 |
|
Accounts payable |
|
204,690 |
|
|
|
213,551 |
|
Advances from customers |
|
39,340 |
|
|
|
30,151 |
|
Accrued expenses |
|
42,291 |
|
|
|
63,189 |
|
Liabilities held for sale |
|
— |
|
|
|
8,594 |
|
Long-term debt, less current portion |
|
179,601 |
|
|
|
235,000 |
|
Long-term income taxes payable |
|
— |
|
|
|
3,255 |
|
Other long-term liabilities |
|
46,138 |
|
|
|
53,881 |
|
Share Owners’ Equity |
|
537,476 |
|
|
|
540,461 |
|
Total Liabilities and Share Owners’ Equity |
$ |
1,074,436 |
|
|
$ |
1,207,919 |
|
Other Financial Metrics |
|||||||||||
(Unaudited) |
|||||||||||
(Amounts in Millions, except CCD) |
|||||||||||
|
At or For the |
||||||||||
|
Three Months Ended |
||||||||||
|
December 31, |
|
September 30, |
|
December 31, |
||||||
|
2024 |
|
2024 |
|
2023 |
||||||
Depreciation and Amortization |
$ |
9.1 |
|
$ |
9.2 |
|
$ |
9.1 |
|||
Cash Conversion Days (CCD) (1) |
|
107 |
|
|
|
108 |
|
|
|
117 |
|
Open Orders (2) |
$ |
564 |
|
|
$ |
594 |
|
|
$ |
836 |
|
(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. Our declining open orders are primarily due to the cancellation of a major automotive program and other demand reductions, as well as reduced lead times on customer orders as compared to December 31, 2023, when parts were more constrained. |
|||
Select Financial Results of Automation, Test and Measurement |
|||||||||||||||
(Unaudited) |
|||||||||||||||
(Amounts in Millions) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
December 31, |
|
December 31, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net Sales |
$ |
— |
|
$ |
12.5 |
|
$ |
2.1 |
|
$ |
22.8 |
||||
Operating Income (Loss) (1) |
$ |
— |
|
|
$ |
1.4 |
|
|
$ |
0.8 |
|
|
$ |
1.2 |
|
(1) Includes gain on sale of |
Reconciliation of Non-GAAP Financial Measures |
|||||||||||||||
(Unaudited, Amounts in Thousands, except Per Share Data) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
December 31, |
|
December 31, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net Sales Growth (vs. same period in prior year) |
|
(15 |
)% |
|
|
(4 |
)% |
|
|
(15 |
)% |
|
|
2 |
% |
Foreign Currency Exchange Impact |
|
— |
% |
|
|
1 |
% |
|
|
— |
% |
|
|
1 |
% |
Constant Currency Growth |
|
(15 |
)% |
|
|
(5 |
)% |
|
|
(15 |
)% |
|
|
1 |
% |
|
|
|
|
|
|
|
|
||||||||
Selling and Administrative Expenses, as reported |
$ |
10,526 |
|
|
$ |
17,823 |
|
|
$ |
23,953 |
|
|
$ |
33,875 |
|
Stock Compensation Expense |
|
(501 |
) |
|
|
(1,969 |
) |
|
|
(2,573 |
) |
|
|
(3,662 |
) |
SERP |
|
69 |
|
|
|
(484 |
) |
|
|
(276 |
) |
|
|
(307 |
) |
Adjusted Selling and Administrative Expenses |
$ |
10,094 |
|
|
$ |
15,370 |
|
|
$ |
21,104 |
|
|
$ |
29,906 |
|
|
|
|
|
|
|
|
|
||||||||
Operating Income, as reported |
$ |
8,230 |
|
|
$ |
16,610 |
|
|
$ |
17,345 |
|
|
$ |
36,100 |
|
Stock Compensation Expense |
|
501 |
|
|
|
1,969 |
|
|
|
2,573 |
|
|
|
3,662 |
|
SERP |
|
(69 |
) |
|
|
484 |
|
|
|
276 |
|
|
|
307 |
|
Restructuring Expense |
|
4,671 |
|
|
|
— |
|
|
|
6,993 |
|
|
|
— |
|
Gain on Disposal |
|
— |
|
|
|
— |
|
|
|
(1,264 |
) |
|
|
— |
|
Adjusted Operating Income |
$ |
13,333 |
|
|
$ |
19,063 |
|
|
$ |
25,923 |
|
|
$ |
40,069 |
|
|
|
|
|
|
|
|
|
||||||||
Net Income, as reported |
$ |
3,432 |
|
|
$ |
8,290 |
|
|
$ |
6,586 |
|
|
$ |
19,044 |
|
Stock Compensation Expense, After-Tax |
|
380 |
|
|
|
1,493 |
|
|
|
1,951 |
|
|
|
2,777 |
|
Restructuring Expense, After-Tax |
|
3,542 |
|
|
|
— |
|
|
|
5,303 |
|
|
|
— |
|
Gain on Disposal, After-Tax |
|
— |
|
|
|
— |
|
|
|
(959 |
) |
|
|
— |
|
Adjusted Net Income |
$ |
7,354 |
|
|
$ |
9,783 |
|
|
$ |
12,881 |
|
|
$ |
21,821 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted Earnings per Share, as reported |
$ |
0.14 |
|
|
$ |
0.33 |
|
|
$ |
0.26 |
|
|
$ |
0.75 |
|
Stock Compensation Expense |
|
0.01 |
|
|
|
0.06 |
|
|
|
0.07 |
|
|
|
0.11 |
|
Restructuring Expense |
|
0.14 |
|
|
|
— |
|
|
|
0.21 |
|
|
|
— |
|
Gain on Disposal |
|
— |
|
|
|
— |
|
|
|
(0.03 |
) |
|
|
— |
|
Adjusted Diluted Earnings per Share |
$ |
0.29 |
|
|
$ |
0.39 |
|
|
$ |
0.51 |
|
|
$ |
0.86 |
|
|
|
|
|
|
|
|
|
||||||||
|
Twelve Months Ended |
|
|
|
|
||||||||||
|
December 31, |
|
|
|
|
||||||||||
|
2024 |
|
2023 |
|
|
|
|
||||||||
Operating Income |
$ |
30,522 |
|
|
$ |
92,769 |
|
|
|
|
|
||||
Goodwill Impairment |
|
5,820 |
|
|
|
— |
|
|
|
|
|
||||
Stock Compensation Expense |
|
6,096 |
|
|
|
7,219 |
|
|
|
|
|
||||
SERP |
|
649 |
|
|
|
903 |
|
|
|
|
|
||||
Legal Recovery |
|
(892 |
) |
|
|
(212 |
) |
|
|
|
|
||||
Restructuring Expense |
|
9,379 |
|
|
|
— |
|
|
|
|
|
||||
Asset Impairment and Gain on Disposal |
|
15,776 |
|
|
|
— |
|
|
|
|
|
||||
Adjusted Operating Income (non-GAAP) |
$ |
67,350 |
|
|
$ |
100,679 |
|
|
|
|
|
||||
Tax Effect |
|
17,019 |
|
|
|
24,954 |
|
|
|
|
|
||||
After-tax Adjusted Operating Income |
$ |
50,331 |
|
|
$ |
75,725 |
|
|
|
|
|
||||
Average Invested Capital (1) |
$ |
756,966 |
|
|
$ |
770,051 |
|
|
|
|
|
||||
ROIC |
|
6.6 |
% |
|
|
9.8 |
% |
|
|
|
|
||||
(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/20250204524384/en/
Andrew D. Regrut
Treasurer and Investor Relations Officer
812.827.4151
Investor.Relations@kimballelectronics.com
Source: Kimball Electronics, Inc.
FAQ
What were Kimball Electronics' (KE) Q2 2025 financial results?
How much did KE reduce its inventory and debt in Q2 2025?
What is KE's revised guidance for fiscal year 2025?
How did KE's different market segments perform in Q2 2025?
