Knowles Reports Q1 2024 Financial Results and Provides Outlook for Q2 2024
Knowles (NYSE: KN) reported Q1 2024 revenues of $196 million, exceeding the midpoint of the guided range, and net cash from operations of $17 million, surpassing the high end of the guided range. The company highlighted double-digit revenue growth across all segments, with strong financial results and non-GAAP Diluted Earnings per Share at the high end of expectations. Knowles looks forward to sequential revenue and earnings growth in Q2 2024, emphasizing the transition to higher value markets and products to enhance shareholder value.
Q1 2024 Revenue of $196 million exceeded the midpoint of the Guided Range
Q1 Net Cash from Operations of $17 million exceeded the high end of the Guided Range
Year over year double-digit revenue growth reported across all segments
Non-GAAP Diluted Earnings per Share was at the high end of the guided range
Strong financial results driven by solid execution across all businesses
Expectation of sequential revenues and earnings growth in Q2 2024
Focus on transitioning the company’s portfolio to higher value markets and products
- None.
Insights
The Q1 financial figures indicate that Knowles Corporation has performed commendably, with a revenue increase to $196.4 million compared to the same quarter last year. A noteworthy aspect here is the rise from $144.3 million in Q1 of the previous year, suggesting a robust year-over-year growth. This performance is particularly impressive considering the excess inventory levels in various end markets, which often dampen sales.
Investors may find the net cash from operations, which stands at $17.3 million, reassuring as it surpasses the upper spectrum of the company's guidance. This implies strong operational efficiency and could signal healthy cash flow. Furthermore, the consistent generation of cash is vital for funding future growth or paying dividends, both of which are critical for shareholder value.
However, it's essential to observe the sequential dip in revenue from $215.2 million in Q4 of the previous year, which could potentially raise questions about short-term growth sustainability. The decrease in gross profit margins, from 37.3% in Q1 of the previous year to 35.6% currently, might also raise some eyebrows. But the non-GAAP adjustments, which often exclude one-time costs, show a lesser impact—a narrower margin decline from 37.7% to 38.0% in non-GAAP terms. This may offer some comfort to stakeholders, as it suggests that the core business remains relatively stable when excluding non-recurring expenses.
Considering Knowles' strategic shift towards higher value markets and products, the company seems to be positioning itself to capitalize on market trends favoring advanced electronic components. The emphasis on segments like balanced armature speakers, RF filters and innovative MEMS microphones aligns with the burgeoning demand in consumer electronics, healthcare devices and communication infrastructure.
Investors should keep an eye on the company's R&D trajectory and market adoption rates, as these will be pivotal in sustaining the growth indicated by the first quarter's results. As revenue from new products and markets begins to materialize, it may offset potential declines in the company's traditional segments or broader market volatility. Hence, the transition strategy might be a critical factor for long-term growth and market competitiveness.
From an equity evaluation standpoint, the non-GAAP diluted earnings per share (EPS) of $0.20, up from $0.05 in the same quarter last year, is a strong indicator of the company's profitability improvement. Adjusted earnings are often scrutinized by investors as they attempt to understand the company's core operating performance by excluding non-recurring or irregular expenses. The current period adjustments — including stock-based compensation, amortization of intangibles and acquisition-related costs — are significant. Yet, the non-GAAP results paint a picture of operational resilience.
Their forward-looking statements regarding Q2 anticipate sequential growth, which could be a sign of confidence from management in their operational strategy. However, investors should be prudent and consider both the potential for growth and the risks, such as any unexpected shifts in inventory levels or macroeconomic conditions that could influence consumer electronics demand.
Q1 2024 Revenue of
Q1 Net Cash from Operations of
“All three segments delivered year over year double digit revenue growth in the first quarter of 2024 and Non-GAAP Diluted Earnings per Share was at the high end of our guided range. I am pleased to report that net cash from operating activities of
Mr. Niew continued, “As we look to the second quarter of 2024, we expect to see sequential revenues and earnings growth and another quarter of strong cash generation. Throughout 2024 we will continue to progress in transitioning our company’s portfolio to higher value markets and products to drive shareholder value.”
Financial Highlights
The following table highlights the Company’s financial performance on both a GAAP and supplemental non-GAAP basis (in millions, except per share data):
|
Q1-24 |
Q4-23 |
Q1-23 |
Revenues |
|
|
|
Gross profit |
|
|
|
(as a % of revenues) |
|
|
|
Non-GAAP gross profit |
|
|
|
(as a % of revenues) |
|
|
|
Diluted earnings (loss) per share* |
|
|
|
Non-GAAP diluted earnings per share |
|
|
|
Net cash provided by operating activities |
|
|
|
* Current period results include
Second Quarter 2024 Outlook
The forward looking guidance for the quarter ending June 30, 2024 is as follows:
|
GAAP |
Adjustments |
Non-GAAP |
Revenues |
|
— |
|
Diluted earnings per share |
|
|
|
Net cash provided by operating activities |
|
— |
|
Q2 2024 GAAP results are expected to include approximately
Non-GAAP Financial Measures
In addition to the GAAP results included in this press release, Knowles has presented supplemental non-GAAP gross profit, earnings before interest and income taxes, adjusted earnings before interest and income taxes, non-GAAP diluted earnings per share, free cash flow, as well as other metrics on a non-GAAP basis that exclude certain amounts that are included in the most directly comparable GAAP measure to facilitate evaluation of Knowles’ operating performance. Non-GAAP results are not presented in accordance with GAAP. Non-GAAP information should be considered a supplement to, and not a substitute for, financial statements prepared in accordance with GAAP. In addition, the non-GAAP financial measures included in this press release do not have standard meanings and may vary from similarly titled non-GAAP financial measures used by other companies. Knowles believes that non-GAAP measures are useful as supplements to its GAAP results of operations to evaluate certain aspects of its operations and financial performance, and its management team primarily focuses on non-GAAP items in evaluating Knowles’ performance for business planning purposes. Knowles also believes that these measures assist it with comparing its performance between various reporting periods on a consistent basis, as these measures remove from operating results the impact of items that, in Knowles’ opinion, do not reflect its core operating performance including, for example, stock-based compensation, certain intangibles amortization expense, impairment charges, restructuring, production transfer costs, and other charges which management considers to be outside our core operating results. Knowles believes that its presentation of these non-GAAP financial measures is useful because it provides investors and securities analysts with the same information that Knowles uses internally for purposes of assessing its core operating performance. For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures, see the reconciliation table accompanying this release.
Webcast and Conference Call Information
Investors can listen to a live or replay webcast of the Company’s quarterly financial conference call at http://investor.knowles.com. The live webcast will begin today at 3:30 p.m. Central time. The webcast replay will be available after 7:00 p.m. Central time today.
A conference call replay will be available after 7:00 p.m. Central time on May 1 through 11:59 p.m. Central time on May 8 at (800) 770-2030 (Toll-Free Dial-In); (609) 800-9909 (Toll Dial-In). The conference ID is 3966457. A webcast replay will also be accessible via the Knowles website at http://investor.knowles.com for a limited time.
About Knowles
Knowles is a market leader and global provider of high performance capacitors and radio frequency ("RF") filtering products, and advanced micro-acoustic microphones and balanced armature speakers, audio solutions, serving the medtech, defense, consumer electronics, electric vehicle, industrial, and communications markets. Knowles' focus on the customer, combined with unique technology, proprietary manufacturing techniques, and global operational expertise, enables us to deliver innovative solutions across multiple applications. Founded in 1946 and headquartered in
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, such as statements about our future plans, objectives, expectations, financial performance, and continued business operations. The words “believe,” “expect,” “anticipate,” “project,” “estimate,” “budget,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “seek,” “should,” “will,” “would,” “objective,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target,” and similar expressions, among others, generally identify forward-looking statements, which speak only as of the date the statements were made. The statements in this news release are based on currently available information and the current expectations, forecasts, and assumptions of Knowles’ management concerning risks and uncertainties that could cause actual outcomes or results to differ materially from those outcomes or results that are projected, anticipated, or implied in these statements. Other risks and uncertainties include, but are not limited to: incurrence of additional impairment charges and a significant charge to earnings due to future events or factors, such as the outcome of our strategic alternatives review of the CMM segment (which could result in either a sale or a restructuring of our CMM segment), or changes to the underlying assumptions used to calculate fair value; a significant reduction in MEMS microphone sales due to any weakening demand, loss of market share, or other factors adversely affecting our levels and the timing of our sale of the MEMS microphones; our ongoing ability to execute our strategy to diversify our end markets and customers; our ability to stem or overcome price erosion in our segments; difficulties or delays in and/or the Company’s inability to realize expected synergies from its acquisitions; fluctuations in our stock's market price; fluctuations in operating results and cash flows; our ability to prevent or identify quality issues in our products or to promptly remedy any such issues that are identified; the timing of OEM product launches; risks associated with increasing our inventories in advance of anticipated orders by customers; global economic instability, including due to inflation, rising interest rates, negative impacts caused by pandemics and public health crises, or the impacts of geopolitical uncertainties; the impact of changes to laws and regulations that affect the Company’s ability to offer products or services to customers in different regions; our ability to achieve reductions in our operating expenses; the ability to qualify our products and facilities with customers; our ability to obtain, enforce, defend or monetize our intellectual property rights; disruption caused by a cybersecurity incident, including a cyber attack, cyber breach, theft, or other unauthorized access; increases in the costs of critical raw materials and components; availability of raw materials and components; managing new product ramps and introductions for our customers; our dependence on a limited number of large customers; our ability to maintain and expand our existing relationships with leading OEMs in order to maintain and increase our revenue; increasing competition and new entrants in the market for our products; our ability to develop new or enhanced products or technologies in a timely manner that achieve market acceptance; our reliance on third parties to manufacture, assemble, and test our products and sub-components; escalating international trade tensions, new or increased tariffs and trade wars among countries; financial risks, including risks relating to currency fluctuations, credit risks and fluctuations in the market value of the Company; a sustained decline in our stock price and market capitalization may result in the impairment of certain intangible or long-lived assets; market risk associated with fluctuations in commodity prices, particularly for various precious metals used in our manufacturing operation, changes in tax laws, changes in tax rates and exposure to additional tax liabilities; and other risks, relevant factors, and uncertainties identified in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, subsequent Reports on Forms 10-Q and 8-K and our other filings we make with the
INVESTOR SUPPLEMENT - FIRST QUARTER 2024
KNOWLES CORPORATION |
|||||||||||
CONSOLIDATED STATEMENTS OF EARNINGS |
|||||||||||
(in millions, except per share amounts) |
|||||||||||
(unaudited) |
|||||||||||
|
Quarter Ended |
||||||||||
March 31,
|
|
December 31,
|
|
March 31,
|
|||||||
Revenues |
$ |
196.4 |
|
|
$ |
215.2 |
|
|
$ |
144.3 |
|
Cost of goods sold |
|
125.5 |
|
|
|
136.6 |
|
|
|
90.4 |
|
Restructuring charges - cost of goods sold |
|
1.0 |
|
|
|
0.2 |
|
|
|
0.1 |
|
Gross profit |
|
69.9 |
|
|
|
78.4 |
|
|
|
53.8 |
|
Research and development expenses |
|
20.6 |
|
|
|
19.0 |
|
|
|
20.0 |
|
Selling and administrative expenses |
|
43.5 |
|
|
|
45.4 |
|
|
|
33.8 |
|
Restructuring charges |
|
1.5 |
|
|
|
0.4 |
|
|
|
1.0 |
|
Operating expenses |
|
65.6 |
|
|
|
64.8 |
|
|
|
54.8 |
|
Operating earnings (loss) |
|
4.3 |
|
|
|
13.6 |
|
|
|
(1.0 |
) |
Interest expense, net |
|
4.4 |
|
|
|
3.2 |
|
|
|
0.8 |
|
Other (income) expense, net |
|
(0.4 |
) |
|
|
0.2 |
|
|
|
2.3 |
|
Gain on sale of asset, net |
|
(5.4 |
) |
|
|
— |
|
|
|
— |
|
Earnings (loss) before income taxes |
|
5.7 |
|
|
|
10.2 |
|
|
|
(4.1 |
) |
Provision for (benefit from) income taxes |
|
3.2 |
|
|
|
(37.2 |
) |
|
|
1.1 |
|
Net earnings (loss) |
$ |
2.5 |
|
|
$ |
47.4 |
|
|
$ |
(5.2 |
) |
|
|
|
|
|
|
||||||
Net earnings (loss) per share: |
|
|
|
|
|
||||||
Basic |
$ |
0.03 |
|
|
$ |
0.53 |
|
|
$ |
(0.06 |
) |
Diluted |
$ |
0.03 |
|
|
$ |
0.52 |
|
|
$ |
(0.06 |
) |
|
|
|
|
|
|
||||||
Weighted-average common shares outstanding: |
|
|
|
|
|
||||||
Basic |
|
89.6 |
|
|
|
90.0 |
|
|
|
91.4 |
|
Diluted |
|
90.5 |
|
|
|
90.7 |
|
|
|
91.4 |
|
KNOWLES CORPORATION |
|||||||||||
RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES (1) |
|||||||||||
(in millions, except per share amounts) |
|||||||||||
(unaudited) |
|||||||||||
|
Quarter Ended |
||||||||||
|
March 31,
|
|
December 31,
|
|
March 31,
|
||||||
Gross profit |
$ |
69.9 |
|
|
$ |
78.4 |
|
|
$ |
53.8 |
|
Gross profit as % of revenues |
|
35.6 |
% |
|
|
36.4 |
% |
|
|
37.3 |
% |
Stock-based compensation expense |
|
0.5 |
|
|
|
0.4 |
|
|
|
0.5 |
|
Restructuring charges |
|
1.0 |
|
|
|
0.2 |
|
|
|
0.1 |
|
Production transfer costs (2) |
|
0.8 |
|
|
|
0.4 |
|
|
|
— |
|
Acquisition-related costs (3) |
|
1.4 |
|
|
|
0.8 |
|
|
|
— |
|
Other (4) |
|
1.1 |
|
|
|
— |
|
|
|
— |
|
Non-GAAP gross profit |
$ |
74.7 |
|
|
$ |
80.2 |
|
|
$ |
54.4 |
|
Non-GAAP gross profit as % of revenues |
|
38.0 |
% |
|
|
37.3 |
% |
|
|
37.7 |
% |
Research and development expenses |
$ |
20.6 |
|
|
$ |
19.0 |
|
|
$ |
20.0 |
|
Stock-based compensation expense |
|
(1.5 |
) |
|
|
(1.3 |
) |
|
|
(1.7 |
) |
Intangibles amortization expense |
|
(2.1 |
) |
|
|
(2.1 |
) |
|
|
(1.6 |
) |
Acquisition-related costs (3) |
|
(0.3 |
) |
|
|
— |
|
|
|
— |
|
Other (4) |
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
Non-GAAP research and development expenses |
$ |
16.7 |
|
|
$ |
15.5 |
|
|
$ |
16.7 |
|
Selling and administrative expenses |
$ |
43.5 |
|
|
$ |
45.4 |
|
|
$ |
33.8 |
|
Stock-based compensation expense |
|
(4.7 |
) |
|
|
(5.5 |
) |
|
|
(5.6 |
) |
Intangibles amortization expense |
|
(3.8 |
) |
|
|
(2.6 |
) |
|
|
(1.3 |
) |
Acquisition-related costs (3) |
|
(2.5 |
) |
|
|
(5.6 |
) |
|
|
— |
|
Other (4) |
|
(0.1 |
) |
|
|
(0.4 |
) |
|
|
0.4 |
|
Non-GAAP selling and administrative expenses |
$ |
32.4 |
|
|
$ |
31.3 |
|
|
$ |
27.3 |
|
Operating expenses |
$ |
65.6 |
|
|
$ |
64.8 |
|
|
$ |
54.8 |
|
Stock-based compensation expense |
|
(6.2 |
) |
|
|
(6.8 |
) |
|
|
(7.3 |
) |
Intangibles amortization expense |
|
(5.9 |
) |
|
|
(4.7 |
) |
|
|
(2.9 |
) |
Restructuring charges |
|
(1.5 |
) |
|
|
(0.4 |
) |
|
|
(1.0 |
) |
Acquisition-related costs (3) |
|
(2.8 |
) |
|
|
(5.6 |
) |
|
|
— |
|
Other (4) |
|
(0.1 |
) |
|
|
(0.5 |
) |
|
|
0.4 |
|
Non-GAAP operating expenses |
$ |
49.1 |
|
|
$ |
46.8 |
|
|
$ |
44.0 |
|
Net earnings (loss) |
$ |
2.5 |
|
|
$ |
47.4 |
|
|
$ |
(5.2 |
) |
Interest expense, net |
|
4.4 |
|
|
|
3.2 |
|
|
|
0.8 |
|
Provision for (benefit from) income taxes |
|
3.2 |
|
|
|
(37.2 |
) |
|
|
1.1 |
|
Earnings (loss) before interest and income taxes |
|
10.1 |
|
|
|
13.4 |
|
|
|
(3.3 |
) |
Earnings (loss) before interest and income taxes as % of revenues |
|
5.1 |
% |
|
|
6.2 |
% |
|
|
(2.3 |
)% |
Stock-based compensation expense |
|
6.7 |
|
|
|
7.2 |
|
|
|
7.8 |
|
Intangibles amortization expense |
|
5.9 |
|
|
|
4.7 |
|
|
|
2.9 |
|
Restructuring charges |
|
2.5 |
|
|
|
0.6 |
|
|
|
1.1 |
|
Production transfer costs (2) |
|
0.8 |
|
|
|
0.4 |
|
|
|
— |
|
Acquisition-related costs (3) |
|
4.2 |
|
|
|
6.4 |
|
|
|
— |
|
Gain on sale of asset, net (5) |
|
(5.4 |
) |
|
|
— |
|
|
|
— |
|
Other (4) |
|
0.9 |
|
|
|
0.5 |
|
|
|
(0.4 |
) |
Adjusted earnings before interest and income taxes |
$ |
25.7 |
|
|
$ |
33.2 |
|
|
$ |
8.1 |
|
Adjusted earnings before interest and income taxes as % of revenues |
|
13.1 |
% |
|
|
15.4 |
% |
|
|
5.6 |
% |
Net earnings (loss) |
$ |
2.5 |
|
|
$ |
47.4 |
|
|
$ |
(5.2 |
) |
Interest expense, net |
|
4.4 |
|
|
|
3.2 |
|
|
|
0.8 |
|
Provision for (benefit from) income taxes |
|
3.2 |
|
|
|
(37.2 |
) |
|
|
1.1 |
|
Earnings (loss) before interest and income taxes |
|
10.1 |
|
|
|
13.4 |
|
|
|
(3.3 |
) |
Non-GAAP reconciling adjustments (7) |
|
15.6 |
|
|
|
19.8 |
|
|
|
11.4 |
|
Depreciation expense |
|
8.1 |
|
|
|
8.0 |
|
|
|
9.2 |
|
Adjusted earnings before interest, income taxes, depreciation, and amortization ("EBITDA") |
$ |
33.8 |
|
|
$ |
41.2 |
|
|
$ |
17.3 |
|
Adjusted EBITDA as a % of revenues |
|
17.2 |
% |
|
|
19.1 |
% |
|
|
12.0 |
% |
|
Quarter Ended |
||||||||||
|
March 31,
|
|
December 31,
|
|
March 31,
|
||||||
Provision for (benefit from) income taxes |
$ |
3.2 |
|
|
$ |
(37.2 |
) |
|
$ |
1.1 |
|
Income tax effects of non-GAAP reconciling adjustments (6) |
|
(0.5 |
) |
|
|
41.3 |
|
|
|
1.1 |
|
Non-GAAP provision for income taxes |
$ |
2.7 |
|
|
$ |
4.1 |
|
|
$ |
2.2 |
|
|
|
|
|
|
|
||||||
Net earnings (loss) |
$ |
2.5 |
|
|
$ |
47.4 |
|
|
$ |
(5.2 |
) |
Non-GAAP reconciling adjustments (7) |
|
15.6 |
|
|
|
19.8 |
|
|
|
11.4 |
|
Income tax effects of non-GAAP reconciling adjustments (6) |
|
(0.5 |
) |
|
|
41.3 |
|
|
|
1.1 |
|
Non-GAAP net earnings |
$ |
18.6 |
|
|
$ |
25.9 |
|
|
$ |
5.1 |
|
|
|
|
|
|
|
||||||
Diluted earnings (loss) per share |
$ |
0.03 |
|
|
$ |
0.52 |
|
|
$ |
(0.06 |
) |
Earnings (loss) per share non-GAAP reconciling adjustment |
|
0.17 |
|
|
|
(0.24 |
) |
|
|
0.11 |
|
Non-GAAP diluted earnings per share |
$ |
0.20 |
|
|
$ |
0.28 |
|
|
$ |
0.05 |
|
|
|
|
|
|
|
||||||
Diluted average shares outstanding |
|
90.5 |
|
|
|
90.7 |
|
|
|
91.4 |
|
Non-GAAP adjustment (8) |
|
2.2 |
|
|
|
2.2 |
|
|
|
3.3 |
|
Non-GAAP diluted average shares outstanding (8) |
|
92.7 |
|
|
|
92.9 |
|
|
|
94.7 |
|
Notes: |
|
(1) |
In addition to the GAAP financial measures included herein, Knowles has presented certain non-GAAP financial measures that exclude certain amounts that are included in the most directly comparable GAAP measures. Knowles believes that non-GAAP measures are useful as supplements to its GAAP results of operations to evaluate certain aspects of its operations and financial performance, and its management team primarily focuses on non-GAAP items in evaluating Knowles' performance for business planning purposes. Knowles also believes that these measures assist it with comparing its performance between various reporting periods on a consistent basis, as these measures remove from operating results the impact of items that, in Knowles' opinion, do not reflect its core operating performance. Knowles believes that its presentation of non-GAAP financial measures is useful because it provides investors and securities analysts with the same information that Knowles uses internally for purposes of assessing its core operating performance. |
(2) |
Production transfer costs represent duplicate costs incurred to migrate manufacturing to facilities primarily within |
(3) |
These expenses are related to the acquisition of Cornell Dubilier by the Precision Devices segment. These expenses include ongoing costs to facilitate integration, the amortization of fair value adjustments to inventory, and costs incurred by the Company to carry out this transaction. |
(4) |
Other expenses include non-recurring professional service fees related to the execution of various reorganization projects, foreign currency exchange rate impacts on restructuring balances, and the ongoing net lease cost (income) related to facilities not used in operations. |
(5) |
This gain is related to the sale of intellectual property previously used in the Intelligent Audio product line, which is included within the Consumers MEMS Microphones segment. |
(6) |
Income tax effects of non-GAAP reconciling adjustments are calculated using the applicable tax rates in the jurisdictions of the underlying adjustments. |
(7) |
The non-GAAP reconciling adjustments are those adjustments made to reconcile Earnings (loss) before interest and income taxes to Adjusted earnings before interest and income taxes. |
(8) |
The number of shares used in the diluted per share calculations on a non-GAAP basis excludes the impact of stock-based compensation expense expected to be incurred in future periods and not yet recognized in the financial statements, which would otherwise be assumed to be used to repurchase shares under the GAAP treasury stock method. |
KNOWLES CORPORATION |
|||||||
CONSOLIDATED BALANCE SHEETS |
|||||||
(in millions, except share and per share amounts) |
|||||||
(unaudited) |
|||||||
|
March 31, 2024 |
|
December 31, 2023 |
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
122.1 |
|
|
$ |
87.3 |
|
Receivables, net of allowances of |
|
130.8 |
|
|
|
135.3 |
|
Inventories, net |
|
203.4 |
|
|
|
196.4 |
|
Prepaid and other current assets |
|
11.6 |
|
|
|
9.8 |
|
Total current assets |
|
467.9 |
|
|
|
428.8 |
|
Property, plant, and equipment, net |
|
166.3 |
|
|
|
175.4 |
|
Goodwill |
|
540.5 |
|
|
|
540.7 |
|
Intangible assets, net |
|
183.0 |
|
|
|
189.4 |
|
Operating lease right-of-use assets |
|
11.3 |
|
|
|
13.1 |
|
Other assets and deferred charges |
|
114.4 |
|
|
|
115.4 |
|
Total assets |
$ |
1,483.4 |
|
|
$ |
1,462.8 |
|
|
|
|
|
||||
Current liabilities: |
|
|
|
||||
Current maturities of long-term debt |
$ |
48.0 |
|
|
$ |
47.1 |
|
Accounts payable |
|
67.8 |
|
|
|
51.3 |
|
Accrued compensation and employee benefits |
|
25.3 |
|
|
|
33.0 |
|
Operating lease liabilities |
|
4.5 |
|
|
|
5.1 |
|
Other accrued expenses |
|
22.7 |
|
|
|
25.0 |
|
Federal and other taxes on income |
|
2.0 |
|
|
|
3.1 |
|
Total current liabilities |
|
170.3 |
|
|
|
164.6 |
|
Long-term debt |
|
245.2 |
|
|
|
224.1 |
|
Deferred income taxes |
|
0.7 |
|
|
|
0.7 |
|
Long-term operating lease liabilities |
|
7.3 |
|
|
|
8.2 |
|
Other liabilities |
|
26.0 |
|
|
|
31.1 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders' equity: |
|
|
|
||||
Preferred stock - |
|
— |
|
|
|
— |
|
Common stock - |
|
1.0 |
|
|
|
1.0 |
|
Treasury stock - at cost; 8,204,832 shares at March 31, 2024 and December 31, 2023 |
|
(151.2 |
) |
|
|
(151.2 |
) |
Additional paid-in capital |
|
1,690.8 |
|
|
|
1,689.9 |
|
Accumulated deficit |
|
(373.3 |
) |
|
|
(375.8 |
) |
Accumulated other comprehensive loss |
|
(133.4 |
) |
|
|
(129.8 |
) |
Total stockholders' equity |
|
1,033.9 |
|
|
|
1,034.1 |
|
Total liabilities and stockholders' equity |
$ |
1,483.4 |
|
|
$ |
1,462.8 |
|
KNOWLES CORPORATION |
|||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(in millions) |
|||||||
(unaudited) |
|||||||
|
Three Months Ended March 31, |
||||||
|
2024 |
|
2023 |
||||
Operating Activities |
|
|
|
||||
Net earnings (loss) |
$ |
2.5 |
|
|
$ |
(5.2 |
) |
Adjustments to reconcile net earnings (loss) to cash from operating activities: |
|||||||
Depreciation and amortization |
|
14.0 |
|
|
|
12.1 |
|
Stock-based compensation |
|
6.7 |
|
|
|
7.8 |
|
Deferred income taxes |
|
3.3 |
|
|
|
4.1 |
|
Non-cash interest expense and amortization of debt issuance costs |
|
2.1 |
|
|
|
0.3 |
|
Gain on sale of asset |
|
(7.2 |
) |
|
|
— |
|
Non-cash restructuring charges |
|
0.4 |
|
|
|
— |
|
Other, net |
|
(0.2 |
) |
|
|
1.8 |
|
Changes in assets and liabilities (excluding effects of foreign exchange): |
|
|
|
||||
Receivables, net |
|
4.4 |
|
|
|
25.3 |
|
Inventories, net |
|
(9.3 |
) |
|
|
(38.0 |
) |
Prepaid and other current assets |
|
(1.3 |
) |
|
|
(2.7 |
) |
Accounts payable |
|
17.2 |
|
|
|
27.8 |
|
Accrued compensation and employee benefits |
|
(7.6 |
) |
|
|
(5.9 |
) |
Other accrued expenses |
|
(1.7 |
) |
|
|
(3.8 |
) |
Accrued taxes |
|
(0.1 |
) |
|
|
(0.7 |
) |
Other non-current assets and non-current liabilities |
|
(5.9 |
) |
|
|
(1.0 |
) |
Net cash provided by operating activities |
|
17.3 |
|
|
|
21.9 |
|
|
|
|
|
||||
Investing Activities |
|
|
|
||||
Proceeds from the sale of asset |
|
7.2 |
|
|
|
— |
|
Capital expenditures |
|
(3.4 |
) |
|
|
(3.9 |
) |
Purchase of investments |
|
(0.5 |
) |
|
|
— |
|
Proceeds from the sale of investments |
|
0.5 |
|
|
|
— |
|
Net cash provided by (used in) investing activities |
|
3.8 |
|
|
|
(3.9 |
) |
|
|
|
|
||||
Financing Activities |
|
|
|
||||
Payments under revolving credit facility |
|
(20.0 |
) |
|
|
— |
|
Borrowings under revolving credit facility |
|
40.0 |
|
|
|
— |
|
Repurchase of common stock |
|
— |
|
|
|
(7.5 |
) |
Tax on restricted and performance stock unit vesting and stock option exercises |
|
(5.8 |
) |
|
|
(6.0 |
) |
Payments of debt issuance costs |
|
— |
|
|
|
(1.6 |
) |
Payments of finance lease obligations |
|
(0.6 |
) |
|
|
(0.6 |
) |
Proceeds from exercise of stock options |
|
— |
|
|
|
1.4 |
|
Net cash provided by (used in) financing activities |
|
13.6 |
|
|
|
(14.3 |
) |
|
|
|
|
||||
Effect of exchange rate changes on cash and cash equivalents |
|
0.1 |
|
|
|
0.1 |
|
|
|
|
|
||||
Net increase in cash and cash equivalents |
|
34.8 |
|
|
|
3.8 |
|
Cash and cash equivalents at beginning of period |
|
87.3 |
|
|
|
48.2 |
|
Cash and cash equivalents at end of period |
$ |
122.1 |
|
|
$ |
52.0 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240501195108/en/
Financial Contact:
Sarah Cook
Knowles Investor Relations
Email: investorrelations@knowles.com
Source: Knowles Corporation
FAQ
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