Key Tronic Corporation Announces Results for the First Quarter of Fiscal Year 2025
Key Tronic (KTCC) reported Q1 FY2025 results with revenue of $131.6 million, down from $150.1 million in Q1 FY2024. Despite revenue decline due to program delays, the company showed improved profitability with gross margins of 10.1% and operating margins of 3.4%. Net income reached $1.1 million ($0.10 per share), up from $0.3 million. Mexico facilities production increased 10% sequentially, benefiting from headcount reductions and favorable peso exchange rates. The company won new programs in manufacturing equipment, vehicle lighting, and pest control. For Q2 FY2025, Key Tronic expects revenue between $130-140 million with earnings of $0.05-0.15 per share.
Key Tronic (KTCC) ha riportato i risultati del primo trimestre dell'anno fiscale 2025 con un fatturato di 131,6 milioni di dollari, in calo rispetto ai 150,1 milioni di dollari del primo trimestre dell'anno fiscale 2024. Nonostante la diminuzione dei ricavi dovuta ai ritardi nei programmi, l'azienda ha mostrato una redditività migliorata con margini lordi del 10,1% e margini operativi del 3,4%. Il reddito netto ha raggiunto 1,1 milioni di dollari (0,10 dollari per azione), in aumento rispetto ai 0,3 milioni. La produzione negli stabilimenti in Messico è aumentata del 10% rispetto al trimestre precedente, beneficiando di riduzioni della forza lavoro e di tassi di cambio favorevoli del peso. L'azienda ha vinto nuovi programmi nel settore della produzione di attrezzature, dell'illuminazione per veicoli e del controllo dei parassiti. Per il secondo trimestre dell'anno fiscale 2025, Key Tronic prevede ricavi compresi tra 130 e 140 milioni di dollari, con utili tra 0,05 e 0,15 dollari per azione.
Key Tronic (KTCC) reportó los resultados del primer trimestre del año fiscal 2025 con ingresos de 131,6 millones de dólares, en comparación con 150,1 millones de dólares en el primer trimestre del año fiscal 2024. A pesar de la caída en los ingresos debido a retrasos en los programas, la compañía mostró una rentabilidad mejorada con márgenes brutos del 10,1% y márgenes operativos del 3,4%. El ingreso neto alcanzó 1,1 millones de dólares (0,10 dólares por acción), aumentando desde 0,3 millones. La producción en las instalaciones de México aumentó un 10% secuencialmente, beneficiándose de reducciones en la plantilla y de tipos de cambio favorables del peso. La empresa ganó nuevos programas en equipos de manufactura, iluminación de vehículos y control de plagas. Para el segundo trimestre del año fiscal 2025, Key Tronic espera ingresos entre 130 y 140 millones de dólares, con ganancias de 0,05 a 0,15 dólares por acción.
Key Tronic (KTCC)은 2025 회계연도 1분기 실적을 발표하며 수익이 1억 3160만 달러에 이르렀고, 이는 2024 회계연도 1분기에서의 1억 5010만 달러에서 감소한 수치라고 밝혔습니다. 프로그램 지연으로 인한 수익 감소에도 불구하고, 회사는 10.1%의 총 마진과 3.4%의 운영 마진으로 향상된 수익성을 보였습니다. 순이익은 110만 달러 (주당 0.10 달러)로, 이전의 30만 달러에서 증가했습니다. 멕시코 공장의 생산량은 인력 감축과 유리한 페소 환율로 인해 전분기 대비 10% 증가했습니다. 이 회사는 제조 장비, 차량 조명 및 해충 방제 분야에서 새로운 프로그램을 수주했습니다. 2025 회계연도 2분기에는 Key Tronic이 1억 3천만 달러에서 1억 4천만 달러 사이의 수익과 주당 0.05에서 0.15 달러 사이의 이익을 예상하고 있습니다.
Key Tronic (KTCC) a publié les résultats du premier trimestre de l'exercice 2025, avec un chiffre d'affaires de 131,6 millions de dollars, en baisse par rapport à 150,1 millions de dollars au premier trimestre de l'exercice 2024. Malgré cette baisse de chiffre d'affaires due à des retards dans les programmes, l'entreprise a montré une rentabilité améliorée avec des marges brutes de 10,1% et des marges opérationnelles de 3,4%. Le bénéfice net a atteint 1,1 million de dollars (0,10 dollar par action), en hausse par rapport à 0,3 million. La production dans les installations au Mexique a augmenté de 10 % par rapport au trimestre précédent, bénéficiant de réductions d'effectifs et de taux de change du peso favorables. L'entreprise a remporté de nouveaux programmes dans la fabrication d'équipements, l'éclairage des véhicules et la lutte antiparasitaire. Pour le deuxième trimestre de l'exercice 2025, Key Tronic s'attend à des revenus compris entre 130 et 140 millions de dollars, avec des bénéfices de 0,05 à 0,15 dollar par action.
Key Tronic (KTCC) hat die Ergebnisse des ersten Quartals des Geschäftsjahres 2025 bekannt gegeben, mit einem Umsatz von 131,6 Millionen Dollar, was einem Rückgang von 150,1 Millionen Dollar im ersten Quartal des Geschäftsjahres 2024 entspricht. Trotz eines Rückgangs der Einnahmen aufgrund von Programmverzögerungen zeigte das Unternehmen eine verbesserte Rentabilität mit Bruttomargen von 10,1% und Betriebsmargen von 3,4%. Der Nettogewinn erreichte 1,1 Millionen Dollar (0,10 Dollar pro Aktie), ein Anstieg gegenüber 0,3 Millionen. Die Produktion in den mexikanischen Anlagen stieg sequenziell um 10%, profitiert von Personalabbau und günstigen Peso-Wechselkursen. Das Unternehmen gewann neue Programme in der Herstellung von Ausrüstung, Fahrzeugbeleuchtung und Schädlingsbekämpfung. Für das zweite Quartal des Geschäftsjahres 2025 erwartet Key Tronic Einnahmen zwischen 130 und 140 Millionen Dollar bei Gewinnen von 0,05 bis 0,15 Dollar pro Aktie.
- Gross margins improved to 10.1% from 7.2% YoY
- Operating margins increased to 3.4% from 2.2% YoY
- Net income grew to $1.1M from $0.3M YoY
- Mexico facilities production increased 10% QoQ
- New program wins in multiple sectors
- Revenue declined 12.3% YoY to $131.6M from $150.1M
- Customer-driven delays impacted revenue by approximately $9M
- Q2 guidance suggests potential continued revenue pressure
Insights
Key Tronic's Q1 FY2025 results show mixed performance with notable improvements in operational efficiency despite revenue challenges. Revenue declined to
The company's strategic initiatives are yielding positive results: Mexican facility production increased by 10%, workforce reductions and supply chain improvements have enhanced efficiency and inventory management has improved. EPS grew to
The Q2 FY2025 guidance of
New Program Wins and Improving Gross Margins
SPOKANE VALLEY, Wash., Nov. 05, 2024 (GLOBE NEWSWIRE) -- Key Tronic Corporation (Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today announced its results for the quarter ended September 28, 2024.
For the first quarter of fiscal year 2025, Key Tronic reported total revenue of
The Company saw significant improvement in its production efficiencies compared to the first quarter of fiscal year 2024, primarily as a result of recent headcount reductions, continued improvements in the supply chain and a favorable decline in the exchange rate of the Mexican Peso. Gross margins were
Net income was
“While we did not meet revenue expectations in our first quarter of fiscal 2025 due to unavoidable delays for a few programs, we are pleased to see our improved operating efficiencies, margins, and liquidity,” said Brett Larsen, President and CEO. “The recent workforce reductions in Mexico, trimming of non-profitable programs, and making a concerted effort to improve working capital are starting to pay off. We also continued to reduce our inventories, which are now much more in line with our revenue levels. Over the longer term, we expect that these strategic changes will improve our overall profitability.”
“During the first quarter, we also continued to win new business, including new programs in manufacturing equipment, vehicle lighting, and commercial pest control. We believe we are well positioned for increased growth and profitability in coming periods.”
The financial data presented for the first quarter of fiscal 2025 should be considered preliminary and could be subject to change, as the Company’s independent auditor has not completed their review procedures.
Business Outlook
For the second quarter of fiscal 2025, Key Tronic expects to report revenue in the range of
Conference Call
Key Tronic will host a conference call to discuss its financial results at 2:00 PM Pacific (5:00 PM Eastern) today. A broadcast of the conference call will be available at www.keytronic.com under “Investor Relations” or by calling 888-394-8218 or +1-313-209-4906 (Access Code: 7268667). The Company will also reference accompanying slides that can be viewed with the webcast at www.keytronic.com under “Investor Relations”. A replay will be available at www.keytronic.com under “Investor Relations”.
About Key Tronic
Key Tronic is a leading contract manufacturer offering value-added design and manufacturing services from its facilities in the United States, Mexico, China and Vietnam. The Company provides its customers with full engineering services, materials management, worldwide manufacturing facilities, assembly services, in-house testing, and worldwide distribution. Its customers include some of the world’s leading original equipment manufacturers. For more information about Key Tronic visit: www.keytronic.com
Forward-Looking Statements
Some of the statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to those including such words as aims, anticipates, believes, continues, estimates, expects, hopes, intends, plans, predicts, projects, targets, will, or would, similar verbs, or nouns corresponding to such verbs, which may be forward looking. Forward-looking statements also include other passages that are relevant to expected future events, performances, and actions or that can only be fully evaluated by events that will occur in the future. Forward-looking statements in this release include, without limitation, the Company’s statements regarding its expectations with respect to financial conditions and results, including revenue and earnings, cost savings from headcount reduction and the Mexican Peso exchange rate, demand for certain products and the effectiveness of some of its programs, business from customers and programs, and impacts from operational streamlining and efficiencies. There are many factors, risks and uncertainties that could cause actual results to differ materially from those predicted or projected in forward-looking statements, including but not limited to: the future of the global economic environment and its impact on our customers and suppliers; the availability of components from the supply chain; the availability of a healthy workforce; the accuracy of suppliers’ and customers’ forecasts; development and success of customers’ programs and products; timing and effectiveness of ramping of new programs; success of new-product introductions; the risk of legal proceedings or governmental investigations relating to the previously reported financial statement restatements and related material weaknesses, the May 2024 cybersecurity incident and the subject of the internal investigation by the Company’s Audit Committee and related or other unrelated matters; acquisitions or divestitures of operations or facilities; technology advances; changes in pricing policies by the Company, its competitors, customers or suppliers; impact of new governmental legislation and regulation, including tax reform, tariffs and related activities, such trade negotiations and other risks; and other factors, risks, and uncertainties detailed from time to time in the Company’s SEC filings.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared in accordance with generally accepted accounting principles in the United States (GAAP), we use certain non-GAAP financial measures, adjusted net income and adjusted net income per share, diluted. We provide these non-GAAP financial measures because we believe they provide greater transparency related to our core operations and represent supplemental information used by management in its financial and operational decision making. We exclude (or include) certain items in our non-GAAP financial measures as we believe the net result is a measure of our core business. We believe this facilitates operating performance comparisons from period to period by eliminating potential differences caused by the existence and timing of certain income and expense items that would not otherwise be apparent on a GAAP basis. Non-GAAP performance measures should be considered in addition to, and not as a substitute for, results prepared in accordance with GAAP. We strongly encourage investors and shareholders to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. Our non-GAAP financial measures may be different from those reported by other companies. See the table below entitled “Reconciliation of GAAP to non-GAAP measures” for reconciliations of adjusted net income to the most directly comparable GAAP measure, which is GAAP net income, and the computation of adjusted net income per share, diluted.
| KEY TRONIC CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited) | |||||||
| Three Months Ended | |||||||
| September 28, 2024 | September 30, 2023 | ||||||
| Net sales | $ | 131,558 | $ | 150,112 | |||
| Cost of sales | 118,255 | 139,250 | |||||
| Gross profit | 13,303 | 10,862 | |||||
| Research, development and engineering expenses | 2,289 | 2,241 | |||||
| Selling, general and administrative expenses | 6,570 | 5,784 | |||||
| Gain on insurance proceeds, net of losses | — | (431 | ) | ||||
| Total operating expenses | 8,859 | 7,594 | |||||
| Operating income | 4,444 | 3,268 | |||||
| Interest expense, net | 3,263 | 3,011 | |||||
| Income before income taxes | 1,181 | 257 | |||||
| Income tax (benefit) provision | 57 | (78 | ) | ||||
| Net income | $ | 1,124 | $ | 335 | |||
| Net income per share — Basic | $ | 0.10 | $ | 0.03 | |||
| Weighted average shares outstanding — Basic | 10,762 | 10,762 | |||||
| Net income per share — Diluted | $ | 0.10 | $ | 0.03 | |||
| Weighted average shares outstanding — Diluted | 10,762 | 11,003 | |||||
| KEY TRONIC CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) | ||||||||
| September 28, 2024 | June 29, 2024 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 6,555 | $ | 4,752 | ||||
| Trade receivables, net of credit losses of | 133,984 | 132,559 | ||||||
| Contract assets | 23,626 | 21,250 | ||||||
| Inventories, net | 95,845 | 105,099 | ||||||
| Other, net of credit losses of | 28,273 | 24,739 | ||||||
| Total current assets | 288,283 | 288,399 | ||||||
| Property, plant and equipment, net | 27,910 | 28,806 | ||||||
| Operating lease right-of-use assets, net | 14,612 | 15,416 | ||||||
| Other assets: | ||||||||
| Deferred income tax asset | 18,394 | 17,376 | ||||||
| Other | 6,735 | 5,346 | ||||||
| Total other assets | 25,129 | 22,722 | ||||||
| Total assets | $ | 355,934 | $ | 355,343 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 83,768 | $ | 79,394 | ||||
| Accrued compensation and vacation | 6,870 | 6,510 | ||||||
| Current portion of long-term debt | 3,057 | 3,123 | ||||||
| Other | 18,450 | 15,149 | ||||||
| Total current liabilities | 112,145 | 104,176 | ||||||
| Long-term liabilities: | ||||||||
| Long-term debt, net | 109,675 | 116,383 | ||||||
| Operating lease liabilities | 9,573 | 10,312 | ||||||
| Deferred income tax liability | 74 | 263 | ||||||
| Other long-term obligations | 124 | 219 | ||||||
| Total long-term liabilities | 119,446 | 127,177 | ||||||
| Total liabilities | 231,591 | 231,353 | ||||||
| Shareholders’ equity: | ||||||||
| Common stock, no par value—shares authorized 25,000; issued and outstanding 10,762 and 10,762 shares, respectively | 47,351 | 47,284 | ||||||
| Retained earnings | 78,045 | 76,921 | ||||||
| Accumulated other comprehensive income (loss) | (1,053 | ) | (215 | ) | ||||
| Total shareholders’ equity | 124,343 | 123,990 | ||||||
| Total liabilities and shareholders’ equity | $ | 355,934 | $ | 355,343 | ||||
| KEY TRONIC CORPORATION AND SUBSIDIARIES Reconciliation of GAAP to non-GAAP measures (In thousands, except per share amounts) (Unaudited) | |||||||
| Three Months Ended | |||||||
| September 28, 2024 | September 30, 2023 | ||||||
| GAAP net income | $ | 1,124 | $ | 335 | |||
| Gain on insurance proceeds (net of losses) | — | (431 | ) | ||||
| Stock-based compensation expense | 67 | 59 | |||||
| Income tax effect of non-GAAP adjustments (1) | (13 | ) | 74 | ||||
| Adjusted net income: | $ | 1,178 | $ | 37 | |||
| Adjusted net income per share — non-GAAP Diluted | $ | 0.11 | $ | 0.00 | |||
| Weighted average shares outstanding — Diluted | 10,762 | 11,003 | |||||
| (1) Income tax effects are calculated using an effective tax rate of | |||||||
| CONTACTS: | Tony Voorhees | Michael Newman | ||
| Chief Financial Officer | Investor Relations | |||
| Key Tronic Corporation | StreetConnect | |||
| (509)-927-5345 | (206) 729-3625 |
FAQ
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