Methode Electronics, Inc. Reports Fiscal 2024 Third Quarter Financial Results
- Net sales for Methode Electronics, Inc. in Q3 fiscal 2024 were $259.5 million.
- Electric and hybrid vehicle applications constituted 19% of net sales.
- The company reported a net loss of $11.6 million, equivalent to $0.33 per diluted share.
- Free cash flow for the quarter was $12.2 million.
- The company purchased 130,592 shares of its common stock for $3.0 million.
- Forward-looking guidance was suspended due to ongoing operational inefficiencies and market challenges.
- The CEO, Avi Avula, aims to restore profitability by reducing hard costs and increasing free cash flow.
- Net debt for Methode Electronics, Inc. was $208.4 million at the end of the quarter.
- Net sales decreased compared to the same quarter in fiscal 2023.
- The company reported a net loss of $11.6 million, a significant decline from the net income in the same quarter of fiscal 2023.
- Adjusted EBITDA and EBITDA decreased in Q3 fiscal 2024 compared to the same quarter in fiscal 2023.
- The company's loss from operations was $3.0 million, a significant decrease from the income in the same quarter of fiscal 2023.
Insights
The financial results reported by Methode Electronics indicate a significant downturn in their fiscal third quarter performance, with a net loss of $11.6 million compared to a net income of $19.9 million in the prior year. A critical factor contributing to this loss appears to be operational inefficiencies within the Automotive segment, which have led to increased costs and reduced profitability. The reported net sales decrease of 15.5% (excluding acquisitions and currency translation) is a substantial contraction, signaling potential issues in demand and execution.
Investors should note the sales decline in the Automotive segment, particularly due to program roll-offs and weak demand in electric vehicle (EV) and e-bike markets. This could raise concerns about the company's ability to adapt to shifting market dynamics. The purchase of 130,592 shares for $3.0 million indicates a share buyback strategy, which might be viewed as management's confidence in the intrinsic value of the company or an attempt to support the stock price. However, the suspension of forward-looking guidance may increase investor uncertainty about the company's future performance.
Methode Electronics' exposure to the automotive industry, particularly the electric and hybrid vehicle markets, is both an opportunity and a risk. The reported 19% of net sales from EV applications implies the company's strategic positioning in a growing industry. However, the decrease in sales from the previous year suggests that the company is not fully capitalizing on the sector's growth, possibly due to competitive pressures or internal challenges.
The company's efforts to restore profitability by reducing hard costs and disposing of non-critical assets could improve the financial standing in the short term. However, the success of these measures in the long term will likely depend on the company's ability to address the underlying operational inefficiencies and adapt to market changes. The mention of a 'thorough review of the entire portfolio' suggests a strategic pivot that may be necessary to align with market trends and customer needs.
The reported operational inefficiencies in Methode Electronics' Automotive segment are a significant concern. These inefficiencies, which include inventory adjustments, scrap expenses and higher labor and freight costs, have directly impacted the bottom line. It is imperative for the company to implement process improvements and cost optimization strategies. The CEO's focus on reducing inventory and increasing free cash flow is a step in the right direction, as it could help in stabilizing the company's financials and preparing for a more efficient operational model.
Operational challenges highlighted in the report, such as program launch delays, are often symptomatic of deeper issues within production and supply chain processes. Addressing these will be critical for Methode to improve margins and regain profitability. The company's ability to navigate these operational headwinds while maintaining quality and customer satisfaction will be key to its recovery and future success.
CHICAGO, March 07, 2024 (GLOBE NEWSWIRE) -- Methode Electronics, Inc. (NYSE: MEI), a leading global supplier of custom-engineered solutions for user interface, LED lighting and power distribution applications, today announced financial results for the third quarter of fiscal 2024 ended January 27, 2024.
Fiscal Third Quarter 2024 Highlights
- Net sales were
$259.5 million - Electric and hybrid vehicle applications were 19 percent of net sales
- Net loss was
$11.6 million , or$0.33 per diluted share - Free cash flow was
$12.2 million - Company purchased 130,592 shares of its common stock for
$3.0 million - Forward-looking guidance suspended
Management Comments
President and Chief Executive Officer Avi Avula said, “Our sales in the quarter were impacted by auto program roll-offs and persistent demand weakness in the e-bike and data center markets. While EV activity was a stable percentage of our sales, they were down from the previous year on a dollar basis. The lower sales volume and the impact from our ongoing operational inefficiencies in the Automotive segment, which were a combination of lingering challenges from the first half of the fiscal year and costs from program launch delays, drove the net loss in the quarter. Despite these challenges, we returned to positive free cash flow in the quarter.”
Mr. Avula added, “Given ongoing operational inefficiencies, the looming market headwinds in EV, and my recent appointment as CEO, we have suspended guidance. Right now, my primary goal is to restore profitability, starting with an intensive review of and quick actions to reduce hard costs, including items like headcount and various discretionary expenses, and to dispose of non-critical assets. We will also work to reduce working capital, particularly inventory, and increase free cash flow. This will be closely followed by an expeditious, but thorough review of the entire portfolio. We plan to share an update on our business review when we report fiscal fourth quarter results in June. We expect to resume guidance in the near future.”
Mr. Avula concluded, “While I have been at Methode only a month, I am very excited and energized by the potential of the business. Our company foundation is strong with a rich legacy of innovation, close customer relationships, and an unwavering commitment to excellence. I look forward to building on that foundation and charting a course towards even greater success for the organization.”
Consolidated Fiscal Third Quarter 2024 Financial Results
Methode's net sales were
Selling and administrative expense as a percentage of sales was 13.1 percent, compared to 11.7 percent in the same quarter of fiscal 2023. Selling and administrative expense increased
Loss from operations was
Net loss was
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization of Intangibles), a non-GAAP financial measure, was
Debt was
Net cash provided by operating activities was
The company purchased and retired 130,592 shares of stock for
Segment Fiscal Third Quarter 2024 Financial Results
Comparing the Automotive segment’s quarter to the same quarter of fiscal 2023,
- Net sales were
$139.7 million , down from$176.5 million . Net sales decreased by$36.8 million or20.8% mainly due to lower volume in North America and Asia primarily related to program roll-offs and EV demand weakness and in Europe related to lower sensor sales resulting from an overstocked e-bike market. Partially offsetting the decline was a favorable foreign currency translation of$1.1 million . - Loss from operations was
$11.0 million , down from income from operations of$18.7 million . Loss from operations was a negative7.9% of net sales, down from a positive10.6% primarily due to lower sales volume and costs resulting from the operational inefficiencies, mainly in North America, that occurred in the first and second fiscal quarters and continued in the third fiscal quarter. These inefficiencies resulted in inventory adjustments, scrap expenses, and higher labor and freight costs.
Comparing the Industrial segment’s quarter to the same quarter of fiscal 2023,
- Net sales were
$107.1 million , up from$91.0 million . The acquisition of the Nordic Lights business contributed$21.2 million and favorable foreign currency translation contributed$0.4 million to the sales increase. Net of the acquisition and foreign currency translation, net sales decreased by$5.5 million or6.0% driven primarily by lower demand for power distribution products in the EV and data center markets. - Income from operations was
$18.9 million , down from$22.3 million . The acquisition of the Nordic Lights business contributed$1.6 million . Income from operations was17.6% of net sales, down from24.5% mainly due to product sales mix.
Comparing the Interface segment’s quarter to the same quarter of fiscal 2023,
- Net sales were
$12.7 million , up from$12.0 million . The increase was mainly due to higher volume of appliance products. - Income from operations was
$1.5 million , up from$1.0 million . Income from operations was11.8% of net sales, up from8.3% . Both increases were mainly due to the higher sales volume.
Guidance
Due to the recent transition at the CEO position and the various market and operational challenges the business is facing, the company has suspended forward-looking guidance. Any and all previous guidance provided by the company should no longer be relied upon.
Conference Call
The company will conduct a conference call and webcast to review financial and operational highlights led by its President and Chief Executive Officer, Avi Avula, and Chief Financial Officer, Ronald L. G. Tsoumas, today at 10:00 a.m. CST.
To participate in the conference call, please dial 888-506-0062 (domestic) or 973-528-0011 (international) at least five minutes prior to the start of the event. A simultaneous webcast can be accessed through the company’s website, www.methode.com, on the Investors page.
A replay of the teleconference will be available shortly after the call through March 21, 2024, by dialing 877-481-4010 and providing passcode 49943. A webcast replay will also be available through the company’s website, www.methode.com, on the Investors page.
About Methode Electronics, Inc.
Methode Electronics, Inc. (NYSE: MEI) is a leading global supplier of custom-engineered solutions with sales, engineering and manufacturing locations in North America, Europe, Middle East and Asia. We design, engineer, and produce mechatronic products for OEMs utilizing our broad range of technologies for user interface, LED lighting system, power distribution and sensor applications.
Our solutions are found in the end markets of transportation (including automotive, commercial vehicle, e-bike, aerospace, bus, and rail), cloud computing infrastructure, construction equipment, and consumer appliance. Our business is managed on a segment basis, with those segments being Automotive, Industrial, and Interface.
Non-GAAP Financial Measures
To supplement the company's financial statements presented in accordance with generally accepted accounting principles in the United States (“GAAP”), Methode uses Adjusted Net Income (Loss), Adjusted Earnings (Loss) Per Share, Adjusted Pre-Tax Income (Loss), Adjusted Income (Loss) from Operations, EBITDA, Adjusted EBITDA, Net Debt and Free Cash Flow as non-GAAP measures. Reconciliation to the nearest GAAP measures of all non-GAAP measures included in this press release can be found at the end of this release. Methode's definitions of these non-GAAP measures may differ from similarly titled measures used by others. These non-GAAP measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP. The company believes that these non-GAAP measures are useful because they (i) provide both management and investors meaningful supplemental information regarding financial performance by excluding certain expenses and benefits that may not be indicative of recurring core business operating results, (ii) permit investors to view Methode's performance using the same tools that management uses to evaluate its past performance, reportable business segments and prospects for future performance (iii) are commonly used by other companies in our industry and provide a comparison for investors to the company’s performance versus its competitors and (iv) otherwise provide supplemental information that may be useful to investors in evaluating Methode.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect, when made, our current views with respect to current events and financial performance. Such forward-looking statements are subject to many risks, uncertainties and factors relating to our operations and business environment, which may cause our actual results to be materially different from any future results, expressed or implied, by such forward-looking statements. All statements that address future operating, financial or business performance or our strategies or expectations are forward-looking statements. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “potential,” “outlook,” “upcoming” or “continue,” and other comparable terminology. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following:
- Dependence on our supply chain, including semiconductor suppliers;
- Impact from pandemics, such as the COVID-19 pandemic;
- Dependence on the automotive and commercial vehicle industries;
- Impact from inflation;
- Dependence on a small number of large customers, including one large automotive customer;
- Risks relating to our use of requirements contracts;
- Failure to attract and retain qualified personnel;
- Risks related to conducting global operations;
- Potential work stoppages;
- Dependence on the availability and price of materials;
- Timing, quality and cost of new program launches;
- Ability to compete effectively;
- Ability to withstand pricing pressures, including price reductions;
- Our lengthy sales cycle;
- Ability to successfully benefit from acquisitions and divestitures;
- Impact from production delays or cancelled orders;
- Investment in programs prior to the recognition of revenue;
- Electric vehicle ("EV") adoption rates;
- Ability to withstand business interruptions;
- Breaches to our information technology systems or service interruptions;
- Ability to keep pace with rapid technological changes;
- Ability to protect our intellectual property;
- Costs associated with environmental, health and safety regulations;
- International trade disputes resulting in tariffs and our ability to mitigate tariffs;
- Impact from climate change and related regulations;
- Ability to avoid design or manufacturing defects;
- Ability to remediate a material weakness in our internal control over financial reporting;
- Recognition of goodwill and other intangible asset impairment charges;
- Ability to manage our debt levels and comply with restrictions and covenants under our credit agreement;
- Interest rate changes and variable rate instruments;
- Currency fluctuations;
- Adjustments to compensation expense for performance-based awards;
- Timing and magnitude of costs associated with restructuring activities;
- Income tax rate fluctuations; and
- Judgments related to accounting for tax positions.
Additional details and factors are discussed under the caption “Risk Factors” in our Annual Report. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us. Any forward-looking statements made by us speak only as of the date on which they are made. We are under no obligation to, and expressly disclaim any obligation to, update or alter our forward-looking statements, whether as a result of new information, subsequent events or otherwise.
For Methode Electronics, Inc.
Robert K. Cherry
Vice President, Investor Relations
rcherry@methode.com
+1-708-457-4030
| METHODE ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (unaudited) (in millions, except per-share data) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| January 27, 2024 | January 28, 2023 | January 27, 2024 | January 28, 2023 | |||||||||||||
| Net sales | $ | 259.5 | $ | 280.1 | $ | 837.2 | $ | 878.4 | ||||||||
| Cost of products sold | 222.5 | 215.2 | 693.9 | 677.6 | ||||||||||||
| Gross profit | 37.0 | 64.9 | 143.3 | 200.8 | ||||||||||||
| Selling and administrative expenses | 33.9 | 32.9 | 119.3 | 104.8 | ||||||||||||
| Goodwill impairment | — | — | 56.5 | — | ||||||||||||
| Amortization of intangibles | 6.1 | 4.7 | 18.0 | 14.1 | ||||||||||||
| (Loss) income from operations | (3.0 | ) | 27.3 | (50.5 | ) | 81.9 | ||||||||||
| Interest expense, net | 5.0 | 0.8 | 12.2 | 1.3 | ||||||||||||
| Other expense (income), net | 2.5 | 3.5 | 2.3 | (1.7 | ) | |||||||||||
| Pre-tax (loss) income | (10.5 | ) | 23.0 | (65.0 | ) | 82.3 | ||||||||||
| Income tax expense | 1.1 | 3.1 | 1.0 | 13.3 | ||||||||||||
| Net (loss) income | (11.6 | ) | 19.9 | (66.0 | ) | 69.0 | ||||||||||
| Net income attributable to redeemable noncontrolling interest | — | — | — | — | ||||||||||||
| Net (loss) income attributable to Methode | $ | (11.6 | ) | $ | 19.9 | $ | (66.0 | ) | $ | 69.0 | ||||||
| (Loss) income per share attributable to Methode: | ||||||||||||||||
| Basic | $ | (0.33 | ) | $ | 0.56 | $ | (1.86 | ) | $ | 1.91 | ||||||
| Diluted | $ | (0.33 | ) | $ | 0.54 | $ | (1.86 | ) | $ | 1.87 | ||||||
| Cash dividends per share | $ | 0.14 | $ | 0.14 | $ | 0.42 | $ | 0.42 | ||||||||
| METHODE ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (unaudited) (in millions, except share and per-share data) | ||||||||
| January 27, 2024 | April 29, 2023 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 122.9 | $ | 157.0 | ||||
| Accounts receivable, net | 265.3 | 314.3 | ||||||
| Inventories | 204.0 | 159.7 | ||||||
| Income tax receivable | 18.6 | 12.9 | ||||||
| Prepaid expenses and other current assets | 19.0 | 20.5 | ||||||
| Total current assets | 629.8 | 664.4 | ||||||
| Long-term assets: | ||||||||
| Property, plant and equipment, net | 232.5 | 220.3 | ||||||
| Goodwill | 220.4 | 301.9 | ||||||
| Other intangible assets, net | 264.3 | 256.7 | ||||||
| Operating lease right-of-use assets, net | 25.9 | 28.4 | ||||||
| Deferred tax assets | 36.1 | 33.6 | ||||||
| Pre-production costs | 47.8 | 36.1 | ||||||
| Other long-term assets | 34.7 | 37.7 | ||||||
| Total long-term assets | 861.7 | 914.7 | ||||||
| Total assets | $ | 1,491.5 | $ | 1,579.1 | ||||
| LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 146.0 | $ | 138.7 | ||||
| Accrued employee liabilities | 31.6 | 36.7 | ||||||
| Other accrued liabilities | 38.2 | 34.5 | ||||||
| Short-term operating lease liabilities | 6.3 | 6.8 | ||||||
| Short-term debt | 0.2 | 3.2 | ||||||
| Income tax payable | 7.6 | 8.1 | ||||||
| Total current liabilities | 229.9 | 228.0 | ||||||
| Long-term liabilities: | ||||||||
| Long-term debt | 331.1 | 303.6 | ||||||
| Long-term operating lease liabilities | 19.9 | 21.8 | ||||||
| Long-term income tax payable | 9.3 | 16.7 | ||||||
| Other long-term liabilities | 19.9 | 14.3 | ||||||
| Deferred tax liabilities | 46.4 | 41.8 | ||||||
| Total long-term liabilities | 426.6 | 398.2 | ||||||
| Total liabilities | 656.5 | 626.2 | ||||||
| Redeemable noncontrolling interest | — | 11.1 | ||||||
| Shareholders' equity: | ||||||||
| Common stock, | 18.4 | 18.6 | ||||||
| Additional paid-in capital | 181.7 | 181.0 | ||||||
| Accumulated other comprehensive loss | (31.2 | ) | (19.0 | ) | ||||
| Treasury stock, 1,346,624 shares as of January 27, 2024 and April 29, 2023 | (11.5 | ) | (11.5 | ) | ||||
| Retained earnings | 677.6 | 772.7 | ||||||
| Total shareholders' equity | 835.0 | 941.8 | ||||||
| Total liabilities, redeemable noncontrolling interest and shareholders' equity | $ | 1,491.5 | $ | 1,579.1 | ||||
| METHODE ELECTRONICS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (in millions) | ||||||||
| Nine Months Ended | ||||||||
| January 27, 2024 | January 28, 2023 | |||||||
| Operating activities: | ||||||||
| Net (loss) income | $ | (66.0 | ) | $ | 69.0 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 43.3 | 36.8 | ||||||
| Stock-based compensation expense | 1.8 | 9.4 | ||||||
| Change in cash surrender value of life insurance | (1.0 | ) | 0.2 | |||||
| Amortization of debt issuance costs | 0.5 | 0.6 | ||||||
| Loss on sale of assets | 0.6 | 0.1 | ||||||
| Impairment of long-lived assets | 0.7 | 0.4 | ||||||
| Goodwill impairment | 56.5 | — | ||||||
| Change in deferred income taxes | (4.0 | ) | 0.7 | |||||
| Other | 0.8 | 0.2 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 47.7 | (19.7 | ) | |||||
| Inventories | (47.1 | ) | (16.2 | ) | ||||
| Prepaid expenses and other assets | (8.8 | ) | (17.3 | ) | ||||
| Accounts payable | 11.0 | 7.0 | ||||||
| Other liabilities | (13.4 | ) | 12.6 | |||||
| Net cash provided by operating activities | 22.6 | 83.8 | ||||||
| Investing activities: | ||||||||
| Purchases of property, plant and equipment | (41.1 | ) | (30.8 | ) | ||||
| Proceeds from settlement of net investment hedge | 0.6 | — | ||||||
| Proceeds from disposition of assets | 1.5 | 3.5 | ||||||
| Net cash used in investing activities | (39.0 | ) | (27.3 | ) | ||||
| Financing activities: | ||||||||
| Taxes paid related to net share settlement of equity awards | (3.8 | ) | (0.5 | ) | ||||
| Repayments of finance leases | (0.2 | ) | (0.3 | ) | ||||
| Proceeds from exercise of stock options | — | 1.5 | ||||||
| Purchases of common stock | (10.8 | ) | (39.6 | ) | ||||
| Cash dividends | (15.0 | ) | (14.9 | ) | ||||
| Debt issuance costs | — | (3.2 | ) | |||||
| Purchase of redeemable noncontrolling interest | (10.9 | ) | — | |||||
| Proceeds from borrowings | 232.9 | 200.0 | ||||||
| Repayments of borrowings | (207.2 | ) | (206.6 | ) | ||||
| Net cash used in financing activities | (15.0 | ) | (63.6 | ) | ||||
| Effect of foreign currency exchange rate changes on cash and cash equivalents | (2.7 | ) | (0.2 | ) | ||||
| Decrease in cash and cash equivalents | (34.1 | ) | (7.3 | ) | ||||
| Cash and cash equivalents at beginning of the period | 157.0 | 172.0 | ||||||
| Cash and cash equivalents at end of the period | $ | 122.9 | $ | 164.7 | ||||
| Supplemental cash flow information: | ||||||||
| Cash paid during the period for: | ||||||||
| Interest | $ | 12.7 | $ | 3.0 | ||||
| Income taxes, net of refunds | $ | 17.0 | $ | 15.4 | ||||
| Operating lease obligations | $ | 6.9 | $ | 6.5 | ||||
| METHODE ELECTRONICS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (Unaudited) (in millions) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| January 27, 2024 | January 28, 2023 | January 27, 2024 | January 28, 2023 | |||||||||||||
| EBITDA: | ||||||||||||||||
| Net (loss) income | $ | (11.6 | ) | $ | 19.9 | $ | (66.0 | ) | $ | 69.0 | ||||||
| Income tax expense | 1.1 | 3.1 | 1.0 | 13.3 | ||||||||||||
| Interest expense, net | 5.0 | 0.8 | 12.2 | 1.3 | ||||||||||||
| Amortization of intangibles | 6.1 | 4.7 | 18.0 | 14.1 | ||||||||||||
| Depreciation | 8.8 | 7.6 | 25.3 | 22.7 | ||||||||||||
| EBITDA | 9.4 | 36.1 | (9.5 | ) | 120.4 | |||||||||||
| Goodwill impairment | — | — | 56.5 | — | ||||||||||||
| Acquisition costs | — | — | 0.5 | — | ||||||||||||
| Acquisition-related costs - purchase accounting adjustments related to inventory | — | — | 0.5 | — | ||||||||||||
| Restructuring costs | 0.1 | — | 1.4 | 0.6 | ||||||||||||
| Loss on sale of Dabir assets | — | — | 0.6 | — | ||||||||||||
| Adjusted EBITDA | $ | 9.5 | $ | 36.1 | $ | 50.0 | $ | 121.0 | ||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| January 27, 2024 | January 28, 2023 | January 27, 2024 | January 28, 2023 | |||||||||||||
| Free Cash Flow: | ||||||||||||||||
| Net cash provided by operating activities | $ | 28.8 | $ | 55.7 | $ | 22.6 | $ | 83.8 | ||||||||
| Purchases of property, plant and equipment | (16.6 | ) | (12.8 | ) | (41.1 | ) | (30.8 | ) | ||||||||
| Free cash flow | $ | 12.2 | $ | 42.9 | $ | (18.5 | ) | $ | 53.0 | |||||||
| January 27, 2024 | April 29, 2023 | |||||||
| Net Debt: | ||||||||
| Short-term debt | $ | 0.2 | $ | 3.2 | ||||
| Long-term debt | 331.1 | 303.6 | ||||||
| Total debt | 331.3 | 306.8 | ||||||
| Less: cash and cash equivalents | (122.9 | ) | (157.0 | ) | ||||
| Net debt | $ | 208.4 | $ | 149.8 | ||||
| METHODE ELECTRONICS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (Unaudited) (in millions, except per share data) | ||||||||||||||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures for the Three Months Ended January 27, 2024 | ||||||||||||||||||||||||||||
| U.S. GAAP (as reported) | Goodwill impairment | Acquisition costs | Purchase accounting adjustments related to inventory | Restructuring costs | Loss on sale of Dabir assets | Non-U.S. GAAP | ||||||||||||||||||||||
| (Loss) income from operations | $ | (3.0 | ) | $ | — | $ | — | $ | — | $ | 0.1 | $ | — | $ | (2.9 | ) | ||||||||||||
| Pre-tax (loss) income | $ | (10.5 | ) | $ | — | $ | — | $ | — | $ | 0.1 | $ | — | $ | (10.4 | ) | ||||||||||||
| Net (loss) income | $ | (11.6 | ) | $ | — | $ | — | $ | — | $ | 0.1 | $ | — | $ | (11.5 | ) | ||||||||||||
| Diluted (loss) income per share | $ | (0.33 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (0.33 | ) | ||||||||||||
| Reconciliation of Non-GAAP Financial Measures for the Three Months Ended January 28, 2023 | ||||||||||||||||||||||||||||
| U.S. GAAP (as reported) | Goodwill impairment | Acquisition costs | Purchase accounting adjustments related to inventory | Restructuring costs | Loss on sale of Dabir assets | Non-U.S. GAAP | ||||||||||||||||||||||
| Income from operations | $ | 27.3 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 27.3 | ||||||||||||||
| Pre-tax income | $ | 23.0 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 23.0 | ||||||||||||||
| Net income | $ | 19.9 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 19.9 | ||||||||||||||
| Diluted income per share | $ | 0.54 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 0.54 | ||||||||||||||
| Reconciliation of Non-GAAP Financial Measures for the Nine Months Ended January 27, 2024 | ||||||||||||||||||||||||||||
| U.S. GAAP (as reported) | Goodwill impairment | Acquisition costs | Purchase accounting adjustments related to inventory | Restructuring costs | Loss on sale of Dabir assets | Non-U.S. GAAP | ||||||||||||||||||||||
| (Loss) income from operations | $ | (50.5 | ) | $ | 56.5 | $ | 0.5 | $ | 0.5 | $ | 1.4 | $ | — | $ | 8.4 | |||||||||||||
| Pre-tax (loss) income | $ | (65.0 | ) | $ | 56.5 | $ | 0.5 | $ | 0.5 | $ | 1.4 | $ | 0.6 | $ | (5.5 | ) | ||||||||||||
| Net (loss) income | $ | (66.0 | ) | $ | 56.5 | $ | 0.4 | $ | 0.4 | $ | 1.1 | $ | 0.5 | $ | (7.1 | ) | ||||||||||||
| Diluted (loss) income per share | $ | (1.86 | ) | $ | 1.59 | $ | 0.01 | $ | 0.01 | $ | 0.03 | $ | 0.01 | $ | (0.21 | ) | ||||||||||||
| Reconciliation of Non-GAAP Financial Measures for the Nine Months Ended January 28, 2023 | ||||||||||||||||||||||||||||
| U.S. GAAP (as reported) | Goodwill impairment | Acquisition costs | Purchase accounting adjustments related to inventory | Restructuring costs | Loss on sale of Dabir assets | Non-U.S. GAAP | ||||||||||||||||||||||
| Income from operations | $ | 81.9 | $ | — | $ | — | $ | — | $ | 0.6 | $ | — | $ | 82.5 | ||||||||||||||
| Pre-tax income | $ | 82.3 | $ | — | $ | — | $ | — | $ | 0.6 | $ | — | $ | 82.9 | ||||||||||||||
| Net income | $ | 69.0 | $ | — | $ | — | $ | — | $ | 0.5 | $ | — | $ | 69.5 | ||||||||||||||
| Diluted income per share | $ | 1.87 | $ | — | $ | — | $ | — | $ | 0.01 | $ | — | $ | 1.88 | ||||||||||||||
FAQ
What were Methode Electronics, Inc.'s net sales in Q3 fiscal 2024?
What percentage of net sales were from electric and hybrid vehicle applications?
What was the net loss reported by Methode Electronics, Inc. in Q3 fiscal 2024?
What was the free cash flow for Methode Electronics, Inc. in Q3 fiscal 2024?
Why was the forward-looking guidance suspended by Methode Electronics, Inc.?
What is the CEO's strategy to restore profitability for Methode Electronics, Inc.?
What was the net debt for Methode Electronics, Inc. at the end of Q3 fiscal 2024?
