Mr. Charron concluded, "Our new business opportunities pipeline is healthy and we have good momentum as we become a separate, stand-alone publicly traded company from the recently completed spin-off from
First Quarter Fiscal Year 2015 Highlights:
-
Net sales of
$203.8 million increased 16% from the prior year first quarter. Sales related to the exit of JCI were down$11.3 million compared to the same quarter last year. - Gross profit as a percent of net sales increased 1.7 percentage points from the prior year first quarter.
-
The prior year first quarter includes
$5.0 million of pre-tax income resulting from settlement proceeds related to two antitrust class action lawsuits of which the Company was a member. -
Spin-off costs totaled
$1.0 million in the current year first quarter. -
Adjusted operating income (non-GAAP), excluding spin-off costs, of
$8.8 million (4.3% of net sales) increased 87% from the first quarter of fiscal year 2014 adjusted operating income, which excludes the lawsuit income and restructuring costs. -
Adjusted net income (non-GAAP) of
$6.4 million compares to adjusted net income of$4.8 million in the prior year first quarter. -
Adjusted earnings per basic and diluted share (non-GAAP) of
$0.22 compares to adjusted basic and diluted EPS of$0.16 in the first quarter of fiscal year 2014. -
Cash flows used for operating activities for the first quarter of fiscal year 2015 was
$4.5 million . -
Days sales outstanding, calculated as accounts receivable divided by one day's average net sales, was 57.4 days at
September 30, 2014 compared to 56.6 days atSeptember 30, 2013 .
The spin-off of
Net Sales by Vertical Market:
Three Months Ended September 30, |
|||
(Amounts in Millions) | 2014 | 2013 |
Percent Change |
Automotive | $ 71.2 | $ 63.3 | 13 % |
Medical | 61.6 | 49.0 | 26 % |
Industrial | 53.6 | 47.8 | 12 % |
Public Safety | 14.2 | 12.6 | 12 % |
Other | 3.2 | 2.9 | 11 % |
Total Net Sales | $ 203.8 | $ 175.6 | 16 % |
Forward-Looking Statements
Certain statements contained within this release are considered forward-looking under the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties including, but not limited to, our ability to fully realize the expected benefits of the completed spin-off, the global economic conditions, significant volume reductions from key contract customers, loss of key customers or suppliers, financial stability of key customers and suppliers, availability or cost of raw materials, and increased competitive pricing pressures reflecting excess industry capacities. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of the Company are contained in the Company's Registration Statement filed on Form 10, as amended, and declared effective on
Non-GAAP Financial Measures
This press release contains non-GAAP financial measures. A non-GAAP financial measure is a numerical measure of a company's financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with Generally Accepted Accounting Principles (GAAP) in
About
Recognized with a reputation for excellence,
To learn more about
Lasting relationships. Global success.
Financial highlights for the first quarter ended September 30, 2014 are as follows:
Condensed Consolidated Statements of Income | ||||||||
(Unaudited) | Three Months Ended | |||||||
(Amounts in Thousands, except per share data) | September 30, 2014 | September 30, 2013 | ||||||
Net Sales | $ 203,803 | 100.0 % | $ 175,637 | 100.0 % | ||||
Cost of Sales | 185,900 | 91.2 % | 163,212 | 92.9 % | ||||
Gross Profit | 17,903 | 8.8 % | 12,425 | 7.1 % | ||||
Selling and Administrative Expenses | 10,116 | 5.0 % | 7,739 | 4.5 % | ||||
Other General Income | — | — % | (5,022) | (2.9 %) | ||||
Restructuring Expense | — | — % | 402 | 0.2 % | ||||
Operating Income | 7,787 | 3.8 % | 9,306 | 5.3 % | ||||
Other Income (expense), net | (497) | (0.2 %) | 191 | 0.1 % | ||||
Income Before Taxes on Income | 7,290 | 3.6 % | 9,497 | 5.4 % | ||||
Provision for Income Taxes | 1,899 | 1.0 % | 1,799 | 1.0 % | ||||
Net Income | $ 5,391 | 2.6 % | $ 7,698 | 4.4 % | ||||
Basic and diluted earnings per share (1) | $ 0.18 | $ 0.26 | ||||||
Basic and diluted average shares outstanding (1) | 29,143 | 29,143 | ||||||
(1) On October 31, 2014, Kimball International distributed 29.1 million shares of Kimball Electronics common stock to Kimball International Share Owners in connection with the spin-off of Kimball Electronics. Basic and diluted earnings per common share and the average number of common shares outstanding were retrospectively restated for the number of Kimball Electronics shares outstanding immediately following this transaction. |
Condensed Consolidated Statements of Cash Flows | Three Months Ended | |
(Unaudited) | September 30, | |
(Amounts in Thousands) | 2014 | 2013 |
Net Cash Flow (used for) provided by Operating Activities | $ (4,505) | $ 5,590 |
Net Cash Flow used for Investing Activities | (7,719) | (3,602) |
Net Cash Flow provided by (used for) Financing Activities | 7,827 | (6,080) |
Effect of Exchange Rate Change on Cash | (1,162) | 213 |
Net Decrease in Cash | (5,559) | (3,879) |
Cash at Beginning of Period | 26,260 | 18,424 |
Cash at End of Period | $ 20,701 | $ 14,545 |
(Unaudited) | ||
Condensed Consolidated Balance Sheets | September 30, | June 30, |
(Amounts in Thousands) | 2014 | 2014 |
ASSETS | ||
Cash | $ 20,701 | $ 26,260 |
Receivables, net | 135,989 | 128,425 |
Inventories | 120,604 | 116,159 |
Prepaid expenses and other current assets | 23,089 | 20,490 |
Property and Equipment, net | 97,898 | 97,934 |
Goodwill | 2,564 | 2,564 |
Other Intangible Assets, net | 1,844 | 1,830 |
Other Assets | 14,696 | 15,068 |
Total Assets | $ 417,385 | $ 408,730 |
LIABILITIES AND SHARE OWNERS' EQUITY | ||
Accounts payable | $ 123,522 | $ 119,853 |
Accrued expenses | 21,549 | 26,602 |
Other | 9,922 | 9,903 |
Share Owners' Equity | 262,392 | 252,372 |
Total Liabilities and Share Owners' Equity | $ 417,385 | $ 408,730 |
Reconciliation of Non-GAAP Financial Measures | ||||
(Unaudited) | ||||
(Amounts in Thousands, except per share data) | ||||
Operating Income excluding Spin-off Expenses, Restructuring Charges and Settlement Proceeds from Lawsuits | ||||
Three Months Ended September 30, |
||||
Kimball Electronics, Inc. | 2014 | 2013 | ||
Operating Income, as reported | $ 7,787 | $ 9,306 | ||
Add: Pre-tax Spin-off Expenses | 964 | — | ||
Less: Pre-tax Settlement Proceeds from Lawsuits | — | 5,022 | ||
Add: Pre-tax Restructuring Charges | — | 402 | ||
Adjusted Operating Income | $ 8,751 | $ 4,686 | ||
Net Income excluding Spin-off Expenses, Restructuring Charges and Settlement Proceeds from Lawsuits | ||||
Three Months Ended September 30, |
||||
Kimball Electronics, Inc. | 2014 | 2013 | ||
Net Income, as reported | $ 5,391 | $ 7,698 | ||
Add: After-tax Spin-off Expenses * | 964 | — | ||
Less: After-tax Settlement Proceeds from Lawsuits | — | 3,134 | ||
Add: After-tax Restructuring Charges | — | 251 | ||
Adjusted Net Income | $ 6,355 | $ 4,815 | ||
* Spin-off expenses in the current year first quarter are non-deductible. | ||||
Earnings Per Basic and Diluted Share excluding Spin-off Expenses, Restructuring Charges and Settlement Proceeds from Lawsuits | ||||
Three Months Ended September 30, |
||||
Kimball Electronics, Inc. | 2014 | 2013 | ||
Earnings per Basic and Diluted Share, as reported | $ 0.18 | $ 0.26 | ||
Add: Impact of Spin-off Expenses | 0.04 | — | ||
Less: Impact of Settlement Proceeds from Lawsuits | — | 0.11 | ||
Add: Impact of Restructuring Charges | — | 0.01 | ||
Adjusted Earnings Per Basic and Diluted Share | $ 0.22 | $ 0.16 |
CONTACT:Adam W. Smith Treasurer investor.relations@kimballelectronics.com 812-634-4000