Kimball Electronics, Inc. Reports Record Results for Its Third Quarter Fiscal Year 2019

May 8, 2019, 00:00 by Nicole Krempp
JASPER, Ind., May 07, 2019 (GLOBE NEWSWIRE) -- Kimball Electronics, Inc. (Nasdaq: KE), a leading global electronics manufacturing services provider of high-quality, durable electronic products, today announced financial results for its third quarter ended March 31, 2019.

 

May 08, 2019

Quarterly records for net sales, operating income, net income, and diluted EPS
Net sales up 10% year-over-year to $313 million
Record quarterly operating income of $14.5 million
New quarterly records for net income of $11.8 million and diluted earnings per share of $0.46
Returned $4.7 million to Share Owners in stock repurchases during the quarter
 

JASPER, Ind., May 07, 2019 (GLOBE NEWSWIRE) -- Kimball Electronics, Inc. (Nasdaq: KE), a leading global electronics manufacturing services provider of high-quality, durable electronic products, today announced financial results for its third quarter ended March 31, 2019.

1)  As of the beginning of fiscal year 2019, the Company adopted the new accounting standard on Revenue from Contracts with Customers on a modified retrospective basis.  For the three months ended March 31, 2019, the adoption increased Net Sales $2.6 million, Net Income increased $0.4 million, and Diluted EPS increased by $0.01.  For the nine months ended March 31, 2019, the adoption increased Net Sales $9.0 million, Net Income increased $0.6 million, and Diluted EPS increased $0.03.  The prior periods were not restated.
(2)  Prior period amounts have been restated to reflect the retrospective adoption of new accounting guidance on improving the presentation of net periodic pension cost and net periodic postretirement benefit cost.
(3)  A reconciliation of GAAP and non-GAAP financial measures is included below.

Donald D. Charron, Chairman and Chief Executive Officer, stated, “We delivered record sales, operating income, net income, and diluted EPS in our third quarter.  Strong double-digit organic growth in our Medical and Industrial end market verticals helped us exceed our 8% organic growth goal and set the new quarterly sales record.  New program launches and ramp-ups more than offset continued softness in certain other programs primarily caused by global macro-economic conditions and trade uncertainties.”

Mr. Charron continued, “We made excellent progress optimizing the business as we were successful expanding our operating margin by 70 basis points when compared to the third quarter of fiscal year 2018, helping us exceed our goal of 4.5% operating income.  Our acquisition integration work with GES continues as we remain focused on our strategy to become a multifaceted manufacturing solutions company.  We have good momentum, and we are cautiously optimistic that we can begin to consistently achieve our goals of 8% organic growth and 4.5% operating income.”

Third Quarter Fiscal Year 2019 Overview:

Consolidated net sales increased 10% compared to the third quarter of fiscal year 2018.  Net sales in the third quarter were impacted by:


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, successful integration of acquisitions, ramp up of new operations, global economic conditions, geopolitical environment, 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, impact related to tariffs and other trade barriers, 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 its Annual Report on Form 10-K for the year ended June 30, 2018.

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 the United States in the statement of income, statement of comprehensive income, balance sheet, statement of cash flows, or statement of share owners’ equity of the Company.  The non-GAAP financial measures contained herein include adjusted operating income, adjusted net income, adjusted diluted EPS, and ROIC.  These measures include adjustments in the nine months ended March 31, 2019 and in the three and nine months ended March 31, 2018 related to adjustments to the provision for income taxes resulting from the U.S. Tax Cuts and Jobs Act (“Tax Reform”), and for the nine months ended March 31, 2019, for proceeds from a lawsuit settlement.  Reconciliations of the reported GAAP numbers to these non-GAAP financial measures are included in the financial highlights table below.  Management believes it is useful for investors to understand how its core operations performed without the effects of the provisional tax adjustments resulting from Tax Reform and proceeds from the lawsuit settlement.  Excluding these amounts allows investors to meaningfully trend, analyze, and benchmark the performance of the Company’s core operations.  Many of the Company’s internal performance measures that management uses to make certain operating decisions excludes these items to enable meaningful trending of core operating metrics.

 
Conference Call / Webcast
  
Date:May 8, 2019
Time:10:00 AM Eastern Time
Dial-In #:800-992-4934 (International Calls - 937-502-2251)
Conference ID:3073689
  
The live webcast of the conference call can be accessed at investors.kimballelectronics.com.  For those unable to participate in the live webcast, the call will be archived at investors.kimballelectronics.com.

About Kimball Electronics, Inc.
WHO WE ARE Kimball Electronics is a leading contract manufacturer of durable electronics serving a variety of industries on a global scale.  The customer is the focus of everything we do and our touch is felt throughout daily life via the markets we serve:  Automotive, Industrial, Medical, and Public Safety.  Recognized for a reputation of excellence, we are committed to a high-performance culture that values personal and organizational commitment to quality, reliability, value, speed, and ethical behavior.  Our employees know they are part of a company culture that is committed to doing the right thing.  We build lasting relationships and global success for customers while enabling employees to share in the Company’s success through personal, professional, and financial growth.

WHAT WE DO Kimball Electronics trades under the symbol “KE” on The NASDAQ Stock Market.  Kimball Electronics is a preeminent Electronics Manufacturing Services (“EMS”) provider serving customers around the world and further offers diversified contract manufacturing services (“DCMS”) for non-electronic components, medical disposables, and plastics.  GES, a Kimball Electronics Company, specializes in design, production and servicing of automation, test, and inspection equipment for the semiconductor, electronics, and life sciences industries.  From our operations in the United States, China, India, Japan, Mexico, Poland, Romania, Thailand, and Vietnam, our teams are proud to provide manufacturing services for a variety of industries globally.  Kimball Electronics is headquartered in Jasper, Indiana.

To learn more about Kimball Electronics, visit: www.kimballelectronics.com

 

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