-
- News
- Books
Featured Books
- smt007 Magazine
Latest Issues
Current IssueBox Build
One trend is to add box build and final assembly to your product offering. In this issue, we explore the opportunities and risks of adding system assembly to your service portfolio.
IPC APEX EXPO 2024 Pre-show
This month’s issue devotes its pages to a comprehensive preview of the IPC APEX EXPO 2024 event. Whether your role is technical or business, if you're new-to-the-industry or seasoned veteran, you'll find value throughout this program.
Boost Your Sales
Every part of your business can be evaluated as a process, including your sales funnel. Optimizing your selling process requires a coordinated effort between marketing and sales. In this issue, industry experts in marketing and sales offer their best advice on how to boost your sales efforts.
- Articles
- Columns
Search Console
- Links
- Events
||| MENU - smt007 Magazine
Kimball Electronics Reports 10% Growth in Q2 FY 2019 Sales
February 7, 2019 | Globe NewswireEstimated reading time: 3 minutes
Kimball Electronics, Inc. today announced financial results for its second quarter ended December 31, 2018.
Highlights:
- Second quarter net sales of $284 million, up 10% year-over-year
- Net income of $7.1 million and diluted earnings per share of $0.27
- Returned $13.3 million to Share Owners in stock repurchases during the quarter
- Completed the GES acquisition on October 1, 2018
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 December 31, 2018, the adoption increased net sales $6.0 million, net Income increased $0.2 million, and diluted EPS was unchanged. For the six months ended December 31, 2018, the adoption increased Net Sales $6.4 million, Net Income increased $0.3 million, and Diluted EPS increased $0.01.The prior periods were not restated.
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.
“We achieved solid year-over-year organic growth in three of our four end market verticals as the ramp-up of new program launches helped to more than offset continued softness in certain other programs primarily caused by global macro-economic conditions, component shortages, and trade uncertainties,” said Donald D. Charron, chairman and chief executive officer.
“We made good progress in optimizing our core business and with the acquisition of GES, we took a significant step in our strategy to diversify ourselves into a multifaceted manufacturing solutions provider. We are cautiously optimistic that our goal of 8% organic growth remains in reach for fiscal year 2019, and we expect to meet our 4.5% operating income goal for the second half of fiscal year 2019,” Charron continued.
Second Quarter Fiscal Year 2019 Overview:
• Consolidated net sales increased 10% compared to the second quarter of fiscal year 2018. Net sales in the second quarter were impacted by:
- The GES acquisition increased net sales by 2%.
- Net sales increased 2% as a result of the adoption of new revenue recognition accounting rules.
- Unfavorable foreign currency movements decreased net sales by 1% compared to the prior year second quarter.
• The Romania facility improved its impact on consolidated operating income percent by 30 basis points compared to the prior year second quarter as its ramp-up progresses; however, GES unfavorably impacted consolidated operating income percent by 60 basis points, including 20 basis points resulting from the amortization of acquired intangibles.
• Other Income (Expense), net includes interest expense of $1.1 million in the current year quarter compared to $0.1 million in the prior year quarter as a result of increased borrowings on the credit facilities, in large part related to the financing of the GES acquisition.
• Adjusted Net Income and Adjusted Diluted EPS exclude $16.6 million of provisional discrete tax expense for the three and six months ended December 31, 2017 related to the U.S. Tax Cuts and Jobs Act (“Tax Reform”) and a $0.3 million income tax benefit for the three and six months ended December 31, 2018 from adjustments to the Tax Reform provisions prior to the end of the measurement period. See below for additional information and a reconciliation of non-GAAP financial measures.
• Operating activities provided cash of $5.6 million during the quarter, which compares to cash provided by operating activities of $11.6 million in the second quarter of fiscal year 2018.
• Cash conversion days (CCD) for the quarter ended December 31, 2018 were 76 days, up from 60 days in the same quarter last year primarily related to an increase in raw material inventories to maintain appropriate buffer stock levels in the current tight supply environment. CCD is calculated as the sum of days sales outstanding plus contract asset days plus production days supply on hand less accounts payable days.
• $13.3 million was returned to Share Owners during the quarter in the form of common stock repurchases.
• Investments in capital expenditures were $4.3 million and cash payments, net of cash acquired, for the GES acquisition was $43.9 million during the quarter.
• Cash and cash equivalents were $35.9 million and borrowings outstanding on credit facilities were $89.1 million at December 31, 2018.
• Return on invested capital (ROIC), calculated for the trailing twelve months, was 8.9% and 9.8% for the twelve months ended December 31, 2018 and 2017, respectively (see reconciliation of non-GAAP financial measures for ROIC calculation).
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.
Suggested Items
Aspocomp’s Q1 Net Sales and Operating Result Decreased YoY
04/18/2024 | AspocompInflation and interest rates, weak economic development, the uncertainties posed by Russia’s war of aggression and the situation in the Middle East, and global trade policy tensions will affect the operating environment of Aspocomp and its customers in the 2024 fiscal year.
Cicor Records Solid Growth in Q1
04/16/2024 | CicorThe Cicor Group continued to grow in the first three months of the year. Quarterly sales increased by 11.8% to CHF 107.3 million compared to the first quarter of the previous year (Q1/2023: CHF 96.0 million).
Europe’s IT, Business Services Sector on the Rebound in Q1: ISG Index
04/15/2024 | BUSINESS WIREEurope’s demand for IT and business services in the first quarter rose for the first time in a year, powered by growth from the banking, financial services and insurance (BFSI) sector, according to the latest state-of-the-industry report from Information Services Group (ISG), a leading global technology research and advisory firm.
FTG Announces Q1 2024 Financial Results
04/12/2024 | Firan Technology Group CorporationDuring Q1 2024, the Corporation has continued to invest in technology in existing sites, grow the business organically, and integrate the two acquisitions completed last year. FTG is strategically deploying its capital in ways that will drive increased shareholder returns for the future in both the near term and long term. Specifically, FTG accomplished the following in Q1 2024, which continues to improve the Corporation and position it for the future:
Electronic System Design Industry Posts $4.4 Billion in Revenue in Q4 2023, ESD Alliance Reports
04/09/2024 | SEMIElectronic System Design (ESD) industry revenue increased 14% to $4,423 million in the fourth quarter of 2023 from the $3,879.9 million logged in the third quarter of 2023, the ESD Alliance, a SEMI Technology Community, announced today in its latest Electronic Design Market Data (EDMD) report.