Key Financial Highlights:
- Net Sales: $374.3 million, down 15% from $438.1 million in Q1 2024
- Operating Income: $9.1 million (2.4% of net sales), down from $19.5 million (4.4% of net sales) in the prior year
- Adjusted Operating Income (non-GAAP): $12.6 million (3.4% of net sales), compared to $21.0 million (4.8% of net sales) in Q1 2024
- Net Income: $3.2 million, a decrease from $10.8 million
- Diluted EPS: $0.12, down from $0.43 last year
CEO Richard D. Phillips’ Commentary:
Phillips noted that Q1 reflected a commitment to managing internal factors amidst a challenging market landscape. He emphasized effective cost management and positive cash flow, leading to a reduction in debt. The company plans to restructure operations, transitioning production from Tampa to expanded facilities in Mexico and Jasper by the end of the fiscal year.
Cash Position:
As of September 30, 2024, Kimball Electronics had $76.6 million in cash and cash equivalents, with $245.9 million in borrowings, including $200 million classified as long-term. The company generated $45.5 million from operations during Q1 and invested $13.5 million in capital expenditures.
Sector Performance for Q1:
- Automotive Sales: $188.4 million (down 11% from $212.5 million)
- Medical Sales: $89.8 million (down 12% from $102.4 million)
- Industrial Sales (excluding AT&M): $94.0 million (down 17% from $112.9 million)
- Total Net Sales (excluding AT&M): $372.2 million, down 13% from the previous year
Fiscal Year 2025 Guidance:
- Net Sales: Expected between $1.440 billion and $1.540 billion, reflecting an 8% to 14% decline year-over-year
- Adjusted Operating Income: Anticipated at 4.0% to 4.5% of net sales
- Capital Expenditures: Estimated at $40 to $50 million
