[PART I FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This section provides the unaudited condensed consolidated financial statements for Kimball Electronics, Inc. and related management discussion [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Kimball Electronics, Inc. as of September 30, 2022, and for the three-month period then ended, including balance sheets, income statements, comprehensive income, cash flows, and share owners' equity [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of September 30, 2022, shows total assets of **$1.10 billion**, an increase from **$1.04 billion** at June 30, 2022, primarily driven by increased inventories and receivables, funded by higher borrowings Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2022 | Jun 30, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $820,017 | $761,083 | | Inventories | $449,528 | $395,630 | | **Total Assets** | **$1,101,763** | **$1,035,767** | | **Total Current Liabilities** | $439,962 | $408,742 | | Total Debt (Current + Long-term) | $232,505 | $180,580 | | **Total Liabilities** | **$645,518** | **$581,796** | | **Total Share Owners' Equity** | **$456,245** | **$453,971** | [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For the three months ended September 30, 2022, net sales grew **38.7%** to **$405.9 million**, with gross profit increasing **88.0%** and net income rising to **$9.5 million**, or **$0.38** per diluted share Consolidated Income Statement (Three Months Ended Sep 30, in thousands, except per share data) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Net Sales | $405,889 | $292,717 | | Gross Profit | $29,321 | $15,600 | | Operating Income | $13,571 | $4,780 | | Net Income | $9,509 | $2,564 | | Diluted EPS | $0.38 | $0.10 | [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) For the three months ended September 30, 2022, total comprehensive income was **$2.1 million**, comprising **$9.5 million** in net income offset by a **$7.4 million** other comprehensive loss, primarily due to negative foreign currency translation adjustments Comprehensive Income (Three Months Ended Sep 30, in thousands) | Component | 2022 | 2021 | | :--- | :--- | :--- | | Net income | $9,509 | $2,564 | | Foreign currency translation adjustments | $(7,237) | $(2,953) | | Other comprehensive income (loss) | $(7,417) | $(4,266) | | **Total comprehensive income (loss)** | **$2,092** | **$(1,702)** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used for operating activities was **$60.2 million** for the first three months of fiscal 2023, primarily due to increased working capital needs, resulting in a net decrease in cash of **$30.1 million** Cash Flow Summary (Three Months Ended Sep 30, in thousands) | Activity | 2022 | 2021 | | :--- | :--- | :--- | | Net cash used for operating activities | $(60,194) | $(8,187) | | Net cash used for investing activities | $(19,320) | $(12,868) | | Net cash provided by financing activities | $50,769 | $4,965 | | **Net Decrease in Cash** | **$(30,136)** | **$(17,118)** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed information on accounting policies, revenue recognition, and a breakdown of revenue by end market, including a **$2.0 million** decrease in depreciation expense due to a change in estimated useful lives of production equipment - The company provides contract electronics manufacturing services (EMS) and diversified manufacturing services to the automotive, medical, and industrial end markets[23](index=23&type=chunk) - A change in the estimated useful lives of Surface Mount Technology production equipment, effective November 1, 2021, resulted in a **$2.0 million** decrease in depreciation expense and a **$1.6 million** increase in net income for the three months ended September 30, 2022[26](index=26&type=chunk) Revenue by End Market Vertical (Three Months Ended Sep 30, in millions) | Vertical Market | 2022 | 2021 | | :--- | :--- | :--- | | Automotive | $184.5 | $129.4 | | Medical | $114.8 | $85.0 | | Industrial | $100.9 | $75.0 | | Other | $5.7 | $3.3 | | **Total net sales** | **$405.9** | **$292.7** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the record-setting Q1 FY2023 financial performance, with net sales growing **39%** year-over-year to **$405.9 million** driven by double-digit growth across all end markets, despite ongoing supply chain and inflation challenges [Business and Market Overview](index=22&type=section&id=Business%20and%20Market%20Overview) The company operates as a global manufacturing solutions provider, actively monitoring risks such as the COVID-19 pandemic, component shortages, inflation, and geopolitical impacts, while achieving record quarterly sales due to improved supply chains and strong demand - The company is monitoring several key risks: the ongoing COVID-19 pandemic, component shortages and shipping delays, industry-wide inflation, and the geopolitical and economic impact of the war in Ukraine[86](index=86&type=chunk)[87](index=87&type=chunk)[89](index=89&type=chunk) - Q1 FY2023 net sales were a company record, increasing **39%** YoY, with double-digit growth in all three end market verticals (Automotive, Medical, Industrial)[90](index=90&type=chunk) - The company maintains long-term customer relationships, with **80%** of net sales in Q1 FY2023 coming from customers served for more than 10 years[94](index=94&type=chunk) [Financial Overview and Results of Operations](index=25&type=section&id=Financial%20Overview%20and%20Results%20of%20Operations) Q1 FY2023 net sales increased **39%** to a record **$405.9 million**, with all verticals showing strong growth, gross margin improving to **7.2%**, and net income surging **271%** to **$9.5 million** Financial Highlights (Three Months Ended Sep 30, in millions) | Metric | 2022 | 2021 | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $405.9 | $292.7 | 39% | | Gross Profit | $29.3 | $15.6 | 88% | | Operating Income | $13.6 | $4.8 | 184% | | Net Income | $9.5 | $2.6 | 271% | | Diluted EPS | $0.38 | $0.10 | 280% | Significant Customer Sales (% of Net Sales) | Customer | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Philips | 17% | 14% | | Nexteer Automotive | 15% | 17% | | ZF | 12% | * | *amount is less than 10% of total - Open orders increased **43%** to **$1,069 million** as of September 30, 2022, compared to **$749 million** a year prior, driven by increased demand and component shortages limiting fulfillment[95](index=95&type=chunk)[97](index=97&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity remains strong with **$113.4 million** available, despite net cash used for operations being **$60.2 million** due to increased working capital and strategic inventory builds, with capital expenditures primarily for facility expansions Liquidity and Working Capital Metrics | Metric | Sep 30, 2022 | Jun 30, 2022 | | :--- | :--- | :--- | | Working Capital | $380.1M | $352.3M | | Current Ratio | 1.9 | 1.9 | | Debt-to-Equity Ratio | 0.5 | 0.4 | | Short-term Liquidity Available | $113.4M | $178.6M | Cash Conversion Days (CCD) | Period Ended | Sep 30, 2022 | Jun 30, 2022 | Sep 30, 2021 | | :--- | :--- | :--- | :--- | | CCD | 99 | 91 | 73 | - Net cash used for operating activities was **$(60.2) million**, primarily due to a **$57.6 million** increase in inventory and a **$33.3 million** increase in accounts receivable[108](index=108&type=chunk)[110](index=110&type=chunk) - Capital expenditure commitments were approximately **$26 million** as of September 30, 2022, primarily for the Poland facility expansion and equipment for new programs[121](index=121&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes in its exposure to market risks, including foreign currency exchange rates and interest rates, compared to its prior fiscal year-end disclosures - There were no material changes in the company's exposure to market risks for changes in foreign currency exchange rates and interest rates as compared to the fiscal year ended June 30, 2022[131](index=131&type=chunk) [Item 4. Controls and Procedures](index=31&type=section&id=Controls%20and%20Procedures) The company's CEO and CFO concluded that disclosure controls and procedures were effective as of September 30, 2022, with no material changes to internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of September 30, 2022[132](index=132&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[132](index=132&type=chunk) [PART II OTHER INFORMATION](index=32&type=section&id=PART%20II%20OTHER%20INFORMATION) This section covers other information including legal proceedings, risk factors, equity sales, and exhibits [Item 1. Legal Proceedings](index=32&type=section&id=Legal%20Proceedings) The company is not party to any pending legal proceedings, other than routine litigation incidental to its business, which is not expected to have a material adverse impact - The company and its subsidiaries are not parties to any pending legal proceedings, other than ordinary routine litigation incidental to the business, which is not expected to have a material adverse impact[135](index=135&type=chunk) [Item 1A. Risk Factors](index=32&type=section&id=Risk%20Factors) This section refers to the comprehensive disclosure of risk factors detailed in the company's Annual Report on Form 10-K for the year ended June 30, 2022, with no new or updated factors presented in this quarterly report - A comprehensive disclosure of risk factors can be found in the company's Annual Report on Form 10-K for the year ended June 30, 2022[136](index=136&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any common stock during the three months ended September 30, 2022, with **$11.2 million** remaining available under its **$100 million** stock repurchase plan - During the three months ended September 30, 2022, the Company did not purchase any common stock[138](index=138&type=chunk) - The maximum value of shares remaining for purchase under the stock repurchase plan was **$11.2 million** at September 30, 2022[138](index=138&type=chunk) [Item 6. Exhibits](index=33&type=section&id=Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL documents for financial reporting - Exhibits filed with the report include CEO and CFO certifications (31.1, 31.2, 32.1, 32.2) and Inline XBRL data files (101 series)[140](index=140&type=chunk)

@ " " G (3 (0 D (@ 鲁 Kimball Electronics Midwest IDEAS Conference (18) Electronics 1 Safe Harbor Statement Certain statements contained within this presentation may be considered forward-looking under the Private Securities Litigation Reform Act of 1995. The statements may be identified by the use of words such as "expect," "should," "goal," "predict," "will," "future," "optimistic," "confident," and "believe." These forward-looking statements are subject to risks and uncertainties including, without limita ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Mark One) For the fiscal year ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-36454 KIMBALL ELECTRONICS, INC. (Exact name of registrant as specified in its charter) Securities registered pursuant to Section 12(b) of ...

Financial Data and Key Metrics Changes - Net sales in Q4 reached $373 million, a 13% increase compared to the same quarter last year, marking an all-time high for the company [9][16] - Adjusted operating income for Q4 was $19.4 million, representing 5.2% of net sales, compared to $18 million or 5.5% of net sales in Q4 last year [17] - Net income for Q4 was $9.9 million or $0.40 per diluted share, down from $14.7 million or $0.58 per diluted share in the same quarter last year [20] Business Line Data and Key Metrics Changes - Automotive sales were $152 million, a 7% increase year-over-year, accounting for 41% of total sales [10] - Medical sales reached $114 million, a 34% increase year-over-year, making it the best-performing business segment in Q4 [12] - Industrial sales totaled $88 million, a 2% increase year-over-year, marking a record performance for the segment [13] - Public safety sales were $14 million, a 33% increase year-over-year, driven by thermal imaging and security products [14] Market Data and Key Metrics Changes - The backlog of open orders exceeded $1 billion, indicating strong demand across all verticals [8] - Foreign exchange rates had a 3% unfavorable impact on net sales compared to Q4 of last year [9] Company Strategy and Development Direction - The company aims for double-digit sales increases and operating margin improvement in fiscal 2023, with guidance for net sales between $1.6 billion and $1.7 billion [25] - Facility expansions in Mexico and Poland are expected to increase production capacity significantly, aligning with customer growth [29][30] - The company is focusing on high-complexity applications in automotive, medical, and industrial sectors, with a goal of achieving $2 billion in annual revenue [29][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for growth in fiscal 2023 despite ongoing supply chain constraints [27][54] - The company anticipates a gradual improvement in supply chain conditions, which will support revenue growth [46] - Concerns about potential recessionary impacts in Europe were noted, but overall demand remains strong [41] Other Important Information - Capital expenditures for fiscal 2022 totaled $75 million, with guidance for $80 million to $100 million in fiscal 2023 [22][25] - The effective tax rate for Q4 was approximately 35.1%, up from 17.6% in the same quarter last year, influenced by foreign exchange re-measurement [19] Q&A Session Summary Question: Ability to pass through price increases to customers - Management confirmed strong relationships with customers allow for passing on material and logistics cost increases [36] Question: Backlog situation in the medical segment - The backlog in the medical segment is strong, with improvements expected as elective procedures return [38] Question: Supply chain improvements - Management indicated that supply chain conditions are slowly improving, but challenges remain [39] Question: Revenue guidance confidence - Management expressed confidence in achieving revenue growth due to established resources and ongoing expansions [53] Question: Seasonality in sales - Management noted that seasonality is difficult to assess due to material shortages affecting production [55][58] Question: Incremental revenue sources from capacity expansions - Management highlighted that growth will come from expansions in Thailand, Mexico, and Poland, as well as existing operations [60][61]

Fourth Quarter and Full Year Fiscal 2022 Results Quarter Ended June 30, 2022 Supplementary Information to the August 5, 2022, Earnings Conference Call & Webcast Kimball Electronics (Nasdaq: KE) Safe Harbor Statement Certain statements contained within this supplementary information, including our fiscal year 2023 guidance, and any statements made during our earnings conference call today may be considered forward-looking under the Private Securities Litigation Reform Act of 1995. The statements may be ident ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR Indiana 35-2047713 (State or other jurisdiction of (I.R.S. Employer Identification No.) 1205 Kimball Boulevard, Jasper, Indiana 47546 (Address of principal executive offices) (Zip Code) ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For ...

Kimball Electronics, Inc. (NASDAQ:KE) Q3 2022 Earnings Conference Call May 6, 2022 10:00 AM ET Company Participants Andy Regrut – Vice President, Investor Relations Don Charron – Chairman & Chief Executive Officer Jana Croom – Chief Financial Officer Conference Call Participants Anja Soderstrom – Sidoti Hendi Susanto – Gabelli Funds Mike Morales – Walthausen & Company Operator Good morning, ladies and gentlemen, and welcome to the Kimball Electronics Third Quarter Fiscal Earnings Conference Call. My name is ...

Second Quarter Fiscal 2022 Results Quarter Ended December 31, 2021 Supplementary Information to the February 8, 2022 Earnings Conference Call & Webcast Kimball Electronics (Nasdaq: KE) Safe Harbor Statement Certain statements contained within this supplementary information, including our fiscal year 2022 guidance, and any statements made during our earnings conference call today may be considered forward-looking under the Private Securities Litigation Reform Act of 1995. The statements may be identified by ...

Kimball Electronics, Inc. (NASDAQ:KE) Q2 2022 Earnings Conference Call February 8, 2022 10:00 AM ET Company Participants Andy Regrut - Head of Investor Relations Don Charron - Chairman and Chief Executive Officer Jana Croom - Vice President and Chief Financial Officer Conference Call Participants Anja Soderstrom - Sidoti Mike Morales - Walthausen & Company Disclaimer*: This transcript is designed to be used alongside the freely available audio recording on this page. Timestamps within the transcript are des ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) For the transition period from to Commission File Number 001-36454 KIMBALL ELECTRONICS, INC. (Exact name of registrant as specified in its charter) incorporation or organization) Indiana 35-2047713 (State or other jurisdiction of (I.R.S. Employer Identification No.) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2021 OR ☐ TRANSITI ...