Kimball Electronics, Inc. (NASDAQ:KE) Q1 2022 Earnings Conference Call November 4, 2021 10:00 AM ET Company Participants Andy Regrut - Head, 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 Hendi Susanto - Gabelli Funds Operator Good morning, ladies and gentlemen and welcome to Kimball Electronics First Quarter Fiscal 2022 Earnings Conference Call. My n ...

Financial Performance - Net sales for the first quarter of fiscal year 2022 decreased by 12% to $292.7 million compared to $331.7 million in the same quarter of fiscal year 2021[100] - Gross profit declined by 49% to $15.6 million, representing 5.3% of net sales, down from 9.2% in the prior year[100] - Sales to the automotive market increased by 9% year-over-year, totaling $129.4 million, while sales to the medical market decreased by 33% to $85.0 million[101] - Open orders increased by 114% to $749.3 million compared to $349.8 million in the previous year, primarily driven by the automotive and medical verticals[102] Operational Challenges - Component shortages, particularly in semiconductors, continue to impact operations and customer commitments, with potential financial implications that cannot be reasonably estimated[93] - The COVID-19 pandemic continues to pose uncertainties affecting operations, with the company implementing safety measures to protect employees and minimize disruptions[92] - Selling and administrative expenses decreased in absolute dollars but increased as a percentage of net sales due to lower sales volume and higher payroll costs[104] - The company is focused on cost control while managing growth prospects amid global component shortages and logistical challenges[95] Financial Position - The company maintains a strong balance sheet with a current ratio of 1.8 and a debt-to-equity ratio of 0.2, with shareholders' equity at $440 million[96] - Receivables decreased by $26.5 million, while inventory increased by $61.7 million due to component shortages[108] - Working capital decreased to $275.6 million at September 30, 2021, from $282.6 million at June 30, 2021, with a current ratio of 1.8[109] - The company had $68.0 million in borrowings under the primary credit facility as of September 30, 2021, up from $62.7 million at June 30, 2021[122] - The unused borrowings under all credit facilities totaled $93.5 million at September 30, 2021, indicating sufficient liquidity for operational needs[126] Investment and Capital Expenditures - Cash used for investing activities increased to $(12.9) million in Q3 2021 from $(8.3) million in Q3 2020, with $12.7 million invested in capital expenditures[117] - Capital expenditure commitments were approximately $30 million, primarily for the expansion of facilities in Mexico and Thailand[127] Tax and Interest - Interest income increased to $24,000 in Q3 2021 from $7,000 in Q3 2020, while interest expense decreased to $(395,000) from $(823,000)[106] - The effective tax rate increased to 27.4% for Q3 2021 from 15.7% in Q3 2020, primarily due to a favorable tax adjustment in the prior year[107] Stock and Borrowing - The company has a stock repurchase plan authorized for up to $100 million, with $79.7 million repurchased through September 30, 2021[130] - The Netherlands subsidiary had $4.6 million in borrowings outstanding under its revolving credit facility as of September 30, 2021, up from $3.5 million as of June 30, 2021[129] Market Risks and Accounting - There were no material changes in exposure to market risks for foreign currency exchange rates and interest rates compared to the fiscal year ended June 30, 2021[137] - The company is monitoring the transition from LIBOR, which will cease publication of certain settings after June 30, 2023[137] - No level 1 or level 2 financial instruments were affected by a lack of market liquidity during the first quarter of fiscal year 2022[132] - There have been no material changes to critical accounting policies since the Annual Report for the year ended June 30, 2021[135] Future Outlook - The EMS industry is projected to grow at a compound annual growth rate (CAGR) of 7.1% through 2025, with the company targeting a long-term CAGR of 8%[91] - The company expects cash generation from operations could be adversely affected by factors such as economic conditions and supply chain issues[131] - The company intends to finance stock repurchases with existing liquidity, depending on market conditions and corporate considerations[130]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2021 OR o 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) Indiana 35-2047713 (State or other jurisdiction of ...

Kimball Electronics, Inc. (NASDAQ:KE) Q4 2021 Earnings Conference Call August 5, 2021 10:00 AM ET Company Participants Andy Regrut - 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 Operator Good morning, ladies and gentlemen and welcome to the Kimball Electronics Fourth Quarter Fiscal 2021 Earnings Conference Call. My name is Adrianne and I w ...

Financial Results Fourth Quarter Fiscal Year 2021 Quarter Ended June 30, 2021 Supplementary Information to August 5, 2021 Earnings Conference Call 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 the use of words such as "expect," "sh ...

Financial Results Third Quarter Fiscal Year 2021 Quarter Ended March 31, 2021 Supplementary Information to May 6, 2021 Earnings Conference Call Kimball Electronics (Nasdaq: KE) Safe Harbor Statement Certain statements contained within this supplementary information 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 the use of words such as "expect," "should," "goal ...

Kimball Electronics, Inc. (NASDAQ:KE) Q3 2021 Earnings Conference Call May 6, 2021 10:00 AM ET Company Participants Andy Regrut – Head-Investor Relations Don Charron – Chairman and Chief Executive Officer Mike Sergesketter – Vice President and Chief Financial Officer Jana Croom – Vice President-Finance Conference Call Participants Anja Soderstrom – Sidoti Mike Morales – Walthausen & Company Hendi Susanto – Gabelli Funds John Deysher – Pinnacle Jason Crawshaw – Polaris Capital Management Operator Good mornin ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR o 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. Indicate by check mark whether the registrant (1) has filed all reports required to be filed by ...

Financial Data and Key Metrics Changes - The company reported net sales of $320.6 million for Q2 2021, a 4% increase from $307.1 million in Q2 2020, primarily driven by increased volumes in the automotive vertical [15][16] - Gross margin improved to 9.3%, a 260 basis point increase from the prior year, attributed to better operating execution and a favorable product mix [19] - Adjusted operating income was $17 million, or 5.3% of net sales, up from $9.2 million or 3% of net sales in the same period last year [21] - Net income for Q2 2021 was $15.1 million, compared to $6.6 million in Q2 2020 [24] - Diluted earnings per share increased to $0.60 from $0.26 in the same quarter last year [25] Business Line Data and Key Metrics Changes - Sales in the medical vertical increased by 2% year-over-year but decreased by 31% sequentially as sales normalized post-COVID-19 [8] - Automotive vertical sales rose by 13% year-over-year and 28% sequentially, driven by the ramp-up of programs for fully electric vehicles [9][16] - The industrial vertical saw a 2% increase, mainly due to improved sales of automation and climate control products [17] - Public safety vertical sales were $10.5 million, down 28% from the prior year due to the phase-out of certain programs [19] Market Data and Key Metrics Changes - The company noted a significant impact from semiconductor shortages affecting the automotive industry, which could influence global automotive production [9][35] - The backlog of orders for machines in the GES business has grown, positioning the company well for future deliveries [10] Company Strategy and Development Direction - The company aims for 8% organic growth and remains optimistic about new business opportunities [6] - A $8 million expansion plan for the Thailand operation has been initiated, expected to double capacity within 12 months [12][28] - The focus remains on organic growth, with capital allocation prioritized for expansions rather than acquisitions [44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong performance despite ongoing pandemic challenges, emphasizing the importance of employee health and safety [7][14] - The company anticipates that the automotive sector will continue to grow, driven by low inventory levels and recovering demand [51] - Future growth in the medical vertical is expected as normal healthcare services resume post-pandemic [67] Other Important Information - The company repurchased 190,000 shares for a total of $3 million during the quarter, with a total of $79.7 million returned to shareholders since 2015 [13] - Cash and cash equivalents stood at $93.6 million, with operating cash flow reaching a record $51.6 million for the quarter [25][26] Q&A Session Summary Question: Update on supply chain and semiconductor shortages - Management acknowledged the semiconductor shortages affecting the automotive sector and noted potential opportunities for the GES business as capacity is added in the semiconductor industry [32][33] Question: Sustainability of strong cash flow performance - Management indicated that while the recent cash flow performance was exceptional, ongoing efforts in working capital management should continue to support strong cash flow in the future [39][40] Question: Capital allocation strategy and acquisition opportunities - The company remains focused on organic growth and is actively looking for acquisition opportunities in the medical space, though finding suitable targets has been challenging [44][45] Question: Capacity expansion and growth in automotive business - Management confirmed that expansions are planned for existing facilities, particularly in Thailand, and expressed optimism about growth in the automotive sector, including electric vehicles [50][61] Question: Future expectations for gross margins - Management expects operational improvements to sustain gross margins, although some favorable conditions may not continue [53][54] Question: Impact of COVID-19 on medical vertical - Management noted that while COVID-19 related increases have normalized, there are still areas in the medical vertical that are recovering from pandemic-related delays [66][67]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2020 OR o 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) Indiana 35-2047713 (State or other jur ...