NEW YORK, Sept. 10, 2024 (GLOBE NEWSWIRE) -- The Gross Law Firm issues the following notice to shareholders of Methode Electronics, Inc. (NYSE: MEI). Shareholders who purchased shares of MEI during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery. CONTACT US HERE: https://securitiesclasslaw.com/securities/methode-electronics-inc-loss-submission-form/?id=101223&from=3 CLASS PERIOD ...

NEW YORK, Sept. 9, 2024 /PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of Methode Electronics, Inc. (NYSE: MEI). Shareholders who purchased shares of MEI during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery. CONTACT US HERE: https://securitiesclasslaw.com/securities/methode-electronics-inc-loss-submission-form/?id=100732&from=4 CLASS PERIOD: Jun ...

SAN DIEGO, Sept. 08, 2024 (GLOBE NEWSWIRE) -- The law firm of Robbins Geller Rudman & Dowd LLP announces that purchasers of Methode Electronics, Inc. (NYSE: MEI) common stock between June 23, 2022 and March 6, 2024, inclusive (the "Class Period"), have until October 25, 2024 to seek appointment as lead plaintiff of the Methode Electronics class action lawsuit. Captioned Salem v. Methode Electronics, Inc., No. 24-cv-07696 (N.D. Ill.), the Methode Electronics class action lawsuit charges Methode Electronics a ...

NEW YORK, Sept. 06, 2024 (GLOBE NEWSWIRE) -- Lowey Dannenberg P.C., a preeminent law firm in obtaining redress for consumers and investors, announces the filing of a class action lawsuit against Methode Electronics, Inc. ("Methode Electronics" or the "Company") (NYSE: MEI) for violations of the federal securities laws on behalf of investors who purchased or acquired Methode Electronics common stock between June 23, 2022 and March 6, 2024, inclusive (the "Class Period"). On August 26, 2024, a complaint was f ...

RADNOR, Pa., Sept. 05, 2024 (GLOBE NEWSWIRE) -- The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors that a securities class action lawsuit has been filed in the United States District Court for the Northern District of Illinois against Methode Electronics, Inc. ("Methode") (NYSE:MEI) on behalf of investors who purchased or otherwise acquired Methode common stock between June 23, 2022 and March 6, 2024, inclusive (the "Class Period") The lead plaintiff deadline is October 25, ...

Financial Data and Key Metrics Changes - First quarter net sales were $258.5 million, a decrease of 11% compared to $289.7 million in fiscal 2024, and a sequential decrease of 7% from the previous quarter [21] - Adjusted loss from operations was $4.7 million, down $10 million from fiscal 2024, with a sequential improvement of $5.1 million [22] - Adjusted EBITDA for the first quarter was $9.8 million, down $9.5 million year-over-year but improved by $4.5 million sequentially [23] - Adjusted pretax loss was $9.1 million, down $11.6 million from fiscal 2024, with a sequential improvement of $4.7 million [24] - Adjusted diluted loss per share decreased to negative $0.31 from positive $0.06 in the same period last fiscal year [25] - Cash from operations improved by over $16 million, with a reduction in working capital by $9 million [14][27] Business Line Data and Key Metrics Changes - Sales from the EV segment accounted for 18% of consolidated total sales, up from 14% in the previous quarter [13] - The company is transitioning from large legacy programs to multiple new program launches, with over 30 programs expected in fiscal 2025 and another 20 in fiscal 2026 [9][16] Market Data and Key Metrics Changes - Key market headwinds were noted in automotive, commercial vehicles, construction, and agriculture sectors, with a softening near-term outlook for the EV market in North America [13] - The company reported solid order momentum with over $80 million in annual program awards, although the pipeline of potential bookings is subject to reduction or delay due to market conditions [14] Company Strategy and Development Direction - The company is undergoing a transformation to position itself for long-term value creation, focusing on executing a large pipeline of new programs and improving operational metrics [8][19] - The new CEO emphasized the importance of resetting performance, building capabilities, and shifting the company culture to drive future success [11] Management's Comments on Operating Environment and Future Outlook - Management affirmed guidance for flat sales in fiscal 2025, followed by profitable organic sales growth in fiscal 2026, despite headwinds in several key markets [10][19] - The CEO highlighted the need for operational improvements and the importance of executing new program launches effectively [36] Other Important Information - The company is in compliance with all debt covenants and has reduced debt by $34.9 million from the prior year [26] - The new CFO, Laura Kowalchik, is expected to bring a strong track record of successful business transformations [10] Q&A Session Summary Question: Can you unpack the gross margin improvement in automotive? - Management noted operational improvements, price increases passed to customers, and cost reductions contributed to the sequential improvement in gross margin [30] Question: How does the appliance roll-off impact the business? - The interface business is critical, and while there are challenges, new appliance programs are being launched alongside existing ones [32] Question: What are the initial focus areas for the new CEO? - The CEO's priorities include ensuring successful program launches, supporting customers, and driving a holistic financial improvement approach [34][35] Question: How does the company view market conditions for guidance? - Management remains cautious and is affirming guidance based on current market conditions and performance [40][41] Question: What is the impact of price increases on gross margin? - Management indicated that price increases have positively impacted gross margins, but specific details on quarter-by-quarter impact were not provided [43] Question: What is the opportunity for better procurement on the supply chain? - The company is focusing on total supply chain costs, including procurement, scheduling, and inventory management to optimize costs [45] Question: What is the status of Stellantis program launches? - The upcoming launches are primarily EV programs, and while there are challenges, the company is confident in the projected sales growth [52][55]

Methode Electronics, Inc. Earnings Presentation First Quarter Fiscal 2025 September 5, 2024 2 Forward-Looking Statements This presentation forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect, when made, our current views with respect to current events and financial performance. Such forward-looking statements are subject to many risks, uncertainties and factors relating to our operations and business environment, which may cause our actual resul ...

Methode (MEI) came out with a quarterly loss of $0.31 per share versus the Zacks Consensus Estimate of a loss of $0.28. This compares to earnings of $0.06 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -10.71%. A quarter ago, it was expected that this maker of electrical components for the auto and computer industries would post a loss of $0.21 per share when it actually produced a loss of $0.23, delivering a surprise of -9. ...

NEW YORK, Sept. 05, 2024 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that a lawsuit has been filed against Methode Electronics, Inc. (NYSE:MEI) and certain of the Company's senior executives. If you invested in Methode, you are encouraged to obtain additional information by visiting https://www.bfalaw.com/cases-investigations/methode-electronics-inc. Investors have until October 25, 2024 to ask the Court to be appointed to lead the case. The complaint asserts claims ...

Financial Performance - Net sales decreased by $31.2 million, or 10.8%, to $258.5 million for the three months ended July 27, 2024, compared to $289.7 million for the same period in 2023[78] - Cost of products sold decreased by $21.8 million, or 9.2%, to $213.9 million, representing 82.7% of net sales, compared to 81.4% in the prior year[80] - Gross profit margin was 17.3% of net sales for the three months ended July 27, 2024, down from 18.6% in the same period of 2023[81] - Net loss was $18.3 million for the three months ended July 27, 2024, compared to net income of $0.9 million in the same period of 2023[87] Segment Performance - Automotive segment net sales decreased by $23.5 million, or 14.8%, to $134.8 million, with gross profit decreasing by $6.7 million, or 43.8%, to $8.6 million[88] - Industrial segment net sales decreased by $3.9 million, or 3.4%, to $111.5 million, primarily due to lower sales volumes for lighting products[88] - Automotive net sales decreased to $134.8 million in the three months ended July 27, 2024, down from $158.3 million in the same period last year, representing a decline of 14.9%[89] - Gross profit for the automotive segment fell to $8.6 million, or 6.4% of net sales, compared to $15.3 million and 9.7% of net sales in the prior year, indicating a significant margin compression[89] - Industrial segment net sales decreased to $111.5 million, down 3.4% from $115.4 million in the same period last year[90] - Industrial segment income from operations dropped by 30.2% to $16.9 million, primarily due to lower gross profit and increased selling and administrative expenses[91] - Interface segment net sales fell by 19.7% to $12.2 million, driven by lower sales volumes of touch panels and transceivers[91] Expenses and Costs - Selling and administrative expenses increased by $1.7 million, or 3.8%, to $46.2 million, accounting for 17.9% of net sales, compared to 15.4% in the prior year[82] - Interest expense increased to $4.8 million for the three months ended July 27, 2024, compared to $2.8 million in the same period of 2023, due to higher borrowings and interest rates[84] - Income tax expense was $5.2 million with a -39.7% effective tax rate for the three months ended July 27, 2024, compared to $0.1 million with a 10.0% effective tax rate in the prior year[86] - The company recognized $3.5 million in expenses for consulting services provided by AlixPartners during the three months ended July 27, 2024[78] Cash Flow and Financing - Cash and cash equivalents at the end of the period were $111.3 million, down from $147.9 million at the end of the previous year, reflecting a decrease of 24.6%[96] - Net cash provided by operating activities improved to $10.9 million, compared to a net cash used of $5.6 million in the same period last year[97] - Net cash used in investing activities was $13.6 million for the three months ended July 27, 2024, compared to $13.8 million for the same period in 2023[98] - Net cash used in financing activities was $48.2 million for the three months ended July 27, 2024, compared to net cash provided of $12.5 million in the same period in 2023[98] - Cash dividends paid were $5.1 million for the three months ended July 27, 2024, slightly down from $5.3 million in the same period in 2023[98] - Net repayments of borrowings amounted to $39.1 million for the three months ended July 27, 2024, compared to net proceeds from borrowings of $31.9 million in the same period in 2023[98] - The company incurred $1.8 million in debt issuance costs associated with the Second Amendment during the three months ended July 27, 2024[98] - As of July 27, 2024, the outstanding balance under the revolving credit facility was $298.6 million, with compliance maintained for all covenants in the Amended Credit Agreement[95] - The company has a new share buyback authorization of up to $200.0 million, effective from June 17, 2024, following the completion of the previous buyback program[94] Internal Controls and Risks - The company reported material weaknesses in internal controls over financial reporting as of July 27, 2024, affecting the reliability of financial statements[102] - Management identified ineffective controls over IT general controls and goodwill impairment analyses, which could lead to potential misstatements[102] - Remediation efforts are underway to enhance internal controls, including training programs and improved design of controls over IT change management[102] - There were no off-balance sheet arrangements as defined under SEC rules[100] - The company is exposed to market risks from foreign currency exchange, interest rates, and commodity prices, with no significant changes in exposure reported during the three months ended July 27, 2024[101]