Kimball Electronics(KE) - 2025 Q1 - Quarterly Results

Financial Performance - Net sales for Q1 Fiscal 2025 totaled $374.3 million, a decline of 15% compared to $438.1 million in Q1 Fiscal 2024[2] - Operating income was $9.1 million, representing 2.4% of net sales, down from 4.4% in the previous year[2] - Adjusted operating income was $12.6 million, or 3.4% of net sales, compared to 4.8% in Q1 Fiscal 2024[2] - Net income for Q1 Fiscal 2025 was $3.2 million, down from $10.8 million in Q1 Fiscal 2024[2] - The company reported a diluted EPS of $0.12, a decrease from $0.43 in the same quarter last year[2] - Net sales for the three months ended September 30, 2024, were $2.1 million, down 79.4% from $10.3 million in the same period last year[16] - Operating income improved to $0.8 million compared to a loss of $0.2 million in the prior year[16] - Adjusted net income for the three months ended September 30, 2024, was $5,527 thousand, down from $12,038 thousand in the same period last year[17] - Diluted earnings per share decreased to $0.12 from $0.43 year-over-year[17] Cash Flow and Assets - Cash generated from operating activities was $45.5 million, with cash and cash equivalents at $76.6 million at the end of the quarter[4] - Total assets decreased to $1,149,056 thousand from $1,207,919 thousand, a decline of approximately 4.8%[14] - Cash conversion days increased to 108 days from 100 days, indicating a decline in working capital efficiency[15] - Average invested capital increased to $773,016 thousand from $738,096 thousand, reflecting a rise in capital efficiency[17] - Long-term debt decreased to $200,000 thousand from $235,000 thousand, indicating improved debt management[14] Business Operations and Strategy - The company confirmed guidance for Fiscal Year 2025, projecting net sales between $1.440 billion and $1.540 billion, reflecting an 8% to 14% decline year-over-year[6] - The divestiture of the Automation, Test, and Measurement business was completed, contributing to a reduction in debt to a two-year low[3] - The company plans to close its manufacturing facility in Tampa, FL, with production activities being transferred to expanded facilities in Mexico and Jasper[3] - Capital expenditures for Fiscal Year 2025 are expected to be between $40 million and $50 million[6] - Open orders decreased to $594 million from $714 million, primarily due to the cancellation of a major automotive program[15] - Selling and administrative expenses decreased to $11,010 thousand from $14,536 thousand, showing cost control efforts[17]