Workflow
Kimball Electronics(KE) - 2025 Q3 - Quarterly Results
KEKimball Electronics(KE)2025-05-06 21:24

Financial Performance - Net sales for Q3 fiscal 2025 totaled 374.6million,adecreaseof12374.6 million, a decrease of 12% compared to 425.0 million in Q3 fiscal 2024[4] - Operating income for Q3 was 11.7million,representing3.111.7 million, representing 3.1% of net sales, with adjusted operating income at 4.2%[4] - Net sales for the three months ended March 31, 2025, were 374.6 million, a decrease of 11.8% compared to 425.0millionforthesameperiodin2024[19]−Grossprofitmargindecreasedto7.2425.0 million for the same period in 2024[19] - Gross profit margin decreased to 7.2% for the three months ended March 31, 2025, down from 7.9% in the prior year[19] - Operating income improved to 11.7 million for the three months ended March 31, 2025, compared to an operating loss of 6.4millioninthesameperiodlastyear[19]−NetincomeforthethreemonthsendedMarch31,2025,was6.4 million in the same period last year[19] - Net income for the three months ended March 31, 2025, was 3.8 million, a significant recovery from a net loss of 6.1millionintheprioryear[19]−NetsalesgrowthforthethreemonthsendedMarch31,2025,decreasedby126.1 million in the prior year[19] - Net sales growth for the three months ended March 31, 2025, decreased by 12% compared to the same period in the prior year[25] - Adjusted operating income for the nine months ended March 31, 2025, was 41,629, down from 58,802intheprioryear[25]−AdjustednetincomefortheninemonthsendedMarch31,2025,was58,802 in the prior year[25] - Adjusted net income for the nine months ended March 31, 2025, was 19,718, compared to 31,607intheprioryear[25]−OperatingincomeforthetwelvemonthsendedMarch31,2025,was31,607 in the prior year[25] - Operating income for the twelve months ended March 31, 2025, was 48,669, compared to 61,118intheprioryear[25]−Returnoninvestedcapital(ROIC)forthetwelvemonthsendedMarch31,2025,was6.161,118 in the prior year[25] - Return on invested capital (ROIC) for the twelve months ended March 31, 2025, was 6.1%, down from 9.0% in the prior year[25] Cash Flow and Liquidity - Cash generated from operating activities was 30.9 million, marking the fifth consecutive quarter of positive cash flow[4] - Cash flow from operating activities for the nine months ended March 31, 2025, was 105.9million,asubstantialincreasefrom105.9 million, a substantial increase from 24.7 million in the same period of 2024[20] - The company has cash and cash equivalents of 51.4millionandavailableborrowingcapacityof51.4 million and available borrowing capacity of 253.2 million[4] - Borrowings on credit facilities decreased by 26.2millionfromQ2,totaling26.2 million from Q2, totaling 178.8 million, and down 116million,or40116 million, or 40%, year-to-date[4] Inventory and Orders - Inventory decreased by 9.6 million from Q2 to 296.6million[4]−Thecompanyreportedadecreaseinopenordersto296.6 million[4] - The company reported a decrease in open orders to 642 million as of March 31, 2025, compared to 831millionayearearlier,primarilyduetodemandreductions[22][23]ExpensesandRestructuring−SellingandadministrativeexpensesforthethreemonthsendedMarch31,2025,werereportedat831 million a year earlier, primarily due to demand reductions[22][23] Expenses and Restructuring - Selling and administrative expenses for the three months ended March 31, 2025, were reported at 13,154, down from 16,861intheprioryear[25]−Thecompanyincurredrestructuringexpensesof16,861 in the prior year[25] - The company incurred restructuring expenses of 2.0 million for the three months ended March 31, 2025, compared to 1.6millioninthesameperiodof2024[19]−RestructuringexpensesforthetwelvemonthsendedMarch31,2025,totaled1.6 million in the same period of 2024[19] - Restructuring expenses for the twelve months ended March 31, 2025, totaled 9,783, compared to 1,622intheprioryear[25]−StockcompensationexpensefortheninemonthsendedMarch31,2025,was1,622 in the prior year[25] - Stock compensation expense for the nine months ended March 31, 2025, was 4,528, compared to 5,435intheprioryear[25]FutureOutlook−Thecompanyexpectsfiscal2025netsalestobeintherangeof5,435 in the prior year[25] Future Outlook - The company expects fiscal 2025 net sales to be in the range of 1.40 billion to 1.44billion,withadjustedoperatingincomeprojectedat3.41.44 billion, with adjusted operating income projected at 3.4% to 3.6% of net sales[9] - Capital expenditures for fiscal 2025 are estimated to be at the low-end of the guidance range of 40 million to 50million[9]−AnewmanufacturingfacilityinIndianapolisisbeingaddedtosupportthecompany′sstrategytodrivegrowthinthemedicalCMOsector[4]EarningsPerShare−BasicearningspershareforthethreemonthsendedMarch31,2025,was50 million[9] - A new manufacturing facility in Indianapolis is being added to support the company's strategy to drive growth in the medical CMO sector[4] Earnings Per Share - Basic earnings per share for the three months ended March 31, 2025, was 0.15, a recovery from a loss of 0.24pershareinthesameperiodlastyear[19]−Dilutedearningspershare,asreported,forthethreemonthsendedMarch31,2025,was0.24 per share in the same period last year[19] - Diluted earnings per share, as reported, for the three months ended March 31, 2025, was 0.15, a decrease from (0.24)intheprioryear[25]−AdjusteddilutedearningspersharefortheninemonthsendedMarch31,2025,was(0.24) in the prior year[25] - Adjusted diluted earnings per share for the nine months ended March 31, 2025, was 0.79, down from 1.25intheprioryear[25]−Thecurrentportionoflong−termdebtdecreasedto1.25 in the prior year[25] - The current portion of long-term debt decreased to 28.9 million as of March 31, 2025, from $59.8 million in the previous year[21]