Knowles(US:KN)2025-04-29 20:13Financial Performance - Revenues for Q1 2025 were $132.2 million, a decrease of 0.8% from $133.3 million in Q1 2024[98] - Gross profit for Q1 2025 was $53.3 million, an increase of 0.2% from $53.2 million in Q1 2024, with a gross profit margin of 40.3%[102] - Non-GAAP gross profit for Q1 2025 was $55.0 million, a decrease of 5.0% from $57.9 million in Q1 2024, with a non-GAAP gross profit margin of 41.6%[103] - Loss from continuing operations improved to $0.4 million in Q1 2025, compared to a loss of $1.0 million in Q1 2024[110] - Adjusted earnings before interest and income taxes (Adjusted EBIT) decreased to $21.7 million in Q1 2025 from $23.3 million in Q1 2024[112] - Diluted loss per share from continuing operations was nil in Q1 2025, an improvement from a loss of $0.01 in Q1 2024[114] - The company reported a non-GAAP net earnings of $16.2 million for Q1 2025, compared to $17.0 million in Q1 2024[116] Expenses - Research and development expenses increased by 3.2% to $9.7 million in Q1 2025, representing 7.3% of revenues[104] - Selling and administrative expenses decreased by 0.3% to $37.2 million in Q1 2025, representing 28.1% of revenues[105] Segment Performance - For Q1 2025, Precision Devices (PD) revenues were $72.5 million, a decrease of $1.8 million or 2.4% from $74.3 million in Q1 2024[121] - PD EBIT for Q1 2025 was $3.2 million, an increase of $5.3 million from a loss of $2.1 million in Q1 2024, resulting in an EBIT margin of 4.4%[122] - Adjusted EBIT for PD was $10.7 million in Q1 2025, up from $9.8 million in Q1 2024, with an adjusted EBIT margin of 14.8%[123] - MedTech & Specialty Audio (MSA) revenues increased to $59.7 million in Q1 2025, up $0.7 million or 1.2% from $59.0 million in Q1 2024[125] - MSA EBIT decreased to $19.3 million in Q1 2025, down $3.5 million or 15.4% from $22.8 million in Q1 2024, with an EBIT margin of 32.3%[126] - Adjusted EBIT for MSA was $21.3 million in Q1 2025, compared to $23.8 million in Q1 2024, resulting in an adjusted EBIT margin of 35.7%[127] Cash Flow and Capital Management - Cash and cash equivalents totaled $101.9 million as of March 31, 2025, down from $130.1 million at December 31, 2024[129] - In Q1 2025, net cash provided by operating activities was $1.3 million, a decrease from $17.3 million in Q1 2024[132] - Cash used in investing activities in Q1 2025 was $(3.5) million, compared to $3.8 million in Q1 2024[132] - Cash used in financing activities in Q1 2025 totaled $(26.2) million, significantly higher than $13.6 million in Q1 2024[132] - Adjusted free cash flow for Q1 2025 was $18.3 million, up from $13.3 million in Q1 2024, representing an increase of 37.6%[138] - Adjusted free cash flow as a percentage of revenues was 13.8% in Q1 2025, compared to 10.0% in Q1 2024[138] - The decrease in cash provided by operating activities in 2025 was primarily due to $21.0 million in payments to settle supplier obligations and separation costs[133] - Customer prepayments of $19.8 million partially offset the unfavorable changes in working capital in 2025[138] - Cash used in financing activities included $15.0 million in payments on the revolving credit facility and $5.0 million in common stock repurchases[136] Corporate Actions - The divestiture of the Consumer MEMS Microphones business for approximately $150.0 million supports the company's transformation into an industrial technology company[91] - The company completed the sale of the CMM segment to Syntiant for approximately $141.9 million on December 27, 2024[130] - The company has $189.0 million remaining for share repurchases under its authorized program as of March 31, 2025[131] Taxation - The effective tax rate from continuing operations for Q1 2025 was 150.0%, compared to 200.0% in Q1 2024[108] Capital Expenditures - Capital expenditures in 2025 are expected to be in the range of 4% to 6% of revenues[135]