Kimball Electronics(US:KE)2025-05-06 21:24Financial Performance - Net sales for Q3 fiscal 2025 totaled $374.6 million, a decrease of 12% compared to $425.0 million in Q3 fiscal 2024[4] - Operating income for Q3 was $11.7 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 $425.0 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 $6.4 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 $6.1 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 $58,802 in the prior year[25] - Adjusted net income for the nine months ended March 31, 2025, was $19,718, compared to $31,607 in the prior year[25] - Operating income for the twelve months ended March 31, 2025, was $48,669, compared to $61,118 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 $105.9 million, a substantial increase from $24.7 million in the same period of 2024[20] - The company has cash and cash equivalents of $51.4 million and available borrowing capacity of $253.2 million[4] - Borrowings on credit facilities decreased by $26.2 million from Q2, totaling $178.8 million, and down $116 million, or 40%, year-to-date[4] Inventory and Orders - Inventory decreased by $9.6 million from Q2 to $296.6 million[4] - The company reported a decrease in open orders to $642 million as of March 31, 2025, compared to $831 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 $16,861 in the prior year[25] - The company incurred restructuring expenses of $2.0 million for the three months ended March 31, 2025, compared to $1.6 million in the same period of 2024[19] - Restructuring expenses for the twelve months ended March 31, 2025, totaled $9,783, compared to $1,622 in the prior year[25] - Stock compensation expense for the nine months ended March 31, 2025, was $4,528, compared to $5,435 in the prior year[25] Future Outlook - The company expects fiscal 2025 net sales to be in the range of $1.40 billion to $1.44 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 $50 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 $0.24 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) in the prior year[25] - Adjusted diluted earnings per share for the nine months ended March 31, 2025, was $0.79, down from $1.25 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]