Methode Electronics(US:MEI)2022-12-01 12:30Financial Performance - Net sales increased by $20.4 million, or 6.9%, to $315.9 million for the three months ended October 29, 2022, compared to $295.5 million for the same period in 2021[111]. - Net sales for the six months ended October 29, 2022, increased by $15.0 million, or 2.6%, to $598.3 million, compared to $583.3 million for the same period in 2021[112]. - Net income decreased by $7.5 million, or 13.3%, to $49.1 million in the six months ended October 29, 2022, compared to $56.6 million in the same period last year[127]. Cost and Expenses - Cost of products sold rose by $15.5 million, or 6.8%, to $241.8 million, representing 76.5% of net sales for the three months ended October 29, 2022[113]. - Selling and administrative expenses increased by $5.4 million, or 17.3%, to $36.6 million, which is 11.6% of net sales for the three months ended October 29, 2022[117]. - Interest expense, net decreased to $0.5 million for the three months ended October 29, 2022, compared to $1.1 million for the same period in 2021[120]. Profitability - Gross profit margin was 23.5% of net sales for the three months ended October 29, 2022, compared to 23.4% for the same period in 2021[115]. - The gross profit margin for the six months ended October 29, 2022, decreased to 22.7% compared to 24.2% for the same period in 2021, attributed to higher material costs[116]. - Automotive segment gross profit decreased by $11.2 million, or 14.2%, to $67.7 million in the six months ended October 29, 2022, compared to $78.9 million in the same period last year[134]. - Industrial segment gross profit increased by $8.7 million, or 15.8%, to $63.7 million in the six months ended October 29, 2022, compared to $55.0 million in the same period last year[142]. Segment Performance - Automotive segment net sales decreased by $18.3 million, or 4.7%, to $373.5 million in the six months ended October 29, 2022, compared to $391.8 million in the same period last year[131]. - Industrial segment net sales increased by $36.7 million, or 23.1%, to $195.9 million in the six months ended October 29, 2022, compared to $159.2 million in the same period last year[139]. - Interface segment net sales decreased by $3.6 million, or 11.7%, to $27.1 million in the six months ended October 29, 2022, compared to $30.7 million in the same period of 2021[147]. - Medical segment net sales increased by $0.3 million to $1.1 million in the three months ended October 29, 2022, compared to $0.8 million in the same period of 2021, attributed to higher product acceptance[153]. Cash Flow and Financing - Net cash provided by operating activities decreased by $8.6 million to $28.1 million in the six months ended October 29, 2022, compared to $36.7 million in the same period of 2021[165]. - Net cash used in financing activities was $48.7 million in the six months ended October 29, 2022, a decrease from $69.7 million in the same period of 2021[167]. - The company entered into a new Credit Agreement on October 31, 2022, increasing revolving credit commitments to $750 million and allowing for additional borrowings up to $250 million[162]. Market Conditions - The semiconductor supply shortage is expected to continue impacting operating results and financial condition for the remainder of fiscal 2023[107]. - The company experienced unfavorable impacts from foreign currency translation amounting to $22.2 million in the three months ended October 29, 2022[111]. - There has been no significant change in the company's exposure to market risk during the six months ended October 29, 2022[175]. Shareholder Actions - As of October 29, 2022, the company had $129.6 million in cash and cash equivalents, with $86.1 million held in subsidiaries outside the U.S.[159]. - The company authorized an additional $100.0 million for its share buyback program, bringing the total authorized amount to $200.0 million, with $97.2 million remaining available for purchase as of October 29, 2022[161].