Kimball Electronics Reports Q1 Results: Record Sales, Improving Year-over-Year Operating Margin
Company affirms guidance for fiscal 2023 with full year expected t the high end of the range for sales and operating margin
- Net sales in the first quarter of fiscal 2023 totaled $405.9 million, an all-time quarterly high and up 39% year-over-year; foreign currency had a 5% unfavorable impact on net sales compared to the first quarter of fiscal 2022
- Operating income of $13.6 million, or 3.3% of net sales, compared to operating income of $4.8 million, or 1.6% of net sales in the same period last year
- Net income of $9.5 million, or $0.38 per diluted share, compared to net income of $2.6 million, or $0.10 per diluted share, in the first quarter of fiscal 2022
JASPER, Ind.–Kimball Electronics, Inc. (Nasdaq: KE) today announced financial results for the first quarter ended September 30, 2022.
|
|
Three Months Ended |
||||||
|
|
September 30, |
||||||
|
(Amounts in Thousands, except EPS) |
2022 |
|
2021 |
||||
|
Net Sales |
$ |
405,889 |
|
|
$ |
292,717 |
|
|
Operating Income |
$ |
13,571 |
|
|
$ |
4,780 |
|
|
Adjusted Operating Income (non-GAAP) (1) |
$ |
13,336 |
|
|
$ |
3,309 |
|
|
Operating Income % |
|
3.3 |
% |
|
|
1.6 |
% |
|
Adjusted Operating Income (non-GAAP) % |
|
3.3 |
% |
|
|
1.1 |
% |
|
Net Income |
$ |
9,509 |
|
|
$ |
2,564 |
|
|
Adjusted Net Income (non-GAAP) (1) |
$ |
9,509 |
|
|
$ |
1,514 |
|
|
Diluted EPS |
$ |
0.38 |
|
|
$ |
0.10 |
|
|
Adjusted Diluted EPS (non-GAAP) (1) |
$ |
0.38 |
|
|
$ |
0.06 |
|
|
(1) A reconciliation of GAAP and non-GAAP financial measures is included below. |
|||||||
Donald D. Charron, Chairman and Chief Executive Officer, stated, “I am pleased with our results in Q1 and the strong start to the new fiscal year. For the third consecutive quarter, net sales surged to a record-breaking level, setting another all-time high for our company, and operating margin improved compared to the same period last year. This was in line with our estimates as we ramp-up production on new and existing programs, and leverage our facility expansions in Thailand and Mexico. These investments, however, increased fixed costs that were not fully absorbed when comparing the operating margin rate to Q4 of fiscal 2022. New customers and product start-ups generally cause margin dilution early in the life cycle, which are recovered as the program matures. As a result, we expect sequential quarterly increases in a stair stepped fiscal 2023, and we are affirming our guidance for the full year with results expected at the high end of the range for sales and operating margin.”
As part of today’s announcement, the Company is affirming its guidance for fiscal year 2023.
- Net sales in the range of $1.6 – $1.7 billion, a 19% – 26% increase year-over-year
- Operating income in the range of 4.6% – 5.2% of net sales
- Capital expenditures in the range of $80 – $100 million, supporting the facility expansion in Poland, new product introductions, and the addition of equipment with leading-edge technologies and capabilities
