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Kimball Electronics Inc. has reported net sales of $230 million for its second quarter ended December 31, 2016.
Donald D. Charron, Chairman and Chief Executive Officer, stated, "Continued strength in the automotive market combined with double-digit growth in our industrial end market vertical helped us set a new quarterly sales record for the fourth consecutive quarter. Our new program launch activity remains high as we continue to work diligently to achieve our goal of $1 billion in annual sales by fiscal year 2018."
Charron continued, "We made steady progress in our margin improvement efforts and converted well on the strong demand during the quarter; we continue to face margin pressure and have work to do to achieve our goal of 12.5% ROIC. Margin expansion and capital efficiency will continue to be priorities of focus for us. This is a pivotal year as we work through another year of significant new program launches, the continued ramp-up of our new Romania operation, and the integration of our Medivative and Aircom acquisitions."
Second Quarter Fiscal Year 2017 Overview:
- Consolidated net sales increased 11% compared to the second quarter of fiscal year 2016, the fourth consecutive quarterly sales record. Excluding sales from recent acquisitions, consolidated net sales were up 9% from the prior year quarter.
- The ramp-up of the company's Romania facility negatively impacted net income by $0.9 million during the quarter compared with the net income impact of $0.7 million from incremental start-up costs in the prior year.
- Return on invested capital (ROIC) is 10.7%, which has improved from 7.7% in the prior year (see reconciliation of non-GAAP financial measures for ROIC calculation).
- Cash flow from operating activities was $12.1 million for the quarter.
- Cash conversion days (CCD) for the quarter ended December 31, 2016 were 59 days, which were unchanged from the same quarter last year. CCD is calculated as the sum of days sales outstanding plus production days supply on hand less accounts payable days.
- Investments in capital expenditures were $9.4 million during the quarter.
- $7.4 million was returned to Share Owners during the quarter in the form of common stock repurchases.
- Cash and cash equivalents were $42.7 million and borrowings outstanding on credit facilities were $9.0 million at December 31, 2016.
About Kimball Electronics Inc.
Recognized with a reputation for excellence, Kimball Electronics is committed to a high performance culture that values personal and organizational commitment to quality, reliability, value, speed, and ethical behavior. Kimball Electronics employees know they are part of a company culture that builds lasting relationships and global success for customers while enabling employees to share in the Company’s success through personal, professional, and financial growth.