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Kimball Electronics, Inc. has announced financial results for its third quarter ended March 31, 2018.
Donald D. Charron, chairman and chief executive officer, stated, “Very strong growth in our automotive and medical end market verticals helped us set a new quarterly sales record for the ninth consecutive quarter. We are now on a pace to significantly exceed our long-time stated goal of $1 billion in annual sales in fiscal year 2018.”
Charron continued, “We are pleased to have set new quarterly records for net income and diluted EPS in the third quarter of fiscal year 2018. The fourth quarter of fiscal year 2018 is a pivotal quarter for our margin expansion efforts as we continue to focus on yield and throughput improvements on recently launched new programs and further progress on the ramp-up in Romania to help us achieve our goal of 4.5% operating income.”
Third Quarter Fiscal Year 2018 Overview:
- Consolidated net sales increased 22% compared to the third quarter of fiscal year 2017, which included a 7% favorable impact from foreign currency movements. This represents the ninth consecutive quarterly sales record.
- The current year quarter results include non-operating income related to pre-tax net gains from foreign currency movements of $2.1 million. In the prior year third quarter, pre-tax net gains from foreign currency movements in non-operating income were less than $0.1 million.
- Return on invested capital (“ROIC”) was 10.2% for the first nine months of fiscal year 2018, which compares to 10.7% for the same period of the prior year (see reconciliation of non-GAAP financial measures for ROIC calculation).
- Operating activities provided cash flow of $9.5 million during the quarter, which compares to cash flow provided by operating activities of $8.7 million in the third quarter of fiscal year 2017.
- Cash conversion days (“CCD”) for the quarter ended March 31, 2018 were 62 days, up slightly from 61 days in 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 $7.2 million during the quarter.
- Cash and cash equivalents were $44.2 million and borrowings outstanding on credit facilities were $16.3 million at March 31, 2018.
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.
Kimball Electronics trades under the symbol “KE” on The NASDAQ Stock Market. Kimball Electronics is a global contract electronic manufacturing services (“EMS”) company that specializes in durable electronics for the automotive, medical, industrial, and public safety end markets. Kimball Electronics is well recognized by customers and industry trade publications for its excellent quality, reliability, and innovative service. From its manufacturing operations in the United States, China, Mexico, Poland, Romania, and Thailand, Kimball Electronics provides electronic manufacturing services, including engineering and supply chain support, which utilize common production and support capabilities to a variety of industries globally. Kimball Electronics is headquartered in Jasper, Indiana.
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