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Kimball Electronics, Inc. today announced financial results for its first quarter ended September 30, 2018.
“We achieved solid year-over-year organic growth in three of our four end market verticals as the ramp-up of new program launches helped to more than offset softness in certain mature programs,” said Donald D. Charron, chairman and CEO.
“While this was a challenging quarter for us, we are cautiously optimistic that our goals of 8% organic sales growth and 4.5% operating income remain within our reach for fiscal year 2019,” Charron continued.
First Quarter Fiscal Year 2019 Overview:
Consolidated net sales increased 5% organically compared to the first quarter of fiscal year 2018.
The current quarter includes non-operating expense of $0.7 million related to pre-tax net losses from foreign currency movements, which compares to pre-tax net gains of $1.1 million recognized in non-operating income in the same quarter of the prior year related to foreign currency movements.
The Romania facility continues to progress in its ramp-up and improved its impact to the consolidated operating income percent by 30 basis points compared to the prior year first quarter.
Operating activities used cash of $10.0 million during the quarter, which compares to cash used by operating activities of $0.2 million in the first quarter of fiscal year 2018.
Cash conversion days (“CCD”) for the quarter ended September 30, 2018 were 68 days, up from 59 days in
the same quarter last year. CCD is calculated as the sum of days sales outstanding plus contract asset days plus production days supply on hand less accounts payable days.
$5.4 million was returned to Share Owners during the quarter in the form of common stock repurchases.
Investments in capital expenditures were $4.8 million during the quarter.
Cash and cash equivalents were $75.0 million and borrowings outstanding on credit facilities were $59.3 million at September 30, 2018.
Return on invested capital (“ROIC”), calculated for the trailing twelve months, was 9.3% and 10.2% for the twelve months ended September 30, 2018 and 2017, respectively (see reconciliation of non-GAAP financial measures for ROIC calculation).
About Kimball Electronics, Inc.
WHO WE ARE Kimball Electronics is a leading contract manufacturer of durable electronics serving a variety of industries on a global scale. The customer is the focus of everything we do and our touch is felt throughout daily life via the markets we serve: Automotive, Industrial, Medical, and Public Safety. Recognized for a reputation of excellence, we are committed to a high-performance culture that values personal and organizational commitment to quality, reliability, value, speed, and ethical behavior. Our employees know they are part of a company culture that is committed to doing the right thing. We build lasting relationships and global success for customers while enabling employees to share in the Company’s success through personal, professional, and financial growth.
WHAT WE DO Kimball Electronics trades under the symbol “KE” on The NASDAQ Stock Market. Kimball Electronics is a preeminent Electronics Manufacturing Services (“EMS”) provider serving customers around the world. Additionally, Kimball Electronics offers diversified contract manufacturing services (“DCMS”) for non-electronic components, medical disposables, and plastics. GES, a Kimball Electronics Company, specializes in design, production and servicing of automation, test, and inspection equipment for the semiconductor, electronics, and life sciences industries. From our operations in the United States, China, India, Japan, Mexico, Poland, Romania, Thailand, and Vietnam, our teams are proud to provide manufacturing services for a variety of industries globally. Kimball Electronics is headquartered in Jasper, Indiana.
To learn more about Kimball Electronics, click here.