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Kimball Electronics, Inc., a leading global electronic manufacturing services provider for high-quality, durable electronic products, today announced financial results for its fourth quarter and fiscal year ended June 30, 2015.
Chairman and Chief Executive Officer Donald D. Charron said, "After three consecutive quarters of double-digit growth, we experienced some softness in our fourth quarter. Overall, our book of business is relatively stable and we continue to work closely with our customers to understand their expected demand going forward. We have set a mid-range goal of achieving $1 billion in annual sales in fiscal year 2018. Our new business opportunities pipeline remains healthy and we will continue to work diligently to achieve that goal."
Charron continued, "We were very pleased with our fiscal year 2015 results. We grew our sales by over 10%, setting a new annual sales record while exceeding our operating income goal of 4%. Our functional teams substantially completed the spin-off related actions necessary to physically separate the information technology systems and office facilities from Kimball International six months ahead of the original schedule. Our operations teams remain focused on disciplined execution and, after our first eight months as a standalone public company, we continue to have good momentum going into fiscal year 2016."
Fourth Quarter Fiscal Year 2015 Highlights:
- Net sales increased 1% from the prior year fourth quarter.
- Sales related to the exit of JCI were down $16.8 million compared to the same quarter last year.
- Spin-off expenses in the current year fourth quarter were insignificant. Prior year fourth quarter spin-off costs were $1.4 million.
- Cash flows provided by operating activities for the fourth quarter of fiscal year 2015 were $16.8 million.
- Cash and cash equivalents at June 30, 2015 were $65.2 million.
- Days sales outstanding, calculated as the average of monthly trade accounts and notes receivable divided by one day's average net sales, was 61.6 days for the three months ended June 30, 2015 compared to 56.0 days for the three months ended June 30, 2014.
Fiscal Year 2015 Highlights:
- Net sales increased 10% from the prior fiscal year.
- Sales related to the exit of JCI were down $57.6 million compared to the prior year.
- Spin-off expenses totaled $2.6 million and $2.2 million in fiscal years 2015 and 2014, respectively.
- The prior fiscal year comparison includes $5.7 million of pre-tax income resulting from settlement proceeds related to two antitrust class action lawsuits of which the Company was a member.
- Cash flows provided by operating activities for fiscal year 2015 were $28.1 million.
- Capital expenditures were $36.9 million in fiscal year 2015 compared to $20.8 million in fiscal year 2014.
Kimball Electronics' financial statements for fiscal year 2015 include an allocation of costs incurred by its former parent company through October 31, 2014, the completion date of the spin-off. As a result, the full year financial statements are not necessarily indicative of the complete future cost structure or expected future financial results of Kimball Electronics as an independent company.
- The China automotive market is expecting to slow as evidenced by the recent lowering of the forecasted growth rate for auto sales in calendar year 2015 by China's Association of Automobile Manufacturers.
- Given the slowing China automotive market, incremental costs related to the Romania greenfield start-up, and the ramp up of a significant new product introduction, management is maintaining its operating income goal of 4% for fiscal year 2016.
- Capital expenditures, including capital related to the Romania greenfield start-up, for fiscal year 2016 are expected to be slightly higher than fiscal year 2015.
- A new mid-range goal of $1 billion in net sales by fiscal year 2018 has been set by Management.
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.