Southern Indiana Business Report
JASPER — On Aug. 4, Kimball Electronics announced its financial results for the fourth quarter and fiscal year ended June 30, and the Jasper-based firm reported that fiscal year 2021 set records for net sales, operating income as a percent of net sales, diluted earnings per share, and cash flow from operating activities.
Highlights for the quarter include:
- Net sales in the fourth quarter of $329 million, up 15% year over year.
- Fourth quarter operating income of 5.2% of net sales, adjusted non-GAAP of 5.5%, representing a 170 basis points increase over adjusted non-GAAP for the same period a year earlier.
- Net income of $14.4 million in the fourth quarter, or $0.57 per diluted share, compared to net loss of $1.3 million, or $0.05 per share, in Q4 of last year.
- Fourth quarter adjusted non-GAAP net income of $14.7 million, or $0.58 per diluted share, compared to adjusted non-GAAP Q4 fiscal year 2020 net income of $8.5 million, or $0.34 per diluted share.
- Strong cash flow from operating activities of $26.3 million during the fourth quarter, the firm’s fifth consecutive quarter exceeding $20 million.
Highlights for the fiscal year include:
- Net sales increased 8% in fiscal year 2021 to $1.2918 billion, with strength in the automotive and industrial vertical markets.
- Operating income of 5.1% of net sales. Adjusted non-GAAP operating income of 5.2% of net sales, a 180 basis points improvement over fiscal year 2020.
- Net income of $56.8 million, or $2.24 per diluted share.
- Adjusted non-GAAP net income of $56.4 million, or $2.23 per diluted share, more than double fiscal 2020.
- Cash flow from operating activities of $130.1 million.
- Return on invested capital of 13.1% compared to 7.1% in fiscal 2020. ROIC is a non-GAAP financial measure, see reconciliation of non-GAAP financial measures.
- Investments in capital expenditures of $39 million.
“We are very pleased with our operating results for the fourth quarter and the strong finish to a record-setting fiscal year 2021. Our team remains laser-focused on fulfilling commitments made to our customers as we work through the ongoing challenges caused by the pandemic and the global parts shortage. Despite the headwinds, we delivered strong top line growth, excellent margin expansion, and impressive earnings growth with adjusted Q4 EPS increasing 71% over the same period last year. I could not be more proud of our team and how we’re creating quality for life,” said Donald D. Charron, chairman and chief executive officer. “We are well positioned to carry the momentum from 2021 into fiscal year 2022. As a result of the ongoing semiconductor shortage, a portion of our shippable backlog continues to shift out ahead of us, which will likely result in two very different halves for us in the fiscal year. Our full year guidance contemplates this as we expect material supply to steadily catch up with customer demand throughout the first half of fiscal year 2022, thus enabling us to ship the majority of the surplus backlog in the second half of fiscal year 2022. We expect that catching up on the backlog combined with strong organic growth from new and existing programs will provide significant year-over-year growth for us in fiscal year 2022.”
Looking ahead to fiscal year 2022, Kimball Electronics is anticipating:
- Net sales in the range of $1.4-$1.5 billion, an 8% to 16% increase year over year.
- Operating income in the range of 4.5%-5% of net sales.
- Capital expenditures of $60-$70 million in support of expansions in Thailand and Mexico.
Kimball Electronics is a multifaceted manufacturing solutions provider of electronics and diversified contract manufacturing services to customers around the world. From its operations in the United States, China, India, Japan, Mexico, Poland, Romania, Thailand and Vietnam, the firm provides manufacturing services for a variety of industries.