Southern Indiana Business Report
JASPER – Kimball Electronics reported net sales of $496.1 million, a 33% increase compared to fourth quarter net sales from fiscal year 2022 and completed its fiscal year with a top-line growth of 35% in its latest earnings report released Wednesday.
The Jasper-based company also reported net income of $19.2 million, or $0.76 per diluted share for Q4. In fiscal year 2023, Kimball Electronics earned $2.22 per diluted share, a 79% increase compared to the prior year.
Kimball Electronics CEO Richard D. Phillips said Q4 represents the sixth consecutive quarter with record sales, and operating income.
“The strong finish to the fiscal year drove net sales above the guidance we provided in May, and contributed to better than expected cash flow generation in the quarter,” Phillips said in a statement released by Kimball. “This performance was achieved with the highest levels of teamwork from our global organization, and many others in the value chain. I would like to thank our employees, our customers and our vendor partners for their passion, commitment, and support.”
Fiscal year 2023 was an excellent year, Phillips added, noting a 79% increase in net income and improved return on invested capital.
“Each of our three vertical end markets reported strong results, with the sales volume to 48% of our customers reaching all-time highs. The team supported new product introductions at a rate four times above the historic norm, and we continued to leverage our facility expansions in Thailand and Mexico, while navigating a challenging macro environment,” Phillips said. “While we continue to see a strong pipeline for future growth, fiscal 2024 is tempered by slower sales with a large medical customer. Longer term we are excited by the prospects of our funnel of new business, and the relationship with this customer in particular.”
Fiscal year 2023 highlights:
- Net sales for fiscal year 2023 totaled $1,823.4 million, representing constant currency growth of 38% year-over-year when excluding the impact of foreign currency, which had a 3% unfavorable impact on net sales.
- Operating income of $87.7 million, or 4.8% of net sales, an improvement compared to $52.5 million, or 3.9% of net sales, in fiscal 2022.
- Net income of $55.8 million, or $2.22 per diluted share, a significant increase compared to net income of $31.3 million, or $1.24 per diluted share, in fiscal 2022.
- Capital expenditures of $90.7 million, supporting facility expansions in Thailand, Mexico, and Poland.
- Return on invested capital of 9.4%, a 220-basis point improvement compared to fiscal 2022; ROIC is a non-GAAP financial measure, see reconciliation of non-GAAP financial measures.