Southern Indiana Business Report
JASPER – Jasper-based Kimball Electronics saw its net income surge to $10.1 million in its first quarter financial report issued last week.
Kimball’s net income more than tripled the $3.2 million it earned during the same period last year.
The increase was fueled primarily by structural cost realignment that expanded the Gross Margin 1.6 percentage points to 7.9%.
Kimball reported revenue of $365.6 million, down 2% from $374.3 million in the prior-year quarter. The company attributes the decline mainly to a 10% drop in automotive sales, though this is partially offset by a 13% increase in medical vertical revenue.
Operating income jumped 59% to $14.5 million.
CEO Richard D. Phillips said in prepared remarks, “I’m pleased with the results for the first quarter and start to the new fiscal year. Sales were in line with expectations, driven by strength in the medical vertical, margins improved year-over-year, cash from operations was positive for the seventh consecutive quarter, and debt at the end of Q1 was the lowest level in over three years. We have ample liquidity to navigate the current operating environment, and plenty of dry powder to opportunistically invest in growth.”
Kimball committed $29 million to capital expenditures, primarily targeting growth and capability expansion at the new Indianapolis medical facility.
Kimball plans to occupy 307,000 square feet in the 584,820-square-foot Commerce Center Building 1 on South Post Road. The expansion will add 345 jobs over six years.