Southern Indiana Business Report
JASPER – Kimball Electronics reported near record high sales in fiscal year 2024, however that achievement was offset by a decrease in net income. Kimball’s annual net income was $20.5 million in FY 2024, down from $55.8 million the previous year.
Kimball reported net sales of $1,714.5 million, the second highest year in the history of the company.
Kimball, based in Jasper, announced its financial results for the fourth quarter and fiscal year which ended June 30, on Tuesday.
“Q4 was another quarter focused on ‘controlling what we can control’. The operating environment for the EMS industry remains challenged and many contract manufacturing organizations, Kimball included, have adjusted expectations on continued weakness in end market demand,” said Richard D. Phillips, Kimball chief executive officer. “ In the verticals we serve, the pull back has been more significant than originally anticipated, and we continue to appropriately adjust our cost structure to maintain competitiveness with stable operating margins, improve working capital management with lower inventory levels, and generate positive cash flow.”
Q4 fiscal 2024 highlights
- Net sales totaled $430.2 million
- Operating income of $19.6 million, or 4.6% of net sales
- Adjusted operating income of $20.9 million, or 4.9% of net sales
- Cash flow generated from operating activities of $48.5 million, driven by inventory reductions
The financial report follows Kimball’s announcement that it completed the divestiture of its automation, test and measurement division. The sale to Averna Technologies Inc. closed on July 31, with the proceeds from the transaction being used for support of organic growth, debt reduction and share repurchases. Kimball Electronics entered the automation, test and measurement industry with the acquisition of Global Equipment Services Inc. in 2018.
“Earlier this month, we announced the completion of the divestiture of the Automation, Test and Measurement business. Closure on the sale represents a significant milestone for our Company, and another important step toward sharpening our strategic focus and returning to profitable growth and stronger performance Phillips said.
Proceeds from the sale, Phillips said, will strengthen Kimball’s financial flexibility and balance sheet.
Kimball ended The Company ended the fourth quarter with cash and cash equivalents of $78 million and borrowings outstanding on credit facilities of $294.8 million, including $235 million classified as long term, and $142.1 million of borrowing capacity available. Capital expenditures were $9.1 million in the fourth quarter, and the Company invested $3 million to repurchase 136,000 shares of common stock.