Kimball Electronics reports Q4 results

ByLocal Sources Reading Time: 2 minutes

Fourth Quarter 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

Kimball Electronics, Inc. (Nasdaq: KE) today announced financial results for the fourth quarter and fiscal year ending June 30, 2024.

Commenting on the announcement, Richard D. Phillips, Chief Executive Officer, stated, “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. 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.”

Mr. Phillips continued, “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. Proceeds from the sale, combined with actions taken to navigate the current environment, have strengthened our balance sheet with increased liquidity and financial flexibility. In addition, recent new program wins, which will start to impact fiscal 2026, make us excited for the future.”

The company ended the fourth quarter of fiscal 2024 with cash and cash equivalents of $78.0 million and borrowings outstanding on credit facilities of $294.8 million, including $235.0 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.

Fiscal Year 2024 Highlights:

  • Net sales totaled $1,714.5 million, the second-highest year in the history of the company
  • Adjusted operating income of $74.3 million, or 4.3% of net sales
  • Inventory reductions of $112 million, or 25%, year-over-year
  • Cash flow generated from operating activities of $73 million
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