Kimball Electronics, Inc. (Nasdaq:KE), a leading global electronic manufacturing services provider for high-quality, durable electronic products, today announced financial results for its second quarter of fiscal year 2015 which ended December 31, 2014.
Donald D. Charron, Chairman and Chief Executive Officer, stated, "Strong growth in three of our four end market verticals helped us set a new quarterly sales record for the second consecutive quarter. Solid growth with existing customers as well as sales from new program wins helped us overcome the previously announced decline in sales to JCI (Johnson Controls, Inc.). The JCI build-out is substantially complete. We continue to work on filling the hole created by the loss of this business, and are encouraged by our progress."
Mr. Charron concluded, "Our new business opportunities pipeline remains healthy, and we continue to have good momentum after becoming a separate stand-alone publicly traded company upon the completion of the spin-off from Kimball International on October 31st."
Second Quarter Fiscal Year 2015 Highlights:
- Net sales of $207.6 million increased 15% from the prior year second quarter. Sales related to the exit of JCI were down $12.3 million compared to the same quarter last year.
- Gross profit as a percent of net sales increased 0.9 percentage points from the prior year second quarter.
- Spin-off expenses in the current year second quarter totaled $1.3 million.
- Operating income was $8.7 million (4.2% of net sales) while adjusted operating income (non-GAAP), excluding spin-off costs, was $10.0 million (4.8% of net sales).
- Net income was $6.2 million for the second quarter with adjusted net income (non-GAAP) of $7.4 million.
- Diluted earnings per share was $0.21 and adjusted diluted earnings per share (non-GAAP) was $0.25 for the second quarter of fiscal year 2015.
- Cash flows provided by operating activities for the second quarter of fiscal year 2015 was $8.0 million.
- Cash and cash equivalents at December 31, 2014 was $61.7 million, which included $44.3 million transferred from Kimball International upon completion of the spin-off.
- Days sales outstanding, calculated as accounts receivable divided by one day's average net sales, was 59.5 days for the three months ended December 31, 2014 compared to 58.8 days for the three months ended December 31, 2013.
Kimball Electronics' financial statements for the second quarter ended December 31, 2014 include an allocation of costs incurred by its former parent company during the month of October prior to the completion of the spin-off on October 31, 2014. As a result, the financial statements are not necessarily indicative of the complete future cost structure or expected future financial results of Kimball Electronics as an independent company, particularly in the areas of overhead, interest, and taxes.