Jasper — Kimball Electronics, Inc. (Nasdaq: KE) announced financial results for the first quarter of fiscal 2024.
|Three Months Ended|
|(Amounts in Thousands, except EPS)||2023||2022|
|Operating Income %||4.4||%||3.3||%|
“I am very pleased with our results for the first quarter, particularly in light of the current macro environment. Q1 was a strong start to the fiscal year, with record first-quarter sales and operating income, year-over-year margin expansion, and 13 percent growth in net income,” Richard D. Phillips, Chief Executive Officer, stated. “While these results were in line with our expectations, we have been evaluating the impact of recent short-term market disruptions, including the UAW strike, global economic conditions, and geopolitical events, and have updated our guidance for the full year of fiscal 2024 to reflect softening demand in the end market verticals we serve.”
Mr. Phillips continued, “Longer-term, we continue to be encouraged by the growth opportunities in these markets, supported by favorable industry megatrends. With a strong funnel of new business, our capital allocation strategy is focused on organic growth, which will likely include additional global expansions in the future, combined with investments in automation and efficiency. We are winning together, the Kimball way, and I am excited about what lies ahead for our Company.”
The company ended the first quarter of fiscal 2024 with cash and cash equivalents of $56.6 million and borrowings outstanding on credit facilities of $296.7 million, including $235.0 million classified as long-term and $90.5 million of borrowing capacity available. Cash flow generated from operating activities in the first quarter of fiscal 2024 was $12.8 million, and capital expenditures were $11.3 million.
Net Sales by Vertical Market for Q1 Fiscal 2024:
|Three Months Ended|
|(Amounts in Millions)||2023||*||2022||*||Percent Change|
|Total Net Sales||$||438.1||$||405.9||8||%|
|* As a percent of Total Net Sales|
|(1) Beginning in fiscal year 2024, miscellaneous sales previously reported in Other are now reported in the respective three end market verticals; all prior periods have been recast to conform to current period presentation|
|– Automotive includes electronic power steering, body controls, automated driver assist systems, and electronic braking systems|
|– Medical includes sleep therapy and respiratory care, image guided therapy, in vitro diagnostics, drug delivery, AED, and patient monitoring|
|– Industrial includes climate controls, automation controls, optical inspection, smart metering, and public safety|
Net sales for fiscal year 2024 are now expected to be flat with the prior year, compared to the previous estimate of a 4 percent to 7 percent increase. Operating income is also estimated to align with fiscal 2023, compared to the previous guidance range of 4.7 percent to 5.2 percent of net sales. The outlook for capital expenditures did not change, with a range of $70 to $80 million.