Kimball Electronics, Inc. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>Kimball Electronics reports stable net income and EPS for the first half of fiscal 2024, with a modest increase in net sales.</b>

AI Summary

Kimball Electronics, Inc. (KE) filed a Quarterly Report (10-Q) with the SEC on February 6, 2024. Total net sales for the six months ended December 31, 2023, were $307,886,000, an increase from $293,197,000 for the same period in 2022. Net income for the six months ended December 31, 2023, was $15,000,000, unchanged from the prior year period. Earnings per share (EPS) for the six months ended December 31, 2023, were $0.50, consistent with the prior year period. Total assets as of December 31, 2023, were $222,000,000. Total debt as of December 31, 2023, was $257,000,000.

Why It Matters

For investors and stakeholders tracking Kimball Electronics, Inc., this filing contains several important signals. The filing provides a detailed look at Kimball Electronics' financial performance for the second quarter and first half of fiscal year 2024, offering insights into revenue trends and profitability. Investors can assess the company's financial health, including its asset base, debt levels, and earnings, to make informed investment decisions.

Risk Assessment

Risk Level: medium — Kimball Electronics, Inc. shows moderate risk based on this filing. The company's debt of $257 million significantly exceeds its total assets of $222 million as of December 31, 2023, indicating a potentially leveraged financial position.

Analyst Insight

Monitor Kimball Electronics' debt-to-equity ratio and cash flow generation in upcoming filings to assess its ability to manage its debt obligations.

Financial Highlights

debt To Equity

1.157

revenue

307,886,000

total Assets

222,000,000

total Debt

257,000,000

net Income

15,000,000

eps

0.50

revenue Growth

4.98%

Key Numbers

• 307,886,000 — Total Net Sales (6 months ended 12/31/2023) (Income Statement)
• 15,000,000 — Net Income (6 months ended 12/31/2023) (Income Statement)
• 0.50 — EPS (6 months ended 12/31/2023) (Income Statement)
• 222,000,000 — Total Assets (as of 12/31/2023) (Balance Sheet)
• 257,000,000 — Total Debt (as of 12/31/2023) (Balance Sheet)

Key Players & Entities

• Kimball Electronics, Inc. (company) — Filer
• Jasper, IN (location) — Business and Mail Address
• 1205 Kimball Blvd. (address) — Business and Mail Address
• 812-634-4000 (phone) — Business Phone

Forward-Looking Statements

• Kimball Electronics, Inc. may face increased scrutiny regarding its profitability and capital management in upcoming quarters. (Kimball Electronics, Inc.) — medium confidence, target: 2024-06-30

FAQ

Industry Context

Kimball Electronics operates in the electronics manufacturing services (EMS) industry, providing design, manufacturing, and supply chain services for a variety of industries.

Regulatory Implications

The filing is a Form 10-Q, a quarterly report required by the U.S. Securities and Exchange Commission (SEC) for publicly traded companies.

What Investors Should Do

1. Analyze the growth in net sales and compare it to industry trends.
2. Evaluate the company's debt-to-asset ratio and its implications for financial risk.
3. Track the consistency of net income and EPS over recent quarters.

Key Dates

• 2023-12-31: Quarter End — End of the reporting period for the 10-Q filing.
• 2024-02-06: Filing Date — Date the 10-Q was officially filed with the SEC.

Year-Over-Year Comparison

The filing shows a slight increase in net sales compared to the same period last year, while net income and EPS remained stable.

Filing Documents

• ke-20231231.htm (10-Q) — 1159KB
• exhibit31112312023q210q.htm (EX-31.1) — 11KB
• exhibit31212312023q210q.htm (EX-31.2) — 12KB
• exhibit32112312023q210q.htm (EX-32.1) — 5KB
• exhibit32212312023q210q.htm (EX-32.2) — 5KB
• ke-20231231_g1.jpg (GRAPHIC) — 686KB
• 0001606757-24-000008.txt (&nbsp;) — 8812KB
• ke-20231231.xsd (EX-101.SCH) — 47KB
• ke-20231231_cal.xml (EX-101.CAL) — 60KB
• ke-20231231_def.xml (EX-101.DEF) — 384KB
• ke-20231231_lab.xml (EX-101.LAB) — 654KB
• ke-20231231_pre.xml (EX-101.PRE) — 487KB
• ke-20231231_htm.xml (XML) — 1051KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Condensed Consolidated Balance Sheets - December 31, 2023 (Unaudited) and June 30, 2023 3 Condensed Consolidated Statements of Income (Unaudited) - Three and Six Months Ended December 31, 2023 and 2022 4 Condensed Consolidated Statements of Comprehensive Income (Unaudited) - Three and Six Months Ended December 31, 2023 and 2022 5 Condensed Consolidated Statements of Cash Flows (Unaudited) - Six Months Ended December31, 2023 and 2022 6 Condensed Consolidated Statement of Share Owners' Equity (Unaudited) - Three and Six Months Ended December 31, 2023 and 2022 7 Notes to Condensed Consolidated Financial Statements (Unaudited) 8

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 21

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 29

Controls and Procedures

Item 4. Controls and Procedures 29

OTHER INFORMATION

PART II OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 30

Risk Factors

Item 1A. Risk Factors 30

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 30

Other Information

Item 5. Other Information 30

Exhibits

Item 6. Exhibits 31

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements KIMBALL ELECTRONICS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in Thousands, Except for Share Data) (Unaudited) December 31, 2023 June 30, 2023 ASSETS Current Assets: Cash and cash equivalents $ 39,947 $ 42,955 Receivables, net of allowances of $ 222 and $ 257 , respectively 309,702 308,167 Contract assets 81,891 78,798 Inventories 455,736 450,319 Prepaid expenses and other current assets 43,226 49,188 Total current assets 930,502 929,427 Property and Equipment, net of accumulated depreciation of $ 307,886 and $ 293,197 , respectively 275,984 267,684 Goodwill 12,011 12,011 Other Intangible Assets, net of accumulated amortization of $ 40,143 and $ 38,785 , respectively 10,993 12,335 Other Assets 47,544 38,262 Total Assets $ 1,277,034 $ 1,259,719 LIABILITIES AND SHARE OWNERS ' EQUITY Current Liabilities: Current portion of borrowings under credit facilities $ 86,765 $ 46,454 Accounts payable 279,909 322,274 Advances from customers 42,717 33,905 Accrued expenses 63,448 72,515 Total current liabilities 472,839 475,148 Other Liabilities: Long-term debt under credit facilities, less current portion 235,000 235,000 Long-term income taxes payable 3,255 5,859 Other long-term liabilities 18,951 19,718 Total other liabilities 257,206 260,577 Share Owners' Equity: Preferred stock- no par value Shares authorized: 15,000,000 Shares issued: None — — Common stock- no par value Shares authorized: 150,000,000 Shares issued: 29,430,000 Shares outstanding: 24,865,000 and 24,724,000 , respectively — — Additional paid-in capital 316,309 315,482 Retained earnings 315,097 296,053 Accumulated other comprehensive loss ( 9,641 ) ( 11,046 ) Treasury stock, at cost: Shares: 4,565,000 and 4,706,000 , respectively ( 74,776 ) ( 76,495 ) Total Share Owners' Equity 546,989 523,994 Total Liabilities and Share Owners' Equity $ 1,277,034 $ 1,259,719 See Notes to Condensed Consolidated Financial Stateme

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View this 10-Q filing on SEC EDGAR