Methode Electronics Files Annual 10-K Report

TL;DR

Methode Electronics filed its 10-K for FY24. All systems go.

AI Summary

Methode Electronics Inc. filed its 10-K for the fiscal year ending April 27, 2024. The company, headquartered in Chicago, IL, operates in the electronic connectors industry. Key financial data and operational details for the period are presented in this filing, which also includes information on its credit facilities and stock plans.

Why It Matters

This filing provides a comprehensive overview of Methode Electronics' financial health and operational performance for the past fiscal year, crucial for investors and stakeholders to assess the company's standing.

Risk Assessment

Risk Level: medium — The filing is a standard annual report and does not contain immediate red flags or significant positive news that would alter the risk profile.

Key Numbers

• 0429 — Fiscal Year End (Indicates the end of the company's financial reporting period.)
• 001-33731 — SEC File Number (Unique identifier for the company's filings with the SEC.)

Key Players & Entities

• METHODE ELECTRONICS INC (company) — Filer
• 20240427 (date) — Fiscal Year End
• CHICAGO, IL (location) — Business Address
• Bank of America NA (company) — Lender
• Wells Fargo Bank NA (company) — Lender
• 2024-04-27 (date) — Reporting Date

FAQ

Key Financial Figures

• $0.50 — ) on which registered Common Stock, $0.50 Par Value MEI New York Stock Exchan
• $49.1 million — ditures for such activities amounted to $49.1 million for fiscal 2024, $35.0 million for fisc
• $35.0 million — unted to $49.1 million for fiscal 2024, $35.0 million for fiscal 2023 and $35.7 million for f
• $35.7 million — 2024, $35.0 million for fiscal 2023 and $35.7 million for fiscal 2022. Government Regulatio

Filing Documents

• mei-20240427.htm (10-K) — 3884KB
• mei-ex10_42.htm (EX-10.42) — 67KB
• mei-ex10_43.htm (EX-10.43) — 40KB
• mei-ex10_44.htm (EX-10.44) — 1800KB
• mei-ex19.htm (EX-19) — 42KB
• mei-ex21.htm (EX-21) — 39KB
• mei-ex23.htm (EX-23) — 8KB
• mei-ex31_1.htm (EX-31.1) — 15KB
• mei-ex31_2.htm (EX-31.2) — 15KB
• mei-ex32.htm (EX-32) — 12KB
• mei-ex97.htm (EX-97) — 26KB
• img74475717_0.jpg (GRAPHIC) — 337KB
• img98618946_0.jpg (GRAPHIC) — 84KB
• img98618946_1.jpg (GRAPHIC) — 84KB
• img98618946_2.jpg (GRAPHIC) — 84KB
• img99542467_0.jpg (GRAPHIC) — 84KB
• img99542467_1.jpg (GRAPHIC) — 84KB
• img99542467_2.jpg (GRAPHIC) — 84KB
• img99542467_3.jpg (GRAPHIC) — 84KB
• 0000950170-24-082852.txt ( ) — 21572KB
• mei-20240427.xsd (EX-101.SCH) — 2103KB
• mei-20240427_htm.xml (XML) — 4225KB

Business

Business 2 Item 1A.

Risk Factors

Risk Factors 5 Item 1B. Unresolved Staff Comments 15 Item 1C. Cybersecurity 15 Item 2.

Properties

Properties 16 Item 3.

Legal Proceedings

Legal Proceedings 16 Item 4. Mine Safety Disclosures 17 Information about our Executive Officers 17 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 18 Item 6. [Reserved] 19 Item 7.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 20 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 31 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 31 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 31 Item 9A.

Controls and Procedures

Controls and Procedures 32 Item 9B. Other Information 34 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 35 PART III Item 10. Directors, Executive Officers and Corporate Governance 36 Item 11.

Executive Compensation

Executive Compensation 36 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 36 Item 13. Certain Relationships and Related Transactions, and Director Independence 37 Item 14. Principal Accountant Fees and Services 37 PART IV Item 15. Exhibits and Financial Statement Schedules 38 Item 16. Form 10-K Summary 40

Signatures

Signatures 41 Table of Contents PART I As used herein, "we," "us," "our," the "Company" or "Methode" means Methode Electronics, Inc. and its subsidiaries. CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K ("this Annual Report") includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect, when made, our current views with respect to current events and financial performance. Such forward-looking statements are subject to many risks, uncertainties and factors relating to our operations and business environment, which may cause our actual results to be materially different from any future results, expressed or implied, by such forward-looking statements. All statements that address future operating, financial or business performance or our strategies or expectations are forward-looking statements. In some cases, you can identify these statements by forward-looking words such as "may," "might," "will," "should," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "projects," "potential," "outlook" or "continue," and other comparable terminology. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: Dependence on the automotive, commercial vehicle, and construction industries; Timing, quality and cost of new program launches; Changes in electric vehicle ("EV") demand; Investment in programs prior to the recognition of revenue; Failure to attract and retain qualified personnel; Impact from production delays or cancelled orders; Impact from inflation; Dependence on the availability and price of materials; Dependence on a small number of large customers, including one large automotive customer; Dependence on our supply chain; Risks related to conducting global operations; Effects of potential catastrophic events or

Business

Item 1. Business Description of Business We are a leading global supplier of custom engineered solutions with sales, engineering and manufacturing locations in North America, Europe, Middle East and Asia. We design, engineer and produce mechatronic products for Original Equipment Manufacturers ("OEMs") utilizing our broad range of technologies for user interface, light-emitting diode ("LED") lighting system, power distribution and sensor applications. Our solutions are found in the end markets of transportation (including automotive, commercial vehicle, e-bike, aerospace, bus and rail), cloud computing infrastructure, construction equipment and consumer appliance. Acquisition of Nordic Lights Group Corporation ("Nordic Lights") We acquired 92.2% of the outstanding shares of Nordic Lights on April 20, 2023. We acquired the remaining 7.8% of the outstanding shares of Nordic Lights in the year ended April 27, 2024. Accordingly, as of April 27, 2024, we own 100% of Nordic Lights. The results of operations of Nordic Lights are reported within the Industrial segment. See Note 3, "Acquisition and Disposition" to the consolidated financial statements in this Annual Report for further information. Fiscal Year We maintain our financial records on the basis of a 52 or 53-week fiscal year ending on the Saturday closest to April 30. Fiscal 2024 ended on April 27, 2024, fiscal 2023 ended on April 29, 2023 and fiscal 2022 ended on April 30, 2022, and each represented 52 weeks of results. Operating Segments Our business is managed, and our financial results are reported, based on the following four segments: Automotive, Industrial, Interface and Medical. See Note 15, "Segment Information and Geographic Area Information" to the consolidated financial statements in this Annual Report for further information. The Automotive segment supplies electronic and electro-mechanical devices and related products to automobile OEMs, either directly or through their tiered sup

Ri sk Factors

Item 1A. Ri sk Factors Our business, financial condition and results of operations are subject to various risks, including, but not limited to, those set forth below, which could cause actual results to vary materially from recent results or from anticipated future results. These risk factors should be considered together with information included elsewhere in this Annual Report. Operational and Industry Risks We are susceptible to trends and factors affecting the automotive, commercial vehicle, and construction industries. We derive a substantial portion of our revenues from customers in the automotive, commercial vehicle, and construction industries. Factors negatively affecting these industries also negatively affect our business, financial condition and results of operations. Automotive sales and production are highly cyclical and, in addition to general economic conditions, also depend on other factors, such as consumer confidence and consumer preferences. Any adverse occurrence, including industry slowdowns, recession, rising interest rates, rising fuel costs, political instability, costly or constraining regulations, armed hostilities, terrorism, excessive inflation, prolonged disruptions in one or more of our customers' production schedules or labor disturbances or work stoppages, that results in a significant decline in sales volumes in these industries, or in an overall downturn in the business and operations of our customers in these industries, could materially adversely affect our business, financial condition and results of operations. Our inability, or our customers' inability, to effectively manage the timing, quality and cost of new program launches could adversely affect our financial performance. In connection with the awarding of new business, we obligate ourselves to deliver new products that are subject to our customers' timing, performance and quality demands. Additionally, we must effectively coordinate the activities of numerous

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