Kimball Electronics, Inc. Reports Fourth Quarter Loss And Fiscal Year 2020 Results

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Kimball Electronics, Inc.  announced financial results for its fourth quarter and fiscal year ended June 30, 2020.

Highlights include:

• Net sales in the fourth quarter were $286 million, down 10% year over year
• Fourth quarter net loss of $1.3 million, which includes a non-cash after-tax goodwill impairment charge of $6.9 million and after-tax non-operating charge of $2.9 million related to the finalization of the net working capital adjustment after the measurement period for the GES acquisition
• Adjusted net income of $8.5 million
• Loss per share of $0.5 and adjusted diluted earnings per share (non-GAAP) of $0.34 for the quarter
• Strong cash flows provided by operating activities of $21.5 million during the fourth quarter

Donald D. Charron, chairman and chief executive officer, stated, “We are pleased with the operating results we delivered in the fourth quarter of fiscal year 2020 despite the global interruptions and challenges caused by the COVID-19 pandemic. The health and safety of our employees remains our number one priority, and we continue to make every effort to keep our facilities safe, utilizing protection shields, face masks, body temperature scanning, social distancing, and proper hygiene.

“Of our 6,400 employees around the world, approximately 1% have tested positive for the virus and in each positive test case, our responses followed our procedures for communication to our employees, contact tracing, self-quarantining, testing, and sanitization of the affected work areas. Because of the disciplined response and extraordinary effort of our people around the world, we were able to perform our mission as an ‘essential business’ and support the significant increases from our medical customers for their respiratory care and patient monitoring products.”

He continues, “In the fourth quarter of fiscal year 2020, sales in our medical vertical increased 23% compared to the fourth quarter of fiscal year 2019 and were up 42% sequentially. We expect the momentum in our medical vertical to continue during the first half of fiscal year 2021. I feel honored and privileged that our company can play such an important role to help in the recovery of people infected by the virus.”

Charron concluded, “The sales decline in our automotive vertical was disappointing, but was not surprising, given the extensive automotive plant shutdowns across North America and Europe during the months of April and May. While the automotive industry restart has been slower than expected, we are encouraged to see our June-ending run rates start to approach pre-COVID-19 levels. Lastly, while changes to anticipated revenues for our GES reporting unit resulted in an impairment charge in the quarter, we remain optimistic about the long-term opportunities for GES and continue to make progress on our integration and diversification plans. During the quarter, GES realized its strongest net sales and operating performance since the acquisition in October 2018.”