Methode Electronics, Inc. · NYSE:MEI

Methode Electronics — Q3 FY2024 Earnings Presentation

15 slides from Methode Electronics's earnings presentation, Mar 7, 2024

  1. Slide 1: Fiscal 2024 Third Quarter Financial Results

    FISCAL 2024 THIRD QUARTER FINANCIAL RESULTS March 7, 2024

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities • Impact from production delays or cancelled orders; Litigation Reform Act of 1995 that reflect, when made, our current views with respect to current • Investment in programs

  3. Slide 3: Non-GAAP Financial Measures

    Non-GAAP Financial Measures To supplement the company's financial statements presented in accordance with generally accepted accounting principles in the United States (“GAAP”), Methode uses Adjusted Net Income (Loss), Adjusted Earnings (Loss) Per Share, Adjusted Pre-Tax Income (Loss), Adjusted Inco

  4. Slide 4: Introduction – Avi Avula, President & CEO

    Introduction – Avi Avula, President & CEO  Over 20 years of experience in the electronics industry serving the consumer electronics, telecom, automotive, industrial and aerospace markets  Over 17 years in leadership positions at leading science and engineering companies  Previous experience at Du

  5. Slide 5: FY24 Q3 Highlights

    FY24 Q3 Highlights Quarterly Performance Electric Vehicle Activity Sales of $260M 19% of Consolidated Sales, 20% YTD Auto Sales Down in All Regions Headwind Due to Transition in Programs Net Loss Driven by Lower Sales and Operational Challenges Near-Term Market Outlook Soft Business Activity Balance

  6. Slide 6: Summary

    Summary FY24 Q3  Sales under pressure from auto program roll-offs and market headwinds in EV, e-bike, and data center markets  Lower sales volume and persistent operational inefficiencies in Automotive drove net loss  Returned to positive free cash flow position  Continued share buyback with $3M

  7. Slide 7: Financial Results

    QAETHODE ELECTRONICS Financial Results

  8. Slide 8: FY24 Q3 Net Sales & Income from Operations

    FY24 Q3 Net Sales & Income from Operations Net Sales Income/(Loss) Adjusted ($M) from Operations Income/(Loss) ($M) from Operations* (7%) ($M) (111%) (111%) $280.1 $259.5 $27.3 $27.3 ($3.0) ($2.9) FY23 Q3 FY24 Q3 FY23 Q3 FY24 Q3 FY23 Q3 FY24 Q3 − Auto Program Roll-Offs − Lower Sales Volume FY24 Q3 E

  9. Slide 9: FY24 Q3 Earnings Per Share & EBITDA

    FY24 Q3 Earnings Per Share & EBITDA Diluted Earnings Adjusted Diluted EBITDA* Adjusted EBITDA* per Share Earnings per Share* ($M) ($M) ($) ($) (74%) (74%) (161%) (161%) $0.54 $0.54 $36.1 $36.1 ($0.33) ($0.33) $9.4 $9.5 FY23 Q3 FY24 Q3 FY23 Q3 FY24 Q3 FY23 Q3 FY24 Q3 FY23 Q3 FY24 Q3 − Lower Operating

  10. Slide 10: FY24 Q3 Balance Sheet

    FY24 Q3 Balance Sheet Debt Cash and Cash Net Debt* ($M) Equivalents ($M) ($M) $24.5 $331.3 $58.6 $306.8 ($34.1) $157.0 $208.4 $122.9 $149.8 FY23 Q4 FY24 Q3 FY23 Q4 FY24 Q3 FY23 Q4 FY24 Q3 10 Debt Increase Mainly Driven by Capital Investments * See Appendix for reconciliation to GAAP

  11. Slide 11: FY24 Q3 Free Cash Flow

    FY24 Q3 Free Cash Flow Net Cash Provided by Capital Free Cash Flow* Operating Activities Expenditure ($M) ($M) ($M) ($26.9) ($30.7) $3.8 $55.7 $42.9 $28.8 $12.8 $16.6 $12.2 FY23 Q3 FY24 Q3 FY23 Q3 FY24 Q3 FY23 Q3 FY24 Q3 11 After Negative First Half, Returned to Positive Free Cash Flow in Q3 * See A

  12. Slide 12: Thank You

    AETHODE ELECTRONICS Thank You

  13. Slide 13: Appendix: Reconciliation of Non-GAAP Measures

    METHODE ELECTRONICS, INC. AND SUBSIDIARIES Appendix RECONCILIATION OF NON-GAAP MEASURES (Unaudited) (in millions) Three Months Ended Nine Months Ended January 27, January 28, January 27, January 28, 2024 2023 2024 2023 EBITDA: Net (loss) income $ (11.6) $ 19.9 $ (66.0) $ 69.0 Income tax expense 1.1

  14. Slide 14: Appendix: Reconciliation of Non-GAAP Measures

    Appendix METHODE ELECTRONICS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (Unaudited) (in millions, except per share data) Reconciliation of Non-GAAP Financial Measures for the Three Months Ended January 27, 2024 Purchase accounting adjustments Loss on sale U.S. GAAP Goodwill Acquisiti

  15. Slide 15: Appendix: Reconciliation of Non-GAAP Measures

    Appendix METHODE ELECTRONICS, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASURES (Unaudited) (in millions, except per share data) Reconciliation of Non-GAAP Financial Measures for the Nine Months Ended January 27, 2024 Purchase accounting adjustments Loss on sale U.S. GAAP Goodwill Acquisitio

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