Kimball Electronics, Inc. · NASDAQ:KE
Kimball Electronics — Q3 FY2020 Earnings Presentation
13 slides from Kimball Electronics's earnings presentation, May 4, 2020
Slide 1: Financial Results Third Quarter Fiscal Year 2020
Exhibit 99.2 Financial Results Third Quarter Fiscal Year 2020 Quarter Ended March 31, 2020 Supplementary Information to May 5, 2020 Earnings Conference Call
Slide 2: Safe Harbor Statement
KIMBALL ELECTRONICS (Nasdaq: KE) // Safe Harbor Statement Certain statements contained within this supplementary information and any statements made during our earnings conference call today may be considered forward-looking under the Private Securities Litigation Reform Act of 1995 and are subject
Slide 3: Net Sales
(Unaudited) KIMBALL ELECTRONICS (Nasdaq: KE) // Net Sales $350 â6% from Q3'19 $325 $319 $313 $313 $307 $300 $294 $284 s n $277 o i l l i $275 M $266 n I $250 $225 $200 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 3
Slide 4: Net Sales Mix by Vertical Market
(Unaudited) KIMBALL ELECTRONICS (Nasdaq: KE) // Net Sales Mix by Vertical Market 100% 1% 1% 2% 1% 2% 2% 2% 2% 6% 6% 6% 5% 5% 5% 5% 4% 90% 21% 22% 22% 21% 21% 21% 22% 80% 22% 70% 60% s 31% 28% 30% e 32% 32% 32% l 31% 30% a S 50% f o % 40% 30% 44% 20% 41% 40% 40% 40% 40% 40% 42% 10% 0% Q4'18 Q1'19 Q2'
Slide 5: Gross Margin %
(Unaudited) KIMBALL ELECTRONICS (Nasdaq: KE) // Gross Margin % 10.0% 9.0% 8.5% 8.2% 8.0% 7.3% 7.2% 7.1% 6.9% 7.0% 6.8% 6.7% 6.0% s e l a S 5.0% f o % 4.0% 3.0% 2.0% 1.0% 0.0% Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 5
Slide 6: Selling & Administrative Expense (%)
(Unaudited) KIMBALL ELECTRONICS (Nasdaq: KE) // Selling & Administrative Expense (%) 5.0% 4.5% 4.2% 4.2% 4.1% s e l a S 4.0% f 3.9% 3.9% o % 3.6% 3.6% 3.5% 3.3% 3.0% Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 6
Slide 7: Adjusted Operating Income
KIMBALL ELECTRONICS (Nasdaq: KE) // (Unaudited) Adjusted Operating Income(1)(2) (Excludes lawsuit proceeds) $16.0 6.0% $14.5 $14.0 5.5% $12.0 5.0% $11.3* $11.1 $10.6 $10.2 $10.1 $10.0 4.6% 4.5% $8.7 s s e n l o a i l l S i $8.0 4.0% 4.1% f M $6.9 o n I % $6.0 3.6% 3.6% 3.5% 3.5% $4.0 3.2% 3.0% 2.8%
Slide 8: Adjusted Net Income
KIMBALL ELECTRONICS (Nasdaq: KE) // (Unaudited) Adjusted Net Income(1) (Excludes lawsuit proceeds and adjustments to provision for income taxes due to Tax Reform) $11.8 $12.0 $11.0 $10.0 $9.0 $8.0 $7.2 $7.4 $6.9 $7.0 $6.6 $6.6 s $6.3 n o i l l i $6.0 M n $5.0 I $5.0 $4.0 $3.0 $2.0 $1.0 $0.0 Q4'18 Q1
Slide 9: Adjusted EBITDA
KIMBALL ELECTRONICS (Nasdaq: KE) // (Unaudited) Adjusted EBITDA(1) (Excludes lawsuit proceeds) $24.0 $23.3 10.0% $22.0 $20.0 8.0% $17.6 $17.7 $18.0 $17.2 $16.9 $17.3 $17.2 7.4% $16.0 $13.5 6.0% $14.0 s s 6.2% e n 6.0% 6.0% l o a i 5.7% l l S i $12.0 5.4% 5.5% f M 5.1% o n I % $10.0 4.0% $8.0 $6.0 2.
Slide 10: Return on Invested Capital
KIMBALL ELECTRONICS (Nasdaq: KE) // (Unaudited) Return on Invested Capital(1)(2)(3) (Excludes lawsuit proceeds) 14.0% 12.0% 10.1% 10.0% 9.3% 9.0% 9.0% 8.9% 8.7% 8.2% 8.0% 7.1% C I O R 6.0% 4.0% 2.0% 0.0% Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 (1) We define ROIC as after-tax adjusted operati
Slide 11: Operating Cash Flow
(Unaudited) KIMBALL ELECTRONICS (Nasdaq: KE) // Operating Cash Flow $45.0 $39.6 $40.0 $35.0 $30.0 $25.0 $19.3 $20.0 s n o $15.0 i $12.2 $12.0 l l i M $10.0 n I $5.6 $5.0 $0.0 ($0.3) -$5.0 -$10.0 ($10.0) -$15.0 ($14.6) -$20.0 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 11
Slide 12: Capital Expenditures and Depreciation & Amortization
KIMBALL ELECTRONICS (Nasdaq: KE) // (Unaudited) Capital Expenditures and Depreciation & Amortization(1) $12.0 $10.0 $7.9 $8.0 $7.7 $7.3 $7.5 $7.4 $7.3 $6.8 $6.8 s n o i l l i $6.0 $11.7 M n I $10.4 $9.8 $4.0 $6.9 $5.7 $4.4 $4.8 $2.0 $4.3 $0.0 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Cap Ex De
Slide 13: Reconciliation of Non-GAAP Results
KIMBALL ELECTRONICS (Nasdaq: KE) // Reconciliation of Non-GAAP Results (Unaudited, Amounts in Thousands) Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Operating Income, as reported (1) $ 11,266 $ 7,032 $ 10,212 $ 14,497 $ 10,319 $ 11,115 $ 8,684 $ 10,588 Less: Lawsuit Proceeds — 92 — — 215 — — — A
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