Kimball Electronics, Inc. · NASDAQ:KE
Kimball Electronics — Q1 FY2020 Earnings Presentation
13 slides from Kimball Electronics's earnings presentation, Nov 5, 2019
Slide 1: Financial Results First Quarter Fiscal Year 2020
Exhibit 99.2 Financial Results First Quarter Fiscal Year 2020 Quarter Ended September 30, 2019 Supplementary Information to November 6, 2019 Earnings Conference Call LastingLasting relationships. relationships. Global Global success. success.
Slide 2: Safe Harbor Statement
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 to risks and uncertainties including
Slide 3: Net Sales
(Unaudited) Net Sales $350 +18% from Q1'19 $325 $319 $313 $313 $300 $284 $284 s n $277 o i l l i $275 M $266 n I $258 $250 $225 $200 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 3 LastingLasting relationships. relationships. Global Global success. success.
Slide 4: Net Sales Mix by Vertical Market
(Unaudited) Net Sales Mix by Vertical Market 100% 1% 1% 1% 1% 2% 1% 2% 2% 6% 5% 6% 6% 6% 5% 5% 5% 90% 19% 20% 21% 22% 22% 21% 21% 80% 22% 70% 27% 60% 28% s 31% e 32% 32% 32% l 31% 30% a S 50% f o % 40% 30% 45% 48% 20% 41% 40% 40% 40% 40% 40% 10% 0% Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Aut
Slide 5: Gross Margin %
(Unaudited) Gross Margin % 10.0% 9.0% 8.5% 8.1% 8.1% 8.2% 8.0% 7.3% 7.2% 7.1% 7.0% 6.8% 6.0% s e l a S 5.0% f o % 4.0% 3.0% 2.0% 1.0% 0.0% Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 5 LastingLasting relationships. relationships. Global Global success. success.
Slide 6: Selling & Administrative Expense (%)
(Unaudited) Selling & Administrative Expense (%) 5.0% 4.5% 4.2% 4.2% 4.2% 4.2% 4.1% s e l a S 4.0% f 3.9% o % 3.6% 3.6% 3.5% 3.0% Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 6 LastingLasting relationships. relationships. Global Global success. success.
Slide 7: Adjusted Operating Income
(Unaudited) Adjusted Operating Income(1)(2) (Excludes lawsuit proceeds) $16.0 6.0% $14.5 $14.0 5.5% $12.0 * 5.0% $11.1* $11.3 $11.1 $10.1* $10.2 $10.1 $10.0 4.6% 4.5% 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 3.9% 3.9% % $6.0 3.6% 3.5% 3.5% $4.0 3.2% 3.0% $2.0 2.6% 2.5% $0.0 2.0% Q2'18 Q
Slide 8: Adjusted Net Income
(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 $10.7 $10.0 $9.0 $8.2 $8.0 $7.2 $7.4 $6.9 $7.0 $6.6 s 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 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q
Slide 9: Adjusted EBITDA
(Unaudited) Adjusted EBITDA(1) (Excludes lawsuit proceeds) $24.0 $23.3 10.0% $22.0 $20.1 $20.0 8.0% $18.0 $17.1 $17.2 $16.9 $17.3 $17.2 7.4% $16.0 7.1% 6.6% $13.5 6.0% $14.0 s s 6.2% e n 6.0% l o a i 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 2.0% $4.0 $2.0 $0.0 0.0% Q2'18 Q3'18 Q
Slide 10: Return on Invested Capital
(Unaudited) Return on Invested Capital(1)(2)(3) (Excludes lawsuit proceeds) 14.0% 12.0% 10.1% 9.8% 10.0% 10.0% 9.3% 9.0% 9.0% 8.9% 8.7% 8.0% C I O R 6.0% 4.0% 2.0% 0.0% Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 (1) We define ROIC as after-tax adjusted operating income for the trailing twelve m
Slide 11: Operating Cash Flow
(Unaudited) 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 l $11.6 l i $9.5 M $10.0 n I $5.6 $5.0 $0.0 -$5.0 -$10.0 ($10.0) -$15.0 ($14.6) -$20.0 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 11 LastingLasting relationships. relationships. Global Global suc
Slide 12: Capital Expenditures and Depreciation & Amortization
(Unaudited) Capital Expenditures and Depreciation & Amortization(1) $12.0 $10.0 $8.0 $7.3 $7.5 $7.4 $7.3 $6.8 $6.8 $6.8 s $6.4 n o i l l i $6.0 $11.7 M n I $9.8 $8.7 $4.0 $7.2 $6.9 $4.4 $4.8 $2.0 $4.3 $0.0 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Cap Ex Depr & Amort (1) Capital Expenditures i
Slide 13: Reconciliation of Non-GAAP Results
Reconciliation of Non-GAAP Results (Unaudited) Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Operating Income, as reported (1) $ 10,119 $ 11,130 $ 11,266 $ 7,032 $ 10,212 $ 14,497 $ 10,319 $ 11,115 Less: Lawsuit Proceeds — — — 92 — — 215 — Adjusted Operating Income (1) $ 10,119 $ 11,130 $ 11,266 $
Kimball Electronics — Q1 FY2020 Earnings Presentation on 6ix