Slide 1: Fiscal 2020 Fourth Quarter and Full Year Financial Results
FISCAL 2020 FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS June 30, 2020
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains certain forward-looking statements, which reflect management's expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements are subject to the safe harbor protection provide
Slide 3: Use of Non-GAAP Financial Measures
Use of 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 certain non-GAAP measures. Reconciliation to the nearest GAAP measures of all non- GAAP measures inclu
Slide 4: New Methode Website
fil New Methode Website ETHODE ELECTRONICS ETH ELECTRONICS Home Company Solutions & Technologies Capabilities. Investors Careers. ContactUs. Q NYSE: MEI INVESTOR RELATIONS jini +$1.26 (4.20%) Pricing delayed by 20 minutes Last Updates 06/20/2020 4:00 PM News Events & Presentations Stock Information
Slide 5: FY20 Highlights
FY20 Highlights (Dollars in millions except per share amount; FY20 results include 53 weeks and FY19 results include 52 weeks) Diluted Adj. Diluted Adjusted Net Sales Net Income Earnings Earnings Per Income* Per Share Share* YoY YoY YoY YoY YoY FY19 FY20 FY19 FY20 FY19 FY20 FY19 FY20 FY19 FY20 Chang
Slide 6: FY20 Sales Drivers
FY20 Sales Drivers (Dollars in millions; FY20 results include 53 weeks and FY19 results include 52 weeks) COVID-19, UAW Incremental Sales from Effect of FY19 Sales Labor Strike, FY20 Sales Sales from New Program Weaker Euro (52 Weeks) and Net Lower (53 Weeks) Grakon Launches and RMB Other Volume 6
Slide 7: Q4 Business Awards – $36 Million
FY20 Q4 Business Awards – $36 Million • Lead-frame for U.S. auto transmission OEM - $8.0 M annually • Incremental application of a Busbar program for an EV application - $5.5 M annually • AC Power Connector for an EV application - $4.5 M annually • Incremental application of a Brake Tappet (Complex
Slide 8: Q4 Highlights
FY20 Q4 Highlights (Dollars in millions except per share amount) Diluted Adj. Diluted Adjusted Net Sales Net Income Earnings Earnings Per Income* Per Share Share* YoY YoY YoY YoY YoY FY19 Q4 FY20 Q4 FY19 Q4 FY20 Q4 FY19 Q4 FY20 Q4 FY19 Q4 FY20 Q4 FY19 Q4 FY20 Q4 Change Change Change Change Change $2
Slide 9: Q4 Financial Results
FY20 Q4 Financial Results Gross Margins Adjusted Gross Margins* S&A Adjusted S&A* • Favorable sales mix in the Excludes: • Lower stock award amortization Excludes: Automotive and Industrial • Expense for initiatives to reduce expense • Acquisition-related costs segments costs and improve operational
Slide 10: Financial Results
FY20 Financial Results Gross Margins Adjusted Gross Margins* S&A Adjusted S&A* • Benefit of Grakon sales Excludes: • Lower stock award amortization Excludes: • Expense for initiatives to expense • Acquisition-related costs • Benefits from initiatives to reduce costs and improve reduce costs and impr
Slide 11: Q4 Financial Results: EBITDA
FY20 Q4 Financial Results (Dollars in millions) EBITDA Adjusted EBITDA* Excludes: • Expense for initiatives to reduce costs and improve operational profitability • Acquisition-related expenses • Long-term incentive plan accrual adjustments 18% $54.5 2% $47.2 $48.3 $46.1 FY19 Q4 FY20 Q4 FY19 Q4 FY20
Slide 12: Financial Results: EBITDA
FY20 Financial Results (Dollars in millions; FY20 results include 53 weeks and FY19 results include 52 weeks) EBITDA Adjusted EBITDA* Excludes: • Expense for initiatives to reduce costs and improve operational profitability • Acquisition-related expenses • Long-term incentive plan accrual adjustment
Slide 13: Free Cash Flow (FCF)
FY20 Free Cash Flow (FCF)* (Dollars in millions) FY19 FY20 Net Income $91.6 $123.4 FY20 FCF Depreciation and $43.3 $48.3 $126.6 Amortization CapEx ($49.8) ($45.1) FCF $85.1 $126.6 * See Appendix for reconciliation to GAAP 13
Slide 14: Deleveraging Since Grakon Acquisition in Q2 FY19
Deleveraging Since Grakon Acquisition in Q2 FY19 (Dollars in millions) Gross and Net Debt $357.6 $352.1 $302.9 $292.6 $283.1 $275.1 $257.0 $246.7 $229.2 $209.4 $209.3 $179.5 $177.1 $134.8 FY19 FY19 FY19 FY19 FY19 FY19 FY20 FY20 FY20 FY20 FY20 FY20 FY20 FY20 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4
Slide 15: EBITDA
FY20 EBITDA (Dollars in millions; FY20 results include 53 weeks and FY19 results include 52 weeks) $29 $6 $11 $207 $18 $36 $24 $155 FY19 EBITDA Grakon Auto & Laundry Benefits from FY19 Acquisition & Incremental Lower Volume due FY20 EBITDA (52 weeks) Performance Launches FY19 Initiatives to Restruct
Slide 16: Appendix: Non-GAAP Financial Measures
Appendix 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, Adjusted Earnings Per Share, Adjusted Income from Operations, Adjusted Gross Pr
Slide 17: Appendix
fA Appendix GAETHODE METHODE ELECTRONICS, INC. AND SUBSIDIARIES (Unaudited) (in millions, except per share data) Reconciliation of Non-GAAP Financial Measures for the Three Months Ended May 2, 2020 (13 Weeks) Acquisition-Related Costs Expense for Initiatives to Reduce Overall Purchase Long-term Cost
Slide 18: Appendix
Appendix Q@AETHODE ELECTRONICS METHODE ELECTRONICS, INC. AND SUBSIDIARIES (Unaudited) (in millions, except per share data) Reconciliation of Non-GAAP Financial Measures for the Three Months Ended April 27, 2019 (13 Weeks) Acquisition-Related Costs Expense for Initiatives to Reduce Overall Purchase L
Slide 19: Appendix
Appendix METHODE ELECTRONICS, INC. AND SUBSIDIARIES (Unaudited) (in millions, except per share data) Q@AETHODE ELECTRONICS Reconciliation of Non-GAAP Financial Measures for the Fiscal Year Ended May 2, 2020 (53 Weeks) Acquisition-Related Costs Expense for Initiatives to Transition tax and the impact
Slide 20: Appendix
Appendi MrtHOpE ppendix METHODE ELECTRONICS, INC. AND SUBSIDIARIES (Unaudited) (in millions, except per share data) Reconciliation of Non-GAAP Financial Measures for the Fiscal Year Ended April 27, 2019 (52 Weeks) Acquisition-Related Costs Transition tax and the Expense for impact of Initiatives to
Slide 21: Appendix: EBITDA Reconciliation
. AETHODE Ap pe n d IX QetHODE METHODE ELECTRONICS, INC. AND SUBSIDIARIES (Unaudited) (in millions, except per share data) Reconciliation of EBITDA and Adjusted EBITDA to Net Income (in millions) Three Months Ended Fiseal Year Ended May 2, April 27, May 2, April 27, 2020 2019 2020 2019 (13 Weeks) (1
Slide 22: Appendix: Free Cash Flow Reconciliation
Appendix Net Income Amortization of Intangibles Depreciation Purchases of Property, Plant and Equipment Free Cash Flow Q@AETHODE ELECTRONICS METHODE ELECTRONICS, INC. AND SUBSIDIARIES (Unaudited) (in millions, except per share data) Reconciliation of Free Cash Flow to Net Income (in millions) Three
Slide 23: Thank You
AETHODE ELECTRONICS Thank You