Kimball Sets Another Quarterly Sales Record
JASPER, IN -- Kimball Electronics reported fiscal first quarter sales rose 13% year-over-year to $226.5 million.
For the period ended Sept. 30, GAAP net income more than doubled to $10.1 million.
The results include $4 million, $2.5 million net of tax, related to proceeds from a settlement of a class action lawsuit. Demand for automotive and medical products drove Kimball to a new quarterly sales record for the third consecutive quarter.
The results also include a net loss of $1.1 million associated with the startup of the company’s Romania facility.
Cash flow from operating activities was $14 million for the quarter. Cash conversion days was 58 days, an improvement improved from 61 days for the same quarter last year.
During the quarter, the company completed its acquisition of Aircom Manufacturing, Inc. As a result of the acquisition, a bargain purchase gain of $900,000 was recognized during the quarter and included in net income.
Automotive electronics sales were up 28% during the quarter to $92 million. Medical was up 11% to $65 million, more than offsetting a 20% drop in Public Safety. Industrial was up 4% to $51.5 million.
Chairman and chief executive Donald D. Charron said, “Continued strength in the automotive market combined with double-digit growth in our medical end-market vertical helped us set a new quarterly sales record in the first quarter of fiscal year 2017. Our new program launch activity remains high as we continue to work diligently to achieve our goal of $1 billion in annual sales by fiscal year 2018.
“We continue to experience pressure on our margins and we still have work to do to achieve our goal of 12.5% ROIC. Margin expansion and capital efficiency will continue to be priorities of focus for us going forward. This will be a pivotal year for us as we work through another year of significant new program launches, the ramp-up of our new Romania operation, and the integration of our recent Medivative and Aircom acquisitions.”
