JASPER, IN – Kimball Electronics reported net sales in the fourth quarter were $286.2 million, down 10.2% year-over-year.

For the quarter ended June 30, net loss was $1.3 million, including a non-cash after-tax goodwill impairment charge of $6.9 million and after-tax non-operating charge of $2.9 million related to the finalization of the net working capital adjustment after the measurement period for the GES acquisition. This figure compares to net income of $7.5 million in the same quarter last year.

Operating income for the fiscal fourth quarter was $1.6 million, down 84.4% year-over-year. Cash flow from operating activities was $21.5 million.

During the fiscal fourth quarter, cash and cash equivalents were $65 million, and borrowings outstanding on credit facilities were $118.1 million as of June 30, including $91.5 million classified as long term.

“We are pleased with the operating results we delivered in the fourth quarter of fiscal year 2020, despite the global interruptions and challenges caused by the Covid-19 pandemic,” said Donald D. Charron, chairman and CEO of Kimball. “The health and safety of our employees remains our number one priority, and we continue to make every effort to keep our facilities safe, utilizing protection shields, face masks, body temperature scanning, social distancing, and proper hygiene. Of our 6,400 employees around the world, approximately 1% have tested positive for the virus, and in each positive test case, our responses followed our procedures for communication to our employees, contact tracing, self-quarantining, testing, and sanitization of the affected work areas. Because of the disciplined response and extraordinary effort of our people around the world, we were able to perform our mission as an essential business and support the significant increases from our medical customers for their respiratory care and patient monitoring products.

“In the fourth quarter of fiscal year 2020, sales in our medical vertical increased 23% compared to the fourth quarter of fiscal year 2019 and were up 42% sequentially. We expect the momentum in our medical vertical to continue during the first half of fiscal year 2021. I feel honored and privileged that our company can play such an important role to help in the recovery of people infected by the virus.

“The sales decline in our automotive vertical was disappointing, but was not surprising, given the extensive automotive plant shutdowns across North America and Europe during the months of April and May. While the automotive industry restart has been slower than expected, we are encouraged to see our June-ending run rates start to approach pre-Covid-19 levels. Lastly, while changes to anticipated revenues for our GES reporting unit resulted in an impairment charge in the quarter, we remain optimistic about the long-term opportunities for GES and continue to make progress on our integration and diversification plans. During the quarter, GES realized its strongest net sales and operating performance since the acquisition in October 2018.”

For fiscal 2020, net sales were $1.2 billion, up 1.6% year-over-year. Net income for the fiscal year was $18.2 million, a decrease of 42.3%. Operating income was $32 million, down 24%.

Cash flow from operating activities for fiscal year 2020 was $72.8 million, a new annual record. Investments in capital expenditures were $38.7 million during the year.

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