SPOKANE VALLEY, WA – Key Tronic reported fiscal fourth quarter revenue of $132.6 million, up 14% year-over-year.

For the period ended July 3, net income was $175,000, compared to $1.5 million in the prior year quarter. Operating income was $1.4 million, up 39.6% year-over-year.

Fiscal fourth quarter earnings were adversely impacted by supply chain and transportation and logistics issues, causing both factory downtime and overtime expenses. Earnings were also constrained by legal and other professional service expenses related to the previously disclosed internal investigation of approximately $1 million during quarter, and Key Tronic expects additional expenses to occur. Additionally, the company recorded approximately $500,000 in non-cash tax expense related to expired stock appreciation rights.

For fiscal 2021, revenue was $518.7 million, the highest annual revenue in the company’s 52-year history, up 15% compared to fiscal year 2020. Net income was $4.3 million, down 8.8% year-over-year. Operating income for the fiscal year was $9.5 million, up 39.5%.

While demand has remained strong from both new and existing customers, revenue for the fourth quarter and for the full year was significantly constrained by issues related to the worldwide pandemic, the supply chain, and transportation and logistics.

“We’re pleased with the increasing customer demand during fiscal 2021 and our successful launch of major new programs,” said Craig Gates, president and CEO. “We are especially grateful for the dedication and resilience of Key Tronic employees during the past fiscal year – a year of record revenue and increased operating margins in spite of significant headwinds, including the global pandemic, government shutdowns, unprecedented winter storms, worldwide component shortages, and transportation bottlenecks.

“While production has been hindered by many unusual challenges, we continued to ramp up our new programs, and we’re extremely encouraged by new program wins and our expanding customer base.   During the fourth quarter of fiscal 2021, we won new programs involving consumer products, exercise equipment, and residential building products.

“Moving into fiscal 2022, the Covid-19 crisis, component shortages and logistic delays continue to present multiple business challenges, but we continue to see the favorable trend of contract manufacturing returning to North America. With our recent investments in new capacity, we’re increasingly well prepared for long-term growth.”

For the fiscal first quarter of 2022, Key Tronic expects revenue in the range of $125 million to $135 million.

Despite growing customer demand and backlog, the firm expects delays in the supply of key components will continue to significantly limit production and adversely impact operating efficiencies.

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