Kimball Electronics Announced Financial Results for FY Q4

Kimball Electronics, Inc. (Nasdaq: KE) announced financial results for the fourth quarter and fiscal year ended June 30, 2023.

“I am very pleased with the results we reported Q4 FISCAL 2023. Q4 was our sixth consecutive quarter with record sales, and operating income and EPS were at all-time highs for the Company. The strong finish to the fiscal year drove net sales above the guidance we provided in May, and contributed to better than expected cash flow generation in the quarter. This performance was achieved with the highest levels of teamwork from our global organization, and many others in the value chain. I would like to thank our employees, our customers and our vendor partners for their passion, commitment, and support. In total, fiscal 2023 was an excellent year for Kimball Electronics, highlighted by record topline growth, margin expansion, a 79% increase in net income, and improved return on invested capital. Each of our three vertical end markets reported strong results, with the sales volume to 48% of our customers reaching all-time highs. The team supported new product introductions at a rate four times above the historic norm, and we continued to leverage our facility expansions in Thailand and Mexico, while navigating a challenging macro environment. While we continue to see a strong pipeline for future growth, fiscal 2024 is tempered by slower sales with a large medical customer. Longer term we are excited by the prospects of our funnel of new business, and the relationship with this customer in particular.”

Richard D. Phillips Chief Executive Officer

• Net sales totaled $496.1 million, a 33% increase compared to Q4 fiscal 2022, and completing a fiscal year with top-line growth of 35%.
• Operating income of $31.4 million, or 6.3% of net sales, a record high for the Company.
• For fiscal year 2023, operating income was 4.8% of net sales.
• Net income of $19.2 million, or $0.76 per diluted share.
• In fiscal year 2023, the Company earned $2.22 per diluted share, a 79% increase compared to the prior year.
• Cash flow generated from operating activities of $44.1 million in Q4.
• Company provides guidance for fiscal 2024 with expected topline growth of 4%-7% and operating income in the range of 4.7%-5.2% of net sales.