Electronics is what comes in between.

• Net sales quarterly record of  , a 22% increase from the prior year third quarter
• Quarterly records for Net Income of   and Diluted EPS of  , each up 33% year-over-year 
• Cash flow from operating activities of   for the quarter

JASPER, Ind., May 02, 2018 (GLOBE NEWSWIRE) --   (NASDAQ:KE), a leading global electronic manufacturing services provider of high-quality, durable electronic products, today announced financial results for its third quarter ended March 31, 2018. 

Donald D. Charron , Chairman and Chief Executive Officer, stated, “Very strong growth in our automotive and medical end market verticals helped us set a new quarterly sales record for the ninth consecutive quarter.  We are now on a pace to significantly exceed our long-time stated goal of   in annual sales in fiscal year 2018.”

Mr. Charron continued, “We are pleased to have set new quarterly records for net income and diluted EPS in the third quarter of fiscal year 2018.  The fourth quarter of fiscal year 2018 is a pivotal quarter for our margin expansion efforts as we continue to focus on yield and throughput improvements on recently launched new programs and further progress on the ramp-up in   to help us achieve our goal of 4.5% operating income.”

Third Quarter Fiscal Year 2018 Overview:

• Consolidated net sales increased 22% compared to the third quarter of fiscal year 2017, which included a 7% favorable impact from foreign currency movements.  This represents the ninth consecutive quarterly sales record.
• The current year quarter results include non-operating income related to pre-tax net gains from foreign currency movements of  .  In the prior year third quarter, pre-tax net gains from foreign currency movements in non-operating income were less than  .
• Return on invested capital (“ROIC”) was 10.2% for the first nine months of fiscal year 2018, which compares to 10.7% for the same period of the prior year (see reconciliation of non-GAAP financial measures for ROIC calculation).
• Operating activities provided cash flow of   during the quarter, which compares to cash flow provided by operating activities of   in the third quarter of fiscal year 2017.
• Cash conversion days (“CCD”) for the quarter ended March 31, 2018 were 62 days, up slightly from 61 days in the same quarter last year.  CCD is calculated as the sum of days sales outstanding plus production days supply on hand less accounts payable days.
• Investments in capital expenditures were   during the quarter.
• Cash and cash equivalents were   and borrowings outstanding on credit facilities were   at March 31, 2018.

Net Sales by Vertical Market:

Forward-Looking Statements
Certain statements contained within this release are considered forward-looking under the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties including, but not limited to, successful integration of acquisitions and new operations, global economic conditions, geopolitical environment, significant volume reductions from key contract customers, loss of key customers or suppliers, financial stability of key customers and suppliers, availability or cost of raw materials, and increased competitive pricing pressures reflecting excess industry capacities.  Additional cautionary statements regarding other risk factors that could have an effect on the future performance of the Company are contained in its Annual Report on Form 10-K for the year ended  .

Non-GAAP Financial Measures
This press release contains non-GAAP financial measures.  A non-GAAP financial measure is a numerical measure of a company’s financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with Generally Accepted Accounting Principles (“GAAP”) in   in the statement of income, statement of comprehensive income, balance sheet, statement of cash flows, or statement of equity of the Company.  The non-GAAP financial measures contained herein include adjusted operating income, adjusted net income, adjusted diluted EPS, and ROIC.  These measures include adjustments in the three and nine months ended March 31, 2018 for the provisional discrete tax items related to the U.S. Tax Cuts and Jobs Act (“Tax Reform”) enacted in   and in the nine months ended March 31, 2017 related to proceeds from a lawsuit settlement and a bargain purchase gain on the acquisition of Aircom Manufacturing, Inc.  Reconciliations of the reported GAAP numbers to these non-GAAP financial measures are included in the financial highlights table below.  Management believes it is useful for investors to understand how its core operations performed without the effects of the discrete tax items related to Tax Reform, proceeds from the lawsuit settlement, and the bargain purchase gain.  Excluding these amounts allows investors to meaningfully trend, analyze, and benchmark the performance of the Company’s core operations.  Many of the Company’s internal performance measures that management uses to make certain operating decisions exclude these items to enable meaningful trending of core operating metrics.

The live webcast of the conference call can be accessed at investors.kimballelectronics.com.  For those unable to participate in the live webcast, the call will be archived at investors.kimballelectronics.com.

About 
Recognized with a reputation for excellence,   is committed to a high performance culture that values personal and organizational commitment to quality, reliability, value, speed, and ethical behavior.    employees know they are part of a company culture that builds lasting relationships and global success for customers while enabling employees to share in the Company’s success through personal, professional, and financial growth.

Kimball electronics trades under the symbol “KE” on  The NASDAQ Stock Market.   Kimball Electronics is a global contract electronic manufacturing services (“EMS”) company that specializes in durable electronics for the automotive, medical, industrial, and public safety end markets.   Kimball Electronics is well recognized by customers and industry trade publications for its excellent quality, reliability, and innovative service.  From its manufacturing operations in the United States, China, Mexico, Poland, Romania, and Thailand, Kimball Electronics provides electronic manufacturing services, including engineering and supply chain support, which utilize common production and support capabilities to a variety of industries globally.   Kimball Electronics is headquartered in  Jasper, Indiana.

To learn more about Kimball Electronics, please visit: kimballelectronics.com

Lasting relationships. Global success.