Methode Electronics, Inc. (NYSE: MEI), a leading
global supplier of custom-engineered solutions for user interface,
LED lighting and power distribution applications, today announced
financial results for the first quarter of fiscal 2024 ended July
29, 2023.
Fiscal First Quarter 2024 Highlights
- Net sales were $289.7 million
- Electric and hybrid vehicle applications were 22 percent of net
sales
- Net income was $0.9 million, or $0.02 per diluted share
- Adjusted net income was $2.0 million, or $0.06 per diluted
share
- Company was awarded programs with expected annual sales of over
$70 million
Management CommentsPresident and Chief
Executive Officer Donald W. Duda said, “Methode had strong sales in
the quarter led by Nordic Lights, commercial vehicle lighting
solutions, and EV applications, and our new awards were solid at
over $70 million. However, operational inefficiencies in our North
American Auto operations caused mainly by labor and vendor issues
led to planning deficiencies, inventory shortages, unrecoverable
spot purchases and premium freight, and delayed shipments. These
operational challenges, along with some accelerated expenses
related to program launches, led to an earnings shortfall relative
to our expectation for the quarter.”
Mr. Duda added, “These operational challenges have been
identified and corrective action plans are already in place. The
residual effects will also impact our second quarter and, along
with significant further weakening in the e-bike market, are the
primary drivers to our lowering of earnings guidance for the full
year. However, we remain on track with the 20-plus new program
launches that we previously announced. In addition, the award
pipeline along with an expected rebound in the commercial vehicle,
data center and e-bike markets continue to position us for
significant organic sales and earnings growth in fiscal 2025 over
fiscal 2024, and our guidance for fiscal 2025 remains
unchanged.”
Consolidated Fiscal First Quarter 2024 Financial
ResultsMethode's net sales were $289.7 million, compared
to $282.4 million in the same quarter of fiscal 2023. The
acquisition of the Nordic Lights business contributed $21.2 million
and favorable foreign currency translation contributed $0.5 million
to the net sales increase. Unfavorably impacting net sales was
$10.4 million in lower material spot buy and premium freight cost
recovery. Excluding Nordic Lights, foreign currency, and cost
recovery impacts, net sales were down 1.5% compared to the same
quarter of fiscal 2023.
Income from operations was $3.8 million, compared to $21.8
million in the same quarter of fiscal 2023. The decrease was
primarily due to higher selling and administrative expenses and
lower gross profit. The higher selling and administrative expenses
were primarily due to increased professional fees and outbound
freight expense, while the lower gross profit was primarily due to
operational inefficiencies, product sales mix, and continued
material cost inflation. Adjusted income from operations, a
non-GAAP financial measure, was $5.3 million, down from $21.8
million in the same quarter of fiscal 2023. The fiscal 2024 first
quarter adjusted income from operations excluded expenses of $0.8
million for acquisition-related costs and $0.7 million of
restructuring costs from the exit of Dabir Surfaces.
Other income, net was $0.0 million, compared to $4.1 million in
the same quarter of fiscal 2023. There was no international
government assistance in the quarter, while there was $4.1 million
of international government assistance in the same quarter of
fiscal 2023.
Income tax expense was $0.1 million, compared to $4.4 million in
the same quarter of fiscal 2023. The effective tax rates for the
periods were 10.0% and 17.0%, respectively. The lower effective tax
rate was due to the mix of income relative to taxing
jurisdictions.
Net income was $0.9 million or $0.02 per diluted share, compared
to $21.5 million or $0.58 per diluted share in the same quarter of
fiscal 2023. The fiscal 2024 first quarter’s net income included
$1.1 million from the Nordic Lights acquisition and a favorable
foreign currency impact of $0.2 million. Adjusted net income, a
non-GAAP financial measure, was $2.0 million, or $0.06 per diluted
share, compared to $21.5 million, or $0.58 per diluted share, in
the same quarter of fiscal 2023. The fiscal 2024 first quarter
adjusted net income excluded an expense of $0.6 million, or $0.02
per diluted share, for acquisition-related costs and $0.5 million,
or $0.02 per diluted share, for restructuring costs.
EBITDA (Earnings Before Interest, Taxes, Depreciation and
Amortization of Intangibles), a non-GAAP financial measure, was
$17.8 million, compared to $38.2 million in the same quarter of
fiscal 2023. Adjusted EBITDA, a non-GAAP financial measure, was
$19.3 million, compared to $38.2 million in the same quarter of
fiscal 2023. Adjusted EBITDA excluded expenses of $0.8 million for
acquisition-related costs and $0.7 million related to restructuring
costs.
Debt was $339.0 million at the end of the quarter, compared to
$306.8 million at the end of fiscal 2023. Net debt, a non-GAAP
financial measure defined as debt less cash and cash equivalents,
was $191.1 million, compared to $149.8 million at the end of fiscal
2023. The increase in debt and net debt was mainly due to working
capital investment and increased purchases of property, plant, and
equipment.
Net cash used in operating activities was $5.6 million for the
quarter, compared to net cash provided by operating activities of
$12.7 million in the same quarter of fiscal 2023. Free cash flow, a
non-GAAP financial measure defined as net cash provided by
operating activities less purchases of property, plant, and
equipment, was a negative $19.4 million, compared to a positive
$3.1 million in the same quarter of fiscal 2023. The decrease was
mainly due to lower net income and increased purchases of property,
plant, and equipment.
Segment Fiscal First Quarter 2024 Financial
ResultsComparing the Automotive segment's quarter to the
same quarter of fiscal 2023,
- Net sales were $158.3 million, down from $176.6 million. The
segment net sales were favorably impacted by $0.2 million of
material spot buy and premium freight cost recovery, which compared
to $9.1 million in the prior year quarter. Net of the cost recovery
impacts, net sales decreased by $9.4 million or 5.6% mainly due to
lower volume in North America related to the roll-off of a major
program, partially offset by higher volume in Asia as compared to
the prior year which was impacted by COVID-19 lockdowns.
- Loss from operations was $2.8 million, down from income from
operations of $14.7 million. Foreign currency translation was an
unfavorable $0.3 million. Income from operations was a negative
1.8% of net sales, down from a positive 8.3% primarily due to lower
sales volume, operational inefficiencies in North America, and
higher outbound freight expense.
Comparing the Industrial segment's quarter to the same quarter
of fiscal 2023,
- Net sales were $115.4 million, up from $92.1 million. The
acquisition of the Nordic Lights business contributed $21.2 million
and favorable foreign currency translation contributed $0.5 million
to the net sales increase. Unfavorably impacting net sales was $1.3
million in lower material spot buy and premium freight cost
recovery. Net of the acquisition, foreign currency translation, and
cost recovery impacts, net sales increased by $2.9 million or 3.2%
driven by strength in lighting for commercial vehicles and in radio
remote control devices.
- Income from operations was $24.2 million, up from $22.4
million. The acquisition of the Nordic Lights business contributed
$2.2 million, and foreign currency translation was a favorable $0.2
million. Income from operations was 21.0% of net sales, down from
24.3% mainly due to product mix and higher selling and
administrative expenses resulting from the Nordic Lights
acquisition.
Comparing the Interface segment's quarter to the same quarter of
fiscal 2023,
- Net sales were $15.2 million, up from $13.0 million. The
increase was mainly due to higher demand for appliance and data
solutions products.
- Income from operations was $2.9 million, up from $1.6 million.
Income from operations was 19.1% of net sales, up from 12.3%. Both
increases were mainly due to the higher sales volume.
Comparing the Medical segment's quarter to the same quarter of
fiscal 2023,
- Net sales were $0.8 million, up from $0.7 million.
- Loss from operations was $2.2 million, compared to a loss of
$1.5 million.
- In the first quarter of fiscal 2024, the discontinuation of the
Dabir Surfaces, Inc. business (which accounts for all of the
segment’s financial results) was announced. The company is
currently executing a wind down process of the business, which is
expected to be completed by approximately the end of fiscal 2024 in
accordance with contractual and regulatory commitments.
GuidanceFor fiscal 2024 second quarter, the
company expects net sales to be in a range of $285 to $295 million
and diluted earnings per share to be in a range of $0.08 to $0.13.
The adjusted diluted earnings per share are expected to be in a
range of $0.12 to $0.17, which excludes $0.04 for expected costs
related to the discontinuation of Dabir Surfaces. The cost from
operational inefficiencies experienced in the first quarter are
expected to similarly impact the second quarter earnings and are
expected to be resolved by the third quarter.
For fiscal 2024 full year, the company expects net sales to be
in a range of $1,140 to $1,180 million, down from the previous
range of $1,150 million to $1,200 million, and diluted earnings per
share to be in a range of $0.80 to $1.00, down from the previous
range of $1.55 to $1.75. The adjusted diluted earnings per share
are expected to be in a range of $0.88 to $1.08, which excludes
$0.06 for expected costs related to the discontinuation of Dabir
Surfaces and $0.02 of acquisition costs related to the acquisition
of Nordic Lights.
For fiscal 2025 full year, the company expects net sales to be
in a range of $1,250 to $1,350 million and income from operations
as a percentage of net sales to be in a range of 11% to 12%, both
measures are unchanged from previous guidance.
The guidance does not include any new acquisition costs and is
subject to change due to a variety of factors including potential
customer work stoppages, supply chain disruptions, inflation,
global economic instability, successful cost recovery actions, the
successful launch of multiple new programs, the ultimate take rates
on new EV programs, potential restructuring efforts, and potential
impairments or divestitures.
Conference CallThe company will conduct a
conference call and webcast to review financial and operational
highlights led by its President and Chief Executive Officer, Donald
W. Duda, and Chief Financial Officer, Ronald L. G. Tsoumas, today
at 10:00 a.m. CDT.
To participate in the conference call, please dial 888-506-0062
(domestic) or 973-528-0011 (international) at least five minutes
prior to the start of the event. A simultaneous webcast can be
accessed through the company’s website, www.methode.com, on the
Investors page.
A replay of the teleconference will be available shortly after
the call through September 21, 2023, by dialing 877-481-4010 and
providing passcode 48954. A webcast replay will also be available
through the company’s website, www.methode.com, on the Investors
page.
About Methode Electronics, Inc.Methode
Electronics, Inc. (NYSE: MEI) is a leading global supplier of
custom-engineered solutions with sales, engineering and
manufacturing locations in North America, Europe, Middle East and
Asia. We design, engineer, and produce mechatronic products for
OEMs utilizing our broad range of technologies for user interface,
LED lighting system, power distribution and sensor
applications.
Our solutions are found in the end markets of transportation
(including automotive, commercial vehicle, e-bike, aerospace, bus,
and rail), cloud computing infrastructure, construction equipment,
and consumer appliance. Our business is managed on a segment basis,
with those segments being Automotive, Industrial, Interface and
Medical.
Non-GAAP Financial MeasuresTo supplement the
company's financial statements presented in accordance with
generally accepted accounting principles in the United States
(“GAAP”), Methode uses Adjusted Net Income, Adjusted Earnings Per
Share, Adjusted Income from Operations, Adjusted Selling and
Administrative Expenses, Adjusted Selling and Administrative
Expenses as a Percentage of Sales, EBITDA, Adjusted EBITDA, Net
Debt and Free Cash Flow as non-GAAP measures. Reconciliation to the
nearest GAAP measures of all non-GAAP measures included in this
press release can be found at the end of this release. Methode's
definitions of these non-GAAP measures may differ from similarly
titled measures used by others. These non-GAAP measures should be
considered supplemental to, and not a substitute for, financial
information prepared in accordance with GAAP. The company believes
that these non-GAAP measures are useful because they (i) provide
both management and investors meaningful supplemental information
regarding financial performance by excluding certain expenses and
benefits that may not be indicative of recurring core business
operating results, (ii) permit investors to view Methode's
performance using the same tools that management uses to evaluate
its past performance, reportable business segments and prospects
for future performance (iii) are commonly used by other companies
in our industry and provide a comparison for investors to the
company’s performance versus its competitors and (iv) otherwise
provide supplemental information that may be useful to investors in
evaluating Methode.
Forward-Looking Statements
Litigation Reform Act of 1995 that reflect, when
made, our current views with respect to current events and
financial performance. Such forward-looking statements are subject
to many risks, uncertainties and factors relating to our operations
and business environment, which may cause our actual results to be
materially different from any future results, expressed or implied,
by such forward-looking statements. All statements that address
future operating, financial or business performance or our
strategies or expectations are forward-looking statements. In some
cases, you can identify these statements by forward-looking words
such as “may,” “might,” “will,” “should,” “expects,” “plans,”
“intends,” “anticipates,” “believes,” “estimates,” “predicts,”
“projects,” “potential,” “outlook” or “continue,” and other
comparable terminology. Factors that could cause actual results to
differ materially from these forward-looking statements include,
but are not limited to, the following:
- Dependence on our supply chain,
including semiconductor suppliers;
- Impact from pandemics, such as the
COVID-19 pandemic;
- Dependence on the automotive and
commercial vehicle industries;
- Impact from inflation;
- Dependence on a small number of
large customers, including one large automotive customer;
- Risks relating to our use of
requirements contracts;
- Failure to attract and retain
qualified personnel;
- Risks related to conducting global
operations;
- Potential work stoppages;
- Dependence on the availability and
price of materials;
- Timing, quality and cost of new
program launches;
- Ability to compete
effectively;
- Ability to withstand pricing
pressures, including price reductions;
- Our lengthy sales cycle;
- Ability to successfully benefit
from acquisitions and divestitures;
- Impact from production delays or
cancelled orders;
- Investment in programs prior to the
recognition of revenue;
- Electric vehicle ("EV") adoption
rates;
- Ability to withstand business
interruptions;
- Breaches to our information
technology systems or service interruptions;
- Ability to keep pace with rapid
technological changes;
- Ability to protect our intellectual
property;
- Costs associated with
environmental, health and safety regulations;
- International trade disputes
resulting in tariffs and our ability to mitigate tariffs;
- Impact from climate change and
related regulations;
- Ability to avoid design or
manufacturing defects;
- Ability to remediate a material
weakness in our internal control over financial reporting;
- Recognition of goodwill and other
intangible asset impairment charges;
- Ability to manage our debt levels
and any restrictions thereunder;
- Interest rate changes and variable
rate instruments;
- Currency fluctuations;
- Adjustments to compensation expense
for performance-based awards;
- Timing and magnitude of costs
associated with restructuring activities;
- Income tax rate fluctuations;
and
- Judgments related to accounting for
tax positions.
Additional details and factors are discussed
under the caption “Risk Factors” in our Annual Report. New risks
and uncertainties arise from time to time, and it is impossible for
us to predict these events or how they may affect us. Any
forward-looking statements made by us speak only as of the date on
which they are made. We are under no obligation to, and expressly
disclaim any obligation to, update or alter our forward-looking
statements, whether as a result of new information, subsequent
events or otherwise.
For Methode Electronics, Inc.Robert K.
CherryVice President, Investor
Relationsrcherry@methode.com+1-708-457-4030
METHODE ELECTRONICS, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF INCOME (unaudited) |
(in millions, except per-share data) |
|
|
|
Three Months Ended |
|
|
|
July 29, 2023 |
|
|
July 30, 2022 |
|
Net sales |
|
$ |
289.7 |
|
|
$ |
282.4 |
|
|
|
|
|
|
|
|
Cost of
products sold |
|
|
235.7 |
|
|
|
220.6 |
|
|
|
|
|
|
|
|
Gross
profit |
|
|
54.0 |
|
|
|
61.8 |
|
|
|
|
|
|
|
|
Selling
and administrative expenses |
|
|
44.5 |
|
|
|
35.3 |
|
Amortization of intangibles |
|
|
5.7 |
|
|
|
4.7 |
|
|
|
|
|
|
|
|
Income
from operations |
|
|
3.8 |
|
|
|
21.8 |
|
|
|
|
|
|
|
|
Interest
expense, net |
|
|
2.8 |
|
|
|
— |
|
Other
income, net |
|
|
— |
|
|
|
(4.1 |
) |
|
|
|
|
|
|
|
Pre-tax
income |
|
|
1.0 |
|
|
|
25.9 |
|
|
|
|
|
|
|
|
Income
tax expense |
|
|
0.1 |
|
|
|
4.4 |
|
Net
income |
|
|
0.9 |
|
|
|
21.5 |
|
Net
income attributable to redeemable noncontrolling interest |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
Net
income attributable to Methode |
|
$ |
0.9 |
|
|
$ |
21.5 |
|
|
|
|
|
|
|
|
Basic
and diluted income per share attributable to Methode: |
|
|
|
|
|
|
Basic |
|
$ |
0.03 |
|
|
$ |
0.59 |
|
Diluted |
|
$ |
0.02 |
|
|
$ |
0.58 |
|
|
|
|
|
|
|
|
Cash
dividends per share |
|
$ |
0.14 |
|
|
$ |
0.14 |
|
METHODE ELECTRONICS, INC. AND SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS (unaudited) |
(in millions, except share and per-share
data) |
|
|
|
July 29, 2023 |
|
|
April 29, 2023 |
|
|
|
(unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
147.9 |
|
|
$ |
157.0 |
|
Accounts receivable, net |
|
|
300.8 |
|
|
|
314.3 |
|
Inventories |
|
|
175.6 |
|
|
|
159.7 |
|
Income tax receivable |
|
|
13.4 |
|
|
|
12.9 |
|
Prepaid expenses and other current assets |
|
|
19.8 |
|
|
|
20.5 |
|
Total current assets |
|
|
657.5 |
|
|
|
664.4 |
|
Long-term assets: |
|
|
|
|
|
|
Property, plant and equipment, net |
|
|
225.2 |
|
|
|
220.3 |
|
Goodwill |
|
|
302.5 |
|
|
|
301.9 |
|
Other intangible assets, net |
|
|
251.3 |
|
|
|
256.7 |
|
Operating lease right-of-use assets, net |
|
|
29.5 |
|
|
|
28.4 |
|
Deferred tax assets |
|
|
33.7 |
|
|
|
33.6 |
|
Pre-production costs |
|
|
38.9 |
|
|
|
36.1 |
|
Other long-term assets |
|
|
35.5 |
|
|
|
37.7 |
|
Total long-term assets |
|
|
916.6 |
|
|
|
914.7 |
|
Total assets |
|
$ |
1,574.1 |
|
|
$ |
1,579.1 |
|
|
|
|
|
|
|
|
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
131.9 |
|
|
$ |
138.7 |
|
Accrued employee liabilities |
|
|
26.7 |
|
|
|
36.7 |
|
Other accrued liabilities |
|
|
33.7 |
|
|
|
34.5 |
|
Short-term operating lease liabilities |
|
|
6.9 |
|
|
|
6.8 |
|
Short-term debt |
|
|
3.2 |
|
|
|
3.2 |
|
Income tax payable |
|
|
6.0 |
|
|
|
8.1 |
|
Total current liabilities |
|
|
208.4 |
|
|
|
228.0 |
|
Long-term liabilities: |
|
|
|
|
|
|
Long-term debt |
|
|
335.8 |
|
|
|
303.6 |
|
Long-term operating lease liabilities |
|
|
22.4 |
|
|
|
21.8 |
|
Long-term income tax payable |
|
|
16.7 |
|
|
|
16.7 |
|
Other long-term liabilities |
|
|
17.1 |
|
|
|
14.3 |
|
Deferred tax liabilities |
|
|
41.4 |
|
|
|
41.8 |
|
Total long-term liabilities |
|
|
433.4 |
|
|
|
398.2 |
|
Total liabilities |
|
|
641.8 |
|
|
|
626.2 |
|
Redeemable noncontrolling interest |
|
|
0.9 |
|
|
|
11.1 |
|
Shareholders' equity: |
|
|
|
|
|
|
Common stock, $0.50 par value, 100,000,000 shares authorized,
37,356,156 shares and 37,167,375 shares issued as of July 29, 2023
and April 29, 2023, respectively |
|
|
18.7 |
|
|
|
18.6 |
|
Additional paid-in capital |
|
|
182.5 |
|
|
|
181.0 |
|
Accumulated other comprehensive loss |
|
|
(23.1 |
) |
|
|
(19.0 |
) |
Treasury stock, 1,346,624 shares as of July 29, 2023 and April 29,
2023 |
|
|
(11.5 |
) |
|
|
(11.5 |
) |
Retained earnings |
|
|
764.8 |
|
|
|
772.7 |
|
Total shareholders' equity |
|
|
931.4 |
|
|
|
941.8 |
|
Total liabilities, redeemable noncontrolling interest and
shareholders' equity |
|
$ |
1,574.1 |
|
|
$ |
1,579.1 |
|
METHODE ELECTRONICS, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited) |
(in millions) |
|
|
|
Three Months Ended |
|
|
|
July 29, 2023 |
|
|
July 30, 2022 |
|
Operating activities: |
|
|
|
|
|
|
Net income |
|
$ |
0.9 |
|
|
$ |
21.5 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
14.0 |
|
|
|
12.3 |
|
Stock-based compensation expense |
|
|
2.6 |
|
|
|
4.0 |
|
Change in cash surrender value of life insurance |
|
|
0.6 |
|
|
|
0.2 |
|
Amortization of debt issuance costs |
|
|
0.2 |
|
|
|
0.2 |
|
Impairment of long-lived assets |
|
|
0.6 |
|
|
|
— |
|
Change in deferred income taxes |
|
|
(0.5 |
) |
|
|
(1.8 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
Accounts receivable |
|
|
11.5 |
|
|
|
(11.9 |
) |
Inventories |
|
|
(16.5 |
) |
|
|
(17.4 |
) |
Prepaid expenses and other assets |
|
|
(2.3 |
) |
|
|
(4.3 |
) |
Accounts payable |
|
|
(5.7 |
) |
|
|
10.5 |
|
Other liabilities |
|
|
(11.0 |
) |
|
|
(0.6 |
) |
Net cash
(used in) provided by operating activities |
|
|
(5.6 |
) |
|
|
12.7 |
|
|
|
|
|
|
|
|
Investing activities: |
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
|
(13.8 |
) |
|
|
(9.6 |
) |
Net cash
used in investing activities |
|
|
(13.8 |
) |
|
|
(9.6 |
) |
|
|
|
|
|
|
|
Financing activities: |
|
|
|
|
|
|
Taxes paid related to net share settlement of equity awards |
|
|
(3.8 |
) |
|
|
(0.5 |
) |
Repayments of finance leases |
|
|
(0.1 |
) |
|
|
(0.1 |
) |
Purchases of common stock |
|
|
— |
|
|
|
(11.9 |
) |
Cash dividends |
|
|
(5.3 |
) |
|
|
(5.0 |
) |
Purchase of redeemable noncontrolling interest |
|
|
(10.2 |
) |
|
|
— |
|
Proceeds from borrowings |
|
|
42.0 |
|
|
|
— |
|
Repayments of borrowings |
|
|
(10.1 |
) |
|
|
(3.3 |
) |
Net cash
provided by (used in) financing activities |
|
|
12.5 |
|
|
|
(20.8 |
) |
Effect
of foreign currency exchange rate changes on cash and cash
equivalents |
|
|
(2.2 |
) |
|
|
(1.9 |
) |
Decrease in cash and cash equivalents |
|
|
(9.1 |
) |
|
|
(19.6 |
) |
Cash and
cash equivalents at beginning of the period |
|
|
157.0 |
|
|
|
172.0 |
|
Cash and cash equivalents at end of the
period |
|
$ |
147.9 |
|
|
$ |
152.4 |
|
|
|
|
|
|
|
|
Supplemental cash flow information: |
|
|
|
|
|
|
Cash paid during the period for: |
|
|
|
|
|
|
Interest |
|
$ |
3.0 |
|
|
$ |
0.8 |
|
Income taxes, net of refunds |
|
$ |
2.2 |
|
|
$ |
5.6 |
|
Operating lease obligations |
|
$ |
2.3 |
|
|
$ |
1.9 |
|
METHODE ELECTRONICS, INC. AND SUBSIDIARIES |
RECONCILIATION OF NON-GAAP MEASURES
(Unaudited) |
(in millions) |
|
|
|
Three Months Ended |
|
|
|
July 29, 2023 |
|
|
July 30, 2022 |
|
EBITDA: |
|
|
|
|
|
|
Net income |
|
$ |
0.9 |
|
|
$ |
21.5 |
|
Income tax expense |
|
|
0.1 |
|
|
|
4.4 |
|
Interest expense, net |
|
|
2.8 |
|
|
|
— |
|
Amortization of intangibles |
|
|
5.7 |
|
|
|
4.7 |
|
Depreciation |
|
|
8.3 |
|
|
|
7.6 |
|
EBITDA |
|
|
17.8 |
|
|
|
38.2 |
|
Acquisition costs |
|
|
0.5 |
|
|
|
— |
|
Acquisition-related costs - purchase accounting adjustments related
to inventory |
|
|
0.3 |
|
|
|
— |
|
Restructuring costs |
|
|
0.7 |
|
|
|
— |
|
Adjusted
EBITDA |
|
$ |
19.3 |
|
|
$ |
38.2 |
|
|
|
Three Months Ended |
|
|
|
July 29, 2023 |
|
|
July 30, 2022 |
|
Free Cash Flow: |
|
|
|
|
|
|
Net cash (used in) provided by operating activities |
|
$ |
(5.6 |
) |
|
$ |
12.7 |
|
Purchases of property, plant and equipment |
|
|
(13.8 |
) |
|
|
(9.6 |
) |
Free
cash flow |
|
$ |
(19.4 |
) |
|
$ |
3.1 |
|
|
|
July 29, 2023 |
|
|
April 29, 2023 |
|
Net Debt: |
|
|
|
|
|
|
Short-term debt |
|
$ |
3.2 |
|
|
$ |
3.2 |
|
Long-term debt |
|
|
335.8 |
|
|
|
303.6 |
|
Total
debt |
|
|
339.0 |
|
|
|
306.8 |
|
Less:
cash and cash equivalents |
|
|
(147.9 |
) |
|
|
(157.0 |
) |
Net
debt |
|
$ |
191.1 |
|
|
$ |
149.8 |
|
METHODE ELECTRONICS, INC. AND SUBSIDIARIES |
RECONCILIATION OF NON-GAAP MEASURES
(Unaudited) |
(in millions, except per share data) |
|
Reconciliation of Non-GAAP Financial Measures for the Three
Months Ended July 29, 2023 |
|
|
|
U.S. GAAP (as reported) |
|
|
Acquisition costs |
|
|
Purchase accounting adjustments related to
inventory |
|
|
Restructuring costs |
|
|
Non-U.S.GAAP |
|
Gross profit |
|
$ |
54.0 |
|
|
$ |
— |
|
|
$ |
0.3 |
|
|
$ |
0.6 |
|
|
$ |
54.9 |
|
Gross margin (% of net sales) |
|
|
18.6 |
% |
|
n/a |
|
|
|
0.1 |
% |
|
n/a |
|
|
|
19.0 |
% |
Selling
and administrative expenses |
|
$ |
44.5 |
|
|
$ |
(0.5 |
) |
|
$ |
— |
|
|
$ |
(0.1 |
) |
|
$ |
43.9 |
|
Selling and administrative expenses (% of net sales) |
|
|
15.4 |
% |
|
|
(0.2 |
)% |
|
n/a |
|
|
|
— |
% |
|
|
15.2 |
% |
Income
from operations |
|
$ |
3.8 |
|
|
$ |
0.5 |
|
|
$ |
0.3 |
|
|
$ |
0.7 |
|
|
$ |
5.3 |
|
Net
income |
|
$ |
0.9 |
|
|
$ |
0.4 |
|
|
$ |
0.2 |
|
|
$ |
0.5 |
|
|
$ |
2.0 |
|
Diluted
earnings per share |
|
$ |
0.02 |
|
|
$ |
0.01 |
|
|
$ |
0.01 |
|
|
$ |
0.02 |
|
|
$ |
0.06 |
|
Reconciliation of Non-GAAP Financial Measures for the Three
Months Ended July 30, 2022 |
|
|
|
U.S. GAAP (as reported) |
|
|
Acquisition costs |
|
|
Purchase accounting adjustments related to
inventory |
|
|
Restructuring costs |
|
|
Non-U.S.GAAP |
|
Gross profit |
|
$ |
61.8 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
61.8 |
|
Gross margin (% of net sales) |
|
|
21.9 |
% |
|
n/a |
|
|
n/a |
|
|
n/a |
|
|
|
21.9 |
% |
Selling
and administrative expenses |
|
$ |
35.3 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
35.3 |
|
Selling and administrative expenses (% of net sales) |
|
|
12.5 |
% |
|
n/a |
|
|
n/a |
|
|
n/a |
|
|
|
12.5 |
% |
Income
from operations |
|
$ |
21.8 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
21.8 |
|
Net
income |
|
$ |
21.5 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
21.5 |
|
Diluted
earnings per share |
|
$ |
0.58 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.58 |
|
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