ke-20220930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2022

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-36454


KIMBALL ELECTRONICS, INC.
(Exact name of registrant as specified in its charter)

Indiana

35-2047713

(State or other jurisdiction of

(I.R.S. Employer Identification No.)

incorporation or organization)

1205 Kimball Boulevard, Jasper, Indiana

47546

(Address of principal executive offices)

(Zip Code)

(812) 634-4000



Registrant’s telephone number, including area code
Not Applicable
Former name, former address and former fiscal year, if changed since last report


Securities registered pursuant to Section 12(b) of the Act:
Title of each Class	Trading Symbol	Name of each exchange on which registered
Common Stock, no par value	KE	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☒

Emerging growth company

☐

Non-accelerated filer

☐

Smaller reporting company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

The number of shares outstanding of the Registrant’s common stock as of October 26, 2022 was 24,710,331 shares.

KIMBALL ELECTRONICS, INC.

FORM 10-Q

INDEX


		Page No.

PART I FINANCIAL INFORMATION

	Item 1. Financial Statements
	Condensed Consolidated Balance Sheets - September 30, 2022 (Unaudited) and June 30, 2022	3
	Condensed Consolidated Statements of Income (Unaudited) - Three Months Ended September 30, 2022 and 2021	4
	Condensed Consolidated Statements of Comprehensive Income (Unaudited) - Three Months Ended September 30, 2022 and 2021	5
	Condensed Consolidated Statements of Cash Flows (Unaudited) - Three Months Ended September 30, 2022 and 2021	6
	Condensed Consolidated Statement of Share Owners’ Equity (Unaudited) - Three Months Ended September 30, 2022 and 2021	7
	Notes to Condensed Consolidated Financial Statements (Unaudited)	8
	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
	Item 3. Quantitative and Qualitative Disclosures About Market Risk	29
	Item 4. Controls and Procedures	29

PART II OTHER INFORMATION

	Item 1. Legal Proceedings	30
	Item 1A. Risk Factors	30
	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	30

	Item 6. Exhibits	31

SIGNATURES		32

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

KIMBALL ELECTRONICS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in Thousands, Except for Share Data)


	(Unaudited)
	September 30, 2022		June 30, 2022
ASSETS
Current Assets:
Cash and cash equivalents	$	19,715	$	49,851
Receivables, net of allowances of $144 and $139, respectively	253,823		222,857
Contract assets	68,314		64,080
Inventories	449,528		395,630
Prepaid expenses and other current assets	28,637		28,665

Total current assets	820,017		761,083
Property and Equipment, net of accumulated depreciation of $271,127 and $271,139, respectively	215,469		206,835
Goodwill	12,011		12,011
Other Intangible Assets, net of accumulated amortization of $36,352 and $35,437, respectively	13,792		14,707
Other Assets	40,474		41,131
Total Assets	$	1,101,763	$	1,035,767

LIABILITIES AND SHARE OWNERS’ EQUITY
Current Liabilities:

Current portion of borrowings under credit facilities	$	52,505	$	35,580
Accounts payable	322,199		308,617

Accrued expenses	65,258		64,545
Total current liabilities	439,962		408,742
Other Liabilities:
Long-term debt under credit facilities, less current portion	180,000		145,000
Long-term income taxes payable	5,859		7,812
Other long-term liabilities	19,697		20,242
Total other liabilities	205,556		173,054

Share Owners’ Equity:
Preferred stock-no par value
Shares authorized: 15,000,000 Shares issued: None	—		—
Common stock-no par value
Shares authorized: 150,000,000 Shares issued: 29,430,000	—		—
Additional paid-in capital	310,271		311,090
Retained earnings	249,731		240,222
Accumulated other comprehensive loss	(27,089)		(19,672)
Treasury stock, at cost:
Shares: 4,720,000 and 4,804,000, respectively	(76,668)		(77,669)
Total Share Owners’ Equity	456,245		453,971
Total Liabilities and Share Owners’ Equity	$	1,101,763	$	1,035,767

See Notes to Condensed Consolidated Financial Statements.

KIMBALL ELECTRONICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Amounts in Thousands, Except for Per Share Data)



	Three Months Ended
	September 30
(Unaudited)	2022		2021
Net Sales	$	405,889	$	292,717
Cost of Sales	376,568		277,117
Gross Profit	29,321		15,600
Selling and Administrative Expenses	15,750		12,204
Other General Income	—		(1,384)


Operating Income	13,571		4,780
Other Income (Expense):
Interest income	17		24
Interest expense	(1,920)		(395)
Non-operating income (expense), net	500		(878)
Other income (expense), net	(1,403)		(1,249)
Income Before Taxes on Income	12,168		3,531
Provision for Income Taxes	2,659		967
Net Income	$	9,509	$	2,564

Earnings Per Share of Common Stock:
Basic	$	0.38	$	0.10
Diluted	$	0.38	$	0.10





Average Number of Shares Outstanding:
Basic	24,826		25,145
Diluted	24,955		25,301

See Notes to Condensed Consolidated Financial Statements.

KIMBALL ELECTRONICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Amounts in Thousands)

Three Months Ended

September 30, 2022

September 30, 2021

(Unaudited)

Pre-tax

Tax

Net of Tax

Pre-tax

Tax

Net of Tax

Net income

SEC Form 10-Q filed by Kimball Electronics Inc.