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 third quarter of fiscal 2024 ended
January 27, 2024.
Fiscal Third Quarter 2024 Highlights
- Net sales were $259.5 million
- Electric and hybrid vehicle applications were 19 percent of net
sales
- Net loss was $11.6 million, or $0.33 per diluted share
- Free cash flow was $12.2 million
- Company purchased 130,592 shares of its common stock for $3.0
million
- Forward-looking guidance suspended
Management CommentsPresident and Chief
Executive Officer Avi Avula said, “Our sales in the quarter were
impacted by auto program roll-offs and persistent demand weakness
in the e-bike and data center markets. While EV activity was a
stable percentage of our sales, they were down from the previous
year on a dollar basis. The lower sales volume and the impact from
our ongoing operational inefficiencies in the Automotive segment,
which were a combination of lingering challenges from the first
half of the fiscal year and costs from program launch delays, drove
the net loss in the quarter. Despite these challenges, we returned
to positive free cash flow in the quarter.”
Mr. Avula added, “Given ongoing operational inefficiencies, the
looming market headwinds in EV, and my recent appointment as CEO,
we have suspended guidance. Right now, my primary goal is to
restore profitability, starting with an intensive review of and
quick actions to reduce hard costs, including items like headcount
and various discretionary expenses, and to dispose of non-critical
assets. We will also work to reduce working capital, particularly
inventory, and increase free cash flow. This will be closely
followed by an expeditious, but thorough review of the entire
portfolio. We plan to share an update on our business review when
we report fiscal fourth quarter results in June. We expect to
resume guidance in the near future.”
Mr. Avula concluded, “While I have been at Methode only a month,
I am very excited and energized by the potential of the business.
Our company foundation is strong with a rich legacy of innovation,
close customer relationships, and an unwavering commitment to
excellence. I look forward to building on that foundation and
charting a course towards even greater success for the
organization.”
Consolidated Fiscal Third Quarter 2024 Financial
ResultsMethode's net sales were $259.5 million, compared
to $280.1 million in the same quarter of fiscal 2023. The decrease
was mainly driven by lower Automotive segment sales in all
geographic regions, which was partially offset by sales from the
Nordic Lights acquisition and favorable foreign currency
translation. Excluding Nordic Lights and foreign currency
translation, net sales were down 15.5% compared to the same quarter
of fiscal 2023.
Selling and administrative expense as a percentage of sales was
13.1 percent, compared to 11.7 percent in the same quarter of
fiscal 2023. Selling and administrative expense increased $1.0
million from the same quarter of fiscal 2023 primarily due to the
acquisition of Nordic Lights, which accounted for $2.4 million of
the increase. Excluding Nordic Lights, selling and administrative
expense decreased $1.4 million primarily due to lower stock-based
compensation expense including a single restricted stock unit
forfeiture of $3.4 million related to a former employee, partially
offset by higher professional fees, incentive compensation and
salary expense.
Loss from operations was $3.0 million, compared to income of
$27.3 million in the same quarter of fiscal 2023. The decrease was
primarily due to lower sales volume and continued operational
inefficiencies in North America, including higher costs due to
upcoming program launches in the Automotive segment. The decrease
was partially offset by the Nordic Lights acquisition. Adjusted
loss from operations, a non-GAAP financial measure, was $2.9
million, down from adjusted income of $27.3 million in the same
quarter of fiscal 2023. The fiscal 2024 third quarter adjusted loss
excluded $0.1 million of restructuring costs.
Net loss was $11.6 million or $0.33 per diluted share, compared
to net income of $19.9 million or $0.54 per diluted share in the
same quarter of fiscal 2023. The lower net income was primarily
driven by lower income from operations and higher interest expense,
which were partially offset by lower tax expense. Adjusted net
loss, a non-GAAP financial measure, was $11.5 million, or $0.33 per
diluted share, compared to net income of $19.9 million or $0.54 per
diluted share, in the same quarter of fiscal 2023. The fiscal 2024
third quarter adjusted net loss excluded $0.1 million of
restructuring costs.
EBITDA (Earnings Before Interest, Taxes, Depreciation and
Amortization of Intangibles), a non-GAAP financial measure, was
$9.4 million, compared to $36.1 million in the same quarter of
fiscal 2023. Adjusted EBITDA, a non-GAAP financial measure, was
$9.5 million, compared to $36.1 million in the same quarter of
fiscal 2023. The fiscal 2024 third quarter adjusted EBITDA excluded
$0.1 million of restructuring costs.
Debt was $331.3 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 $208.4 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. After the end of the fiscal third quarter, the company
entered into an amendment to its credit agreement. Following the
amendment, the company was in compliance with all debt covenants
for the fiscal third quarter.
Net cash provided by operating activities was $28.8 million for
the quarter, compared to $55.7 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 $12.2 million, compared to
$42.9 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.
The company purchased and retired 130,592 shares of stock for
$3.0 million in the quarter. As of January 27, 2024, a total of
3,243,746 shares have been purchased at a total cost of $130.1
million since the commencement of the $200.0 million share buyback
authorization.
Segment Fiscal Third Quarter 2024 Financial
Results Comparing the Automotive segment’s quarter to the
same quarter of fiscal 2023,
- Net sales were $139.7 million, down from $176.5 million. Net
sales decreased by $36.8 million or 20.8% mainly due to lower
volume in North America and Asia primarily related to program
roll-offs and EV demand weakness and in Europe related to lower
sensor sales resulting from an overstocked e-bike market. Partially
offsetting the decline was a favorable foreign currency translation
of $1.1 million.
- Loss from operations was $11.0 million, down from income from
operations of $18.7 million. Loss from operations was a negative
7.9% of net sales, down from a positive 10.6% primarily due to
lower sales volume and costs resulting from the operational
inefficiencies, mainly in North America, that occurred in the first
and second fiscal quarters and continued in the third fiscal
quarter. These inefficiencies resulted in inventory adjustments,
scrap expenses, and higher labor and freight costs.
Comparing the Industrial segment’s quarter to the same quarter
of fiscal 2023,
- Net sales were $107.1 million, up from $91.0 million. The
acquisition of the Nordic Lights business contributed $21.2 million
and favorable foreign currency translation contributed $0.4 million
to the sales increase. Net of the acquisition and foreign currency
translation, net sales decreased by $5.5 million or 6.0% driven
primarily by lower demand for power distribution products in the EV
and data center markets.
- Income from operations was $18.9 million, down from $22.3
million. The acquisition of the Nordic Lights business contributed
$1.6 million. Income from operations was 17.6% of net sales, down
from 24.5% mainly due to product sales mix.
Comparing the Interface segment’s quarter to the same quarter of
fiscal 2023,
- Net sales were $12.7 million, up from $12.0 million. The
increase was mainly due to higher volume of appliance
products.
- Income from operations was $1.5 million, up from $1.0 million.
Income from operations was 11.8% of net sales, up from 8.3%. Both
increases were mainly due to the higher sales volume.
GuidanceDue to the recent transition at the CEO
position and the various market and operational challenges the
business is facing, the company has suspended forward-looking
guidance. Any and all previous guidance provided by the company
should no longer be relied upon.
Conference CallThe company will conduct a
conference call and webcast to review financial and operational
highlights led by its President and Chief Executive Officer, Avi
Avula, and Chief Financial Officer, Ronald L. G. Tsoumas, today at
10:00 a.m. CST.
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 March 21, 2024, by dialing 877-481-4010 and
providing passcode 49943. 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, and
Interface.
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 (Loss), Adjusted
Earnings (Loss) Per Share, Adjusted Pre-Tax Income (Loss), Adjusted
Income (Loss) from Operations, 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 StatementsThis press release
contains forward-looking statements within the meaning of the
Private Securities 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,” “upcoming” 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 comply with restrictions
and covenants under our credit agreement;
- 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
SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME
(unaudited)(in millions, except per-share
data) |
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
January 27, 2024 |
|
|
January 28, 2023 |
|
|
January 27, 2024 |
|
|
January 28, 2023 |
|
Net sales |
|
$ |
259.5 |
|
|
$ |
280.1 |
|
|
$ |
837.2 |
|
|
$ |
878.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
products sold |
|
|
222.5 |
|
|
|
215.2 |
|
|
|
693.9 |
|
|
|
677.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
|
37.0 |
|
|
|
64.9 |
|
|
|
143.3 |
|
|
|
200.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
and administrative expenses |
|
|
33.9 |
|
|
|
32.9 |
|
|
|
119.3 |
|
|
|
104.8 |
|
Goodwill
impairment |
|
|
— |
|
|
|
— |
|
|
|
56.5 |
|
|
|
— |
|
Amortization of intangibles |
|
|
6.1 |
|
|
|
4.7 |
|
|
|
18.0 |
|
|
|
14.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)
income from operations |
|
|
(3.0 |
) |
|
|
27.3 |
|
|
|
(50.5 |
) |
|
|
81.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net |
|
|
5.0 |
|
|
|
0.8 |
|
|
|
12.2 |
|
|
|
1.3 |
|
Other
expense (income), net |
|
|
2.5 |
|
|
|
3.5 |
|
|
|
2.3 |
|
|
|
(1.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax
(loss) income |
|
|
(10.5 |
) |
|
|
23.0 |
|
|
|
(65.0 |
) |
|
|
82.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
tax expense |
|
|
1.1 |
|
|
|
3.1 |
|
|
|
1.0 |
|
|
|
13.3 |
|
Net
(loss) income |
|
|
(11.6 |
) |
|
|
19.9 |
|
|
|
(66.0 |
) |
|
|
69.0 |
|
Net
income attributable to redeemable noncontrolling interest |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
(loss) income attributable to Methode |
|
$ |
(11.6 |
) |
|
$ |
19.9 |
|
|
$ |
(66.0 |
) |
|
$ |
69.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)
income per share attributable to Methode: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.33 |
) |
|
$ |
0.56 |
|
|
$ |
(1.86 |
) |
|
$ |
1.91 |
|
Diluted |
|
$ |
(0.33 |
) |
|
$ |
0.54 |
|
|
$ |
(1.86 |
) |
|
$ |
1.87 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
dividends per share |
|
$ |
0.14 |
|
|
$ |
0.14 |
|
|
$ |
0.42 |
|
|
$ |
0.42 |
|
METHODE ELECTRONICS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (unaudited)(in
millions, except share and per-share data) |
|
|
|
January 27, 2024 |
|
|
April 29, 2023 |
|
|
|
(unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
122.9 |
|
|
$ |
157.0 |
|
Accounts receivable, net |
|
|
265.3 |
|
|
|
314.3 |
|
Inventories |
|
|
204.0 |
|
|
|
159.7 |
|
Income tax receivable |
|
|
18.6 |
|
|
|
12.9 |
|
Prepaid expenses and other current assets |
|
|
19.0 |
|
|
|
20.5 |
|
Total current assets |
|
|
629.8 |
|
|
|
664.4 |
|
Long-term assets: |
|
|
|
|
|
|
Property, plant and equipment, net |
|
|
232.5 |
|
|
|
220.3 |
|
Goodwill |
|
|
220.4 |
|
|
|
301.9 |
|
Other intangible assets, net |
|
|
264.3 |
|
|
|
256.7 |
|
Operating lease right-of-use assets, net |
|
|
25.9 |
|
|
|
28.4 |
|
Deferred tax assets |
|
|
36.1 |
|
|
|
33.6 |
|
Pre-production costs |
|
|
47.8 |
|
|
|
36.1 |
|
Other long-term assets |
|
|
34.7 |
|
|
|
37.7 |
|
Total long-term assets |
|
|
861.7 |
|
|
|
914.7 |
|
Total assets |
|
$ |
1,491.5 |
|
|
$ |
1,579.1 |
|
|
|
|
|
|
|
|
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
146.0 |
|
|
$ |
138.7 |
|
Accrued employee liabilities |
|
|
31.6 |
|
|
|
36.7 |
|
Other accrued liabilities |
|
|
38.2 |
|
|
|
34.5 |
|
Short-term operating lease liabilities |
|
|
6.3 |
|
|
|
6.8 |
|
Short-term debt |
|
|
0.2 |
|
|
|
3.2 |
|
Income tax payable |
|
|
7.6 |
|
|
|
8.1 |
|
Total current liabilities |
|
|
229.9 |
|
|
|
228.0 |
|
Long-term liabilities: |
|
|
|
|
|
|
Long-term debt |
|
|
331.1 |
|
|
|
303.6 |
|
Long-term operating lease liabilities |
|
|
19.9 |
|
|
|
21.8 |
|
Long-term income tax payable |
|
|
9.3 |
|
|
|
16.7 |
|
Other long-term liabilities |
|
|
19.9 |
|
|
|
14.3 |
|
Deferred tax liabilities |
|
|
46.4 |
|
|
|
41.8 |
|
Total long-term liabilities |
|
|
426.6 |
|
|
|
398.2 |
|
Total liabilities |
|
|
656.5 |
|
|
|
626.2 |
|
Redeemable noncontrolling interest |
|
|
— |
|
|
|
11.1 |
|
Shareholders' equity: |
|
|
|
|
|
|
Common stock, $0.50 par value, 100,000,000 shares authorized,
36,825,124 shares and 37,167,375 shares issued as of January 27,
2024 and April 29, 2023, respectively |
|
|
18.4 |
|
|
|
18.6 |
|
Additional paid-in capital |
|
|
181.7 |
|
|
|
181.0 |
|
Accumulated other comprehensive loss |
|
|
(31.2 |
) |
|
|
(19.0 |
) |
Treasury stock, 1,346,624 shares as of January 27, 2024 and April
29, 2023 |
|
|
(11.5 |
) |
|
|
(11.5 |
) |
Retained earnings |
|
|
677.6 |
|
|
|
772.7 |
|
Total shareholders' equity |
|
|
835.0 |
|
|
|
941.8 |
|
Total liabilities, redeemable noncontrolling interest and
shareholders' equity |
|
$ |
1,491.5 |
|
|
$ |
1,579.1 |
|
METHODE ELECTRONICS, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)(in millions) |
|
|
|
Nine Months Ended |
|
|
|
January 27, 2024 |
|
|
January 28, 2023 |
|
Operating activities: |
|
|
|
|
|
|
Net (loss) income |
|
$ |
(66.0 |
) |
|
$ |
69.0 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
43.3 |
|
|
|
36.8 |
|
Stock-based compensation expense |
|
|
1.8 |
|
|
|
9.4 |
|
Change in cash surrender value of life insurance |
|
|
(1.0 |
) |
|
|
0.2 |
|
Amortization of debt issuance costs |
|
|
0.5 |
|
|
|
0.6 |
|
Loss on sale of assets |
|
|
0.6 |
|
|
|
0.1 |
|
Impairment of long-lived assets |
|
|
0.7 |
|
|
|
0.4 |
|
Goodwill impairment |
|
|
56.5 |
|
|
|
— |
|
Change in deferred income taxes |
|
|
(4.0 |
) |
|
|
0.7 |
|
Other |
|
|
0.8 |
|
|
|
0.2 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
Accounts receivable |
|
|
47.7 |
|
|
|
(19.7 |
) |
Inventories |
|
|
(47.1 |
) |
|
|
(16.2 |
) |
Prepaid expenses and other assets |
|
|
(8.8 |
) |
|
|
(17.3 |
) |
Accounts payable |
|
|
11.0 |
|
|
|
7.0 |
|
Other liabilities |
|
|
(13.4 |
) |
|
|
12.6 |
|
Net cash
provided by operating activities |
|
|
22.6 |
|
|
|
83.8 |
|
|
|
|
|
|
|
|
Investing activities: |
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
|
(41.1 |
) |
|
|
(30.8 |
) |
Proceeds from settlement of net investment hedge |
|
|
0.6 |
|
|
|
— |
|
Proceeds from disposition of assets |
|
|
1.5 |
|
|
|
3.5 |
|
Net cash
used in investing activities |
|
|
(39.0 |
) |
|
|
(27.3 |
) |
|
|
|
|
|
|
|
Financing activities: |
|
|
|
|
|
|
Taxes paid related to net share settlement of equity awards |
|
|
(3.8 |
) |
|
|
(0.5 |
) |
Repayments of finance leases |
|
|
(0.2 |
) |
|
|
(0.3 |
) |
Proceeds from exercise of stock options |
|
|
— |
|
|
|
1.5 |
|
Purchases of common stock |
|
|
(10.8 |
) |
|
|
(39.6 |
) |
Cash dividends |
|
|
(15.0 |
) |
|
|
(14.9 |
) |
Debt issuance costs |
|
|
— |
|
|
|
(3.2 |
) |
Purchase of redeemable noncontrolling interest |
|
|
(10.9 |
) |
|
|
— |
|
Proceeds from borrowings |
|
|
232.9 |
|
|
|
200.0 |
|
Repayments of borrowings |
|
|
(207.2 |
) |
|
|
(206.6 |
) |
Net cash
used in financing activities |
|
|
(15.0 |
) |
|
|
(63.6 |
) |
Effect
of foreign currency exchange rate changes on cash and cash
equivalents |
|
|
(2.7 |
) |
|
|
(0.2 |
) |
Decrease in cash and cash equivalents |
|
|
(34.1 |
) |
|
|
(7.3 |
) |
Cash and
cash equivalents at beginning of the period |
|
|
157.0 |
|
|
|
172.0 |
|
Cash and cash equivalents at end of the
period |
|
$ |
122.9 |
|
|
$ |
164.7 |
|
|
|
|
|
|
|
|
Supplemental cash flow information: |
|
|
|
|
|
|
Cash paid during the period for: |
|
|
|
|
|
|
Interest |
|
$ |
12.7 |
|
|
$ |
3.0 |
|
Income taxes, net of refunds |
|
$ |
17.0 |
|
|
$ |
15.4 |
|
Operating lease obligations |
|
$ |
6.9 |
|
|
$ |
6.5 |
|
METHODE ELECTRONICS, INC. AND
SUBSIDIARIESRECONCILIATION OF NON-GAAP MEASURES
(Unaudited)(in millions) |
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
January 27, 2024 |
|
|
January 28, 2023 |
|
|
January 27, 2024 |
|
|
January 28, 2023 |
|
EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(11.6 |
) |
|
$ |
19.9 |
|
|
$ |
(66.0 |
) |
|
$ |
69.0 |
|
Income tax expense |
|
|
1.1 |
|
|
|
3.1 |
|
|
|
1.0 |
|
|
|
13.3 |
|
Interest expense, net |
|
|
5.0 |
|
|
|
0.8 |
|
|
|
12.2 |
|
|
|
1.3 |
|
Amortization of intangibles |
|
|
6.1 |
|
|
|
4.7 |
|
|
|
18.0 |
|
|
|
14.1 |
|
Depreciation |
|
|
8.8 |
|
|
|
7.6 |
|
|
|
25.3 |
|
|
|
22.7 |
|
EBITDA |
|
|
9.4 |
|
|
|
36.1 |
|
|
|
(9.5 |
) |
|
|
120.4 |
|
Goodwill impairment |
|
|
— |
|
|
|
— |
|
|
|
56.5 |
|
|
|
— |
|
Acquisition costs |
|
|
— |
|
|
|
— |
|
|
|
0.5 |
|
|
|
— |
|
Acquisition-related costs - purchase accounting adjustments related
to inventory |
|
|
— |
|
|
|
— |
|
|
|
0.5 |
|
|
|
— |
|
Restructuring costs |
|
|
0.1 |
|
|
|
— |
|
|
|
1.4 |
|
|
|
0.6 |
|
Loss on sale of Dabir assets |
|
|
— |
|
|
|
— |
|
|
|
0.6 |
|
|
|
— |
|
Adjusted
EBITDA |
|
$ |
9.5 |
|
|
$ |
36.1 |
|
|
$ |
50.0 |
|
|
$ |
121.0 |
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
January 27, 2024 |
|
|
January 28, 2023 |
|
|
January 27, 2024 |
|
|
January 28, 2023 |
|
Free Cash Flow: |
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
$ |
28.8 |
|
|
$ |
55.7 |
|
|
$ |
22.6 |
|
|
$ |
83.8 |
|
Purchases of property, plant and equipment |
|
|
(16.6 |
) |
|
|
(12.8 |
) |
|
|
(41.1 |
) |
|
|
(30.8 |
) |
Free
cash flow |
|
$ |
12.2 |
|
|
$ |
42.9 |
|
|
$ |
(18.5 |
) |
|
$ |
53.0 |
|
|
|
January 27, 2024 |
|
|
April 29, 2023 |
|
Net Debt: |
|
|
|
|
|
|
Short-term debt |
|
$ |
0.2 |
|
|
$ |
3.2 |
|
Long-term debt |
|
|
331.1 |
|
|
|
303.6 |
|
Total
debt |
|
|
331.3 |
|
|
|
306.8 |
|
Less:
cash and cash equivalents |
|
|
(122.9 |
) |
|
|
(157.0 |
) |
Net
debt |
|
$ |
208.4 |
|
|
$ |
149.8 |
|
METHODE ELECTRONICS, INC. AND
SUBSIDIARIESRECONCILIATION OF NON-GAAP MEASURES
(Unaudited)(in millions, except per share
data) |
|
Reconciliation of Non-GAAP Financial Measures for the Three
Months Ended January 27, 2024 |
|
|
|
U.S. GAAP (as reported) |
|
|
Goodwill impairment |
|
|
Acquisition costs |
|
|
Purchase accounting adjustments related to
inventory |
|
|
Restructuring costs |
|
|
Loss on sale of Dabir assets |
|
|
Non-U.S.GAAP |
|
(Loss) income from operations |
|
$ |
(3.0 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.1 |
|
|
$ |
— |
|
|
$ |
(2.9 |
) |
Pre-tax
(loss) income |
|
$ |
(10.5 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.1 |
|
|
$ |
— |
|
|
$ |
(10.4 |
) |
Net
(loss) income |
|
$ |
(11.6 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.1 |
|
|
$ |
— |
|
|
$ |
(11.5 |
) |
Diluted
(loss) income per share |
|
$ |
(0.33 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(0.33 |
) |
Reconciliation of Non-GAAP Financial Measures for the Three
Months Ended January 28, 2023 |
|
|
|
U.S. GAAP (as reported) |
|
|
Goodwill impairment |
|
|
Acquisition costs |
|
|
Purchase accounting adjustments related to
inventory |
|
|
Restructuring costs |
|
|
Loss on sale of Dabir assets |
|
|
Non-U.S.GAAP |
|
Income from operations |
|
$ |
27.3 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
27.3 |
|
Pre-tax
income |
|
$ |
23.0 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
23.0 |
|
Net
income |
|
$ |
19.9 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
19.9 |
|
Diluted
income per share |
|
$ |
0.54 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.54 |
|
Reconciliation of Non-GAAP Financial Measures for the Nine
Months Ended January 27, 2024 |
|
|
|
U.S. GAAP (as reported) |
|
|
Goodwill impairment |
|
|
Acquisition costs |
|
|
Purchase accounting adjustments related to
inventory |
|
|
Restructuring costs |
|
|
Loss on sale of Dabir assets |
|
|
Non-U.S.GAAP |
|
(Loss) income from operations |
|
$ |
(50.5 |
) |
|
$ |
56.5 |
|
|
$ |
0.5 |
|
|
$ |
0.5 |
|
|
$ |
1.4 |
|
|
$ |
— |
|
|
$ |
8.4 |
|
Pre-tax
(loss) income |
|
$ |
(65.0 |
) |
|
$ |
56.5 |
|
|
$ |
0.5 |
|
|
$ |
0.5 |
|
|
$ |
1.4 |
|
|
$ |
0.6 |
|
|
$ |
(5.5 |
) |
Net
(loss) income |
|
$ |
(66.0 |
) |
|
$ |
56.5 |
|
|
$ |
0.4 |
|
|
$ |
0.4 |
|
|
$ |
1.1 |
|
|
$ |
0.5 |
|
|
$ |
(7.1 |
) |
Diluted
(loss) income per share |
|
$ |
(1.86 |
) |
|
$ |
1.59 |
|
|
$ |
0.01 |
|
|
$ |
0.01 |
|
|
$ |
0.03 |
|
|
$ |
0.01 |
|
|
$ |
(0.21 |
) |
Reconciliation of Non-GAAP Financial Measures for the Nine
Months Ended January 28, 2023 |
|
|
|
U.S. GAAP (as reported) |
|
|
Goodwill impairment |
|
|
Acquisition costs |
|
|
Purchase accounting adjustments related to
inventory |
|
|
Restructuring costs |
|
|
Loss on sale of Dabir assets |
|
|
Non-U.S.GAAP |
|
Income from operations |
|
$ |
81.9 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.6 |
|
|
$ |
— |
|
|
$ |
82.5 |
|
Pre-tax
income |
|
$ |
82.3 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.6 |
|
|
$ |
— |
|
|
$ |
82.9 |
|
Net
income |
|
$ |
69.0 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.5 |
|
|
$ |
— |
|
|
$ |
69.5 |
|
Diluted
income per share |
|
$ |
1.87 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.01 |
|
|
$ |
— |
|
|
$ |
1.88 |
|
Grafico Azioni Methode Electronics (NYSE:MEI)
Storico
Da Ago 2024 a Set 2024
Grafico Azioni Methode Electronics (NYSE:MEI)
Storico
Da Set 2023 a Set 2024