Form 8-K Kimball Electronics, For: Nov 02

FREE Breaking News Alerts from StreetInsider.com!

E-mail Address

StreetInsider.com Top Tickers, 8/21/2026

1. TGT
2. EL
3. SPY
4. WMT
5. ROST
6. ADI
7. BILL
8. MRK
9. MRNA
10. TJX

November 2, 2016 4:44 PM EDT


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.  20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)   November 2, 2016
keilogoonelinecolorcmyk2revi.jpg
KIMBALL ELECTRONICS, INC.
________________________________________________________________________________________________________
(Exact name of registrant as specified in its charter)
 
 
 
 
 
Indiana
 
001-36454
 
35-2047713
(State or other jurisdiction of
 
(Commission File
 
(IRS Employer Identification No.)
incorporation)
 
Number)
 
 
 
 
 
1205 Kimball Boulevard, Jasper, Indiana
 
47546
(Address of principal executive offices)
 
(Zip Code)
Registrant’s telephone number, including area code   (812) 634-4000
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

1


Item 2.02 Results of Operations and Financial Condition
On November 2, 2016, Kimball Electronics, Inc. (the “Company”) issued an earnings release for the first quarter ended September 30, 2016.  The earnings release is attached as Exhibit 99.1 and supplementary information provided for the Company’s earnings conference call is attached as Exhibit 99.2.

The information, including Exhibit 99.1 and Exhibit 99.2, in this Form 8-K is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Form 8-K shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or under the Securities Exchange Act of 1934, as amended, except as shall otherwise be expressly set forth by specific reference in such filing.


Item 9.01 Financial Statements and Exhibits
(d) Exhibits
The following exhibits are filed as part of this report:
Exhibit
 
 
Number
 
Description
99.1
 
Earnings Release dated November 2, 2016
99.2
 
Supplementary Information


2


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
KIMBALL ELECTRONICS, INC.
 
 
By:
/s/ Michael K. Sergesketter
 
MICHAEL K. SERGESKETTER
Vice President,
Chief Financial Officer
Date: November 2, 2016

3


EXHIBIT INDEX
Exhibit
 
 
Number
 
Description
99.1
 
Earnings Release dated November 2, 2016
99.2
 
Supplementary Information

4


Exhibit 99.1
KIMBALL ELECTRONICS, INC. REPORTS FIRST QUARTER FISCAL YEAR 2017 RESULTS
•
Quarterly net sales record of $226 million
•
Diluted EPS of $0.36, adjusted diluted EPS of $0.24 (non-GAAP)*
•
Cash flow from operating activities of $14.0 million
•
Returned $6.4 million to Share Owners in stock repurchases
JASPER, IN (November 2, 2016) - Kimball Electronics, Inc. (Nasdaq: KE), a leading global electronic manufacturing services provider of high-quality, durable electronic products, today announced financial results for its first quarter ended September 30, 2016. 
 
Three Months Ended
 
September 30,
(Amounts in Thousands, except EPS)
2016
 
2015
Net Sales
$
226,451

 
$
200,418

Operating Income
$
12,822

 
$
6,921

Adjusted Operating Income (non-GAAP)*
$
8,817

 
$
7,058

Operating Income %
5.7
%
 
3.5
%
Adjusted Operating Income (non-GAAP) %
3.9
%
 
3.5
%
Net Income
$
10,122

 
$
4,475

Adjusted Net Income (non-GAAP)*
$
6,698

 
$
4,560

Diluted EPS
$
0.36

 
$
0.15

Adjusted Diluted EPS (non-GAAP)*
$
0.24

 
$
0.16

* A reconciliation of GAAP and non-GAAP financial measures is included below.

Donald D. Charron, Chairman and Chief Executive Officer, stated, “Continued strength in the automotive market combined with double digit growth in our medical end market vertical helped us set a new quarterly sales record in the first quarter of fiscal year 2017. Our new program launch activity remains high as we continue to work diligently to achieve our goal of $1 billion in annual sales by fiscal year 2018.”
Mr. Charron continued, “We continue to experience pressure on our margins and we still have work to do to achieve our goal of 12.5% ROIC. Margin expansion and capital efficiency will continue to be priorities of focus for us going forward. This will be a pivotal year for us as we work through another year of significant new program launches, the ramp-up of our new Romania operation, and the integration of our recent Medivative and Aircom acquisitions.”
First Quarter Fiscal Year 2017 Overview:
•
Consolidated net sales increased 13% compared to the first quarter of fiscal year 2016, setting a new quarterly sales record for the third consecutive quarter.
•
The Company received $4.0 million during the quarter, $2.5 million net of tax, related to proceeds from the settlement of a class action lawsuit of which the Company was a member.
•
During the quarter, the Company completed the acquisition of Aircom Manufacturing, Inc. As a result of the acquisition, a bargain purchase gain of $0.9 million was recognized during the quarter and included in net income.
•
Incremental net loss associated with the start-up of the Company’s Romania facility was $1.1 million during the current fiscal year first quarter.
•
Return on invested capital (“ROIC”) was 9.6% for the first quarter of fiscal year 2017, which improved from 7.9% in the prior year quarter (see reconciliation of non-GAAP financial measures for ROIC calculation).
•
Cash flow from operating activities was $14.0 million for the quarter.
•
Cash conversion days (“CCD”) for the quarter ended September 30, 2016 were 58 days, which improved from 61 days for 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, excluding the Aircom acquisition, were $10.3 million during the quarter.




•
$6.4 million was returned to Share Owners during the quarter in the form of common stock repurchases. On September 29, 2016, the Company’s Board of Directors authorized an extension of the current stock repurchase plan to allow the repurchase of up to an additional $20 million worth of common stock.
•
Cash and cash equivalents were $50.0 million and borrowings outstanding on credit facilities were $9.0 million at September 30, 2016.
Net Sales by Vertical Market:

Three Months Ended
 
 
 
September 30,
 
 
(Amounts in Millions)
2016
 
2015
 
Percent Change
Automotive
$
92.2

 
$
72.0

 
28
%
Medical
65.0

 
58.5

 
11
%
Industrial
51.5

 
49.5

 
4
%
Public Safety
13.2

 
16.4

 
(20
)%
Other
4.6

 
4.0

 
15
%
    Total Net Sales
$
226.5

 
$
200.4

 
13
%
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, the global economic conditions, 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 June 30, 2016.
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 the United States 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 were adjusted for spin-off expenses, proceeds from a lawsuit settlement, and a bargain purchase gain. 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 spin-off expenses, 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 charges to enable meaningful trending of core operating metrics.
Conference Call / Webcast
 
 
 
Date:
 
November 3, 2016
Time:
 
10:00 AM Eastern Time
Dial-In #:
 
800-992-4934 (International Calls - 937-502-2251)
Conference ID:
 
94379299
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 Kimball Electronics, Inc.
Recognized with a reputation for excellence, Kimball Electronics is committed to a high performance culture that values personal and organizational commitment to quality, reliability, value, speed, and ethical behavior. Kimball Electronics 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 medical, automotive, industrial, and public safety 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 engineering, manufacturing, and supply chain services 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, visit: www.kimballelectronics.com.

Lasting relationships. Global success.




Financial highlights for the first quarter ended September 30, 2016 are as follows:

Condensed Consolidated Statements of Income
 
 
 
 
 
 
(Unaudited)
Three Months Ended
(Amounts in Thousands, except Per Share Data)
September 30, 2016
 
September 30, 2015
Net Sales
$
226,451

 
100.0
%
 
$
200,418

 
100.0
%
Cost of Sales
208,129

 
91.9
%
 
185,138

 
92.4
%
Gross Profit
18,322

 
8.1
%
 
15,280

 
7.6
%
Selling and Administrative Expenses
9,505

 
4.2
%
 
8,359

 
4.1
%
Other General Income
(4,005
)
 
(1.8
)%
 
—

 
—
%
Operating Income
12,822

 
5.7
%
 
6,921

 
3.5
%
Other Income (Expense), net
763

 
0.3
%
 
(666
)
 
(0.4
)%
Income Before Taxes on Income
13,585

 
6.0
%
 
6,255

 
3.1
%
Provision for Income Taxes
3,463

 
1.5
%
 
1,780

 
0.9
%
Net Income
$
10,122

 
4.5
%
 
$
4,475

 
2.2
%
 
 
 
 
 
 
 
 
Earnings Per Share of Common Stock:
 
 
 
 
 
 
 
Basic
$
0.36

 
 
 
$
0.15

 
 
Diluted
$
0.36

 
 
 
$
0.15

 
 
 
 
 
 
 
 
 
 
Average Number of Shares Outstanding:
 
 
 
 
 
 
 
     Basic
28,078

 
 
 
29,292

 
 
     Diluted
28,095

 
 
 
29,349

 
 
 
 
 
 
 
 
 
 





Condensed Consolidated Statements of Cash Flows
Three Months Ended
(Unaudited)
September 30,
(Amounts in Thousands)
2016
 
2015
Net Cash Flow provided by (used for) Operating Activities
$
14,039

 
$
(529
)
Net Cash Flow used for Investing Activities
(12,284
)
 
(11,114
)
Net Cash Flow used for Financing Activities
(6,664
)
 
(694
)
Effect of Exchange Rate Change on Cash and Cash Equivalents
190

 
(160
)
Net Decrease in Cash and Cash Equivalents
(4,719
)
 
(12,497
)
Cash and Cash Equivalents at Beginning of Period
54,738

 
65,180

Cash and Cash Equivalents at End of Period
$
50,019

 
$
52,683



 
(Unaudited)
 
 
Condensed Consolidated Balance Sheets
September 30,
2016
 
June 30,
2016
(Amounts in Thousands)
 
ASSETS
 
 
 
    Cash and cash equivalents
$
50,019

 
$
54,738

    Receivables, net
159,680

 
149,652

    Inventories
139,230

 
132,877

    Prepaid expenses and other current assets
21,866

 
24,944

    Property and Equipment, net
131,457

 
120,701

    Goodwill
6,191

 
6,191

    Other Intangible Assets, net
4,868

 
4,593

    Other Assets
16,702

 
16,869

        Total Assets
$
530,013

 
$
510,565

 
 
 
 
LIABILITIES AND SHARE OWNERS’ EQUITY
 
 
 
    Borrowings under credit facilities
$
9,000

 
$
9,000

    Accounts payable
156,941

 
142,152

    Accrued expenses
22,470

 
23,651

    Other
12,235

 
11,393

    Share Owners’ Equity
329,367

 
324,369

        Total Liabilities and Share Owners’ Equity
$
530,013

 
$
510,565





Reconciliation of Non-GAAP Financial Measures
 
 
(Unaudited)
 
 
 
(Amounts in Thousands, except Per Share Data)
 
 
 
 
 
 
 
Operating Income excluding Spin-off Expenses and Lawsuit Proceeds
 
Three Months Ended
 
September 30,
 
2016
 
2015
Operating Income, as reported
$
12,822

 
$
6,921

Add: Pre-tax Spin-off Expenses
—

 
137

Less: Pre-tax Settlement Proceeds from Lawsuit
4,005

 
—

Adjusted Operating Income
$
8,817

 
$
7,058

 
 
 
 
 
 
 
 
Net Income excluding Spin-off Expenses, Lawsuit Proceeds, and Bargain Purchase Gain
 
Three Months Ended
 
September 30,
 
2016
 
2015
Net Income, as reported
$
10,122

 
$
4,475

Add: After-tax Spin-off Expenses
—

 
85

Less: After-tax Settlement Proceeds from Lawsuit
2,499

 
—

Less: Bargain Purchase Gain
925

 
—

Adjusted Net Income
$
6,698

 
$
4,560

 
 
 
 
 
 
 
 
Diluted Earnings per Share excluding Spin-off Expenses, Lawsuit Proceeds, and Bargain Purchase Gain
 
Three Months Ended
 
September 30,
 
2016
 
2015
Diluted Earnings per Share, as reported
$
0.36

 
$
0.15

Add: Impact of Spin-off Expenses
—

 
0.01

Less: Impact of Settlement Proceeds from Lawsuits
0.09

 
—

Less: Bargain Purchase Gain
0.03

 
—

Adjusted Diluted Earnings per Share
$
0.24

 
$
0.16

 
 
 
 
Return on Invested Capital (ROIC)
 
 
 
 
Three Months Ended
 
September 30,
 
2016
 
2015
Adjusted Operating Income
$
8,817

 
$
7,058

 
 
 
 
Annualized Adjusted Operating Income
$
35,268

 
$
28,232

Tax Rate
22.7
%
 
28.8
%
Tax Effect
$
8,006

 
$
8,131

After Tax Annualized Adjusted Operating Income
$
27,262

 
$
20,101

 
 
 
 
Average Invested Capital *
$
283,490

 
$
255,406

 
 
 
 
ROIC
9.6
%
 
7.9
%

* Average Invested Capital is computed using the average quarterly Share Owners’ equity plus current and non-current debt less cash and cash equivalents.


Lasting relationships. Global success.Lasting relationships. Global success. Financial Results First Quarter Fiscal Year 2017 Quarter Ended September 30, 2016 Supplementary Information to November 3, 2016 Earnings Conference Call Exhibit 99.2

 
Lasting relationships. Global success.Lasting relationships. Global success. Safe Harbor Statement Certain statements contained within this supplementary information and any statements made during our earnings conference call today may be 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, the global economic conditions, 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 Kimball Electronics, Inc. (the “Company”) are contained in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2016, our earnings release, and other filings with the Securities and Exchange Commission (the “SEC”). This supplementary information 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 the United States 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 Selling & Administrative Expense (%), Adjusted Operating Income, Adjusted Net Income, Adjusted EBITDA and Return on Invested Capital (ROIC), which have been adjusted for spin-off expenses, proceeds from a lawsuit settlement, and a bargain purchase gain. Management believes it is useful for investors to understand how its core operations performed without the effects of incremental costs related to the spin-off, the lawsuit proceeds, 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 use these and other non-GAAP measures to enable meaningful trending of core operating metrics. 2

 
Lasting relationships. Global success.Lasting relationships. Global success. Net Sales (Unaudited) $230 $225 $220 $215 $210 $205 $200 $195 $190 $185 $180 $175 In M illi on s Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 $208 $207 $201 $200 $207 $214 $220 $226 +13% from Q1'16 3

 
Lasting relationships. Global success.Lasting relationships. Global success. Net Sales Mix by Vertical Market (Unaudited) Automotive Medical Industrial Public Safety Other 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% % of Sa le s Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 36% 36% 39% 36% 40% 40% 39% 41% 30% 29% 29% 29% 29% 31% 30% 28% 24% 25% 22% 25% 20% 21% 22% 23% 8% 7% 8% 8% 8% 7% 7% 6% 2% 3% 2% 2% 3% 1% 2% 2% 4

 
Lasting relationships. Global success.Lasting relationships. Global success. Gross Margin % (Unaudited) 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% % of Sa le s Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 8.6% 9.2% 8.8% 7.6% 7.8% 7.6% 7.7% 8.1% 5

 
Lasting relationships. Global success.Lasting relationships. Global success. Selling & Administrative Expense (%) (Excludes spin-off costs*) (Unaudited) 4.6% 4.4% 4.2% 4.0% 3.8% 3.6% 3.4% % of Sa le s Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 3.8% 3.8% 4.3% 4.1% 4.5% 4.3% 3.7% 4.2% *Spin-off costs excluded by quarter were Q2’15 - $1.3M (0.6%), Q3’15 - $0.3M (0.2%), Q1’16 - $0.1M (0.0%) 6

 
Lasting relationships. Global success.Lasting relationships. Global success. Adjusted Operating Income (Excludes spin-off costs and lawsuit settlement proceeds) (Unaudited) Adj Op Income % of Net Sales $12.0 $10.0 $8.0 $6.0 $4.0 $2.0 $0.0 In M illi on s 6.0% 5.5% 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% % of Sa le s Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 $10.0 $11.1 $9.1 $7.1 $6.9 $7.1 $8.8 $8.8 4.8% 5.4% 4.5% 3.5% 3.3% 3.3% 4.0% 3.9% Note: Adjusted Operating Income is a Non-GAAP measure – refer to Reconciliation of Non-GAAP Results on the final slide of this supplementary information 7

 
Lasting relationships. Global success.Lasting relationships. Global success. Adjusted Net Income (Excludes spin-off costs, lawsuit settlement proceeds, and bargain purchase gain) (Unaudited) $8.0 $7.0 $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $0.0 In M illi on s Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 $7.4 $7.5 $7.4 $4.6 $4.6 $7.5 $5.8 $6.7 Notes: Q3'16 includes a $1.8 million discrete foreign tax benefit related to the capitalization of our Romania subsidiary; Adjusted Net Income is a Non-GAAP measure - refer to Reconciliation of Non-GAAP Results on the final slide of this supplementary information 8

 
Lasting relationships. Global success.Lasting relationships. Global success. Adjusted EBITDA (Excludes spin-off costs, lawsuit settlement proceeds, and bargain purchase gain) (Unaudited) Adjusted EBITDA Adjusted EBITDA % of Sales $18.0 $16.0 $14.0 $12.0 $10.0 $8.0 $6.0 $4.0 $2.0 $0.0 In M illi on s 8.0 7.5 7.0 6.5 6.0 5.5 5.0 % of Sa le s Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 $15.0 $15.0 $13.7 $11.2 $11.2 $11.9 $13.6 $15.9 7.2% 7.3% 6.8% 5.6% 5.4% 5.5% 6.2% 7.0% Note: Adjusted EBITDA is a Non-GAAP measure - refer to Reconciliation of Non-GAAP Results on the final slide of this supplementary information 9

 
Lasting relationships. Global success.Lasting relationships. Global success. Return on Invested Capital (Excludes spin-off costs and lawsuit settlement proceeds) 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% R O IC % Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 11.8% 12.4% 12.5% 7.9% 7.7% 8.7% 9.0% 9.6% Notes: We define ROIC as after tax annualized adjusted operating income divided by average invested capital; ROIC is a Non-GAAP measure - refer to Reconciliation of Non-GAAP Results on the final slide of this supplementary information (Unaudited) 10

 
Lasting relationships. Global success.Lasting relationships. Global success. Operating Cash Flow (Unaudited) $20.0 $15.0 $10.0 $5.0 $0.0 -$5.0 In M illi on s Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 $8.0 $7.7 $16.8 ($0.5) $16.8 $11.7 $8.8 $14.0 11

 
Lasting relationships. Global success.Lasting relationships. Global success. Capital Expenditures and Depreciation & Amortization (Unaudited) Cap Ex Depr & Amort $15.0 $13.0 $11.0 $9.0 $7.0 $5.0 $3.0 In M illi on s Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 $9.0 $6.1 $13.9 $11.3 $8.2 $8.6 $6.5 $10.3 $5.0 $4.8 $5.0 $4.9 $4.9 $4.6 $5.5 $5.7 Note: Capital Expenditures include purchases of capitalized software. 12

 
Lasting relationships. Global success.Lasting relationships. Global success. Reconciliation of Non-GAAP Results (Unaudited) Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Operating Income, as Reported $ 8,697 $ 10,821 $ 9,050 $ 6,921 $ 6,933 $ 7,078 $ 8,790 $ 12,822 Add: Spin-off Expenses 1,285 321 24 137 0 0 0 0 Less: Lawsuit Proceeds 0 0 0 0 0 0 0 4,005 Adjusted Operating Income $ 9,982 $ 11,142 $ 9,074 $ 7,058 $ 6,933 $ 7,078 $ 8,790 $ 8,817 Net Income, as reported $ 6,229 $ 7,191 $ 7,394 $ 4,475 $ 4,564 $ 7,477 $ 5,771 $ 10,122 Add: Spin-off Expenses 1,168 278 16 85 0 0 0 0 Less: Lawsuit Proceeds 0 0 0 0 0 0 0 2,499 Less: Bargain Purchase Gain 0 0 0 0 0 0 0 925 Adjusted Net Income $ 7,397 $ 7,469 $ 7,410 $ 4,560 $ 4,564 $ 7,477 $ 5,771 $ 6,698 Adjusted Net Income $ 7,397 $ 7,469 $ 7,410 $ 4,560 $ 4,564 $ 7,477 $ 5,771 $ 6,698 Add(Less) Interest, net (7) (10) (8) (11) (8) 1 19 16 Add Depreciation & Amortization 5,023 4,832 4,958 4,885 4,894 4,557 5,533 5,713 Add(Less) Taxes 2,622 2,744 1,301 1,780 1,781 (166) 2,294 3,463 Adjusted EBITDA $ 15,035 $ 15,035 $ 13,661 $ 11,214 $ 11,231 $ 11,869 $ 13,617 $ 15,890 Operating Income, As Reported (YTD) $ 16,484 $ 27,305 $ 36,355 $ 6,921 $ 13,854 $ 20,932 $ 29,722 $ 12,822 Add: Spin-off Expenses (YTD) $ 2,249 $ 2,571 $ 2,594 $ 137 $ 137 $ 137 $ 137 $ — Less: Lawsuit Proceeds $ — $ — $ — $ — $ — $ — $ — $ 4,005 Adjusted Operating Income (YTD) $ 18,733 $ 29,876 $ 38,949 $ 7,058 $ 13,991 $ 21,069 $ 29,859 $ 8,817 Annualized Adjusted Operating Income $ 37,466 $ 39,835 $ 28,232 $ 27,982 $ 28,092 $ 35,268 Tax Rate 25.5% 26.3% 23.4% 28.8% 29.2% 19.5% 20.4% 22.7% Tax Effect $ 9,554 $ 10,477 $ 9,114 $ 8,131 $ 8,171 $ 5,478 $ 6,091 $ 8,006 After Tax Adjusted Operating Income (YTD) $ 27,912 $ 29,358 $ 29,835 $ 20,101 $ 19,811 $ 22,614 $ 23,768 $ 27,262 Average Invested Capital * $ 236,021 $ 237,512 $ 239,463 $ 255,406 $ 256,785 $ 259,557 $ 263,371 $ 283,490 ROIC 11.8% 12.4% 12.5% 7.9% 7.7% 8.7% 9.0% 9.6% 13* Average Invested Capital is computed using the average quarterly Share Owners equity plus current and non-current debt less cash and cash equivalents.

 

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

SEC Filings