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| 8-K - FORM 8-K - KEY TRONIC CORP | d8k.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
| CONTACTS: | Ron Klawitter | Michael Newman | ||
| Chief Financial Officer | Investor Relations | |||
| Key Tronic Corporation | StreetConnect | |||
| (509) 927-5295 | (206) 729-3625 |
KEY TRONIC CORPORATION ANNOUNCES
FOURTH QUARTER AND YEAR END RESULTS
Year-over-Year Revenue Up 27%;
Continued Growth in Revenue Contribution from New Programs;
More New Customer Wins and Revenue Diversification
Spokane Valley, WA — August 23, 2011 — Key Tronic Corporation (Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today announced its results for the quarter and year ended July 2, 2011.
For the fourth quarter of fiscal 2011, Key Tronic reported total revenue of $66.0 million, up 7% from $61.9 million in the same period of fiscal 2010. For the full year of fiscal 2011, total revenue was $253.8 million, up 27% from $199.6 million in fiscal 2010.
Net income for the fourth quarter of fiscal 2011 was $1.5 million or $0.15 per diluted share, compared to $2.3 million or $0.22 per diluted share for the same period of fiscal 2010. For the full year of fiscal 2011, net income was $5.7 million or $0.55 per diluted share, compared to $8.7 million or $0.85 per diluted share for fiscal 2010.
“We’re pleased with our strong year-over-year revenue growth for fiscal 2011, driven by the production ramp ups of new programs for both our longstanding and new customers,” said Craig Gates, President and Chief Executive Officer. “Due to increasing industry awareness that our customers are benefiting from our unique blend of multinational facilities and centralized management, we continue to see our market share grow. During the fourth quarter, we continued to extend our customer portfolio across a wide range of industries, winning new programs involving solar power controllers, energy monitors and electronic whiteboards.
“During most of the year, our operating performance was adversely affected as we absorbed the costs associated with bringing many new programs into production while dealing with industry-wide supply chain constraints. By the fourth quarter, the component shortages were behind us and we made good progress in optimizing the product designs, production processes and supply chains of our new programs. As a result, we saw marked improvement in our margins in the fourth quarter and achieved another year of solid profitability.
“We move into fiscal 2012 with strong business momentum and a highly diversified customer base, and anticipate more of our new programs moving into production and gradually ramping up. Despite the current macroeconomic uncertainty, we expect to continue to capture market share and capitalize on emerging opportunities.”
Business Outlook
For the first quarter of fiscal 2012, the Company expects to report revenue in the range of $65 million to $69 million, and earnings in the range of $0.10 to $0.15 per diluted share.
Conference Call
Key Tronic will host a conference call today to discuss its financial results at 2:00 PM Pacific (5:00 PM Eastern). A broadcast of the conference call will be available at www.keytronic.com under “Investor Relations” or by calling 877-941-8609 or +1 480-629-9818. A 48-hour replay will be available by calling 800-406-7325 or +1 303 590 3030 (Access Code: 4452261). A replay will also be available on the Company’s Web site.
About Key Tronic
Key Tronic is a leading contract manufacturer offering value-added design and manufacturing services from its facilities in the United States, Mexico and China. The Company provides its customers full engineering services, materials management, worldwide manufacturing facilities, assembly services, in-house testing, and worldwide distribution. Its customers include some of the world’s leading original equipment manufacturers. For more information about Key Tronic visit: www.keytronic.com.
Some of the statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all passages containing verbs such as ‘aims, anticipates, believes, estimates, expects, hopes, intends, plans, predicts, projects or targets’ or nouns corresponding to such verbs. Forward-looking statements also include other passages that are primarily relevant to expected future events or that can only be fully evaluated by events that will occur in the future. Forward-looking statements in this release include, without limitation, the Company’s statements regarding its expectations with respect to quarterly revenue and earnings during fiscal 2012. There are many factors, risks and uncertainties that could cause actual results to differ materially from those predicted or projected in forward-looking statements, including but not limited to the future of the global economic environment and its impact on our customers and suppliers, the availability of parts from the supply chain, the accuracy of customers’ forecasts; success of customers’ programs; timing of new programs; success of new-product introductions; acquisitions or divestitures of operations or facilities; technology advances; changes in pricing policies by the Company, its competitors, customers or suppliers; and the other risks and uncertainties detailed from time to time in the Company’s SEC filings.
KEY TRONIC CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| July 2, 2011 |
July 3, 2010 |
July 2, 2011 |
July 3, 2010 |
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| Net sales |
$ | 66,044 | $ | 61,864 | $ | 253,846 | $ | 199,620 | ||||||||
| Cost of sales |
61,041 | 55,241 | 233,198 | 180,370 | ||||||||||||
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| Gross profit on sales |
5,003 | 6,623 | 20,648 | 19,250 | ||||||||||||
| Operating expenses: |
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| Research, development and engineering |
988 | 720 | 3,782 | 2,783 | ||||||||||||
| Selling, general and administrative |
2,352 | 2,854 | 9,927 | 9,079 | ||||||||||||
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| Total operating expenses |
3,340 | 3,574 | 13,709 | 11,862 | ||||||||||||
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| Operating income |
1,663 | 3,049 | 6,939 | 7,388 | ||||||||||||
| Interest expense |
138 | 25 | 457 | 102 | ||||||||||||
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| Income before income taxes |
1,525 | 3,024 | 6,482 | 7,286 | ||||||||||||
| Income tax (benefit) provision |
(12 | ) | 713 | 746 | (1,404 | ) | ||||||||||
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| Net income |
$ | 1,537 | $ | 2,311 | $ | 5,736 | $ | 8,690 | ||||||||
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| Earnings per share: |
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| Earnings per common share — basic |
$ | 0.15 | $ | 0.23 | $ | 0.55 | $ | 0.86 | ||||||||
| Weighted average shares outstanding — basic |
10,380 | 10,219 | 10,344 | 10,124 | ||||||||||||
| Earnings per common share — diluted |
$ | 0.15 | $ | 0.22 | $ | 0.55 | $ | 0.85 | ||||||||
| Weighted average shares outstanding — diluted |
10,435 | 10,342 | 10,407 | 10,191 | ||||||||||||
KEY TRONIC CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
| July 2, 2011 |
July 3, 2010 |
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| ASSETS |
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| Current assets: |
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| Cash and cash equivalents |
$ | 1,232 | $ | 770 | ||||
| Trade receivables |
40,350 | 34,617 | ||||||
| Inventories |
41,554 | 39,775 | ||||||
| Deferred income tax asset |
5,431 | 4,420 | ||||||
| Other |
4,549 | 3,115 | ||||||
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| Total current assets |
93,116 | 82,697 | ||||||
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| Property, plant and equipment — net |
14,917 | 13,898 | ||||||
| Other assets: |
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| Deferred income tax asset |
8,384 | 4,394 | ||||||
| Other |
1,643 | 653 | ||||||
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| Total other assets |
10,027 | 5,047 | ||||||
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| Total assets |
$ | 118,060 | $ | 101,642 | ||||
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| LIABILITIES AND SHAREHOLDERS’ EQUITY |
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| Current liabilities: |
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| Accounts payable |
$ | 26,150 | $ | 29,158 | ||||
| Accrued compensation and vacation |
4,436 | 5,097 | ||||||
| Current portion of other long-term obligations |
761 | 146 | ||||||
| Other |
3,479 | 3,588 | ||||||
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| Total current liabilities |
34,826 | 37,989 | ||||||
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| Long-term liabilities: |
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| Revolving loan |
6,000 | 1,554 | ||||||
| Deferred income tax liability |
5,690 | 608 | ||||||
| Other long-term obligations |
3,521 | 2,074 | ||||||
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| Total long-term liabilities |
15,211 | 4,236 | ||||||
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| Shareholders’ equity: |
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| Common stock, no par value ( in thousands) — shares authorized 25,000; issued and outstanding 10,399 and 10,264 shares, respectively |
41,014 | 40,126 | ||||||
| Retained earnings |
25,269 | 19,533 | ||||||
| Accumulated other comprehensive income (loss) |
1,740 | (242 | ) | |||||
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| Total shareholders’ equity |
68,023 | 59,417 | ||||||
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| Total liabilities and shareholders’ equity |
$ | 118,060 | $ | 101,642 | ||||
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