Exhibit 99.1
KIMBALL ELECTRONICS, INC. REPORTS SECOND QUARTER FISCAL YEAR 2019 RESULTS
Second quarter net sales of $284 million, up 10% year-over-year
Net income of $7.1 million and diluted earnings per share of $0.27
Returned $13.3 million to Share Owners in stock repurchases during the quarter
Completed the GES acquisition on October 1, 2018
JASPER, IN (February 6, 2019) - Kimball Electronics, Inc. (Nasdaq: KE), a leading global electronics manufacturing services provider of high-quality, durable electronic products, today announced financial results for its second quarter ended December 31, 2018
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
December 31,
 
December 31,
(Amounts in Thousands, except EPS)
2018 (1)
 
2017
 
2018 (1)
 
2017
Net Sales
$
284,149

 
$
258,151

 
$
549,769

 
$
511,355

Operating Income (2)
$
10,212

 
$
10,119

 
$
17,244

 
$
19,642

Adjusted Operating Income (non-GAAP) (2) (3)
$
10,212

 
$
10,119

 
$
17,152

 
$
19,642

Operating Income %
3.6
%
 
3.9
%
 
3.1
%
 
3.8
%
Net Income (Loss)
$
7,115

 
$
(8,347
)
 
$
12,184

 
$
133

Adjusted Net Income (non-GAAP) (3)
$
6,864

 
$
8,233

 
$
11,863

 
$
16,713

Diluted EPS
$
0.27

 
$
(0.31
)
 
$
0.46

 
$
0.00

Adjusted Diluted EPS (non-GAAP) (3)
$
0.26

 
$
0.31

 
$
0.45

 
$
0.62

(1) As of the beginning of fiscal year 2019, the Company adopted the new accounting standard on Revenue from Contracts with Customers on a modified retrospective basis. For the three months ended December 31, 2018, the adoption increased Net Sales $6.0 million, Net Income increased $0.2 million, and Diluted EPS was unchanged. For the six months ended December 31, 2018, the adoption increased Net Sales $6.4 million, Net Income increased $0.3 million, and Diluted EPS increased $0.01. The prior periods were not restated.
(2) Prior period amounts have been restated to reflect the retrospective adoption of new accounting guidance on improving the presentation of net periodic pension cost and net periodic postretirement benefit cost.
(3) A reconciliation of GAAP and non-GAAP financial measures is included below.
Donald D. Charron, Chairman and Chief Executive Officer, stated, “We achieved solid year-over-year organic growth in three of our four end market verticals as the ramp-up of new program launches helped to more than offset continued softness in certain other programs primarily caused by global macro-economic conditions, component shortages, and trade uncertainties.”
Mr. Charron continued, “We made good progress in optimizing our core business and with the acquisition of GES, we took a significant step in our strategy to diversify ourselves into a multifaceted manufacturing solutions provider.  We are cautiously optimistic that our goal of 8% organic growth remains in reach for fiscal year 2019, and we expect to meet our 4.5% operating income goal for the second half of fiscal year 2019.”
Second Quarter Fiscal Year 2019 Overview:
Consolidated net sales increased 10% compared to the second quarter of fiscal year 2018. Net sales in the second quarter were impacted by:
The GES acquisition increased net sales by 2%.
Net sales increased 2% as a result of the adoption of new revenue recognition accounting rules.
Unfavorable foreign currency movements decreased net sales by 1% compared to the prior year second quarter.
The Romania facility improved its impact on consolidated operating income percent by 30 basis points compared to the prior year second quarter as its ramp-up progresses; however, GES unfavorably impacted consolidated operating income percent by 60 basis points, including 20 basis points resulting from the amortization of acquired intangibles.
Other Income (Expense), net includes interest expense of $1.1 million in the current year quarter compared to $0.1 million in the prior year quarter as a result of increased borrowings on the credit facilities, in large part related to the financing of the GES acquisition.



The following information was filed by Kimball Electronics, Inc. (KE) on Wednesday, February 6, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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