Kimball Electronics, Inc. (NASDAQ:KE) Q3 2023 Earnings Conference Call May 5, 2023 10:00 AM ET

Company Participants

Andy Regrut - Vice President, Investor Relations

Ric Phillips - Chief Executive Officer

Jana Croom - Chief Financial Officer

Conference Call Participants

Jaeson Schmidt - Lake Street Capital

Hendi Susanto - Gabelli Funds

Mac Furst - Singular Research

Operator

Good morning, ladies and gentlemen and welcome to the Kimball Electronics Third Quarter Fiscal 2023 Earnings Conference Call. My name is Dacey and I’ll be facilitating your call today. [Operator Instructions] Today’s call, May 5, 2023, is being recorded and a replay of the call will be available on the Investor Relations page of the Kimball Electronics website.

At this time, I would like to turn the call over to your host, Andy Regrut, Vice President of Investor Relations, to begin. So Mr. Regrut, please go ahead.

Andy Regrut

Thank you and good morning, everyone. Welcome to our third quarter conference call. With me here today is Ric Phillips, our Chief Executive Officer; and Jana Croom, Chief Financial Officer. We issued a press release yesterday afternoon with our results for the third quarter of fiscal 2023. To accompany today’s call, a presentation has been posted to the Investor Relations page on our company website.

Before we get started, I’d like to remind you that we will be making forward-looking statements that involve risk and uncertainty and are subject to our Safe Harbor provisions as stated in our press release and SEC filings, and that actual results can differ materially from the forward-looking statements. All commentary today is focused on adjusted non-GAAP results. Reconciliations of GAAP to non-GAAP amounts are available in our press release.

This morning Ric will start the call with a few opening comments, Jana will review the financial results for the quarter and guidance for fiscal 2023, and Ric will complete our prepared remarks before taking your questions.

I’ll now turn the call over to Ric.

Ric Phillips

Thanks Andy and good morning everyone. I am very pleased with my first quarter as CEO of Kimball Electronics and with the opportunity to share strong results for Q3. The last 90 days have been filled with team meetings, customer introductions, facility visits and investor activities. I can assure you after a fast-paced onboarding that I am even more excited about the future for our company. We’ve been on a path of unprecedented growth and for the fifth consecutive quarter, revenue reached an all-time record high. Throughout this journey, operating margin has improved as we ramp up new and existing programs and leverage our facility expansions in Thailand and Mexico. We are forecasting a solid finish in the fourth quarter and are updating our outlook for the fiscal year, with sales expected at the high end and adjusted operating margin in the mid to low end of our guidance range.