Kimball Electronics, Inc. (NASDAQ:KE) Q4 2022 Earnings Conference Call August 5, 2022 10:00 AM ET

Company Participants

Andy Regrut - VP, IR

Don Charron - Chairman & CEO

Jana Croom - CFO

Conference Call Participants

Anja Soderstrom - Sidoti

Jaeson Schmidt - Lake Street Capital Markets

Robert K. Shapiro - Singular Research

Hendi Susanto - Gabelli Funds

Operator

Good morning. And ladies and gentlemen, and welcome to the Kimball Electronics Fourth Quarter Fiscal 2022 Earnings Conference Call. My name is Darius, and I will be the facilitator for today’s call. All lines have been placed in a listening only mode to prevent any background noise. After the completion of the prepared remarks from Kimball Electronics leadership team, there will be a question-and-answer period. [Operator Instructions] Today’s call August 5, 2022 is being recorded. A replay of the call will be available on the Investor Relations page of the Kimball Electronics website.

At this time, I would now like to turn the call over to Andy Regrut, Vice President, Investor Relations. Mr. Regrut, you may begin.

Andy Regrut

Thank you, Darius, and good morning everyone. Welcome to our fourth quarter conference call. With me here today is Don Charron, our Chairman and CEO; and Jana Croom, Chief Financial Officer. We issued a press release yesterday afternoon with our results for the fourth quarter and full fiscal year ended June 30, 2022. 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, Don will start the call with a few opening comments, Jana will review the financial results for the quarter and guidance for fiscal 2023, and Don will complete our prepared remarks before taking your questions.

I’ll now turn the call over to Don.

Don Charron

Thanks, Andy. And good morning everyone. I’m very pleased with Q4 and the full fiscal year 2022 results. For the second consecutive quarter, net sales reached an all-time high for the company and operating income margin exceeded 5%. These results were in line with the guidance we provided in May and required highest levels of partnership across the value chain including our global organization; our customers; the OEMs; and our suppliers. In total, fiscal 2022 was very much the bifurcated year we expected with a strong second half driving annual revenue to record levels. The world continues to experience unprecedented events and circumstances and the lockdowns associated with China’s zero tolerance policy on COVID-19 have been a reminder of how unpredictable the current environment can be.