Just added KTCC 3.60 -.79 on these earnings: Key Tronic Corporation Announces First Quarter Results
Tuesday November 1, 4:01 pm ET
Strong Year-over-Year Earnings Improvement
SPOKANE, Wash.--(BUSINESS WIRE)--Nov. 1, 2005--Key Tronic Corporation (Nasdaq:KTCC - News), a provider of electronic manufacturing services (EMS), today announced its results for the quarter ended October 1, 2005.
ADVERTISEMENT
For the first quarter of fiscal 2006, Key Tronic reported total revenue of $44.3 million, compared to $48.8 million for the first quarter of fiscal 2005. Net income for the first quarter of fiscal 2006 was $702,000 or $0.07 per diluted share, up 166% from $266,000 or $0.03 per share for the first quarter of fiscal 2005.
"We anticipated a decline in our revenue in the first quarter based upon forecasts from existing customers and new programs have not ramped up rapidly enough to offset the decline," said Jack Oehlke, President and Chief Executive Officer. "At the same time, our improved production efficiencies have resulted in solid margins and increased year-over-year operating income and earnings. We also strengthened our balance sheet by reducing current liabilities as a result of reducing accounts payable and paying off the remaining portion of the longstanding litigation settlement."
"In the second quarter, we continue to pursue new programs and stay focused on improving operating efficiencies, controlling costs and maintaining profitability. We remain a strong competitor for winning new EMS business and we are well-positioned to capitalize on the long-term opportunities ahead."
In the second quarter of fiscal 2006, the Company expects revenue in the range of $42 million to $46 million and earnings between $0.06 and $0.10 per share.
Key Tronic will host a conference call today to discuss its financial results at 2:00 p.m. Pacific (5:00 p.m. Eastern). A broadcast of the conference call will be available at www.keytronic.com under "Investor Relations" or by calling 800-218-0204 or +1 303-262-2130. A 48-hour replay will be available by calling 800-405-2236 or +1 303-590-3000 (Reservation No. 11040056). 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 2006. 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 accuracy of customers' forecasts; success of customers' programs; timing of new programs; success of new-product introductions; 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 OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
First Quarters Ended
October 1 September 27
2005 2004
------------- ------------
Net sales $ 44,250 $ 48,774
Cost of sales 40,398 45,226
------------- ------------
Gross profit on sales 3,852 3,548
Operating expenses:
Research, development and engineering 662 705
Selling 568 493
General and administrative 1,652 1,668
------------- ------------
2,882 2,866
Operating income 970 682
Interest expense 261 299
------------- ------------
Income before income taxes 709 383
Income tax provision 7 117
------------- ------------
Net income $ 702 $ 266
============= ============
Earnings per share:
Earnings per common share - basic $ 0.07 $ 0.03
Weighted average shares O/S - basic 9,696 9,677
Earnings per common share - diluted $ 0.07 $ 0.03
Weighted average shares O/S - diluted 10,140 9,914
KEY TRONIC CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
October 1 July 2
2005 2005
---------- -----------
ASSETS
Current Assets:
Cash and cash equivalents $ 1,865 $ 1,463
Trade receivables - net 18,925 24,191
Inventories 26,808 29,712
Other 3,179 3,482
---------- -----------
Total current assets 50,777 58,848
Property, plant and equipment, net 10,452 10,011
Other Assets:
Restricted cash 2,073 1,158
Real estate 1,693 1,693
Other - net 762 426
Goodwill 765 765
---------- -----------
Total other assets 5,293 4,042
Total Assets $ 66,522 $ 72,901
========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Current portion of long term obligations $ 710 $ 735
Accounts payable 18,942 25,475
Accrued compensation and vacation 3,360 5,241
Litigation settlement - 812
Other 2,257 3,579
---------- -----------
Total current liabilities 25,269 35,842
Long-Term Liabilities:
Revolving loan 10,920 7,412
Other 1,952 2,008
---------- -----------
Total long-term liabilities 12,872 9,420
Shareholders' Equity:
Common stock, no par value, authorized
25,000 shares; issued and outstanding
9,703 and 9,694 shares 38,466 38,426
Retained deficit (10,085) (10,787)
---------- -----------
Total shareholders' equity 28,381 27,639
---------- -----------
Total Liabilities and Shareholders' Equity $ 66,522 $ 72,901
========== ===========
--------------------------------------------------------------------------------
Contact:
Key Tronic Corporation
Ron Klawitter, 509-927-5295
Chief Financial Officer
or
StreetConnect
Michael Newman, 206-729-3625
Investor Relations
--------------------------------------------------------------------------------
Source: Key Tronic Corporation
Market Data 
Markets 
AI
