KE - Earnings call transcript Q3 2022 | Kimball Electronics, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, ladies and gentlemen, and welcome to the Kimball Electronics Third Quarter Fiscal Earnings Conference Call. My name is Danielle, 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 the Kimball Electronics leadership team, there will be a question-and-answer period. [Operator Instructions] Today's call May 6, 2022 is being recorded. call the available Kimball the Relations the of of page Electronics replay will on be Investor A website. Relations. Regrut, At like this President, Andy to now Investor Vice turn the time, call over I would to Mr. Regrut, please you begin. may

Andy Regrut

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

of are Don guidance prepared morning, questions. non-GAAP the opening before get as financial filings and and be from All our for Jana call XXXX, subject the press fiscal now will I'll and we in amounts our the that a are comments, with results available the SEC I'd statements stated to you release our statements. will to is and and remind we non-GAAP making start focused harbor turn This safe review differ Don. Don quarter release. in uncertainty will Before the your press complete over for to and will can Reconciliations materially results. GAAP forward-looking our on remarks today adjusted provisions few like that started, that to forward-looking involve taking results actual commentary risk call

Don Charron

higher backlog ideally a net higher underway, points at open Diluted a manufacturing of half and year-over-year than was to XX%, margin first Andy. better basis orders of our with incredibly EPS high maintain capacity Sales increased with positioned our XX strong by facilities we ago. the Good the record running the at results operating very are in more utilization and QX. morning of exceeded significantly sales, fiscal expansions pleased X.X% than Thanks, in XX% all-time levels, and year year than was which I'm XXXX from everyone. momentum of positioned this year, fiscal managed impressed in the were a our compounded and performance well the devastation our shortages. strong to year given we be this issues introductions, bifurcated are continue pace I the Ukraine. into we've chain product we beyond. QX, strength carry through in team, and in new a to expect stemming strength The the funnel with in and and global fourth the continue extremely pandemic how supply of slate solid the challenges and quarter. Further, to component by however, quarter

Poland and have facilities associates Romania. We located and U.S. in Ukrainian in nearby and operations, our European

are and Our number by health one well. and involved support individuals their priority families efforts our Many affected actively of of supporting conflict. these the and made refugee safety in company our has as has been donations associates, the directly monetary

commitments. Poznan, thoughts Our to to this and early remains And kilometers customer there In and taken outside schedule. traveled located team and facility thousand both March, are our Electronics turn with also in tragic team inside which upbeat. business announced safeguard hearts employ of fiscal We've a XXX the and in appropriate all continue roughly to impacted of the on well, is is things the for our the expansion considered. by the and measures operating business and facility. targeted approximately tour completion XXXX. is report to with expansion positive Western year meet events. family to all We associates an pleased morale Berlin, our I from Poland, Kimball in fulfill recently The people, I'm

to cause Longer term incremental monitor ample mining stress gas for is platinum conflict are catalytic aluminum could Relative prices natural is vehicle on raw securing car information, and Nickel industry. for large further auto supply platinum metals converters. our copper estimated output. and to other manufacturing, commodities, have they Russia and exporter wiring. We commodities vehicle resources key are and of global electric and disrupt a concerns aluminum. including over on and chains facilities. and continue that evaluate the including nickel needed Palladium supplier used in materials it's rise. of these a framing for batteries the major palladium, and for are Recently and been

been harnesses are by materials, in components critical a the to cut many and for the production. XXXX. role adversely as affect this have being an with global the car semiconductor of from for by earlier supplier in also and combined and producing conflict. production factories Not multiple Volkswagen's some altogether phase auto There making and that the and Europe is However, or of has neon shortages year noble increase other the This of cars speculation wiring Russia announcement Ukraine manageable. will characterized these price surprisingly shutdown is sources important for movement the plays that industry gases slowed in estimates auto supported Ukraine impact parts for Germany. Eastern manufacturing

could steps the an to opportunity create Chinese for demand. automakers fill these believe Some

the the the However, and or in given purchase material. our One will only of of not conflict the related was additional China's keep risk impact impact are to ongoing the fluidity quarter materials in on mind Ukraine operations tolerance directly we COVID. time Russia any monitoring policy of is that zero the do financial we Please tell. situation not from

of balance China, major temporary disruptions response supply both cities occur several rise of the in cities by due to for outlook these for out operating continue sales guidance it temporary over XXXX, rectify range. somewhat we know, net our demand impacts output We've semiconductors the to come you and a across As delays. fiscal time. while the anticipate to of a shorter customers the coming cases. COVID for global China We chain be This margin term offset our in shutdowns income lockdowns record uncertainty reiterating reflect of recently will may end from that manufacturing nature of year to number be to shutdowns disruptions there Taiwanese the in as experienced COVID our in And concern in If the market, updated the and demand. we expect developments. lower the are at the is to any

in It's made of the vehicles. parts we in pandemic the also conditions Turning The fiscal throughout back for million, QX. to the sales a inventory market the to second workforce company The automotive became net were this allowed last from increase vertical all vehicles. certain ramp a an and automotive the represents year to strong QX programs programs, strategic shortages in available, QX electric maintain quarter, the and fully quarter. to respond. higher us the in when up first quite trained quarter resulted increase $XXX highly half exceeding and year-over-year, worldwide we're sales turnaround quickly XX% four to million all-time both more third million, and year builds component markets the including XX% from $XX compared in improved with of to than response and sales our quarter drove and a for demand This a production were the our increase supporting But total as sales. vertical investments of $XXX strength and occurred XX% high decline ready

our analysis completed our vertical a also we quarter, opportunities and within multi-year positioning of strategic market. growth the plan comprehensive with each During

trucks represent confirmed an to is the and systems. increasing work added Our tailwind to company being the as operating at in industry content auto and for cars that megatrends continue with a our technologies rate advanced meaningful electronic expanded

this growth of gas Once affordability safety consumption, new quarter customer quarter the represented $XXX adoption and which continue the competencies additional to device quarter million, quarter to of to the up work the of products on for could the healthcare was third a core from delivery importance to vertical to our industry, the again, plan expansion Similar medical and production last market very our our QX totaling increasing decreasing resulting end in as new population, our increase. a demand in pandemic systems. stringent of vehicles, sales. the of were is the and from total delays. align see launch validated sales vertical globally. with we strategic in in X% increase the a the growth million; and of term water, see In are was XX% medical driving of and and compared the where electricity medical long-term and control expertise chassis automotive of drove the climate vertical compared increase for we healthcare vehicles coming very programs, areas well manufacturing conservation by megatrends of connected sales is and to and total Longer $XX.X representing last industry Net sales result public the the ramp market normalize automotive, control higher our increase in up And some after pandemic. requirements to suggests finally, the additions continues The the access autonomous online addition, million, Industrial rapid opportunities XX% driven of XX% increasing QX industry. recover year, connectivity and electric with $XX company awareness aging of this drug and of XX% as and continuing sizes with upside increase year. this related for good world's This sales. were opportunities in including

QX in guidance I'll year. call our over discuss to a and and an in excellent the to balance the turn quarter Jana detail of more So the now review summary, Jana? for outlook. promising

Jana Croom

you and morning good Thank everyone.

third last just million, in for up the our compared $XXX record detailed XX% net to and total company Don QX were sales As a year. quarter

increase same that rates last by in QX The an XX of and lower the the gains and the with improvement the depreciation driven sales. exchange rate quarter. year on occur X% margin had Foreign basis on impact sales over gross levels was point leverage in of higher X.X% unfavorable period

we percentage were the of higher depreciation Adjusted XX in administrative basis quarter administrative increase year. quarter. the million was costs point with on selling however, in income to stock-based components last and As compared production equipment material expense net the costs changed year, expenses and third sales. SMP part $XX.X $XX.X sales, X.X% selling impact X.X%, adjusted QX shortages. Adjusted for as partially QX by or salary benefits offset and and measured a a million last to useful compared freight operating were and million compensation. when improvement resulting When reminder, the last of a higher estimated were lives from related the $XX.X increased third from payroll occurred quarter These the

$XX.X was improvement QX net million or was first year last of of to of $X.X significant was compared the when versus of expense XXXX. Don operating this a to the third fiscal and quarter half and income in highlighted, expense fiscal income million of year Other X.X% $X.X in As sales. expense adjusted the million

resulting higher year the in XX% change last year interest XXXX measurement third per both rate tax With the or diluted expense Net in XXXX in fiscal of year-over-year. to share was the compared or acquisition. of from approximately after and million QX this $X.XX third million The quarter income fiscal increase fiscal per effective representing and income a $X.X XXXX diluted quarters. period on was $XX.X the GES share, XX% last net $.XX year adjustments adjusted

last the $XXX fiscal purchases are to needed Inventory days in XXXX. material and today of trend last driven $XXX was we operating XX that to activities and were by accounts in receivable for to increase by XXXX the customer received. fill XX, is flow up March orders year were million. cash parts in to conversion higher in million can year. compared when days, the and has cash are so the in Cash million QX XX impacted days from quarter and third primarily quarter available $XX.X turning in sheet. balance equivalent shortages Cash quarter. increase This million This due was by QX sales that the up higher driven continued an component used at $XX.X Now

normalize work generation the in situation February. Mexico, our awards, down system orders. quarter backlog the as were We new of next support in and million, Reynosa, expenditures of in levels expect part expansions $XX.X as third announced facility, inventory the business we largely Capital such breaking that we the improves. open And to in shortage

fiscal of We the year. in the end million million $XX compared our CapEx credit XX of March were million the million and $XX range continue to $XXX QX. total on to million $XX.X at at March XX, in expect to XXXX Borrowings at $XXX facility

cash XXXX. and plus totaled Our $XX as represented XX, our credit the equivalents, term liquidity unused available, cash short at of facilities million amount March

of October, repurchase third shares of million our During $XX.XX. X.X share $X.X price share by owners invested million of board total common an at repurchase has under average to we authorized Since our quarter, to returned purchasing program, $XX.X XXX,XXX shares the XXXX, a been million stock.

repurchase have remaining the on program. million We $XX.X

forward, in investing support first our a be and capital the capital in to and Looking expansions allocation new programs. organic will half by This expenditures and is priorities continue facility foremost. our year to three evidenced last growth

expanded amended credit returning these capacities amended a to with strong balance a banking working have facility, we X, historically have our $XXX partners. expansions, product facility with credit credit to of revolving strategic goals. acquisitions capital market. to five-year introductions million strategic our cash we owners today's flexibility find needs sheet, support and and we primary repurchases. difficult finally, to meet the from fairness, $XXX are Second, to priorities. to appropriately long-term share share and have million On the support opportunistic gives us other recently This our these that CapEx while increasing facilities May have been our generated valued. cash And In in lot also And new

fiscal As a sales increase range year be we updating of billion billion, Don year-over-year. X% X% to for are $X.XXX to noted, with the guidance our in XXXX $X.XXX estimated net

for $X.X a previous revenue of As reminder, guidance our approximately was billion.

lower sales, quarter and full our capital on reiterating CapEx range turn $XX our With income at outlook to the is totaling which expected net now Based operating of million Operating to million. over guidance QX $XX back be Don. of X.XX% top $XXX are a to third the in to of I’ll million $XX income in results $XX end albeit expenditures, million the million. the for and X.XX% suggests of to We the sales through year million. of in margin, line approximately range $XXX X.X% margin X% to that to call of this

Don Charron

disruptions abnormally as company China inflation we and hope can all momentum Jana. very fiscal Thanks, and continuing especially shortages, a about crisis the levels XXXX, expect year the happy I lockdowns of fiscal positioned. in results into XXXX. subsiding a that the both Ukraine, finish to chain QX component and COVID-XX-related in to carrying think reaching is the with year supply the the strong And the high how you settlement, abate, of are slowing. we sense recent were excellent we with

new million, driven Our open billion order high annual backlog milestone. record shortages, totals $XXX component our well look new by facility a up and as we XX% the as sales growth our in business toward wins. with customers’ This $X as business aligns year-over-year expansions

the square $X one. achieve identified sales And meaningful. to being plan strategic of facilities. approximately manufacturing we're per additional capacity Our this goal, focus critical a key with is capacity We generate million areas of adding in XXXX our volume feet

the produced fiscal much year, vertical with XXXX on first our the year the facility heavy is to million, in a with Thailand and plan As with opened a exported years in of excess XXXX of focus revenue the identified potential one growth strategic in in markets $XXX medical, of in significant product was example, our an Thailand come. in finished

the vertical second Poland, its facility I'm confident completion quite also strategic XXX never took a aligns years the and facility I with very to And to more did capitalize of in And annual to time. Our billion a and summer. Mexico the XXXX, existing focus markets, sales. company. last million opportunities. XX achieved well about to doubled frankly It has road will our our plan. have bullish that Thailand which the fiscal year recently automotive finally, our by on the of sales be on be in other more in as adding revenue expansion footage year, $X year million early square expansion approximately billion in than capacity fiscal we XX% with of to fiscal our footprint doubled $X The sales looked for been will is a this those with our annual scheduled hand growth in growth completed its production have sites. heavy of in is billion scheduled company $XXX fraction XXXX. reach on industrial This

global behind. brings and Sandy April to upon I'd close the years team, retirement. newest by Smith Officer. Finally, XX will Sandy best as leadership welcome Wells, build our Electronics IT like over of the experience wish the left moment organization in the who company, taking joined Kimball Isabelle in world-class a We family Information that to her member of Isabel the our Chief

to any pedigree We executive open an would on our have to thrilled questions. do lines and questions Operator, have queue? now we caliber in of with for I analysts the like are Isabelle's the teams.

Operator

Certainly. [Operator Sidoti. from proceed. Please Instructions] Anja And comes the first question Soderstrom of

Anja Soderstrom

Thank on Hi. questions and for environment. you another great taking quarter, challenging despite congratulations that my

in did call of First, there like out to it headwinds? procuring ask materials. which broad-based was to I you see most a Or segment Is challenge anything wanted there?

Don Charron

broad-based. it’s Anja,

quarter to And All today, million verticals improvement, really period. pretty similar in with the sales all you shortages at than had across that the our it’s more of resulted deal as of happy $XX quarterly we can to when component additional through we rate quarter. our have get report from last were see this look verticals. And quarter material of this in

continue backlog output day last up by we’re caused shortages obviously every it. improved order it’s help make So still to But that from us was our to quarter. that and improving and battling certainly improve

Anja Soderstrom

see Okay. slightly, improving. but you it improving But it’s

Don Charron

we to compared quarters. the We same quarter sales we team in I increase the had this to I had think same really both quarter’s capability Yes. getting Yes. mean, place, that last because sales – both able have product, quarter-over-quarter came in it to increase get is solely quarters. to in achieve better. that build more we more material were The so output

Anja Soderstrom

Okay. having set you you And this up to kind well kind pretty might there despite of helped these get anything can call out how you – headwinds. that there Is margins? of

Don Charron

in the sales. two workers Well, keep didn’t sales, the generate to worked the highly We quarters, previous to – for the sure, team retain we didn’t place have have as reported the around had our skilled to our in we we parts world. hard

So we last in the quarters. reported under really of absorption both

a because in us under increase up margin So the the that to didn’t have we great helped improvement absorption certainly seeing in utilization the move significantly contributed deal with and output quarter.

Anja Soderstrom

during for that then, happen? flagging and remarks, And it the there anticipate started currently? you is you due more that there. is Okay. like dependent your to headwinds are within you’re market prepared the how Has market the seems risk some war in auto from of on supply something auto or to seeing What Ukraine

Don Charron

Yes.

not As material. we the and really was the stated, quarter reporting we for today we’re negligible, finished just that impact

So, close keeping it. obviously a on we’re very eye

we the especially We’re QX, are of know short-term guidance was uncertainty what degree to watching for really very production in Europe schedules. But terms the updated contemplated there not their in that Ukraine-Russia saying of With show Europe. makers for full carefully QX. global the a it production crisis in economy, Yes, what and eventually economy our but impacts schedules, about year fourth impactful the how impact the our car there’s quarter. we the could that’ll be in because up in

we degree of contemplated now QX uncertainty least at in the that impact QX reflected There’s for think we’ve carefully. a impact But that’s in that and the we’ve watching provided. guidance there. We’re little

Anja Soderstrom

due headwinds then how new your programs? much And quantify of versus supply and also headwinds can backlog other you is to Okay.

Don Charron

had of $X.X backlog. the would And any original our order the in on billion. amount we as of at look with have has full year where we we provided comfortably date didn’t to We shortages That’s think open our production, in be to constrained if Yes. exact results, we fiscal look we difficult interesting year a But you that that are we’ve we $X.X inventory. within of growth our this analyze that. the parts billion accuracy give at our year we guidance that it’s degree to growth during

new in a is to strategy they that And also, add and of So how business we But you customers backlog revenue. to least it general amount orders as we’re ramp we’ve gives that know, billion of and backlog about that at path awards. that our idea wanted. $X significant fill talked couldn’t you up, those the in there’s that’s a order growth there’s nicely increase fact the last is programs and now about due to due talking had will much yes, to call what annual our shortages as

Anja Soderstrom

Jana, the around Thank Okay. your capital dividend? priorities. mentioned you are you. What thoughts And allocation your

Jana Croom

terms that we’ll take along do that allocation part normal do you So you big share just would always we management as company a dividend of we as Board. in is as that something priorities. look as don’t evaluate a work something at capital But back team, a and once you with of purchase the It’s the decision one with it. that’s know,

allocation for so on clearly at long organic we’ve the we’re very than seen got, around capital a growth CapEx levels lots higher the in conversation But evaluating. historically has company time. of Kimball. Focus that And is

Anja Soderstrom

me. Okay. Thank all you. That’s for

Don Charron

of Thanks, Anja. a good day. rest Have the

Anja Soderstrom

Thank you. You too.

Operator

Funds. question comes Hendi of Gabelli Thank Susanto The from you. next

Hendi Susanto

and Jana Don, morning, Good Andy.

Jana Croom

morning, Good Hendi.

Hendi Susanto

$XXX memory of And of stick a furthermore, would terms facility of capacity hockey in Mexico or in capacity million. figure? refresh up incremental Does doubling it step facility. the facilities increase and then production assume mean potentially a let's our $XXX steady the from; we Don, Thailand million should and those increase, the doubling to combined revenues you expansion, sales the say

Don Charron

Yes.

get case Mexico, Thailand, When our and expansion the be underway. big case. in in expecting capital coming we the business of first the roughly words, of equate So how about our to those locations, In out it’s the the facilities. those you we should sales, next certainly to other size when to the filling business question, expansions with or additional we and business. to contemplated put evaluated business it That out we’ve that roughly we operations expansions output determine the Poland’s have of to allocate existing those in together course that Yes, we’re and it. those the would gotten the of wanted mentioned expansions capacity same to answer today. analysis up That’s

in And three five next, the we’d capacity level doubling doubling approaching Mexico Poland, expansions. to say, it’s in so, and not we let’s those yes, to the to years, big Mexico. limits that mean about as are want expect Thailand, as Thailand we utilization higher would be – have the or In of an expansion

We’re square adding capital used in roughly kind But that would XX% true. there. footprint case fill same sales business deploy with that the a to to of our manufacturing hold The per to we footage commensurate expansion ratio. was business

Hendi Susanto

I in then and can about EV assume then like versus models? we talk you ex-EV should or Don, traditional combustion to how EV exposure let’s say engine margin gross see. And

Don Charron

Yes. I I’ll question maybe don’t start know if it I perfectly work understood Hendi. your backwards. But well,

how our to internal by playbook engines today economy margin of different profile market have our makes the the is after? and intensive very content are car we is a maker economic electric and vehicles awarded it’s the around What the quoting? say those combustion to really volume What in that Because model current the work go scale being significant in really really hybrid our of I we’re going terms how is we that build and What combustion is fast a volume is – what customers is how part the that assumptions? no is we automotive the is of business. that different? would run What volume? the just that difference, how very proposals we’re accurate – up economies they What similar on of, there or for volumes, versus they ramp terms In underlying discussion. are. their there’s considering

little can And vehicle has a right makers difficult. imagine you with so, getting bit the volume electric car been as

it were build and with able the say ahead volumes Shanghai. could to to what of of those maybe is vehicles round to they’re forecast You do to do especially by and what and the Tesla sell latest in they far away sort able pack

to whole quoting facilities. when that start those and making we're when that – So for our volume really process up we sure those that start the our – putting we in whole proposals and consider we that plan customers programs together our there in volume, de-risk and want business that in execution in are question differences to we our when manage to behind

answered or question Getting So is Not engine hybrid and really our success electric in whether still the business. I internal or I vehicle your volume two. a hope the a key there. of the difference an margin same combustion is an profile key it's right really the to in

Hendi Susanto

see. I going think I I model rate your to – of terms may Jana then how And tax forward? in the advice

Jana Croom

to Yes. I XX%. in assume in would XX% in rate our tax the all mid-XXs would somewhere be fair

Hendi Susanto

Okay. That's helpful. Yes.

much. you so Okay. Thank

Don Charron

Thanks Hendi.

Jana Croom

Hendi. you, Thank

Operator

Morales & Mike Thank Company. next comes Walthausen The from of question you.

Jana Croom

morning. Hey Mike. Good

Mike Morales

morning, and on good work question, Don, taking Jana for navigating and a Hey good environment. Thanks my again Andy. challenging

to as chain small disruptions any amount as the is on pipeline to some trying supply touching just backlog included just facility there's Mexico maybe really. or be the of housekeeping contracts parse can much between new new question eye really first folks, that, on So popping versus Is the in business produced or we growth auto here?

Don Charron

for awards We footprint soon and expansions sure. our automotive that to in including be in se The being placed Mexico, talked about Yes, in are do we Yes. don't per new the automotive Poland. being into we those at expansions plan that new more are, yes Thailand, are have. that large for placed it's a awards we But those there. of focus volumes business but medical the in

program the open up up order and Some mentioned in that's backlog. our Probably cases far next so there, in starting only, awarded Jana, biggest starting a has – production. the were we maybe that amount ended small generation increase breaking

during significant award year. further plan the with that our when in Now back to on have added be soft awards. It's There are been yes, And we're allowed out open them fiscal And give so, log yet, others allocations of out – plant's that to others. footprint this new those several be are execute we're more a the difficult be one able but expansions to the that our on least work orders. would the working to those couple there to a years has built not to a we really customer order of ours us customers. us at as making of those

Mike Morales

we've Makes guys starting of cost have managing here? Long you're specifically at shed or magnitude how contract on how How's freight freight negotiation Beach thinking seen gears on that with that bit, switching you just and sense. thinking a into all little you're Maybe planning we color can some inflation about touching and just factoring your soon. the then

Don Charron

that but Mike, getting of can't the our I'll a And mean, selling fortunate part one while say business we to price the negotiation the caught be just customers that they're keep and increase We're work very customers. much that in price, about we with increases pretty to kinds understand caught that. transparent cost increase negotiation with strategy pass of is a had, be but there's customers our if our our how to we're frankly, Yes. whatever through And is. with we're the simple. not of that for I those proactive have we're being they happy about understand. passed and through, in that middle, I would squeeze, that about to

pass the neutralize have price. simple we And a we margin through And to selling to again, due ourselves impact it have to not freight is look to to just increases. so the strategy we and

Mike Morales

the deck as the facility commentary other be the on the color it's think billion, look of that there. and kind the for reasonably I that expansions A but are strength in with on guys back slide capital helpful you horizon. few you Great. there was and achieved happening are table here? and fiscal From just about deck Don, was And was here the on $X got back my you it in in you notes, bit the a like could $X projects billion we it in it just $X talked about, early, it know you years over year. later looking billion with beyond to of pipeline, the the revenue but a XXXX sounds this starting about what's one, Thanks.

Don Charron

maybe billion. to a have – look at have the next though, can what after all I the that of achieve years, footprint towards wouldn't we at coincides we're our plan know fiscal year And sort result would a – XXXX the of year there we're we're so look and comes to we to to that as have that our cycle some, the look few expanding, out on we it, we going that of fell But and case. as be expansion out and we as if well there XXXX expansions, a today, perfectly Mike. We mentioned the working we are that looking for of of we we're that XXXX. see mean, three Especially growth our close there out sales now so that XXXX, as for maybe facilities $X planning would on three I are mean, figure and Yes. the our we're at and year, yes, plan, growth with fiscal next XXXX, horizon – this say – facility

those approaching operate. good The to look now footprint as is that as so expansion we popular. Obviously full factoring utilization popular. part have out three-year other been we also the facilities are needs That has So of expand we mode. room we're well. our kinds and in very in news But footprint our still are have and our capacity we of at we sold very is where as we plan

one of within ad in strategically this where the the to kind we're another optimize of would like country footprint to we is so with new not and with maximize and planning operating horizon. And locations necessarily just go do speaking things that the

plan So closely team leadership of footprint operate in. on we're we're the expansion as working currently we

Jana Croom

One growth, that thing cetera. that putting add have which et color discussions, we that plan, in together strategic that currently hope I'll give organic Analyst are that Day we to to working late on an will capital fall, more the on allocation we're is

can thinking a model five the year. on help you out about we next light than what So the XX We we're next and further years three, can company. shed for fiscal as

Mike Morales

can there opportunities to call that getting as seeing you new we to great to well, here goal Touching the remarks, side on days. read prepared much term. business for normalize these could seems are revenue like speak longer the and sounds you on normal Day. as in a this anything mind lastly the you're [indiscernible] Analyst you if Don, Jana, as just the the of mind, but then an my as XX% like that me. side starting topic it development in it, medical keep of Great, it mentioned of we for trends in

Don Charron

Yes.

around land that contract working rethinking of cetera. their and think I manufacturing, to lot are existing et our a a supply strategies both that of lot customers there's really seriously customers manufacturing, chain,

Medical, our manufacturing in full see with opportunities And it, them good XX% as who place sort news with total greater existing like disclose advantage look us know, of and I as of contract you to for those we take customers growth our it's a we solid really space. of we sales. growth think the have as Philips plans customers all in customer we company for

opportunities opportunities So like people say product we're divisions, really and so different for opportunities exciting, in existing growth number a pandemic sort – significant are and us want I is how their of more lot the us embracing growth categories customers. of more anything about rethink us. have And partners, outsourcing geographically with the that. for to and new existing making and customers that's more customers model caused which presenting other with companies but good we've excited all It's – all and again of anything good than really Philips also leading MedTech manufacturing and we're they would medical more. their different multiple decisions if with it to And we about a and these that us got than strategies to locate caused

Mike Morales

Jenna, Andy, it. Don, speak appreciate soon. will again and I I Thanks Great.

Don Charron

Mike. Hey

Operator

no further Thank questions you. time. this Instructions] at registered [Operator currently There are

Don Charron

appreciate brings today's Thank forward interest near look Take call. you We of your in end us the care. That and to future. the everyone. to you speaking with

Operator

for conference That your concludes you Thank call. the participation.

You may disconnect. now

Kimball Electronics (KE) 6 May 222022 Q3 Earnings call transcript