Q4 2024 Key Tronic Corp Earnings Call Transcript
Key Points
- Key Tronic Corp (KTCC) reported a significant reduction in inventory by approximately $29 million or 21% from the same time a year ago, reflecting increased component availability and efforts to drive inventory reductions.
- The company improved its gross margin to 9% in Q4 FY2024, up from 8.5% in the same period of FY2023, primarily due to workforce reductions in Mexico and the weakening of the Mexican peso.
- Key Tronic Corp (KTCC) secured new business wins, including a $15 million program in Arkansas and another $15 million metals fabrication program in Mexico, indicating strong potential for future revenue growth.
- The company expects a rebound in revenue for Q1 FY2025, forecasting a range of $140 million to $150 million, driven by legacy customers and new programs ramping up.
- Key Tronic Corp (KTCC) has a strong pipeline of potential new business, with opportunities in various sectors such as security equipment, sporting goods, environmental solutions, and medical devices, highlighting its diversified growth prospects.
- Total revenue for Q4 FY2024 was $126.7 million, a decrease from $162.6 million in the same period of FY2023, indicating a significant year-over-year decline.
- The company experienced a cybersecurity incident that disrupted operations and led to approximately $15 million in unfulfilled revenue during Q4 FY2024, which will take time to recover.
- Net income was breakeven for Q4 FY2024, compared to $1.1 million or $0.1 per share in the same period of FY2023, reflecting a decline in profitability.
- For the full year of FY2024, Key Tronic Corp (KTCC) reported a net loss of approximately $800,000 or $0.07 per share, compared to net income of $5.2 million or $0.47 per share for FY2023.
- The company incurred additional cybersecurity-related expenses of approximately $2.3 million during Q4 FY2024, impacting its overall financial performance.
Please standby. Good day and welcome to the fourth-quarter Fiscal 2024 Key Tronic Corporation conference call.(Operator instructions) At this time, I would like to turn the call over to Tony Voorhees. Please go ahead, sir.
Good afternoon, everyone. I am Tony Voorhees, Chief Financial Officer of Key Tronic. I would like to thank everyone for joining us today on our investor conference call. Joining me here in our Spokane Valley Headquarters is Brett Larson, our President and Chief Executive Officer. As always, I would like to remind you that during the course of this call, we might make projections or other forward-looking statements regarding future events or the company's future financial performance.
Please remember that such statements are only predictions actual events or results may differ materially. For more information. You may review the risk factors outlined in the documents the company has filed with the SEC, specifically our
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