Methode Electronics, Inc. Reports First Quarter Fiscal Year 2007 Results.CHICAGO Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. -- Methode Electronics, Inc. (Nasdaq:METH) today announced operating results for the fiscal year 2007 first quarter ended July July: see month. 31, 2006. Methode reported first quarter fiscal year 2007 net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of $103.6 million and net income of $4.4 million, or $0.12 per share. This compares with net sales of $94.0 million and net income of $4.7 million, or $0.13 per share, in the first quarter of the 2006 fiscal year. Methode's fiscal 2007 first quarter sales increased ten percent over the prior year's quarter. This increase is primarily due to automotive switch sales in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and China, as well as sales of sensor A device that measures or detects a real-world condition, such as motion, heat or light and converts the condition into an analog or digital representation. An optical sensor detects the intensity or brightness of light, or the intensity of red, green and blue for color systems. pads for a passive occupant occupant n. 1) someone living in a residence or using premises, as a tenant or owner. 2) a person who takes possession of real property or a thing which has no known owner, intending to gain ownership. (See: occupancy) detection system. In addition, sales from
our Power Distribution segment increased due to improved domestic demand
and sales from the new Shanghai Shanghai (shăng`hī`, shäng`hī`), city (1994 est. pop. 12,980,000), in, but independent of, Jiangsu prov., E China, on the Huangpu (Whangpoo) River where it flows into the Chang (Yangtze) estuary. operation.
As a percentage of net sales, cost of products sold was 81.1 percent in the first quarter of fiscal 2007 compared to 80.1 percent in the first quarter of fiscal 2006. Increased raw material costs and production inefficiencies in our Scotland Scotland, political division of Great Britain (1991 pop. 4,957,000), 30,414 sq mi (78,772 sq km), comprising the northern portion of the island of Great Britain and many surrounding islands. and Shanghai operations accounted for the gross margin decline in the quarter. Selling and administrative expenses for the quarter were flat compared to the comparable quarter last year, both at 13.3 percent of net sales. For the first quarter, Methode's effective tax rate was 37.3 percent compared to 31.0 percent in the prior year's quarter. The effective rate increased primarily due to the establishment of a valuation allowance for potentially non-deductible stock-based compensation. Cash increased from fiscal 2006 year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. , primarily due to reduced accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying offset by increased inventory and lower accounts payable. The reduction in accounts receivable and accounts payable was the result of lower sequential quarterly sales. The increase in inventory was primarily a result of Methode's European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. automotive operations preparation for the anticipated annual August plant shut down period. Shanghai automotive inventory also increased, mostly in finished goods, as one of the larger General Motors programs reached expected production volumes. Donald Donald (Domnall, Domhnall, Dumhnuil, Dónall) is an anglicized version of a Scottish or Irish Gaelic personal name, containing the elements dumno "world" and val "rule", viz. "ruler of the world". Compare Dumnorix. W. Duda The Magyar duda—Hungarian duda—(also known as tömlösíp and börduda) is the traditional bagpipe of Hungary. It is an example of a group of bagpipes called Medio-Carparthian bagpipes. , President and Chief Executive Officer, said, "Despite the harsh U.S. automotive environment, we maintained our anticipated level of sales and contribution. We continue to monitor the automotive production levels, especially due to the significant cuts recently announced by Ford for the remainder of the calendar year. We are adjusting our full-year sales forecast Sales forecast A key input to a firm's financial planning process. External sales forecasts are based on historical experience, statistical analysis, and consideration of various macroeconomic factors. down, but are maintaining our full-year income guidance." Methode expects to achieve second quarter fiscal 2007 sales between $105.0 million and $108.0 million and earnings per share in the range of $0.09 to $0.11. For the full-year, fiscal 2007 sales are expected to be between $420.0 million and $435.0 million and earnings per share in the range of $0.40 to $0.48. The full-year earnings per share range includes the previously announced expected business reorganization charge of $0.06 to $0.08 for the 2007 fiscal year. As previously announced, the Company will conduct a conference call today led by its President and Chief Executive Officer, Donald W. Duda, and Chief Financial Officer, Douglas Douglas, city, Isle of Man Douglas, city (1991 pop. 19,950), capital of the Isle of Man, Great Britain. It is a popular resort, connected by rail to Ramsey and Port Erin, on the Irish Sea. Tourism is the chief industry. A. Koman, at 10:00 a.m. Central Time. Methode invites you to listen to the webcast of this call by visiting the Company's website at www.methode.com and entering the "Investor Relations Investor relations The process by which the corporation communicates with its investors. " page and then clicking on the "Webcast" icon. You may participate on the conference call by dialing 877-407-8031 for domestic and 201-689-8031 for international callers. For those who cannot listen to the live broadcast, a replay, as well as an MP3 download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. will be available shortly after the call. The call will be available for seven days and can be accessed by dialing 877-660-6853 for domestic and 201-612-7415 for international callers, both using the playback Playback could mean:
About Methode Electronics Methode Electronics, Inc., globally designs, manufactures, and markets component devices and subsystems worldwide for Original Equipment Manufacturers (OEMs). Methode's components are found in the primary end markets of the automotive, information processing information processing: see data processing. information processing Acquisition, recording, organization, retrieval, display, and dissemination of information. Today the term usually refers to computer-based operations. and networking equipment, voice and data communications data communications, application of telecommunications technology to the problem of transmitting data, especially to, from, or between computers. In popular usage, it is said that data communications make it possible for one computer to "talk" with another. systems, consumer electronics, aerospace vehicles, rail and other transportation industries and industrial equipment. Our products employ electrical, electronic and opto-electronic technologies, such as sensors
Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Certain statements in this press release dated September 7, 2006, containing information on Methode's first quarter period for fiscal 2007, and offering guidance for its second quarter and full year reporting periods for fiscal 2007, are forward-looking statements that are subject to certain risks and uncertainties. The Company's results will be subject to many of the same risks that apply to the automotive, computer and telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. industries, such as general economic conditions, interest rates, consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. patterns and technological change. Other factors, which may result in materially different results for future periods, include market growth; operating costs operating costs npl → gastos mpl operacionales ; currency exchange rates and devaluations; delays in development, production and marketing of new products; and other factors set forth from time to time in the Company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and other reports filed with the Securities and Exchange Commission. The forward-looking statements in this press release are subject to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. protection provided under the securities law. All information in this press release is as of September 7, 2006. Methode undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.
Methode Electronics, Inc.
Summary Statement of Income (Unaudited)
(In thousands, except per share data)
Three Months Ended
July 31,
2006 2005
--------- ---------
Net sales $103,571 $93,983
Other income 184 225
Cost of products sold 83,960 75,254
Selling and administrative expenses 13,752 12,537
Income from operations 6,043 6,417
Interest, net 819 500
Other income (expense), net (68) (95)
Income before income taxes and cumulative effect
of accounting change 6,794 6,822
Income taxes 2,535 2,115
Income before cumulative effect of accounting
change 4,259 4,707
Cumulative effect of accounting change 101 -
Net income 4,360 4,707
Basic and Diluted Earnings per Common Share:
Income before cumulative effect of accounting
change $0.12 $0.13
Net income 0.12 0.13
Average Number of Common Shares Outstanding:
Basic 36,334 36,229
Diluted 36,538 36,457
Note -- Certain amounts in fiscal 2006 have been
reclassified to conform to the
classification in fiscal 2007.
Methode Electronics, Inc.
Summary Balance Sheet
(In thousands)
July 31, April 30,
2006 2006
----------- -----------
(Unaudited)
Cash $ 92,094 $ 81,646
Accounts receivable -- net 60,762 74,223
Inventories 51,002 45,681
Other current assets 13,614 19,722
----------- -----------
Total Current Assets 217,472 221,272
Property, plant and equipment -- net 87,533 90,497
Goodwill -- net 28,893 28,893
Intangible assets -- net 16,485 17,540
Other assets 16,218 16,381
----------- -----------
Total Assets $ 366,601 $ 374,583
=========== ===========
Accounts payable $ 31,955 $ 41,581
Other current liabilities 30,354 32,622
----------- -----------
Total Current Liabilities 62,309 74,203
Other liabilities 8,364 8,671
Shareholders' equity 295,928 291,709
----------- -----------
Total Liabilities and Shareholders' Equity $ 366,601 $ 374,583
=========== ===========
Methode Electronics, Inc.
Summary Statement of Cash Flows (Unaudited)
(In thousands)
Three Months Ended
July 31,
2006 2005
-------- ---------
Operating Activities:
Net income $ 4,360 $ 4,707
Provision for depreciation 4,601 4,400
Amortization of intangibles 1,265 1,300
Amortization of stock awards and stock options 761 495
Other 5,484 (4,359)
-------- ---------
Net Cash Provided by Operating Activities 16,471 6,543
Investing Activities:
Purchases of property, plant and equipment (1,949) (5,718)
Proceeds from sale of building 800 1,712
Acquisitions of businesses (2,678) (5,038)
Acquisitions of technology licenses - (2,102)
Other (590) (585)
-------- ---------
Net Cash Used in Investing Activities: (4,417) (11,731)
Financing Activities:
Options exercised 141 550
Dividends (1,865) (1,868)
Repurchase of common stock (2) (664)
-------- ---------
Net Cash Used in Financing Activities (1,726) (1,982)
Effect of foreign exchange rate changes on cash 120 (2,393)
-------- ---------
Increase (Decrease) in Cash and Cash Equivalents 10,448 (9,563)
Cash and cash equivalents at beginning of period 81,646 87,142
-------- ---------
Cash and Cash Equivalents at End of Period $92,094 $ 77,579
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