JASPER, IN – Kimball Electronics, Inc. (NASDAQ:KE), a global electronic manufacturing services provider, announced an extension of its stock repurchase program, authorizing an additional $20 million in buybacks. This move, approved by the Board of Directors on Monday, increases the total repurchase authorization to $120 million.
The extended repurchase plan, which began in 2015 with an initial authorization of $20 million, has been expanded several times, with the most recent increase occurring on November 15, 2024. The program does not have an expiration date but may be suspended or discontinued at any time.
In addition to the repurchase plan, the company held its Annual Meeting of Share Owners on November 15, where shareholders voted on several key proposals. Shareholders reelected two Class I director nominees, Gregory J. Lampert and Colleen C. Repplier, with 97% and 96% of the votes cast in favor, respectively. Deloitte & Touche, LLP was ratified as the company's independent auditor for fiscal year 2025 with 96% approval. Executive compensation received a 97% approval rate, and a one-year frequency for future advisory votes on executive pay was preferred by shareholders.
The Board also maintained its Committee and Chairperson appointments following the annual meeting, with Robert J. Phillippy continuing as Chairperson of the Board. The company's Board of Directors revised its Share Ownership Guidelines, adjusting the calculation of shares held by directors and executives and shortening the time frame for executives to meet their share ownership requirements.
This information is based on a press release statement from Kimball Electronics, Inc. detailing the events and decisions made during the recent annual meeting and subsequent Board meeting, as well as the amendments to the company's stock repurchase program.
In other recent news, Kimball Electronics reported a 15% year-over-year decrease in net sales, totaling $374 million, in the first quarter of fiscal year 2025. The company faced declines across all business sectors, including automotive, medical, and industrial. Despite these setbacks, Kimball Electronics confirmed its fiscal 2025 guidance, indicating strategies for increased efficiency and a focus on core growth areas. As part of its restructuring plan, the company will close its Tampa manufacturing facility by the end of fiscal 2025, shifting production to Mexico and Jasper. The adjusted net income for the quarter was $5.5 million, with earnings of $0.22 per diluted share. Looking forward, Kimball Electronics projects net sales between $1.44 billion and $1.54 billion for fiscal 2025. These recent developments suggest a challenging period for the company, but with decisive action and strategic planning, Kimball Electronics aims to improve its financial performance.
InvestingPro Insights
Kimball Electronics' recent decision to extend its stock repurchase program aligns with InvestingPro data showing a high shareholder yield. This move could potentially boost investor confidence and support the stock price, which is currently trading at 68.59% of its 52-week high.
InvestingPro Tips highlight that KE is trading at a low revenue valuation multiple, which could make the stock repurchase program particularly attractive at current levels. Additionally, the company's liquid assets exceed short-term obligations, suggesting a solid financial position to support the buyback initiative.
However, investors should note that analysts anticipate a sales decline in the current year, with revenue growth at -11.04% over the last twelve months. This context adds importance to the company's efforts to return value to shareholders through the repurchase program.
For a more comprehensive analysis, InvestingPro offers 11 additional tips for Kimball Electronics, providing deeper insights into the company's financial health and market position.
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