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Aug 01, 2020

Methode Q1 2021 Earnings Report

Methode reported a decrease in net sales and net income due to the COVID-19 pandemic's impact on the Automotive and Industrial segments.

Key Takeaways

Methode Electronics reported a decrease in net sales to $190.9 million compared to $270.2 million in the same quarter of fiscal 2020, primarily due to lower sales volume in the Automotive and Industrial segments as a result of the COVID-19 pandemic. Net income was $20.7 million, or $0.54 per diluted share, compared to $28.3 million, or $0.75 per diluted share, in the same quarter of fiscal 2020.

Net sales were $190.9 million.

Net income was $20.7 million, or $0.54 per diluted share.

Selling and administrative expense decreased $5.8 million from fiscal first quarter 2020.

EBITDA was $29.3 million.

Total Revenue
$191M
Previous year: $270M
-29.3%
EPS
$0.41
Previous year: $0.75
-45.3%
Adjusted EBITDA
$29.3M
Previous year: $50.3M
-41.7%
Interest Expense
$1.6M
Previous year: $2.9M
-44.8%
Gross Profit
$45.1M
Previous year: $75.8M
-40.5%
Cash and Equivalents
$211M
Previous year: $73.8M
+185.9%
Free Cash Flow
$4.8M
Previous year: $5.9M
-18.6%
Total Assets
$1.42B
Previous year: $1.27B
+11.8%

Methode

Methode

Methode Revenue by Segment

Forward Guidance

The company expects net sales in the fiscal second quarter of 2021 to improve sequentially and be in the range of $230 to $250 million.

Positive Outlook

  • Demand experienced in the latter half of the first quarter
  • Demand seen early in the second quarter
  • Increase in awards for EV and hybrid programs
  • Awards from busbars
  • Awards from lead frames to interior and exterior lighting systems

Challenges Ahead

  • Market uncertainty
  • Ongoing pandemic
  • Subject to disruption at any time
  • Variety of factors
  • Near-term outlook

Revenue & Expenses

Visualization of income flow from segment revenue to net income