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Methode
🇺🇸 NYSE:MEI
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•
Jan 30, 2021

Methode Q3 2021 Earnings Report

Reported fiscal third quarter 2021 financial results, featuring electric and hybrid vehicle application growth, strong free cash flow, and significant debt reduction.

Key Takeaways

Methode Electronics reported net sales of $295.3 million and net income of $31.9 million, or $0.83 per diluted share, for the fiscal third quarter ended January 30, 2021. The company experienced growth in electric and hybrid vehicle applications and generated strong free cash flow, leading to significant debt reduction.

Net sales were $295.3 million.

Electric and hybrid vehicle applications were over 12 percent of net sales.

Net income was $31.9 million, or $0.83 per diluted share.

Debt was $244.6 million, compared to $352.1 million at the end of fiscal 2020.

Total Revenue
$295M
Previous year: $286M
+3.3%
EPS
$0.83
Previous year: $1.05
-21.0%
Adjusted EBITDA
$51.3M
Previous year: $59.8M
-14.2%
Tax Expense
$4.6M
Previous year: $2.8M
+64.3%
Interest Expense
$1.3M
Previous year: $2.4M
-45.8%
Gross Profit
$72.6M
Previous year: $79.3M
-8.4%
Cash and Equivalents
$219M
Previous year: $79.9M
+173.7%
Free Cash Flow
$82.2M
Previous year: $6.7M
+1126.9%
Total Assets
$1.44B
Previous year: $1.28B
+12.6%

Methode

Methode

Methode Revenue by Segment

Forward Guidance

For the fiscal fourth quarter of 2021, the company expects net sales in to be in the range of $270 to $300 million and diluted earnings per share to be in the range of $0.60 to $0.82, which is subject to disruption due to a variety of factors including the ongoing semiconductor shortage and COVID-19 pandemic situations. The lower end of the guidance ranges contemplates additional supply chain disruptions.

Positive Outlook

  • Net sales are expected to be in the range of $270 to $300 million.
  • Diluted earnings per share to be in the range of $0.60 to $0.82.
  • Order book for EV programs gives us the confidence to increase our projection for fiscal 2022 sales from EV applications to a mid-teens percentage.
  • Subject to resolution of the supply chain challenges by mid-calendar year, we anticipate Methode’s consolidated fiscal 2022 organic sales to grow in excess of 10%.

Challenges Ahead

  • Guidance is subject to disruption due to a variety of factors including the ongoing semiconductor shortage and COVID-19 pandemic situations.
  • The lower end of the guidance ranges contemplates additional supply chain disruptions.
  • Company will continue to face near term market uncertainty due to the semiconductor shortage.
  • Company will face other supply chain and related factory inefficiencies.
  • Weather-related supply chain disruptions are driving our wide guidance range.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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