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Key Tronic Corporation (KTCC) has submitted its 10-Q filing for the quarterly period ended September 28, 2024.
The filing includes financial statements for the quarter, showing net sales of $131.6 million, a decrease from $150.1 million in the same quarter of the previous year. The decrease is attributed to design and qualification delays of three programs at U.S. production sites.
Gross profit as a percentage of net sales increased to 10.1% from 7.2% in the same quarter of the previous year. The improvement is primarily due to benefits from recent restructuring and a weakening of the Mexican Peso.
The company reported net income of $1.1 million for the quarter, compared to $0.3 million in the previous year. The increase in earnings is attributed to operating efficiencies and currency fluctuations.
Cash provided by operating activities was $9.9 million, while cash used in investing and financing activities was $0.4 million and $7.8 million, respectively.
Key Tronic had a working capital of $176.1 million as of September 28, 2024. The company anticipates generating cash from operations as revenue is expected to increase during the second quarter of fiscal year 2025.
The filing also details various financial agreements, including amendments to the loan agreement with Bank of America (BAC), which extended the maturity date to December 3, 2025.
The company identified material weaknesses in its internal controls over financial reporting, specifically related to revenue recognition and adoption of new accounting standards.
Key Tronic continues to focus on expanding its customer base and mitigating supply chain risks, with new programs in manufacturing production equipment, vehicle lighting, and commercial pest control.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Key Tronic Corporation quarterly 10-Q report dated November 12, 2024. To report an error, please email earnings@qz.com.