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Methode Electronics Inc. (MEI) has submitted its 10-Q filing for the quarterly period ended November 2, 2024.
Net sales for the quarter were $292.6 million, a slight increase from $288.0 million in the same quarter the previous year. The increase was primarily due to higher sales volumes in the Industrial segment, offset by a decrease in the Automotive segment.
Cost of products sold was $234.7 million, representing 80.2% of net sales, compared to 81.8% in the same quarter the previous year. The decrease in cost ratio was attributed to lower freight and warranty costs.
The company reported a gross profit of $57.9 million for the quarter, up from $52.3 million in the previous year, with the improvement attributed to product mix and lower operating expenses.
Selling and administrative expenses increased to $42.6 million from $40.9 million, primarily due to higher incentive compensation expense and professional fees.
Net loss for the quarter was $1.6 million, compared to a net loss of $55.3 million in the previous year. The previous year's loss included a goodwill impairment charge of $56.5 million.
Cash used in operating activities was $37.1 million, while cash used in investing and financing activities was $21.0 million and $8.1 million, respectively.
Methode had cash and cash equivalents of $97.0 million as of November 2, 2024. The company remains focused on managing its liquidity and compliance with debt covenants.
The filing also details various legal proceedings, including a class action lawsuit and an SEC investigation, which may impact the company's financial position.
Methode Electronics continues to address material weaknesses in its internal controls over financial reporting and is committed to enhancing its control environment.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Methode Electronics Inc. quarterly 10-Q report dated December 5, 2024. To report an error, please email earnings@qz.com.