Kimball Electronics, Inc. (NASDAQ:KE) Q4 2020 Earnings Conference Call - Final Transcript

Aug 19, 2020 • 10:00 am ET

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Kimball Electronics, Inc. (NASDAQ:KE) Q4 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning, ladies and gentlemen. My name is Demetrius, and I will be your conference call facilitator today. At this time, I would like to welcome everyone to the Kimball Electronics Fourth Quarter Fiscal 2020 Financial Results Conference Call. All lines have been placed on listen-only mode to prevent any background noise. After the Kimball speakers' opening remarks, there will be a question-and-answer period, where Kimball will respond to questions from analysts [Operator Instructions].

Today's call, August 19, 2020, will be recorded and may contain forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. Risk factors that may influence the outcome of forward-looking statements can be seen in Kimball's annual report on Form 10-K for the year ended June 30, 2019 and in today's release.

The panel for today's call is Don Charron, Chairman of the Board and Chief Executive Officer and Mike Sergesketter, Vice President and Chief Financial Officer of Kimball Electronics.

I would now like to turn today's call over to Don Charron. Mr. Charron, you may begin.

Executive
Donald D. Charron

Thank you, Demetrius. Welcome everyone to our fourth quarter conference call. Our earnings release was issued yesterday afternoon on the results of our fourth quarter and fiscal year ended June 30, 2020. We have posted a financial summary presentation to accompany this conference call, which can be found on our Investor Relations Web site within the Events and Presentations tab. Or if you are listening via the webcast, you can follow along by advancing the slides or download them from the Downloads tab on the webcast portal. I will begin by making a few remarks on the quarter, and then I'll turn it over to Mike for the financial overview. After that, we will answer any questions that you may have.

We are pleased with the operating results we delivered in the fourth quarter of fiscal year 2020, despite the global interruptions and challenges caused by the COVID-19 pandemic. The health and safety of our employees remains our number one priority. And we continue to make every effort to keep our facilities safe, utilizing protective shields, face mask, body temperature scanning, social distancing and proper hygiene. Of our 6,400 employees around the world, approximately 1% have tested positive for the virus. And in each positive case, our response has followed our procedures for communication to our employees, contact tracing, self quarantining, testing and sanitization of the affected work areas.

Because of the disciplined response and extraordinary effort of our people around the world, we were able to perform our mission as an essential business and amongst many things, completed the first phase of our ramp up to support the significant increase in demand from our medical customers, for their respiratory care and patient monitoring products.

In the fourth quarter of fiscal year 2020, sales from our medical vertical were up 23% compared to the fourth quarter of fiscal year, 2019 and up 42% sequentially. We are currently on track with the second phase of our ramp up