Methode Electronics, Inc. (NYSE:MEI) Q2 2021 Earnings Conference Call - Final Transcript

Dec 03, 2020 • 11:00 am ET

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Methode Electronics, Inc. (NYSE:MEI) Q2 2021 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings. Welcome to the Methode Electronics' Second Quarter Fiscal 2021 Results.

[Operator Instructions]

I will now turn the conference over to your host, Rob Cherry, Vice President of Investor Relations. You may begin.

Executive
Robert K. Cherry

Thank you, operator. Good morning and welcome to Methode Electronics' fiscal 2021 second quarter earnings conference call.

For this call, we have prepared a presentation entitled Fiscal 2021 Second Quarter Financial Results, which can be viewed on the webcast of this call or found at methode.com on the Investors page.

This conference call contains certain forward-looking statements, which reflect management's expectations regarding future events and operating performance, and speak only as of the date hereof. These forward-looking statements are subject to the Safe Harbor protection provided under the securities laws. Methode undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in Methode's expectations on a quarterly basis or otherwise. The forward-looking statements in this conference call involve a number of risks and uncertainties. The factors that could cause actual results to differ materially from our expectations are detailed in Methode's filings with the Securities and Exchange Commission, such as our 10-K and 10-Q reports.

At this time, I'd like to turn the call over to Mr. Don Duda, President and Chief Executive Officer.

Executive
Donald W. Duda

Thank you, Rob, and good morning, everyone. And thank you for joining us for our fiscal 2021 second quarter earnings conference call.

I'm joined today by Ron Tsoumas, our Chief Financial Officer. Both Ron and I have opening comments, and then we will take your questions.

Let's begin on Slide 4 with a brief summary of our financial results for our fiscal second quarter, which ended on October 31. Methode's second quarter sales increased 17% to nearly $301 million. Our net income increased 62%, and our diluted earnings per share increased 60%. Ron will provide more detail on financial results a bit later.

Turning to the business highlights on Slide 5. The $301 million in net sales, as well as our $45 million in income from operations, were both records for Methode. The resulting operating income margin was 15%. These record results -- these record results are validation of our strategy and the product of the relentless efforts and commitment of our global team. In the quarter, we saw significant rebound in automotive demand as compared to the first quarter, which has been impacted by the pandemic and created uncertainty in OEM production schedules. The Automotive segment sales for the quarter were also a record at $216 million.

It was another strong quarter for our EV businesses, as well. Sales for EV applications were over 9% of our total consolidated sales. We also saw continued strength for EV bookings during the quarter with the annual expected sales from those awards totaling over $28 million. As many of you know, much of Methode's historical growth came from our user interface products. With our move into vehicle LED lighting and with our long-standing reputation and capabilities in power distribution,