METHODE ELECTRONICS INC (MEI) SEC Filing 10-Q Quarterly report for the period ending Saturday, October 27, 2018

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Exhibit 99.1

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METHODE ELECTRONICS, INC. REPORTS
FISCAL 2019 SECOND-QUARTER SALES AND EARNINGS
Forms Industrial Segment
Includes Six Weeks of Grakon Acquisition


Chicago, IL-December 6, 2018 - Methode Electronics, Inc. (NYSE: MEI), a global developer of custom-engineered and application-specific products and solutions, announced financial results for the second quarter of Fiscal 2019 ended October 27, 2018.

Second Quarter Fiscal 2019
Methode's second-quarter Fiscal 2019 net sales increased $33.9 million, or 14.7 percent, to $264.0 million from $230.1 million in the same quarter of Fiscal 2018. Year over year, currency rate fluctuations increased net sales $1.6 million.

GAAP net income decreased $9.6 million to $14.6 million, or $0.39 per share, in the second quarter of Fiscal 2019 from income of $24.2 million, or $0.64 per share, in the same period of Fiscal 2018.

Adjusted net income, a non-GAAP financial measure, was $28.4 million, or $0.75 per share, in the second quarter of Fiscal 2019 compared to $27.7 million, or $0.74 per share, in the same period of Fiscal 2018. Adjusted net income for all periods excludes acquisition-related expenses, including purchase accounting adjustments for the Fiscal 2019 periods, and stock award amortization expense due to the revised Fiscal 2020 EBITDA estimate of the long-term incentive program.

Year over year, Fiscal 2019 second-quarter GAAP net income was negatively affected by:
increased acquisition-related costs ($3.5 million) and increased purchase accounting adjustments ($3.2 million) totaling $6.7 million;
higher stock award amortization expense due to the revised Fiscal 2020 EBITDA estimate of the long-term incentive program of $5.7 million;
higher interest expense of $1.8 million;
increased intangible asset amortization expense related to the Pacific Insight and Grakon acquisitions of $2.6 million; and
customer pricing reductions.

Year over year, Fiscal 2019 second-quarter GAAP net income benefitted from:
higher sales in the Automotive and Industrial segments (inclusive of Pacific Insight and Grakon);
decreased income tax expense of $1.9 million;
lower legal fees of $1.1 million; and
the favorable impact of the weakening Mexican peso compared to the U.S. dollar.

Consolidated gross margins as a percentage of net sales were virtually unchanged at 26.8 percent in the Fiscal 2019 second quarter from 26.9 percent in the Fiscal 2018 period. Year over year, gross margins were negatively impacted by an unfavorable sales mix in the Automotive and Interface segments, the purchase accounting adjustment related to Grakon inventory and customer pricing reductions. Gross



The following information was filed by METHODE ELECTRONICS INC on Thursday, December 6, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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  • 18468901_187
    Financial - Income
    Income from operations decreased due primarily to lower sales volumes of our appliance products and lower sales volumes and unfavorable sales mix of our data solutions products, partially offset by a favorable currency impact for appliance products due to the weakening of the Mexican peso as compared to the U.S. dollar.
  • 18468901_354
    Financial - Expense
    The decreased loss relates to lower selling and administrative expenses related to decreased marketing expense and lower stock award amortization expense in the period.
  • 18468901_71
    Financial - Earnings
    The Industrial segment gross margins increased due primarily to a favorable sales mix relating to our Grakon business and increased sales volumes of busbar and radio remote control products.
  • 18468901_154
    Financial - Earnings
    Gross margins increased in the second quarter of fiscal 2019 due primarily to a favorable sales mix relating to our Grakon business and increased sales volumes of busbar and radio remote control products.
  • 18468901_224
    Financial - Earnings
    The Industrial segment gross margins increased due primarily to a favorable sales mix relating to our Grakon business and increased sales volumes of radio remote control and busbar products.
  • 18468901_307
    Financial - Earnings
    Gross margins increased due primarily to a favorable sales mix relating to our Grakon business and increased sales volumes of radio remote control and busbar products.
  • 18468901_73
    Financial - Earnings
    The Interface segment gross profit as a percentage of net sales decreased due primarily to lower sales volumes of our appliance products and lower sales volumes and unfavorable sales mix of our data solutions products, partially offset by the weakening of the Mexican peso as compared to the U.S. dollar during the period.
  • 18468901_226
    Financial - Earnings
    The Interface segment gross margins as a percentage of sales decreased primarily due to lower sales volumes of our appliance products and lower sales volumes and unfavorable sales mix of our data solutions products, partially offset by the weakening of the Mexican peso as compared to the U.S. dollar during the period.
  • 18468901_285
    Financial - Expense
    Excluding the activity from our Pacific Insight and Procoplast businesses, expenses increased $4.5 million due primarily to the increase in stock award amortization expense for our long-term incentive program and higher salary and other personnel costs.
  • 18468901_153
    Financial - Earnings
    Gross margins as a percentage of net sales increased to 30.0% for the three months ended October 27, 2018, compared to 25.9% for the three months ended October 28, 2017.
  • 18468901_306
    Financial - Earnings
    Gross margins as a percentage of net sales increased to 30.9% for the six months ended October 27, 2018, from 25.9% for the six months ended October 28, 2017.
  • 18468901_74
    Financial - Earnings
    The Medical segment gross margins improved primarily due to an increase in sales volumes during the period.
  • 18468901_352
    Financial - Expense
    The decrease in selling and administrative expenses for the six months ended October 27, 2018 primarily relates to decreased marketing expense in the period and lower stock award amortization expense for our long-term incentive program.
  • 18468901_60
    Financial - Expense
    The cost of products sold as a percentage of net sales also increased due to pricing reductions on certain products, partially offset by the weakening of the Mexican peso as compared to the U.S. dollar during the period.
  • 18468901_70
    Financial - Expense
    The cost of products sold as a percentage of net sales also increased due to pricing reductions on certain products, partially offset by the weakening of the Mexican peso as compared to the U.S. dollar during the period.
  • 18468901_118
    Financial - Expense
    The cost of products sold as a percentage of net sales also increased due to pricing reductions on certain products, partially offset by the weakening of the Mexican peso as compared to the U.S. dollar during the period.
  • 18468901_124
    Financial - Expense
    The cost of products sold as a percentage of net sales also increased due to pricing reductions on certain products, partially offset by the weakening of the Mexican peso as compared to the U.S. dollar during the period.
  • 18468901_213
    Financial - Expense
    The cost of products sold as a percentage of net sales also increased due to pricing reductions on certain products, partially offset by the weakening of the Mexican peso as compared to the U.S. dollar during the period.
  • 18468901_223
    Financial - Expense
    The cost of products sold as a percentage of net sales also increased due to pricing reductions on certain products, partially offset by the weakening of the Mexican peso as compared to the U.S. dollar during the period.
  • 18468901_273
    Financial - Expense
    The cost of products sold as a percentage of net sales also increased due to pricing reductions on certain products, partially offset by the weakening of the Mexican peso as compared to the U.S. dollar during the period.
  • 18468901_279
    Financial - Expense
    The cost of products sold as a percentage of net sales also increased due to pricing reductions on certain products, partially offset by the weakening of the Mexican peso as compared to the U.S. dollar during the period.
  • 18468901_112
    Revenue - Geography
    Translation of foreign operations' net sales for the three months ended October 27, 2018 decreased reported net sales by $1.6 million, or 0.8%, due to average currency rates in the second quarter of fiscal 2019, compared to the average currency rates in the second quarter of fiscal 2018, primarily due to the weakening of the euro and Chinese yuan as compared to the U.S. dollar.
  • 18468901_67
    Financial - Earnings
    Gross margins as a percentage of net sales decreased slightly to 26.8% for the three months ended October 27, 2018, compared to 26.9% for the three months ended October 28, 2017.
  • 18468901_341
    Financial - Income
    Income from operations decreased due primarily to lower sales volumes and unfavorable sales mix, partially offset by the weakening of the Mexican peso as compared to the U.S. dollar during the period.
  • 18468901_176
    Financial - Earnings
    Gross margins as a percentage of net sales decreased to 10.2% for the three months ended October 27, 2018, from 20.3% for the three months ended October 28, 2017.
  • 18468901_330
    Financial - Earnings
    Gross margins as a percentage of net sales decreased to 14.5% for the six months ended October 27, 2018 from 20.5% for the six months ended October 28, 2017.
  • 18468901_130
    Financial - Expense
    Excluding the activity from our Pacific Insight and Grakon businesses, expenses increased $5.3 million due primarily to the increase in stock award amortization expense for our long-term incentive program.
  • 18468901_241
    Financial - Expense
    Other expense, net decreased $1.0 million to $0.2 million for the six months ended October 27, 2018, compared to $1.2 million for the six months ended October 28, 2017.
  • 18468901_121
    Financial - Earnings
    The Automotive segment gross margins as a percentage of net sales decreased to 27.2% for the three months ended October 27, 2018, as compared to 28.3% for the three months ended October 28, 2017.
  • 18468901_220
    Financial - Earnings
    Gross margins as a percentage of net sales decreased to 26.9% for six months ended October 27, 2018, compared to 27.3% for the six months ended October 28, 2017.
  • 18468901_276
    Financial - Earnings
    The Automotive segment gross margins as a percentage of net sales decreased to 27.0% for the six months ended October 27, 2018, as compared to 28.8% for the six months ended October 28, 2017.
  • 18468901_380
    Financial - Earnings
    Net cash provided by operating activities decreased $9.0 million to $36.2 million for the six months ended October 27, 2018, compared to $45.2 million for the six months ended October 28, 2017, primarily due to the changes in operating assets and liabilities, partially offset by an increase in our net income, adjusted for depreciation, amortization, deferred tax expense, stock-based compensation and the provision for bad debt.
  • 18468901_387
    Other - Other
    Net cash provided by financing activities increased $239.9 million to $291.1 million for the six months ended October 27, 2018, compared to $51.2 million for the six months ended October 28, 2017.
  • 18468901_128
    Financial - Expense
    The increase in selling and administrative expenses is partially attributable to the Pacific Insight and Grakon businesses, which were not owned by Methode during the entirety of the three months ended October 28, 2017.
  • 18468901_231
    Financial - Expense
    The increase in selling and administrative expenses is partially attributable to the Grakon, Pacific Insight and Procoplast businesses, which were not owned by Methode during the entirety of the six months ended October 28, 2017.
  • 18468901_283
    Financial - Expense
    The increase in selling and administrative expenses is partially attributable to the Pacific Insight and Procoplast businesses, which were not owned by Methode during the entirety of the six months ended October 28, 2017.
  • 18468901_381
    Financial - Expense
    For the six months ended October 27, 2018, net changes in operating assets and liabilities resulted in cash used of $41.4 million, primarily due to an increase in prepaid expenses and other assets, an increase in accounts receivable, a decrease in accounts payable and other expenses and an increase in inventory levels.
  • 18468901_382
    Financial - Expense
    For the six months ended October 28, 2017, net changes in operating assets and liabilities resulted in cash used of $19.7 million, primarily due to an increase in accounts receivable, an increase in prepaid expenses and other assets and an increase in inventory levels, partially offset by a decrease in accounts payable and other expenses.
  • 18468901_78
    Financial - Expense
    The increase in selling and administrative expenses is partially attributable to the Grakon and Pacific Insight businesses, which were not owned by Methode during the entirety of the three months ended October 28, 2017, which accounted for $7.3 million of the increase.
  • 18468901_227
    Financial - Earnings
    The Medical segment gross profit increased due primarily to an increase in sales volumes during the period.
  • 18468901_92
    Financial - Income
    Income tax expense decreased $1.9 million, or 38.8%, to $3.0 million for the three months ended October 27, 2018, compared to $4.9 million for the three months ended October 28, 2017.
  • 18468901_246
    Financial - Income
    Income tax expense decreased $1.7 million, or 18.5%, to $7.5 million for the six months ended October 27, 2018, compared to $9.2 million for the six months ended October 28, 2017.
  • 18468901_28
    MA - Other
    Effective October 27, 2018, the Company reorganized the reportable segments within its business to align to its new structure resulting from the acquisition of Grakon.
  • 18468901_269
    Financial - Expense
    Automotive segment cost of products sold increased $30.5 million, or 12.5%, to $275.0 million for the six months ended October 27, 2018, from $244.5 million for the six months ended October 28, 2017.
  • 18468901_197
    Financial - Expense
    Selling and administrative expenses decreased $0.4 million, to $1.8 million for the three months ended October 27, 2018, compared to $2.2 million for the three months ended October 28, 2017.
  • 18468901_351
    Financial - Expense
    Selling and administrative expenses decreased $1.1 million, or (25.6)%, to $3.2 million for the six months ended October 27, 2018, compared to $4.3 million for the six months ended October 28, 2017.
  • 18468901_56
    Financial - Expense
    Consolidated cost of products sold increased $25.1 million, or 14.9%, to $193.2 million for the three months ended October 27, 2018, compared to $168.1 million for the three months ended October 28, 2017.
  • 18468901_114
    Financial - Expense
    Automotive segment cost of products sold increased $12.8 million, or 9.6%, to $146.7 million for the three months ended October 27, 2018, compared to $133.9 million for the three months ended October 28, 2017.
  • 18468901_147
    Financial - Expense
    Industrial segment cost of products sold increased $14.9 million, or 81.4%, to $33.2 million for the three months ended October 27, 2018, compared to $18.3 million for the three months ended October 28, 2017.
  • 18468901_209
    Financial - Expense
    Consolidated cost of products sold increased $42.8 million, or 13.6%, to $356.5 million for the six months ended October 27, 2018, compared to $313.7 million for the six months ended October 28, 2017.
  • 18468901_300
    Financial - Expense
    Industrial segment cost of products sold increased $17.6 million, or 47.1%, to $55.0 million for the six months ended October 27, 2018, compared to $37.4 million for the six months ended October 28, 2017.
  • 18468901_54
    Revenue - Geography
    Translation of foreign operations' net sales for the three months ended October 27, 2018 decreased reported net sales by $1.6 million, or 0.6%, due to average currency rate fluctuations in the second quarter of fiscal 2019, compared to the second quarter of fiscal 2018, primarily due to the weakening of the euro and Chinese yuan as compared to the U.S. dollar.
  • 18468901_258
    Revenue - Geography
    Other North American sales increased for our human machine interface assembly products due to new program launches.
  • 18468901_291
    Financial - Income
    Income from operations for the six months ended October 27, 2018 decreased due primarily to pricing reductions on certain products, an increase in stock award amortization expense for our long-term incentive program and increased intangible asset amortization expense, partially offset by the income from operations from our Pacific Insight, Procoplast and Grakon businesses, and the weakening of the Mexican peso as compared to the U.S. dollar during the period.
  • 18468901_110
    Revenue - Product
    Net sales in Asia decreased $1.8 million, or 7.4%, to $22.5 million in the second quarter of fiscal 2019, compared to $24.3 million in the second quarter of fiscal 2018, primarily due to lower sales of our transmission lead-frame assemblies due to a combination of pricing reductions and lower sales volumes.
  • 18468901_265
    Revenue - Product
    Net sales in Asia decreased $5.0 million, or 10.5%, to $42.5 million for the six months ended October 27, 2018, compared to $47.5 million for the six months ended October 28, 2017, primarily due to lower sales of our transmission lead-frame assemblies due to a combination of pricing reductions and lower sales volumes.
  • 18468901_200
    Revenue - Product
    The decreased loss relates to higher sales volumes and decreased marketing expense in the period, partially offset by increased salary and bonus expense during the period.
  • 18468901_63
    Financial - Expense
    The Interface segment cost of products sold as a percentage of net sales increased primarily due to lower sales volumes of our appliance products and lower sales volumes and unfavorable sales mix of our data solutions products, partially offset by the weakening of the Mexican peso as compared to the U.S. dollar during the period.
  • 18468901_216
    Financial - Expense
    The Interface segment cost of products sold as a percentage of net sales increased primarily due to lower sales volumes of our appliance products and lower sales volumes and unfavorable sales mix of our data solutions products, partially offset by the weakening of the Mexican peso as compared to the U.S. dollar during the period.
  • 18468901_53
    Revenue - Product
    The Medical segment net sales increased to $0.3 million for the second quarter of fiscal 2019, compared to no net sales for the second quarter of fiscal 2018.
  • 18468901_100
    Revenue - Product
    Net sales increased in North America by $24.0 million, or 23.1%, to $127.8 million in the second quarter of fiscal 2019, compared to $103.8 million in the second quarter of fiscal 2018.
  • 18468901_140
    Revenue - Product
    Net sales increased in North America by $18.4 million, or 204.4%, to $27.4 million in the second quarter of fiscal 2019, compared to $9.0 million in the second quarter of fiscal 2018.
  • 18468901_143
    Revenue - Product
    Net sales increased in Europe by $1.1 million, or 11.2%, to $10.9 million in the second quarter of fiscal 2019, compared to $9.8 million in the second quarter of fiscal 2018.
  • 18468901_206
    Revenue - Product
    The Medical segment net sales increased $0.5 million to $0.6 million for the six months ended October 27, 2018, compared to $0.1 million for the six months ended October 28, 2017.
  • 18468901_254
    Revenue - Product
    Net sales increased in North America by $35.1 million, or 17.9%, to $231.6 million for the six months ended October 27, 2018, compared to $196.5 million for the six months ended October 28, 2017.
  • 18468901_261
    Revenue - Product
    Net sales increased in Europe by $3.6 million, or 3.6%, to $102.8 million for the six months ended October 27, 2018, compared to $99.2 million for the six months ended October 28, 2017.
  • 18468901_294
    Revenue - Product
    Net sales increased in North America by $20.8 million, or 111.2%, to $39.5 million for the six months ended October 27, 2018, compared to $18.7 million for the six months ended October 28, 2017.
  • 18468901_58
    Financial - Expense
    The Automotive segment cost of products sold as a percentage of net sales increased primarily due to sales mix related to our Pacific Insight business, which currently has a higher cost of products sold as a percentage of sales compared to other reporting units within the Automotive segment.
  • 18468901_116
    Financial - Expense
    The cost of products sold as a percentage of net sales increased primarily due to sales mix related to our Pacific Insight business, which currently has a higher cost of products sold as a percentage of sales compared to other reporting units within the Automotive segment.
  • 18468901_248
    Financial - Income
    The decrease primarily relates to a decrease in pretax income and an increase in investment tax credits during the period.
  • 18468901_106
    Revenue - Product
    Sales of our human machine interface assembly products increased primarily due to increased sales volumes as the result of new program launches.
  • 18468901_145
    Revenue - Product
    Net sales in Asia increased $3.2 million, or 54.2%, to $9.1 million in the second quarter of fiscal 2019, compared to $5.9 million in the second quarter of fiscal 2018, primarily due to higher sales volumes of busbar products.
  • 18468901_298
    Revenue - Product
    Net sales in Asia increased $6.2 million, or 53.0%, to $17.9 million for the six months ended October 27, 2018, compared to $11.7 million for the six months ended October 28, 2017, primarily due to higher sales volumes of busbar products.
  • 18468901_207
    Revenue - Geography
    Translation of foreign operations' net sales for the six months ended October 27, 2018 increased net sales by $1.1 million, or 0.2%, compared to the average currency rates in the six months ended October 28, 2017, primarily due to the strengthening of the euro and Chinese yuan as compared to the U.S. dollar.
  • 18468901_267
    Revenue - Geography
    Translation of foreign operations' net sales increased reported net sales by $1.1 million, or 0.3%, for the six months ended October 27, 2018, compared to the average currency rates for the six months ended October 28, 2017, primarily due to the strengthening of the euro and Chinese yuan as compared to the U.S. dollar.
  • 18468901_266
    Revenue - Product
    We also experienced lower sales volumes for our steering angle sensor products, as the products approach end of production.
  • 18468901_66
    Financial - Earnings
    Consolidated gross profit increased $8.8 million, or 14.2%, to $70.8 million for the three months ended October 27, 2018, as compared to $62.0 million for the three months ended October 28, 2017.
  • 18468901_120
    Financial - Earnings
    Automotive segment gross profit increased $2.1 million, or 4.0%, to $54.9 million for the three months ended October 27, 2018, as compared to $52.8 million for the three months ended October 28, 2017.
  • 18468901_152
    Financial - Earnings
    Industrial segment gross profit increased $7.8 million, or 121.9%, to $14.2 million for the three months ended October 27, 2018, compared to $6.4 million for the three months ended October 28, 2017.
  • 18468901_219
    Financial - Earnings
    Consolidated gross profit increased $13.3 million, or 11.3%, to $130.9 million for the six months ended October 27, 2018, as compared to $117.6 million for the six months ended October 28, 2017.
  • 18468901_275
    Financial - Earnings
    Automotive segment gross profit increased $3.2 million, or 3.2%, to $101.9 million for the six months ended October 27, 2018, as compared to $98.7 million for the six months ended October 28, 2017.
  • 18468901_305
    Financial - Earnings
    Industrial segment gross profit increased $11.5 million, or 87.8%, to $24.6 million for the six months ended October 27, 2018, compared to $13.1 million for the six months ended October 28, 2017.
  • 18468901_177
    Revenue - Product
    The decrease primarily relates to lower sales volumes of our appliance products and lower sales volumes and unfavorable sales mix of our data solutions products, partially offset by the weakening of the Mexican peso as compared to the U.S. dollar during the period.
  • 18468901_331
    Revenue - Product
    The decrease primarily relates to lower sales volumes of our appliance products and lower sales volumes and unfavorable sales mix of our data solutions products, partially offset by the weakening of the Mexican peso as compared to the U.S. dollar during the period.
  • 18468901_49
    Revenue - Product
    Consolidated net sales increased $33.9 million, or 14.7%, to $264.0 million for the three months ended October 27, 2018, from $230.1 million for the three months ended October 28, 2017.
  • 18468901_50
    Revenue - Product
    The Automotive segment net sales increased $14.9 million, or 8.0%, to $201.6 million for the second quarter of fiscal 2019, from $186.7 million for the second quarter of fiscal 2018.
  • 18468901_51
    Revenue - Product
    The Industrial segment net sales increased $22.7 million, or 91.9%, to $47.4 million for the second quarter of fiscal 2019, from $24.7 million for the second quarter of fiscal 2018.
  • 18468901_99
    Revenue - Product
    Automotive segment net sales increased $14.9 million, or 8.0%, to $201.6 million for the three months ended October 27, 2018, from $186.7 million for the three months ended October 28, 2017.
  • 18468901_139
    Revenue - Product
    Industrial segment net sales increased $22.7 million, or 91.9%, to $47.4 million for the three months ended October 27, 2018, from $24.7 million for the three months ended October 28, 2017.
  • 18468901_202
    Revenue - Product
    Consolidated net sales increased by $56.1 million, or 13.0%, to $487.4 million for the six months ended October 27, 2018, from $431.3 million for the six months ended October 28, 2017.
  • 18468901_203
    Revenue - Product
    The Automotive segment net sales increased $33.7 million, or 9.8%, to $376.9 million for the six months ended October 27, 2018, from $343.2 million for the six months ended October 28, 2017.
  • 18468901_204
    Revenue - Product
    The Industrial segment net sales increased $29.1 million, or 57.6%, to $79.6 million for the six months ended October 27, 2018, from $50.5 million for the six months ended October 28, 2017.
  • 18468901_253
    Revenue - Product
    Automotive segment net sales increased $33.7 million, or 9.8%, to $376.9 million for the six months ended October 27, 2018, from $343.2 million for the six months ended October 28, 2017.
  • 18468901_293
    Revenue - Product
    Industrial segment net sales increased $29.1 million, or 57.6%, to $79.6 million for the six months ended October 27, 2018, from $50.5 million for the six months ended October 28, 2017.
  • 18468901_11
    Other - Other
    See Part I - Item 1A, Risk Factors of our Form 10-K for the fiscal year ended April 28, 2018 and Part II - Item 1A, Risk Factors of this Form 10-Q for further discussions regarding some of the reasons that actual results may be materially different from those we anticipate.
  • 18468901_260
    Revenue - Product
    Sales for our transmission lead-frame assemblies decreased due to a combination of pricing reductions and lower sales volumes.
  • 18468901_76
    Financial - Expense
    Selling and administrative expenses increased by $16.8 million, or 53.8%, to $48.0 million for the three months ended October 27, 2018, compared to $31.2 million for the three months ended October 28, 2017.
  • 18468901_126
    Financial - Expense
    Selling and administrative expenses increased $6.9 million, or 73.4%, to $16.3 million for the three months ended October 27, 2018, as compared to $9.4 million for the three months ended October 28, 2017.
  • 18468901_157
    Financial - Expense
    Selling and administrative expenses increased $4.0 million, or 108.1%, to $7.7 million for the three months ended October 27, 2018, compared to $3.7 million for the three months ended October 28, 2017.
  • 18468901_179
    Financial - Expense
    Selling and administrative expenses increased $0.5 million, or 45.5%, to $1.6 million for the three months ended October 27, 2018, compared to $1.1 million for the three months ended October 28, 2017.
  • 18468901_229
    Financial - Expense
    Selling and administrative expenses increased $16.7 million, or 27.5%, to $77.5 million for the six months ended October 27, 2018, compared to $60.8 million for the six months ended October 28, 2017.
  • 18468901_233
    Financial - Expense
    Excluding the activity from our Grakon, Pacific Insight and Procoplast businesses, expenses increased $5.7 million due primarily to a $3.7 million increase in stock award amortization expense, higher acquisition-related costs of $2.9 million and higher salary and other personnel costs, partially offset by lower legal fees of $2.8 million.
  • 18468901_281
    Financial - Expense
    Selling and administrative expenses increased $9.6 million, or 49.2%, to $29.1 million for the six months ended October 27, 2018, compared to $19.5 million for the six months ended October 28, 2017.
  • 18468901_310
    Financial - Expense
    Selling and administrative expenses increased $3.0 million, or 38.0%, to $10.9 million for the six months ended October 27, 2018, compared to $7.9 million for the six months ended October 28, 2017.
  • 18468901_104
    Revenue - Geography
    Other North American sales increased for our integrated center stack products due primarily to higher sales volumes, partially offset by pricing reductions.
  • 18468901_168
    Revenue - Product
    Net sales decreased in North America by $4.0 million, or 21.7%, to $14.4 million in the second quarter of fiscal 2019, compared to $18.4 million in the second quarter of fiscal 2018, primarily due to lower sales volumes of appliance and data solution products.
  • 18468901_262
    Revenue - Geography
    The increase in European sales includes an increase of $7.9 million from Procoplast, due primarily to only three months of activity being included in the six months ended October 28, 2017.
  • 18468901_322
    Revenue - Product
    Net sales decreased in North America by $7.0 million, or 19.2%, to $29.4 million for the six months ended October 27, 2018, compared to $36.4 million for six months ended October 28, 2017, primarily due to lower sales volumes of appliance and data solution products.
  • 18468901_323
    Revenue - Product
    Net sales in Asia decreased $0.3 million, or 27.3%, to $0.8 million for the six months ended October 27, 2018, compared to $1.1 million for the six months ended October 28, 2017, due to lower sales volumes of legacy products.
  • 18468901_373
    Other - Other
    As of October 27, 2018, there were no outstanding balances against this credit facility and Pacific Insight was in compliance with the covenants of the agreement.
  • 18468901_82
    Financial - Expense
    The increase is due to the amortization expense related to our Grakon and Pacific Insight businesses.
  • 18468901_236
    Financial - Expense
    The increase is primarily due to the amortization expense related to our Grakon and Pacific Insight businesses.
  • 18468901_111
    Revenue - Product
    In addition, sales volumes for steering angle sensor products were lower, as the products approach end of production.
  • 18468901_192
    Revenue - Product
    The increase primarily relates to an increase in sales volumes during the period.
  • 18468901_346
    Revenue - Product
    The increase primarily relates to an increase in sales volumes during the period.
  • 18468901_105
    Revenue - Product
    Sales for our transmission lead-frame assemblies decreased due primarily to pricing reductions and lower sales volumes in the second quarter of fiscal 2019, compared to the second quarter of fiscal 2018.
  • 18468901_142
    MA - Other
    Excluding the acquisition of Grakon, North American sales increased by $0.3 million primarily due to increased sales volumes of busbar products in the quarter.
  • 18468901_296
    Revenue - Geography
    Other North American sales increased due primarily to sales volumes of radio remote control and busbar products.
  • 18468901_247
    Other - Other
    The Company's effective tax rate decreased to 16.4% for the six months ended October 27, 2018, compared to 17.1% for the six months ended October 28, 2017.
  • 18468901_164
    Financial - Income
    Industrial segment income from operations increased $2.4 million, or 88.9%, to $5.1 million for the three months ended October 27, 2018, compared to $2.7 million for the three months ended October 28, 2017.
  • 18468901_388
    Other - Other
    During the six months ended October 27, 2018, the Company had $348.0 million of borrowings against credit facilities, as compared to $129.9 million during the six months ended October 28, 2017.
  • 18468901_64
    Financial - Expense
    The Medical segment cost of products sold increased primarily due to an increase in sales volumes during the period.
  • 18468901_217
    Financial - Expense
    The Medical segment cost of products sold increased primarily due to an increase in sales volumes during the period.
  • 18468901_367
    Other - Other
    As of October 27, 2018, there were outstanding balances of $88.0 million and $250.0 million against the revolving credit facility and term loan, respectively.
  • 18468901_85
    Financial - Expense
    The increase in expense primarily relates to increased debt levels in the second quarter of fiscal 2019, compared to the second quarter of fiscal 2018.
  • 18468901_364
    Financial - Debt
    The Credit Agreement provides for variable rates of interest based on the type of borrowing and the Company's debt to EBITDA financial ratio and contains customary representations and warranties, financial covenants, restrictive covenants and events of default.
  • 18468901_137
    Financial - Income
    Income from operations for the second quarter of fiscal 2019 decreased due primarily to increased stock award amortization expense, pricing reductions on certain products and increased intangible asset amortization expense, partially offset by the income from operations from our Grakon and Pacific Insight businesses and the weakening of the Mexican peso as compared to the U.S. dollar during the period.
  • 18468901_183
    Other - Other
    Amortization of intangibles decreased $0.1 million, or 16.7%, to $0.5 million for the three months ended October 27, 2018, compared to $0.6 million for the three months ended October 28, 2017.
  • 18468901_337
    Other - Other
    Amortization of intangibles decreased $0.1 million, or 9.1%, to $1.0 million for the six months ended October 27, 2018, compared to $1.1 million for the six months ended October 28, 2017.

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Exhibit 31.1 - CERTIFICATION OF CEO PURSUANT TO SECTION 302

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Exhibit 31.2 - CERTIFICATION OF CFO PURSUANT TO SECTION 302

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Exhibit 32.0 - CERTIFICATION OF PERIODIC FINANCIAL REPORT

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  • Form Type: Quarterly
  • Number of times amended: 0
  • Accession Number: 0000065270-18-000041
  • Submitted to the SEC: Thursday, December 6, 2018 7:17:02 AM EST
  • Accepted by the SEC: Thursday, December 6, 2018
  • Period ending: October 2018
  • Industry: Electronic Connectors