ke-20211103

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) November 3, 2021

KIMBALL ELECTRONICS, INC.

________________________________________________________________________________________________________

(Exact name of registrant as specified in its charter)

Indiana

001-36454

35-2047713

(State or other jurisdiction of

(Commission File

(IRS Employer Identification No.)

incorporation)

Number)



1205 Kimball Boulevard, Jasper, Indiana						47546
(Address of principal executive offices)						(Zip Code)

Registrant’s telephone number, including area code (812) 634-4000


Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Securities registered pursuant to Section 12(b) of the Act:
Title of each Class	Trading Symbol	Name of each exchange on which registered
Common Stock, no par value	KE	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (Section 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (Section 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition

On November 3, 2021, the Company issued an earnings release for the first quarter ended September 30, 2021. The earnings release is attached as Exhibit 99.1 and supplementary information provided for the Company’s earnings conference call is attached as Exhibit 99.2.

The information in Item 2.02 of this Form 8-K, including Exhibit 99.1 and Exhibit 99.2, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Form 8-K shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or under the Securities Exchange Act of 1934, as amended, except as shall otherwise be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits


Exhibit
Number						Description
99.1						Earnings Release dated November 3 , 2021
99.2						Supplementary Information

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



			KIMBALL ELECTRONICS, INC.

By:			/s/ Jana T. Croom
			JANA T. CROOM Vice President, Chief Financial Officer

Date: November 3, 2021

Exhibit 99.1

KIMBALL ELECTRONICS, INC. REPORTS FIRST QUARTER FISCAL 2022 RESULTS; REITERATES GUIDANCE FOR FISCAL YEAR 2022, DRIVEN BY STRONG SECOND HALF

•Net sales in the first quarter of fiscal 2022 totaled $292.7 million.

•Net income of $2.6 million, or $0.10 per diluted share.

•Adjusted non-GAAP net income of $1.5 million, or $0.06 per diluted share.

JASPER, Ind., November 3, 2021 (BUSINESS WIRE) -- Kimball Electronics, Inc. (Nasdaq: KE) today announced financial results for the first quarter ended September 30, 2021.



	Three Months Ended
	September 30,
(Amounts in Thousands, except EPS)	2021			2020
Net Sales	$	292,717		$	331,749
Operating Income	$	4,780		$	17,807
Adjusted Operating Income (non-GAAP) (1)	$	3,309		$	18,016
Operating Income %	1.6		%	5.4		%
Adjusted Operating Income (non-GAAP) %	1.1		%	5.4		%
Net Income	$	2,564		$	16,811
Adjusted Net Income (non-GAAP) (1)	$	1,514		$	16,552
Diluted EPS	$	0.10		$	0.66
Adjusted Diluted EPS (non-GAAP) (1)	$	0.06		$	0.65

(1) A reconciliation of GAAP and non-GAAP financial measures is included below.

Donald D. Charron, Chairman and Chief Executive Officer, stated, “I am proud of our people, our company, and the results for Q1, considering the difficult operating environment caused by issues in the global supply chain. Component shortages, which are impacting companies worldwide, continue to make it challenging to keep pace with strong market demand. We were disappointed by the lack of improvement in the overall situation in the September ending quarter, when we were actually expecting some level of recovery. Conditions deteriorated in the period due to COVID related restrictions in Malaysia, and the worsening of the backlog in U.S. west coast ports.”

Mr. Charron continued, “While these supply chain challenges had a more significant impact on absorption than anticipated, we are committed to retaining our experienced and talented workforce around the world as we see these disruptions as a short-term issue. As supply constraints ease, we are well positioned to ramp production on our record backlog and support our strong funnel of new product introductions. We are reiterating our guidance for fiscal 2022, although the bifurcation between the first and second halves will be more pronounced.”

First Quarter Fiscal Year 2022 Overview

•Net sales decreased 12% compared to the first quarter of fiscal year 2021. Foreign currency had a favorable impact of 1% on net sales in the quarter compared to the same period a year ago.

•Cash flow used for operating activities of $8.2 million during the first quarter of fiscal 2022.

•Cash conversion days (“CCD”) for the quarter ended September 30, 2021 were 73 days, down from 76 days in the first quarter of fiscal year 2021. CCD is calculated as the sum of days sales outstanding plus contract asset days plus production days supply on hand less accounts payable days.

•Investments in capital expenditures were $12.7 million during the quarter.

•Cash and cash equivalents were $89.3 million and borrowings outstanding on credit facilities were $72.6 million at September 30, 2021, including $40.0 million classified as long term.

Fiscal Year 2022 Guidance

As part of today’s announcement, the Company is reiterating its guidance for fiscal year 2022.

•Net sales in the range of $1.4 - $1.5 billion, an 8% to 16% increase year-over-year.

•Operating income in the range of 4.5% - 5.0% of net sales.

•Capital expenditures of $60 - $70 million in support of the expansions of the facilities in Thailand and Mexico.

Net Sales by Vertical Market for Q1 Fiscal 2022:


	Three Months Ended
	September 30,
(Amounts in Millions)	2021		*		2020		*		Percent Change

Automotive	$	129.4	44	%	$	118.3	36	%	9	%
Medical	85.0		29	%	127.1		38	%	(33)	%
Industrial	63.9		22	%	70.0		21	%	(9)	%
Public Safety	11.1		4	%	13.3		4	%	(16)	%
Other	3.3		1	%	3.0		1	%	7	%
Total Net Sales	$	292.7			$	331.7			(12)	%

*As a percent of Total Net Sales

–Automotive includes electronic power steering, body controls, automated driver assist systems, and electronic braking systems
–Medical includes sleep therapy and respiratory care, image guided therapy, in vitro diagnostics, drug delivery, AED, and patient monitoring
–Industrial includes climate controls, automation controls, optical inspection, and smart metering
–Public Safety includes thermal imaging, first responder electronics, and security

Forward-Looking Statements

Certain statements contained within this release are considered forward-looking, including our fiscal year 2022 guidance, under the Private Securities Litigation Reform Act of 1995. The statements may be identified by the use of words such as “expect,” “should,” “goal,” “predict,” “will,” “future,” “optimistic,” “confident,” and “believe.” Undue reliance should not be placed on these forward-looking statements. These statements are based on current expectations of future events and thus are inherently subject to uncertainty. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from our expectations and projections. These forward-looking statements are subject to risks and uncertainties including, without limitation, global economic conditions, geopolitical environment, global health emergencies including the COVID-19 pandemic, availability or cost of raw materials and components, foreign exchange rate fluctuations, and our ability to convert new business opportunities into customers and revenue. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of the Company are contained in its Annual Report on Form 10-K for the year ended June 30, 2021.

Non-GAAP Financial Measures

This press release contains non-GAAP financial measures. The non-GAAP financial measures contained herein include adjusted operating income, adjusted net income, adjusted diluted EPS, and ROIC. Reconciliations of the reported GAAP numbers to these non-GAAP financial measures are included in the Reconciliation of Non-GAAP Financial Measures section below. Management believes these measures are useful and allow investors to meaningfully trend, analyze, and benchmark the performance of the Company’s core operations. The Company’s non-GAAP financial measures are not necessarily comparable to non-GAAP information used by other companies.

About Kimball Electronics, Inc.

Kimball Electronics is a multifaceted manufacturing solutions provider of electronics and diversified contract manufacturing services to customers around the world. From our operations in the United States, China, India, Japan, Mexico, Poland, Romania, Thailand, and Vietnam, our teams are proud to provide manufacturing services for a variety of industries. Recognized for a reputation of excellence, we are committed to a high-performance culture that values personal and organizational commitment to quality, reliability, value, speed, and ethical behavior. Kimball Electronics, Inc. (Nasdaq: KE) is headquartered in Jasper, Indiana.

To learn more about Kimball Electronics, visit: www.kimballelectronics.com.


Conference Call / Webcast

Date:						November 4, 2021
Time:						10:00 AM Eastern Time
Live Webcast:						investors.kimballelectronics.com/events-and-presentations/events
Dial-In #:						877-248-9893 (International Calls - 873-415-0287)
Conference ID:						8062466

For those unable to participate in the live webcast, the call will be archived at investors.kimballelectronics.com.

Lasting relationships. Global success.

Financial highlights for the first quarter ended September 30, 2021 are as follows:


Condensed Consolidated Statements of Income
(Unaudited)	Three Months Ended
(Amounts in Thousands, except Per Share Data)	September 30, 2021				September 30, 2020
Net Sales	$	292,717	100.0	%	$	331,749	100.0	%
Cost of Sales	277,117		94.7	%	301,166		90.8	%
Gross Profit	15,600		5.3	%	30,583		9.2	%
Selling and Administrative Expenses	12,204		4.2	%	13,117		3.9	%
Other General Expense (Income)	(1,384)		(0.5)	%	(341)		(0.1)	%


Operating Income	4,780		1.6	%	17,807		5.4	%
Other Income (Expense), net	(1,249)		(0.4)	%	2,135		0.6	%
Income Before Taxes on Income	3,531		1.2	%	19,942		6.0	%
Provision for Income Taxes	967		0.3	%	3,131		0.9	%
Net Income	$	2,564	0.9	%	$	16,811	5.1	%

Earnings Per Share of Common Stock:
Basic	$	0.10			$	0.67
Diluted	$	0.10			$	0.66

Average Number of Shares Outstanding:
Basic	25,145				25,153
Diluted	25,301				25,270


Condensed Consolidated Statements of Cash Flows	Three Months Ended
(Unaudited)	September 30,
(Amounts in Thousands)	2021		2020
Net Cash Flow (used for) provided by Operating Activities	$	(8,187)	$	20,701
Net Cash Flow used for Investing Activities	(12,868)		(8,322)
Net Cash Flow provided by (used for) Financing Activities	4,965		(5,787)
Effect of Exchange Rate Change on Cash and Cash Equivalents	(1,028)		1,793
Net (Decrease) Increase in Cash and Cash Equivalents	(17,118)		8,385
Cash and Cash Equivalents at Beginning of Period	106,442		64,990
Cash and Cash Equivalents at End of Period	$	89,324	$	73,375


	(Unaudited)
Condensed Consolidated Balance Sheets	September 30, 2021		June 30, 2021
(Amounts in Thousands)
ASSETS
Cash and cash equivalents	$	89,324	$	106,442
Receivables, net	176,881		203,382
Contract assets	46,080		45,863
Inventories	262,125		200,386
Prepaid expenses and other current assets	27,773		27,320

Property and Equipment, net	166,085		163,251
Goodwill	12,011		12,011
Other Intangible Assets, net	16,606		17,008
Other Assets	41,381		38,398
Total Assets	$	838,266	$	814,061

LIABILITIES AND SHARE OWNERS’ EQUITY


Current portion of borrowings under credit facilities	$	32,636	$	26,214
Accounts payable	247,175		216,544

Accrued expenses	46,772		58,016
Long-term debt under credit facilities, less current portion	40,000		40,000
Long-term income taxes payable	7,812		8,854
Other	24,057		22,461
Share Owners’ Equity	439,814		441,972
Total Liabilities and Share Owners’ Equity	$	838,266	$	814,061


Reconciliation of Non-GAAP Financial Measures
(Unaudited)
(Amounts in Thousands, except Per Share Data)


	Three Months Ended
	September 30,
	2021			2020
Operating Income, as reported	$	4,780		$	17,807


SERP	(87)			550
Legal Recovery	(1,384)			(341)

Adjusted Operating Income	$	3,309		$	18,016






Net Income, as reported	$	2,564		$	16,811




Legal Recovery, After-Tax	(1,050)			(259)


Adjusted Net Income	$	1,514		$	16,552







Diluted Earnings per Share, as reported	$	0.10		$	0.66




Legal Recovery	(0.04)			(0.01)


Adjusted Diluted Earnings per Share	$	0.06		$	0.65

	Twelve Months Ended
	September 30,
	2021			2020
Operating Income	$	52,676		$	38,688
Goodwill Impairment	—			7,925
SERP	1,436			1,420
Legal Recovery	(1,415)			(341)
Adjusted Operating Income (non-GAAP)	$	52,697		$	47,692
Tax Effect	11,017			9,940
After-tax Adjusted Operating Income	$	41,680		$	37,752
Average Invested Capital (1)	$	414,121		$	435,465
ROIC	10.1		%	8.7		%

(1) Average invested capital is computed using Share Owners’ equity plus current and non-current debt less cash and cash equivalents averaged for the last five quarters.

First Quarter Fiscal 2022 Results Quarter Ended September 30, 2021 Supplementary Information to November 4, 2021 Earnings Conference Call & Webcast Exhibit 99.2

Kimball Electronics (Nasdaq: KE) Safe Harbor Statement Certain statements contained within this supplementary information, including our fiscal year 2022 guidance, and any statements made during our earnings conference call today may be considered forward-looking under the Private Securities Litigation Reform Act of 1995. The statements may be identified by the use of words such as “expect,” “should,” “goal,” “predict,” “will,” “future,” “optimistic,” “confident,” and “believe.” Undue reliance should not be placed on these forward-looking statements. These statements are based on current expectations of future events and thus are inherently subject to uncertainty. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from our expectations and projections. These forward-looking statements are subject to risks and uncertainties including, without limitation, global economic conditions, geopolitical environment, global health emergencies including the COVID-19 pandemic, availability or cost of raw materials and components, foreign exchange fluctuations, and our ability to convert new business opportunities into customers and revenue. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of Kimball Electronics, Inc. (the “Company”) are contained in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2021, our earnings release, and other filings with the Securities and Exchange Commission (the “SEC”). This supplementary information contains non-GAAP financial measures. The non-GAAP financial measures contained herein include Adjusted Selling & Administrative Expenses, Adjusted Operating Income, Adjusted Net Income, Adjusted Diluted Earnings Per Share, and Return on Invested Capital (“ROIC”). Management believes these measures are useful and allow investors to meaningfully trend, analyze, and benchmark the performance of the Company’s core operations. Many of the Company’s internal performance measures that management uses to make certain operating decisions use these and other non-GAAP measures to enable meaningful trending of core operating metrics. Reconciliations of the reported GAAP numbers to these non-GAAP financial measures are included on the Reconciliation of Non-GAAP Results slide, which is the final slide of this supplementary information. 2

Kimball Electronics (Nasdaq: KE) Today’s speakers • Don Charron - Chairman & CEO • Jana Croom - Vice President, CFO • Andy Regrut - Head of Investor Relations 3

Kimball Electronics (Nasdaq: KE) Difficult operating environment in Q1 due to global supply chain issues 4 • Component shortages, which are impacting companies worldwide, continue to make it challenging to keep pace with strong market demand • Disappointed by the lack of improvement in the overall situation, when we were expecting some level of recovery • Conditions deteriorated due to COVID related restrictions in Malaysia, and the worsening of the backlog in U.S. west coast ports • Additional challenge with power outages at our facility in China

Kimball Electronics (Nasdaq: KE) Our lost absorption was more significant than original estimates 5 • Committed to retaining our experienced and talented workforce around the world • View these disruptions as a short-term issue • Our funnel of new product introductions remains strong

Kimball Electronics (Nasdaq: KE) Reiterating guidance for fiscal year 2022 6 • Continue to experience a shift in a significant portion of our shippable backlog, as customer demand exceeds parts availability • Well-positioned to ramp production on our record backlog • Preparing to run at maximum capacity on several production lines across the company to fill not only existing orders, but other new programs in our forecast • The bifurcation between the first and second halves of the fiscal year will now be more pronounced • Longer term, the outlook for our company continues to be strong, and the team we have in place - to execute on a variety of growth opportunities - is up to the challenge

Kimball Electronics (Nasdaq: KE) Net sales decreased 12% compared to the same period last year 7 The decline occurred in 3 of 4 vertical markets Net Sales Q1 ‘22 $293 $332 Q1 ‘21 (12%)

Kimball Electronics (Nasdaq: KE) Sales in the Automotive vertical market increased 9% 8 Automotive $129 $118 +9% • Automotive was the only vertical market with increasing sales in Q1 • This result could have been much stronger if we had the materials needed to fill these orders • The growth in Q1 resulted from popular vehicle models – designated as “high priority” by our customers & the OEMs - receiving an allocation of components from the limited worldwide supply • We remain bullish on the growth prospects of this vertical market Q1 ‘22 Q1 ‘21

Kimball Electronics (Nasdaq: KE) Sales in the Medical vertical market decreased 33% 9 Medical • Strong last year with our support of respiratory care products needed to combat COVID-19 during the early months of the pandemic • Elective procedures are still below pre-pandemic levels… the recovery has been gradual • Longer-term, we continue to believe the megatrends in the healthcare industry are an excellent set-up for growth $85 $127 (33%) Q1 ‘22 Q1 ‘21

Kimball Electronics (Nasdaq: KE) Sales in the Industrial vertical market decreased 9% 10 Industrial • The decline resulted from lower sales in climate control and smart metering products • Both largely related to parts shortages$64 $70 (9%) Q1 ‘22 Q1 ‘21

Kimball Electronics (Nasdaq: KE) $11 $13 Sales in the Public Safety vertical market decreased 16% 11 Public Safety • Sales were $11.1 million in Q1 • Decline largely driven by part shortages(16%) Q1 ‘22 Q1 ‘21

Kimball Electronics (Nasdaq: KE) Net sales declined 12% compared to Q1 2021 12 • Sales were $292.7 million, a 12% decrease compared Q1 last year • Foreign exchange rates favorably impacted sales by 1% Net Sales Overview Net Sales Trend

Kimball Electronics (Nasdaq: KE) Gross margin rate of 5.3%, a 390 bps decline compared to Q1 2021 13 Drivers of GM% Gross Margin Trend • Challenged by lower volumes related to the continued global parts shortage; impacting our absorption rate • Certain costs have increased this year… including wage inflation, other labor costs, and inbound freight • Expect this to abate in the coming quarters as the parts shortage subsides

Kimball Electronics (Nasdaq: KE) Adjusted Selling & Administrative Expense (%)(1)(2) 14 (1) Adjusted Selling & Administrative Expense is a Non-GAAP measure – refer to Reconciliation of Non-GAAP Results on the final slide of this supplementary information. (2) Beginning in Q1’21, Adjusted Selling & Administrative Expense excludes changes in the fair value of our supplemental employee retirement plan (“SERP”) liability. Prior periods have been revised accordingly.

Kimball Electronics (Nasdaq: KE) Adjusted Operating Income (1)(2) 15 (1) Adjusted Operating Income is a Non-GAAP measure – refer to Reconciliation of Non-GAAP Results on the final slide of this supplementary information. (2) Beginning in Q1’21, Adjusted Operating Income excludes changes in the fair value of our supplemental employee retirement plan (“SERP”) liability. Prior periods have been revised accordingly.

Kimball Electronics (Nasdaq: KE) Adjusted Net Income and Adjusted Diluted EPS(1) 16 (1) Adjusted Net Income and Adjusted Diluted EPS are Non-GAAP measures – refer to Reconciliation of Non-GAAP Results on the final slide of this supplementary information.

Kimball Electronics (Nasdaq: KE) Balance Sheet 17 • Cash and cash equivalents were $89.3 million at September 30, 2021 • Cash flow used for operating activities was $8.2 million in the first quarter of fiscal 2022 • Cash conversion days were 73 days, representing a 3 day improvement from Q1 2021, however, it is a 9 day increase from last quarter • Significant increase in inventory in the amount of $62 million in the quarter, a result of the current parts shortage • Capital investments in the first quarter of fiscal 2022 were $12.7 million • Borrowings on our credit facilities were $72.6 million at September 30, 2021 • Our short-term liquidity available totaled $182.8 million at September 30, 2021 • No shares repurchased in the first quarter of fiscal 2022

Kimball Electronics (Nasdaq: KE) Guidance for fiscal year 2022 18 • Net sales in the range of $1.4 - $1.5 billion, an 8% - 16% increase compared to fiscal 2021 • Operating income expected to be 4.5% - 5.0% of net sales • CapEx of $60 - $70 million

Kimball Electronics (Nasdaq: KE) Refreshed Investor Relations website 19

Kimball Electronics (Nasdaq: KE) Closing comments 20 • The impact of the pandemic, and resulting materials shortages, coupled with global logistics issues and rising costs is presenting a unique set of challenges • Long-term perspective when running the business and view these headwinds as short term in nature • Backlog of open orders is at record levels, and we are prepared for a significant ramp-up in output in the second half of fiscal 2022 • Annual Meeting of Share Owners at 9:00 AM ET on Tuesday, November 9th • This meeting will be an in-person only event at our World Headquarters in Jasper, Indiana

Q&A

Appendix

Kimball Electronics (Nasdaq: KE) Reconciliation of Non-GAAP Results 23 (Unaudited, Amounts in Thousands, Except Per Share Data) Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Selling & Administrative Expenses, as reported $ 11,827 $ 9,624 $ 11,391 13,117 $ 13,486 $ 11,744 $ 14,357 $ 12,204 Less: SERP(2) 502 (914) 1,282 550 811 164 548 (87) Adjusted S&A Expense $ 11,325 $ 10,538 $ 10,109 $ 12,567 $ 12,675 $ 11,580 $ 13,809 $ 12,291 Operating Income, as reported $ 8,684 $ 10,588 $ 1,609 $ 17,807 $ 16,179 $ 14,638 $ 17,079 $ 4,780 Add: SERP(2) 502 (914) 1,282 550 811 164 548 (87) Add: Goodwill Impairment — — 7,925 — — — — — Add: Lawsuit Settlements (Recovery) — — — (341) — (376) 345 (1,384) Adjusted Operating Income (2) $ 9,186 $ 9,674 $ 10,816 $ 18,016 $ 16,990 $ 14,426 $ 17,972 $ 3,309 Net Income, as reported $ 6,612 $ 6,259 $ (1,273) $ 16,811 $ 15,062 $ 10,472 $ 14,446 $ 2,564 Add: After-Tax Goodwill Impairment — — 6,947 — — — — — Add: After-Tax Adjustments after Measurement Period of GES Acquisition — — 2,871 — 133 (254) — — Add: Lawsuit Settlements (Recovery) — — — (259) — (285) 262 (1,050) Adjusted Net Income $ 6,612 $ 6,259 $ 8,545 $ 16,552 $ 15,195 $ 9,933 $ 14,708 $ 1,514 Diluted Earnings per Share, as reported $ 0.26 $ 0.25 $ (0.05) $ 0.66 $ 0.60 $ 0.41 $ 0.57 $ 0.10 Add: After-Tax Goodwill Impairment $ — $ — $ 0.28 $ — $ — $ — $ — $ — Add: After-Tax Adjustments after Measurement Period of GES Acquisition $ — $ — $ 0.11 $ — $ — $ (0.01) $ — $ — Add: Lawsuit Settlements (Recovery) $ — $ — $ — $ (0.01) $ — $ (0.01) $ 0.01 $ (0.04) Adjusted Diluted Earnings per Share $ 0.26 $ 0.25 $ 0.34 $ 0.65 $ 0.60 $ 0.39 $ 0.58 $ 0.06 Operating Income (GAAP) (TTM) $ 44,615 $ 40,706 $ 31,996 $ 38,688 $ 46,183 $ 50,233 $ 65,703 $ 52,676 Add: Goodwill Impairment (TTM) — — 7,925 7,925 7,925 7,925 — — Add: SERP (TTM)(2) 1,314 (206) 848 1,420 1,729 2,807 2,073 1,436 Add: Lawsuit Settlements (Recovery) (TTM) (215) (215) — (341) (341) (717) (372) (1,415) Adj. Operating Income (non-GAAP) (TTM) (2) $ 45,714 $ 40,285 $ 40,769 $ 47,692 $ 55,496 $ 60,248 $ 67,404 $ 52,697 Tax Effect (TTM) (2) 9,288 9,090 9,831 9,940 10,859 11,786 12,844 11,017 After-Tax Adj. Operating Income (TTM) (2) $ 36,426 $ 31,195 $ 30,938 $ 37,752 $ 44,637 $ 48,462 $ 54,560 $ 41,680 Average Invested Capital (1) $ 431,910 $ 438,634 $ 437,263 $ 435,465 $ 433,192 $ 423,545 $ 415,999 $ 414,121 ROIC (2) 8.4 % 7.1 % 7.1 % 8.7 % 10.3 % 11.4 % 13.1 % 10.1 % (1) Average Invested Capital is computed using the Share Owners equity plus current and non-current debt less cash and cash equivalents averaged for the last five quarters. (2) Beginning in Q1 FY'21, adjusted selling and administrative expense, adjusted operating income, and ROIC exclude changes in the fair value of our supplemental employee retirement plan (“SERP”) liability. Prior periods have been revised accordingly.