Key Tronic Corp 8-K, filed May 5, 2021
Key Tronic Corp (KTCC)
8-K
2021-05-05
For: 2021-05-05
View Original
Added on
April 06, 2026
About this 8-K
Key Tronic Corp filed this 8-K on May 5, 2021.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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) May 5, 2021
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||
Registrant's telephone number, including area code (509 ) 928-8000
(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 provision (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
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| 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 | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§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 May 5, 2021 , Key Tronic Corporation issued a press release announcing its preliminary financial results for the quarter ended April 3, 2021. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information in this Form 8-K including the Exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section and shall not be deemed incorporated by reference into any filing of Key Tronic Corporation under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as set forth by specific reference in such a filing.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(d)Exhibits
| Exhibit Number | Description | |||||||
| 99.1 | ||||||||
| 104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document | |||||||
SAFE HARBOR STATEMENT. Statements contained in the Exhibit to this report that state Key Tronic Corporation’s or its management’s expectations or predictions of the future are forward-looking statements intended to be covered by the safe harbor provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. Key Tronic Corporation’s actual results could differ materially from those projected in such forward-looking statements. Factors that could affect those results include those mentioned in the Exhibit to this report and the documents that Key Tronic Corporation has filed with the Securities and Exchange Commission.
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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.
KEY TRONIC CORPORATION (Registrant) | ||||||||||||||||||||
| Date: May 5, 2021 | ||||||||||||||||||||
| By: | /s/ Brett R. Larsen | |||||||||||||||||||
| Brett R. Larsen, Executive Vice President of Administration, CFO and Treasurer | ||||||||||||||||||||
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Exhibit 99.1
FOR IMMEDIATE RELEASE
| CONTACTS: | Brett Larsen | Michael Newman | ||||||||||||
| Chief Financial Officer | Investor Relations | |||||||||||||
| Key Tronic Corporation | StreetConnect | |||||||||||||
| (509) 927-5500 | (206) 729-3625 | |||||||||||||
KEY TRONIC CORPORATION ANNOUNCES PRELIMINARY RESULTS
FOR THE THIRD QUARTER OF FISCAL YEAR 2021
Spokane Valley, WA— May 5, 2021 — Key Tronic Corporation (Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today announced its preliminary results for the quarter ended April 3, 2021.
For the third quarter of fiscal 2021, Key Tronic expects to report revenue of approximately $134.6 million and earnings of approximately $0.10 to $0.12 per share.
Customer demand has remained strong and new and existing customers have increased their backlog. While component supply issues limited our production, the third quarter was the best quarter in our history for customer demand, which exceeded $150 million.
The lower than anticipated earnings for the third quarter of fiscal 2021 are primarily a result of tightening worldwide supply chain and transportation and logistics issues which delayed the arrival of key components, causing both factory downtime and overtime expenses. In addition, earnings in the third quarter of 2021 were impacted by legal expenses related to the previously disclosed internal investigation discussed below, a temporary four-day closure of our Mexico facilities during a late winter storm that caused power disruptions in the region, and continued but lessening expenses related to COVID-19.
For the fourth quarter of fiscal 2021, Key Tronic expects to report revenue in the range of $130 million to $140 million with earnings in the range of $0.10 to $0.20 per share. These estimates assume continued recovery from the COVID-19 crisis, no worsening of key components supply for the Company’s business, and additional legal and internal review expenses during the quarter. Customer demand remains very strong and we believe could again exceed $150 million if component supply meets demand.
The financial data presented for the third quarter of fiscal 2021 is preliminary and subject to completion of the Company’s quarterly close and review procedures and completion of the internal investigation, as discussed below. Further, the Company’s independent auditor has not completed its review.
As previously disclosed, the Audit Committee of the Company’s Board of Directors (the “Audit Committee”) is conducting an internal investigation related to a notification from an employee regarding irregularities of the classification of inventory at a production facility. The investigation is ongoing, and the Audit Committee continues to work diligently with independent counsel and advisors to complete the investigation as soon as possible. As a result, the Company has not yet filed its Quarterly Report on Form 10-Q for the quarter ended December 26, 2020 and does not believe it will file its Quarterly Report on Form 10-Q for the quarter ended April 3, 2021 on a timely basis, and the second and third quarters of fiscal 2021 remain open from an accounting perspective. The Company’s financial results and guidance may be subject to change based on the outcome of the internal investigation, subsequent accounting review or potentially other reasons.
The Company expects that it will finalize its financial statements and review procedures for the second and third quarters of fiscal 2021 and file the related Quarterly Reports as soon as practicable after the conclusion of the internal investigation.
About Key Tronic
Key Tronic is a leading contract manufacturer offering value-added design and manufacturing services from its facilities in the United States, Mexico, China and Vietnam. The Company provides its customers full engineering services, materials management, worldwide manufacturing facilities, assembly services, in-house testing, and worldwide distribution. Its customers include some of the world’s leading original equipment manufacturers. For more information about Key Tronic visit: www.keytronic.com.
Forward-Looking Statements
Some of the statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to those including such word as aims, anticipates, believes, estimates, expects, hopes, intends, plans, predicts, projects, targets, could, or will, similar verbs, or nouns corresponding to such verbs, which may be forward looking. Forward-looking statements also include other passages that are relevant to expected future events, performances, and actions or that can only be fully evaluated by events that will occur in the future. Forward-looking statements in this release include, without limitation, the Company’s statements regarding its expectations with respect to financial conditions and results, including revenue, earnings and legal and internal review expenses during third quarter and fourth quarter of fiscal 2021; its ability to file, and the timing of any such filing, of the Quarterly Reports for the second and third quarters of fiscal 2021; actions with respect to the internal investigation and related matters; expenses related to, and estimated recovery from, the COVID-19 health pandemic; demand from new and existing customers; and key components supply and other supply chain and transportation and logistics issues. There are many factors, risks and uncertainties that could cause actual results to differ materially from those predicted or projected in forward-looking statements, including but not limited to: risks relating to the ongoing internal investigation by the Audit Committee, including (i) the risk that the internal investigation may take longer to complete than expected, (ii) the risk that the internal investigation identifies errors, which may be material, in the Company’s financial results, or impacts the timing of Company filings, and (iii) the risk of legal proceedings or government investigations relating to the subject of the internal investigation or related matters; the future of the global economic environment and its impact on our customers and suppliers, particularly during the COVID-19 health crisis; the availability of components from the supply chain; the availability of a healthy workforce; the accuracy of suppliers’ and customers’ forecasts; development and success of customers’ programs and products; timing and effectiveness of ramping of new programs; success of new-product introductions; acquisitions or divestitures of operations or facilities; technology advances; changes in pricing policies by the Company, its competitors, customers or suppliers; impact of new governmental legislation and regulation, including tax reform, tariffs and related activities, such trade negotiations and other risks including those related to COVID-19 response; and other factors, risks, and uncertainties detailed from time to time in the Company’s SEC filings.
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