Thu, Jul 11, 11:32 AM (58 days ago)
Methode Electronics, Inc.'s 10-K for the fiscal year ended April 27, 2024, reveals a decrease in net sales by 5.5% to $1,114.5 million, primarily due to lower sales in the Automotive segment. The gross profit margin fell to 16.0%, impacted by operational inefficiencies. The company reported a net loss of $123.3 million, influenced by a $105.9 million goodwill impairment in the Automotive segment. Operating expenses increased slightly, while interest expenses rose due to higher borrowings and rates. The Industrial segment benefited from the Nordic Lights acquisition, contributing $85.1 million in sales. Future outlook includes addressing supply chain disruptions and inflation. The company amended its credit agreement to $500 million and secured it against personal property. The effective tax rate was impacted by non-deductible goodwill impairments. Management identified material weaknesses in internal controls over IT systems and GAAP application.