Thu, Sep 5, 11:31 AM (131 days ago)
Methode Electronics, Inc. reported a significant decline in financial performance for the quarter ended July 27, 2024, with net sales of $258.5 million, a 10.8% decrease from $289.7 million in the prior year. The gross profit margin dropped to 17.3%, primarily due to reduced sales across all segments and increased costs from program launches. The company incurred a net loss of $18.3 million, contrasting sharply with the net income of $0.9 million reported in the same quarter last year. Total operating expenses rose slightly to $46.2 million, influenced by higher professional fees. Interest expenses surged to $4.8 million, reflecting increased borrowings and rising interest rates. Cash flow from operating activities improved to $10.9 million, aided by better management of working capital, despite a decrease in cash and cash equivalents to $111.3 million. The company faces ongoing uncertainties, including geopolitical tensions and supply chain disruptions, which could further impact future operations. The amended credit agreement reduced revolving commitments and introduced strict covenants, indicating a cautious approach to liquidity management amidst these challenges.