Knowles Corporation Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2017; Provides Earnings Guidance for the First Quarter Ending March 31, 2018 and Effective Tax Rate Guidance for 2018
February 08, 2018 at 02:35 am IST
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Knowles Corporation announced unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2017. For the quarter, the company reported revenues of $215.5 million against $212.9 million a year ago. Operating earnings were $37.7 million against $27.7 million a year ago. Earnings before income taxes and discontinued operations were $34.2 million against $23.2 million a year ago. Earnings from continuing operations were $31.9 million against $16.4 million a year ago. Net earnings were $85.5 million against $19.3 million a year ago. Diluted earnings per share from continuing operations were $0.35 against basic and diluted earnings per share from continuing operations of $0.18 a year ago. Diluted net earnings per share were $0.94 against $0.22 a year ago. Earnings from continuing operations before interest and income taxes were $39.4 million against $28.5 million a year ago. Adjusted earnings from continuing operations before interest and income taxes were $51.6 million against $36.3 million a year ago. Non-GAAP net earnings were $36.6 million against $29.5 million a year ago. Non-GAAP diluted earnings per share were $0.40 against $0.32 a year ago. For the quarter, cash flow from operations was $62 million and capital spending was $8 million.
For the year, the company reported revenues of $744.2 million against $755.7 million a year ago. Operating earnings were $40.5 million against $45.2 million a year ago. Earnings before income taxes and discontinued operations were $19.4 million against $28.1 million a year ago. Earnings from continuing operations were $6.50 million against $19.8 million a year ago. Net earnings were $68.3 million against loss of $42.3 million a year ago. Basic and diluted earnings per share from continuing operations were $0.07 against $0.22 a year ago. Diluted net earnings per share were $0.68 against LPS of $0.47 a year ago. Earnings from continuing operations before interest and income taxes were $40.0 million against $48.5 million a year ago. Adjusted earnings from continuing operations before interest and income taxes were $110.6 million against $99.7 million a year ago. Non-GAAP net earnings were $81.2 million against $80.5 million a year ago. Non-GAAP diluted earnings per share were $0.88 against $0.89 a year ago. Net cash provided by operating activities was $92.9 million against $107.5 million a year ago. Additions to property, plant, and equipment were $51.6 million against $38.7 million a year ago. The company ended 2017 with net debt of $110 million.
The company provided guidance for the quarter ending March 31, 2018 is on a continuing operations basis: the company expected revenue between $170 million to $190 million, with the midpoint come up 7% from the year ago period. The company expects gross profit margin between 36% to 38% and EPS between $0.00 to $0.04. On the non-GAAP basis, the company expected revenue between $170 million to $190 million, gross profit margin between 37% to 39% and EPS between $0.10 to $0.14. GAAP results for continuing operations are expected to include approximately $0.04 per share in stock-based compensation, $0.04 per share from a higher effective tax rate, $0.01 per share in amortization of debt discount, and $0.01 per share in amortization of intangibles. Expected GAAP results exclude potential restructuring items. Capital spending in the quarter is expected to be approximately $30 million and includes $10 million of spending which was originally planned for the fourth quarter of 2017. The company is projecting adjusted EBIT margin for the quarter to be in the range of 9% to 11%. For the first quarter, the company expects cash utilized in operations to be between $5 million and $15 million.
Due to the impact of U.S. tax reform, the company now expects that its non-GAAP 2018 effective tax rate will be between 15% and 19%.
Knowles Corporation is a global provider of high-performance capacitors and radio frequency (RF) filtering products, and advanced micro-acoustic microphones and balanced armature speakers, and audio solutions. The Companyâs segments include Precision Devices (PD), Medtech & Specialty Audio (MSA) and Consumer MEMS Microphones (CMM). The PD segment specializes in the design and delivery of high-performance capacitor products and RF solutions primarily serving the defense, medtech, electric vehicle, and industrial markets. The MSA segment designs and manufactures balanced armature speakers and microphones used in applications that serve the hearing health and premium audio markets. The CMM segment designs and manufactures micro-electro-mechanical systems (MEMS) microphones and audio solutions used in applications that primarily serve the ear, Internet of things (IoT), computing, and smartphones markets. It sells its products directly to OEMs, their contract manufacturers, and others.
Knowles Corporation Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2017; Provides Earnings Guidance for the First Quarter Ending March 31, 2018 and Effective Tax Rate Guidance for 2018