Posts tagged: Key Tronic EMS
Contract manufacturer Key Tronic Corp. is buying Mexican sheet metal firm Sabre Manufacturing for $5.1.million.
Spokane Valley-based Key Tronic started out decades ago as a maker of keyboards. Over the last 15 years it transformed into a contract manufacturer, with production facilities in Spokane, China and Mexico.
Adding sheet metal fabrication will give the company new leads on contracts, said Key Tronic Chief Financial Officer Ron Klawitter. Key Tronic considered building its own sheet metal site near its factory in Juarez, Mexico, factory. “We learned that a company not far away from us was for sale,” Klawitter said. “We were in the right place at the right time,” he said.
The purchase includes Sabre’s customer list and a 66,000-square-foot production site. Privately owned Sabre
reported revenue of $7.million in 2012 and has about 90 employees.
Klawitter said Key Tronic has no plans to reduce the number of workers at Sabre. “We don’t really have sheet metal expertise, so there’s no plan to make any changes,” Klawitter said.
The acquisition will be funded by available cash and bank credit line.The transaction is anticipated to close in July, Klawitter noted.
“We paid off all our debt and had $4 million in available cash last quarter,” he said.
Examples of products that include sheet metal are transaction printers, some slot machines, power supplies and power protection equipment used in data centers, Klawitter said.
Craig Gates, the CEO of Spokane Valley-based Key Tronic EMS, is the featured speaker for Thursday's Connect Northwest Executive Breakfast.
Doors open at 7:30 a.m. at the Spokane Club Georgian Room.
Founded in 1969 as an independent keyboard manufacturer, Key Tronic was the No. 1 keyboard producer in the world by 1978 and went public in 1983.
The company purchased the Mexico manufacturing of Honeywell Keyboards Division in 1993, and five years later, as keyboard revenues began to wane, expanded into electronic manufacturing services. It remains one of the Spokane area's publicly traded companies.
Craig Gates joined Key Tronic in 1994 and became president and CEO in April 2009.
Registration is $30 and includes breakfast.
To sign up, go here.
Key Tronic Corp. had record quarterly revenue for the first quarter of fiscal 2013. The Spokane Valley contract manufacturer has been on a slow and steady roll. It keeps winning customers and hanging onto their business.
Total quarterly revenue came to $97.5 million, up 40 percent from $69.8 million in the same period from fiscal 2012.
It had income of $3.7 million or 35 cents per diluted share, up 200 percent from $1.2 million or 12 cents per diluted share for the same period of fiscal year 2012. Key Tronic's 1Q 2013 earnings were not the best ever, said company VP Ron Klawitter.
The stock, traded on NASDAQ, duly popped this morning. Here's the chart as of noon East Coast Time. The chart is just for Oct. 31. The dip in price happened around 10 a.m., followed by a strong rise afterward.