$KTCC

KEY TRONIC CORP

CIK:0000719733|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 27, 2026	Jun. 28, 2025
Income Statement [Abstract]
Net sales	$ 386,667	$ 467,871
Cost of sales	362,730	431,444
Gross profit	23,937	36,427
Research, development and engineering expenses	8,011	9,163
Selling, general and administrative expenses	36,546	26,702
Gain on insurance proceeds, net of losses	(5,904)	0
Total operating expenses	38,653	35,865
Operating income (loss)	(14,716)	562
Interest expense, net	10,074	12,523
Loss before income taxes	(24,790)	(11,961)
Income tax provision (benefit)	23,003	(3,643)
Net loss	$ (47,793)	$ (8,318)
Net loss per share — Basic (in dollars per share)	$ (4.41)	$ (0.77)
Weighted average shares outstanding — Basic (in shares)	10,837	10,762
Net loss per share — Diluted (in dollars per share)	$ (4.41)	$ (0.77)
Weighted average shares outstanding — Diluted (in shares)	10,837	10,762

CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($) $ in Thousands	12 Months Ended
	Jun. 27, 2026	Jun. 28, 2025
Cash flows from operating activities:
Net loss	$ (47,793)	$ (8,318)
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization	10,226	9,599
Amortization of deferred loan costs	603	1,553
Noncash lease amortization	4,399	4,853
Inventory write-down to net realizable value	3,307	98
Provision for warranty	0	17
Provision for credit losses	11,639	1,805
Loss (gain) on disposal of assets	567	(42)
Gain on insurance proceeds, net of losses	(5,904)	0
Share-based compensation expense	633	218
Deferred income taxes	21,986	(6,647)
Changes in operating assets and liabilities:
Trade receivables	11,460	32,408
Contract assets	(529)	3,836
Inventories	(1,830)	7,680
Other assets	(5,824)	(10,461)
Accounts payable	12,236	(15,669)
Accrued compensation and vacation	(2,707)	1,647
Other liabilities	(8,045)	(3,648)
Cash provided by operating activities	4,424	18,929
Cash flows from investing activities:
Purchase of property and equipment	(6,351)	(4,095)
Proceeds from insurance	2,335	0
Proceeds from sale of fixed assets	0	40
Prepayments on finance lease obligations	0	(144)
Cash used in investing activities	(4,016)	(4,199)
Cash flows from financing activities:
Payment of financing costs	(220)	(2,973)
Proceeds from long term debt	442	33,273
Repayments of long term debt	(7,216)	(4,776)
Borrowings under revolving credit agreement	151,186	382,968
Repayments of revolving credit agreement	(143,728)	(424,367)
Principal payments on finance leases	(1,672)	(2,223)
Cash used in financing activities	(1,208)	(18,098)
Net decrease in cash and cash equivalents	(800)	(3,368)
Cash and cash equivalents, beginning of period	1,384	4,752
Cash and cash equivalents, end of period	584	1,384
Supplemental cash flow information:
Interest payments	9,538	11,067
Income tax payments, net of refunds	1,659	989
Recognition of operating lease liabilities and right-of-use assets	22,133	784
Recognition of financing lease liabilities and right-of-use assets	8,220	1,374
Derecognition of operating lease liabilities and right of use assets	$ (2,531)	$ 0

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 27, 2026	Jun. 28, 2025
Current assets:
Cash and cash equivalents	$ 584	$ 1,384
Trade receivables, net of credit losses of $4,659 and $3,479	83,650	96,142
Contract Assets, net of credit losses of $856 and $0	24,219	17,409
Inventories	95,844	97,321
Other, net of credit losses of $0 and $1,463	19,462	21,917
Total current assets	223,759	234,173
Property, plant and equipment, net	28,854	27,727
Operating lease right-of-use assets, net	26,550	11,347
Other assets:
Deferred income tax asset	1,451	23,397
Other, net of credit losses of $8,438 and $500	19,152	19,230
Total other assets	20,603	42,627
Total assets	299,766	315,874
Current liabilities:
Accounts payable	75,961	63,725
Accrued compensation and vacation	5,450	8,157
Current portion of long-term debt	7,162	6,215
Other	17,919	13,894
Total current liabilities	106,492	91,991
Long-term liabilities:
Long-term debt, net	99,056	98,936
Operating lease liabilities	20,120	6,859
Deferred income tax liability	41	0
Other long-term obligations	4,874	954
Total long-term liabilities	124,091	106,749
Total liabilities	230,583	198,740
Commitments and contingencies (Note 8)
Shareholders’ equity:
Common stock, no par value—shares authorized 25,000; issued and outstanding 10,859 and 10,762 shares, respectively	48,135	47,502
Retained earnings	20,810	68,603
Accumulated other comprehensive income	238	1,029
Total shareholders’ equity	69,183	117,134
Total liabilities and shareholders’ equity	$ 299,766	$ 315,874