KEMET Corporation reported preliminary unaudited consolidated earnings results for the fourth quarter and year ended Mach 31, 2018. For the quarter, the company reported net sales of $318,047,000 against $197,519,000 a year ago. Operating income was $21,799,000 against $8,942,000 a year ago. Income before income taxes and equity method investments was $5,211,000 against $11,392,000 a year ago. Net income was $2,433,000 or $0.04 per diluted share against $52,914,000 or $0.93 per basic and diluted share a year ago. Adjusted operating income was $35,603,000 against $18,112,000 a year ago. Adjusted net income was $26,359,000 or $0.45 per diluted share against $7,845,000 or $0.14 per basic and diluted share a year ago. Adjusted EBITDA was $48,462,000 against $27,230,000 a year ago. Capital expenditures during the quarter were $34.1 million compared to $13.1 million in the prior quarter. Strong performance by solid capacitor group and specifically ceramic product line was a big contributor, enabling to exceed the top end of guidance of sales.

For the year, the company reported net sales of $1,199,926,000 against $757,791,000 a year ago. Operating income was $113,303,000 against $35,796,000 a year ago. Income before income taxes and equity method investments was $187,518,000 against $10,636,000 a year ago. Net income was $254,529,000 or $4.34 per diluted share against $47,989,000 or $0.87 per basic and diluted share a year ago. Net cash provided by operating activities was $120,860,000 against $71,667,000 a year ago. Capital expenditures were $65,004,000 against $25,617,000 a year ago. Adjusted operating income was $142,556,000 against $67,804,000 a year ago. Adjusted net income was $102,678,000 or $1.75 per diluted share against $23,916,000 or $0.43 per basic and diluted share a year ago. The company reported $191.3 million EBITDA versus $105.2 million in the prior year.

For the quarter ending June 30, the company expects sales to be in the range of $310 million to $320 million, gross margins between 27.5% to 29.5%. This coming quarter, it expects to spend in the range of $25 million to $35 million in capital expenditures.

The company did expect capital expenditures for the full year to be in the range of $50 million to $60 million. Capital expenditures for the full year, including IT and corporate spending related to the TOKIN acquisition, will be in the range of $80 million to $100 million. The company continues to see robust market demand for products throughout the entire fiscal year. Expectation for fiscal 2019 sales is to grow 4% to 6% over fiscal 2018, with sales growth limited primarily by the variable of how quickly additional capacity will come online. It does expect to see strong cash generation in fiscal 2019.