What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2024-10-15 compared with 2023-09-26 · 31 added, 25 removed, 138 unchanged (29% of the section changed)

30 unchanged sentences

Sales can, however, fluctuate significantly between quarters from changes in customers and customer demand due to the concentration of sales generated by our largest customers.

For the fiscal years 2023 and 2022, the five largest customers in each year accounted for 36% and 40% of combined total net sales, respectively.

We continue to diversify our customer base by adding additional programs and customers.

For the fiscal years 2024, 2023, and 2022, the five largest customers in each year accounted for 34 percent, 35 percent, and 39 percent of combined total net sales, respectively.

We aim to diversify our customer base by adding additional programs and customers.

We expect net sales to our five largest customers as a percentage of total net sales to approximate current levels going forward.

The following table summarizes the customers that represented 10% or more of total net sales during the last two fiscal years:

The following table summarizes the customers that represented 10 percent or more of total net sales during the last two fiscal years:

Percentage of Net Sales by Fiscal Year

2024 2023 2022

Customer A 20% 12% 12%

Customer B * * 13%

There can be no assurance that the Company’s principal customers will continue to purchase products from the Company at current levels.

21 unchanged sentences

There are numerous competitors in the contract manufacturing industry, many of which have substantially more resources and are more geographically diverse than we are.

Some of our competitors have similar international production capabilities, large financial resources and some have substantially greater manufacturing, research and development, and marketing resources.

Some of our competitors have similar international production capabilities, large financial resources and some have

substantially greater manufacturing, research and development, and marketing resources.

There is also competition from the manufacturing operations of our current and potential customers, who are continually evaluating the merits of manufacturing their products internally versus the advantages of outsourcing.

7 unchanged sentences

We also maintain share-based compensation plans and other long-term incentive plans for certain employees and outside directors.

As of July 1, 2023, we had 5,447 full-time employees compared to 4,897 on July 2, 2022.

As of June 29, 2024, we had 4,122 full-time employees compared to 5,447 on July 1, 2023.

Since we can have significant fluctuations in product demand, we seek to maintain flexibility in our workforce by utilizing skilled temporary labor in some of our manufacturing facilities in addition to full-time employees.

On July 29, 2023, our order backlog was valued at approximatel y $343.0 million, compared to approximately $407.8 million on July 30, 2022.

On June 29, 2024, our order backlog was valued at approximatel y $249.6 million, compared to approximately $343.0 million on July 1, 2023.

The amount of backlog is not necessarily indicative of future sales but can be indicative of trends in expected future sales revenue.

3 unchanged sentences

Foreign Markets

Information concerning net sales and long-lived assets (property, plant, and equipment) by geographic areas is set forth in Footnote “Enterprise-Wide Disclosures” of the “Notes to Consolidated Financial Statements” of this Annual Report on Form 10-K and that information is incorporated herein by reference.

Information concerning net sales and long-lived assets (property, plant, and equipment) by geographic areas is set forth in Note 11 - “Enterprise-Wide Disclosures” of the “Notes to Consolidated Financial Statements” of this Annual Report on Form 10-K and that information is incorporated herein by reference.

Governmental Regulation

6 unchanged sentences

Executive Officers

Gates 64 President and Chief Executive Officer

Larsen 50 Executive Vice President of Administration, Chief Financial Officer, and Treasurer

Hochberg 61 Executive Vice President of Business Development

Larsen 51 President and Chief Executive Officer

Voorhees 50 Executive Vice President of Administration, Chief Financial Officer, and Treasurer

Hochberg 62 Executive Vice President of Customer Relations and Integration

Mackleit 56 Executive Vice President of Operations

Knaggs 42 Executive Vice President of Quality and Information Systems

Knaggs 43 Executive Vice President of Quality, Regulatory Affairs, and Information Systems

Orebaugh 53 Executive Vice President of Engineering

1 unchanged sentence

Executive Officers

GATES – President and Chief Executive Officer

Gates, age 64, has been President and Chief Executive officer of the Company since April 2009.

Previously, he was Executive Vice President and General Manager from August 2002 to April 2009.

He served as Executive Vice President of Marketing, Engineering and Sales from July 1997 to August 2002 and served as Vice President and General Manager of New Business Development from October 1995 to July 1997.

He joined the Company as Vice President of Engineering in October of 1994.

From 1982 to 1991 he held various engineering and management positions within the Microswitch Division of Honeywell, Inc., in Freeport, Illinois, and from 1991 to October 1994 he served as Director of Operations, Electronics for Microswitch.

Gates has a Bachelor of Science Degree in Mechanical Engineering and a Master’s in Business Administration from the University of Illinois, Urbana.

LARSEN – Executive Vice President of Administration, Chief Financial Officer, and Treasurer

Larsen, age 50, has served as Executive Vice President of Administration, Chief Financial Officer, and Treasurer since July 2015.

Previously, he was Vice President of Finance and Controller from February 2010 to July 2015.

LARSEN – President and Chief Executive Officer

Larsen, age 51, has served as President and Chief Executive Officer since July 2024.

Previously he was the Executive Vice President of Administration, Chief Financial Officer, and Treasurer from July 2015 through June 2024.

He was Vice President of Finance and Controller from February 2010 to July 2015.

He was Chief Financial Officer of FLSmidth Spokane, Inc.

8 unchanged sentences

Larsen has a Bachelor of Science degree in Accounting and a Masters degree in Accounting from Brigham Young University and is a Certified Public Accountant.

HOCHBERG – Executive Vice President of Business Development

Hochberg, age 61, has been Executive Vice President of Business Development since July 2012.

VOORHEES - Executive Vice President of Administration, Chief Financial Officer, and Treasurer

Voorhees, age 50, has served as Executive Vice President of Administration, Chief Financial Officer, and Treasurer since July 2024.

Previously, he was Vice President of Finance and Controller from November 2021 to June 2024, Senior Manager of Corporate Finance from July 2015, and Manager of Financial Reporting since April 2010.

Prior to joining Key Tronic, Mr.

Voorhees worked at Coldwater Creek from August 2007 to March 2010 as a Senior Financial Reporting Accountant.

Prior to that, he worked at Moss Adams, LLP as a Senior Assurance Associate from November 2004 to August 2007.

Between September 2001 and August 2004, Mr.

Voorhees held senior level accounting positions at Boise State University and Idaho State Department of Agriculture.

Voorhees has a bachelor degree in Accounting from the University of Idaho and is a Certified Public Accountant.

HOCHBERG – Executive Vice President of Customer Relations and Integration

Hochberg, age 62, has been Executive Vice President of Customer Relations and Integration since July 2012.

Prior to this, Mr.

17 unchanged sentences

KNAGGS – Executive Vice President of Quality, Regulatory Affairs, and Information Systems

Knaggs, age 42, has been Executive Vice President of Quality and Information Systems since May 2021.

Knaggs, age 43, has been Executive Vice President of Quality, Regulatory Affairs, and Information Systems since May 2021.

Previously, he was Vice President of Quality and Regulatory Affairs from November 2017 to May 2021.

2 unchanged sentences

Knaggs worked at Telect, Inc.

from 2008 to 2016 as their Director of

from 2008 to 2016 as their Director of Engineering.

Prior to that, he worked at Isothermal Systems Research as Lead Systems Engineer from 2003 to 2008.

20 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business