Methode's second quarter sales increased 17% to nearly $301 million.
Our net income increased 62%, and our diluted earnings per share increased 60%.
The $301 million in net sales, as well as our $45 million in income from operations, were both records for Methode.
The resulting operating income margin was 15%.
The Automotive segment sales for the quarter were also a record at $216 million.
Sales for EV applications were over 9% of our total consolidated sales.
We also saw continued strength for EV bookings during the quarter with the annual expected sales from those awards totaling over $28 million.
The awards identified here represent a cross-section of the business wins in the quarter and represent over $40 million in the annual business.
In vehicle electrification, we won awards for ambient and functional lighting, overhead console and busbar programs totaling over $28 million annually.
Of note, in the first half of the fiscal year, Methode booked awards approximately $100 million in annual sales.
Additional content in an EV could range from 20% to over 100% above our current content on internal combustion vehicle.
The more recent plan resulted in over 7% annual EBITDA growth, and our new plan targets just under 8% annual growth.
While we always have to contend with programs going end of life, and we may exit businesses for strategic reasons, we are confident that we have a path via organic growth, operational improvements and acquisitions to achieve the target of $300 million in EBITDA in fiscal year 2025.
Second quarter sales increased 17% or $43.6 to $300.8 million in fiscal '21 from $257.2 million in fiscal '20.
The year-over-year quarterly comparisons benefited from the $32 million impact of the UAW strike on General Motors in the second quarter of fiscal '20.
In addition, the favorable impact of foreign currency on sales was $6.5 million in the current quarter.
Second quarter net income increased $14.8 million to $38.6 million, or $1.01 per diluted share, from $23.8 million or $0.63 per diluted share in the same period last year.
In addition to the flow-through from higher sales and leveraging of SG&A expenses, second quarter net income also benefited from other income from foreign governmental COVID-19 assistance of $3.3 million, partially offset by $4.2 million of restructuring costs.
Fiscal '21 second quarter margins were 26.9% as compared to 26.7% in the second quarter of fiscal '20.
From a sales growth perspective, segment growth mix was unfavorable as a 4% increase in sales in the highest margin industrial segment was partially muted by the 19.8% and 37.8% increases in the automotive and interface segments, respectively.
The fiscal '21 second quarter gross margins included $2.7 million of restructuring expense and the second quarter of fiscal '20 gross margins included $200,000 of restructuring costs.
Second quarter selling and administrative expenses as a percentage of sales decreased 270 basis points year-over-year or 10.2% compared to 12.9% in the fiscal '20 second quarter.
The fiscal '21 second quarter figure was attributable to leverage gained from increased sales, lower stock-based compensation expense, lower wages and associated benefits due to the COVID-related salary reduction and shorter work weeks, and much lower travel expense, partially offset by restructuring expense of $1.5 million.
There was $300,000 of restructuring expense in the second quarter of fiscal '20.
The company currently expects an additional restructuring expense of $700,000 in fiscal '21 resulting from the second quarter actions.
Net income was $38.6 million in the second quarter of fiscal '21 as opposed to $23.8 million in the second quarter of fiscal '20.
The main drivers between the fiscal periods were higher sales, receipt of $3.3 million of foreign government assistance due to COVID, lower selling and administrative expenses, partially offset by higher restructuring costs.
Fiscal '21 second quarter EBITDA was $60.2 million versus $43.6 million in the same period last year.
In the second quarter of fiscal '21, we invested approximately $3.6 million in capex as compared to $13.6 million in the second quarter of fiscal '20.
The fiscal '21 year-to-date second quarter investment represents an approximately $30 million run rate for the current fiscal year.
Income tax expense in the second quarter of fiscal '21 was $7.6 million as compared to a tax expense of $5.2 million in the second quarter of fiscal '20.
The fiscal '21 second quarter tax rate was 16.5% as compared to 17.9% in the same period last fiscal year.
We deleveraged gross debt by $2.2 million in the second quarter.
Since our acquisition of Grakon in September of 2018, when adjusting for the $100 million precautionary credit facility draw in March of 2020, we have reduced gross debt by $110 million.
Net debt decreased by $29.5 million in the second quarter of fiscal '21 as compared to the fiscal '20 year-end from $134.8 million, to $105.3 million.
We ended the second quarter with $242.3 million in cash, which includes the $100 million precautionary draw on the credit facility in March.
In November, we repaid $50 million of the March precautionary draw, and we'll continue to evaluate the landscape in the third quarter and may pay down the precautionary draw even further.
Our debt to trailing 12 months EBITDA ratio, which is used for our bank covenants, is approximately 1.7.
This figure includes the impact of the precautionary $100 million draw we initiated in March.
Without the draw, the ratio would have been approximately 1.2.
Our net debt to trailing 12 months EBITDA ratio was a strong 0.5.
For the fiscal '21 second quarter, free cash flow was $36.7 million as compared to $35.1 million in the second quarter of fiscal '20.
Please note that the third quarter of fiscal '21 contains 13 work weeks, whereas the third quarter of fiscal '20 had 14 work weeks.
The revenue range for the third quarter is between $265 million and $285 million.
Diluted earnings per share range is between $0.69 and $0.85 per share.

Summary:
Second quarter sales increased 17% or $43.6 to $300.8 million in fiscal '21 from $257.2 million in fiscal '20.
Second quarter net income increased $14.8 million to $38.6 million, or $1.01 per diluted share, from $23.8 million or $0.63 per diluted share in the same period last year.
The revenue range for the third quarter is between $265 million and $285 million.
Diluted earnings per share range is between $0.69 and $0.85 per share.