Methode's first quarter sales decreased 29.3%.
Our net income decreased 26.9%.
And our diluted earnings per share decreased 28% for the fiscal quarter ended August 1st of 2020.
The resulting decremental net income margin of 10% was helped by cost reductions and operational efficiency initiatives.
The net income in the quarter was also aided by discrete tax benefit of $7.8 million.
Adding back the discrete tax benefit, the decremental net income margin would have been 19%.
We received award of a total annual expected sales of approximately $30 million.
Operationally, we took significant S&A cost saving actions in the quarter to help mitigate the impact from the pandemic despite incurring $1.5 million in S&A restructuring costs, S&A expenses were reduced by $5.8 million year-over-year.
The awards identified here represent a cross-section of the business wins in the quarter and represent over $36 million in annual business.
In electric vehicles, we won awards for lighting, overhead console and busbar programs totaling over $22 million annually.
In hybrid vehicles, we were awarded lead frame and busbar programs totaling approximately $9 million annually.
Looking forward, we're only providing sales guidance and only for our fiscal 2021 second quarter due to the market risk and uncertainty from the ongoing pandemic.
First quarter sales decreased 29.3% or $79.3 million to $190.9 million in fiscal '21 from $270.2 million in fiscal '20.
First quarter net income decreased $7.6 million to $20.7 million or $0.54 per share from $28.3 million or $0.75 per share in the same period last year.
First quarter net income benefited from a discrete tax benefit of $7.8 million and higher other income of $3.4 million, primarily due to COVID-19 assistance of $2.9 million.
The sales drivers from fiscal '20 first quarter to fiscal '21 first quarter were a net $92 million sales reduction due to the impact of COVID and other lower volumes, partially offset by $14 million of new launches.
Foreign currency translation reduced sales by $1 million.
Product mix was also unfavorable as 26.6% decrease in sales in the higher-margin industrial segment negatively impacted consolidated gross margins.
Fiscal '21 first quarter margins were 23.6% as compared to 28.1% in the first quarter of fiscal '20.
The fiscal '21 first quarter margins included $1.9 million of restructuring expense.
Without the restructuring expense, fiscal '21 first quarter gross margins would have been 24.6%.
First quarter selling and administrative expenses as a percentage of sales increased 190 basis points year-over-year to 13.9% compared to 12% in the fiscal '20 first quarter.
The fiscal '21 first quarter figure was attributable to decreased sales and restructuring expense of $1.5 million, partially offset by lower stock-based compensation expense, lower wages and associated benefits due to salary reductions and four-day work weeks and much lower travel expense.
Without the $1.5 million of restructuring expense, the selling and administrative expense as a percentage of sales for the first quarter of fiscal '21 would have been 13.1%.
In addition to the $3.4 million incurred in the first quarter from actions taken in the first quarter, the company currently expects an additional expense of $2 million in the second quarter from those first quarter actions.
Net income was $20.7 million in the first quarter of fiscal '21 as opposed to $28.3 million in the first quarter of fiscal '20.
The main drivers between the fiscal years were lower sales due to COVID, a favorable change in discrete tax items of $9.1 million, an unfavorable change in restructuring expense of $3.4 million and the receipt of $2.9 million of foreign government assistance due to COVID.
Shifting to EBITDA, a non-GAAP financial measure, fiscal first quarter '21 EBITDA was $29.3 million versus $50.3 million in the same period last year.
EBITDA was negatively impacted by the significant headwinds from the COVID-19 pandemic and included $3.4 million of restructuring expense.
Year-over-year depreciation and intangible asset amortization expense increased slightly in the first quarter of fiscal '21 to $12.1 million from $11.8 million in the first quarter of fiscal '20.
In the first quarter of fiscal '21, we invested approximately $11.6 million of capex as compared to $13.2 million in the first quarter of fiscal '20.
The first quarter investment represents an approximate $45 million run rate for the current fiscal year, but it is too early to tell if the rate will be maintained throughout the remainder of the year.
We had an income tax benefit of $5.1 million as compared to a tax expense of $7.3 million in the fiscal '20 first quarter.
The main driver of the benefit in fiscal '21 was $7.8 million of discrete tax items recorded during the quarter, mainly due to investment tax credits and other credits earned in foreign jurisdictions.
In the fiscal first quarter of '20 -- fiscal year '20, there was a discrete tax expense of $1.3 million.
Without the discrete tax items, the fiscal '21 first quarter effective tax rate would have been 17.2% as compared to 16.6% in the same period last year.
As shown on Slide 12, we did leverage gross debt by $2.3 million in the first quarter.
Since our acquisition of Grakon when adjusting for the $100 million precautionary credit facility draw in March of 2020, we have reduced gross debt by nearly $108 million.
Net debt increased by $4 million in the first quarter of fiscal '21 as compared to the fiscal '20 year end.
We ended the first quarter with $211 million in cash, which includes $100 million precautionary draw on the credit facility in March.
Our debt-to-EBITDA ratio, which is used for our bank covenants, is approximately 1.9.
This figure includes the impact of the precautionary $100 million draw.
Without the draw, the ratio would have been approximately 1.3.
For the fiscal '21 first quarter, free cash flow was $4.8 million as compared to $5.9 million in fiscal '20.
The revenue range for the second quarter will be between $230 million and $250 million.

Summary:
Looking forward, we're only providing sales guidance and only for our fiscal 2021 second quarter due to the market risk and uncertainty from the ongoing pandemic.
First quarter sales decreased 29.3% or $79.3 million to $190.9 million in fiscal '21 from $270.2 million in fiscal '20.
First quarter net income decreased $7.6 million to $20.7 million or $0.54 per share from $28.3 million or $0.75 per share in the same period last year.
The revenue range for the second quarter will be between $230 million and $250 million.