Kimball International, Inc. reports highest earnings in 15 Years

Kimball International, Inc. (NASDAQ: KBAL) announced second quarter fiscal year 2016 net sales of $163.8 million and income from continuing operations of $6.5 million, or $0.17 per diluted share. Adjusted income from continuing operations for the second quarter of fiscal year 2016 was $7.7 million, or $0.21 per diluted share, which excludes charges related to a previously announced restructuring plan.

“We continue to see growth in orders, up 6% on a consolidated basis when compared to the prior year second quarter. Office furniture orders increased 13% compared to last year, while hospitality orders declined mainly due to the receipt of a large, $13.8 million custom order in the second quarter of last year that shipped over several quarters” Bob Schneider, chairman and CEO, stated. “This size order is quite rare. Excluding this large hospitality order, we saw a 27% increase in hospitality orders compared to the prior year second quarter as this industry continues to remodel and expand with new construction. The strength in office furniture orders was driven in part by our renewed focus on design leadership, resulting in recent awards won for our new products. We were recognized with Best of the Year, New Product of the Year, and Readers’ Choice awards for several new products as well as a Best of Year award for the design of our Chicago showroom. We are thrilled that Kimball International brands have been recognized so highly by the design community.”

Schneider added that the earnings this quarter were the highest in the last 15 years. “We reached a 7.5% adjusted pro forma operating income as a percent of net sales. At this earnings level, our return on capital of approximately 22% is among the best of public competitors in the office furniture industry,” he said. “I can’t say enough about the efforts of our employees this past year. It is their dedication and hard work that has resulted in our strong order growth and earnings performance, and prompted us to again raise our earnings guidance.”