Kimball International, Inc. (NASDAQ: KBAL) today announced results
for the fourth quarter and fiscal year ended June 30, 2022.
Selected Financial Highlights:
Fourth Quarter FY 2022
- Net sales of $176.9 million, up 21% year-over-year
- Gross margin expanded 370 basis points to 34.3%
- Net income of $4.4 million; Adjusted net income of $9.0
million
- Diluted EPS of $0.12; Adjusted diluted EPS was $0.24
- Adjusted EBITDA of $13.6 million, up $10.7 million
year-over-year
- Backlog of $175.6 million
Management Commentary
CEO Kristie Juster commented, “We delivered a
strong finish to fiscal 2022, which was in line with our
expectations and reflected the positive momentum in our business
that is continuing into fiscal 2023. Demand remained strong in our
key Workplace and Health markets, where fourth quarter sales
increased 33% year-on-year and represented 88% of fourth quarter
revenues, led by our Commercial and Education verticals. This
strong sales performance together with pricing initiatives taken to
offset inflationary pressures and ongoing cost savings resulted in
a substantial increase in profitability.
“Our ancillary product portfolio, which
accounted for 87% of full year sales, is resonating in the market
and continues to differentiate the Kimball International offering
as it is designed to attract workers back to offices and
accommodate their flexibility, customization and privacy needs.
Also, over 75% of fiscal 2022 shipments were to secondary
geographies, where the return-to-office has advanced more rapidly
than in major metropolitan areas, and which continue to see
population gains, especially post-pandemic.
“Poppin sales returned to pre-pandemic levels
and reflected strong demand across its product portfolio and
markets, including our recently opened showrooms in Miami, Austin
and Atlanta, as well as our integrated cross-sell channel through
the Kimball International dealer network. Poppin is an essential
part of our long-term value creation, and we look forward to
further unleashing its full contribution.”
Overview
Fourth Quarter Fiscal 2022 Results
Consolidated net sales increased 21% to $176.9
million from the year ago quarter, driven by double-digit growth of
Workplace and Health end markets, which included a strong
contribution from the Poppin business. Gross margin increased 370
basis points year-over-year to 34.3%, resulting from price
increases to offset raw material inflation and operational
excellence savings. Selling and administrative expenses (S&A)
of $51.4 million declined year-over-year as a percentage of total
net sales by 470 basis points to 29.0% in the fourth quarter of
fiscal 2022. Adjusted S&A was $51.4 million, or 29.1% of net
sales, compared to $46.5 million, or 31.8% of net sales, in last
year’s fourth quarter. Net income was $4.4 million, or $0.12 per
diluted share, inclusive of $4.7 million, or $0.12 per share in
restructuring charges, compared to $7.4 million or $0.20 per
diluted share in the year ago quarter. Adjusted net income was $9.0
million, or $0.24 per diluted share, up from net loss of $0.9
million, or $(0.02) per diluted share in the fourth quarter of
fiscal 2021. Adjusted EBITDA was $13.6 million compared to $2.9
million in the year ago quarter.
Fiscal Year 2022 Results
Fiscal year 2022 net sales were $665.9 million,
an increase of 17% from $569.0 million in the prior year. Gross
margin of 31.7% reflected raw material inflation, higher freight
and labor costs pressures, which were partially offset by increased
pricing and operational excellence savings, compared to 32.1% in
fiscal 2021. Selling and administrative expenses (S&A) of
$202.3 million declined year-over-year as a percentage of total
revenue by 150 basis points to 30.4% in fiscal 2022. Adjusted
S&A was $196.6 million, or 29.5% of net sales, compared to
$170.6 million, or 30.0% of net sales, in fiscal 2021. Net loss for
fiscal year 2022 was $15.7 million, or $(0.43) per diluted share
inclusive of a $34.1 million non-cash goodwill impairment charge
associated with the Poppin acquisition that was offset partially by
a non-cash contingent earn-out benefit of $17.0 million also
associated with the Poppin acquisition. Fiscal year 2021 net income
was $7.4 million, or $0.20 per diluted share. Adjusted net income
in fiscal 2022 was $12.8 million, or $0.35 per diluted share,
compared to $10.0 million, or $0.27 per diluted share in the prior
year. Fiscal year 2022 adjusted EBITDA was $34.1 million, or 5.1%
of net sales, compared to fiscal year 2021 adjusted EBITDA of $29.7
million, or 5.2% of net sales.
Capital expenditures net of proceeds from the
sale of assets for fiscal year 2022 were $19.7 million. Kimball
International returned $16.3 million to shareholders in the form of
dividends and share repurchases in fiscal 2022.
| Net Sales
by End Market |
|
|
|
|
|
|
| |
Three Months Ended |
|
|
|
Fiscal Year Ended |
|
|
| (Unaudited) |
June 30, |
|
|
|
June 30, |
|
|
| (Amounts in Millions) |
2022 |
|
2021 |
|
% Change |
|
2022 |
|
2021 |
|
% Change |
| Workplace * |
$ |
127.7 |
|
$ |
92.7 |
|
38 |
% |
|
$ |
464.1 |
|
$ |
354.3 |
|
31 |
% |
| Health |
|
28.6 |
|
|
25.1 |
|
14 |
% |
|
|
104.8 |
|
|
97.3 |
|
8 |
% |
| Hospitality |
|
20.6 |
|
|
28.4 |
|
(27 |
%) |
|
|
97.0 |
|
|
117.4 |
|
(17 |
%) |
| Total Net Sales |
$ |
176.9 |
|
$ |
146.2 |
|
21 |
% |
|
$ |
665.9 |
|
$ |
569.0 |
|
17 |
% |
| Orders
Received by End Market |
|
|
|
|
|
|
| |
Three Months Ended |
|
|
|
Fiscal Year Ended |
|
|
| (Unaudited) |
June 30, |
|
|
|
June 30, |
|
|
| (Amounts in Millions) |
2022 |
|
2021 |
|
% Change |
|
2022 |
|
2021 |
|
% Change |
| Workplace * |
$ |
132.7 |
|
$ |
112.2 |
|
18 |
% |
|
$ |
510.5 |
|
$ |
367.5 |
|
39 |
% |
| Health |
|
28.3 |
|
|
29.8 |
|
(5 |
%) |
|
|
114.8 |
|
|
105.7 |
|
9 |
% |
| Hospitality |
|
16.1 |
|
|
16.4 |
|
(2 |
%) |
|
|
84.5 |
|
|
87.1 |
|
(3 |
%) |
| Total Orders |
$ |
177.1 |
|
$ |
158.4 |
|
12 |
% |
|
$ |
709.8 |
|
$ |
560.3 |
|
27 |
% |
* Workplace end market includes education, government,
commercial, and financial vertical markets and eBusiness
Summary and Outlook
“Our second half fiscal 2022 results represented
an inflection point for Kimball International, in which we
demonstrated our ability to convert continued strong demand for our
products into significant revenue growth and manage effectively
through industry-wide inflationary, supply chain and labor issues,
driving a step-change in profitability compared to first half
levels, and resulting in a 570 basis point improvement in Q4
adjusted EBITDA margin year-over-year.
“The alignment of the Kimball International
product portfolio with demand trends has enabled us to gain share
and expand our addressable market, which combined with production
and logistic efficiencies support our expectation for robust
revenue and profit growth in fiscal 2023. We expect revenues to
benefit from both volume growth and previously announced pricing
actions, and profitability gains to result from higher utilization,
favorable mix and operating efficiencies, primarily in the second
half of the fiscal year. Most importantly, our employees represent
a key competitive advantage that sets Kimball International apart.
Their hard work and dedication to designing and delivering top
quality products has been essential to our success to date and
supports our confidence as we move forward on our growth
trajectory,” Ms. Juster concluded.
|
FY 2023 Guidance Ranges |
|
|
Low |
High |
YoY Growth |
|
Revenue |
$750 million |
$780 million |
15% at midpoint |
|
Adjusted EBITDA |
$48 million |
$52 million |
47% at midpoint |
The Company expects fiscal 2023 revenue and adjusted EBITDA to
be weighted somewhat toward the second half of the year, with the
fourth quarter being the strongest. We anticipate first quarter
fiscal 2023 revenue will be similar to fourth quarter fiscal 2022
levels with Adjusted EBITDA tracking slightly lower due to higher
labor and logistics costs and higher LIFO expense.
Non-GAAP Financial Measures
This press release contains non-GAAP financial
measures. A non-GAAP financial measure is a numerical measure of a
company’s financial performance that excludes amounts so as to be
different than the most directly comparable measure calculated and
presented in accordance with Generally Accepted Accounting
Principles (“GAAP”) in the United States in the statements of
income, statements of comprehensive income, balance sheets, or
statements of cash flows of the Company. The non-GAAP financial
measures used within this release are (1) organic net sales,
defined as net sales excluding acquisition-related net sales; (2)
adjusted gross profit; (3) adjusted selling and administrative
expense; (4) adjusted EBITDA; (5) adjusted operating income; (6)
adjusted net income; and (7) adjusted diluted earnings per share.
Adjusted operating income, adjusted net income, and adjusted
diluted earnings per share each exclude restructuring expense, CEO
transition costs, acquisition-related amortization and inventory
valuation adjustments, goodwill impairment, contingent earn-out
adjustments related to the acquisition, COVID vaccine incentive
costs, a gain on sale of a warehouse, costs of acquisition, and
statutory income tax impacts for taxable after-tax measures, from
the GAAP income measure. Adjusted gross profit excludes
acquisition-related inventory adjustments and COVID vaccine
incentive costs from the GAAP income measure. Adjusted selling and
administrative expense excludes market value adjustments related to
the SERP liability, CEO transition costs, acquisition-related
amortization, costs of acquisition, and COVID vaccine incentive
costs from the GAAP income measure. Additionally, adjusted
operating income excludes market value adjustments related to the
SERP liability. Adjusted EBITDA is defined as earnings before
interest, income taxes, depreciation expense, amortization expense,
restructuring expense, CEO transition costs, acquisition-related
inventory valuation adjustments, costs of acquisition, goodwill
impairment, contingent earn-out adjustments related to the
acquisition, COVID vaccine incentive costs, and a gain on sale of a
warehouse. A reconciliation of the reported GAAP numbers to the
non-GAAP financial measures is included in the Reconciliation of
Non-GAAP Financial Measures table below. Management believes that
Adjusted EBITDA and other metrics excluding restructuring expense,
CEO transition expenses, market value adjustments related to the
SERP liability, COVID vaccine incentive costs, a gain on sale of a
warehouse, and acquisition-related adjustments are useful
measurements to assist investors in comparing our performance over
various reporting periods on a consistent basis by removing from
operating results the impact of items that do not reflect our core
operating performance.
The orders received metric is a key performance
indicator used to evaluate general sales trends and develop future
operating plans. Orders received represent firm orders placed by
our customers during the current quarter which are expected to be
recognized as revenue during current or future quarters. The orders
received metric is not intended to be presented as an alternative
measure of revenue recognized in accordance with GAAP.
Forward-Looking Statements
This document may contain certain
forward-looking statements about the Company, such as discussions
of Company’s pricing trends, liquidity, new business results,
expansion plans, anticipated expenses and planned schedules. The
Company intends such forward-looking statements to be covered by
the safe harbor provisions for forward-looking statements contained
in the Private Securities Litigation Reform Act of 1995. These
statements generally can be identified by the use of words or
phrases, including, but not limited to, “intend,” “anticipate,”
“believe,” “estimate,” “project,” “target,” “plan,” “expect,”
“setting up,” “beginning to,” “will,” “should,” “would,” “resume”
or similar statements. We caution that forward-looking statements
are subject to known and unknown risks and uncertainties that may
cause the Company’s actual future results and performance to differ
materially from expected results including, but not limited to, the
risk that any projections or guidance by the Company, including
revenues, margins, earnings, or any other financial results are not
realized; a shortage of manufacturing labor and related cost;
disruptions in our supply chain and freight channels including
impacts on cost and availability; adverse changes in global
economic conditions; successful execution of the second phase of
the Company’s restructuring plan; significant reduction in customer
order patterns; loss of key suppliers; relationships with strategic
customers and product distributors; changes in the regulatory
environment; global health concerns (including the impact of the
COVID-19 pandemic); or similar unforeseen events. Additional
cautionary statements regarding other risk factors that could have
an effect on the future performance of the Company are contained in
filings made from time to time with the Securities and Exchange
Commission, including but not limited to, our Annual Report on Form
10-K and Quarterly Reports on Form 10-Q.
| Conference
Call / Webcast |
| |
|
|
| Date: |
|
August 4, 2022 |
| Time: |
|
5:00 PM Eastern Time |
| Dial-In #: |
|
800-715-9871 |
| Pass Code: |
|
4129345 |
A webcast of the live conference call may be
accessed by visiting Kimball International’s Investor Relations
website at www.ir.kimballinternational.com.
For those unable to participate in the live
webcast, the call will be archived at
www.ir.kimballinternational.com within two hours of the
conclusion of the live call.
About Kimball International, Inc.
Kimball International is a
leading omnichannel commercial furnishings company with
deep expertise in the Workplace, Health and Hospitality
markets. We combine our bold entrepreneurial spirit, a history
of craftsmanship and today’s design-driven thinking alongside a
commitment to our culture of caring and lasting
connections with our customers, shareholders, employees and
communities.
For over 70 years, our brands
have seized opportunities to customize solutions into
personalized experiences, turning ordinary spaces into meaningful
places. Our family of brands includes Kimball, National,
Etc., Interwoven, Kimball Hospitality, D’style and Poppin.
Kimball International is based in Jasper, Indiana.
www.kimballinternational.com
Financial highlights for the fourth quarter ended June 30,
2022 are as follows:
| Condensed Consolidated
Statements of Income |
|
|
|
|
|
|
|
| (Unaudited) |
Three Months Ended |
| (Amounts in Thousands, except
per share data) |
June 30, 2022 |
|
June 30, 2021 |
|
Net Sales |
$ |
176,946 |
|
|
100.0 |
% |
|
$ |
146,191 |
|
|
100.0 |
% |
| Cost of Sales |
|
116,317 |
|
|
65.7 |
% |
|
|
101,501 |
|
|
69.4 |
% |
| Gross Profit |
|
60,629 |
|
|
34.3 |
% |
|
|
44,690 |
|
|
30.6 |
% |
| Selling and Administrative
Expenses |
|
51,428 |
|
|
29.0 |
% |
|
|
49,196 |
|
|
33.7 |
% |
| Contingent Earn-Out (Gain)
Loss |
|
(1,280 |
) |
|
(0.7 |
%) |
|
|
(11,600 |
) |
|
(7.9 |
%) |
| Restructuring Expense |
|
6,294 |
|
|
3.6 |
% |
|
|
2,254 |
|
|
1.5 |
% |
| Operating Income |
|
4,187 |
|
|
2.4 |
% |
|
|
4,840 |
|
|
3.3 |
% |
| Other Income (Expense),
net |
|
(2,189 |
) |
|
(1.3 |
%) |
|
|
670 |
|
|
0.5 |
% |
| Income Before Taxes on
Income |
|
1,998 |
|
|
1.1 |
% |
|
|
5,510 |
|
|
3.8 |
% |
| Provision (Benefit) for Income
Taxes |
|
(2,356 |
) |
|
(1.4 |
%) |
|
|
(1,887 |
) |
|
(1.3 |
%) |
| Net Income |
$ |
4,354 |
|
|
2.5 |
% |
|
$ |
7,397 |
|
|
5.1 |
% |
| |
|
|
|
|
|
|
|
| Earnings Per Share of Common
Stock: |
|
|
|
|
|
|
|
|
Basic |
$ |
0.12 |
|
|
|
|
$ |
0.20 |
|
|
|
|
Diluted |
$ |
0.12 |
|
|
|
|
$ |
0.20 |
|
|
|
| |
|
|
|
|
|
|
|
| Average Number of Total Shares
Outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
36,827 |
|
|
|
|
|
36,809 |
|
|
|
|
Diluted |
|
36,904 |
|
|
|
|
|
37,157 |
|
|
|
| |
|
|
|
|
|
|
|
| (Unaudited) |
Fiscal Year Ended |
| (Amounts in Thousands, except
per share data) |
June 30, 2022 |
|
June 30, 2021 |
|
Net Sales |
$ |
665,877 |
|
|
100.0 |
% |
|
$ |
569,008 |
|
|
100.0 |
% |
| Cost of Sales |
|
454,571 |
|
|
68.3 |
% |
|
|
386,580 |
|
|
67.9 |
% |
| Gross Profit |
|
211,306 |
|
|
31.7 |
% |
|
|
182,428 |
|
|
32.1 |
% |
| Selling and Administrative
Expenses |
|
202,291 |
|
|
30.4 |
% |
|
|
181,780 |
|
|
31.9 |
% |
| Other General (Income)
Expense |
|
(4,523 |
) |
|
(0.7 |
%) |
|
|
0 |
|
|
0.0 |
% |
| Contingent Earn-Out (Gain)
Loss |
|
(17,030 |
) |
|
(2.6 |
%) |
|
|
(11,600 |
) |
|
(2.0 |
%) |
| Restructuring Expense |
|
10,489 |
|
|
1.6 |
% |
|
|
10,727 |
|
|
1.9 |
% |
| Goodwill Impairment |
|
34,118 |
|
|
5.1 |
% |
|
|
0 |
|
|
0.0 |
% |
| Operating Income (Loss) |
|
(14,039 |
) |
|
(2.1 |
%) |
|
|
1,521 |
|
|
0.3 |
% |
| Other Income (Expense),
net |
|
(3,381 |
) |
|
(0.5 |
%) |
|
|
3,089 |
|
|
0.5 |
% |
| Income (Loss) Before Taxes on
Income |
|
(17,420 |
) |
|
(2.6 |
%) |
|
|
4,610 |
|
|
0.8 |
% |
| Provision (Benefit) for Income
Taxes |
|
(1,706 |
) |
|
(0.2 |
%) |
|
|
(2,806 |
) |
|
(0.5 |
%) |
| Net Income (Loss) |
$ |
(15,714 |
) |
|
(2.4 |
%) |
|
$ |
7,416 |
|
|
1.3 |
% |
| |
|
|
|
|
|
|
|
| Earnings (Loss) Per Share of
Common Stock: |
|
|
|
|
|
|
|
|
Basic |
$ |
(0.43 |
) |
|
|
|
$ |
0.20 |
|
|
|
|
Diluted |
$ |
(0.43 |
) |
|
|
|
$ |
0.20 |
|
|
|
| |
|
|
|
|
|
|
|
| Average Number of Total Shares
Outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
36,798 |
|
|
|
|
|
36,901 |
|
|
|
|
Diluted |
|
36,798 |
|
|
|
|
|
37,372 |
|
|
|
| |
(Unaudited) |
|
|
| Condensed Consolidated
Balance Sheets |
June 30,2022 |
|
June 30,2021 |
| (Amounts in Thousands) |
|
| ASSETS |
|
|
|
|
Cash and cash equivalents |
$ |
10,934 |
|
$ |
24,336 |
|
Receivables, net |
|
79,301 |
|
|
58,708 |
|
Inventories |
|
97,969 |
|
|
54,291 |
|
Prepaid expenses and other current assets |
|
30,937 |
|
|
22,012 |
|
Property and Equipment, net |
|
96,970 |
|
|
90,623 |
|
Right of use operating lease assets |
|
12,839 |
|
|
14,654 |
|
Goodwill |
|
47,844 |
|
|
81,962 |
|
Other Intangible Assets, net |
|
54,767 |
|
|
64,478 |
|
Deferred Tax Assets |
|
14,472 |
|
|
16,368 |
|
Other Assets |
|
15,245 |
|
|
17,163 |
|
Total Assets |
$ |
461,278 |
|
$ |
444,595 |
| |
|
|
|
| LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
|
Current maturities of long-term debt |
|
33 |
|
|
30 |
|
Accounts payable |
|
70,936 |
|
|
41,537 |
|
Customer deposits |
|
29,706 |
|
|
24,438 |
|
Current portion of operating lease liability |
|
6,096 |
|
|
6,590 |
|
Dividends payable |
|
3,623 |
|
|
3,532 |
|
Accrued expenses |
|
41,088 |
|
|
39,115 |
|
Long-term debt, less current maturities |
|
68,046 |
|
|
40,079 |
|
Long-term operating lease liability |
|
12,150 |
|
|
12,536 |
|
Long-term earn-out liability |
|
3,160 |
|
|
20,190 |
|
Other |
|
12,904 |
|
|
16,878 |
|
Shareholders’ Equity |
|
213,536 |
|
|
239,670 |
|
Total Liabilities and Shareholders’ Equity |
$ |
461,278 |
|
$ |
444,595 |
| Condensed Consolidated
Statements of Cash Flows |
Fiscal Year Ended |
| (Unaudited) |
June 30, |
| (Amounts in Thousands) |
2022 |
|
2021 |
|
Net Cash Flow (used for) provided by Operating Activities |
$ |
(4,573 |
) |
|
$ |
27,294 |
|
| Net Cash Flow used for
Investing Activities |
|
(19,863 |
) |
|
|
(115,984 |
) |
| Net Cash Flow provided by
Financing Activities |
|
10,705 |
|
|
|
21,973 |
|
| Net Decrease in Cash, Cash
Equivalents, and Restricted Cash |
|
(13,731 |
) |
|
|
(66,717 |
) |
| Cash, Cash Equivalents, and
Restricted Cash at Beginning of Period |
|
25,727 |
|
|
|
92,444 |
|
| Cash, Cash Equivalents, and
Restricted Cash at End of Period |
$ |
11,996 |
|
|
$ |
25,727 |
|
| Reconciliation of
Non-GAAP Financial Measures |
|
|
|
|
|
|
|
| (Unaudited) |
|
|
|
|
|
|
|
| (Amounts in Thousands, except
per share data) |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| Organic
Net Sales |
|
|
|
|
| |
Three Months Ended |
|
Fiscal Year Ended |
| |
June 30, |
|
June 30, |
| |
2022 |
|
2021 |
|
2022 |
|
2021 |
|
Net Sales, as reported |
$ |
176,946 |
|
$ |
146,191 |
|
$ |
665,877 |
|
$ |
569,008 |
| Less: Poppin acquisition net
sales(1) |
|
0 |
|
|
0 |
|
|
28,718 |
|
|
2,678 |
| Organic Net Sales |
$ |
176,946 |
|
$ |
146,191 |
|
$ |
637,159 |
|
$ |
566,330 |
(1) Poppin was acquired on December 9, 2020 and
for fiscal years 2022 and 2021, organic net sales exclude Poppin
acquisition net sales for the fiscal year-to-date periods ended
December 31, 2021 and 2020.
| Adjusted
Gross Profit |
|
|
|
|
| |
Three Months Ended |
|
Fiscal Year Ended |
| |
June 30, |
|
June 30, |
| |
2022 |
|
2021 |
|
2022 |
|
2021 |
|
Gross Profit, as reported |
$ |
60,629 |
|
|
$ |
44,690 |
|
|
$ |
211,306 |
|
|
$ |
182,428 |
|
| Add: Pre-tax COVID vaccine
incentive |
|
0 |
|
|
|
0 |
|
|
|
1,569 |
|
|
|
0 |
|
| Add: Pre-tax
Acquisition-related Inventory Valuation Adjustment |
|
29 |
|
|
|
247 |
|
|
|
282 |
|
|
|
536 |
|
| Adjusted Gross Profit |
$ |
60,658 |
|
|
$ |
44,937 |
|
|
$ |
213,157 |
|
|
$ |
182,964 |
|
| Adjusted Gross Profit % |
|
34.3 |
% |
|
|
30.7 |
% |
|
|
32.0 |
% |
|
|
32.2 |
% |
| |
|
|
|
|
|
|
|
| Adjusted
Selling and Administrative Expense |
|
|
|
|
| |
Three Months Ended |
|
Fiscal Year Ended |
| |
June 30, |
|
June 30, |
| |
2022 |
|
2021 |
|
2022 |
|
2021 |
| Selling and Administrative
Expense, as reported |
$ |
51,428 |
|
|
$ |
49,196 |
|
|
$ |
202,291 |
|
|
$ |
181,780 |
|
| Less: Pre-tax Expense
Adjustment to SERP Liability |
|
1,622 |
|
|
|
(757 |
) |
|
|
1,922 |
|
|
|
(3,324 |
) |
| Less: Pre-tax CEO Transition
Costs |
|
0 |
|
|
|
(141 |
) |
|
|
0 |
|
|
|
(564 |
) |
| Less: Pre-tax
Acquisition-related Amortization |
|
(1,610 |
) |
|
|
(1,671 |
) |
|
|
(6,440 |
) |
|
|
(3,737 |
) |
| Less: Pre-tax Costs of
Acquisition |
|
0 |
|
|
|
(144 |
) |
|
|
0 |
|
|
|
(3,579 |
) |
| Less: Pre-tax COVID Vaccine
incentive |
|
0 |
|
|
|
0 |
|
|
|
(1,140 |
) |
|
|
0 |
|
| Adjusted Selling and
Administrative Expense |
$ |
51,440 |
|
|
$ |
46,483 |
|
|
$ |
196,633 |
|
|
$ |
170,576 |
|
| Adjusted Selling and
Administrative Expense % |
|
29.1 |
% |
|
|
31.8 |
% |
|
|
29.5 |
% |
|
|
30.0 |
% |
| Adjusted
Operating Income (Loss) |
|
|
|
|
| |
Three Months Ended |
|
Fiscal Year Ended |
| |
June 30, |
|
June 30, |
| |
2022 |
|
2021 |
|
2022 |
|
2021 |
|
Operating Income (Loss), as reported |
$ |
4,187 |
|
|
$ |
4,840 |
|
|
$ |
(14,039 |
) |
|
$ |
1,521 |
|
| Add: Pre-tax Restructuring
Expense |
|
6,294 |
|
|
|
2,254 |
|
|
|
10,489 |
|
|
|
10,727 |
|
| Add: Pre-tax Goodwill
Impairment |
|
0 |
|
|
|
0 |
|
|
|
34,118 |
|
|
|
0 |
|
| Add: Pre-tax Other General
(Income) Expense(2) |
|
0 |
|
|
|
0 |
|
|
|
(4,523 |
) |
|
|
0 |
|
| Add: Pre-tax Expense
Adjustment to SERP Liability |
|
(1,622 |
) |
|
|
757 |
|
|
|
(1,922 |
) |
|
|
3,324 |
|
| Add: Pre-tax CEO Transition
Costs |
|
0 |
|
|
|
141 |
|
|
|
0 |
|
|
|
564 |
|
| Add: Pre-tax
Acquisition-related Amortization |
|
1,610 |
|
|
|
1,671 |
|
|
|
6,440 |
|
|
|
3,737 |
|
| Add: Pre-tax
Acquisition-related Inventory Valuation Adjustment |
|
29 |
|
|
|
247 |
|
|
|
282 |
|
|
|
536 |
|
| Add: Pre-tax Costs of
Acquisition |
|
0 |
|
|
|
144 |
|
|
|
0 |
|
|
|
3,579 |
|
| Add: Pre-tax Contingent
Earn-Out (Gain) Loss |
|
(1,280 |
) |
|
|
(11,600 |
) |
|
|
(17,030 |
) |
|
|
(11,600 |
) |
| Add: Pre-tax COVID vaccine
incentive |
|
0 |
|
|
|
0 |
|
|
|
2,709 |
|
|
|
0 |
|
| Adjusted Operating Income
(Loss) |
$ |
9,218 |
|
|
$ |
(1,546 |
) |
|
$ |
16,524 |
|
|
$ |
12,388 |
|
| Adjusted Operating Income
(Loss) % |
|
5.2 |
% |
|
|
(1.1% |
) |
|
|
2.5 |
% |
|
|
2.2 |
% |
| |
|
|
|
|
|
|
|
| Adjusted
Net Income (Loss) |
|
|
|
|
| |
Three Months Ended |
|
Fiscal Year Ended |
| |
June 30, |
|
June 30, |
| |
2022 |
|
2021 |
|
2022 |
|
2021 |
|
Net Income (Loss), as reported |
$ |
4,354 |
|
|
$ |
7,397 |
|
|
$ |
(15,714 |
) |
|
$ |
7,416 |
|
| |
|
|
|
|
|
|
|
| Pre-tax Restructuring
Expense |
|
6,294 |
|
|
|
2,254 |
|
|
|
10,489 |
|
|
|
10,727 |
|
| Tax on Restructuring
Expense |
|
(1,620 |
) |
|
|
(580 |
) |
|
|
(2,699 |
) |
|
|
(2,761 |
) |
|
Add: After-tax Restructuring Expense |
|
4,674 |
|
|
|
1,674 |
|
|
|
7,790 |
|
|
|
7,966 |
|
| Pre-tax Goodwill
Impairment |
|
0 |
|
|
|
0 |
|
|
|
34,118 |
|
|
|
0 |
|
| Tax on Goodwill
Impairment |
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
Add: After-tax Goodwill Impairment |
|
0 |
|
|
|
0 |
|
|
|
34,118 |
|
|
|
0 |
|
| Pre-tax Other General (Income)
Expense(2) |
|
0 |
|
|
|
0 |
|
|
|
(4,523 |
) |
|
|
0 |
|
| Tax on Other General (Income)
Expense |
|
0 |
|
|
|
0 |
|
|
|
1,164 |
|
|
|
0 |
|
|
Add: After-tax Other General (Income) Expense |
|
0 |
|
|
|
0 |
|
|
|
(3,359 |
) |
|
|
0 |
|
| Pre-tax CEO Transition
Costs |
|
0 |
|
|
|
141 |
|
|
|
0 |
|
|
|
564 |
|
| Tax on CEO Transition
Costs |
|
0 |
|
|
|
(36 |
) |
|
|
0 |
|
|
|
(144 |
) |
|
Add: After-tax CEO Transition Costs |
|
0 |
|
|
|
105 |
|
|
|
0 |
|
|
|
420 |
|
| Pre-tax Acquisition-related
Amortization |
|
1,610 |
|
|
|
1,671 |
|
|
|
6,440 |
|
|
|
3,737 |
|
| Tax on Acquisition-related
Amortization |
|
(414 |
) |
|
|
(430 |
) |
|
|
(1,658 |
) |
|
|
(962 |
) |
|
Add: After-tax Acquisition-related Amortization |
|
1,196 |
|
|
|
1,241 |
|
|
|
4,782 |
|
|
|
2,775 |
|
| Pre-tax Acquisition-related
Inventory Valuation Adjustment |
|
29 |
|
|
|
247 |
|
|
|
282 |
|
|
|
536 |
|
| Tax on Acquisition-related
Inventory Valuation Adjustment |
|
(7 |
) |
|
|
(64 |
) |
|
|
(73 |
) |
|
|
(139 |
) |
|
Add: After-tax Acquisition-related Inventory Adjustment |
|
22 |
|
|
|
183 |
|
|
|
209 |
|
|
|
397 |
|
| Pre-tax Costs of
Acquisition |
|
0 |
|
|
|
144 |
|
|
|
0 |
|
|
|
3,579 |
|
| Tax on Costs of
Acquisition |
|
0 |
|
|
|
(37 |
) |
|
|
0 |
|
|
|
(921 |
) |
|
Add: After-tax Costs of Acquisition |
|
0 |
|
|
|
107 |
|
|
|
0 |
|
|
|
2,658 |
|
| Pre-tax Contingent Earn-Out
(Gain) Loss |
|
(1,280 |
) |
|
|
(11,600 |
) |
|
|
(17,030 |
) |
|
|
(11,600 |
) |
| Tax on Contingent Earn-Out
(Gain) Loss |
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
|
Add: After-tax Contingent Earn-Out (Gain) Loss |
|
(1,280 |
) |
|
|
(11,600 |
) |
|
|
(17,030 |
) |
|
|
(11,600 |
) |
| Pre-tax COVID Vaccine
Incentive |
|
0 |
|
|
|
0 |
|
|
|
2,709 |
|
|
|
0 |
|
| Tax on COVID Vaccine
Incentive |
|
0 |
|
|
|
0 |
|
|
|
(697 |
) |
|
|
0 |
|
|
Add: After-tax COVID Vaccine Incentive |
|
0 |
|
|
|
0 |
|
|
|
2,012 |
|
|
|
0 |
|
| Adjusted Net Income
(Loss) |
$ |
8,966 |
|
|
$ |
(893 |
) |
|
$ |
12,808 |
|
|
$ |
10,032 |
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| Adjusted
Diluted Earnings (Loss) Per Share |
|
|
|
|
| |
Three Months Ended |
|
Fiscal Year Ended |
| |
June 30, |
|
June 30, |
| |
2022 |
|
2021 |
|
2022 |
|
2021 |
|
Diluted Earnings (Loss) Per Share, as reported |
$ |
0.12 |
|
|
$ |
0.20 |
|
|
$ |
(0.43 |
) |
|
$ |
0.20 |
|
| Add: After-tax Restructuring
Expense |
|
0.12 |
|
|
|
0.05 |
|
|
|
0.21 |
|
|
|
0.22 |
|
| Add: After-tax CEO Transition
Costs |
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.01 |
|
| Add: After-tax Goodwill
Impairment |
|
0.00 |
|
|
|
0.00 |
|
|
|
0.93 |
|
|
|
0.00 |
|
| Add: After-tax Other General
(Income) Expense(2) |
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.09 |
) |
|
|
0.00 |
|
| Add: After-tax
Acquisition-related Amortization |
|
0.03 |
|
|
|
0.03 |
|
|
|
0.13 |
|
|
|
0.07 |
|
| Add: After-tax
Acquisition-related Inventory Valuation Adjustment |
|
0.00 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.01 |
|
| Add: After-tax Costs of
Acquisition |
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.07 |
|
| Add: After-tax Contingent
Earn-Out (Gain) Loss |
|
(0.03 |
) |
|
|
(0.31 |
) |
|
|
(0.46 |
) |
|
|
(0.31 |
) |
| Add: After-tax COVID Vaccine
Incentive |
|
0.00 |
|
|
|
0.00 |
|
|
|
0.05 |
|
|
|
0.00 |
|
| Adjusted Diluted Earnings
(Loss) Per Share |
$ |
0.24 |
|
|
$ |
(0.02 |
) |
|
$ |
0.35 |
|
|
$ |
0.27 |
|
| Adjusted
EBITDA |
|
|
|
|
| |
|
|
|
|
|
| |
Three Months Ended |
|
Fiscal Year Ended |
| |
June 30, |
|
June 30, |
| |
2022 |
|
2021 |
|
2022 |
|
2021 |
|
Net Income (Loss) |
$ |
4,354 |
|
|
$ |
7,397 |
|
|
$ |
(15,714 |
) |
|
$ |
7,416 |
|
| Provision (Benefit) for Income
Taxes |
|
(2,356 |
) |
|
|
(1,887 |
) |
|
|
(1,706 |
) |
|
|
(2,806 |
) |
| Income (Loss) Before Taxes on
Income |
|
1,998 |
|
|
|
5,510 |
|
|
|
(17,420 |
) |
|
|
4,610 |
|
| Interest Expense |
|
561 |
|
|
|
190 |
|
|
|
1,483 |
|
|
|
453 |
|
| Interest Income |
|
(52 |
) |
|
|
(88 |
) |
|
|
(129 |
) |
|
|
(336 |
) |
| Depreciation |
|
3,676 |
|
|
|
3,675 |
|
|
|
14,496 |
|
|
|
14,511 |
|
| Amortization |
|
2,402 |
|
|
|
2,471 |
|
|
|
9,614 |
|
|
|
6,683 |
|
| Pre-tax Restructuring
Expense |
|
6,294 |
|
|
|
2,254 |
|
|
|
10,489 |
|
|
|
10,727 |
|
| Pre-tax Goodwill
Impairment |
|
0 |
|
|
|
0 |
|
|
|
34,118 |
|
|
|
0 |
|
| Pre-tax Other General (Income)
Expense(2) |
|
0 |
|
|
|
0 |
|
|
|
(4,523 |
) |
|
|
0 |
|
| Pre-tax CEO Transition
Costs |
|
0 |
|
|
|
141 |
|
|
|
0 |
|
|
|
564 |
|
| Pre-tax Acquisition-related
Inventory Valuation Adjustment |
|
29 |
|
|
|
247 |
|
|
|
282 |
|
|
|
536 |
|
| Pre-tax Costs of
Acquisition |
|
0 |
|
|
|
144 |
|
|
|
0 |
|
|
|
3,579 |
|
| Pre-tax Contingent Earn-Out
(Gain) Loss |
|
(1,280 |
) |
|
|
(11,600 |
) |
|
|
(17,030 |
) |
|
|
(11,600 |
) |
| Pre-tax COVID Vaccine
Incentive |
|
0 |
|
|
|
0 |
|
|
|
2,709 |
|
|
|
0 |
|
| Adjusted EBITDA |
$ |
13,628 |
|
|
$ |
2,944 |
|
|
$ |
34,089 |
|
|
$ |
29,727 |
|
| Adjusted EBITDA % |
|
7.7 |
% |
|
|
2.0 |
% |
|
|
5.1 |
% |
|
|
5.2 |
% |
(2) Fiscal year 2022 Other General (Income)
Expense consists of a gain realized on the sale of a warehouse
totaling $4.5 million on a pre-tax basis and $3.4 million on an
after-tax basis.
| Supplementary
Information |
|
|
|
|
|
|
|
| Components of Other
Income (Expense), net |
Three Months Ended |
|
Fiscal Year Ended |
| (Unaudited) |
June 30, |
|
June 30, |
|
(Amounts in Thousands) |
2022 |
|
2021 |
|
2022 |
|
2021 |
|
Interest Income |
$ |
52 |
|
|
$ |
88 |
|
|
$ |
129 |
|
|
$ |
336 |
|
| Interest Expense |
|
(561 |
) |
|
|
(190 |
) |
|
|
(1,483 |
) |
|
|
(453 |
) |
| Gain (Loss) on Supplemental
Employee Retirement Plan Investments |
|
(1,622 |
) |
|
|
757 |
|
|
|
(1,922 |
) |
|
|
3,324 |
|
| Other Non-Operating Income
(Expense) |
|
(58 |
) |
|
|
15 |
|
|
|
(105 |
) |
|
|
(118 |
) |
| Other Income (Expense),
net |
$ |
(2,189 |
) |
|
$ |
670 |
|
|
$ |
(3,381 |
) |
|
$ |
3,089 |
|
For additional information contact:
Chris Kuepper - chris.kuepper@kimballinternational.com Lynn
Morgen - lynn.morgen@advisiry.com Eric Prouty -
eric.prouty@advisiry.com
Kimball International1600 Royal StreetJasper, IN
47546-2256Telephone 812.482.1600
Kimball (NASDAQ:KBAL)
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Kimball (NASDAQ:KBAL)
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