Kimball announces first-quarter earnings, salesNovember 5, 2013
From local sources
JASPER — Kimball International Inc. (Nasdaq: KBALB) today reported net sales of $317.4 million and net income of $9.2 million, or 24 cents per Class B diluted share, for the first quarter of fiscal year 2014, which ended Sept. 30.
Consolidated net sales in the first quarter of fiscal year 2014 increased 10 percent from the prior-year first quarter on increased net sales in both the Electronic Manufacturing Services, or EMS, segment and the Furniture segment, according to a company news release.
First-quarter gross profit as a percent of net sales increased 0.1 of a percentage point from the prior-year first quarter. A slight decline in the gross profit percentage in both segments was more than offset by the favorable impact of a sales mix shift toward the Furniture segment, which carries a higher margin.
Consolidated selling and administrative expenses in the first quarter of fiscal year 2014 increased 12 percent in absolute dollars compared to the prior year. The increased costs were due primarily to higher incentive compensation costs, increased salary costs, higher sales and marketing costs, and higher commissions related to increased sales in the Furniture segment. In addition, the company classified one of its three aircraft as held for sale during the first quarter of fiscal year 2014 and recorded a $1.2 million pre-tax impairment charge ($700,000 after-tax impact).
Other general income in the first quarter of fiscal year 2014 included $5 million of pre-tax income resulting from settlement proceeds related to two antitrust class action lawsuits of which the company was a member. The class actions alleged the defendant sellers illegally conspired to fix prices of electronic components purchased several years ago by some of Kimball’s manufacturing facilities in the EMS segment.
Other income for the first quarter of fiscal year 2014 was income of $1 million compared to income of $300,000 in the first quarter of the prior year.
The company’s effective tax rate for the first quarter of fiscal year 2014 was 28 percent compared to 31 percent in the first quarter of the prior year. The current-year first-quarter effective tax rate was favorably impacted by a $500,000 adjustment to the company’s deferred tax asset valuation allowance in the EMS segment.
Operating cash flow for the first quarter of fiscal year 2014 was $16 million compared to $9.5 million in the first quarter of the prior year.
The company’s cash and cash equivalents increased to $109.6 million at Sept. 30, 2013, compared to $103.6 million at June 30, 2013. The company had no short-term borrowings outstanding at either date. Long-term debt including current maturities was $300,000 million at Sept. 30.
Kimball President and CEO James C. Thyen said, “Our operating performance in the Furniture segment in the first quarter reflects increased demand, the effective execution of our strategy and the commitment of our entire Furniture team to improve results. Our Furniture segment returned to profitability in the first quarter, after recording losses for the second half of last fiscal year. Our focus on accelerating top-line growth in the Furniture segment was evident in the first quarter as the orders received during the quarter increased 18 percent over the prior-year first quarter. Overall, we are pleased with the progress being made in the Furniture segment.”
Thyen continued, “In the EMS segment, the automotive end market is benefiting from relative strength in the U.S. market and improvement in the Chinese market which contributed to a double-digit increase in our first-quarter sales to the automotive market compared to last year.
Industrial market demand is also improving. While first-quarter sales increased over the prior -year first quarter in this segment, sales were down compared to the third and fourth quarters of fiscal year 2013 when we surpassed our 4 percent operating goal. The lower absorption of our fixed costs as a result of the lower revenue was the primary driver for missing our 4 percent operating income goal in the first quarter.”
Contact The Herald at email@example.com.
More on DuboisCountyHerald.com
Indiana Conservation Officers are investigating a weekend fall from a tree stand that resulted...
Jason McCoy and his son, Harrison, prepared logs for construction at the Dubois County Museum on...
Sandra L. Morton of Jasper announced her intention Monday to run for Dubois County auditor in...
Ashley Schaus and her younger sister, Hannah, are inseparable. When Will Seaton proposed to...
A Jasper couple was arrested and accused of felony theft Thursday after their alleged victim...
Hoosier Hills Credit Union recently welcomed Jason Hagen as the new vice president of operations...
A 30-year-old pizza place employee was placed under arrest today for allegedly stealing more...
Fire reduced the historic Koerner Commercial Block that was built in the 1890s to rubble Thursday.