Kimball reports sales, income for fourth quarterAugust 1, 2013
From local sources
JASPER — Kimball International Inc. (Nasdaq: KBALB) today reported net sales of $318.3 million and net income of $7.1 million, or 18 cents per Class B diluted share, for the fourth quarter of fiscal year 2013, which ended June 30.
Consolidated net sales in the fourth quarter of fiscal year 2013 increased 10 percent from the prior-year fourth quarter on increased net sales in the Electronic Manufacturing Services, or EMS, segment, according to a company news release.
Fourth-quarter gross profit as a percent of net sales declined 1.3 percentage points from the prior-year fourth quarter as the impact of lower margins in the Furniture segment more than offset improved margins in the EMS segment. A sales mix shift toward the EMS segment ,which carries a lower gross profit percent than the Furniture segment, also negatively affected the consolidated gross profit percent.
Consolidated fourth-quarter selling and administrative expenses increased 15 percent in absolute dollars compared to the prior year. The increased costs were primarily due to higher employee incentive compensation costs, higher sales and marketing costs related to growth initiatives, and an allowance recorded for notes receivable.
The company’s effective tax rate for the fourth quarter of fiscal year 2013 was 2.4 percent compared to 33 percent in the prior-year fourth quarter. The current-year fourth-quarter effective tax rate was favorably impacted by a higher mix of earnings from foreign jurisdictions with lower tax rates and by favorable state tax accrual adjustments. Also, the actual annual effective tax rate for fiscal year 2013 ended lower than what the company estimated at the end of the third quarter, which resulted in a favorable year-to-date adjustment in the fourth quarter of fiscal year 2013.
Operating cash flow for the fourth quarter of fiscal year 2013 was cash inflow of $22.5 million
compared to $29 million in the fourth quarter of the prior year.
The company’s cash and cash equivalents increased to $103.6 million at June 30, compared to $75.2 million at June 30, 2012. Long-term debt including current maturities remained at $300,000.
Fiscal year 2013 annual consolidated net sales of $1.2 billion increased 5 percent from fiscal year 2012 net sales of $1.1 billion. Net income for fiscal year 2013 was $19.9 million, or 52 cents per Class B diluted share, inclusive of $300,000, or 1 cent per Class B diluted share, of after-tax restructuring expense. Net income for fiscal year 2012 was $11.6 million, or 31 cents per Class B diluted share, inclusive of $2.1 million, or 6 cents per Class B diluted share, of after-tax restructuring expense. Operating cash flow for fiscal year 2013 was $63.9 million compared to $59 million in the prior fiscal year.
President and CEO James C. Thyen said, “One of the top priorities for our EMS segment coming into fiscal year 2013 was growth and diversification of our customer base. The team’s intense focus throughout the year resulted in extraordinary execution around this strategy as evidenced by a 17 percent sales increase in the EMS segment for the fourth quarter when compared to last year. The growth came from both existing customers and new customers and within all four of the vertical markets in which we compete. We are pleased with the accomplishments our EMS team achieved over the past year and look forward to continued success in fiscal year 2014.”
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