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Kimball International Inc. (KBALB) filed Quarterly Report for the period ended 2011-12-31.
Kimball International Inc. has a market cap of $232.2 million; its shares were traded at around $6.13 with a P/E ratio of 47.2 and P/S ratio of 0.2. The dividend yield of Kimball International Inc. stocks is 3.2%.
This is the annual revenues and earnings per share of KBALB over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of KBALB.
Highlight of Business Operations:
Second quarter fiscal year 2012 consolidated net sales were $296.9 million compared to second quarter fiscal year 2011 net sales of $310.6 million, a 4% decrease, driven by a net sales decrease in the EMS segment of 18% which more than offset a net sales increase in the Furniture segment of 15%. In the second quarter of fiscal year 2012 the Company recorded net income of $3.2 million, or $0.09 per Class B diluted share, inclusive of after-tax restructuring charges of $0.9 million, or $0.02 per Class B diluted share primarily related to the EMS segment European consolidation plan. Net income for the second quarter of fiscal year 2011 was $0.9 million, or $0.02 per Class B diluted share, inclusive of $0.2 million, or $0.01 per Class B diluted share of after-tax restructuring charges.Net sales for the six-month period ended December 31, 2011 of $567.5 million declined 6% from net sales of $605.3 million for the same period of the prior fiscal year due to a 19% net sales decrease in the EMS segment which more than offset a 12% net sales increase in the Furniture segment. Net income for the six-month period ended December 31, 2011 totaled $3.1 million, or $0.08 per Class B diluted share, inclusive of $1.0 million, or $0.03 per Class B diluted share, of after-tax restructuring charges primarily related to the EMS segment European consolidation plan. Net income for the six-month period ended December 31,
Consolidated selling and administrative expenses for the first half of fiscal year 2012 decreased 2% in absolute dollars but increased as a percent of net sales compared to the first half of fiscal year 2011, as sales volumes decreased at a quicker rate than the selling and administrative expenses. During the first half of fiscal year 2012, the Company recorded $0.9 million of income compared to $2.3 million of expense recorded in the first half of fiscal year 2011 related to the normal revaluation to fair value of its Supplemental Employee Retirement Plan (SERP) liability. The result was a favorable variance in selling and administrative expenses of $3.2 million. The impact from the reduction of the SERP liability that was recognized in selling and administrative expenses was exactly offset by a loss on the SERP investment for which the revaluation was recorded in Other Income (Expense), and thus there was no effect on net income. Employee contributions comprise approximately 90% of the SERP investment. Compared to the first half of fiscal year 2011, the selling and administrative expenses for the first half of fiscal year 2012 were favorably impacted by benefits realized from restructuring activities in the EMS segment and were unfavorably impacted by increased spending on sales and marketing initiatives to drive growth, and higher commissions in the Furniture segment resulting from the higher Furniture net sales.
The Company's cash and cash equivalents position decreased from $51.4 million at June 30, 2011 to $31.6 million at December 31, 2011. The Company had no short-term borrowings outstanding as of December 31, 2011 or June 30, 2011. Operating activities provided $1.2 million of cash in the first half of fiscal year 2012 compared to $21.0 million of cash used by operating activities in the first half of fiscal year 2011. The cash outflow in the first half of the prior fiscal year was primarily driven by an increase in inventory in the EMS segment due to higher inventory levels associated with the ramp up of certain programs and the transfer of production among the Company's EMS segment facilities. During the first half of fiscal year 2012, the Company reinvested $17.5 million into capital investments for the future with the largest investments being made for manufacturing equipment in the EMS segment. The Company also paid $3.7 million in dividends, which was lower than the $5.5 million in dividends paid in the first half of the prior fiscal year due to a dividend payment occurring on December 31, 2010 rather than in January. Consistent with the Company's historical dividend policy, the Company's Board of Directors will evaluate the appropriate dividend payment on a quarterly basis. During fiscal year 2012, the Company expects to continue to invest in capital expenditures prudently, particularly for projects including potential acquisitions that would enhance the Company's capabilities and diversification while providing an opportunity for growth and improved profitability.
Sales returns and allowances - At the time revenue is recognized certain provisions may also be recorded, including a provision for returns and allowances, which involve estimates based on current discussions with applicable customers, historical experience with a particular customer and/or product, and other relevant factors. As such, these factors may change over time causing the provisions to be adjusted accordingly. At December 31, 2011 and June 30, 2011, the reserve for returns and allowances was $2.5 million and $2.1 million, respectively. The returns and allowances reserve approximated 1% to 2% of gross trade receivables during the two-year period preceding December 31, 2011.
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