Knoll Inc. (KNL, Financial) filed Quarterly Report for the period ended 2009-03-31.
Knoll Inc a leading designer and manufacturer of branded office furniture products and textiles serves clients worldwide. Their commitment to innovation and modern design has yielded a comprehensive portfolio of products designed to provide enduring value and help clients shape their workplaces with imagination and vision. Knoll Inc. has a market cap of $345.6 million; its shares were traded at around $7.35 with a P/E ratio of 4 and P/S ratio of 0.3. The dividend yield of Knoll Inc. stocks is 6.5%.
Looking at the balance sheet our debt increased by $24.0 million during the quarter. Our cash requirements in the first quarter are generally higher as we pay accrued performance related compensation to our associates reducing our accrued liabilities. Inventories are down $3.7 million because of the lower sales volumes and accounts receivable were up slightly by $2.4 million. At March 31, 2009, we had $12.3 million of cash on hand.
For the three months ended March 31, 2009, cash used in operations was $14.8 million which included $17.3 million of net income and non-cash expenses, less $32.1 million of unfavorable changes in working capital. The $32.1 million unfavorable change is largely the result of current tax and accrued 2008 performance related compensation payments. During the quarter, we also invested $5.1 million in capital expenditures and paid a quarterly dividend of $5.4 million.
Gross profit for the first quarter of 2009 was $74.8 million, a decrease of $15.6 million, or 17.2%, from gross profit of $90.3 million for the first quarter ended March 31, 2008. Operating income for the first quarter of 2009 was $16.8 million, a decrease of $15.1 million, or 47.3%, from operating income of $31.9 million for the first quarter of 2008. Operating income for the first quarter of 2009 includes a restructuring charge of $6.2 million. As a percentage of sales, gross profit increased to 35.2% for the first quarter of 2009 from 33.7% for the first quarter of 2008. Operating income as a percentage of sales decreased to 7.9% in the first quarter of 2009 from 11.9% over the same period of 2008.
Year to date net cash used in operations was $14.8 million, of which $17.3 million was provided by net income plus non-cash amortizations and stock-based compensation, offset by $32.1 million of unfavorable changes in working capital. The $32.1 million of unfavorable changes in working capital is primarily due to accrued employee compensation and income tax payments. Cash provided by operating activities was $6.2 million in the first quarter of 2008.
For the first quarter of 2009, we used available cash, including the $17.9 million of net cash from financing activities, to fund $5.1 million in capital expenditures, repurchase $663,000 of common stock for treasury, fund a dividend payment to shareholders totaling $5.4 million and fund working capital. For the first quarter of 2008, we used available cash, including the $6.2 million of net cash from operating activities, and $4.7 million of net borrowings, to fund $2.4 million in capital expenditures, repurchase $6.0 million of common stock for treasury, fund a dividend payment to shareholders totaling $5.7 million and fund working capital.
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Knoll Inc a leading designer and manufacturer of branded office furniture products and textiles serves clients worldwide. Their commitment to innovation and modern design has yielded a comprehensive portfolio of products designed to provide enduring value and help clients shape their workplaces with imagination and vision. Knoll Inc. has a market cap of $345.6 million; its shares were traded at around $7.35 with a P/E ratio of 4 and P/S ratio of 0.3. The dividend yield of Knoll Inc. stocks is 6.5%.
Highlight of Business Operations:
Our 2009 first quarter results prove that we have begun to feel the impact of the global recession. Net sales were down 20.6% from $267.8 million during the first quarter of 2008 to $212.6 million during the first quarter of 2009. The decrease in sales was felt across all product categories and geographies. We experienced double digit declines in all product categories when compared to the prior year. Backlog of unfilled orders fell $40.6 million to $163.8 million, or 19.9%, compared to unfilled orders of $204.4 million at March 31, 2008. Earnings per share was $0.21, a decrease of 41.7%, when compared to $0.36 earnings per share in the prior year.Looking at the balance sheet our debt increased by $24.0 million during the quarter. Our cash requirements in the first quarter are generally higher as we pay accrued performance related compensation to our associates reducing our accrued liabilities. Inventories are down $3.7 million because of the lower sales volumes and accounts receivable were up slightly by $2.4 million. At March 31, 2009, we had $12.3 million of cash on hand.
For the three months ended March 31, 2009, cash used in operations was $14.8 million which included $17.3 million of net income and non-cash expenses, less $32.1 million of unfavorable changes in working capital. The $32.1 million unfavorable change is largely the result of current tax and accrued 2008 performance related compensation payments. During the quarter, we also invested $5.1 million in capital expenditures and paid a quarterly dividend of $5.4 million.
Gross profit for the first quarter of 2009 was $74.8 million, a decrease of $15.6 million, or 17.2%, from gross profit of $90.3 million for the first quarter ended March 31, 2008. Operating income for the first quarter of 2009 was $16.8 million, a decrease of $15.1 million, or 47.3%, from operating income of $31.9 million for the first quarter of 2008. Operating income for the first quarter of 2009 includes a restructuring charge of $6.2 million. As a percentage of sales, gross profit increased to 35.2% for the first quarter of 2009 from 33.7% for the first quarter of 2008. Operating income as a percentage of sales decreased to 7.9% in the first quarter of 2009 from 11.9% over the same period of 2008.
Year to date net cash used in operations was $14.8 million, of which $17.3 million was provided by net income plus non-cash amortizations and stock-based compensation, offset by $32.1 million of unfavorable changes in working capital. The $32.1 million of unfavorable changes in working capital is primarily due to accrued employee compensation and income tax payments. Cash provided by operating activities was $6.2 million in the first quarter of 2008.
For the first quarter of 2009, we used available cash, including the $17.9 million of net cash from financing activities, to fund $5.1 million in capital expenditures, repurchase $663,000 of common stock for treasury, fund a dividend payment to shareholders totaling $5.4 million and fund working capital. For the first quarter of 2008, we used available cash, including the $6.2 million of net cash from operating activities, and $4.7 million of net borrowings, to fund $2.4 million in capital expenditures, repurchase $6.0 million of common stock for treasury, fund a dividend payment to shareholders totaling $5.7 million and fund working capital.
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