Knoll Inc. (KNL, Financial) filed Quarterly Report for the period ended 2009-09-30.
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 $447.12 million; its shares were traded at around $9.51 with a P/E ratio of 8.27 and P/S ratio of 0.4. The dividend yield of Knoll Inc. stocks is 0.84%.
Gross profit for the third quarter of 2009 was $61.3 million, a decrease of $42.9 million, or 41.2%, from gross profit of $104.2 million for third quarter of 2008. Gross profit for the nine months ended September 30, 2009 was $206.8 million, a decrease of $88.8 million, or 30.0%, from gross profit of $295.6 million for the same period in the prior year. Operating income for the third quarter of 2009 was $16.8 million, a decrease of $24.3 million, or 59.1%, from operating income of $41.1 million for the third quarter of 2008. Operating income for the nine months ended September 30, 2009 was $52.1 million, a decrease of $56.0 million, or 51.8%, from operating income of $108.1 million for the same period in 2008. As a percentage of sales, gross profit decreased to 33.8% for the third quarter of 2009 from 36.8% for the third quarter of 2008. The decrease in gross profit for the quarter is largely due to unfavorable fixed cost absorption in our facilities due to the lower sales volume as well as price deterioration. For the nine months ended September 30, 2009, gross profit as a percentage of sales decreased to 34.7% from 35.0% in 2008. Operating income as a percentage of sales decreased to 9.3% in the third quarter of 2009 from 14.5% over the same period in 2008. For the nine months ended September 30, 2009, operating income as a percentage of sales decreased to 8.7% from 12.8% in 2008. Operating income for the nine months ended, September 30, 2009 and 2008, includes restructuring charges of $8.4 million and $3.4 million, respectively.
Interest expense for the three months and nine months ended September 30, 2009 was $4.1 million and $9.7 million, respectively, an increase of $0.3 million and a decrease of $3.0 million, respectively, from the same periods in 2008. The increase in interest expense for the three months ended September 30, 2009 is due to two interest rate swap agreements that went into effect during the second quarter of 2009. For the nine month period ended September 30, 2009, interest expense decreased $3.0 million due to lower average borrowing rates when compared with the prior year. For the three and nine months period ended September 30, 2009, additional interest expense of $2.3 million and $2.8 million was incurred as a result of the interest rate swap agreements. See Note 5 of the condensed consolidated financial statements for further information regarding the interest rate swaps. Taking into account the effect of the interest rate swap payments, the weighted average interest rate for the third quarter of 2009 was 4.4%. The weighted average interest rate for the same period in 2008 was 3.9%.
Other expense for the third quarter of 2009 was $3.1 million which included $3.2 million of foreign exchange losses on currency offset by $0.1 million of miscellaneous income. Other income for the third quarter of 2008 was $2.1 million which included $2.0 million of foreign exchange gains and $0.1 million of miscellaneous income.
For the nine month period ended September 30, 2009, we used available cash, including the $42.5 million of net cash from operating activities, to fund $11.5 million in capital expenditures, invest $0.8 million in intangible assets connected to future product offerings, repurchase $0.8 million of common stock for treasury, fund dividend payments to shareholders totaling $7.3 million, pay down debt of $27.1 million, and fund working capital.
For the nine month period ended September 30, 2008, we used available cash, including the $97.5 million of net cash from operating activities, and $1.7 million of proceeds from the issuance of common stock, to fund $9.8 million in capital expenditures, repurchase $34.3 million of common stock for treasury, fund dividend payments to shareholders totaling $17.0 million, pay down debt of $26.1 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 $447.12 million; its shares were traded at around $9.51 with a P/E ratio of 8.27 and P/S ratio of 0.4. The dividend yield of Knoll Inc. stocks is 0.84%.
Highlight of Business Operations:
Sales for the third quarter of 2009 were $181.3 million, a decrease of $102.2 million, or 36.1%, from sales of $283.5 million for the same period in the prior year. Sales for the nine months ended September 30, 2009 were $596.1 million, a decrease of $247.8 million, or 29.4%, over the first nine months of 2008. This quarter we experienced double digit declines in every product category and geography when compared with the prior year. These declines are occurring across the industry as the Business and Institutional Furniture Manufacturers Association (BIFMA) is forecasting a 31.0% decline in sales for 2009.Gross profit for the third quarter of 2009 was $61.3 million, a decrease of $42.9 million, or 41.2%, from gross profit of $104.2 million for third quarter of 2008. Gross profit for the nine months ended September 30, 2009 was $206.8 million, a decrease of $88.8 million, or 30.0%, from gross profit of $295.6 million for the same period in the prior year. Operating income for the third quarter of 2009 was $16.8 million, a decrease of $24.3 million, or 59.1%, from operating income of $41.1 million for the third quarter of 2008. Operating income for the nine months ended September 30, 2009 was $52.1 million, a decrease of $56.0 million, or 51.8%, from operating income of $108.1 million for the same period in 2008. As a percentage of sales, gross profit decreased to 33.8% for the third quarter of 2009 from 36.8% for the third quarter of 2008. The decrease in gross profit for the quarter is largely due to unfavorable fixed cost absorption in our facilities due to the lower sales volume as well as price deterioration. For the nine months ended September 30, 2009, gross profit as a percentage of sales decreased to 34.7% from 35.0% in 2008. Operating income as a percentage of sales decreased to 9.3% in the third quarter of 2009 from 14.5% over the same period in 2008. For the nine months ended September 30, 2009, operating income as a percentage of sales decreased to 8.7% from 12.8% in 2008. Operating income for the nine months ended, September 30, 2009 and 2008, includes restructuring charges of $8.4 million and $3.4 million, respectively.
Interest expense for the three months and nine months ended September 30, 2009 was $4.1 million and $9.7 million, respectively, an increase of $0.3 million and a decrease of $3.0 million, respectively, from the same periods in 2008. The increase in interest expense for the three months ended September 30, 2009 is due to two interest rate swap agreements that went into effect during the second quarter of 2009. For the nine month period ended September 30, 2009, interest expense decreased $3.0 million due to lower average borrowing rates when compared with the prior year. For the three and nine months period ended September 30, 2009, additional interest expense of $2.3 million and $2.8 million was incurred as a result of the interest rate swap agreements. See Note 5 of the condensed consolidated financial statements for further information regarding the interest rate swaps. Taking into account the effect of the interest rate swap payments, the weighted average interest rate for the third quarter of 2009 was 4.4%. The weighted average interest rate for the same period in 2008 was 3.9%.
Other expense for the third quarter of 2009 was $3.1 million which included $3.2 million of foreign exchange losses on currency offset by $0.1 million of miscellaneous income. Other income for the third quarter of 2008 was $2.1 million which included $2.0 million of foreign exchange gains and $0.1 million of miscellaneous income.
For the nine month period ended September 30, 2009, we used available cash, including the $42.5 million of net cash from operating activities, to fund $11.5 million in capital expenditures, invest $0.8 million in intangible assets connected to future product offerings, repurchase $0.8 million of common stock for treasury, fund dividend payments to shareholders totaling $7.3 million, pay down debt of $27.1 million, and fund working capital.
For the nine month period ended September 30, 2008, we used available cash, including the $97.5 million of net cash from operating activities, and $1.7 million of proceeds from the issuance of common stock, to fund $9.8 million in capital expenditures, repurchase $34.3 million of common stock for treasury, fund dividend payments to shareholders totaling $17.0 million, pay down debt of $26.1 million, and fund working capital.
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