Knoll (KNL, Financial) is an internationally recognized brand whose designs inspire, evolve and endure. Its portfolio has to offer an array of products of the like –Â furniture, textile, leather and accessories brands, including Knoll, KnollStudio, KnollTextiles, KnollExtra, Spinneybeck, FilzFelt, Edelman Leather and Holly Hunt.
Welcoming a stronger 2015
Sales
Net sales for the quarter remained at $266.5 million (an increase of 16.1% from the first quarter of 2014.)
Organic sales: Sales increased by 12.7% (when compared to the first quarter of 2014).
Office Segment Sales: Net sales for the Office segment were $167.7 million during the first quarter of 2015 (an increase of $21.6 million or 14.8%, when compared with the first quarter of 2014).
Sales for Studio Segment: Studio segment witnessed sales of $70.2 million (an increase of $14.2 million, or 25.4%, when compared with the first quarter of 2014).
Net sales for the Coverings segment: Net sales for the Coverings segment were $28.6 million, (an increase of $1.1 million, or 4.0%, when compared with the first quarter of 2014).
Operating Profit
Actual and adjusted operating profit for the first quarter of 2015 was $22.3 million, (actual and adjusted operating profit was $11.3 million and $12.5 million, respectively, for the first quarter of 2014).
Operating expenses
Operating expenses were $73.0 million, or 27.4% of net sales (excluding $1.2 million of restructuring and acquisition related expenses ), compared to $64.1 million, or 27.9% of net sales, for the first quarter of 2014.
Net income
During the first quarter of 2015, net income stood at 17.4 million, an increase of 123.1% when compared with the first quarter of 2014.
Actual and adjusted diluted earnings per share
This quarter, actual and adjusted diluted earnings per share was $0.36 (in comparison to $0.16 and $0.18 per share on an actual and adjusted basis, respectively, for the first quarter of 2014).
Forex gains
During the first quarter of 2015 and 2014, foreign exchange gains increased earnings $0.10 and $0.03 per share, respectively. These foreign exchange gains were primarily due to the devaluation of the Canadian dollar.
Tax rate
The tax rate for the first quarter of 2015 was 36.8% as compared to 35.4% from the first quarter of 2014.
Miscellaneous
During the first quarter of 2015, cash used in operations was $26.1 million compared to cash provided by operations of $12.9 million for the first quarter of 2014. Capital expenditures for the period totaled $4.9 million compared to $7.8 million in the comparable period for 2014. Cash provided by financing activities was $29.7 million and $85.7 million for the first quarter of 2015 and 2014, respectively. Cash used in financing activities for the first quarter of 2015 included the first-year $5.0 million payout of the HOLLY HUNT contingent purchase price.
"Each of our segments kicked off 2015 by delivering year-over-year growth and margin expansion," commented Andrew Cogan, CEO. "Across the board, our commitment to help clients and their architects and designers create inspired workplaces and homes combined with ongoing investments to expand our markets and improve our margins continued to gain traction," he added.
(Source: Company’s website)
To end
A recipient of the National Design Award for Corporate and Institutional Achievement from the Smithsonian`s Cooper-Hewitt, National Design Museum, Knoll is aligned with the U.S. Green Building Council and the Canadian Green Building Council and can help organizations achieve Leadership in Energy and Environmental Design (LEED) workplace certification.
It posted strong 2015 first quarter results and its revenue is going to get even better with time. The company fared well in most of the segments. There were improved operating margins. The company is going to benefit from Holly Hunt, which it acquired last year. The investments the company made are going to deliver in the near future. I think the company is going to continue its momentum. I would strongly recommend this company to the investors (my personal opinion). Adding this company to their portfolio, investors mar reap great benefits.KNL is expected to create shareholder opinions.
