Kimball Int'l (KBAL) Reports Q1 EPS of $0.40; Provides FY20-FY22 Financial Targets

Kimball Int'l (NASDAQ: KBAL) reported Q1 EPS of $0.40, versus $0.31 reported last year. Revenue for the quarter came in at $201.45 million, versus $194.12 million reported last year.

First Quarter FY 2020

• Net sales growth of 3.8%, including a 1.7% organic growth contribution, driven by continued solid performance from our National and Kimball Hospitality brands, partially offset by a decline in our Kimball brand on an organic basis
• Order decline of 3.6% on a difficult comparison of 17.8% growth in the prior year
• Operating income margin of 7.5%, or 9.8% on an adjusted basis, an increase of 200 basis points, driven by gross margin improvement of 100 basis points and a 160 basis point reduction in selling and administrative expenses
• Transformation savings of $5.6M realized during the quarter
• Net income of $11.4 million, an increase of 5%
• Record adjusted EBITDA of $23.8 million, an increase of 23.9%, and adjusted EBITDA margin of 11.8%, an increase of 190 basis points
• Diluted EPS of $0.31 or $0.40 on an adjusted basis, an increase of 29.0% on an adjusted basis compared to $0.31 a year ago

Kimball International CEO Kristie Juster commented, “I am extremely pleased with the improvement in earnings this quarter. Our first quarter performance gives us confidence that we are gaining traction in both our sustaining gross margin improvement and our ability to transform to a more efficient model. We do expect our revenues to ramp in the back half of the year as our investments start to take hold against specific growth initiatives.”

Ms. Juster continued, “Our revenue performance was mixed in the first quarter with industry leading metrics in healthcare and hospitality offset by the Kimball brand realignment strategy as well as comping double digit year over year performance. As we start our transformation journey, we are focused on gating our growth investments as we gain confidence in our cost savings projects. We are confident that fiscal year 2020 will position us well to deliver our long-term plan.”

Fiscal Year 2020 – 2022 Financial Targets

• Organic sales growth: 4.0% to 7.0% CAGR
• Adjusted EBITDA: 150 to 250 basis points improvement
• Adjusted EPS: 10% to 15% CAGR

For earnings history and earnings-related data on Kimball Int'l (KBAL) click here.

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