Kimball Int'l (KBAL) Reports Q2 EPS of $0.33; Provides FY20-FY22 Financial Targets

Kimball Int'l (NASDAQ: KBAL) reported Q2 EPS of $0.33, versus $0.26 reported last year. Revenue for the quarter came in at $192.16 million, versus $201.01 million reported last year.

Second Quarter FY 2020

• Net sales decreased 4% as expected due to both the Kimball brand realignment plan and lapping strong comps
• Orders increased 13% driven by growth in all verticals
• Operating income margin of 7.4%, or 8.6% on an adjusted basis, increased 220 basis points driven by a 170 basis points improvement in gross margin and a 50 basis point reduction in adjusted selling and administrative expenses
• Transformation savings of $7.1 million realized during the quarter, exceeded expectations
• Net income of $11.0 million, increased 17%
• Adjusted EBITDA of $20.9 million, increased 23%, and adjusted EBITDA margin of 10.9%, increased 240 basis points
• Diluted EPS of $0.30, or $0.33 on an adjusted basis, an increase of 27% compared to $0.26 a year ago

Kimball International CEO Kristie Juster commented, “We continued to exceed expectations in delivery of our transformation savings, resulting in a significant improvement in earnings again this quarter. This delivery of savings increases our confidence in our plan enabling us to increase to our projected full-year savings from $16.0 million to $21.0 million for fiscal year 2020. I am very proud of the organization’s flexibility in embracing this new way of working. The execution of this transformation plan and our recently announced plans to centralize our manufacturing operations pave the way forward for both improved profit and increased investment for growth.”

Ms. Juster continued, “Our sales performance this quarter was in line with our expectations but below our overall expected organic growth rate of 4% to 7%. I am very encouraged by our 13% order growth in the quarter across all verticals. The increase in our order backlog positions us very well for a strong second half of our fiscal year.”

Fiscal Year 2020 – 2022 Financial Targets

• Organic sales growth: 4% to 7% 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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