Kimball Int'l (KBAL) Reports Q3 EPS of $0.27

Kimball Int'l (NASDAQ: KBAL) reported Q3 EPS of $0.27, versus $0.22 reported last year. Revenue for the quarter came in at $178.2 million, versus $177.4 million reported last year.

Third Quarter FY 2020

• Net sales increased 0.5% to $178.2 million
• Operating income margin of 7.9%, or 7.5% on an adjusted basis
• Net income of $9.5 million, increased 19%
• Adjusted EBITDA of $17.5 million, increased 21%, and adjusted EBITDA margin of 9.8%, increased 160 basis points
• Diluted EPS of $0.25, or $0.27 on an adjusted basis, an increase of 23% compared to $0.22 a year ago
• Return on Invested Capital (ROIC) of 29.4%
• Backlog of $187.0 million

Kimball International CEO Kristie Juster commented, “I am very pleased with the continued success of our transformation program designed to generate sales growth, while yielding significant cost savings. Despite the impact of COVID-19-related order pushouts and the temporary shutdown of our facilities, third quarter sales were led by year-on-year growth in our Commercial market and the healthcare and educational verticals in our Institutional market. Even with the impact of COVID-19 on our revenues, we achieved 23% growth in adjusted earnings per share and 21% growth in adjusted EBITDA, representing significant operating leverage driven by transformation cost savings and increased prices on selected product lines. Additionally, we continued to experience strong demand for our innovative new workplace products, which increased to 29% of total Commercial and Institutional sales, up from 27% last year.

“Kimball International has a rich history of banding together in difficult times, and I am proud of the tremendous efforts of our employees and leadership team to achieve a high level of response to the COVID-19 pandemic within a very short time. At the onset of this health crisis, we took swift action to proactively safeguard and support our people, activate business continuity plans to minimize impacts to our customers and continue the rigorous financial management of our business. By the end of March, we had curtailed our business operations to four facilities and shifted our focus to prioritize critically needed healthcare industry products by launching a family of quickship products for facilities serving the COVID-19 crisis. By the end of April, we increased the number of facilities in operation to eight out of the 10 that comprise our U.S. manufacturing footprint, which has reduced our lead-times on incoming orders and provides us with the ability to accommodate additional volumes.

“Order rates in the third quarter increased at a mid-single digit rate, led by our Institutional and Hospitality markets, but by the second half of March we began to see a significant number of COVID-19-related order and shipment push-outs in our Hospitality vertical, which represents approximately 25% of our revenue. This trend has continued, along with a slowdown in order flow in all three markets. Fortunately, our backlog was $187.0 million at the end of the third quarter, of which over $100 million is anticipated to ship in the fourth quarter, and we expect to continue to benefit from our transformation cost savings initiatives in this year’s fourth quarter.”

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

You May Also Be Interested In

• LeonaBio (LONA) Price Target Cut to $17 by Citizens Amid Pipeline Development
• Femasys Inc. (FEMY) Misses Q2 EPS by 20c
• Vivos Therapeutics (VVOS) Tops Q2 EPS by 6c