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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended March 31, 1994
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number 0-3279
KIMBALL INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
Indiana 35-0514506
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1600 Royal Street, Jasper, Indiana 47549-1001
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (812) 482-1600
Not Applicable
Former name, former address and former fiscal year, if changed since last report
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
The number of shares outstanding of the Registrant's common stock as of April
19, 1994 was:
Class A Common Stock - 7,364,867 shares
Class B Common Stock - 13,799,491 shares
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KIMBALL INTERNATIONAL, INC.
FORM 10-Q
INDEX
<TABLE>
<CAPTION>
PAGE NO.
<S> <C>
PART I FINANCIAL INFORMATION:
Item 1. Financial Statements
Condensed Consolidated Statement of Financial Condition
- March 31, 1994 (Unaudited), June 30, 1993
and March 31, 1993 (Unaudited) . . . . . . . . . . . . . . . . . . . 3
Consolidated Statement of Income (Unaudited)
- Nine Months Ended March 31, 1994 and 1993 . . . . . . . . . . . . . . 4
- Three Months Ended March 31, 1994 and 1993 . . . . . . . . . . . . . 5
Consolidated Statement of Cash Flows (Unaudited)
- Nine Months Ended March 31, 1994 and 1993 . . . . . . . . . . . . . . 6
Notes To Consolidated Financial Statements (Unaudited) . . . . . . . . . 7
Item 2. Management's Discussion and Analysis Of
Financial Condition and Results of Operations . . . . . . . . . . . . . 8-10
PART II OTHER INFORMATION:
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . . . 11
- Exhibit #11 - Computation of Earnings Per Share
(Part I Exhibit) . . . . . . . . . . . . . . . . . . . . . . . . 12-13
- Exhibit #15 - Letter re: Unaudited Interim Financial Information . 14
- Exhibit #99 - Report of Independent Public Accountants -
Limited Review of Interim Financial Information . . . . . . . . . 15
</TABLE>
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PART I.
FINANCIAL INFORMATION
KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
(dollars in thousands)
<TABLE>
<CAPTION>
(unaudited) (unaudited)
March 31, June 30, March 31,
ASSETS 1994 1993 1993
<S> <C> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ 12,609 $ 4,625 $ 16,566
Short-term investments 77,126 102,597 107,122
Accounts and notes receivable, less allow-
ance for possible losses of $4,471
$4,916 and $5,342 96,979 87,623 76,845
Inventories 90,047 84,666 80,300
Other 17,343 15,947 15,320
Total Current Assets 294,104 295,458 296,153
PROPERTY AND EQUIPMENT - at cost, less
accumulated depreciation of $199,761
$184,458 and $179,242 166,392 152,361 144,988
OTHER ASSETS 11,596 4,886 5,353
Total Assets $472,092 $452,705 $446,494
LIABILITIES AND SHARE OWNERS' EQUITY
CURRENT LIABILITIES:
Loans payable to banks $ 1,885 $ 3,479 $ 5,288
Current maturities of long-term debt 1,683 1,802 1,685
Accounts payable 37,475 38,518 31,323
Dividends payable 4,426 4,428 4,004
Accrued expenses 63,149 51,843 56,663
Total Current Liabilities 108,618 100,070 98,963
OTHER LIABILITIES:
Long-term debt, less current maturities 801 2,017 3,021
Deferred income taxes 16,451 17,277 17,149
Total Other Liabilities 17,252 19,294 20,170
SHARE OWNERS' EQUITY:
Common Stock 6,723 6,723 6,723
Additional Paid-In Capital 791 791 791
Foreign currency translation adjustment 445 1,351 431
Retained earnings 345,926 331,839 326,779
353,885 340,704 334,724
Less: Treasury Stock, at cost (7,663) (7,363) (7,363)
Total Share Owners' Equity 346,222 333,341 327,361
Total Liabilities and Share Owners' Equity $472,092 $452,705 $446,494
See Notes to Consolidated Financial Statements
</TABLE>
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KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(dollars in thousands except per share amounts)
<TABLE>
<CAPTION>
(unaudited)
Nine Months Ended
March 31,
1994 1993
<S> <C> <C>
Net Sales $612,262 $528,731
Cost of Sales 439,611 374,578
Gross Profit 172,651 154,153
Selling, Administrative and General Expenses 130,215 117,349
Restructuring Expenses --- 2,850
Operating Income 42,436 33,954
Other Income (Expense):
Interest Expense (202) (1,065)
Interest Income 1,592 3,315
Other - net 1,109 1,342
2,499 3,592
Income Before Taxes on Income 44,935 37,546
Taxes on Income 17,570 16,451
Net Income $ 27,365 $ 21,095
Earnings Per Share of Common Stock:
Net Income:
Class A Common Stock $1.29 $ .99
Class B Common Stock $1.30 $1.00
Dividends Per Share of Common Stock:
Class A Common Stock $.62 1/4 $.56 1/4
Class B Common Stock $.63 $.57
Average total number of shares outstanding
Class A and B Common Stock 21,165,557 21,206,844
See Notes to Consolidated Financial Statements
</TABLE>
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KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(dollars in thousands except per share amounts)
<TABLE>
<CAPTION>
(unaudited)
Three Months Ended
March 31,
1994 1993
<S> <C> <C>
Net Sales $208,576 $181,715
Cost of Sales 149,671 129,121
Gross Profit 58,905 52,594
Selling, Administrative and General Expenses 44,570 38,946
Operating Income 14,335 13,648
Other Income (Expense):
Interest Expense --- (278)
Interest Income 537 991
Other - net (70) 874
467 1,587
Income Before Taxes on Income 14,802 15,235
Taxes on Income 6,121 6,202
Net Income $ 8,681 $ 9,033
Earnings Per Share of Common Stock:
Net Income:
Class A Common Stock $.41 $.42
Class B Common Stock $.42 $.43
Dividends Per Share of Common Stock:
Class A Common Stock $.20 3/4 $.18 3/4
Class B Common Stock $.21 $.19
Average total number of shares outstanding
Class A and B Common Stock 21,164,358 21,174,622
See Notes to Consolidated Financial Statements
</TABLE>
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KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(dollars in thousands)
<TABLE>
<CAPTION>
(unaudited)
Nine Months Ended
March 31,
1994 1993
<S> <C> <C>
Cash Flows From Operating Activities:
Net income $ 27,365 $ 21,095
Non-cash charges (credits) to net income:
Depreciation and amortization 21,395 20,323
Gain on sales of assets (774) (481)
Deferred income tax provision (1,223) 189
Restructuring Expenses --- 2,850
(Increase) Decrease in current assets:
Accounts and notes receivable (9,356) (1,049)
Inventories (5,381) (7,851)
Other current assets (147) 135
Increase (Decrease) in current liabilities:
Accounts payable (3,148) 6,370
Accrued expenses 9,876 3,423
Net Cash Provided By Operating Activities 38,607 45,004
Cash Flows From Investment Activities:
Capital Expenditures (34,324) (23,029)
Proceeds from sales of assets 1,027 1,136
Increase in other assets (5,384) (1,493)
Purchases of short-term investments (16,328) (36,985)
Maturities and sales of short-term investments 41,799 42,721
Net Cash Used For Investment Activities (13,210) (17,650)
Cash Flows From Financing Activities:
Net change in short-term borrowings (1,594) (652)
Decrease in long-term debt (1,335) (123)
Dividends paid (13,278) (12,038)
Acquisition of Treasury Stock (300) (1,441)
Other - net (821) (1,375)
Net Cash Used For Financing Activities (17,328) (15,629)
Effect of Exchange Rate Change on
Cash and Cash Equivalents (85) (29)
Net Increase in Cash and Cash Equivalents 7,984 11,696
Cash and Cash Equivalents-Beginning of Period 4,625 4,870
Cash and Cash Equivalents-End of Period $ 12,609 $ 16,566
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for:
Income Taxes $ 19,200 $ 19,343
Interest $ 325 $ 1,032
Total Cash, Cash Equivalents and
Short-Term Investments:
Cash and cash equivalents $ 12,609 $ 16,566
Short-term investments 77,126 107,122
Totals $ 89,735 $123,688
See Notes to Consolidated Financial Statements
</TABLE>
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KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
(1) The interim financial statements included herein have been prepared by the
Company, without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission. All significant intercompany
transactions and balances have been eliminated. Management believes the
financial statements include all adjustments of a normal, recurring nature
necessary to present fairly the financial statements of the interim period.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted pursuant to such rules and
regulations, although the Company believes that the disclosures are
adequate to make the information presented not misleading. It is suggested
that these financial statements be read in conjunction with the financial
statements and the notes thereto included in the Company's latest annual
report on Form 10-K.
(2) Inventories consist of: (in thousands)
<TABLE>
<CAPTION>
March 31, June 30, March 31,
1994 1993 1993
<S> <C> <C> <C>
Raw Materials $50,181 $43,626 $41,708
Work-in-Process 15,264 17,527 14,385
Finished Goods 24,602 23,513 24,207
Total $90,047 $84,666 $80,300
</TABLE>
For interim reporting, LIFO inventories are computed based on estimated
year-end quantities and price levels. Changes in such estimates will be
reflected in the interim financial statements in the period in which they
occur.
(3) Earnings per share are computed under the method prescribed in Accounting
Principles Board Opinion No. 15 for computing earnings per share for two
class common stock due to the dividend preference of Class B Common Stock.
(4) Effective July 1, 1993, the Company adopted FASB Statement No. 109,
Accounting for Income Taxes. The impact of adopting the new statement was
$1,200,000 of income, or 5 cents per share. See Management's Discussion
and Analysis for additional discussion.
(5) Net income for the nine months ended March 31,1993, include a restructuring
charge of $2,850,000, or $.13 per Class B share, relating to the
restructuring of the Company's piano operations in Europe.
(6) Arthur Andersen & Co., independent public accountants, performed a limited
review of the consolidated financial statements for the three and nine
month periods ended March 31, 1994, as indicated in the report on the
limited review attached as an Exhibit. Since they did not perform an
audit, they express no opinion on the financial statements referred to
above.
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KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION
AND
ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
OVERVIEW
Third quarter net sales were up 15% when compared to the previous year's third
quarter, as sales in each of the Company's three business segments (Furniture
and Cabinets, Electronic Contract Assemblies and Processed Wood Products and
Other) exceeded the levels in the year earlier quarter. Net income in the third
quarter decreased 4% when compared to the previous year, primarily due to
reduced operating income levels in both the Electronic Contract Assemblies
Segment and certain product lines within the Furniture and Cabinets Segment and
lower investment income. The Company's open order levels at the end of the
third quarter remained high.
For the nine month period ended March 31, 1994, net sales and net income levels
were both up when compared to the prior year as sales in each of the Company's
three business segments were above the year earlier period, while operating
income levels were up in the Furniture and Cabinets and Processed Wood Products
and Other Segments. Net sales increased 16% and net income, excluding the
favorable $1.2 million one-time impact of adopting FASB Statement No. 109,
Accounting for Income Taxes, in the current year and a $2.9 million European
piano operations restructuring charge in the prior year, increased 9%, when
compared to the prior year nine month period. Including the adjustments in both
periods, net income increased 30%. Third quarter and nine month period
operating losses in the Company's European operations were reduced when compared
to the same periods in the prior year.
RESULTS OF OPERATIONS - THREE AND NINE MONTHS ENDED
MARCH 31, 1994 COMPARED TO THREE AND NINE MONTHS
ENDED MARCH 31, 1993
NET SALES -- In the Furniture and Cabinets Segment, third quarter and nine month
period sales increased 19% and 17%, respectively, when compared to the same
periods in the previous year, largely due to increased sales in the Office
Furniture Group, OEM (original equipment manufacturer) Cabinets and Furniture
Group and the Lodging Group. In the Office Furniture Group, sales in most major
product line offerings increased over the prior year third quarter and nine
month period levels, led by increased sales of office furniture systems and
casegoods as the Company continues to experience sales growth in its systems and
casegoods product line offerings. Certain product lines within the Office
Furniture Group are experiencing increases in market share. Open orders in this
Group remained strong at the end of the third quarter. Sales in the OEM
Cabinets and Furniture Group were up over the prior year third quarter and nine
month period, primarily due to an increase in sales of television and speaker
cabinets in wood and vinyl when compared to prior year weak levels. Open order
levels for the OEM Cabinets and Furniture Group at the end of the third quarter
were flat when compared to the prior year. The Lodging Group's sales were up
when compared to the prior year third quarter and nine month period as sales of
hospitality product lines continue to exceed the year earlier levels, which were
depressed over the first six months. Open order levels in the Lodging Group at
the end of the third quarter improved over the second quarter, although they
were down when compared to prior year levels, as the prior year included orders
for several large hospitality projects.
Electronic Contract Assemblies Segment third quarter and nine month period sales
levels increased 8% and 16%, respectively, above the same periods in the prior
year. The improvement was primarily the result of increased computer assemblies
sales. Open orders in this segment were at record levels at the end of the
third quarter. Included in this segment are sales to one customer which
accounted for 12% of consolidated third quarter net sales in the current year
and 15% in the prior year; for the current and prior nine month period, sales
to this customer accounted for 11% and 12%, respectively, of consolidated net
sales.
Processed Wood Products and Other Segment sales in the current year third
quarter and nine month period exceeded the prior year levels, largely due to
increased outside sales of dimension and lumber products in the Raw Materials
Group, which were the result of increased volume levels in the quarterly
comparison and price increases as well as increased volumes in the nine month
period comparison.
OPERATING INCOME -- As a percent of net sales, operating income was 6.9% in the
current year third quarter and nine month period, which represents a decrease of
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.6 and an increase of .5 percentage point when compared to the prior year
periods, respectively. The European piano operations restructuring charge in
the prior year nine month period reduced the operating income level as a
percentage of sales by .5 percentage point. When comparing both the third
quarter and nine month period in the current year to the same periods in the
prior year, gross profit percentages have decreased, primarily the result of an
increase in material costs, partially due to a sales mix change and increased
material component prices. The Company continues to incur expenses as a result
of expanding employee training and education programs, its commitment to
reengineering and improving processes and development and implementation of
enhanced information systems.
In the fourth quarter of fiscal 1993, the Company began to experience
procurement difficulties and increased prices on key electronic component part
purchases, particularly semiconductor components which were placed on an
industry-wide "allocation". Although prices remain above levels prior to the
"allocation", the Company is now experiencing little difficulty in procuring
these component parts.
In the Furniture and Cabinets Segment, most operating groups experienced
improved operating income levels in the third quarter and nine month period when
compared to the same periods in the prior year. The OEM Cabinets and Furniture
Group and European Operations Group continued to experience the strongest
improvement in operating performance. In the OEM Cabinets and Furniture Group,
the improved performance in the current year third quarter and nine month period
was primarily attributable to increased volume levels and a shifting sales mix
to higher margined products. While the Company's European operations continued
to operate at a loss, largely due to these subsidiaries continuing to experience
depressed economic conditions in their principal markets, these losses were
reduced when compared to the prior year third quarter and nine month periods,
exclusive of the restructuring charge in the prior year. The Company continues
to anticipate losses in its European subsidiaries over the near term. Operating
income levels in the Office Furniture Group exceeded the levels in the prior
year third quarter and nine month period as the Group experienced improved
operating income performance in most major product lines, somewhat offset by
operating losses in its steel office furniture product lines. Operating losses
within the steel office furniture product lines were primarily attributable to
elevated relocation expenses, including the costs of and operating
inefficiencies associated with the utilization of a temporary labor force and
production outsourcing, which are expected to continue over the next several
months into fiscal 1995, as well as other operating inefficiencies, partially
due to the production of new product line offerings.
In the Electronic Contract Assemblies Segment, operating income decreased in the
third quarter and nine month period when compared to the prior year. The
reduction is attributable to a changing sales mix, expenses associated with
process reengineering, development costs associated with the next generation of
existing product lines as well as material price increases (as discussed above).
The electronics industry remains very competitive which has caused the Company
to experience some difficulty in passing on higher operating costs to its
customers.
In the Processed Wood Products and Other Segment, current year third quarter and
nine month period operating income levels were up when compared to the prior
year, primarily a result of higher outside sales of lumber and dimension
products and improved operating income levels on sales of plastic components and
carbide cutting tools and related services on cutting tools.
OTHER INCOME -- Interest expense in the current year was down in both the third
quarter and nine month period as a result of reduced outside borrowings in the
Company's European subsidiaries and interest capitalized under the provisions of
FASB Statement No. 34 on the construction of a new steel furniture manufacturing
facility in Idaho. Interest income was down due to a lower average investment
balance and reduced interest rates when compared to the same periods a year ago.
Other-net decreased in the current year third quarter and nine month period,
partially the result of increased commercial truck transportation/distribution
expenses.
TAXES ON INCOME -- The Company's effective tax rate increased .7 and decreased
4.7 percentage points in the current year third quarter and nine month period,
respectively, when compared to the same periods in the prior year. The increase
in the effective tax rate in the quarterly comparison is primarily due to a 1
percentage point increase in the U.S. statutory tax rate, which also increased
the current year nine month rate. The decrease in the nine month period
effective tax rate is largely due to the reduced level of foreign operating
losses, including the prior year restructuring charge, for which limited income
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tax benefit is available at this time. The impact of adopting FASB Statement
No. 109 (as discussed below) reduced the nine month period Taxes on Income by
$1.2 million and the effective tax rate by 2.7%.
NET INCOME -- Net income in the third quarter was $8,681,000, or 42 cents per
share of Class B Common Stock, down 4% from last year's $9,033,000, or 43 cents
per Class B Share.
Net income in the nine month period ended March 31, 1994, was $27,365,000, or
$1.30 per share of Class B Common Stock, up 30% from last year's net income of
$21,095,000, or $1.00 per Class B Share. The current year nine month period
includes the one time impact of adopting FASB Statement No. 109, which increased
net income by $1,200,000, or 5 cents per share. Excluding the one time impact
of adopting FASB Statement No. 109 in the current year, and the $2,850,000, or
13 cents per share, restructuring charge in the prior year, net income was up
9%.
ADOPTION OF NEW ACCOUNTING STANDARD -- Effective July 1, 1993, the Company
adopted FASB Statement No. 109, Accounting for Income Taxes. The impact of
adopting the new statement, which, due to the immateriality of this transaction
was included in Taxes on Income in the Consolidated Statement of Income, was
$1,200,000 of income, or 5 cents per share. This one-time adoption impact was
triggered by a lowering of the Company's net deferred tax liability as Statement
No. 109 requires all deferred tax items be established at current enacted
statutory rates.
LIQUIDITY AND CAPITAL RESOURCES
Cash, Cash Equivalents and Short-Term Investments totaled $89.7 million at March
31, 1994, compared to $107.2 million at June 30, 1993 and $123.7 million one
year ago. Working capital and the current ratio were a strong $185.5 million
and 2.7 to 1, respectively, as of March 31, 1994. The Company expects to
maintain this strong liquidity position throughout fiscal year 1994.
Net cash provided by operating activities totaled $38.6 million for the nine
months ended March 31, 1994, as cash flow generated by the Company's net income
level was somewhat reduced by increased investments in accounts receivable and
inventories and a lowering of the accounts payable balance to suppliers. The
positive cash flow from operating activities was offset by the Company's
decision to internally finance capital investments for the future including, the
construction of a new steel furniture manufacturing facility in Idaho, continued
investment in information technology, including a new enterprise business and
manufacturing information system and cash used to purchase other capital assets
which together totaled approximately $39.7 million in the first nine months.
The Company used an additional $17.3 million in cash to fund financing
activities, principally to pay dividends. Other cash flow activity in the nine
months netted to an inflow of $.9 million, as the Company's total cash flow,
excluding the effect of purchases, maturities and sales of short-term
investments, was a negative $17.5 million in the nine months ended March 31,
1994.
The Company continues to forecast fiscal 1994 as a period of high capital
expansion, including approximately $32 million, of which approximately $22
million was expended in the first nine months, to construct a new steel
furniture manufacturing facility in Idaho to relocate the operations of Harpers
from Torrance, California to Post Falls, Idaho. The Company anticipates total
relocation costs (including the cost of a new facility) will approximate $38
million. The Company also plans to continue to invest additional cash in new
information technology over the remainder of fiscal 1994 and into fiscal 1995.
The Company also plans to invest additional cash in its European operations over
the remainder of fiscal 1994 and possibly into fiscal 1995. All of these
additional investments will be funded internally.
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PART II.
OTHER INFORMATION
Item 6. - Exhibits and Reports on Form 8-K
(a) Exhibits (numbered in accordance with Item 601 of Regulation S-K)
(11) Computation of earnings per share
(15) Letter re: Unaudited Interim Financial Information
(99) Report of Independent Public Accountants - Limited Review of
Interim Financial Information
(b) Reports on Form 8-K
No reports on Form 8-K have been filed during the three months
ended March 31, 1994.
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
KIMBALL INTERNATIONAL, INC.
Douglas A. Habig
DOUGLAS A. HABIG
(President and Chief Executive Officer)
Gary P. Critser
GARY P. CRITSER
(Senior Exec. Vice President, Chief
Accounting Officer and Secretary)
Date: May 3, 1994
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KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
NINE MONTHS ENDED MARCH 31, 1994
(UNAUDITED)
<TABLE>
<S> <C> <C>
Net income, nine months ended March 31, 1994 . . . . . . . . . . . $27,365,000
Dividends declared:
Class A Common -- $.6225 per share . . . . . . . . . . . . . . . $(4,586,000)
Class B Common -- $.63 per share . . . . . . . . . . . . . . . . (8,692,000)
(13,278,000)
Undistributed earnings . . . . . . . . . . . . . . . . . . . . . . $14,087,000
Undistributed earnings divided
by 21,165,557 average number
of shares outstanding . . . . . . . . . . . . . . . . . . . . . . $.6656
Class A Class B
Undistributed earnings per share . . . . . . . . . . . . . . . . . $ .6656 $ .6656
Assumed distribution of earnings . . . . . . . . . . . . . . . . . .6225 .6300
Earnings per share . . . . . . . . . . . . . . . . . . . . . . . $1.2881 $1.2956
Rounded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1.29 $1.30
</TABLE>
COMPUTATION OF EARNINGS PER SHARE
NINE MONTHS ENDED MARCH 31, 1993
(UNAUDITED)
<TABLE>
<S> <C> <C>
Net income, nine months ended March 31, 1993 . . . . . . . . . . . $21,095,000
Dividends declared:
Class A Common -- $.5625 per share . . . . . . . . . . . . . . . $(4,153,000)
Class B Common -- $.57 per share . . . . . . . . . . . . . . . . (7,872,000)
(12,025,000)
Undistributed earnings . . . . . . . . . . . . . . . . . . . . . . $ 9,070,000
Undistributed earnings divided
by 21,206,844 average number
of shares outstanding . . . . . . . . . . . . . . . . . . . . . . $.4277
Class A Class B
Undistributed earnings per share . . . . . . . . . . . . . . . . . $.4277 $.4277
Assumed distribution of earnings . . . . . . . . . . . . . . . . . .5625 .5700
Earnings per share . . . . . . . . . . . . . . . . . . . . . . . $.9902 $.9977
Rounded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $.99 $1.00
Part I- Exhibit(11)
</TABLE>
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KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
THREE MONTHS ENDED MARCH 31, 1994
(UNAUDITED)
<TABLE>
<S> <C> <C>
Net income, three months ended March 31, 1994 . . . . . . . . . .. $8,681,000
Dividends declared:
Class A Common -- $.2075 per share . . . . . . . . . . . . . . . $(1,528,000)
Class B Common -- $.21 per share . . . . . . . . . . . . . . . . (2,898,000)
(4,426,000)
Undistributed earnings . . . . . . . . . . . . . . . . . . . . . . $4,255,000
Undistributed earnings divided
by 21,164,358 average number
of shares outstanding . . . . . . . . . . . . . . . . . . . . . . $.2010
Class A Class B
Undistributed earnings per share . . . . . . . . . . . . . . . . . $.2010 $.2010
Assumed distribution of earnings . . . . . . . . . . . . . . . . . .2075 .2100
Earnings per share . . . . . . . . . . . . . . . . . . . . . . . $.4085 $.4110
Rounded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $.41 $.42
</TABLE>
COMPUTATION OF EARNINGS PER SHARE
THREE MONTHS ENDED MARCH 31, 1993
(UNAUDITED)
<TABLE>
<S> <C> <C>
Net income, three months ended March 31, 1993 . . . . . . . . . . $9,033,000
Dividends declared:
Class A Common -- $.1875 per share . . . . . . . . . . . . . . . $(1,384,000)
Class B Common -- $.19 per share . . . . . . . . . . . . . . . . (2,620,000)
(4,004,000)
Undistributed earnings . . . . . . . . . . . . . . . . . . . . . . $5,029,000
Undistributed earnings divided
by 21,174,622 average number
of shares outstanding . . . . . . . . . . . . . . . . . . . . . . $.2375
Class A Class B
Undistributed earnings per share . . . . . . . . . . . . . . . . . $.2375 $.2375
Assumed distribution of earnings . . . . . . . . . . . . . . . . . .1875 .1900
Earnings per share . . . . . . . . . . . . . . . . . . . . . . . $.4250 $.4275
Rounded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $.42 $.43
Part I- Exhibit (11)
</TABLE>
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<PAGE>
<PAGE>
To Kimball International, Inc.:
We are aware that Kimball International, Inc. has incorporated by reference in
its Registration Statement No. 33-20125 its Form 10-Q for the quarter ended
March 31, 1994, which includes our report dated April 12, 1994, covering
the unaudited interim financial information contained therein. Pursuant to
Regulation C of the Securities Act of 1933, that report is not considered a part
of the registration statement prepared or certified by our firm or a report
prepared or certified by our firm within the meaning of Sections 7 and 11 of the
Act.
Arthur Andersen & Co.
ARTHUR ANDERSEN & CO.
April 12, 1994
Indianapolis, Indiana.
Exhibit (15)
- 14 -
<PAGE>
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To Kimball International, Inc.:
We have reviewed the condensed consolidated statement of financial condition of
Kimball International, Inc. (an Indiana corporation) and subsidiaries as of
March 31, 1994 and 1993, the related consolidated statements of income for the
three-month and nine-month periods ended March 31, 1994 and 1993 and the
consolidated statement of cash flows for the nine-month periods ended March 31,
1994 and 1993. These financial statements are the responsibility of the
Company's management.
We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants. A review of interim financial
information consists principally of applying analytical procedures to financial
data and making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in
accordance with generally accepted auditing standards, the objective of which is
the expression of an opinion regarding the financial statements taken as a
whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should
be made to the financial statements referred to above for them to be in
conformity with generally accepted accounting principles.
We have previously audited, in accordance with generally accepted auditing
standards, the consolidated statement of financial condition as of June 30,
1993, and the related consolidated statements of income, cash flows and
shareowners' equity for the year then ended (not presented separately herein),
and in our report dated August 2, 1993, we expressed an unqualified opinion on
those statements. In our opinion, the information set forth in the accompanying
condensed consolidated statement of financial condition as of June 30, 1993, is
fairly stated, in all material respects, in relation to the consolidated
statement of financial condition from which it has been derived.
Arthur Andersen & Co.
ARTHUR ANDERSEN & CO.
Indianapolis, Indiana,
April 12, 1994
Exhibit (99)
- 15 -
