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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, 1995
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
13, 1995 was:
Class A Common Stock - 7,321,152 shares
Class B Common Stock -13,706,687 shares
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KIMBALL INTERNATIONAL, INC.
FORM 10-Q
INDEX
<CAPTION>
PAGE NO.
<S> <C>
PART I FINANCIAL INFORMATION:
Item 1. Financial Statements
Condensed Consolidated Statement of Financial Condition
- March 31, 1995 (Unaudited), June 30, 1994
and March 31, 1994 (Unaudited) . . . . . . . . . . . . . . . . . . . 3
Consolidated Statement of Income (Unaudited)
- Nine Months Ended March 31, 1995 and 1994 . . . . . . . . . . . . . 4
- Three Months Ended March 31, 1995 and 1994 . . . . . . . . . . . . . 5
Consolidated Statement of Cash Flows (Unaudited)
- Nine Months Ended March 31, 1995 and 1994 . . . . . . . . . . . . . 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
Signatures . . . . . . . . . . . . . . . . . 11
- Exhibit #11 - Computation of Earnings Per Share
(Part I Exhibit)
- Exhibit #15 - Letter re: Unaudited Interim Financial
Information (Part I Exhibit)
- Exhibit #27 - Financial Data Schedule (Part I Exhibit)
- Exhibit #99 - Report of Independent Public Accountants -
Limited Review of Interim Financial Information
(Part II Exhibit)
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PART I.
FINANCIAL INFORMATION
KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
(dollars in thousands)
<CAPTION>
(unaudited) (unaudited)
March 31, June 30, March 31,
ASSETS 1995 1994 1994
<S> <C> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ 18,720 $ 15,452 $ 12,609
Short-term investments at cost, estimated market
value of $ 93,097, $76,479 and 76,650. 93,288 76,494 77,126
Accounts and notes receivable, less allow-
ance for possible losses of $4,136
$4,036 and $4,471 100,428 96,118 96,979
Inventories 80,876 81,083 90,047
Other 19,816 19,091 17,343
Total Current Assets 313,128 288,238 294,104
PROPERTY AND EQUIPMENT - at cost, less
accumulated depreciation of $216,439,
$205,027 and $199,761 172,486 171,243 166,392
OTHER ASSETS 12,098 11,932 11,596
Total Assets $497,712 $471,413 $472,092
LIABILITIES AND SHARE OWNERS' EQUITY
CURRENT LIABILITIES:
Loans payable to banks $ 1,688 $ 1,619 $ 1,885
Current maturities of long-term debt 383 1,196 1,683
Accounts payable 38,913 33,133 37,475
Dividends payable 4,398 4,426 4,426
Accrued expenses 66,728 61,790 63,149
Total Current Liabilities 112,110 102,164 108,618
OTHER LIABILITIES:
Long-term debt, less current maturities 959 811 801
Deferred income taxes and other 18,386 17,486 16,451
Total Other Liabilities 19,345 18,297 17,252
SHARE OWNERS' EQUITY:
Common stock 6,723 6,723 6,723
Additional paid-in capital 812 791 791
Foreign currency translation adjustment 1,835 836 445
Retained earnings 367,990 350,304 345,926
377,360 358,654 353,885
Less: Treasury stock, at cost (11,103) (7,702) (7,663)
Total Share Owners' Equity 366,257 350,952 346,222
Total Liabilities and Share Owners' Equity $497,712 $471,413 $472,092
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)
<CAPTION>
(unaudited)
Nine Months Ended
March 31,
1995 1994
<S> <C> <C>
Net Sales $676,318 $612,262
Cost of Sales 488,542 439,611
Gross Profit 187,776 172,651
Selling, Administrative and General Expenses 138,050 130,215
Operating Income 49,726 42,436
Other Income (Expense):
Interest Expense (118) (202)
Interest Income 3,912 1,592
Other - net (575) 1,109
3,219 2,499
Income Before Taxes on Income 52,945 44,935
Taxes on Income 22,031 17,570
Net Income $ 30,914 $ 27,365
Earnings Per Share of Common Stock:
Net Income:
Class A Common Stock $1.46 $1.29
Class B Common Stock $1.47 $1.30
Dividends Per Share of Common Stock:
Class A Common Stock $.62 1/4 $.62 1/4
Class B Common Stock $.63 $.63
Average total number of shares outstanding
Class A and B Common Stock 21,093,203 21,165,557
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)
<CAPTION>
(unaudited)
Three Months Ended
March 31,
1995 1994
<S> <C> <C>
Net Sales $236,819 $208,576
Cost of Sales 172,931 149,671
Gross Profit 63,888 58,905
Selling, Administrative and General Expenses 46,324 44,570
Operating Income 17,564 14,335
Other Income (Expense):
Interest Expense (60) ---
Interest Income 1,609 537
Other - net (74) (70)
1,475 467
Income Before Taxes on Income 19,039 14,802
Taxes on Income 8,208 6,121
Net Income $ 10,831 $ 8,681
Earnings Per Share of Common Stock:
Net Income:
Class A Common Stock $.51 $.41
Class B Common Stock $.52 $.42
Dividends Per Share of Common Stock:
Class A Common Stock $.20 3/4 $.20 3/4
Class B Common Stock $.21 $.21
Average total number of shares outstanding
Class A and B Common Stock 21,040,406 21,164,358
See Notes to Consolidated Financial Statements
</TABLE>
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KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(dollars in thousands)
<CAPTION>
(unaudited)
Nine Months Ended
March 31,
1995 1994
<S> <C> <C>
Cash Flows From Operating Activities:
Net income $ 30,914 $ 27,365
Non-cash charges (credits) to net income:
Depreciation and amortization 22,448 21,395
Gain on sales of assets (256) (774)
Deferred income tax provision 154 (1,223)
Other deferred charges 1,189 ---
(Increase) Decrease in current assets:
Accounts and notes receivable (4,310) (9,356)
Inventories 207 (5,381)
Other current assets (1,318) (147)
Increase (Decrease) in current liabilities:
Accounts payable 5,780 (3,148)
Accrued expenses 4,465 9,876
Net Cash Provided By Operating Activities 59,273 38,607
Cash Flows From Investment Activities:
Capital expenditures (22,065) (34,324)
Proceeds from sales of assets 1,185 1,027
Increase in other assets (1,275) (5,384)
Purchases of short-term investments (89,743) (16,328)
Maturities of short-term investments 72,949 41,799
Net Cash Used For Investment Activities (38,949) (13,210)
Cash Flows From Financing Activities:
Net change in short-term borrowings 69 (1,594)
Decrease in long-term debt (1,036) (1,335)
Dividends paid (13,255) (13,278)
Acquisition of treasury stock, net of sales (3,401) (300)
Other - net 483 (821)
Net Cash Used For Financing Activities (17,140) (17,328)
Effect of Exchange Rate Change on
Cash and Cash Equivalents 84 (85)
Net Increase in Cash and Cash Equivalents 3,268 7,984
Cash and Cash Equivalents-Beginning of Period 15,452 4,625
Cash and Cash Equivalents-End of Period $ 18,720 $ 12,609
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for:
Income Taxes $ 20,126 $ 19,200
Interest $ 231 $ 325
Total Cash, Cash Equivalents and
Short-Term Investments:
Cash and cash equivalents $ 18,720 $ 12,609
Short-term investments 93,288 77,126
Totals $112,008 $ 89,735
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.
<TABLE>
(2) Inventories consist of: (in thousands)
<CAPTION>
March 31, June 30, March 31,
1995 1994 1994
<S> <C> <C> <C>
Raw Materials $41,510 $42,700 $50,181
Work-in-Process 13,757 14,603 15,264
Finished Goods 25,609 23,780 24,602
Total $80,876 $81,083 $90,047
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.
</TABLE>
(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) The Company adopted FASB Statement No. 109, Accounting for Income Taxes,
during the prior year's first quarter ended September 30, 1993. The impact of
adopting the new statement was $1,200,000 of income, or 5 cents per share and
was included in Taxes on Income. See Management's Discussion and Analysis for
additional discussion.
(5) Arthur Andersen LLP, independent public accountants, performed a limited
review of the consolidated financial statements for the three and nine month
periods ended March 31, 1995, 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
Sales for the third quarter increased 14% 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) experienced increases above the prior year. Year-to-date
sales increased 10% when compared to the same period one year earlier. Net
income for the third quarter increased 24% from the prior year's third quarter,
led by volume-driven increases in the Electronic Contract Assemblies segment.
Year-to-date net income increased 18% as compared to the same period one year
earlier, after excluding the one-time impact of adopting FASB Statement No. 109,
Accounting for Income Taxes, in the prior year's first quarter.
RESULTS OF OPERATIONS - THREE AND NINE MONTHS ENDED MARCH 31, 1995 COMPARED TO
THREE AND NINE MONTHS ENDED MARCH 31, 1994
Sales in the Furniture and Cabinets segment increased 6% in both the three and
nine month periods, when compared to the same periods in the prior year. Sales
of certain office furniture product lines, original equipment manufacturer (OEM)
product lines and hospitality product lines led the increase. Volume increases
in certain wood office furniture systems and casegoods product lines were based
on the continuing trend towards value-oriented products with flexible
configurations. Steel office furniture product line sales were below the three
and nine month period levels in the prior year, as continued production
inefficiencies at the new Idaho facility were compounded by increased
competitive pricing pressures in this product line. Total open order levels in
the office furniture product line ended the quarter at 8% below the prior year
level, although several product lines experienced increases. Sales of OEM
cabinets and furniture product lines experienced volume increases of television
and speaker cabinets in both wood and vinyl in addition to other wood furniture
product lines. The Company continued to increase its production and sale of
other OEM wood products in the three and nine month periods, to utilize excess
plant capacity at certain of the Company's facilities. Open orders in
OEM product lines increased 13% above the prior year level. Hospitality
furniture product lines experienced volume increases on certain product lines in
the three and nine month periods when compared to prior year levels.
Record sales in the Electronic Contract Assemblies segment increased 33% and 20%
for the three and nine months, respectively, above the same periods in the prior
year. The Company experienced volume increases in computer, automotive and
telecommunications assemblies with both new and existing customers. The Company
expanded its production capacity at the Mexican facility during the third
quarter, to support increased demand in this segment. The trend of OEM's in the
electronic industry to subcontract the assembly process and the proliferation of
electronic components in today's technologically advanced products has enabled
the Company to enjoy sales growth along with our OEM customers. Included in
this segment are sales to two customers which accounted for 23% of consolidated
third quarter net sales and 21% of consolidated nine month sales. One of these
customers accounted for 14% of consolidated third quarter net sales in fiscal
year 1995 and 12% in 1994; nine month sales to this customer accounted for 14%
of consolidated sales in fiscal year 1995 and 11% in 1994. Open orders in this
segment increased 17% above the prior year level.
Sales increased in the Processed Wood Products and Other segment by 13% in the
third quarter and 18% in the nine month period as compared to the prior year.
Sales of processed wood products and plastic components led the increase. Sales
increases of processed wood products were primarily the result of volume
increases on lumber and laminated wood products, with select price increases a
secondary factor. Plastic components experienced volume increases with both new
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and existing customers. Open orders in this segment decreased 15% from the
prior year level.
Consolidated cost of sales, as a percent of sales, increased by 1.3 and
0.4 percentage points when compared to the prior year's three and nine
month periods, respectively. The Company's material cost, as a percent of
sales, continued to trend upward due to inflationary increases from suppliers,
combined with a change in product mix to product lines which carry a higher
material content. The inflationary trend may continue, although expectations
are for increases to occur at a slower rate. Some of the material price
increases from suppliers are being passed along to our customers, but in many
cases competitive pricing pressures and long-term customer pricing agreements
are forcing the Company to absorb these extra costs for a period of time.
Material cost increases were partially offset by efficiency gains in labor and
overhead. Labor costs, as a percent of sales, continued to decrease as the
result of certain fixed labor costs being spread over greater production
volumes, increased labor efficiencies in most product lines and a change in
product mix to product lines requiring less labor content. Overhead, as a
percent of sales, decreased as fixed costs associated with existing production
capacity was further utilized by increased production volumes.
Selling, Administrative and General Expenses increased for the three and nine
month periods as compared to the same periods in the prior year. Increased
selling costs were incurred to support recent, and projected future, increases
in sales and production volumes. As a percent of sales, these costs declined by
1.8 and 0.9 percentage points for the three and nine month periods,
respectively, as compared to the same periods one year earlier.
Operating income within the Furniture and Cabinets segment decreased when
compared to the prior year's third quarter and nine month period due to
decreased operating income on office furniture product lines partially offset by
increases on OEM cabinets and furniture product lines and hospitality product
lines. Operating income on office furniture product lines fell below the prior
year, primarily the result of continued losses on the Company's steel office
furniture product lines combined with long-term customer pricing agreements and
competitive pricing pressures which delayed the Company's ability to pass along
material price increases to customers, particularly on wood product lines. The
Company continued to experience losses on its steel office furniture product
lines as production inefficiencies at the new Idaho facility were compounded by
competitive pricing pressures in this product line. The Company expects
operating losses on steel office furniture product lines to continue into
the 1996 fiscal year. Net operating losses in European operations widened
during the quarter as costs were incurred to enable the Company to begin to
combine production from a leased facility into an existing company-owned
facility. Additional costs are expected to occur in the fourth quarter as terms
of vacating the lease are finalized, after which the Company expects European
operating losses to be reduced. OEM cabinets and furniture product lines
experienced growth in operating income due to increased production volumes
utilizing existing capacity. Operating income on hospitality product lines
benefited from an increase in production volume as compared to the prior year
and a product mix favoring standard product lines. Material cost increases, as
previously discussed, continued to negatively impact profits within this
segment, particularly on wood product lines.
Operating income in the Electronic Contract Assemblies segment increased for the
three and nine month periods when compared to the same periods in the prior
year, primarily the result of increased assembly volumes, which led to improved
utilization of capacity and increased efficiencies. However, operating income
percentages on electronic assemblies product lines are generally lower than
those experienced on the Company's wood component product lines. The
devaluation of the Mexican peso had an insignificant financial impact on the
Company, due to the capital and financing structure of the Company's electronic
assemblies facility in Mexico.
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Operating income in the Processed Wood Products and Other segment increased for
the three and nine month periods when compared to the same periods in the prior
year, primarily as the result of increased production volumes. The Company
continued to experience material price increases, primarily on processed wood
products, some of which has been passed on to customers on a delayed basis.
Interest income continued to remain above the prior year's three and nine month
periods as the result of larger average balances in the Company's fixed income
investment portfolio and higher yields on those investments.
The effective income tax rate for the third quarter was 43.1% in the current
year versus 41.4% in the prior year and for the nine month period was 41.6% in
the current year versus 41.8% in the prior year, excluding the effects of
adopting FASB Statement No. 109, Accounting for Income Taxes, in the prior
year's first quarter. Increased foreign operating losses, for which there are
no immediate tax benefits, was the fundamental reason for the increase in the
consolidated effective income tax rate in the third quarter as compared to the
prior year's third quarter. The adoption of FASB Statement No. 109 lowered
prior year's Taxes on Income by $1.2 million and lowered the effective tax rate
by 2.7 percentage points for the prior year's nine month period.
Net income for the third quarter of fiscal year 1995 was $10,831,000 or 52 cents
per share, an increase of 24% from last year's $8,681,000 or 42 cents per share.
Net income for the first nine months of fiscal year 1995 was $30,914,000 or
$1.47 cents per share, an increase of 18% from last year's $26,165,000 or $1.25
cents per share, excluding the adoption of FASB Statement No. 109. The one time
impact of adopting FASB Statement No. 109 increased the prior year's nine month
net income by $1,200,000, or 5 cents per share, to $27,365,000.
LIQUIDITY AND CAPITAL RESOURCES
Cash, Cash Equivalents and Short-Term Investments totaled $112.0 million at
March 31, 1995 as compared to $91.9 million at June 30, 1994 and $89.7 at March
31, 1994. Working capital and the current ratio were $201.0 million and 2.8 to
1, respectively, at March 31, 1995 as compared to $185.5 million and 2.7 to 1
one year prior. The Company anticipates to maintain a strong liquidity position
throughout fiscal year 1995.
Operating activities continued to generate positive cash flows, which totaled
$59.3 million for the first nine months of fiscal year 1995. Cash flow
generated from operating activities allowed the Company to internally fund $23.3
million of capital investments in production equipment, facilities and
information technology. The Company expects capital investments for fiscal year
1995 to remain below last fiscal year's record level of $53.2 million. The
Company used an additional $17.1 million of cash generated from operating
activities to fund financing activities, primarily to pay dividends and acquire
treasury stock. Net cash flow, excluding the effect of purchases and maturities
of short-term investments, totaled a positive $20.1 million for the first nine
months in fiscal year 1995 as compared to a negative $17.5 million in the
previous year. Considering the Company's strong financial condition, management
believes the Company has a substantial amount of unused short-term and long-term
debt capacity that could be utilized if necessary.
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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
(27) Financial Data Schedule
(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, 1995.
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: April 27, 1995
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KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
NINE MONTHS ENDED MARCH 31, 1995
(UNAUDITED)
<S> <C> <C>
Net income, nine months ended March 31, 1995 . . . . . . . . . . . $30,914,000
Dividends declared:
Class A Common -- $.6225 per share . . . . . . . . . . . . . . . $(4,564,000)
Class B Common -- $.63 per share . . . . . . . . . . . . . . . . (8,663,000)
(13,227,000)
Undistributed earnings . . . . . . . . . . . . . . . . . . . . . . $17,687,000
Undistributed earnings divided
by 21,093,203 average number
of shares outstanding . . . . . . . . . . . . . . . . . . . . . . $.8385
Class A Class B
Undistributed earnings per share . . . . . . . . . . . . . . . . . $ .8385 $ .8385
Assumed distribution of earnings . . . . . . . . . . . . . . . . . .6225 .6300
Earnings per share . . . . . . . . . . . . . . . . . . . . . . . $1.4610 $1.4685
Rounded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1.46 $1.47
</TABLE>
<TABLE>
COMPUTATION OF EARNINGS PER SHARE
NINE MONTHS ENDED MARCH 31, 1994
(UNAUDITED)
<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
Part I-Exhibit(11)
</TABLE>
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<TABLE>
KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
THREE MONTHS ENDED MARCH 31, 1995
(UNAUDITED)
<S>
<C> <C>
Net income, three months ended March 31, 1995 . . . . . . . . . . $10,831,000
Dividends declared:
Class A Common -- $.2075 per share . . . . . . . . . . . . . . $(1,519,000)
Class B Common -- $.21 per share . . . . . . . . . . . . . . . (2,879,000)
(4,398,000)
Undistributed earnings . . . . . . . . . . . . . . . . . . . . . $ 6,433,000
Undistributed earnings divided
by 21,040,406 average number
of shares outstanding . . . . . . . . . . . . . . . . . . . . . $.3057
Class A Class B
Undistributed earnings per share . . . . . . . . . . . . . . . . $.3057 $.3057
Assumed distribution of earnings . . . . . . . . . . . . . . . . .2075 .2100
Earnings per share . . . . . . . . . . . . . . . . . . . . . . $.5132 $.5157
Rounded . . . . . . . . . . . . . . . . . . . . . . . . . . . . $.51 $.52
</TABLE>
<TABLE>
COMPUTATION OF EARNINGS PER SHARE
THREE MONTHS ENDED MARCH 31, 1994
(UNAUDITED)
<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
Part I- Exhibit(11)
</TABLE>
<PAGE>
<PAGE>
April 18, 1995
Kimball International, Inc.
1600 Royal Street
Jasper, IN 47549
To The Board of Directors and Share Owners of 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, 1995, which includes our report dated April 11, 1995,
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.
Very Truly Yours,
Arthur Andersen LLP
ARTHUR ANDERSEN LLP
Part I - Exhibit (15)
<PAGE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
This schedule contains nine month summary financial information extracted
from Kimball International, Inc. 1995 third quarter Form 10-Q and is
qualified in its entirety by reference to such Form 10-Q filing.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1995
<PERIOD-END> MAR-31-1995
<CASH> 18,720
<SECURITIES> 93,288
<RECEIVABLES> 104,564
<ALLOWANCES> 4,136
<INVENTORY> 80,876
<CURRENT-ASSETS> 313,128
<PP&E> 388,925
<DEPRECIATION> 216,439
<TOTAL-ASSETS> 497,712
<CURRENT-LIABILITIES> 112,110
<BONDS> 959
<COMMON> 6,723
0
0
<OTHER-SE> 359,534
<TOTAL-LIABILITY-AND-EQUITY> 497,712
<SALES> 676,318
<TOTAL-REVENUES> 676,318
<CGS> 488,542
<TOTAL-COSTS> 488,542
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 462
<INTEREST-EXPENSE> 118
<INCOME-PRETAX> 52,945
<INCOME-TAX> 22,031
<INCOME-CONTINUING> 30,914
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 30,914
<EPS-PRIMARY> 1.47
<EPS-DILUTED> 1.47
</TABLE>
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To The Board of Directors and Share Owners of 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, 1995 and 1994, the related consolidated statements of income for the
three-month and nine-month periods ended March 31, 1995 and 1994 and the
consolidated statement of cash flows for the nine-month periods ended March 31,
1995 and 1994. 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,
1994, and the related consolidated statements of income, cash flows and share
owners' equity for the year then ended (not presented separately herein), and in
our report dated August 3, 1994, 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, 1994, is
fairly stated, in all material respects, in relation to the consolidated
statement of financial condition from which it has been derived.
Arthur Andersen LLP
ARTHUR ANDERSEN LLP
Chicago, Illinois,
April 11, 1995
Part II - Exhibit (99)
