<PAGE>
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 December 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 January
20, 1995 were:
Class A Common Stock - 7,335,723 shares
Class B Common Stock - 13,729,816 shares
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<TABLE>
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
- December 31, 1994 (Unaudited), June 30, 1994
and December 31, 1993 (Unaudited) . . . . . . . . . . . . . . 3
Consolidated Statement of Income (Unaudited)
- Six Months Ended December 31, 1994 and 1993 . . . . . . . . . 4
- Three Months Ended December 31, 1994 and 1993 . . . . . . . . 5
Consolidated Statement of Cash Flows (Unaudited)
- Six Months Ended December 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 4(c). Submission of Matters to a Vote of Security Holders . . . . 11
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . 11-12
SIGNATURES . . . . . . . . . . . . . . . . . . . . 12
- 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)
</TABLE>
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<TABLE>
PART I.
FINANCIAL INFORMATION
KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
(dollars in thousands)
<CAPTION>
(unaudited) (unaudited)
December 31, June 30, December 31,
ASSETS 1994 1994 1993
<S> <C> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ 4,990 $ 15,452 $ 4,137
Short-term investments at cost, estimated 81,946 76,494 84,164
market value of $81,327, $76,479 and $84,400
Accounts and notes receivable, less allow-
ance for possible losses of $3,923,
$4,036 and $4,855 101,170 96,118 87,066
Inventories 82,216 81,083 89,803
Other 19,434 19,091 18,381
Total Current Assets 289,756 288,238 283,551
PROPERTY AND EQUIPMENT - at cost, less
accumulated depreciation of $214,133,
$205,027 and $195,974 175,320 171,243 161,731
OTHER ASSETS 11,837 11,932 11,532
Total Assets $476,913 $471,413 $456,814
LIABILITIES AND SHARE OWNERS' EQUITY
CURRENT LIABILITIES:
Loans payable to banks $ 1,574 $ 1,619 $ 2,329
Current maturities of long-term debt 462 1,196 1,843
Accounts payable 34,340 33,133 36,340
Dividends payable 4,405 4,426 4,426
Accrued expenses 56,730 61,790 52,448
Total Current Liabilities 97,511 102,164 97,386
OTHER LIABILITIES:
Long-term debt, less current maturities 1,045 811 1,029
Deferred income taxes and other 17,988 17,486 16,450
Total Other Liabilities 19,033 18,297 17,479
SHARE OWNERS' EQUITY:
Common stock 6,723 6,723 6,723
Additional paid-in capital 812 791 791
Foreign currency translation adjustment 1,368 836 427
Retained earnings 361,557 350,304 341,671
370,460 358,654 349,612
Less: Treasury stock, at cost (10,091) (7,702) (7,663)
Total Share Owners' Equity 360,369 350,952 341,949
Total Liabilities and Share Owners' Equity $476,913 $471,413 $456,814
See Notes to Consolidated Financial Statements
</TABLE>
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<TABLE>
KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(dollars in thousands except per share amounts)
<CAPTION>
(unaudited)
Six Months Ended
December 31,
1994 1993
<S> <C> <C>
Net Sales $439,499 $403,686
Cost of Sales 315,611 289,940
Gross Profit 123,888 113,746
Selling, Administrative and General Expenses 91,726 85,645
Operating Income 32,162 28,101
Other Income (Expense):
Interest Expense (58) (202)
Interest Income 2,303 1,055
Other - net (501) 1,179
1,744 2,032
Income Before Taxes on Income 33,906 30,133
Taxes on Income 13,823 11,449
Net Income $ 20,083 $ 18,684
Earnings Per Share of Common Stock:
Net Income:
Class A Common Stock $.95 $.88
Class B Common Stock $.95 $.88
Dividends Per Share of Common Stock:
Class A Common Stock $.41 1/2 $.41 1/2
Class B Common Stock $.42 $.42
Average total number of shares outstanding
Class A and B Common Stock 21,119,602 21,166,157
See Notes to Consolidated Financial Statements
</TABLE>
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<TABLE>
KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(dollars in thousands except per share amounts)
<CAPTION>
(unaudited)
Three Months Ended
December 31,
1994 1993
<S> <C> <C>
Net Sales $230,088 $205,804
Cost of Sales 165,058 149,193
Gross Profit 65,030 56,611
Selling, Administrative and General Expenses 46,711 43,149
Operating Income 18,319 13,462
Other Income (Expense):
Interest Expense (13) (61)
Interest Income 1,227 472
Other - net (142) 291
1,072 702
Income Before Taxes on Income 19,391 14,164
Taxes on Income 7,731 5,760
Net Income $ 11,660 $ 8,404
Earnings Per Share of Common Stock:
Net Income:
Class A Common Stock $.55 $.40
Class B Common Stock $.55 $.40
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 21,081,706 21,164,358
See Notes to Consolidated Financial Statements
</TABLE>
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<TABLE>
KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(dollars in thousands)
<CAPTION>
(unaudited)
Six Months Ended
December 31,
1994 1993
<S> <C> <C>
Cash Flows From Operating Activities:
Net income $ 20,083 $18,684
Non-cash charges (credits) to net income:
Depreciation and amortization 14,886 14,188
Gain on sales of assets (116) (542)
Deferred income tax provision 13 (1,223)
Other deferred charges 933 ---
(Increase) Decrease in current assets:
Accounts and notes receivable (5,052) 557
Inventories (1,134) (5,137)
Other current assets (739) (986)
Increase (Decrease)in current liabilities:
Accounts payable 1,207 (5,360)
Accrued expenses (5,533) (828)
Net Cash Provided By Operating Activities 24,548 19,353
Cash Flows From Investment Activities:
Capital expenditures (17,644) (22,958)
Proceeds from sales of assets 566 648
Increase in other assets (656) (3,791)
Purchases of short-term investments (67,413) (4,560)
Maturities of short-term investments 61,961 22,993
Net Cash Used For Investment Activities (23,186) (7,668)
Cash Flows From Financing Activities:
Decrease in short-term borrowings (45) (1,150)
Decrease in long-term debt (871) (947)
Dividends paid (8,850) (8,852)
Acquisition of treasury stock, net of sales (2,390) (300)
Other - net 250 (895)
Net Cash Used For Financing Activities (11,906) (12,144)
Effect of Exchange Rate Change on
Cash and Cash Equivalents 82 (29)
Net Decrease in Cash and Cash Equivalents (10,462) (488)
Cash and Cash Equivalents-Beginning of Period 15,452 4,625
Cash and Cash Equivalents-End of Period $ 4,990 $ 4,137
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for:
Income taxes $ 14,638 $12,834
Interest $ 160 $ 196
Total Cash, Cash Equivalents and
Short-Term Investments:
Cash and cash equivalents $ 4,990 $ 4,137
Short-term investments 81,946 84,164
Totals $ 86,936 $88,301
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>
December 31, June 30, December 31,
1994 1994 1993
<S> <C> <C> <C>
Raw Materials $43,667 $42,700 $50,581
Work-in-Process 14,472 14,603 15,386
Finished Goods 24,077 23,780 23,836
Total $82,216 $81,083 $89,803
</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) 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 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 six month
periods ended December 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
Second quarter sales increased 12% when compared to the previous year's second
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 over the prior year. Year-to-date sales increased
9% as compared to the same period a year earlier. Net income for the second
quarter increased 38% from the prior year's second quarter, as each of the
Company's three business segments recorded double digit increases over the prior
year. Year-to-date net income increased 14% as compared to the same period one
year ago, after excluding the one-time impact of adopting FASB Statement No.
109, Accounting for Income Taxes, in the prior year's first quarter. Open order
levels increased across all major product lines at quarter-end when compared to
prior year levels.
RESULTS OF OPERATIONS - THREE AND SIX MONTHS ENDED DECEMBER 31, 1994 COMPARED TO
THREE AND SIX MONTHS ENDED DECEMBER 31, 1993
In the Furniture and Cabinets segment, second quarter and six month period sales
increased 10% and 6%, respectively, when compared to the same periods in the
prior year. Leading the sales increase in this segment were certain office
furniture product lines and original equipment manufacturer (OEM) product lines.
The Company continued to experience volume increases in certain wood office
furniture systems and casegoods product lines based on the continuing trend
towards value-oriented products with flexible configurations. Sales of steel
office furniture product lines were below the three and six month period levels
in the prior year, as production start-up problems at the new Idaho facility
resulted in reduced shipments during the current fiscal year. Open order levels
in the office furniture product line increased 8% over the prior year levels.
OEM cabinets and furniture product lines experienced volume increases in OEM
furniture product lines, in addition to seasonally high volume increases in both
wood and vinyl television and speaker cabinet sales. Other OEM wood product
sales continued to increase over the prior year's three and six month periods as
the Company continued to increase its production and sale of OEM products to
utilize excess plant capacity at the Company's domestic piano production
facility. Open orders in OEM product lines increased 45% over the prior year
level.
Electronic Contract Assemblies segment sales for the second quarter and six
months increased 14% and 13%, respectively, above the same periods in the
previous year as the result of volume increases in computer, automotive and
telecommunications assemblies. The Company experienced sales volume increases
in both mature product lines and new product lines, which utilize the next
generation of technology. Open orders in this segment ended the quarter at 35%
above the prior year level. Included in this segment are sales to two customers
which accounted for 20% of consolidated second quarter net sales and 19% of
consolidated six month sales. One of these customers accounted for 13% of
consolidated second quarter net sales in fiscal year 1995 and 12% in 1994; six
month sales to this customer accounted for 13% of consolidated sales in fiscal
year 1995 and 11% in 1994.
Processed Wood Products and Other segment sales in the current year exceeded the
prior year sales in both the second quarter and six month periods. Sales
increases occurred on plastic components, lumber and dimension wood products.
Second quarter sales increases on lumber and dimension products were the result
of both volume and selected price increases, whereas increases during the six
month period were mostly attributed to volume increases when compared to the
same period in the prior year. Sales volume increases experienced in plastic
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components was attributed to both new and existing customers. Open orders in
this segment increased 24% above the prior year level.
Consolidated cost of sales, as a percent of sales, decreased by 0.8 percentage
point when compared to the prior year's three month period and remained flat
when compared to the prior year's six month period. The Company's material
cost, as a percent of sales, continued to trend upward due to material cost
price increases from suppliers and a change in product mix to product lines
which carry a higher material content. Some of the material price increases
from suppliers are being passed along to our customers, but in many cases
competitive pressures and long-term pricing agreements are forcing the
Company to absorb these extra costs for a period of time. Labor costs, as a
percent of sales, continued to decrease as the result of certain fixed labor
costs being spread over greater production volume, increased labor efficiencies
and a change in product mix to product lines requiring less labor content.
Overhead, as a percent of sales, decreased as existing production capacity was
further utilized by increased production volumes.
Selling, Administrative and General Expenses increased for the three and six
month periods as compared to the same periods in the prior year. Increased
selling costs and certain variable costs were incurred to support recent, and
projected future, increases in sales and production volumes. As a percent of
sales, these costs declined by 0.7 and 0.4 percentage point for the three and
six month periods, respectively, as compared to the same periods one year
earlier.
Operating income within the Furniture and Cabinets segment increased when
compared to the prior year's second quarter due to increased operating income on
most office furniture product lines, lodging product lines and OEM cabinets and
furniture product lines, reduced, in part by losses incurred on steel office
furniture product lines. Six month operating income was below the prior year,
primarily the result of losses on the Company's steel office furniture product
lines somewhat offset by increased operating income on most other office
furniture product lines, lodging product lines, OEM cabinets and furniture
product lines. The Company continued to experience losses on its steel office
furniture product lines as inefficiencies associated with start-up operations in
the new Idaho facility were compounded by problems with new equipment used in
critical production processes, causing delays in both production and the
employee learning curve. As a result, monthly break-even levels are not
expected to be attained on these product lines during the 1995 fiscal year.
European operations continued to operate at a loss during the three and six
month periods, causing the Company to renew its forecast of operating losses
in the near term. The OEM cabinets and furniture product line experienced
growth in operating income through increased sales levels and labor
efficiencies. Operating income on lodging product lines benefited from a
change in sales mix toward standardized product lines and an increase in
sales volume as compared to the prior year's second quarter. Material cost
increases, as previously discussed, continue to negatively impact profits
within this segment, particularly on wood product lines.
Operating income increased in the Electronic Contract Assemblies segment for the
three and six month periods when compared to the same periods in the prior year,
primarily the result of increased sales volumes, which led to improved
utilization of existing 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.
Operating income in the Processed Wood Products and Other segment increased for
the three and six month periods when compared to the same periods in the prior
year, primarily as the result of increased sales 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.
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Interest income was above the prior year's three and six month periods due to
larger average balances in the Company's fixed income investment portfolio and
higher yields on those investments.
The effective income tax rate for the second quarter was 39.9% in the current
year versus 40.7% in the prior year and for the six month period was 40.8% in
the current year versus 42.0% in the prior year, excluding the effects of
adopting FASB Statement No. 109, Accounting for Income Taxes, in the prior
year's first quarter. Foreign operating losses, for which there are no
immediate tax benefits, comprised a smaller percent of consolidated pretax
income, which resulted in a decrease in the consolidated effective income tax
rate in the three and six month periods as compared to one year earlier. 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 4.0 percentage points for the
prior year's six month period.
Net income for the second quarter of fiscal year 1995 was $11,660,000 or 55
cents per share, an increase of 38% from last year's $8,404,000 or 40 cents per
share. Net income for the first six months of fiscal year 1995 was $20,083,000
or 95 cents per share, an increase of 14% from last year's $17,484,000 or 83
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 six month
net income by $1,200,000, or 5 cents per share, to $18,684,000.
LIQUIDITY AND CAPITAL RESOURCES
Cash, Cash Equivalents and Short-Term Investments totaled $86.9 million at
December 31, 1994 as compared to $91.9 million at June 30, 1994 and $88.3
million one year ago. Working capital and the current ratio were $192.2 million
and 3.0 to 1, respectively, at December 31, 1994.
Operating activities continued to generate positive cash flows, which totaled
$24.5 million for the first six months of fiscal year 1995. The Company used
cash flow generated from operating activities to internally fund $18.3 million
of capital investments for the future, including investments in production
equipment, facilities and information technology. The Company expects capital
investments for fiscal year 1995 to remain below last year's record level. The
Company used an additional $11.9 million of cash 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
negative $5.0 million for the first six months in fiscal year 1995 as compared
to a negative $18.9 million in the previous year.
Considering the Company's strong financial position, management believes the
Company has a substantial amount of unused short-term and long-term debt
capacity that could be utilized if necessary. The Company anticipates to
maintain a strong liquidity position throughout fiscal year 1995.
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PART II.
OTHER INFORMATION
Item 4(c) - Submission of Matters to a Vote of Security Holders
The Company's Annual Meeting of Share Owners was held on October 11, 1994.
The Board of Directors was elected in its entirety, based on the following
election results:
<TABLE>
<CAPTION>
Nominees as Directors by
Holders of Class A Common Stock Votes For* Votes Withheld
<S> <C> <C>
Thomas L. Habig 6,971,050 7,070
Douglas A. Habig 6,971,050 7,070
James C. Thyen 6,970,890 7,230
John B. Habig 6,971,050 7,070
Anthony P. Habig 6,971,050 7,070
Ronald J. Thyen 6,971,050 7,070
Christine M. Vujovich 6,971,050 7,070
Dr. Jack R. Wentworth 6,971,050 7,070
Brian K. Habig 6,971,050 7,070
John T. Thyen 6,970,890 7,230
Gary P. Critser 6,971,050 7,070
* Votes for nominees as Directors by holders of Class A Common Stock
totaled either 6,971,050 or 6,970,890 shares, with either amount
representing 94.7% of the total 7,357,323 Class A shares outstanding
and eligible to vote.
<CAPTION>
Nominee as Director by
Holders of Class B Common Stock Votes For* Votes Withheld
<S> <C> <C>
Leonard B. Marshall, Jr. 11,941,257 59,402
* Votes for nominee as Director by holders of Class B Common Stock
totaled 11,941,257 shares, or 86.5% of the total 13,805,491 Class B
shares outstanding and eligible to vote.
</TABLE>
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
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No reports on Form 8-K were filed during the three months
ended December 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: February 2, 1995
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<TABLE>
KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
SIX MONTHS ENDED DECEMBER 31, 1994
(UNAUDITED)
<S> <C> <C>
Net income, six months ended December 31, 1994 . . . . . . . . . . . $20,083,000
Dividends declared:
Class A Common -- $.4150 per share . . . . . . . . . . . . . . . . $(3,045,000)
Class B Common -- $.42 per share . . . . . . . . . . . . . . . . . (5,784,000)
(8,829,000)
Undistributed earnings . . . . . . . . . . . . . . . . . . . . . . . $11,254,000
Undistributed earnings divided
by 21,119,602 average number
of shares outstanding . . . . . . . . . . . . . . . . . . . . . . . $.5329
Class A Class B
Undistributed earnings per share . . . . . . . . . . . . . . . . . . $.5329 $.5329
Assumed distribution of earnings . . . . . . . . . . . . . . . . . . .4150 .4200
Earnings per share . . . . . . . . . . . . . . . . . . . . . . . . $.9479 $.9529
Rounded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $.95 $.95
</TABLE>
<TABLE>
COMPUTATION OF EARNINGS PER SHARE
SIX MONTHS ENDED DECEMBER 31, 1993
(UNAUDITED)
<S> <C> <C>
Net income, six months ended December 31, 1993 . . . . . . . . . . . $18,684,000
Dividends declared:
Class A Common -- $.4150 per share . . . . . . . . . . . . . . . . $(3,057,000)
Class B Common -- $.42 per share . . . . . . . . . . . . . . . . . (5,795,000)
(8,852,000)
Undistributed earnings . . . . . . . . . . . . . . . . . . . . . . . $ 9,832,000
Undistributed earnings divided
by 21,166,157 average number
of shares outstanding . . . . . . . . . . . . . . . . . . . . . . . $.4645
Class A Class B
Undistributed earnings per share . . . . . . . . . . . . . . . . . . $.4645 $.4645
Assumed distribution of earnings . . . . . . . . . . . . . . . . . . .4150 .4200
Earnings per share . . . . . . . . . . . . . . . . . . . . . . . . $.8795 $.8845
Rounded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $.88 $.88
Part I - Exhibit (11)
</TABLE>
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<TABLE>
KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
THREE MONTHS ENDED DECEMBER 31, 1994
(UNAUDITED)
<S> <C> <C>
Net income, three months ended December 31, 1994 . . . . . . . . . . $11,660,000
Dividends declared:
Class A Common -- $.2075 per share . . . . . . . . . . . . . . . . $(1,522,000)
Class B Common -- $.21 per share . . . . . . . . . . . . . . . . . (2,883,000)
(4,405,000)
Undistributed earnings . . . . . . . . . . . . . . . . . . . . . . . $ 7,255,000
Undistributed earnings divided
by 21,081,706 average number
of shares outstanding . . . . . . . . . . . . . . . . . . . . . . . $.3441
Class A Class B
Undistributed earnings per share . . . . . . . . . . . . . . . . . . $.3441 $.3441
Assumed distribution of earnings . . . . . . . . . . . . . . . . . . .2075 .2100
Earnings per share . . . . . . . . . . . . . . . . . . . . . . . . $.5516 $.5541
Rounded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $.55 $.55
</TABLE>
<TABLE>
COMPUTATION OF EARNINGS PER SHARE
THREE MONTHS ENDED DECEMBER 31, 1993
(UNAUDITED)
<S> <C> <C>
Net income, three months ended December 31, 1993 . . . . . . . . . . $8,404,000
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 . . . . . . . . . . . . . . . . . . . . . . . $3,978,000
Undistributed earnings divided
by 21,164,358 average number
of shares outstanding . . . . . . . . . . . . . . . . . . . . . . . $.1880
Class A Class B
Undistributed earnings per share . . . . . . . . . . . . . . . . . . $.1880 $.1880
Assumed distribution of earnings . . . . . . . . . . . . . . . . . . .2075 .2100
Earnings per share . . . . . . . . . . . . . . . . . . . . . . . . $.3955 $.3980
Rounded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $.40 $.40
Part I - Exhibit (11)
</TABLE>
<PAGE>
<PAGE>
February 2, 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
December 31, 1994, which includes our report dated January 16, 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)
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
This schedule contains six month summary financial information extracted from
Kimball International, Inc. 1995 second 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> 6-MOS
<FISCAL-YEAR-END> JUN-30-1995
<PERIOD-END> DEC-31-1994
<CASH> 4,990
<SECURITIES> 81,946
<RECEIVABLES> 105,093
<ALLOWANCES> 3,923
<INVENTORY> 82,216
<CURRENT-ASSETS> 289,756
<PP&E> 389,453
<DEPRECIATION> 214,133
<TOTAL-ASSETS> 476,913
<CURRENT-LIABILITIES> 97,511
<BONDS> 1,045
<COMMON> 6,723
0
0
<OTHER-SE> 353,646
<TOTAL-LIABILITY-AND-EQUITY> 476,913
<SALES> 439,499
<TOTAL-REVENUES> 439,499
<CGS> 315,611
<TOTAL-COSTS> 315,611
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 172
<INTEREST-EXPENSE> 58
<INCOME-PRETAX> 33,906
<INCOME-TAX> 13,823
<INCOME-CONTINUING> 20,083
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 20,083
<EPS-PRIMARY> .95
<EPS-DILUTED> .95
</TABLE>
<PAGE>
<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 December 31, 1994, and the related condensed consolidated statements of
income for the three-month and six-month periods ended December 31, 1994 and
1993, and the consolidated statement of cash flows for the six-month periods
ended December 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,
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 financial 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,
January 16, 1995
Part II - Exhibit (99)
