<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 September 30, 1998
__ 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
October 20, 1998 were:
Class A Common Stock - 14,370,559 shares
Class B Common Stock - 26,319,519 shares
- 1 -<PAGE>
<PAGE>
<TABLE>
KIMBALL INTERNATIONAL, INC.
FORM 10-Q
INDEX
<CAPTION>
PAGE NO.
<S> <C>
PART I FINANCIAL INFORMATION:
Item 1. Financial Statements
Condensed Consolidated Balance Sheets
- September 30, 1998, (Unaudited) and June 30, 1998 . . . . . . 3
Consolidated Statements of Income (Unaudited)
- Three Months Ended September 30, 1998 and 1997. . . . . . . . 4
Consolidated Statements of Cash Flows (Unaudited)
- Three Months Ended September 30, 1998 and 1997 . . . . . . . .5
Notes To Consolidated Financial Statements (Unaudited). . . . . 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations . . . . . . . . . 7-11
Item 3. Quantitative and Qualitative Disclosures about Market Risk. . . 12
PART II OTHER INFORMATION:
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . 13
Signatures . . . . . . . . . . . . . . . . . . . . . . . . . 13
Exhibit Index . . . . . . . . . . . . . . . . . . . . . . . 14
</TABLE>
- 2 -<PAGE>
<PAGE>
<TABLE>
PART I.
FINANCIAL INFORMATION
KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
<CAPTION>
(unaudited)
September 30, June 30,
<S> 1998 1998
ASSETS <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ 1,328 $ 16,757
Short-term investments 131,014 156,010
Receivables, less allowances
of $4,088 and $4,023, respectively 132,233 119,170
Inventories 99,739 96,303
Other 25,458 24,697
Total Current Assets 389,772 412,937
PROPERTY AND EQUIPMENT - at cost, less
accumulated depreciation of $252,269 and
$245,751, respectively 192,715 182,798
OTHER ASSETS 49,879 33,903
Total Assets $632,366 $629,638
LIABILITIES AND SHARE OWNERS' EQUITY
CURRENT LIABILITIES:
Loans payable $ 8,393 $ 4,318
Current maturities of long-term debt 442 434
Accounts payable 62,743 60,907
Dividends payable 6,441 6,521
Accrued expenses 81,968 81,030
Total Current Liabilities 159,987 153,210
OTHER LIABILITIES:
Long-term debt, less current maturities 2,352 1,856
Deferred income taxes and other 25,225 25,949
Total Other Liabilities 27,577 27,805
SHARE OWNERS' EQUITY:
Common stock 2,151 2,151
Additional paid-in capital 6,018 6,022
Retained earnings 471,002 464,880
Foreign currency translation adjustment 1,523 1,535
Unrealized gain on available-for-sale securities 1,917 2,174
Less: Treasury stock, at cost (37,809) (28,139)
Total Share Owners' Equity 444,802 448,623
Total Liabilities and Share Owners' Equity $632,366 $629,638
See Notes to Consolidated Financial Statements
</TABLE>
- 3 -<PAGE>
<PAGE>
<TABLE>
KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(amounts in thousands except per share amounts)
<CAPTION>
(unaudited)
Three Months Ended
September 30,
1998 1997
<S> <C> <C>
Net Sales $264,646 $245,857
Cost of Sales 186,089 171,577
Gross Profit 78,557 74,280
Selling, Administrative
and General Expenses 61,982 56,277
Operating Income 16,575 18,003
Other Income (Expense):
Interest Expense (105) (95)
Interest Income 1,964 2,278
Other - net 1,057 646
Other Income - net 2,916 2,829
Income Before Taxes on Income 19,491 20,832
Taxes on Income 6,928 7,803
Net Income $ 12,563 $ 13,029
Earnings Per Share of Common Stock:
Basic:
Class A Common Stock $ .31 $ .31
Class B Common Stock $ .31 $ .31
Diluted:
Class A Common Stock $ .30 $ .31
Class B Common Stock $ .31 $ .31
Dividends Per Share of Common Stock:
Class A Common Stock $ .155 $ .14375
Class B Common Stock $ .160 $ .145
Average total number of shares
outstanding Class A and B
Common Stock:
Basic 40,930 41,474
Diluted 41,179 41,872
See Notes to Consolidated Financial Statements. Share data has been adjusted for the 2-for-1
common stock split effective on November 12, 1997.
</TABLE>
- 4-<PAGE>
<PAGE>
<TABLE>
KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
<CAPTION>
(unaudited)
Three Months Ended
September 30,
1998 1997
<S> <C> <C>
Cash Flows From Operating Activities:
Net income $ 12,563 $ 13,029
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 9,252 8,194
Gain on sales of assets (208) (148)
Deferred income tax and other deferred charges (2,338) 640
Change in current assets and liabilities:
Receivables (13,063) (14,686)
Inventories (3,436) (7,756)
Other current assets 469 775
Accounts payable 1,836 2,975
Accrued expenses 1,029 (3,056)
Net Cash Provided/(Used) By Operating Activities 6,104 (33)
Cash Flows From Investing Activities:
Capital expenditures (17,977) (8,639)
Proceeds from sales of assets 340 298
Increase in other assets (17,357) (585)
Purchases of held-to-maturity investments (400) (4,415)
Maturities of held-to-maturity investments 5,410 17,402
Purchases of available-for-sale securities (13,462) (20,149)
Sales and maturities of available-for-sale securities 33,575 15,000
Net Cash Used For Investing Activities (9,871) (1,088)
Cash Flows From Financing Activities:
Net increase in short-term borrowings 4,075 121
Net change in long-term debt 504 (156)
Dividends paid to share owners (6,521) (5,989)
Acquisition of treasury stock, net of sales (10,475) ---
Proceeds from exercise of stock options 797 622
Other - net (29) (161)
Net Cash Used For Financing Activities (11,649) (5,563)
Effect of Exchange Rate Change on
Cash and Cash Equivalents (13) 44
Net Decrease in Cash and Cash Equivalents (15,429) (6,640)
Cash and Cash Equivalents-Beginning of Period 16,757 18,818
Cash and Cash Equivalents-End of Period $ 1,328 $ 12,178
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for:
Income taxes $ 125 $ 225
Interest $ 125 $ 121
Total Cash, Cash Equivalents and
Short-Term Investments:
Cash and cash equivalents $ 1,328 $ 12,178
Short-term investments 131,014 142,196
Totals $132,342 $154,374
See Notes to Consolidated Financial Statements
</TABLE>
- 5 -<PAGE>
<PAGE>
KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
(1) The accompanying consolidated financial statements of Kimball
International, Inc. ("the Company") are unaudited and have been prepared
in accordance with the instructions to Form 10-Q. As such, certain
information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted, although the Company believes
that the disclosures are adequate to make the information presented not
misleading. All significant intercompany transactions and balances have
been eliminated. Management believes the financial statements include all
adjustments (consisting only of normal recurring adjustments) considered
necessary to present fairly the financial statements of the interim
period. 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>
September 30, June 30,
1998 1998
<S> <C> <C>
Raw Materials $48,551 $51,967
Work-in-Process 12,833 12,971
Finished Goods 38,355 31,365
Total $99,739 $96,303
For interim reporting, LIFO inventories are computed based on estimated year-end
quantities and interim changes in 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 Financial
Accounting Standards Board Statement No. 128 for computing earnings per
share for two class common stock due to the dividend preference of Class
B Common Stock. The Company adopted FASB Statement No. 128 effective with
the second quarter of fiscal year 1998, disclosing both basic and diluted
earnings per share. The Company's outstanding stock options are
considered when calculating diluted earnings per share. Prior period
amounts have been restated to compute EPS on this method.
(4) At the annual meeting held on October 28, 1997, the Company's Share Owners
approved a two-for-one stock split on the Company's Class A and Class B
Common Stock. The stock split became effective on November 12, 1997.
Financial information contained in this report, including prior period
share and per share amounts, has been adjusted to reflect the impact of
the common stock split. Additional information may be found in the
Company's 10-K for the twelve month period ended June 30, 1998, under
the caption Part II: Item 8 - Financial Statements and Supplementary Data.
(5) Effective July 1, 1998, the Company adopted Financial Accounting Standards
Board Statement No. 130 - Comprehensive Income. Comprehensive income
includes all changes in equity during a period except those resulting from
investments by, and distributions to, Share Owners. Comprehensive income,
shown net of tax if applicable, for the three month period ending September
30, 1998 and 1997 is as follows: (in thousands)
<TABLE>
<CAPTION>
Three Months Ended
September 30,
1998 1997
<S> <C> <C>
Net Income $12,563 $13,029
Unrealized (Loss)/Gain on
Available-For-Sale-Securities (257) 358
Foreign Currency Translation Adjustment (12) (174)
Comprehensive Income $12,294 $13,213
</TABLE>
(6) On September 15, 1998, the Company acquired with available cash on hand,
the assets of Transwall, Inc. of Pennsylvania, manufacturers of systems
office furniture products. The acquisition was accounted for as a
purchase with operating results included in the Company's Consolidated
Statement of Income from the date of acquisition. Transwall's results
of operations were immaterial to the Company's Consolidated Statement of
Income for the current quarter.
- 6 -<PAGE>
<PAGE>
Management's Discussion and Analysis
of Financial Condition and Results of Operations
OVERVIEW
First quarter fiscal year 1999 sales of $264,646,000 surpassed first quarter
1998 sales by 8%. Net income was $12,563,000, a decrease of 4% from the prior
year. Class B diluted earnings per share remained constant with the prior year
at $0.31.
RESULTS OF OPERATIONS - THREE MONTHS ENDED SEPTEMBER 30, 1998 COMPARED TO THREE
MONTHS ENDED SEPTEMBER 30, 1997
First quarter 1999 net sales increased in two of the Company's three business
segments when compared to the prior year - the Furniture and Cabinets segment
and the Processed Wood Product and Other segment. The Electronic Contract
Assemblies segment experienced a decline in net sales during this same time
period. During the first quarter, a product mix shift occurred away from
Electronic Contract Assemblies to Furniture and Cabinets, when compared to the
first quarter of fiscal 1998. Current year first quarter operating income
slipped 8% to $16,575,000, from $18,003,000 in 1998.
FURNITURE AND CABINETS
The Furniture and Cabinets segment, the Company's largest segment, saw a 14%
increase in first quarter net sales over the prior year. Quarterly sales in the
major product groups within this segment surpassed first quarter 1998 sales,
including office furniture, original equipment manufacturer's (OEM) cabinets and
furniture, and lodging furniture.
Increased volumes resulted in record quarterly office furniture sales in the
first quarter of fiscal 1999. Sales of casegoods, seating and systems products
all exceeded the prior year, while sales of storage products declined. First
quarter office furniture sales growth significantly outpaced the most recent
Business and Institutional Furniture Manufacturer's Association (BIFMA) industry
statistics for the three-month period ending August 1998. On September 15,
1998, the Company finalized the purchase of Transwall, Inc., a manufacturer of
stackable panel systems and floor-to-ceiling products, which will increase its
already extensive office furniture product offering. The acquisition was
accounted for as a purchase, with results of operations included in consolidated
results from the date of acquisition, and was financed with available cash on
hand. Transwall's first quarter results were not material to the consolidated
operating results.
First quarter fiscal 1999 net sales for cabinets and furniture product lines
surpassed 1998 levels, with volume increases in television cabinets and stands
more than offsetting declines in audio speaker cabinets. While sales of
Kimball-branded home furniture increased in the first quarter of fiscal 1999,
total sales of residential furniture, which includes contract residential
furniture sales, decreased in comparison to 1998. In the first quarter of the
prior year, sales of OEM cabinets and stands in the home entertainment market
were negatively impacted by the relocation of a large customer and its longer
than anticipated start up time, resulting in lower volumes in 1998. The
- 7 -
<PAGE>
Company's production flexibility allows it to utilize portions of available
production capacity within this group to support and balance increased
production schedules of other product lines within this segment.
Net sales of lodging furniture in the first quarter of fiscal 1999 increased
from 1998. Both the standard product offering as well as custom-made product
experienced double digit growth when compared to the prior year. Higher
volumes, particularly in the Company's standard product offering, are partially
the result of value-reengineering of products, which reduced costs and helped to
lower prices to the customer while still meeting customer defined quality,
making the product more competitive in the marketplace.
Increased sales helped attribute to slightly higher first quarter 1999 operating
income in the Furniture and Cabinets segment over 1998 levels. Cost of goods
sold was higher in 1999 as increased material costs, as a percent of sales,
particularly evident in the office furniture group due to sales discounting,
were partially offset by lower direct labor and overhead costs, as a percent of
sales. Both selling and administrative costs were higher in dollar terms over
the prior year. Selling expenses were lower, as a percent of sales, in the
current year primarily the result of focused cost reduction initiatives. As the
office furniture group's market share grows in a price competitive marketplace,
sales-based incentive costs and price discounts remain at elevated levels.
ELECTRONIC CONTRACT ASSEMBLIES
Net sales in the first quarter in the Electronic Contract Assemblies segment
fell 6% below the prior year, primarily the result of decreased volumes in
computer-related products. To a lesser extent, fiscal 1999 first quarter
results were unfavorably impacted by the General Motors (GM) labor strike which
was settled in July 1998, as the Electronic Contract Assemblies segment
assembles components that are installed in GM vehicles. Included in this segment
are sales to one customer which accounted for 13% and 15% of consolidated sales
in the first quarter of fiscal 1999 and 1998, respectively.
As first quarter sales declined in this segment, operating income also decreased
when compared to the prior year. Cost of goods sold, as a percent of sales,
increased as lower material costs, as a percent of sales, were more than offset
by higher direct labor and overhead costs. Selling costs remained fairly stable
with the prior year, while administrative costs increased from one year ago on
increased investments in people and higher technology costs. The Company
continues to build its infrastructure to support growth opportunities, as
evidenced by the recent expansion of its Mexican production facility. This
segment's working capital carries a higher degree of risk than the Company's
other segments due to rapid technological changes and the contract nature of
this industry.
PROCESSED WOOD PRODUCTS AND OTHER
Outside sales in the Processed Wood Products and Other segment, which accounted
for 6% of consolidated outside sales in the first quarter of fiscal 1999,
- 8 -
<PAGE>
increased 14% over the prior year. An increased emphasis by the Company to
grow outside sales in this segment aided first quarter results, as new product
offerings and new customers complemented the effort. First quarter sales of
dimension, veneer, and laminate products, plastic components and metal parts all
increased from one year ago. Internal sales of this segment to the Company's
other operations, particularly the Furniture and Cabinets segment, provide a key
link in the Company's vertically integrated supply chain. Operating income
remained flat in the current year on higher sales. Lower material and overhead
costs, as a percent of sales, were partially offset by increased labor costs, as
a percent of sales. Selling expenses, as a percent of sales, increased in the
current year first quarter.
On August 24, 1998, the Company completed the purchase of an 11,700-acre land
parcel for $13.5 million which nearly doubles the timberland holdings of the
Company. The acquisition was made to help support the procurement of raw
materials in this segment and to provide possible future manufacturing facility
locations. The acquisition was financed with available cash on hand.
CONSOLIDATED OPERATIONS
Other income in the first quarter of fiscal 1999 increased slightly over the
prior year. Interest income decreased when compared to the prior year as the
Company's investment portfolio mix is more heavily weighted in tax-free
municipal bonds with a lower pre-tax interest rate.
The effective income tax rate decreased 2.0 percentage points for the first
quarter of fiscal 1999 when compared to the prior year due to a lower effective
state income tax rate.
Net income was $12,563,000, a decrease of 4% from the prior year level of
$13,029,000. Class B diluted earnings per share remained constant with the
prior year at $0.31. The earnings per share amounts reflect a two-for-one stock
split which occurred during the second quarter of the prior fiscal year. All
prior year amounts have been restated.
LIQUIDITY AND CAPITAL RESOURCES
The Company's aggregate of cash, cash equivalents, and short-term investments
decreased from $173 million at the end of fiscal 1998 to $132 million at the end
of the first quarter in fiscal 1999 due primarily to cash outlays during the
quarter for strategic capital investments and Class B common stock repurchases.
Working capital at September 30, 1998 was $230 million with a current ratio of
2.4, compared to working capital of $260 million and a current ratio of 2.7 at
June 30, 1998.
Operating activities generated $6 million of cash flow in the first quarter of
fiscal 1999 compared to a breakeven in the first quarter of 1998. Net income
and non-cash charges to net income were partially offset by increases in
receivables of $13 million and inventory of $3 million. The Company reinvested
$35 million into capital investments for the future, including the purchase of
11,700 acres of timber and harvest land, Transwall, Inc., computer equipment,
and production equipment. Financing cash flows were primarily in the form of
- 9 -
<PAGE>
$10 million in share repurchases and $7 million in dividend payments. Net cash
flow, excluding the purchases and maturities of short-term investments was a
negative $41 million for the first quarter of fiscal year 1999.
The Company anticipates maintaining a strong liquidity position for the 1999
fiscal year and believes its available funds on hand, borrowing capacity, and
cash generated from operations will be sufficient for working capital needs and
to fund investments in the Company's future. This statement is a
forward-looking statement under the Private Securities Litigation Reform Act of
1995 and is subject to certain risks and uncertainties including, but not
limited to a downturn in the economy, loss of key customers or suppliers,
availability or cost of raw materials, or a natural disaster or similar
unforeseen event.
YEAR 2000
The Company continues to focus on the Year 2000 issue. The Company is currently
conducting integrated testing of interfaces between various applications used
within the Company, and has begun developing contingency plans outlining
recovery strategies for possible failures. The estimated completion date for
Year 2000 compliance is still in the January - March, 1999 time frame, as
disclosed in the Company's Form 10-K for the period ending June 30, 1998. The
total gross cost of Year 2000 compliance remains in the $9 million to $11
million range. Approximately 45% of the total costs had been incurred as of
September 30, 1998, compared to 25% at June 30, 1998. Redeployed information
technology resources are anticipated to account for approximately 50% of the
total costs, with the balance being incremental costs to the Company.
Approximately 30% of the total gross costs relate to machinery and other fixed
assets which will be capitalized, with the remaining costs being expensed as
incurred.
The Company has not identified any additional material key risk factors
associated with the Year 2000 beyond those disclosed in its Form 10-K for the
period ending June 30, 1998.
The Year 2000 disclosure includes forward-looking statements under the Private
Securities Litigation Reform Act of 1995 and is subject to risks and
uncertainties including, but not limited to such factors as the availability and
cost of human resources with expertise in this area, the ability of its
customers and suppliers to meet Year 2000 compliance, the ability to locate and
correct all relevant computer codes and time constraints.
EURO CURRENCY
The European Union's adoption of a common currency, known as the Euro, is not
expected to have a material effect on the Company's financial condition or
results of operations, as its European sales accounted for less than 2% of
consolidated net sales in the first quarter of fiscal 1999. As the Company
continues to explore investment opportunities abroad, it will monitor the
possible effects of this currency conversion.
- 10 -
<PAGE>
ACCOUNTING STANDARDS
In July 1998, the Company adopted Financial Accounting Standards No. 130,
comprehensive income. This standard requires the disclosure of all changes in
equity during a period except those resulting from investments by, and
distributions to, Share Owners. Comprehensive income is reported in Note 5 of
the Consolidated Financial Statements.
In June, 1998, the Financial Accounting Standards Board issued Financial
Accounting Standards No. 133, Accounting for Derivative Instruments and Hedging
Activities, which requires the recognition of all derivatives as either assets
or liabilities in the balance sheet and the measurement of those instruments at
fair value. Because the Company does not regularly engage in derivative
activity, this new standard is not expected to have a material effect on the
Company's financial condition or results of operations.
_______________________________________________________________________________
This document contains certain statements, which could be considered forward-
looking under the Private Securities Litigation Reform Act of 1995. Cautionary
statements regarding these statements have been included in this document, when
appropriate. Additional cautionary statements regarding these types of
statements and other factors that could have an effect on the future performance
of the Company are contained in the Company's Form 10-K filing for the period
ending June 30, 1998.
- 11 - <PAGE>
<PAGE>
Item 3. - Quantitative and Qualitative Disclosures About Market Risk
As of September 30, 1998, the Company had an investment portfolio of fixed
income securities, excluding those classified as cash and cash equivalents, of
$131 million. The Company classifies its short-term investments in accordance
with Financial Accounting Standards Board Statement No. 115, accounting for
Certain Investments in Debt and Equity Securities. Held-to-maturity
securities are stated at amortized cost and available-for-sale securities are
stated at market value with unrealized gains and losses being recorded net of
tax related effect, if any, as a component of share owners' equity. These
securities, like all fixed income instruments, are subject to interest rate
risk and will decline in value if market interest rates increase.
The Company operates internationally, and thus is subject to potentially adverse
movements in foreign currency rate changes. As of the latest fiscal year-end,
foreign sales, operating income and assets, each comprised less than 3% of
consolidated amounts. Historically, the effect of movements in the exchange
rates have been immaterial to the consolidated operating results of the
Company.
- 12 - <PAGE>
<PAGE>
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
(27) Financial Data Schedule
(b) Reports on Form 8-K
Form 8-K dated August 18, 1998, was filed pursuant to Item 5
(Other Events) which contained the Company's news release dated August 17, 1998,
announcing the signing of a definitive agreement to acquire the assets of
Transwall, Inc.
Form 8-K dated August 24, 1998, was filed pursuant to Item 5
(Other Events) which contained the Company's news release dated August 24, 1998,
announcing the acquisition of an 11,700 acre land parcel which nearly doubled
the timberland holdings of the Company.
Form 8-K dated September 16, 1998, was filed pursuant to Item
5 (Other Events) which contained the Company's news release dated September 15,
1998, announcing the completion of the purchase of Transwall, Inc.
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
(Chairman, Chief Executive Officer)
Roy W. Templin
ROY W. TEMPLIN
(Vice President, Corporate Controller)
Date: November 2, 1998
- 13 -
<PAGE>
<TABLE>
Kimball International, Inc.
Exhibit Index
<S> <C>
Exhibit No. Description
11 Computation of Earnings Per Share
27 Financial Data Schedule
</TABLE>
- 14 -
<PAGE>
<TABLE>
KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
THREE MONTHS ENDED SEPTEMBER 30, 1998
(UNAUDITED)
<CAPTION>
(Amounts in Thousands, Except Per Share Data)
Available Average Earnings Per Share
Income Shares Class A Class B
--------- ----------- ------- --------
<S> <C> <C> <C> <C>
Net income, three months ended 9/30/1998 . . . $12,563
Distributed earnings:
Class A dividends declared . . . . . . . . . 2,229 $ .155
Class B dividends declared . . . . . . . . . 4,212 $ .160
Undistributed basic earnings . . . . . . . . . $ 6,122 40,930 .150 .150
Basic Earnings Per Share . . . . . . . . . . . $ .305 $ .310
Basic Earnings Per Share (rounded) . . . . . . $ .31 $ .31
Dilutive effect of stock options . . . . . . . (40) 249
Undistributed diluted earnings . . . . . . . . $ 6,082 41,179 .148 .148
Diluted Earnings Per Share . . . . . . . . . . $ .303 $ .308
Diluted Earnings Per Share (rounded) . . . . . $ .30 $ .31
840,000 of the 1,846,000 average outstanding stock options were antidulitive, and were excluded from the
dilutive computation for this period.
</TABLE>
<TABLE>
KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
THREE MONTHS ENDED SEPTEMBER 30, 1997
(UNAUDITED)
<CAPTION>
(Amounts in Thousands, Except Per Share Data)
Available Average Earnings Per Share
Income Shares Class A Class B
--------- ----------- ------- --------
<S> <C> <C> <C> <C>
Net income, three months ended 9/30/1997 . . . $13,029
Distributed earnings:
Class A dividends declared . . . . . . . . . 2,074 $ .14375
Class B dividends declared . . . . . . . . . 3,925 $ .14500
Undistributed basic earnings . . . . . . . . . $ 7,030 41,474 .16950 .16950
Basic Earnings Per Share . . . . . . . . . . . $ .31325 $ .31450
Basic Earnings Per Share (rounded) . . . . . . $ .31 $ .31
Dilutive effect of stock options . . . . . . . (58) 398
Undistributed diluted earnings . . . . . . . . $ 6,972 41,872 .16651 .16651
Diluted Earnings Per Share . . . . . . . . . . $ .31026 $ .31151
Diluted Earnings Per Share (rounded) . . . . . $ .31 $ .31
292,000 of the 1,608,000 average outstanding stock options were antidulitive, and were excluded from the
dilutive computation for this period.
</TABLE>
Exhibit(11)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains three month summary financial information extracted from
Kimball International, Inc., and subsidiaries 1999 first quarter Form 10-Q and
is qualified in its entirety by reference to such Form 10-Q filing.
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> SEP-30-1998
<CASH> 1,328
<SECURITIES> 131,014
<RECEIVABLES> 136,321
<ALLOWANCES> 4,088
<INVENTORY> 99,739
<CURRENT-ASSETS> 389,772
<PP&E> 444,984
<DEPRECIATION> 252,269
<TOTAL-ASSETS> 632,366
<CURRENT-LIABILITIES> 159,987
<BONDS> 0
0
0
<COMMON> 2,151
<OTHER-SE> 442,651
<TOTAL-LIABILITY-AND-EQUITY> 632,366
<SALES> 264,646
<TOTAL-REVENUES> 264,646
<CGS> 186,089
<TOTAL-COSTS> 186,089
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 80
<INTEREST-EXPENSE> 105
<INCOME-PRETAX> 19,491
<INCOME-TAX> 6,928
<INCOME-CONTINUING> 12,563
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 12,563
<EPS-PRIMARY> .31
<EPS-DILUTED> .31
</TABLE>
