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Previous: KEYSTONE CONSOLIDATED INDUSTRIES INC, 10-Q, EX-27, 2000-11-13 |
Next: KIMBALL INTERNATIONAL INC, 10-Q, EX-3.(B), 2000-11-13 |
KIMBALL INTERNATIONAL, INC.
| Indiana | 35-0514506 | |
| (State or other jurisdiction of | (I.R.S. Employer Identification No.) | |
| incorporation or organization) | ||
| 1600 Royal Street, Jasper, Indiana | 47579-1001 | |
| (Address of principal executive offices) | (Zip Code) |
(812) 482-1600
Not Applicable
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
26, 2000 were:
Class A Common Stock - 14,147,470 shares
Class B Common Stock - 25,111,886 shares
1
KIMBALL INTERNATIONAL, INC.
FORM 10-Q
INDEX
2
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands)
| (unaudited) September 30, 2000 |
June 30, 2000 |
||
| Assets | |||
| Current Assets: | |||
| Cash and cash equivalents | $ 7,908 | $ 5,223 | |
| Short-term investments | 79,912 | 79,366 | |
| Receivables, less allowances of $4,890 and $4,713, respectively |
182,571 | 180,929 | |
| Inventories | 132,961 | 117,058 | |
| Other | 31,943 | 30,944 | |
| Total current assets | 435,295 | 413,520 | |
| Property and Equipment - net of accumulated depreciation of $298,129 | |||
| and $292,498, respectively | 247,154 | 248,210 | |
| Other Assets | 59,649 | 61,921 | |
| Total Assets | $742,098 | $723,651 | |
| Liabilities and Share Owners' Equity | |||
| Current Liabilities: | |||
| Loans payable | $ 46,104 | $ 37,400 | |
| Current maturities of long-term debt | 951 | 1,021 | |
| Accounts payable | 107,032 | 102,835 | |
| Dividends payable | 6,214 | 6,205 | |
| Accrued expenses | 74,981 | 75,934 | |
| Total current liabilities | 235,282 | 223,395 | |
| Other Liabilities: | |||
| Long-term debt, less current maturities | 2,644 | 2,599 | |
| Deferred income taxes and other | 30,801 | 29,130 | |
| Total other liabilities | 33,445 | 31,729 | |
| Share Owners' Equity: | |||
| Common stock | 2,151 | 2,151 | |
| Additional paid-in capital | 8,143 | 8,056 | |
| Retained earnings | 526,668 | 522,041 | |
| Accumulated other comprehensive income | 290 | 326 | |
| Less: Treasury stock, at cost | (63,881) | (64,047) | |
| Total Share Owners' Equity | 473,371 | 468,527 | |
| Total Liabilities and Share Owners' Equity | $742,098 | $723,651 | |
See Notes to Consolidated Financial Statements
3
KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in Thousands, Except for Per Share Data)
| (unaudited) Three Months Ended September 30, |
|||||
| 2000 | 1999 | ||||
| Net Sales | $312,948 | $278,402 | |||
| Cost of Sales | 234,115 | 201,627 | |||
| Gross Profit | 78,833 | 76,775 | |||
| Selling, General and Administrative Expenses | 63,417 | 62,640 | |||
| Operating Income | 15,416 | 14,135 | |||
| Other Income (Expense): Interest expense |
(537) | (92) | |||
| Interest income | 852 | 1,443 | |||
| Other - net | 1,218 | 1,467 | |||
| Other income - net | 1,533 | 2,818 | |||
| Income Before Taxes on Income | 16,949 | 16,953 | |||
| Taxes on Income | 6,105 | 5,394 | |||
| Net Income | $ 10,844 | $ 11,559 | |||
| Earnings Per Share of Common Stock: Basic: |
|||||
| Class A | $ .27 | $ .28 | |||
| Class B | $ .28 | $ .29 | |||
| Diluted: | |||||
| Class A | $ .27 | $ .28 | |||
| Class B | $ .28 | $ .29 | |||
| Dividends Per Share of Common Stock: | |||||
| Class A | $ .155 | $ .155 | |||
| Class B | $ .160 | $ .160 | |||
| Average Total Number of Shares Outstanding | |||||
| Class A and B Common Stock: Basic |
39,271 |
40,374 |
|||
| Diluted | 39,363 | 40,619 | |||
See Notes to Consolidated Financial Statements
4
KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in Thousands)
| (unaudited) Three Months Ended September 30, |
|||||
| 2000 | 1999 | ||||
| Cash Flows From Operating Activities: | |||||
| Net income | $ 10,844 | $ 11,559 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: |
|||||
| Depreciation and amortization | 11,371 | 10,677 | |||
| Gain on sales of assets | (226) | (911) | |||
| Deferred income tax and other deferred charges | 385 | (1,100) | |||
| Change in current assets and liabilities: | |||||
| Receivables | (1,642) | (5,373) | |||
| Inventories | (15,903) | (7,656) | |||
| Other current assets | 286 | (1,111) | |||
| Accounts payable | 4,186 | 5,313 | |||
| Accrued expenses | (806) | (2,168) | |||
| Net cash provided by operating activities | 8,495 | 9,230 | |||
| Cash Flows From Investing Activities: | |||||
| Capital expenditures | (8,875) | (11,503) | |||
| Proceeds from sales of assets | 325 | 1,331 | |||
| Decrease in other assets | 580 | 328 | |||
| Maturities of held-to-maturity securities | -0- | 400 | |||
| Purchases of available-for-sale securities | (17,981) | (46,986) | |||
| Sales and maturities of available-for-sale securities | 17,706 | 41,590 | |||
| Net cash used for investing activities | (8,245) | (14,840) | |||
| Cash Flows From Financing Activities: | |||||
| Net change in short-term borrowings | 8,704 | 3,556 | |||
| Net change in long-term debt | 100 | (319) | |||
| Acquisition of treasury stock | (613) | (435) | |||
| Dividends paid to share owners | (6,205) | (6,380) | |||
| Proceeds from exercise of stock options | 592 | 689 | |||
| Other - net | (32) | 151 | |||
| Net cash provided by (used for) financing activities | 2,546 | (2,738) | |||
| Effect of Exchange Rate Change on | |||||
| Cash and Cash Equivalents | (111) | -0- | |||
| Net Increase (Decrease) in Cash and Cash Equivalents | 2,685 | (8,348) | |||
| Cash and Cash Equivalents-Beginning of Period | 5,223 | 16,775 | |||
| Cash and Cash Equivalents-End of Period | $ 7,908 | $ 8,427 | |||
| Supplemental Disclosure of Cash Flow Information: | |||||
| Cash paid during the period for: | |||||
| Income taxes | $ 737 | $ 360 | |||
| Interest | $ 499 | $ 98 | |||
| Total Cash, Cash Equivalents and | |||||
| Short-Term Investments: | |||||
| Cash and cash equivalents | $ 7,908 | $ 8,427 | |||
| Short-term investments | 79,912 | 119,749 | |||
| Totals | $87,820 | $128,176 | |||
See Notes to Consolidated Financial Statements
5
KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
Note 1. Basis of Presentation
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 in the United States 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.
Note 2. Inventories
Inventory components of the Company are as follows:
September 30, June 30, (in thousands) 2000 2000 Finished Products $ 34,322 $ 31,251 Work-in-Process 20,863 18,149 Raw Materials 77,776 67,658 Total inventory $132,961 $117,058 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.
6
Effective for the year ended June 30, 1999, the Company adopted Statement of Financial Accounting Standards (SFAS) No. 131, Disclosures about Segments of an Enterprise and Related Information. The adoption of SFAS 131 requires the presentation of segment information that is consistent with information utilized by management for purposes of allocating resources and assessing performance.Management organizes the Company into segments based upon differences in products and services offered in each segment. The Furniture and Cabinets Segment manufactures furniture for the office, residential, lodging and healthcare industries and store display fixtures, all sold under the Company's family of brand names. Other products produced by the Furniture and Cabinets Segment on an original equipment manufacturer basis include store fixtures, television cabinets and stands, audio speaker systems, residential furniture and furniture components. The Electronic Contract Assemblies Segment is a global provider of design engineering, manufacturing, packaging and distribution of electronic assemblies, circuit boards, multi-chip modules and semiconductor components on a contract basis to customers in the transportation, industrial, telecommunications, computer and medical industries. Intersegment sales are insignificant. Unallocated corporate assets include cash and cash equivalents, short-term investments and other assets not allocated to segments. The basis of segmentation and accounting policies of the segments are consistent with those as disclosed in the Company's Annual Report on Form 10-K for the year ended June 30, 2000.
Three Months Ended
September 30,(in thousands) 2000
1999
Net Sales: Furniture and Cabinets $215,946 $193,686 Electronic Contract Assemblies 96,981 84,700 Unallocated Corporate and Eliminations 21 16 Consolidated $312,948 $278,402 Net Income: Furniture and Cabinets $ 6,406 $ 5,293 Electronic Contract Assemblies 3,382 3,440 Unallocated Corporate and Eliminations 1,056 2,826 Consolidated $ 10,844 $ 11,559 Total Assets: Furniture and Cabinets $468,362 $399,461 Electronic Contract Assemblies 191,534 148,706 Unallocated Corporate and Eliminations 82,202 127,581 Consolidated $742,098 $675,748
7
Note 4. 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, 2000 and 1999 is as follows:
| Three Months Ended September 30, |
|||||
| (in thousands) | 2000 | 1999 | |||
| Net Income | $10,844 | $11,559 | |||
| Net Change in Unrealized Gains/Losses on Securities |
271 | (243) | |||
| Foreign Currency Translation Adjustment | (307) | 187 | |||
| Comprehensive Income | $10,808 | $11,503 | |||
Note 5. Acquisition
On September 21, 2000, the Company announced it had acquired the manufacturing assets of Alcatel located in Poznan, Poland. The Company will lease the facility and initially manufacture telecommunications equipment under a supply agreement with Alcatel. The acquisition was accounted for as a purchase and was financed with available cash on hand. The acquisition price and operating results of this acquisition were not material to the Company's first quarter consolidated operating results.
Note 6. New Accounting Standards
Effective July 1, 2000, the Company adopted 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. The Company periodically engages in limited forward purchases of foreign currency and currently does not expect this new standard to have a material effect on the Company's financial condition or results of operations. The Company had no derivative instruments outstanding as of September 30, 2000.
In July and September 2000, the Emerging Issues Task Force (EITF) reached a consensus on Issue 00-10 "Accounting for Shipping and Handling Fees and Costs." EITF Issue 00-10 requires that all amounts billed to a customer in a sale transaction for shipping and handling be classified as sales, and recommends that shipping and handling expenses be classified as cost of sales. The Company currently classifies most shipping and handling revenues and costs, on a net basis, in selling and administrative expense. Accordingly, the Company has determined that EITF Issue 00-10 will require reclassification of shipping and handling revenues and costs, but does not believe EITF Issue 00-10 will impact its financial condition or net income. The effective date of this standard is the fourth quarter of the Company's fiscal year 2001.
8
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
OVERVIEW
Net sales for the first quarter of fiscal year 2001 increased 12% over the prior year to $312,948,000, a new record
for first quarter net sales. Excluding prior year acquisitions, net sales increased 11% over the year earlier period.
Net income and Class B diluted earnings per share were $10,844,000 and $0.28, respectively, for the first quarter of
fiscal year 2001, decreasing 6% and 3%, respectively, from the same quarter last year.
RESULTS OF OPERATIONS - THREE MONTHS ENDED SEPTEMBER 30, 2000 COMPARED TO
THREE MONTHS ENDED SEPTEMBER 30, 1999
Net sales for the Company for the three-month period ending September 30,
2000 surpassed the comparable period last year with double-digit increases
from both of the Company's segments
-- the Furniture and Cabinets Segment and the Electronic
Contract Assemblies Segment. Net income for the first quarter of fiscal year 2001
increased for the Furniture and Cabinets Segment but declined slightly in
the Electronic Contract Assemblies Segment when compared to the fiscal year
2000 first quarter.
FURNITURE AND CABINETS SEGMENT
Product line offerings in the Furniture and Cabinets Segment include
office furniture, home furniture, lodging and healthcare furniture, store
fixtures, original equipment manufactured (OEM) furniture and cabinets and
furniture components. The Company's production flexibility allows it to
utilize portions of the available production capacity created by lower
volumes within these product lines to support and balance increased production
schedules of other product lines within this segment, when necessary.
Fiscal year 2001 first quarter net sales increased 11% in the Furniture and Cabinets Segment when compared to the prior year. Excluding prior year acquisitions, net sales increased 9% from the same quarter last year. Sales increased in all product lines compared to the year earlier period including the office furniture, OEM furniture and cabinets, home furniture, lodging and healthcare and furniture components product lines.
Net sales for the first quarter of fiscal year 2001 increased in the office furniture product line over the prior year from increases in the casegoods, systems and seating product groups. The Company's office furniture sales for both August and September grew at double-digit rates over the same periods last year. However, due to a seasonally slow start in July, office furniture sales, for the two-month period ending August 2000, lagged the industry's 10% growth rate in shipments estimated by the Business and Institutional Furniture Manufacturer's Association (BIFMA) compared to the same two-month period ending August 1999.
Net sales for the first quarter of fiscal year 2001 in the lodging and healthcare product line increased over the prior year period. Sales of the Company's standard product offerings increased over the same period last year as a strategic shift in focus on standard product began to show positive results. The increase in sales of our standard product offerings more than offset a slight decrease in the sales of custom-made products, which generally carry a lower margin, when compared to the first quarter of fiscal year 2000.
Net sales of OEM furniture and cabinets achieved a new quarterly record in the first quarter of fiscal year 2001. While sales of large-screen projection television cabinets continued its double-digit growth trend over the prior year, shipments were lower than anticipated in the current quarter due to electronic component shortages experienced by several key customers.
Net sales of furniture components increased in the first quarter of fiscal year 2001 when compared to the same period last year primarily on increased sales of lumber products.
9
Net income in the Furniture and Cabinets Segment increased in the first quarter of fiscal year 2001 when compared to one year ago. Increased sales from all major product lines and lower selling, general and administrative expenses, as a percent of sales, within the Furniture and Cabinets Segment more than offset higher cost of goods sold, as a percent of sales. Increases in material and labor costs, as a percent of sales, resulted in a lower gross profit percentage compared to the same period last year. Higher lumber commodity prices, manufacturing inefficiencies and overall lower yields within the furniture components product line, partly from a wetter than normal summer in regions of the United States, was the primary contributor to the increase in material costs. Despite increased sales volumes at the Company's large-screen projection television cabinet manufacturing operation located in Juarez, Mexico, gross profit at this facility declined due to an unfavorable product mix shift to cabinets with lower gross margins as well as manufacturing inefficiencies associated with customer-driven schedule changes and order delays due to electronic component shortages. The net losses experienced in the furniture components product line and at the Juarez facility partially offset improved profits in other product lines within this segment. Appropriate actions are being addressed to reduce the losses in the furniture components product line and at the Juarez operation to improve overall profitability in the Furniture and Cabinets Segment. Lower freight expenses, marketing incentive costs and incentive compensation costs linked to company profitability contributed to the decrease in selling, general and administrative costs, as a percent of sales.
ELECTRONIC CONTRACT ASSEMBLIES SEGMENT
Net sales for the first quarter of fiscal year 2001 in the Electronic
Contract Assemblies Segment increased over the prior year by 14%. First quarter
sales increased over the same period last year primarily on increased sales of
electronic transportation components. Sales of telecommunication components and
industrial controls also increased over the prior year while medical components
and computer related components declined when compared to the year earlier period.
On September 21, 2000, the Company announced it had acquired the manufacturing assets of Alcatel located in Poznan, Poland. The Company will lease the facility and initially manufacture telecommunications equipment under a supply agreement with Alcatel. The acquisition was accounted for as a purchase and was financed with available cash on hand. The acquisition price and operating results of this acquisition were not material to the Company's first quarter consolidated operating results.
Net income for the first quarter decreased slightly from the same quarter last year. Gross profit, as a percent of net sales, decreased from the prior year as a result of a strategic diversification of this segment's customer mix and the migration from a mature product line to the next generation of anti-lock braking components, which carry lower margins. In addition, lighter sales of medical components as well as anticipated costs associated with the global expansion efforts within the Electronic Contract Assemblies Segment contributed to the lower net income. Higher costs at the Company's Reynosa, Mexico manufacturing facility, due to inefficiencies caused partially by the start up of several more technically advanced products, also contributed to the lower profitability compared to the same quarter last year. Selling, general and administrative costs for the first quarter decreased, as a percent of sales, when compared to the prior year. Selling expenses decreased in both dollars and as a percent to sales primarily from decreases in sales compensation costs.
Included in this segment are sales to one customer, TRW Inc., which accounted for 17% and 16% of consolidated net sales in the first quarter of fiscal year 2001 and 2000, respectively. Sales to this customer represent approximately one half of total sales in the Electronic Contract Assemblies Segment.
10
This segment's investment capital carries a higher degree of risk than the Company's other segment due to rapid technological changes, component availability, the contract nature of this industry and the importance of sales to one customer.
CONSOLIDATED OPERATIONS
Consolidated selling, general and administrative expenses for the
first quarter decreased, as a percent of sales, 2.2 percentage points
from the same period last year. Selling expenses decreased in both
dollars and as a percent of sales as a result of lower selling compensation
costs, marketing incentive costs and freight expenses as a result of continued
cost management efforts. Incentive compensation costs, which are linked to
company profitability, declined in both dollars and as a percent of sales from
the same quarter last year.
Other income decreased in the first quarter from the prior year on lower interest income caused by lower average investment balances and higher interest expense as the company has drawn on its revolving line of credit since the first quarter of last year. Other income in the first quarter of fiscal year 2000 included gains from the sale of real estate.
The effective income tax rate increased in the first quarter compared to one year ago on increases in both the federal and state effective tax rates. The increase in the federal effective tax rate was caused by lower tax-free municipal bond interest, lower realized research and development tax credits and lower capital loss carryforward benefits compared to the first quarter of last year. Higher foreign income taxes also contributed to the higher effective tax rate as a result of a foreign tax gain caused by currency fluctuation.
Net income and Class B diluted earnings per share of $10,844,000 and $0.28, respectively, for the first quarter of fiscal year 2001 decreased 6% and 3%, respectively, from the prior year levels of $11,559,000 and $0.29.
LIQUIDITY AND CAPITAL RESOURCES
The Company's aggregate of cash, cash equivalents, and short-term
investments increased from $85 million at June 30, 2000 to $88 million
at September 30, 2000. Working capital at September 30, 2000 was $200
million compared to working capital of $190 million at June 30, 2000.
The current ratio of 1.9 remained unchanged from June 30, 2000.
Operating activities generated $8 million of cash flow in the first three months of fiscal year 2001 compared to $9 million in the same period of fiscal year 2000. The Company reinvested $8 million into capital investments for the future including production equipment and facility improvements. Financing cash flow activities included $6 million in dividend payments.
At September 30, 2000, the Company had $44 million of short-term borrowings outstanding under its $100 million revolving credit facility that allows for both issuance of letters of credit and cash borrowings. The Company had $35 million of short-term borrowings outstanding under this credit facility at June 30, 2000. The credit facility requires the Company to comply with certain debt covenants including debt-to-total capitalization, interest coverage ratio, minimum net worth, and other terms and conditions. The Company is in compliance with these covenants at September 30, 2000 and does not expect these covenants to limit or restrict the Company's ability to borrow from the credit facility this fiscal year. The preceding 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 of raw materials, or a natural disaster or similar unforeseen event.
The Company anticipates maintaining a strong liquidity position for the 2001 fiscal year and believes its available funds on hand, unused credit line available under the revolving credit facility 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 increased costs of raw materials, or a natural disaster or similar unforeseen event.
11
ACCOUNTING STANDARDS
Effective July 1, 2000, the Company adopted 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. The Company periodically
engages in limited forward purchases of foreign currency and currently does not
expect this new standard to have a material effect on the Company's financial
condition or results of operations. The Company had no derivative instruments
outstanding as of September 30, 2000.
In July and September 2000, the Emerging Issues Task Force (EITF) reached a consensus on Issue
00-10 "Accounting for Shipping and Handling Fees and Costs." EITF Issue 00-10
requires that all amounts billed to a customer in a sale transaction for shipping
and handling be classified as sales, and recommends that shipping and handling expenses be classified as cost of sales. The Company currently classifies most
shipping and handling revenues and costs, on a net basis, in selling and administrative
expense. Accordingly, the Company has determined that EITF Issue 00-10 will require
reclassification of shipping and handling revenues and costs, but does not believe EITF
Issue 00-10 will impact its financial condition or net income. The effective date of
this standard is the fourth quarter of the Company's fiscal year 2001.
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, 2000.
12
Item 3. Quantitative and Qualitative Disclosures About Market Risk
As of September 30, 2000, the Company had an investment portfolio of fixed income securities, excluding those classified as cash and cash equivalents, of $80 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. 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. A hypothetical 100 basis point increase in market interest rates from levels at September 30, 2000 would cause the fair value of these short-term investments to decline by an immaterial amount.
The Company's earnings are also affected by changes in short-term interest rates as a result of borrowings under its line of credit facility. Based on the outstanding balance of the Company's credit facility at September 30, 2000, a hypothetical 100 basis point increase in interest rates prevailing at this date would not affect the consolidated operating results of the Company by a material amount.
The Company operates internationally, and thus is subject to potentially adverse movements in foreign currency rate changes. The effect of movements in the exchange rates were not material to the consolidated operating results of the Company in the first quarter of fiscal year 2001. The Company estimates that a hypothetical 10% adverse change in foreign currency exchange rates would not affect the consolidated operating results of the Company by a material amount.
13
PART II. OTHER INFORMATION
Item 2. Recent Sales of Unregistered Securities
On July 6, 2000, 8,475 shares of unregistered restricted Class B Common Stock were issued to one individual purchaser as part of the August 1998 agreement to purchase substantially all of the assets of Transwall, Inc. The Common Stock in this transaction was issued in reliance on the private placement exemption under Section 4(2) of the Securities Act of 1933, as amended.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits (numbered in accordance with Item 601 of Regulation S-K)
(3b) Restated By-laws of the Company
(11) Computation of Earnings Per Share
(27) Financial Data Schedule
(b) Reports on Form 8-K
None
14
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 hereto duly authorized.
| KIMBALL INTERNATIONAL, INC. | ||
| By: | /s/ Douglas A. Habig | |
| DOUGLAS A. HABIG Chairman, Chief Executive Officer |
||
| By: | /s/ Roy W. Templin | |
| ROY W. TEMPLIN Vice President, Finance and Chief Accounting Officer |
15
Kimball International, Inc.
Exhibit Index
| Exhibit No. | Description |
| 3b | Restated By-laws of the Company |
| 11 | Computation of Earnings Per Share |
| 27 | Financial Data Schedule |
16
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