Kimball International, Inc. (KBAL) has reported 162.28 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $7.23 million, or $0.19 a share in the quarter, compared with $2.76 million, or $0.07 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $7.23 million, or $0.19 a share compared with $4.44 million or $0.12 a share, a year ago. Revenue during the quarter went up marginally by 2.02 percent to $153.07 million from $150.04 million in the previous year period. Gross margin for the quarter expanded 281 basis points over the previous year period to 33.35 percent. Total expenses were 92.85 percent of quarterly revenues, down from 97.14 percent for the same period last year. This has led to an improvement of 429 basis points in operating margin to 7.15 percent.
Operating income for the quarter was $10.95 million, compared with $4.30 million in the previous year period.
However, the adjusted operating income for the quarter stood at $10.95 million compared to $7.06 million in the prior year period. At the same time, adjusted operating margin improved 245 basis points in the quarter to 7.15 percent from 4.70 percent in the last year period.
Bob Schneider, chairman and chief executive officer, stated, “The third quarter is typically the seasonally low period for the office furniture industry, but we were pleased with the relatively strong quarter. To have achieved a 7.2% operating income in a third quarter is very encouraging at this point in our turnaround efforts. The significant increase in our net income, despite the seasonally low sales level, is testament to our efforts the last couple years to right-size our cost structure. Our employees have focused on controlling costs through productivity gains and cost savings initiatives, including the broad-based savings we are experiencing from the consolidation of our metal fabrication production from Idaho into Indiana facilities. Weve also focused on coming to market with new and innovative products, which are resonating well with customers. Sales of new office furniture products introduced in the last three years were up a strong 21% over the third quarter last year."
Operating cash flow improves significantlyKimball International, Inc. has generated cash of $49.74 million from operating activities during the nine month period, up 25.03 percent or $9.96 million, when compared with the last year period. The company has spent $23.07 million cash to meet investing activities during the nine month period as against cash outgo of $13.70 million in the last year period.
The company has spent $14.27 million cash to carry out financing activities during the nine month period as against cash outgo of $16.90 million in the last year period.
Cash and cash equivalents stood at $59.98 million as on Mar. 31, 2017, up 36.78 percent or $16.13 million from $43.85 million on Mar. 31, 2016.
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