EX-99.1 2 pressrelease.htm EXHIBIT Press Release


Knoll
1235 Water Street
East Greenville, PA 18041                            
Tel 215 679-7991
Press Release

Knoll Reports Fourth Quarter and Full Year Results
Fourth quarter results include restructuring charges consistent with previously announced supply chain transformation and a non-cash impairment charge.
Holly Hunt acquisition to significantly increase our exposure to high margin, high design residential and consumer customers in markets with strong secular growth potential.
EAST GREENVILLE, PA, February 5, 2014 -- Knoll, Inc. (NYSE: KNL) today announced results for the fourth quarter and year ended December 31, 2013.  Net sales were $230.9 million for the quarter, a decrease of 7.6% from the fourth quarter 2012.  Operating profit was $1.3 million, or 0.6% of net sales, a decrease of 95.4% from the fourth quarter of 2012.  Operating profit during the fourth quarter of 2013 includes $5.7 million of restructuring charges as well as an $8.9 million impairment charge related to the write-down of the Edelman tradename.  Excluding these charges operating profit during the fourth quarter of 2013 would have been $15.9 million, or 6.9% of net sales, a decrease of 43.4% from the fourth quarter of 2012.  Net income was $0.6 million during the fourth quarter of 2013 compared to $17.5 million in the fourth quarter of 2012.  Diluted earnings per share was $0.01 during the fourth quarter of 2013 compared to $0.37 for 2012.  Excluding the restructuring and impairment charges, diluted earnings per share would have been $0.21 per share during the fourth quarter of 2013.
 
For the full year, net sales were $862.7 million, a decrease of 2.8% when compared to 2012.  Operating profit was $41.1 million, or 4.8% of net sales, a decrease of 53.2% when compared to 2012.  Excluding the restructuring and impairment charges noted above, operating profit for 2013 would have been $55.7 million, a decrease of 36.6% when compared with the same period in the prior year.  Net income was $23.1 million for 2013, a decrease of 53.8% when compared to 2012.  Diluted earnings per share was $0.49 for the year compared to $1.06 per share in the prior year.  Excluding the restructuring and impairment charges noted above, diluted earnings per share would have been $0.68 per share during 2013.
 
"The results, strategic initiatives, and acquisition of Holly Hunt that we announced earlier this week are consistent with our efforts to build a unique, highly profitable, enterprise in the high design interior space and significantly accelerates us towards our longer term strategic and financial objectives," commented Andrew Cogan, CEO. "We remain committed to both the transformation of our core Office segment as well as working to capture the significant profit opportunity in more fragmented residential and consumer markets around the world", he added.




Fourth Quarter Results
 
Fourth quarter 2013 financial results highlights follow:
 
Dollars in Millions Except Per Share Data
 
Three Months Ended
 
Percent
 
 
12/31/2013
 
12/31/2012
 
Change
Net Sales
 
$
230.9

 
$
250.0

 
(7.6
)%
Gross Profit
 
74.4

 
82.7

 
(10.0
)%
Gross Profit %
 
32.2
%
 
33.1
%
 
(2.7
)%
Operating Expenses
 
58.5

 
54.5

 
7.3
 %
Restructuring charges
 
5.7

 
—

 
N/A

Intangible asset impairment charge
 
8.9

 
—

 
N/A

Operating Profit
 
1.3

 
28.1

 
(95.4
)%
Operating Profit %
 
0.6
%
 
11.2
%
 
(94.6
)%
Adjusted Operating Profit
 
15.9

 
28.1

 
(43.4
)%
Adjusted Operating Profit %
 
6.9
%
 
11.2
%
 
(38.4
)%
Net Income
 
0.6

 
17.5

 
(96.6
)%
Earnings Per Share - Diluted
 
0.01

 
0.37

 
(97.3
)%
Adjusted Earnings Per Share - Diluted
 
0.21

 
0.37

 
(43.2
)%

Adjusted earnings per share and adjusted operating profit are non-GAAP financial measures and are calculated by excluding from earnings per share and operating profit items we believe to be infrequent or not indicative of our operating performance. For a reconciliation of adjusted earnings per share and adjusted operating profit to earnings per share and operating profit, respectively, see "Reconciliation of Non-GAAP Financial Measures" below.
 
Net sales for the quarter were $230.9 million, a decrease of $19.1 million, or 7.6%, when compared with the fourth quarter of 2012.  Net sales for the Office segment were $163.0 million in the fourth quarter of 2013, a decrease of $18.1 million, or 10.0%, when compared with the fourth quarter of 2012.  Fewer large commercial projects as well as the continued year-over-year decline in sales to government agencies negatively impacted the Office segment during the fourth quarter of 2013.  Net sales for the Studio segment were $41.1 million, a decrease of $1.0 million, or 2.4%, when compared with the fourth quarter of 2012.  During the fourth quarter of 2013, Studio segment sales in North America decreased while sales in Europe increased.  Net sales for the Coverings segment were $26.7 million, a decrease of $0.1 million, or 0.4%, when compared with the fourth quarter of 2012.
 
Gross profit for the fourth quarter of 2013 was $74.4 million, a decrease of $8.3 million, or 10.0%, from the same period in 2012.   Gross margin decreased from 33.1% in the fourth quarter of 2012 to 32.2% in the fourth quarter of 2013.  The decrease in gross margin from the fourth quarter of 2012 was largely the result of lower absorption of our fixed costs as a result of the lower sales as well as increased transportation costs. 
 
Operating expenses for the quarter were $58.5 million, or 25.3% of net sales, compared to $54.5 million, or 21.8% of net sales, for fourth quarter of 2012.  The increase in operating expenses during the fourth quarter of 2013 was in large part due to increased investment spending in sales and marketing as well as increased expenses related to our information technology infrastructure upgrade, partially offset by lower incentive compensation.
 




Operating profit as a percentage of net sales was 0.6% during the fourth quarter of 2013 compared to 11.2% during the fourth quarter of 2012.  Operating profit for the fourth quarter of 2013 includes restructuring charges of $5.7 million and an intangible asset impairment charge of $8.9 million.  Excluding the restructuring and impairment charges, operating profit would have been $15.9 million, or 6.9% of net sales, during the fourth quarter of 2013.  For a reconciliation of adjusted operating profit to GAAP operating profit, see "Reconciliation of Non-GAAP Financial Measures" below.  Operating profit for the Office segment was $2.3 million for the fourth quarter of 2013, compared to $20.0 million in 2012. Excluding restructuring charges of $2.7 million, operating profit for the Office segment would have been $5.0 million in the fourth quarter of 2013, a decrease of $15.0 million, or 75.0%, when compared with the fourth quarter of 2012.  The decrease in operating profit in the Office segment during the fourth quarter of 2013 when compared with the prior year was the result of our lower sales and increased investment spending in sales and marketing as well as increased spending related to our information technology infrastructure upgrade. Operating profit for the Studio segment was $2.8 million for the fourth quarter of 2013, compared to $6.2 million in 2012. Excluding restructuring charges of $3.0 million, operating profit for the Studio segment would have been $5.8 million, a decrease of $0.4 million, or 6.5%, when compared with the fourth quarter of 2012.  Operating loss for the Coverings segment was ($3.8) million for the fourth quarter of 2013, compared to operating profit of $1.9 million in 2012. Excluding the intangible asset impairment charge of $8.9 million, operating profit for the Coverings segment would have been $5.1 million, an increase of $3.2 million, or 168.4% when compared to the fourth quarter of 2012.  During the fourth quarter of 2012, one of our leather subsidiaries incurred a $2.9 million one-time charge for inventory costs that were not being properly transferred to cost of goods sold. Excluding this one-time charge in the fourth quarter of 2012, operating profit for the Coverings segment increased 6.3% during the fourth quarter of 2013 when compared with the prior year.
 
Interest expense for the fourth quarter of 2013 decreased $0.1 million when compared with the fourth quarter of 2012.  The decrease in interest expense was primarily due to our lower outstanding debt.  During the fourth quarter of 2013, other (income) expense consisted of income of $2.2 million related to foreign exchange gains.  During the fourth quarter of 2012, other (income) expense consisted primarily of income of $0.6 million related to foreign exchange gains offset by $0.1 of miscellaneous expense.
 
Net income for the fourth quarter of 2013 was $0.6 million compared to $17.5 million during the fourth quarter of 2012. Diluted earnings per share was $0.01 during the fourth quarter of 2013 compared to $0.37 for 2012.  Excluding the restructuring and impairment charges, diluted earnings per share would have been $0.21 per share during the fourth quarter of 2013.

Cash generated from operations during the fourth quarter 2013 was $23.3 million, compared to $41.5 million in the same period of 2012. Capital expenditures for the fourth quarter 2013 totaled $8.6 million compared to $6.5 million for 2012. We repaid $10.0 million of debt during the fourth quarter of 2013 and 2012. The Company also paid dividends of $5.6 million, or $0.12 per share during the fourth quarter of 2013 and 2012.
 




Full Year Results
 
2013 financial results highlights follow:
 
Dollars in Millions Except Per Share Data
 
Twelve Months Ended
 
Percent
 
 
12/31/2013
 
12/31/2012
 
Change
Net Sales
 
$
862.7

 
$
887.5

 
(2.8
)%
Gross Profit
 
280.3

 
294.4

 
(4.8
)%
Gross Profit %
 
32.5
%
 
33.2
%
 
(2.1
)%
Operating Expenses
 
224.6

 
206.4

 
8.8
 %
Restructuring charges
 
5.7

 
—

 
N/A

Intangible asset impairment charge
 
8.9

 
—

 
N/A

Operating Profit
 
41.1

 
87.9

 
(53.2
)%
Operating Profit %
 
4.8
%
 
9.9
%
 
(51.5
)%
Adjusted Operating Profit
 
55.7

 
87.9

 
(36.6
)%
Adjusted Operating Profit %
 
6.5
%
 
9.9
%
 
(34.3
)%
Net Income
 
23.1

 
50.0

 
(53.8
)%
Earnings Per Share - Diluted
 
0.49

 
1.06

 
(53.8
)%
Adjusted Earnings Per Share - Diluted
 
0.68

 
1.06

 
(35.8
)%
 
For the year, net sales totaled $862.7 million, a decrease of $24.8 million, or 2.8%, from 2012 net sales of $887.5 million.  Net sales for the Office segment were $599.1 million, a decrease of $34.2 million, or 5.4%, when compared with 2012.  This decrease in sales in the Office segment for the year was largely the result of lower sales to government agencies.  Sales to commercial clients grew during 2013, however, this growth was not enough to offset the decline in sales to government agencies.  Net sales for the Studio segment were $154.5 million, an increase of $6.9 million, or 4.7%, when compared with 2012.   Sales growth in North America outpaced Europe within the Studio segment during 2013. Net sales for the Coverings segment were $109.0 million, an increase of $2.4 million, or 2.3%, when compared with 2012. Increased sales in our Textiles division was the main cause of this increase.
 
During the full year, gross margin decreased from 33.2% in 2012 to 32.5% in 2013.  The decrease in gross margin during the year was mainly the result of price erosion in the Office segment as well as lower absorption of our fixed costs as a result of our lower sales.
 
Operating expenses for 2013 were $224.6 million, or 26.0% of net sales, compared to $206.4 million, or 23.3% of net sales, for 2012.  The increase in operating expenses during 2013 was in large part due to increased spending associated with our announced programs of strategic investments and initiatives to achieve our longer-term revenue and margin objectives, which were partially offset by lower incentive compensation.
 




Our operating profit for 2013 was $41.1 million, a decrease of $46.8 million, or 53.2%, when compared with the same period in 2012.  Operating profit as a percent of net sales was 4.8% for 2013 compared to 9.9% in 2012.  Operating profit for 2013 includes restructuring charges of $5.7 million and an $8.9 million intangible impairment charge.  Excluding these amounts, operating profit would have been $55.7 million, or 6.5% of net sales, during 2013.  For a reconciliation of adjusted operating profit to GAAP operating profit, see "Reconciliation of Non-GAAP Financial Measures" below.  Operating profit for the Office segment was $13.4 million for 2013, compared to $48.6 million in 2012. Excluding restructuring charges of $2.7 million, operating profit for the Office segment would have been $16.1 million in 2013, a decrease of $32.5 million, or 66.9%, when compared with 2012.  The decrease in operating profit in the Office segment during 2013 was the result of our lower sales and the increased spending on previously announced growth initiatives. Operating profit for the Studio segment was $15.6 million for 2013, compared to $21.8 million in 2012. Excluding restructuring charges of $3.0 million, operating profit for the Studio segment would have been $18.6 million, a decrease of $3.2 million, or 14.7%, when compared with 2012.  Operating profit for the Coverings segment was $12.1 million for 2013, compared to $17.5 million in 2012. Excluding the intangible asset impairment charge of $8.9 million, operating profit for the Coverings segment would have been $21.0 million, an increase of $3.5 million, or 20.0%, when compared to 2012.

Interest expense for 2013 decreased $0.4 million when compared with the full year 2012.  The decrease in interest expense was primarily due to our lower outstanding debt.  Other (income) expense in 2013 consisted of income of $3.5 million from foreign exchange gains offset by  $0.1 million of miscellaneous expense.  Other (income) expense in 2012 consisted of expense related to $2.8 million of foreign exchange losses, expense of $0.5 million related to the write-off of deferred financing fees in conjunction with our new debt agreement completed in February of 2012, offset by  $0.1 million of miscellaneous income.
 
The effective tax rate was 40.0% for the year, as compared to 36.2% for 2012.  Our effective tax rate for 2012 was lower as a result of a reduction in our unrecognized tax benefits. Our effective tax rate is also dependent upon the mix of pretax income in the countries in which we operate.
 
We generated 2013 net income of $23.1 million, or $0.49 diluted earnings per share, compared to $50.0 million, or $1.06 diluted earnings per share, in 2012. Excluding the restructuring and impairment charges, diluted earnings per share would have been $0.68 per share 2013. For a reconciliation of adjusted earnings per share to GAAP earnings per share, see "Reconciliation of Non-GAAP Financial Measures" below. 
 
Annual cash generated from operations in 2013 was $54.6 million, compared to $70.6 million the year before. Capital expenditures in 2013 totaled $29.1 million compared to $16.5 million for 2012. During 2013 we repaid $20.0 million of debt compared to $19.0 million in 2012. We also paid dividends of $22.5 million in 2013 compared with $20.5 million in 2012.
 
“We are fortunate that the strength of our balance sheet allows us to strategically and opportunistically acquire a leading design business like Holly Hunt Enterprises. Holly Hunt significantly extends our reach into the profitable and fragmented luxury residential market and is a great fit from a brand and cultural perspective,” commented Craig B. Spray, SVP & CFO.




Business Segment Results
 
The Office segment serves corporate, government, healthcare, retail and other customers in the United States and Canada providing a portfolio of office furnishing solutions including office systems, seating, storage, tables, desks and KnollExtra ® ergonomic accessories. The Office segment also includes international sales of our North American office products. The Studio segment includes KnollStudio®, Knoll Europe which sells primarily Knoll Studio products, and Richard Schultz® Design. The KnollStudio® portfolio includes a range of lounge seating; side, café and dining chairs; barstools; and conference, dining and occasional tables. The Coverings segment includes, KnollTextiles®, Spinneybeck®, Edelman® Leather, and FilzFelt™. These businesses serve a wide range of customers offering high quality textiles and leather.
 
 
Three Months Ended
December 31,
Net Sales (in millions)
 
2013
 
2012
Office
 
$
163.0

 
$
181.1

Studio
 
41.1

 
42.1

Coverings
 
26.7

 
26.8

Total Net Sales
 
$
230.9

(1)
$
250.0

 
 
 
 
 
 
 
Twelve Months Ended
December 31,
 
 
2013
 
2012
Office
 
$
599.1

 
$
633.3

Studio
 
154.5

 
147.6

Coverings
 
109.0

 
106.6

Total Net Sales
 
$
862.7

(1)
$
887.5

(1)         Results do not add due to rounding.
 
 
Three Months Ended
December 31, 2013
 
 
 
 
 
Operating Profit
Restructuring Charges
Intangible Asset Impairment
Adjusted Operating Profit
 
2012 Operating Profit
 
Office
 
$
2.3

$
2.7

$
—

$
5.0

 
$
20.0

 
Studio
 
2.8

3.0

—

5.8

 
6.2

 
Coverings
 
(3.8
)
—

8.9

5.1

 
1.9

 
Total
 
$
1.3

$
5.7

$
8.9

$
15.9

 
$
28.1

 
 
 
 
 
 
 
 
 
 
 
 
Twelve Months Ended
December 31, 2013
 
 
 
 
 
Operating Profit
Restructuring Charges
Intangible Asset Impairment
Adjusted Operating Profit
 
2012 Operating Profit
 
Office
 
$
13.4

$
2.7

$
—

$
16.1

 
$
48.6

 
Studio
 
15.6

3.0

—

18.6

 
21.8

 
Coverings
 
12.1

—

8.9

21.0

 
17.5

 
Total
 
$
41.1

$
5.7

$
8.9

$
55.7

 
$
87.9

 
 




Reconciliation of Non-GAAP Financial Measures
 
This release contains adjusted earnings per share and adjusted operating profit measures, which are both non-GAAP financial measures.  Adjusted earnings per share and adjusted operating profit are calculated by excluding from earnings per share and operating profit items that we believe to be infrequent or not indicative of our operating performance.  For the periods covered by this release such items consist of restructuring charges and an intangible asset impairment charge.  We present adjusted earnings per share and adjusted operating profit because we consider them to be important supplemental measures of our performance and believe them to be useful to show ongoing results from operations distinct from items that are infrequent or not indicative of our operating performance.
 
Adjusted earnings per share and adjusted operating profit are not measurements of our financial performance under GAAP and should not be considered as an alternative to earnings per share or operating profit under GAAP. Adjusted earnings per share and adjusted operating profit have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP. In addition, in evaluating adjusted earnings per share and adjusted operating profit, you should be aware that in the future we may incur expenses similar to the adjustments in this presentation. Our presentation of adjusted earnings per share and adjusted operating profit should not be construed as an inference that our future results will be unaffected by unusual or infrequent items. We compensate for these limitations by providing equal prominence of our GAAP results and using adjusted earnings per share and adjusted operating profit only supplementally.
 

The following tables reconcile adjusted earnings per share to GAAP earnings per share for the periods indicated.
 
 
 
 
Three Months Ended
December 31, 2013
 
 
2013
 
2012
Earnings per Share - Diluted
 
$
0.01

 
$
0.37

Add back:
 
 

 
 

Restructuring charges
 
0.08

 
—

Intangible asset impairment charge
 
0.12

 
—

Adjusted Earnings per Share - Diluted
 
$
0.21

 
$
0.37

 
 
 
Twelve Months Ended
December 31,
 
 
2013
 
2012
Earnings per Share - Diluted
 
$
0.49

 
$
1.06

Add back:
 
 

 
 

Restructuring charges
 
0.08

 
—

Intangible asset impairment charge
 
0.12

 
—

Adjusted Earnings per Share - Diluted
 
$
0.68

(1)
$
1.06


(1)         Results do not add due to rounding.





The following tables reconcile adjusted operating profit to GAAP operating profit for the periods indicated.
 
 
 
Three Months Ended
December 31,
 
 
2013
 
2012
Operating Profit ($mm)
 
$
1.3

 
$
28.1

Add back:
 
 

 
 

Restructuring charges
 
5.7

 
—

Intangible asset impairment charge
 
8.9

 
—

Adjusted Operating Profit
 
$
15.9

 
$
28.1

Net Sales
 
$
230.9

 
$
250.0

Operating Profit %
 
0.6
%
 
11.2
%
Adjusted Operating Profit %
 
6.9
%
 
11.2
%
 
 
 
Twelve Months Ended
 December 31,
 
 
 
 
2013
 
2012
 
 
Operating Profit ($mm)
 
$
41.1

 
$
87.9

 
 
Add back:
 
 

 
 

 
 
Restructuring charges
 
5.7

 
—

 
 
Intangible asset impairment charge
 
8.9

 
—

 
 
Adjusted Operating Profit
 
$
55.7

 
$
87.9

 
 
Net Sales
 
$
862.7

 
$
887.5

 
 
Operating Profit %
 
4.8
%
 
9.9
%
 
 
Adjusted Operating Profit %
 
6.5
%
 
9.9
%
 
 
 
 




Conference Call Information
 
Knoll will host a conference call on Wednesday, February 5, 2014 at 10:00 A.M. EST to discuss its financial results.
 
The call will include slides; participants are encouraged to listen to and view the presentation via webcast at http://www.knoll.com; go to "About Knoll" and click on "Investor Relations".
 
The conference call may also be accessed by dialing:
 
North America
866 953-6858
International
617 399-3482
Passcode
17355413
 
A replay of the webcast can be viewed by visiting the Investor Relations section of the Knoll corporate website.
 
In addition, an audio replay of the conference call will be available through February 12, 2014 by dialing 888 286-8010. International replay: 617 801-6888 (Passcode: 67471833).
 
 About Knoll
 
Knoll is recognized internationally for workplace and residential design that inspires, evolves and endures. Our portfolio of furniture, textile, leather and accessories brands, including Knoll, KnollStudio, KnollTextiles, KnollExtra, Spinneybeck, FilzFelt, Edelman Leather, and HOLLY HUNT, reflects our commitment to modern design that meets the diverse requirements of high performance offices and luxury interiors. A recipient of the National Design Award for Corporate and Institutional Achievement from the Smithsonian's Cooper-Hewitt, National Design Museum, Knoll is aligned with the U.S. Green Building Council and the Canadian Green Building Council and can help companies achieve Leadership in Energy and Environmental Design LEED workplace certification. Knoll is the founding sponsor of the World Monuments Fund Modernism at Risk program.




Cautionary Statement Regarding Forward-Looking Information
 
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding Knoll, Inc.'s expected future financial position, results of operations, revenue and profit levels, cash flows, business strategy, budgets, projected costs, capital expenditures, products, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include words such as "anticipate," "if," "believe," "plan," "goals,” "estimate," "expect," "intend," "may," "could," "should," "will," and other similar expressions are forward-looking statements. This includes, without limitation, our statements and expectations regarding any current or future recovery in our industry, our publicly announced plans for increased capital and investment spending to achieve our long-term revenue and profitability growth goals, and our expectations with respect to leverage. Such forward-looking statements are inherently uncertain, and readers must recognize that actual results may differ materially from the expectations of Knoll management. Knoll does not undertake a duty to update such forward-looking statements. Factors that may cause actual results to differ materially from those in the forward-looking statements include corporate spending and service-sector employment, price competition, acceptance of Knoll's new products, the pricing and availability of raw materials and components, foreign currency exchange, transportation costs, demand for high quality, well designed furniture solutions, changes in the competitive marketplace, changes in the trends in the market for furniture or coverings, the financial strength and stability of our suppliers, customers and dealers, access to capital, our ability to successfully integrate acquired businesses, and other risks identified in Knoll's annual report on Form 10-K, and other filings with the Securities and Exchange Commission. Many of these factors are outside of Knoll's control.

Contacts
 
Investors:
Craig B. Spray
 
Senior Vice President and Chief Financial Officer
 
Tel 215 679-1752
 
cspray@knoll.com
 
 
Media:
David E. Bright
 
Senior Vice President, Communications
 
Tel 212 343-4135
 
dbright@knoll.com






KNOLL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
 
 
 
 
Three Months Ended
December 31,
 
Twelve Months Ended
December 31,
 
 
2013
 
2012
 
2013
 
2012
Net Sales
 
$
230,872

 
$
250,026

 
$
862,668

 
$
887,499

Cost of sales
 
156,443

 
167,351

 
582,392

 
593,149

Gross profit
 
74,429

 
82,675

 
280,276

 
294,350

Selling, general, and administrative expenses
 
58,525

 
54,549

 
224,619

 
206,449

Restructuring charges
 
5,696

 
—

 
5,696

 
—

Intangible asset impairment charge
 
8,900

 
—

 
8,900

 
—

Operating profit
 
1,308

 
28,126

 
41,061

 
87,901

Interest expense
 
1,445

 
1,572

 
5,941

 
6,350

Other (income) expense, net
 
(2,157
)
 
(509
)
 
(3,430
)
 
3,215

Income before income tax expense
 
2,020

 
27,063

 
38,550

 
78,336

Income tax expense
 
1,386

 
9,570

 
15,404

 
28,335

Net income
 
$
634

 
$
17,493

 
$
23,146

 
$
50,001

Earnings per share:
 
 

 
 

 
 

 
 

Basic
 
$
0.01

 
$
0.37

 
$
0.49

 
$
1.07

Diluted
 
$
0.01

 
$
0.37

 
$
0.49

 
$
1.06

Weighted-average shares outstanding:
 
 

 
 

 
 

 
 

Basic
 
47,019,147

 
46,753,272

 
46,916,845

 
46,634,834

Diluted
 
47,790,612

 
47,082,864

 
47,659,418

 
47,059,186






KNOLL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
 
 
 
 
December 31,
2013
 
December 31,
2012
ASSETS
 
 
 
 

Current assets:
 
 

 
 

Cash and cash equivalents
 
$
12,026

 
$
29,956

Customer receivables, net
 
103,915

 
105,877

Inventories
 
96,449

 
98,195

Prepaid and other current assets
 
23,553

 
24,494

Total current assets
 
235,943

 
258,522

Property, plant, and equipment, net
 
137,893

 
124,838

Intangible assets, net
 
294,646

 
302,830

Other noncurrent assets
 
8,596

 
8,863

Total Assets
 
$
677,078

 
$
695,053

LIABILITIES AND STOCKHOLDERS' EQUITY
 
 

 
 

Current liabilities:
 
 

 
 

Accounts payable
 
94,353

 
83,600

Other current liabilities
 
73,694

 
92,345

Total current liabilities
 
168,047

 
175,945

Long-term debt
 
173,000

 
193,000

Other noncurrent liabilities
 
107,589

 
138,008

Total liabilities
 
448,636

 
506,953

Stockholders' equity
 
228,442

 
188,100

Total Liabilities and Stockholders' Equity
 
$
677,078

 
$
695,053






KNOLL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
 
 
 
 
Year Ended December 31,
 
 
2013
 
2012
Net income
 
$
23,146

 
$
50,001

Cash Flows provided by Operating Activities
 
54,614

 
70,568

Cash Flows used in Investing Activities
 
(29,379
)
 
(23,001
)
Cash Flows used in Financing Activities
 
(43,508
)
 
(45,791
)
Effect of exchange rate changes on cash and cash equivalents
 
343

 
(83
)
(Decrease) Increase in cash and cash equivalents
 
(17,930
)
 
1,693

Cash and cash equivalents at beginning of period
 
29,956

 
28,263

Cash and cash equivalents at end of period
 
$
12,026

 
$
29,956