-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, QxvUi5qsqkn4YUl9n1k+xOMGiKTpKBzvN7xPEV5WfxucFr6zFJ2mZBhPoDajdtlO Al8PtqV8k3hriie7mXGKOw== 0000055772-94-000003.txt : 19940207 0000055772-94-000003.hdr.sgml : 19940207 ACCESSION NUMBER: 0000055772-94-000003 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19931231 FILED AS OF DATE: 19940203 FILER: COMPANY DATA: COMPANY CONFORMED NAME: KIMBALL INTERNATIONAL INC CENTRAL INDEX KEY: 0000055772 STANDARD INDUSTRIAL CLASSIFICATION: 2520 IRS NUMBER: 350514506 STATE OF INCORPORATION: IN FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 34 SEC FILE NUMBER: 000-03279 FILM NUMBER: 94504365 BUSINESS ADDRESS: STREET 1: 1600 ROYAL ST CITY: JASPER STATE: IN ZIP: 47549 BUSINESS PHONE: 8124821600 FORMER COMPANY: FORMER CONFORMED NAME: JASPER CORP DATE OF NAME CHANGE: 19740826 10-Q 1 2ND QTR 10-Q FOR KIMBALL INTERNATIONAL, INC. UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 1993 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 0-3279 KIMBALL INTERNATIONAL, INC. (Exact name of registrant as specified in its charter) Indiana 35-0514506 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 1600 Royal Street, Jasper, Indiana 47549-1001 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (812) 482-1600 Not Applicable Former name, former address and former fiscal year, if changed since last report Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No The number of shares outstanding of the Registrant's common stock as of January 31, 1994 was: Class A Common Stock - 7,366,267 shares Class B Common Stock - 13,798,091 shares - 1 - KIMBALL INTERNATIONAL, INC. FORM 10-Q INDEX
PAGE NO. PART I FINANCIAL INFORMATION: Item 1. Financial Statements Condensed Consolidated Statement of Financial Condition - December 31, 1993 (Unaudited), June 30, 1993 and December 31, 1992 (Unaudited) . . . . . . . . . . . . . . . . . . 3 Consolidated Statement of Income (Unaudited) - Six Months Ended December 31, 1993 and 1992 . . . . . . . . . . . . . 4 - Three Months Ended December 31, 1993 and 1992 . . . . . . . . . . . . 5 Consolidated Statement of Cash Flows (Unaudited) - Six Months Ended December 31, 1993 and 1992 . . . . . . . . . . . . . 6 Notes To Consolidated Financial Statements (Unaudited) . . . . . . . . . 7 Item 2. Management's Discussion and Analysis Of Financial Condition and Results of Operations . . . . . . . . . . . . . 8-10 PART II OTHER INFORMATION: Item 4(c). Submission of Matters to a Vote of Security Holders . . . . . . . . 11 Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . . . 11 SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . 12 - Exhibit #11 - Computation of Earnings Per Share (Part I Exhibit) . . . . . . . . . . . . . . . . . . . . . . . . 13-14 - Exhibit #15 - Letter re: Unaudited Interim Financial Information . 15 - Exhibit #99 - Report of Independent Public Accountants - Limited Review of Interim Financial Information . . . . . . . . . 16
- 2 - PART I. FINANCIAL INFORMATION KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL CONDITION (dollars in thousands)
(unaudited) (unaudited) December 31, June 30, December 31, ASSETS 1993 1993 1992 CURRENT ASSETS: Cash and cash equivalents $ 4,137 $ 4,625 $ 15,000 Short-term investments 84,164 102,597 91,404 Accounts and notes receivable, less allow- ance for possible losses of $4,855, $4,916 and $5,745 87,066 87,623 82,983 Inventories 89,803 84,666 75,628 Other 18,381 15,947 15,314 Total Current Assets 283,551 295,458 280,329 PROPERTY AND EQUIPMENT - at cost, less accumulated depreciation of $195,974, $184,458 and $173,904 161,731 152,361 147,365 OTHER ASSETS 11,532 4,886 4,899 Total Assets $456,814 $452,705 $432,593 LIABILITIES AND SHARE OWNERS' EQUITY CURRENT LIABILITIES: Loans payable to banks $ 2,329 $ 3,479 $ 7,580 Current maturities of long-term debt 1,843 1,802 1,724 Accounts payable 36,340 38,518 30,915 Dividends payable 4,426 4,428 4,005 Accrued expenses 52,448 51,843 45,468 Total Current Liabilities 97,386 100,070 89,692 OTHER LIABILITIES: Long-term debt, less current maturities 1,029 2,017 2,936 Deferred income taxes 16,450 17,277 16,923 Total Other Liabilities 17,479 19,294 19,859 SHARE OWNERS' EQUITY: Common Stock 6,723 6,723 6,723 Additional Paid-In Capital 791 791 791 Foreign currency translation adjustment 427 1,351 1,140 Retained earnings 341,671 331,839 321,751 349,612 340,704 330,405 Less: Treasury Stock, at cost (7,663) (7,363) (7,363) Total Share Owners' Equity 341,949 333,341 323,042 Total Liabilities and Share Owners' Equity $456,814 $452,705 $432,593 See Notes to Consolidated Financial Statements
- 3 - KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME (dollars in thousands except per share amounts)
(unaudited) Six Months Ended December 31, 1993 1992 Net Sales $403,686 $347,016 Cost of Sales 289,940 245,457 Gross Profit 113,746 101,559 Selling, Administrative and General Expenses 85,645 78,403 Restructuring Expenses --- 2,850 Operating Income 28,101 20,306 Other Income (Expense): Interest Expense (202) (787) Interest Income 1,055 2,324 Other - net 1,179 468 2,032 2,005 Income Before Taxes on Income 30,133 22,311 Taxes on Income 11,449 10,249 Net Income $ 18,684 $ 12,062 Earnings Per Share of Common Stock: Net Income: Class A Common Stock $.88 $.57 Class B Common Stock $.88 $.57 Dividends Per Share of Common Stock: Class A Common Stock $.41 1/2 $.37 1/2 Class B Common Stock $.42 $.38 Average total number of shares outstanding Class A and B Common Stock 21,166,157 21,222,955 See Notes to Consolidated Financial Statements
- 4 - KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME (dollars in thousands except per share amounts)
(unaudited) Three Months Ended December 31, 1993 1992 Net Sales $205,804 $175,825 Cost of Sales 149,193 124,876 Gross Profit 56,611 50,949 Selling, Administrative and General Expenses 43,149 39,558 Restructuring Expenses --- 2,850 Operating Income 13,462 8,541 Other Income (Expense): Interest Expense (61) (357) Interest Income 472 1,067 Other - net 291 392 702 1,102 Income Before Taxes on Income 14,164 9,643 Taxes on Income 5,760 4,901 Net Income $ 8,404 $ 4,742 Earnings Per Share of Common Stock: Net Income: Class A Common Stock $.40 $.23 Class B Common Stock $.40 $.23 Dividends Per Share of Common Stock: Class A Common Stock $.20 3/4 $.18 3/4 Class B Common Stock $.21 $.19 Average total number of shares outstanding Class A and B Common Stock 21,164,358 21,213,289 See Notes to Consolidated Financial Statements
- 5 - KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS (dollars in thousands)
(unaudited) Six Months Ended December 31, 1993 1992 Cash Flows From Operating Activities: Net income $ 18,684 $ 12,062 Non-cash charges (credits) to net income: Depreciation and amortization 14,188 13,571 Gain on sales of assets (542) (234) Deferred income tax provision (1,223) (37) Restructuring Expenses --- 2,577 (Increase) decrease in current assets: Accounts and notes receivable 557 (7,187) Inventories (5,137) (3,179) Other current assets (986) 312 Increase (Decrease) in current liabilities: Accounts payable (5,360) 659 Accrued expenses (828) (7,499) Net Cash Provided By Operating Activities 19,353 11,045 Cash Flows From Investment Activities: Capital Expenditures (22,958) (13,442) Proceeds from sales of assets 648 676 Increase in other assets (3,791) (906) Purchases of short-term investments (4,560) (9,019) Maturities and sales of short-term investments 22,993 30,473 Net Cash (Used For) Provided By Investment Activities (7,668) 7,782 Cash Flows From Financing Activities: Net change in short-term borrowings (1,150) 1,640 Decrease in long-term debt (947) (169) Dividends paid (8,852) (8,032) Acquisition of Treasury Stock (300) (1,441) Other - net (895) (644) Net Cash Used For Financing Activities (12,144) (8,646) Effect of Exchange Rate Change on Cash and Cash Equivalents (29) (51) Net (Decrease) Increase in Cash and Cash Equivalents (488) 10,130 Cash and Cash Equivalents-Beginning of Period 4,625 4,870 Cash and Cash Equivalents-End of Period $ 4,137 $ 15,000 Supplemental Disclosure of Cash Flow Information: Cash paid during the period for: Income Taxes $ 12,834 $ 14,856 Interest $ 196 $ 763 Total Cash, Cash Equivalents and Short-Term Investments: Cash and cash equivalents $ 4,137 $ 15,000 Short-term investments 84,164 91,404 Totals $ 88,301 $106,404 See Notes to Consolidated Financial Statements
- 6 - KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (1) The interim financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. It is suggested that these financial statements be read in conjunction with the financial statements and the notes thereto included in the Company's latest annual report on Form 10-K. (2) Inventories consist of: (in thousands)
December 31, June 30, December 31, 1993 1993 1992 Raw Materials $50,581 $43,626 $40,124 Work-in-Process 15,386 17,527 13,839 Finished Goods 23,836 23,513 21,665 Total $89,803 $84,666 $75,628
For interim reporting, LIFO inventories are computed based on estimated year-end quantities and price levels. Changes in such estimates will be reflected in the interim financial statements in the period in which they occur. (3) Earnings per share are computed under the method prescribed in Accounting Principles Board Opinion No. 15 for computing earnings per share for two class common stock due to the dividend preference of Class B Common Stock. (4) Effective July 1, 1993, the Company adopted FASB Statement No. 109, Accounting for Income Taxes. The impact of adopting the new statement was $1,200,000 of income, or 5 cents per share. See Management's Discussion and Analysis for additional discussion. (5) Net income in the second quarter and six months ended December 31,1992, include a restructuring charge of $2,850,000, or $.13 per Class B share, relating to the restructuring of the Company's piano operations in Europe. (6) Arthur Andersen & Co., independent public accountants, performed a limited review of the consolidated financial statements for the three and six month periods ended December 31, 1993, as indicated in the report on the limited review attached as an Exhibit. Since they did not perform an audit, they express no opinion on the financial statements referred to above. Management has given effect to any significant adjustments and disclosures proposed in the course of the limited review. - 7 - KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS OVERVIEW Second quarter net sales and net income levels were up when compared to the previous year's second quarter. Net sales increased 17% and net income, excluding a $2.9 million restructuring charge in the prior year second quarter to restructure the Company's piano operations in Europe, increased 11%, principally due to increased sales and operating income levels in Furniture and Cabinets and Electronic Contract Assemblies segments. The Company ended the second quarter with strong open order levels across most major product lines. For the six month period ended December 31, 1993, net sales and net income levels were also both up when compared to the prior year as sales and operating income levels in each of the Company's three business segments were above the year earlier period. The current year six month period includes the one time impact of adopting FASB Statement No. 109, Accounting for Income Taxes, which increased net income by $1.2 million. Net sales increased 16% and net income, excluding the adoption of FASB Statement No. 109 in the current year and the restructuring charge in the prior year, increased 17%, when compared to the prior year six month period. Second quarter and six month period operating losses in the Company's European operations were reduced when compared to the same periods in the prior year. RESULTS OF OPERATIONS - THREE AND SIX MONTHS ENDED DECEMBER 31, 1993 COMPARED TO THREE AND SIX MONTHS ENDED DECEMBER 31, 1992 NET SALES -- In the Furniture and Cabinets Segment, second quarter and six month period sales increased 18% and 17%, respectively, when compared to the same periods in the previous year, largely due to increased sales in the Office Furniture Group, Cabinets and OEM Furniture Group and the Lodging Group. In the Office Furniture Group, sales of office furniture systems increased over the prior year second quarter and six month period levels as the Company continues to experience sales growth in its system and modular furniture product lines, which yield greater flexibility in office configuration. Sales of office furniture casegoods were up over prior year second quarter and six month period sales levels, primarily due to increased sales of mid-range priced casegoods product lines, partially the result of new product line offerings. Open orders in the Office Furniture Group remained strong at the end of the second quarter. Sales in the Cabinets and OEM Furniture Group were up over the prior year second quarter and six month periods, as an increase in the sales of television and speaker cabinets in wood and vinyl more than offset a reduction in sales of contract furniture. Open order levels for the Cabinets and OEM Furniture Group at the end of the second quarter were up compared to the prior year weak levels, generally reflecting the cyclical nature of retail television sales to consumers. Kimball Lodging Group's sales were up when compared to the prior year second quarter and six month period as sales of hospitality product lines continue to exceed the year earlier depressed levels. Open order levels in the Lodging Group at the end of the second quarter remained strong, although down when compared to prior year levels, as the prior year included orders for several large hospitality projects. Electronic Contract Assemblies Segment second quarter and six month period sales levels increased 23% and 21%, respectively, above the same periods in the prior year. The sales improvement was the result of increased computer and automotive assemblies sales, in part due to customer diversification. Open order levels in this segment remained strong at the end of the second quarter. Included in this segment are sales to one customer which accounted for 12% of consolidated second quarter net sales in both the current and prior year; for the current and prior six month period, sales to this customer accounted for 11% of consolidated net sales. - 8 - Processed Wood Products and Other Segment sales in the current year second quarter and six month period exceeded the prior year levels, largely due to increased outside sales of wood products in the Raw Materials Group, which were partially the result of price increases on lumber and dimension products as well as increased volumes on select product lines. OPERATING INCOME -- As a percent of net sales, operating income was 6.5% in the second quarter and 7.0% in the six month period, which represents increases of 1.6 and 1.1 percentage points compared to the prior year periods, respectively. When comparing both the second quarter and six month period in the current year to the prior year, gross profit levels have decreased. The reduced gross profit percentage is primarily the result of an increase in material costs, partially due to a sales mix change and increased material component prices. Both the prior year second quarter and six month period operating income levels include $2.9 million of restructuring expense to restructure the Company's piano operations in Europe, which reduced operating income levels as a percentage of sales by 1.6 and .8 percentage points, respectively. In the fourth quarter of fiscal 1993, the Company began to experience procurement difficulties and increased prices on key electronic component part purchases, particularly semiconductor components which were placed on an industry-wide "allocation". In the second quarter, the Company began to encounter less difficultly in sourcing these components and began to see some downward movement on component prices, although still remaining above levels prior to the "allocation". In the Furniture and Cabinets Segment, most operating groups experienced improved operating income levels in the second quarter and six month period when compared to the same periods in the prior year. The Cabinets and OEM Furniture Group and European Operations Group experienced the strongest improvement in operating income levels. In the Cabinets and OEM Furniture Group, the improved operating income performance in the current year second quarter and six month period was primarily attributable to increased volume levels and a shifting sales mix to higher margined products. While the Company's European operations continued to operate at a loss, largely due to these subsidiaries continuing to experience depressed economic conditions in their principal markets, these losses were reduced when compared to the prior year second quarter and six month periods, exclusive of the restructuring charge in the prior year. The Company continues to anticipate losses in its European subsidiaries for the remainder of fiscal 1994. In the Electronic Contract Assemblies Segment, operating income increased in the second quarter and six month period when compared to the prior year. Increased operating income resulting from increased volume levels was somewhat offset by a changing sales mix, operating inefficiencies associated with the start-up of production of new product lines and development costs associated with the next generation of existing product lines as well as material price increases (as discussed above). The electronics industry remains very competitive which has caused the Company to experience some difficulty in passing on higher operating costs to its customers. In the Processed Wood Products and Other Segment, current year second quarter operating income was down slightly when compared to the prior year, primarily due to lower operating income levels on laminated wood product line sales. Operating income levels in the six month period were up when compared to the prior year, primarily a result of higher outside sales of wood products as well as improved operating income levels on plastic component sales. OTHER INCOME -- Interest expense was down in both the second quarter and six month period as a result of reduced outside borrowings in the Company's European subsidiaries as the Company transferred cash to these subsidiaries in mid fiscal 1993 to allow them to reduce and/or eliminate their outside debt levels. Interest income was down due to a lower average investment balance and reduced interest rates when compared to the same periods a year ago. TAXES ON INCOME -- The Company's effective tax rate decreased 10.1 and 7.9 percentage points in the second quarter and six month period, respectively, when compared to the prior - 9 - year periods, largely due to the reduced level of foreign operating losses, including the prior year foreign restructuring charge, for which limited income tax benefit is available at this time. The impact of adopting FASB Statement No. 109 (as discussed below) reduced the six month period Taxes on Income by $1.2 million and the effective tax rate by 4.0%. Both the current year second quarter and six month period effective tax rates have been increased as a result of a 1 percentage point increase in the U.S. statutory tax rate. NET INCOME -- Net income in the second quarter was $8,404,000, or 40 cents per share of Class B Common Stock, up 74% from last year's $4,742,000, or 23 cents per Class B Share. The prior year second quarter includes a restructuring charge which decreased net income by $2.9 million, or 13 cents per Class B Share. Excluding the restructuring charge in the prior year second quarter, net income was up 11%. Net income in the six month period ended December 31, 1993, was $18,684,000, or 88 cents per share of Class B Common Stock, up 54% from last year's six month period net income of $12,062,000, or 57 cents per Class B Share. The current year six month period includes the one time impact of adopting FASB Statement No. 109, which increased net income by $1,200,000, or 5 cents per share. Excluding the one time impact of adopting FASB Statement No. 109 in the current year, and the restructuring charge in the prior year, net income was up 17%. ADOPTION OF NEW ACCOUNTING STANDARD -- Effective July 1, 1993, the Company adopted FASB Statement No. 109, Accounting for Income Taxes. The impact of adopting the new statement, which, due to the immateriality of this transaction was included in Taxes on Income in the Consolidated Statement of Income, was $1,200,000 of income, or 5 cents per share. This one-time adoption impact was triggered by a lowering of the Company's net deferred tax liability as Statement No. 109 requires all deferred tax items be established at current enacted statutory rates. LIQUIDITY AND CAPITAL RESOURCES Cash, Cash Equivalents and Short-Term Investments totaled $88.3 million at December 31, 1993, compared to $107.2 million at June 30, 1993 and $106.4 million one year ago. Working capital and the current ratio were a strong $186.2 million and 2.9 to 1, respectively, as of December 31, 1993. The Company expects to maintain this strong liquidity position throughout fiscal year 1994. Net cash provided by operating activities totaled $19.4 million for the six months ended December 31, 1993, as cash flow generated by the Company's net income level was somewhat reduced by increased investments in inventories and a lowering of the accounts payable balance to suppliers. The positive cash flow from operating activities was offset by the Company's decision to internally finance capital investments for the future including the construction of a new steel furniture manufacturing facility in Idaho, continued investment in information technology, including a new enterprise business and manufacturing information system and cash used to purchase other capital assets which together totaled approximately $26.7 million in the first six months. The Company used an additional $12.1 million in cash to fund financing activities, principally to pay dividends. Other cash flow activity in the six months netted to an inflow of $.5 million, as the Company's total cash flow, excluding the effect of purchases, maturities and sales of short-term investments, was a negative $18.9 million in the six months ended December 31, 1993. The Company continues to forecast fiscal 1994 as a period of high capital expansion, including approximately $28 million, of which approximately $13 million was expended in the first six months, to construct a new steel furniture manufacturing facility in Idaho to relocate the operations of Harpers from Torrance, California to Post Falls, Idaho. The Company anticipates total construction costs will approximate $35 million. The Company also plans to continue to invest additional cash in its European operations as well as in new information technology over the remainder of fiscal 1994, both of which will be funded internally. - 10 - PART II. OTHER INFORMATION Item 4(c) - Submission of Matters to a Vote of Security Holders The Company's Annual Meeting of Share Owners was held on October 12, 1993. The Board of Directors was elected in its entirety, based on the following election results:
Nominees as Directors by Holders of Class A Common Stock Votes For* Votes Withheld Thomas L. Habig 6,994,861 11,776 Douglas A. Habig 6,994,861 11,776 James C. Thyen 6,994,861 11,776 John B. Habig 6,994,861 11,776 Anthony P. Habig 6,994,861 11,776 Ronald J. Thyen 6,994,861 11,776 Leonard B. Marshall, Jr. 6,994,861 11,776 Dr. Jack R. Wentworth 6,994,861 11,776 Brian K. Habig 6,994,861 11,776 John T. Thyen 6,994,861 11,776 Gary P. Critser 6,994,861 11,776
* Votes for nominees as Directors by holders of Class A Common Stock totaled 6,994,861 shares, or 94.9% of the total 7,368,271 Class A shares outstanding and eligible to vote.
Nominees as Directors by Holders of Class B Common Stock Votes For* Votes Withheld Patricia Harding Snyder** 11,865,847 25,339
* Votes for nominees as Directors by holders of Class B Common Stock totaled 11,865,847 shares, or 85.9% of the total 13,806,351 Class B shares outstanding and eligible to vote. ** Retired from the Board of Directors effective 12/31/93. Item 6. - Exhibits and Reports on Form 8-K (a) Exhibits (numbered in accordance with Item 601 of Regulation S-K) (11) Computation of earnings per share (15) Letter re: Unaudited Interim Financial Information (99) Report of Independent Public Accountants - Limited Review of Interim Financial Information (b) Reports on Form 8-K No reports on Form 8-K have been filed during the three months ended December 31, 1993. - 11 - Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. KIMBALL INTERNATIONAL, INC. Douglas A. Habig DOUGLAS A. HABIG (President and Chief Executive Officer) Gary P. Critser GARY P. CRITSER (Senior Exec. Vice President, Chief Accounting Officer and Secretary) Date: February 3, 1994 - 12 - EX-11 2 EXHIBIT 11 TO KIMBALL'S 10-Q KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES COMPUTATION OF EARNINGS PER SHARE SIX MONTHS ENDED DECEMBER 31, 1993 (UNAUDITED) Net income, six months ended December 31, 1993 . . . . . . . . . . . $18,684,000 Dividends declared: Class A Common -- $.4150 per share . . . . . . . . . . . . . . . . $(3,057,000) Class B Common -- $.42 per share . . . . . . . . . . . . . . . . . (5,795,000) (8,852,000) Undistributed earnings . . . . . . . . . . . . . . . . . . . . . . . $9,832,000 Undistributed earnings divided by 21,166,157 average number of shares outstanding . . . . . . . . . . . . . . . . . . . . . . . $.4645 Class A Class B Undistributed earnings per share . . . . . . . . . . . . . . . . . . $.4645 $.4645 Assumed distribution of earnings . . . . . . . . . . . . . . . . . . .4150 .4200 Earnings per share . . . . . . . . . . . . . . . . . . . . . . . . $.8795 $.8845 Rounded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $.88 $.88
COMPUTATION OF EARNINGS PER SHARE SIX MONTHS ENDED DECEMBER 31, 1992 (UNAUDITED) Net income, six months ended December 31, 1992 . . . . . . . . . . . $12,062,000 Dividends declared: Class A Common -- $.3750 per share . . . . . . . . . . . . . . . . $(2,769,000) Class B Common -- $.38 per share . . . . . . . . . . . . . . . . . (5,251,000) (8,020,000) Undistributed earnings . . . . . . . . . . . . . . . . . . . . . . . $ 4,042,000 Undistributed earnings divided by 21,222,955 average number of shares outstanding . . . . . . . . . . . . . . . . . . . . . . . $.1905 Class A Class B Undistributed earnings per share . . . . . . . . . . . . . . . . . . $.1905 $.1905 Assumed distribution of earnings . . . . . . . . . . . . . . . . . . .3750 .3800 Earnings per share . . . . . . . . . . . . . . . . . . . . . . . . $.5655 $.5705 Rounded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $.57 $.57 Part I - Exhibit (11)
- 13 - KIMBALL INTERNATIONAL, INC. AND SUBSIDIARIES COMPUTATION OF EARNINGS PER SHARE THREE MONTHS ENDED DECEMBER 31, 1993 (UNAUDITED) Net income, three months ended December 31, 1993 . . . . . . . . . . $8,404,000 Dividends declared: Class A Common -- $.2075 per share . . . . . . . . . . . . . . . . $(1,528,000) Class B Common -- $.21 per share . . . . . . . . . . . . . . . . . (2,898,000) (4,426,000) Undistributed earnings . . . . . . . . . . . . . . . . . . . . . . . $3,978,000 Undistributed earnings divided by 21,164,358 average number of shares outstanding . . . . . . . . . . . . . . . . . . . . . . . $.1880 Class A Class B Undistributed earnings per share . . . . . . . . . . . . . . . . . . $.1880 $.1880 Assumed distribution of earnings . . . . . . . . . . . . . . . . . . .2075 .2100 Earnings per share . . . . . . . . . . . . . . . . . . . . . . . . $.3955 $.3980 Rounded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $.40 $.40
COMPUTATION OF EARNINGS PER SHARE THREE MONTHS ENDED DECEMBER 31, 1992 (UNAUDITED) Net income, three months ended December 31, 1992 . . . . . . . . . . $4,742,000 Dividends declared: Class A Common -- $.1875 per share . . . . . . . . . . . . . . . . $(1,385,000) Class B Common -- $.19 per share . . . . . . . . . . . . . . . . . (2,620,000) (4,005,000) Undistributed earnings . . . . . . . . . . . . . . . . . . . . . . . $ 737,000 Undistributed earnings divided by 21,213,289 average number of shares outstanding . . . . . . . . . . . . . . . . . . . . . . . $.0347 Class A Class B Undistributed earnings per share . . . . . . . . . . . . . . . . . . $.0347 $.0347 Assumed distribution of earnings . . . . . . . . . . . . . . . . . . .1875 .1900 Earnings per share . . . . . . . . . . . . . . . . . . . . . . . . $.2222 $.2247 Rounded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $.23 $.23 Part I - Exhibit (11)
- 14 - EX-15 3 EXHIBIT 15 TO KIMBALL'S 10-Q To Kimball International, Inc.: We are aware that Kimball International, Inc. has incorporated by reference in its Registration Statement No. 33-20125 its Form 10-Q for the quarter ended December 31, 1993, which includes our report dated January 19, 1994, covering the unaudited interim financial information contained therein. Pursuant to Regulation C of the Securities Act of 1933, that report is not considered a part of the registration statement prepared or certified by our firm or a report prepared or certified by our firm within the meaning of Sections 7 and 11 of the Act. Arthur Andersen & Co. ARTHUR ANDERSEN & CO. January 19, 1994 Indianapolis, Indiana. Exhibit (15) - 15 - EX-99 4 EXHIBIT 99 TO KIMBALL'S 10-Q REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To Kimball International, Inc.: We have reviewed the accompanying condensed consolidated statement of financial condition of Kimball International, Inc. (an Indiana corporation) and subsidiaries as of December 31, 1993, and the related condensed consolidated statements of income and cash flows for the three-month and six-month periods then ended. These financial statements are the responsibility of the Company's management. We conducted our review in accordance with standards established by the American Institute of Certified Public Accountants. A review of interim financial information consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to the financial statements referred to above for them to be in conformity with generally accepted accounting principles. We have previously audited, in accordance with generally accepted auditing standards, the consolidated statement of financial condition as of June 30, 1993, and the related consolidated statements of income, cash flows and shareowners' equity for the year then ended (not presented separately herein), and in our report dated August 2, 1993, we expressed an unqualified opinion on those statements. In our opinion, the information set forth in the accompanying condensed consolidated statement of financial condition as of June 30, 1993, is fairly stated, in all material respects, in relation to the consolidated statement of financial condition from which it has been derived. Arthur Andersen & Co. ARTHUR ANDERSEN & CO. Indianapolis, Indiana, January 19, 1994. Exhibit (99) - 16 - -----END PRIVACY-ENHANCED MESSAGE-----