JASPER, IN - Kimball International Inc.reported net income of $11.6 million for its 2012 fiscal year ended June 30, representing a 137% improvement over FY 2011.
Kimball managed to raise its annual profit despite a 5% decline in total revenues to $1.1 billion by reducing administrative and sales expenses.
Kimball's year end results were aided by a fourth quarter in which it recorded net income of $6.1 million on net sales of $290.1 million, up 3.3% and 3.0% respectively compared to Q4 of 2011. Net sales in Kimball's Furniture segment increased 5% in Q4 compared to the prior year on increased net sales of hospitality furniture. Net sales of office furniture products in the fourth quarter were flat with the prior year.
James Thyen, CEO and president of Kimball, said, "Both the furniture segment and the electronic manufacturing services segment delivered solid financial performance during the fourth quarter to end fiscal year 2012 with good momentum. While we continue to see mixed demand in our top line revenue, the gross margin improvement in both segments coupled with the reduction in consolidated selling and administrative expenses during the quarter was very encouraging.
"We are optimistic going into fiscal year 2013 and are well positioned to continue the momentum gained this past quarter." Thyen added. "However, we do remain cautious given the delicate state of the global macroeconomic environment caused by the European debt crisis, uncertainty with the upcoming U.S. elections and the uncertainty surrounding the potential federal fiscal cliff of pending tax increases and spending cuts at the end of the year."
Financial Highlights Three Months Ended (Amounts in Thousands) ---------------------- June 30, June 30, Percent 2012 2011 Change ----------- ----------- ------ Net Sales $ 125,256 $ 119,695 5 % Operating Income (Loss) $ 5,844 $ (1,473) 497 % Operating Income (Loss) % 4.7 % (1.2 %) Net Income (Loss) $ 3,186 $ (906) 452 %
-- Fiscal year 2012 fourth quarter net sales in the Furniture segment increased 5% compared to the prior year on increased net sales of hospitality furniture. Net sales of office furniture products in the fourth quarter were flat with the prior year.