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."

 

 

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        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.

-- Gross profit as a percent of net sales improved 4.7 percentage points in the Furniture segment in the fourth quarter of fiscal year 2012 when compared to the prior year as earnings were favorably impacted by a reduction in the LIFO inventory reserve and benefits realized from price increases.

-- Selling and administrative costs in the Furniture segment for the fourth quarter of fiscal year 2012 remained flat compared to the prior year as lower sales and marketing costs were offset by higher profit-based incentive compensation costs. As a percent of net sales, fiscal year 2012 fourth quarter selling and administrative expenses improved 1.3 percentage points compared to the prior year on the leverage from the increase in revenue.

Non-GAAP Financial Measures

This press release contains non-GAAP financial measures. A non-GAAP financial measure is a numerical measure of a company's financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with Generally Accepted Accounting Principles (GAAP) in the United States in the statement of income, balance sheet or statement of cash flows of the Company. The non-GAAP financial measures on a consolidated basis used within this release include 1) net sales excluding sales to Bayer AG, 2) operating income (loss) excluding restructuring charges, 3) net income excluding restructuring charges, and 4) earnings per Class B diluted share excluding restructuring charges. The non-GAAP financial measures on a segment basis used within this release include 1) net sales excluding sales to Bayer AG, 2) operating income excluding restructuring charges and 3) net income excluding restructuring charges. Reconciliations of the reported GAAP numbers to these non-GAAP financial measures are included in the Financial Highlights table below. Management believes it is useful for investors to understand how its core operations performed without the effects of the costs incurred in executing its restructuring plans. Excluding the restructuring charges allows investors to meaningfully trend, analyze, and benchmark the performance of the Company's core operations. Many of the Company's internal performance measures that management uses to make certain operating decisions exclude these charges to enable meaningful trending of core operating metrics.

A webcast of the live conference call may be accessed by visiting Kimball's Investor Relations website at www.ir.kimball.com .

For those unable to participate in the live webcast, the call will be archived at www.ir.kimball.com within two hours of the conclusion of the live call and will remain there for approximately 90 days. A telephone replay of the conference call will be available within two hours after the conclusion of the live event through August 16, 2012.

        


About Kimball International, Inc.

Recognized with a reputation for excellence, Kimball International, Inc. is committed to a high performance culture that values personal and organizational commitment to quality, reliability, value, speed and ethical behavior. Kimball employees know they are part of a corporate culture that builds success for Customers while enabling employees to share in the Company's success through personal, professional and financial growth.

Kimball International, Inc. provides a variety of products from its two business segments: the Electronic Manufacturing Services segment and the Furniture segment. The Electronic Manufacturing Services segment provides engineering and manufacturing services which utilize common production and support capabilities to a variety of industries globally. The Furniture segment provides furniture for the office and hospitality industries sold under the Company's family of brand names.

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