KIMBALL INTERNATIONAL INC

CIK:0000055772|SEC Filings

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Net Sales	$ 166,184	$ 180,918	$ 526,942	$ 488,931
Cost of Sales	103,705	125,782	338,712	338,254
Gross Profit	62,479	55,136	188,230	150,677
Selling and Administrative Expenses	57,508	48,783	167,710	150,863
Other General (Income) Expense	0	(4,523)	0	(4,523)
Contingent Earn-out (Gain) Loss	0	2,150	(3,160)	(15,750)
Restructuring Expense	793	1,730	2,842	4,195
Goodwill Impairment	0	0	36,684	34,118
Operating Income (Loss)	4,178	6,996	(15,846)	(18,226)
Other Income (Expense):
Interest income	165	25	354	77
Interest expense	(668)	(390)	(2,045)	(922)
Non-operating income (expense), net	625	(870)	805	(347)
Other income (expense), net	122	(1,235)	(886)	(1,192)
Income (Loss) Before Taxes on Income	4,300	5,761	(16,732)	(19,418)
Provision (Benefit) for Income Taxes	(1,391)	(534)	7,084	650
Net Income (Loss)	$ 5,691	$ 6,295	$ (23,816)	$ (20,068)
Earnings (Loss) Per Share of Common Stock:
Basic Earnings (Loss) Per Share (in dollars per share)	$ 0.16	$ 0.17	$ (0.65)	$ (0.55)
Diluted Earnings (Loss) Per Share (in dollars per share)	$ 0.15	$ 0.17	$ (0.65)	$ (0.55)
Class A and B Common Stock:
Average Number of Shares Outstanding - Basic (in shares)	36,404	36,795	36,566	36,788
Average Number of Shares Outstanding - Diluted (in shares)	36,912	37,061	36,566	36,788

Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands

9 Months Ended

Mar. 31, 2023

Mar. 31, 2022

Cash Flows From Operating Activities:

Net loss

$ (23,816)

$ (20,068)

Adjustments to reconcile net loss to net cash (used for) provided by operating activities:

Depreciation

11,160

10,820

Amortization

6,682

7,212

Loss on sales of assets

(13)

(4,537)

Restructuring and asset impairment charges

1,661

1,527

Deferred income tax and other deferred charges

(3,787)

Goodwill Impairment

36,684

34,118

Stock-based compensation

3,703

3,708

Change in earn-out liability

(3,160)

(15,750)

Other, net

(35)

(2,528)

Change in operating assets and liabilities:

Receivables

29,731

(12,847)

Inventories

8,021

(29,254)

Prepaid expenses and other current assets

14,418

(7,928)

Accounts payable

(21,191)

27,600

Customer deposits

(2,695)

3,157

Accrued expenses

(1,397)

(1,927)

Net cash provided by (used for) operating activities

55,966

(6,602)

Cash Flows From Investing Activities:

Capital expenditures

(13,658)

(12,869)

Proceeds from sales of assets

354

5,498

Purchases of capitalized software

(3,423)

(2,925)

Other, net

128

(50)

Net cash used for investing activities

(16,599)

(10,346)

Cash Flows From Financing Activities:

Proceeds from revolving credit facility

106,000

45,000

Payments on revolving credit facility

(124,000)

(27,000)

Repayments of long-term debt

(79)

(30)

Dividends paid to shareholders

(9,903)

(9,925)

Repurchases of Common Stock

(3,900)

(2,447)

Repurchase of employee shares for tax withholding

(223)

(590)

Net cash (used for) provided by financing activities

(32,105)

5,008

Net Decrease in Cash, Cash Equivalents, and Restricted Cash

^[1]

7,262

(11,940)

Cash, Cash Equivalents, Restricted Cash and Restricted Cash at Beginning of Period

^[1]

11,996

25,727

Cash, Cash Equivalents, Restricted Cash and Restricted Cash at End of Period

^[1]

19,258

13,787

Cash paid (refunded) during the period for:

Income taxes

4,439

(99)

Interest expense

$ 2,002

$ 862

[1]

The following table reconciles cash and cash equivalents in the balance sheets to cash, cash equivalents, and restricted cash per the statements of cash flows. The restricted cash included in other assets on the balance sheet represents customer deposits held due to a foreign entity being classified as a restricted entity by a government agency subsequent to our receipt of the deposit. In addition, the restricted cash balance for periods June 30, 2022 and prior included cash held in escrow for repayment of the Payment Protection Program loan that Poppin, Inc. obtained prior to its acquisition and amounts pledged as collateral for a long-term financing arrangement as contractually required by a lender and the restriction lapsed when the related debt was paid.

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Jun. 30, 2022
Current Assets:
Cash and cash equivalents	$ 18,768	$ 10,934
Receivables, net of allowances of $911 and $1,041, respectively	49,543	79,301
Inventories	89,633	97,969
Prepaid expenses and other current assets	15,706	30,937
Total current assets	173,650	219,141
Property and equipment, net of accumulated depreciation of $192,129 and $188,530, respectively	96,740	96,970
Right-of-use operating lease assets	17,338	12,839
Goodwill	11,160	47,844
Other intangible assets, net of accumulated amortization of $53,552 and $54,553, respectively	51,250	54,767
Deferred tax assets	18,219	14,472
Other assets	14,442	15,245
Total Assets	382,799	461,278
Current Liabilities:
Current maturities of long-term debt	0	33
Accounts payable	46,755	70,936
Customer deposits	27,011	29,706
Current portion of operating lease liability	5,768	6,096
Dividends payable	3,786	3,623
Accrued expenses	39,525	41,088
Total current liabilities	122,845	151,482
Long-term debt, less current maturities	50,000	68,046
Long-term operating lease liability	16,285	12,150
Other long-term liabilities	14,163	16,064
Total long-term liabilities	80,448	96,260
Common stock-par value $0.05 per share:
Additional paid-in capital	8,889	6,304
Retained earnings	235,891	269,833
Accumulated other comprehensive income	3,883	3,766
Less: Treasury stock, at cost, 6,615,000 shares and 6,179,000 shares, respectively	(71,308)	(68,518)
Total Shareholders’ Equity	179,506	213,536
Total Liabilities and Shareholders’ Equity	382,799	461,278
Class A Common Stock
Common stock-par value $0.05 per share:
Common Stock	8	8
Class B Common Stock
Common stock-par value $0.05 per share:
Common Stock	$ 2,143	$ 2,143