Southern Indiana Business Report
JASPER — While net sales were down for fiscal year 2021, Jasper-based Kimball International finished the year with a strong fourth quarter that company leaders believe signals even more growth for fiscal year 2022.
According to the report, released Aug. 4, the firm saw consolidated net sales of $146.2 million for the quarter, compared to $156.1 million for the prior year’s fourth quarter. Net income was $7.4 million, or $0.20 per diluted share, inclusive of an after-tax contingent earn-out gain of $8.6 million, as well as intangible amortization expense and acquisition-related and restructuring charges. In last year’s fourth quarter, the company reported earnings per diluted share of $0.25. For the quarter, adjusted net income and adjusted earnings per share were $2.1 million, and $0.06 per diluted share, respectively. Adjusted EBITDA for the quarter was $2.9 million compared to $19.1 million in the year ago quarter. The company ended the fourth quarter in a strong financial position, with $107.6 million in short-term liquidity available, which includes cash, cash equivalents, plus the unused amount of our credit facility.
“Year-over-year revenue growth in our workplace and health markets, which accounted for over 80% of total fourth quarter revenues, and robust growth of 33% in orders from those markets are strong indications of the post-pandemic recovery that is underway in our business. In fact, our revenues and orders increased progressively throughout the fourth quarter, reflecting positive momentum that has continued into July,” said CEO Kristie Juster.
For the fiscal year, the firm reported net sales of $569.0 million, compared to $727.9 million a year ago. Net income for fiscal year 2021 was $7.4 million, or $0.20 per diluted share, inclusive of an after-tax contingent earn-out gain of $8.6 million, as well as restructuring expense, intangible amortization expense, and acquisition-related costs. Fiscal year 2020 net income was $41.1 million, or $1.11 per diluted share, inclusive of restructuring expense. Adjusted net income in fiscal 2021 was $13.0 million, or $0.35 per diluted share, compared to $47.9 million, or $1.29 per diluted share in the prior year. Fiscal year 2021 adjusted EBITDA was $29.7 million, or 5.2% of net sales, compared to fiscal year 2020 adjusted EBITDA of $81.3 million, or 11.2% of net sales.
“Looking ahead, we expect revenues to increase progressively throughout fiscal 2022, reaching 15% to 20% growth for the full year compared to fiscal 2021 levels, with the highest year-on-year comparisons taking place in the second half of the year. Similarly, we believe gross margin expansion will be more pronounced in the second half, increasing sequentially throughout the year, benefiting from higher volumes and ongoing efficiency projects,” Juster noted.
Kimball International is a leading omnichannel commercial furnishings company with expertise in the workplace, health and hospitality markets. Its family of brands includes Kimball, National, Etc., Interwoven, Kimball Hospitality, D’style and Poppin.