Kimball International, Inc. announced $194.1 million in quarterly sales; its highest in more than 15 years.
Other highlights included: a reported revenue growth of 11%, or 8% on an organic basis; strong order growth of 18% or 15% on an organic basis; and significant 27% sales growth and 33% order growth in the hospitality vertical on an organic basis.
“We continued on a positive note with our highest revenues in over 15 years and strong double-digit organic order growth in the first quarter,” Kristie Juster, CEO, stated.
She added the company’s order backlog is strong and operating cash flow remains robust, enabling them to continue to invest in further growth and value creation.
“Net income was down slightly, but excluding one-time CEO transition costs our adjusted net income was up 6% from last year,” Juster said.
She explained higher transportation, steel, and other commodity costs, as well as tariffs that have been implemented along with additional tariff increases in the future have increased costs. The company is negotiated with suppliers and taking other actions to mitigate those costs increases.
“Our return on capital was higher than any of the public companies in the office furniture industry.” Juster said.
“We also just announced the acquisition of David Edward, a provider of impeccable quality upholstered products in the furniture industry. David Edward and our Kimball brand are strategically aligned, and we intend to further invest in the company and utilize their skilled workforce with a goal of making David Edward the premier source of upholstered products for architects and designers. We welcome David Edward employees to the Kimball International family.”
Full report here www.kimballinternational.com/irhome.