Revenue during the quarter grew 11.77 percent to $175 million from $156.57 million in the previous year period. Gross margin for the quarter expanded 91 basis points over the previous year period to 33.54 percent. Total expenses were 90.12 percent of quarterly revenues, down from 93.79 percent for the same period last year. This has led to an improvement of 367 basis points in operating margin to 9.88 percent.

Operating income for the quarter was $17.29 million, compared with $9.72 million in the previous year period.

However, the adjusted operating income for the quarter stood at $15.46 million compared to $10.91 million in the prior year period. At the same time, adjusted operating margin improved 187 basis points in the quarter to 8.83 percent from 6.97 percent in the last year period.

Bob Schneider, chairman and chief executive officer, stated, “The first quarter was a very nice one for Kimball, in fact exceeding all previous quarterly operating income results for the last 15 years. I am very pleased to report that we reached our sales and earnings guidance during this quarter and am especially encouraged that at this performance level, adjusted return on capital, excluding restructuring, of 25.5% is among the best in the industry. Achieving this level of earnings was in large part made possible by tremendous efforts to bring to market new products and marketing programs, along with the completion of the two restructuring plans since the spin-off of Electronics, and many other continuous improvement efforts. What Kimball accomplished the last two years is a real testament to the dedication of our 3,000 employees, all focused on serving the customer and continuous improvement."

The company has spent $7.76 million cash to meet investing activities during the quarter as against cash outgo of $5.90 million in the last year period.

The company has spent $5.97 million cash to carry out financing activities during the quarter as against cash outgo of $12.69 million in the last year period.

Cash and cash equivalents stood at $46.86 million as on Sep. 30, 2016, up 109.30 percent or $24.47 million from $22.39 million on Sep. 30, 2015.

Working capital increases sharply
Kimball International Inc has recorded an increase in the working capital over the last year. It stood at $56.19 million as at Sep. 30, 2016, up 44.57 percent or $17.32 million from $38.86 million on Sep. 30, 2015. Current ratio was at 1.53 as on Sep. 30, 2016, up from 1.38 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 15 days for the quarter from 32 days for the last year period. Days sales outstanding went up to 33 days for the quarter compared with 31 days for the same period last year.

Days inventory outstanding has decreased to 17 days for the quarter compared with 37 days for the previous year period. At the same time, days payable outstanding went down to 34 days for the quarter from 36 for the same period last year.