Revenue during the quarter grew 3.70 percent to $169.89 million from $163.82 million in the previous year period. Gross margin for the quarter expanded 30 basis points over the previous year period to 32.82 percent. Total expenses were 92.33 percent of quarterly revenues, down from 93.88 percent for the same period last year. This has led to an improvement of 155 basis points in operating margin to 7.67 percent.

Operating income for the quarter was $13.03 million, compared with $10.02 million in the previous year period.

However, the adjusted operating income for the quarter stood at $13.03 million compared to $12.03 million in the prior year period. At the same time, adjusted operating margin improved 33 basis points in the quarter to 7.67 percent from 7.34 percent in the last year period.

Bob Schneider, chairman and chief executive officer, stated, "The employees of Kimball International once again delivered strong results this quarter with 34% growth in net income, or 13% growth excluding restructuring, a significant $10.2 million increase in operating cash flows, and return on capital of 21.1% that is among the best in the industry. A significant part of the improvement is associated with the work the last couple years in consolidating our metal fabrication production from Idaho into facilities in Indiana and the sale last August of the Idaho facility. With all of that completed, this quarter is our first quarter with no restructuring charges since the date of the spin-off. We look forward to now having all our resources directed to faster growth and continuous improvement initiatives."

The company has spent $14.18 million cash to meet investing activities during the first six months as against cash outgo of $8.99 million in the last year period.

The company has spent $12.03 million cash to carry out financing activities during the first six months as against cash outgo of $14.83 million in the last year period.

Cash and cash equivalents stood at $53.47 million as on Dec. 31, 2016, up 104.93 percent or $27.38 million from $26.09 million on Dec. 31, 2015.

Working capital increases sharply
Kimball International, Inc. has recorded an increase in the working capital over the last year. It stood at $62.45 million as at Dec. 31, 2016, up 38.43 percent or $17.34 million from $45.11 million on Dec. 31, 2015. Current ratio was at 1.58 as on Dec. 31, 2016, up from 1.47 on Dec. 31, 2015.

Cash conversion cycle (CCC) has decreased to 10 days for the quarter from 34 days for the last year period. Days sales outstanding went down to 27 days for the quarter compared with 28 days for the same period last year.

Days inventory outstanding has decreased to 17 days for the quarter compared with 39 days for the previous year period. At the same time, days payable outstanding was almost stable at 33 days for the quarter, when compared with the previous year period.