Kimball International, Inc. Reports Third Quarter 2023 Results

—Fifth Consecutive Quarter of Gross Margin Expansion——Industry-Leading Operational Performance at Pre-Pandemic Levels——34% Growth in Adjusted EBITDA Year-Over-Year—

Kimball International, Inc. (NASDAQ: KBAL) today announced results for the third quarter ended March 31, 2023.

Selected Financial Highlights:

Third Quarter FY 2023

  • Net sales of $166.1 million
  • Gross margin expanded 710 basis points to 37.6%
  • Net income of $5.7 million; Adjusted net income of $11.2 million
  • Diluted EPS of $0.15; Adjusted diluted EPS was $0.30
  • Adjusted EBITDA of $15.4 million, up $3.9 million year-over-year
  • Backlog of $134.5 million

Management Commentary

CEO Kristie Juster commented, The third quarter was our fifth consecutive quarter of substantial year-on-year growth in adjusted EBITDA, driven by significant gross margin expansion, and in line with sales expectations. Kimball International’s market positioning continues to benefit from key competitive advantages, namely the strategic composition and orientation of our product portfolio and our strong presence in key growth geographies. Ancillary products, which address the flexibility and collaboration needs of today’s evolving workplace, accounted for 88% of our trailing twelve-month revenues. Similarly, shipments to secondary markets, which have experienced employment growth and a faster return-to-office, represented 80% of trailing twelve-month shipments.”


Third Quarter Fiscal 2023 Results

Third quarter 2023 consolidated net sales were $166.1 million, compared to $180.9 million in the year ago quarter. Gross margin expanded 710 basis points year-over-year to 37.6%, due to continued price benefits, moderating inflation and cost-out programs. Selling and administrative expenses (S&A) as a percentage of net sales was 34.6%,compared to 26.9% reported in last year’s third quarter. Adjusted S&A was $51.5 million, or 31.0% of net sales, compared to $48.1 million, or 26.6% of net sales, in last year’s third quarter. Net income was $5.7 million, or $0.15 per diluted share, compared to $6.3 million, or $0.17 per diluted share. Adjusted net income was $11.2 million, or $0.30 per diluted share, compared to adjusted net income of $7.6 million, or $0.21 per diluted share in the third quarter of fiscal 2022. Adjusted EBITDA increased year-over-year by 34% to $15.4 million. Adjusted EBITDA margin was 9.3%, up from 6.4% in the third quarter of 2022.

Capital expenditures in the third quarter of fiscal year 2023 were $5.5 million. Kimball International returned $4.2 million to shareholders in the form of dividends and share repurchases in the third quarter of fiscal year 2023.


“I am incredibly proud of what we have built at Kimball International and what we have been able to accomplish thanks to the commitment and dedication of our incredible team. Our set of strategic choices is having a positive impact in the marketplace and making a difference for our customers, partners, and suppliers. We are confident that combining with HNI represents the ideal fit for our family of brands and will provide our employees and stakeholders with the enhanced opportunities afforded by a larger, more diversified industry leader.” Ms. Juster concluded.

In light of the pending acquisition by HNI Corporation, and as is customary during such transactions, Kimball International, Inc. will not host an earnings conference call for its third quarter 2023 results.

The full text of Kimball International’s 3Q23 earnings release, including all tables, may be accessed at

About Kimball International, Inc.

Kimball International is a leading omnichannel commercial furnishings company with deep expertise in the Workplace, Health and Hospitality markets. We combine our bold entrepreneurial spirit, a history of craftsmanship and today’s design-driven thinking alongside a commitment to our culture of caring and lasting connections with our customers, shareholders, employees and communities.

For over 70 years, our brands have seized opportunities to customize solutions into personalized experiences, turning ordinary spaces into meaningful places. Our family of brands includes Kimball, National, Etc., Interwoven, Kimball Hospitality, D’style and Poppin.

Kimball International is based in Jasper, Indiana.