8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) February 3, 2022

KIMBALL INTERNATIONAL, INC.

________________________________________________________________________________________________________

(Exact name of registrant as specified in its charter)

Indiana	0-3279	35-0514506
(State or other jurisdiction of	(Commission File	(IRS Employer Identification No.)
incorporation)	Number)

1600 Royal Street, Jasper, Indiana	47546-2256
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number, including area code  (812) 482-1600

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each Class	Trading Symbol(s)	Name of each exchange on which registered
Class B Common Stock, par value $0.05 per share	KBAL	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

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Item 2.02 Results of Operations and Financial Condition

On February 3, 2022, Kimball International, Inc. (the "Company") issued an earnings release for the quarter ended December 31, 2021.  The earnings release is attached as Exhibit 99.1.

Item 7.01 Regulation FD Disclosure

Attached hereto as Exhibit 99.2 is an investor presentation that supplements the information to be discussed on the Kimball International, Inc. earnings call to be held on February 3, 2022 at 5:00 p.m. Eastern Time. The presentation attached as Exhibit 99.2 is incorporated into this Item 7.01 by reference.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

Exhibit
Number	Description
99.1	Q2 FY22 Earnings Press Release furnished on February 3, 2022
99.2	Q2 FY22 Quarterly Earnings and Strategic Update
104	Cover Page interactive data file (embedded within the Inline XBRL document)

The information in this Current Report on Form 8-K set forth in Item 2.02, Item 7.01, and Exhibits 99.1 and 99.2, is being furnished in accordance with the provisions of General Instruction B.2 of Form 8-K and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. The information contained in this Current Report on Form 8-K, including Exhibits 99.1 and 99.2, that is being furnished under Item 2.02 and Item 7.01 shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, except as shall be expressly set forth by specific reference in such filing.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	KIMBALL INTERNATIONAL, INC.
By:	/s/ Timothy J. Wolfe
	TIMOTHY J. WOLFE Chief Financial Officer

Date: February 3, 2022

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EX-99.1

Exhibit 99.1

KIMBALL INTERNATIONAL, INC. REPORTS SECOND QUARTER 2022 RESULTS

— Strong Demand Drove 11% Revenue Growth; Revenue from Workplace and Health Up 18% —

— Adjusted Gross Margin Was 31.8%, a 40-Basis Point Sequential Expansion —

— Order Rates Up 28%, and Up 35% for Workplace and Health End Markets —

— Third Consecutive Quarter of Consistent Double-Digit Workplace and Health Order Growth —

— Reaffirms Full Fiscal Year 2022 Guidance —

JASPER, IN (February 3, 2022) - Kimball International, Inc. (NASDAQ: KBAL) today announced results for the second quarter ended December 31, 2021.

Selected Financial Highlights:

Second Quarter FY 2022

•Net sales of $151.4 million

•Gross margin of 30.7%; Adjusted gross margin of 31.8%

•Selling and administrative expenses (S&A) of $51.9 million; Adjusted S&A of $48.5 million

•Net loss of $21.3 million; Adjusted net loss of $5.7 million

•Diluted EPS of $(0.58); Adjusted diluted EPS was $(0.16)

•Adjusted EBITDA of $4.0 million

•Backlog of $196.9 million

Management Commentary

CEO Kristie Juster commented, “Demand for Kimball International products remained strong in the second quarter, driving double-digit, year-on-year revenue growth. Our Workplace and Health end markets accounted for 89% of second quarter revenues and posted combined revenue growth of 18%. Order rates continued to be robust, driving record backlog levels, which support our expectations for strong second half performance and underpin our confidence in our full year guidance.

“Revenue and order growth was broad-based across most of our key Workplace and Health verticals. Ancillary products that are the cornerstones of the new-forming collaboration and culture-focused workplace environment, accounted for 85% of second quarter sales. Shipments to smaller metropolitan areas that are primary markets for our products, represented 81% of second quarter sales. We did, however, experience continued supply chain disruption and inventory availability issues that affected Poppin’s in stock business model. These factors particularly impacted sales at Poppin, causing a pause in the positive sequential momentum in sales, which we expect to resume in the second half of this fiscal year.

“Our industry continues to experience supply chain and labor issues that have increased costs and constrained our ability to produce and ship. Despite these issues, we were able to deliver an adjusted gross margin that improved 40 bps sequentially. We expect improving operating conditions and additional price increases on orders booked in calendar 2021 to result in expanded gross and EBITDA margins as we convert strong demand into greater increases in revenue and profitability.”

Overview

Second Quarter Fiscal 2022 Results

Consolidated net sales increased 11% to $151.4 million from the year ago quarter led by continued strength in the Workplace and Health verticals and the addition of the Poppin business. Adjusted gross margin increased 40 basis points sequentially to 31.8% while declining from 33.5% in the second quarter of fiscal 2021, and continued to be pressured by raw material inflation and higher freight and labor costs, partially offset by price increases and ongoing cost saving programs. Adjusted selling and administrative expenses (S&A) of $48.5 million, or 32.0% of net sales, declined $0.1 million sequentially while increasing from $40.7 million in last year’s second quarter. Net loss was $21.3 million, or $0.58 per diluted share, inclusive of a $34.1 million non-cash goodwill impairment charge associated with the Poppin acquisition and attributable primarily to the near-term impact of the COVID-19 pandemic. This goodwill impairment reflects our revised assumptions about the near-term operating performance, however, we still believe in the value of both Poppin’s core business model as well as our PoppinPro distribution channel. The impact of these charges was offset partially by a non-cash contingent earn-out benefit of $22.5 million. Adjusted net

loss was $5.7 million, or $0.16 per diluted share. Adjusted EBITDA was $4.0 million compared to $9.1 million in the year ago quarter.

Net Sales by End Market
	Three Months Ended						Six Months Ended
(Unaudited)	December 31,						December 31,
(Amounts in Millions)	2021		2020		% Change		2021		2020		% Change
Workplace *	$	106.1	$	87.4	21	%	$	213.2	$	182.7	17	%
Health	28.5		27.0		6	%	53.1		47.6		12	%
Hospitality	16.8		21.8		(23	%)	41.7		53.8		(22	%)
Total Net Sales	$	151.4	$	136.2	11	%	$	308.0	$	284.1	8	%

Orders Received by End Market
	Three Months Ended						Six Months Ended
(Unaudited)	December 31,						December 31,
(Amounts in Millions)	2021		2020		% Change		2021		2020		% Change
Workplace *	$	123.8	$	87.1	42	%	$	239.0	$	166.6	43	%
Health	30.9		27.4		13	%	60.5		49.7		22	%
Hospitality	17.9		20.4		(12	%)	50.9		58.5		(13	%)
Total Orders	$	172.6	$	134.9	28	%	$	350.4	$	274.8	28	%

* Workplace end market includes education, government, commercial, and financial vertical markets and eBusiness

Summary and Outlook

“We are pleased with the strong year-to-date demand we have experienced across our product portfolio, geographies, and vertical markets, which underscores the relevance of Kimball International’s innovative product designs that provide the flexibility and adaptability needed in today’s workplace.

“Consistently strong order rates in our Workplace and Health markets have resulted in a record backlog heading into the second half of fiscal 2022. Thus, we reaffirm our fiscal 2022 guidance for 15-20% revenue growth with adjusted gross margin in the third quarter similar to first half levels, followed by greater expansion in the fourth quarter as we benefit from higher volumes, price increases and ongoing efficiency projects. As previously noted, we expect to continue to invest in growth during fiscal 2022 by opening and scaling new Poppin showrooms in Miami, Austin and Atlanta, maintaining our commitment and focus around new product initiatives such as EverySpace, and continuing investment in our selling organization.”

Third Quarter FY 2022 Guidance Ranges
	Low	High
Revenue growth (year-over-year)	23%	25%
Adjusted gross margin	Approx. 31%
Adjusted S&A	$50 million	$52 million

Non-GAAP Financial Measures

This press release contains non-GAAP financial measures. A non-GAAP financial measure is a numerical measure of a company’s financial performance that excludes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with Generally Accepted Accounting Principles (“GAAP”) in the United States in the statements of income, statements of comprehensive income, balance sheets, or statements of

cash flows of the Company. The non-GAAP financial measures used within this release are (1) organic net sales, defined as net sales excluding acquisition-related net sales; (2) adjusted gross profit; (3) adjusted selling and administrative expense; (4) adjusted EBITDA; (5) adjusted operating income; (6) adjusted net income; and (7) adjusted diluted earnings per share. Adjusted operating income, adjusted net income, and adjusted diluted earnings per share each exclude restructuring expense, CEO transition costs, acquisition-related amortization and inventory valuation adjustments, goodwill impairment, contingent earn-out adjustments related to the acquisition, COVID vaccine incentive costs, costs of acquisition, and statutory income tax impacts for taxable after-tax measures, from the GAAP income measure. Adjusted gross profit excludes acquisition-related inventory adjustments and COVID vaccine incentive costs from the GAAP income measure. Adjusted selling and administrative expense excludes market value adjustments related to the SERP liability, CEO transition costs, acquisition-related amortization, costs of acquisition, and COVID vaccine incentive costs from the GAAP income measure. Additionally, adjusted operating income excludes market value adjustments related to the SERP liability. Adjusted EBITDA is defined as earnings before interest, income taxes, depreciation expense, amortization expense, restructuring expense, CEO transition costs, acquisition-related inventory valuation adjustments, costs of acquisition, goodwill impairment, contingent earn-out adjustments related to the acquisition, and COVID vaccine incentive costs. A reconciliation of the reported GAAP numbers to the non-GAAP financial measures is included in the Reconciliation of Non-GAAP Financial Measures table below. Management believes that Adjusted EBITDA and other metrics excluding restructuring expense, CEO transition expenses, market value adjustments related to the SERP liability, COVID vaccine incentive costs and acquisition-related adjustments are useful measurements to assist investors in comparing our performance over various reporting periods on a consistent basis by removing from operating results the impact of items that do not reflect our core operating performance.

The orders received metric is a key performance indicator used to evaluate general sales trends and develop future operating plans. Orders received represent firm orders placed by our customers during the current quarter which are expected to be recognized as revenue during current or future quarters. The orders received metric is not intended to be presented as an alternative measure of revenue recognized in accordance with GAAP.

Forward-Looking Statements

This document may contain certain forward-looking statements about the Company, such as discussions of Company’s pricing trends, liquidity, new business results, expansion plans, anticipated expenses and planned schedules. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. These statements generally can be identified by the use of words or phrases, including, but not limited to, “intend,” “anticipate,” “believe,” “estimate,” “project,” “target,” “plan,” “expect,” “setting up,” “beginning to,” “will,” “should,” “would,” “resume” or similar statements. We caution that forward-looking statements are subject to known and unknown risks and uncertainties that may cause the Company’s actual future results and performance to differ materially from expected results including, but not limited to, the possibility that any of the anticipated benefits of the transaction between the Company and Poppin will not be realized or will not be realized within the expected time period; the risk that integration of the operations of Poppin with the Company will be materially delayed or will be more costly or difficult than expected; the effect of the announcement of the Poppin transaction, including on customer relationships and operating results; the risk that any projections or guidance by the Company, including revenues, margins, earnings, or any other financial results are not realized; adverse changes in global economic conditions; successful execution of Phase 2 of the Company restructuring plan; the impact on the Company of changes in tariffs; increased global competition; significant reduction in customer order patterns; loss of key suppliers; loss of or significant volume reductions from key contract customers; financial stability of key customers and suppliers; relationships with strategic customers and product distributors; availability or cost of raw materials, components and freight; changes in the regulatory environment; global health concerns (including the impact of the COVID-19 outbreak); or similar unforeseen events. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of the Company are contained in the Company’s Form 10-K filing for the fiscal year ended June 30, 2021 and other filings with the Securities and Exchange Commission.

Conference Call / Webcast
Date:	February 3, 2022
Time:	5:00 PM Eastern Time
Dial-In #:	1 800-773-2954 (International Calls - 1 847-413-3731)
Pass Code:	50245049

A webcast of the live conference call may be accessed by visiting Kimball International’s Investor Relations website at www.ir.kimballinternational.com.

For those unable to participate in the live webcast, the call will be archived at www.ir.kimballinternational.com within two hours of the conclusion of the live call.

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.

www.kimballinternational.com

Financial highlights for the second quarter ended December 31, 2021 are as follows:

Condensed Consolidated Statements of Income
(Unaudited)	Three Months Ended
(Amounts in Thousands, except per share data)	December 31, 2021				December 31, 2020
Net Sales	$	151,403	100.0	%	$	136,197	100.0	%
Cost of Sales	104,959		69.3	%	90,648		66.6	%
Gross Profit	46,444		30.7	%	45,549		33.4	%
Selling and Administrative Expenses	51,921		34.3	%	45,967		33.7	%
Contingent Earn-Out (Gain) Loss	(22,510)		(14.8	%)	0		0.0	%
Restructuring Expense	1,010		0.7	%	1,616		1.2	%
Goodwill Impairment	34,118		22.5	%	0		0.0	%
Operating Income (Loss)	(18,095)		(12.0	%)	(2,034)		(1.5	%)
Other Income, net	477		0.4	%	1,409		1.0	%
Income (Loss) Before Taxes on Income	(17,618)		(11.6	%)	(625)		(0.5	%)
Provision (Benefit) for Income Taxes	3,696		2.5	%	213		0.1	%
Net Income (Loss)	$	(21,314)	(14.1	%)	$	(838)	(0.6	%)
Earnings (Loss) Per Share of Common Stock:
Basic	$	(0.58)			$	(0.02)
Diluted	$	(0.58)			$	(0.02)
Average Number of Total Shares Outstanding:
Basic	36,749				36,962
Diluted	36,749				36,962

(Unaudited)	Six Months Ended
(Amounts in Thousands, except per share data)	December 31, 2021				December 31, 2020
Net Sales	$	308,013	100.0	%	$	284,141	100.0	%
Cost of Sales	212,472		69.0	%	186,236		65.5	%
Gross Profit	95,541		31.0	%	97,905		34.5	%
Selling and Administrative Expenses	102,080		33.1	%	87,654		30.9	%
Contingent Earn-Out (Gain) Loss	(17,900)		(5.8	%)	0		0.0	%
Restructuring Expense	2,465		0.8	%	5,856		2.1	%
Goodwill Impairment	34,118		11.1	%	0		0.0	%
Operating Income (Loss)	(25,222)		(8.2	%)	4,395		1.5	%
Other Income, net	43		0.0	%	2,226		0.8	%
Income (Loss) Before Taxes on Income	(25,179)		(8.2	%)	6,621		2.3	%
Provision (Benefit) for Income Taxes	1,184		0.4	%	2,073		0.7	%
Net Income (Loss)	$	(26,363)	(8.6	%)	$	4,548	1.6	%
Earnings (Loss) Per Share of Common Stock:
Basic	$	(0.72)			$	0.12
Diluted	$	(0.72)			$	0.12
Average Number of Total Shares Outstanding:
Basic	36,785				36,968
Diluted	36,785				37,465

	(Unaudited)
Condensed Consolidated Balance Sheets	December 31, 2021		June 30, 2021
(Amounts in Thousands)
ASSETS
Cash and cash equivalents	$	16,323	$	24,336
Receivables, net	52,802		58,708
Inventories	72,137		54,291
Prepaid expenses and other current assets	23,404		22,012
Property and Equipment, net	91,772		90,623
Right of use operating lease assets	12,611		14,654
Goodwill	47,844		81,962
Other Intangible Assets, net	61,604		64,478
Deferred Tax Assets	16,229		16,368
Other Assets	17,190		17,163
Total Assets	$	411,916	$	444,595
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current maturities of long-term debt	33		30
Accounts payable	57,722		41,537
Customer deposits	36,685		24,438
Current portion of operating lease liability	6,237		6,590
Dividends payable	3,620		3,532
Accrued expenses	31,563		39,115
Long-term debt, less current maturities	40,046		40,079
Long-term operating lease liability	10,720		12,536
Long-term earn-out liability	2,290		20,190
Other	16,336		16,878
Shareholders’ Equity	206,664		239,670
Total Liabilities and Shareholders’ Equity	$	411,916	$	444,595

Condensed Consolidated Statements of Cash Flows	Six Months Ended
(Unaudited)	December 31,
(Amounts in Thousands)	2021		2020
Net Cash Flow provided by Operating Activities	$	12,620	$	24,521
Net Cash Flow used for Investing Activities	(11,313)		(105,774)
Net Cash Flow (used for) provided by Financing Activities	(9,649)		32,456
Net Decrease in Cash, Cash Equivalents, and Restricted Cash	(8,342)		(48,797)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period	25,727		92,444
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	17,385	$	43,647

Reconciliation of Non-GAAP Financial Measures
(Unaudited)
(Amounts in Thousands, except per share data)
Organic Net Sales
	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2021		2020		2021		2020
Net Sales, as reported	$	151,403	$	136,197	$	308,013	$	284,141
Less: Poppin acquisition net sales	13,494		2,678		28,718		2,678
Organic Net Sales	$	137,909	$	133,519	$	279,295	$	281,463

Adjusted Gross Profit
	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2021			2020			2021			2020
Gross Profit, as reported	$	46,444		$	45,549		$	95,541		$	97,905
Add: Pre-tax COVID vaccine incentive	1,569			0			1,569			0
Add: Pre-tax Acquisition-related Inventory Valuation Adjustment	62			42			205			42
Adjusted Gross Profit	$	48,075		$	45,591		$	97,315		$	97,947
Adjusted Gross Profit %	31.8		%	33.5		%	31.6		%	34.5		%
Adjusted Selling and Administrative Expense
	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2021			2020			2021			2020
Selling and Administrative Expense, as reported	$	51,921		$	45,967		$	102,080		$	87,654
Less: Pre-tax Expense Adjustment to SERP Liability	(680)			(1,381)			(587)			(2,139)
Less: Pre-tax CEO Transition Costs	0			(141)			0			(282)
Less: Pre-tax Acquisition-related Amortization	(1,610)			(395)			(3,220)			(395)
Less: Pre-tax Costs of Acquisition	0			(3,388)			0			(3,388)
Less: Pre-tax COVID Vaccine incentive	(1,140)			0			(1,140)			0
Adjusted Selling and Administrative Expense	$	48,491		$	40,662		$	97,133		$	81,450
Adjusted Selling and Administrative Expense %	32.0		%	29.9		%	31.5		%	28.7		%

Adjusted Operating Income (Loss)
	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2021			2020			2021			2020
Operating Income (Loss), as reported	$	(18,095)		$	(2,034)		$	(25,222)		$	4,395
Add: Pre-tax Restructuring Expense	1,010			1,616			2,465			5,856
Add: Pre-tax Goodwill Impairment	34,118			0			34,118			0
Add: Pre-tax Expense Adjustment to SERP Liability	680			1,381			587			2,139
Add: Pre-tax CEO Transition Costs	0			141			0			282
Add: Pre-tax Acquisition-related Amortization	1,610			395			3,220			395
Add: Pre-tax Acquisition-related Inventory Valuation Adjustment	62			42			205			42
Add: Pre-tax Costs of Acquisition	0			3,388			0			3,388
Add: Pre-tax Contingent Earn-Out (Gain) Loss	(22,510)			0			(17,900)			0
Add: Pre-tax COVID vaccine incentive	2,709			0			2,709			0
Adjusted Operating Income (Loss)	$	(416)		$	4,929		$	182		$	16,497
Adjusted Operating Income (Loss) %	(0.3		%)	3.6		%	0.1		%	5.8		%
Adjusted Net Income (Loss)
	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2021			2020			2021			2020
Net Income (Loss), as reported	$	(21,314)		$	(838)		$	(26,363)		$	4,548
Pre-tax Restructuring Expense	1,010			1,616			2,465			5,856
Tax on Restructuring Expense	(259)			(416)			(634)			(1,508)
Add: After-tax Restructuring Expense	751			1,200			1,831			4,348
Pre-tax Goodwill Impairment	34,118			0			34,118			0
Tax on Goodwill Impairment	0			0			0			0
Add: After-tax Goodwill Impairment	34,118			0			34,118			0
Pre-tax CEO Transition Costs	0			141			0			282
Tax on CEO Transition Costs	0			(36)			0			(72)
Add: After-tax CEO Transition Costs	0			105			0			210
Pre-tax Acquisition-related Amortization	1,610			395			3,220			395
Tax on Acquisition-related Amortization	(414)			(102)			(829)			(102)
Add: After-tax Acquisition-related Amortization	1,196			293			2,391			293
Pre-tax Acquisition-related Inventory Valuation Adjustment	62			42			205			42
Tax on Acquisition-related Inventory Valuation Adjustment	(16)			(11)			(53)			(11)
Add: After-tax Acquisition-related Inventory Adjustment	46			31			152			31
Pre-tax Costs of Acquisition	0			3,388			0			3,388
Tax on Costs of Acquisition	0			(872)			0			(872)
Add: After-tax Costs of Acquisition	0			2,516			0			2,516
Pre-tax Contingent Earn-Out (Gain) Loss	(22,510)			0			(17,900)			0
Tax on Contingent Earn-Out (Gain) Loss	0			0			0			0
Add: After-tax Contingent Earn-Out (Gain) Loss	(22,510)			0			(17,900)			0
Pre-tax COVID Vaccine Incentive	2,709			0			2,709			0
Tax on COVID Vaccine Incentive	(697)			0			(697)			0
Add: After-tax COVID Vaccine Incentive	2,012			0			2,012			0
Adjusted Net Income (Loss)	$	(5,701)		$	3,307		$	(3,759)		$	11,946

Adjusted Diluted Earnings (Loss) Per Share
	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2021		2020		2021		2020
Diluted Earnings (Loss) Per Share, as reported	$	(0.58)	$	(0.02)	$	(0.72)	$	0.12
Add: After-tax Restructuring Expense	0.02		0.03		0.05		0.12
Add: After-tax Goodwill Impairment	0.93		0.00		0.93		0.00
Add: After-tax Acquisition-related Amortization	0.03		0.01		0.07		0.01
Add: After-tax Acquisition-related Inventory Valuation Adjustment	0.00		0.00		0.01		0.00
Add: After-tax Costs of Acquisition	0.00		0.07		0.00		0.07
Add: After-tax Contingent Earn-Out (Gain) Loss	(0.61)		0.00		(0.49)		0.00
Add: After-tax COVID Vaccine Incentive	0.05		0.00		0.05		0.00
Adjusted Diluted Earnings (Loss) Per Share	$	(0.16)	$	0.09	$	(0.10)	$	0.32

Adjusted EBITDA
	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2021			2020			2021			2020
Net Income (Loss)	$	(21,314)		$	(838)		$	(26,363)		$	4,548
Provision for Income Taxes	3,696			213			1,184			2,073
Income (Loss) Before Taxes on Income	(17,618)			(625)			(25,179)			6,621
Interest Expense	275			58			532			86
Interest Income	(43)			(87)			(52)			(189)
Depreciation	3,623			3,536			7,185			7,128
Amortization	2,415			1,049			4,854			1,702
Pre-tax Restructuring Expense	1,010			1,616			2,465			5,856
Pre-tax Goodwill Impairment	34,118			0			34,118			0
Pre-tax CEO Transition Costs	0			141			0			282
Pre-tax Acquisition-related Inventory Valuation Adjustment	62			42			205			42
Pre-tax Costs of Acquisition	0			3,388			0			3,388
Pre-tax Contingent Earn-Out (Gain) Loss	(22,510)			0			(17,900)			0
Pre-tax COVID Vaccine Incentive	2,709			0			2,709			0
Adjusted EBITDA	$	4,041		$	9,118		$	8,937		$	24,916
Adjusted EBITDA %	2.7		%	6.7		%	2.9		%	8.8		%

Supplementary Information
Components of Other Income, net	Three Months Ended				Six Months Ended
(Unaudited)	December 31,				December 31,
(Amounts in Thousands)	2021		2020		2021		2020
Interest Income	$	43	$	87	$	52	$	189
Interest Expense	(275)		(58)		(532)		(86)
Gain on Supplemental Employee Retirement Plan Investments	680		1,381		587		2,139
Other Non-Operating Income (Expense)	29		(1)		(64)		(16)
Other Income, net	$	477	$	1,409	$	43	$	2,226

EX-99.2

Q2 FY ‘22 Quarterly Earnings & Strategic Update

This document may contain certain forward-looking statements about the Company, such as discussions of Company’s pricing trends, liquidity, new business results, expansion plans, anticipated expenses and planned schedules. The Company intends such forward- looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. These statements generally can be identified by the use of words or phrases, including, but not limited to, “intend,” “anticipate,” “believe,” “estimate,” “project,” “target,” “plan,” “expect,” “setting up,” “beginning to,” “will,” “should,” “would,” “resume” or similar statements. We caution that forward-looking statements are subject to known and unknown risks and uncertainties that may cause the Company’s actual future results and performance to differ materially from expected results including, but not limited to, the possibility that any of the anticipated benefits of the transaction between the Company and Poppin will not be realized or will not be realized within the expected time period; the risk that integration of the operations of Poppin with the Company will be materially delayed or will be more costly or difficult than expected; the risk that any projections or guidance by the Company, including revenues, margins, earnings, or any other financial results are not realized; a shortage of manufacturing labor and related cost; disruptions in our supply chain and freight channels including impacts on cost and availability; adverse changes in global economic conditions; successful execution of the second phase of the Company’s restructuring plan; increased global competition; significant reduction in customer order patterns; loss of key suppliers; loss of or significant volume reductions from key contract customers; financial stability of key customers and suppliers; relationships with strategic customers and product distributors; availability or cost of raw materials, components and freight; changes in the regulatory environment; global health concerns (including the impact of the COVID-19 outbreak); or similar unforeseen events. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of the Company are contained in the Company’s Form 10-K filing for the fiscal year ended June 30, 2021 and other filings with the Securities and Exchange Commission. Safe Harbor Statement

Third Consecutive Quarter of Double- Digit Order Growth in Workplace and Health End Markets Continued Strength in Secondary Markets - Accounting for ~80% of Sales1 in Q2 FY22 Trusted Expertise in Ancillary Products - Comprising ~85% of Q2 FY22 Sales1 Anticipate Challenging Business Conditions to Improve in 2H of FY22 Key Takeaways 1 Excludes Hospitality and Poppin

Workplace • Workplace sales increased 21% year- over-year, with orders up 42% • Poppin bookings up 106% year-over-year • Poppin Miami showroom fully operational, Austin and Atlanta to follow in Q3

Health • Net sales increased 6% year-over-year, with orders up 13% • Secular trends and health space innovations underscore the long-term growth potential for this market • New product introductions represent 23% of our sales Health

Q2 FY ‘22 Financial Highlights1 $151.4M REVENUE $137.9M ORGANIC REVENUE 2 31.8% ADJUSTED GROSS MARGIN 2 30.7% GROSS MARGIN $51.9M S&A 1 Unaudited. 2 See Appendix for Non-GAAP reconciliations. $48.5M ADJUSTED S&A 2

1 Unaudited. 2 See Appendix for Non-GAAP reconciliations. Q2 FY ‘22 Financial Highlights1 (Continued) $4.0M ADJUSTED EBITDA 2 $(5.7)M ADJUSTED NET LOSS 2 $(21.3)M NET LOSS $(0.58) EPS $(0.16) ADJUSTED EPS 2

Year-over-year Quarter Comparison Q2 ’22 vs. Q2 ’21 (in millions) Workplace end market includes commercial, educational, government and financial verticals and eBusiness 1 Unaudited. $87.4 $87.1 $106.1 $123.8 Net Sales Orders Q2 FY21 Q2 FY22 +21% Workplace $27.0 $27.4 $28.5 $30.9 Net Sales Orders Q2 FY21 Q2 FY22 Health $21.8 $20.4 $16.8 $17.9 Net Sales Orders Q2 FY21 Q2 FY22 Hospitality -23% +42% +6% +13% -12% Quarterly Sales and Orders by Market1

$99.6M CASH, CASH EQUIVALENTS, PLUS THE UNUSED AMOUNT OF OUR CREDIT FACILITY $0.7M CASH PROVIDED BY OPERATIONS $7.7M CAPEX $0.9M SHARE REPURCHASES $3.3M DIVIDENDS 1 Unaudited. Q2 FY ‘22 Liquidity and Capital Allocation1

Revenue growth ~15-20%, back half weighted CAPEX: $25 million, net of disposals Cost savings: $10 million S&A: Above FY 2021 levels Full Year ‘22 Guidance

Revenue Growth: 23% to 25% year-over-year Adj. Gross Margin: Approx. 31% Adj. S&A: $50 million to $52 million Q3 FY ‘22 Guidance

Looking Ahead Record backlog and pricing actions set up margin expansion in 2H of FY22 Expanding strong relationships in secondary markets accounting for ~80% of revenue1 Expertise in ancillary products, aligned with customer demand; ~85% of trailing 12-month revenues1 Line of sight to sustained high activity levels contributing to our broader pipeline Focused on accelerating market share gains and continuing to invest in growth in 2022 1 Excludes Hospitality and Poppin

Our Vision for Impact Environmental, Social and Governance (ESG) Roadmap Kimball International is dedicated to building a more sustainable future and making a difference in our communities through five important focus areas. Environmental Management & Sustainable Products Integrate sustainability into the development of our products and their lifecycle through environmentally responsible business practices, helping our customers achieve their own sustainability objectives Human Capital Management: Talent Development Invest in our employees’ growth & development through leadership development programs, learning opportunities, tuition reimbursement Diversity, Equity, Inclusion & Belonging Promote a work environment in which each employee feels valued and respected through initiatives that foster greater diversity and inclusivity Product Quality and Safety Safeguard the health & safety of our customers, manufacturing employees and the environment through a robust set of systems and procedures Responsible Supply Chain Management Use materials obtained from environmentally and socially responsible sources while partnering with businesses committed to the highest ethical standards

APPENDIX

15 Non-GAAP Reconciliation (Unaudited) A P P E N D I X

16 Non-GAAP Reconciliation (Unaudited) – continued A P P E N D I X

17 Non-GAAP Reconciliation (Unaudited) – continued A P P E N D I X

XML

Cover	Feb. 03, 2022
Document Information [Line Items]
Document Type	8-K
Document Period End Date	Feb. 03, 2022
Entity Registrant Name	KIMBALL INTERNATIONAL, INC.
Entity Incorporation, State or Country Code	IN
Entity File Number	0-3279
Entity Tax Identification Number	35-0514506
Entity Address, Address Line One	1600 Royal Street
Entity Address, City or Town	Jasper
Entity Address, State or Province	IN
City Area Code	812
Local Phone Number	482-1600
Entity Address, Postal Zip Code	47546-2256
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Class B Common Stock, par value $0.05 per share
Trading Symbol	KBAL
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Entity Central Index Key	0000055772
Amendment Flag	false