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) May 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 May 3, 2022, Kimball International, Inc. (the "Company") issued an earnings release for the quarter ended March 31, 2022.  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 May 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	Q3 FY22 Earnings Press Release furnished on May 3, 2022
99.2	Q3 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.

2

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: May 3, 2022

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EX-99.1

Exhibit 99.1

KIMBALL INTERNATIONAL, INC. REPORTS THIRD QUARTER 2022 RESULTS

— 30% Sales Increase Drove Significant Profit Growth —

— Order Rates Increased 30% —

— Guiding to Fiscal Fourth Quarter Sales Growth of 25% at the Midpoint —

— Guiding to Further Gross Margin Improvement Led by Volumes and Pricing —

— Pathway to Robust FY23 Revenue and Profit Growth —

JASPER, IN (May 3, 2022) - Kimball International, Inc. (NASDAQ: KBAL) today announced results for the third quarter ended March 31, 2022.

Selected Financial Highlights:

Third Quarter FY 2022

•Net sales of $180.9 million, up 30% year-over-year

•Gross margin expanded 180 basis points to 30.5%

•Net income of $6.3 million; Adjusted net income of $7.6 million

•Diluted EPS of $0.17; Adjusted diluted EPS was $0.21

•Adjusted EBITDA of $11.5 million

•Backlog of $178.5 million

Management Commentary

CEO Kristie Juster commented, “We were very pleased to report strong third quarter results, which reflected robust demand across our product portfolio and our increasing ability to effectively navigate industry-wide headwinds. Sales in our Workplace and Health end markets increased 41%, and accounted for 81% of third quarter sales, driving significantly improved profitability.

“Kimball International continues to compete successfully in the evolving domestic commercial furniture marketplace, as our ancillary product lines and key secondary geographies are well aligned with the new-forming workplace. Ancillary products, which accounted for 86% of our trailing 12 months sales are perfectly suited for employers prioritizing collaboration and engagement in both hybrid and in-person settings. Shipments to smaller metropolitan areas, which have benefited from significant population growth in recent years, represented 77% of our trailing 12 months sales.

“These differentiators continue to result in substantial sales growth in our Workplace and Health markets, supporting our confidence that Kimball International is gaining share, and our Poppin acquisition significantly increased the size of our addressable market. In addition to our strong product line-up, we believe that our performance reflects customer recognition of our operational excellence, demonstrated by reduced delivery times, quality assurance and customization capabilities. While inflationary pressures and supply chain disruptions continued to increase production costs, higher volumes and early pricing benefits together with our ongoing cost-out initiatives enabled us to post another quarter of industry-leading gross margin.”

Overview

Third Quarter Fiscal 2022 Results

Consolidated net sales increased 30% to $180.9 million from the year ago quarter, driven by continued strength in the Workplace and Health end markets and 94% growth at Poppin. Gross margin increased 180 basis points year-over-year to 30.5%, reflecting price increases and ongoing cost savings programs offsetting continued pressure by raw material inflation, higher freight and labor costs. Selling and administrative expenses (S&A) of $48.8 million declined year-over-year as a percentage of total revenue by 550 basis points to 26.9% in the third quarter of 2022. Adjusted S&A was $48.1 million, or 26.6% of net sales, compared to $42.6 million, or 30.8% of net sales, in last year’s third quarter. Net income was $6.3 million, or $0.17 per diluted share, reflecting a significant increase from net loss of $4.5 million or $(0.12) per diluted share in the year ago quarter. Adjusted net income was $7.6 million, or $0.21 per diluted share, up from net loss of $1.0 million, or $(0.03) per diluted share in the third quarter of fiscal 2021. Adjusted EBITDA was $11.5 million compared to $1.9 million in the year ago quarter.

Net Sales by End Market
	Three Months Ended						Nine Months Ended
(Unaudited)	March 31,						March 31,
(Amounts in Millions)	2022		2021		% Change		2022		2021		% Change
Workplace *	$	119.8	$	78.9	52	%	$	336.3	$	261.6	29	%
Health	26.6		24.6		8	%	76.2		72.2		6	%
Hospitality	34.5		35.2		(2	%)	76.4		89.0		(14	%)
Total Net Sales	$	180.9	$	138.7	30	%	$	488.9	$	422.8	16	%

Orders Received by End Market
	Three Months Ended						Nine Months Ended
(Unaudited)	March 31,						March 31,
(Amounts in Millions)	2022		2021		% Change		2022		2021		% Change
Workplace *	$	121.0	$	88.7	36	%	$	377.8	$	255.3	48	%
Health	26.8		26.2		2	%	86.5		75.9		14	%
Hospitality	17.5		12.2		43	%	68.4		70.7		(3	%)
Total Orders	$	165.3	$	127.1	30	%	$	532.7	$	401.9	33	%

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

Summary and Outlook

“Third quarter results and order rates firmly position us to achieve our revenue guidance for 2022 with a significant improvement in profitability. We expect positive demand trends to continue into fiscal 2023, given the relevance of our product designs to collaboration and culture-building. With a portfolio tailored to the growing Workplace and Health end markets, our increased traction in eCommerce and our presence in expanding geographies, Kimball International is positioned for continued long-term growth.

“Additionally, we believe we reached an inflection point at the end of the third quarter and expect fourth quarter benefits from higher volumes and pricing to outpace inflationary pressures, resulting in considerable sequential expansion in gross margin. S&A spending will continue to reflect our investments in future growth but is expected to decline further as a percentage of sales in fiscal 2023,” Ms. Juster concluded.

Fourth Quarter FY 2022 Guidance Ranges
	Low	High
Revenue	$180 million	$185 million
Gross margin	31.5%	32.5%
Adjusted S&A	$52 million	$54 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, a gain on sale of a warehouse,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, COVID vaccine incentive costs, and a gain on sale of a warehouse. 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, a gain on sale of a warehouse, 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:	May 3, 2022
Time:	5:00 PM Eastern Time
Dial-In #:	1 844-602-5643 (International Calls - 1 574-990-3014)
Pass Code:	7999947

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 third quarter ended March 31, 2022 are as follows:

Condensed Consolidated Statements of Income
(Unaudited)	Three Months Ended
(Amounts in Thousands, except per share data)	March 31, 2022				March 31, 2021
Net Sales	$	180,918	100.0	%	$	138,676	100.0	%
Cost of Sales	125,782		69.5	%	98,843		71.3	%
Gross Profit	55,136		30.5	%	39,833		28.7	%
Selling and Administrative Expenses	48,783		26.9	%	44,930		32.4	%
Other General (Income) Expense	(4,523)		(2.5	%)	0		0.0	%
Contingent Earn-Out (Gain) Loss	2,150		1.2	%	0		0.0	%
Restructuring Expense	1,730		1.0	%	2,617		1.9	%
Operating Income (Loss)	6,996		3.9	%	(7,714)		(5.6	%)
Other Income (Expense), net	(1,235)		(0.7	%)	193		0.2	%
Income (Loss) Before Taxes on Income	5,761		3.2	%	(7,521)		(5.4	%)
Provision (Benefit) for Income Taxes	(534)		(0.3	%)	(2,992)		(2.1	%)
Net Income (Loss)	$	6,295	3.5	%	$	(4,529)	(3.3	%)
Earnings (Loss) Per Share of Common Stock:
Basic	$	0.17			$	(0.12)
Diluted	$	0.17			$	(0.12)
Average Number of Total Shares Outstanding:
Basic	36,795				36,860
Diluted	37,061				36,860

(Unaudited)	Nine Months Ended
(Amounts in Thousands, except per share data)	March 31, 2022				March 31, 2021
Net Sales	$	488,931	100.0	%	$	422,817	100.0	%
Cost of Sales	338,254		69.2	%	285,079		67.4	%
Gross Profit	150,677		30.8	%	137,738		32.6	%
Selling and Administrative Expenses	150,863		30.7	%	132,584		31.4	%
Other General (Income) Expense	(4,523)		(0.9	%)	0		0.0	%
Contingent Earn-Out (Gain) Loss	(15,750)		(3.2	%)	0		0.0	%
Restructuring Expense	4,195		0.9	%	8,473		2.0	%
Goodwill Impairment	34,118		7.0	%	0		0.0	%
Operating Income (Loss)	(18,226)		(3.7	%)	(3,319)		(0.8	%)
Other Income (Expense), net	(1,192)		(0.3	%)	2,419		0.6	%
Income (Loss) Before Taxes on Income	(19,418)		(4.0	%)	(900)		(0.2	%)
Provision (Benefit) for Income Taxes	650		0.1	%	(919)		(0.2	%)
Net Income (Loss)	$	(20,068)	(4.1	%)	$	19	0.0	%
Earnings (Loss) Per Share of Common Stock:
Basic	$	(0.55)			$	0.00
Diluted	$	(0.55)			$	0.00
Average Number of Total Shares Outstanding:
Basic	36,788				36,932
Diluted	36,788				37,529

	(Unaudited)
Condensed Consolidated Balance Sheets	March 31, 2022		June 30, 2021
(Amounts in Thousands)
ASSETS
Cash and cash equivalents	$	12,726	$	24,336
Receivables, net	71,495		58,708
Inventories	83,545		54,291
Prepaid expenses and other current assets	30,686		22,012
Property and Equipment, net	92,542		90,623
Right of use operating lease assets	16,922		14,654
Goodwill	47,844		81,962
Other Intangible Assets, net	59,911		64,478
Deferred Tax Assets	15,738		16,368
Other Assets	17,193		17,163
Total Assets	$	448,602	$	444,595
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current maturities of long-term debt	33		30
Accounts payable	70,446		41,537
Customer deposits	27,595		24,438
Current portion of operating lease liability	6,254		6,590
Dividends payable	3,688		3,532
Accrued expenses	37,081		39,115
Long-term debt, less current maturities	58,046		40,079
Long-term operating lease liability	14,025		12,536
Long-term earn-out liability	4,440		20,190
Other	14,994		16,878
Shareholders’ Equity	212,000		239,670
Total Liabilities and Shareholders’ Equity	$	448,602	$	444,595

Condensed Consolidated Statements of Cash Flows	Nine Months Ended
(Unaudited)	March 31,
(Amounts in Thousands)	2022		2021
Net Cash Flow (used for) provided by Operating Activities	$	(6,602)	$	27,330
Net Cash Flow used for Investing Activities	(10,346)		(110,064)
Net Cash Flow provided by Financing Activities	5,008		27,668
Net Decrease in Cash, Cash Equivalents, and Restricted Cash	(11,940)		(55,066)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period	25,727		92,444
Cash, Cash Equivalents, and Restricted Cash at End of Period	$	13,787	$	37,378

Reconciliation of Non-GAAP Financial Measures
(Unaudited)
(Amounts in Thousands, except per share data)
Organic Net Sales
	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2022		2021		2022		2021
Net Sales, as reported	$	180,918	$	138,676	$	488,931	$	422,817
Less: Poppin acquisition net sales(1)	0		0		28,718		2,678
Organic Net Sales	$	180,918	$	138,676	$	460,213	$	420,139

(1) Poppin was acquired on December 9, 2020 thus no adjustment for organic sales was necessary for the three months ended March 31, 2022 and 2021. For the nine month periods ended March 31, 2022 and 2021, organic net sales exclude Poppin acquisition net sales for the fiscal year-to-date periods ended December 31, 2021 and 2020.

Adjusted Gross Profit
	Three Months Ended						Nine Months Ended
	March 31,						March 31,
	2022			2021			2022			2021
Gross Profit, as reported	$	55,136		$	39,833		$	150,677		$	137,738
Add: Pre-tax COVID vaccine incentive	0			0			1,569			0
Add: Pre-tax Acquisition-related Inventory Valuation Adjustment	48			247			253			289
Adjusted Gross Profit	$	55,184		$	40,080		$	152,499		$	138,027
Adjusted Gross Profit %	30.5		%	28.9		%	31.2		%	32.6		%
Adjusted Selling and Administrative Expense
	Three Months Ended						Nine Months Ended
	March 31,						March 31,
	2022			2021			2022			2021
Selling and Administrative Expense, as reported	$	48,783		$	44,930		$	150,863		$	132,584
Less: Pre-tax Expense Adjustment to SERP Liability	887			(428)			300			(2,567)
Less: Pre-tax CEO Transition Costs	0			(141)			0			(423)
Less: Pre-tax Acquisition-related Amortization	(1,610)			(1,671)			(4,830)			(2,066)
Less: Pre-tax Costs of Acquisition	0			(47)			0			(3,435)
Less: Pre-tax COVID Vaccine incentive	0			0			(1,140)			0
Adjusted Selling and Administrative Expense	$	48,060		$	42,643		$	145,193		$	124,093
Adjusted Selling and Administrative Expense %	26.6		%	30.8		%	29.7		%	29.3		%

Adjusted Operating Income (Loss)
	Three Months Ended						Nine Months Ended
	March 31,						March 31,
	2022			2021			2022			2021
Operating Income (Loss), as reported	$	6,996		$	(7,714)		$	(18,226)		$	(3,319)
Add: Pre-tax Restructuring Expense	1,730			2,617			4,195			8,473
Add: Pre-tax Goodwill Impairment	0			0			34,118			0
Add: Pre-tax Other General (Income) Expense(2)	(4,523)			0			(4,523)			0
Add: Pre-tax Expense Adjustment to SERP Liability	(887)			428			(300)			2,567
Add: Pre-tax CEO Transition Costs	0			141			0			423
Add: Pre-tax Acquisition-related Amortization	1,610			1,671			4,830			2,066
Add: Pre-tax Acquisition-related Inventory Valuation Adjustment	48			247			253			289
Add: Pre-tax Costs of Acquisition	0			47			0			3,435
Add: Pre-tax Contingent Earn-Out (Gain) Loss	2,150			0			(15,750)			0
Add: Pre-tax COVID vaccine incentive	0			0			2,709			0
Adjusted Operating Income (Loss)	$	7,124		$	(2,563)		$	7,306		$	13,934
Adjusted Operating Income (Loss) %	3.9		%	(1.8)		%	1.5		%	3.3		%

Adjusted Net Income (Loss)
	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2022		2021		2022		2021
Net Income (Loss), as reported	$	6,295	$	(4,529)	$	(20,068)	$	19
Pre-tax Restructuring Expense	1,730		2,617		4,195		8,473
Tax on Restructuring Expense	(445)		(673)		(1,079)		(2,181)
Add: After-tax Restructuring Expense	1,285		1,944		3,116		6,292
Pre-tax Goodwill Impairment	0		0		34,118		0
Tax on Goodwill Impairment	0		0		0		0
Add: After-tax Goodwill Impairment	0		0		34,118		0
Pre-tax Other General (Income) Expense(2)	(4,523)		0		(4,523)		0
Tax on Other General (Income) Expense	1,164		0		1,164		0
Add: After-tax Other General (Income) Expense	(3,359)		0		(3,359)		0
Pre-tax CEO Transition Costs	0		141		0		423
Tax on CEO Transition Costs	0		(36)		0		(108)
Add: After-tax CEO Transition Costs	0		105		0		315
Pre-tax Acquisition-related Amortization	1,610		1,671		4,830		2,066
Tax on Acquisition-related Amortization	(414)		(430)		(1,243)		(532)
Add: After-tax Acquisition-related Amortization	1,196		1,241		3,587		1,534
Pre-tax Acquisition-related Inventory Valuation Adjustment	48		247		253		289
Tax on Acquisition-related Inventory Valuation Adjustment	(12)		(64)		(65)		(75)
Add: After-tax Acquisition-related Inventory Adjustment	36		183		188		214
Pre-tax Costs of Acquisition	0		47		0		3,435
Tax on Costs of Acquisition	0		(12)		0		(884)
Add: After-tax Costs of Acquisition	0		35		0		2,551
Pre-tax Contingent Earn-Out (Gain) Loss	2,150		0		(15,750)		0
Tax on Contingent Earn-Out (Gain) Loss	0		0		0		0
Add: After-tax Contingent Earn-Out (Gain) Loss	2,150		0		(15,750)		0
Pre-tax COVID Vaccine Incentive	0		0		2,709		0
Tax on COVID Vaccine Incentive	0		0		(697)		0
Add: After-tax COVID Vaccine Incentive	0		0		2,012		0
Adjusted Net Income (Loss)	$	7,603	$	(1,021)	$	3,844	$	10,925

Adjusted Diluted Earnings (Loss) Per Share
	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2022		2021		2022		2021
Diluted Earnings (Loss) Per Share, as reported	$	0.17	$	(0.12)	$	(0.55)	$	0.00
Add: After-tax Restructuring Expense	0.04		0.05		0.09		0.17
Add: After-tax CEO Transition Costs	0.00		0.00		0.00		0.01
Add: After-tax Goodwill Impairment	0.00		0.00		0.93		0.00
Add: After-tax Other General (Income) Expense(2)	(0.09)		0.00		(0.09)		0.00
Add: After-tax Acquisition-related Amortization	0.03		0.03		0.10		0.04
Add: After-tax Acquisition-related Inventory Valuation Adjustment	0.00		0.01		0.01		0.01
Add: After-tax Costs of Acquisition	0.00		0.00		0.00		0.07
Add: After-tax Contingent Earn-Out (Gain) Loss	0.06		0.00		(0.43)		0.00
Add: After-tax COVID Vaccine Incentive	0.00		0.00		0.05		0.00
Adjusted Diluted Earnings (Loss) Per Share	$	0.21	$	(0.03)	$	0.11	$	0.30

Adjusted EBITDA
	Three Months Ended						Nine Months Ended
	March 31,						March 31,
	2022			2021			2022			2021
Net Income (Loss)	$	6,295		$	(4,529)		$	(20,068)		$	19
Provision (Benefit) for Income Taxes	(534)			(2,992)			650			(919)
Income (Loss) Before Taxes on Income	5,761			(7,521)			(19,418)			(900)
Interest Expense	390			177			922			263
Interest Income	(25)			(59)			(77)			(248)
Depreciation	3,635			3,708			10,820			10,836
Amortization	2,358			2,510			7,212			4,212
Pre-tax Restructuring Expense	1,730			2,617			4,195			8,473
Pre-tax Goodwill Impairment	0			0			34,118			0
Pre-tax Other General (Income) Expense(2)	(4,523)			0			(4,523)			0
Pre-tax CEO Transition Costs	0			141			0			423
Pre-tax Acquisition-related Inventory Valuation Adjustment	48			247			253			289
Pre-tax Costs of Acquisition	0			47			0			3,435
Pre-tax Contingent Earn-Out (Gain) Loss	2,150			0			(15,750)			0
Pre-tax COVID Vaccine Incentive	0			0			2,709			0
Adjusted EBITDA	$	11,524		$	1,867		$	20,461		$	26,783
Adjusted EBITDA %	6.4		%	1.3		%	4.2		%	6.3		%

(2) Third quarter fiscal year 2022 Other General (Income) Expense consists of a gain realized on the sale of a warehouse totaling $4.5 million on a pre-tax basis and $3.4 million on an after-tax basis.

Supplementary Information
Components of Other Income, net	Three Months Ended				Nine Months Ended
(Unaudited)	March 31,				March 31,
(Amounts in Thousands)	2022		2021		2022		2021
Interest Income	$	25	$	59	$	77	$	248
Interest Expense	(390)		(177)		(922)		(263)
Gain (Loss) on Supplemental Employee Retirement Plan Investments	(887)		428		(300)		2,567
Other Non-Operating Income (Expense)	17		(117)		(47)		(133)
Other Income (Expense), net	$	(1,235)	$	193	$	(1,192)	$	2,419

EX-99.2

Q3 FY’22 Quarterly Earnings & Strategic Update May 3, 2022 Exhibit 99.2

Safe Harbor Statement 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 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.

 Fourth Consecutive Quarter of Double-Digit Order Growth in Workplace and Health End Markets  Fully Converted Strong Demand and Solid Backlogs into Significant Revenue Growth and Meaningful Profitability  41% Increase in Workplace and Health Sales Demonstrates Relevance of Portfolio and Ability to Execute  Success in Managing through Supply Chain Disruptions and Labor Issues Led to Shorter Lead Times  Resulting Industry-Leading Margins Reinforce Confidence in Financial Performance Going Forward Key Takeaways Fight Club by Kimball, Toss by National, Xanthe by Etc., Marnia by National Whittaker by Kimball, Marnia by National

 Workplace sales increased 52% year-over- year, with orders up 36%  Broad-based recovery of day-to-day business as proof point of continued consistency  Poppin sales increased 94% year-over-year, with orders up 64% year-over-year  Improved inventory and effective lead generation increased new customer acquisition to 28% of total Poppin sales  Poppin Pro continues to exceed expectations at over 15% of total sales Workplace Meredith by Poppin, QT Lounge by Poppin, Take Note by Poppin Whittaker by Kimball, Hobsen by National, Romilda by Etc.

Expertise in Ancillary Products & Secondary Geographies Major SecondarySystems Ancillary 86% 77% ANCILLARY PRODUCTS SECONDARY GEOGRAPHIES The office is evolving into a place to foster collaboration and culture development as companies return to hybrid or fully in-person settings Ancillary products provide the flexibility and aesthetics that employers are looking for in this post-pandemic environment Secondary geographies experiencing a faster return to office We have a strong, long-time presence, established relationships, and noticeable momentum in these key markets

Health  Net sales increased 8% year-over-year, with orders up 2%  Many of our territories experiencing significant increases in sales volumes  Secular trends and health space innovations underscore the long-term growth potential for this market  New product introductions represent 23% of our Q3 FY22 sales  Fastest growing territories are leveraging the power of combined brand portfolio Greer Recliner by Interwoven, Rolli Stool by Interwoven, KORE by Kimball Embra by Interwoven, Poppin Pod by Poppin, Joelle Ottomans by Kimball

Quarterly Sales by Market1 Year-over-year Quarter Comparison Q3 ’22 vs. Q3 ’21 (in millions) 7 1 Unaudited. 2 Workplace end market includes commercial, educational, government and financial verticals and eBusiness $78.9 $119.8 Net Sales Q3 FY21 Q3 FY22 Workplace2 Health Hospitality Kimball Int’l $24.6 $26.6 Net Sales Q3 FY21 Q3 FY22 $35.2 $34.5 Net Sales Q3 FY21 Q3 FY22 $138.7 $180.9 Net Sales Q3 FY21 Q3 FY22 +52% +8% -2% +30%

Q3 FY ’22 Financial Highlights1 30.5% ADJ. GROSS MARGIN2 $48.1M ADJ. S&A EXPENSE2 $7.6M ADJ. NET INCOME2 $0.21 ADJ. EPS2 $180.9M REVENUE $11.5M ADJ. EBITDA2 1 Unaudited. 2 Non-GAAP Financial Measure. See Appendix for Non-GAAP reconciliations. $48.8M S&A EXPENSE $6.3M NET INCOME $0.17 EPS

$127.1 $129.6 $165.3 $178.5 Orders Backlog Q3 FY21 Q3 FY22 Backlog and Quarterly Orders by Market1 Year-over-year Quarter Comparison Q3 ’22 vs. Q3 ’21 (in millions) 9 1 Unaudited. 2 Workplace end market includes commercial, educational, government and financial verticals and eBusiness $88.7 $121.0 Orders Q3 FY21 Q3 FY22 Workplace2 Health Hospitality Kimball Int’l $26.2 $26.8 Orders Q3 FY21 Q3 FY22 $12.2 $17.5 Orders Q3 FY21 Q3 FY22 +36% +2% +43% +30% +38%

Q3 FY ’22 Liquidity and Capital Allocation $78.2M CASH, CASH EQUIVALENTS, PLUS THE UNUSED AMOUNT OF OUR CREDIT FACILITY $(6.6M) CASH USED FOR OPERATIONS $4.3M CAPEX $3.3M DIVIDENDS Xsede desk, Waveworks storage by Kimball, Whirl task by National Boyd Lounge (Kimball), Cohen Table (Etc.), Atlerna Storage (Interwoven)

Q4 FY ’22 Guidance $180M - $185M REVENUE 1 Unaudited. 2 Non-GAAP Financial Measure. See Appendix for Non-GAAP reconciliations. 31.5% - 32.5% GROSS MARGIN $52M - $54M ADJUSTED S&A EXPENSE

 Inflection point realization enables us to report and expect continued significant share gain and profitable growth  Strong backlog, pricing actions, and ability to execute set up revenue and margin expansion in Q4 of FY22 and into FY23  Outsized Poppin demand dynamics delivering industry-leading growth profile  Focus on Workplace and Health markets, ancillary products, secondary geographies, and confidence in scaling Poppin provide clear path to continued revenue and profit growth Looking Ahead Whittaker Lounge by Kimball, Frill Tables by David Edward, Idara Chair & Whimsy Ottoman by National, Xanthe Credenza by Etc.

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

Non-GAAP Reconciliation (Unaudited) APPENDIX

Non-GAAP Reconciliation (Unaudited) (cont.) APPENDIX 1 Third quarter fiscal year 2022 Other General (Income) Expense consists of a gain realized on the sale of a warehouse totaling $4.5 million on a pre-tax basis and $3.4 million on an after-tax basis, or $0.09 per diluted share.

Non-GAAP Reconciliation (Unaudited) (cont.) APPENDIX 1 Third quarter fiscal year 2022 Other General (Income) Expense consists of a gain realized on the sale of a warehouse totaling $4.5 million on a pre-tax basis and $3.4 million on an after-tax basis, or $0.09 per diluted share.

XML

Cover	May 03, 2022
Document Information [Line Items]
Document Type	8-K
Document Period End Date	May 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