Exhibit 99.1
Unaudited Pro Forma Financial Information
On January 25, 2007, Kimball International, Inc. (the "Company") completed the disposal of all production equipment at its Juarez, Mexico facility pursuant to the plan to exit the production of wood rear projection ("PTV") cabinets and stands that was reported on a Current Report on Form 8-K filed by the Company on September 13, 2006. The transaction that occurred on January 25, 2007, was the last of a series of transactions related to the aforementioned exit plan.
The consolidated balance sheet as of September 30, 2006 filed in the Company's Form 10-Q on November 2, 2006 presented the assets to be disposed of as assets held for use, as the assets did not yet meet the criteria to classify as held for sale. The following unaudited pro forma consolidated balance sheet reflects the disposal of assets as if such transaction occurred on September 30, 2006. Such pro forma information is based upon the historical balance sheet data of the Company as of that date. The exit of the production of PTV cabinets and stands will be accounted for as discontinued operations in conformity with Statement of Financial Accounting Standards No. 144 "Accounting for the Impairment or Disposal of Long-Lived Assets" for the quarter ended December 31, 2006. As a result of the Company's classification of the business as discontinued operations for the quarter ended December 31, 2006, the unaudited pro forma consolidated statements of income for the three months ended September 30, 2006 and fiscal years ended June 30, 2006, June 30, 2005 and June 30, 2004 are presented to show the disposal of the business as discontinued operations of the Company beginning on July 1, 2003 and was carried forward through September 30, 2006.
The unaudited pro forma consolidated financial information should be read in conjunction with the Company's unaudited condensed consolidated financial statements and notes thereto included in the Company's Quarterly Report on Form 10-Q for the period ended September 30, 2006 and the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2006. The unaudited pro forma information is presented for illustrative purposes only, and is not necessarily indicative of what the Company's financial position or results of operations would have been had the transaction been in effect as of and for the periods presented, nor is such information indicative of the Company's results of operations or financial position for any future period or date.
KIMBALL INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
(Amounts in Thousands, Except for Share Data) | As Reported September 30, 2006 | Pro Forma Adjustments (A) | Pro Forma September 30, 2006 |
| Assets | |||
| Current Assets: | |||
| Cash and cash equivalents | $ 32,750 | $ 620 | $ 33,370 |
| Short-term investments | 135,658 | 135,658 | |
| Receivables | 145,547 | 145,547 | |
| Inventories | 135,570 | 135,570 | |
| Prepaid expenses and other current assets | 31,784 | 31,784 | |
| Assets held for sale | 2,711 | 2,711 | |
| Total current assets | 484,020 | 620 | 484,640 |
| Property and Equipment | 148,832 | (619) | 148,213 |
| Capitalized Software | 24,499 | 24,499 | |
| Goodwill | 3,337 | 3,337 | |
| Other Assets | 30,641 | 30,641 | |
| Total Assets | $691,329 | $ 1 | $691,330 |
| Liabilities and Share Owners' Equity | |||
| Current Liabilities: | |||
| Current maturities of long-term debt | $ 461 | $ 461 | |
| Accounts payable | 172,775 | 172,775 | |
| Borrowings under credit facility | 18,857 | 18,857 | |
| Dividends payable | 6,740 | 6,740 | |
| Accrued expenses | 52,837 | 52,837 | |
| Total current liabilities | 251,670 | 251,670 | |
| Other Liabilities: | |||
| Long-term debt, less current maturities | 955 | 955 | |
| Deferred income taxes and other | 17,325 | 17,325 | |
| Total other liabilities | 18,280 | 18,280 | |
| Share Owners' Equity: | |||
| Common stock-par value $0.05 per share: | |||
| Class A - Shares authorized 49,826,000 Shares issued 14,368,000 | 718 | 718 | |
| Class B - Shares authorized 100,000,000 Shares issued 28,657,000 | 1,433 | 1,433 | |
| Additional paid-in capital | 5,019 | 5,019 | |
| Retained earnings | 484,042 | 1 | 484,043 |
| Accumulated other comprehensive income | 1,733 | 1,733 | |
| Deferred stock-based compensation | -0- | -0- | |
| Less: Treasury stock, at cost: | |||
| Class A - 1,963,000 shares | (29,907) | (29,907) | |
| Class B - 2,706,000 shares | (41,659) | (41,659) | |
| Total Share Owners' Equity | 421,379 | 1 | 421,380 |
| Total Liabilities and Share Owners' Equity | $691,329 | $ 1 | $691,330 |
(A) Reflects assets sold as a result of the exit of production of wood rear projection (PTV) cabinets and stands. These assets were impaired for the period ended September 30, 2006 and accordingly had a book basis equal to fair market value at September 30, 2006, in conformity with Statement of Financial Accounting Standards No. 144 "Accounting for the Impairment or Disposal of Long-Lived Assets". | |||
KIMBALL INTERNATIONAL, INC.
PRO FORMA CONSOLIDATED STATEMENTS OF INCOME
For the three months ended September 30, 2006
(Unaudited)
| (Amounts in Thousands, Except for Per Share Data) | As Reported | Pro Forma Adjustments for Exit of Production of PTV Cabinets and Stands (1) | Pro Forma |
| Net Sales | $314,760 | $ (4,981) | $309,779 |
| Cost of Sales | 250,593 | (5,479) | 245,114 |
| Gross Profit | 64,167 | 498 | 64,665 |
| Selling, General and Administrative Expenses | 56,812 | (644) | 56,168 |
| Restructuring Expense | 3,295 | (2,961) | 334 |
| Operating Income | 4,060 | 4,103 | 8,163 |
| Other Income (Expense): | |||
| Interest income | 1,555 | 1,555 | |
| Interest expense | (250) | (250) | |
| Non-operating income | 1,552 | (130) | 1,422 |
| Non-operating expense | (200) | 5 | (195) |
| Other income, net | 2,657 | (125) | 2,532 |
| Income from Continuing Operations Before Taxes on Income | 6,717 | 3,978 | 10,695 |
| Provision for Income Taxes (2) | 3,046 | 1,366 | 4,412 |
| Income from Continuing Operations | $ 3,671 | $ 2,612 | $ 6,283 |
| Earnings Per Share of Common Stock: | |||
| Basic Earnings Per Share from Continuing Operations: | |||
| Class A | $0.10 | $0.16 | |
| Class B | $0.10 | $0.16 | |
| Diluted Earnings Per Share from Continuing Operations: | |||
| Class A | $0.09 | $0.16 | |
| Class B | $0.10 | $0.16 | |
| Average Number of Shares Outstanding: | |||
| Basic: | |||
| Class A | 12,395 | 12,395 | |
| Class B | 25,892 | 25,892 | |
| Totals | 38,287 | 38,287 | |
| Diluted: | |||
| Class A | 12,715 | 12,715 | |
| Class B | 26,200 | 26,200 | |
| Totals | 38,915 | 38,915 | |
| See accompanying Notes to Pro Forma Consolidated Statements of Income | |||
KIMBALL INTERNATIONAL, INC.
PRO FORMA CONSOLIDATED STATEMENTS OF INCOME
Fiscal Year Ended June 30, 2006
(Unaudited)
| (Amounts in Thousands, Except for Per Share Data) | As Reported | Pro Forma Adjustments for Exit of Production of PTV Cabinets and Stands (1) | Pro Forma |
| Net Sales | $1,142,581 | $ (33,032) | $1,109,549 |
| Cost of Sales | 896,391 | (35,733) | 860,658 |
| Gross Profit | 246,190 | 2,701 | 248,891 |
| Selling, General and Administrative Expenses | 219,438 | (3,581) | 215,857 |
| Restructuring Expense | 9,635 | (4,980) | 4,655 |
| Operating Income | 17,117 | 11,262 | 28,379 |
| Other Income (Expense): | |||
| Interest income | 4,592 | 4,592 | |
| Interest expense | (249) | (249) | |
| Non-operating income | 7,555 | (157) | 7,398 |
| Non-operating expense | (1,103) | 180 | (923) |
| Other income, net | 10,795 | 23 | 10,818 |
| Income from Continuing Operations Before Taxes on Income | 27,912 | 11,285 | 39,197 |
| Provision for Income Taxes (2) | 5,733 | 4,851 | 10,584 |
| Income from Continuing Operations | $ 22,179 | $ 6,434 | $ 28,613 |
| Earnings Per Share of Common Stock: | |||
| Basic Earnings Per Share from Continuing Operations: | |||
| Class A | $0.57 | $0.74 | |
| Class B | $0.58 | $0.75 | |
| Diluted Earnings Per Share from Continuing Operations: | |||
| Class A | $0.57 | $0.74 | |
| Class B | $0.58 | $0.75 | |
| Average Number of Shares Outstanding: | |||
| Basic: | |||
| Class A | 13,195 | 13,195 | |
| Class B | 25,002 | 25,002 | |
| Totals | 38,197 | 38,197 | |
| Diluted: | |||
| Class A | 13,360 | 13,360 | |
| Class B | 25,024 | 25,024 | |
| Totals | 38,384 | 38,384 | |
| See accompanying Notes to Pro Forma Consolidated Statements of Income | |||
KIMBALL INTERNATIONAL, INC.
PRO FORMA CONSOLIDATED STATEMENTS OF INCOME
Fiscal Year Ended June 30, 2005
(Unaudited)
| (Amounts in Thousands, Except for Per Share Data) | As Reported | Pro Forma Adjustments for Exit of Production of PTV Cabinets and Stands (1) | Pro Forma |
| Net Sales | $1,053,147 | $ (48,761) | $1,004,386 |
| Cost of Sales | 823,305 | (41,271) | 782,034 |
| Gross Profit | 229,842 | (7,490) | 222,352 |
| Selling, General and Administrative Expenses | 210,940 | (5,720) | 205,220 |
| Restructuring Expense | 448 | (127) | 321 |
| Operating Income | 18,454 | (1,643) | 16,811 |
| Other Income (Expense): | |||
| Interest income | 2,105 | 2,105 | |
| Interest expense | (163) | (163) | |
| Non-operating income | 7,639 | (476) | 7,163 |
| Non-operating expense | (1,576) | (161) | (1,737) |
| Other income, net | 8,005 | (637) | 7,368 |
| Income from Continuing Operations Before Taxes on Income | 26,459 | (2,280) | 24,179 |
| Provision for Income Taxes (2) | 5,358 | (27) | 5,331 |
| Income from Continuing Operations | $ 21,101 | $ (2,253) | $ 18,848 |
| Earnings Per Share of Common Stock: | |||
| Basic Earnings Per Share from Continuing Operations: | |||
| Class A | $0.55 | $0.49 | |
| Class B | $0.56 | $0.50 | |
| Diluted Earnings Per Share from Continuing Operations: | |||
| Class A | $0.54 | $0.48 | |
| Class B | $0.55 | $0.50 | |
| Average Number of Shares Outstanding: | |||
| Basic: | |||
| Class A | 13,576 | 13,576 | |
| Class B | 24,565 | 24,565 | |
| Totals | 38,141 | 38,141 | |
| Diluted: | |||
| Class A | 13,711 | 13,711 | |
| Class B | 24,648 | 24,648 | |
| Totals | 38,359 | 38,359 | |
| See accompanying Notes to Pro Forma Consolidated Statements of Income | |||
KIMBALL INTERNATIONAL, INC.
PRO FORMA CONSOLIDATED STATEMENTS OF INCOME
Fiscal Year Ended June 30, 2004
(Unaudited)
| (Amounts in Thousands, Except for Per Share Data) | As Reported | Pro Forma Adjustments for Exit of Production of PTV Cabinets and Stands (1) | Pro Forma | |
| Net Sales | $1,053,493 | $ (60,670) | $ 992,823 | |
| Cost of Sales | 803,131 | (54,882) | 748,249 | |
| Gross Profit | 250,362 | (5,788) | 244,574 | |
| Selling, General and Administrative Expenses | 214,129 | (6,759) | 207,370 | |
| Restructuring Expense | 2,843 | (253) | 2,590 | |
| Operating Income | 33,390 | 1,224 | 34,614 | |
| Other Income (Expense): | ||||
| Interest income | 1,393 | 1,393 | ||
| Interest expense | (414) | (414) | ||
| Non-operating income | 8,166 | (1,370) | 6,796 | |
| Non-operating expense | (1,609) | (2) | (1,611) | |
| Other income, net | 7,536 | (1,372) | 6,164 | |
| Income from Continuing Operations Before Taxes on Income | 40,926 | (148) | 40,778 | |
| Provision for Income Taxes (2) | 12,576 | (51) | 12,525 | |
| Income from Continuing Operations | $ 28,350 | $ (97) | $ 28,253 | |
| Earnings Per Share of Common Stock: | ||||
| Basic Earnings Per Share from Continuing Operations: | ||||
| Class A | $0.73 | $0.73 | ||
| Class B | $0.75 | $0.75 | ||
| Diluted Earnings Per Share from Continuing Operations: | ||||
| Class A | $0.73 | $0.72 | ||
| Class B | $0.75 | $0.74 | ||
| Average Number of Shares Outstanding: | ||||
| Basic: | ||||
| Class A | 13,696 | 13,696 | ||
| Class B | 24,405 | 24,405 | ||
| Totals | 38,101 | 38,101 | ||
| Diluted: | ||||
| Class A | 13,807 | 13,807 | ||
| Class B | 24,500 | 24,500 | ||
| Totals | 38,307 | 38,307 | ||
| See accompanying Notes to Pro Forma Consolidated Statements of Income | ||||
KIMBALL INTERNATIONAL, INC.
NOTES TO PRO FORMA CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(1) Reflects the elimination of revenues and expenses associated with the production of wood rear projection ("PTV") cabinets and stands to reflect the classification as discontinued operations beginning on July 1, 2003. There are no material nonrecurring charges or credits included in the historical or pro forma financial statements relating to this transaction.
(2) Income tax expense related to discontinued operations varied from the 35% U.S. statutory rate because of foreign income subject to local foreign taxes.