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 May 26, 1999
(Date of earliest event reported)
KIMBALL INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
INDIANA
(State or other jurisdiction of incorporation)
0-3279 35-0514506
(Commission File Number) (IRS Employee Identification Number)
1600 Royal Street, Jasper, Indiana 47549-1001
(Address of principal executive offices) (Zip Code)
Registrants telephone number, including area code: (812) 482-1600
Not Applicable
(Former name or former address, if changed since last report)
ITEM 5. Other Events
Kimball International, Inc. Announces $100 Million Credit Facility
Manufacturing Facility Purchased in Juarez, Mexico; Production Expansion
in North Carolina
Jasper, IN (May 25, 1999) - Kimball International, Inc. (NASDAQ: KBALB) today
announced the signing of a $100 million revolving credit facility with NBD
Bank, an affiliate of Bank One Corporation. The credit facility will be used by
Kimball for acquisitions and general corporate purposes. The agreement is a
five-year commitment and includes an option to increase the available funds to
$150 million based upon certain terms and conditions.
"Today's announcement is significant in the context that it represents a new
chapter in the financing history of Kimball International," stated Kimball
International, Inc. Chairman and Chief Executive Officer, Douglas A. Habig.
"We have been quite active during this past fiscal year in acquiring businesses
and properties that we feel will play an important role in helping us achieve
our long-term goals and strategies. And, as we head into the next millennium,
our aggressive growth plans and acquisition strategies in the electronics
segment along with furniture and cabinets will require additional financing
above the operating cash flow historically used to fund our business. This
credit line will allow us to finance that growth while at the same time lowering
our overall cost of capital," continued Habig.
During the past fiscal year, Kimball has completed a number of acquisitions
related to their core competencies aimed at penetrating new and existing
markets. In August 1998, Kimball nearly doubled their timberland holdings by
purchasing 11,700 acres in Crittenden and Union Counties in Kentucky to help
assure a long-term supply of quality hardwood timber for its wood related
product lines. The site may also serve as a possible location for future
expansion of Kimball's manufacturing operations. In September 1998, Kimball
acquired the assets of Transwall, Inc., a privately held manufacturer of
stackable panel office furniture systems and floor-to-ceiling products. In
January 1999, Kimball acquired Southeast Millwork, (renamed Kimball Store
Fixtures) a privately held manufacturer of store display fixtures located in
Boca Raton, Florida.
Kimball Store Fixtures is also presently expanding their geographic presence
with a 125,000 square foot leased manufacturing facility located in Weaverville,
North Carolina, near Asheville. They expect to employ nearly 200 full-time
production employees once the plant reaches full capacity.
And in response to the changing needs of its customers and to further enhance
their global manufacturing capabilities, Kimball also recently purchased a
904,000 square foot manufacturing facility located in Juarez, Mexico, previously
owned by Zenith Electronics Corporation. The Juarez facility will produce
projection television cabinets along with providing additional capacity for
other manufacturing operations. Kimball expects to attract additional business
to the newly acquired plant due to the close proximity to many of its key OEM
customers. The Juarez acquisition is anticipated to have a modest, dilutive
impact on earnings for the fourth quarter of fiscal 1999 as a result of related
start-up costs.
Commenting on Kimball's latest acquisition, Habig said, "Kimball International
recognizes that our customers' business and the economy is becoming more global
every day and we are dedicated to meeting the needs of our customers. We
believe that our most recent purchase of the facility in Juarez along with the
other strategic acquisitions that we have recently completed is confirmation of
our commitment to our customers and future growth. Kimball International will
continue to seek out new and profitable opportunities, both domestically and
internationally, that not only exceed the needs and expectations of our
customers, but also benefit our employees and share owners," concluded Habig.
Certain statements contained within this release could be considered
forward-looking under the Private Securities Litigation Reform Act of 1995, and
are subject to risks and uncertainties including, but not limited to, timely
implementation of acquisition start ups, loss of key customers or suppliers
within specific industries, availability or cost of raw materials, increased
competitive pricing pressures, and the compounding effect the above mentioned
risks may have on the Company's increased investments to provide an
infrastructure for accelerated growth.
Kimball International, Inc. is a diversified manufacturer of consumer durable
goods, including office, residential, hospitality and healthcare furniture, sold
under the Company's family of brand names. Kimball also supplies electronic
assemblies on a contract basis to customers in the automotive, aerospace,
defense, telecommunications and computer industries. Other products produced by
Kimball on an original equipment manufactured basis include store fixtures,
television cabinets and stands, audio speaker systems, home furniture and pool
tables, plywood, dimension stock and other lumber products.
For more information about Kimball International, Inc., visit the Company's web
site on the Internet at www.kimball.com.
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: Robert F. Schneider
ROBERT F. SCHNEIDER
Executive Vice President,
Chief Financial Officer,
Assistant Treasurer
Date: May 26, 1999