Kimball International, Inc. (KBAL) Q1 2023 Earnings Conference Call November 3, 2022 5:00 PM ET
Company Participants
Kristie Juster - Chief Executive Officer
T.J. Wolfe - Executive Vice President and Chief Financial Officer
Conference Call Participants
Greg Burns - Sidoti & Company
Reuben Garner - The Benchmark Company
Budd Bugatch - Water Tower Research
Operator
Good afternoon, ladies and gentlemen. My name is Rocco and I will be your conference call facilitator today. At this time, I would like to welcome everyone to the Kimball International First Quarter Fiscal 2023 Earnings Conference Call.
As with prior conference calls, today’s call, November 3, 2022 will be recorded and may contain forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from the forward-looking statements. Risk factors that may influence the outcome of forward-looking statements can be seen in the Kimball International Form 10-K. During today’s call, the presenters will be making references to an earnings slide deck presentation that is available on the Investor Relations section of Kimball International’s site.
On today’s call are Kristie Juster, Chief Executive Officer of Kimball International and T.J. Wolfe, Executive Vice President and Chief Financial Officer.
I would now like to turn today’s call over to Kristie Juster. Ms. Juster, you may begin.
Kristie Juster
Good afternoon, everyone and thank you for joining today’s call. We are pleased to report a strong start to fiscal 2023, which marks our third consecutive quarter of industry-leading performance and continues to demonstrate the value of our unique set of strategic choices, differentiated market positioning and their resilience due to our leadership position in faster-growing geographies and categories.
First quarter sales to our core workplace and health end markets increased 20%, driven by our focus on ancillary products and secondary markets. Ancillary products, which are critical to the flexibility, collaboration and pricing needs of today’s developing workplace and health settings continue to see the most robust demand across all categories and accounted for 87% of our trailing 12-month sales.
At the same time, secondary geographic markets, which are experiencing the highest levels of employment and population growth along with a faster return to office represented 78% of our shipments over the last 12 months. Our focused strategy, customer excellence and applied research are enabling us to deliver the products and solutions our customers are seeking in the geographies and end markets with the highest growth and resiliency resulting in continued revenue growth and market share gains. This was also our third consecutive quarter of substantial year-over-year profitability growth. sustained top line growth, a commitment to operational efficiency gains and timely actions to mitigate inflationary pressures continue to drive margin improvement and enabled us to convert 14% revenue growth into a 136% increase in adjusted EBITDA.