Knoll projects sequential improvements in leverage ratio through 2010

By Jennifer Lanning Drey

Portland, Ore., July 16 - Knoll, Inc. expects its leverage ratio to sequentially improve as the company moves through the balance of 2010, Barry McCabe, its chief financial officer, said Friday during its second-quarter earnings conference call.

The company reduced bank debt by $13 million during the second quarter, as a result of ongoing working capital reduction efforts and improved operating performance, McCabe said.

"Over the past 12 months, in a terrible economic environment, we have reduced our outstanding bank debt by almost $61 million, he said.

Knoll had $10.4 million of cash and cash equivalents at June 30, up from $6.0 million at Dec. 31.

The company generated $19.8 million of cash from operations in the second quarter, compared with cash from operations of $27.8 million in the same period of 2009.

McCabe said the company will continue its working capital reduction efforts in the remainder of 2010, as it believes there is room for further improvements.

Knoll is comfortably in compliance with its bank covenants, he said.

The company reported net sales of $192.3 million for the second quarter, down almost 5% from net sales of $202.2 million in the same period of 2009.

Knoll is an East Greenville, Pa.-based designer and manufacturer of branded office furniture products and textiles.

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