Knoll, Inc. announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2017. For the quarter, the company announced net sales of $316,122,000 compared to $292,866,000 for the same period a year ago. Operating profit was $12,580,000 compared to $35,782,000 for the same period a year ago. Income before income tax expense was $9,975,000 compared to $34,639,000 for the same period a year ago. Net earnings attributable to the company stockholders were $32,693,000 or $0.67 per basic and diluted share compared to $21,442,000 or $0.44 per diluted share for the same period a year ago. Adjusted operating profit was $31.6 million, a decrease of 11.7% when compared to adjusted operating profit of $35.8 million in the fourth quarter of 2016. Adjusted net earnings for the fourth quarter of 2017 were $17.6 million, a decrease of 17.8% when compared to the fourth quarter of 2016 of $21.4 million. Adjusted EBITDA was $41.0 million for the fourth quarter, a decrease of 8.7% when compared to $44.9 million in the fourth quarter of 2016. Adjusted diluted earnings per share were $0.36 and $0.44 for the fourth quarter of 2017 and 2016, respectively. Capital expenditures for the fourth quarter of 2017 totaled $11.1 million compared to $14.7 million in the fourth quarter of 2016. Capital expenditures related primarily to manufacturing equipment, information technology infrastructure and share of investments.

For the full year, the company announced net sales of $1,132,892,000 compared to $1,164,292,000 for the same period a year ago. Operating profit was $87,969,000 compared to $136,308,000 for the same period a year ago. Income before income tax expense was $78,592,000 compared to $127,538,000 for the same period a year ago. Net earnings attributable to the company stockholders were $80,163,000 or $1.63 per diluted share compared to $82,084,000 or $1.68 per diluted share for the same period a year ago. Cash provided by operating activities was $103,734,000 compared to $104,295,000 for the same period a year ago. Capital expenditures for 2017 totaled $40.6 million compared to $40.1 million in 2016. Adjusted operating profit was $109.2 million, a decrease of 19.9% when compared to adjusted operating profit of $136.3 million in 2016. Adjusted net earnings for 2017 were $68.0 million, a decrease of 17.2%, when compared to 2016 of $82.1 million. Adjusted EBITDA was $144.5 million for 2017, a decrease of 14.3% when compared to $168.7 million in 2016. Adjusted diluted earnings per share were $1.38 and $1.68 for the years ended December 31, 2017 and 2016, respectively.

For the fiscal year 2018, the company expects effective tax rate to be between 24% and 26%. Gross margin percentages will likely be flat to slightly up from 2017 levels as positive absorption, continued efficiency initiatives and with price increases are offset by continued inflation and FX headwinds. Overall, the company's interest rate should be just under 4% on an average debt balance of $500 million for 2018. Capital expenditures are expected to be between $35 million and $40 million for 2018. As the company starts 2018, ASU 2017-07 became effective on January 1 and will result in the reclassification of certain pension related income and expenses, from operating expense to other income and expense. The company expects this reclassification to reduce operating income by approximately $7 million in 2018. This change will have no effect on net income, EBITDA or EPS.

For the fourth quarter, the company announced asset impairment charge of $16,306,000.