Good morning, ladies and gentlemen, my name is Katherine and I'll be your conference call facilitator today. At this time, I would like to welcome everyone to the Kimball International First Quarter Earnings Conference Call. Currently all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. As with prior conference calls, today's call November 5, 2019 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 and today's press release.
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 website. On today's call are Kristie Juster, CEO of Kimball International; and Michelle Schroeder, Vice President and Chief Financial Officer of Kimball International.
I would now like to turn the today's call over to Kristie Juster. Ms. Juster, you may begin.
Kristine L. Juster
Thanks, Katherine, and good morning everyone. Welcome to Kimball International's first quarter earnings conference call. One year ago, we announced a new chapter at Kimball International and our commitment to accelerated value creation.
In May, we shared the details of our new Kimball International Connect strategy, casting our long-term three year objectives beginning fiscal year 2020 of 4% to 7% revenue CAGR, a 150 basis points to 250 basis points of adjusted EBITDA improvement, and 10% to 15% adjusted EPS growth. In July, we provided the details of our transformation plan. Delivering $16 million of cost savings initiatives in fiscal 2020. And today, we are very pleased to communicate the details of our first big proof point that our efforts are well underway, all while [Phonetic] settling the stage for a long-term sustainable performance. In the call, I will walk through the highlights of our Q1 performance, comment on market leading indicators and provide specifics around progress on our Kimball International Connect strategy. Michelle will then provide details of our financial performance and I'll wrap up with color on our path ahead and open for Q&A.
For our Q1 highlights on Slide four, we ended the quarter with revenues of $201 million, a 4% increase year-over-year, which included organic growth of 2%. Our National and Hospitality brands continue to show solid performance, offset by the planned Kimball brand realignment. Michelle, will provide commentary on vertical market performance. We continue to gain significant traction in ancillary product overall and specifically the health care and hospitality verticals. Orders were down 4% against strong comps of 18% prior year growth again mainly impacted by the Kimball brand sticks that is well underway and lower hospitality orders, which are comping strong 48% growth in the prior year.
Operating income of 7.5% or 9.8% on an adjusted basis increased 200 basis points. Gross profit of 34.9% increased a 100 basis
Kristine L. Juster
Chief Executive Officer
Michelle R. Schroeder
Vice President, Chief Financial Officer
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