Double-digit EPS growth fueled by profit
transformation and synergy acceleration
- Delivered strong third quarter EPS, GAAP $0.98 (+23% YoY) /
non-GAAP $1.03 (+11% YoY)
- Workplace Furnishings segment operating margin (GAAP and
non-GAAP) reached a 20-year high
- Residential Building Products segment profit grew in the third
quarter despite cyclical revenue pressures
- Elevated earnings growth visibility extends through 2026 from
initiatives already in progress
- Near-term volume pressures expected to negatively impact
fourth-quarter results
HNI Corporation (NYSE: HNI) today announced net sales for
the third quarter ended September 28, 2024 of $672.2 million and
net income of $47.5 million.
Highlights
- Strong earnings growth driven by profit transformation
initiatives and synergy acceleration. Third quarter non-GAAP
EPS increased 11 percent year-over-year despite lower revenue.
Consolidated operating margin expanded 220 basis points on a GAAP
basis and 150 basis points on a non-GAAP basis versus the
prior-year period with non-GAAP operating margin reaching the
highest third quarter level since 2004. Non-GAAP to GAAP
reconciliations follow the financial statements in this
release.
- Elevated earnings visibility in 2025 and 2026. The
Corporation continues to expect $45 to $50 million of savings from
the Kimball International (“KII”) acquisition synergies ($30
million) and the ramp of its Mexico facility ($15 million to $20
million) to benefit the 2025-2026 period. These two initiatives by
themselves equate to an additional $0.70 to $0.80 of EPS through
2026. Total synergies now expected to result from the KII
acquisition have increased $10 million to $60 million with $30
million realized in 2024.
- 2025 outlook remains positive; however, volume pressures
expected in the fourth quarter. Order rates and pre-order
metrics continue to be encouraging. Workplace Furnishings orders in
the third quarter grew one percent year-over-year and have
strengthened in recent weeks. Additionally, the Workplace
Furnishings 2025 sales funnel is up over 10 percent year-over-year,
pointing to stronger 2025 growth. Third quarter Residential
Building Products orders grew three percent versus the prior year
with continued growth in the early part of the fourth quarter.
However, uncertainty around the U.S. elections and the broader
macroeconomic environment is causing many customers, particularly
in the Workplace Furnishings segment, to reduce their short cycle
transactional purchases and further delay projects. As a result,
fourth quarter revenue is expected to decline in both segments
versus the prior-year period.
- Strong balance sheet. Gross leverage at the end of the
third quarter was 1.1x, as calculated in accordance with the
Corporation’s debt agreements. That ratio was down from 1.5x at the
end of the second quarter due to higher profit and lower debt. The
Corporation also further accelerated stock repurchase activity in
the quarter.
“Our members delivered another quarter of strong profit growth.
We continue to show we can deliver profit growth during challenging
market conditions. Third quarter non-GAAP EPS was 11 percent higher
year-over-year, on top of a very strong year-ago comparison when
profit grew more than 30 percent. Our third quarter EPS has more
than doubled in the past three years.
“In the Workplace Furnishings segment, our profit transformation
plan and acceleration of KII synergies drove segment non-GAAP
operating profit margin to a 20-year high for the third quarter.
While our third quarter results did not benefit from top-line
growth and fourth quarter revenue is expected to be lower
year-on-year, order patterns have recently shown improvement,
pointing to a stronger 2025.
“In Residential Building Products, despite ongoing housing
market volatility, non-GAAP operating profit margin expanded
year-over-year and exceeded 18 percent in the third quarter. Longer
term, we remain bullish about the prospects of the housing market,
broadly, and our market-leading position and profitable operating
model, specifically. In the fourth quarter, however, housing
volatility and economic uncertainty are expected to pressure sales
results on a year-over-year basis.
“Overall, our strategies, our dedicated member-owners, our
customer-first business model, and our proven ability to manage
through all parts of the economic cycle again delivered strong
results,” stated Jeff Lorenger, Chairman, President, and Chief
Executive Officer.
HNI Corporation – Third
Quarter Financial Performance
(Dollars in millions, except per
share data)
Three Months Ended
September 28,
2024
September 30,
2023
Change
GAAP
Net Sales
$672.2
$711.6
(5.5
%)
Gross Profit %
41.5
%
40.1
%
140 bps
SG&A %
31.0
%
31.4
%
-40 bps
Restructuring and Impairment Charges %
0.2
%
0.7
%
-50 bps
Operating Income
$68.9
$56.8
21.3
%
Operating Income %
10.2
%
8.0
%
220 bps
Effective Tax Rate
23.1
%
20.3
%
Net Income %
7.1
%
5.3
%
180 bps
EPS – diluted
$0.98
$0.80
22.5
%
Non-GAAP
Gross Profit %
41.7
%
40.1
%
160 bps
Operating Income
$72.3
$65.2
10.8
%
Operating Income %
10.7
%
9.2
%
150 bps
Effective Tax Rate
23.1
%
21.4
%
EPS – diluted
$1.03
$0.93
10.8
%
HNI Corporation — Third Quarter Summary Comments
- Consolidated net sales decreased 5.5 percent from the
prior-year quarter to $672.2 million. On an organic basis, net
sales decreased 4.5 percent year-over-year. The divestiture of
KII's Poppin business in the third quarter of 2023 decreased
year-over-year net sales by $7.7 million. A reconciliation of
organic net sales, a non-GAAP measure, to net sales follows the
financial statements in this release.
- Gross profit margin expanded 140 basis points compared
to the prior-year quarter. This increase was driven by improved net
productivity, partially offset by lower sales volume, impacts from
the exit of Poppin in the prior year, and higher restructuring
charges recorded to cost of sales as a result of factory
consolidation initiatives in Workplace Furnishings.
- Selling and administrative expenses as a percent of
sales decreased 40 basis points compared to the prior-year quarter.
The decrease was driven by $2.8 million of KII acquisition-related
fees and expenses incurred in the prior-year quarter, favorable
impacts from the exit of Poppin in the prior year, and lower
variable compensation, partially offset by lower sales volume.
- Restructuring and impairment charges of $1.6 million
were incurred in the current quarter in connection with
reorganization actions in Residential Building Products and factory
consolidation initiatives in Workplace Furnishings. Charges of $5.3
million were incurred in the prior-year quarter mainly related to
the exit of the Poppin business.
- Net income per diluted share increased from the
prior-year quarter driven by improved net productivity, costs
incurred in the prior-year quarter related to the KII acquisition
and the exit of the Poppin business, lower variable compensation,
and reduced interest expense, partially offset by lower sales
volume.
Workplace Furnishings – Third
Quarter Financial Performance
(Dollars in millions)
Three Months Ended
September 28,
2024
September 30,
2023
Change
GAAP
Net Sales
$505.1
$536.8
(5.9
%)
Operating Income
$57.7
$47.3
22.1
%
Operating Income %
11.4
%
8.8
%
260 bps
Non-GAAP
Operating Income
$60.0
$53.6
11.9
%
Operating Income %
11.9
%
10.0
%
190 bps
- Workplace Furnishings net sales decreased 5.9 percent
from the prior-year quarter to $505.1 million. Organic net sales
decreased 4.5 percent year-over-year. The divestiture of KII's
Poppin business in the third quarter of 2023 decreased
year-over-year net sales by $7.7 million.
- Workplace Furnishings operating margin of 11.4 percent
improved 260 basis points versus the prior-year quarter, driven by
improved net productivity and costs associated with the exit of
Poppin incurred in the prior-year quarter, partially offset by
lower sales volume and current restructuring costs. Third quarter
non-GAAP operating profit margin was 11.9 percent, an improvement
of 190 basis points year-over-year.
Residential Building Products
– Third Quarter Financial Performance
(Dollars in millions)
Three Months Ended
September 28,
2024
September 30,
2023
Change
GAAP
Net Sales
$167.1
$174.8
(4.4
%)
Operating Income
$29.9
$30.9
(3.1
%)
Operating Income %
17.9
%
17.7
%
20 bps
Non-GAAP
Operating Income
$31.0
$30.9
0.5
%
Operating Income %
18.6
%
17.7
%
90 bps
- Residential Building Products net sales decreased 4.4
percent from the prior-year quarter to $167.1 million driven by a
decline in the remodel-retrofit channel, partially offset by a
modest increase in the new construction channel.
- Residential Building Products operating profit margin of
17.9 percent increased 20 basis points year-over-year driven by
favorable price-cost, net productivity, and product mix, partially
offset by lower sales volume and restructuring charges incurred in
the current quarter. Third quarter non-GAAP operating profit margin
was 18.6 percent, an improvement of 90 basis points
year-over-year.
Third Quarter Order Rates
- In the Workplace Furnishings segment, orders were up one
percent compared to the prior-year period on an organic basis.
Orders from contract customers performed better than those from
small-to-medium sized customers.
- Orders in the Residential Building Products segment
increased three percent compared to the third quarter of 2023.
Remodel-retrofit orders outperformed those from the new
construction channel.
Outlook
- Demand environment. For the fourth quarter of 2024,
Workplace Furnishings net sales are expected to decrease at a
low-to-mid single-digit rate year-over-year. This new outlook
reflects the impact of uncertainty around the U.S. elections and
the broader macroeconomic environment, which are causing customers
to reduce their short cycle transactional purchases and further
delay projects. Fourth quarter net sales in the Residential
Building Products segment are projected to decline at a low
single-digit rate versus the same period in 2023 as incoming orders
have been negatively impacted by record-low housing turnover,
elevated interest rates, ongoing affordability issues, and economic
uncertainty.
- Fourth quarter earnings. Non-GAAP earnings per share in
the fourth quarter are expected to decrease from 2023 levels. For
the full year, non-GAAP EPS is expected to increase at a rate of 10
percent or more for the third consecutive year, driven by margin
expansion in both Workplace Furnishings and Residential Building
Products.
- Elevated earnings growth visibility beyond 2024. The
Corporation now expects $80 to $85 million of benefits associated
with KII synergies ($60 million) and the ramp of its Mexico
facility ($20 to $25 million). Both initiatives are currently
underway and are providing benefit in 2024. These initiatives also
provide visibility to future earnings growth with an estimated $45
to $50 million benefiting the 2025-2026 period.
Concluding Remarks
“Our strategies continue to drive strong profit growth. Our
teams delivered outstanding results through the first three
quarters of 2024—with year-to-date EPS growing 33 percent. In
Workplace Furnishings, our profit transformation initiatives pushed
third quarter margins to multi-decade highs.
“Looking beyond 2024, we continue to have clear line of sight to
$45 to $50 million of incremental benefit driven by the ongoing
synergies with Kimball International and the maturing efficiency of
our new facility in Mexico. Additionally, multiple indicators point
to improving demand on the horizon.
“In Residential Building Products, we remain bullish about the
intermediate- and long-term dynamics of our business. We will focus
on supporting profitability in the near term while investing for
the long term, and we remain uniquely positioned to drive
high-margin growth as housing stabilizes.
“While our fourth quarter expectations move lower, we believe
the pressures in both segments are temporary and expect improving
revenue trends to complement our margin support initiatives and
drive continued earnings growth and cash flow generation. Our core
areas of focus are unchanged. We will continue to deliver margin
expansion in Workplace Furnishings and drive long-term revenue
growth in Residential Building Products,” concluded Mr.
Lorenger.
Conference Call
HNI Corporation will host a conference call on Tuesday, October
29, 2024 at 10:00 a.m. (Central) to discuss third quarter fiscal
year 2024 results. To participate, call 1-855-761-5600 – conference
ID number 7175411. Both a live webcast and webcast replay will be
available on HNI Corporation’s website at
https://investors.hnicorp.com/events-and-presentations.
About HNI Corporation
HNI Corporation (NYSE: HNI) has been improving where people
live, work, and gather for more than 75 years. HNI is a
manufacturer of workplace furnishings and residential building
products, operating under two segments. The Workplace Furnishings
segment is a leading global designer and provider of commercial
furnishings, going to market under multiple unique brands. The
Residential Building Products segment is the nation’s leading
manufacturer and marketer of hearth products, which include a full
array of gas, electric, wood, and pellet-burning fireplaces,
inserts, stoves, facings, and accessories. More information can be
found on the Corporation’s website at www.hnicorp.com.
Forward-Looking
Statements
This release contains "forward-looking" statements based on
current expectations regarding future plans, events, outlook,
objectives, financial performance, expectations for sales growth,
and earnings per diluted share (GAAP and non-GAAP), including
statements regarding future levels of demand, anticipated
macroeconomic conditions, expected differences in seasonality and
its effects on the Corporation’s results of operations, the
anticipated benefits and cost synergies of the acquisition of
Kimball International, and future levels of productivity.
Forward-looking statements can be identified by words including
“expect,” “believe,” “anticipate,” “estimate,” “may,” “will,”
“would,” “could,” “confident,” or other similar words, phrases, or
expressions. Forward-looking statements involve known and unknown
risks and uncertainties, which may cause the Corporation’s actual
future results and performance to differ materially from expected
results. Actual results could differ materially from those
anticipated in the forward-looking statements and from historical
results due to the risks and uncertainties described elsewhere in
this release and in the Corporation’s filings with the Securities
and Exchange Commission, including but not limited to: the
Corporation’s ultimate realization of the anticipated benefits of
the acquisition of Kimball International; disruptions in the global
supply chain; the effects of prolonged periods of inflation and
rising interest rates; labor shortages; the levels of office
furniture needs and housing starts; overall demand for the
Corporation’s products; general economic and market conditions in
the United States and internationally; industry and competitive
conditions; the consolidation and concentration of the
Corporation’s customers; the Corporation’s reliance on its network
of independent dealers; change in trade policy; changes in raw
material, component, or commodity pricing; market acceptance and
demand for the Corporation’s new products; changing legal,
regulatory, environmental, and healthcare conditions; the risks
associated with international operations; the potential impact of
product defects; the various restrictions on the Corporation’s
financing activities; an inability to protect the Corporation’s
intellectual property; cybersecurity threats, including those posed
by potential ransomware attacks; impacts of tax legislation; and
force majeure events outside the Corporation’s control, including
those that may result from the effects of climate change. A
description of these risks and additional risks can be found in the
Corporation’s annual and quarterly reports filed with the
Securities and Exchange Commission on Forms 10-K and 10-Q. The
Corporation assumes no obligation to update, amend, or clarify
forward-looking statements, except as required by applicable
law.
HNI Corporation and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income
(In millions, except per share data) (Unaudited)
Three Months Ended
Nine Months Ended
September 28,
2024
September 30,
2023
September 28,
2024
September 30,
2023
Net sales
$
672.2
$
711.6
$
1,883.9
$
1,754.2
Cost of sales
393.4
426.3
1,110.9
1,079.0
Gross profit
278.8
285.3
773.0
675.2
Selling and administrative expenses
208.4
223.3
617.3
602.2
Restructuring and impairment charges
1.6
5.3
3.7
13.4
Operating income
68.9
56.8
151.9
59.6
Interest expense, net
7.1
9.4
22.1
17.5
Income before income taxes
61.8
47.4
129.8
42.1
Income taxes
14.3
9.6
28.6
15.6
Net income
47.5
37.8
101.2
26.5
Less: Net income attributable to
non-controlling interest
0.0
0.0
0.0
0.0
Net income attributable to HNI
Corporation
$
47.5
$
37.8
$
101.2
$
26.5
Average number of common shares
outstanding – basic
47.7
46.6
47.3
43.8
Net income attributable to HNI Corporation
per common share – basic
$
1.00
$
0.81
$
2.14
$
0.60
Average number of common shares
outstanding – diluted
48.7
47.3
48.4
44.5
Net income attributable to HNI Corporation
per common share – diluted
$
0.98
$
0.80
$
2.09
$
0.60
Foreign currency translation
adjustments
$
(0.0
)
$
(0.2
)
$
(0.1
)
$
(0.2
)
Change in unrealized gains (losses) on
marketable securities, net of tax
0.3
(0.0
)
0.3
0.1
Change in derivative financial
instruments, net of tax
(1.8
)
—
(0.0
)
(0.1
)
Other comprehensive income (loss), net of
tax
(1.4
)
(0.2
)
0.2
(0.2
)
Comprehensive income
46.1
37.5
101.4
26.3
Less: Comprehensive income attributable to
non-controlling interest
0.0
0.0
0.0
0.0
Comprehensive income attributable to HNI
Corporation
$
46.1
$
37.5
$
101.4
$
26.3
Amounts may not sum due to
rounding.
HNI Corporation and Subsidiaries
Condensed Consolidated Balance Sheets (In millions)
(Unaudited)
September 28,
2024
December 30,
2023
Assets
Current Assets:
Cash and cash equivalents
$
34.3
$
28.9
Short-term investments
5.9
5.6
Receivables
261.1
247.1
Allowance for doubtful accounts
(2.3
)
(3.5
)
Inventories, net
210.3
196.6
Prepaid expenses and other current
assets
52.4
61.3
Total Current Assets
561.7
535.9
Property, Plant, and Equipment:
Land and land improvements
59.4
58.9
Buildings
416.8
406.8
Machinery and equipment
699.4
705.8
Construction in progress
20.7
22.2
1,196.4
1,193.7
Less accumulated depreciation
(656.9
)
(638.5
)
Net Property, Plant, and Equipment
539.5
555.2
Right-of-use Finance Leases
12.2
12.2
Right-of-use Operating Leases
107.4
115.2
Goodwill and Other Intangible Assets,
net
631.5
651.9
Other Assets
61.2
58.4
Total Assets
$
1,913.4
$
1,928.8
Liabilities and Equity
Current Liabilities:
Accounts payable and accrued expenses
$
431.3
$
418.7
Current maturities of debt
50.9
7.5
Current maturities of other long-term
obligations
2.2
7.3
Current lease obligations - Finance
4.9
4.4
Current lease obligations - Operating
25.0
25.9
Total Current Liabilities
514.3
463.7
Long-Term Debt
294.5
428.3
Long-Term Lease Obligations - Finance
7.4
7.9
Long-Term Lease Obligations -
Operating
98.3
104.0
Other Long-Term Liabilities
78.8
78.0
Deferred Income Taxes
73.1
85.1
Total Liabilities
1,066.4
1,167.0
Equity:
HNI Corporation shareholders’ equity
846.6
761.4
Non-controlling interest
0.3
0.3
Total Equity
846.9
761.8
Total Liabilities and Equity
$
1,913.4
$
1,928.8
Amounts may not sum due to
rounding.
HNI Corporation and Subsidiaries
Condensed Consolidated Statements of Cash Flows (In
millions) (Unaudited)
Nine Months Ended
September 28,
2024
September 30,
2023
Net Cash Flows From (To) Operating
Activities:
Net income
$
101.2
$
26.5
Non-cash items included in net income:
Depreciation and amortization
80.1
68.3
Other post-retirement and post-employment
benefits
0.8
0.8
Stock-based compensation
13.7
11.3
Deferred income taxes
(11.7
)
(6.0
)
Other – net
4.2
5.2
Net increase (decrease) in cash from
operating assets and liabilities
(5.1
)
63.0
Decrease in other liabilities
(7.8
)
(6.7
)
Net cash flows from (to) operating
activities
175.5
162.5
Net Cash Flows From (To) Investing
Activities:
Capital expenditures
(41.2
)
(61.9
)
Acquisition spending, net of cash
acquired
—
(369.7
)
Capitalized software
(2.0
)
(0.9
)
Purchase of investments
(3.1
)
(3.8
)
Sales or maturities of investments
4.5
4.0
Net proceeds from sale of subsidiary
—
3.1
Other – net
0.2
1.5
Net cash flows from (to) investing
activities
(41.7
)
(427.6
)
Net Cash Flows From (To) Financing
Activities:
Payments of debt
(354.0
)
(304.3
)
Proceeds from debt
262.4
625.3
Dividends paid
(47.9
)
(43.5
)
Purchase of HNI Corporation common
stock
(24.8
)
—
Proceeds from sales of HNI Corporation
common stock
45.4
1.8
Other – net
(9.6
)
(7.1
)
Net cash flows from (to) financing
activities
(128.5
)
272.1
Net increase in cash and cash
equivalents
5.3
6.9
Cash and cash equivalents at beginning of
period
28.9
17.4
Cash and cash equivalents at end of
period
$
34.3
$
24.4
Amounts may not sum due to
rounding.
HNI Corporation and Subsidiaries
Reportable Segment Data (In millions) (Unaudited)
Three Months Ended
Nine Months Ended
September 28,
2024
September 30,
2023
September 28,
2024
September 30,
2023
Net Sales:
Workplace furnishings
$
505.1
$
536.8
$
1,425.1
$
1,249.5
Residential building products
167.1
174.8
458.8
504.7
Total
$
672.2
$
711.6
$
1,883.9
$
1,754.2
Income (Loss) Before Income Taxes:
Workplace furnishings
$
57.7
$
47.3
$
138.3
$
59.2
Residential building products
29.9
30.9
71.0
74.5
General corporate
(18.8
)
(21.4
)
(57.4
)
(74.0
)
Operating income
68.9
56.8
151.9
59.6
Interest expense, net
7.1
9.4
22.1
17.5
Total
$
61.8
$
47.4
$
129.8
$
42.1
Depreciation and Amortization Expense:
Workplace furnishings
$
18.7
$
16.8
$
54.3
$
41.7
Residential building products
3.6
3.5
10.7
10.2
General corporate
5.0
5.4
15.2
16.4
Total
$
27.3
$
25.6
$
80.1
$
68.3
Capital Expenditures (including
capitalized software):
Workplace furnishings
$
11.2
$
18.8
$
29.7
$
50.6
Residential building products
1.7
2.7
6.0
10.1
General corporate
1.6
0.1
7.5
2.1
Total
$
14.5
$
21.6
$
43.2
$
62.8
As of
September 28, 2024
As of
December 30, 2023
Identifiable Assets:
Workplace furnishings
$
1,291.5
$
1,311.4
Residential building products
482.4
467.1
General corporate
139.5
150.3
Total
$
1,913.4
$
1,928.8
Amounts may not sum due to
rounding.
Non-GAAP Financial
Measures
This earnings release includes certain non-GAAP financial
measures as defined by Securities and Exchange Commission
Regulation G. Pursuant to the requirements of this regulation,
reconciliations of historical non-GAAP financial measures to the
most directly comparable historical GAAP measures are included
below and throughout this earnings release. This information gives
investors additional insights into HNI’s financial performance and
operations. While HNI’s management believes the non-GAAP financial
measures are useful in evaluating HNI’s operations, this
information should be considered supplemental and not in isolation
or as a substitute for, or superior to, financial information
prepared and presented in accordance with GAAP. In addition, these
measures may be different from similarly titled non-GAAP financial
measures used by other companies, limiting their usefulness for
comparison purposes.
To supplement the condensed consolidated financial statements,
which are prepared and presented in accordance with GAAP, this
earnings release contains the following non-GAAP financial
measures: organic net sales and non-GAAP gross profit, operating
income, operating profit, income taxes, net income, and net income
per diluted share (EPS). These measures are adjusted from the
comparable GAAP measures to exclude the impacts of the selected
items as summarized in the tables below. Generally, non-GAAP EPS is
calculated using HNI’s overall effective tax rate for the period,
as this rate is reflective of the tax applicable to most non-GAAP
adjustments. In the prior-year quarter, the effective tax rate used
to calculate non-GAAP EPS differs from the GAAP effective tax rate
due to the impact of nondeductible charges associated with the
acquisition of Kimball International.
The sales adjustments to arrive at the non-GAAP organic net
sales information presented in this earnings release relate to the
exclusion of net sales of Poppin in the prior-year period. The
transactions excluded for purposes of other non-GAAP financial
information included in this earnings release include: professional
fees and other costs related to the acquisition of Kimball
International; restructuring charges recorded to cost of sales
comprised of accelerated depreciation, asset disposals, inventory
valuation adjustments, and relocation and new facility setup costs
in the Workplace Furnishings segment; costs associated with the
exit of the Poppin business; current period costs associated with
factory consolidation initiatives in the Workplace Furnishings
segment; current period restructuring activities related to the
Residential Building Products segment; and prior period impairment
charges in the Workplace Furnishings segment related to an office
building and the disposal of information technology assets.
This earnings release refers to our expectations regarding
non-GAAP EPS. The Corporation is unable to provide a reconciliation
of this forward-looking non-GAAP measure to future EPS without
unreasonable effort due to the uncertainty regarding, and to the
potential variability of, many of the costs and expenses that could
potentially impact EPS calculated on a GAAP basis. These items
include, but are not limited to, impairments, financial impacts
from changes in legal, regulatory, and tax requirements, charges
related to actions taken to improve future profitability, and the
impact of acquisitions and divestitures, if any. These items
necessary to reconcile forward-looking non-GAAP EPS to EPS could be
material and have a significant impact on the Corporation’s results
computed in accordance with GAAP.
HNI Corporation
Reconciliation
(Dollars in millions)
Three Months Ended
September 28, 2024
September 30, 2023
Workplace
Furnishings
Residential
Building
Products
Total
Workplace
Furnishings
Residential
Building
Products
Total
Net sales as reported (GAAP)
$
505.1
$
167.1
$
672.2
$
536.8
$
174.8
$
711.6
% change from PY
(5.9
%)
(4.4
%)
(5.5
%)
Less: Poppin divestiture
—
—
—
7.7
—
7.7
Organic net sales (non-GAAP)
$
505.1
$
167.1
$
672.2
$
529.2
$
174.8
$
704.0
% change from PY
(4.5
%)
(4.4
%)
(4.5
%)
HNI Corporation
Reconciliation
(Dollars in millions, except per
share data)
Three Months Ended
September 28, 2024
Gross
Profit
Operating
Income
Tax
Net
Income
EPS
As reported (GAAP)
$
278.8
$
68.9
$
14.3
$
47.5
$
0.98
% of net sales
41.5
%
10.2
%
7.1
%
Tax %
23.1
%
Restructuring charges
1.8
3.4
0.8
2.6
0.05
Results (non-GAAP)
$
280.6
$
72.3
$
15.1
$
50.1
$
1.03
% of net sales
41.7
%
10.7
%
7.5
%
Tax %
23.1
%
HNI Corporation
Reconciliation
(Dollars in millions, except per
share data)
Three Months Ended
September 30, 2023
Gross
Profit
Operating
Income
Tax
Net
Income
EPS
As reported (GAAP)
$
285.3
$
56.8
$
9.6
$
37.8
$
0.80
% of net sales
40.1
%
8.0
%
5.3
%
Tax %
20.3
%
Restructuring charges
0.3
5.4
1.1
4.2
0.09
Impairment charges
—
0.2
0.0
0.2
0.00
Acquisition costs
—
2.8
1.1
1.7
0.04
Results (non-GAAP)
$
285.6
$
65.2
$
11.9
$
43.9
$
0.93
% of net sales
40.1
%
9.2
%
6.2
%
Tax %
21.4
%
Workplace Furnishings
Reconciliation
(Dollars in millions)
Three Months Ended
September 28,
2024
September 30,
2023
Percent
Change
Operating income as reported (GAAP)
$
57.7
$
47.3
22.1
%
% of net sales
11.4
%
8.8
%
Impairment charges
—
0.2
Restructuring charges
2.3
5.4
Acquisition costs
—
0.8
Operating income (non-GAAP)
$
60.0
$
53.6
11.9
%
% of net sales
11.9
%
10.0
%
Residential Building Products
Reconciliation
(Dollars in millions)
Three Months Ended
September 28,
2024
September 30,
2023
Percent
Change
Operating income as reported (GAAP)
$
29.9
$
30.9
(3.1
%)
% of net sales
17.9
%
17.7
%
Restructuring charges
1.1
—
Operating income (non-GAAP)
$
31.0
$
30.9
0.5
%
% of net sales
18.6
%
17.7
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241025637601/en/
Marshall H. Bridges Senior Vice President and Chief Financial
Officer (563) 272-7400
Matthew S. McCall Vice President, Investor Relations and
Corporate Development (563) 275-8898
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