MUSCATINE, Iowa, Oct. 23,
2017 /PRNewswire/ -- HNI Corporation (NYSE: HNI) today
announced sales for the third quarter ended September 30, 2017
of $599.5 million and net income of
$37.3 million. GAAP net income
per diluted share was $0.84 compared
to $0.74 in the prior year.
Non-GAAP net income per diluted share was $0.82 compared to $0.80 in the prior year. GAAP to non-GAAP
reconciliations follow the financial statements in this
release.
Summary Comments
"We drove strong growth during the
third quarter and delivered earnings as expected. We continue
making progress on several significant business transformation
initiatives, positioning our businesses for long-term profitable
growth," said Stan Askren, HNI
Corporation Chairman, President and Chief Executive Officer.
HNI Corporation -
Financial Performance
|
(Dollars in millions,
except per share data)
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
September 30,
2017
|
|
October 1,
2016
|
|
Change
|
GAAP
|
|
|
|
|
|
Net Sales
|
$599.5
|
|
$584.6
|
|
2.5%
|
Gross Profit
%
|
36.9%
|
|
37.9%
|
|
-100 bps
|
SG&A %
|
28.3%
|
|
29.0%
|
|
-70 bps
|
Gain on sale and
license of assets %
|
(1.1%)
|
|
—%
|
|
-110 bps
|
Restructuring charges
%
|
0.1%
|
|
0.1%
|
|
— bps
|
Operating
Income
|
$57.7
|
|
$51.7
|
|
11.7%
|
Operating Income
%
|
9.6%
|
|
8.8%
|
|
80 bps
|
Net Income
%
|
6.2%
|
|
5.8%
|
|
40 bps
|
EPS –
diluted
|
$0.84
|
|
$0.74
|
|
13.5%
|
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Organic
Sales
|
$597.6
|
|
$540.2
|
|
10.6%
|
Gross Profit
%
|
37.8%
|
|
38.3%
|
|
-50 bps
|
SG&A %
|
28.3%
|
|
28.7%
|
|
-40 bps
|
Operating
Income
|
$56.8
|
|
$56.0
|
|
1.4%
|
Operating Income
%
|
9.5%
|
|
9.6%
|
|
-10 bps
|
EPS –
diluted
|
$0.82
|
|
$0.80
|
|
2.5%
|
Third Quarter Summary Comments
- Consolidated net sales increased $14.8
million or 2.5 percent from the prior year quarter to
$599.5 million. On an organic basis,
sales increased 10.6 percent. The net impact of acquisitions and
divestitures of small office furniture companies decreased sales
$42.5 million compared to the prior
year quarter.
- GAAP gross profit margin decreased 100 basis points compared to
the prior year quarter. Of this decline, 50 basis points were
driven by unfavorable product and business mix and input cost
inflation, partially offset by higher volume and the impact of
divestitures. The remaining decrease of 50 basis points was due to
higher restructuring and transition costs.
- Selling and administrative expenses decreased as a percentage
of sales due to lower incentive based compensation and the impact
of divestitures, partially offset by strategic investments.
- The Corporation recorded $2.3
million of restructuring costs and $3.6 million of transition costs in the third
quarter in connection with previously announced facility closures
and structural realignments. Of these charges, $5.1 million was included in cost of sales.
Specific items incurred include accelerated depreciation and
production move costs. The Corporation also recorded a $6.0 million nonrecurring gain from the sale and
license of a previously acquired intangible asset and an
$0.8 million gain on the sale of a
closed facility in the third quarter.
Office Furniture –
Financial Performance
|
(Dollars in
millions)
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
September 30,
2017
|
|
October 1,
2016
|
|
Change
|
GAAP
|
|
|
|
|
|
Net Sales
|
$465.3
|
|
$454.9
|
|
2.3%
|
Operating
Profit
|
$39.7
|
|
$44.7
|
|
(11.2%)
|
Operating Profit
%
|
8.5%
|
|
9.8%
|
|
-130 bps
|
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Organic
Sales
|
$463.4
|
|
$410.5
|
|
12.9%
|
Operating
Profit
|
$44.5
|
|
$46.1
|
|
(3.4%)
|
Operating Profit
%
|
9.6%
|
|
10.1%
|
|
-50 bps
|
- Office furniture net sales increased $10.4 million or 2.3 percent from the prior year
quarter to $465.3 million. On an
organic basis, sales increased 12.9 percent driven by increases in
the North American contract, supplies-driven, and international
businesses. The net impact of acquisitions and divestitures of
small office furniture companies decreased sales $42.5 million compared to the prior year
quarter.
- Office furniture GAAP operating profit margin decreased 130
basis points. Of this decline, 50 basis points were driven by
unfavorable product and business mix, input cost inflation, and
strategic investments, partially offset by higher volume, lower
incentive based compensation, and the impact of divestitures. The
remaining decrease of 80 basis points was due to higher
restructuring and transition costs.
Hearth Products –
Financial Performance
|
(Dollars in
millions)
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
September 30,
2017
|
|
October 1,
2016
|
|
Change
|
GAAP
|
|
|
|
|
|
Net Sales
|
$134.1
|
|
$129.7
|
|
3.4%
|
Operating
Profit
|
$28.7
|
|
$19.1
|
|
50.4%
|
Operating Profit
%
|
21.4%
|
|
14.7%
|
|
670 bps
|
|
|
|
|
|
|
Non-GAAP
|
|
|
|
|
|
Operating
Profit
|
$23.0
|
|
$20.5
|
|
12.6%
|
Operating Profit
%
|
17.2%
|
|
15.8%
|
|
140 bps
|
- Hearth products net sales increased $4.4
million or 3.4 percent from the prior year quarter to
$134.1 million driven by increases in
the new construction and retail businesses.
- Hearth products GAAP operating profit margin increased 670
basis points. Of this increase, 140 basis points were driven by
structural cost reductions and higher volume. The remaining
increase of 530 basis points was due to nonrecurring gains and
lower restructuring and transition costs.
Outlook
"We are expecting a significant decline in our
fourth quarter profit as we work through two major
challenges. First, we continue to confront highly dynamic
conditions in our supplies-driven office furniture business,
resulting in increased investment and lower near-term sales.
Second, our operational transformations have been more difficult
than anticipated, resulting in higher costs.
"We are confident in our ability to meet these challenges.
Our supplies-driven business has market access, brands, and scale
unmatched by its competition, even in this new environment.
We are establishing direct service capabilities which will provide
economic advantages to our dealer partners with improved
responsiveness and delivery. We are confident we will
stabilize our transformations and return to driving cost
improvements and continue to grow the top line," said Mr.
Askren.
The Corporation estimates full year 2017 non-GAAP earnings per
share to be in the range of $1.88 to
$1.95, which excludes restructuring and transition costs and
other nonrecurring gains. This compares to prior guidance of
non-GAAP earnings per share of $2.35 to
$2.55. Lower fourth quarter volume in the
supplies-driven business, higher costs related to operational
transformations, and unfavorable business and product mix are
primarily driving the reduced outlook.
For the fourth quarter 2017, the Corporation expects sales to be
flat to down 3 percent. Fourth quarter organic sales, which
exclude the impacts of acquisitions and divestitures, are expected
to be flat to up 3 percent. Fourth quarter non-GAAP earnings
per share are anticipated to be in the range of $0.38 to $0.45, which excludes restructuring and
transition costs.
To focus on taking care of customers and strengthening its
operational network, the Corporation proactively elected to move
the next Business Systems Transformation implementation phase to
February 2018, a historically slower
demand period.
"We are confronting our challenges and responding to these
dynamic conditions. We remain optimistic about our
opportunities to drive profit improvement," said Mr. Askren.
The Corporation estimates full year non-GAAP earnings per share
for 2018, which excludes restructuring and transition costs, to be
in the range of $2.15 to $2.65 with
consolidated organic net sales up 2 to 5 percent.
Conference Call
HNI Corporation will host a conference
call on Tuesday, October 24, 2017 at
10:00 a.m. (Central) to discuss third
quarter fiscal year 2017 results. To participate, call
1-877-512-9166 – conference ID number 88144493. A live
webcast of the call will be available on HNI Corporation's website
at http://www.hnicorp.com (under Investors – News Releases &
Events). A replay of the webcast will be made available at
this website address. An audio replay of the call will be
available until Tuesday, October 31,
2017 at 10:59 p.m. (Central)
by dialing 1-855-859-2056 or 1-404-537-3406 – Conference ID number
88144493.
About HNI Corporation
HNI Corporation is an NYSE
traded company (ticker symbol: HNI) providing products and
solutions for the home and workplace environments. HNI
Corporation is a leading global provider and designer of office
furniture and the leading manufacturer and marketer of hearth
products. We sell the broadest and deepest selection of
quality office furniture solutions available to meet the needs of
every customer through an extensive portfolio of well-known and
trusted brands. Our hearth products are the strongest, most
respected brands in the industry and include a full array of gas,
electric, wood and biomass 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, and financial
performance, expectations for future sales growth, and earnings per
diluted share (GAAP and non-GAAP). 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. These risks include but are not limited to: general
economic conditions in the United
States and internationally; unfavorable changes in
the United States housing market;
industry and competitive conditions; a decline in corporate
spending on office furniture; changes in raw material, component,
or commodity pricing; future acquisitions, divestitures, or
investments; the cost of energy; changing legal, regulatory,
environmental, and healthcare conditions; the Corporation's ability
to successfully complete its business software system
implementation; the Corporation's ability to implement price
increases; changes in the sales mix of products; the Corporation's
ability to achieve the anticipated benefits from closures and
structural alignment initiatives; and force majeure events outside
the Corporation's control. 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 undertakes no
obligation to update, amend, or clarify forward-looking
statements.
HNI Corporation and
Subsidiaries
|
Condensed
Consolidated Statements of Income
|
(In thousands, except
share and per share data)
|
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
September 30,
2017
|
|
October 1,
2016
|
|
September 30,
2017
|
|
October 1,
2016
|
Net sales
|
$599,455
|
|
$584,629
|
|
$1,591,607
|
|
$1,622,204
|
Cost of
sales
|
378,211
|
|
363,075
|
|
1,011,888
|
|
1,006,019
|
Gross
profit
|
221,244
|
|
221,554
|
|
579,719
|
|
616,185
|
Selling and
administrative expenses
|
169,547
|
|
169,495
|
|
495,897
|
|
496,920
|
Gain on sale and
license of assets
|
(6,805)
|
|
—
|
|
(6,805)
|
|
—
|
Restructuring
charges
|
783
|
|
399
|
|
3,325
|
|
2,057
|
Operating
income
|
57,719
|
|
51,660
|
|
87,302
|
|
117,208
|
Interest
income
|
71
|
|
80
|
|
467
|
|
221
|
Interest
expense
|
1,835
|
|
1,091
|
|
4,228
|
|
4,096
|
Income before income
taxes
|
55,955
|
|
50,649
|
|
83,541
|
|
113,333
|
Income
taxes
|
18,624
|
|
16,837
|
|
27,573
|
|
38,652
|
Net income
|
37,331
|
|
33,812
|
|
55,968
|
|
74,681
|
Less: Net income
(loss) attributable to the non-controlling interest
|
60
|
|
(1)
|
|
12
|
|
(4)
|
Net income
attributable to HNI Corporation
|
$37,271
|
|
$33,813
|
|
$55,956
|
|
$74,685
|
|
|
|
|
|
|
|
|
Average number of
common shares outstanding – basic
|
43,682,805
|
|
44,547,375
|
|
43,970,377
|
|
44,412,310
|
Net income
attributable to HNI Corporation per common share – basic
|
$0.85
|
|
$0.76
|
|
$1.27
|
|
$1.68
|
|
|
|
|
|
|
|
|
Average number of
common shares outstanding – diluted
|
44,479,117
|
|
45,844,566
|
|
45,078,719
|
|
45,488,067
|
Net income
attributable to HNI Corporation per common share –
diluted
|
$0.84
|
|
$0.74
|
|
$1.24
|
|
$1.64
|
HNI Corporation and
Subsidiaries
|
Condensed
Consolidated Balance Sheets
|
(In
thousands)
|
|
(Unaudited)
|
|
|
September 30,
2017
|
|
December 31,
2016
|
Assets
|
|
|
|
Current
Assets:
|
|
|
|
Cash and
cash equivalents
|
$22,416
|
|
$36,312
|
Short-term investments
|
1,692
|
|
2,252
|
Receivables
|
266,087
|
|
229,436
|
Inventories
|
154,085
|
|
118,438
|
Prepaid
expenses and other current assets
|
43,863
|
|
46,603
|
Total Current
Assets
|
488,143
|
|
433,041
|
|
|
|
|
Property, Plant, and
Equipment:
|
|
|
|
Land and
land improvements
|
29,581
|
|
27,403
|
Buildings
|
319,568
|
|
283,930
|
Machinery and equipment
|
546,128
|
|
528,099
|
Construction in progress
|
46,488
|
|
51,343
|
|
941,765
|
|
890,775
|
Less
accumulated depreciation
|
548,791
|
|
534,330
|
Net Property, Plant, and
Equipment
|
392,974
|
|
356,445
|
|
|
|
|
Goodwill and Other
Intangible Assets
|
513,976
|
|
511,419
|
|
|
|
|
Deferred Income
Taxes
|
210
|
|
719
|
|
|
|
|
Other
Assets
|
30,113
|
|
28,610
|
|
|
|
|
Total Assets
|
$1,425,416
|
|
$1,330,234
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
Current
Liabilities:
|
|
|
|
Accounts
payable and accrued expenses
|
$430,617
|
|
$425,046
|
Current
maturities of long-term debt
|
17,270
|
|
34,017
|
Current
maturities of other long-term obligations
|
3,018
|
|
4,410
|
Total Current
Liabilities
|
450,905
|
|
463,473
|
|
|
|
|
Long-Term
Debt
|
295,000
|
|
180,000
|
|
|
|
|
Other Long-Term
Liabilities
|
65,236
|
|
75,044
|
|
|
|
|
Deferred Income
Taxes
|
118,394
|
|
110,708
|
|
|
|
|
Equity:
|
|
|
|
HNI Corporation
shareholders' equity
|
495,463
|
|
500,603
|
Non-controlling
interest
|
418
|
|
406
|
|
|
|
|
Total Equity
|
495,881
|
|
501,009
|
|
|
|
|
Total Liabilities and
Equity
|
$1,425,416
|
|
$1,330,234
|
HNI Corporation and
Subsidiaries
|
Condensed
Consolidated Statements of Cash Flows
|
(In
thousands)
|
|
(Unaudited)
|
|
|
Nine Months
Ended
|
|
September 30,
2017
|
|
October 1,
2016
|
Net cash flows from
(to) operating activities
|
$62,345
|
|
$113,707
|
Net cash flows from
(to) investing activities
|
(99,829)
|
|
(114,722)
|
Net cash flows from
(to) financing activities
|
23,588
|
|
(198)
|
Net increase
(decrease) in cash and cash equivalents
|
(13,896)
|
|
(1,213)
|
Cash and cash
equivalents at beginning of period
|
36,312
|
|
28,548
|
Cash and cash
equivalents at end of period
|
$22,416
|
|
$27,335
|
HNI Corporation and
Subsidiaries
|
Reportable Segment
Data
|
(In
thousands)
|
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September 30,
2017
|
|
October 1,
2016
|
|
September 30,
2017
|
|
October 1,
2016
|
Net Sales:
|
|
|
|
|
|
|
|
Office
furniture
|
$465,312
|
|
$454,946
|
|
$1,231,737
|
|
$1,270,398
|
Hearth
products
|
134,143
|
|
129,683
|
|
359,870
|
|
351,806
|
Total
|
$599,455
|
|
$584,629
|
|
$1,591,607
|
|
$1,622,204
|
|
|
|
|
|
|
|
|
Income Before Income
Taxes:
|
|
|
|
|
|
|
|
Office
furniture
|
$39,729
|
|
$44,729
|
|
$65,856
|
|
$109,396
|
Hearth
products
|
28,737
|
|
19,108
|
|
52,651
|
|
41,623
|
General
corporate
|
(12,511)
|
|
(13,188)
|
|
(34,966)
|
|
(37,686)
|
Total
|
$55,955
|
|
$50,649
|
|
$83,541
|
|
$113,333
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization Expense:
|
|
|
|
|
|
|
|
Office
furniture
|
$12,132
|
|
$10,889
|
|
$37,515
|
|
$32,709
|
Hearth
products
|
1,973
|
|
3,034
|
|
8,167
|
|
9,012
|
General
corporate
|
3,955
|
|
3,354
|
|
8,842
|
|
7,187
|
Total
|
$18,060
|
|
$17,277
|
|
$54,524
|
|
$48,908
|
|
|
|
|
|
|
|
|
Capital Expenditures
(including capitalized software):
|
|
|
|
|
|
|
|
Office
furniture
|
$27,102
|
|
$13,875
|
|
$64,467
|
|
$43,923
|
Hearth
products
|
5,606
|
|
1,957
|
|
12,818
|
|
8,969
|
General
corporate
|
7,095
|
|
10,811
|
|
26,606
|
|
29,607
|
Total
|
$39,803
|
|
$26,643
|
|
$103,891
|
|
$82,499
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
September 30,
2017
|
|
As of
December 31,
2016
|
Identifiable
Assets:
|
|
|
|
|
|
|
|
Office
furniture
|
|
|
|
|
$838,094
|
|
$749,145
|
Hearth
products
|
|
|
|
|
361,241
|
|
340,494
|
General
corporate
|
|
|
|
|
226,081
|
|
240,595
|
Total
|
|
|
|
|
$1,425,416
|
|
$1,330,234
|
Non-GAAP Financial Measures
This earnings release includes certain non-GAAP financial
information as defined by Securities and Exchange Commission
Regulation G. Pursuant to the requirements of this
regulation, reconciliations of this non-GAAP financial information
to HNI's financial statements as prepared in accordance with GAAP
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 should not be considered 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 non-GAAP financial measures used by
other companies, limiting their usefulness for comparison
purposes.
To supplement our condensed consolidated financial statements,
which are prepared and presented in accordance with GAAP, we use
the following non-GAAP financial measures within this earnings
release: organic sales, gross profit, operating income, operating
profit, and net income per diluted share (i.e., EPS). These
measures are adjusted from the comparable GAAP measures to exclude
the after-tax impacts of the selected items as summarized in the
table below. Non-GAAP EPS is calculated using HNI's overall
effective tax rate for the period as that is reflective of the tax
rate applicable to the non-GAAP adjustments.
The sales adjustments to arrive at our non-GAAP organic sales
information included in this earnings release excludes the impacts
of acquisitions and divestitures. The transactions excluded
for purposes of our other non-GAAP financial information included
in this earnings release include restructuring and transition
costs, a nonrecurring gain on the sale and license of a previously
acquired intangible asset, the gain on the sale of a closed
manufacturing facility, and the accelerated depreciation in
conjunction with the donation of a building. The
restructuring and transition costs are costs incurred as part of
the previously announced closures of the hearth manufacturing
facilities in Paris, Kentucky and
Colville, Washington and the
office furniture manufacturing facility in Orleans, Indiana and structural realignments
in China and between office
furniture facilities in Muscatine,
Iowa. Specific restructuring items incurred include severance
and accelerated depreciation. Specific transition items
incurred include production move costs.
This earnings release also contains a forward-looking estimate
of non-GAAP earnings per diluted share for the fiscal year.
We provide such non-GAAP measures to investors on a prospective
basis for the same reasons we provide it to investors on a
historical basis. We are unable to provide a reconciliation
of our forward-looking estimate of non-GAAP earnings per diluted
share to a forward-looking estimate of GAAP earnings per diluted
share without unreasonable efforts because certain information
needed to make a reasonable forward-looking estimate of GAAP
earnings per diluted share is highly variable and difficult to
predict and estimate, and is dependent on future events which are
uncertain or outside of our control. These may include
unanticipated charges related to asset impairments (fixed assets,
intangibles, or goodwill), unanticipated acquisition related costs,
and other unanticipated nonrecurring items not reflective of
ongoing operations. We expect the variability of these
charges to have a potentially unpredictable, and potentially
significant, impact on our GAAP earnings per diluted share.
HNI Corporation
Reconciliation
|
(Dollars in
millions)
|
|
|
|
Three Months
Ended
|
|
September 30,
2017
|
|
October 1,
2016
|
|
Office
Furniture
|
Hearth
|
Total
|
|
Office
Furniture
|
Hearth
|
Total
|
Sales as reported
(GAAP)
|
$465.3
|
$134.1
|
$599.5
|
|
$454.9
|
$129.7
|
$584.6
|
% change from
PY
|
2.3%
|
3.4%
|
2.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Impact of
Acquisitions and Divestitures
|
1.9
|
—
|
1.9
|
|
44.4
|
—
|
44.4
|
|
|
|
|
|
|
|
|
Organic Sales
(non-GAAP)
|
$463.4
|
$134.1
|
$597.6
|
|
$410.5
|
$129.7
|
$540.2
|
% change from
PY
|
12.9%
|
3.4%
|
10.6%
|
|
|
|
|
HNI Corporation
Reconciliation
|
(Dollars in millions,
except per share data)
|
|
|
|
Three Months
Ended
September 30, 2017
|
|
Gross
Profit
|
|
Operating
Income
|
|
Tax
|
|
Net
Income
|
|
EPS
|
As reported
(GAAP)
|
$221.2
|
|
$57.7
|
|
$18.6
|
|
$37.3
|
|
$0.84
|
% of net
sales
|
36.9%
|
|
9.6%
|
|
|
|
6.2%
|
|
|
Tax %
|
|
|
|
|
33.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
charges
|
1.6
|
|
2.3
|
|
0.8
|
|
1.5
|
|
0.03
|
Transition
costs
|
3.6
|
|
3.6
|
|
1.2
|
|
2.4
|
|
0.05
|
Nonrecurring
gain
|
—
|
|
(6.0)
|
|
(2.0)
|
|
(4.0)
|
|
(0.09)
|
Gain on sale of
assets
|
—
|
|
(0.8)
|
|
(0.3)
|
|
(0.5)
|
|
(0.01)
|
|
|
|
|
|
|
|
|
|
|
Results
(non-GAAP)
|
$226.4
|
|
$56.8
|
|
$18.3
|
|
$36.7
|
|
$0.82
|
% of net
sales
|
37.8%
|
|
9.5%
|
|
|
|
6.1%
|
|
|
Tax %
|
|
|
|
|
33.3%
|
|
|
|
|
HNI Corporation
Reconciliation
|
(Dollars in millions,
except per share data)
|
|
|
|
Three Months
Ended
October 1, 2016
|
|
Gross
Profit
|
|
Operating
Income
|
|
Tax
|
|
Net
Income
|
|
EPS
|
As reported
(GAAP)
|
$221.6
|
|
$51.7
|
|
$16.8
|
|
$33.8
|
|
$0.74
|
% of net
sales
|
37.9%
|
|
8.8%
|
|
|
|
5.8%
|
|
|
Tax %
|
|
|
|
|
33.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
charges
|
0.7
|
|
1.1
|
|
0.4
|
|
0.8
|
|
0.02
|
Charitable donation
of building
|
—
|
|
1.6
|
|
0.5
|
|
1.1
|
|
0.02
|
Transition
costs
|
1.6
|
|
1.6
|
|
0.5
|
|
1.1
|
|
0.02
|
|
|
|
|
|
|
|
|
|
|
Results
(non-GAAP)
|
$223.9
|
|
$56.0
|
|
$18.3
|
|
$36.7
|
|
$0.80
|
% of net
sales
|
38.3%
|
|
9.6%
|
|
|
|
6.3%
|
|
|
Tax %
|
|
|
|
|
33.2%
|
|
|
|
|
Office Furniture
Reconciliation
|
(Dollars in
millions)
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
September 30,
2017
|
|
October 1,
2016
|
|
Percent
Change
|
Operating profit as
reported (GAAP)
|
$39.7
|
|
$44.7
|
|
(11.2%)
|
% of net
sales
|
8.5%
|
|
9.8%
|
|
|
|
|
|
|
|
|
Restructuring
charges
|
2.0
|
|
0.1
|
|
|
Transition
costs
|
2.8
|
|
1.2
|
|
|
|
|
|
|
|
|
Operating profit
(non-GAAP)
|
$44.5
|
|
$46.1
|
|
(3.4%)
|
% of net
sales
|
9.6%
|
|
10.1%
|
|
|
|
Hearth Products
Reconciliation
|
(Dollars in
millions)
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
September 30,
2017
|
|
October 1,
2016
|
|
Percent
Change
|
Operating profit as
reported (GAAP)
|
$28.7
|
|
$19.1
|
|
50.4%
|
% of net
sales
|
21.4%
|
|
14.7%
|
|
|
|
|
|
|
|
|
Restructuring
charges
|
0.3
|
|
1.0
|
|
|
Transition
costs
|
0.8
|
|
0.4
|
|
|
Nonrecurring
gain
|
(6.0)
|
|
—
|
|
|
Gain on sale of
assets
|
(0.8)
|
|
—
|
|
|
|
|
|
|
|
|
Operating profit
(non-GAAP)
|
$23.0
|
|
$20.5
|
|
12.6%
|
% of net
sales
|
17.2%
|
|
15.8%
|
|
|
For Information Contact:
Marshall H. Bridges, Vice President and Chief
Financial Officer (563) 272-7400
Jack D. Herring, Treasurer, Director
of Finance and Investor Relations (563) 506-9783
View original
content:http://www.prnewswire.com/news-releases/hni-corporation-reports-earnings-for-third-quarter-fiscal-year-2017-300541523.html
SOURCE HNI Corporation