HNI Corporation (NYSE: HNI) today announced sales for the
full year ended December 28, 2019 of $2.247 billion and net income
of $111 million. GAAP net income per diluted share was $2.54,
compared to $2.11 in the prior year. Non-GAAP net income per
diluted share was $2.59, compared to $2.41 in the prior year. GAAP
to non-GAAP reconciliations follow the financial statements in this
release.
Fourth quarter sales of $616 million were up 3% from year-ago
levels, and fourth quarter net income was $48 million. GAAP net
income per diluted share was $1.10, compared to $0.73 in the prior
year. Non-GAAP net income per diluted share was $1.12, compared to
$0.97 in the prior year.
Highlights
- Fourth quarter non-GAAP operating margin expanded 80 basis
points year-over-year, driven by solid cost control.
- Fourth quarter free cash flow exceeded expectations,
strengthening the Corporation’s financial flexibility.
- Fiscal year 2020 guidance assumes relatively stable domestic
end markets, benefits of annual productivity and cost savings, and
significant investments in future growth and margin expansion.
Fourth Quarter Summary Comments “Our teams delivered a
strong fourth quarter. We generated our best top line growth rate
of the year and expanded operating margins despite choppy demand
and tariff challenges. Our annual productivity and cost savings
initiatives continue to gain momentum and drive improved
profitability. Overall, our results show the performance our
organization can drive and I am optimistic about what we can
accomplish in the future,” said Jeff Lorenger, HNI Corporation,
Chairman, President, and Chief Executive Officer.
Fourth Quarter - Financial
Performance
(Dollars in millions, except per
share data)
Three Months Ended
December 28, 2019
December 29, 2018
Change
GAAP
Net Sales
$616.1
$598.1
3.0%
Gross Profit %
38.0%
37.4%
60 bps
SG&A %
27.4%
27.9%
-50 bps
Restructuring and impairment charges %
0.2%
2.2%
-200 bps
Operating Income
$63.8
$43.8
45.6%
Operating Income %
10.3%
7.3%
300 bps
Effective Tax Rate
23.1%
22.4%
Net Income %
7.7%
5.4%
230 bps
EPS – diluted
$1.10
$0.73
50.7%
Non-GAAP
Gross Profit %
38.0%
37.5%
50 bps
Operating Income
$64.9
$57.8
12.3%
Operating Income %
10.5%
9.7%
80 bps
EPS – diluted
$1.12
$0.97
15.5%
Fourth Quarter Summary Comments
- Consolidated net sales increased $18.0 million or 3.0% from the
prior-year quarter to $616.1 million. On an organic basis, sales
increased 3.9% or $23.1 million year-over-year. The net impact of
divesting several small office furniture companies decreased sales
$5.1 million or 0.9% compared to the prior-year quarter. A
reconciliation of organic sales, a non-GAAP measure, follows the
financial statements in this release.
- GAAP gross profit margin expanded 60 basis points compared to
the prior-year quarter. On a non-GAAP basis, gross profit margin
expanded 50 basis points year-over-year, driven by price
realization and net productivity, partially offset by lower volume
and higher input costs.
- Selling and administrative expenses as a percent of sales
decreased 50 basis points compared to the prior-year quarter. This
decrease was primarily due to lower core SG&A spend and
leverage from higher net sales, partially offset by higher variable
compensation.
- The Corporation recorded $1.2 million of restructuring costs in
the fourth quarter in connection with structural realignments in
the office furniture segment. In the prior-year quarter, the
Corporation recorded $0.9 million of one-time costs associated with
previously announced facility closures and structural realignments,
as well as a $13.1 million impairment of goodwill, intangibles, and
long-lived assets.
- Non-GAAP net income per diluted share was $1.12 compared to
$0.97 in the prior-year quarter. The $0.15 increase was due to
price realization, net productivity, and lower core SG&A spend,
partially offset by lower volume and higher input costs.
Full Year - Financial
Performance
(Dollars in millions, except per
share data)
Twelve Months Ended
December 28, 2019
December 29, 2018
Change
GAAP
Net Sales
$2,246.9
$2,257.9
(0.5%)
Gross Profit %
37.1%
37.0%
10 bps
SG&A %
30.3%
30.6%
-30 bps
Restructuring and impairment charges %
0.1%
0.7%
-60 bps
Operating Income
$151.3
$128.2
18.1%
Operating Income %
6.7%
5.7%
100 bps
Effective Tax Rate
22.6%
21.4%
Net Income %
4.9%
4.1%
80 bps
EPS – diluted
$2.54
$2.11
20.4%
Non-GAAP
Gross Profit %
37.1%
37.1%
— bps
Operating Income
$153.9
$146.2
5.3%
Operating Income %
6.8%
6.5%
30 bps
EPS – diluted
$2.59
$2.41
7.5%
Full Year Summary Comments
- Consolidated net sales decreased $10.9 million or 0.5% from the
prior year to $2.247 billion. On an organic basis, sales increased
0.5% year-over-year. The net impact of closing and divesting
several small office furniture companies decreased sales $23.1
million or 1.0% compared to the prior year.
- GAAP gross profit margin expanded 10 basis points compared to
the prior year. On a non-GAAP basis, gross profit margin was flat
year-over-year as price realization and net productivity were
offset by lower volume and higher input costs.
- Selling and administrative expenses as a percent of sales
decreased 30 basis points compared to the prior year. This decrease
was primarily due to improved SG&A efficiency.
- The Corporation recorded $2.6 million of costs in the current
year in connection with structural realignments in the office
furniture segment. In the prior year, the Corporation recorded $4.6
million of costs in connection with previously announced facility
closures and structural realignments, as well as net charges of
$13.4 million related to impairments of goodwill, intangibles, and
long-lived assets.
- Non-GAAP net income per diluted share was $2.59, compared to
$2.41 in the prior year. The $0.18 increase was due to price
realization, net productivity, and improved SG&A efficiency,
partially offset by lower volume and higher input costs.
Office Furniture – Financial
Performance
(Dollars in millions)
Three Months Ended
Twelve Months Ended
December 28, 2019
December 29, 2018
Change
December 28, 2019
December 29, 2018
Change
GAAP
Net Sales
$449.4
$429.6
4.6%
$1,697.2
$1,706.1
(0.5%)
Operating Profit
$35.7
$11.1
222.7%
$103.9
$76.0
36.8%
Operating Profit %
7.9%
2.6%
530 bps
6.1%
4.5%
160 bps
Non-GAAP
Operating Profit
$36.9
$26.5
39.0%
$106.5
$94.0
13.3%
Operating Profit %
8.2%
6.2%
200 bps
6.3%
5.5%
80 bps
Fourth Quarter Summary Comments - Office Furniture
- Office furniture net sales increased $19.8 million or 4.6% from
the prior-year quarter to $449.4 million. On an organic basis,
sales increased 5.9%, driven by increases in the supplies and
contract businesses. The net impact of divesting several small
office furniture companies decreased sales $5.1 million or 1.3%
compared to the prior-year quarter.
- Office furniture GAAP operating profit margin expanded 530
basis points versus the prior-year period. On a non-GAAP basis,
segment operating margin expanded 200 basis points year-over-year,
driven by price realization, net productivity, and lower core
SG&A spend, partially offset by lower volume, higher input
costs, and unfavorable product mix.
Full Year Summary Comments - Office Furniture
- Office furniture net sales decreased $8.9 million or 0.5% from
the prior year to $1.697 billion. On an organic basis, sales
increased 0.8% primarily driven by growth in the contract business.
The net impact of closing and divesting several small office
furniture companies decreased sales $23.1 million or 1.3% compared
to the prior year.
- Office furniture GAAP operating profit margin expanded 160
basis points. On a non-GAAP basis, segment operating margin
expanded 80 basis points year-over-year, driven by price
realization, net productivity, and improved SG&A efficiency,
partially offset by lower volume and higher input costs.
Hearth Products – Financial
Performance
(Dollars in millions)
Three Months Ended
Twelve Months Ended
December 28, 2019
December 29, 2018
Change
December 28, 2019
December 29, 2018
Change
GAAP
Net Sales
$166.7
$168.5
(1.1%)
$549.8
$551.8
(0.4%)
Operating Profit
$39.6
$36.1
9.6%
$94.3
$91.4
3.2%
Operating Profit %
23.8%
21.4%
240 bps
17.2%
16.6%
60 bps
Non-GAAP
Operating Profit
$39.6
$36.4
8.6%
$94.3
$93.1
1.3%
Operating Profit %
23.8%
21.6%
220 bps
17.2%
16.9%
30 bps
Fourth Quarter Summary Comments - Hearth Products
- Hearth products net sales decreased $1.8 million or 1.1% from
the prior-year quarter to $166.7 million.
- Hearth products operating profit margin expanded 240 basis
points. On a non-GAAP basis, segment operating margin expanded 220
basis points, driven by price realization, net productivity
benefits, and lower variable compensation, partially offset by
lower volume.
Full Year Summary Comments - Hearth Products
- Hearth products net sales decreased $2.0 million or 0.4% from
the prior year to $549.8 million.
- Hearth products GAAP operating profit margin expanded 60 basis
points. On a non-GAAP basis, segment operating margin expanded 30
basis points year-over-year, driven by price realization, lower
variable compensation, and improved SG&A efficiency, partially
offset by lower volume and higher input costs.
Outlook The Corporation estimates full year 2020 sales to
be $2.30 billion to $2.35 billion, represents growth of 2.5% to
4.5% versus the prior year. Full year non-GAAP earnings
per diluted share is expected to be in the range of $2.60 to
$2.90.
"Looking ahead to 2020, we expect solid revenue growth in both
Office Furniture and Hearth Products. Our key markets are showing
greater stability; our e-commerce efforts are driving growth; and
our recent investments are generating results.
We expect higher volume and our annual productivity and cost
savings initiatives to drive improvement in gross profit margin. In
line with our long-term strategy, we are increasing our level of
investment in key go-to-market initiatives. As a result, operating
margin expansion will be less robust over the near-term. These
initiatives will support top line growth, margin expansion, and
free cash flow generation in the coming years. I am optimistic
about the results we can drive in the future,” said Mr.
Lorenger.
Conference Call HNI Corporation will host a conference
call on Thursday, February 20, 2020 at 10:00 a.m. (Central) to
discuss fourth quarter and fiscal year 2019 results. To
participate, call 1-877-512-9166 – conference ID number 1077266. 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 Thursday, February 27,
2020, 10:59 p.m. (Central) by dialing 1-855-859-2056 or
1-404-537-3406 – Conference ID number 1077266.
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 office furniture
manufacturer and is the nation's leading manufacturer of hearth
products. The Corporation's strong brands have leading positions in
their markets. 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). Forward-looking statements
can be identified by words including "anticipate," "believe,"
"could," "confident," "estimate," "expect," "forecast," "hope,"
"intend," "likely," "may," "plan," "possible," "potential,"
"predict," "project," "should," "will," "would", 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: 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;
impacts of tax legislation; 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 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 Income
(In thousands, except per share
data)
(Unaudited)
Three Months Ended
Twelve Months Ended
December 28, 2019
December 29, 2018
December 28, 2019
December 29, 2018
Net sales
$616,079
$598,092
$2,246,947
$2,257,895
Cost of sales
382,192
374,174
1,413,185
1,422,857
Gross profit
233,887
223,918
833,762
835,038
Selling and administrative expenses
168,969
166,695
680,049
691,140
Restructuring and impairment charges
1,157
13,422
2,371
15,725
Operating income
63,761
43,801
151,342
128,173
Interest expense, net
1,833
2,073
8,628
9,448
Income before income taxes
61,928
41,728
142,714
118,725
Income taxes
14,333
9,366
32,211
25,399
Net income
47,595
32,362
110,503
93,326
Less: Net loss attributable to the
non-controlling interest
0
(1)
(2)
(51)
Net income attributable to HNI
Corporation
$47,595
$32,363
$110,505
$93,377
Average number of common shares
outstanding – basic
42,755
43,708
43,101
43,639
Net income attributable to HNI Corporation
per common share – basic
$1.11
$0.74
$2.56
$2.14
Average number of common shares
outstanding – diluted
43,137
44,311
43,495
44,328
Net income attributable to HNI Corporation
per common share – diluted
$1.10
$0.73
$2.54
$2.11
Foreign currency translation
adjustments
$468
$(1,060)
$61
$(3,004)
Change in unrealized gains (losses) on
marketable securities, net of tax
(1)
75
251
(24)
Change in pension and post-retirement
liability, net of tax
(1,648)
2,701
(2,833)
2,701
Change in derivative financial
instruments, net of tax
159
(1,120)
(1,953)
339
Other comprehensive income (loss), net of
tax
(1,022)
596
(4,474)
12
Comprehensive income
46,573
32,958
106,029
93,338
Less: Comprehensive loss attributable to
non-controlling interest
0
(1)
(2)
(51)
Comprehensive income attributable to HNI
Corporation
$46,573
$32,959
$106,031
$93,389
HNI Corporation and
Subsidiaries
Condensed Consolidated Balance
Sheets
(In thousands)
(Unaudited)
December 28, 2019
December 29, 2018
Assets
Current Assets:
Cash and cash equivalents
$52,073
$76,819
Short-term investments
1,096
1,327
Receivables
274,565
255,207
Inventories
163,465
157,178
Prepaid expenses and other
current assets
37,635
41,352
Total Current
Assets
528,834
531,883
Property, Plant, and Equipment:
Land and land
improvements
29,394
28,377
Buildings
295,517
290,263
Machinery and equipment
581,225
565,884
Construction in progress
20,881
28,443
927,017
912,967
Less accumulated
depreciation
545,510
528,034
Net Property,
Plant, and Equipment
381,507
384,933
Right-of-use Operating / Finance
Leases
75,012
—
Goodwill and Other Intangible Assets
445,709
463,290
Deferred Income Taxes
176
1,569
Other Assets
21,274
20,169
Total Assets
$1,452,512
$1,401,844
Liabilities and Equity
Current Liabilities:
Accounts payable and accrued
expenses
$453,202
$428,865
Current maturities of
long-term debt
790
679
Current maturities of other
long-term obligations
1,931
4,764
Current lease obligations -
Operating / Finance
22,782
—
Total Current
Liabilities
478,705
434,308
Long-Term Debt
174,439
249,355
Long-Term Lease Obligations - Operating /
Finance
59,814
—
Other Long-Term Liabilities
67,990
72,767
Deferred Income Taxes
87,196
82,155
Equity:
HNI Corporation shareholders' equity
584,044
562,933
Non-controlling interest
324
326
Total Equity
584,368
563,259
Total Liabilities
and Equity
$1,452,512
$1,401,844
HNI Corporation and
Subsidiaries
Condensed Consolidated
Statements of Cash Flows
(In thousands)
(Unaudited)
Twelve Months Ended
December 28, 2019
December 29, 2018
Net Cash Flows From (To) Operating
Activities:
Net income
$110,503
$93,326
Non-cash items included in net income:
Depreciation and amortization
77,427
74,788
Other post-retirement and post-employment
benefits
1,475
1,767
Stock-based compensation
6,830
7,317
Operating / finance lease interest and
amortization
22,936
—
Deferred income taxes
6,750
3,197
Loss on sale and retirement of long-lived
assets, net
2,014
16,264
Other – net
3,593
(1,736)
Net increase (decrease) in operating
assets and liabilities, net of divestitures
(3,280)
(10,729)
Increase (decrease) in other
liabilities
(8,868)
2,236
Net cash flows from (to) operating
activities
219,380
186,430
Net Cash Flows From (To) Investing
Activities:
Capital expenditures
(60,826)
(55,648)
Proceeds from sale and license of
property, plant, and equipment, and intangibles
327
23,767
Acquisition spending, net of cash
acquired
—
(2,850)
Capitalized software
(6,059)
(8,048)
Purchase of investments
(6,702)
(2,676)
Sales or maturities of investments
4,845
3,100
Other – net
5,520
1,135
Net cash flows from (to) investing
activities
(62,895)
(41,220)
Net Cash Flows From (To) Financing
Activities:
Payments of long-term debt
(215,934)
(348,987)
Proceeds from long-term debt
141,035
323,075
Dividends paid
(52,232)
(51,085)
Purchase of HNI Corporation common
stock
(83,887)
(30,452)
Proceeds from sales of HNI Corporation
common stock
30,473
19,606
Other – net
(686)
(3,896)
Net cash flows from (to) financing
activities
(181,231)
(91,739)
Net increase (decrease) in cash and cash
equivalents
(24,746)
53,471
Cash and cash equivalents at beginning of
period
76,819
23,348
Cash and cash equivalents at end of
period
$52,073
$76,819
HNI Corporation and
Subsidiaries
Reportable Segment
Data
(In thousands)
(Unaudited)
Three Months Ended
Twelve Months Ended
December 28, 2019
December 29, 2018
December 28, 2019
December 29, 2018
Net Sales:
Office furniture
$449,408
$429,612
$1,697,186
$1,706,092
Hearth products
166,671
168,480
549,761
551,803
Total
$616,079
$598,092
$2,246,947
$2,257,895
Income Before Income Taxes:
Office furniture
$35,714
$11,068
$103,894
$75,965
Hearth products
39,586
36,117
94,329
91,367
General corporate
(11,539)
(3,384)
(46,881)
(39,159)
Operating Income
$63,761
$43,801
$151,342
$128,173
Interest expense, net
1,833
2,073
8,628
9,448
Total
$61,928
$41,728
$142,714
$118,725
Depreciation and Amortization Expense:
Office furniture
$11,348
$11,101
$44,887
$44,303
Hearth products
2,363
2,091
8,884
8,171
General corporate
5,880
5,709
23,656
22,314
Total
$19,591
$18,901
$77,427
$74,788
Capital Expenditures (including
capitalized software):
Office furniture
$11,947
$12,539
$41,137
$47,860
Hearth products
1,446
2,537
12,225
8,854
General corporate
3,301
1,641
13,523
6,982
Total
$16,694
$16,717
$66,885
$63,696
As of December 28, 2019
As of December 29, 2018
Identifiable Assets:
Office furniture
$874,913
$797,574
Hearth products
364,653
352,060
General corporate
212,946
252,210
Total
$1,452,512
$1,401,844
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 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 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, income taxes, net income, and net income per diluted share
(i.e., EPS). These measures are adjusted from the comparable GAAP
measures to exclude the impacts of the selected items as summarized
in the table 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.
The sales adjustments to arrive at our non-GAAP organic sales
information included in this earnings release excludes the impact
of closing and divesting small office furniture companies. The
transactions excluded for purposes of our other non-GAAP financial
information included in this earnings release for all periods
presented include restructuring charges, impairment charges, and/or
transition costs. Restructuring charges incurred in the current
year periods presented are primarily comprised of severance costs
related to a structural realignment in the office furniture
segment. Transition costs incurred in connection with this
realignment include member relocation costs. In the prior-year
periods presented, costs were 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. Prior year restructuring charges include
severance costs, while transition costs incurred include production
move costs. Specific transactions in the prior-year periods include
impairment of closed manufacturing facilities held for sale, a
nonrecurring gain on the recovery of an impaired long-lived asset,
and impairments of goodwill, intangibles, and other long-lived
assets.
This earnings release also contains a forward-looking estimate
of non-GAAP earnings per diluted share for fiscal year 2020. 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
December 28, 2019
December 29, 2018
Office Furniture
Hearth
Total
Office Furniture
Hearth
Total
Sales as reported (GAAP)
$449.4
$166.7
$616.1
$429.6
$168.5
$598.1
% change from PY
4.6%
(1.1%)
3.0%
Less: Impact of Acquisitions and
Divestitures
—
—
—
5.1
—
5.1
Organic Sales (non-GAAP)
$449.4
$166.7
$616.1
$424.4
$168.5
$592.9
% change from PY
5.9%
(1.1%)
3.9%
HNI Corporation
Reconciliation
(Dollars in millions)
Twelve Months Ended
December 28, 2019
December 29, 2018
Office Furniture
Hearth
Total
Office Furniture
Hearth
Total
Sales as reported (GAAP)
$1,697.2
$549.8
$2,246.9
$1,706.1
$551.8
$2,257.9
% change from PY
(0.5%)
(0.4%)
(0.5%)
Less: Impact of Acquisitions and
Divestitures
—
—
—
23.1
—
23.1
Organic Sales (non-GAAP)
$1,697.2
$549.8
$2,246.9
$1,682.9
$551.8
$2,234.8
% change from PY
0.8%
(0.4%)
0.5%
HNI Corporation
Reconciliation
(Dollars in millions, except per
share data)
Three Months Ended
December 28, 2019
Gross Profit
Operating Income
Tax
Net Income
EPS
As reported (GAAP)
$233.9
$63.8
$14.3
$47.6
$1.10
% of net sales
38.0%
10.3%
7.7%
Tax %
23.1%
Restructuring charges
—
1.2
0.3
0.9
0.02
Results (non-GAAP)
$233.9
$64.9
$14.6
$48.5
$1.12
% of net sales
38.0%
10.5%
7.9%
Tax %
23.1%
HNI Corporation
Reconciliation
(Dollars in millions, except per
share data)
Three Months Ended
December 29, 2018
Gross Profit
Operating Income
Tax
Net Income
EPS
As reported (GAAP)
$223.9
$43.8
$9.4
$32.4
$0.73
% of net sales
37.4%
7.3%
5.4%
Tax %
22.4%
Restructuring charges
—
0.3
0.1
0.3
0.01
Impairment charges
—
13.1
3.3
9.7
0.22
Transition costs
0.6
0.6
0.1
0.4
0.01
Results (non-GAAP)
$224.5
$57.8
$12.9
$42.8
$0.97
% of net sales
37.5%
9.7%
7.2%
Tax %
23.2%
HNI Corporation
Reconciliation
(Dollars in millions, except per
share data)
Twelve Months Ended
December 28, 2019
Gross Profit
Operating Income
Tax
Net Income
EPS
As reported (GAAP)
$833.8
$151.3
$32.2
$110.5
$2.54
% of net sales
37.1%
6.7%
4.9%
Tax %
22.6%
Restructuring charges
—
2.4
0.5
1.8
0.04
Transition costs
—
0.2
0.0
0.2
0.00
Results (non-GAAP)
$833.8
$153.9
$32.8
$112.5
$2.59
% of net sales
37.1%
6.8%
5.0%
Tax %
22.6%
HNI Corporation
Reconciliation
(Dollars in millions, except per
share data)
Twelve Months Ended
December 29, 2018
Gross Profit
Operating Income
Tax
Net Income
EPS
As reported (GAAP)
$835.0
$128.2
$25.4
$93.4
$2.11
% of net sales
37.0%
5.7%
4.1%
Tax %
21.4%
Restructuring charges
—
2.3
0.6
1.7
0.04
Impairment charges
—
13.4
3.5
9.9
0.22
Transition costs
2.3
2.3
0.5
1.7
0.04
Results (non-GAAP)
$837.3
$146.2
$30.0
$106.7
$2.41
% of net sales
37.1%
6.5%
4.7%
Tax %
22.0%
Office Furniture
Reconciliation
(Dollars in millions)
Three Months Ended
Twelve Months Ended
December 28, 2019
December 29, 2018
Percent Change
December 28, 2019
December 29, 2018
Percent Change
Operating profit as reported (GAAP)
$35.7
$11.1
222.7%
$103.9
$76.0
36.8%
% of net sales
7.9%
2.6%
6.1%
4.5%
Restructuring charges
1.2
0.2
2.4
1.5
Impairment charges
—
14.9
—
14.9
Transition costs
—
0.4
0.2
1.6
Operating profit (non-GAAP)
$36.9
$26.5
39.0%
$106.5
$94.0
13.3%
% of net sales
8.2%
6.2%
6.3%
5.5%
Hearth Reconciliation
(Dollars in millions)
Three Months Ended
Twelve Months Ended
December 28, 2019
December 29, 2018
Percent Change
December 28, 2019
December 29, 2018
Percent Change
Operating profit as reported (GAAP)
$39.6
$36.1
9.6%
$94.3
$91.4
3.2%
% of net sales
23.8%
21.4%
17.2%
16.6%
Restructuring charges
—
0.2
—
0.8
Impairment charges
—
—
—
0.3
Transition costs
—
0.1
—
0.6
Operating profit (non-GAAP)
$39.6
$36.4
8.6%
$94.3
$93.1
1.3%
% of net sales
23.8%
21.6%
17.2%
16.9%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200219006018/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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