HNI Corporation Provides Update on Q2 Order Trends, Announces Participation in Virtual Investor Events
June 01 2020 - 7:16PM
Business Wire
HNI Corporation (NYSE: HNI) today provided updates on its
response to the ongoing COVID-19 pandemic crisis, recent order
trends, and debt level. The Corporation also announced its
participation in multiple upcoming virtual investor events and
introduced a new investor presentation.
Pandemic Response Update “Our teams remain focused on
protecting the health of our members while effectively managing the
business in these challenging conditions. We have been able to
remain open at our major facilities and meet customer needs. I
would like to recognize our dedicated members, who embody the HNI
spirit in these most challenging circumstances, and who have
remained committed to each other, our communities, and our
customers.
“We also continue to use our facilities to produce personal
protective equipment, which are being sent to first responders,
healthcare systems, and hospitals in our communities. Many of our
ideas for this effort came directly from members, who wanted to see
how we, as an organization, could help. I want to thank our members
for their ingenuity and generosity. Our member-owner culture
continues to shine as we navigate this pandemic, and I am confident
we will emerge a stronger company,” stated Jeff Lorenger, Chairman,
President, and Chief Executive Officer.
The Corporation has elected to provide a mid-quarter update on
orders and debt level to provide its shareholders better visibility
during this period of high uncertainty.
Order Trend Update (Versus Prior-Year Period)
April
May
QTD
Domestic Workplace Furnishings
-36%
-34%
-35%
eCommerce
+184%
+229%
+206%
Residential Building Products
-20%
+1%
-10%
“Recovery to pre-pandemic levels will take some time, but recent
order trends are encouraging given the conditions. We generated
positive order growth in building products during May as builders
worked through their backlogs. Builder commentary and purchase
mortgage applications are also encouraging and point to second half
improvement. Although the recent trends are positive, we do expect
short-term declines in the summer months, consistent with the
recent housing permit data.
Domestic orders in workplace furnishings have stabilized and are
generally showing week-over-week improvement. We expect this trend
to continue as the economy improves and businesses begin to open.
Our e-Commerce business continues to generate strong growth,
primarily from a spike in home office demand,” said Mr.
Lorenger.
Debt Level Update As of May 23, the Corporation’s net
debt totaled $154 million, which was $41 million lower than the
$195 million Q1 2020 balance.
March 28, 2020
May 23, 2020
Cash (a)
$35M
$49M
Total Debt (b)
$230M
$203M
Net Debt (b-a)
$195M
$154M
“Our balance sheet remains strong—reflecting our ability to
generate strong free cash flow even in difficult conditions. Our
teams are tightly managing working capital. The cost actions we
previously announced are on track, and we will emerge from this
crisis as a stronger company,” said Mr. Lorenger.
Upcoming Virtual Investor Events Over the next two weeks,
Marshall Bridges, Senior Vice President and Chief Financial Officer
and Matt McCall, Vice President, Investor Relations and Corporate
Development will participate in multiple virtual investor events,
including:
- The Benchmark Company Early Cyclicals Virtual Video 1x1
Investor Conference Date: Tuesday, June 2nd
- Baird's 2020 Virtual Global Consumer, Technology &
Services Conference Date: Wednesday, June 3rd
- Sidoti & Company, LLC – West Coast Virtual Non-Deal
Roadshow (Portland, Seattle, San Francisco, Los Angeles, San Diego,
Denver, and Salt Lake City) Date: Tuesday, June 9th
New Investor Presentation
Today, an updated investor presentation was posted on the
Corporation’s website at http://www.hnicorp.com (under Investors -
News Releases and Events). The presentation outlines key elements
of the Corporation’s strategy and investment thesis. The
presentation also introduces new reportable segment branding.
Office Furniture becomes Workplace Furnishings, and Hearth Products
is now Residential Building Products. These changes clarify how and
where the Corporation’s products are used and are intended to
reduce confusion.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200601005754/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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