HNI HNI Corporation

HNI Corporation (NYSE: HNI) today announced sales for the second quarter ended June 27, 2020 of $417.5 million and net income of $12.6 million. GAAP net income per diluted share was $0.29, compared to $0.36 in the prior year. Non-GAAP net income per diluted share was $0.20, compared to $0.38 in the prior year. GAAP to non-GAAP reconciliations follow the financial statements in this release.

Second Quarter Highlights

• The Corporation delivered solid profits and increased second quarter operating cash flows by $20 million or 49 percent versus the prior year despite pandemic related top-line pressures.
• Residential Building Products segment operating profit increased, and segment operating margin expanded on a year-over-year basis in the second quarter 2020.
• Workplace Furnishings segment generated second quarter 2020 operating profit of nearly $8 million, despite a 25 percent year-over-year contraction on the top line.
• Quarter-ending debt levels were $183 million, equal to a gross leverage ratio of approximately 0.8x. Liquidity, as measured by cash and borrowing availability, at the end of the second quarter was $392 million.

“Our members did a great job of managing through challenging second quarter conditions. We aggressively managed costs and drove productivity—offsetting much of the impact from lower volumes. Our teams stayed focused on our customers—generating and seizing market opportunities. The strength of our strategy, including our diverse revenue streams, price point breadth, channel reach, and lean operating model, along with the dedication of our members, helped demonstrate again what makes HNI unique,” stated Jeff Lorenger, Chairman, President, and Chief Executive Officer.

Salary adjustments

Compensation for HNI members and Board of Directors are being restored to levels existing prior to the reductions announced on April 22, 2020.

“Our members responded in an outstanding manner to this environment, and I am pleased we are able to take this action 60-90 days earlier than we originally anticipated,” continued Mr. Lorenger.

Debt Level Update

As of June 27, 2020, the Corporation’s net debt totaled $157 million (as defined as gross debt of $183 million less cash and cash equivalents of $26 million). At the end of the quarter, the Corporation had $366 million of borrowing capacity under its existing $450 million credit facility. On a gross leverage basis, the quarter-ending level of 0.8x remains well below the Corporation’s debt covenant of 3.5x.

“We generated strong free cash flow in the quarter and further enhanced our already strong balance sheet. We have the financial strength and cost structure to successfully weather this crisis for a prolonged period,” said Mr. Lorenger.

HNI Corporation – Financial Performance

(Dollars in millions, except per share data)

 

Three Months Ended

 

 

 

June 27, 2020

 

June 29, 2019

 

Change

GAAP

 

 

 

 

 

Net Sales

$

417.5

 

 

$

526.0

 

 

(20.6

%)

Gross Profit %

 

36.1

%

 

 

36.6

%

 

-50 bps

 

SG&A %

 

32.6

%

 

 

32.0

%

 

60 bps

 

Restructuring Charges %

 

—

%

 

 

0.2

%

 

 

Operating Income

$

14.8

 

 

$

23.2

 

 

(36.2

%)

Operating Income %

 

3.6

%

 

 

4.4

%

 

-80 bps

 

Effective Tax Rate

 

2.7

%

 

 

23.9

%

 

 

Net Income %

 

3.0

%

 

 

3.0

%

 

— bps

 

EPS – diluted

$

0.29

 

 

$

0.36

 

 

(19.4

%)

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

Gross Profit %

 

36.1

%

 

 

36.6

%

 

-50 bps

 

Operating Income

$

14.8

 

 

$

24.2

 

 

(38.6

%)

Operating Income %

 

3.6

%

 

 

4.6

%

 

-100 bps

 

EPS – diluted

$

0.20

 

 

$

0.38

 

 

(47.4

%)

Second Quarter Summary Comments

• Consolidated net sales decreased 20.6 percent from the prior-year quarter to $417.5 million. On an organic basis, sales decreased 21.2 percent. The impact of acquiring residential building products distributors increased sales $2.9 million compared to the prior-year quarter. A reconciliation of organic sales, a non-GAAP measure, follows the financial statements in this release.
• Gross profit margin decreased 50 basis points compared to the prior-year quarter. This decrease was primarily driven by lower volume, partially offset by price realization and net productivity.
• Selling and administrative expenses as a percent of sales increased 60 basis points compared to prior-year quarter due to lower volume, partially offset by lower core SG&A spend and net productivity.
• Non-GAAP net income per diluted share was $0.20 compared to $0.38 in the prior-year quarter. The $0.18 decrease was primarily due to lower volume, partially offset by lower core SG&A spend, net productivity, and price realization.
• Non-GAAP EPS in the current quarter includes an effective tax rate of 32.5 percent, compared to a GAAP tax rate of 2.7 percent. The higher non-GAAP tax rate is related to timing of the tax impact from one-time charges recorded in first quarter 2020.

Workplace Furnishings – Financial Performance

(Dollars in millions)

 

Three Months Ended

 

 

 

June 27, 2020

 

June 29, 2019

 

Change

GAAP

 

 

 

 

 

Net Sales

$

308.1

 

 

$

409.5

 

 

(24.8

%)

Operating Income

$

7.8

 

 

$

18.7

 

 

(58.5

%)

Operating Income %

 

2.5

%

 

 

4.6

%

 

-210 bps

 

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

Operating Profit

$

7.8

 

 

$

19.7

 

 

(60.4

%)

Operating Profit %

 

2.5

%

 

 

4.8

%

 

-230 bps

 

• Workplace Furnishings net sales decreased 24.8 percent from the prior-year quarter to $308.1 million.
• Workplace Furnishings GAAP operating profit margin decreased 210 basis points versus the prior-year quarter. On a non-GAAP basis, segment operating margin decreased 230 basis points year-over-year driven by lower volume, partially offset by net productivity, lower core SG&A spend, and price realization.

Residential Building Products – Financial Performance

(Dollars in millions)

 

Three Months Ended

 

 

 

June 27, 2020

 

June 29, 2019

 

Change

GAAP

 

 

 

 

 

Net Sales

$

109.4

 

 

$

116.5

 

 

(6.1

%)

Operating Profit

$

14.4

 

 

$

13.4

 

 

7.5

%

Operating Profit %

 

13.1

%

 

 

11.5

%

 

160 bps

 

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

Operating Profit

$

14.4

 

 

$

13.4

 

 

7.5

%

Operating Profit %

 

13.1

%

 

 

11.5

%

 

160 bps

 

• Residential Building Products net sales decreased 6.1 percent from the prior-year quarter to $109.4 million. On an organic basis, sales decreased 8.6 percent. The impact of acquiring building products distributors increased sales $2.9 million compared to the prior-year quarter.
• Residential Building Products operating profit margin expanded 160 basis points, driven by price realization, lower variable compensation, lower core SG&A spend, and net productivity, partially offset by lower volume and unfavorable mix.

Concluding Remarks

“The HNI culture remains the foundation for our success. Together, our members, dealers, suppliers, and communities will continue to overcome the challenges presented by this crisis.

Pandemic-related uncertainty continues to limit visibility and our ability to provide guidance. However, we are seeing a seasonal uptick in sales and do expect third quarter sales and profit to track ahead of second quarter 2020 levels. We have demonstrated we can adapt our cost structure quickly, and our balance sheet is strong. More importantly, we have developed new and better ways to operate our businesses that will serve us well in the future,” Mr. Lorenger concluded.

Conference Call

HNI Corporation will host a conference call on Thursday, July 23, 2020 at 10:00 a.m. (Central) to discuss second quarter fiscal year 2020 results. To participate, call 1-877-512-9166 – conference ID number 6232199. 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 also be made available at that website address. An audio replay of the call will be available until Thursday, July 30, 2020, 10:59 p.m. (Central) by dialing 1-855-859-2056 or 1-404-537-3406 – Conference ID number 6232199.

About HNI Corporation

HNI Corporation (NYSE: HNI) is a manufacturer of workplace furnishings and 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 the expected effects on our business, financial condition and results of operations from the COVID-19 pandemic. 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: the duration and scope of the COVID-19 pandemic, and its effect on people and the economy; 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 Comprehensive Income

(In thousands, except per share data)

(Unaudited)

 

 

Three Months Ended

 

Six Months Ended

June 27, 2020

 

June 29, 2019

 

June 27, 2020

 

June 29, 2019

Net sales

$

417,456

 

 

 

$

526,026

 

 

 

$

886,161

 

 

 

$

1,005,482

 

 

Cost of sales

266,551

 

 

 

333,437

 

 

 

559,238

 

 

 

643,279

 

 

Gross profit

150,905

 

 

 

192,589

 

 

 

326,923

 

 

 

362,203

 

 

Selling and administrative expenses

136,063

 

 

 

168,411

 

 

 

303,148

 

 

 

334,348

 

 

Impairment and restructuring charges

—

 

 

 

930

 

 

 

32,661

 

 

 

930

 

 

Operating income (loss)

14,842

 

 

 

23,248

 

 

 

(8,886

)

 

 

26,925

 

 

Interest expense, net

1,943

 

 

 

2,480

 

 

 

3,754

 

 

 

4,591

 

 

Income (loss) before income taxes

12,899

 

 

 

20,768

 

 

 

(12,640

)

 

 

22,334

 

 

Income taxes

345

 

 

 

4,957

 

 

 

(1,299

)

 

 

5,503

 

 

Net income (loss)

12,554

 

 

 

15,811

 

 

 

(11,341

)

 

 

16,831

 

 

Less: Net income (loss) attributable to non-controlling interest

(2

)

 

 

1

 

 

 

(2

)

 

 

(1

)

 

Net income (loss) attributable to HNI Corporation

$

12,556

 

 

 

$

15,810

 

 

 

$

(11,339

)

 

 

$

16,832

 

 

 

 

 

 

 

 

 

 

Average number of common shares outstanding – basic

42,640

 

 

 

43,218

 

 

 

42,634

 

 

 

43,376

 

 

Net income (loss) attributable to HNI Corporation per common share – basic

$

0.29

 

 

 

$

0.37

 

 

 

$

(0.27

)

 

 

$

0.39

 

 

Average number of common shares outstanding – diluted

42,929

 

 

 

43,634

 

 

 

42,634

 

 

 

43,860

 

 

Net income (loss) attributable to HNI Corporation per common share – diluted

$

0.29

 

 

 

$

0.36

 

 

 

$

(0.27

)

 

 

$

0.38

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

$

45

 

 

 

$

(333

)

 

 

$

(555

)

 

 

$

630

 

 

Change in unrealized gains (losses) on marketable securities, net of tax

244

 

 

 

126

 

 

 

302

 

 

 

216

 

 

Change in pension and post-retirement liability, net of tax

—

 

 

 

—

 

 

 

—

 

 

 

(1,185

)

 

Change in derivative financial instruments, net of tax

(283

)

 

 

(1,327

)

 

 

(2,499

)

 

 

(1,636

)

 

Other comprehensive income (loss), net of tax

6

 

 

 

(1,534

)

 

 

(2,752

)

 

 

(1,975

)

 

Comprehensive income (loss)

12,560

 

 

 

14,277

 

 

 

(14,093

)

 

 

14,856

 

 

Less: Comprehensive income (loss) attributable to non-controlling interest

(2

)

 

 

1

 

 

 

(2

)

 

 

(1

)

 

Comprehensive income (loss) attributable to HNI Corporation

$

12,562

 

 

 

$

14,276

 

 

 

$

(14,091

)

 

 

$

14,857

 

 

 

HNI Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

 

 

June 27, 2020

 

December 28, 2019

Assets

 

 

 

Current Assets:

 

 

 

Cash and cash equivalents

$

26,204

 

 

 

$

52,073

 

 

Short-term investments

2,310

 

 

 

1,096

 

 

Receivables

208,795

 

 

 

278,124

 

 

Allowance for doubtful accounts

(5,778

)

 

 

(3,559

)

 

Inventories

156,647

 

 

 

163,465

 

 

Prepaid expenses and other current assets

42,816

 

 

 

37,635

 

 

Total Current Assets

430,994

 

 

 

528,834

 

 

Property, Plant, and Equipment:

 

 

 

Land and land improvements

29,750

 

 

 

29,394

 

 

Buildings

294,238

 

 

 

295,517

 

 

Machinery and equipment

568,265

 

 

 

581,225

 

 

Construction in progress

22,630

 

 

 

20,881

 

 

 

914,883

 

 

 

927,017

 

 

Less accumulated depreciation

546,036

 

 

 

545,510

 

 

Net Property, Plant, and Equipment

368,847

 

 

 

381,507

 

 

Right-of-use Finance Leases

2,282

 

 

 

2,129

 

 

Right-of-use Operating Leases

76,614

 

 

 

72,883

 

 

Goodwill and Other Intangible Assets

416,317

 

 

 

445,709

 

 

Other Assets

20,309

 

 

 

21,450

 

 

Total Assets

$

1,315,363

 

 

 

$

1,452,512

 

 

Liabilities and Equity

 

 

 

Current Liabilities:

 

 

 

Accounts payable and accrued expenses

$

334,719

 

 

 

$

453,202

 

 

Current maturities of long-term debt

—

 

 

 

790

 

 

Current maturities of other long-term obligations

2,953

 

 

 

1,931

 

 

Current lease obligations - Finance

654

 

 

 

564

 

 

Current lease obligations - Operating

23,266

 

 

 

22,218

 

 

Total Current Liabilities

361,592

 

 

 

478,705

 

 

Long-Term Debt

183,481

 

 

 

174,439

 

 

Long-Term Lease Obligations - Finance

1,639

 

 

 

1,581

 

 

Long-Term Lease Obligations - Operating

60,761

 

 

 

58,233

 

 

Other Long-Term Liabilities

67,337

 

 

 

67,990

 

 

Deferred Income Taxes

87,484

 

 

 

87,196

 

 

Equity:

 

 

 

HNI Corporation shareholders' equity

552,747

 

 

 

584,044

 

 

Non-controlling interest

322

 

 

 

324

 

 

Total Equity

553,069

 

 

 

584,368

 

 

Total Liabilities and Equity

$

1,315,363

 

 

 

$

1,452,512

 

 

 

HNI Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

Six Months Ended

 

June 27, 2020

 

June 29, 2019

Net Cash Flows From (To) Operating Activities:

 

 

 

Net income (loss)

$

(11,341

)

 

 

$

16,831

 

 

Non-cash items included in net income:

 

 

 

Depreciation and amortization

38,605

 

 

 

38,450

 

 

Other post-retirement and post-employment benefits

736

 

 

 

738

 

 

Stock-based compensation

5,659

 

 

 

4,072

 

 

Reduction in carrying amount of right-of-use assets

11,342

 

 

 

11,617

 

 

Deferred income taxes

1,092

 

 

 

1,360

 

 

Impairment of goodwill and intangible assets

32,661

 

 

 

—

 

 

Other – net

(284

)

 

 

3,856

 

 

Net increase (decrease) in operating assets and liabilities, net of divestitures

(49,631

)

 

 

(56,281

)

 

Increase (decrease) in other liabilities

(1,019

)

 

 

(7,876

)

 

Net cash flows from (to) operating activities

27,820

 

 

 

12,767

 

 

 

 

 

 

Net Cash Flows From (To) Investing Activities:

 

 

 

Capital expenditures

(15,739

)

 

 

(34,659

)

 

Proceeds from sale of property, plant, and equipment

69

 

 

 

159

 

 

Acquisition spending, net of cash acquired

(10,857

)

 

 

—

 

 

Capitalized software

(5,037

)

 

 

(2,948

)

 

Purchase of investments

(1,631

)

 

 

(2,459

)

 

Sales or maturities of investments

1,043

 

 

 

1,802

 

 

Other – net

—

 

 

 

2,025

 

 

Net cash flows from (to) investing activities

(32,152

)

 

 

(36,080

)

 

 

 

 

 

Net Cash Flows From (To) Financing Activities:

 

 

 

Payments of long-term debt

(73,828

)

 

 

(40,272

)

 

Proceeds from long-term debt

82,129

 

 

 

76,677

 

 

Dividends paid

(26,040

)

 

 

(26,075

)

 

Purchase of HNI Corporation common stock

(6,764

)

 

 

(57,357

)

 

Proceeds from sales of HNI Corporation common stock

1,294

 

 

 

18,906

 

 

Other – net

1,672

 

 

 

3,397

 

 

Net cash flows from (to) financing activities

(21,537

)

 

 

(24,724

)

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

(25,869

)

 

 

(48,037

)

 

Cash and cash equivalents at beginning of period

52,073

 

 

 

76,819

 

 

Cash and cash equivalents at end of period

$

26,204

 

 

 

$

28,782

 

 

 

HNI Corporation and Subsidiaries

Reportable Segment Data

(In thousands)

(Unaudited)

 

 

Three Months Ended

 

Six Months Ended

 

June 27, 2020

 

June 29, 2019

 

June 27, 2020

 

June 29, 2019

Net Sales:

 

 

 

 

 

 

 

Workplace furnishings

$

308,081

 

 

 

$

409,512

 

 

 

$

646,467

 

 

 

$

763,023

 

 

Residential building products

109,375

 

 

 

116,514

 

 

 

239,694

 

 

 

242,459

 

 

Total

$

417,456

 

 

 

$

526,026

 

 

 

$

886,161

 

 

 

$

1,005,482

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Income Taxes:

 

 

 

 

 

 

 

Workplace furnishings

$

7,785

 

 

 

$

18,749

 

 

 

$

(25,446

)

 

 

$

17,018

 

 

Residential building products

14,365

 

 

 

13,362

 

 

 

35,036

 

 

 

30,970

 

 

General corporate

(7,308

)

 

 

(8,863

)

 

 

(18,476

)

 

 

(21,063

)

 

Operating Income (Loss)

14,842

 

 

 

23,248

 

 

 

(8,886

)

 

 

26,925

 

 

Interest expense, net

1,943

 

 

 

2,480

 

 

 

3,754

 

 

 

4,591

 

 

Total

$

12,899

 

 

 

$

20,768

 

 

 

$

(12,640

)

 

 

$

22,334

 

 

 

 

 

 

 

 

 

 

Depreciation and Amortization Expense:

 

 

 

 

 

 

 

Workplace furnishings

$

10,782

 

 

 

$

11,247

 

 

 

$

22,113

 

 

 

$

22,307

 

 

Residential building products

2,318

 

 

 

2,174

 

 

 

4,624

 

 

 

4,230

 

 

General corporate

6,019

 

 

 

5,989

 

 

 

11,868

 

 

 

11,913

 

 

Total

$

19,119

 

 

 

$

19,410

 

 

 

$

38,605

 

 

 

$

38,450

 

 

 

 

 

 

 

 

 

 

Capital Expenditures (including capitalized software):

 

 

 

 

 

 

 

Workplace furnishings

$

4,293

 

 

 

$

12,347

 

 

 

$

11,394

 

 

 

$

22,666

 

 

Residential building products

206

 

 

 

2,577

 

 

 

3,179

 

 

 

7,575

 

 

General corporate

3,118

 

 

 

3,587

 

 

 

6,203

 

 

 

7,366

 

 

Total

$

7,617

 

 

 

$

18,511

 

 

 

$

20,776

 

 

 

$

37,607

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of June 27, 2020

 

As of December 28, 2019

Identifiable Assets:

 

 

 

 

 

 

 

Workplace furnishings

 

 

 

 

$

741,876

 

 

 

$

874,913

 

 

Residential building products

 

 

 

 

383,642

 

 

 

364,653

 

 

General corporate

 

 

 

 

189,845

 

 

 

212,946

 

 

Total

 

 

 

 

$

1,315,363

 

 

 

$

1,452,512

 

 

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 condensed consolidated financial statements, which are prepared and presented in accordance with GAAP, this earnings release uses the following non-GAAP financial measures: organic sales, gross profit, operating income (loss), operating profit (loss), income taxes, net income (loss), and net income (loss) 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. In the current period, the effective tax rate used to calculate non-GAAP EPS differs from the GAAP effective tax rate due to the timing of the tax impact of one-time charges recorded in first quarter 2020. 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 the non-GAAP organic sales information included in this earnings release excludes the impact of acquiring residential building products distributors. Restructuring charges incurred in the prior year period are primarily comprised of severance costs related to a structural realignment in the Workplace Furnishings segment.

HNI Corporation Reconciliation

(Dollars in millions)

 

Three Months Ended

 

June 27, 2020

 

June 29, 2019

 

Workplace Furnishings

Residential Building Products

Total

 

Workplace Furnishings

Residential Building Products

Total

Sales as reported (GAAP)

$

308.1

 

$

109.4

 

$

417.5

 

 

$

409.5

 

$

116.5

 

$

526.0

 

% change from PY

(24.8

%)

(6.1

%)

(20.6

%)

 

 

 

 

 

 

 

 

 

 

 

 

Less: Acquisitions

—

 

2.9

 

2.9

 

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

Organic Sales (non-GAAP)

$

308.1

 

$

106.5

 

$

414.6

 

 

$

409.5

 

$

116.5

 

$

526.0

 

% change from PY

(24.8

%)

(8.6

%)

(21.2

%)

 

 

 

 

HNI Corporation Reconciliation

(Dollars in millions, except per share data)

 

Three Months Ended June 27, 2020

 

Gross Profit

 

Operating Income

 

Tax

 

Net Income

 

EPS

As reported (GAAP)

$

150.9

 

 

$

14.8

 

 

$

0.3

 

 

$

12.6

 

 

 

$

0.29

 

 

% of net sales

36.1

%

 

3.6

%

 

 

 

3.0

 

%

 

 

Tax %

 

 

 

 

2.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax adjustment

—

 

 

—

 

 

3.8

 

 

(3.8

)

 

 

(0.09

)

 

 

 

 

 

 

 

 

 

 

 

Results (non-GAAP)

$

150.9

 

 

$

14.8

 

 

$

4.2

 

 

$

8.7

 

 

 

$

0.20

 

 

% of net sales

36.1

%

 

3.6

%

 

 

 

2.1

 

%

 

 

Tax %

 

 

 

 

32.5

%

 

 

 

 

HNI Corporation Reconciliation

(Dollars in millions, except per share data)

 

Three Months Ended June 29, 2019

 

Gross Profit

 

Operating Income

 

Tax

 

Net Income

 

EPS

As reported (GAAP)

$

192.6

 

 

$

23.2

 

 

$

5.0

 

 

$

15.8

 

 

$

0.36

 

% of net sales

36.6

%

 

4.4

%

 

 

 

3.0

%

 

 

Tax %

 

 

 

 

23.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring charges

—

 

 

0.9

 

 

0.2

 

 

0.7

 

 

0.02

 

 

 

 

 

 

 

 

 

 

 

Results (non-GAAP)

$

192.6

 

 

$

24.2

 

 

$

5.2

 

 

$

16.5

 

 

$

0.38

 

% of net sales

36.6

%

 

4.6

%

 

 

 

3.1

%

 

 

Tax %

 

 

 

 

23.9

%

 

 

 

 

Workplace Furnishings Reconciliation

(Dollars in millions)

 

Three Months Ended

 

 

 

June 27, 2020

 

June 29, 2019

 

Percent Change

Operating profit as reported (GAAP)

$

7.8

 

 

$

18.7

 

 

(58.5

%)

% of net sales

2.5

%

 

4.6

%

 

 

 

 

 

 

 

 

Restructuring charges

—

 

 

0.9

 

 

 

 

 

 

 

 

 

Operating profit (non-GAAP)

$

7.8

 

 

$

19.7

 

 

(60.4

%)

% of net sales

2.5

%

 

4.8

%

 

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20200722005852/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