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Section 1: 8-K (8-K Q2 2018 PRESS RELEASE)

Document






UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
______________________

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934


Date of Report (Date of earliest event reported):  July 23, 2018

HNI Corporation
(Exact name of registrant as specified in charter)


Iowa
1-14225
42-0617510
(State or other jurisdiction
of incorporation)
(Commission File Number)
(IRS Employer
Identification No.)


600 East Second Street, P.O. Box 1109, Muscatine, Iowa  52761-0071
(Address of principal executive offices, including Zip Code)

Registrant’s telephone number, including area code:  (563) 272-7400

N/A
(Former name or former address, if changed since last report)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):

Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))
 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐








Section 2 — Financial Information

Item 2.02    Results of Operations and Financial Condition.
    
On July 23, 2018, HNI Corporation (the "Corporation") issued a press release announcing its financial results for second quarter ended June 30, 2018.  A copy of the press release is attached hereto as Exhibit 99.1.

The information in this Current Report on Form 8-K and the attached Exhibit shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

Section 9 — Financial Statements and Exhibits

Item 9.01          Financial Statements and Exhibits.

Exhibit No.
Description
 
 
99.1









SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


 
 
 
HNI CORPORATION
 
 
Date:
July 23, 2018
 
By
/s/ Marshall H. Bridges
 
 
 
 
Marshall H. Bridges
Senior Vice President and Chief Financial Officer



(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit

HNI Corporation 600 East Second Street, Muscatine, Iowa 52761, Tel 563 272 7400, Fax 563 272 7347, www.hnicorp.com

394322605_hni_logoa01.gif
News Release
                                    
For Information Contact:
Marshall H. Bridges, Senior Vice President and Chief Financial Officer (563) 272-7400
Jack D. Herring, Treasurer, Director of Finance and Investor Relations (563) 506-9783

HNI CORPORATION REPORTS
STRONG SALES GROWTH CONTINUED
DURING SECOND QUARTER FISCAL YEAR 2018

MUSCATINE, Iowa (July 23, 2018) – HNI Corporation (NYSE: HNI) today announced sales for the second quarter ended June 30, 2018 of $543.6 million and net income of $18.6 million. GAAP net income per diluted share was $0.42 compared to $0.31 in the prior year. Non-GAAP net income per diluted share was $0.44 compared to $0.42 in the prior year. GAAP to non-GAAP reconciliations follow the financial statements in this release.

Summary Comments
"Our strong sales momentum continued during the second quarter. Results were better than expected in both our Hearth and Office Furniture businesses. The investments we’ve made in product, selling, and fulfillment capabilities are paying dividends. I’m pleased with our quarterly results and our progress driving long-term shareholder value," said Jeff Lorenger, HNI Corporation President and Chief Executive Officer.


1


HNI Corporation - Financial Performance
(Dollars in millions, except per share data)
 
Three Months Ended
 
 
 
June 30,
2018
 
July 1,
2017
 
Change
GAAP
 
 
 
 
 
Net Sales

$543.6

 

$514.5

 
5.7
%
Gross Profit %
37.0
%
 
35.9
%
 
110
 bps
SG&A %
31.8
%
 
31.6
%
 
20
 bps
Restructuring and impairment charges %
0.2
%
 
0.1
%
 
10
 bps
Operating Income

$27.1

 

$21.6

 
25.0
%
Operating Income %
5.0
%
 
4.2
%
 
80
 bps
Effective Tax Rate
23.9
%
 
32.8
%
 


Net Income %
3.4
%
 
2.7
%
 
70
 bps
EPS – diluted

$0.42

 

$0.31

 
35.5
%
 
 
 
 
 
 
Non-GAAP
 
 
 
 
 
Gross Profit %
37.0
%
 
37.3
%
 
-30
 bps
Operating Income

$28.2

 

$29.3

 
(3.9
%)
Operating Income %
5.2
%
 
5.7
%
 
-50
 bps
EPS – diluted

$0.44

 

$0.42

 
4.8
%

Second Quarter Summary Comments
Consolidated net sales increased $29.1 million or 5.7 percent from the prior year quarter to $543.6 million. On an organic basis, sales increased 8.4 percent. The net impact of closing and divesting small office furniture companies decreased sales $13.2 million 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 increased 110 basis points compared to the prior year quarter. A decline of 30 basis points was primarily driven by increased input costs partially offset by improved price realization. This decline was more than offset by a 140 basis point increase due to lower restructuring and transition costs.
Selling and administrative expenses as a percent of sales increased 20 basis points compared to the prior year quarter. This increase was primarily due to impacts from the Business Systems Transformation initiative and strategic investments, partially offset by higher sales and the impact of closing and divesting small office furniture companies.
Restructuring and impairment charges as a percent of sales increased 10 basis points compared to the prior year quarter. This increase was due to charges incurred in connection with previously announced closures.


2


Office Furniture – Financial Performance
(Dollars in millions)
 
Three Months Ended
 
 
 
June 30,
2018
 
July 1,
2017
 
Change
GAAP
 
 
 
 
 
Net Sales

$423.9

 

$406.4

 
4.3
%
Operating Profit

$20.5

 

$19.7

 
4.2
%
Operating Profit %
4.8
%
 
4.8
%
 

 
 
 
 
 
 
Non-GAAP
 
 
 
 
 
Operating Profit

$20.9

 

$25.4

 
(18.0
%)
Operating Profit %
4.9
%
 
6.3
%
 
-140
 bps

Second quarter office furniture net sales increased $17.4 million or 4.3 percent from the prior year quarter to $423.9 million. On an organic basis, sales increased 7.8 percent driven by increases in the supplies-driven, North American contract, and international businesses. The net impact of closing and divesting small office furniture companies decreased sales $13.2 million compared to the prior year quarter.
Second quarter office furniture GAAP operating profit margin was flat to prior year. A decline of 140 basis points was due to increased input costs, the Business Systems Transformation initiative, and strategic investments, partially offset by improved price realization and the impact of closing and divesting small office furniture companies. This decline was offset by a 140 basis point increase from lower restructuring and transition costs.

Hearth Products – Financial Performance
(Dollars in millions)
 
Three Months Ended
 
 
 
June 30,
2018
 
July 1,
2017
 
Change
GAAP
 
 
 
 
 
Net Sales

$119.7

 

$108.0

 
10.8
%
Operating Profit

$16.3

 

$12.1

 
34.8
%
Operating Profit %
13.6
%
 
11.2
%
 
240
 bps
 
 
 
 
 
 
Non-GAAP
 
 
 
 
 
Operating Profit

$17.1

 

$14.0

 
21.8
%
Operating Profit %
14.3
%
 
13.0
%
 
130
 bps

Second quarter hearth products net sales increased $11.7 million or 10.8 percent from the prior year quarter to $119.7 million driven by increases in the new construction and retail businesses.
Second quarter hearth products GAAP operating profit margin increased 240 basis points. Of this increase, 130 basis points were driven by higher sales volume and improved price realization, partially offset by increased input costs and higher incentive based compensation. The remaining 110 basis points increase was due to lower restructuring and transition costs.


3




Outlook
"We expect to continue generating solid top-line growth in the second half of 2018. I like our competitive position and am excited about our opportunities to grow the business and deliver improved earnings for our shareholders. In the short term, we are experiencing additional headwinds from increasing input costs and timing related to our cost savings and productivity initiatives," said Mr. Lorenger.

The Corporation expects full year organic sales to be up 6 to 8 percent. Including the impact of closing and divesting small office furniture companies, full year sales are expected to be up 3 to 5 percent. The Corporation estimates full year non-GAAP earnings per share to be in the range of $2.35 to $2.55, which excludes restructuring and transition costs. This compares to prior guidance of non-GAAP earnings per share of $2.40 to $2.70. The impact of rising input costs and the slower ramp up of cost savings and productivity initiatives are the primary drivers of the reduced earnings outlook.

For the third quarter, the Corporation expects organic sales to be up 4 to 7 percent compared to the same quarter last year. Including the impact of closing and divesting small office furniture companies, third quarter sales are expected to be up 1 to 4 percent. Third quarter non-GAAP earnings per share are anticipated to be in the range of $0.80 to $0.90, which excludes restructuring and transition costs.


4


Conference Call
HNI Corporation will host a conference call on Tuesday, July 24, 2018 at 10:00 a.m. (Central) to discuss second quarter fiscal year 2018 results. To participate, call 1-877-512-9166 – conference ID number 6183888. 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, July 31, 2018, 10:59 p.m. (Central) by dialing 1-855-859-2056 or 1-404-537-3406 – Conference ID number 6183888.


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. The Corporation sells 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. The Corporation's 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: 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; changes in raw material, component, or commodity pricing; market acceptance and demand for the Corporation's new products; the Corporation's ability to successfully execute its business software system integration; the Corporation's ability to achieve desired results from closures and structural cost reduction initiatives; the Corporation's ability to achieve the anticipated benefits from integrating its acquired businesses and alliances; 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; the impact of recent 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.

5


HNI Corporation and Subsidiaries
Condensed Consolidated Statements of Income
(In thousands, except share and per share data)

(Unaudited)
 
Three Months Ended
 
Six Months Ended
June 30,
2018
 
July 1,
2017
 
June 30,
2018
 
July 1,
2017
Net sales
$
543,614

 
$
514,485

 
$
1,048,683

 
$
992,152

Cost of sales
342,744

 
329,733

 
670,894

 
633,677

Gross profit
200,870

 
184,752

 
377,789

 
358,475

Selling and administrative expenses
172,973

 
162,684

 
344,868

 
326,350

Restructuring and impairment charges
837

 
419

 
2,175

 
2,542

Operating income
27,060

 
21,649

 
30,746

 
29,583

Interest income
89

 
325

 
202

 
396

Interest expense
2,718

 
1,347

 
5,055

 
2,393

Income before income taxes
24,431

 
20,627

 
25,893

 
27,586

Income taxes
5,835

 
6,771

 
4,836

 
8,949

Net income
18,596

 
13,856

 
21,057

 
18,637

Less: Net income (loss) attributable to non-controlling interest
(1
)
 
8

 
(50
)
 
(48
)
Net income attributable to HNI Corporation
$
18,597

 
$
13,848

 
$
21,107

 
$
18,685

 
 
 
 
 
 
 
 
Average number of common shares outstanding – basic
43,665,411

 
44,178,287

 
43,512,691

 
44,114,164

Net income attributable to HNI Corporation per common share – basic
$
0.43

 
$
0.31

 
$
0.49

 
$
0.42

Average number of common shares outstanding – diluted
44,289,662

 
45,305,547

 
44,201,285

 
45,375,451

Net income attributable to HNI Corporation per common share – diluted
$
0.42

 
$
0.31

 
$
0.48

 
$
0.41



6


HNI Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)

(Unaudited)
 
June 30,
2018
 
December 30,
2017
Assets
 
 
 
Current Assets:
 
 
 
   Cash and cash equivalents
$
31,065

 
$
23,348

   Short-term investments
2,260

 
2,015

   Receivables
238,905

 
258,551

   Inventories
185,371

 
155,683

   Prepaid expenses and other current assets
49,801

 
49,283

     Total Current Assets
507,402

 
488,880

 
 
 
 
Property, Plant, and Equipment:
 
 
 
   Land and land improvements
28,469

 
28,593

   Buildings
290,076

 
306,137

   Machinery and equipment
554,414

 
556,571

   Construction in progress
31,722

 
39,788

 
904,681

 
931,089

   Less accumulated depreciation
527,735

 
540,768

     Net Property, Plant, and Equipment
376,946

 
390,321

 
 
 
 
Goodwill and Other Intangible Assets
481,891

 
490,892

 
 
 
 
Deferred Income Taxes
193

 
193

 
 
 
 
Other Assets
21,956

 
21,264

 
 
 
 
     Total Assets
$
1,388,388

 
$
1,391,550

 
 
 
 
Liabilities and Equity
 
 
 
Current Liabilities:
 
 
 
   Accounts payable and accrued expenses
$
409,266

 
$
450,128

   Current maturities of long-term debt
434

 
36,648

   Current maturities of other long-term obligations
3,199

 
2,927

     Total Current Liabilities
412,899

 
489,703

 
 
 
 
Long-Term Debt
296,397

 
240,000

 
 
 
 
Other Long-Term Liabilities
75,928

 
70,409

 
 
 
 
Deferred Income Taxes
77,870

 
76,861

 
 
 
 
Equity:
 
 
 
HNI Corporation shareholders' equity
524,794

 
514,068

Non-controlling interest
500

 
509

 
 
 
 
     Total Equity
525,294

 
514,577

 
 
 
 
     Total Liabilities and Equity
$
1,388,388

 
$
1,391,550



7


HNI Corporation and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)

(Unaudited)
 
Six Months Ended
 
June 30,
2018
 
July 1,
2017
Net cash flows from (to) operating activities
$
29,478

 
$
(27,302
)
Net cash flows from (to) investing activities
(12,716
)
 
(62,023
)
Net cash flows from (to) financing activities
(9,045
)
 
80,161

Net increase (decrease) in cash and cash equivalents
7,717

 
(9,164
)
Cash and cash equivalents at beginning of period
23,348

 
36,312

Cash and cash equivalents at end of period
$
31,065

 
$
27,148



8


HNI Corporation and Subsidiaries
Reportable Segment Data
(In thousands)

(Unaudited)
 
Three Months Ended
 
Six Months Ended
 
June 30,
2018
 
July 1,
2017
 
June 30,
2018
 
July 1,
2017
Net Sales:
 
 
 
 
 
 
 
Office furniture
$
423,878

 
$
406,444

 
$
804,793

 
$
766,425

Hearth products
119,736

 
108,041

 
243,890

 
225,727

Total
$
543,614

 
$
514,485

 
$
1,048,683

 
$
992,152

 
 
 
 
 
 
 
 
Income Before Income Taxes:
 
 
 
 
 
 
 
Office furniture
$
20,519

 
$
19,683

 
$
20,132

 
$
26,127

Hearth products
16,312

 
12,104

 
33,426

 
23,915

General corporate
(9,771
)
 
(10,138
)
 
(22,812
)
 
(20,459
)
Operating Income
27,060

 
21,649

 
30,746

 
29,583

Interest income (expense)
(2,629
)
 
(1,022
)
 
(4,853
)
 
(1,997
)
Total
$
24,431

 
$
20,627

 
$
25,893

 
$
27,586

 
 
 
 
 
 
 
 
Depreciation and Amortization Expense:
 
 
 
 
 
 
 
Office furniture
$
11,204

 
$
12,498

 
$
22,190

 
$
25,383

Hearth products
2,092

 
2,706

 
4,054

 
6,194

General corporate
5,539

 
2,421

 
11,036

 
4,887

Total
$
18,835

 
$
17,625

 
$
37,280

 
$
36,464

 
 
 
 
 
 
 
 
Capital Expenditures (including capitalized software):
 
 
 
 
 
 
 
Office furniture
$
13,420

 
$
16,345

 
$
24,997

 
$
37,365

Hearth products
1,229

 
5,134

 
4,167

 
7,212

General corporate
1,344

 
9,833

 
3,160

 
19,511

Total
$
15,993

 
$
31,312

 
$
32,324

 
$
64,088

 
 
 
 
 
 
 
 
 
 
 
 
 
As of
June 30,
2018
 
As of
December 30, 2017
Identifiable Assets:
 
 
 
 
 
 
 
Office furniture
 
 
 
 
$
822,130

 
$
821,767

Hearth products
 
 
 
 
352,625

 
347,189

General corporate
 
 
 
 
213,633

 
222,594

Total
 
 
 
 
$
1,388,388

 
$
1,391,550



9


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, 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. 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 both years presented include restructuring and transition costs. 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. Specific transactions in second quarter 2018 excluded for purposes of our other non-GAAP financial information included in this earnings release include the impairment of a closed manufacturing facility held for sale.

This earnings release also contains a forward-looking estimate of non-GAAP earnings per diluted share for the next quarter and full 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
 
June 30, 2018
 
July 1, 2017
 
Office Furniture
Hearth
Total
 
Office Furniture
Hearth
Total
Sales as reported (GAAP)
$
423.9

$
119.7

$
543.6

 
$
406.4

$
108.0

$
514.5

% change from PY
4.3
%
10.8
%
5.7
%
 
 
 
 
 
 
 
 
 
 
 
 
Less: Closure and Divestitures



 
13.2


13.2

 
 
 
 
 
 
 
 
Organic Sales (non-GAAP)
$
423.9

$
119.7

$
543.6

 
$
393.3

$
108.0

$
501.3

% change from PY
7.8
%
10.8
%
8.4
%
 
 
 
 

10


HNI Corporation Reconciliation
(Dollars in millions, except per share data)
 
Three Months Ended
June 30, 2018
 
Gross Profit
 
Operating Income
 
Tax
 
Net Income
 
EPS
As reported (GAAP)
$
200.9

 
$
27.1

 
$
5.8

 
$
18.6

 
$
0.42

% of net sales
37.0
%
 
5.0
%
 
 
 
3.4
%
 
 
Tax %
 
 
 
 
23.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring and impairment charges

 
0.8

 
0.2

 
0.6

 
0.02

Transition costs
0.3

 
0.3

 
0.1

 
0.2

 
0.00

 
 
 
 
 
 
 
 
 
 
Results (non-GAAP)
$
201.2

 
$
28.2

 
$
6.1

 
$
19.4

 
$
0.44

% of net sales
37.0
%
 
5.2
%
 
 
 
3.6
%
 
 
Tax %
 
 
 
 
23.9
%
 
 
 
 


HNI Corporation Reconciliation
(Dollars in millions, except per share data)
 
Three Months Ended
July 1, 2017
 
Gross Profit
 
Operating Income
 
Tax
 
Net Income
 
EPS
As reported (GAAP)
$
184.8

 
$
21.6

 
$
6.8

 
$
13.8

 
$
0.31

% of net sales
35.9
%
 
4.2
%
 
 
 
2.7
%
 
 
Tax %
 
 
 
 
32.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges
3.0

 
3.4

 
1.1

 
2.3

 
0.05

Transition costs
4.3

 
4.3

 
1.4

 
2.9

 
0.06

 
 
 
 
 
 
 
 
 
 
Results (non-GAAP)
$
192.1

 
$
29.3

 
$
9.3

 
$
19.0

 
$
0.42

% of net sales
37.3
%
 
5.7
%
 
 
 
3.7
%
 
 
Tax %
 
 
 
 
32.8
%
 
 
 
 


11


Office Furniture Reconciliation
(Dollars in millions)
 
Three Months Ended
 
 
 
June 30,
2018
 
July 1,
2017
 
Percent Change
Operating profit as reported (GAAP)
$
20.5

 
$
19.7

 
4.2
%
% of net sales
4.8
%
 
4.8
%
 
 
 
 
 
 
 
 
Restructuring charges
0.1

 
2.4

 
 
Transition costs
0.3

 
3.3

 
 
 
 
 
 
 
 
Operating profit (non-GAAP)
$
20.9

 
$
25.4

 
(18.0
%)
% of net sales
4.9
%
 
6.3
%
 
 
 
Hearth Products Reconciliation
(Dollars in millions)
 
Three Months Ended
 
 
 
June 30,
2018
 
July 1,
2017
 
Percent Change
Operating profit as reported (GAAP)
$
16.3

 
$
12.1

 
34.8
%
% of net sales
13.6
%
 
11.2
%
 
 
 
 
 
 
 
 
Restructuring and impairment charges
0.7

 
0.9

 
 
Transition costs

 
1.0

 
 
 
 
 
 
 
 
Operating profit (non-GAAP)
$
17.1

 
$
14.0

 
21.8
%
% of net sales
14.3
%
 
13.0
%
 
 


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