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Section 1: 8-K (8-K Q3 2019 PRESS RELEASE)

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false0000048287 0000048287 2019-10-23 2019-10-23






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):  October 23, 2019

Commission File Number: 1-14225

HNI Corporation

Iowa
 
42-0617510
(State of incorporation)
 
(IRS Employer No.)

600 East Second Street
P. O. Box 1109
Muscatine, Iowa 52761-0071
(563) 272-7400

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))
 
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock
HNI
New York Stock Exchange
 
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 October 23, 2019, HNI Corporation issued a press release announcing its financial results for its third fiscal quarter ended September 28, 2019.  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:
October 23, 2019
 
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

400584833_hni_logoa08.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 EARNINGS
FOR THIRD QUARTER FISCAL YEAR 2019

MUSCATINE, Iowa (October 23, 2019) – HNI Corporation (NYSE: HNI) today announced sales for the third quarter ended September 28, 2019 of $625.4 million and net income of $46.1 million. GAAP net income per diluted share was $1.07 compared to $0.89 in the prior year. Non-GAAP net income per diluted share was $1.08 compared to $0.90 in the prior year. GAAP to non-GAAP reconciliations follow the financial statements in this release.

Third Quarter Summary Comments
"Our teams delivered strong profit growth during the third quarter. The demand environment remains dynamic, and our organization continues to adjust and drive value for shareholders," 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
 
 
 
September 28,
2019
 
September 29,
2018
 
Change
GAAP
 
 
 
 
 
Net Sales

$625.4

 

$611.1

 
2.3
%
Gross Profit %
38.0
%
 
38.2
%
 
-20
 bps
SG&A %
28.3
%
 
29.4
%
 
-110
 bps
Operating Income

$60.7

 

$53.6

 
13.1
%
Operating Income %
9.7
%
 
8.8
%
 
90
 bps
Effective Tax Rate
21.2
%
 
21.9
%
 


Net Income %
7.4
%
 
6.5
%
 
90
 bps
EPS – diluted

$1.07

 

$0.89

 
20.2
%
 
 
 
 
 
 
Non-GAAP
 
 
 
 
 
Gross Profit %
38.0
%
 
38.2
%
 
-20
 bps
Operating Income

$61.1

 

$53.9

 
13.4
%
Operating Income %
9.8
%
 
8.8
%
 
100
 bps
EPS – diluted

$1.08

 

$0.90

 
20.0
%

Third Quarter Summary Comments
Consolidated net sales increased $14.3 million or 2.3 percent from the prior year quarter to $625.4 million. On an organic basis, sales increased 3.1 percent. The net impact of divesting small office furniture companies decreased sales $4.5 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 20 basis points compared to the prior year quarter. This decrease was driven by lower volume and higher input costs, partially offset by price realization and productivity, net of investments.
Selling and administrative expenses as a percent of sales decreased 110 basis points compared to the prior year quarter. This decrease was primarily due to higher net sales and lower core SG&A spend.
Non-GAAP net income per diluted share was $1.08 compared to $0.90 in the prior year quarter.  The $0.18 increase was due to price realization and productivity, net of investments, partially offset by lower sales volume and higher input costs.






2


Office Furniture – Financial Performance
(Dollars in millions)
 
Three Months Ended
 
 
 
September 28,
2019
 
September 29,
2018
 
Change
GAAP
 
 
 
 
 
Net Sales

$484.8

 

$471.7

 
2.8
%
Operating Profit

$51.2

 

$45.7

 
11.9
%
Operating Profit %
10.6
%
 
9.7
%
 
90
 bps
 
 
 
 
 
 
Non-GAAP
 
 
 
 
 
Operating Profit

$51.7

 

$45.7

 
13.0
%
Operating Profit %
10.7
%
 
9.7
%
 
100
 bps

Office furniture net sales increased $13.1 million or 2.8 percent from the prior year quarter to $484.8 million. On an organic basis, sales increased 3.8 percent primarily driven by growth in the contract business. The net impact of divesting small office furniture companies decreased sales $4.5 million compared to the prior year quarter.
Office furniture GAAP operating profit margin increased 90 basis points for the quarter. This increase was driven by improved price realization and productivity, net of investments, partially offset by lower sales volume, higher input costs, and higher restructuring and transition costs.

Hearth Products – Financial Performance
(Dollars in millions)
 
Three Months Ended
 
 
 
September 28,
2019
 
September 29,
2018
 
Change
GAAP
 
 
 
 
 
Net Sales

$140.6

 

$139.4

 
0.9
%
Operating Profit

$23.8

 

$21.8

 
8.9
%
Operating Profit %
16.9
%
 
15.7
%
 
120
 bps
 
 
 
 
 
 
Non-GAAP
 
 
 
 
 
Operating Profit

$23.8

 

$22.1

 
7.5
%
Operating Profit %
16.9
%
 
15.9
%
 
100
 bps

Hearth products net sales increased $1.2 million or 0.9 percent from the prior year quarter to $140.6 million, driven by an increase in the new construction business.
Hearth products GAAP operating profit margin increased 120 basis points for the quarter. This increase was driven by price realization and one-time restructuring and transition costs incurred in the prior year quarter, partially offset by lower sales volume and higher input costs.

3


Outlook
The Corporation expects full year organic sales to be up approximately 1 percent. This compares to the previous organic sales growth expectation of up 1 to 4 percent. The change is primarily driven by lower growth in the contract-driven office furniture business. Including the impact of closing and divesting small office furniture companies, full year sales are expected to be flat to the prior year. The Corporation's estimate of full year non-GAAP earnings per diluted share has narrowed and is expected to be in the range of $2.50 to $2.60 versus the previous guidance range of $2.50 to $2.70.

"We expect continued profit growth in the fourth quarter. Recently, we have seen increasing macro-economic uncertainty slow our growth in the contract business; however, we are confident in our contract competitive position as we come off a strong third quarter. Our outlook for the supplies-driven office furniture and hearth products businesses remains relatively unchanged. We have multiple opportunities in front of us to grow profits and increase long-term shareholder value,” said Mr. Lorenger.





4


Conference Call
HNI Corporation will host a conference call on Thursday, October 24, 2019 at 10:00 a.m. (Central) to discuss third quarter fiscal year 2019 results. To participate, call 1-877-512-9166 – conference ID number 4141358. 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, October 31, 2019, 10:59 p.m. (Central) by dialing 1-855-859-2056 or 1-404-537-3406 – Conference ID number 4141358.


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 “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; 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.

5


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

(Unaudited)
 
Three Months Ended
 
Nine Months Ended
September 28,
2019
 
September 29,
2018
 
September 28,
2019
 
September 29,
2018
Net sales
$
625,386

 
$
611,120

 
$
1,630,868

 
$
1,659,803

Cost of sales
387,715

 
377,789

 
1,030,993

 
1,048,683

Gross profit
237,671

 
233,331

 
599,875

 
611,120

Selling and administrative expenses
176,731

 
179,577

 
511,080

 
524,445

Restructuring and impairment charges
284

 
128

 
1,214

 
2,303

Operating income
60,656

 
53,626

 
87,581

 
84,372

Interest expense, net
2,205

 
2,522

 
6,795

 
7,375

Income before income taxes
58,451

 
51,104

 
80,786

 
76,997

Income taxes
12,375

 
11,197

 
17,878

 
16,033

Net income
46,076

 
39,907

 
62,908

 
60,964

Less: Net loss attributable to non-controlling interest
(2
)
 
0

 
(2
)
 
(50
)
Net income attributable to HNI Corporation
$
46,078

 
$
39,907

 
$
62,910

 
$
61,014

 
 
 
 
 
 
 
 
Average number of common shares outstanding – basic
42,899

 
43,823

 
43,217

 
43,616

Net income attributable to HNI Corporation per common share – basic
$
1.07

 
$
0.91

 
$
1.46

 
$
1.40

Average number of common shares outstanding – diluted
43,186

 
44,679

 
43,620

 
44,349

Net income attributable to HNI Corporation per common share – diluted
$
1.07

 
$
0.89

 
$
1.44

 
$
1.38

 
 
 
 
 
 
 
 
Foreign currency translation adjustments
$
(1,035
)
 
$
(817
)
 
$
(406
)
 
$
(1,944
)
Change in unrealized gains (losses) on marketable securities, net of tax
36

 
(6
)
 
252

 
(99
)
Change in pension and post-retirement liability, net of tax

 

 
(1,185
)
 
0

Change in derivative financial instruments, net of tax
(477
)
 
106

 
(2,112
)
 
1,459

Other comprehensive income (loss), net of tax
(1,476
)
 
(717
)
 
(3,451
)
 
(584
)
Comprehensive income
44,600

 
39,190

 
59,457

 
60,380

Less: Comprehensive loss attributable to non-controlling interest
(2
)
 
0

 
(2
)
 
(50
)
Comprehensive income attributable to HNI Corporation
$
44,602

 
$
39,190

 
$
59,459

 
$
60,430



6



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

(Unaudited)
 
September 28,
2019
 
December 29,
2018
Assets
 
 
 
Current Assets:
 
 
 
   Cash and cash equivalents
$
53,013

 
$
76,819

   Short-term investments
848

 
1,327

   Receivables
271,960

 
255,207

   Inventories
181,922

 
157,178

   Prepaid expenses and other current assets
36,824

 
41,352

     Total Current Assets
544,567

 
531,883

Property, Plant, and Equipment:
 
 
 
   Land and land improvements
29,306

 
28,377

   Buildings
292,902

 
290,263

   Machinery and equipment
574,130

 
565,884

   Construction in progress
22,046

 
28,443

 
918,384

 
912,967

   Less accumulated depreciation
538,303

 
528,034

     Net Property, Plant, and Equipment
380,081

 
384,933

 
 
 
 
Right-of-use Operating / Finance Leases
74,244

 

Goodwill and Other Intangible Assets
449,288

 
463,290

Deferred Income Taxes
286

 
1,569

Other Assets
22,010

 
20,169

     Total Assets
$
1,470,476

 
$
1,401,844

 
 
 
 
Liabilities and Equity
 
 
 
Current Liabilities:
 
 
 
   Accounts payable and accrued expenses
$
435,103

 
$
428,865

   Current maturities of long-term debt
1,440

 
679

   Current maturities of other long-term obligations
1,876

 
4,764

   Current lease obligations - Operating / Finance
21,007

 

     Total Current Liabilities
459,426

 
434,308

 
 
 
 
Long-Term Debt
239,418

 
249,355

Long-Term Lease Obligations - Operating / Finance
61,143

 

Other Long-Term Liabilities
64,356

 
72,767

Deferred Income Taxes
85,788

 
82,155

Equity:
 
 
 
HNI Corporation shareholders' equity
560,022

 
562,933

Non-controlling interest
323

 
326

     Total Equity
560,345

 
563,259

     Total Liabilities and Equity
$
1,470,476

 
$
1,401,844


7


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

(Unaudited)
 
Nine Months Ended
 
September 28,
2019
 
September 29,
2018
Net Cash Flows From (To) Operating Activities:
 
 
 
Net income
$
62,908

 
$
60,964

Non-cash items included in net income:
 
 
 
Depreciation and amortization
57,838

 
55,887

Other post-retirement and post-employment benefits
1,106

 
1,325

Stock-based compensation
5,408

 
6,215

Operating / finance lease interest and amortization
17,252

 

Deferred income taxes
4,798

 
2,733

Loss on sale and retirement of long-lived assets, net
1,609

 
1,283

Other – net
2,864

 
2,314

Net increase (decrease) in operating assets and liabilities, net of divestitures
(28,359
)
 
(16,533
)
Increase (decrease) in other liabilities
(9,802
)
 
849

Net cash flows from (to) operating activities
115,622

 
115,037

 
 
 
 
Net Cash Flows From (To) Investing Activities:
 
 
 
Capital expenditures
(46,093
)
 
(39,887
)
Proceeds from sale of property, plant, and equipment
247

 
22,686

Acquisition spending, net of cash acquired

 
(2,850
)
Capitalized software
(4,098
)
 
(7,092
)
Purchase of investments
(6,140
)
 
(2,471
)
Sales or maturities of investments
3,889

 
2,375

Other – net
2,327

 
1,135

Net cash flows from (to) investing activities
(49,868
)
 
(26,104
)
 
 
 
 
Net Cash Flows From (To) Financing Activities:
 
 
 
Payments of long-term debt
(125,039
)
 
(352,795
)
Proceeds from long-term debt
115,775

 
322,755

Dividends paid
(39,164
)
 
(38,201
)
Purchase of HNI Corporation common stock
(65,106
)
 
(16,043
)
Proceeds from sales of HNI Corporation common stock
22,338

 
15,896

Other – net
1,636

 
(155
)
Net cash flows from (to) financing activities
(89,560
)
 
(68,543
)
 
 
 
 
Net increase (decrease) in cash and cash equivalents
(23,806
)
 
20,390

Cash and cash equivalents at beginning of period
76,819

 
23,348

Cash and cash equivalents at end of period
$
53,013

 
$
43,738



8


HNI Corporation and Subsidiaries
Reportable Segment Data
(In thousands)

(Unaudited)
 
Three Months Ended
 
Nine Months Ended
 
September 28,
2019
 
September 29,
2018
 
September 28,
2019
 
September 29,
2018
Net Sales:
 
 
 
 
 
 
 
Office furniture
$
484,755

 
$
471,687

 
$
1,247,778

 
$
1,276,480

Hearth products
140,631

 
139,433

 
383,090

 
383,323

Total
$
625,386

 
$
611,120

 
$
1,630,868

 
$
1,659,803

 
 
 
 
 
 
 
 
Income Before Income Taxes:
 
 
 
 
 
 
 
Office furniture
$
51,162

 
$
45,721

 
$
68,180

 
$
64,898

Hearth products
23,772

 
21,824

 
54,743

 
55,250

General corporate
(14,278
)
 
(13,919
)
 
(35,342
)
 
(35,776
)
Operating Income
60,656

 
53,626

 
87,581

 
84,372

Interest expense, net
2,205

 
2,522

 
6,795

 
7,375

Total
$
58,451

 
$
51,104

 
$
80,786

 
$
76,997

 
 
 
 
 
 
 
 
Depreciation and Amortization Expense:
 
 
 
 
 
 
 
Office furniture
$
11,232

 
$
11,012

 
$
33,540

 
$
33,202

Hearth products
2,291

 
2,026

 
6,521

 
6,080

General corporate
5,863

 
5,569

 
17,777

 
16,605

Total
$
19,386

 
$
18,607

 
$
57,838

 
$
55,887

 
 
 
 
 
 
 
 
Capital Expenditures (including capitalized software):
 
 
 
 
 
 
 
Office furniture
$
6,524

 
$
10,324

 
$
29,190

 
$
35,321

Hearth products
3,204

 
2,150

 
10,779

 
6,317

General corporate
2,856

 
2,181

 
10,222

 
5,341

Total
$
12,584

 
$
14,655

 
$
50,191

 
$
46,979

 
 
 
 
 
 
 
 
 
 
 
 
 
As of
September 28,
2019
 
As of
December 29,
2018
Identifiable Assets:
 
 
 
 
 
 
 
Office furniture
 
 
 
 
$
872,501

 
$
797,574

Hearth products
 
 
 
 
379,534

 
352,060

General corporate
 
 
 
 
218,441

 
252,210

Total
 
 
 
 
$
1,470,476

 
$
1,401,844



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, 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 divesting small office furniture companies. The transactions excluded for purposes of our other non-GAAP financial information included in this earnings release for both periods presented include restructuring charges, impairment charges, and/or transition costs. Restructuring charges incurred in the current year period presented are primarily comprised of severance costs related to a structural realignment in the office furniture segment. Transition items incurred in connection with this realignment include member relocation costs. In the prior year period presented, costs were incurred as part of the previously announced closures of the hearth manufacturing facility in Paris, Kentucky, the office furniture manufacturing facility in Orleans, Indiana, and structural realignments in China. Restructuring items incurred include severance, while 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 full fiscal year. We provide such non-GAAP measure 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 28, 2019
 
September 29, 2018
 
Office Furniture
Hearth
Total
 
Office Furniture
Hearth
Total
Sales as reported (GAAP)
$
484.8

$
140.6

$
625.4

 
$
471.7

$
139.4

$
611.1

% change from PY
2.8
%
0.9
%
2.3
%
 
 
 
 
 
 
 
 
 
 
 
 
Less: Divestitures



 
4.5


4.5

 
 
 
 
 
 
 
 
Organic Sales (non-GAAP)
$
484.8

$
140.6

$
625.4

 
$
467.2

$
139.4

$
606.6

% change from PY
3.8
%
0.9
%
3.1
%
 
 
 
 



10




HNI Corporation Reconciliation
(Dollars in millions, except per share data)
 
Three Months Ended
September 28, 2019
 
Gross Profit
 
Operating Income
 
Tax
 
Net Income
 
EPS
As reported (GAAP)
$
237.7

 
$
60.7

 
$
12.4

 
$
46.1

 
$
1.07

% of net sales
38.0
%
 
9.7
%
 
 
 
7.4
%
 
 
Tax %
 
 
 
 
21.2
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges

 
0.3

 
0.1

 
0.2

 
0.01

Transition costs

 
0.2

 
0.0

 
0.2

 
0.00

 
 
 
 
 
 
 
 
 
 
Results (non-GAAP)
$
237.7

 
$
61.1

 
$
12.5

 
$
46.5

 
$
1.08

% of net sales
38.0
%
 
9.8
%
 
 
 
7.4
%
 
 
Tax %
 
 
 
 
21.2
%
 
 
 
 


HNI Corporation Reconciliation
(Dollars in millions, except per share data)
 
Three Months Ended
September 29, 2018
 
Gross Profit
 
Operating Income
 
Tax
 
Net Income
 
EPS
As reported (GAAP)
$
233.3

 
$
53.6

 
$
11.2

 
$
39.9

 
$
0.89

% of net sales
38.2
%
 
8.8
%
 
 
 
6.5
%
 
 
Tax %
 
 
 
 
21.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges

 
0.1

 
0.0

 
0.1

 
0.00

Transition costs
0.2

 
0.2

 
0.1

 
0.1

 
0.01

 
 
 
 
 
 
 
 
 
 
Results (non-GAAP)
$
233.5

 
$
53.9

 
$
11.3

 
$
40.1

 
$
0.90

% of net sales
38.2
%
 
8.8
%
 
 
 
6.6
%
 
 
Tax %
 
 
 
 
21.9
%
 
 
 
 





11


Office Furniture Reconciliation
(Dollars in millions)
 
Three Months Ended
 
 
 
September 28,
2019
 
September 29,
2018
 
Percent Change
Operating profit as reported (GAAP)
$
51.2

 
$
45.7

 
11.9
%
% of net sales
10.6
%
 
9.7
%
 
 
 
 
 
 
 
 
Restructuring charges
0.3

 
0.0

 
 
Transition costs
0.2

 
0.0

 
 
 
 
 
 
 
 
Operating profit (non-GAAP)
$
51.7

 
$
45.7

 
13.0
%
% of net sales
10.7
%
 
9.7
%
 
 
 
Hearth Products Reconciliation
(Dollars in millions)
 
Three Months Ended
 
 
 
September 28,
2019
 
September 29,
2018
 
Percent Change
Operating profit as reported (GAAP)
$
23.8

 
$
21.8

 
8.9
%
% of net sales
16.9
%
 
15.7
%
 
 
 
 
 
 
 
 
Restructuring charges

 
0.1

 
 
Transition costs

 
0.2

 
 
 
 
 
 
 
 
Operating profit (non-GAAP)
$
23.8

 
$
22.1

 
7.5
%
% of net sales
16.9
%
 
15.9
%
 
 


12
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