MUSCATINE, Iowa – HNI Corporation announced sales of $588 million and net income of $17.7 million for the first quarter, ended March 30. In a news release Monday, April 29, the workplace furnishings manufacturer’s outlined several financial highlights. They include: Excellent earnings growth. First quarter earnings per share of $0.37 was up considerably on both […]
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MUSCATINE, Iowa – HNI Corporation announced sales of $588 million and net income of $17.7 million for the first quarter, ended March 30.
In a news release Monday, April 29, the workplace furnishings manufacturer’s outlined several financial highlights. They include:
- Excellent earnings growth. First quarter earnings per share of $0.37 was up considerably on both a GAAP and non-GAAP basis versus the prior year despite an 8.1% year-over-year organic revenue decline driven primarily by continued housing market softness.
- Profit transformation actions continue to drive improvement in Workplace Furnishings. First quarter non-GAAP operating profit margin for Workplace Furnishings (excluding impacts from the Kimball International acquisition) expanded 560 basis points year-over-year.
- Solid accretion from Kimball International. Kimball International (KII) generated an operating profit margin of 9.3% and added an estimated $0.10 to non-GAAP EPS.
- Residential Building Products posted solid profit despite a soft housing market. Segment operating profit was $21.4 million with an operating margin of 14.4%.
First quarter highlights
Other first quarter financial highlights included:- Consolidated net sales increased 22.7% from the prior-year quarter to $588 million. On an organic basis, sales decreased 8.1% year-over-year. The acquisition of KII increased year-over-year net sales by $147.5 million.
- Selling and administrative expenses as a percent of sales decreased 50 basis points compared to the prior-year quarter.
- GAAP and non-GAAP net income per diluted share was $0.37 compared to $0.04 and $0.13, respectively, in the prior-year quarter.
- Workplace Furnishings net sales increased 46.8% from the prior-year quarter to $439.8 million. Organic sales decreased 2.5% year-over-year. The impact of the KII acquisition increased sales by $147.5 million over the prior-year quarter.
- Residential Building Products net sales decreased 17.4% from the prior-year quarter to $148.2 million primarily due to housing market weakness, with remodel/retrofit (R&R) sales declining at a higher rate than new construction.
