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Mar 28, 2020

HNI Q1 2020 Earnings Report

HNI Corporation reported a net loss for Q1 2020, but non-GAAP EPS increased significantly due to price realization and cost savings initiatives.

Key Takeaways

HNI Corporation reported a decrease in net sales by 2.2% to $468.7 million and a net loss of $23.9 million for the first quarter of 2020. However, non-GAAP EPS increased to $0.21, driven by price realization and cost savings initiatives, despite the impact of the COVID-19 pandemic.

Consolidated net sales decreased by 2.2% year-over-year to $468.7 million.

Gross profit margin expanded by 220 basis points compared to the prior-year quarter.

Non-GAAP operating profit expanded 279 percent from the prior-year quarter.

Hearth Products segment revenue increased 2.6 percent organically from the prior-year quarter.

Total Revenue
$469M
Previous year: $479M
-2.2%
EPS
$0.21
Previous year: $0.02
+950.0%
Gross Profit Margin
37.6%
Previous year: 35.4%
+6.2%
Operating Income %
-5.1%
Previous year: 0.8%
-737.5%
SG&A %
35.6%
Previous year: 34.6%
+2.9%
Gross Profit
$176M
Previous year: $170M
+3.8%
Cash and Equivalents
$35.4M
Previous year: $47.9M
-26.0%
Total Assets
$1.37B
Previous year: $1.42B
-3.8%

HNI

HNI

HNI Revenue by Segment

Forward Guidance

Although volumes and profit levels will be adversely impacted by the pandemic, the company will adjust its business, maintain its long-term focus, and utilize its strong balance sheet to successfully weather this crisis.

Revenue & Expenses

Visualization of income flow from segment revenue to net income