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Jun 27, 2020
HNI Q2 2020 Earnings Report
HNI Corporation reported earnings for the second quarter of fiscal year 2020.
Key Takeaways
HNI Corporation reported Q2 2020 sales of $417.5 million and net income of $12.6 million. The company managed costs and drove productivity, offsetting much of the impact from lower volumes. They also saw increased operating profit in the Residential Building Products segment and maintained a solid operating profit in the Workplace Furnishings segment.
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.
Revenue by Segment
Forward Guidance
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.
Positive Outlook
- Seeing a seasonal uptick in sales.
- Expect third quarter sales and profit to track ahead of second quarter 2020 levels.
- Demonstrated ability to adapt cost structure quickly.
- Balance sheet is strong.
- Developed new and better ways to operate businesses that will serve us well in the future.
Challenges Ahead
- Pandemic-related uncertainty continues to limit visibility.
- Ability to provide guidance is limited.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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