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Dec 28, 2019
HNI Q4 2019 Earnings Report
HNI Corporation reported strong profitability for the fourth quarter of fiscal year 2019.
Key Takeaways
HNI Corporation reported Q4 sales of $616 million, up 3% from the previous year. GAAP net income per diluted share was $1.10, compared to $0.73 in the prior year, and non-GAAP net income per diluted share was $1.12, compared to $0.97 in the prior year.
Fourth quarter non-GAAP operating margin expanded 80 basis points year-over-year, driven by solid cost control.
Fourth quarter free cash flow exceeded expectations, strengthening the Corporation’s financial flexibility.
Fiscal year 2020 guidance assumes relatively stable domestic end markets, benefits of annual productivity and cost savings, and significant investments in future growth and margin expansion.
Consolidated net sales increased 3.0% from the prior-year quarter to $616.1 million.
HNI
HNI
HNI Revenue by Segment
Revenue by Segment
Workplace Furnishings Revenue
CapyFin.comResidential Building Products Revenue
CapyFin.com Forward Guidance
The Corporation estimates full year 2020 sales to be $2.30 billion to $2.35 billion, which represents growth of 2.5% to 4.5% versus the prior year. Full year non-GAAP earnings per diluted share is expected to be in the range of $2.60 to $2.90.
Positive Outlook
- Expect solid revenue growth in both Office Furniture and Hearth Products.
- Key markets are showing greater stability
- E-commerce efforts are driving growth
- Recent investments are generating results.
- Expect higher volume and annual productivity and cost savings initiatives to drive improvement in gross profit margin.
Challenges Ahead
- Increasing level of investment in key go-to-market initiatives.
- Operating margin expansion will be less robust over the near-term.
- Tariff challenges
- Choppy demand
- Higher input costs
Revenue & Expenses
Visualization of income flow from segment revenue to net income