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Jan 02, 2021
HNI Q4 2020 Earnings Report
HNI Corporation reported a decrease in sales and earnings for the fourth quarter of 2020.
Key Takeaways
HNI Corporation reported Q4 2020 sales of $562.1 million, a 9% decrease from the previous year. Net income was $22.6 million, with GAAP EPS at $0.52 and non-GAAP EPS at $0.66. The Residential Building Products segment saw double-digit revenue and profit growth, while Workplace Furnishings experienced a decline.
Residential Building Products saw double-digit revenue and profit growth.
Workplace Furnishings segment operating profit exceeded $11 million.
Operating cash flow totaled $71 million for the fourth quarter.
The corporation ended the quarter with $116 million of cash.
HNI
HNI
HNI Revenue by Segment
Revenue by Segment
Workplace Furnishings Revenue
CapyFin.comResidential Building Products Revenue
CapyFin.com Forward Guidance
In the first quarter of 2021, the company expects the conditions experienced last quarter to generally continue.
Positive Outlook
- Residential Building Products revenue: Cyclical strength, secular support, company-specific initiatives, and a strong competitive position will continue to drive revenue growth in this segment.
- Recent trends point to first quarter year-over-year total segment revenue growth rates in the mid-20 percent range.
- Workplace Furnishings revenue: Pandemic-related uncertainty remains and limits the Corporation’s visibility.
- Recent order trends point to continued moderation in year-over-year revenue declines driven by small to mid-sized customers and public sector activity.
- Assuming recent trends continue, first quarter segment revenue, including acquisition impacts, would decline at a year-over-year rate in the high-single digits to low-teens.
Challenges Ahead
- Profitability drivers: The Corporation expects lower first quarter profit margins compared to the prior year due to reduced Workplace Furnishings volume, rising input costs, and higher investment levels.
- Pandemic-related uncertainty remains and limits the Corporation’s visibility.
- However, the precise timing and rate of improvement remain uncertain.
- The Corporation expects lower first quarter profit margins compared to the prior year due to reduced Workplace Furnishings volume
- rising input costs, and higher investment levels.
Revenue & Expenses
Visualization of income flow from segment revenue to net income