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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.
Revenue by Segment
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.
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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