Document

•获益于利润转型计划和协同加速，强劲的收益增长。尽管营收较去年同期下滑，第三季度非通用会计每股收益同比增长11%。整合营业利润率按照通用会计原则和非通用会计原则拓展了220个基点，与去年同期相比，非通用会计营业利润率达到2004年来最高的第三季度水平。非通用会计与通用会计调和表附在本次基本报表中。

•2025年和2026年的盈利前景提高。公司继续预计从kimball international（“KII”）收购协同效应（3000万美元）和其墨西哥工厂的提升（1500万至2000万美元）将为2025-2026年带来4500万至5000万美元的节省。这两个倡议本身将使2026年以前的每股收益增加0.70至0.80美元。预计KII收购带来的总协同效应增加了1000万美元，达到6000万美元，2024年实现3000万美元。

•2025年展望仍然正面；然而预计第四季度将有成交量压力。订单率和预订指标继续令人鼓舞。办公家具订单在第三季度同比增长了百分之一，并在最近几周内有所增强。此外，办公家具2025年的销售渠道同比增长了超过百分之十，预示著更强劲的2025年增长。第三季度住宅建材产品订单同比增长了百分之三，与去年同期持续增长，第四季度初期仍有增长。然而，美国选举和更广泛的宏观环境的不确定性导致许多客户，特别是在办公家具行业，减少了短周期交易性购买，进一步推迟项目。因此，预计第四季度收入将与去年同期相比在两个行业中均出现下降。

「我们的成员再次交出了一季度强劲的盈利增长。我们继续展示我们能够在具挑战性的市场环境中实现盈利增长。第三季度的非通用会计每股收益同比增长了11%，这还要加上一个非常强劲的去年同期比较，当时盈利增长超过30%。我们的第三季度每股收益在过去三年中增加了一倍以上。」

在职场家居部门，我们的利润转型计划和加速KII协同效应推动了部门的非GAAP营业利润率达到了20年来的最高水平，这是第三季。尽管我们第三季的业绩没有受益于顶线增长，预计第四季的营业收入将较去年同期低，订单模式最近显示出改善，预示著2025年更强劲的表现。

在住宅建材业务方面，尽管住房市场波动持续存在，但非GAAP营业利润率在第三季度同比扩大，超过18％。从长远来看，我们对住房市场的前景感到看好，尤其是在我们市场领先的定位和盈利模式。然而，在第四季度，预计住房市场波动和经济不确定性将对年度销售业绩造成压力。



HNI公司 - 第三季财务业绩
(金额单位：百万美元，每股资料均指每股)。
	结束于三个月的期间
	九月二十八日, 2024		九月三十日， 2023		变化
GAAP
净销售额	$672.2		$711.6		(5.5	%)
毛利润 %	41.5	%	40.1	%	140	基点
销售及管理费用 %	31.0	%	31.4	%	-40	基点

重组和减值损失 %	0.2	%	0.7	%	-50	基点
营业收入	$68.9		$56.8		21.3	%
营业收入%	10.2	%	8.0	%	220	基点
有效税率	23.1	%	20.3	%
净利润%	7.1	%	5.3	%	180	基点
每股收益 - 摊薄后	$0.98		$0.80		22.5	%

非美国通用会计准则
毛利润%	41.7	%	40.1	%	160	基点
营业收入	$72.3		$65.2		10.8	%
Operating Income %	10.7	%	9.2	%	150	基点
有效税率	23.1	%	21.4	%
每股收益 - 摊薄后	$1.03		$0.93		10.8	%

•合并净销售额基本报表显示，与去年同期相比，净销售额减少了5.5%，降至67220万美元。在有机基础上，净销售额同比减少了4.5%。2023年第三季度，KII的Poppin业务脱售使年度净销售额减少了770万美元。有机净销售额（一项非通用会计原则指标）与净销售额的调解将在本公告的基本报表后给出。


Workplace Furnishings – Third Quarter Financial Performance
(Dollars in millions)
	Three Months Ended
	September 28, 2024		September 30, 2023		Change
GAAP
Net Sales	$505.1		$536.8		(5.9	%)
Operating Income	$57.7		$47.3		22.1	%
Operating Income %	11.4	%	8.8	%	260	bps

Non-GAAP

Operating Income	$60.0		$53.6		11.9	%
Operating Income %	11.9	%	10.0	%	190	bps

•Workplace Furnishings operating margin of 11.4 percent improved 260 basis points versus the prior-year quarter, driven by improved net productivity and costs associated with the exit of Poppin incurred in the prior-year quarter, partially offset by lower sales volume and current restructuring costs. Third quarter non-GAAP operating profit margin was 11.9 percent, an improvement of 190 basis points year-over-year.


Residential Building Products – Third Quarter Financial Performance
(Dollars in millions)
	Three Months Ended
	September 28, 2024		September 30, 2023		Change
GAAP
Net Sales	$167.1		$174.8		(4.4	%)
Operating Income	$29.9		$30.9		(3.1	%)
Operating Income %	17.9	%	17.7	%	20	bps

Non-GAAP
Operating Income	$31.0		$30.9		0.5	%
Operating Income %	18.6	%	17.7	%	90	bps

•Residential Building Products operating profit margin of 17.9 percent increased 20 basis points year-over-year driven by favorable price-cost, net productivity, and product mix, partially offset by lower sales volume and restructuring charges incurred in the current quarter. Third quarter non-GAAP operating profit margin was 18.6 percent, an improvement of 90 basis points year-over-year.

•Demand environment. For the fourth quarter of 2024, Workplace Furnishings net sales are expected to decrease at a low-to-mid single-digit rate year-over-year. This new outlook reflects the impact of uncertainty around the U.S. elections and the broader macroeconomic environment, which are causing customers to reduce their short cycle transactional purchases and further delay projects. Fourth quarter net sales in the Residential Building Products segment are projected to decline at a low single-digit rate versus the same period in 2023 as incoming orders have been negatively impacted by record-low housing turnover, elevated interest rates, ongoing affordability issues, and economic uncertainty.

•Fourth quarter earnings. Non-GAAP earnings per share in the fourth quarter are expected to decrease from 2023 levels. For the full year, non-GAAP EPS is expected to increase at a rate of 10 percent or more for the third consecutive year, driven by margin expansion in both Workplace Furnishings and Residential Building Products.

•Elevated earnings growth visibility beyond 2024. The Corporation now expects $80 to $85 million of benefits associated with KII synergies ($60 million) and the ramp of its Mexico facility ($20 to $25 million). Both initiatives are currently underway and are providing benefit in 2024. These initiatives also provide visibility to future earnings growth with an estimated $45 to $50 million benefiting the 2025-2026 period.

“While our fourth quarter expectations move lower, we believe the pressures in both segments are temporary and expect improving revenue trends to complement our margin support initiatives and drive continued earnings growth and cash flow generation. Our core areas of focus are unchanged. We will continue to deliver margin expansion in Workplace Furnishings and drive long-term revenue growth in Residential Building Products,” concluded Mr. Lorenger.

HNI Corporation will host a conference call on Tuesday, October 29, 2024 at 10:00 a.m. (Central) to discuss third quarter fiscal year 2024 results. To participate, call 1-855-761-5600 – conference ID number 7175411. Both a live webcast and webcast replay will be available on HNI Corporation’s website at https://investors.hnicorp.com/events-and-presentations.

HNI Corporation (NYSE: HNI) has been improving where people live, work, and gather for more than 75 years. HNI is a manufacturer of workplace furnishings and residential building products, operating under two segments. The Workplace Furnishings segment is a leading global designer and provider of commercial furnishings, going to market under multiple unique brands. The Residential Building Products segment is the nation’s leading manufacturer and marketer of hearth products, which include a full array of gas, electric, wood, and pellet-burning fireplaces, inserts, stoves, facings, and accessories. More information can be found on the Corporation’s website at www.hnicorp.com.

This release contains "forward-looking" statements based on current expectations regarding future plans, events, outlook, objectives, financial performance, expectations for sales growth, and earnings per diluted share (GAAP and non-GAAP), including statements regarding future levels of demand, anticipated macroeconomic conditions, expected differences in seasonality and its effects on the Corporation’s results of operations, the anticipated benefits and cost synergies of the acquisition of Kimball International, and future levels of productivity. Forward-looking statements can be identified by words including “expect,” “believe,” “anticipate,” “estimate,” “may,” “will,” “would,” “could,” “confident”, or other similar words, phrases, or expressions. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Corporation’s actual future results and performance to differ materially from expected results. Actual results could differ materially from those anticipated in the forward-looking statements and from historical results due to the risks and uncertainties described elsewhere in this release and in the Corporation’s filings with the Securities and Exchange Commission, including but not limited to: the Corporation’s ultimate realization of the anticipated benefits of the acquisition of Kimball International; disruptions in the global supply chain; the effects of prolonged periods of inflation and rising interest rates; labor shortages; the levels of office furniture needs

and housing starts; overall demand for the Corporation’s products; general economic and market conditions in the United States and internationally; industry and competitive conditions; the consolidation and concentration of the Corporation’s customers; the Corporation’s reliance on its network of independent dealers; change in trade policy; changes in raw material, component, or commodity pricing; market acceptance and demand for the Corporation’s new products; changing legal, regulatory, environmental, and healthcare conditions; the risks associated with international operations; the potential impact of product defects; the various restrictions on the Corporation’s financing activities; an inability to protect the Corporation’s intellectual property; cybersecurity threats, including those posed by potential ransomware attacks; impacts of tax legislation; and force majeure events outside the Corporation’s control, including those that may result from the effects of climate change. A description of these risks and additional risks can be found in the Corporation’s annual and quarterly reports filed with the Securities and Exchange Commission on Forms 10-K and 10-Q. The Corporation assumes no obligation to update, amend, or clarify forward-looking statements, except as required by applicable law.


	Three Months Ended				Nine Months Ended
	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
Net sales	$	672.2	$	711.6	$	1,883.9	$	1,754.2
Cost of sales	393.4		426.3		1,110.9		1,079.0
Gross profit	278.8		285.3		773.0		675.2
Selling and administrative expenses	208.4		223.3		617.3		602.2

Restructuring and impairment charges	1.6		5.3		3.7		13.4
Operating income	68.9		56.8		151.9		59.6
Interest expense, net	7.1		9.4		22.1		17.5
Income before income taxes	61.8		47.4		129.8		42.1
Income taxes	14.3		9.6		28.6		15.6
Net income	47.5		37.8		101.2		26.5
Less: Net income attributable to non-controlling interest	0.0		0.0		0.0		0.0
Net income attributable to HNI Corporation	$	47.5	$	37.8	$	101.2	$	26.5

Average number of common shares outstanding – basic	47.7		46.6		47.3		43.8
Net income attributable to HNI Corporation per common share – basic	$	1.00	$	0.81	$	2.14	$	0.60
Average number of common shares outstanding – diluted	48.7		47.3		48.4		44.5
Net income attributable to HNI Corporation per common share – diluted	$	0.98	$	0.80	$	2.09	$	0.60

Foreign currency translation adjustments	$	(0.0)	$	(0.2)	$	(0.1)	$	(0.2)
Change in unrealized gains (losses) on marketable securities, net of tax	0.3		(0.0)		0.3		0.1

Change in derivative financial instruments, net of tax	(1.8)		—		(0.0)		(0.1)
Other comprehensive income (loss), net of tax	(1.4)		(0.2)		0.2		(0.2)
Comprehensive income	46.1		37.5		101.4		26.3
Less: Comprehensive income attributable to non-controlling interest	0.0		0.0		0.0		0.0
Comprehensive income attributable to HNI Corporation	$	46.1	$	37.5	$	101.4	$	26.3

(Unaudited)


	September 28, 2024		December 30, 2023
Assets
Current Assets:
Cash and cash equivalents	$	34.3	$	28.9
Short-term investments	5.9		5.6
Receivables	261.1		247.1
Allowance for doubtful accounts	(2.3)		(3.5)
Inventories, net	210.3		196.6
Prepaid expenses and other current assets	52.4		61.3

Total Current Assets	561.7		535.9
Property, Plant, and Equipment:
Land and land improvements	59.4		58.9
Buildings	416.8		406.8
Machinery and equipment	699.4		705.8
Construction in progress	20.7		22.2
	1,196.4		1,193.7
Less accumulated depreciation	(656.9)		(638.5)
Net Property, Plant, and Equipment	539.5		555.2
Right-of-use Finance Leases	12.2		12.2
Right-of-use Operating Leases	107.4		115.2
Goodwill and Other Intangible Assets, net	631.5		651.9

Other Assets	61.2		58.4
Total Assets	$	1,913.4	$	1,928.8
Liabilities and Equity
Current Liabilities:
Accounts payable and accrued expenses	$	431.3	$	418.7
Current maturities of debt	50.9		7.5
Current maturities of other long-term obligations	2.2		7.3
Current lease obligations - Finance	4.9		4.4
Current lease obligations - Operating	25.0		25.9

Total Current Liabilities	514.3		463.7
Long-Term Debt	294.5		428.3
Long-Term Lease Obligations - Finance	7.4		7.9
Long-Term Lease Obligations - Operating	98.3		104.0
Other Long-Term Liabilities	78.8		78.0
Deferred Income Taxes	73.1		85.1
Total Liabilities	1,066.4		1,167.0
Equity:
HNI Corporation shareholders’ equity	846.6		761.4
Non-controlling interest	0.3		0.3
Total Equity	846.9		761.8
Total Liabilities and Equity	$	1,913.4	$	1,928.8


	Nine Months Ended
	September 28, 2024		September 30, 2023
Net Cash Flows From (To) Operating Activities:
Net income	$	101.2	$	26.5
Non-cash items included in net income:
Depreciation and amortization	80.1		68.3
Other post-retirement and post-employment benefits	0.8		0.8
Stock-based compensation	13.7		11.3


Deferred income taxes	(11.7)		(6.0)


Other – net	4.2		5.2
Net increase (decrease) in cash from operating assets and liabilities	(5.1)		63.0
Decrease in other liabilities	(7.8)		(6.7)
Net cash flows from (to) operating activities	175.5		162.5

Net Cash Flows From (To) Investing Activities:
Capital expenditures	(41.2)		(61.9)

Acquisition spending, net of cash acquired	—		(369.7)
Capitalized software	(2.0)		(0.9)
Purchase of investments	(3.1)		(3.8)
Sales or maturities of investments	4.5		4.0
Net proceeds from sale of subsidiary	—		3.1
Other – net	0.2		1.5
Net cash flows from (to) investing activities	(41.7)		(427.6)

Net Cash Flows From (To) Financing Activities:
Payments of debt	(354.0)		(304.3)
Proceeds from debt	262.4		625.3
Dividends paid	(47.9)		(43.5)
Purchase of HNI Corporation common stock	(24.8)		—
Proceeds from sales of HNI Corporation common stock	45.4		1.8
Other – net	(9.6)		(7.1)
Net cash flows from (to) financing activities	(128.5)		272.1



Net increase in cash and cash equivalents	5.3		6.9
Cash and cash equivalents at beginning of period	28.9		17.4
Cash and cash equivalents at end of period	$	34.3	$	24.4


	Three Months Ended				Nine Months Ended
	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
Net Sales:
Workplace furnishings	$	505.1	$	536.8	$	1,425.1	$	1,249.5
Residential building products	167.1		174.8		458.8		504.7
Total	$	672.2	$	711.6	$	1,883.9	$	1,754.2

Income (Loss) Before Income Taxes:
Workplace furnishings	$	57.7	$	47.3	$	138.3	$	59.2
Residential building products	29.9		30.9		71.0		74.5
General corporate	(18.8)		(21.4)		(57.4)		(74.0)

Operating income	68.9		56.8		151.9		59.6
Interest expense, net	7.1		9.4		22.1		17.5
Total	$	61.8	$	47.4	$	129.8	$	42.1

Depreciation and Amortization Expense:
Workplace furnishings	$	18.7	$	16.8	$	54.3	$	41.7
Residential building products	3.6		3.5		10.7		10.2
General corporate	5.0		5.4		15.2		16.4
Total	$	27.3	$	25.6	$	80.1	$	68.3

Capital Expenditures (including capitalized software):
Workplace furnishings	$	11.2	$	18.8	$	29.7	$	50.6
Residential building products	1.7		2.7		6.0		10.1
General corporate	1.6		0.1		7.5		2.1
Total	$	14.5	$	21.6	$	43.2	$	62.8

					As of September 28, 2024		As of December 30, 2023
Identifiable Assets:
Workplace furnishings					$	1,291.5	$	1,311.4
Residential building products					482.4		467.1
General corporate					139.5		150.3
Total					$	1,913.4	$	1,928.8

This earnings release includes certain non-GAAP financial measures as defined by Securities and Exchange Commission Regulation G. Pursuant to the requirements of this regulation, reconciliations of historical non-GAAP financial measures to the most directly comparable historical GAAP measures are included below and throughout this earnings release. This information gives investors additional insights into HNI’s financial performance and operations. While HNI’s management believes the non-GAAP financial measures are useful in evaluating HNI’s operations, this information should be considered supplemental and not in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. In addition, these measures may be different from similarly titled non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes.

To supplement the condensed consolidated financial statements, which are prepared and presented in accordance with GAAP, this earnings release contains the following non-GAAP financial measures: organic net sales and non-GAAP gross profit, operating income, operating profit, income taxes, net income, and net income per diluted share (EPS). These measures are adjusted from the comparable GAAP measures to exclude the impacts of the selected items as summarized in the tables below. Generally, non-GAAP EPS is calculated using HNI’s overall effective tax rate for the period, as this rate is reflective of the tax applicable to most non-GAAP adjustments. In the prior-year quarter, the effective tax rate used to calculate non-GAAP EPS differs from the GAAP effective tax rate due to the impact of nondeductible charges associated with the acquisition of Kimball International.

The sales adjustments to arrive at the non-GAAP organic net sales information presented in this earnings release relate to the exclusion of net sales of Poppin in the prior-year period. The transactions excluded for purposes of other non-GAAP financial information included in this earnings release include: professional fees and other costs related to the acquisition of Kimball International; restructuring charges recorded to cost of sales comprised of accelerated depreciation, asset disposals, inventory valuation adjustments, and relocation and new facility setup costs in the Workplace Furnishings segment; costs associated with the exit of the Poppin business; current period costs associated with factory consolidation initiatives in the Workplace Furnishings segment; current period restructuring activities related to the Residential Building Products segment; and prior period impairment charges in the Workplace Furnishings segment related to an office building and the disposal of information technology assets.

This earnings release refers to our expectations regarding non-GAAP EPS. The Corporation is unable to provide a reconciliation of this forward-looking non-GAAP measure to future EPS without unreasonable effort due to the uncertainty regarding, and to the potential variability of, many of the costs and expenses that could potentially impact EPS calculated on a GAAP basis. These items include, but are not limited to, impairments, financial impacts from changes in legal, regulatory, and tax requirements, charges related to actions taken to improve future profitability, and the impact of acquisitions and divestitures, if any. These items necessary to reconcile forward-looking non-GAAP EPS to EPS could be material and have a significant impact on the Corporation’s results computed in accordance with GAAP.


HNI Corporation Reconciliation
(Dollars in millions)
	Three Months Ended
	September 28, 2024									September 30, 2023
	Workplace Furnishings			Residential Building Products			Total			Workplace Furnishings		Residential Building Products		Total
Net sales as reported (GAAP)	$	505.1		$	167.1		$	672.2		$	536.8	$	174.8	$	711.6
% change from PY	(5.9		%)	(4.4		%)	(5.5		%)


Less: Poppin divestiture	—			—			—			7.7		—		7.7

Organic net sales (non-GAAP)	$	505.1		$	167.1		$	672.2		$	529.2	$	174.8	$	704.0
% change from PY	(4.5		%)	(4.4		%)	(4.5		%)


HNI Corporation Reconciliation
(Dollars in millions, except per share data)
	Three Months Ended
	September 28, 2024
	Gross Profit			Operating Income			Tax			Net Income			EPS
As reported (GAAP)	$	278.8		$	68.9		$	14.3		$	47.5		$	0.98
% of net sales	41.5		%	10.2		%				7.1		%
Tax %							23.1		%

Restructuring charges	1.8			3.4			0.8			2.6			0.05





Results (non-GAAP)	$	280.6		$	72.3		$	15.1		$	50.1		$	1.03
% of net sales	41.7		%	10.7		%				7.5		%
Tax %							23.1		%



HNI Corporation Reconciliation
(Dollars in millions, except per share data)
	Three Months Ended
	September 30, 2023
	Gross Profit			Operating Income			Tax			Net Income			EPS
As reported (GAAP)	$	285.3		$	56.8		$	9.6		$	37.8		$	0.80
% of net sales	40.1		%	8.0		%				5.3		%
Tax %							20.3		%

Restructuring charges	0.3			5.4			1.1			4.2			0.09
Impairment charges	—			0.2			0.0			0.2			0.00


Acquisition costs	—			2.8			1.1			1.7			0.04

Results (non-GAAP)	$	285.6		$	65.2		$	11.9		$	43.9		$	0.93
% of net sales	40.1		%	9.2		%				6.2		%
Tax %							21.4		%



Workplace Furnishings Reconciliation
(Dollars in millions)
	Three Months Ended
	September 28, 2024			September 30, 2023			Percent Change

Operating income as reported (GAAP)	$	57.7		$	47.3		22.1	%
% of net sales	11.4		%	8.8		%

Impairment charges	—			0.2
Restructuring charges	2.3			5.4
Acquisition costs	—			0.8



Operating income (non-GAAP)	$	60.0		$	53.6		11.9	%
% of net sales	11.9		%	10.0		%



Residential Building Products Reconciliation
(Dollars in millions)
	Three Months Ended
	September 28, 2024			September 30, 2023			Percent Change
Operating income as reported (GAAP)	$	29.9		$	30.9		(3.1	%)
% of net sales	17.9		%	17.7		%

Restructuring charges	1.1			—





Operating income (non-GAAP)	$	31.0		$	30.9		0.5	%
% of net sales	18.6		%	17.7		%