HNI (US:HNI)2024-07-25 11:32Financial Performance - HNI Corporation reported net sales of $623.7 million for Q2 2024, a 10.7% increase from $563.5 million in Q2 2023[3][10][14]. - GAAP EPS for Q2 2024 was $0.75, a 44% increase year-over-year, while non-GAAP EPS reached a record $0.79, up 43.6% from $0.55[5][10][14]. - Operating income for Q2 2024 was $53.4 million, compared to a loss of $3.6 million in Q2 2023, marking a significant turnaround[10][14]. - Net income attributable to HNI Corporation for the three months ended June 29, 2024, was $36.0 million, compared to a net loss of $12.8 million for the same period in 2023[32]. - Net income for the six months ended June 29, 2024, was $53.7 million, compared to a loss of $11.3 million in the same period last year[37]. - Consolidated HNI reported a net income of $36.0 million for the three months ended June 29, 2024, with a diluted EPS of $0.75[48]. - For the three months ended July 1, 2023, Consolidated HNI reported a net loss of $12.8 million, with a diluted EPS of $(0.30)[50]. Segment Performance - Workplace Furnishings segment net sales increased 16.3% to $480.2 million, with operating income rising 242% to $54.3 million[15][19]. - Residential Building Products segment net sales decreased 4.6% to $143.5 million, but operating income increased 26.9% to $19.8 million[17][20]. - Workplace furnishings segment net sales increased by 16.3% to $920.0 million, while residential building products decreased by 11.5% to $291.7 million[40]. - The operating income for the Residential Building Products segment increased to $19.8 million for the three months ended June 29, 2024, up from $15.6 million in the prior year[53]. Growth Expectations - The company expects low-single digit revenue growth in Workplace Furnishings and mid-single digit growth in Residential Building Products for the second half of 2024[5][23]. - HNI Corporation anticipates record EPS for 2024, driven by profit transformation initiatives and synergies from the Kimball International acquisition[5][23]. - Full-year non-GAAP earnings per share are expected to increase strongly from 2023, reaching record levels, driven by margin expansion in both segments[26]. Cost Management and Savings - The gross profit margin expanded by 360 basis points to 41.9% in Q2 2024, attributed to improved productivity and the KII acquisition[10][14]. - The company has identified potential net savings of $70 to $75 million from ongoing initiatives, with $45 to $50 million expected to impact 2025 and 2026[5][23]. - The Corporation anticipates $70 to $75 million in savings from KII synergies and the ramp-up of its Mexico facility, with $45 to $50 million of these savings benefiting the 2025 to 2026 period[26]. Cash Flow and Assets - Net cash flows from operating activities were $47.0 million, an increase from $39.8 million in the previous year[37]. - The net cash flows from investing activities were $(26.9) million, a significant decrease from $(410.8) million in the prior year, indicating improved cash management[37]. - Total assets as of June 29, 2024, were $1,940.8 million, an increase from $1,928.8 million as of December 30, 2023[35]. - HNI Corporation's shareholders' equity increased to $787.8 million as of June 29, 2024, compared to $761.4 million as of December 30, 2023[35]. - The Corporation's total liabilities decreased to $1,152.7 million as of June 29, 2024, from $1,167.0 million as of December 30, 2023[35]. Capital Expenditures - Capital expenditures for the six months ended June 29, 2024, totaled $28.7 million, down from $41.2 million in the prior year[40]. - The company paid dividends of $32.1 million during the six months ended June 29, 2024, compared to $28.6 million in the same period last year[37]. Shareholder Information - The average number of common shares outstanding for the three months ended June 29, 2024, was 47.2 million, compared to 43.3 million for the same period in 2023[32]. - The average number of common shares outstanding (diluted) for Consolidated HNI was 48.2 million for the three months ended June 29, 2024[48].