Core Points - Purple Innovation, Inc. is set to report its third quarter 2025 financial results on November 4, 2025, at approximately 4:05 p.m. ET [1] - A conference call will be held on the same day at 4:30 p.m. ET to discuss the financial results [1]

Financial Data and Key Metrics Changes - Non-GAAP earnings per share increased by 7% year-over-year, reaching $1.10, driven by a record third quarter non-GAAP operating margin of 10.8% [3][5] - Total net sales in the third quarter increased by 3% organically compared to the same period last year [5] - Non-GAAP operating margin expanded by 10 basis points year-over-year, marking the highest EBIT margin for the third quarter [5] Business Line Data and Key Metrics Changes - In the workplace furnishings segment, organic net sales increased by 3% year-over-year, with a non-GAAP segment operating profit margin exceeding 12% [5][6] - Residential building products revenue was roughly unchanged year-over-year, with new construction revenue down slightly and remodel retrofit sales growing modestly [6][7] - Orders in the residential building products segment increased by 2% year-over-year, with remodel retrofit orders up mid-single digits [9] Market Data and Key Metrics Changes - Builder sentiment has weakened recently, reflecting elevated interest rates and affordability issues, with permits moving lower [9][10] - The office space market is showing signs of recovery, with net absorption expected to be the highest since 2019, indicating improved demand for office furniture [12] - 18 of the largest U.S. markets are exceeding pre-pandemic leasing activity, suggesting a positive trend for workplace furnishings [12] Company Strategy and Development Direction - The company remains focused on margin expansion efforts and continued revenue growth while investing for future growth [8][10] - The pending acquisition of Steelcase is expected to create synergies of $120 million and accretion of $1.20 per share when fully mature [19] - The company is optimistic about long-term market fundamentals in residential building products, despite a soft new construction environment [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit non-GAAP EPS growth for the fourth consecutive year, despite ongoing macroeconomic uncertainties [18] - The company anticipates strong results driven by margin expansion and continued volume growth, with a focus on investing in growth initiatives [8][15] - Management highlighted the positive trends in the workplace furnishings market, particularly related to return-to-office dynamics [11][13] Other Important Information - The company expects fourth quarter revenue in workplace furnishings to increase at a high single-digit rate year-over-year, with residential building products also projected to grow at a high single-digit rate [16] - The anticipated post-closing net leverage is expected to approximate 2.1x, with a return to the targeted range of 1x-1.5x within 18-24 months [17] Q&A Session Summary Question: Clarification on Steelcase accretion - The $1.20 of accretion from Steelcase is based on the previously outlined synergies of $120 million, with confidence in achieving this figure [22][24] Question: Update on KI and Mexico contributions - The company expects to recognize $45 million-$50 million from KI and Mexico between 2025 and 2026, with more expected in 2025 than 2026 [25] Question: Industry volume relative to pre-pandemic levels - The company estimates that industry-wide volumes are still down by 30%-35% compared to pre-pandemic levels, indicating potential for mid-single-digit volume growth in the coming years [28][29] Question: Full-year guidance comparison - Revenue expectations for both workplace and residential segments remain in line with prior expectations, with some pressure on product mix and timing of investments [32] Question: Growth potential in residential building products - The company believes it can outperform the market despite a challenging environment, supported by ongoing investments and strong relationships with builders [34][36] Question: Risks associated with Steelcase integration - The company plans to maintain dealer partnerships and brand distribution during the integration, ensuring continued focus on unique brand positions [38][39]

Financial Data and Key Metrics Changes - Non-GAAP earnings per share increased by 7% year over year, reaching $1.10, driven by a record third quarter non-GAAP operating margin of 10.8% [4][5] - Total net sales in the third quarter increased by 3% organically compared to the same period last year [5] - Non-GAAP operating margin expanded by 10 basis points year over year, marking the highest EBIT margin for the third quarter [5] Business Line Data and Key Metrics Changes - In the workplace furnishings segment, organic net sales increased by 3% year over year, with a non-GAAP segment operating profit margin exceeding 12% [5][6] - Residential building products revenue was roughly unchanged year over year, with new construction revenue down slightly and remodel retrofit sales growing modestly [6] - Orders in the residential building products segment increased by 2% year over year, with remodel retrofit orders up mid-single digits [8] Market Data and Key Metrics Changes - Builder sentiment has weakened recently, reflecting elevated interest rates and affordability issues, with permits moving lower [8] - The office space market is showing signs of recovery, with net absorption expected to be the highest since 2019, indicating improved demand for office furniture [11] - 18 of the largest U.S. markets are exceeding pre-pandemic leasing activity, suggesting a positive trend for workplace furnishings [11] Company Strategy and Development Direction - The company remains focused on margin expansion efforts and continued revenue growth while investing for future growth [7][15] - The pending acquisition of Steelcase is expected to create synergies of $120 million and accretion of $1.20 per share when fully mature [19] - The company is optimistic about long-term market fundamentals in residential building products, despite a soft new construction environment [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a fourth consecutive year of double-digit non-GAAP EPS growth, supported by strong third quarter performance and ongoing visibility [18] - The macro and industry backdrops are improving, with expectations for the contract business to benefit from these trends [12] - Management remains cautious about ongoing macro-related risks and tariff-driven volatility but is optimistic about future growth opportunities [18] Other Important Information - The company anticipates fourth quarter revenue in workplace furnishings to increase at a high single-digit rate year over year, with residential building products also projected to grow at a high single-digit rate [16] - The company is committed to maintaining its dividend while investing in business growth [17] Q&A Session Summary Question: Is the $1.20 of accretion from Steelcase considering just the synergies outlined? - Yes, the $120 million in synergies translates to about $1.20 in accretion based on share count [23][25] Question: Where are you in terms of the $0.75 to $0.80 from KI and Mexico? - The company expects to recognize $45 to $50 million between 2025 and 2026, with more expected in 2025 than 2026 [28] Question: How does the current industry volume compare to pre-pandemic levels? - The company estimates that industry-wide volumes are still down by 30% to 35% compared to pre-pandemic levels, but there is potential for mid-single-digit volume growth in the coming years [31][32] Question: Can you compare your full-year guidance with previous expectations? - Revenue expectations remain in line with prior expectations, but there is some pressure on product mix and timing of investments [34][36] Question: How much runway do you have for growth in residential building products? - The company believes it can outperform the market due to ongoing investments and strong relationships with builders [37] Question: What risks are associated with integrating Steelcase? - The company plans to maintain dealer partnerships and brand distribution intact, which should allow for participation in any demand upswing [39]

Third Quarter 2025 Summary Financial Information, Tariff Overview and Restructuring Update October 27, 2025 Forward-Looking Statements Statements in this presentation that are not historical in nature are "forward-looking." These statements are identified by their context or by use of words such as "estimate," "expect," "guidance," "plan," "seek," or the like. These statements include, but are not limited to, guidance; sales, adjusted EPS; operating cash flow; implied adjusted EBIT margin; depreciation and ...

Core Viewpoint - HNI Corporation has announced a definitive agreement to acquire Steelcase, Inc. in a cash and stock transaction, which includes an offer to exchange existing Steelcase Notes for new HNI Notes [1][4]. Acquisition Details - The acquisition is subject to shareholder approvals from both HNI and Steelcase, antitrust approvals, and other customary closing conditions [4]. - HNI has initiated an exchange offer for up to $450,000,000 of existing Steelcase Notes, with a current tender amount of $350,767,000, representing 77.95% of the total [1][8]. Exchange Offer and Consent Solicitation - The expiration date for the exchange offer and related consent solicitation has been extended to December 5, 2025 [2]. - HNI received sufficient consents to amend the existing Steelcase Indenture on October 9, 2025, and the amendments will take effect upon the settlement date of the exchange offer [3]. Conditions and Extensions - The completion of the acquisition is not contingent upon the exchange offer or consent solicitation, but the exchange offer is subject to the acquisition's consummation [4][5]. - If the acquisition is not expected to close by the anticipated settlement date, HNI plans to extend the expiration date accordingly [5]. Eligible Holders and Documentation - The exchange offer and consent solicitation are directed towards "Eligible Holders," defined as qualified institutional buyers or non-U.S. persons outside the United States [9].

Core Insights - Legget & Platt reported revenue of $1.04 billion for the quarter ended September 2025, a decrease of 5.9% year-over-year, with EPS at $0.29 compared to $0.32 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $1.02 billion by 1.18%, while the EPS fell short of the consensus estimate of $0.30 by 3.33% [1] Financial Performance - Organic Sales for Bedding Products decreased by 9%, slightly worse than the average estimate of -8.7% [4] - Organic Sales for Specialized Products decreased by 2%, in line with the average estimate of -2.5% [4] - Overall Organic Sales declined by 4%, better than the average estimate of -5.7% [4] Trade Sales - Trade sales for Furniture, Flooring, and Textile Products were reported at $356.4 million, exceeding the average estimate of $347.31 million, with no year-over-year change [4] - Trade sales for Specialized Products were $277.5 million, surpassing the average estimate of $273.04 million, representing a 7.5% decline year-over-year [4] - Trade sales for Bedding Products were $402.5 million, slightly below the average estimate of $406.4 million, reflecting a 9.7% decrease year-over-year [4] EBIT Performance - EBIT for Bedding Products was reported at $36.4 million, significantly higher than the average estimate of $19.21 million [4] - EBIT for Specialized Products reached $112.9 million, compared to the average estimate of $33.04 million [4] - Adjusted EBIT for Specialized Products was $27 million, slightly above the average estimate of $26.6 million, while Adjusted EBIT for Bedding Products was $26.4 million, exceeding the average estimate of $23.25 million [4]

Core Viewpoint - HNI Corporation has announced a definitive agreement to acquire Steelcase, Inc. in a cash and stock transaction, which includes an exchange offer for existing Steelcase notes [1]. Group 1: Acquisition Details - The acquisition of Steelcase is structured as a cash and stock transaction [1]. - HNI has initiated an offer to exchange up to $450 million of existing Steelcase notes for new HNI notes [1]. - As of October 9, 2025, HNI received consents from holders representing 77.83% of the existing Steelcase notes [2]. Group 2: Exchange Offer and Consent Solicitation - The withdrawal deadline for the exchange offer expired on October 9, 2025, and holders can no longer withdraw their notes [3]. - HNI has received sufficient consents to amend the existing Steelcase indenture, which will become operative upon the settlement date of the exchange offer [4]. - Eligible holders who tender their existing Steelcase notes by the early tender date will receive $1,000 principal amount of new HNI notes plus a consent payment of $2.50 in cash [6]. Group 3: Financial Terms - For each $1,000 principal amount of existing Steelcase notes tendered by the early tender date, holders will receive a total exchange consideration of $1,000 in new HNI notes and a cash payment [6]. - After the early tender date, holders will receive $970 principal amount of new HNI notes without the consent payment [6]. - The total amount of existing Steelcase notes outstanding is $450 million, with $350.23 million tendered by the early tender date, representing 77.83% [7]. Group 4: Settlement and Timing - The settlement date for the exchange offer is expected to occur within five business days after the expiration date [10]. - HNI may extend the expiration date if the acquisition is not expected to close by the anticipated settlement date [10]. Group 5: Company Background - HNI Corporation has been in operation for over 75 years, focusing on workplace furnishings and residential building products [14]. - The company operates under two segments: Workplace Furnishings and Residential Building Products, with a strong market presence in both areas [14].

Group 1 - HNI Corporation is experiencing growth due to strong international and corporate demand, with revenue and adjusted EPS exceeding guidance in the recent quarter [2] - The company has made a significant acquisition of Steelcase in a $2.2 billion transaction, which is expected to create synergies of $120 million annually over the next two years [3] - Strs Ohio has invested approximately $661,000 in HNI Corporation by acquiring 14,900 shares during the first quarter [1] Group 2 - HNI Corporation specializes in furnishings and residential building products primarily in the United States and Canada, and has been operational since 1944 [4]

Core Viewpoint - HNI Corporation has announced a definitive agreement to acquire Steelcase, Inc. in a cash and stock transaction, aiming to enhance customer reach and drive long-term profitable growth through their complementary brand portfolios and dealer networks [1]. Group 1: Acquisition Details - The acquisition is expected to close in the fourth quarter of 2025, subject to customary closing conditions [1]. - On a pro forma basis, the combined company had net sales of approximately $5.7 billion for the year ended December 28, 2024 [1]. Group 2: Exchange Offer - HNI has commenced an offer to exchange any outstanding 5.125% Notes due 2029 issued by Steelcase for up to $450 million aggregate principal amount of new notes to be issued by HNI [2]. - The New HNI Notes will have identical interest rates and maturity dates as the Existing Steelcase Notes [2]. Group 3: Financial Terms - Eligible holders of Existing Steelcase Notes can receive a Consent Payment of $2.50 per $1,000 principal amount, along with an Exchange Consideration of $970 for each $1,000 principal amount of New HNI Notes [3][9]. - The Total Exchange Consideration includes the Consent Payment and Early Tender Payment, which is $1,000 for each $1,000 principal amount of Existing Steelcase Notes [3][9]. Group 4: Consent Solicitation - HNI is soliciting consents to amend the Steelcase indenture to eliminate certain covenants and restrictive provisions [6]. - Eligible holders must validly deliver their related consents to receive the Consent Payment [4][7]. Group 5: Guarantors and Security - The New HNI Notes will be guaranteed by various subsidiaries of the combined company and will be secured by substantially all tangible and intangible assets [12]. - The New HNI Notes will rank equally in right of payment with existing and future indebtedness that is not subordinated [12]. Group 6: Conditions and Timeline - The consummation of the acquisition is conditioned upon shareholder approvals, antitrust approvals, and other customary closing conditions [14]. - The Exchange Offer and Consent Solicitation will expire on October 27, 2025, unless extended [8][10].

Financial Performance - Steelcase Inc. reported second quarter revenue of $897.1 million, a 5% increase from $855.8 million in the prior year. Net income was $35.0 million, or $0.29 per share, down from $63.1 million, or $0.53 per share, in the previous year [1][22][42] - Adjusted earnings per share increased to $0.45 from $0.39 year-over-year [17][29] - Gross margin was 34.4%, approximately flat compared to the prior year despite higher tariff and restructuring costs [6][8] Revenue and Order Growth - Revenue grew 5% year-over-year, with organic revenue growth of 4%. The Americas segment saw a 3% organic growth, while International revenue grew by 13% [3][6] - Orders increased by 6% compared to the prior year, with an 8% growth in the Americas and a 1% decline in International orders [4][6] Business Segments - In the Americas, revenue was $707.1 million, a 3% increase from $688.0 million. The International segment reported revenue of $190.0 million, a 13% increase from $167.8 million [23][24] - Operating income for the Americas was $67.7 million, down from $102.0 million, while the International segment reported an operating loss of $14.6 million [23][24] Merger Agreement - Steelcase entered into a merger agreement with HNI Corporation, with a total consideration of approximately $2.2 billion expected to close by the end of 2025, subject to shareholder and regulatory approvals [2] Operating Expenses and Costs - Operating expenses increased to $247.1 million, up $42.0 million from the prior year, driven by lower gains on the sale of land and merger transaction costs [9][22] - Restructuring costs included $11.9 million in the second quarter, contributing to the decrease in operating income [7][9] Liquidity and Debt - Total liquidity at the end of the second quarter was $426.8 million, a decrease of $80.3 million compared to the prior year. Total debt stood at $447.4 million [11]