HNI Corporation Reports Fourth Quarter and Fiscal Year 2024 Results
HNI
Full-year EPS grew double-digits for the third consecutive year Q4 EPS surpasses expectations as productivity gains accelerated Strong 2024 EPS—GAAP $2.88 (+164% YoY) / non-GAAP $3.06 (+15% YoY) Full-year operating income margin (GAAP and non-GAAP) reaches highest level since 2005 Elevated EPS visibility through 2026 from initiatives already underway Net sales growth anticipated to return in 2025 in both segments
HNI Corporation (NYSE: HNI) today announced net sales of $2.526 billion and net income of $139.5 million for the full year ended December 28, 2024. Fourth quarter net sales and net income were $642.5 million and $38.3 million, respectively.
Highlights
“Our strong full-year results, in both segments, demonstrate the strength of our strategies and customer-first business model. Our members delivered another year of excellent operational and financial performance. Full-year non-GAAP EPS grew more than 15 percent year-over-year, our third straight year of double-digit earnings growth. Our earnings per share reached a new record in 2024.
“In the Workplace Furnishings segment, our profit transformation plan and recognition of KII synergies delivered 44 percent full-year segment non-GAAP operating profit growth. Segment non-GAAP operating profit margin of 9.5 percent expanded to the highest annual level since 2007. While our fourth quarter profitability was impacted by lower year-on-year net sales, pre-order metrics continue to show improvement, backlog levels are up, and return-to-office plans are gaining momentum, all pointing to a return of net sales growth in 2025. And we are increasingly focusing our investments on driving growth in this segment.
“In Residential Building Products, we expanded segment non-GAAP operating profit margin 50 basis points for the full year, despite a challenging housing market that impacted net sales in the fourth quarter and fiscal year. Our results demonstrate the dedication of our members and strength of our business model. We believe in the long-term opportunities tied to the broader housing market, and in the strength of our market-leading positions and profitable operating model. And we continue to invest accordingly.
“Again in 2024, we demonstrated our ability to manage through all parts of the economic cycle. And we expect continued strong results going forward, driven largely by our margin expansion efforts. However, ongoing economic volatility—tied to tariff uncertainty and rising inflation expectations, still-elevated interest rates, and weaker consumer sentiment—points to ongoing demand volatility in 2025,” stated Jeff Lorenger, Chairman, President, and Chief Executive Officer.
HNI Corporation — Fourth Quarter Results
HNI Corporation – Fourth Quarter Financial Performance
(Dollars in millions, except per share data)
Three Months Ended
December 28,
2024
December 30,
2023
Change
GAAP
Net Sales
$
642.5
$
679.8
(5.5
%)
Gross Profit %
40.5
%
40.2
%
30 bps
SG&A %
31.6
%
31.0
%
60 bps
Restructuring and Impairment Charges %
0.4
%
4.6
%
-420 bps
Operating Income
$
54.6
$
30.7
78.0
%
Operating Income %
8.5
%
4.5
%
400 bps
Effective Tax Rate
22.5
%
0.0
%
Net Income %
6.0
%
3.3
%
270 bps
EPS – diluted
$
0.79
$
0.48
64.6
%
Non-GAAP
Gross Profit %
40.9
%
40.2
%
70 bps
Operating Income
$
59.7
$
66.1
(9.7
%)
Operating Income %
9.3
%
9.7
%
-40 bps
Effective Tax Rate
22.5
%
19.5
%
EPS – diluted
$
0.87
$
0.98
(11.2
%)
HNI Corporation — Fourth Quarter Summary Comments
HNI Corporation — Full-Year Results
HNI Corporation — Full-Year Financial Performance
(Dollars in millions, except per share data)
Twelve Months Ended
December 28,
2024
December 30,
2023
Change
GAAP
Net Sales
$
2,526.4
$
2,434.0
3.8
%
Gross Profit %
40.9
%
39.0
%
190 bps
SG&A %
32.5
%
33.4
%
-90 bps
Restructuring and Impairment Charges %
0.2
%
1.8
%
-160 bps
Operating Income
$
206.5
$
90.3
129
%
Operating Income %
8.2
%
3.7
%
450 bps
Effective Tax Rate
22.2
%
24.1
%
Net Income %
5.5
%
2.0
%
350 bps
EPS – diluted
$
2.88
$
1.09
164
%
Non-GAAP
Gross Profit %
41.1
%
39.0
%
210 bps
Operating Income
$
217.8
$
178.1
22.3
%
Operating Income %
8.6
%
7.3
%
130 bps
Effective Tax Rate
22.2
%
21.3
%
EPS – diluted
$
3.06
$
2.65
15.5
%
The following table presents results for (1) the Corporation’s legacy business, excluding the impacts of KII (“Legacy HNI”) and (2) KII. Please refer to non-GAAP reconciliations, which follow the financial statements in this release for further information on the adjustments made to calculate non-GAAP performance.
HNI Corporation – Full-Year Impact of Kimball International Acquisition
(Dollars in millions, except per share data)
Twelve Months Ended
December 28, 2024
December 30, 2023
GAAP
Legacy HNI
KII
Consolidated HNI
Legacy HNI
KII*
Consolidated HNI*
Net Sales
$
1,932.0
$
594.4
$
2,526.4
$
2,072.6
$
361.4
$
2,434.0
Gross Profit
$
791.1
$
242.3
$
1,033.4
$
798.6
$
149.6
$
948.3
Gross Profit %
40.9
%
40.8
%
40.9
%
38.5
%
41.4
%
39.0
%
Restructuring and Impairment
$
5.9
$
0.3
$
6.2
$
35.8
$
9.0
$
44.8
Operating Income
$
138.6
$
67.9
$
206.5
$
78.9
$
11.3
$
90.3
Operating Income %
7.2
%
11.4
%
8.2
%
3.8
%
3.1
%
3.7
%
EPS - diluted
$
2.88
$
1.09
Non-GAAP
Gross Profit
$
795.4
$
243.0
$
1,038.4
$
799.5
$
149.6
$
949.2
Gross Profit %
41.2
%
40.9
%
41.1
%
38.6
%
41.4
%
39.0
%
Operating Income
$
148.9
$
68.9
$
217.8
$
145.3
$
32.8
$
178.1
Operating Income %
7.7
%
11.6
%
8.6
%
7.0
%
9.1
%
7.3
%
EPS - diluted
$
2.55
$
3.06
$
2.50
$
2.65
*2023 fiscal year results reflect seven months of KII and approximately three and a half months of KII's Poppin business that was divested in the third quarter of 2023.
HNI Corporation — Full-Year Summary Comments
Workplace Furnishings — Fourth Quarter and Full-Year Results
Workplace Furnishings – Financial Performance
(Dollars in millions)
Three Months Ended
Twelve Months Ended
December 28,
2024
December 30,
2023
Change
December 28,
2024
December 30,
2023
Change
GAAP
Net Sales
$
462.9
$
490.7
(5.7
%)
$
1,888.0
$
1,740.3
8.5
%
Operating Income
$
30.7
$
9.5
225
%
$
169.1
$
68.6
146
%
Operating Income %
6.6
%
1.9
%
470 bps
9.0
%
3.9
%
510 bps
Non-GAAP
Operating Income
$
35.7
$
40.4
(11.4
%)
$
179.2
$
124.5
44.0
%
Operating Income %
7.7
%
8.2
%
-50 bps
9.5
%
7.2
%
230 bps
The following tables present results for (1) the Corporation’s legacy workplace furnishings business, excluding the impacts of KII (“Legacy Workplace”) and (2) KII. Please refer to non-GAAP reconciliations, which follow the financial statements in this release for further information on the adjustments made to calculate non-GAAP performance.
Workplace Furnishings – Full-Year Impact of Kimball International Acquisition
(Dollars in millions)
Twelve Months Ended
December 28, 2024
December 30, 2023
GAAP
Legacy
Workplace
KII
Total
Workplace
Legacy
Workplace
KII*
Total
Workplace*
Net Sales
$
1,293.6
$
594.4
$
1,888.0
$
1,378.8
$
361.4
$
1,740.3
Operating Income
$
101.2
$
67.9
$
169.1
57.3
11.3
$
68.6
Operating Income %
7.8
%
11.4
%
9.0
%
4.2
%
3.1
%
3.9
%
Non-GAAP
Operating Income
$
110.3
$
68.9
$
179.2
$
91.6
$
32.8
$
124.5
Operating Income %
8.5
%
11.6
%
9.5
%
6.6
%
9.1
%
7.2
%
*2023 fiscal year results reflect seven months of KII and approximately three and a half months of KII's Poppin business that was divested in the third quarter of 2023.
Workplace Furnishings — Fourth Quarter Summary Comments
Workplace Furnishings — Full-Year Summary Comments
Residential Building Products — Fourth Quarter and Full-Year Results
Residential Building Products – Financial Performance
(Dollars in millions)
Three Months Ended
Twelve Months Ended
December 28,
2024
December 30,
2023
Change
December 28,
2024
December 30,
2023
Change
GAAP
Net Sales
$
179.6
$
189.1
(5.0
%)
$
638.4
$
693.7
(8.0
%)
Operating Income
$
39.8
$
42.1
(5.5
%)
$
110.8
$
116.6
(5.0
%)
Operating Income %
22.2
%
22.3
%
-10 bps
17.4
%
16.8
%
60 bps
Non-GAAP
Operating Income
$
39.8
$
42.1
(5.5
%)
$
111.9
$
117.8
(5.0
%)
Operating Income %
22.2
%
22.3
%
-10 bps
17.5
%
17.0
%
50 bps
Residential Building Products — Fourth Quarter Summary Comments
Residential Building Products — Full-Year Summary Comments
Fourth Quarter Orders
Outlook
Concluding Remarks
“Over the last three years, our strategies and the dedication of our members have driven non-GAAP EPS growth of nearly 90 percent and expanded consolidated operating margin by 400 basis points despite an unstable macroeconomic environment. In Workplace Furnishings, our profit transformation initiatives and the addition of Kimball International have expanded operating margin more than 800 basis points, and segment operating profit has grown $165 million from 2021 levels. Our ongoing profit transformation initiatives and expectations of improving net sales growth point to continued year-over-year profit and margin improvement.
“In Residential Building Products, we have effectively managed our cost structure to navigate housing market volatility caused by elevated interest rates and affordability pressures. Despite these challenges, our non-GAAP operating profit margin in 2024 expanded 50 basis points, while we continued to invest in long-term growth initiatives, enhancing customer connectivity, and building leading brands. As demand trends recover, we are uniquely positioned to drive high-margin growth in this business.
“Our balance sheet is in great shape and our cash flow remains consistent and strong. Our members remain focused on expanding margins in Workplace Furnishings and driving long-term high-margin net sales growth in Residential Building Products.
“As we enter 2025, despite ongoing macroeconomic uncertainty and demand volatility, we maintain elevated earnings visibility through 2026 and have a renewed focus on driving net sales growth,” concluded Mr. Lorenger.
Conference Call HNI Corporation will host a conference call on Thursday, February 20, 2025 at 10:00 a.m. (Central) to discuss fourth quarter and 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.
About HNI Corporation HNI Corporation (NYSE: 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.
Forward-Looking Statements 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 the Corporation’s expectations for net sales and EPS, future levels of demand, anticipated macroeconomic conditions, expected differences in seasonality and its results 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, 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.
HNI Corporation and Subsidiaries Condensed Consolidated Statements of Comprehensive Income (In millions, except per share data) (Unaudited)
Three Months Ended
Twelve Months Ended
December 28,
2024
December 30,
2023
December 28,
2024
December 30,
2023
Net sales
$
642.5
$
679.8
$
2,526.4
$
2,434.0
Cost of sales
382.1
406.7
1,493.0
1,485.7
Gross profit
260.4
273.1
1,033.4
948.3
Selling and administrative expenses
203.3
211.0
820.7
813.2
Restructuring and impairment charges
2.5
31.4
6.2
44.8
Operating income
54.6
30.7
206.5
90.3
Interest expense, net
5.1
7.9
27.2
25.5
Income before income taxes
49.5
22.7
179.3
64.8
Income taxes
11.2
0.0
39.8
15.6
Net income
38.3
22.7
139.5
49.2
Less: Net income attributable to non-controlling interest
0.0
0.0
0.0
0.0
Net income attributable to HNI Corporation
$
38.3
$
22.7
$
139.5
$
49.2
Average number of common shares outstanding – basic
47.5
46.7
47.4
44.5
Net income attributable to HNI Corporation per common share – basic
$
0.81
$
0.49
$
2.95
$
1.11
Average number of common shares outstanding – diluted
48.6
47.7
48.5
45.4
Net income attributable to HNI Corporation per common share – diluted
$
0.79
$
0.48
$
2.88
$
1.09
Foreign currency translation adjustments
$
(0.3
)
$
(0.0
)
$
(0.4
)
$
(0.2
)
Change in unrealized gains (losses) on marketable securities, net of tax
(0.2
)
0.3
0.1
0.4
Change in pension and post-retirement liability, net of tax
1.1
(0.0
)
1.1
(0.0
)
Change in derivative financial instruments, net of tax
1.6
(2.7
)
1.6
(2.8
)
Other comprehensive income (loss), net of tax
2.2
(2.4
)
2.4
(2.6
)
Comprehensive income
40.5
20.3
141.9
46.6
Less: Comprehensive income attributable to non-controlling interest
0.0
0.0
0.0
0.0
Comprehensive income attributable to HNI Corporation
$
40.5
$
20.3
$
141.9
$
46.6
Amounts may not sum due to rounding.
HNI Corporation and Subsidiaries Condensed Consolidated Balance Sheets (In millions) (Unaudited)
December 28,
2024
December 30,
2023
Assets
Current Assets:
Cash and cash equivalents
$
22.5
$
28.9
Short-term investments
6.4
5.6
Receivables
248.4
247.1
Allowance for doubtful accounts
(2.0
)
(3.5
)
Inventories, net
194.3
196.6
Prepaid expenses and other current assets
54.9
61.3
Total Current Assets
524.5
535.9
Property, Plant, and Equipment:
Land and land improvements
58.5
58.9
Buildings
407.9
406.8
Machinery and equipment
685.9
705.8
Construction in progress
25.9
22.2
1,178.2
1,193.7
Less accumulated depreciation
(648.6
)
(638.5
)
Net Property, Plant, and Equipment
529.6
555.2
Right-of-use Finance Leases
14.3
12.2
Right-of-use Operating Leases
121.8
115.2
Goodwill and Other Intangible Assets, net
624.3
651.9
Other Assets
60.7
58.4
Total Assets
$
1,875.1
$
1,928.8
Liabilities and Equity
Current Liabilities:
Accounts payable and accrued expenses
$
391.2
$
418.7
Current maturities of debt
50.3
7.5
Current maturities of other long-term obligations
2.3
7.3
Current lease obligations - Finance
5.6
4.4
Current lease obligations - Operating
28.1
25.9
Total Current Liabilities
477.5
463.7
Long-Term Debt
294.3
428.3
Long-Term Lease Obligations - Finance
8.9
7.9
Long-Term Lease Obligations - Operating
109.6
104.0
Other Long-Term Liabilities
72.9
78.0
Deferred Income Taxes
71.6
85.1
Total Liabilities
1,034.7
1,167.0
Equity:
HNI Corporation shareholders’ equity
840.1
761.4
Non-controlling interest
0.3
0.3
Total Equity
840.4
761.8
Total Liabilities and Equity
$
1,875.1
$
1,928.8
Amounts may not sum due to rounding.
HNI Corporation and Subsidiaries Condensed Consolidated Statements of Cash Flows (In millions) (Unaudited)
Twelve Months Ended
December 28,
2024
December 30,
2023
Net Cash Flows From (To) Operating Activities:
Net income
$
139.5
$
49.2
Non-cash items included in net income:
Depreciation and amortization
107.8
94.9
Other post-retirement and post-employment benefits
1.1
1.1
Stock-based compensation
17.4
16.5
Deferred income taxes
(14.1
)
(0.6
)
Asset impairment charges
—
31.5
Other – net
5.5
5.1
Net increase (decrease) in cash from operating assets and liabilities
(19.1
)
76.5
Decrease in other liabilities
(11.4
)
(6.6
)
Net cash flows from (to) operating activities
226.7
267.5
Net Cash Flows From (To) Investing Activities:
Capital expenditures
(50.6
)
(78.1
)
Acquisition spending, net of cash acquired
—
(369.7
)
Capitalized software
(2.3
)
(1.0
)
Purchase of investments
(3.2
)
(5.7
)
Sales or maturities of investments
4.7
5.4
Net proceeds from sale of subsidiary
—
2.7
Other – net
0.4
1.6
Net cash flows from (to) investing activities
(51.0
)
(444.8
)
Net Cash Flows From (To) Financing Activities:
Payments of debt
(420.6
)
(436.0
)
Proceeds from debt
328.2
684.0
Dividends paid
(63.6
)
(58.5
)
Purchase of HNI Corporation common stock
(65.8
)
(0.3
)
Proceeds from sales of HNI Corporation common stock
51.2
2.3
Other – net
(11.6
)
(2.8
)
Net cash flows from (to) financing activities
(182.2
)
188.8
Net increase (decrease) in cash and cash equivalents
(6.4
)
11.5
Cash and cash equivalents at beginning of period
28.9
17.4
Cash and cash equivalents at end of period
$
22.5
$
28.9
Amounts may not sum due to rounding.
HNI Corporation and Subsidiaries Reportable Segment Data (In millions) (Unaudited)
Three Months Ended
Twelve Months Ended
December 28,
2024
December 30,
2023
December 28,
2024
December 30,
2023
Net Sales:
Workplace Furnishings
$
462.9
$
490.7
$
1,888.0
$
1,740.3
Residential Building Products
179.6
189.1
638.4
693.7
Total
$
642.5
$
679.8
$
2,526.4
$
2,434.0
Cost of Sales:
Workplace furnishings
$
285.2
$
304.3
$
1,140.6
$
1,091.8
Residential building products
96.9
102.4
352.4
393.9
Total
$
382.1
$
406.7
$
1,493.0
$
1,485.7
Selling and Administrative Expenses:
Workplace furnishings
$
144.5
$
147.9
$
573.3
$
537.3
Residential building products
42.9
44.5
174.0
183.2
General corporate
16.0
18.6
73.4
92.6
Total
$
203.3
$
211.0
$
820.7
$
813.2
Restructuring and Impairment Charges:
Workplace furnishings
$
2.5
$
29.1
$
5.1
$
42.5
Residential building products
—
—
1.1
—
General corporate
—
2.3
—
2.3
Total
$
2.5
$
31.4
$
6.2
$
44.8
Operating Income (Loss):
Workplace Furnishings
$
30.7
$
9.5
$
169.1
$
68.6
Residential Building Products
39.8
42.1
110.8
116.6
General corporate
(16.0
)
(20.9
)
(73.4
)
(94.9
)
Total
$
54.6
$
30.7
$
206.5
$
90.3
Interest Expense, Net
5.1
7.9
27.2
25.5
Income Before Income Taxes
$
49.5
$
22.7
$
179.3
$
64.8
Depreciation and Amortization Expense:
Workplace Furnishings
$
19.2
$
17.8
$
73.5
$
59.5
Residential Building Products
3.6
3.5
14.3
13.7
General corporate
4.9
5.2
20.1
21.6
Total
$
27.7
$
26.5
$
107.8
$
94.9
Capital Expenditures (including capitalized software):
Workplace Furnishings
$
6.5
$
12.2
$
36.2
$
62.7
Residential Building Products
2.2
2.5
8.2
12.6
General corporate
0.9
1.6
8.4
3.7
Total
$
9.7
$
16.3
$
52.9
$
79.1
As of
December 28,
2024
As of
December 30,
2023
Identifiable Assets:
Workplace Furnishings
$
1,282.6
$
1,311.4
Residential Building Products
465.8
467.1
General corporate
126.7
150.3
Total
$
1,875.1
$
1,928.8
Amounts may not sum due to rounding.
Non-GAAP Financial Measures
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. 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 and our segment results, which are prepared and presented in accordance with GAAP, this earnings release contains the following non-GAAP financial measures for full year or interim periods: organic net sales and non-GAAP gross profit, operating income, operating profit, income taxes, effective tax rate, net income, and net income per diluted share (i.e., 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 and prior-year quarter, the effective tax rate used to calculate non-GAAP EPS differs from the GAAP effective tax rate primarily due to the impact of nondeductible charges associated with the acquisition of Kimball International. Additionally, non-GAAP EPS for the Legacy HNI business is calculated by excluding the impact of new issuances of HNI common stock and HNI restricted stock units made in connection 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 KII for a portion of the current full-year period, and Poppin for the prior full-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; current- and prior-period costs associated with the exit of Poppin; current-period costs associated with factory consolidation initiatives in the Workplace Furnishings segment; current-period restructuring activities related to the Residential Building Products segment; prior-period restructuring and impairment costs in the Workplace Furnishings segment related to goodwill and intangible asset impairments, the sale of an office building, and the disposal of information technology assets; and prior-period impairment charges related to an equity investment held at corporate.
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)
Twelve Months Ended
December 28, 2024
December 30, 2023
Workplace
Furnishings
Residential
Building
Products
Total
Workplace
Furnishings
Residential
Building
Products
Total
Net sales as reported (GAAP)
$
1,888.0
$
638.4
$
2,526.4
$
1,740.3
$
693.7
$
2,434.0
% change from PY
8.5
%
(8.0
%)
3.8
%
Less: Kimball International acquisition
228.0
—
228.0
—
—
—
Less: Poppin divestiture
—
—
—
11.1
—
11.1
Organic net sales (non-GAAP)
$
1,660.0
$
638.4
$
2,298.4
$
1,729.2
$
693.7
$
2,422.9
% change from PY
(4.0
%)
(8.0
%)
(5.1
%)
HNI Corporation Reconciliation
(Dollars in millions, except per share data)
Three Months Ended
December 28, 2024
Gross
Profit
Operating
Income
Tax
Net
Income
EPS
As reported (GAAP)
$
260.4
$
54.6
$
11.2
$
38.3
$
0.79
% of net sales
40.5
%
8.5
%
6.0
%
Tax %
22.5
%
Restructuring charges
2.5
5.1
1.1
4.0
0.08
Results (non-GAAP)
$
262.9
$
59.7
$
12.3
$
42.3
$
0.87
% of net sales
40.9
%
9.3
%
6.6
%
Tax %
22.5
%
HNI Corporation Reconciliation
(Dollars in millions, except per share data)
Three Months Ended
December 30, 2023
Gross
Profit
Operating
Income
Tax
Net
Income
EPS
As reported (GAAP)
$
273.1
$
30.7
$
0.0
$
22.7
$
0.48
% of net sales
40.2
%
4.5
%
3.3
%
Tax %
0.0
%
Restructuring charges
0.4
(0.7
)
(0.3
)
(0.4
)
(0.01
)
Impairment charges
—
32.5
6.9
25.6
0.54
Acquisition costs
—
3.6
4.7
(1.1
)
(0.02
)
Results (non-GAAP)
$
273.5
$
66.1
$
11.3
$
46.8
$
0.98
% of net sales
40.2
%
9.7
%
6.9
%
Tax %
19.5
%
HNI Corporation Reconciliation
(Dollars in millions, except per share data)
Twelve Months Ended
December 28, 2024
Gross
Profit
Operating
Income
Tax
Net
Income
EPS
As reported (GAAP)
$
1,033.4
$
206.5
$
39.8
$
139.5
$
2.88
% of net sales
40.9
%
8.2
%
5.5
%
Tax %
22.2
%
Restructuring charges
5.0
11.3
2.5
8.8
0.18
Results (non-GAAP)
$
1,038.4
$
217.8
$
42.3
$
148.3
$
3.06
% of net sales
41.1
%
8.6
%
5.9
%
Tax %
22.2
%
HNI Corporation Reconciliation
(Dollars in millions, except per share data)
Twelve Months Ended
December 30, 2023
Gross
Profit
Operating
Income
Tax
Net
Income
EPS
As reported (GAAP)
$
948.3
$
90.3
$
15.6
$
49.2
$
1.09
% of net sales
39.0
%
3.7
%
2.0
%
Tax %
24.1
%
Restructuring charges
0.9
12.4
2.6
9.7
0.21
Impairment charges
—
33.3
7.1
26.2
0.58
Acquisition costs
—
41.2
7.0
34.2
0.75
Cost reduction initiative
—
1.0
0.2
0.8
0.02
Results (non-GAAP)
$
949.2
$
178.1
$
32.5
$
120.1
$
2.65
% of net sales
39.0
%
7.3
%
4.9
%
Tax %
21.3
%
HNI Corporation Reconciliation
(Dollars in millions)
Twelve Months Ended
December 28, 2024
Legacy
HNI
KII
Consolidated
HNI
Gross profit as reported (GAAP)
$
791.1
$
242.3
$
1,033.4
% of net sales
40.9
%
40.8
%
40.9
%
Restructuring charges recorded to cost of sales
4.3
0.7
5.0
Gross profit (non-GAAP)
$
795.4
$
243.0
$
1,038.4
% of net sales
41.2
%
40.9
%
41.1
%
Operating income as reported (GAAP)
$
138.6
$
67.9
$
206.5
% of net sales
7.2
%
11.4
%
8.2
%
Restructuring charges
10.3
1.0
11.3
Operating income (non-GAAP)
$
148.9
$
68.9
$
217.8
% of net sales
7.7
%
11.6
%
8.6
%
HNI Corporation Reconciliation
(Dollars in millions, except per share data)
Twelve Months Ended
December 28, 2024
GAAP (as reported):
Legacy HNI
Consolidated HNI
Operating income
$
138.6
$
206.5
Interest expense, net
6.1
27.2
Income taxes (22.2%)
29.4
39.8
Net income
$
103.2
$
139.5
Average number of common shares outstanding – diluted
43.7
(1)
48.5
EPS - Diluted
$
2.36
$
2.88
Non-GAAP:
Operating income
$
148.9
$
217.8
Interest expense, net
6.1
27.2
Income taxes (22.2%)
31.7
42.3
Net income
$
111.2
$
148.3
Average number of common shares outstanding – diluted
43.7
(1)
48.5
EPS - Diluted
$
2.55
$
3.06
(1) The average number of common shares outstanding – diluted for the Legacy HNI business is calculated by excluding the full year average impacts of new issuances of HNI common stock (4.7 million) and dilutive HNI restricted stock units (0.06 million) as a result of the acquisition of Kimball International.
HNI Corporation Reconciliation
(Dollars in millions)
Twelve Months Ended
December 30, 2023
Legacy
HNI
KII
Consolidated
HNI
Gross profit as reported (GAAP)
$
798.6
$
149.6
$
948.3
% of net sales
38.5
%
41.4
%
39.0
%
Restructuring charges recorded to cost of sales
0.9
—
0.9
Gross profit (non-GAAP)
$
799.5
$
149.6
$
949.2
% of net sales
38.6
%
41.4
%
39.0
%
Operating income as reported (GAAP)
$
78.9
$
11.3
$
90.3
% of net sales
3.8
%
3.1
%
3.7
%
Restructuring charges
3.4
9.0
12.4
Impairment charges
33.3
—
33.3
Cost reduction initiative
1.0
—
1.0
Acquisition costs
28.6
12.5
41.2
Operating income (non-GAAP)
$
145.3
$
32.8
$
178.1
% of net sales
7.0
%
9.1
%
7.3
%
HNI Corporation Reconciliation
(Dollars in millions, except per share data)
Twelve Months Ended
December 30, 2023
GAAP (as reported):
Legacy HNI
Consolidated HNI
Operating income
$
78.9
$
90.3
Interest expense, net
10.1
25.5
Income taxes (24.1%)
16.6
15.6
Net income
$
52.2
$
49.2
Average number of common shares outstanding – diluted
42.5
(1)
45.4
EPS - Diluted
$
1.23
$
1.09
Non-GAAP:
Operating income
$
145.3
$
178.1
Interest expense, net
10.1
25.5
Income taxes (21.3%)
28.8
32.5
Net income
$
106.3
$
120.1
Average number of common shares outstanding – diluted
42.5
(1)
45.4
EPS - Diluted
$
2.50
$
2.65
(1) The average number of common shares outstanding – diluted for the Legacy HNI business is calculated by excluding the full year average impacts of new issuances of HNI common stock (2.8 million) and dilutive HNI restricted stock units (0.05 million) as a result of the acquisition of Kimball International.
Workplace Furnishings Reconciliation
(Dollars in millions)
Three Months Ended
December 28,
2024
December 30,
2023
Percent
Change
Operating income as reported (GAAP)
$
30.7
$
9.5
225
%
% of net sales
6.6
%
1.9
%
Restructuring charges
5.0
(1.5
)
Impairment charges
—
31.0
Acquisition costs
—
1.4
Operating income (non-GAAP)
$
35.7
$
40.4
(11.4
%)
% of net sales
7.7
%
8.2
%
Workplace Furnishings Reconciliation
(Dollars in millions)
Twelve Months Ended
December 28, 2024
December 30, 2023
Legacy
Workplace
KII
Total
Workplace
Legacy
Workplace
KII
Total
Workplace
Operating income as reported (GAAP)
$
101.2
$
67.9
$
169.1
$
57.3
$
11.3
$
68.6
% of net sales
7.8
%
11.4
%
9.0
%
4.2
%
3.1
%
3.9
%
Restructuring charges
9.1
1.0
10.1
2.6
9.0
11.6
Impairment charges
—
—
—
31.8
—
31.8
Cost reduction initiative
—
—
—
(0.1
)
—
(0.1
)
Acquisition costs
—
—
—
—
12.5
12.5
Operating income (non-GAAP)
$
110.3
$
68.9
$
179.2
$
91.6
$
32.8
$
124.5
% of net sales
8.5
%
11.6
%
9.5
%
6.6
%
9.1
%
7.2
%
Residential Building Products Reconciliation
(Dollars in millions)
Twelve Months Ended
December 28,
2024
December 30,
2023
Percent
Change
Operating income as reported (GAAP)
$
110.8
$
116.6
(5.0
%)
% of net sales
17.4
%
16.8
%
Restructuring charges
1.1
—
Cost reduction initiative
—
1.3
Operating income (non-GAAP)
$
111.9
$
117.8
(5.0
%)
% of net sales
17.5
%
17.0
%
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