HNI Corporation Reports Earnings for First Quarter Fiscal Year 2021
HNI Corporation (NYSE: HNI) today announced sales for the first quarter ended April 3, 2021 of
First Quarter Highlights
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Strong results in Residential Building Products: First quarter 2021 revenue grew 39 percent on a year-over-year basis, and operating margin expanded 600 basis points from prior-year, pre-COVID levels. This fueled a greater than 90 percent year-over-year increase in segment operating profit to a first quarter record of
$39.8 million . - Signs of improvement in Workplace Furnishings: First quarter 2021 revenue was down approximately 12 percent from the first quarter of 2020, on an organic basis. This rate of decline was the lowest since the beginning of the pandemic.
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Strong incremental margins: Non-GAAP consolidated operating income increased 67 percent year-over-year (or
$9.4 million ) to$23.3 million on two percent organic revenue growth (or$6.8 million ). This equated to a 60 percent incremental operating margin, which was primarily driven by volume leverage in the Residential Building Products segment and solid cost control in the Workplace Furnishings segment, as both segments benefited from the Corporation’s annual cost savings initiatives and cost actions taken last year to combat pandemic pressures. -
High-quality balance sheet: Quarter-ending debt levels were
$176 million , essentially unchanged from last quarter and down from$230 million at the end of the first quarter of last year. The gross leverage ratio at the end of the first quarter of 2021 was approximately 0.9x, slightly improved from last quarter and last year. Cash totaled$94 million as of the end of the first quarter of 2021, more than double the$35 million reported in the first quarter of 2020.
“This quarter, our members again demonstrated much of what is unique about HNI. We delivered substantial profit improvement, highlighted by strong revenue growth and expanded profitability in Residential Building Products. Although the pandemic continues to negatively impact demand in Workplace Furnishings, particularly in the contract market, we benefited from our reset cost structure and improving top-line performance in our brands focused on small to mid-sized customers. Overall, the first quarter shows the power of our diversified revenue streams, our ability to react quickly to changing market dynamics, and our overall operational capability,” stated Jeff Lorenger, Chairman, President, and Chief Executive Officer.
HNI Corporation – Financial Performance |
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Three Months Ended |
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April 3,
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March 28,
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Change |
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GAAP |
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Net Sales |
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3.3 |
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