HNI Corporation: Presents Q3 2017 HNI Corporation Earnings Presentation

Tickers: HNI
THIRD QUARTER FISCAL 2017 RESULTS

October 24, 2017

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THIRD QUARTER FISCAL 2017 RESULTS

October 24, 2017

Forward Looking Statements

This presentation contains "forward-looking" statements based on current expectations regarding future plans, events, outlook, objectives and financial performance, expectations for future sales growth and earnings per diluted share (GAAP and non-GAAP). 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. These risks include but are not limited to: general economic conditions in the United States and internationally; unfavorable changes in the United States housing market; industry and competitive conditions; a decline in corporate spending on office furniture; changes in raw material, component or commodity pricing; future acquisitions, divestitures or investments; the cost of energy; changing legal, regulatory, environmental and healthcare conditions; the Corporation's ability to successfully complete its business software system implementation; the Corporation's ability to implement price increases; changes in the sales mix of products; the Corporation's ability to achieve the anticipated benefits from closures and structural alignment initiatives; and force majeure events outside the Corporation's control. 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 undertakes no obligation to update, amend or clarify forward- looking statements.

Conference Call Agenda

3rd Quarter Assessment

Review of 3rd Quarter Financials

Outlook

Q&A

3

3rd Quarter Results

Income Statement

3Q17

3Q16

$ change F/(U)

% change Basis Pt Change

Net Sales

599.5

584.6

14.8

2.5%

Non-GAAP Gross Profit (excluding restructuring and transition costs)

226.4

223.9

2.5

1.1%

% of Net Sales (1)

37.8%

38.3%

-50

Restructuring and Transition Costs (2)

5.2

2.3

(2.9)

GAAP Gross Profit

221.2

221.6

(0.4)

(0.1%)

% of Net Sales

36.9%

37.9%

(4.4)

-100

Freight & Distribution

55.5

51.1

8.6%

% of Net Sales

9.3%

8.7%

60

Non-GAAP Other SG&A (excluding F&D; restructuring charges, and non-

recurring gain)

114.1

116.8

2.7

(2.3%)

% of Net Sales

19.0%

20.0%

-100

Restructuring Charges (2)

0.8

0.4

(0.4)

96.2%

Gain on Sale and License of Assets (3)

(6.8)

-

6.8

Charitable Donation of Building

-

1.6

1.6

Operating Income

57.7

51.7

6.0

11.7%

% of Net Sales

9.6%

8.8%

80

Non-GAAP Operating Income

56.8

56.0

0.8

1.5%

% of Net Sales

9.5%

9.6%

(10)

Net Income attributable to HNI Corp

37.3

33.8

3.5

10.2%

% of Net Sales

6.2%

5.8%

40

EPS (diluted) - GAAP

$ 0.84

$ 0.74

$ 0.10

13.5%

EPS (diluted) - Non-GAAP

$ 0.82

$ 0.80

$ 0.02

2.5%

Shares (diluted)

44.5

45.8

(1.3)

-3.0%

  1. Gross profit margin decreased compared to prior year primarily driven by unfavorable product and business mix and input cost inflation, partially offset by higher volume and the impact of divestitures.

  2. Includes costs related to structural realignment and consolidation of hearth and office furniture production facilities.

  3. Includes a non-recurring gain related to the sale and license of an intangible asset and a gain on the sale of a closed facility.

See GAAP to Non-GAAP reconciliations in appendix. 4

HNI Corporation published this content on 24 October 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 23 October 2017 20:52:01 UTC.

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