HNI Corporation (NYSE: HNI) has announced sales for the second quarter ended July 4, 2015, of $568.2 million and net income of $23.9 million, or $0.52 per diluted share. Non-GAAP net income per diluted share improved 35.9 percent from the prior year quarter to $0.53, which excludes restructuring, impairment, transition costs and gain on sale of assets.
Second Quarter Summary Comments
“We are pleased with our results for the second quarter. We delivered strong sales growth and significant earnings improvement. Office furniture business performance was led by sales growth in the contract business and solid operational execution. Momentum continued in our hearth business with strong sales growth in both the new construction channel and the retail gas portion of the remodel/retrofit channel,” said Stan Askren, HNI Corporation chairman, president and chief executive officer.
Office Furniture – Financial Performance
Second quarter sales increased $27.2 million or 6.4 percent to $450.6 million. Sales for the quarter increased in both our supplies-driven and contract channels.
Second quarter non-GAAP operating profit increased $8.1 million or 25.2 percent. Increased volume, higher price realization and solid operational performance were partially offset by unfavorable product mix, strategic investments and incentive-based compensation.
Hearth Products – Financial Performance
Second quarter sales increased $31.9 million or 37.2 percent to $117.6 million. Compared to prior year quarter, the Vermont Castings Group acquisition increased sales by $25.0 million. On an organic basis, sales increased 8.0 percent for the quarter driven by an increase in both the new construction channel and the retail gas portion of the remodel/retrofit channel.
For the quarter, non-GAAP operating profit increased $3.2 million or 37.9 percent due to increased volume and higher price realization.
“We delivered very strong results during the first six months of 2015. I remain confident in our ability to grow sales and significantly increase profits for the remainder of the year. Our office furniture and hearth businesses are performing well and we continue to make investments to drive long-term profitable growth and shareholder value,” said Askren.
The Corporation estimates sales to be up five to nine percent in the third quarter over the same period in the prior year, including sales from the Vermont Castings Group acquisition. Non-GAAP earnings per share are anticipated to be in the range of $0.84 to $0.89 for the third quarter and $2.55 to $2.65 for the full year, which includes the Vermont Castings Group acquisition results and excludes restructuring and transition costs.
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Greenington Fine Bamboo Furniture will debut a new division of elegant outdoor furniture crafted in 100 percent solid Bamboo, the planet’s most eco-friendly, rapidly renewable resource. The new division, named Greenington Outdoor Bamboo Furniture, will exhibit the new line this September at the Casual Market Chicago.
As the demand for tropical woods remains high, bamboo is an environmentally Green alternative. Bamboo is unique in the fact that it’s a “grass” rather than a wood, growing to maturity in five years or less, and making it one of the fastest-growing and sustainable plants on the planet. In addition to its incredible carbon absorbing properties, it’s harvested in such a way that it keeps the existing root system intact, producing new shoots indefinitely.
Each bamboo culm used in the production of Greenington products is individually selected by the local farmer and harvested by hand, reducing soil erosion and preserving the eco-system of the native bamboo forest. Bamboo has been shown to be 30 percent harder than teak, releases 35 percent more oxygen into the air, and grows to maturity in a fraction of the time of comparable wood forests.
Greenington is a Seattle-based company manufacturing 100 percent solid bamboo furniture for the mid- to high-end furniture market. With 20 plus years experience in manufacturing a wide variety of home furnishings in solid bamboo, Yang Lin, president and founder of Greenington, said, “Our dealers encouraged us to create this new concept in outdoor furniture. Greenington will continue to use cutting edge technology to develop new and innovative bamboo products while providing the best service for our customers. We strive to build mutually successful and long term relationships with our dealers.”
Empowered with the slogan, “Go with Bamboo, Live with Sustainability,” Greenington delivers a winning combination providing high quality outdoor furniture with a low carbon footprint. Greenington is a founding member of the SFC, the Sustainable Furnishings Council. Call (253) 867-5460.
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