hni-20220402

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM

10-Q

☒

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended

April 2, 2022

☐

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number:

1-14225

HNI Corporation

Iowa

42-0617510

(State of Incorporation)

(I.R.S. Employer Identification No.)

600 East Second Street

P.O. Box 1109

Muscatine

Iowa

52761-0071

(

563

)

272-7400

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock

HNI

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes

☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes

☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Smaller reporting company

☐

Non-accelerated filer

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes

☐

No ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Common Stock, $1 Par Value

Outstanding as of

April 2, 2022

42,385,326


HNI Corporation and Subsidiaries
Quarterly Report on Form 10-Q

Table of Contents

PART I. FINANCIAL INFORMATION
		Page
Item 1.	Financial Statements (Unaudited)

	Condensed Consolidated Statements of Comprehensive Income - Three Months Ended April 2, 2022 and April 3, 2021	3

	Condensed Consolidated Balance Sheets - April 2, 2022 a nd January 1, 2022	4

	Condensed Consolidated Statements of Equity - Three Months Ended April 2, 2022 and A pril 3 , 2021	6

	Condensed Consolidated Statements of Cash Flows - Three Months Ended April 2, 2022 and April 3, 2021	7

	Notes to Condensed Consolidated Financial Statements	8

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	20

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	25

Item 4.	Controls and Procedures	25

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	26

Item 1A.	Risk Factors	26

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	26

Item 3.	Defaults Upon Senior Securities - None	-

Item 4.	Mine Safety Disclosures - Not Applicable	-

Item 5.	Other Information - None	-

Item 6.	Exhibits	27

Signatures		28

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements


HNI Corporation and Subsidiaries Condensed Consolidated Statements of Comprehensive Income (In thousands, except per share data)
(Unaudited)

	Three Months Ended
	April 2, 2022		April 3, 2021

Net sales	$	572,328	$	484,293
Cost of sales	375,419		304,347
Gross profit	196,909		179,946
Selling and administrative expenses	176,472		157,346


Operating income	20,437		22,600
Interest expense, net	1,986		1,755
Income before income taxes	18,451		20,845
Income taxes	4,274		5,827
Net income	14,177		15,018
Less: Net loss attributable to non-controlling interest	(1)		(1)
Net income attributable to HNI Corporation	$	14,178	$	15,019

Average number of common shares outstanding – basic	42,388		43,163
Net income attributable to HNI Corporation per common share – basic	$	0.33	$	0.35
Average number of common shares outstanding – diluted	43,072		43,584
Net income attributable to HNI Corporation per common share – diluted	$	0.33	$	0.34


Foreign currency translation adjustments	$	(568)	$	(132)
Change in unrealized gains (losses) on marketable securities, net of tax	(410)		(100)

Change in derivative financial instruments, net of tax	913		263
Other comprehensive income (loss), net of tax	(65)		31
Comprehensive income	14,112		15,049
Less: Comprehensive loss attributable to non-controlling interest	(1)		(1)
Comprehensive income attributable to HNI Corporation	$	14,113	$	15,050

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).


HNI Corporation and Subsidiaries Condensed Consolidated Balance Sheets (In thousands)
(Unaudited)

	April 2, 2022		January 1, 2022
Assets
Current Assets:
Cash and cash equivalents	$	23,483	$	52,270
Short-term investments	1,335		1,392
Receivables	253,075		239,955
Allowance for doubtful accounts	(3,093)		(2,813)
Inventories, net	206,561		181,591

Prepaid expenses and other current assets	51,559		51,099
Total Current Assets	532,920		523,494

Property, Plant, and Equipment:
Land and land improvements	30,940		30,851
Buildings	295,715		294,545
Machinery and equipment	601,776		593,630
Construction in progress	27,905		29,663
	956,336		948,689
Less: Accumulated depreciation	(592,695)		(581,909)
Net Property, Plant, and Equipment	363,641		366,780

Right-of-use Finance Leases	11,444		10,173

Right-of-use Operating Leases	95,812		82,881

Goodwill and Other Intangible Assets	467,217		471,502

Other Assets	53,970		43,067

Total Assets	$	1,525,004	$	1,497,897

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).


HNI Corporation and Subsidiaries Condensed Consolidated Balance Sheets (In thousands)
(Unaudited)

	April 2, 2022		January 1, 2022
Liabilities and Equity
Current Liabilities:
Accounts payable and accrued expenses	$	434,793	$	473,753
Current maturities of debt	2,165		3,221
Current maturities of other long-term obligations	1,880		3,910
Current lease obligations - finance	3,226		2,765
Current lease obligations - operating	20,797		22,799
Total Current Liabilities	462,861		506,448

Long-Term Debt	240,929		174,608



Long-Term Lease Obligations - Finance	8,173		7,373

Long-Term Lease Obligations - Operating	78,779		63,757

Other Long-Term Liabilities	78,198		80,736

Deferred Income Taxes	74,024		75,008

Total Liabilities	942,964		907,930

Equity:

SEC Form 10-Q filed by HNI Corporation