hni-20230401

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 1, 2023

☐

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 1, 2023

41,699,265


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 1, 2023 and A pril 2, 2022	3

	Condensed Consolidated Balance Sheets - April 1, 2023 and December 31, 2022	4

	Condensed Consolidated Statements of Equity - Three Months Ended April 1, 2023 and April 2, 2022	6

	Condensed Consolidated Statements of Cash Flows - Three Months Ended Apri l 1 , 2023 and April 2, 2022	7

	Notes to Condensed Consolidated Financial Statements	8

Item 2.	Management ’s Discussion and Analysis of Financial Condition and Results of Operations	22

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	27

Item 4.	Controls and Procedures	27

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	28

Item 1A.	Risk Factors	28

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33

Item 3.	Defaults Upon Senior Securities - None	-

Item 4.	Mine Safety Disclosures - Not Applicable	-

Item 5.	Other Information - None	-

Item 6.	Exhibits	34

Signatures		35

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements


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

	Three Months Ended
	April 1, 2023		April 2, 2022

Net sales	$	479.1	$	572.3
Cost of sales	304.8		375.4
Gross profit	174.3		196.9
Selling and administrative expenses	167.9		176.5


Operating income	6.4		20.4
Interest expense, net	2.7		2.0
Income before income taxes	3.8		18.5
Income taxes	2.2		4.3
Net income	1.6		14.2
Less: Net loss attributable to non-controlling interest	(0.0)		(0.0)
Net income attributable to HNI Corporation	$	1.6	$	14.2

Average number of common shares outstanding – basic	41.5		42.4
Net income attributable to HNI Corporation per common share – basic	$	0.04	$	0.33
Average number of common shares outstanding – diluted	42.1		43.1
Net income attributable to HNI Corporation per common share – diluted	$	0.04	$	0.33

Foreign currency translation adjustments	$	0.1	$	(0.6)
Change in unrealized gains (losses) on marketable securities, net of tax	0.2		(0.4)

Change in derivative financial instruments, net of tax	(0.1)		0.9
Other comprehensive income (loss), net of tax	0.1		(0.1)
Comprehensive income	1.7		14.1
Less: Comprehensive loss attributable to non-controlling interest	(0.0)		(0.0)
Comprehensive income attributable to HNI Corporation	$	1.7	$	14.1

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

Amounts may not sum due to rounding.


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

	April 1, 2023		December 31, 2022
Assets
Current Assets:
Cash and cash equivalents	$	16.8	$	17.4
Short-term investments	2.0		2.0
Receivables	190.9		218.4
Allowance for doubtful accounts	(3.4)		(3.2)
Inventories, net	191.1		180.1

Prepaid expenses and other current assets	49.8		54.4

Total Current Assets	447.1		469.2

Property, Plant, and Equipment:
Land and land improvements	30.7		30.8
Buildings	278.3		275.4
Machinery and equipment

SEC Form 10-Q filed by HNI Corporation