Q3 2024 HNI Corp Earnings Call Transcript
Key Points
- HNI Corp (HNI) reported a strong non-GAAP EPS of $1.03 for the third quarter, exceeding internal expectations and marking an 11% increase from the prior year.
- The company's workplace furnishing segment achieved a 20-year high in non-GAAP operating profit margin for the third quarter.
- HNI Corp (HNI) has elevated EPS visibility through 2026, with initiatives in Mexico and KII synergies expected to deliver significant EPS growth.
- The company has a strong financial position, with a gross leverage ratio of 1.1 times, returning to pre-Kimball acquisition levels.
- HNI Corp (HNI) anticipates record non-GAAP EPS for 2024, marking the third consecutive year of double-digit non-GAAP EPS growth.
- HNI Corp (HNI) expects a near-term demand pause to impact fourth-quarter results, with profit expected to decline compared to the same period in 2023.
- The transactional business within the workplace furnishings segment has been particularly soft, showing volatility and sensitivity to economic changes.
- Economic and election concerns are causing small business leaders to hesitate on discretionary spending, impacting demand.
- In the residential building products segment, builder and homeowner sentiment has been negatively impacted by interest rate volatility and ongoing inflation.
- The contract furniture space is experiencing project delays and a lengthening selling cycle, which will negatively impact fourth-quarter shipments.
Thank you for standing by. My name is Amy and I will be your conference operator for today. At this time. I would like to welcome everyone to the HN I Corporation. Third quarter, fiscal 2024 results conference call, all lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, please press the star followed by the number one on your telephone keypad. If you would like to withdraw your question again, press star and the number one, it is now my pleasure to turn the call over to Mr mccall. Please go ahead.
Good morning. My name is Matt McCall, I'm Vice President, investor relations and corporate development for H&I Corporation. Thank you for joining us to discuss our third quarter fiscal 2024 results with me today are Jeff Lorenger, Chairman, President and CEO Marshall Bridges, Senior Vice President and CFO and BP Berger, Executive Vice President copies of our financial news release and non
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