This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

HNI Corporation's CEO Discusses Q2 2011 Results - Earnings Call Transcript

I’ll now turn the call over to Kurt to provide some specific financial data for the second quarter. Kurt?

Kurt Tjaden

Thank you, Stan. For the second quarter 2011, consolidated net sales increased 8.7% to $433 million. Sales for the Office Furniture segment increased 8.7% to $373 million, again, negatively impacted by the $12 million wholesale partner inventory reduction. Net sales for the Hearth Products segment increased 8.4% to $60 million, and consolidated gross margins decreased to 33.9% compared to 35.5% in the prior year quarter due to increased material costs, unfavorable mix of business, and lower price realization.

As a percent of net sales, total selling and administrative expenses improved 0.9 percentage points due to higher volume and lower restructuring charges, which were partially offset by increased fuel costs, investments in strategic growth initiatives and higher incentive-based compensation.

We ended the quarter with $47 million of cash. Operating activities used $8.4 million of cash during the first six months of 2011 compared to generating $1.5 million of cash during the same period last year. Our inventory increased $18 million from the same period last year. This was due to one, the timing of large contract projects that we expect to ship in the third quarter; two, an inventory investment made to level load to our production, which we expect to ship in the balance of 2011; and three, increased volumes and higher material costs.

I’ll now turn back to Stan.

Stanley Askren

Okay. Thank you, Kurt. Looking forward, we entered the third quarter well positioned to deliver solid sales and proper growth over prior year. Our contract brands are performing well. We anticipate continued double-digit growth in our contract business, driven by strong demand. Year-over-year growth rates within our contract channel are expected to moderate in the second half of the year, again, stronger prior year comparison.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.79 0.10%
FB $102.01 0.10%
GOOG $682.32 -0.12%
TSLA $151.04 0.38%
YHOO $27.04 1.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs