This Day On The Street
Continue to site
ADVERTISEMENT
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's CEO Discusses Q3 2011 Results - Earnings Call Transcript

Our Hearth business continues to deliver outstanding performance. Remodel-retrofit sales increased 22% as strong demand for our alternative fuel products was driven by higher energy prices. The new construction channel was up 4%, the overall business of housing conditions remained weak. Profit more than doubled year-over-year, a strong operational execution in cost containment drove excellent operating leverage.

I will now turn the call over to Kurt to review this specific financial data for the third quarter. Kurt?

Kurt Tjaden

Thank you, Stan. So for the third quarter 2011, consolidated net sales increased 9.9% to $504 million. Sales for the Office Furniture segment increased 8.9% to $422 million, while net sales for the Hearth Products segment increased 15.2% to $82 million.

Consolidated gross margins increased to 35.6% compared to 35.1% in the prior year quarter due to higher volume and improved price realization which was partially offset by increased material cost.

As a percent of net sales, total selling and administrative expenses improved 0.8 percentage point due to higher volume, which was partially offset by increased fuel costs and higher incentive-based compensation.

We ended the quarter with $102 million of cash. Operating activities generated $67 million of cash during the first nine months of 2011, which is up 36% from the same period last year. We recently amended and restated our credit facility with strong support from our lender group.

Borrowing capacity was increased by $100 million to support our future business objectives while also lowering costs and increasing flexibility.

I will now turn the call back to Stan.

Stan Askren

Thank you, Kurt. We entered the fourth quarter with strong momentum and we are on track to deliver profit improvement in sales growth for the full year 2011. Our contract brands continued to compete well in their markets. Year-over-year growth rates within the contract channel are expected to moderate in the fourth quarter against strong prior year comparisons.

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,764.55 +18.57 0.10%
S&P 500 2,112.57 +3.94 0.19%
NASDAQ 5,146.3780 +17.5930 0.34%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs