UNITED
STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON,
DC 20549
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|
FORM
10-Q
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|
(MARK
ONE)
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/
X / QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE
SECURITIES
EXCHANGE ACT OF 1934
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For
the quarterly period ended October 3, 2009.
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|
OR
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/ / TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
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For
the transition period from ____________________ to
____________________
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Commission
File Number: 1-14225
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HNI
Corporation
(Exact
name of registrant as specified in its charter)
|
|
Iowa
(State
or other jurisdiction of
incorporation
or organization)
|
42-0617510
(I.R.S.
Employer
Identification
Number)
|
P.
O. Box 1109, 408 East Second Street
Muscatine,
Iowa 52761-0071
(Address
of principal executive offices)
|
52761-0071
(Zip
Code)
|
Registrant's
telephone number, including area code: 563/272-7400
|
|
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
X NO
|
|
Indicate
by check mark whether the registrant has submitted electronically and
posted on its corporate Web site, if any, every Interactive Data File
required to be submitted and posted 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 and post such
files). YES NO
|
|
Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting
company. See the definitions of "large accelerated filer,"
"accelerated filer" and "smaller reporting company" in Rule 12b-2 of the
Exchange Act.
Large
accelerated filer X Accelerated
filer
Non-accelerated
filer
(Do not check if a smaller reporting company)
Smaller
reporting company
|
|
Indicate
by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). YES
NO
X
|
|
Indicate
the number of shares outstanding of each of the issuer's classes of common
stock, as of the latest practical date.
|
|
Class
Common
Shares, $1 Par Value
|
Outstanding
at October 3, 2009
45,037,287
|
HNI
Corporation and SUBSIDIARIES
|
|
INDEX
|
|
PART
I. FINANCIAL INFORMATION
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Page
|
|
Item
1. Financial Statements
(Unaudited).
|
|
Condensed
Consolidated Balance Sheets October
3, 2009, and January 3, 2009
|
3
|
Condensed
Consolidated Statements of Income Three
Months Ended October 3, 2009, and September 27, 2008
|
5
|
Condensed
Consolidated Statements of Income Nine
Months Ended October 3, 2009, and September 27, 2008
|
6
|
Condensed
Consolidated Statements of Cash Flows Nine
Months Ended October 3, 2009, and September 27, 2008
|
7
|
Notes
to Condensed Consolidated Financial Statements
|
8
|
Item
2. Management's Discussion and Analysis
of Financial
Condition and Results of Operations.
|
19
|
Item
3. Quantitative and Qualitative Disclosures About
Market Risk.
|
25
|
Item
4. Controls and Procedures.
|
25
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PART
II. OTHER INFORMATION
|
|
Item
1. Legal Proceedings.
|
26
|
Item
1A. Risk Factors.
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26
|
Item
2. Unregistered Sales of Equity Securities and Use
of Proceeds.
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26
|
Item
3. Defaults Upon Senior Securities –
None.
|
-
|
Item
4. Submission of Matters to a Vote of Security
Holders – None.
|
-
|
Item
5. Other Information – None.
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-
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Item
6. Exhibits.
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26
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SIGNATURES
|
27
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EXHIBIT
INDEX
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28
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HNI
Corporation and SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
||||||||
Oct.
3,
2009
(Unaudited)
|
Jan.
3,
2009
|
|||||||
ASSETS
|
(In
thousands)
|
|||||||
CURRENT
ASSETS
|
||||||||
Cash
and cash equivalents
|
$ | 45,968 | $ | 39,538 | ||||
Short-term
investments
|
8,151 | 9,750 | ||||||
Receivables
|
187,916 | 238,327 | ||||||
Inventories
(Note C)
|
67,011 | 84,290 | ||||||
Deferred
income taxes
|
20,022 | 16,313 | ||||||
Prepaid
expenses and other current assets
|
19,128 | 29,623 | ||||||
Total
Current Assets
|
348,196 | 417,841 | ||||||
PROPERTY,
PLANT, AND EQUIPMENT, at cost
|
||||||||
Land
and land improvements
|
23,757 | 23,753 | ||||||
Buildings
|
279,020 | 277,898 | ||||||
Machinery
and equipment
|
499,608 | 525,996 | ||||||
Construction
in progress
|
5,804 | 21,738 | ||||||
808,189 | 849,385 | |||||||
Less
accumulated depreciation
|
535,999 | 533,779 | ||||||
Net
Property, Plant, and Equipment
|
272,190 | 315,606 | ||||||
GOODWILL
|
267,865 | 268,392 | ||||||
OTHER
ASSETS
|
136,133 | 163,790 | ||||||
Total
Assets
|
$ | 1,024,384 | $ | 1,165,629 | ||||
HNI
Corporation and SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
||||||||
Oct.
3,
2009
(Unaudited)
|
Jan.
3,
2009
(As
Adjusted)
|
|||||||
LIABILITIES
AND EQUITY
|
(In
thousands, except share and per share value data)
|
|||||||
CURRENT
LIABILITIES
|
||||||||
Accounts
payable and accrued expenses
|
$ | 300,301 | $ | 313,431 | ||||
Note
payable and current maturities of long-term
debt
and capital lease obligations
|
2,374 | 54,494 | ||||||
Current
maturities of other long-term obligations
|
478 | 5,700 | ||||||
Total
Current Liabilities
|
303,153 | 373,625 | ||||||
LONG-TERM
DEBT
|
200,000 | 267,300 | ||||||
CAPITAL
LEASE OBLIGATIONS
|
1 | 43 | ||||||
OTHER
LONG-TERM LIABILITIES
|
50,557 | 50,399 | ||||||
DEFERRED
INCOME TAXES
|
33,565 | 25,271 | ||||||
EQUITY
|
||||||||
Parent
Company shareholders' equity:
|
||||||||
Capital
Stock:
|
||||||||
Preferred,
$1 par value, authorized 2,000,000
shares,
no shares outstanding
|
- | - | ||||||
Common,
$1 par value, authorized
200,000,000
shares, outstanding -
|
45,037 | 44,324 | ||||||
October
3, 2009 – 45,037,287
shares;
|
||||||||
January
3, 2009 – 44,324,409 shares
|
||||||||
Additional
paid-in capital
|
17,471 | 6,037 | ||||||
Retained
earnings
|
375,733 | 400,379 | ||||||
Accumulated
other comprehensive income
|
(1,471 | ) | (1,907 | ) | ||||
Total
Parent Company shareholders' equity
|
436,770 | 448,833 | ||||||
Noncontrolling
interest
|
338 | 158 | ||||||
Total Equity
|
437,108 | 448,991 | ||||||
Total
Liabilities and Equity
|
$ | 1,024,384 | $ | 1,165,629 | ||||
HNI
Corporation and SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
|
||||||||
Three
Months Ended
|
||||||||
Oct.
3,
2009
|
Sep.
27,
2008
(As
Adjusted)
|
|||||||
(In
thousands, except share and per share data)
|
||||||||
Net
sales
|
$ | 453,956 | $ | 663,141 | ||||
Cost
of sales
|
287,352 | 438,423 | ||||||
Gross
profit
|
166,604 | 224,718 | ||||||
Selling
and administrative expenses
|
129,897 | 189,577 | ||||||
Restructuring
and impairment
|
4,440 | 1,497 | ||||||
Operating
income
|
32,267 | 33,644 | ||||||
Interest
income
|
51 | 208 | ||||||
Interest
expense
|
3,167 | 4,245 | ||||||
Earnings
before income taxes
|
29,151 | 29,607 | ||||||
Income
taxes
|
11,441 | 10,107 | ||||||
Net
income
|
17,710 | 19,500 | ||||||
Less:
Net income attributable to the noncontrolling interest
|
96 | 11 | ||||||
Net
income attributable to Parent Company
|
$ | 17,614 | $ | 19,489 | ||||
Net
income attributable to Parent Company per common share –
basic
|
$ | 0.39 | $ | 0.44 | ||||
Average
number of common shares outstanding – basic
|
44,994,399 | 44,213,017 | ||||||
Net
income attributable to Parent Company per common share –
diluted
|
$ | 0.39 | $ | 0.44 | ||||
Average
number of common shares outstanding – diluted
|
45,598,155 | 44,340,220 | ||||||
Cash
dividends per common share
|
$ | 0.215 | $ | 0.215 | ||||
See
accompanying Notes to Condensed Consolidated Financial
Statements.
|
HNI
Corporation and SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
|
||||||||
Nine
Months Ended
|
||||||||
Oct.
3,
2009
|
Sep.
27,
2008
(As
Adjusted)
|
|||||||
(In
thousands, except share and per share data)
|
||||||||
Net
sales
|
$ | 1,242,612 | $ | 1,839,638 | ||||
Cost
of sales
|
821,792 | 1,221,439 | ||||||
Gross
profit
|
420,820 | 618,199 | ||||||
Selling
and administrative expenses
|
390,920 | 544,805 | ||||||
Restructuring
and impairment
|
13,403 | 4,344 | ||||||
Operating
income
|
16,497 | 69,050 | ||||||
Interest
income
|
311 | 846 | ||||||
Interest
expense
|
9,414 | 12,481 | ||||||
Earnings
before income taxes
|
7,394 | 57,415 | ||||||
Income
taxes
|
2,944 | 20,382 | ||||||
Net
income
|
4,450 | 37,033 | ||||||
Less:
Net income attributable to the noncontrolling interest
|
119 | 98 | ||||||
Net
income attributable to Parent Company
|
$ | 4,331 | $ | 36,935 | ||||
Net
income attributable to Parent Company per common share –
basic
|
$ | 0.10 | $ | 0.83 | ||||
Average
number of common shares outstanding – basic
|
44,833,711 | 44,327,939 | ||||||
Net
income attributable to Parent Company per common share –
diluted
|
$ | 0.10 | $ | 0.83 | ||||
Average
number of common shares outstanding – diluted
|
45,272,912 | 44,453,445 | ||||||
Cash
dividends per common share
|
$ | 0.645 | $ | 0.645 | ||||
See
accompanying Notes to Condensed Consolidated Financial
Statements.
|
HNI
Corporation and SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
||||||||
Nine
Months Ended
|
||||||||
Oct.
3, 2009
|
Sep.
27, 2008
|
|||||||
(In
thousands)
|
||||||||
Net
Cash Flows From (To) Operating Activities:
|
||||||||
Net
income
|
$ | 4,450 | $ | 37,033 | ||||
Noncash
items included in net income:
|
||||||||
Depreciation
and amortization
|
55,715 | 52,407 | ||||||
Other
postretirement and post employment benefits
|
1,386 | 1,132 | ||||||
Stock-based
compensation
|
2,869 | 1,373 | ||||||
Excess
tax benefits from stock compensation
|
- | (11 | ) | |||||
Deferred
income taxes
|
4,197 | 1,196 | ||||||
(Gain)/Loss
on sale, retirement and impairment of
long-lived
assets and intangibles
|
81 | 1,346 | ||||||
Stock
issued to retirement plan
|
6,565 | 6,592 | ||||||
Other
– net
|
891 | 1,801 | ||||||
Net
increase (decrease) in operating assets
and liabilities
|
66,615 | 4,266 | ||||||
Increase
(decrease) in other liabilities
|
(6,848 | ) | (2,537 | ) | ||||
Net
cash flows from (to) operating activities
|
135,921 | 104,598 | ||||||
Net
Cash Flows From (To) Investing Activities:
|
||||||||
Capital
expenditures
|
(9,715 | ) | (53,664 | ) | ||||
Proceeds
from sale of property, plant and equipment
|
6,569 | 1,009 | ||||||
Acquisition
spending, net of cash acquired
|
(500 | ) | (75,479 | ) | ||||
Capitalized
software
|
(1,159 | ) | (926 | ) | ||||
Short-term
investments – net
|
- | (250 | ) | |||||
Purchase
of long-term investments
|
(9,710 | ) | (10,531 | ) | ||||
Sales
or maturities of long-term investments
|
31,672 | 12,758 | ||||||
Other
– net
|
400 | - | ||||||
Net
cash flows from (to) investing activities
|
17,557 | (127,083 | ) | |||||
Net
Cash Flows From (To) Financing Activities:
|
||||||||
Proceeds
from sales of HNI Corporation common
stock
|
2,191 | 3,251 | ||||||
Purchase
of HNI Corporation common stock
|
- | (28,553 | ) | |||||
Excess
tax benefits from stock compensation
|
- | 11 | ||||||
Proceeds
from long-term debt
|
97,000 | 306,000 | ||||||
Payments
of note and long-term debt and other financing
|
(217,261 | ) | (236,298 | ) | ||||
Dividends
paid
|
(28,978 | ) | (28,579 | ) | ||||
Net
cash flows from (to) financing activities
|
(147,048 | ) | 15,832 | |||||
Net
increase (decrease) in cash and cash
equivalents
|
6,430 | (6,653 | ) | |||||
Cash
and cash equivalents at beginning of period
|
39,538 | 33,881 | ||||||
Cash
and cash equivalents at end of period
|
$ | 45,968 | $ | 27,228 | ||||
See
accompanying Notes to Condensed Consolidated Financial
Statements.
|
(In
thousands)
|
Oct.
3, 2009
(Unaudited)
|
Jan.
3, 2009
|
||||||
Finished
products
|
$ | 54,717 | $ | 51,807 | ||||
Materials
and work in process
|
39,966 | 60,155 | ||||||
LIFO
allowance
|
(27,672 | ) | (27,672 | ) | ||||
$ | 67,011 | $ | 84,290 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
(In
thousands)
|
Oct.
3,
2009
|
Sep.
27,
2008
|
Oct.
3,
2009
|
Sep.
27,
2008
|
||||||||||||
Net
income
|
$ | 17,710 | $ | 19,500 | $ | 4,450 | $ | 37,033 | ||||||||
Other
comprehensive income, net of income tax as applicable:
|
||||||||||||||||
Foreign
currency translation adjustments
|
15 | 72 | (86 | ) | 1,287 | |||||||||||
Change
in unrealized gains (losses) on
marketable
securities
|
- | 107 | 134 | (96 | ) | |||||||||||
Change
in pension and postretirement liability
|
79 | 79 | 237 | 237 | ||||||||||||
Change
in derivative financial instruments
|
49 | (224 | ) | 151 | (356 | ) | ||||||||||
Comprehensive
income
|
17,853 | 19,534 | 4,886 | 38,105 | ||||||||||||
Comprehensive
income attributable to
noncontrolling
interest
|
96 | 11 | 119 | 98 | ||||||||||||
Comprehensive
income attributable to HNI
Corporation
|
$ | 17,757 | $ | 19,523 | $ | 4,767 | $ | 38,007 |
(in
thousands)
|
Foreign
Currency Translation Adjustment
|
Unrealized
Gains (Losses) on Marketable Securities
|
Pension
Postretirement Liability
|
Derivative
Financial Instruments
|
Accumulated
Other Comprehensive Loss
|
|||||||||||||||
Balance
at January 3, 2009
|
$ | 3,620 | $ | (134 | ) | $ | (3,455 | ) | $ | (1,938 | ) | $ | (1,907 | ) | ||||||
Year-to
date change
|
(86 | ) | 134 | 237 | 151 | 436 | ||||||||||||||
Balance
at October
3, 2009
|
$ | 3,534 | $ | - | $ | (3,218 | ) | $ | (1,787 | ) | $ | (1,471 | ) |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
(In
thousands, except per share data)
|
Oct.
3,
2009
|
Sep.
27,
2008
|
Oct.
3,
2009
|
Sep.27,
2008
|
||||||||||||
Numerators:
|
||||||||||||||||
Numerator
for both basic and diluted EPS attributable to Parent Company net income
(loss)
|
$ | 17,614 | $ | 19,489 | $ | 4,331 | $ | 36,935 | ||||||||
Denominators:
|
||||||||||||||||
Denominator
for basic EPS weighted-average common shares outstanding
|
44,994 | 44,213 | 44,834 | 44,328 | ||||||||||||
Potentially
dilutive shares from stock-based compensation plans
|
604 | 127 | 439 | 125 | ||||||||||||
Denominator
for diluted EPS
|
45,598 | 44,340 | 45,273 | 44,453 | ||||||||||||
Earnings
per share – basic
|
$ | 0.39 | $ | 0.44 | $ | 0.10 | $ | 0.83 | ||||||||
Earnings
per share – diluted
|
$ | 0.39 | $ | 0.44 | $ | 0.10 | $ | 0.83 |
(In
thousands)
|
Severance
and Member Related Costs
|
Facility
Exit Costs & Other
|
Total
|
|||||||||
Balance
as of January 3, 2009
|
$ | 155 | $ | 224 | $ | 379 | ||||||
Restructuring
charges
|
7,731 | 3,707 | 11,438 | |||||||||
Cash
payments
|
(2,724 | ) | (3,057 | ) | (5,781 | ) | ||||||
Balance
as of October 3, 2009
|
$ | 5,162 | $ | 874 | $ | 6,036 |
(In
thousands)
|
Oct.
3, 2009
|
Jan.
3, 2009
|
||||||
Patents
|
$ | 19,325 | $ | 19,325 | ||||
Customer
relationships and other
|
115,664 | 115,664 | ||||||
Less: accumulated
amortization
|
63,615 | 56,098 | ||||||
$ | 71,374 | $ | 78,891 |
(In millions)
|
2009
|
2010
|
2011
|
2012
|
2013
|
|||||||||||||||
Amortization
Expense
|
$ | 10.0 | $ | 8.6 | $ | 7.2 | $ | 6.2 | $ | 5.8 |
(In
thousands)
|
Office
Furniture
|
Hearth
Products
|
Total
|
|||||||||
Balance
as of January 3, 2009
|
$ | 101,339 | $ | 167,053 | $ | 268,392 | ||||||
Goodwill
increase during period
|
- | 500 | 500 | |||||||||
Goodwill
decrease during period
|
- | (1,027 | ) | (1,027 | ) | |||||||
Balance
as of October 3, 2009
|
$ | 101,339 | $ | 166,526 | $ | 267,865 |
Nine
Months Ended
|
||||||||
(In
thousands)
|
Oct.
3, 2009
|
Sep.
27, 2008
|
||||||
Balance
at beginning of period
|
$ | 13,948 | $ | 12,123 | ||||
Accrual
assumed from acquisition
|
- | 250 | ||||||
Accruals
for warranties issued during period
|
9,715 | 14,449 | ||||||
Adjustments
related to pre-existing warranties
|
(78 | ) | 1,190 | |||||
Settlements
made during the period
|
(10,772 | ) | (14,690 | ) | ||||
Balance
at end of period
|
$ | 12,813 | $ | 13,322 |
Nine Months
Ended
|
||||||||
(In
thousands)
|
Oct.
3, 2009
|
Sep.
27, 2008
|
||||||
Service
cost
|
$ | 293 | $ | 297 | ||||
Interest
cost
|
719 | 722 | ||||||
Expected
return on plan assets
|
- | (268 | ) | |||||
Amortization
of transition obligation
|
381 | 381 | ||||||
Amortization
of (gain)/loss
|
(7 | ) | - | |||||
Net
periodic benefit cost
|
$ | 1,386 | $ | 1,132 |
(in
thousands)
|
Fair
value as of measurement date
|
Quoted
prices in active markets for identical assets
(Level
1)
|
Significant
other observable inputs
(Level
2)
|
Significant
unobservable inputs
(Level
3)
|
||||||||||||
Investment
in target funds
|
$ | 7,901 | $ | - | $ | 7,901 | $ | - | ||||||||
Derivative
financial instrument
|
$ | (2,864 | ) | $ | - | $ | (2,864 | ) | $ | - |
(in
thousands)
|
Fair
value as of measurement date
|
Quoted
prices in active markets for identical assets
(Level
1)
|
Significant
other observable inputs
(Level
2)
|
Significant
unobservable inputs
(Level
3)
|
||||||||||||
Marketable
securities
|
$ | 3,696 | $ | 3,696 | $ | - | $ | - | ||||||||
Investment
in target funds
|
$ | 25,047 | $ | - | $ | 25,047 | $ | - | ||||||||
Derivative
financial instrument
|
$ | ( 3,106 | ) | $ | - | $ | ( 3,106 | ) | $ | - |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
(In
thousands)
|
Oct.
3,
2009
|
Sep.
27,
2008
|
Oct.
3,
2009
|
Sep.
27,
2008
|
||||||||||||
Net
Sales:
|
||||||||||||||||
Office
Furniture
|
$ | 379,913 | $ | 560,661 | $ | 1,041,747 | $ | 1,541,207 | ||||||||
Hearth
Products
|
74,043 | 102,480 | 200,865 | 298,431 | ||||||||||||
$ | 453,956 | $ | 663,141 | $ | 1,242,612 | $ | 1,839,638 | |||||||||
Operating
Profit (Loss):
|
||||||||||||||||
Office
furniture (1)
|
||||||||||||||||
Operations
before restructuring charges
|
$ | 41,048 | $ | 40,583 | $ | 64,001 | $ | 92,327 | ||||||||
Restructuring
and impairment charges
|
(2,954 | ) | (1,072 | ) | (8,451 | ) | (3,943 | ) | ||||||||
Office
furniture – net
|
38,094 | 39,511 | 55,550 | 88,384 | ||||||||||||
Hearth
products
|
||||||||||||||||
Operations
before restructuring charges
|
3,305 | 4,148 | (13,731 | ) | 2,843 | |||||||||||
Restructuring
and impairment charges
|
(1,486 | ) | (425 | ) | (4,952 | ) | (401 | ) | ||||||||
Hearth
products – net
|
1,819 | 3,723 | (18,683 | ) | 2,442 | |||||||||||
Total
operating profit
|
39,913 | 43,234 | 36,867 | 90,826 | ||||||||||||
Unallocated
corporate expense
|
(10,908 | ) | (13,644 | ) | (29,653 | ) | (33,562 | ) | ||||||||
Income
(loss) before income taxes
|
$ | 29,005 | $ | 29,590 | $ | 7,214 | $ | 57,264 | ||||||||
Depreciation
& Amortization Expense:
|
||||||||||||||||
Office
furniture
|
$ | 12,958 | $ | 12,936 | $ | 39,857 | $ | 37,583 | ||||||||
Hearth
products
|
4,237 | 3,785 | 13,117 | 11,479 | ||||||||||||
General
corporate
|
738 | 1,121 | 2,741 | 3,345 | ||||||||||||
$ | 17,933 | $ | 17,842 | $ | 55,715 | $ | 52,407 | |||||||||
Capital
Expenditures:
|
||||||||||||||||
Office
furniture
|
$ | 2,498 | $ | 15,125 | $ | 8,227 | $ | 44,973 | ||||||||
Hearth
products
|
537 | 3,163 | 2,237 | 8,350 | ||||||||||||
General
corporate
|
86 | 363 | 410 | 1,267 | ||||||||||||
$ | 3,121 | $ | 18,651 | $ | 10,874 | $ | 54,590 | |||||||||
As
of
Oct.
3,
2009
|
As
of
Sep.
27,
2008
|
|||||||||||||||
Identifiable
Assets:
|
||||||||||||||||
Office
furniture
|
$ | 631,369 | $ | 828,095 | ||||||||||||
Hearth
products
|
309,219 | 340,467 | ||||||||||||||
General
corporate
|
83,796 | 107,638 | ||||||||||||||
$ | 1,024,384 | $ | 1,276,200 |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||||||||||
(In
thousands)
|
Oct.
3,
2009
|
Sep.
27,
2008
|
Percent
Change
|
Oct.
3,
2009
|
Sep.
27,
2008
|
Percent
Change
|
||||||||||||||||||
Net
sales
|
$ | 453,956 | $ | 663,141 | -31.5 | $ | 1,242,612 | $ | 1,839,638 | -32.5 | ||||||||||||||
Cost
of sales
|
287,352 | 438,423 | -34.5 | 821,792 | 1,221,439 | -32.7 | ||||||||||||||||||
Gross
profit
|
166,604 | 224,718 | -25.9 | 420,820 | 618,199 | -31.9 | ||||||||||||||||||
Selling
& administrative expenses
|
129,897 | 189,577 | -31.5 | 390,920 | 544,805 | -28.2 | ||||||||||||||||||
Restructuring
& impairment charges
|
4,440 | 1,497 | 196.6 | 13,403 | 4,344 | 208.5 | ||||||||||||||||||
Operating
income (loss)
|
32,267 | 33,644 | -4.1 | 16,497 | 69,050 | -76.1 | ||||||||||||||||||
Interest
expense, net
|
3,116 | 4,037 | -22.8 | 9,103 | 11,635 | -21.8 | ||||||||||||||||||
Earnings
(loss) before income taxes
|
29,151 | 29,607 | -1.5 | 7,394 | 57,415 | -87.1 | ||||||||||||||||||
Income
taxes
|
11,441 | 10,107 | 13.2 | 2,944 | 20,382 | -85.6 | ||||||||||||||||||
Less: Net
income attributable to the noncontrolling interest
|
96 | 11 | 772.7 | 119 | 98 | 21.4 | ||||||||||||||||||
Net
income (loss) attributable to Parent Company
|
$ | 17,614 | $ | 19,489 | -9.6 | $ | 4,331 | $ | 36,935 | -88.3 |
·
|
a
consolidated interest coverage ratio of not less than 4.0 to 1.0, based
upon the ratio of (a) consolidated EBITDA (as defined in the respective
credit agreement) for the last four fiscal quarters to (b) the sum of
consolidated interest charges; and
|
·
|
a
consolidated leverage ratio of not greater than 3.0 to 1.0, based upon the
ratio of (a) the quarter-end consolidated funded indebtedness (as defined
in the respective credit agreement) to (b) consolidated EBITDA for the
last four fiscal quarters.
|
SIGNATURES
|
|
|
HNI
Corporation
|
|||
Dated:
November 5, 2009
|
By:
|
/s/ Kurt A. Tjaden | |
Kurt A. Tjaden | |||
Vice President and Chief Financial Officer | |||
EXHIBIT
INDEX
|
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(31.1)
|
Certification
of the CEO Pursuant to Section 302 of the Sarbanes-Oxley Act of
2002
|
(31.2)
|
Certification
of the CFO Pursuant to Section 302 of the Sarbanes-Oxley Act of
2002
|
(32.1)
|
Certification
of CEO and CFO Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of
2002
|
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