EXHIBIT 99.1
News Release
For Information Contact:
Kelly McGriff, Treasurer and Vice President, Investor Relations (563) 272-7967
Kurt A. Tjaden, Vice President and Chief Financial Officer (563) 272-7400
HNI CORPORATION ANNOUNCES RESULTS FOR
FOURTH QUARTER AND YEAR-END – FISCAL 2009
MUSCATINE, Iowa (February 9, 2010) – HNI Corporation (NYSE: HNI) today announced sales of $413.7 million and a net loss of $10.8 million for the fourth quarter ending January 2, 2010. Net income per diluted share for the quarter was ($0.24) or $0.26 on a non-GAAP basis when excluding restructuring and impairment charges and transition costs. For fiscal year 2009, the Corporation reported sales of $1.7 billion and a net loss of $6.4 million. Net income per diluted share for the year was ($0.14) or $0.70 on a non-GAAP basis when excluding restructuring and impairment charges, transition costs, and non-operating gains.
Fourth Quarter and FY'09 Summary Comments
"We continued to confront highly challenging market conditions with focused and strong actions during the quarter, aligning our businesses with current demand and investing in long-term growth initiatives. Cost reductions, material favorability and freight efficiencies allowed us to modestly exceed our fourth quarter non-GAAP profit and cash flow expectations.
"We ended the year financially strong and competitively well positioned despite unprecedented challenges. We achieved these results due to the hard work and commitment of our members," said Stan Askren, HNI Corporation Chairman, President and Chief Executive Officer.
Fourth Quarter
Dollars in millions | Three Months Ended | Percent | ||||||||||
except per share data | 1/02/2010 | 1/03/2009 | Change | |||||||||
Net Sales | $ | 413.7 | $ | 637.9 | -35.2 | % | ||||||
Gross Margin | $ | 150.0 | $ | 210.4 | -28.7 | % | ||||||
Gross Margin % | 36.3 | % | 33.0 | % | ||||||||
SG&A | $ | 162.5 | $ | 194.6 | -16.5 | % | ||||||
SG&A % | 39.3 | % | 30.5 | % | ||||||||
Operating Income (Loss) | $ | (12.5 | ) | $ | 15.8 | -179.0 | % | |||||
Operating Income (Loss) % | -3.0 | % | 2.5 | % | ||||||||
Net income (loss) attributable to Parent Company | $ | (10.8 | ) | $ | 8.5 | -226.5 | % | |||||
Earnings per share attributable to Parent Company – Diluted | $ | (0.24 | ) | $ | 0.19 | -226.3 | % |
Fourth Quarter Results – Continuing Operations
· Consolidated net sales decreased $224.3 million or 35.2 percent from the prior year quarter to $413.7 million.
· Gross margins were 3.3 percentage points higher than prior year primarily due to lower material costs and cost reduction initiatives partially offset by lower volume.
· Total selling and administrative expenses, including restructuring and impairment charges, decreased $32.1 million or 16.5 percent due to cost control actions, lower volume related costs and improved distribution efficiencies. These were offset by increased restructuring and impairment charges and transition costs.
· The Corporation recorded $31.6 million of restructuring and impairment charges and transition costs during the fourth quarter. These charges included goodwill and intangible impairment charges of $25.0 million related to various office furniture reporting units, $2.8 million related to cost associated with shutdown and consolidation of office furniture facilities of which $1.3 million were included in cost of sales and $3.8 million related to restructuring of hearth operations of which $0.9 million were included in cost of sales. Included in 2008 were $21.5 million of restructuring and impairment charges. These charges included goodwill and intangible impairment charges of $21.8 million related to various office furniture reporting units offset partially by a favorable adjustment of $0.3 million related to previously announced facility shutdowns.
Fourth Quarter – Non-GAAP Financial Measures (Reconciled with Most Comparable GAAP Financial Measures) | ||||||||||||||||||||||||||||||||
Dollars in millions except per share data | Three Months Ended 1/02/2010 | Three Months Ended 1/03/2009 | ||||||||||||||||||||||||||||||
Gross Profit | SG&A | Operating Income (Loss) | EPS | Gross Profit | SG&A | Operating Income | EPS | |||||||||||||||||||||||||
As Reported (GAAP) | $ | 150.0 | $ | 162.5 | $ | (12.5 | ) | $ | (0.24 | ) | $ | 210.4 | $ | 194.6 | $ | 15.8 | $ | 0.19 | ||||||||||||||
% of Net Sales | 36.3 | % | 39.3 | % | -3.0 | % | 33.0 | % | 30.5 | % | 2.5 | % | ||||||||||||||||||||
Restructuring and impairment | $ | 1.2 | $ | (27.0 | ) | $ | 28.2 | $ | 0.45 | - | $ | (21.5 | ) | $ | 21.5 | $ | 0.35 | |||||||||||||||
Transition costs | $ | 1.0 | $ | (2.4 | ) | $ | 3.4 | $ | 0.05 | - | - | - | - | |||||||||||||||||||
Redeemable liability adjustments | - | - | - | - | $ | 5.7 | $ | (5.7 | ) | $ | (0.09 | ) | ||||||||||||||||||||
Results (non-GAAP) | $ | 152.1 | $ | 133.0 | $ | 19.1 | $ | 0.26 | $ | 210.4 | $ | 178.8 | $ | 31.6 | $ | 0.45 | ||||||||||||||||
% of Net Sales | 36.8 | % | 32.2 | % | 4.6 | % | 33.0 | % | 28.0 | % | 5.0 | % |
Full Year
Dollars in millions | Twelve Months Ended | Percent | ||||||||||
except per share data | 1/02/2010 | 1/03/2009 | Change | |||||||||
Net Sales | $ | 1,656.3 | $ | 2,477.6 | -33.1 | % | ||||||
Gross Margin | $ | 570.8 | $ | 828.6 | -31.1 | % | ||||||
Gross Margin % | 34.5 | % | 33.4 | % | ||||||||
SG&A | $ | 566.8 | $ | 743.7 | -23.8 | % | ||||||
SG&A % | 34.2 | % | 30.0 | % | ||||||||
Operating Income | $ | 4.0 | $ | 84.9 | -95.3 | % | ||||||
Operating Income % | 0.2 | % | 3.4 | % | ||||||||
Net income (loss) attributable to Parent Company | $ | (6.4 | ) | $ | 45.5 | -114.2 | % | |||||
Earnings per share attributable to Parent Company – Diluted | $ | (0.14 | ) | $ | 1.02 | -113.7 | % |
Full Year Results – Continuing Operations
· Net sales decreased $821.3 million, or 33.1 percent, to $1.7 billion compared to $2.5 billion in the prior year. Acquisitions added $10 million or 0.4 percentage points of sales.
· Gross margins increased to 34.5 percent compared to 33.4 percent last year due to increased price realization, lower material costs and cost reduction initiatives partially offset by lower volume.
· Total selling and administrative expenses, including restructuring charges, decreased $176.9 million or 23.8 percent due to cost control actions, lower volume related costs and improved distribution efficiencies. These were partially offset by increased restructuring and impairment charges and transition costs. Included in 2009 were $40.4 million of restructuring and impairment charges compared to $25.9 million in 2008.
· The Corporation's effective tax rate for 2009 was 18.4% compared to 34.1% in 2008 primarily as a result of lower pre-tax income.
Cash flow from operations for the year was $193.2 million compared to $174.4 million last year. The increase was driven by strong working capital management offset partially by lower earnings. Capital expenditures were $17.6 million in 2009 compared to $71.5 million in 2008. The Corporation reduced total debt $122 million during 2009 using cash flow from operations and proceeds from the sale of long-term investments.
Full Year – Non-GAAP Financial Measures (Reconciled with Most Comparable GAAP Financial Measures) | ||||||||||||||||||||||||||||||||
Dollars in millions except per share data | Twelve Months Ended 1/02/2010 | Twelve Months Ended 1/03/2009 | ||||||||||||||||||||||||||||||
Gross Profit | SG&A | Operating Income | EPS | Gross Profit | SG&A | Operating Income | EPS | |||||||||||||||||||||||||
As Reported (GAAP) | $ | 570.8 | $ | 566.8 | $ | 4.0 | $ | (0.14 | ) | $ | 828.6 | $ | 743.7 | $ | 84.9 | $ | 1.02 | |||||||||||||||
% of Net Sales | 34.5 | % | 34.2 | % | 0.2 | % | 33.4 | % | 30.0 | % | 3.4 | % | ||||||||||||||||||||
Restructuring and impairment | $ | 3.9 | $ | (40.4 | ) | $ | 44.4 | $ | 0.80 | $ | 0.4 | $ | (25.9 | ) | $ | 26.3 | $ | 0.39 | ||||||||||||||
Transition costs | $ | 1.3 | $ | (2.6 | ) | $ | 3.9 | $ | 0.07 | $ | 5.3 | $ | (3.5 | ) | $ | 8.8 | $ | 0.13 | ||||||||||||||
Non-operating gains | - | $ | 1.6 | $ | (1.6 | ) | $ | (0.03 | ) | - | - | - | - | |||||||||||||||||||
Redeemable liability adjustments | - | - | - | - | $ | 5.7 | $ | (5.7 | ) | $ | (0.08 | ) | ||||||||||||||||||||
Results (non-GAAP) | $ | 576.0 | $ | 525.4 | $ | 50.6 | $ | 0.70 | $ | 834.4 | $ | 720.1 | $ | 114.2 | $ | 1.46 | ||||||||||||||||
% of Net Sales | 34.8 | % | 31.7 | % | 3.1 | % | 33.7 | % | 29.1 | % | 4.6 | % |
Office Furniture
Three Months Ended | Percent | Twelve Months Ended | Percent | |||||||||||||||||||||
Dollars in millions | 01/02/2010 | 01/03/2009 | Change | 01/02/2010 | 01/03/2009 | Change | ||||||||||||||||||
Sales | $ | 328.5 | $ | 512.8 | -36.0 | % | $ | 1,370.2 | $ | 2,054.0 | -33.3 | % | ||||||||||||
Operating Profit (Loss) | $ | (5.4 | ) | $ | 12.9 | -141.5 | % | $ | 50.4 | $ | 101.4 | -50.3 | % | |||||||||||
Operating Profit | -1.6 | % | 2.5 | % | 3.7 | % | 4.9 | % |
Non-GAAP Financial Measures (Reconciled with Most Comparable GAAP Measures) | ||||||||||||||||||||||||
Three Months Ended | Percent Change | Twelve Months Ended | Percent Change | |||||||||||||||||||||
Dollars in millions | 1/02/2010 | 1/03/2009 | 1/02/2010 | 1/03/2009 | ||||||||||||||||||||
Operating Profit (Loss) as Reported (GAAP) | $ | (5.4 | ) | $ | 12.9 | -141.5 | % | $ | 50.4 | $ | 101.4 | -50.3 | % | |||||||||||
% of Net Sales | -1.6 | % | 2.5 | % | 3.7 | % | 4.9 | % | ||||||||||||||||
Restructuring and impairment | $ | 27.1 | $ | 21.6 | $ | 37.6 | $ | 26.0 | ||||||||||||||||
Transition costs | $ | 0.6 | $ | - | $ | 1.0 | $ | 8.8 | ||||||||||||||||
Redeemable liability adjustments | - | $ | (5.7 | ) | - | $ | (5.7 | ) | ||||||||||||||||
Operating Profit (non-GAAP) | $ | 22.4 | $ | 28.8 | -22.1 | % | $ | 89.0 | $ | 130.4 | -31.8 | % | ||||||||||||
% of Net Sales | 6.8 | % | 5.6 | % | 6.5 | % | 6.4 | % |
· Fourth quarter and full year sales for the office furniture segment decreased $184.4 million and $683.8 million, respectively. The decrease was driven by substantial weakness in both the supplies driven and contract channels of the office furniture industry. Acquisitions contributed $10 million or 0.5 percentage points for the full year.
· Fourth quarter and full year operating profit decreased $18.3 million and $51.1 million, respectively. Operating profit was negatively impacted by increased restructuring, transition and impairment expenses, lower volume and the impact of prior year gains related to the change in fair value of mandatorily redeemable liabilities from prior acquisitions. These were partially offset by increased price realization, lower material costs, improved distribution efficiencies and cost control initiatives.
Hearth Products
Three Months Ended | Percent | Twelve Months Ended | Percent | |||||||||||||||||||||
Dollars in millions | 1/02/2010 | 1/03/2009 | Change | 1/02/2010 | 1/03/2009 | Change | ||||||||||||||||||
Sales | $ | 85.2 | $ | 125.1 | -31.9 | % | $ | 286.1 | $ | 423.6 | -32.5 | % | ||||||||||||
Operating Profit (Loss) | $ | 1.5 | $ | 9.3 | -84.0 | % | $ | (17.2 | ) | $ | 11.8 | -246.2 | % | |||||||||||
Operating Profit % | 1.7 | % | 7.4 | % | -6.0 | % | 2.8 | % |
Non-GAAP Financial Measures (Reconciled with Most Comparable GAAP Measures) | ||||||||||||||||||||||||
Three Months Ended | Percent Change | Twelve Months Ended | Percent Change | |||||||||||||||||||||
Dollars in millions | 1/02/2010 | 1/03/2009 | 1/02/2010 | 1/03/2009 | ||||||||||||||||||||
Operating Profit (Loss) as Reported (GAAP) | $ | 1.5 | $ | 9.3 | -84.0 | % | $ | (17.2 | ) | $ | 11.8 | -246.2 | % | |||||||||||
% of Net Sales | 1.7 | % | 7.4 | % | -6.0 | % | 2.8 | % | ||||||||||||||||
Restructuring and impairment | $ | 1.0 | $ | (0.1 | ) | $ | 6.7 | $ | 0.3 | |||||||||||||||
Transition costs | $ | 2.1 | $ | - | $ | 2.2 | $ | - | ||||||||||||||||
Non-operating gains | $ | - | $ | - | $ | (0.3 | ) | $ | - | |||||||||||||||
Operating Profit (Loss) (non-GAAP) | $ | 4.6 | $ | 9.2 | -49.8 | % | $ | (8.6 | ) | $ | 12.1 | -171.5 | % | |||||||||||
% of Net Sales | 5.4 | % | 7.4 | % | -3.0 | % | 2.9 | % |
· Fourth quarter and full year sales for the hearth product segment decreased $39.9 million and $137.5 million, respectively driven by significant declines in both the new construction and remodel-retrofit channels.
· Fourth quarter and full year operating profit decreased $7.8 million and $29.0 million, respectively. Operating profit was negatively impacted due to lower volume and higher restructuring and transition costs partially offset by cost reduction initiatives and lower incentive based compensation.
Outlook
"Our markets continue to be dynamic and volatile and are not yet showing signs of near-term improvement. Our office furniture businesses remain uncertain and difficult with competitive
pricing pressure and weakness in day-to-day activity. Hearth demand remains at historically low levels but we are seeing indications of improving market trends. We will continue to reset our cost structure to market conditions while investing for the future," said Mr. Askren.
The Corporation remains focused on creating long-term shareholder value by growing its business through investment in building brands, product solutions and selling models, enhancing its strong member-owner culture, and remaining focused on its long-standing rapid continuous improvement programs to build best total cost and a lean enterprise.
Conference Call
HNI Corporation will host a conference call on Wednesday, February 10, 2010 at 10:00 a.m. (Central) to discuss fourth quarter and year-end 2009 results. To participate, call the conference call line at 1-800-230-1951. A replay of the conference call will be available until Wednesday, February 17, 2010, 11:59 p.m. (Central). To access this replay, dial 1-800-475-6701 – Access Code: 142150. A link to the simultaneous web cast can be found on the Corporation's website at www.hnicorp.com.
Non-GAAP Financial Measures
This earnings release contains certain non-GAAP financial measures. A "non-GAAP financial measure" is defined as a numerical measure of a company's financial performance that excludes or includes amounts different than the most directly comparable measure calculated and presented in accordance with GAAP in the statements of income, balance sheets or statements of cash flow of the company. Pursuant to the requirements of Regulation G, the Corporation has provided a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measure.
The non-GAAP financial measures used within this earnings release are: gross profit, selling and administrative expense, operating income, operating profit and net income per diluted share (i.e., EPS), excluding restructuring and impairment charges, transition costs, redeemable liability adjustments and non-operating gains. These measures are presented because management uses this information to monitor and evaluate financial results and trends. Management believes this information is also useful for investors.
HNI Corporation is a NYSE traded company (ticker symbol: HNI) providing products and solutions for the home and workplace environments. HNI Corporation is the second largest office furniture manufacturer in the world and is also the nation's leading manufacturer and marketer of gas- and wood-burning fireplaces. The Corporation's strong brands, including HON®, Allsteel®, Gunlocke®, Paoli®, Maxon®, Lamex®, HBF® , Heatilator®, Heat & Glo™, Quadra-Fire® and Harman Stove™ have leading positions in their markets. HNI Corporation is committed to maintaining its long-standing corporate values of integrity, financial soundness and a culture of service and responsiveness. More information can be found on the Corporation's website at www.hnicorp.com.
Statements in this release that are not strictly historical, including statements as to plans, outlook, objectives and future financial performance, are "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "could," "confident," "estimate," "expect," "forecast," "hope," "intend," "likely," "may," "plan," "possible," "potential," "predict," "project," "should," "will," "would" and variations of such words and similar expressions identify forward-looking statements. Forward-looking statements involve known and unknown risks, which may cause the Corporation's actual results in the future to differ materially from expected results. These risks include, without limitation: the Corporation's ability to realize financial benefits from its (a) price increases, (b) cost containment and business simplification initiatives for the entire Corporation, (c) investments in strategic acquisitions, new products and brand building, (d) investments in distribution and rapid continuous improvement, (e) ability to maintain its effective tax rate and (f) consolidation and logistical realignment initiatives; uncertainty related to the availability of cash and credit, and the terms and interest rates on which credit would be available, to fund operations and future growth; lower than expected demand for the Corporation's products due to uncertain political and economic conditions, including the recent credit crisis, slow or negative growth rates in global and domestic economies and the protracted decline in the domestic housing market; lower industry growth than expected; major disruptions at key facilities or in the supply of any key raw materials, components or finished goods; uncertainty related to disruptions of business by terrorism, military action, epidemic, acts of God or other Force Majeure events; competitive pricing pressure from foreign and domestic competitors; higher than expected costs and lower than expected supplies of materials (including steel and petroleum based materials); higher than expected costs for energy and fuel; changes in the mix of products sold and of customers purchasing; relationships with distribution channel partners, including the financial viability of distributors and dealers; restrictions imposed by the terms of the Corporation's revolving credit facility and note purchase agreement; currency fluctuations and other factors described in the Corporation's annual and quarterly reports filed with the Securities and Exchange Commission on Forms 10-K and 10-Q. The Corporation undertakes no obligation to update, amend or clarify forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
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HNI CORPORATION
Condensed Consolidated Statement of Operations
Three Months Ended | Twelve Months Ended | |||||||||||||||
(Dollars in thousands, except per share data) | Jan. 2, 2010 | Jan. 3, 2009 | Jan. 2, 2010 | Jan. 3, 2009 | ||||||||||||
Net sales | $ | 413,677 | $ | 637,949 | $ | 1,656,289 | $ | 2,477,587 | ||||||||
Cost of products sold | 263,716 | 427,536 | 1,085,508 | 1,648,975 | ||||||||||||
Gross profit | 149,961 | 210,413 | 570,781 | 828,612 | ||||||||||||
Selling and administrative expenses | 135,426 | 173,065 | 526,346 | 717,870 | ||||||||||||
Restructuring and impairment charges | 27,040 | 21,515 | 40,443 | 25,859 | ||||||||||||
Operating income (loss) | (12,505 | ) | 15,833 | 3,992 | 84,883 | |||||||||||
Interest income | 104 | 326 | 415 | 1,172 | ||||||||||||
Interest expense | 2,666 | 4,384 | 12,080 | 16,865 | ||||||||||||
Earnings (loss) before income taxes | (15,067 | ) | 11,775 | (7,673 | ) | 69,190 | ||||||||||
Income taxes | (4,297 | ) | 3,254 | (1,414 | ) | 23,583 | ||||||||||
Net income (loss) | (10,770 | ) | 8,521 | (6,259 | ) | 45,607 | ||||||||||
Less: Net income attributable to the noncontrolling interest | 3 | 6 | 183 | 157 | ||||||||||||
Net income (loss) attributable to Parent Company | $ | (10,773 | ) | $ | 8,515 | $ | (6,442 | ) | $ | 45,450 | ||||||
Net income (loss) attributable to Parent Company common shareholders – basic | $ | (0.24 | ) | $ | 0.19 | $ | (0.14 | ) | $ | 1.03 | ||||||
Average number of common shares outstanding – basic | 45,054,103 | 44,259,137 | 44,888,809 | 44,309,765 | ||||||||||||
Net income (loss) attributable to Parent Company common shareholders – diluted | $ | (0.24 | ) | $ | 0.19 | $ | (0.14 | ) | $ | 1.02 | ||||||
Average number of common shares outstanding - diluted | 45,054,103 | 44,386,092 | 44,888,809 | 44,433,945 |
Condensed Consolidated Balance Sheet
Assets | Liabilities and Shareholders' Equity | ||||||||||||||||
As of | As of | ||||||||||||||||
Jan. 2, | Jan. 3, | Jan. 2, | Jan. 3, | ||||||||||||||
(Dollars in thousands) | 2010 | 2009 | 2010 | 2009 | |||||||||||||
Cash and cash equivalents | $ | 87,374 | $ | 39,538 | Accounts payable and | ||||||||||||
Short-term investments | 5,994 | 9,750 | accrued expenses | $ | 299,718 | $ | 313,431 | ||||||||||
Receivables | 163,732 | 238,327 | Note payable and current | ||||||||||||||
Inventories | 65,144 | 84,290 | maturities of long-term debt | 39 | 54,494 | ||||||||||||
Deferred income taxes | 20,299 | 16,313 | Current maturities of other | ||||||||||||||
Prepaid expenses and | long-term obligations | 385 | 5,700 | ||||||||||||||
other current assets | 17,728 | 29,623 | |||||||||||||||
Current assets | 360,271 | 417,841 | Current liabilities | 300,142 | 373,625 | ||||||||||||
Long-term debt | 200,000 | 267,300 | |||||||||||||||
Capital lease obligations | - | 43 | |||||||||||||||
Property and equipment - net | 260,102 | 315,606 | Other long-term liabilities | 50,332 | 50,399 | ||||||||||||
Goodwill | 261,114 | 268,392 | Deferred income taxes | 24,227 | 25,271 | ||||||||||||
Other assets | 112,839 | 163,790 | |||||||||||||||
Parent Company shareholders' equity | 419,283 | 448,833 | |||||||||||||||
Noncontrolling interest | 342 | 158 | |||||||||||||||
Shareholders' equity | 419,625 | 448,991 | |||||||||||||||
Total liabilities and | |||||||||||||||||
Total assets | $ | 994,326 | $ | 1,165,629 | shareholders' equity | $ | 994,326 | $ | 1,165,629 | ||||||||
Condensed Consolidated Statement of Cash Flows
Twelve Months Ended | ||||||||
(Dollars in thousands) | Jan. 2, 2010 | Jan. 3, 2009 | ||||||
Net cash flows from (to) operating activities | $ | 193,205 | $ | 174,369 | ||||
Net cash flows from (to) investing activities: | ||||||||
Capital expenditures | (17,554 | ) | (71,496 | ) | ||||
Acquisition spending | (500 | ) | (75,479 | ) | ||||
Other | 31,335 | 15,449 | ||||||
Net cash flows from (to) financing activities | (158,650 | ) | (37,186 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 47,836 | 5,657 | ||||||
Cash and cash equivalents at beginning of period | 39,538 | 33,881 | ||||||
Cash and cash equivalents at end of period | $ | 87,374 | $ | 39,538 |
Business Segment Data
Three Months Ended | Twelve Months Ended | |||||||||||||||
(Dollars in thousands) | Jan. 2, 2010 | Jan. 3, 2009 | Jan. 2, 2010 | Jan. 3, 2009 | ||||||||||||
Net sales: | ||||||||||||||||
Office furniture | $ | 328,450 | $ | 512,830 | $ | 1,370,197 | $ | 2,054,037 | ||||||||
Hearth products | 85,227 | 125,119 | 286,092 | 423,550 | ||||||||||||
$ | 413,677 | $ | 637,949 | $ | 1,656,289 | $ | 2,477,587 | |||||||||
Operating profit (loss): | ||||||||||||||||
Office furniture | ||||||||||||||||
Operations before restructuring and impairment charges | $ | 21,139 | $ | 34,513 | $ | 85,320 | $ | 126,991 | ||||||||
Restructuring and impairment charges | (26,493 | ) | (21,601 | ) | (34,944 | ) | (25,544 | ) | ||||||||
Office furniture - net | (5,354 | ) | 12,912 | 50,376 | 101,447 | |||||||||||
Hearth products | ||||||||||||||||
Operations before restructuring and impairment charges | 2,036 | 9,231 | (11,695 | ) | 12,074 | |||||||||||
Restructuring and impairment charges | (547 | ) | 86 | (5,499 | ) | (315 | ) | |||||||||
Hearth products - net | 1,489 | 9,317 | (17,194 | ) | 11,759 | |||||||||||
Total operating profit (loss) | (3,865 | ) | 22,229 | 33,182 | 113,206 | |||||||||||
Unallocated corporate expense | (11,202 | ) | (10,454 | ) | (40,855 | ) | (44,016 | ) | ||||||||
Income before income taxes | $ | (15,067 | ) | $ | 11,775 | $ | ( 7,673 | ) | $ | 69,190 | ||||||
Depreciation and amortization expense: | ||||||||||||||||
Office furniture | $ | 12,280 | $ | 12,928 | $ | 52,137 | $ | 50,511 | ||||||||
Hearth products | 5,924 | 3,733 | 19,041 | 15,212 | ||||||||||||
General corporate | 948 | 1,087 | 3,689 | 4,432 | ||||||||||||
$ | 19,152 | $ | 17,748 | $ | 74,867 | $ | 70,155 | |||||||||
Capital expenditures – net: | ||||||||||||||||
Office furniture | $ | 5,255 | $ | 14,128 | $ | 13,482 | $ | 59,101 | ||||||||
Hearth products | 1,247 | 2,180 | 3,484 | 10,530 | ||||||||||||
General corporate | 178 | 598 | 588 | 1,865 | ||||||||||||
$ | 6,680 | $ | 16,906 | $ | 17,554 | $ | 71,496 | |||||||||
As of | As of | |||||||||||||||
Jan. 2, 2010 | Jan. 3, 2009 | |||||||||||||||
Identifiable assets: | ||||||||||||||||
Office furniture | $ | 579,187 | $ | 730,348 | ||||||||||||
Hearth products | 291,518 | 326,168 | ||||||||||||||
General corporate | 123,621 | 109,013 | ||||||||||||||
$ | 994,326 | $ | 1,165,629 | |||||||||||||
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