HNI Corporation (NYSE:HNI) Q2 2023 Earnings Conference Call August 8, 2023 11:00 AM ET

Company Participants

Matt McCall - Vice President, Investor Relations & Corporate Development

Jeff Lorenger - Chairman, President & Chief Executive Officer

Marshall Bridges - Senior Vice President & Chief Financial Officer

Conference Call Participants

Greg Burns - Sidoti

Reuben Garner - Benchmark Company

Budd Bugatch - Water Tower Research

Steven Ramsey - Thompson Research Group

Operator

Good day, everyone, and welcome to the HNI Corporation Second Quarter Fiscal 2023 Results Conference Call. Today's call is being recorded. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]

I would now like to turn the conference over to Mr. Matt McCall. Please go ahead, sir.

Matt McCall

Good morning. My name is Matt McCall, I'm Vice President, Investor Relations and Corporate Development for HNI Corporation. Thank you for joining us to discuss our second quarter fiscal 2023 results. With me today are Jeff Lorenger, Chairman, President and CEO; and Marshall Bridges, Senior Vice President and CFO.

Copies of our financial news release and non-GAAP reconciliations are posted on our website. Statements made during this call that are not strictly historical facts are forward-looking statements, which are subject to known and unknown risks. Actual results could differ materially. The financial news release posted on our website includes additional factors that could affect actual results. The corporation assumes no obligation to update any forward-looking statements made during the call.

I'm now pleased to turn the call over to Jeff Lorenger. Jeff?

Jeff Lorenger

Thanks, Matt. Good morning, and thank you for joining us. Our second quarter results exceeded our expectations, demonstrating the momentum of our strategies, our market positions and our recent actions to streamline our businesses. On the call today, I will highlight three key topics. First, our profit transformation efforts in Workplace Furnishings are ahead of schedule and helped drive non-GAAP profit growth despite lower volume. Our Workplace Furnishings margins have been reset.

Second, since closing the Kimball International acquisition, we have become even more confident in the benefits of the combination. In addition, we have signed an agreement to divest Poppin and anticipate closing in the third quarter. Once closed, the exit will increase our projected attrition and unmask the strength of Kimball International's core business.

And third, we put actions in place to support near-term profitability and residential building products, while staying focused on our long-term strategic investments. Following those highlights, Marshall will review our outlook. I will then conclude with some general closing commentary before we open the call to your questions.