HNI Corporation (NYSE:HNI) Q3 2023 Earnings Conference Call October 31, 2023 11:00 AM ET
Company Participants
Matt McCall - Vice President, Investor Relations & Corporate Development
Jeff Lorenger - Chairman, President and Chief Executive Officer
Marshall Bridges - Senior Vice President and Chief Financial Officer
Conference Call Participants
Steven Ramsey - Thompson Research Group
Reuben Garner - Benchmark Company
Greg Burns - Sidoti & Company
Budd Bugatch - Water Tower Research
Operator
Good day, everyone and welcome to the HNI Corporation's Third 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 speaker's remarks, there will be a question-and-answer session. [Operator Instruction]
I will now turn the conference over to Matt McCall. Please go ahead.
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 third-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 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 am now pleased to turn the call over to Jeff Lorenger. Jeff?
Jeff Lorenger
Thanks, Matt. Good morning. Thank you for joining us. During the third quarter, our profit transformation actions continued to accelerate reflecting the focus and dedication of our members. We delivered 31% year-over-year growth in non-GAAP earnings per share despite facing top-line headwinds from ongoing macroeconomic pressures.
On the call today, I will highlight three key topics first, we continue to deliver strong margin expansion in Workplace Furnishings. However, we are not finished and see more opportunities ahead. Second, the divestiture of Poppin will drive immediate financial benefits and the integration of Kimball International is progressing nicely. KII accretion exceeded our expectations in the quarter and we expect the rate of accretion to increase over time.
Third, we demonstrated the resiliency of our Residential Building Products business model in the face of housing market weakness. Cost reduction actions enacted last quarter helped the operating margin in this segment remain unchanged compared to the same period of 2022. This was despite a year-over-year revenue decline of 22%. Following those highlights Marshall will review our outlook, I will then conclude with some general closing comments before we open the call to your questions.