About HNI

HNI company provides workplace furnishings and residential building products. On June 1, 2023, the company acquired Kimball International, Inc. (‘Kimball International’). Segments The company operates through two segments, Workplace Furnishings and Residential Building Products. Workplace Furnishings Workplace Furnishings segment includes furniture systems, seating, storage, tables, architectural products, ancillary products, and hospitality products. These products are sold primarily through a national system of independent dealers, office product distributors, eCommerce retailers, and wholesalers but also directly to end-user customers and federal, state, and local governments. The North American workplace furnishings market consists of two primary channels — the contract channel and the small and medium-sized business (‘SMB’) channel. End-users across both channels are a mix of commercial, financial, healthcare, government, and education customers. The contract channel has traditionally been characterized by sales of office furniture and services to large corporations and organizations, primarily for new office facilities, relocations, and/or office redesigns. Sales made through the contract channel are frequently customized to meet specific client and architect/designer preferences. End users generally purchase through independent office furniture dealers who prepare a custom-designed office layout emphasizing image and design. The selling process is complex, lengthy, and generally has several manufacturers competing for the same projects. The SMB channel, in which the company is a market leader, primarily represents smaller orders of office furniture that are less likely to involve an architect and/or designer. Independent dealers, national office product distributors, eCommerce retailers, and wholesalers are the primary distribution channels in this market. In addition to the above channels, the company sells direct into the hospitality market through the Kimball Hospitality brand. The hospitality end market is served with a complete package of products for guest rooms and public spaces plus service support to the hospitality industry. Serving the hospitality market includes partnering with the most recognized hotel brands to meet their specific requirements for properties throughout the world by working with worldwide manufacturing partners to offer the best solution to fulfill the project. Residential Building Products Residential Building Products segment includes a full array of gas, wood, electric, and pellet-fueled fireplaces, inserts, stoves, facings, outdoor fire pits and fire tables, and accessories. These products are sold through a national system of independent dealers and distributors, as well as company-owned installing distribution and retail outlets. The company is the North American market leader in hearth products. Hearth products are typically purchased by builders during the construction of new homes and homeowners during the renovation of existing homes. Both types of purchases involve seasonality with remodel/retrofit activity being particularly concentrated in the September to December timeframe. Distribution is primarily through independent and company-owned installing distributors and retail outlets. The company competes against a broad range of manufacturers, including Travis Industries, Inc., Innovative Hearth Products, Wolf Steel Ltd. (Napoleon), and FPI Fireplace Products International Ltd. (Regency). Strategy The company’s strategy is to build on its position as a leading manufacturer of workplace furnishings and residential building products. Sales Workplace Furnishings The company designs, manufactures, and markets a broad range of workplace furnishings. The company offers a complete line of panel-based and freestanding office furniture systems, seating, benching, tables, architectural products, storage, ancillary products, hospitality products, and social collaborative items in order to meet the needs of a wide spectrum of organizations. Through its broad product offerings the company is able to service business furniture needs in virtually any setting, including private office, open plan, conference rooms, training areas, cafes, lounges, collaborative spaces, healthcare, and hospitality spaces, among many others. The company possesses significant expertise and vertical manufacturing capabilities allowing it the flexibility to design and manufacture new products in-house to meet changing market needs. To meet the demands of various markets, the company’s products are sold primarily under the company’s brands: HON, Allsteel, Beyond, Gunlocke, HBF, HBF Textiles, HNI India, Kimball, National, Etc., Interwoven, David Edward, KimballHospitality, and D’style. In 2023, the company completed the previously announced exit of its OFM and Respawn brands. The company sells its products through various distribution channels, including the following: Independent, local office products dealers that specialize in the sale of office furniture and/or office products to business, government, education, and health care entities. National office product distributors that sell furniture and office supplies through a national network of dealerships and sales offices. These distributors also sell through on-line and retail office products stores. eCommerce–focused resellers that sell a wide array of business and consumer products to commercial and non-commercial customers. Orders are fulfilled both by the company and/or directly by the eCommerce reseller from inventory held in their facilities. Wholesalers that serve as distributors of the company’s products to independent dealers and national office products distributors. These wholesalers maintain inventories of standard product lines for quick delivery to customers. Direct sales of products to federal, state, and local government offices, or in certain circumstances a lead selling relationship with an end-user. The company’s workplace furnishings sales force consists of sales managers, salespeople, and independent manufacturers’ representatives who collectively provide national sales coverage. Sales managers and salespeople are compensated by a combination of salary and variable performance compensation. The company also makes export sales through HNI International to independent office furniture dealers and wholesale distributors serving select foreign markets. Distributors are principally located in the Caribbean, Latin America, and Mexico. Through HNI India, the company manufactures and distributes office furniture directly to end-users and through independent dealers and distributors primarily in India. Residential Building Products The company’s Residential Building Products segment includes the Hearth & Home Technologies LLC (‘Hearth & Home’) operating unit. Hearth & Home is North America’s largest manufacturer and marketer of prefabricated fireplaces, hearth stoves, and related products. These products are primarily for the home and are sold under the following widely recognized brands: Heatilator, Heat & Glo, Majestic, Monessen, Quadra-Fire, Harman, Vermont Castings, PelPro, Stellar, SimpliFire, The Outdoor GreatRoom Company, and Forge & Flame. The company’s line of hearth products includes a full array of gas, wood, electric, and pellet-fueled fireplaces, inserts, stoves, facings, outdoor fire pits and fire tables, and accessories. Heatilator, Heat & Glo, Majestic, Monessen, and Stellar are brand leaders in the two largest segments of the home fireplace market: gas and wood fireplaces. The company is a leader in ‘direct vent’ fireplaces, which replaces the chimney-venting system used in traditional fireplaces with a less expensive vent through the roof or an outer wall. In addition, the company is a market leader in wood and pellet-burning stoves with its Quadra-Fire, Harman, Vermont Castings, and PelPro product lines, which provide home heating solutions using renewable fuels. Hearth & Home sells its products through independent dealers, distributors, and company-owned installing distribution and retail outlets. The distribution and retail brand of this operating unit is Fireside Hearth & Home. The business has a field sales organization of sales managers, salespeople, and independent manufacturers’ representatives. Largest Customers In the year ended December 30, 2023, the company’s five largest customers represented approximately 17 percent of its consolidated net sales. Intellectual Property As of December 30, 2023, the company owned 183 United States and 127 foreign patents with expiration dates through 2042 and had applications pending for 41 United States and 23 foreign patents. In addition, the company holds 281 United States and 420 foreign trademark registrations and has applications pending for 48 United States and 58 foreign trademarks. The company’s trademarks in are HON, Allsteel, Kimball, National, Heat & Glo, and Heatilator. History HNI company, an Iowa corporation, was incorporated in 1944.