Revenue during the quarter went down marginally by 2.61 percent to $581.28 million from $596.87 million in the previous year period. Gross margin for the quarter contracted 8 basis points over the previous year period to 37.65 percent. Total expenses were 97.16 percent of quarterly revenues, up from 92 percent for the same period last year. That has resulted in a contraction of 517 basis points in operating margin to 2.84 percent.

Operating income for the quarter was $16.48 million, compared with $47.76 million in the previous year period.

However, the adjusted operating income for the quarter stood at $56.40 million compared to $60.50 million in the prior year period. At the same time, adjusted operating margin contracted 43 basis points in the quarter to 9.70 percent from 10.14 percent in the last year period.

"2016 was another strong year. We increased non-GAAP operating margins 50 basis points while generating significant cash flow and increasing our strong dividend. Our businesses performed well as we strategically repositioned and simplified our portfolio to increase profitability. We continued to significantly invest in our businesses to drive long-term profitable growth. I am pleased with our 2016 results. We exit the year a stronger company, well positioned to drive long-term shareholder value," said Stan Askren, HNI Corporation chairman, president and chief executive officer.

For fiscal year 2017, HNI Corporation expects diluted earnings per share to be in the range of $2.80 to $3.15 on adjusted basis.

For the first-quarter 2017, HNI Corporation forecasts revenue to grow in the range of 3 percent to 6 percent. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.17 to $0.24.

The company has spent $153.03 million cash to meet investing activities during the year as against cash outgo of $112.88 million in the last year.

The company has spent $62.57 million cash to carry out financing activities during the year as against cash outgo of $66.07 million in the last year period.

Cash and cash equivalents stood at $36.31 million as on Dec. 31, 2016, up 27.20 percent or $7.76 million from $28.55 million on Jan. 02, 2016.

Working capital turns negative
Working capital of HNI Corporation has turned negative to $20.43 million on Dec. 31, 2016 from positive $2.47 million on Jan. 02, 2016. Current ratio was at 0.96 as on Dec. 31, 2016, down from 1.01 on Jan. 02, 2016.

Days sales outstanding were almost stable at 18 days for the quarter, when compared with the last year period.

Days inventory outstanding was almost stable at 15 days for the quarter, when compared with the last year period.