You are given a text that consists of multiple sentences. Your task is to perform abstractive summarization on this text. Use your understanding of the content to express the main ideas and crucial details in a shorter, coherent, and natural sounding text. 
Text: My name is Matt McCall, I'm Vice President, Investor Relations and Corporate Development for HNI Corporation.
Actual results could differ materially.
Our members delivered strong first quarter operating results, and we will come back to that in a moment.
I want to start with an update on the ongoing COVID-19 pandemic.
What we are experiencing, what we are assuming, and how we are currently responding.
Upfront, the two most important points I would like to emphasize are; first, we will prioritize the health and well-being of all HNI members during this pandemic.
And second, we will successfully navigate this pandemic.
With respect to my first point, the HNI culture again is rising to the occasion.
Our members are coming together to support our communities and doing what is necessary to move the business forward.
To help protect our teams, we have aggressively implemented measures consistent with CDC guidelines across our organization.
We have reorganized our production facilities to provide appropriate social distancing.
We have increased the frequency and depth of facility cleaning.
All members able to work remotely are currently doing so.
With these measures in place, we are currently operating in our major facilities.
Additionally, we are utilizing our facilities in Iowa, New York and North Carolina to produce personal protective equipment.
These efforts include the manufacture of washable cloth face masks, face mask coverings and protective gowns for used by healthcare professionals and the public in general.
We are donating these critical supplies to our first responders, healthcare systems and hospitals in our communities.
Let's talk about my second point, how we will successfully navigate this pandemic.
We have a strong balance sheet and have liquidity and cash flow to maintain our business and meet our obligations for a prolonged period.
With the sudden global economic shock -- while the sudden global economic shock has been felt across the majority of our businesses and geographies, we are responding accordingly and our teams are focused on three objectives.
Number one, we are adjusting to the current operating environment and staying vigilant in our short-term scenario planning.
Number two, we are maintaining our long-term strategic focus.
And number three, we are focused on emerging from this period with our business poised to hit the ground running.
Let me detail some of the actions we have taken to date to reduce cost and support our free cash flow.
First, we temporarily reduced salaries across the board.
Base salaries were reduced by 10% for all exempt salaried employees and by 15% for all executives.
My salary was reduced by 25%.
We plan to reevaluate these measures in six months.
Second, our board of directors elected to reduce by 25% both their cap retainers for the next six months and their annual equity award.
Third, to better match staffing levels with demand activity, various groups and/or members have been furloughed.
We are supporting our furloughed members by covering all health and dental insurance premiums during the furloughed period, both the company and member portions.
These furloughs are being continuously reevaluated as conditions evolve.
Fourth, we suspended our share repurchase activity.
As a point of reference, in recent years, buybacks have averaged approximately $55 million annually.
Finally, we reduced our capital expenditure budget for 2020 from approximately $65 million to $35 million.
Our planned growth investment spending for 2020 is being maintained at a reduced level of approximately 50%.
In total, we currently anticipate $60 million to $65 million of cost improvement during 2020 as compared to 2019 with the full run rate expected by mid-Q2.
In addition, from a cash flow perspective, savings associated with our buyback suspension and our capex reductions will add to our liquidity buffer.
Again, these measures are part of our balanced approach to address the impact of the pandemic and are aimed at supporting our members and our free cash flow in 2020 as we navigate through these unchartered waters.
I will now share some thoughts on the business and demand picture, what we are experiencing and currently assuming.
While the extent of the pressure from the crisis is still uncertain, we believe several data points indicate we will see near-term slowdown in our businesses.
The first data point is our recent order activity.
Not surprisingly, our orders over the last four weeks are trending down.
Domestic office furniture orders are down 35% versus prior year period.
That rate does not include e-commerce, which continues to show strong growth.
In fact, our e-commerce orders are up 120% versus the prior year levels, in large part due to a huge spike in demand for home office products.
Orders for our Hearth business during the same period are down 20%.
The second data point to consider is our experience in China.
Our Furniture business in China faced pressure from the pandemic in Q1.
Although China is a very different market compared to the U.S., our experience there may provide insight into the trend we could see domestically.
Demand dropped quickly as measures to counteract the pandemic were implemented.
Approximately eight weeks later, we started to see volume trends recover as businesses began to reopen.
While we are still well below normal levels, the trend has improved.
The third data point to look at is what happened to our markets in previous recessions.
We are not saying the current downturn will play out the same way, as this one is certainly unique, but looking at history gives more data points to consider.
In each of the last two downturns, the commercial furniture industry volume declined a little over 30%.
Building products and housing were hit hard in the last recession.
We are not expecting that level of severity this time.
Compared to the great recession, construction levels are lower, inventories are tighter and there is not an overhang of homes held by speculative buyers and subprime borrowers.
Based on these data points, we anticipate and we are seeing a significant near-term slowdown in our businesses.
Right now, we do not have good visibility on the depth and duration of the decline.
We have run and are prepared for a variety of scenarios.
Despite these near-term pressures, we see the potential for the post-crisis environment to positively impact our business segments in a couple of different ways.
In our Furniture segment, in addition to incremental demand tied to work from home trends, office floor plates will most likely see change to accommodate less dense configurations that better support social distancing.
In fact, in the last few weeks, we have already seen companies reconsider their plant layouts.
In addition, our architectural products platform is also well positioned for this trend.
The diverse product line-up can quickly create physical separation with minimal construction time, while maintaining natural light.
In our Hearth Products segment, we may see increasing benefit from a shift away from dense multifamily construction toward more single-family homes.
This will be a positive demand driver for our Hearth Products segment.
In addition, we believe the extended period of shelter in place could drive elevated remodel spending as consumers look to spend more money where they are spending more time.
I will then come back and highlight the key elements of our long-term strategic framework.
Our members delivered a strong first quarter.
Consolidated non-GAAP net income per diluted share was $0.21, which represented a substantial increase versus the $0.02 reported in the first quarter of 2019.
First quarter consolidated organic sales decreased 2.5% versus the prior year to $469 million.
Including the benefit of acquisitions, sales were down 2.2%.
In the Office Furniture segment, first quarter sales decreased 4.3% year-over-year.
We again generated strong profit growth in Office Furniture with first quarter non-GAAP operating income improving $4 million.
Sales in our Hearth Product segment increased 2.6% year-over-year organically or 3.5% when including acquisitions.
Within the Hearth segment, new residential construction revenue grew 3.2% organically and sales of remodel and retrofit products increased 1.9% year-over-year.
We also showed strong profit improvement in the Hearth segment.
Hearth non-GAAP operating profit increased 17% versus the prior year quarter.
For HNI overall, first quarter gross profit margin expanded 220 basis points year-over-year to 37.6%.
Non-GAAP operating profit grew 279% versus the prior year.
And non-GAAP operating margin in the first quarter expanded 220 basis points to 3% of net sales.
Our non-GAAP results exclude $37.7 million of charges related to intangible impairments and one-time items related to the COVID-19 crisis.
So overall, our first quarter results demonstrate the strength of our operating platform.
Our annual productivity and cost saving efforts again drove improved profitability.
Let's now talk about our liquidity and debt levels.
At the end of the first quarter, we had $230 million in total debt, representing a gross leverage ratio of 1.0.
This is well below the 3.5 times gross leverage covenant in our existing loan agreements.
Our first debt maturity is not until 2023.
Liquidity, as measured by the combination of cash and available capacity on our lending facilities, totaled more than $350 million at quarter end.
This is equal to approximately two years of recent free cash flow levels.
Let's shift to covering some of the scenario analysis we've done.
Let's start with emphasizing that we are not providing sales and earnings guidance.
That said, we have evaluated our earnings, cash flow and balance sheet under various scenarios.
The scenarios indicate the following.
First, we would be able to manage to a 25% deleverage or decremental margin with our cost actions.
Second, we would generate free cash flow at or above our current dividend level.
Third, year end debt levels would be similar or slightly above last year's ending balance.
And finally, we would remain well within our debt covenants.
They also indicate we should expect a sizable earnings loss in the second quarter.
In our scenarios, we do remain solidly profitable on a non-GAAP basis for the year, and we'll manage cost accordingly.
In addition to these scenarios, we thought we'd share the results of our stress test where we model the limits of our current capital structure.
What it showed is we can support nearly $270 million in debt with zero cash earnings.
This is due in part to the $77 million in annual depreciation and amortization we incur.
Please note, the stress test is not an outlook or scenario.
We are not providing color around what circumstances might drive us to this condition.
It has been solely to illustrate the financial flexibility of our business model.
In my letter to shareholders recently published in the HNI annual report, I introduced our three strategic priorities.
While HNI's unique member-owner culture remains our foundation, our corporatewide focus and members efforts going forward are centered on the following three pillars.
First, we will be laser-focused on the customer.
Customer journeys in our markets are changing and the impacts of the pandemic will create more change.
To capitalize on these changes and identify and take advantage of the new market dynamics, we are investing in new tools and capabilities in the areas of data analytics, digital assets, branding, e-commerce and expanded market coverage.
Second, we are simplifying the buying process.
Buying Office Furniture and Hearth Products can be complicated and time consuming.
There are large numbers of options and configurations to sort through, complicated installations to coordinate and tight timelines to manage.
And navigating the process can take multiple in-person interactions.
Customers today are less willing to go through that kind of process and they are upping their expectations.
We are focused on transforming the experience to reduce their effort.
Third, we will leverage our lean heritage.
HNI's long-standing and well established culture of rapid continuous improvement and our recent results demonstrate our capability to leverage that lean heritage.
We are doubling our efforts here in order to unlock our tool set in support of our first two pillars that I just referenced.
Again, while our near-term focus is on our members' health, safety and our overall cash flow, our strategic framework will help drive significant improvements over the long-term.
Later this year, as the pandemic-driven economy, economic uncertainty moderates, we plan to rollout a more detailed version of our framework.

user
q1 non-gaap earnings per share $0.21.
q1 sales fell 2.2 percent to $468.7 million.
gaap operating profit was impacted by intangible impairments and one-time charges related to covid-19 crisis of $37.7 million in quarter.
base salaries for salaried exempt members were reduced by 10 percent; executive salaries were reduced by 15 percent.
ceo jeff lorenger's salary was reduced by 25 percent.
members have been furloughed.
reduced its capital expenditure budget for 2020 from approximately $65 million to $35 million.
board of directors reduced its cash and equity retainers by 25 percent.

assistant