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.
Let me start by saying our members did a great job of managing through challenging second quarter conditions.
We aggressively managed costs and drove productivity, offsetting much of the impact from lower volumes.
We kept our focus on our customers and also played offense, generating and seizing market opportunities where we could.
Moreover, through this experience, we have developed new and better ways to operate our businesses that will benefit us in the future.
We delivered solid profitability in the second quarter.
Our cost containment efforts, combined with the top line benefits from our diversified revenue streams, the breadth of our price points, our channel reach and our ability to quickly pivot, all contributed to the better-than-expected results.
While we told you in the first quarter call that we expected a loss in the second quarter, the combination of these items helped us deliver a quarterly profit.
Moreover, given our solid results in the second quarter, our year-to-date earnings per share is actually up slightly versus the first half of 2019.
This is a great accomplishment given the many headwinds we are facing and it demonstrates, again, what is unique about HNI.
Last quarter, we told you we had two priorities when it comes to our pandemic response.
First is the health and well-being of all HNI members.
Second is the success is to successfully navigate the pandemic in the short term by supporting cash flow and maintaining our strong balance sheet, while remaining focused on our long-term strategies.
So far, we have successfully navigated both priorities.
We quickly adjusted our facilities and were able to operate safely and effectively to serve our customers.
In addition, as we began returning to our offices, we implemented multiple safety measures to ensure a safe process for all members.
Our members' safety remains paramount.
We also further strengthened our balance sheet.
We generated free cash flow in excess of prior year levels and significantly lowered our already modest debt level.
We have the financial strength and cost structure to successfully weather this crisis and any aftershocks for a prolonged period.
Our financial strength and demonstrated ability to flex costs, we are making two changes.
First, we are restoring salaries to their pre-pandemic levels, 60 to 90 days earlier than initially anticipated.
If you recall, we implemented temporary salary reductions as part of our balanced approach to the pandemic.
Our members overdelivered on multiple fronts in the second quarter.
I'm grateful for their efforts and happy that we are able to restore salary levels about a quarter earlier than originally anticipated.
Second, we are accelerating our investment levels.
I would like to note that these actions are a direct result of our financial position and the efforts of our members.
That notwithstanding, we see opportunities and are using our strong financial position to invest.
I will now share some thoughts on the demand picture across our businesses; what we experienced in Q2, what we are experiencing currently and how we view the future.
First, our Q2 year-over-year order activity.
Here is what we have been seeing recently.
Orders in domestic Workplace Furnishings, excluding our e-commerce business, were down 36% in Q2.
Over the past five weeks, they are down 33%.
We are generally seeing a seasonal uptick in orders, but our year-over-year declines have remained relatively constant and are in line with what we have experienced in previous recessions.
E-commerce orders were up 114% in Q2 and up 87% over the past five weeks.
We are confident this business will still deliver strong growth both in the near and long term.
Residential Building Products orders were up 2% in Q2, and we continue to see positive growth rates over the past five weeks.
We believe the secular trends discussed last quarter, which I will detail again in a moment, are providing consistent tailwinds.
We are keeping an eye on land and labor shortages for builders, which could slow down production.
However, indications are encouraging thus far.
Again, [Technical Issues] revenue streams, price point breadth and channel reach are unique to HNI.
And our recent growth rates reflect these benefits.
Next, as we discussed last quarter, we are seeing several positive trends that should provide near-term and post-pandemic revenue support.
In our Workplace Furnishings segment, we see the potential for multiple supportive secular trends.
First, increased office floor plate resets as organizations work to adjust to the new social distancing environment; second, increased demand for our architectural products platform, which can quickly create physical separation with minimal construction time while maintaining natural life; and third, more demand tied to work from home and from increased smaller satellite office locations.
HNI is uniquely positioned to benefit from these trends given the value orientation of many of our brands.
Generally, these trends will take some time to gain momentum.
Most of them will require a broader and more meaningful return to the office than we are currently seeing.
Customers are generally assessing their options right now and are still in a mode of figuring out next steps.
These trends won't be enough to offset near-term cyclical pressure, especially with the new growth in COVID cases nationally.
However, HNI is particularly well positioned to take advantage of these secular opportunities as they develop.
In our Residential Building Products segment, the positive order trends reflect our strong competitive position in the market and specifically with large national builders.
In addition, trends tied to de-urbanization, elevated nesting and work-from-home trends, record low mortgage rates and low housing inventory, all support positive demand patterns and should provide cyclical and secular support going forward.
We are excited about the cyclical strength, secular opportunities and company-specific initiatives within our Residential Building Products segment.
I will then come back and give some concluding thoughts.
Consolidated non-GAAP net income per diluted share was $0.20.
That was down from the $0.38 we reported in the second quarter of 2019.
Second quarter consolidated organic sales decreased 21.2% versus the prior year.
Including the benefit of acquisitions, sales were down 20.6%.
Consolidated non-GAAP operating income declined $9.4 million versus prior year on a sales decline of $109 million, which means our deleverage rates or decremental margin was 8.6%.
That's well below our targeted range of 25%, which includes the benefits of cost actions.
Given the circumstances, our members did a great job of limiting the impact of declining volume.
In the Workplace Furnishings segment, first quarter sales decreased 24.8% year-over-year.
Despite the top line pressure, we were able to generate $7.8 million of non-GAAP operating income in the segment.
While that is down from the $19.7 million in the prior year quarter, the decremental margin was only 11%.
Sales in our Residential Building Products segment decreased 8.6% year-over-year organically and 6.1% when including acquisitions.
Within the segment, new residential construction revenue declined 5% organically, and sales of remodel and retrofit products were down 15% year-over-year.
Despite the year-over-year sales pressure in Q2, we delivered higher operating profit and expanded operating margin versus the prior year.
Operating profit totaled $14.4 million compared to $13.4 million in the prior year period, and operating margin was 13.1%, up from 11.5% in the second quarter of 2019.
For HNI, overall, second quarter gross profit margin was 36.1%.
This is down 50 basis points year-over-year, primarily due to volume.
Our second quarter non-GAAP tax rate was 32.5%.
This was abnormally high, driven by changes to our full year earnings outlook.
We expect the tax rate to return to more normalized levels moving forward.
I should note that the only difference between second quarter GAAP and non-GAAP earnings per share was tax.
Non-GAAP earnings per share excludes the tax impact from onetime charges that we recorded in the first quarter of 2020.
So overall, our second quarter results again demonstrated the strength of our operating platform.
Let's shift and now talk about our liquidity and debt levels.
At the end of the second quarter, we had $183 million in total debt, which was down $47 million from the first quarter and was $103 million lower than the prior year quarter.
Our gross leverage or gross debt-to-EBITDA ratio was 0.8.
This remains well below the 3.5 times gross leverage covenant in our existing loan agreements.
From a net debt perspective, our leverage ratio of 0.7 is down from 0.8 last quarter and 1.2 in Q2 of last year.
Our teams have done a nice job of managing the balance sheet and generating cash flow.
Free cash flow for the second quarter was $54 million, more than double the $23 million we generated in the second quarter of 2019.
Given our low leverage ratio, free cash flow levels and ability to quickly adapt our cost structure, we expect to maintain our strong financial flexibility in a variety of scenarios.
This means we will remain well within our debt covenants.
We expect to reduce year-end net debt below last year's level, and we project free cash flow will be significantly above our $52 million dividend.
So as we look forward to the rest of the year, the pandemic has limited our visibility and our ability to provide sales and earning guidance.
However, we will share a few thoughts on what we expect.
First, as I just covered, we do feel confident in our ability to generate strong free cash flow and maintain our strong balance sheet under a variety of scenarios.
Second, we expect third quarter sales and profit to track ahead of second quarter 2020 levels, primarily due to seasonality.
Third, we continue to believe 25% is the appropriate deleverage or decremental margin estimate over time.
That's higher than what we just achieved in the second quarter.
We're expecting the impact of salary restorations, investment acceleration and less favorable business mix to pressure decrementals in the second half.
As a result, we expect decrementals to be in the range of 20% for the full year 2020.
In the quarters leading up to the pandemic, investments made in recent years were delivering returns.
You can see evidence in our recent revenue, margin and cash flow trends.
Then this past quarter demonstrated more of what is great about HNI.
Not only were we able to quickly adjust our cost structure to support cash flow on our balance sheet as our Q2 results indicate but we also took additional actions during the pandemic that will be additive to our pre-COVID strategic momentum and support our profitable growth strategic framework.
Our members remain optimistic, nimble and thoughtful, and our pandemic-driven successes will help our businesses going forward.

user
q2 non-gaap earnings per share $0.20.
compensation for hni members & board are being restored to levels existing prior to reductions announced on april 22.
seeing seasonal uptick in sales, expect q3 sales and profit to track ahead of q2 2020 levels.

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