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: I'm Vice President, Investor Relations and Corporate Development for HNI Corporation.
Actual results could differ materially.
In the second quarter, our members executed at a high level, delivering substantial year-over-year profit improvement.
The post pandemic recovery continues to provide reasons to be encouraged about both the general environment and our opportunities at HNI.
However, the macro backdrop along with our strong growth also presented new challenges in the quarter related to labor availabilities, supply chain capacity and inflation.
Our teams managed through those challenges to deliver strong results.
Our two differentiated business segments are well positioned to benefit from the recovery of the cycle, multiple secular trends and numerous HNI specific growth initiatives.
We have a track record of effectively deploying capital, driving annual productivity and cost savings and managing through macro and operational challenges.
First, non-GAAP earnings per share doubled year-over-year, despite increasing pressure from inflation and returning costs.
Second, our Residential Building Products segment delivered exceptional performance.
Third, demand in Workplace Furnishings is recovering.
I will start by providing some detail on those highlights.
Marshall will then cover our third quarter outlook.
I will conclude with some general comments.
Our first highlight for the quarter.
We doubled non-GAAP earnings per share versus the prior year, despite increasing pressures in returning costs.
Non-GAAP earnings per share of $0.40 was up 100% from the $0.20 reported in second quarter 2020.
In the quarter, we overcame greater than expected pressures related to material inflation, labor availability and supply chain capacity.
We generated 22% sales growth and our network ramps up to meet that demand.
In addition, as we discussed last quarter, some of the costs related to temporary measures taken in the second quarter of 2020 returned.
Despite these pressures, we grow strong margin expansion and profit growth.
Overall, the second quarter shows the power of our diversified revenue streams, our ability to react quickly to changing market dynamics and our overall operational capability associated with our member owner culture.
Our second highlight for the quarter, we delivered exceptional revenue and profit growth in our Residential Building Products segment.
On a year-over-year basis, total revenue growth exceeded 50% in the quarter and operating profit more than doubled, with operating margins expanding more than 500 basis points from second quarter 2020 levels.
From a channel perspective, new construction revenue was up more than 30% from year ago levels and remodel retrofit sales increased nearly 90% versus the prior year quarter.
Orders were equally strong in the quarter, growing 53% year-over-year.
As the quarter progressed the comps became more difficult, order growth moderated but remained at high levels.
Our value propositions, growth initiatives and supply chain strength continue to resonate with homeowners, homebuyers and builders.
As we look forward, we remain optimistic about the prospects for both remodel retrofit and new construction.
Long-term demographic trends and a persisting housing supply demand and balance will continue to support a prolong housing cycle and elevated remodeling activity.
Nesting and deurbanization trends also provide secular support.
And we have an outstanding opportunity to grow the category in both new construction and remodel retrofit.
As a reminder in new construction two-thirds of homebuyers see having a fireplace is a must-have feature of the home, but less than 40% buy one.
And on the remodel retrofit side, we estimate that only about 3% of all remodeling projects involve a fireplace.
To take advantage of these opportunities, we are driving a better connection with the homebuyer and homeowner and we'll continue to make investments and launch tools that will assist and influence homebuyers and homeowners in their purchase in remodeling journeys.
An example of our investment in our model home is our model home virtual tour capability, where we content -- where our content and messaging seamlessly plugs into the builders virtual experience.
This allows us to reach the homebuyer early in the decision process with consistent and effective content.
We have strong competitive positions in both new construction and R&R, our vertically integrated business model, unmatched product depth and pricing breadth, strong builder relationships and regional distribution infrastructure, all provide differentiation for this business.
As a result, we have significant opportunities ahead of us to grow revenue in the Building Products business.
The third highlight for the quarter.
Our Workplace Furnishings segment is recovering.
On an organic basis, net sales in this segment increased 9% and orders grew 32% versus the prior year period.
Second quarter non-GAAP operating income grew 21% year-over-year despite the pressures discussed earlier.
Our small-to-mid sized customers continue to outperform as does demand in the public sector with orders in our businesses focused on these markets increasing 55% year-over-year in the second quarter, putting us back to pre-pandemic levels.
In addition, the North American contracting market continues to recover with orders in our contract businesses up more than 23% in the second quarter year-over-year.
And in the past five weeks, contract orders were up approximately 30% versus the prior year period.
Looking to the back half, we believe Workplace Furnishings has turned the corner and expect to drive revenue growth through the remainder of the year.
Recent order patterns are encouraging and are indicative of our agility, our competitive position and improving demand trends.
Market demand signals indicate activity will continue to ramp in the back half.
As a result, we continue to expect year-over-year revenue growth in our Workplace Furnishings segment to accelerate as the recovery in our contract business gains momentum.
Our Workplace Furnishings businesses have unmatched price point breadth, channel access and market reach and we are investing in multiple strategic initiatives aimed at driving continued outperformance.
A few examples of our growth initiatives include, the December 2020 acquisition of Design Public Group.
We are seeing strong momentum with DPG.
Year-to-date orders are up over 40% with record bookings in May and June.
DPG is also giving us more access in greater insight into the work-from-home segment and e-commerce possibilities.
Another example, is our recently launched ESR app.
This is a mobile app we built to drive engagement with dealer sales reps and currently provides quick access to marketing content, product information, digitalization and order status updates, all from a single mobile enabled platform.
Over 600 dealer sales reps are already using the app.
We expect that number to grow as we add more capability.
Additionally, we are investing to make our contract dealers more efficient and effective.
This includes technology to streamline the design and selling processes and platforms to make the back-office more efficient.
These investments along with our existing competitive differentiators position us well to benefit from office reentry, work-from-home and deurbanization trends.
Let's start with our outlook for consolidated revenue growth.
We expect third quarter revenue to grow in the mid 20% range compared to the prior year quarter.
Because of our seasonality, this outlook implies third quarter volume will be substantially above second quarter levels, the sequential growth in the mid 20% range.
That level of growth when combined with the general labor and sourcing environment is presenting new challenges.
Our staffing levels and overall supply chain capacity are ramping up, but not as fast as demand.
As a result, we expect labor and supply chain constraints will limit third quarter revenue growth versus the prior year quarter by 4 to 6 percentage points.
That headwind is included in our outlook.
This is a timing impact.
We can solve these constraints over time, we are capturing demand and expect that 4 to 6 percentage points of growth to flow to subsequent quarters.
Let's move to our third quarter outlook for the Residential Building Products segment.
Recent order trends, new home construction activity, the outlook for remodel and retrofit demand and expected benefits tied to our multiple growth initiatives combine to suggest that revenue growth rate in the mid to high 20% range compared to the prior year quarter.
We see continued momentum of both remodel retrofit and new construction.
Now let's shift to our outlook for Workplace Furnishings.
Strong second quarter order trends, our growing backlog and a low prior year comparable adjusted growth rate including acquisition impacts in the low to mid 20% range on a year-over-year basis.
Let's shift to third quarter profitability.
Compared to the prior year quarter, we expect the impact of strong volume growth to be mostly offset by cost challenges related to inflationary pressures, increased growth investments and return of costs associated with temporary actions taken in the prior year or expect operating income to be modestly higher than the third quarter of 2020, operating margins will likely compress in a year-over-year basis.
We do expect margin expansions return post the third quarter, as our recent price actions take hold and we anniversary the temporary cost actions taken during the pandemic.
Finally some comments on our cash flow and balance sheet expectations.
Quarter ending debt levels were approximately $179 million, modestly higher than last quarter and down slightly from the second quarter of last year.
The gross leverage ratio at the end of the second quarter of 2021 was approximately 0.9, unchanged from last quarter.
On sequential basis, while our leverage ratio was unchanged, cash increased by more than $24 million.
We expect free cash flow to ramp up in the second half consistent with normal seasonality and our projected cash flow provide ample capacity for continued growth investment, dividend payments and opportunistic M&A and buyback activity.
Let me wrap up by stating that as we look to the rest of 2021 and into 2022, we remain optimistic about our businesses and our markets.
We continue to gain momentum in Workplace Furnishings, where our winning customer experiences, the multiple strategic investments discussed earlier and our operational excellence will combine to provide a competitive advantage as the market recovers.
Recall our focus in our Workplace Furnishings segment is a combination of driving revenue growth and expanding margins.
We are increasingly confident in the recovery of the Workplace Furnishings market as order strength is broadening across customer groups, project sizes and geographically.
Our improving order growth in the quarter and over the past five weeks is encouraging.
Our unique industry leading Residential Building Products platform is positioned for sustained long-term revenue growth.
Our growth strategies in this segment continue to gain traction and we see strong demand supported by demographics and low housing inventories.
As a reminder, our focus in our Building Products segment is on maintaining our strong margins, while continuing to drive strong revenue growth.
As we move to the next stage of the recovery, we do so position to grow revenue, expand margins and increase cash flow.

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q2 non-gaap earnings per share $0.40.
expects q3 consolidated revenue to grow in mid-20 percent range compared to prior-year quarter.

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