Steelcase Inc. (NYSE: SCS) today reported third quarter revenue of
$777.9 million, net income of $30.8 million, or $0.26 per share,
and adjusted earnings per share of $0.30. In the prior year,
Steelcase reported revenue of $826.9 million, net income of $11.4
million, or $0.10 per share, and adjusted earnings per share of
$0.20.
Revenue and order growth (decline) compared to the prior year
were as follows:
|
Q3 2024 vs. Q3 2023 |
|
RevenueGrowth (Decline) |
|
Organic Revenue Growth (Decline) |
|
Organic Order Growth |
|
|
|
|
|
|
Americas |
(5)% |
|
(4)% |
|
16% |
|
International |
(7)% |
|
(11)% |
|
10% |
|
Steelcase Inc. |
(6)% |
|
(6)% |
|
15% |
|
|
|
|
|
|
|
|
Revenue decreased 6 percent in the third quarter compared to the
prior year, including 5 percent in the Americas and 7 percent in
International. On an organic basis, revenue decreased 6 percent,
including 4 percent in the Americas and 11 percent in
International. The organic decline was driven by a lower backlog at
the start of the third quarter.
Orders (adjusted for the impact of divestitures and currency
translation effects) grew 15 percent in the third quarter compared
to the prior year. Orders grew 16 percent in the Americas and 10
percent in International. The order growth in the Americas was
primarily driven by large corporate customers in both continuing
and project business. The order growth in International was
primarily driven by Asia Pacific. On a consolidated basis, orders
grew 1 percent sequentially versus the second quarter.
“Consistent with our expectations, orders remained relatively
stable on a sequential basis this quarter and reflected strong
growth versus the prior year,” said Sara Armbruster, president and
CEO. “Our 16 percent year-over-year growth in the Americas was
driven by our large corporate customers, which we believe is
representative of the strength of our offering as companies invest
in their workplaces to support new ways of working.”
Operating income and adjusted operating income were as
follows:
|
Operating income |
|
Adjusted operating income |
|
(Unaudited) |
|
(Unaudited) |
|
Three months ended |
|
Three months ended |
|
November 24,2023 |
|
November 25,2022 |
|
November 24,2023 |
|
November 25,2022 |
Americas |
$ |
37.2 |
|
$ |
17.3 |
|
$ |
40.8 |
|
$ |
33.4 |
International |
|
6.6 |
|
|
3.2 |
|
|
9.3 |
|
|
4.3 |
|
$ |
43.8 |
|
$ |
20.5 |
|
$ |
50.1 |
|
$ |
37.7 |
|
Operating income of $43.8 million in the third quarter
represented an increase of $23.3 million compared to the prior
year, and adjusted operating income of $50.1 million in the third
quarter represented an increase of $12.4 million compared to the
prior year. The current year included a $9.5 million benefit from a
decrease in the valuation of an acquisition earnout liability ($4.7
million was recorded in the Americas and $4.8 million was recorded
in International) and $5.4 million of gains on the sale of land and
other fixed assets in the Americas.
“Our third quarter earnings per share benefited by approximately
$0.10 related to the reversal of an accrued earnout liability and
gains from the sale of fixed assets, which was $0.06 higher than
the third quarter impact we had expected from $10 million of
projected gains from the sale of fixed assets,” said Dave
Sylvester, senior vice president and CFO. “Setting aside the impact
of these items, our third quarter results were in line with our
expectations, as the impact of lower-than-expected revenue was
offset by a more favorable gross margin and lower operating
expenses.”
Gross margin of 32.4 percent in the third quarter represented an
increase of 360 basis points compared to the prior year. The
increase was driven by higher pricing benefits and operational
improvements, partially offset by the impact of lower volume.
Operating expenses of $206.5 million in the third quarter
represented a decrease of $1.6 million compared to the prior year.
Operating expenses benefited from a $9.5 million decrease in the
valuation of an acquisition earnout liability and $5.4 million of
gains on the sale of land and other fixed assets, partially offset
by $7.4 million of higher variable compensation expense and $2.7
million unfavorable currency translation effects.
Total liquidity, comprised of cash and cash equivalents and the
cash surrender value of company-owned life insurance, aggregated to
$424.6 million at the end of the third quarter, representing an
increase of $110.1 million from the end of the second quarter.
Total debt was $446.1 million. Trailing four quarter adjusted
EBITDA of $264.2 million (or 8.3 percent of revenue) represented an
increase of 49 percent compared to the prior year.
The Board of Directors has declared a quarterly cash dividend of
$0.10 per share, to be paid on or before January 16, 2024, to
shareholders of record as of January 4, 2024.
Outlook
At the end of the third quarter, the company’s backlog of
customer orders was approximately $699 million, which was 10
percent lower than the prior year. Orders through the first three
weeks of the fourth quarter of fiscal 2024 grew 7 percent compared
to the prior year. As a result, the company expects fourth quarter
fiscal 2024 revenue to be in the range of $765 to $790 million. The
company reported revenue of $801.7 million in the fourth quarter of
fiscal 2023. The projected revenue range translates to a decline of
1 to 5 percent compared to the prior year, or organic growth
(decline) of (2) to 1 percent.
The company expects to report earnings per share of between
$0.16 to $0.20 for the fourth quarter of fiscal 2024 and adjusted
earnings per share of between $0.19 to $0.23. The company reported
earnings per share of $0.13 and adjusted earnings per share of
$0.19 in the fourth quarter of fiscal 2023.
The fourth quarter estimates include:
- gross margin of approximately 31.5 percent (compared to 29.8
percent in the prior year),
- projected operating expenses of between $210 to $215 million,
which includes $4.3 million of amortization of purchased intangible
assets,
- projected interest expense, investment income and other income,
net, of approximately $3 million and
- a projected effective tax rate of 24 percent.
“We are proud of the progress we've been making in fiscal 2024
to improve our profitability which has supported the increase in
our stock price this year,” said Sara Armbruster. “We've
strengthened our liquidity largely through our strong earnings and
working capital improvements, allowing us to continue investing in
our growth strategies to lead the workplace transformation and
diversify the customer and market segments we serve.”
Business Segment
Results |
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
(Unaudited) |
|
|
|
|
Three Months Ended |
|
|
|
|
Nine Months Ended |
|
|
|
|
November 24,2023 |
|
November 25,2022 |
|
% Change |
|
|
November 24,2023 |
|
November 25,2022 |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas (1) |
$ |
586.1 |
|
$ |
619.8 |
|
(5 |
)% |
|
$ |
1,838.2 |
|
$ |
1,840.6 |
|
— |
% |
International (2) |
191.8 |
|
207.1 |
|
(7 |
)% |
|
546.2 |
|
590.3 |
|
(7 |
)% |
|
$ |
777.9 |
|
$ |
826.9 |
|
(6 |
)% |
|
$ |
2,384.4 |
|
$ |
2,430.9 |
|
(2 |
)% |
Revenue
mix |
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
75.3 |
% |
|
75.0 |
% |
|
|
|
77.1 |
% |
|
75.7 |
% |
|
|
|
International |
24.7 |
% |
|
25.0 |
% |
|
|
|
22.9 |
% |
|
24.3 |
% |
|
|
|
Operating income
(loss) |
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
$ |
37.2 |
|
|
$ |
17.3 |
|
|
|
|
$ |
117.0 |
|
|
$ |
44.2 |
|
|
|
|
International |
|
6.6 |
|
|
|
3.2 |
|
|
|
|
|
(24.9 |
) |
|
|
(7.4 |
) |
|
|
|
|
$ |
43.8 |
|
|
$ |
20.5 |
|
|
|
|
$ |
92.1 |
|
|
$ |
36.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin |
|
5.6 |
% |
|
|
2.5 |
% |
|
|
|
|
3.9 |
% |
|
|
1.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Segment Footnotes
- The Americas segment serves customers in the U.S., Canada, the
Caribbean Islands and Latin America with a comprehensive portfolio
of furniture, architectural, textile and surface imaging products
that are marketed to corporate, government, healthcare, education
and retail customers primarily through the Steelcase, AMQ,
Coalesse, Designtex, HALCON, Orangebox, Smith System and Viccarbe
brands.
- The International segment serves customers in EMEA and Asia
Pacific with a comprehensive portfolio of furniture and
architectural products that are marketed to corporate, government,
education and retail customers primarily through the Steelcase,
Coalesse, Orangebox, Smith System and Viccarbe brands.
QUARTER OVER QUARTER ORGANIC REVENUE GROWTH (DECLINE) BY
SEGMENT |
Q3 2024 vs. Q3
2023 |
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
Steelcase Inc. |
|
Americas |
|
International |
|
|
|
|
|
|
Q3 2023 revenue |
$ |
826.9 |
|
|
$ |
619.8 |
|
|
$ |
207.1 |
|
Divestitures |
|
(11.0) |
|
|
|
(8.6) |
|
|
|
(2.4) |
|
Currency translation
effects |
|
10.6 |
|
|
|
(0.4) |
|
|
|
11.0 |
|
Q3 2023 revenue, adjusted |
$ |
826.5 |
|
|
$ |
610.8 |
|
|
$ |
215.7 |
|
|
|
|
|
|
|
Q3 2024 revenue |
$ |
777.9 |
|
|
$ |
586.1 |
|
|
$ |
191.8 |
|
Organic growth (decline)
$ |
$ |
(48.6) |
|
|
$ |
(24.7) |
|
|
$ |
(23.9) |
|
Organic growth (decline)
% |
(6) |
% |
|
(4) |
% |
|
(11) |
% |
|
|
|
|
|
|
|
|
|
ADJUSTED
EARNINGS PER SHARE |
(Unaudited) |
(Unaudited) |
|
Three Months Ended |
|
November 24,2023 |
|
November 25,2022 |
Earnings per share |
$ |
0.26 |
|
|
$ |
0.10 |
|
Amortization of purchased
intangible assets, per share |
|
0.04 |
|
|
|
0.05 |
|
Income tax effect of
amortization of purchased intangible assets, per share |
|
(0.01 |
) |
|
|
(0.02 |
) |
Restructuring costs, per
share |
|
0.02 |
|
|
|
0.09 |
|
Income tax effect of
restructuring costs, per share |
|
(0.01 |
) |
|
|
(0.02 |
) |
Adjusted earnings per
share |
$ |
0.30 |
|
|
$ |
0.20 |
|
|
ADJUSTED
EBITDA |
(Unaudited) |
|
Three Months Ended |
|
Trailing FourQuarters Ended |
|
February 24,2023 |
|
May 26,2023 |
|
August 25,2023 |
|
November 24,2023 |
|
November 24,2023 |
Net income |
$ |
15.7 |
|
|
$ |
1.5 |
|
|
$ |
27.5 |
|
|
$ |
30.8 |
|
|
$ |
75.5 |
|
Income tax expense |
|
8.7 |
|
|
|
1.4 |
|
|
|
9.5 |
|
|
|
9.8 |
|
|
|
29.4 |
|
Interest expense |
|
7.2 |
|
|
|
6.6 |
|
|
|
6.6 |
|
|
|
6.4 |
|
|
|
26.8 |
|
Depreciation and
amortization |
|
22.8 |
|
|
|
20.4 |
|
|
|
21.3 |
|
|
|
21.1 |
|
|
|
85.6 |
|
Share-based compensation |
|
3.6 |
|
|
|
13.7 |
|
|
|
4.2 |
|
|
|
3.4 |
|
|
|
24.9 |
|
Restructuring costs |
|
3.9 |
|
|
|
8.1 |
|
|
|
7.9 |
|
|
|
2.1 |
|
|
|
22.0 |
|
Adjusted EBITDA |
$ |
61.9 |
|
|
$ |
51.7 |
|
|
$ |
77.0 |
|
|
$ |
73.6 |
|
|
$ |
264.2 |
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
801.7 |
|
|
$ |
751.9 |
|
|
$ |
854.6 |
|
|
$ |
777.9 |
|
|
$ |
3,186.1 |
|
Adjusted EBITDA as a
percentage of revenue |
|
7.7 |
% |
|
|
6.9 |
% |
|
|
9.0 |
% |
|
|
9.5 |
% |
|
|
8.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED
EBITDA |
(Unaudited) |
|
Three Months Ended |
|
Trailing FourQuarters Ended |
|
February 25,2022 |
|
May 27,2022 |
|
August 26,2022 |
|
November 25,2022 |
|
November 25,2022 |
Net income (loss) |
$ |
(2.2 |
) |
|
$ |
(11.4 |
) |
|
$ |
19.6 |
|
|
$ |
11.4 |
|
|
$ |
17.4 |
|
Income tax expense
(benefit) |
|
1.2 |
|
|
|
(4.4 |
) |
|
|
6.8 |
|
|
|
5.2 |
|
|
|
8.8 |
|
Interest expense |
|
6.4 |
|
|
|
6.4 |
|
|
|
7.2 |
|
|
|
7.6 |
|
|
|
27.6 |
|
Depreciation and
amortization |
|
21.0 |
|
|
|
20.2 |
|
|
|
23.5 |
|
|
|
23.5 |
|
|
|
88.2 |
|
Share-based compensation |
|
2.5 |
|
|
|
12.0 |
|
|
|
3.1 |
|
|
|
2.1 |
|
|
|
19.7 |
|
Restructuring costs |
|
— |
|
|
|
4.2 |
|
|
|
0.5 |
|
|
|
10.6 |
|
|
|
15.3 |
|
Adjusted EBITDA |
$ |
28.9 |
|
|
$ |
27.0 |
|
|
$ |
60.7 |
|
|
$ |
60.4 |
|
|
$ |
177.0 |
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
753.1 |
|
|
$ |
740.7 |
|
|
$ |
863.3 |
|
|
$ |
826.9 |
|
|
$ |
3,184.0 |
|
Adjusted EBITDA as a
percentage of revenue |
|
3.8 |
% |
|
|
3.6 |
% |
|
|
7.0 |
% |
|
|
7.3 |
% |
|
|
5.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROJECTED
ORGANIC REVENUE GROWTH (DECLINE) |
Q4 2024 vs. Q4
2023 |
|
|
|
|
Steelcase Inc. |
|
|
|
|
Q4 2023 revenue |
$ |
801.7 |
|
|
Divestitures |
|
(18.8 |
) |
|
Currency translation
effects |
|
1.3 |
|
|
Q4 2023 revenue, adjusted |
$ |
784.2 |
|
|
|
|
|
|
Q4 2024 revenue,
projected |
$ |
765 - 790 |
|
Organic growth (decline)
$ |
$ |
(19) - 6 |
|
Organic growth (decline)
% |
|
(2) - 1 |
% |
|
|
|
|
PROJECTED
ADJUSTED EARNINGS PER SHARE |
|
Three Months Ended |
|
February 23,2024 |
|
February 24,2023 |
Earnings per share |
$ |
0.16 - 0.20 |
|
$ |
0.13 |
|
Amortization of purchased intangible assets, per share |
|
0.04 |
|
|
|
0.05 |
|
Income tax effect of
amortization of purchased intangible assets, per share |
|
(0.01 |
) |
|
|
(0.01 |
) |
Restructuring costs, per
share |
|
— |
|
|
|
0.03 |
|
Income tax effect of
restructuring costs, per share |
|
— |
|
|
|
(0.01 |
) |
Adjusted earnings per
share |
$ |
0.19 - 0.23 |
|
$ |
0.19 |
|
|
Steelcase
Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
|
Three Months Ended |
|
Nine Months Ended |
|
November 24,2023 |
|
November 25,2022 |
|
November 24,2023 |
|
November 25,2022 |
Revenue |
$ |
777.9 |
|
|
100.0 |
% |
|
$ |
826.9 |
|
|
100.0 |
% |
|
$ |
2,384.4 |
|
|
100.0 |
% |
|
$ |
2,430.9 |
|
|
100.0 |
% |
Cost of sales |
|
525.5 |
|
|
67.6 |
|
|
|
587.7 |
|
|
71.0 |
|
|
|
1,611.2 |
|
|
67.6 |
|
|
|
1,748.4 |
|
|
71.9 |
|
Restructuring costs |
|
0.1 |
|
|
— |
|
|
|
1.4 |
|
|
0.2 |
|
|
|
2.9 |
|
|
0.1 |
|
|
|
2.3 |
|
|
0.1 |
|
Gross profit |
|
252.3 |
|
|
32.4 |
|
|
|
237.8 |
|
|
28.8 |
|
|
|
770.3 |
|
|
32.3 |
|
|
|
680.2 |
|
|
28.0 |
|
Operating expenses |
|
206.5 |
|
|
26.5 |
|
|
|
208.1 |
|
|
25.2 |
|
|
|
663.0 |
|
|
27.8 |
|
|
|
630.4 |
|
|
26.0 |
|
Restructuring costs |
|
2.0 |
|
|
0.3 |
|
|
|
9.2 |
|
|
1.1 |
|
|
|
15.2 |
|
|
0.6 |
|
|
|
13.0 |
|
|
0.5 |
|
Operating income |
|
43.8 |
|
|
5.6 |
|
|
|
20.5 |
|
|
2.5 |
|
|
|
92.1 |
|
|
3.9 |
|
|
|
36.8 |
|
|
1.5 |
|
Interest expense |
|
(6.4 |
) |
|
(0.8 |
) |
|
|
(7.6 |
) |
|
(0.9 |
) |
|
|
(19.6 |
) |
|
(0.8 |
) |
|
|
(21.2 |
) |
|
(0.9 |
) |
Investment income |
|
2.3 |
|
|
0.3 |
|
|
|
0.3 |
|
|
— |
|
|
|
3.6 |
|
|
0.1 |
|
|
|
0.7 |
|
|
— |
|
Other income, net |
|
0.9 |
|
|
0.1 |
|
|
|
3.4 |
|
|
0.4 |
|
|
|
4.4 |
|
|
0.2 |
|
|
|
10.9 |
|
|
0.5 |
|
Income before income tax
expense |
|
40.6 |
|
|
5.2 |
|
|
|
16.6 |
|
|
2.0 |
|
|
|
80.5 |
|
|
3.4 |
|
|
|
27.2 |
|
|
1.1 |
|
Income tax expense |
|
9.8 |
|
|
1.2 |
|
|
|
5.2 |
|
|
0.6 |
|
|
|
20.7 |
|
|
0.9 |
|
|
|
7.6 |
|
|
0.3 |
|
Net income |
$ |
30.8 |
|
|
4.0 |
% |
|
$ |
11.4 |
|
|
1.4 |
% |
|
$ |
59.8 |
|
|
2.5 |
% |
|
$ |
19.6 |
|
|
0.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
$ |
43.8 |
|
|
5.6 |
% |
|
$ |
20.5 |
|
|
2.5 |
% |
|
$ |
92.1 |
|
|
3.9 |
% |
|
$ |
36.8 |
|
|
1.5 |
% |
Amortization of purchased
intangible assets |
|
4.2 |
|
|
0.5 |
|
|
|
6.6 |
|
|
0.8 |
|
|
|
12.9 |
|
|
0.6 |
|
|
|
16.8 |
|
|
0.7 |
|
Restructuring costs |
|
2.1 |
|
|
0.3 |
|
|
|
10.6 |
|
|
1.3 |
|
|
|
18.1 |
|
|
0.7 |
|
|
|
15.3 |
|
|
0.6 |
|
Adjusted operating income |
$ |
50.1 |
|
|
6.4 |
% |
|
$ |
37.7 |
|
|
4.6 |
% |
|
$ |
123.1 |
|
|
5.2 |
% |
|
$ |
68.9 |
|
|
2.8 |
% |
|
Americas |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
|
Three Months Ended |
|
Nine Months Ended |
|
November 24,2023 |
|
November 25,2022 |
|
November 24,2023 |
|
November 25,2022 |
Revenue |
$ |
586.1 |
|
100.0 |
% |
|
$ |
619.8 |
|
100.0 |
% |
|
$ |
1,838.2 |
|
100.0 |
% |
|
$ |
1,840.6 |
|
100.0 |
% |
Cost of sales |
|
392.9 |
|
67.0 |
|
|
|
437.2 |
|
70.6 |
|
|
|
1,224.9 |
|
66.6 |
|
|
|
1,312.1 |
|
71.3 |
|
Restructuring costs |
|
0.4 |
|
0.1 |
|
|
|
1.4 |
|
0.2 |
|
|
|
1.0 |
|
0.1 |
|
|
|
2.3 |
|
0.1 |
|
Gross profit |
|
192.8 |
|
32.9 |
|
|
|
181.2 |
|
29.2 |
|
|
|
612.3 |
|
33.3 |
|
|
|
526.2 |
|
28.6 |
|
Operating expenses |
|
155.5 |
|
26.6 |
|
|
|
154.7 |
|
24.9 |
|
|
|
494.4 |
|
26.9 |
|
|
|
469.0 |
|
25.5 |
|
Restructuring costs |
|
0.1 |
|
— |
|
|
|
9.2 |
|
1.5 |
|
|
|
0.9 |
|
— |
|
|
|
13.0 |
|
0.7 |
|
Operating income |
|
37.2 |
|
6.3 |
|
|
|
17.3 |
|
2.8 |
|
|
|
117.0 |
|
6.4 |
|
|
|
44.2 |
|
2.4 |
|
Amortization of purchased
intangible assets |
|
3.1 |
|
0.6 |
|
|
|
5.5 |
|
0.9 |
|
|
|
9.4 |
|
0.5 |
|
|
|
13.4 |
|
0.8 |
|
Restructuring costs |
|
0.5 |
|
0.1 |
|
|
|
10.6 |
|
1.7 |
|
|
|
1.9 |
|
0.1 |
|
|
|
15.3 |
|
0.8 |
|
Adjusted operating income |
$ |
40.8 |
|
7.0 |
% |
|
$ |
33.4 |
|
5.4 |
% |
|
$ |
128.3 |
|
7.0 |
% |
|
$ |
72.9 |
|
4.0 |
% |
|
International |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
|
Three Months Ended |
|
Nine Months Ended |
|
November 24,2023 |
|
November 25,2022 |
|
November 24,2023 |
|
November 25,2022 |
Revenue |
$ |
191.8 |
|
|
100.0 |
% |
|
$ |
207.1 |
|
100.0 |
% |
|
$ |
546.2 |
|
|
100.0 |
% |
|
$ |
590.3 |
|
|
100.0 |
% |
Cost of sales |
|
132.6 |
|
|
69.2 |
|
|
|
150.5 |
|
72.7 |
|
|
|
386.3 |
|
|
70.7 |
|
|
|
436.3 |
|
|
73.9 |
|
Restructuring costs
(benefits) |
|
(0.3 |
) |
|
(0.2 |
) |
|
|
— |
|
— |
|
|
|
1.9 |
|
|
0.4 |
|
|
|
— |
|
|
— |
|
Gross profit |
|
59.5 |
|
|
31.0 |
|
|
|
56.6 |
|
27.3 |
|
|
|
158.0 |
|
|
28.9 |
|
|
|
154.0 |
|
|
26.1 |
|
Operating expenses |
|
51.0 |
|
|
26.6 |
|
|
|
53.4 |
|
25.8 |
|
|
|
168.6 |
|
|
30.9 |
|
|
|
161.4 |
|
|
27.4 |
|
Restructuring costs |
|
1.9 |
|
|
1.0 |
|
|
|
— |
|
— |
|
|
|
14.3 |
|
|
2.6 |
|
|
|
— |
|
|
— |
|
Operating income (loss) |
|
6.6 |
|
|
3.4 |
|
|
|
3.2 |
|
1.5 |
|
|
|
(24.9 |
) |
|
(4.6 |
) |
|
|
(7.4 |
) |
|
(1.3 |
) |
Amortization of purchased
intangible assets |
|
1.1 |
|
|
0.6 |
|
|
|
1.1 |
|
0.6 |
|
|
|
3.5 |
|
|
0.6 |
|
|
|
3.4 |
|
|
0.6 |
|
Restructuring costs |
|
1.6 |
|
|
0.8 |
|
|
|
— |
|
— |
|
|
|
16.2 |
|
|
3.0 |
|
|
|
— |
|
|
— |
|
Adjusted operating income
(loss) |
$ |
9.3 |
|
|
4.8 |
% |
|
$ |
4.3 |
|
2.1 |
% |
|
$ |
(5.2 |
) |
|
(1.0 |
)% |
|
$ |
(4.0 |
) |
|
(0.7 |
)% |
|
Webcast Steelcase will discuss third quarter
results and business outlook on a conference call at 8:30 a.m.
Eastern time tomorrow.
Non-GAAP Financial MeasuresThis earnings
release contains certain non-GAAP financial measures. A “non-GAAP
financial measure” is defined as a numerical measure of a company’s
financial performance that excludes or includes amounts so as to be
different than the most directly comparable measure calculated and
presented in accordance with GAAP in the condensed consolidated
statements of income, balance sheets or statements of cash flows of
the company. The non-GAAP financial measures used are (1) organic
revenue growth (decline), (2) adjusted operating income (loss), (3)
adjusted earnings per share and (4) adjusted EBITDA. Pursuant to
the requirements of Regulation G, the company has provided a
reconciliation of each of the non-GAAP financial measures to the
most directly comparable GAAP financial measure in the tables
above. These measures are supplemental to, and should be used in
conjunction with, the most comparable GAAP measures. Management
uses these non-GAAP financial measures to monitor and evaluate
financial results and trends.
Organic Revenue Growth
(Decline)The company defines organic revenue growth
(decline) as revenue growth (decline) excluding the impact of
acquisitions and divestitures and foreign currency translation
effects. Organic revenue growth (decline) is calculated by
adjusting prior year revenue to include revenues of acquired
companies prior to the date of the company's acquisition, to
exclude revenues of divested companies and to use current year
average exchange rates in the calculation of foreign-denominated
revenue. The company believes organic revenue growth (decline) is a
meaningful metric to investors as it provides a more consistent
comparison of the company's revenue to prior periods as well as to
industry peers.
Adjusted Operating Income
(Loss) and Adjusted Earnings Per ShareThe company defines
adjusted operating income (loss) as operating income (loss)
excluding amortization of purchased intangible assets and
restructuring costs. The company defines adjusted earnings per
share as earnings per share excluding amortization of purchased
intangible assets and restructuring costs, net of related income
tax effects.
Amortization of purchased intangible
assets: The company may record intangible assets (such as backlog,
dealer relationships, trademarks, know-how and designs and
proprietary technology) when it acquires companies. The company
allocates the fair value of purchase consideration to net tangible
and intangible assets acquired based on their estimated fair
values. The fair value estimates for these intangible assets
require management to make significant estimates and assumptions,
which include the useful lives of intangible assets. The company
believes that adjusting for amortization of purchased intangible
assets provides a more consistent comparison of its operating
performance to prior periods as well as to industry peers. As the
company's business strategy in recent years has included an
increased number of acquisitions, intangible asset amortization has
become more significant.
Restructuring costs: Restructuring
costs may be recorded as the company's business strategies change
or in response to changing market trends and economic conditions.
The company believes that adjusting for restructuring costs, which
are primarily associated with business exit and workforce reduction
costs, provides a more consistent comparison of its operating
performance to prior periods as well as to industry peers.
Adjusted EBITDAThe
company defines adjusted EBITDA as earnings before interest, taxes,
depreciation and amortization ("EBITDA") adjusted to exclude
share-based compensation and restructuring costs. The company
believes adjusted EBITDA provides investors with useful information
regarding the operating profitability of the company as well as a
useful comparison to other companies. EBITDA is a measurement
commonly used in capital markets to value companies and is used by
the company's lenders and rating agencies to evaluate its
performance. The company adjusts EBITDA for share-based
compensation as it represents a significant non-cash item which
impacts its earnings. The company also adjusts EBITDA for
restructuring costs to provide a more consistent comparison of its
earnings to prior periods as well as to industry peers.
Forward-looking Statements From time to time,
in written and oral statements, the company discusses its
expectations regarding future events and its plans and objectives
for future operations. These forward-looking statements discuss
goals, intentions and expectations as to future trends, plans,
events, results of operations or financial condition, or state
other information relating to the company, based on current beliefs
of management as well as assumptions made by, and information
currently available to, the company. Forward-looking statements
generally are accompanied by words such as “anticipate,” “believe,”
“could,” “estimate,” “expect,” “forecast,” “intend,” “may,”
“possible,” “potential,” “predict,” “project," "target” or other
similar words, phrases or expressions. Although the company
believes these forward-looking statements are reasonable, they are
based upon a number of assumptions concerning future conditions,
any or all of which may ultimately prove to be inaccurate.
Forward-looking statements involve a number of risks and
uncertainties that could cause actual results to differ materially
from those in the forward-looking statements and vary from the
company's expectations because of factors such as, but not limited
to, competitive and general economic conditions domestically and
internationally; acts of terrorism, war, governmental action,
natural disasters, pandemics and other Force Majeure events;
cyberattacks; changes in the legal and regulatory environment;
changes in raw material, commodity and other input costs; currency
fluctuations; changes in customer demand; and the other risks and
contingencies detailed in the company's most recent Annual Report
on Form 10-K and its other filings with the Securities and
Exchange Commission. Steelcase undertakes no obligation to update,
amend, or clarify forward-looking statements, whether as a result
of new information, future events, or otherwise.
About Steelcase Inc.
Established in 1912, Steelcase is a global design and thought
leader in the world of work. We help people do their best work by
creating places that work better. Along with more than 35 creative
and technology partner brands, we research, design and manufacture
furnishings and solutions for the many places where work happens —
including learning, health and work from home. Our solutions come
to life through our community of expert Steelcase dealers in
approximately 770 locations, as well as our online Steelcase store
and other retail partners. Founded in Grand Rapids, Michigan,
Steelcase is a publicly traded company with fiscal year 2023
revenue of $3.2 billion. With 12,000 global employees and our
dealer community, we come together for people and the planet —
using our business to help the world work better.
STEELCASE INC. |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited) |
(in millions, except per share data) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
November 24,2023 |
|
November 25,2022 |
|
November 24,2023 |
|
November 25,2022 |
Revenue |
$ |
777.9 |
|
|
$ |
826.9 |
|
|
$ |
2,384.4 |
|
|
$ |
2,430.9 |
|
Cost of sales |
|
525.5 |
|
|
|
587.7 |
|
|
|
1,611.2 |
|
|
|
1,748.4 |
|
Restructuring costs |
|
0.1 |
|
|
|
1.4 |
|
|
|
2.9 |
|
|
|
2.3 |
|
Gross profit |
|
252.3 |
|
|
|
237.8 |
|
|
|
770.3 |
|
|
|
680.2 |
|
Operating expenses |
|
206.5 |
|
|
|
208.1 |
|
|
|
663.0 |
|
|
|
630.4 |
|
Restructuring costs |
|
2.0 |
|
|
|
9.2 |
|
|
|
15.2 |
|
|
|
13.0 |
|
Operating income |
|
43.8 |
|
|
|
20.5 |
|
|
|
92.1 |
|
|
|
36.8 |
|
Interest expense |
|
(6.4 |
) |
|
|
(7.6 |
) |
|
|
(19.6 |
) |
|
|
(21.2 |
) |
Investment income |
|
2.3 |
|
|
|
0.3 |
|
|
|
3.6 |
|
|
|
0.7 |
|
Other income, net |
|
0.9 |
|
|
|
3.4 |
|
|
|
4.4 |
|
|
|
10.9 |
|
Income before income tax expense |
|
40.6 |
|
|
|
16.6 |
|
|
|
80.5 |
|
|
|
27.2 |
|
Income tax expense |
|
9.8 |
|
|
|
5.2 |
|
|
|
20.7 |
|
|
|
7.6 |
|
Net income |
$ |
30.8 |
|
|
$ |
11.4 |
|
|
$ |
59.8 |
|
|
$ |
19.6 |
|
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
|
Basic |
$ |
0.26 |
|
|
$ |
0.10 |
|
|
$ |
0.50 |
|
|
$ |
0.17 |
|
Diluted |
$ |
0.26 |
|
|
$ |
0.10 |
|
|
$ |
0.50 |
|
|
$ |
0.17 |
|
Weighted average shares
outstanding - basic |
|
118.9 |
|
|
|
117.2 |
|
|
|
118.5 |
|
|
|
117.1 |
|
Weighted average shares
outstanding - diluted |
|
119.4 |
|
|
|
117.6 |
|
|
|
119.0 |
|
|
|
117.4 |
|
|
|
|
|
|
|
|
|
Dividends declared and paid
per common share |
$ |
0.100 |
|
|
$ |
0.100 |
|
|
$ |
0.300 |
|
|
$ |
0.390 |
|
|
STEELCASE INC. |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(in millions) |
|
(Unaudited) |
|
|
|
November 24,2023 |
|
February 24,2023 |
ASSETS |
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
262.0 |
|
|
$ |
90.4 |
|
Accounts receivable, net of allowance of $6.3 and $6.5 |
|
354.5 |
|
|
|
373.3 |
|
Inventories |
|
259.8 |
|
|
|
319.7 |
|
Prepaid expenses |
|
31.0 |
|
|
|
28.9 |
|
Assets held for sale |
|
19.3 |
|
|
|
29.0 |
|
Other current assets |
|
42.2 |
|
|
|
42.7 |
|
Total current assets |
|
968.8 |
|
|
|
884.0 |
|
|
|
|
|
Property, plant and equipment,
net of accumulated depreciation of $1,116.8 and $1,088.6 |
|
362.2 |
|
|
|
376.5 |
|
Company-owned life insurance
("COLI") |
|
162.6 |
|
|
|
157.3 |
|
Deferred income taxes |
|
117.6 |
|
|
|
117.3 |
|
Goodwill |
|
274.9 |
|
|
|
276.8 |
|
Other intangible assets, net
of accumulated amortization of $110.6 and $97.6 |
|
98.8 |
|
|
|
111.2 |
|
Investments in unconsolidated
affiliates |
|
52.6 |
|
|
|
51.1 |
|
Right-of-use operating lease
assets |
|
171.7 |
|
|
|
198.3 |
|
Other assets |
|
37.7 |
|
|
|
30.3 |
|
Total assets |
$ |
2,246.9 |
|
|
$ |
2,202.8 |
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
Current liabilities: |
|
|
|
Accounts payable |
$ |
231.6 |
|
|
$ |
203.5 |
|
Short-term borrowings and current portion of long-term debt |
|
— |
|
|
|
35.7 |
|
Current operating lease obligations |
|
45.0 |
|
|
|
44.7 |
|
Accrued expenses: |
|
|
|
Employee compensation |
|
150.1 |
|
|
|
120.0 |
|
Employee benefit plan obligations |
|
35.1 |
|
|
|
31.2 |
|
Accrued promotions |
|
20.2 |
|
|
|
26.7 |
|
Customer deposits |
|
54.0 |
|
|
|
50.8 |
|
Other |
|
94.6 |
|
|
|
90.7 |
|
Total current liabilities |
|
630.6 |
|
|
|
603.3 |
|
|
|
|
|
Long-term liabilities: |
|
|
|
Long-term debt less current maturities |
|
446.1 |
|
|
|
445.5 |
|
Employee benefit plan obligations |
|
100.4 |
|
|
|
103.0 |
|
Long-term operating lease obligations |
|
142.1 |
|
|
|
169.9 |
|
Other long-term liabilities |
|
51.8 |
|
|
|
54.9 |
|
Total long-term
liabilities |
|
740.4 |
|
|
|
773.3 |
|
Total liabilities |
|
1,371.0 |
|
|
|
1,376.6 |
|
|
|
|
|
Shareholders’ equity: |
|
|
|
Additional paid-in capital |
|
37.3 |
|
|
|
19.4 |
|
Accumulated other comprehensive income (loss) |
|
(64.8 |
) |
|
|
(72.5 |
) |
Retained earnings |
|
903.4 |
|
|
|
879.3 |
|
Total shareholders’
equity |
|
875.9 |
|
|
|
826.2 |
|
Total liabilities and
shareholders’ equity |
$ |
2,246.9 |
|
|
$ |
2,202.8 |
|
|
STEELCASE INC. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) |
(in millions) |
|
|
|
|
|
Nine Months Ended |
|
November 24,2023 |
|
November 25,2022 |
OPERATING
ACTIVITIES |
|
|
|
Net income |
$ |
59.8 |
|
|
$ |
19.6 |
|
Depreciation and
amortization |
|
62.8 |
|
|
|
67.2 |
|
Share-based compensation |
|
22.1 |
|
|
|
18.0 |
|
Restructuring costs |
|
18.1 |
|
|
|
15.3 |
|
Change in fair value of
contingent consideration |
|
(9.5 |
) |
|
|
— |
|
Other |
|
(12.4 |
) |
|
|
(4.3 |
) |
Changes in operating assets
and liabilities: |
|
|
|
Accounts receivable |
|
5.8 |
|
|
|
(68.1 |
) |
Inventories |
|
59.8 |
|
|
|
(48.2 |
) |
Income taxes receivable |
|
(4.6 |
) |
|
|
25.4 |
|
Other assets |
|
0.3 |
|
|
|
(15.7 |
) |
Accounts payable |
|
30.2 |
|
|
|
7.8 |
|
Employee compensation liabilities |
|
17.3 |
|
|
|
17.0 |
|
Employee benefit obligations |
|
(1.7 |
) |
|
|
(14.0 |
) |
Customer deposits |
|
5.1 |
|
|
|
(19.8 |
) |
Accrued expenses and other liabilities |
|
(1.8 |
) |
|
|
1.2 |
|
Net cash provided by operating
activities |
|
251.3 |
|
|
|
1.4 |
|
|
|
|
|
INVESTING
ACTIVITIES |
|
|
|
Capital expenditures |
|
(37.4 |
) |
|
|
(42.8 |
) |
Proceeds from disposal of
fixed assets |
|
28.2 |
|
|
|
5.6 |
|
Acquisition, net of cash
acquired |
|
— |
|
|
|
(105.3 |
) |
Other |
|
4.0 |
|
|
|
15.0 |
|
Net cash used in investing
activities |
|
(5.2 |
) |
|
|
(127.5 |
) |
|
|
|
|
FINANCING
ACTIVITIES |
|
|
|
Dividends paid |
|
(35.7 |
) |
|
|
(45.6 |
) |
Borrowings on global committed
bank facility |
|
69.0 |
|
|
|
480.9 |
|
Repayments on global committed
bank facility |
|
(69.0 |
) |
|
|
(446.9 |
) |
Repayments on note
payable |
|
(32.2 |
) |
|
|
(2.1 |
) |
Other |
|
(6.1 |
) |
|
|
(2.9 |
) |
Net cash used in financing
activities |
|
(74.0 |
) |
|
|
(16.6 |
) |
Effect of exchange rate
changes on cash and cash equivalents |
|
(0.2 |
) |
|
|
(2.6 |
) |
Net increase (decrease) in
cash, cash equivalents and restricted cash |
|
171.9 |
|
|
|
(145.3 |
) |
Cash and cash equivalents and
restricted cash, beginning of period (1) |
|
97.2 |
|
|
|
207.0 |
|
Cash and cash equivalents and
restricted cash, end of period (2) |
$ |
269.1 |
|
|
$ |
61.7 |
|
(1) |
These amounts include restricted cash of $6.8 and $6.1 as of
February 24, 2023 and February 25, 2022,
respectively. |
(2) |
These amounts include restricted cash of $7.1 and $6.7 as of
November 24, 2023 and November 25, 2022,
respectively. |
|
|
Restricted cash primarily represents funds held in escrow for
potential future workers’ compensation and product liability
claims. The restricted cash balance is included as part of
Other assets on the Condensed Consolidated Balance Sheets.
CONTACT: |
Investor Contact: |
|
Mike O'Meara |
|
Investor Relations |
|
(616) 246 - 4251 |
|
|
|
Media Contact: |
|
Katie Woodruff |
|
Corporate Communications |
|
(616) 915 - 8505 |
|
|
Source:
Steelcase |
SC-ERR |
Steelcase (NYSE:SCS)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024
Steelcase (NYSE:SCS)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024