Steelcase Inc. (NYSE: SCS) today reported third quarter revenue of
$794.9 million, net income of $19.1 million, or $0.16 per share,
and adjusted earnings per share of $0.30. In the prior year,
Steelcase reported revenue of $777.9 million and net income of
$30.8 million, or $0.26 per share, and had adjusted earnings per
share of $0.29.
Revenue and order growth (decline) compared to the prior year
were as follows:
| |
Q3 2025 vs. Q3 2024 |
| |
Revenue Growth (Decline) |
|
Organic Revenue Growth (Decline) |
|
Organic Order Growth (Decline) |
| |
|
|
|
|
|
|
Americas |
5 |
% |
|
7 |
% |
|
2 |
% |
| International |
(6)% |
|
(8)% |
|
(8)% |
| Steelcase Inc. |
2 |
% |
|
3 |
% |
|
(1)% |
Revenue grew 2 percent in the third quarter compared to the
prior year, with 5 percent growth in the Americas and a 6 percent
decline in International. On an organic basis, revenue grew 3
percent, with 7 percent growth in the Americas and an 8 percent
decline in International. The Americas growth benefited from a
higher percentage of the beginning backlog shipping during the
quarter compared to the prior year and included higher revenue from
government, large corporate, healthcare and education customers,
while the International decline was driven by most markets in Asia
Pacific, except India, and France.
Orders (adjusted for the impact of a divestiture and currency
translation effects) declined modestly in the third quarter
compared to the prior year, and included 2 percent growth in the
Americas and an 8 percent decline in International. The order
growth in the Americas was driven by government customers. Orders
from large corporate customers strengthened in the last month of
the quarter, but modestly declined overall in the third quarter
compared to the prior year. The order decline in International was
driven by most markets in Asia Pacific and France, net of growth in
Germany and some smaller markets in EMEA.
"Our Americas business posted 7% organic revenue growth this
quarter driven by growth across many of our customer segments, and
we delivered higher than expected adjusted earnings per share,"
said Sara Armbruster, president and CEO. "As we continue to focus
on serving our customers and supporting their workplace strategies,
we posted another quarter of order growth in the Americas, and we
are pleased with the improved trends we saw from our large
corporate customers near the end of the quarter and into
December."
Operating income (loss) and adjusted operating income (loss)
were as follows:
| |
Operating income (loss) |
|
Adjusted operating income (loss) |
| |
(Unaudited) |
|
(Unaudited) |
| |
Three months ended |
|
Three months ended |
| |
November 22,2024 |
|
November 24,2023 |
|
November 22,2024 |
|
November 24,2023 |
|
Americas |
$ |
46.5 |
|
|
$ |
37.2 |
|
$ |
49.7 |
|
|
$ |
39.9 |
| International |
|
(5.5 |
) |
|
|
6.6 |
|
|
(2.4 |
) |
|
|
9.4 |
| |
$ |
41.0 |
|
|
$ |
43.8 |
|
$ |
47.3 |
|
|
$ |
49.3 |
Operating income of $41.0 million in the third quarter
represented a decrease of $2.8 million compared to the prior year.
The prior year included a $9.5 million benefit from a decrease in
the valuation of an acquisition earnout liability and $5.4 million
of gains on the sale of fixed assets, including land, in the
Americas. The current year included the benefits of higher revenue
and gross margin in the Americas compared to the prior year.
Adjusted operating income of $47.3 million in the third quarter
represented a decrease of $2.0 million compared to the prior
year.
"Our International results in the third quarter were below our
expectations and were impacted by demand and some customer-driven
shipment delays," said Dave Sylvester, senior vice president and
CFO. "We implemented additional restructuring actions and other
cost reduction measures during the third quarter, which together
are projected to drive approximately $5 million of annualized cost
savings by the start of fiscal 2026. Also, we are encouraged by
higher project activity levels from some of our global customers in
our international markets and recent wins related to large
opportunities with national accounts in France, Germany and the
Middle East."
Gross margin of 33.4 percent in the third quarter represented an
improvement of 100 basis points compared to the prior year driven
by the benefits of revenue growth in the Americas and cost
reduction initiatives, including savings from our previously
announced restructuring actions.
Operating expenses of $223.8 million in the third quarter
represented an increase of $17.3 million compared to the prior
year. The prior year included favorable impacts of a $9.5 million
decrease in the valuation of an acquisition earnout liability and
$5.4 million of gains on the sale of fixed assets, including land.
The remaining increase was driven by $6.0 million of higher
employee costs, partially offset by a $4.4 million decrease from a
divestiture.
Other expense, net of $12.6 million in the third quarter
included a $15.2 million non-cash charge related to the
annuitization of a pension plan.
Total liquidity, which is comprised of cash and cash
equivalents, short-term investments and the cash surrender value of
company-owned life insurance, aggregated to $576.6 million at the
end of the third quarter and represented an increase of $152.0
million compared to the prior year. Total debt was $446.9 million.
Trailing four quarter adjusted EBITDA of $283.6 million (or 9.0
percent of revenue) represented an increase of 9 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 13, 2025, to
shareholders of record as of December 30, 2024.
Outlook
At the end of the third quarter, the company’s backlog was
approximately $664 million, which was 5 percent lower than the
prior year. Orders in the first three weeks of the fourth quarter
grew 15 percent compared to the prior year and included a number of
large projects scheduled to ship beyond the end of the quarter. The
company expects fourth quarter fiscal 2025 revenue, which contains
an additional week compared to the prior year, to be in the range
of $770 to $795 million. The company reported revenue of $775.2
million in the fourth quarter of fiscal 2024. The projected revenue
range translates to a decline of 1 percent to growth of 3 percent
compared to the prior year, or a decline of 4 to 7 percent on an
organic basis.
The company expects to report earnings per share of between
$0.17 to $0.21 for the fourth quarter of fiscal 2025 and adjusted
earnings per share of between $0.20 to $0.24. The company reported
earnings per share of $0.18 and adjusted earnings per share of
$0.23 in the fourth quarter of fiscal 2024.
The fourth quarter estimates include:
- gross margin of approximately 33.5 percent,
- projected operating expenses of between $230 to $235 million,
which includes $4.3 million of amortization of purchased intangible
assets,
- projected interest expense, net of investment income and other
income, net, of approximately $1 million and
- a projected effective tax rate of approximately 27
percent.
“As work and work patterns continue to change, we remain focused
on developing new solutions and evolving our capabilities to better
serve our customers and dealers,” said Sara Armbruster. "Our teams
have successfully driven higher levels of profitability all year
and we are pleased that our fiscal 2025 adjusted earnings per share
are projected to finish above our target."
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Business
Segment
Results |
|
|
| (in
millions) |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(Unaudited) |
|
|
|
(Unaudited) |
|
|
| |
|
Three Months Ended |
|
|
|
Nine Months Ended |
|
|
| |
|
November 22, 2024 |
|
November 24, 2023 |
|
% Change |
|
November 22, 2024 |
|
November 24, 2023 |
|
% Change |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas (1) |
|
$ |
614.7 |
|
|
$ |
586.1 |
|
|
5 |
% |
|
$ |
1,857.1 |
|
|
$ |
1,838.2 |
|
|
1 |
% |
| International (2) |
|
|
180.2 |
|
|
|
191.8 |
|
|
(6 |
)% |
|
|
520.9 |
|
|
|
546.2 |
|
|
(5 |
)% |
| |
|
$ |
794.9 |
|
|
$ |
777.9 |
|
|
2 |
% |
|
$ |
2,378.0 |
|
|
$ |
2,384.4 |
|
|
— |
% |
| Revenue
mix |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
77.3 |
% |
|
75.3 |
% |
|
|
|
78.1 |
% |
|
77.1 |
% |
|
|
|
| International |
|
22.7 |
% |
|
24.7 |
% |
|
|
|
21.9 |
% |
|
22.9 |
% |
|
|
|
| Operating income
(loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
$ |
46.5 |
|
|
$ |
37.2 |
|
|
|
|
$ |
167.0 |
|
|
$ |
117.0 |
|
|
|
|
| International |
|
|
(5.5 |
) |
|
|
6.6 |
|
|
|
|
|
(18.4 |
) |
|
|
(24.9 |
) |
|
|
|
| |
|
$ |
41.0 |
|
|
$ |
43.8 |
|
|
|
|
$ |
148.6 |
|
|
$ |
92.1 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating
margin |
|
|
5.2 |
% |
|
|
5.6 |
% |
|
|
|
|
6.2 |
% |
|
|
3.9 |
% |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
healthcare, 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 2025
vs. Q3 2024 |
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
| |
|
Steelcase Inc. |
|
Americas |
|
International |
| |
|
|
|
|
|
|
|
Q3 2024 revenue |
|
$ |
777.9 |
|
|
$ |
586.1 |
|
|
$ |
191.8 |
|
| Divestiture |
|
|
(10.6 |
) |
|
|
(10.6 |
) |
|
|
— |
|
| Currency translation
effects |
|
|
4.7 |
|
|
|
(0.1 |
) |
|
|
4.8 |
|
| Q3 2024 revenue, adjusted |
|
$ |
772.0 |
|
|
$ |
575.4 |
|
|
$ |
196.6 |
|
| |
|
|
|
|
|
|
| Q3 2025 revenue |
|
$ |
794.9 |
|
|
$ |
614.7 |
|
|
$ |
180.2 |
|
| Organic growth (decline)
$ |
|
$ |
22.9 |
|
|
$ |
39.3 |
|
|
$ |
(16.4 |
) |
| Organic growth (decline)
% |
|
|
3 |
% |
|
|
7 |
% |
|
|
(8 |
)% |
| ADJUSTED
EARNINGS PER SHARE |
|
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
| |
|
Three Months Ended |
|
Nine Months Ended |
| |
|
November 22, 2024 |
|
November 24, 2023 |
|
November 22, 2024 |
|
November 24, 2023 |
|
Diluted earnings per share |
|
$ |
0.16 |
|
|
$ |
0.26 |
|
|
$ |
0.78 |
|
|
$ |
0.50 |
|
| Amortization of purchased
intangible assets, per share |
|
|
0.04 |
|
|
|
0.04 |
|
|
|
0.11 |
|
|
|
0.11 |
|
| Income tax effect of
amortization of purchased intangible assets, per share |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.03 |
) |
|
|
(0.03 |
) |
| Restructuring costs, per
share |
|
|
0.02 |
|
|
|
0.02 |
|
|
|
0.09 |
|
|
|
0.16 |
|
| Income tax effect of
restructuring costs, per share |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.03 |
) |
|
|
(0.04 |
) |
| Gains on the sale of land, net
of variable compensation impacts, per share |
|
|
— |
|
|
|
(0.01 |
) |
|
|
(0.23 |
) |
|
|
(0.01 |
) |
| Income tax effect of gains on
the sale of land, net of variable compensation impacts, per
share |
|
|
— |
|
|
|
— |
|
|
|
0.06 |
|
|
|
— |
|
| Loss on pension plan
settlement, per share |
|
|
0.13 |
|
|
|
— |
|
|
|
0.13 |
|
|
|
— |
|
| Income tax effect of loss on
pension plan settlement, per share |
|
|
(0.03 |
) |
|
|
— |
|
|
|
(0.03 |
) |
|
|
— |
|
| Adjusted earnings per
share |
|
$ |
0.30 |
|
|
$ |
0.29 |
|
|
$ |
0.85 |
|
|
$ |
0.69 |
|
| ADJUSTED
EBITDA |
|
(Unaudited) |
| |
|
Three Months Ended |
|
Trailing Four Quarters
Ended |
| |
|
February 23, 2024 |
|
May 24, 2024 |
|
August 23, 2024 |
|
November 22, 2024 |
|
November 22, 2024 |
|
Net income |
|
$ |
21.3 |
|
|
$ |
10.9 |
|
|
$ |
63.1 |
|
|
$ |
19.1 |
|
|
$ |
114.4 |
|
| Income tax expense |
|
|
5.3 |
|
|
|
3.2 |
|
|
|
22.8 |
|
|
|
7.0 |
|
|
|
38.3 |
|
| Interest expense |
|
|
6.3 |
|
|
|
6.2 |
|
|
|
6.4 |
|
|
|
6.3 |
|
|
|
25.2 |
|
| Depreciation and
amortization |
|
|
20.8 |
|
|
|
20.2 |
|
|
|
20.0 |
|
|
|
20.0 |
|
|
|
81.0 |
|
| Share-based compensation |
|
|
3.6 |
|
|
|
14.5 |
|
|
|
2.9 |
|
|
|
1.5 |
|
|
|
22.5 |
|
| Restructuring costs |
|
|
4.4 |
|
|
|
6.3 |
|
|
|
2.2 |
|
|
|
2.0 |
|
|
|
14.9 |
|
| Gains on the sale of land, net
of variable compensation impacts |
|
|
— |
|
|
|
— |
|
|
|
(27.9 |
) |
|
|
— |
|
|
|
(27.9 |
) |
| Loss on pension plan
settlement |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15.2 |
|
|
|
15.2 |
|
| Adjusted EBITDA |
|
$ |
61.7 |
|
|
$ |
61.3 |
|
|
$ |
89.5 |
|
|
$ |
71.1 |
|
|
$ |
283.6 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Revenue |
|
$ |
775.2 |
|
|
$ |
727.3 |
|
|
$ |
855.8 |
|
|
$ |
794.9 |
|
|
$ |
3,153.2 |
|
| Adjusted EBITDA as a
percentage of revenue |
|
|
8.0 |
% |
|
|
8.4 |
% |
|
|
10.5 |
% |
|
|
8.9 |
% |
|
|
9.0 |
% |
| ADJUSTED
EBITDA |
|
(Unaudited) |
| |
|
Three Months Ended |
|
Trailing Four Quarters
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 |
|
| Gains on the sale of land, net
of variable compensation impacts |
|
|
(4.0 |
) |
|
|
— |
|
|
|
— |
|
|
|
(0.8 |
) |
|
|
(4.8 |
) |
| Adjusted EBITDA |
|
$ |
57.9 |
|
|
$ |
51.7 |
|
|
$ |
77.0 |
|
|
$ |
72.8 |
|
|
$ |
259.4 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Revenue |
|
$ |
801.7 |
|
|
$ |
751.9 |
|
|
$ |
854.6 |
|
|
$ |
777.9 |
|
|
$ |
3,186.1 |
|
| Adjusted EBITDA as a
percentage of revenue |
|
|
7.2 |
% |
|
|
6.9 |
% |
|
|
9.0 |
% |
|
|
9.4 |
% |
|
|
8.1 |
% |
| PROJECTED
ORGANIC REVENUE DECLINE |
| Q4 2025 vs. Q4
2024 |
|
|
|
| |
|
Steelcase Inc. |
| |
|
|
|
|
Q4 2024 revenue |
|
$ |
775.2 |
|
| Impact of additional week |
|
|
55.0 |
|
| Currency translation
effects |
|
|
(6.1 |
) |
| Q4 2024 revenue, adjusted |
|
$ |
824.1 |
|
| |
|
|
|
| Q4 2025 revenue,
projected |
|
$ |
770 - 795 |
|
| Organic decline $ |
|
$ |
(54) - (29 |
) |
| Organic decline % |
|
|
(7) - (4 |
)% |
| PROJECTED
ADJUSTED EARNINGS PER SHARE |
| |
|
Three Months Ended |
| |
|
February 28, 2025 |
|
February 23, 2024 |
|
Earnings per share |
|
$ |
0.17 - 0.21 |
|
|
$ |
0.18 |
|
| Amortization of purchased
intangible assets, per share |
|
|
0.04 |
|
|
|
0.03 |
|
| Income tax effect of
amortization of purchased intangible assets, per share |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
| Restructuring costs, per
share |
|
|
— |
|
|
|
0.04 |
|
| Income tax effect of
restructuring costs, per share |
|
|
— |
|
|
|
(0.01 |
) |
| Adjusted earnings per
share |
|
$ |
0.20 - 0.24 |
|
|
$ |
0.23 |
|
| Steelcase
Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(Unaudited) |
|
(Unaudited) |
| |
|
Three Months Ended |
|
Nine Months Ended |
| |
|
November 22, 2024 |
|
November 24, 2023 |
|
November 22, 2024 |
|
November 24, 2023 |
|
Revenue |
|
$ |
794.9 |
|
|
100.0 |
% |
|
$ |
777.9 |
|
|
100.0 |
% |
|
$ |
2,378.0 |
|
|
100.0 |
% |
|
$ |
2,384.4 |
|
|
100.0 |
% |
| Cost of sales |
|
|
528.1 |
|
|
66.4 |
|
|
|
525.5 |
|
|
67.6 |
|
|
|
1,572.5 |
|
|
66.1 |
|
|
|
1,611.2 |
|
|
67.6 |
|
| Restructuring costs |
|
|
1.4 |
|
|
0.2 |
|
|
|
0.1 |
|
|
— |
|
|
|
10.3 |
|
|
0.5 |
|
|
|
2.9 |
|
|
0.1 |
|
| Gross profit |
|
|
265.4 |
|
|
33.4 |
|
|
|
252.3 |
|
|
32.4 |
|
|
|
795.2 |
|
|
33.4 |
|
|
|
770.3 |
|
|
32.3 |
|
| Operating expenses |
|
|
223.8 |
|
|
28.1 |
|
|
|
206.5 |
|
|
26.5 |
|
|
|
646.4 |
|
|
27.2 |
|
|
|
663.0 |
|
|
27.8 |
|
| Restructuring costs |
|
|
0.6 |
|
|
0.1 |
|
|
|
2.0 |
|
|
0.3 |
|
|
|
0.2 |
|
|
— |
|
|
|
15.2 |
|
|
0.6 |
|
| Operating income |
|
|
41.0 |
|
|
5.2 |
|
|
|
43.8 |
|
|
5.6 |
|
|
|
148.6 |
|
|
6.2 |
|
|
|
92.1 |
|
|
3.9 |
|
| Interest expense |
|
|
(6.3 |
) |
|
(0.8 |
) |
|
|
(6.4 |
) |
|
(0.8 |
) |
|
|
(18.9 |
) |
|
(0.8 |
) |
|
|
(19.6 |
) |
|
(0.8 |
) |
| Investment income |
|
|
4.0 |
|
|
0.5 |
|
|
|
2.3 |
|
|
0.3 |
|
|
|
9.3 |
|
|
0.4 |
|
|
|
3.6 |
|
|
0.1 |
|
| Other income (expense),
net |
|
|
(12.6 |
) |
|
(1.6 |
) |
|
|
0.9 |
|
|
0.1 |
|
|
|
(12.9 |
) |
|
(0.5 |
) |
|
|
4.4 |
|
|
0.2 |
|
| Income before income tax
expense |
|
|
26.1 |
|
|
3.3 |
|
|
|
40.6 |
|
|
5.2 |
|
|
|
126.1 |
|
|
5.3 |
|
|
|
80.5 |
|
|
3.4 |
|
| Income tax expense |
|
|
7.0 |
|
|
0.9 |
|
|
|
9.8 |
|
|
1.2 |
|
|
|
33.0 |
|
|
1.4 |
|
|
|
20.7 |
|
|
0.9 |
|
| Net income |
|
$ |
19.1 |
|
|
2.4 |
% |
|
$ |
30.8 |
|
|
4.0 |
% |
|
$ |
93.1 |
|
|
3.9 |
% |
|
$ |
59.8 |
|
|
2.5 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating income |
|
$ |
41.0 |
|
|
5.2 |
% |
|
$ |
43.8 |
|
|
5.6 |
% |
|
$ |
148.6 |
|
|
6.2 |
% |
|
$ |
92.1 |
|
|
3.9 |
% |
| Amortization of purchased
intangible assets |
|
|
4.3 |
|
|
0.5 |
|
|
|
4.2 |
|
|
0.5 |
|
|
|
12.8 |
|
|
0.5 |
|
|
|
12.9 |
|
|
0.6 |
|
| Restructuring costs |
|
|
2.0 |
|
|
0.3 |
|
|
|
2.1 |
|
|
0.3 |
|
|
|
10.5 |
|
|
0.5 |
|
|
|
18.1 |
|
|
0.7 |
|
| Gains on the sale of land, net
of variable compensation impacts |
|
|
— |
|
|
— |
|
|
|
(0.8 |
) |
|
(0.1 |
) |
|
|
(27.9 |
) |
|
(1.1 |
) |
|
|
(0.8 |
) |
|
(0.1 |
) |
| Adjusted operating income |
|
$ |
47.3 |
|
|
6.0 |
% |
|
$ |
49.3 |
|
|
6.3 |
% |
|
$ |
144.0 |
|
|
6.1 |
% |
|
$ |
122.3 |
|
|
5.1 |
% |
|
Americas |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(Unaudited) |
|
(Unaudited) |
| |
|
Three Months Ended |
|
Nine Months Ended |
| |
|
November 22, 2024 |
|
November 24, 2023 |
|
November 22, 2024 |
|
November 24, 2023 |
|
Revenue |
|
$ |
614.7 |
|
|
100.0 |
% |
|
$ |
586.1 |
|
|
100.0 |
% |
|
$ |
1,857.1 |
|
|
100.0 |
% |
|
$ |
1,838.2 |
|
|
100.0 |
% |
| Cost of sales |
|
|
399.9 |
|
|
65.1 |
|
|
|
392.9 |
|
|
67.0 |
|
|
|
1,201.8 |
|
|
64.7 |
|
|
|
1,224.9 |
|
|
66.6 |
|
| Restructuring costs |
|
|
0.2 |
|
|
— |
|
|
|
0.4 |
|
|
0.1 |
|
|
|
5.8 |
|
|
0.3 |
|
|
|
1.0 |
|
|
0.1 |
|
| Gross profit |
|
|
214.6 |
|
|
34.9 |
|
|
|
192.8 |
|
|
32.9 |
|
|
|
649.5 |
|
|
35.0 |
|
|
|
612.3 |
|
|
33.3 |
|
| Operating expenses |
|
|
168.1 |
|
|
27.3 |
|
|
|
155.5 |
|
|
26.6 |
|
|
|
482.1 |
|
|
26.0 |
|
|
|
494.4 |
|
|
26.9 |
|
| Restructuring costs |
|
|
— |
|
|
— |
|
|
|
0.1 |
|
|
— |
|
|
|
0.4 |
|
|
— |
|
|
|
0.9 |
|
|
— |
|
| Operating income |
|
|
46.5 |
|
|
7.6 |
|
|
|
37.2 |
|
|
6.3 |
|
|
|
167.0 |
|
|
9.0 |
|
|
|
117.0 |
|
|
6.4 |
|
| Amortization of purchased
intangible assets |
|
|
3.0 |
|
|
0.5 |
|
|
|
3.1 |
|
|
0.6 |
|
|
|
9.2 |
|
|
0.6 |
|
|
|
9.4 |
|
|
0.5 |
|
| Restructuring costs |
|
|
0.2 |
|
|
— |
|
|
|
0.5 |
|
|
0.1 |
|
|
|
6.2 |
|
|
0.3 |
|
|
|
1.9 |
|
|
0.1 |
|
| Gains on the sale of land, net
of variable compensation impacts |
|
|
— |
|
|
— |
|
|
|
(0.9 |
) |
|
(0.2 |
) |
|
|
(30.7 |
) |
|
(1.7 |
) |
|
|
(0.9 |
) |
|
(0.1 |
) |
| Adjusted operating income |
|
$ |
49.7 |
|
|
8.1 |
% |
|
$ |
39.9 |
|
|
6.8 |
% |
|
$ |
151.7 |
|
|
8.2 |
% |
|
$ |
127.4 |
|
|
6.9 |
% |
|
International |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
(Unaudited) |
|
(Unaudited) |
| |
|
Three Months Ended |
|
Nine Months Ended |
| |
|
November 22, 2024 |
|
November 24, 2023 |
|
November 22, 2024 |
|
November 24, 2023 |
|
Revenue |
|
$ |
180.2 |
|
|
100.0 |
% |
|
$ |
191.8 |
|
|
100.0 |
% |
|
$ |
520.9 |
|
|
100.0 |
% |
|
$ |
546.2 |
|
|
100.0 |
% |
| Cost of sales |
|
|
128.2 |
|
|
71.1 |
|
|
|
132.6 |
|
|
69.2 |
|
|
|
370.7 |
|
|
71.2 |
|
|
|
386.3 |
|
|
70.7 |
|
| Restructuring costs
(benefits) |
|
|
1.2 |
|
|
0.7 |
|
|
|
(0.3 |
) |
|
(0.2 |
) |
|
|
4.5 |
|
|
0.8 |
|
|
|
1.9 |
|
|
0.4 |
|
| Gross profit |
|
|
50.8 |
|
|
28.2 |
|
|
|
59.5 |
|
|
31.0 |
|
|
|
145.7 |
|
|
28.0 |
|
|
|
158.0 |
|
|
28.9 |
|
| Operating expenses |
|
|
55.7 |
|
|
31.0 |
|
|
|
51.0 |
|
|
26.6 |
|
|
|
164.3 |
|
|
31.5 |
|
|
|
168.6 |
|
|
30.9 |
|
| Restructuring costs
(benefits) |
|
|
0.6 |
|
|
0.3 |
|
|
|
1.9 |
|
|
1.0 |
|
|
|
(0.2 |
) |
|
— |
|
|
|
14.3 |
|
|
2.6 |
|
| Operating income (loss) |
|
|
(5.5 |
) |
|
(3.1 |
) |
|
|
6.6 |
|
|
3.4 |
|
|
|
(18.4 |
) |
|
(3.5 |
) |
|
|
(24.9 |
) |
|
(4.6 |
) |
| Amortization of purchased
intangible assets |
|
|
1.3 |
|
|
0.8 |
|
|
|
1.1 |
|
|
0.6 |
|
|
|
3.6 |
|
|
0.7 |
|
|
|
3.5 |
|
|
0.6 |
|
| Restructuring costs |
|
|
1.8 |
|
|
1.0 |
|
|
|
1.6 |
|
|
0.8 |
|
|
|
4.3 |
|
|
0.8 |
|
|
|
16.2 |
|
|
3.0 |
|
| Gains on the sale of land, net
of variable compensation impacts |
|
|
— |
|
|
— |
|
|
|
0.1 |
|
|
0.1 |
|
|
|
2.8 |
|
|
0.5 |
|
|
|
0.1 |
|
|
0.1 |
|
| Adjusted operating income
(loss) |
|
$ |
(2.4 |
) |
|
(1.3 |
)% |
|
$ |
9.4 |
|
|
4.9 |
% |
|
$ |
(7.7 |
) |
|
(1.5 |
)% |
|
$ |
(5.1 |
) |
|
(0.9 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Webcast
Steelcase will discuss third quarter results and business
outlook on a conference call at 8:30 a.m. Eastern time tomorrow.
Listeners may access the conference call at
http://ir.steelcase.com.
Non-GAAP Financial Measures
This 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 Share
The company defines adjusted
operating income (loss) as operating income (loss) excluding
amortization of purchased intangible assets, restructuring costs
(benefits) and gains (losses) on the sale of land, net of variable
compensation impacts. The company defines adjusted earnings per
share as earnings per share excluding amortization of purchased
intangible assets, restructuring costs (benefits), gains (losses)
on the sale of land, net of variable compensation impacts, and
gains (losses) on pension plan settlements, and the related income
tax effects of these items.
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.
Restructuring costs (benefits):
Restructuring costs (benefits) 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 (benefits), 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.
Gains (losses) on the sale of land,
net of variable compensation impacts: We may sell land when
conditions are favorable. Gains and losses on the sale of land may
increase or decrease, respectively, our variable compensation
expense. We believe adjusting for these items provides a more
consistent comparison of our operating performance to prior periods
as well as to industry peers. In Q2 2025, we began adjusting for
these items, as we realized a significant gain on the sale of land
during the quarter which had a significant impact on our variable
compensation expense, and we have adjusted the prior periods
presented for consistency and comparability.
Gains (losses) on pension plan
settlements: We realize gains or losses previously reported as
unrealized in Accumulated other comprehensive income (loss) in
Other income (expense), net, in connection with pension plan
settlements when all risks related to the benefit obligations to
plan participants and plan assets are transferred. We believe
adjusting for the gains or losses on pension plan settlements
provides a more consistent comparison of our operating performance
to prior periods as well as to industry peers.
Adjusted EBITDA
The company defines adjusted EBITDA
as earnings before interest, taxes, depreciation and amortization
("EBITDA") adjusted to exclude share-based compensation,
restructuring costs (benefits), gains (losses) on the sale of land,
net of variable compensation impacts, and gains (losses) on pension
plan settlements. 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, gains (losses) on the sale of land,
net of variable compensation impacts, and gains (losses) on pension
plan settlements 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, research 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 30
creative and technology partner brands, we 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
2024 revenue of $3.2 billion. With approximately 11,300 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 22, 2024 |
|
November 24, 2023 |
|
November 22, 2024 |
|
November 24, 2023 |
|
Revenue |
|
$ |
794.9 |
|
|
$ |
777.9 |
|
|
$ |
2,378.0 |
|
|
$ |
2,384.4 |
|
| Cost of sales |
|
|
528.1 |
|
|
|
525.5 |
|
|
|
1,572.5 |
|
|
|
1,611.2 |
|
| Restructuring costs |
|
|
1.4 |
|
|
|
0.1 |
|
|
|
10.3 |
|
|
|
2.9 |
|
|
Gross profit |
|
|
265.4 |
|
|
|
252.3 |
|
|
|
795.2 |
|
|
|
770.3 |
|
| Operating expenses |
|
|
223.8 |
|
|
|
206.5 |
|
|
|
646.4 |
|
|
|
663.0 |
|
| Restructuring costs |
|
|
0.6 |
|
|
|
2.0 |
|
|
|
0.2 |
|
|
|
15.2 |
|
|
Operating income |
|
|
41.0 |
|
|
|
43.8 |
|
|
|
148.6 |
|
|
|
92.1 |
|
| Interest expense |
|
|
(6.3 |
) |
|
|
(6.4 |
) |
|
|
(18.9 |
) |
|
|
(19.6 |
) |
| Investment income |
|
|
4.0 |
|
|
|
2.3 |
|
|
|
9.3 |
|
|
|
3.6 |
|
| Other income (expense),
net |
|
|
(12.6 |
) |
|
|
0.9 |
|
|
|
(12.9 |
) |
|
|
4.4 |
|
|
Income before income tax expense |
|
|
26.1 |
|
|
|
40.6 |
|
|
|
126.1 |
|
|
|
80.5 |
|
| Income tax expense |
|
|
7.0 |
|
|
|
9.8 |
|
|
|
33.0 |
|
|
|
20.7 |
|
|
Net income |
|
$ |
19.1 |
|
|
$ |
30.8 |
|
|
$ |
93.1 |
|
|
$ |
59.8 |
|
| |
|
|
|
|
|
|
|
|
| Earnings per share: |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.16 |
|
|
$ |
0.26 |
|
|
$ |
0.79 |
|
|
$ |
0.50 |
|
|
Diluted |
|
$ |
0.16 |
|
|
$ |
0.26 |
|
|
$ |
0.78 |
|
|
$ |
0.50 |
|
| Weighted average shares
outstanding – basic |
|
|
117.8 |
|
|
|
118.9 |
|
|
|
118.1 |
|
|
|
118.5 |
|
| Weighted average shares
outstanding – diluted |
|
|
118.8 |
|
|
|
119.4 |
|
|
|
118.9 |
|
|
|
119.0 |
|
| |
|
|
|
|
|
|
|
|
| Dividends declared and paid
per common share |
|
$ |
0.100 |
|
|
$ |
0.100 |
|
|
$ |
0.300 |
|
|
$ |
0.300 |
|
|
STEELCASE INC. |
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
(in millions) |
| |
|
(Unaudited) |
|
|
| |
|
November 22, 2024 |
|
February 23, 2024 |
|
ASSETS |
| Current assets: |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
365.2 |
|
|
$ |
318.6 |
|
|
Short-term investments |
|
|
41.1 |
|
|
|
— |
|
|
Accounts receivable, net of allowance of $5.7 and $6.2 |
|
|
340.3 |
|
|
|
338.3 |
|
|
Inventories, net |
|
|
246.0 |
|
|
|
231.0 |
|
|
Prepaid expenses |
|
|
33.6 |
|
|
|
31.9 |
|
|
Other current assets |
|
|
38.9 |
|
|
|
39.6 |
|
| Total current assets |
|
|
1,065.1 |
|
|
|
959.4 |
|
| |
|
|
|
|
| Property, plant and equipment,
net of accumulated depreciation of $1,128.1 and $1,119.2 |
|
|
333.7 |
|
|
|
352.9 |
|
| Company-owned life insurance
("COLI") |
|
|
170.3 |
|
|
|
166.9 |
|
| Deferred income taxes |
|
|
120.7 |
|
|
|
115.8 |
|
| Goodwill |
|
|
273.8 |
|
|
|
274.8 |
|
| Other intangible assets, net
of accumulated amortization of $127.3 and $115.0 |
|
|
81.6 |
|
|
|
94.6 |
|
| Investments in unconsolidated
affiliates |
|
|
55.7 |
|
|
|
55.7 |
|
| Right-of-use operating lease
assets |
|
|
139.1 |
|
|
|
168.6 |
|
| Other assets |
|
|
81.1 |
|
|
|
48.0 |
|
| Total assets |
|
$ |
2,321.1 |
|
|
$ |
2,236.7 |
|
| |
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
| Current liabilities: |
|
|
|
|
|
Accounts payable |
|
$ |
249.3 |
|
|
$ |
211.3 |
|
|
Current operating lease obligations |
|
|
40.4 |
|
|
|
45.1 |
|
|
Employee compensation |
|
|
167.3 |
|
|
|
166.1 |
|
|
Employee benefit plan obligations |
|
|
41.8 |
|
|
|
39.9 |
|
|
Accrued promotions |
|
|
29.5 |
|
|
|
19.4 |
|
|
Customer deposits |
|
|
49.6 |
|
|
|
44.8 |
|
|
Other current liabilities |
|
|
99.7 |
|
|
|
80.5 |
|
| Total current liabilities |
|
|
677.6 |
|
|
|
607.1 |
|
| |
|
|
|
|
| Long-term liabilities: |
|
|
|
|
|
Long-term debt |
|
|
446.9 |
|
|
|
446.3 |
|
|
Employee benefit plan obligations |
|
|
102.9 |
|
|
|
104.5 |
|
|
Long-term operating lease obligations |
|
|
111.9 |
|
|
|
138.6 |
|
|
Other long-term liabilities |
|
|
49.2 |
|
|
|
53.1 |
|
| Total long-term
liabilities |
|
|
710.9 |
|
|
|
742.5 |
|
| Total liabilities |
|
|
1,388.5 |
|
|
|
1,349.6 |
|
| |
|
|
|
|
| Shareholders’ equity: |
|
|
|
|
|
Additional paid-in capital |
|
|
24.6 |
|
|
|
41.2 |
|
|
Accumulated other comprehensive income (loss) |
|
|
(62.1 |
) |
|
|
(66.9 |
) |
|
Retained earnings |
|
|
970.1 |
|
|
|
912.8 |
|
| Total shareholders’
equity |
|
|
932.6 |
|
|
|
887.1 |
|
| Total liabilities and
shareholders’ equity |
|
$ |
2,321.1 |
|
|
$ |
2,236.7 |
|
|
STEELCASE INC. |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) |
|
(in millions) |
| |
|
|
|
|
|
|
|
Nine Months Ended |
| |
|
November 22, 2024 |
|
November 24, 2023 |
| OPERATING
ACTIVITIES |
|
|
|
|
|
Net income |
|
$ |
93.1 |
|
|
$ |
59.8 |
|
| Adjustments to reconcile net
income to net cash provided by (used in) operating activities: |
|
|
|
|
|
Depreciation and amortization |
|
|
60.2 |
|
|
|
62.8 |
|
|
Share-based compensation |
|
|
19.7 |
|
|
|
22.1 |
|
|
Restructuring costs |
|
|
10.5 |
|
|
|
18.1 |
|
|
Gains on sales of fixed assets, net |
|
|
(41.5 |
) |
|
|
(10.5 |
) |
|
Change in fair value of contingent consideration |
|
|
— |
|
|
|
(9.5 |
) |
|
Other |
|
|
(0.5 |
) |
|
|
(1.9 |
) |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
Accounts receivable |
|
|
(4.7 |
) |
|
|
5.8 |
|
|
Inventories |
|
|
(15.8 |
) |
|
|
59.8 |
|
|
Cloud computing arrangements expenditures |
|
|
(32.9 |
) |
|
|
(1.1 |
) |
|
Other assets |
|
|
(0.5 |
) |
|
|
(3.2 |
) |
|
Accounts payable |
|
|
35.1 |
|
|
|
30.2 |
|
|
Employee compensation liabilities |
|
|
(6.8 |
) |
|
|
17.3 |
|
|
Accrued expenses and other liabilities |
|
|
32.0 |
|
|
|
1.6 |
|
| Net cash provided by operating
activities |
|
|
147.9 |
|
|
|
251.3 |
|
| |
|
|
|
|
| INVESTING
ACTIVITIES |
|
|
|
|
| Capital expenditures |
|
|
(35.6 |
) |
|
|
(37.4 |
) |
| Proceeds from disposal of
fixed assets |
|
|
44.4 |
|
|
|
28.2 |
|
| Purchases of short-term
investments |
|
|
(44.0 |
) |
|
|
— |
|
| Liquidations of short-term
investments |
|
|
3.3 |
|
|
|
— |
|
| Other |
|
|
3.9 |
|
|
|
4.0 |
|
| Net cash used in investing
activities |
|
|
(28.0 |
) |
|
|
(5.2 |
) |
| |
|
|
|
|
| FINANCING
ACTIVITIES |
|
|
|
|
| Dividends paid |
|
|
(35.8 |
) |
|
|
(35.7 |
) |
| Common stock repurchases |
|
|
(36.3 |
) |
|
|
(4.2 |
) |
| Borrowings on global committed
bank facility |
|
|
— |
|
|
|
69.0 |
|
| Repayments on global committed
bank facility |
|
|
— |
|
|
|
(69.0 |
) |
| Repayments on note
payable |
|
|
— |
|
|
|
(32.2 |
) |
| Other |
|
|
— |
|
|
|
(1.9 |
) |
| Net cash used in financing
activities |
|
|
(72.1 |
) |
|
|
(74.0 |
) |
| Effect of exchange rate
changes on cash and cash equivalents |
|
|
(1.3 |
) |
|
|
(0.2 |
) |
| Net increase in cash, cash
equivalents and restricted cash |
|
|
46.5 |
|
|
|
171.9 |
|
| Cash and cash equivalents and
restricted cash, beginning of period (1) |
|
|
325.9 |
|
|
|
97.2 |
|
| Cash and cash equivalents and
restricted cash, end of period (2) |
|
$ |
372.4 |
|
|
$ |
269.1 |
|
| |
| (1) These amounts
include restricted cash of $7.3 and $6.8 as of February 23,
2024 and February 24, 2023, respectively. |
| |
| (2) These amounts
include restricted cash of $7.2 and $7.1 as of November 22,
2024 and November 24, 2023, 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 ofOther assetson the Condensed
Consolidated Balance Sheets. |
|
CONTACT: |
Investor Contact: |
| |
Mike O'Meara |
| |
Investor Relations |
| |
ir@steelcase.com |
| |
|
| |
Media Contact: |
| |
Brodie Bertrand |
| |
Corporate Communications |
| |
communications@steelcase.com |
| |
|
| Source:
Steelcase |
| SC-ERR |
|
Steelcase (NYSE:SCS)
過去 株価チャート
から 11 2024 まで 12 2024
Steelcase (NYSE:SCS)
過去 株価チャート
から 12 2023 まで 12 2024
