FY2024 Fourth Quarter FY2023 Third Quarter An industry leader in a changing workplace Efforts to diversify revenue base Mid-term targets include $50M+ of cost reduction savings Mid-Term (3-4 years) Financial Targets Average annual organic revenue growth $3.7 $2.6 $2.8 $3.2 $3.2 $- $1 $2 $3 $4 $0 $100 $200 $300 $400 FY25 Target 5.0% FY24 7.2% 4.1% 1.3% Adjusted Operating Income ($ Millions) Revenue ($ Billions) 3.3% 6 – 7% FY20 FY21 FY22 FY23 Mid-Term Targets Adjusted Operating Income Revenue ~5% Free cash f ...

[Financial & Operational Highlights](index=1&type=section&id=Steelcase%20Reports%20Fourth%20Quarter%20and%20Fiscal%202024%20Results) Steelcase reported improved profitability in Q4 and full-year fiscal 2024, driven by gross margin expansion and strong order growth in the Americas, while strengthening its financial position [Q4 Fiscal 2024 Performance](index=1&type=section&id=Fourth%20quarter%20results) Q4 FY2024 saw a 3% revenue decline to $775.2 million, yet net income increased to $21.3 million, driven by a 140 basis point gross margin improvement and 8% order growth in the Americas Q4 FY2024 Key Financial Metrics | Metric | Q4 FY2024 | Q4 FY2023 | | :--- | :--- | :--- | | Revenue | $775.2M | $801.7M | | Net Income | $21.3M | $15.7M | | EPS (Diluted) | $0.18 | $0.13 | | Adjusted EPS | $0.23 | $0.19 | Q4 2024 Revenue and Order Growth vs. Q4 2023 | Region | Revenue Growth (Decline) | Organic Revenue Growth (Decline) | Order Growth (Decline) | | :--- | :--- | :--- | :--- | | Americas | (2%) | 0% | 8% | | International | (6%) | (6%) | (6%) | | **Steelcase Inc.** | **(3%)** | **(1%)** | **4%** | - The **8%** order growth in the Americas was primarily driven by large corporate customers investing in their workplaces[3](index=3&type=chunk)[4](index=4&type=chunk) - Gross margin improved by **140 basis points** to **31.2%** compared to the prior year, driven by higher pricing benefits and operational improvements[7](index=7&type=chunk) [Full-Year Fiscal 2024 Performance](index=2&type=section&id=Fiscal%202024%20Results) Full-year fiscal 2024 revenue was $3.2 billion (2% decline), but net income more than doubled to $81.1 million, driven by a 360 basis point gross margin expansion Fiscal 2024 vs. Fiscal 2023 Key Financials | Metric | Fiscal 2024 | Fiscal 2023 | | :--- | :--- | :--- | | Revenue | $3.2B | $3.2B | | Net Income | $81.1M | $35.3M | | EPS (Diluted) | $0.68 | $0.30 | | Adjusted EPS | $0.93 | $0.56 | - Net income **more than doubled**, and earnings per share increased by **127%** compared to fiscal 2023[4](index=4&type=chunk)[5](index=5&type=chunk) - Gross margin for the full year improved by **360 basis points**, reflecting efforts to recover from prior inflationary pressures[5](index=5&type=chunk)[17](index=17&type=chunk) - Adjusted operating income for FY2024 increased by **$50.0 million** to **$157.5 million**, driven by pricing benefits and operational improvements, which offset lower volume and higher operating expenses[16](index=16&type=chunk) [Financial Position and Shareholder Returns](index=2&type=section&id=Financial%20Position%20and%20Shareholder%20Returns) Steelcase significantly strengthened its fiscal 2024 financial position, increasing total liquidity by $238 million to $485.5 million, and declared a $0.10 per share quarterly dividend - Total liquidity, comprising cash and cash equivalents and COLI, increased by **$238 million** during fiscal 2024, reaching **$485.5 million** at year-end[5](index=5&type=chunk)[11](index=11&type=chunk)[12](index=12&type=chunk) - The company amended its credit agreement, extending the expiration to **2029** and increasing capacity from **$250 million** to **$300 million**[12](index=12&type=chunk) - A quarterly cash dividend of **$0.10 per share** was declared by the Board of Directors[12](index=12&type=chunk) [Business Segment Performance](index=4&type=section&id=Business%20Segment%20Results) The Americas segment showed strong order growth despite a slight revenue decline, while the International segment faced revenue declines but improved profitability, with organic revenue declining overall [Americas Segment](index=4&type=section&id=Americas) The Americas segment reported a 2% Q4 revenue decline to $581.6 million, but achieved strong 8% order growth, with full-year operating income surging to $143.8 million Americas Segment Financials (in millions) | Metric | Q4 FY2024 | Q4 FY2023 | FY2024 | FY2023 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $581.6 | $595.6 | $2,419.8 | $2,436.2 | | Operating Income | $26.8 | $33.2 | $143.8 | $77.4 | | Adjusted Operating Income | $31.3 | $41.9 | $159.6 | $114.8 | - Order growth in the Americas was **8%** in Q4, driven by large corporate customers[3](index=3&type=chunk) - The decrease in Q4 operating income was primarily due to the prior year including **$9.2 million** of gains on the sales of fixed assets[6](index=6&type=chunk) [International Segment](index=4&type=section&id=International) The International segment's Q4 revenue declined 6% to $193.6 million, with orders down 6%, yet Q4 adjusted operating income improved to a positive $3.1 million despite macroeconomic headwinds International Segment Financials (in millions) | Metric | Q4 FY2024 | Q4 FY2023 | FY2024 | FY2023 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $193.6 | $206.1 | $739.8 | $796.4 | | Operating Income (Loss) | $(1.1) | $(4.5) | $(26.0) | $(11.9) | | Adjusted Operating Income (Loss) | $3.1 | $(3.3) | $(2.1) | $(7.3) | - The International segment delivered improved profitability, with Q4 adjusted operating results increasing by more than **$6 million** versus the prior year despite lower revenue[7](index=7&type=chunk) - The Q4 order decline was driven by a **12%** drop in EMEA, which was partially offset by **24%** growth in Asia Pacific[3](index=3&type=chunk) [Organic Revenue Growth Analysis](index=4&type=section&id=QUARTER%20OVER%20QUARTER%20ORGANIC%20REVENUE%20GROWTH%20(DECLINE)%20BY%20SEGMENT) Consolidated organic revenue declined 1% in Q4 and 2% for FY2024, with Americas flat and International experiencing a 6% Q4 and 8% full-year organic decline Q4 2024 vs. Q4 2023 Organic Revenue Growth | Region | Organic Growth (Decline) % | | :--- | :--- | | Americas | 0% | | International | (6%) | | **Steelcase Inc.** | **(1%)** | FY2024 vs. FY2023 Organic Revenue Growth | Region | Organic Growth (Decline) % | | :--- | :--- | | Americas | 0% | | International | (8%) | | **Steelcase Inc.** | **(2%)** | [Fiscal 2025 Outlook](index=3&type=section&id=Outlook) Steelcase provides Q1 and full-year fiscal 2025 guidance, projecting organic revenue growth and improved profitability, supported by strategic investments [Q1 Fiscal 2025 Guidance](index=3&type=section&id=Q1%202025%20Outlook) Steelcase projects Q1 FY2025 revenue between $715 million and $740 million (0-3% organic decline), with diluted EPS of $0.05-$0.09, supported by 10% order growth early in the quarter Q1 Fiscal 2025 Guidance | Metric | Q1 FY2025 Projection | Q1 FY2024 Actual | | :--- | :--- | :--- | | Revenue | $715M - $740M | $751.9M | | Organic Revenue | (3%) - 0% decline | N/A | | EPS | $0.05 - $0.09 | $0.01 | | Adjusted EPS | $0.08 - $0.12 | $0.09 | - The company's backlog at the end of Q4 was **$625 million**, **8%** lower than the prior year; however, orders in the first three weeks of Q1 FY2025 grew **10%** YoY[18](index=18&type=chunk) [Full-Year Fiscal 2025 Targets](index=3&type=section&id=Full%20Year%202025%20Outlook) For full-year fiscal 2025, Steelcase targets 1% to 5% organic revenue growth, adjusted operating income of $150 million to $175 million, and adjusted EPS of $0.85 to $1.00 Full-Year Fiscal 2025 Targets | Metric | FY2025 Target | | :--- | :--- | | Organic Revenue Growth | 1% to 5% | | Adjusted Operating Income | $150M - $175M | | Adjusted EPS | $0.85 - $1.00 | - The company expects **mid-single digit** order growth in fiscal 2025[20](index=20&type=chunk) - Key financial assumptions for FY2025 include gross margin between **32.5%** and **33.5%** and an effective tax rate of **27%**[22](index=22&type=chunk) [Consolidated Financial Statements](index=10&type=section&id=STEELCASE%20INC.%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME%20(Unaudited)) The consolidated financial statements show improved profitability in FY2024, driven by higher gross profit and operating income, alongside a strengthened balance sheet with increased cash and positive operating cash flow [Condensed Consolidated Statements of Income](index=10&type=section&id=STEELCASE%20INC.%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME%20(Unaudited)) FY2024 revenue was $3.16 billion, with gross profit increasing to $1.01 billion (32.0% margin) and net income significantly rising to $81.1 million, or $0.68 per diluted share Fiscal Year Income Statement Highlights (in millions) | Account | FY 2024 | FY 2023 | | :--- | :--- | :--- | | Revenue | $3,159.6 | $3,232.6 | | Gross Profit | $1,012.4 | $919.4 | | Operating Income | $117.8 | $65.5 | | Net Income | $81.1 | $35.3 | | Diluted EPS | $0.68 | $0.30 | [Condensed Consolidated Balance Sheets](index=11&type=section&id=STEELCASE%20INC.%20CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of February 23, 2024, total assets were $2.24 billion, with cash and cash equivalents significantly increasing to $318.6 million and total shareholders' equity rising to $887.1 million Balance Sheet Highlights (in millions) | Account | Feb 23, 2024 | Feb 24, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $318.6 | $90.4 | | Total current assets | $959.4 | $884.0 | | Total assets | $2,236.7 | $2,202.8 | | Total current liabilities | $607.1 | $603.3 | | Total liabilities | $1,349.6 | $1,376.6 | | Total shareholders' equity | $887.1 | $826.2 | [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=STEELCASE%20INC.%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS%20(Unaudited)) Net cash from operating activities significantly improved to $308.7 million in FY2024, driven by higher net income and working capital changes, resulting in a $228.7 million net increase in cash Statement of Cash Flows Highlights (in millions) | Activity | FY 2024 | FY 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $308.7 | $89.4 | | Net cash provided by (used in) investing activities | $6.1 | $(134.8) | | Net cash used in financing activities | $(85.9) | $(62.9) | | Net increase (decrease) in cash | $228.7 | $(109.8) | [Non-GAAP Financial Measures](index=9&type=section&id=Non-GAAP%20Financial%20Measures) The company uses non-GAAP financial measures like Organic Revenue Growth, Adjusted Operating Income, Adjusted EPS, and Adjusted EBITDA to provide a clearer view of core performance by excluding specific non-recurring or non-operational items [Definition of Non-GAAP Measures](index=9&type=section&id=Definition%20of%20Non-GAAP%20Measures) The company uses non-GAAP measures like Organic Revenue Growth, Adjusted Operating Income, Adjusted EPS, and Adjusted EBITDA to provide a consistent performance comparison by excluding specific non-operational items - Organic Revenue Growth is used to provide a more consistent comparison of revenue by excluding the impact of acquisitions, divestitures, and foreign currency translation effects[44](index=44&type=chunk) - Adjusted Operating Income and Adjusted EPS exclude amortization of purchased intangible assets and restructuring costs to better reflect core operating performance[45](index=45&type=chunk) - Adjusted EBITDA is defined as EBITDA further adjusted to exclude share-based compensation and restructuring costs, providing a view of operating profitability used by management, lenders, and rating agencies[48](index=48&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________________________ (Address of principal executive offices) (Zip Code) (616) 247-2710 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 24, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Nu ...

Financial Data and Key Metrics Changes - The company reported third quarter revenue of $778 million, slightly below expectations due to order fulfillment issues in the Americas [22] - Adjusted earnings per share included benefits from a decrease in acquisition earn-out liability and gains from asset sales, contributing approximately $0.10 per share [21] - Gross margin improved by 360 basis points year-over-year, driven by higher pricing benefits and lower operating expenses [8][23] Business Line Data and Key Metrics Changes - The Americas segment showed strong profitability improvement, with orders growing 16% year-over-year, primarily driven by large corporate customers [12][27] - The International segment reported over $9 million in adjusted operating income, a significant turnaround from a nearly $15 million adjusted operating loss in the first half of the year [10] - Orders in the International segment grew 10% year-over-year, with over 40% growth in the Asia Pacific region [11][27] Market Data and Key Metrics Changes - Overall orders grew 15% year-over-year, with a sequential increase of 1% compared to the second quarter [11][27] - In the Americas, order growth was led by large corporate customers, while International orders were bolstered by strong performance in Asia Pacific, particularly in India and Southeast Asia [12][27] - EMEA orders grew modestly, with notable growth in France and Iberia, offset by declines in other markets like the UK [27] Company Strategy and Development Direction - The company is focused on leading workplace transformation and diversifying its customer base while improving profitability [17][30] - Recent product launches emphasize innovation and sustainability, aligning with customer demands for environmentally friendly solutions [15][16] - The company is actively pursuing bolt-on acquisitions to accelerate growth initiatives, although no suitable opportunities have been identified yet [42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about increasing investment levels as companies settle into a stronger in-office presence [17] - The company anticipates revenue growth to lag behind order growth in fiscal 2025 due to a lower beginning backlog compared to the prior year [30] - Management highlighted the importance of creating engaging office environments to encourage employee presence and productivity [56][75] Other Important Information - Total liquidity strengthened by $110 million during the quarter, with cash generated from operations amounting to $120 million [25][26] - The company expects fourth quarter revenue to range between $765 million and $790 million, approximately flat on an organic basis compared to the prior year [28] Q&A Session Summary Question: Can you help with the backlog math and why next year revenue might trail orders? - Management indicated that a decline in backlog compared to last year will impact revenue growth rates, as a portion of the backlog decline will affect revenue [37] Question: What is driving order strength among large customers? - Management noted that order strength is broad-based across various verticals, with no significant weakness observed in expected areas [41] Question: Can you clarify on the delivery issues that impacted the quarter? - Management confirmed that delivery times have improved year-over-year, although they remained flat compared to the previous quarter [69] Question: How much of the growth is driven by large corporate customers? - Management expects continued momentum from large corporate customers, correlating with a stronger return to the office [70] Question: What are the catalysts for growth in the office furnishings industry? - Management believes that beyond the return to office, there are broader macro-level trends, such as near-shoring and AI growth, that will provide opportunities for the business [75]

4 Sense of belonging 5 Feel shared purpose 6 Connect with leaders 7 Socialize Source: Steelcase Global Research, Late 2022 Our Brand Promise We help people do their best work by creating places that work better. Steelcase serves leading organizations with 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, as well as our online Steelcase store and other retail partners. ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________________________ FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended August 25, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-13873 ________________________________________________________ ...

Steelcase Inc. (NYSE:SCS) Q2 2024 Earnings Conference Call September 20, 2023 8:30 AM ET Company Participants Mike O'Meara - IR Sara Armbruster - President and CEO Dave Sylvester - SVP and CFO Conference Call Participants Greg Burns - Sidoti Reuben Garner - Benchmark Budd Bugatch - Water Tower Research Steven Ramsey - Thompson Research Group Budd Bugatch - Water Tower Research Operator Good morning. My name is Rob, and I will be your conference operator today. At this time, I would like to welcome everyone ...

PART I Financial Information [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) Unaudited Q1 FY2024 financials show a return to profitability with $1.5 million net income and positive operating cash flow [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 FY2024 revenue increased 1.5% to $751.9 million, with gross profit up 22.4%, leading to $1.5 million net income Q1 FY2024 vs Q1 FY2023 Statement of Operations (in millions, except per share data) | Metric | Q1 2024 (ended May 26, 2023) | Q1 2023 (ended May 27, 2022) | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $751.9 | $740.7 | +1.5% | | **Gross Profit** | $234.6 | $191.6 | +22.4% | | **Operating Income (Loss)** | $7.3 | $(12.6) | Improved by $19.9M | | **Net Income (Loss)** | $1.5 | $(11.4) | Improved by $12.9M | | **Diluted EPS** | $0.01 | $(0.10) | Improved by $0.11 | | **Dividends per Share** | $0.100 | $0.145 | -31.0% | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $2,125.5 million, while liabilities also fell, resulting in a slight increase in shareholders' equity Balance Sheet Comparison (in millions) | Account | May 26, 2023 | February 24, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $40.2 | $90.4 | | Total current assets | $815.9 | $884.0 | | **Total assets** | **$2,125.5** | **$2,202.8** | | Total current liabilities | $533.6 | $603.3 | | **Total liabilities** | **$1,296.4** | **$1,376.6** | | **Total shareholders' equity** | **$829.1** | **$826.2** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow turned positive to $11.3 million, with a net cash decrease of $50.6 million for the quarter Cash Flow Summary (in millions) | Activity | Three Months Ended May 26, 2023 | Three Months Ended May 27, 2022 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $11.3 | $(55.1) | | Net cash used in investing activities | $(11.2) | $(7.3) | | Net cash used in financing activities | $(50.3) | $(20.7) | | **Net decrease in cash** | **$(50.6)** | **$(84.4)** | - The significant use of cash in financing activities was primarily due to a **$32.2 million repayment** on a note payable and **$12.1 million** in dividend payments[23](index=23&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail segment realignment, Q1 2024 restructuring costs of $8.1 million, and HALCON acquisition accounting completion - In Q1 2024, the company realigned its reportable segments into Americas and International (aggregating EMEA and Asia Pacific), with all prior period data reclassified for this change[76](index=76&type=chunk)[78](index=78&type=chunk)[81](index=81&type=chunk) - New restructuring actions were announced in Q1 2024 due to declining order volume and inflation, involving workforce reductions across regions, resulting in **$8.1 million** of restructuring costs during the quarter[85](index=85&type=chunk)[86](index=86&type=chunk) - The purchase accounting for the HALCON acquisition, which occurred in Q2 2023, was completed, adding **$51.8 million** in identifiable intangible assets and **$36.6 million** in goodwill to the Americas segment[72](index=72&type=chunk)[73](index=73&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q1 2024 profitability to pricing actions, with revenue up 2% and gross margin improving 530 bps - Q1 2024 revenue benefited from pricing actions, but volume declines substantially offset these benefits, particularly in the International segment, with orders declining **7% year-over-year** but growing **21% sequentially** from Q4 2023[93](index=93&type=chunk) - The company reported a significant improvement in profitability, with operating income of **$7.3 million** compared to a loss of **$12.6 million** in the prior year, driven by higher pricing benefits[94](index=94&type=chunk) Non-GAAP Financial Measure Reconciliation | Measure | Q1 2024 (ended May 26, 2023) | Q1 2023 (ended May 27, 2022) | | :--- | :--- | :--- | | **Adjusted Operating Income (Loss)** | $19.7M | $(4.6)M | | **Adjusted EPS** | $0.09 | $(0.05) | | **Organic Revenue Growth** | 0% | N/A | [Business Segment Review](index=23&type=section&id=Business%20Segment%20Review) Americas segment drove profitability with 5% revenue growth, while International segment's operating loss widened Segment Performance (in millions) | Segment | Revenue (Q1'24) | Revenue Change (YoY) | Operating Income (Loss) (Q1'24) | Operating Income (Loss) (Q1'23) | | :--- | :--- | :--- | :--- | :--- | | **Americas** | $572.8 | +5% | $19.8 | $(10.7) | | **International** | $179.1 | -9% | $(12.5) | $(1.9) | - Americas' operating income improvement was driven by higher pricing benefits of approximately **$65 million** and operational efficiencies, partially offset by lower volume and higher variable compensation[102](index=102&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk) - International's increased operating loss was driven by lower volume (approx **$30 million** impact), higher operating expenses, and **$6.8 million** in restructuring costs, which more than offset pricing benefits[108](index=108&type=chunk)[109](index=109&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) Total liquidity was $470.3 million, with operating cash flow improving to $11.3 million, sufficient for future needs Liquidity Sources (in millions) | Source | May 26, 2023 | February 24, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $40.2 | $90.4 | | Company-owned life insurance | $159.7 | $157.3 | | Availability under credit facilities | $270.4 | $269.7 | | **Total liquidity sources available** | **$470.3** | **$517.4** | - In Q1 2024, the company borrowed and repaid **$67.2 million** under its global facility to fund operations and a **$31.8 million** balloon payment for a matured note[125](index=125&type=chunk) - Planned capital expenditures for fiscal 2024 are expected to be approximately **$70 to $80 million**, an increase from **$59.1 million** in 2023[134](index=134&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes occurred in market risk exposures, including foreign currency, interest rate, and commodity price risks - The nature of market risks, including foreign exchange, interest rate, commodity price, and fixed income/equity price risks, has not materially changed during Q1 2024[139](index=139&type=chunk)[140](index=140&type=chunk)[141](index=141&type=chunk) [Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that as of May 26, 2023, the company's disclosure controls and procedures were effective[144](index=144&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the first fiscal quarter[145](index=145&type=chunk) PART II Other Information [Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) No material changes to previously disclosed risk factors were reported in the current period - There have not been any material changes to the risk factors set forth in the company's most recent Annual Report on Form 10-K[148](index=148&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=30&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 429,624 shares for $3.3 million to cover tax obligations, with $6.4 million remaining Q1 2024 Share Repurchase Activity | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | 02/25/2023 - 03/31/2023 | 429,624 | $7.71 | | **Total** | **429,624** | **$7.71** | - All shares were repurchased to satisfy participants' tax withholding obligations upon the issuance of shares under equity awards[151](index=151&type=chunk) - As of May 26, 2023, **$6.4 million** remained available for repurchase under the Board-approved program from January 2016[150](index=150&type=chunk) [Exhibits](index=31&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including the Credit Agreement and required certifications - Exhibits filed include the Third Amended and Restated Credit Agreement, Sarbanes-Oxley Section 302 and 906 certifications, and various Inline XBRL data files[153](index=153&type=chunk) Signatures The report was signed on June 23, 2023, by Nicole C. McGrath, VP, Corporate Controller & Chief Accounting Officer - The Form 10-Q report was signed and authorized by Nicole C. McGrath, Vice President, Corporate Controller & Chief Accounting Officer, on June 23, 2023[156](index=156&type=chunk)[158](index=158&type=chunk)

Financial Data and Key Metrics Changes - The company reported consolidated revenue of $752 million, which was flat on an organic basis compared to the prior year, with a 2% growth in the Americas offset by a 7% decline in International [15][21] - Adjusted earnings per share for Q1 exceeded expectations, benefiting from operational efficiencies and pricing actions taken in response to inflation [13][16] - The company expects Q2 revenue to be in the range of $815 million to $840 million, reflecting a 3% to 6% decline year-over-year, with adjusted earnings per share projected between $0.19 and $0.23 [20][21] Business Line Data and Key Metrics Changes - Revenue from the Americas was driven by faster order fulfillment and higher-than-expected incoming orders, while the consumer retail segment experienced a shortfall [14] - Orders in the first quarter declined by 7% year-over-year, with a 6% decline in the Americas and an 11% decline in International [17] - The company noted a year-over-year growth in EMEA new project opportunity creation of 10%, despite a decline in overall orders [19] Market Data and Key Metrics Changes - The International revenue decline was attributed to a lower beginning backlog and macroeconomic concerns, leading to restructuring actions in EMEA and Asia Pacific [15] - In Asia Pacific, there was double-digit growth across all other markets, indicating some regional resilience [19] - The company observed that many larger customers regretted putting projects on hold during the last 18 months, indicating a potential shift in investment activity [4] Company Strategy and Development Direction - The company aims to lead workplace transformation and diversify its customer and market segments while improving profitability [9][30] - New product innovations showcased at the NeoCon trade show included solutions for mobile workers and enhanced seating offerings, emphasizing sustainability [32][33] - The company is focused on reducing costs and optimizing its distribution system, including the closure of a regional distribution center [6][21] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the second half of the year, despite navigating an uncertain environment [9][30] - The company is seeing positive signs in customer conversations, with a focus on returning to the office and evolving workplace needs [51][78] - Management acknowledged challenges in international markets but noted improvements in operational agility and supply chain reliability [12][19] Other Important Information - The company generated $11 million in cash from operating activities in Q1, with a reduction in working capital contributing to this positive cash flow [37] - Liquidity at the end of the quarter totaled $200 million, with total debt at $447 million, reflecting a decrease due to the payoff of a maturing aircraft loan [38] - The company is committed to achieving its fiscal 2024 targets while navigating the current economic landscape [21] Q&A Session Summary Question: Can you provide more color on the activity with large corporate customers? - Management noted that many customers are now engaging with real projects and plans to evolve their office spaces, indicating a shift from hypothetical discussions to actionable plans [58] Question: How is the company addressing the sales cycle length? - Management observed that there is a trend of customers having clearer plans and timelines, suggesting a reduction in the length of the sales cycle [93] Question: What are the expectations for project activity moving forward? - Management believes project activity will improve, although significant year-over-year growth remains uncertain [84] Question: How is the company managing its operational efficiencies? - Management highlighted improvements in logistics and operational efficiencies, contributing to better gross margins despite ongoing inflation [95]

We believe the office will continue to be very relevant for innovation, culture and collaboration Efforts to diversify the customers and markets we serve brings additional growth potential Recent price-cost tailwinds expected to continue $3.2B $210M 1.1x 770 12,000 innovative design, sustainability Named a 2022 Most Responsible Company by Newsweek Eight-time perfect score recipient of the Human Rights Campaign's Best Places to Work for LGBTQ Equality Investor Presentation FY2024 First Quarter FY2023 Third Q ...