Steelcase(SCS) - 2024 Q4 - Annual Results

Revenue Performance - Fourth quarter revenue was $775.2 million, a 3$801.7 million in the prior year, with a 2% decline in the Americas and a 6% decline in International[2][14]. - For fiscal 2024, the company reported $3.2 billion in revenue, net income of$81.1 million, and adjusted earnings per share of $0.93, reflecting a 127$3,159.6 million[28]. - Revenue for the three months ended February 23, 2024, was $775.2 million, a decrease of 3.1$801.7 million for the same period in 2023[51]. - For 2025, projected revenue is expected to be between $3,215 million and$3,340 million, with an organic growth range of 1% to 5%[34]. Profitability Metrics - Net income for the fourth quarter increased to $21.3 million, or$0.18 per share, compared to $15.7 million, or$0.13 per share, in the prior year, representing a 38% increase in earnings per share[2][5]. - Adjusted earnings per share for the three months ended February 23, 2024, was $0.23, compared to$0.19 for the same period in 2023[29]. - Net income for the twelve months ended February 23, 2024, was $81.1 million, significantly higher than$35.3 million for the same period in 2023, representing a 129.0% increase[52]. - Basic earnings per share for the twelve months ended February 23, 2024, was $0.68, compared to$0.30 for the same period in 2023, reflecting a 126.7% increase[52]. - The company anticipates adjusted operating income for the twelve months ended February 28, 2025, to be between $150 million and$175 million[35]. Margins and Costs - Gross margin improved by 140 basis points in the fourth quarter, reaching 31.2%, and increased by 360 basis points for fiscal 2024 compared to the prior year[5][17]. - Adjusted EBITDA for the twelve months ended February 24, 2024, was $264.0 million, with an adjusted EBITDA margin of 8.4$31.3 million (5.4% margin) for the three months ended February 23, 2024, down from $41.9 million (7.0$4.4 million for the three months ended February 23, 2024, compared to $3.9 million in the same period of 2023[41]. Liquidity and Financial Position - Total liquidity at the end of the fourth quarter was$485.5 million, an increase of $60.9 million from the previous quarter, with total debt at$446.3 million[11][12]. - Total current assets increased to $959.4 million as of February 23, 2024, compared to$884.0 million as of February 24, 2023, marking an 8.5% increase[54]. - Cash and cash equivalents rose to $318.6 million as of February 23, 2024, compared to$90.4 million a year earlier, indicating a significant increase[54]. - Total liabilities decreased to $1,349.6 million as of February 23, 2024, down from$1,376.6 million as of February 24, 2023[55]. - Net cash provided by operating activities for the twelve months ended February 23, 2024, was $308.7 million, compared to$89.4 million for the same period in 2023[56]. Order Trends and Backlog - Orders grew 4% in the fourth quarter, driven by an 8% increase in the Americas, while International orders declined by 6%[3][5]. - The backlog of customer orders at the end of the fourth quarter was approximately $625 million, which is 8$715 million and $740 million, translating to a decline of 2$150 million to $175 million, and adjusted earnings per share of$0.85 to $1.00[19][20]. - Projected revenue for Q1 2025 is estimated to be between$715 million and $740 million, reflecting an organic decline of 3% to 0%[33].