Steelcase(US:SCS)2024-06-20 10:30Revenue Performance - Steelcase reported first quarter revenue of $727.3 million, a 3% decline compared to $751.9 million in the prior year[2]. - Revenue for the three months ended May 26, 2023, was $751.9 million, down from $801.7 million in the same period of 2022, reflecting a decrease of 6.5%[23]. - Revenue for the three months ended May 24, 2024, was $727.3 million, a decrease of 3.1% compared to $751.9 million for the same period in 2023[41]. - Revenue from the Americas for the three months ended May 24, 2024, was $554.4 million, a decrease from $572.8 million in the same period of 2023[29]. - International revenue for the three months ended May 24, 2024, was $172.9 million, down from $179.1 million in the same period of 2023[30]. - Steelcase's fiscal year 2024 revenue is projected to be approximately $3.2 billion[40]. Profitability - Net income for the first quarter was $10.9 million, or $0.09 per share, compared to $1.5 million, or $0.01 per share, in the prior year[2]. - Net income for the three months ended May 26, 2023, was $15.7 million, compared to $11.4 million for the same period in 2022, representing a 37.7% increase[23]. - Net income increased significantly to $10.9 million, compared to $1.5 million in the same quarter last year, representing a growth of 626.7%[41]. - Basic and diluted earnings per share both improved to $0.09, up from $0.01 in the previous year[41]. - Adjusted earnings per share for the three months ended August 25, 2023, was $0.31, with a projected range of $0.36 to $0.40 for the same period in 2024[25]. Operating Performance - Operating income improved by $10 million year-over-year, reaching $17.6 million, while adjusted operating income increased by $8.5 million to $28.2 million[6][5]. - Operating income for the three months ended May 24, 2024, was $17.6 million, compared to $7.3 million for the same period in 2023, indicating a significant improvement[28]. - Operating income improved to $17.6 million, compared to $7.3 million in the same quarter last year, an increase of 141.1%[41]. - Steelcase recorded $6.3 million in restructuring costs during the first quarter, impacting operating results[7]. Orders and Backlog - Orders grew 8% year-over-year, with a 10% increase in the Americas and a 2% increase internationally[3]. - The backlog at the end of the first quarter was approximately $764 million, a 1% increase from the prior year[13]. Liquidity and Cash Flow - Total liquidity at the end of the first quarter was $377.8 million, an increase of $177.9 million compared to the prior year[11]. - Cash and cash equivalents at the end of the period were $180.3 million, down from $46.6 million a year ago, reflecting a decrease of 286.4%[50]. - The company reported a net cash used in operating activities of $59.1 million, compared to a net cash provided of $11.3 million in the prior year[49]. Future Projections - The company expects second quarter revenue to be between $850 million and $875 million, reflecting a potential decline of 1% to growth of 2% compared to the prior year[13]. - Projected earnings per share for the second quarter are between $0.33 to $0.37, with adjusted earnings per share between $0.36 to $0.40[14]. - Projected organic revenue growth for Q2 2025 is estimated to be between $10 million and $35 million, translating to a growth rate of 1% to 4% compared to Q2 2024[24]. Margins - Gross margin for the first quarter was 32.2%, with a 180 basis point improvement excluding restructuring costs[8]. - Gross profit margin for the three months ended May 24, 2024, was 32.2%, slightly up from 31.2% in the same period of 2023[28]. - Gross profit remained relatively stable at $234.4 million, compared to $234.6 million in the prior year, indicating a slight decrease of 0.1%[41]. Assets and Liabilities - Total current assets decreased to $862.2 million from $959.4 million, a decline of 10.1%[44]. - Total liabilities decreased to $1,254.3 million from $1,349.6 million, a reduction of 7.1%[47]. - The company declared and paid dividends of $0.100 per common share, consistent with the previous year[42].