MillerKnoll(MLKN) - 2025 Q2 - Quarterly Report

Financial Performance - Net earnings for the six months ended November 30, 2024, were $34.7 million, a decrease of 31.4% compared to $50.5 million for the same period in the previous year[9]. - For the six months ended December 2, 2023, total net sales were $1,831.9 million, a decrease of 1.9% compared to $1,867.2 million for the same period last year[27]. - Total revenue for the three months ended November 30, 2024, was $970.4 million, a 2.0% increase from $949.5 million for the same period in 2023[31]. - Operating earnings for the total reportable segments increased to $80.0 million for the three months ended November 30, 2024, from $73.6 million in the prior year[81]. - The company reported net earnings attributable to MillerKnoll, Inc. of $34.1 million for the three months ended November 30, 2024[45]. Cash Flow and Liquidity - Cash flows from operating activities decreased to $76.4 million for the six months ended November 30, 2024, down from $213.4 million in the prior year, representing a decline of approximately 64.2%[9]. - The total cash and cash equivalents at the end of the period were $221.1 million, down from $225.8 million, a decrease of 2.1%[9]. - The company experienced a net decrease in cash and cash equivalents of $9.3 million, contrasting with an increase of $2.3 million in the prior year[9]. - The net cash position as of November 30, 2024, was $0.8 million, a decrease from $3.6 million as of June 1, 2024[21]. Assets and Liabilities - Total current assets as of November 30, 2024, increased to $1,125.8 million from $1,069.6 million as of June 1, 2024, reflecting a growth of approximately 5.2%[8]. - Total liabilities increased to $2,652.0 million as of November 30, 2024, compared to $2,584.6 million as of June 1, 2024, indicating a rise of about 2.6%[8]. - The company reported a total stockholders' equity of $1,310.8 million as of November 30, 2024, down from $1,385.1 million as of June 1, 2024, reflecting a decrease of approximately 5.4%[8]. - The carrying value of the company's long-term debt as of November 30, 2024, was $1,402.8 million, with a fair value of $1,484.4 million[51]. Inventory and Sales - Inventories, net, remained relatively stable at $430.6 million as of November 30, 2024, compared to $428.6 million as of June 1, 2024[8]. - Product revenue from single performance obligations was $1,693.3 million, down from $1,716.8 million, reflecting a decline of 1.8%[27]. - The Americas Contract segment reported total revenue of $504.2 million for the three months ended November 30, 2024, up from $476.1 million in the same period last year[31]. - The Global Retail segment's total revenue decreased to $219.9 million for the three months ended November 30, 2024, from $232.2 million in the same period in 2023[31]. Dividends and Shareholder Returns - The company paid dividends of $26.2 million during the six months ended November 30, 2024, compared to $28.1 million in the same period last year, a decrease of approximately 6.8%[9]. - The company declared dividends of $0.1875 per share, totaling $13.7 million for the period[27]. Restructuring and Integration Costs - The company incurred restructuring expenses of $7.0 million in the previous year, which were not reported in the current period[9]. - The Company incurred $28.3 million in costs related to the Knoll Integration for the six months ended November 30, 2024, primarily for exit and disposal costs[87]. - The total restructuring charges related to the 2024 restructuring plan amounted to $30.8 million for the year ended June 1, 2024, with no future costs expected[92]. Tax and Compliance - The effective tax rate for the three months ended November 30, 2024, was 21.8%, slightly higher than the previous year's rate of 21.4% due to a mix of earnings in higher tax jurisdictions[47]. - The company recorded a liability for interest and penalties related to uncertain tax benefits of $0.9 million as of November 30, 2024[49]. Other Comprehensive Income - Other comprehensive loss for the six months ended November 30, 2024, was $5.8 million, compared to a loss of $29.8 million in the previous period, indicating an improvement[10]. - The Company recognized a gain of $3.6 million in other comprehensive loss for the three months ended November 30, 2024, compared to a loss of $7.9 million in the same period of 2023[63].