Steelcase(US:SCS)2025-06-25 20:06Revenue and Income - Steelcase reported first quarter revenue of $779.0 million, a 7% increase from $727.3 million in the prior year, with organic revenue growth of 7%[2][18] - Net income for the first quarter was $13.6 million, or $0.11 per share, compared to $10.9 million, or $0.09 per share, in the prior year[2][19] - Revenue for the three months ended May 30, 2025, was $779.0 million, a 7.1% increase from $727.3 million for the same period in 2024[24] - Net income for the three months ended May 30, 2025, was $13.6 million, compared to $10.9 million in the same period last year, reflecting a net income margin increase from 1.5% to 1.7%[24] Segment Performance - The Americas segment achieved 9% organic revenue growth, while the International segment experienced a 1% organic decline[2][18] - Operating income for the Americas segment was $28.0 million, a significant increase from $18.5 million in the prior year, with an operating margin of 4.6%[25] - International segment reported a revenue of $175.4 million, with an operating loss of $2.5 million, compared to an operating loss of $0.9 million in the previous year[26] Operating Performance - Operating income increased by 45% to $25.5 million, with adjusted operating income rising to $39.0 million, an increase of $10.8 million compared to the prior year[6][19] - Adjusted operating income for Q1 2025 was $39.0 million, representing 5.0% of revenue, up from $28.2 million or 3.9% of revenue in Q1 2024[24] - Gross margin improved by 170 basis points to 33.9%, driven by higher volume and cost reduction initiatives[7][8] - Gross profit margin improved to 33.9% in Q1 2025 from 32.2% in Q1 2024, with gross profit of $263.8 million compared to $234.4 million[24] Future Outlook - The company expects second quarter fiscal 2026 revenue to be between $860 million and $890 million, translating to flat to 4% growth compared to the prior year[12][22] - Projected adjusted earnings per share for the three months ending August 29, 2025, is estimated to be between $0.36 and $0.40, compared to $0.39 in the same period last year[23] Financial Position - Total liquidity at the end of the first quarter was $391.5 million, an increase of $13.7 million from the prior year, while total debt stood at $447.3 million[10] - Total current assets decreased from $1,029.0 million to $938.7 million, a decline of approximately 8.8%[42] - Cash and cash equivalents decreased from $346.3 million to $183.9 million, a reduction of 47.0%[42] - Total liabilities decreased from $1,378.7 million to $1,272.7 million, a decrease of approximately 7.7%[43] - Total shareholders' equity increased from $951.7 million to $982.7 million, an increase of 3.2%[43] Cash Flow and Expenditures - Net cash used in operating activities was $(141.1) million, compared to $(59.1) million in the prior year, indicating a significant increase in cash outflow[46] - Capital expenditures for the period were $14.0 million, compared to $12.1 million in the previous year, reflecting a 15.7% increase[46] - Dividends paid were $12.2 million, slightly down from $12.3 million year-over-year[46] - The company reported a net decrease in cash and cash equivalents of $163.3 million for the period[46] Restructuring and Efficiency - The company initiated restructuring actions in the Americas targeting approximately $20 million of annualized spending to prioritize investments in strategic initiatives[7] - Restructuring costs decreased to $1.0 million in Q1 2025 from $7.0 million in Q1 2024, indicating improved operational efficiency[24] Conference Call and Financial Measures - The company plans to discuss first quarter results and business outlook in a conference call scheduled for 8:30 a.m. Eastern time[27] - Steelcase utilizes non-GAAP financial measures such as adjusted operating income and organic revenue growth to provide a clearer picture of financial performance[28]