Steelcase Inc. (ticker: SCS), a global leader in office furniture and design solutions, recently released its Q1 2024 financial report which shows a turnaround in net income compared to the same period last year. The company’s net income increased from a loss of $11.4 million in Q1 2023 to a gain of $1.5 million in Q1 2024, demonstrating resilience in the face of ongoing challenges.
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Increasing Revenues and Slight Growth
During the quarter ending May 26, 2023, SCS reported total revenues of $751.9 million, a slight increase from $740.7 million in the same period last year. Despite facing challenges such as supply chain disruptions, the increased revenues indicate that the company is slowly regaining momentum.
Cost Management and Operational Streamlining
A significant contributor to the improvement in net income can be attributed to Steelcase’s focus on cost management and streamlining its operations. For instance, in Q1 2024, SCS recorded a reduction of $8.1 million in its restructuring costs, which is significantly lower than the $17.2 million spent in Q1 2023 for employee benefit obligations.
Improvement in Earnings per Share
The company’s earnings per share also reflected this turnaround, with Q1 2024 reporting earnings of $0.01 per share, compared with a loss of $0.10 per share in Q1 2023. This indicates that the company is gradually rebounding and making progress towards sustainable growth.
Strong Balance Sheet
Steelcase’s cash and cash equivalents, as well as restricted cash, decreased from $97.2 million at the beginning of the period to $46.6 million by the end of Q1 2024 due to various operational and financing expenditures. Despite the decrease, the company maintains a strong balance sheet, demonstrating its ability to navigate economic challenges.
Inventory Management Challenges
On the other hand, one area where Steelcase still faces challenges is in the management of its inventories. The Q1 2024 report shows an increase of $12.1 million in inventories, a figure that is relatively high compared to a decrease of $50.6 million in Q1 2023. This suggests that the company is still working on optimizing its inventory management to avoid potential issues in the supply chain and production process.
Innovation and Adaptation
As the office furniture industry continues to evolve, Steelcase has focused on incorporating new technologies and designs to meet the demands of an ever-changing workplace landscape. In light of the ongoing COVID-19 pandemic, the company has been working on developing solutions that cater to the needs of remote work, flexible office spaces, and collaborative environments. This is evident in their various product offerings, ranging from seating and desking solutions to innovative workplace tools and accessories.
Conclusion
In conclusion, Steelcase has demonstrated a noteworthy recovery in its Q1 2024 financial report compared to the same period last year. This improvement is visible in the company’s overall net income and earnings per share, showcasing the resilience and potential for growth amidst challenging circumstances. As Steelcase continues to adapt to changing market conditions and evolving workplace needs, it positions itself as a global leader in office furniture and workspace design.
Income Statement
Financials in millions USD. Fiscal year is March – February. source
| Year | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 – 1994 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 0 | Revenue | 3232.6 | 2772.7 | 2596.2 | 3723.7 | 3443.2 | 3055.5 | 3032.4 | 3060 | 3059.7 | 2988.9 | Upgrade |
| 1 | Revenue Growth (YoY) | 16.59% | 6.80% | -30.28% | 8.15% | 12.69% | 0.76% | -0.90% | 0.01% | 2.37% | 4.19% | Upgrade |
| 2 | Cost of Revenue | 2313.2 | 2011.2 | 1833.4 | 2508.5 | 2355.3 | 2050.3 | 2024.8 | 2088.8 | 2143.7 | 2043.7 | Upgrade |
| 3 | Gross Profit | 919.4 | 761.5 | 762.8 | 1215.2 | 1087.9 | 1005.2 | 1007.6 | 971.2 | 916 | 945.2 | Upgrade |
| 4 | Selling, General & Admin | 837.2 | 741.4 | 684.2 | 958.2 | 904.3 | 850 | 810.5 | 790 | 768 | 757 | Upgrade |
| 5 | Other Operating Expenses | 16.7 | 0 | 35.6 | 0 | 0 | 0 | 0.9 | 6.6 | 3.1 | 22.3 | Upgrade |
| 6 | Operating Expenses | 853.9 | 741.4 | 719.8 | 958.2 | 904.3 | 850 | 811.4 | 796.6 | 771.1 | 779.3 | Upgrade |
| 7 | Operating Income | 65.5 | 20.1 | 43 | 257 | 183.6 | 155.2 | 196.2 | 174.6 | 144.9 | 165.9 | Upgrade |
| 8 | Interest Expense / Income | 28.4 | 25.7 | 27.1 | 27.3 | 37.5 | 17.5 | 17.2 | 17.6 | 17.7 | 17.8 | Upgrade |
| 9 | Other Expense / Income | -14.5 | -7.2 | -10 | -15.5 | -17.8 | -23.8 | -17.3 | -17.8 | -9.8 | 0.9 | Upgrade |
| 10 | Pretax Income | 51.6 | 1.6 | 25.9 | 245.2 | 163.9 | 161.5 | 196.3 | 174.8 | 137 | 147.2 | Upgrade |
| 11 | Income Tax | 16.3 | -2.4 | -0.2 | 45.5 | 37.9 | 80.8 | 71.7 | 4.5 | 50.9 | 59.5 | Upgrade |
| 12 | Net Income | 35.3 | 4 | 26.1 | 199.7 | 126 | 80.7 | 124.6 | 170.3 | 86.1 | 87.7 | Upgrade |
| 13 | Net Income Growth | 782.50% | -84.67% | -86.93% | 58.49% | 56.13% | -35.23% | -26.83% | 97.79% | -1.82% | 126.03% | Upgrade |
| 14 | Shares Outstanding (Basic) | 113 | 112 | 115 | 117 | 117 | 116 | 117 | 122 | 121 | 124 | Upgrade |
| 15 | Shares Change | 0.79% | -2.45% | -1.96% | 0.36% | 0.55% | -1.01% | -4.12% | 0.74% | -2.07% | -0.90% | Upgrade |
| 16 | EPS (Basic) | 0.30 | 0.03 | 0.22 | 1.67 | 1.06 | 0.68 | 1.03 | 1.37 | 0.69 | 0.70 | Upgrade |
| 17 | EPS (Diluted) | 0.30 | 0.03 | 0.22 | 1.66 | 1.05 | 0.68 | 1.03 | 1.36 | 0.68 | 0.69 | Upgrade |
| 18 | EPS Growth | 900.00% | -86.36% | -86.75% | 58.10% | 54.41% | -33.98% | -24.26% | 100.00% | -1.45% | 130.00% | Upgrade |
| 19 | Free Cash Flow Per Share | 0.36 | -1.30 | 0.27 | 2.47 | 0.60 | 1.27 | 0.95 | 0.76 | 0.05 | 0.82 | Upgrade |
| 20 | Dividend Per Share | 0.490 | 0.535 | 0.370 | 0.580 | 0.540 | 0.508 | 0.480 | 0.449 | 0.430 | 0.400 | Upgrade |
| 21 | Dividend Growth | -8.41% | 44.59% | -36.21% | 7.41% | 6.30% | 5.83% | 6.90% | 4.42% | 7.50% | 11.11% | Upgrade |
| 22 | Gross Margin | 28.44% | 27.46% | 29.38% | 32.63% | 31.60% | 32.90% | 33.23% | 31.74% | 29.94% | 31.62% | Upgrade |
| 23 | Operating Margin | 2.03% | 0.72% | 1.66% | 6.90% | 5.33% | 5.08% | 6.47% | 5.71% | 4.74% | 5.55% | Upgrade |
| 24 | Profit Margin | 1.09% | 0.14% | 1.01% | 5.36% | 3.66% | 2.64% | 4.11% | 5.57% | 2.81% | 2.93% | Upgrade |
| 25 | Free Cash Flow Margin | 1.24% | -5.25% | 1.19% | 7.77% | 2.04% | 4.81% | 3.68% | 3.04% | 0.21% | 3.40% | Upgrade |
| 26 | Effective Tax Rate | 31.59% | -150.00% | -0.77% | 18.56% | 23.12% | 50.03% | 36.53% | 2.57% | 37.15% | 40.42% | Upgrade |
| 27 | EBITDA | 170 | 110.5 | 138.2 | 358.1 | 283 | 244.9 | 273.8 | 258.1 | 214.6 | 225 | Upgrade |
| 28 | EBITDA Margin | 5.26% | 3.99% | 5.32% | 9.62% | 8.22% | 8.02% | 9.03% | 8.43% | 7.01% | 7.53% | Upgrade |
| 29 | Depreciation & Amortization | 90 | 83.2 | 85.2 | 85.6 | 81.6 | 65.9 | 60.3 | 65.7 | 59.9 | 60 | Upgrade |
| 30 | EBIT | 80 | 27.3 | 53 | 272.5 | 201.4 | 179 | 213.5 | 192.4 | 154.7 | 165 | Upgrade |
| 31 | EBIT Margin | 2.47% | 0.98% | 2.04% | 7.32% | 5.85% | 5.86% | 7.04% | 6.29% | 5.06% | 5.52% | Upgrade |
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