Steelcase Inc. (ticker: SCS), a leading provider of furniture and architectural products, has reported growth in its revenue from the Americas segment, accounting for 76.2% of consolidated revenue for the first quarter of 2024. According to the company’s most recent SEC report, the Americas revenue increased by $29 million or 5% compared to the prior year, bringing the total to $572.8 million.
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Revenue Growth Factors
The report attributes the increase in revenue to approximately $65 million in higher pricing benefits, which were partially offset by roughly $35 million related to lower volume and about $2 million in unfavorable currency translation effects. Organic revenue growth in Q1 2024 was $13.5 million or 2% compared to the previous year.
Operating Expense Increase
Despite the rise in revenue, the company has also seen a significant jump in operating expenses. In Q1 2024, operating expenses in the Americas increased by $16.6 million, amounting to a 150-basis-points increase as a percentage of revenue compared to the previous year. This spike in operating expenses includes $8.5 million in higher variable compensation expense and $6.2 million from an acquisition.
International Segment Performance
In contrast, Q1 2024 saw a decrease in revenue for the International segment, primarily serving customers in EMEA and Asia Pacific. The segment’s revenue decreased by $17.8 million or 9% compared to the prior year, resulting in a total of $179.1 million. The operating loss for this segment increased by $10.6 million, with a higher adjusted operating loss of $4.5 million in Q1 2024 compared to $0.7 million last year.
Effective Tax Rate
The company’s effective tax rate for Q1 2024 was approximately 48%, which included $0.6 million in discrete tax expense. This figure is higher than the Q1 2023 effective tax rate of 27.8%.
Cash and Cash Equivalents
As of May 26, 2023, Steelcase Inc. held a total of $40.2 million in cash and cash equivalents, with 10% of it located in the U.S. and 90% situated outside the U.S., primarily in China, Mexico, the United Kingdom, India, and Malaysia.
Outlook and Capital Resources
The report also states that the outlook for the company’s liquidity and capital resources remains positive, with available liquidity from credit facilities expected to finance known or foreseeable liquidity needs. The company’s material cash requirements include plans for approximately $70 to $80 million in capital expenditures for 2024.
Overall, Steelcase Inc. has experienced growth in its Americas revenue for the first quarter of 2024 despite an increase in operating expenses. The International segment, however, has faced a decline in revenue and a higher operating loss. As the company continues to adapt and invest in strategic initiatives, it remains well-positioned to meet its material cash requirements in the coming quarters.
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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