In its Q1 2023 SEC report, Steelcase Inc (ticker: SCS) has shown promising financial results, with an increase in revenue and improvement in gross margin as well as the expansion of their international business. With a strong focus on innovation and the integration of acquired businesses, the company has been able to maintain its position as a leading provider of office furniture and workspace solutions.
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The quarterly period ended on May 26, 2023, and the key financial figures show an interesting growth pattern for the company.
The revenue has increased to $751.9 million, compared to $740.7 million during the same period in the previous year. This increase in revenue is a positive sign for the company’s overall financial health and indicates a strong demand for its products and services.
One notable improvement in the company’s financial performance is the increase in gross profit.
In the current quarter, the gross profit stands at $234.6 million, compared to $191.6 million in the same period in the previous year. This improvement in gross margin is a result of the company’s efficient cost management, as well as an increase in sales from its diversified product portfolio.
The operating income also shows a significant recovery, with a reported figure of $7.3 million in the current quarter compared to a loss of $12.6 million in the same period the previous year.
This improvement is attributed to lower restructuring costs and better management of operating expenses.
Steelcase Inc has also been actively expanding its international presence and diversifying its product portfolio.
The company’s international revenue segments include Europe, Middle East, Africa, and Asia-Pacific regions. In addition, the company has made strategic acquisitions and partnerships to augment its product offerings and cater to a broader market.
The company-owned life insurance (COLI) investments have also shown a steady growth, increasing from $157.3 million in the previous quarter to $159.7 million in Q1 2023.
These investments serve as a long-term financial planning tool for the company to offset future expenses and liabilities.
In terms of share performance, the earnings per share (EPS) stand at a modest $0.01, compared to a loss of $0.10 in the previous year’s quarter.
This improvement is a result of better financial performance across the board, with the company paying a dividend of $0.100 per common share in the current quarter, compared to $0.145 in the same period last year.
One significant area that the company needs to work on is its cash and cash equivalents.
The balance has fallen from $90.4 million in the previous quarter to $40.2 million in the current quarter. The decline in cash reserves may require the company to seek external financing or focus on improving its cash flow from operations.
In conclusion, Steelcase Inc has shown steady growth in Q1 2023, with improved gross margin and a diverse product portfolio.
The company’s commitment to innovation and strategic expansion in international markets has contributed to its financial success. While there may be challenges in maintaining cash reserves, the overall financial health of the company is promising and is expected to yield positive results for shareholders.
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 |
Note that we may hold securities mentioned in this article. All data is based on recent SEC filings. Even though we have implemented various manual and automatic fact-checking and data acquisition processes, some incorrect information may have slipped through (false positive). Let us know if you find any inconsistencies!