MillerKnoll, Inc. Reports Third Quarter Fiscal 2024 Results
Business Highlights
- Consolidated Gross margin improved 450 basis points over the prior year, with expansion reported in all three segments.
- Continued actions focused on streamlining and reducing the operating cost structure and enhancing operating efficiencies while driving long-term top line growth and margin improvement.
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$153 million of run-rate cost synergies related to the Knoll integration captured to date.
Third Quarter Fiscal 2024 Financial Results
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(Unaudited) |
(Unaudited) |
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Three Months Ended |
Nine Months Ended |
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(Dollars in millions, except per share data) |
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% Chg. |
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% Chg. |
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(13 weeks) |
(13 weeks) |
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(39 weeks) |
(40 weeks) |
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Net sales |
$ 872.3 |
$ 984.7 |
(11.4) % |
$ 2,739.5 |
$ 3,130.4 |
(12.5) % |
Gross margin % |
38.6 % |
34.1 % |
N/A |
39.0 % |
34.4 % |
N/A |
Operating expenses |
$ 294.2 |
$ 314.4 |
(6.4) % |
$ 923.6 |
$ 964.6 |
(4.3) % |
Adjusted operating expenses* |
$ 278.9 |
$ 277.6 |
0.5 % |
$ 878.5 |
$ 891.2 |
(1.4) % |
Effective tax rate |
16.0 % |
31.2 % |
N/A |
20.5 % |
19.5 % |
N/A |
Adjusted effective tax rate* |
20.3 % |
22.5 % |
N/A |
22.7 % |
22.5 % |
N/A |
Earnings per share - diluted |
$ 0.30 |
$ 0.01 |
N/A |
$ 0.97 |
$ 0.56 |
73.2 % |
Adjusted earnings per share - diluted* |
$ 0.45 |
$ 0.54 |
(16.7) % |
$ 1.41 |
$ 1.44 |
(2.1) % |
*Items indicated represent Non-GAAP measurements; see the reconciliations of Non-GAAP financial measures and related explanations below. |
To our shareholders:
Our teams continue to make great progress towards improving our profitability metrics with this quarter's Gross margins surpassing last year's levels across the three business segments despite volume declines. While the latter is driven by the current macro environment, we are building a fundamentally stronger company, protecting our profitability and enhancing our operational efficiency.
Overall demand patterns across much of our business have continued to be sluggish, driven by elevated interest rates in major markets around the world, ongoing geopolitical concerns, and a lagging housing market in the
Third Quarter Fiscal 2024 Consolidated Results
Consolidated net sales for the third quarter were
Gross margin in the quarter was 38.6%, which is 450 basis points higher than the same period last year. The main drivers of the year-over-year increase in Gross margin were the realization of price optimization strategies; improved freight, distribution and inventory management; an impairment charge recorded in the prior year; and benefits from our ongoing synergy efforts. This is the fifth consecutive quarter of consolidated year-over-year adjusted Gross margin expansion.
Consolidated operating expenses for the quarter were
Operating margin for the quarter was 4.9% compared to 2.2% in the same quarter last year. On an adjusted basis, consolidated operating margin for the quarter was 6.7%. In the third quarter of last year, adjusted operating margin totaled 7.5%.
Reported diluted earnings per share were
As of
As of the end of the third quarter, we have achieved
Third Quarter Fiscal 2024 Results by Segment
Americas Contract
For the third quarter, the Americas Contract segment posted net sales totaling
Adjusted operating margin for the Americas Contract segment was 8.1%, 70 basis points lower year-over-year. The main driver of this variance was lower year-over-year sales, which were partially offset by Gross margin expansion resulting from favorable price/cost dynamics, moderating input costs and the realization of synergy benefits.
International Contract and Specialty
The International Contract and Specialty segment delivered net sales in the third quarter of
Adjusted operating margin for this segment was 10.4%, 110 basis points lower year-over-year driven by lower sales. In spite of this, we continue to expand Gross margins due to favorable regional and product mix, improved freight and distribution management and proactive restructuring initiatives taken earlier in the year that have enhanced year-over-year manufacturing efficiency.
Global Retail
Net sales in the third quarter for our Global Retail segment totaled
Adjusted operating margin for this segment was 5.6%, 10 basis points higher year-over-year, despite the decrease in net sales. The main drivers of the margin expansion were improved operational and delivery efficiencies, and favorable product mix.
Fourth Quarter and Fiscal 2024 Outlook
Given the demand patterns we experienced in the third quarter and what remains a generally tepid near-term macro-economic backdrop, we expect net sales in the fourth quarter of fiscal 2024 to range between
Andi Owen |
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President and Chief Executive Officer |
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Chief Financial Officer |
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Webcast and Conference Call Information
The Company will host a conference call and webcast to discuss the results of the third quarter of fiscal 2024 on
Financial highlights for the three and nine months ended
Condensed Consolidated Statements of Operations
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(Unaudited) (Dollars in millions, except per share and common share data) |
Three Months Ended |
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Nine Months Ended |
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Net sales |
$ 872.3 |
100.0 % |
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$ 984.7 |
100.0 % |
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$ 2,739.5 |
100.0 % |
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$ 3,130.4 |
100.0 % |
Cost of sales |
535.3 |
61.4 % |
|
649.1 |
65.9 % |
|
1,672.4 |
61.0 % |
|
2,055.1 |
65.6 % |
Gross margin |
337.0 |
38.6 % |
|
335.6 |
34.1 % |
|
1,067.1 |
39.0 % |
|
1,075.3 |
34.4 % |
Operating expenses |
294.2 |
33.7 % |
|
314.4 |
31.9 % |
|
923.6 |
33.7 % |
|
964.6 |
30.8 % |
Operating earnings |
42.8 |
4.9 % |
|
21.2 |
2.2 % |
|
143.5 |
5.2 % |
|
110.7 |
3.5 % |
Other expenses, net |
15.3 |
1.8 % |
|
19.6 |
2.0 % |
|
50.6 |
1.8 % |
|
53.8 |
1.7 % |
Earnings before income taxes and equity income |
27.5 |
3.2 % |
|
1.6 |
0.2 % |
|
92.9 |
3.4 % |
|
56.9 |
1.8 % |
Income tax expense |
4.4 |
0.5 % |
|
0.5 |
0.1 % |
|
19.0 |
0.7 % |
|
11.1 |
0.4 % |
Equity (loss) income, net of tax |
— |
— % |
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— |
— % |
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(0.3) |
— % |
|
0.2 |
— % |
Net earnings |
23.1 |
2.6 % |
|
1.1 |
0.1 % |
|
73.6 |
2.7 % |
|
46.0 |
1.5 % |
Net earnings attributable to redeemable noncontrolling interests |
0.9 |
0.1 % |
|
0.7 |
0.1 % |
|
1.2 |
— % |
|
3.8 |
0.1 % |
Net earnings attributable to |
$ 22.2 |
2.5 % |
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$ 0.4 |
— % |
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$ 72.4 |
2.6 % |
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$ 42.2 |
1.3 % |
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Amounts per common share attributable to |
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Earnings per share - basic |
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Weighted average basic common shares |
72,720,734 |
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75,463,071 |
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73,952,015 |
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75,442,780 |
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Earnings per share - diluted |
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Weighted average diluted common shares |
74,146,826 |
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76,066,215 |
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74,616,391 |
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76,036,144 |
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Condensed Consolidated Statements of Cash Flows |
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Nine Months Ended |
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(Unaudited) (Dollars in millions) |
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Cash provided by (used in): |
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Operating activities |
$ 273.9 |
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$ 70.4 |
Investing activities |
(61.0) |
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(53.2) |
Financing activities |
(213.1) |
|
(22.1) |
Effect of exchange rate changes |
0.3 |
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(8.3) |
Net change in cash and cash equivalents |
0.1 |
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(13.2) |
Cash and cash equivalents, beginning of period |
223.5 |
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230.3 |
Cash and cash equivalents, end of period |
$ 223.6 |
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$ 217.1 |
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Condensed Consolidated Balance Sheets
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(Unaudited) (Dollars in millions) |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
$ 223.6 |
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$ 223.5 |
Accounts receivable, net |
291.1 |
|
334.1 |
Unbilled accounts receivable |
27.6 |
|
29.4 |
Inventories, net |
437.4 |
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487.4 |
Prepaid expenses and other |
103.7 |
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101.8 |
Total current assets |
1,083.4 |
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1,176.2 |
Net property and equipment |
506.2 |
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536.3 |
Right of use assets |
376.8 |
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415.9 |
Other assets |
2,128.7 |
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2,146.4 |
Total Assets |
$ 4,095.1 |
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$ 4,274.8 |
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LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS & STOCKHOLDERS' EQUITY |
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Current Liabilities: |
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Accounts payable |
$ 242.0 |
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$ 269.5 |
Short-term borrowings and current portion of long-term debt |
40.9 |
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33.4 |
Short-term lease liability |
71.1 |
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77.1 |
Accrued liabilities |
326.5 |
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322.8 |
Total current liabilities |
680.5 |
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702.8 |
Long-term debt |
1,290.4 |
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1,365.1 |
Lease liabilities |
355.2 |
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393.7 |
Other liabilities |
270.9 |
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273.0 |
Total Liabilities |
2,597.0 |
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2,734.6 |
Redeemable Noncontrolling Interests |
107.2 |
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107.6 |
Stockholders' Equity |
1,390.9 |
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1,432.6 |
Total Liabilities, Redeemable Noncontrolling Interests and Stockholders' Equity |
$ 4,095.1 |
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$ 4,274.8 |
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Non-GAAP Financial Measures and Other Supplemental Data
This presentation contains non-GAAP financial measures that are not in accordance with, nor an alternative to, generally accepted accounting principles (GAAP) and may be different from non-GAAP measures presented by other companies. These non-GAAP financial measures are not measurements of our financial performance under GAAP and should not be considered an alternative to the related GAAP measurement. These non-GAAP measures have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Our presentation of non-GAAP measures should not be construed as an indication that our future results will be unaffected by unusual or infrequent items. We compensate for these limitations by providing equal prominence of our GAAP results. Reconciliations of these non-GAAP measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are provided in the financial tables included within this presentation. The Company believes these non-GAAP measures are useful for investors as they provide financial information on a more comparative basis for the periods presented.
The non-GAAP financial measures referenced within this presentation include: Adjusted Effective Tax Rate, Adjusted Operating Earnings (Loss), Adjusted Operating Margin, Adjusted Earnings per Share, Adjusted Gross Margin, Adjusted Operating Expenses, Adjusted EBITDA, Adjusted Bank Covenant EBITDA, and Organic Growth (Decline).
Adjusted Effective Tax Rate refers to the projected full-year GAAP tax rate, adjusted to exclude certain unusual or infrequent events that are expected to significantly impact that rate as well as impacts related to enactments of comprehensive tax law changes.
Adjusted Operating Earnings (Loss) represents reported operating earnings plus integration charges, amortization of Knoll purchased intangibles, and restructuring expenses. These adjustments are described further below.
Adjusted Operating Margin is calculated as adjusted operating earnings (loss) divided by net sales.
Adjusted Earnings per Share represents reported diluted earnings per share excluding the impact from amortization of Knoll purchased intangibles, integration charges, restructuring expenses, impairment charges, and the related tax effect of these adjustments. These adjustments are described further below.
Adjusted Gross Margin represents gross margin plus impairment charges. These adjustments are described further below.
Adjusted Operating Expenses represents reported operating expenses excluding restructuring charges, integration charges, amortization of Knoll purchased intangibles, and impairment charges. These adjustments are described further below.
Adjusted EBITDA is calculated by excluding income tax expense, interest income and expense, depreciation and amortization expense, restructuring and integration charges from net income.
Adjusted Bank Covenant EBITDA is calculated by excluding depreciation, amortization, interest expense, taxes from net income, and certain other adjustments. Other adjustments include, as applicable in the period, charges associated with business restructuring actions, integration charges, impairment expenses, non-cash stock-based compensation, future synergies, and other items as described in our lending agreements.
Organic Growth (Decline) represents the change in sales and orders, excluding currency translation effects, the impact of the additional week in fiscal 2023, and the impact of the closure of the Fully business.
The adjustments to arrive at these non-GAAP financial measures are as follows:
Amortization of Knoll purchased intangibles: Includes expenses associated with the amortization of acquisition related intangibles acquired as part of the Knoll acquisition. The revenue generated by the associated intangible assets has not been excluded from the related non-GAAP financial measure. We exclude the impact of the amortization of Knoll purchased intangibles as such non-cash amounts were significantly impacted by the size of the Knoll acquisition. Furthermore, we believe that this adjustment enables better comparison of our results as Amortization of Knoll Purchased Intangibles will not recur in future periods once such intangible assets have been fully amortized. Any future acquisitions may result in the amortization of additional intangible assets. Although we exclude the Amortization of Knoll Purchased Intangibles in these non-GAAP measures, we believe that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation.
Integration charges: Knoll integration-related costs include severance, accelerated stock-based compensation expenses, asset impairment charges, and expenses related to synergy realization efforts and reorganization initiatives.
Restructuring charges: Includes costs associated with actions involving targeted workforce reductions.
Impairment charges: Includes non-cash, pre-tax charges for the impairment of assets associated with the decision to cease operating Fully as a stand-alone brand.
Tax related items: We excluded the income tax benefit/provision effect of the tax related items from our non-GAAP measures because they are not associated with the tax expense on our ongoing operating results.
Certain tables below summarize select financial information, for the periods indicated, related to each of the Company's reportable segments. The Americas Contract ("
A. Reconciliation of Operating Earnings (Loss) to Adjusted Operating Earnings (Loss) by Segment |
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Three Months Ended |
Nine Months Ended |
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Americas Contract |
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Net sales |
$ 441.1 |
100.0 % |
$ 484.6 |
100.0 % |
$ 1,407.6 |
100.0 % |
$ 1,551.7 |
100.0 % |
Gross margin |
145.9 |
33.1 % |
149.6 |
30.9 % |
481.7 |
34.2 % |
452.5 |
29.2 % |
Total operating expenses |
120.6 |
27.3 % |
117.1 |
24.2 % |
379.9 |
27.0 % |
374.3 |
24.1 % |
Operating earnings |
$ 25.3 |
5.7 % |
$ 32.5 |
6.7 % |
$ 101.8 |
7.2 % |
$ 78.2 |
5.0 % |
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Adjustments |
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Restructuring |
1.5 |
0.3 % |
4.4 |
0.9 % |
5.8 |
0.4 % |
17.5 |
1.1 % |
Integration charges |
5.8 |
1.3 % |
2.2 |
0.5 % |
15.3 |
1.1 % |
6.2 |
0.4 % |
Amortization of Knoll purchased intangibles |
3.3 |
0.7 % |
3.3 |
0.7 % |
9.7 |
0.7 % |
9.7 |
0.6 % |
Adjusted operating earnings |
$ 35.9 |
8.1 % |
$ 42.4 |
8.8 % |
$ 132.6 |
9.4 % |
$ 111.6 |
7.2 % |
International Contract & Specialty |
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Net sales |
$ 217.3 |
100.0 % |
$ 242.5 |
100.0 % |
$ 686.8 |
100.0 % |
$ 779.9 |
100.0 % |
Gross margin |
96.8 |
44.5 % |
100.6 |
41.5 % |
299.7 |
43.6 % |
323.0 |
41.4 % |
Total operating expenses |
78.3 |
36.0 % |
75.3 |
31.1 % |
246.0 |
35.8 % |
241.5 |
31.0 % |
Operating earnings |
$ 18.5 |
8.5 % |
$ 25.3 |
10.4 % |
$ 53.7 |
7.8 % |
$ 81.5 |
10.5 % |
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Adjustments |
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Restructuring |
0.1 |
— % |
— |
— % |
1.6 |
0.2 % |
0.7 |
0.1 % |
Integration charges |
1.8 |
0.8 % |
0.5 |
0.2 % |
3.0 |
0.4 % |
2.0 |
0.3 % |
Amortization of Knoll purchased intangibles |
2.1 |
1.0 % |
2.2 |
0.9 % |
6.3 |
0.9 % |
6.2 |
0.8 % |
Adjusted operating earnings |
$ 22.5 |
10.4 % |
$ 28.0 |
11.5 % |
$ 64.6 |
9.4 % |
$ 90.4 |
11.6 % |
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Global Retail |
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Net sales |
$ 213.9 |
100.0 % |
$ 257.6 |
100.0 % |
$ 645.1 |
100.0 % |
$ 798.8 |
100.0 % |
Gross margin |
94.3 |
44.1 % |
85.4 |
33.2 % |
285.7 |
44.3 % |
299.8 |
37.5 % |
Total operating expenses |
83.0 |
38.8 % |
109.9 |
42.7 % |
257.5 |
39.9 % |
304.5 |
38.1 % |
Operating earnings (loss) |
$ 11.3 |
5.3 % |
$ (24.5) |
(9.5) % |
$ 28.2 |
4.4 % |
$ (4.7) |
(0.6) % |
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Adjustments |
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Restructuring |
0.1 |
— % |
0.2 |
0.1 % |
1.3 |
0.2 % |
1.6 |
0.2 % |
Integration charges |
— |
— % |
— |
— % |
— |
— % |
0.2 |
— % |
Impairment charges |
— |
— % |
37.2 |
14.4 % |
— |
— % |
37.2 |
4.7 % |
Amortization of Knoll purchased intangibles |
0.6 |
0.3 % |
1.2 |
0.5 % |
2.0 |
0.3 % |
3.5 |
0.4 % |
Adjusted operating earnings |
$ 12.0 |
5.6 % |
$ 14.1 |
5.5 % |
$ 31.5 |
4.9 % |
$ 37.8 |
4.7 % |
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Corporate |
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Operating expenses |
$ 12.3 |
— % |
$ 12.1 |
— % |
$ 40.2 |
— % |
$ 44.3 |
— % |
Operating (loss) |
$ (12.3) |
— % |
$ (12.1) |
— % |
$ (40.2) |
— % |
$ (44.3) |
— % |
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Adjustments |
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Integration charges |
— |
— % |
1.3 |
— % |
0.1 |
— % |
4.3 |
— % |
Adjusted operating (loss) |
$ (12.3) |
— % |
$ (10.8) |
— % |
$ (40.1) |
— % |
$ (40.0) |
— % |
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Net sales |
$ 872.3 |
100.0 % |
$ 984.7 |
100.0 % |
$ 2,739.5 |
100.0 % |
$ 3,130.4 |
100.0 % |
Gross margin |
337.0 |
38.6 % |
335.6 |
34.1 % |
1,067.1 |
39.0 % |
1,075.3 |
34.4 % |
Total operating expenses |
294.2 |
33.7 % |
314.4 |
31.9 % |
923.6 |
33.7 % |
964.6 |
30.8 % |
Operating earnings |
$ 42.8 |
4.9 % |
$ 21.2 |
2.2 % |
$ 143.5 |
5.2 % |
$ 110.7 |
3.5 % |
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Adjustments |
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Restructuring |
1.7 |
0.2 % |
4.6 |
0.5 % |
8.7 |
0.3 % |
19.8 |
0.6 % |
Integration charges |
7.6 |
0.9 % |
4.0 |
0.4 % |
18.4 |
0.7 % |
12.7 |
0.4 % |
Impairment charges |
— |
— % |
37.2 |
3.8 % |
— |
— % |
37.2 |
1.2 % |
Amortization of Knoll purchased intangibles |
6.0 |
0.7 % |
6.7 |
0.7 % |
18.0 |
0.7 % |
19.4 |
0.6 % |
Adjusted operating earnings |
$ 58.1 |
6.7 % |
$ 73.7 |
7.5 % |
$ 188.6 |
6.9 % |
$ 199.8 |
6.4 % |
B. Reconciliation of Earnings per Share to Adjusted Earnings per Share |
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Three Months Ended |
Nine Months Ended |
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Earnings per share - diluted |
$ 0.30 |
$ 0.01 |
$ 0.97 |
$ 0.56 |
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Add: Amortization of Knoll purchased intangibles |
0.08 |
0.09 |
0.24 |
0.26 |
Add: Integration charges |
0.10 |
0.05 |
0.26 |
0.14 |
Add: Restructuring charges |
0.02 |
0.06 |
0.10 |
0.29 |
Add: Impairment charges |
— |
0.48 |
— |
0.48 |
Tax impact on adjustments |
(0.05) |
(0.15) |
(0.16) |
(0.29) |
Adjusted earnings per share - diluted |
$ 0.45 |
$ 0.54 |
$ 1.41 |
$ 1.44 |
Weighted average shares outstanding (used for calculating adjusted earnings per share) – diluted |
74,146,826 |
76,066,215 |
74,616,391 |
76,036,144 |
C. Reconciliation of Gross Margin to Adjusted Gross Margin |
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Three Months Ended |
Nine Months Ended |
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Gross margin |
$ 337.0 |
38.6 % |
$ 335.6 |
34.1 % |
$ 1,067.1 |
39.0 % |
$ 1,075.3 |
34.4 % |
Impairment charges |
— |
— % |
15.7 |
1.6 % |
— |
— % |
15.7 |
0.5 % |
Adjusted gross margin |
$ 337.0 |
38.6 % |
$ 351.3 |
35.7 % |
$ 1,067.1 |
39.0 % |
$ 1,091.0 |
34.9 % |
D. Reconciliation of Operating Expenses to Adjusted Operating Expenses |
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|
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|
Three Months Ended |
Nine Months Ended |
||||||
|
|
|
|
|
||||
Operating expenses |
$ 294.2 |
33.7 % |
$ 314.4 |
31.9 % |
$ 923.6 |
33.7 % |
$ 964.6 |
30.8 % |
Restructuring charges |
1.7 |
0.2 % |
4.6 |
0.5 % |
8.7 |
0.3 % |
19.8 |
0.6 % |
Integration charges |
7.6 |
0.9 % |
4.0 |
0.4 % |
18.4 |
0.7 % |
12.7 |
0.4 % |
Amortization of Knoll purchased intangibles |
6.0 |
0.7 % |
6.7 |
0.7 % |
18.0 |
0.6 % |
19.4 |
0.6 % |
Impairment charges |
— |
— % |
21.5 |
2.2 % |
— |
— % |
21.5 |
0.7 % |
Adjusted operating expenses |
$ 278.9 |
32.0 % |
$ 277.6 |
28.2 % |
$ 878.5 |
32.1 % |
$ 891.2 |
28.5 % |
E. Reconciliation of Net Earnings to Adjusted EBITDA |
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|
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|
Three Months Ended |
Nine Months Ended |
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|
|
|
|
|
||||
Net income |
$ 22.2 |
2.5 % |
$ 0.4 |
— % |
$ 72.4 |
2.6 % |
$ 42.2 |
1.3 % |
Income tax expense |
4.4 |
0.5 % |
0.5 |
0.1 % |
19.0 |
0.7 % |
11.1 |
0.4 % |
Interest income and expense |
17.0 |
1.9 % |
18.2 |
1.8 % |
52.5 |
1.9 % |
52.1 |
1.7 % |
Depreciation and amortization expense |
37.0 |
4.2 % |
38.3 |
3.9 % |
111.6 |
4.1 % |
115.9 |
3.7 % |
Restructuring and integration charges |
8.0 |
0.9 % |
30.0 |
3.0 % |
23.2 |
0.8 % |
53.9 |
1.7 % |
Adjusted EBITDA |
$ 88.6 |
10.2 % |
$ 87.4 |
8.9 % |
$ 278.7 |
10.2 % |
$ 275.2 |
8.8 % |
F. Reconciliation of Net Earnings to |
|
|
|
|
|
Net earnings |
$ 72.3 |
Income tax expense |
12.4 |
Depreciation expense |
112.7 |
Amortization expense |
58.8 |
Interest expense |
77.3 |
Other adjustments(*) |
88.3 |
Adjusted bank covenant EBITDA |
$ 421.8 |
Total debt, less cash, end of trailing period (includes outstanding LC's) |
$ 1,119.6 |
Net debt to adjusted bank covenant EBITDA ratio |
2.65 |
*Items indicated represent Non-GAAP measurements; see the reconciliations of Non-GAAP financial measures and related explanations above. |
G. Organic Sales Growth by Segment |
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|
||||
|
Three Months Ended |
|||
|
|
|||
|
Americas Contract |
International |
Global Retail |
Total |
Net sales, as reported |
$ 441.1 |
$ 217.3 |
$ 213.9 |
$ 872.3 |
% change from PY |
(9.0) % |
(10.4) % |
(17.0) % |
(11.4) % |
|
|
|
|
|
Adjustments |
|
|
|
|
Currency translation effects (1) |
(1.0) |
(0.5) |
(0.3) |
(1.8) |
Net sales, organic |
$ 440.1 |
$ 216.8 |
$ 213.6 |
$ 870.5 |
% change from PY |
(9.2) % |
(10.6) % |
(11.3) % |
(10.1) % |
|
Three Months Ended |
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|
|
|||
|
Americas Contract |
International |
Global Retail |
Total |
Net sales, as reported |
$ 484.6 |
$ 242.5 |
$ 257.6 |
$ 984.7 |
|
|
|
|
|
Adjustments |
|
|
|
|
Fully closure |
— |
— |
(16.9) |
(16.9) |
Net sales, organic |
$ 484.6 |
$ 242.5 |
$ 240.7 |
$ 967.8 |
(1) Currency translation effects represent the estimated net impact of translating current period sales and orders using the average exchange rates applicable to the comparable prior year period. |
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|
|
|
|
|
|
Nine Months Ended |
|||
|
|
|||
|
Americas Contract |
International |
Global Retail |
Total |
|
$ 1,407.6 |
$ 686.8 |
$ 645.1 |
$ 2,739.5 |
% change from PY |
(9.3) % |
(11.9) % |
(19.2) % |
(12.5) % |
Adjustments |
|
|
|
|
Currency Translation Effects (1) |
(2.2) |
(7.8) |
(5.5) |
(15.5) |
|
$ 1,405.4 |
$ 679.0 |
$ 639.6 |
$ 2,724.0 |
% change from PY |
(7.1) % |
(10.7) % |
(11.3) % |
(9.0) % |
|
|
|
|
|
|
Nine Months Ended |
|||
|
|
|||
|
Americas Contract |
International |
Global Retail |
Total |
|
$ 1,551.7 |
$ 779.9 |
$ 798.8 |
$ 3,130.4 |
% change from PY |
|
|
|
|
Adjustments |
|
|
|
|
Fully closure |
— |
— |
(59.3) |
(59.3) |
Impact of extra week in FY23 |
(38.7) |
(19.6) |
(18.2) |
(76.5) |
|
$ 1,513.0 |
$ 760.3 |
$ 721.3 |
$ 2,994.6 |
(1) Currency translation effects represent the estimated net impact of translating current period sales and orders using the average exchange rates applicable to the comparable prior year period. |
H. Organic Order Growth by Segment |
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|
||||
|
Three Months Ended |
|||
|
|
|||
|
Americas Contract |
International |
Global Retail |
Total |
Orders, as reported |
$ 420.1 |
$ 227.6 |
$ 182.6 |
$ 830.3 |
% change from PY |
(9.0) % |
8.3 % |
(14.6) % |
(6.2) % |
|
|
|
|
|
Adjustments |
|
|
|
|
Currency translation effects (1) |
(1.8) |
(0.9) |
(0.7) |
(3.4) |
Orders, organic |
$ 418.3 |
$ 226.7 |
$ 181.9 |
$ 826.9 |
% change from PY |
(9.4) % |
7.9 % |
(7.1) % |
(4.7) % |
|
||||
|
|
|
|
|
|
Three Months Ended |
|||
|
|
|||
|
Americas Contract |
International |
Global Retail |
Total |
Orders, as reported |
$ 461.6 |
$ 210.1 |
$ 213.7 |
$ 885.4 |
|
|
|
|
|
Adjustments |
|
|
|
|
Fully closure |
— |
— |
(17.8) |
(17.8) |
Orders, organic |
$ 461.6 |
$ 210.1 |
$ 195.9 |
$ 867.6 |
(1) Currency translation effects represent the estimated net impact of translating current period sales and orders using the average exchange rates applicable to the comparable prior year period. |
|
|
|
|
|
|
Nine Months Ended |
|||
|
|
|||
|
Americas Contract |
International |
Global Retail |
Total |
Orders, as reported |
$ 1,344.8 |
$ 689.4 |
$ 653.8 |
$ 2,688.0 |
% change from PY |
(7.1) % |
(2.1) % |
(14.1) % |
(7.7) % |
|
|
|
|
|
Adjustments |
|
|
|
|
Currency translation effects (1) |
(6.0) |
(8.4) |
(6.3) |
(20.7) |
Orders, organic |
$ 1,338.8 |
$ 681.0 |
$ 647.5 |
$ 2,667.3 |
% change from PY |
(5.1) % |
(0.6) % |
(5.2) % |
(4.0) % |
|
||||
|
|
|
|
|
|
Nine Months Ended |
|||
|
|
|||
|
Americas Contract |
International |
Global Retail |
Total |
Orders, as reported |
$ 1,447.0 |
$ 704.2 |
$ 760.7 |
$ 2,911.9 |
|
|
|
|
|
Adjustments |
|
|
|
|
Impact of extra week in FY23 |
(36.2) |
(18.9) |
(16.6) |
(71.7) |
Fully closure |
— |
— |
(61.0) |
(61.0) |
Orders, organic |
$ 1,410.8 |
$ 685.3 |
$ 683.1 |
$ 2,779.2 |
(1) Currency translation effects represent the estimated net impact of translating current period sales and orders using the average exchange rates applicable to the comparable prior year period. |
I. Consolidated MillerKnoll Backlog |
|
|
|
|
Q3 FY2024 |
|
|
1
During the third quarter of fiscal year 2024, we made an adjustment to the calculation of backlog for certain entities within the legacy Knoll business to more closely align to how net sales are |
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|
|
|
|
Company Guidance |
|
Q4 FY2024 |
Net sales |
|
Gross margin % |
38.1% to 39.1% |
Operating expenses |
|
Interest and other expense, net |
|
Effective tax rate |
21.0% to 23.0% |
Adjusted earnings per share - diluted |
|
About
Forward-Looking Statements
This communication includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements relate to future events and anticipated results of operations, business strategies, the anticipated benefits of our acquisition of Knoll, the anticipated impact of the Knoll acquisition on the combined Company's business and future financial and operating results, the expected amount and timing of synergies from the Knoll acquisition, and other aspects of our operations or operating results. These forward-looking statements generally can be identified by phrases such as "will," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar import. It is uncertain whether any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what impact they will have on the results of operations and financial condition of
View original content:https://www.prnewswire.com/news-releases/millerknoll-inc-reports-third-quarter-fiscal-2024-results-302101436.html
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