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Nov 27, 2020
Steelcase Q3 2021 Earnings Report
Reported a decrease in revenue due to the economic uncertainty and a cyberattack, but maintained profitability through cost controls.
Key Takeaways
Steelcase reported a decrease in revenue of 35% compared to the prior year, with a net income of $2.1 million, or $0.02 per share. The results were impacted by a cyberattack that delayed approximately $60 million of revenue to the fourth quarter. Despite the challenges, the company maintained profitability through aggressive cost controls.
Third quarter revenue was $617.5 million, a 35% decrease compared to the prior year.
Net income was $2.1 million, or $0.02 per share, including $11.4 million of pre-tax restructuring costs.
Adjusted earnings were $0.08 per share, excluding restructuring costs and related tax benefits.
A cyberattack caused a delay of approximately $60 million of revenue to the fourth quarter.
Steelcase
Steelcase
Forward Guidance
The company expects fourth quarter fiscal 2021 revenue to be approximately $650 million and diluted earnings per share to be approximately breakeven.
Positive Outlook
- Early stages of vaccine deployment beginning.
- Some customers are reactivating idled project opportunities.
- Customers will be ready to return to their offices next year.
- Continuing to invest in new products designed to help customers make their offices safe.
- Continuing to invest in new products designed to help customers make their offices flexible, productive and inspiring.
Challenges Ahead
- Average weekly order levels during the first two weeks of December remained similar to the third quarter.
- Projected operating expenses of between $180 million to $185 million.
- Projected interest expense, net of investment income and other income, net, of approximately $5 million.
- Expected organic decline of 28 percent compared to the fourth quarter of fiscal 2020.
- Backlog of customer orders was $545 million, or 15 percent lower than the prior year.