scs-20220527

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________________________________________

FORM 10-Q


☑						QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended May 27, 2022


or
☐						TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 1-13873

___________________________________________________________

STEELCASE INC.

(Exact name of registrant as specified in its charter)


Michigan		38-0819050
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
901 44th Street SE
Grand Rapids,	Michigan	49508
(Address of principal executive offices)		(Zip Code)

(616) 247-2710

(Registrant's telephone number, including area code)

None

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol(s)	Name of each exchange on which registered
Class A Common Stock	SCS	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

As of June 21, 2022, Steelcase Inc. had 92,266,368 shares of Class A Common Stock and 20,495,134 shares of Class B Common Stock outstanding.

Table of Contents


STEELCASE INC. FORM 10-Q FOR THE QUARTERLY PERIOD ENDED May 27, 2022 INDEX


		Page No.

PART I	Financial Information	1
Item 1.	Financial Statements (Unaudited)	1
	Condensed Consolidated Statements of Operations for the Three Months Ended May 27, 2022 and May 28 , 202 1	1
	Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three Months Ended May 27, 2022 and May 2 8 , 202 1	2
	Condensed Consolidated Balance Sheets as of May 27 , 202 2 and February 2 5 , 202 2	3
	Condensed Consolidated Statements of Changes in Shareholders' Equity for the Three Months Ended May 27, 2022 and May 28 , 202 1	4
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended May 27, 2022 and May 28, 2021	5
	Notes to Condensed Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	26
Item 4.	Controls and Procedures	27

PART II	Other Information	27
Item 1A.	Risk Factors	27
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	28
Item 6.	Exhibits	29
Signatures		30

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1.Financial Statements:

STEELCASE INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(in millions, except per share data)


	Three Months Ended
	May 27, 2022		May 28, 2021
Revenue	$	740.7	$	556.6
Cost of sales	548.2		401.9
Restructuring costs	0.9		—
Gross profit	191.6		154.7
Operating expenses	200.9		186.5
Restructuring costs	3.3		—
Operating loss	(12.6)		(31.8)
Interest expense	(6.4)		(6.4)
Investment income	0.1		0.2
Other income (expense), net	3.1		(0.8)
Loss before income tax benefit	(15.8)		(38.8)
Income tax benefit	(4.4)		(10.7)
Net loss	$	(11.4)	$	(28.1)
Earnings (loss) per share:
Basic	$	(0.10)	$	(0.24)
Diluted	$	(0.10)	$	(0.24)
Dividends declared and paid per common share	$	0.145	$	0.100

See accompanying notes to the condensed consolidated financial statements.

Table of Contents

STEELCASE INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited)

(in millions)


	Three Months Ended
	May 27, 2022		May 28, 2021
Net loss	$	(11.4)	$	(28.1)
Other comprehensive income (loss), net:
Unrealized gain (loss) on investments	(0.3)		0.2
Pension and other post-retirement liability adjustments	0.2		(0.1)
Derivative amortization	0.3		0.2
Foreign currency translation adjustments	(18.6)		0.9
Total other comprehensive income (loss), net	(18.4)		1.2
Comprehensive loss	$	(29.8)	$	(26.9)

See accompanying notes to the condensed consolidated financial statements.

Table of Contents

STEELCASE INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions)


	(Unaudited)
	May 27, 2022		February 25, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	116.7	$	200.9

Accounts receivable, net of allowance of $8.2 and $8.0	349.0		340.4
Inventories	372.0		326.2

Prepaid expenses	29.8		24.0
Income taxes receivable	16.4		41.7
Other current assets	33.7		26.0
Total current assets	917.6

SEC Form 10-Q filed by Steelcase Inc.