MillerKnoll, Inc. Supplemental Financial Data
Revised Quarterly Segment Data for the quarterly periods within each of the fiscal years ended May 29, 2021 and May 28, 2022
(Unaudited) ($ in millions)
I.Segment Information
The tables below summarize, for the periods indicated, the revised reportable segments and the other supplemental data of MillerKnoll, Inc.
A.Quarterly Segment Data for Fiscal 2022
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Twelve Months Ended |
| August 28, 2021 | | November 27, 2021 | February 26, 2022 | May 28, 2022 | May 28, 2022 |
| Americas | | | | | | | | | | | | | | | | | | | |
Net Sales (1) | $ | 381.3 | | | 100.0 | % | | $ | 499.3 | | | 100.0 | % | | $ | 509.4 | | | 100.0 | % | | $ | 539.2 | | | 100.0 | % | | $ | 1,929.1 | | | 100.0 | % |
| Gross Margin | 106.2 | | 27.9 | % | | 128.4 | | 25.7 | % | | 120.9 | | 23.7 | % | | 137.6 | | 25.5 | % | | 493.1 | | | 25.6 | % |
Operating Expenses (1) | 116.8 | | 30.6 | % | | 139.3 | | 27.9 | % | | 129.5 | | 25.4 | % | | 131.6 | | 24.4 | % | | 517.1 | | | 26.8 | % |
| | | | | | | | | | | | | | | | | | | |
Operating (Loss) Earnings (1) | $ | (10.6) | | | (2.8) | % | | $ | (10.9) | | | (2.2) | % | | $ | (8.6) | | | (1.7) | % | | $ | 6.0 | | | 1.1 | % | | $ | (24.0) | | | (1.2) | % |
| International & Specialty | | | | | | | | | | | | | | | | | | | |
Net Sales (1) | $ | 167.1 | | | 100.0 | % | | $ | 247.0 | | | 100.0 | % | | $ | 241.0 | | | 100.0 | % | | $ | 273.3 | | | 100.0 | % | | $ | 928.5 | | | 100.0 | % |
| Gross Margin | 67.2 | | | 40.2 | % | | 98.5 | | | 39.9 | % | | 93.9 | | | 39.0 | % | | 113.0 | | | 41.3 | % | | 372.6 | | | 40.1 | % |
Operating Expenses (1) | 60.6 | | | 36.3 | % | | 83.7 | | | 33.9 | % | | 76.9 | | | 31.9 | % | | 81.4 | | | 29.8 | % | | 302.7 | | | 32.6 | % |
| | | | | | | | | | | | | | | | | | | |
Operating Earnings (1) | $ | 6.6 | | | 3.9 | % | | $ | 14.8 | | | 6.0 | % | | $ | 17.0 | | | 7.1 | % | | $ | 31.6 | | | 11.6 | % | | $ | 69.9 | | | 7.5 | % |
| Retail | | | | | | | | | | | | | | | | | | | |
| Net Sales | $ | 241.3 | | | 100.0 | % | | $ | 280.0 | | | 100.0 | % | | $ | 279.1 | | | 100.0 | % | | $ | 288.0 | | | 100.0 | % | | $ | 1,088.4 | | | 100.0 | % |
| Gross Margin | 104.3 | | | 43.2 | % | | 126.1 | | | 45.0 | % | | 124.7 | | | 44.7 | % | | 131.9 | | | 45.8 | % | | 487.0 | | | 44.7 | % |
| Operating Expenses | 77.9 | | | 32.3 | % | | 91.7 | | | 32.8 | % | | 88.4 | | | 31.7 | % | | 94.5 | | | 32.8 | % | | 352.5 | | | 32.4 | % |
| | | | | | | | | | | | | | | | | | | |
| Operating Earnings | $ | 26.4 | | | 10.9 | % | | $ | 34.4 | | | 12.3 | % | | $ | 36.3 | | | 13.0 | % | | $ | 37.4 | | | 13.0 | % | | $ | 134.5 | | | 12.4 | % |
| Corporate | | | | | | | | | | | | | | | | | | | |
| Operating Expenses | $ | 75.0 | | | — | % | | $ | 32.1 | | | — | % | | $ | 15.5 | | | — | % | | $ | 18.0 | | | — | % | | $ | 140.6 | | | — | % |
| | | | | | | | | | | | | | | | | | | |
| Operating (Loss) | $ | (75.0) | | | — | % | | $ | (32.1) | | | — | % | | $ | (15.5) | | | — | % | | $ | (18.0) | | | — | % | | $ | (140.6) | | | — | % |
| MillerKnoll, Inc. | | | | | | | | | | | | | | | | | | | |
| Net Sales | $ | 789.7 | | | 100.0 | % | | $ | 1,026.3 | | | 100.0 | % | | $ | 1,029.5 | | | 100.0 | % | | $ | 1,100.5 | | | 100.0 | % | | $ | 3,946.0 | | | 100.0 | % |
Gross Margin | 277.7 | | | 35.2 | % | | 353.0 | | | 34.4 | % | | 339.5 | | | 33.0 | % | | 382.5 | | | 34.8 | % | | 1,352.7 | | | 34.3 | % |
| Operating Expenses | 330.3 | | | 41.8 | % | | 346.8 | | | 33.8 | % | | 310.3 | | | 30.1 | % | | 325.5 | | | 29.6 | % | | 1,312.9 | | | 33.3 | % |
| | | | | | | | | | | | | | | | | | | |
| Operating (Loss) Earnings | $ | (52.6) | | | (6.7) | % | | $ | 6.2 | | | 0.6 | % | | $ | 29.2 | | | 2.8 | % | | $ | 57.0 | | | 5.2 | % | | $ | 39.8 | | | 1.0 | % |
(1) The sum of the quarters does not equal the annual balance reflected in the fiscal 2022 issued Consolidated Statements of Comprehensive Income due to rounding associated with the calculations on an individual quarter basis.
B. Quarterly Segment Data for Fiscal 2021
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Twelve Months Ended |
| August 29, 2020 | | November 28, 2020 | | February 27, 2021 | May 29, 2021 | May 29, 2021 |
| Americas | | | | | | | | | | | | | | | | | | | |
Net Sales (1) | $ | 352.3 | | | 100.0 | % | | $ | 330.5 | | | 100.0 | % | | $ | 275.6 | | | 100.0 | % | | $ | 276.3 | | | 100.0 | % | | $ | 1,234.6 | | | 100.0 | % |
| Gross Margin | 128.8 | | | 36.6 | % | | 114.1 | | | 34.5 | % | | 90.8 | | | 32.9 | % | | 76.2 | | | 27.6 | % | | 409.9 | | | 33.2 | % |
Operating Expenses (1) | 71.5 | | | 20.3 | % | | 74.8 | | | 22.6 | % | | 73.1 | | | 26.5 | % | | 93.1 | | | 33.7 | % | | 312.7 | | | 25.3 | % |
| | | | | | | | | | | | | | | | | | | |
Operating (Loss) Earnings (1) | $ | 57.3 | | | 16.3 | % | | $ | 39.3 | | | 11.9 | % | | $ | 17.7 | | | 6.4 | % | | $ | (16.9) | | | (6.1) | % | | $ | 97.2 | | | 7.9 | % |
| International & Specialty | | | | | | | | | | | | | | | | | | | |
Net Sales (1) | $ | 114.9 | | | 100.0 | % | | $ | 121.4 | | | 100.0 | % | | $ | 116.3 | | | 100.0 | % | | $ | 126.9 | | | 100.0 | % | | $ | 479.6 | | | 100.0 | % |
Gross Margin (1) | 45.2 | | | 39.3 | % | | 46.9 | | | 38.6 | % | | 44.2 | | | 38.0 | % | | 46.2 | | | 36.4 | % | | 182.6 | | | 38.1 | % |
| Operating Expenses | 27.3 | | | 23.8 | % | | 32.7 | | | 26.9 | % | | 35.0 | | | 30.1 | % | | 38.2 | | | 30.1 | % | | 133.2 | | | 27.8 | % |
| | | | | | | | | | | | | | | | | | | |
Operating Earnings (1) | $ | 17.9 | | | 15.6 | % | | $ | 14.2 | | | 11.7 | % | | $ | 9.2 | | | 7.9 | % | | $ | 8.0 | | | 6.3 | % | | $ | 49.4 | | | 10.3 | % |
| Retail | | | | | | | | | | | | | | | | | | | |
| Net Sales | $ | 159.6 | | | 100.0 | % | | $ | 174.4 | | | 100.0 | % | | $ | 198.6 | | | 100.0 | % | | $ | 218.3 | | | 100.0 | % | | $ | 750.9 | | | 100.0 | % |
Gross Margin (1) | 75.8 | | | 47.5 | % | | 83.4 | | | 47.8 | % | | 95.8 | | | 48.2 | % | | 103.7 | | | 47.5 | % | | 358.6 | | | 47.8 | % |
| Operating Expenses | 45.7 | | | 28.6 | % | | 55.4 | | | 31.8 | % | | 57.3 | | | 28.9 | % | | 62.0 | | | 28.4 | % | | 220.4 | | | 29.4 | % |
| | | | | | | | | | | | | | | | | | | |
Operating Earnings (1) | $ | 30.1 | | | 18.9 | % | | $ | 28.0 | | | 16.1 | % | | $ | 38.5 | | | 19.4 | % | | $ | 41.7 | | | 19.1 | % | | $ | 138.2 | | | 18.4 | % |
| Corporate | | | | | | | | | | | | | | | | | | | |
Operating Expenses | $ | 10.1 | | | — | % | | $ | 10.3 | | | — | % | | $ | 10.4 | | | — | % | | $ | 21.5 | | | — | % | | $ | 52.3 | | | — | % |
| | | | | | | | | | | | | | | | | | | |
Operating (Loss) | $ | (10.1) | | | — | % | | $ | (10.3) | | | — | % | | $ | (10.4) | | | — | % | | $ | (21.5) | | | — | % | | $ | (52.3) | | | — | % |
| MillerKnoll, Inc. | | | | | | | | | | | | | | | | | | | |
| Net Sales | $ | 626.8 | | | 100.0 | % | | $ | 626.3 | | | 100.0 | % | | $ | 590.5 | | | 100.0 | % | | $ | 621.5 | | | 100.0 | % | | $ | 2,465.1 | | | 100.0 | % |
| Gross Margin | 249.8 | | | 39.9 | % | | 244.4 | | | 39.0 | % | | 230.8 | | | 39.1 | % | | 226.1 | | | 36.4 | % | | 951.1 | | | 38.6 | % |
Operating Expenses (1) | 154.6 | | | 24.7 | % | | 173.2 | | | 27.7 | % | | 175.8 | | | 29.8 | % | | 214.8 | | | 34.6 | % | | 718.6 | | | 29.2 | % |
| | | | | | | | | | | | | | | | | | | |
Operating Earnings (1) | $ | 95.2 | | | 15.2 | % | | $ | 71.2 | | | 11.4 | % | | $ | 55.0 | | | 9.3 | % | | $ | 11.3 | | | 1.8 | % | | $ | 232.5 | | | 9.4 | % |
(1) The sum of the quarters does not equal the annual balance reflected in the fiscal 2021 issued Consolidated Statements of Comprehensive Income due to rounding associated with the calculations on an individual quarter basis.
II. Non-GAAP Financial Measures
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 Operating Earnings (Loss) and Organic Growth (Decline).
Adjusted Operating Earnings (Loss) represents reported operating earnings plus acquisition and integration charges, amortization of purchased intangibles, restructuring expenses and other special charges. These adjustments are described further as follows:
Acquisition and integration charges: Costs related directly to the Knoll acquisition including legal, accounting and other professional fees as well as integration-related costs. Integration-related costs include severance, accelerated stock-based compensation expenses, asset impairment charges, and other cost reduction efforts or reorganization initiatives.
Amortization of purchased intangibles: Includes expenses associated with the amortization of inventory step-up and 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 purchased intangibles, including the fair value adjustment to inventory, 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 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 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.
Gain on sale of dealer: Includes the gain recorded on the divestiture of an owned dealership.
Restructuring expenses: Include actions involving facilities consolidation and optimization, targeted workforce reductions, and costs associated with an early retirement program.
Special charges: Special charges include certain costs arising as a direct result of the COVID-19 pandemic, and retroactive payments related to reinstated employee benefits made in the prior year. Retroactive payments related to reinstated employee benefits were an adjustment to Operating Earnings in the fourth quarter of fiscal 2021, but not for the full year.
Organic Growth (Decline) represents the change in sales and orders, excluding currency translation effects and the impact of acquisitions and divestitures.
A.Reconciliation of Operating (Loss) Earnings to Adjusted Operating Earnings by Segment for Fiscal 2022
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Twelve Months Ended |
| August 28, 2021 | | November 27, 2021 | | February 26, 2022 | May 28, 2022 | May 28, 2022 |
| Americas | | | | | | | | | | | | | | | | | | | |
Net Sales(1) | $ | 381.3 | | | 100.0 | % | | $ | 499.3 | | | 100.0 | % | | $ | 509.4 | | | 100.0 | % | | $ | 539.2 | | | 100.0 | % | | $ | 1,929.1 | | | 100.0 | % |
| Gross Margin | 106.2 | | | 27.9 | % | | 128.4 | | | 25.7 | % | | 120.9 | | | 23.7 | % | | 137.6 | | | 25.5 | % | | 493.1 | | | 25.6 | % |
Operating Expenses (1) | 116.8 | | | 30.6 | % | | 139.3 | | | 27.9 | % | | 129.5 | | | 25.4 | % | | 131.6 | | | 24.4 | % | | 517.1 | | | 26.8 | % |
Operating (Loss) Earnings (1) | (10.6) | | | (2.8) | % | | (10.9) | | | (2.2) | % | | (8.6) | | | (1.7) | % | | 6.0 | | | 1.1 | % | | (24.0) | | | (1.2) | % |
| Adjustments | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| Acquisition and Integration Charges | 4.7 | | | 1.2 | % | | 19.1 | | | 3.8 | % | | 2.4 | | | 0.5 | % | | 3.7 | | | 0.7 | % | | 29.9 | | | 1.5 | % |
| Amortization of Purchased Intangibles | 18.3 | | | 4.8 | % | | 4.3 | | | 0.9 | % | | 3.0 | | | 0.6 | % | | 3.1 | | | 0.6 | % | | 28.7 | | | 1.5 | % |
| Gain on Sale of Dealer | — | | | — | % | | — | | | — | % | | (2.0) | | | (0.4) | % | | — | | | — | % | | (2.0) | | | (0.1) | % |
Adjusted Operating Earnings (Loss)(1) | $ | 12.4 | | | 3.3 | % | | $ | 12.5 | | | 2.5 | % | | $ | (5.2) | | | (1.0) | % | | $ | 12.8 | | | 2.4 | % | | $ | 32.6 | | | 1.7 | % |
| International & Specialty | | | | | | | | | | | | | | | | | | | |
Net Sales (1) | $ | 167.1 | | | 100.0 | % | | $ | 247.0 | | | 100.0 | % | | $ | 241.0 | | | 100.0 | % | | $ | 273.3 | | | 100.0 | % | | $ | 928.5 | | | 100.0 | % |
| Gross Margin | 67.2 | | | 40.2 | % | | 98.5 | | | 39.9 | % | | 93.9 | | | 39.0 | % | | 113.0 | | | 41.3 | % | | 372.6 | | | 40.1 | % |
Operating Expenses (1) | 60.6 | | | 36.3 | % | | 83.7 | | | 33.9 | % | | 76.9 | | | 31.9 | % | | 81.4 | | | 29.8 | % | | 302.7 | | | 32.6 | % |
Operating Earnings (1) | 6.6 | | | 3.9 | % | | 14.8 | | | 6.0 | % | | 17.0 | | | 7.1 | % | | 31.6 | | | 11.6 | % | | 69.9 | | | 7.5 | % |
| Adjustments | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Acquisition and Integration Charges | — | | | — | % | | 0.8 | | | 0.3 | % | | 0.3 | | | 0.1 | % | | 0.1 | | | — | % | | 1.2 | | | 0.1 | % |
Amortization of Purchased Intangibles (1) | 10.9 | | | 6.5 | % | | 9.8 | | | 4.0 | % | | 3.8 | | | 1.6 | % | | 2.3 | | | 0.8 | % | | 26.9 | | | 2.9 | % |
| Adjusted Operating Earnings | $ | 17.5 | | | 10.5 | % | | $ | 25.4 | | | 10.3 | % | | $ | 21.1 | | | 8.8 | % | | $ | 34.0 | | | 12.4 | % | | $ | 98.0 | | | 10.6 | % |
| Retail | | | | | | | | | | | | | | | | | | | |
| Net Sales | $ | 241.3 | | | 100.0 | % | | $ | 280.0 | | | 100.0 | % | | $ | 279.1 | | | 100.0 | % | | $ | 288.0 | | | 100.0 | % | | $ | 1,088.4 | | | 100.0 | % |
Gross Margin | 104.3 | | | 43.2 | % | | 126.1 | | | 45.0 | % | | 124.7 | | | 44.7 | % | | 131.9 | | | 45.8 | % | | 487.0 | | | 44.7 | % |
| Operating Expenses | 77.9 | | | 32.3 | % | | 91.7 | | | 32.8 | % | | 88.4 | | | 31.7 | % | | 94.5 | | | 32.8 | % | | 352.5 | | | 32.4 | % |
Operating Earnings | 26.4 | | | 10.9 | % | | 34.4 | | | 12.3 | % | | 36.3 | | | 13.0 | % | | 37.4 | | | 13.0 | % | | 134.5 | | | 12.4 | % |
| Adjustments | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| Acquisition and Integration Charges | (0.2) | | | (0.1) | % | | 0.5 | | | 0.2 | % | | — | | | — | % | | — | | | — | % | | 0.3 | | | — | % |
| Amortization of Purchased Intangibles | 3.3 | | | 1.4 | % | | 2.0 | | | 0.7 | % | | 1.2 | | | 0.4 | % | | 1.3 | | | 0.5 | % | | 7.8 | | | 0.7 | % |
| Adjusted Operating Earnings | $ | 29.5 | | | 12.2 | % | | $ | 36.9 | | | 13.2 | % | | $ | 37.5 | | | 13.4 | % | | $ | 38.7 | | | 13.4 | % | | $ | 142.6 | | | 13.1 | % |
| Corporate | | | | | | | | | | | | | | | | | | | |
| Operating Expenses | $ | 75.0 | | | — | % | | $ | 32.1 | | | — | % | | $ | 15.5 | | | — | % | | $ | 18.0 | | | — | % | | $ | 140.6 | | | — | % |
| Operating (Loss) | (75.0) | | | — | % | | (32.1) | | | — | % | | (15.5) | | | — | % | | (18.0) | | | — | % | | (140.6) | | | — | % |
| Adjustments | | | | | | | | | | | | | | | | | | | |
Acquisition and Integration Charges(1) | $ | 64.4 | | | — | % | | $ | 20.7 | | | — | % | | $ | 4.4 | | | — | % | | $ | 3.7 | | | — | % | | $ | 93.1 | | | — | % |
| | | | | | | | | | | | | | | | | | | |
Adjusted Operating (Loss)(1) | $ | (10.6) | | | — | % | | $ | (11.4) | | | — | % | | $ | (11.1) | | | — | % | | $ | (14.3) | | | — | % | | $ | (47.5) | | | — | % |
| MillerKnoll, Inc. | | | | | | | | | | | | | | | | | | | |
| Net Sales | $ | 789.7 | | | 100.0 | % | | $ | 1,026.3 | | | 100.0 | % | | $ | 1,029.5 | | | 100.0 | % | | $ | 1,100.5 | | | 100.0 | % | | $ | 3,946.0 | | | 100.0 | % |
Gross Margin | 277.7 | | | 35.2 | % | | 353.0 | | | 34.4 | % | | 339.5 | | | 33.0 | % | | 382.5 | | | 34.8 | % | | 1,352.7 | | | 34.3 | % |
Operating Expenses | 330.3 | | | 41.8 | % | | 346.8 | | | 33.8 | % | | 310.3 | | | 30.1 | % | | 325.5 | | | 29.6 | % | | 1,312.9 | | | 33.3 | % |
| Operating (Loss) Earnings | (52.6) | | | (6.7) | % | | 6.2 | | | 0.6 | % | | 29.2 | | | 2.8 | % | | 57.0 | | | 5.2 | % | | 39.8 | | | 1.0 | % |
| Adjustments | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Acquisition and Integration Charges (1) | 68.9 | | | 8.7 | % | | 41.1 | | | 4.0 | % | | 7.1 | | | 0.7 | % | | 7.5 | | | 0.7 | % | | 124.5 | | | 3.2 | % |
Amortization of Purchased Intangibles (1) | 32.5 | | | 4.1 | % | | 16.1 | | | 1.6 | % | | 8.0 | | | 0.8 | % | | 6.7 | | | 0.6 | % | | 63.4 | | | 1.6 | % |
| Gain on Sale of Dealer | — | | | — | % | | — | | | — | % | | (2.0) | | | (0.2) | % | | — | | | — | % | | (2.0) | | | (0.1) | % |
| Adjusted Operating Earnings | $ | 48.8 | | | 6.2 | % | | $ | 63.4 | | | 6.2 | % | | $ | 42.3 | | | 4.1 | % | | $ | 71.2 | | | 6.5 | % | | $ | 225.7 | | | 5.7 | % |
(1) The sum of the quarters does not equal the annual balance reflected in the fiscal 2022 issued Consolidated Statements of Comprehensive Income due to rounding associated with the calculations on an individual quarter basis.
B. Reconciliation of Operating Earnings (Loss) to Adjusted Operating Earnings by Segment for Fiscal 2021
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Twelve Months Ended |
| August 29, 2020 | | November 28, 2020 | | February 27, 2021 | May 29, 2021 | May 29, 2021 |
| Americas | | | | | | | | | | | | | | | | | | | |
Net Sales (1) | $ | 352.3 | | | 100.0 | % | | $ | 330.5 | | | 100.0 | % | | $ | 275.6 | | | 100.0 | % | | $ | 276.3 | | | 100.0 | % | | $ | 1,234.6 | | | 100.0 | % |
| Gross Margin | 128.8 | | 36.6 | % | | 114.1 | | 34.5 | % | | 90.8 | | 32.9 | % | | 76.2 | | 27.6 | % | | 409.9 | | | 33.2 | % |
Operating Expenses (1) | 71.5 | | 20.3 | % | | 74.8 | | 22.6 | % | | 73.1 | | 26.5 | % | | 93.1 | | 33.7 | % | | 312.7 | | | 25.3 | % |
Operating Earnings (Loss) (1) | 57.3 | | | 16.3 | % | | 39.3 | | | 11.9 | % | | 17.7 | | | 6.4 | % | | (16.9) | | | (6.1) | % | | 97.2 | | | 7.9 | % |
| Adjustments | | | | | | | | | | | | | | | | | | | |
Special Charges (1) (2) | 0.2 | | | 0.1 | % | | 0.1 | | | — | % | | — | | | — | % | | 21.1 | | | 7.6 | % | | — | | | — | % |
| | | | | | | | | | | | | | | | | | | |
Restructuring (1) | 1.5 | | | 0.4 | % | | 1.2 | | | 0.4 | % | | 0.2 | | | 0.1 | % | | 1.2 | | | 0.4 | % | | 4.0 | | | 0.3 | % |
Adjusted Operating Earnings (1) (2) | $ | 59.0 | | | 16.7 | % | | $ | 40.6 | | | 12.3 | % | | $ | 17.9 | | | 6.5 | % | | $ | 5.4 | | | 2.0 | % | | $ | 101.2 | | | 8.2 | % |
| International & Specialty | | | | | | | | | | | | | | | | | | | |
Net Sales (1) | $ | 114.9 | | | 100.0 | % | | $ | 121.4 | | | 100.0 | % | | $ | 116.3 | | | 100.0 | % | | $ | 126.9 | | | 100.0 | % | | $ | 479.6 | | | 100.0 | % |
Gross Margin (1) | 45.2 | | | 39.3 | % | | 46.9 | | | 38.6 | % | | 44.2 | | | 38.0 | % | | 46.2 | | | 36.4 | % | | 182.6 | | | 38.1 | % |
| Operating Expenses | 27.3 | | | 23.8 | % | | 32.7 | | | 26.9 | % | | 35.0 | | | 30.1 | % | | 38.2 | | | 30.1 | % | | 133.2 | | | 27.8 | % |
Operating Earnings (1) | 17.9 | | | 15.6 | % | | 14.2 | | | 11.7 | % | | 9.2 | | | 7.9 | % | | 8.0 | | | 6.3 | % | | 49.4 | | | 10.3 | % |
| Adjustments | | | | | | | | | | | | | | | | | | | |
Special Charges(1) | 1.1 | | | 1.0 | % | | (0.3) | | | (0.2) | % | | — | | | — | % | | 0.5 | | | 0.4 | % | | 1.2 | | | 0.3 | % |
| | | | | | | | | | | | | | | | | | | |
Restructuring (1) | (2.7) | | | (2.3) | % | | 1.2 | | | 1.0 | % | | 0.1 | | | 0.1 | % | | — | | | — | % | | (1.3) | | | (0.3) | % |
Adjusted Operating Earnings(1) | $ | 16.3 | | | 14.2 | % | | $ | 15.1 | | | 12.4 | % | | $ | 9.3 | | | 8.0 | % | | $ | 8.5 | | | 6.7 | % | | $ | 49.3 | | | 10.3 | % |
| Retail | | | | | | | | | | | | | | | | | | | |
| Net Sales | $ | 159.6 | | | 100.0 | % | | $ | 174.4 | | | 100.0 | % | | $ | 198.6 | | | 100.0 | % | | $ | 218.3 | | | 100.0 | % | | $ | 750.9 | | | 100.0 | % |
Gross Margin (1) | 75.8 | | | 47.5 | % | | 83.4 | | | 47.8 | % | | 95.8 | | | 48.2 | % | | 103.7 | | | 47.5 | % | | 358.6 | | | 47.8 | % |
Operating Expenses (1) | 45.7 | | | 28.6 | % | | 55.4 | | | 31.8 | % | | 57.3 | | | 28.9 | % | | 62.0 | | | 28.4 | % | | 220.4 | | | 29.4 | % |
Operating Earnings(1) | 30.1 | | | 18.9 | % | | 28.0 | | | 16.1 | % | | 38.5 | | | 19.4 | % | | 41.7 | | | 19.1 | % | | 138.2 | | | 18.4 | % |
| Adjustments | | | | | | | | | | | | | | | | | | | |
Special Charges(1) (2) | 0.1 | | | 0.1 | % | | — | | | — | % | | — | | | — | % | | 0.5 | | | 0.2 | % | | — | | | — | % |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Adjusted Operating Earnings (1)(2) | $ | 30.2 | | | 18.9 | % | | $ | 28.0 | | | 16.1 | % | | $ | 38.5 | | | 19.4 | % | | $ | 42.2 | | | 19.3 | % | | $ | 138.2 | | | 18.4 | % |
| Corporate | | | | | | | | | | | | | | | | | | | |
| Operating Expenses | 10.1 | | | — | % | | 10.3 | | | — | % | | 10.4 | | | — | % | | 21.5 | | | — | % | | 52.3 | | | — | % |
| Operating (Loss) | (10.1) | | | — | % | | (10.3) | | | — | % | | (10.4) | | | — | % | | (21.5) | | | — | % | | (52.3) | | | — | % |
| Adjustments | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| Acquisitions and Integration | — | | | — | % | | — | | | — | % | | — | | | — | % | | 11.0 | | | — | % | | 11.0 | | | — | % |
Adjusted Operating (Loss) | $ | (10.1) | | | — | % | | $ | (10.3) | | | — | % | | $ | (10.4) | | | — | % | | $ | (10.5) | | | — | % | | $ | (41.3) | | | — | % |
| MillerKnoll, Inc. | | | | | | | | | | | | | | | | | | | |
| Net Sales | $ | 626.8 | | | 100.0 | % | | $ | 626.3 | | | 100.0 | % | | $ | 590.5 | | | 100.0 | % | | $ | 621.5 | | | 100.0 | % | | $ | 2,465.1 | | | 100.0 | % |
| Gross Margin | 249.8 | | | 39.9 | % | | 244.4 | | | 39.0 | % | | 230.8 | | | 39.1 | % | | 226.1 | | | 36.4 | % | | 951.1 | | | 38.6 | % |
Operating Expenses (1) | 154.6 | | | 24.7 | % | | 173.2 | | | 27.7 | % | | 175.8 | | | 29.8 | % | | 214.8 | | | 34.6 | % | | 718.6 | | | 29.2 | % |
Operating Earnings (1) | 95.2 | | | 15.2 | % | | 71.2 | | | 11.4 | % | | 55.0 | | | 9.3 | % | | 11.3 | | | 1.8 | % | | 232.5 | | | 9.4 | % |
| Adjustments | | | | | | | | | | | | | | | | | | | |
Special Charges (1)(2)) | $ | 1.4 | | | 0.2 | % | | $ | (0.2) | | | — | % | | $ | — | | | — | % | | $ | 22.1 | | | 3.6 | % | | $ | 1.2 | | | — | % |
| Acquisition and Integration | — | | | — | % | | — | | | — | % | | — | | | — | % | | 11.0 | | | 1.8 | % | | 11.0 | | | 0.4 | % |
| Restructuring | (1.2) | | | (0.2) | % | | 2.4 | | | 0.4 | % | | 0.3 | | | 0.1 | % | | 1.2 | | | 0.2 | % | | 2.7 | | | 0.1 | % |
Adjusted Operating Earnings (1) (2) | $ | 95.4 | | | 15.2 | % | | $ | 73.4 | | | 11.7 | % | | $ | 55.3 | | | 9.4 | % | | $ | 45.6 | | | 7.3 | % | | $ | 247.4 | | | 10.0 | % |
(1) The sum of the quarters does not equal the annual balance reflected in the fiscal 2021 issued Consolidated Statements of Comprehensive Income due to rounding associated with the calculations on an individual quarter basis.
(2) Retroactive payments related employee benefits that were suspended for a portion of fiscal year 2021, then reinstated in the fourth quarter were an adjustment to Operating Earnings in the fourth quarter of fiscal 2021, but not an adjusting item for the full year.
C. Organic Sales Growth (Decline) by Segment
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | Twelve Months Ended | |
| August 28, 2021 | | November 27, 2021 | | February 26, 2022 | | May 28, 2022 | | May 28, 2022 | |
| Americas | | | | | | | | | | |
Net Sales, as reported (1) | $ | 381.3 | | | $ | 499.3 | | | $ | 509.4 | | | $ | 539.2 | | | $ | 1,929.1 | | |
| % change from prior year | 8.2 | % | | 51.1 | % | | 84.8 | % | | 95.2 | % | | 56.3 | % | |
| Adjustments | | | | | | | | | | |
| Acquisitions | (73.7) | | | (156.3) | | | (163.7) | | | (170.7) | | | (564.4) | | |
| Currency Translation Effects | (0.8) | | | (0.9) | | | 0.3 | | | 0.5 | | | (1.0) | | |
Net Sales, organic (1) | $ | 306.8 | | | $ | 342.1 | | | $ | 346.0 | | | $ | 369.0 | | | $ | 1,363.7 | | |
| % change from prior year | (12.9) | % | | 3.5 | % | | 25.7 | % | | 34.3 | % | | 10.6 | % | |
| | | | | | | | | | |
| Three Months Ended | Twelve Months Ended | |
| August 29, 2020 | | November 28, 2020 | | February 27, 2021 | | May 29, 2021 | | May 29, 2021 | |
Net Sales, as reported (1) | $ | 352.3 | | | $ | 330.5 | | | $ | 275.6 | | | $ | 276.3 | | | $ | 1,234.6 | | |
| Adjustments | | | | | | | | | | |
| Dealer Divestitures | — | | | — | | | (0.4) | | | (1.5) | | | (1.9) | | |
Net Sales, organic (1) | $ | 352.3 | | | $ | 330.5 | | | $ | 275.2 | | | $ | 274.8 | | | $ | 1,232.7 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | Twelve Months Ended | |
| August 28, 2021 | | November 27, 2021 | | February 26, 2022 | | May 28, 2022 | | May 28, 2022 | |
| International & Specialty | | | | | | | | | | |
Net Sales, as reported (1) | $ | 167.1 | | | $ | 247.0 | | | $ | 241.0 | | | $ | 273.3 | | | $ | 928.5 | | |
| % change from prior year | 45.4 | % | | 103.5 | % | | 107.2 | % | | 115.4 | % | | 93.6 | % | |
| Adjustments | | | | | | | | | | |
| Acquisitions | (46.6) | | | (100.0) | | | (95.2) | | | (110.1) | | | (351.9) | | |
| Currency Translation Effects | (4.7) | | | (0.1) | | | 4.1 | | | 9.2 | | | 8.4 | | |
Net Sales, organic (1) | $ | 115.8 | | | $ | 146.9 | | | $ | 149.9 | | | $ | 172.4 | | | $ | 585.0 | | |
| % change from prior year | 0.8 | % | | 21.0 | % | | 28.9 | % | | 35.9 | % | | 22.0 | % | |
| | | | | | | | | | |
| Three Months Ended | Twelve Months Ended | |
| August 29, 2020 | | November 28, 2020 | | February 27, 2021 | | May 29, 2021 | | May 29, 2021 | |
Net Sales, as reported (1) | $ | 114.9 | | | $ | 121.4 | | | $ | 116.3 | | | $ | 126.9 | | | $ | 479.6 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | Twelve Months Ended | |
| August 28, 2021 | | November 27, 2021 | | February 26, 2022 | | May 28, 2022 | | May 28, 2022 | |
| Retail | | | | | | | | | | |
| Net Sales, as reported | $ | 241.3 | | | $ | 280.0 | | | $ | 279.1 | | | $ | 288.0 | | | $ | 1,088.4 | | |
| % change from prior year | 51.2 | % | | 60.6 | % | | 40.5 | % | | 31.9 | % | | 44.9 | % | |
| Adjustments | | | | | | | | | | |
| Acquisitions | (32.5) | | | (73.4) | | | (69.3) | | | (69.6) | | | (244.8) | | |
| Currency Translation Effects | (1.8) | | | 0.1 | | | 4.0 | | | 4.7 | | | 7.0 | | |
| Net Sales, organic | $ | 207.0 | | | $ | 206.7 | | | $ | 213.8 | | | $ | 223.1 | | | $ | 850.6 | | |
| % change from prior year | 29.7 | % | | 18.5 | % | | 7.7 | % | | 2.2 | % | | 13.3 | % | |
| | | | | | | | | | |
| Three Months Ended | Twelve Months Ended | |
| August 29, 2020 | | November 28, 2020 | | February 27, 2021 | | May 29, 2021 | | May 29, 2021 | |
| Net Sales, as reported | $ | 159.6 | | | $ | 174.4 | | | $ | 198.6 | | | $ | 218.3 | | | $ | 750.9 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | Twelve Months Ended | |
| August 28, 2021 | | November 27, 2021 | | February 26, 2022 | | May 28, 2022 | | May 28, 2022 | |
| MillerKnoll, Inc. | | | | | | | | | | |
| Net Sales, as reported | $ | 789.7 | | | $ | 1,026.3 | | | $ | 1,029.5 | | | $ | 1,100.5 | | | $ | 3,946.0 | | |
| % change from prior year | 26.0 | % | | 63.9 | % | | 74.3 | % | | 77.1 | % | | 60.1 | % | |
| Adjustments | | | | | | | | | | |
Acquisitions(1) | (152.8) | | | (329.7) | | | (328.2) | | | (350.4) | | | (1,161.1) | | |
Currency Translation Effects(1) | (7.3) | | | (0.9) | | | 8.4 | | | 14.4 | | | 14.4 | | |
Net Sales, organic(1) | $ | 629.6 | | | $ | 695.7 | | | $ | 709.7 | | | $ | 764.5 | | | $ | 2,799.3 | | |
| % change from prior year | 0.4 | % | | 11.1 | % | | 20.3 | % | | 23.3 | % | | 13.6 | % | |
| | | | | | | | | | |
| Three Months Ended | Twelve Months Ended | |
| August 29, 2020 | | November 28, 2020 | | February 27, 2021 | | May 29, 2021 | | May 29, 2021 | |
| Net Sales, as reported | $ | 626.8 | | | $ | 626.3 | | | $ | 590.5 | | | $ | 621.5 | | | $ | 2,465.1 | | |
| Adjustments | | | | | | | | | | |
| Dealer Divestitures | — | | | — | | | (0.4) | | | (1.5) | | | (1.9) | | |
Net Sales, organic (1) | $ | 626.8 | | | $ | 626.3 | | | $ | 590.1 | | | $ | 620.0 | | | $ | 2,463.2 | | |
(1) The sum of the quarters does not equal the annual balances due to rounding associated with the calculation on an individual quarter basis.
D. Organic Orders Growth (Decline) by Segment
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | Twelve Months Ended | |
| August 28, 2021 | | November 27, 2021 | | February 26, 2022 | | May 28, 2022 | | May 28, 2022 | |
| Americas | | | | | | | | | | |
| Orders, as reported | $ | 495.4 | | | $ | 573.1 | | | $ | 528.0 | | | $ | 495.0 | | | $ | 2,091.6 | | |
| % change from prior year | 72.9 | % | | 91.7 | % | | 105.0 | % | | 56.0 | % | | 80.3 | % | |
| Adjustments | | | | | | | | | | |
| Acquisitions | (79.0) | | | (184.7) | | | (180.0) | | | (142.9) | | | (586.4) | | |
| Currency Translation Effects | (1.0) | | | (1.2) | | | 0.4 | | | 0.3 | | | (1.5) | | |
| Orders, organic | $ | 415.4 | | | $ | 387.2 | | | $ | 348.4 | | | $ | 352.4 | | | $ | 1,503.7 | | |
| % change from prior year | 44.9 | % | | 29.5 | % | | 35.8 | % | | 12.3 | % | | 30.1 | % | |
| | | | | | | | | | |
| Three Months Ended | Twelve Months Ended | |
| August 29, 2020 | | November 28, 2020 | | February 27, 2021 | | May 29, 2021 | | May 29, 2021 | |
| Orders, as reported | $ | 286.6 | | | $ | 298.9 | | | $ | 257.5 | | | $ | 317.4 | | | $ | 1,160.3 | | |
| Adjustments | | | | | | | | | | |
| Dealer Divestitures | — | | | — | | | (1.0) | | | (3.6) | | | (4.6) | | |
| Orders, organic | $ | 286.6 | | | $ | 298.9 | | | $ | 256.5 | | | $ | 313.8 | | | $ | 1,155.7 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | Twelve Months Ended | |
| August 28, 2021 | | November 27, 2021 | | February 26, 2022 | | May 28, 2022 | | May 28, 2022 | |
| International & Specialty | | | | | | | | | | |
| Orders, as reported | $ | 193.0 | | | $ | 261.1 | | | $ | 288.7 | | | $ | 241.9 | | | $ | 984.6 | | |
| % change from prior year | 76.4 | % | | 103.2 | % | | 159.6 | % | | 80.3 | % | | 103.7 | % | |
| Adjustments | | | | | | | | | | |
| Acquisitions | (50.3) | | | (97.3) | | | (105.0) | | | (101.0) | | | (353.6) | | |
| Currency Translation Effects | (4.3) | | | (0.4) | | | 3.8 | | | 6.7 | | | 5.8 | | |
| Orders, organic | $ | 138.4 | | | $ | 163.4 | | | $ | 187.5 | | | $ | 147.6 | | | $ | 636.8 | | |
| % change from prior year | 26.5 | % | | 27.2 | % | | 68.6 | % | | 10.0 | % | | 31.8 | % | |
| | | | | | | | | | |
| Three Months Ended | Twelve Months Ended | |
| August 29, 2020 | | November 28, 2020 | | February 27, 2021 | | May 29, 2021 | | May 29, 2021 | |
| Orders, as reported | $ | 109.4 | | | $ | 128.5 | | | $ | 111.2 | | | $ | 134.2 | | | $ | 483.3 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | Twelve Months Ended | |
| August 28, 2021 | | November 27, 2021 | | February 26, 2022 | | May 28, 2022 | | May 28, 2022 | |
| Retail | | | | | | | | | | |
| Orders, as reported | $ | 228.1 | | | $ | 323.7 | | | $ | 279.2 | | | $ | 276.4 | | | $ | 1,107.3 | | |
| % change from prior year | 42.5 | % | | 60.0 | % | | 41.4 | % | | 16.2 | % | | 38.8 | % | |
| Adjustments | | | | | | | | | | |
| Acquisitions | (32.2) | | | (78.8) | | | (75.9) | | | (66.0) | | | (252.9) | | |
| Currency Translation Effects | (1.8) | | | 0.1 | | | 3.7 | | | 4.3 | | | 6.4 | | |
| Orders, organic | $ | 194.1 | | | $ | 245.0 | | | $ | 207.0 | | | $ | 214.7 | | | $ | 860.8 | | |
| % change from prior year | 21.2 | % | | 21.1 | % | | 4.9 | % | | (9.7) | % | | 7.9 | % | |
| | | | | | | | | | |
| Three Months Ended | Twelve Months Ended | |
| August 29, 2020 | | November 28, 2020 | | February 27, 2021 | | May 29, 2021 | | May 29, 2021 | |
| Orders, as reported | $ | 160.1 | | | $ | 202.3 | | | $ | 197.4 | | | $ | 237.8 | | | $ | 797.6 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | Twelve Months Ended | |
| August 28, 2021 | | November 27, 2021 | | February 26, 2022 | | May 28, 2022 | | May 28, 2022 | |
| MillerKnoll, Inc. | | | | | | | | | | |
| Orders, as reported | $ | 916.5 | | | $ | 1,157.9 | | | $ | 1,095.9 | | | $ | 1,013.3 | | | $ | 4,183.5 | | |
| % change from prior year | 64.8 | % | | 83.9 | % | | 93.6 | % | | 47.0 | % | | 71.4 | % | |
| Adjustments | | | | | | | | | | |
| Acquisitions | (161.5) | | | (360.8) | | | (360.9) | | | (309.9) | | | (1,192.9) | | |
Currency Translation Effects (1) | (7.1) | | | (1.5) | | | 7.9 | | | 11.3 | | | 10.7 | | |
| Orders, organic | $ | 747.9 | | | $ | 795.6 | | | $ | 742.9 | | | $ | 714.7 | | | $ | 3,001.3 | | |
| % change from prior year | 34.5 | % | | 26.3 | % | | 31.5 | % | | 4.2 | % | | 23.2 | % | |
| | | | | | | | | | |
| Three Months Ended | Twelve Months Ended | |
| August 29, 2020 | | November 28, 2020 | | February 27, 2021 | | May 29, 2021 | | May 29, 2021 | |
| Orders, as reported | $ | 556.1 | | | $ | 629.7 | | | $ | 566.1 | | | $ | 689.4 | | | $ | 2,441.2 | | |
| Adjustments | | | | | | | | | | |
| Dealer Divestitures | — | | | — | | | (1.0) | | | (3.6) | | | (4.6) | | |
| Orders, organic | $ | 556.1 | | | $ | 629.7 | | | $ | 565.1 | | | $ | 685.8 | | | $ | 2,436.6 | | |
(1) The sum of the quarters does not equal the annual balances due to rounding associated with the calculation on an individual quarter basis.
