Exhibit 99.1
STEELCASE REPORTS PROFITABLE GROWTH FOR FOURTH QUARTER
- FISCAL YEAR 2007 NET INCOME MORE THAN DOUBLES TO $107 MILLION -
GRAND RAPIDS, Mich., March 29 /PRNewswire-FirstCall/ -- Steelcase Inc.
(NYSE: SCS) today announced fourth quarter and fiscal year 2007 financial
results. Steelcase reported fourth quarter revenue of $779.0 million and net
income of $29.3 million or $0.20 per share. For fiscal year 2007, revenue grew
to $3.1 billion and net income more than doubled to $106.9 million or $0.72 per
share.
"We improved business performance, both financially and with our customers,"
said James P. Hackett, president and CEO. "As our performance indicates, we are
focused on giving customers what they value and leveraging our global network,
while continuing our work to achieve world class process excellence."
Fourth Quarter Results
Reported revenue of $779.0 million for the fourth quarter increased 5.4
percent compared to $739.3 million in the prior year quarter, in line with
company estimates. The International segment reported 17% growth over the prior
year. Current year revenues benefited by $15.9 million from currency effects and
included $10.0 million from net acquisitions, compared with the prior year.
Net income increased significantly to $29.3 million, or $0.20 per share for
the fourth quarter of fiscal 2007 ahead of company estimates of $0.14 to $0.19
per share.
Significant improvements in the International segment, along with positive
audit outcomes and implementation of tax planning strategies resulted in
favorable adjustments to tax reserves and deferred tax asset valuation
allowances totaling $24.8 million in the fourth quarter. In addition, the
company recorded intangible asset and goodwill impairment charges totaling
$(7.7) million after-tax. These adjustments, combined with related variable
compensation expense of $(6.3) million after-tax, had the net effect of
increasing net income by $10.8 million.
Reported results also included net restructuring charges of $(6.1) million
after-tax primarily related to facility rationalizations in the company's North
America segment. Restructuring costs were higher than anticipated due to
additional charges recognized in connection with the completion of the sale of
the company's Grand Rapids manufacturing campus. Net restructuring charges were
$(7.1) million after-tax in the prior year quarter.
Cost of sales was reduced to 68.7 percent of sales, a 160 basis point
decrease compared to the prior year. Improvements in both the International and
North America segments were the key drivers. These improvements, in addition to
lower restructuring charges, increased gross margin to 30.4 percent in the
fourth quarter from 28.2 percent in the prior year quarter.
Operating expenses increased to $231.9 million or 29.7 percent of sales from
$199.3 million or 26.9 percent of sales in the prior year. Reported expenses
included $11.7 million of non-cash intangible asset and goodwill impairment
charges. Higher variable compensation costs, spending on longer-term growth
initiatives, currency effects and net acquisitions also contributed to the
increase.
Other income, net was $3.9 million compared to $7.5 million reported last
year. The decrease was driven by withholding taxes resulting from the
repatriation of cash from a foreign subsidiary.
Fiscal Year 2007 Results
Revenue for the fiscal year of $3.1 billion increased 8.0 percent compared
to $2.9 billion last year. Fiscal 2007 revenue included $33.2 million from net
acquisitions and $25.8 million from favorable currency effects, compared with
the prior year.
Reported net income more than doubled to $106.9 million or $0.72 per share.
Net income in fiscal 2006 was $48.9 million, or $0.33 per share. Restructuring
charges in fiscal 2007 totaled $(15.6) million after-tax versus $(24.9) million
in fiscal 2006.
Operating income of $113.7 million compared with $82.5 million in the prior
year. Operating income included $(23.7) million of restructuring charges in the
current year compared to $(38.9) million of charges in the prior year. Operating
income excluding restructuring charges was $137.4 million versus $121.4 million
in the prior year.
As a result of the tax valuation and reserve adjustments made in the fourth
quarter, the company's full year effective tax rate was 14.2%, significantly
lower than the previous estimate of 34% to 35%. The company believes its fiscal
2008 effective tax rate will be between 34% and 35%.
Cash and short-term investments increased $136.5 million to $560.3 million
at the end of fiscal 2007. Total debt at the end of the fiscal year was $255.1
million resulting in cash and short term investments exceeding total debt by
$305.2 million. As part of its share repurchase authorizations, the company
repurchased approximately 4.4 million shares at a total cost of $76.1 million in
fiscal 2007.
As announced on March 23, 2007, the Steelcase Board of Directors declared a
dividend of $0.15 per share payable to shareholders of record as of April 3,
2007. This represents an increase of 15 percent from $0.13 per share paid in the
prior quarter and an increase of 50 percent from $0.10 per share paid in the
prior year.
"We were particularly pleased with the strong improvement in quarterly
results achieved again by our International segment and the significant
year-over-year improvement in our net income," said David Sylvester, vice
president and CFO. "Our continued focus on the strategic aspects of our business
should afford us room for additional operating margin expansion in fiscal 2008."
Outlook
Based on recent strengthening in order patterns, the company expects first
quarter fiscal 2008 revenue to be 6% to 10% percent higher than the prior year
quarter with growth more balanced across its business segments.
Steelcase expects to report earnings for the first quarter of fiscal 2008
between $0.15 and $0.20 per share, including restructuring charges of $(2) to
$(4) million after-tax. These estimates reflect increased spending on
longer-term growth initiatives. The company reported earnings of $0.12 per share
in the first quarter of the prior year, including after-tax restructuring
charges of $(2.7) million.
Consistent with past practices, the company is not providing full year
guidance but does expect to continue its improvements in profitability towards
the achievement of its long-term operating income margin of 10%.
Mr. Hackett concluded, "Our mission to provide a better work experience for
our customers and dealers remains central to our strategies. This strategic
focus is keeping our core businesses healthy and growing. It has also allowed us
to build our capability to win with smaller customers and sharpened our
concentration on new and emerging markets."
Business Segment Results
(in millions)
Fourth Quarter Year-To-Date
Three Months Ended Twelve Months Ended
---------------------------- ----------------------------
Feb. 23, Feb. 24, Feb. 23, Feb. 24,
2007 2006 %Inc. 2007 2006 %Inc.
------------ ------------ ------------ ------------ ------------ ------------
Revenue
North America (1) $ 417.2 $ 413.7 0.8% 1,723.0 1,628.0 5.8%
International (2) 209.8 179.3 17.0% 735.8 644.5 14.2%
Steelcase Design
Partnership(3) 89.8 85.3 5.3% 359.9 340.8 5.6%
Other (4) 62.2 61.0 2.0% 279.3 255.6 9.3%
------------ ------------ ------------ ------------ ------------
Consolidated Revenue $ 779.0 $ 739.3 5.4% 3,098.0 2,868.9 8.0%
============ ============ ============ ============
Operating Income
North America $ 2.5 $ 10.5 $ 82.1 $ 64.6
International 14.2 (1.2) 34.2 (1.3)
Steelcase Design
Partnership 8.4 8.7 33.4 34.9
Other (22.3) (8.7) (36.0) (15.7)
------------ ------------ ------------ ------------
Consolidated
Operating Income $ 2.8 $ 9.3 $ 113.7 $ 82.5
============ ============ ============ ============
Operating Income Percent 0.4% 1.3% 3.7% 2.9%
Business Segment Footnotes
(1) North America business segment includes the company's Steelcase and
Turnstone brands, consolidated dealers in the U.S. and Canada, and
services.
(2) International business segment includes all manufacturing and sales
operations outside the U.S. and Canada.
(3) Steelcase Design Partnership business segment includes Brayton, The
Designtex Group, Details, Metro and Vecta.
(4) Other includes Steelcase Financial Services, PolyVision, IDEO subsidiaries,
other ventures and unallocated corporate expenses.
Steelcase Inc.
Three Months Ended
----------------------------------------------------------
February 23, 2007 February 24, 2006
--------------------------- ---------------------------
Revenue $ 779.0 100.0% $ 739.3 100.0%
Cost of sales 535.0 68.7 519.6 70.3
Restructuring costs 7.2 0.9 11.0 1.5
------------ ------------ ------------ ------------
Gross margin 236.8 30.4 208.7 28.2
Operating expenses 231.9 29.7 199.3 26.9
Restructuring costs 2.1 0.3 0.1 0.0
------------ ------------ ------------ ------------
Operating income $ 2.8 0.4% $ 9.3 1.3%
============ ============ ============ ============
Gross Margin, as reported $ 236.8 30.4% $ 208.7 28.2%
Restructuring Charges 7.2 0.9 11.0 1.5
------------ ------------ ------------ ------------
Gross Margin, excluding
restructuring charges $ 244.0 31.3% $ 219.7 29.7%
============ ============ ============ ============
Operating Income, as reported $ 2.8 0.4% $ 9.3 1.3%
Restructuring Charges 9.3 1.2 11.1 1.5
------------ ------------ ------------ ------------
Operating Income, excluding
restructuring charges $ 12.1 1.6% $ 20.4 2.8%
============ ============ ============ ============
Twelve Months Ended
----------------------------------------------------------
February 23, 2007 February 24, 2006
--------------------------- ---------------------------
Revenue $ 3,098.0 100.0% $ 2,868.9 100.0%
Cost of sales 2,128.2 68.7 1,989.4 69.3
Restructuring costs 21.3 0.7 33.2 1.2
------------ ------------ ------------ ------------
Gross margin 948.5 30.6 846.3 29.5
Operating expenses 832.4 26.8 758.1 26.4
Restructuring costs 2.4 0.1 5.7 0.2
------------ ------------ ------------ ------------
Operating income $ 113.7 3.7% $ 82.5 2.9%
============ ============ ============ ============
Gross Margin, as reported $ 948.5 30.6% $ 846.3 29.5%
Restructuring Charges 21.3 0.7 33.2 1.2
------------ ------------ ------------ ------------
Gross Margin, excluding
restructuring charges $ 969.8 31.3% $ 879.5 30.7%
============ ============ ============ ============
Operating Income, as reported $ 113.7 3.7% $ 82.5 2.9%
Restructuring Charges 23.7 0.8 38.9 1.4
------------ ------------ ------------ ------------
Operating Income, excluding
restructuring charges $ 137.4 4.5% $ 121.4 4.3%
============ ============ ============ ============
North America
Three Months Ended
----------------------------------------------------------
February 23, 2007 February 24, 2006
--------------------------- ---------------------------
Revenue $ 417.2 100.0% $ 413.7 100.0%
Cost of sales 296.1 71.0 303.8 73.4
Restructuring costs 7.7 1.8 7.7 1.9
------------ ------------ ------------ ------------
Gross margin 113.4 27.2 102.2 24.7
Operating expenses 109.2 26.2 91.7 22.2
Restructuring costs 1.7 0.4 - -
------------ ------------ ------------ ------------
Operating income $ 2.5 0.6% $ 10.5 2.5%
============ ============ ============ ============
Gross Margin, as reported $ 113.4 27.2% $ 102.2 24.7%
Restructuring Charges 7.7 1.8 7.7 1.9
------------ ------------ ------------ ------------
Gross Margin, excluding
restructuring charges $ 121.1 29.0% $ 109.9 26.6%
============ ============ ============ ============
Operating Income, as reported $ 2.5 0.6% $ 10.5 2.5%
Restructuring Charges 9.4 2.2 7.7 1.9
------------ ------------ ------------ ------------
Operating Income, excluding
restructuring charges $ 11.9 2.8% $ 18.2 4.4%
============ ============ ============ ============
Twelve Months Ended
----------------------------------------------------------
February 23, 2007 February 24, 2006
--------------------------- ---------------------------
Revenue $ 1,723.0 100.0% $ 1,628.0 100.0%
Cost of sales 1,222.6 70.9 1,177.7 72.3
Restructuring costs 18.5 1.1 22.6 1.4
------------ ------------ ------------ ------------
Gross margin 481.9 28.0 427.7 26.3
Operating expenses 398.1 23.1 363.1 22.3
Restructuring costs 1.7 0.1 - -
------------ ------------ ------------ ------------
Operating income $ 82.1 4.8% $ 64.6 4.0%
============ ============ ============ ============
Gross Margin, as reported $ 481.9 28.0% $ 427.7 26.3%
Restructuring Charges 18.5 1.1 22.6 1.4
------------ ------------ ------------ ------------
Gross Margin, excluding
restructuring charges $ 500.4 29.1% $ 450.3 27.7%
============ ============ ============ ============
Operating Income, as reported $ 82.1 4.8% $ 64.6 4.0%
Restructuring Charges 20.2 1.2 22.6 1.4
------------ ------------ ------------ ------------
Operating Income, excluding
restructuring charges $ 102.3 6.0% $ 87.2 5.4%
============ ============ ============ ============
International
Three Months Ended
----------------------------------------------------------
February 23, 2007 February 24, 2006
--------------------------- ---------------------------
Revenue $ 209.8 100.0% $ 179.3 100.0%
Cost of sales 138.0 65.7 122.8 68.5
Restructuring costs (0.5) (0.2) 3.3 1.8
------------ ------------ ------------ ------------
Gross margin 72.3 34.5 53.2 29.7
Operating expenses 58.1 27.7 54.5 30.4
Restructuring costs - - (0.1) 0.0
------------ ------------ ------------ ------------
Operating income (loss) $ 14.2 6.8% $ (1.2) (0.7)%
============ ============ ============ ============
Gross Margin, as reported $ 72.3 34.5% $ 53.2 29.7%
Restructuring Charges (0.5) (0.2) 3.3 1.8
------------ ------------ ------------ ------------
Gross Margin, excluding
restructuring charges $ 71.8 34.3% $ 56.5 31.5%
============ ============ ============ ============
Operating Income (Loss),
as reported $ 14.2 6.8% $ (1.2) (0.7)%
Restructuring Charges (0.5) (0.2) 3.2 1.8
------------ ------------ ------------ ------------
Operating Income, excluding
restructuring charges $ 13.7 6.6% $ 2.0 1.1%
============ ============ ============ ============
Twelve Months Ended
----------------------------------------------------------
February 23, 2007 February 24, 2006
--------------------------- ---------------------------
Revenue $ 735.8 100.0% $ 644.5 100.0%
Cost of sales 490.0 66.6 442.8 68.7
Restructuring costs 2.8 0.4 8.6 1.3
------------ ------------ ------------ ------------
Gross margin 243.0 33.0 193.1 30.0
Operating expenses 208.7 28.4 188.7 29.3
Restructuring costs 0.1 0.0 5.7 0.9
------------ ------------ ------------ ------------
Operating income (loss) $ 34.2 4.6% $ (1.3) (0.2)%
============ ============ ============ ============
Gross Margin, as reported $ 243.0 33.0% $ 193.1 30.0%
Restructuring Charges 2.8 0.4 8.6 1.3
------------ ------------ ------------ ------------
Gross Margin, excluding
restructuring charges $ 245.8 33.4% $ 201.7 31.3%
============ ============ ============ ============
Operating Income (Loss),
as reported $ 34.2 4.6% $ (1.3) (0.2)%
Restructuring Charges 2.9 0.4 14.3 2.1
------------ ------------ ------------ ------------
Operating Income, excluding
restructuring charges $ 37.1 5.0% $ 13.0 1.9%
============ ============ ============ ============
Steelcase Design Partnership
Three Months Ended
----------------------------------------------------------
February 23, 2007 February 24, 2006
--------------------------- ---------------------------
Revenue $ 89.8 100.0% $ 85.3 100.0%
Cost of sales 57.6 64.1 54.1 63.4
------------ ------------ ------------ ------------
Gross margin 32.2 35.9 31.2 36.6
Operating expenses 23.8 26.5 22.5 26.4
Restructuring charges - 0.0 - -
------------ ------------ ------------ ------------
Operating income $ 8.4 9.4% $ 8.7 10.2%
============ ============ ============ ============
Gross Margin, as reported $ 32.2 35.9% $ 31.2 36.6%
Restructuring Charges - 0.0 - 0.0
------------ ------------ ------------ ------------
Gross Margin, excluding
restructuring charges $ 32.2 35.9% $ 31.2 36.6%
============ ============ ============ ============
Operating Income, as reported $ 8.4 9.4% $ 8.7 10.2%
Restructuring Charges - 0.0 - -
------------ ------------ ------------ ------------
Operating Income, excluding
restructuring charges $ 8.4 9.4% $ 8.7 10.2%
============ ============ ============ ============
Twelve Months Ended
----------------------------------------------------------
February 23, 2007 February 24, 2006
--------------------------- ---------------------------
Revenue $ 359.9 100.0% $ 340.8 100.0%
Cost of sales 229.4 63.7 212.0 62.2
------------ ------------ ------------ ------------
Gross margin 130.5 36.3 128.8 37.8
Operating expenses 96.9 26.9 93.9 27.6
Restructuring charges 0.2 0.1 - -
------------ ------------ ------------ ------------
Operating income $ 33.4 9.3% $ 34.9 10.2%
============ ============ ============ ============
Gross Margin, as reported $ 130.5 36.3% $ 128.8 37.8%
Restructuring Charges - 0.0 - -
------------ ------------ ------------ ------------
Gross Margin, excluding
restructuring charges $ 130.5 36.3% $ 128.8 37.8%
============ ============ ============ ============
Operating Income, as reported $ 33.4 9.3% $ 34.9 10.2%
Restructuring Charges 0.2 0.1 - -
------------ ------------ ------------ ------------
Operating Income, excluding
restructuring charges $ 33.6 9.4% $ 34.9 10.2%
============ ============ ============ ============
Webcast
Steelcase will discuss fourth quarter and fiscal 2007 results and business
outlook on a conference call and webcast at 11:00 a.m. EDT today. Links to the
webcast are available at www.steelcase.com/ir. Supporting presentation slides
will be available on the company's website shortly before the start of the
webcast.
Non-GAAP Financial Measures
This earnings release contains certain non-GAAP financial measures. A
"non-GAAP financial measure" is defined as a numerical measure of a company's
financial performance that excludes or includes amounts so as to be different
than the most directly comparable measure calculated and presented in accordance
with GAAP in the statement of income, balance sheet or statement of cash flows
of the company. Pursuant to the requirements of Regulation G, the company has
provided a reconciliation above of non-GAAP financial measures to the most
directly comparable GAAP financial measure.
The non-GAAP financial measures used within the company's earnings release
are: fourth quarter and fiscal year gross margin, excluding restructuring
charges for the current and prior year in dollars and as a percentage of revenue
and fourth quarter and fiscal year operating income, excluding restructuring
charges, for the current and prior year in dollars and as a percentage of
revenue, on a consolidated basis and for each business segment. These measures
are presented because management uses this information to monitor and evaluate
financial results and trends. Therefore, management believes this information is
also useful for investors.
Forward-looking Statements
From time to time, in written and oral statements, the company discusses its
expectations regarding future events and its plans and objectives for future
operations. These forward-looking statements generally are accompanied by words
such as "anticipate," "believe," "could," "estimate," "expect," "forecast,"
"intend," "may," "possible," "potential," "predict," "project," or other similar
words, phrases or expressions. Forward-looking statements involve a number of
risks and uncertainties that could cause actual results to vary from the
company's expectations because of factors such as, but not limited to,
competitive and general economic conditions domestically and internationally;
acts of terrorism, war, governmental action, natural disasters and other Force
Majeure events; changes in the legal and regulatory environment; restructuring
activities; currency fluctuations; changes in customer demands; and the other
risks and contingencies detailed in the company's most recent Annual Report on
Form 10-K and its other filings with the Securities and Exchange Commission.
Steelcase undertakes no obligation to update, amend, or clarify forward-looking
statements, whether as a result of new information, future events, or otherwise.
About Steelcase Inc.
Steelcase, the global leader in the office furniture industry, helps people
have a better work experience by providing products, services and insights into
the ways people work. The company designs and manufactures architecture,
furniture and technology products. Founded in 1912 and headquartered in Grand
Rapids, Michigan, Steelcase (NYSE: SCS) serves customers through a network of
more than 800 independent dealers and approximately 13,000 employees worldwide.
Fiscal 2007 revenue was $3.1 billion. Learn more at www.steelcase.com.
STEELCASE INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(in millions, except per share data)
Three Months Twelve Months
Ended Ended
----------------------- -----------------------
February February February February
23, 24, 23, 24,
---------- ---------- ---------- ----------
2007 2006 2007 2006
---------- ---------- ---------- ----------
Revenue $ 779.0 $ 739.3 $ 3,098.0 $ 2,868.9
Cost of sales 535.0 519.6 2,128.2 1,989.4
Restructuring costs 7.2 11.0 21.3 33.2
---------- ---------- ---------- ----------
Gross margin 236.8 208.7 948.5 846.3
Operating expenses 231.9 199.3 832.4 758.1
Restructuring costs 2.1 0.1 2.4 5.7
---------- ---------- ---------- ----------
Operating income 2.8 9.3 113.7 82.5
Interest expense (4.2) (4.3) (18.5) (18.1)
Other income, net 3.9 7.5 29.4 12.0
---------- ---------- ---------- ----------
Income before income taxes 2.5 12.5 124.6 76.4
Income tax expense (benefit) (26.8) 3.2 17.7 27.5
---------- ---------- ---------- ----------
Net income $ 29.3 $ 9.3 $ 106.9 $ 48.9
========== ========== ========== ==========
Basic and diluted per share data:
Basic earnings per share $ 0.20 $ 0.06 $ 0.72 $ 0.33
========== ========== ========== ==========
Diluted earnings per share $ 0.20 $ 0.06 $ 0.71 $ 0.33
========== ========== ========== ==========
Dividends declared per common
share $ 0.13 $ 0.09 $ 0.45 $ 0.33
========== ========== ========== ==========
Weighted average shares
outstanding - basic 147.1 148.5 148.5 148.3
========== ========== ========== ==========
Weighted average shares
outstanding - diluted 148.6 149.1 149.8 148.7
========== ========== ========== ==========
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
Feb. 23, Feb. 24,
---------- ----------
2007 2006
---------- ----------
ASSETS
Current assets:
Cash and cash equivalents $ 527.2 $ 423.8
Short-term investments 33.1 -
Accounts receivable, net 352.6 366.3
Inventories 144.0 147.9
Deferred income taxes 60.8 80.3
Other current assets 111.9 109.8
---------- ----------
Total current assets 1,229.6 1,128.1
---------- ----------
Property and equipment, net 477.1 524.8
Company owned life insurance 209.2 196.6
Deferred income taxes 153.1 154.6
Goodwill 213.4 211.1
Other intangible assets, net of accumulated
amortization 64.6 73.7
Other assets 53.7 55.6
---------- ----------
Total assets $ 2,400.7 $ 2,344.5
---------- ----------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 222.0 $ 189.6
Short-term borrowings and current
portion of long-term debt 5.1 261.8
Accrued expenses:
Employee compensation 162.7 127.9
Employee benefit plan obligations 34.2 34.1
Other 220.1 222.8
---------- ----------
Total current liabilities 644.1 836.2
========== ==========
Long-term liabilities:
Long-term debt less current maturities 250.0 2.2
Employee benefit plan obligations 189.6 239.7
Other long-term liabilities 78.3 61.5
---------- ----------
Total long-term liabilities 517.9 303.4
---------- ----------
Total liabilities 1,162.0 1,139.6
---------- ----------
Shareholders' equity:
Common stock 259.1 309.9
Additional paid in capital 6.6 3.4
Accumulated other comprehensive loss (0.5) (39.1)
Deferred compensation - restricted stock - (3.1)
Retained earnings 973.5 933.8
---------- ----------
Total shareholders' equity 1,238.7 1,204.9
---------- ----------
Total liabilities and shareholders'
equity $ 2,400.7 $ 2,344.5
========== ==========
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(in millions)
Twelve Months Ended
-----------------------
Feb. 23, Feb. 24,
2007 2006
---------- ----------
(Unaudited)
OPERATING ACTIVITIES
Net income $ 106.9 $ 48.9
Depreciation and amortization 101.4 119.4
Goodwill and intangible asset impairment charges 11.7 -
Deferred income taxes 31.5 0.2
Changes in operating assets and liabilities,
net of corporate acquisitions 22.0 (8.9)
Excess tax benefit from exercise of stock options
and vesting of restricted stock (3.9) -
Other, net 10.7 15.9
---------- ----------
Net cash provided by operating activities 280.3 175.5
---------- ----------
INVESTING ACTIVITIES
Capital expenditures (58.2) (71.9)
Short-term investments, acquisitions (33.1) -
Short-term investments, liquidations - 131.6
Proceeds from the disposal of fixed assets 18.9 39.3
Net decrease in notes receivable 17.6 15.3
Acquisitions, net of cash acquired (9.9) (8.6)
Net proceeds from repayment of leases 9.8 17.7
Other, net 3.2 4.3
---------- ----------
Net cash (used in) provided by investing
activities (51.7) 127.7
---------- ----------
FINANCING ACTIVITIES
Issuance of long-term debt, net 257.4 -
Repayments of long-term debt (260.3) (58.9)
Repayments of lines of credit, net (6.9) (2.3)
Common stock repurchases (77.3) (3.4)
Dividends paid (67.2) (49.2)
Common stock issuances 23.3 12.2
Excess tax benefit from exercise of stock
options and vesting of restricted stock 3.9 -
---------- ----------
Net cash used in financing activities (127.1) (101.6)
---------- ----------
Effect of exchange rate changes on cash
and cash equivalents 1.9 5.6
---------- ----------
Net increase in cash and cash equivalents 103.4 207.2
Cash and cash equivalents, beginning of period 423.8 216.6
---------- ----------
Cash and cash equivalents, end of period $ 527.2 $ 423.8
========== ==========
SOURCE Steelcase Inc.
-0- 03/29/2007
/CONTACT: Media, Jeanine Holquist, Public Relations, +1-616-698-3765, or
Investors, Raj Mehan, Investor Relations, +1-616-698-4734, both for
Steelcase Inc. /
/First Call Analyst: /
/FCMN Contact: tferris@steelcase.com /
/Web site: http://www.steelcase.com/