Earnings call transcript Q4 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. My name is Regina and I will be your conference operator today. At this time, I would like to welcome everyone to the Steelcase Fourth Quarter Fiscal 2023 Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Instructions] [Operator

may you the begin O'Meara, conference. Mr.

Mike O'Meara

Regina. us for you, XXXX results. Good fourth morning, joining for financial you Thank the fiscal everyone. quarter Thank recap our of

Chief are Vice Senior and Chief our Here Sylvester, President Sara Officer. me and Dave today President with and Executive Financial Officer, our Armbruster,

of crossed Inc. earnings a webcast webcast is and this webcast wires is accessible A call on to fourth quarter today. the conference being Our our production is Steelcase of copyrighted replay release, which posted later be yesterday, website. This will this ir.steelcase.com

financial today of and most discussion incorporating are may in our earnings details with Our text include measures into statements reference included the references of release. by GAAP statements. the regarding our to conference release, non-GAAP are to and call use risks the in associated Safe the measures we Reconciliations the this statement and forward-looking Harbor comparable forward-looking included

analysts. remarks, questions to prepared we respond our Following will investors from and

call President turn will to and Sara Officer, over Armbruster. I Chief Executive now the our

Sara Armbruster

everyone, and call our today. Mike, for joining and Thanks, thanks hi,

than quarter provided expected were in better range EPS we the fourth Our and December. as both we finished above results revenue guidance

sales. fulfilment higher and orders, benefits the combined improved pricing generate to increased Stronger rates

been We we've XXX absorbing. continue which recover pricing our improvement a gross year-over-year as inflation is our basis margin, to drive in up basis, on to points actions the continue

critical initiatives efficiencies continue our investment driving optimize our spending and to also most our shifting We processes. by in to

in our network On benefited adjustments and suppliers operations. performance the our stabilize we improvement in operational metrics supply side, of as our significant chain we saw from own their

the times. were fourth of XX% quarter, the products lead of at standard At our end

energy but moderate. EMEA in are pressures an in to prices commodities packaging, overall the and we've as plastics, side, experiencing we in levels on still inflation begin due On such the Americas and basis, seen cost aluminium some inflationary to

for of comment main on will Dave and the I'd results significantly to extraordinary employees shortly pillars revenue and in delivering XXXX our XX% the was delivering. supply and We results the inflationary fiscal to detail we're strategy pivotal the like compared delivered now Fiscal quarter's I'm Steelcase. our year cover and showed three resiliency more of tremendous We year and of second they chain commitment these results. growth as overcame challenges proud higher for a and earnings pressure XXXX. in a

profits towards XXXX, our fiscal As deliver needed overall to committed aim to investments the strategy. look improving longer We our we short-term financial to with we're balance delivering performance. supporting higher term

our few workplace core to in together. transformation business the spend the time their leaders arisen people Regarding our is initiatives one to lead of that's past strategy, years. Many want

corporations months, in and the basis the strategies nine And implement And ways. week workplace number test we've bring serve large year-over-year to structures eight last seen the an that in of a alternative imagine, in States to consistent in-office have we of months. creation grow presence. to on work Americas the predictable people of opportunity for together a notable in The emphasize want United increasingly announced larger importance the recent companies

project In rates our win strengthening addition, sequential a corporate large solid saw remained this in orders our have quarter. we and customers from

and are our mid-sized which our to The efforts, is consumers. educational institutions, pillar centered around small strategy second diversification companies of

XX% XX% In growing XX classrooms in education, business this nearly K our and Smith after a in through this leader year, XXXX. for fiscal solutions grew System providing is business

aimed who and simple needs is at serving purchasing experience. desire companies of frequently business AMQ a Our fast, small the mid-sized

XX% year. delivering growth AMQ with results this great achieved we And

global X% and Our consumer business on grew EMEA primarily by Pacific. programs the driven basis, expansion our in a of Asia

them college companies guidance or helping key their and make Steelcase or the are our a local business whether spaces. customers, small our for are insights of many a largest community decisions to So about world's asking

to continue innovation segment we for reason, serve every leading. the invest this we goal for customer in of with product So

to some and to keep ways integrate today's new people finding teams technology committed connected to solving workspace are collaborate. challenges biggest of We and help

And even by Halcon, of at partner work Elm across product and incredible bolstered now Orangebox along further leadership and the and innovating teams Steelcase's beyond is the like innovation in longstanding with segments. we're products brands and West Viccarbe, design

We're investing for new go-to-market reinventing in customers. our creating and model our experiences and

how local small or customer our to business, tailored a So we're corporate desire. look whether customers its taking with enable ways fresh they us engage digital in showroom at tools for we new help a the experiences

our expect make we momentum. I As choices will the accelerate positive experience, customer we and these to bring innovation

we our to which levels driving on higher Next, of is profitability, focus continue third pillar.

the we're and to our and incremental on committed large-scale in of larger equally operations, opportunities. footprint some as going things changes, transformation changes term remain more near we after such are improvement working While business

now. So it's reducing floor to performance pursuing factory to re-arrangement improve change space we're whether or the a to value numerous ideas improve packaging while costs flow, generate to

significant against few our our we're leading like and we ways partner goals profitability, up to This our transformation, diversifying customer on customers, sharing to saw ESG the year we expertise ambitions. our letting suppliers our progress serve I'd with better of past are segments increasing support our ESG and that our workplace market and here even while dealers. not serve, highlight focus Finally, and on we're the

materials X a and industry is level CarbonNeutral certification the Series share. innovations exploring new example product of in the and great lead launch recent the to in with being new sustainability continues BIFMA chemistry Steelcase continuously products with

that full products As also solutions. launching own our consider we and to circularity to along of greater ways and our in developing customers pass that lifecycle strive business, for the services we're our through

we're carbon expand emissions partnering addition diversity their science-based resources help and guide emissions them set to our also and own for we're suppliers carbon by as to help our tools to them targets them. operations, to their sharing with commitments they reducing owned to in with inspire in And working and dealers

the progress There recognition is we're of getting I more I that think see is who evidence could from the share, others progress too. but best

earned Most the alone, Forbes World's a Corporate score named and New a perfect year Rights a this Equality Admired Campaign's were Human Forbes we for Fortune, by Employers Employer Company on fact, we Best Best Index. Women, and for Graduates In past

everyone So fiscal proud workplace progress convinced drive improve I ahead, not look only strategy potential the the and our right profitability. what with to achieved in of about to environment lies This of our in and forward lead serve We difficult markets have XXXX. I'm as strategy of the we efforts we along we but the yielding gains we and growth am transformation, and Steelcase excited the customers a results. fiscal is XXXX at diversify

I'll to and results our outlook. XXXX Dave the review that turn So to over financial fiscal with it

David Sylvester

and some Thank you, morning, the results, color for few will I XXXX. our quarter outlook quarter Sara, the our everyone. about provide share and a about good and targets fiscal Today, fourth cover remarks first fiscal year for summary our

of quarter, results the organic to expected. than was better EMEA the driven organic XX%, million year Revenue $XXX our financial of Regarding significantly growth Americas, grew X% which compared grew by growth we while were fourth the reflected the prior and X%.

declined and earlier in The XX% China by restrictions as year impacts economic the well the of COVID-related uncertainty. the segment other in Asia broader as Pacific driven

large December in from Americas benefited anticipated stronger corporate our orders notably customers. especially from the in project related and we than Revenue business

fulfilment at quarter. the chain improvements in end In out resulted order which pushed enabled addition, of less faster being the supply patterns, orders

QX better-than-expected by revenue, the expenses due driven favourable adjusted better Americas primarily lower This estimate earnings to contributed. pricing but volume the also our partially operational better-than-expected were primarily stronger earnings. in slightly favourability offset above our Our compensation and expense, were higher Operating by due higher was variable inflation and to driven by efficiencies EMEA.

We liability continued the associated to an outperforming to $X is we with initial which actions benefit in year took charge a related million creation spending which the helped recent earn-out our value to earlier in plan. from the reduce to headcount, acquisition, offset

sale Consistent gains $X with fixed we of QX the recorded million assets. of our estimate, from

cash it capital, balance earnings sheet, we the due in lower flow in to primarily working flow relates generated to free cash by stronger-than-expected QX, strong a reduction As driven inventory. and and

cash and $XXX under million. including million increased our credit financing. we remaining quarter, related debt million At our balances to result, a million of total liquidity the end debt $XX to million, borrowings by the the $XXX $XX aircraft As of global facility of term repaid our aggregated totalled and $XX

pay the expected of our financing a Xst payoff May we aircraft on during timing combination proceeds, and facility. or credit the borrowings of by may aircraft, matures under financing this temporary the the to our off sales of expect cash The sales hand Depending on quarter. funded on the be first

on cash adjusted of end to times fourth trailing two the quarter, and than less basis quarter taking EBITDA a approximated of into debt the net debt balances. At our ratio it's our X.X times consideration fourth

the in X% in the the Americas of quarter quarter, other EMEA the posted we XX% X%. orders and grew order in year-over-year category, including a of decline in while declines X% fourth Regarding

as in of quarter XX% March. compared the The the year-over-year but trended quarter, before decline course in to Americas the over weeks decline over of the improving year-over-year first the the unfavourably comparisons three the third moderated

orders by by XX% a year. in in first grew the in March, consolidated Americas X% X% and declined prior three orders February Americas on the of Specifically, January, the December, flat were in X% versus approximately and weeks And in the basis. in

decline million, adjusted revenue outlook and year-over-year, share a $XXX $X.XX for to loss which we earnings per $X.XX share compared between Turning a prior range per $X.XX, our report year. to $XXX a report expect to to first reflect within we increase quarter, of to an moderate would expect the the in yet million be would adjusted which of

margin expected million, expenses expect addition higher an includes prior of and sale which interest tax to gains XXX expense estimating year. includes we are $XXX is of and In the revenue, between which million net $XXX non-operating of we $XX estimate the XX%. lastly earnings estimated to of of projected gross assets. basis items of approximately million Operating $X to the to million than And other approximately range points the approximately rate XX.X%, from effective fixed

are US a with opportunity demand return cautious to prior to minimum of large last As to of creation to full in project in approaching number and environment of days are their nine the requiring eight we grown corporations the we offices optimism. More fiscal employees Americas compared look the year the year months. has for their the XXXX, the in

consolidated a XX% on with a and geopolitical basis we However, the macroeconomic year beginning than the prior unstable. are overall is relatively environment the remains that backlog lower and year

for XXXX. As the we a targeting result, fiscal are following

benefits we organic decline in pricing a includes are growth, offset by which moderate revenue revenue, For projected targeting largely volume.

of As customers, is volume this expect small we to the education, decline we being lower backlog, large which driven corporate course offset by a improve expect mid-sized to and be segments year but is companies. to health decline volume, by and across beginning over relates expected the our the corporate from it of customer growth partially to

we benefits by For gross of between to compared are primarily fiscal the projected improvement and for XX.X% net targeting moderate pricing inflation. margin, with XX.X% fiscal driven XXXX, XXXX,

the estimate now we XXXX. fiscal reminder, through the cumulative benefits the a approximate we pricing from years, of As inflation the cumulative two actions our end absorbed last over

planning operating of expenses, actions and by we For a partially year the from are costs, employee second half higher in benefits implemented offset we strategic higher fiscal investments XXXX. of initiatives full the in

share Lastly, fiscal details modelling. year some I'll other XXXX for

are We to approximately million. to non-operating for net targeting items $XX

share share expenditures effective $XX tax are into to an earnings estimates Taking targeting of million. and fiscal adjusted per XX% of capital these we targeting per we estimating are to of between $X.XX million rate $XX XXXX. all consideration, between are We for $X.XX of

offices In very we largest chain significant mandate revenue as delivered earnings growth fiscal disruptions a during inflation advancing longer-term closing, our in more as and presence with hesitancy strong environment supply additional customers continued and and navigated well our Fraught strategy. corporate a their to by XXXX. while yet in we challenging

As lower remains backlog and than our fiscal year uncertainty we high. XXXX, broader beginning begin prior is relatively

return well-positioned are from and We revenue offset earnings targeted to and corporate We help believe larger investment expected our decline of believe health the segments in project drive from level we increased our mid-market for office pricing growth. to year. over tide believe our benefits volume additional deliver we across is some will the actions. education, workspaces the and large our we of However, course customers, of help and which growth the will turning customers their

From will questions. it for there, turn we over

Operator

the with Reuben first question go from The Instructions) of Our ahead. Benchmark line Please (Operator Garner Company. comes

Reuben Garner

everybody. morning, Good you. Thank

David Sylvester

Reuben. Hi,

Sara Armbruster

Good morning.

Reuben Garner

both is I the significantly was consolidated Can you I kind and that I quarter the of XX% quarter you modest the then Is versus some start give full talked product about? could kind for I than top down think maybe orders line outlook quarter, rates guess if coming you for year-over-year, to you on assumed outlook to color better the get of for those. in you beyond. of if both that the said of your could backlogs think down And recent stabilization volume FY'XX? this a just the and price with past wondering growth year that were X% order help

David Sylvester

Yeah, quarter mean that exactly to to question that I backlog last working months. for than look related are what mean, has you as on we your better of backlog outlook nine summarized. or first of our eight creation opportunity the is first connection pipeline organization its the I improved and the at projects and our sales being

our weeks not significantly, orders, but up feels project in did to it quarter three activity it show patterns from is for like and show first the starting see importantly saw order waiting in been is We've we of which our to customers. December, a and month, not not orders of improvement we order in larger more some it March, of to up corporate for start only start a bit patterns more up in a is that showing our

and question? your a game So companies at get well. ship we not start a education pace, guidance meaningfully larger will belief only corporate healthcare the will as that answer our little backlog, but will back that only continue in what's the more the embedded business not into its and bit is to first Does mid-market that our

Reuben Garner

to for actions get declines Okay. volume have place? pricing Yes. withstand what I growth, can the outlook year volume of the from versus better already ask price is to guess And full to way kind then you in you

David Sylvester

not large level benefits corporate benefits a you pricing of just pricing by our offset volume we we're I is we've will being Well, that going which share have year do customers. mean high the projected that embedded kind by I for to details. guidance. those decline, assumption into be gave driven

as have at our at your the we're to been that -- third into slow So year. as But you're were size inflation down of those to pricing and for assumptions this is that least, components. expected different down going well benefits the benefits that to own going imagine, fact on make you next be has same can year some they now they pricing are slowing the year meaning where capturing won't

Reuben Garner

those have something you're products? vision do would continue the new opportunities? that top-line -- just maybe remarks likely the about of release, wondering SG&A any can investments the would guess is talked one, long-term Is you I give the environment of then increased investments line are. as strategic Is Got or investments are expecting. for people? prepared could it. kind it of you press little to specifics on plans if And these you in or quantify Is I have, in those what what back worse than what in could, some the exactly you it making, you initiatives. was kind on if And a invest where pull you you you you

Sara Armbruster

maybe vision investments consistently strategy to talked can of talk Well, long-term about specific going and delivering those profits to about longer-term to initiatives try staying start we mean the some in continue with quantification. the then Dave balance that we've how I after. are the short-term respect with pretty with invested the I'll

the about or continue our three innovation, of of commitment product diversification our needs, support, of it's most in in things like number staying pillars. a our customers' kind really board strategy, and the business mid-market invested initiatives to our initiative helping those the terms in to our across investments across grow, spread really education solve workplace it's mean I I continued pressing talked to

at three been opportunity we to remain you what level, to forward, the drive have committed we know, to to as and strategies and committed a high So, three important strategies, to doing. those those in that's those invest important continue those we're have we

of go. where I will how describe high would money So that's level, at kind a the

David Sylvester

or more quick in think there questions in them I be of five you I asked I'll and yes, the answer the might disappointed people, is, that use are answer the in you you think didn't Yeah, my we frankly don't our as it to in and we all give answers. at we a a lever fully. strategies, is, because size profitability investing you investing four are we growth, and level, that enhancements. in our assumptions -- detailed top-line in We for are guys margin our investing will play out if gross

if at that back so our remained invested, but mean as in expectations, we planned, play out and the we not look initial that because place, the top-line had the margins fiscal we level I we prioritized didn't gross XXXX, planned. I and didn't we initially put at adjusted spend plan

it's we're the cautious the also in our that we over good tell So, a feel lever be growing months positioned feel opportunity and creation nine of year will you careful I'll -- last pretty given optimism, prior quite but use pretty is we eight again, of about. we'll where good about and

Reuben Garner

gave I and if five know to four me but check, credit, I'll I strong think year the or close them, you guys, on congrats the I don't luck. and too got good Dave. Thank of much you,

David Sylvester

Thanks.

Sara Armbruster

Thanks.

Operator

line the from ahead. comes of question go next Sidoti. Burns Please Greg with Your

Greg Burns

How COVID off some is there below operating, business pre-pandemic are now is that levels, far China, improvements big is of you and of how kind that Good restrictions? seeing morning. China their any backing

David Sylvester

businesses, China category, it's I disclosed could design we make our have we've India and size markets that people we of estimate being a idea Yeah, about and China, the and Greg, you the of two mix rough techs, the on of and target. mean most you that of other Asia think size an primary haven't based I those talked the know,

but in Region Sara Asia is importantly us across were levels and it down activity that in Head at activity our seeing looking considerably moment. pretty and we're it's general, just mock-up -- the earlier from the in the the that shared and I with So its strong had peak at of fact, a week

but feel signs getting the to too back bullish -- China. pretty of we're a including things in Asia, on we So we're -- back market coming about of be it's early recovery in seeing that early broader good some the

Greg Burns

areas you of there's and in your And amplifying some on on with like these might a been there's What you feel consolidation any acquisition? thoughts are benefit going investments from do kind Okay. scale the some of obviously organic industry. M&A, where

Sara Armbruster

think always, previously, invest in those inorganic we've for are our and keeping active might we business. both and I open said Well, remain what about opportunities be might make sense as next and of in the questions our to right pretty strategy thinking We organic in the terms eyes moves. asking what

So to as our say and forward. do I continue we we opportunities those ask at continue to would questions to we drive always look strategy

Greg Burns

Okay.

you gaps like, some you around the do is going you the changed the expectations feel toward? with gone any like going product where you're companies post-COVID, look is having do maybe to like to kind their the Lastly and what of at trying headed have understand for you do where fill to have now everything like look in look are or need evolving -- projects, office address we've to drastically, portfolio of is office conversations to feel the an through what that are COVID, offices

Sara Armbruster

the we recall product office, the was We the question pandemic, where so moves the the mean, need the help we I Yeah, would to over of to stayed that years support Halcon we we're made research We the during a about going choice successful. that positioned. so to in explicit remain to pandemic. to we good very of what development. understand really past the invested be felt feel you're you'll like couple committed to of did throughout portfolio made be asking acquisition better I ton

he's required in recently was the the because Eddy and many these bringing were of really right East week I there this of and out Coast. not Europe West companies of hear be energy, in it's what And to to terms Americas, He He's about calling actually was wish week. now, right successful. Head he their interesting them he's that I him the we're seeing last next and here in our out say, reflect large on but now, on to what's been would and what's for are organizations spaces on Coast thinking Schmitt,

recent and terrific more things really continued are those the sure several for privacy also spaces. create key workplace, for for in then among of have investment desire And out that come within individuals two conversations social privacy and to options the

done So back and together of in are creating of for a social well lot over informal spaces more developed those office development, in and draw we've the give of as for privacy allow to well us to collaboration as own a couple people as think product portfolio through social to to kinds the within on office we've a to people kind us having come think both different and ways come that years, the work the of to opportunity spaces, both fronts, I as competitive our I acquisitions past pretty be partnerships successful. a

Greg Burns

you. thank Great,

David Sylvester

Thanks, Greg.

Operator

next the of Ramsey Thompson go from Research Group. comes Your question Please Steven ahead. with line

Steven Ramsey

Hi, good morning.

in quarter, volumes decline that the health the through verticals period the fourth corporate the are and education, volumes volumes time being markets backlog but the non-corporate you to year? and expect and for better SMB On have March better, that context lower throughout better driver, order do

David Sylvester

sure first of order you quite first question to the related I the were orders quarter's getting was what The patterns. part recent wasn't more or at. your weeks, three

Steven Ramsey

I'm in I'm a prior asking months? driver verticals the corporate but what Sure, volumes non-corporate through guessing, positive volumes lower clearly is were the

David Sylvester

we and that half. specifically that, of on and large through expect months, year, going the -- course improve the of the corporate last from backlog in over know we activity starting course we a company the at Large into drag is volume continue is be will first few -- fairly has expect consistent but the it a I but year year. least next low been over non-large have corporate the from sure seeing growth the to Not verticals will

Steven Ramsey

kind guide FY'XX of guidance? the second That the that. my that on helpful. mix behind part the the across gets the top-line you board? to better ultimately next okay, Do with showing volumes of XXXX Is demand trends is the question driving think sales assumption Okay, half of

David Sylvester

that's Yeah, right.

Steven Ramsey

And this flowing for pricing or FY'XX, in on helpful. actions carryover okay, is more assumed? on the prior then does Okay, through that actions front that pricing mean being incremental

David Sylvester

It's actions through. prior flowing

Steven Ramsey

helpful. Okay, for And then one last me.

call levels, more on how that long-term last the addressable thinking potentially office as for America do a pre-COVID being you your space, positive are think market commentary talked pretty You their that North long-term about -- to on the about total changes office reduced on this is call do viewpoint? people

David Sylvester

wish it I did.

we're I it's that. Large I hole. in been side-line to on a years big but to pretty and think didn't call declined. of part any it zero, it go obviously substantially too corporate three three the in for better early change largely -- has mean,

that companies couple and the is So than more information and over back. think comes be transformation of I settles to on wait next Once said overall reinvention but office the due happens, see company the -- spend of after don't of workspaces. that not and have large we relative their quarter. days any of spend have under amount the industry still office years, in people the the all likely down how that the say some to what this we'll large We new last hybrid what to pressure number

the estate some to large large trips two has -- ago. ago our travels information of Eddy same on his of consolidation or about shared years see go click and amount double that his corporate, from you real heard company that from dialog we year trip a the don't you If hear

not not happening was is dialog which or needs more into was the to that video, the it's ago but is, more about, industry to speak, that don't it's answer is people all, office happen be distributed now and work more to employees forever. to change from short going dialog dialog, for talking about what work, more living effectively offices the inside mean of that the manage help the won't at we longer-term We're them everybody up the not just if stay. to so have hybrid XX and to get update office back the say I foreseeable here significantly, the we what to to to driving what seems said on aren't to handle trends. days And set an have but about much future so

Steven Ramsey

very helpful, thank you. That's all

David Sylvester

Thanks, Steven.

Operator

Instructions) Rex Your Henderson next line ahead. from comes Please (Operator Water of Tower the Research. question with go

Rex Henderson

Good and quarter. morning a on congratulations fine

David Sylvester

Thanks, Rex.

Sara Armbruster

Thanks.

Rex Henderson

if you of beat wanted to Can a press comment -- Can that flow lower comment you that that better that which year, large draw -- and to is continues all? next or you at they and mentioned due for about orders sustainable your on corporate. kind that is how I made made in those you you your the projects guidance me increased orders how -- this was little wisdom are a not, bit corporations doing Sara, project you and tell release, the what through from attention corporate -- made, also you've that part that's about and to reconcile to mid-market kind the How on know for a were? large of big quarter customers. it's common more these for days of

Sara Armbruster

Yeah, comments. can some maybe the I give on color

say, I large corporations things the think in, I'll projects. is significant recently more we've that seen investment one of from

pilots So quarters in some into moved them scale. of small have and about been we've of and many customers previous larger talked had conversation interested discussion in or our how

where we've space more new least think true new a building energy, I us tests and to they're types into move because more making bigger of projects, scale to interest, kind or for of recently just it at some customers, more bigger. those of but an investments customers actual to revenue higher renovate generates more entire and location obviously say of I'll are idea, tie seen action orders that the

the make evidence I their to starting projects corporate that thinking and have highlighting, experimenting strategy. who bigger to future some commitments So, more think and and is to reference seeing large workplace talking we're more been customers and

Rex Henderson

ahead. Go [indiscernible]. that is And

David Sylvester

just the future, being to was in ordered of is, about remarks. what a big bit, is higher it's Collaboration the or a are deal. architectural now. add scripted her of Sara at I open some also under applications. walls going mean I where right talking the the privacy product a looked is the Well like demand that's really privacy specifics was deal, in emphasizing or big little In privacy private plan, office

So just sub-standard to change. speaks it more

are when transparency, office. full have like back that that employees summarized. more orders But up come that. or Now, their The thought the just large themes Sara also we freshening common being the clients chairs are what are for new some about something want

the great are is collaboration offices couple deal, the our it's going years the industry deal as mean people and for change be and the next going as on more have back of the Privacy and going they're to I is video, with us collaboration and for to to to industry. facilitate significantly and change think need clients big what to living in office in privacy, good which for -- that's

Rex Henderson

And contributing three have Is this order sort that? to March activity of weeks levels you the improving. first mentioned been that of

David Sylvester

Yes.

Rex Henderson

over Could expecting this right. corporation the for All Is Okay. year. a coming large change kind it the of activity -- year? that still outlook lower you're orders

David Sylvester

we projecting clarify company. weren't Well, large projecting company. from revenue We're orders from large as maybe

[indiscernible]. So

Rex Henderson

based that's And the right. All Okay. at moment, Okay. backlog on right?

David Sylvester

is corporate start in so it exactly, will it engine to we restart. Yeah, low get take really going restarted a while backlog to and fact more for with that significantly if large a

Rex Henderson

how to you've has to you it other And and into to paid what you're Asia, do idea expect for any bit already to mentioned the orders how activity and long but I China through a little been and long turn that activity, a right. takes that that's want sales challenge, -- how All -- some seeing in been year? had Okay. bump convert secondly --

David Sylvester

don't in I posted not that closely today No, I leadership we guess Pacific project I see that category the in working results our the Asia were we can mean, we're prepared money region. that. very with you I'm mean, from that -- I team. publicly losing to other

at days, the our and environment days. carefully are So next XX looking very for demand XXX expectations the we're what

outlook of the also the our in significantly, we're keen significant longer-term of near-term any either. be is kind don't money suggest significant for region. that in way not strategy needs mid-term, -- pretty kind think of a losing feel adjusted things We We about like good about to would have amount the changed but

Rex Henderson

right. All

call Okay. and congratulations. Thanks taking my for again

David Sylvester

Rex. Thanks,

Sara Armbruster

Thanks.

Operator

back There at you. time. Armbruster, questions are call the no this turn I Ms. further over to

Sara Armbruster

several just York to will our Great. invite webcast. like along members you Well review leadership to we Day our our I in longer-term May want planned Xth and and also there thank of you us for to our Investor strategy also I'd with joining for City, New join discuss team to be I'll on which all targets.

focus forward So interest driving Have great we appreciate you we results. look as seeing in improved your to we on continue to Steelcase and day. a

Operator

conference This concludes call. today's

now You disconnect. may

Steelcase (SCS) 23 Mar 232023 Q4 Earnings call transcript