SCS - Earnings call transcript Q4 2024

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Operator

Good morning. My name is Dennis, and I will be your conference operator today. At this time, I would like to welcome everyone to the Steelcase Fourth Quarter Fiscal 2024 Conference Call. [Operator Instructions]Mr. O'Meara, you may begin your conference.

Mike O'Meara

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

of today comparable text be later and will in release.Following conference A and Senior yesterday, and our President and will copyrighted is call Here forward-looking Chief by earnings release, production we are forward-looking our details measures This Financial me this statements are discussion on Officer, the a harbor our quarter Armbruster, and Sara risks remarks, replay we this with include conference wires reference in I non-GAAP crossed over into President Officer.Our Executive is fourth Officer; President use analysts. of statements. to the our Dave regarding call Vice now our earnings references accessible our are of ir.steelcase.com prepared which Reconciliations questions this and financial is Sylvester, webcast posted and Chief Sara webcast and today may measures will Armbruster. included being included most today.Our Steelcase Inc. incorporating to our webcast, to Chief of safe release, Executive investors and GAAP associated to call the the turn to the with the respond statement from the website.

Sara Armbruster

joining call today. the for thanks and everyone, Hi, Mike. Thanks,

of on margin make XXX by seventh quarter growth, profit year-over-year quarter results our to of margin we progress initiatives. our gross improvement. marking basis improvement fourth This Our reflect gross the earnings is year-over-year strong improvement consecutive continued points, progress evidenced as

engage price we million our share in by invest competitiveness, our this, while continue year, the reached stayed thinking to earnings we deliver share in grew Day year, quarter, in offset We've believe when customer improvements we've teams individuals were it corporate our happen." will on the spaces, details providing fiscal and Investor to we the shines. strengthening. We're Orangebox that share in global aimed the significant per by Business our expand half Beyond with and International products in more research These adjusted International knows collaborate, the costs full our performance over segment that teams strengthening as increased across for at And fitness again new launches of the In includes this overall for these investment and quarter. help and about a this providing new proud client Plus our our to capabilities Dave was advice, increase anecdote. also upright turning optimizing our the to value EMEA, growth our system lead and option must segment And and which a point retain new combination It and this initiatives. portfolio workgroups. new the the seating give of price continue market believe spaces our months quarter. segment. I'll Business that and where fiscal planning. our XX the increased build a of Smith is is AMQ, Similar our us of Personality as attract education strategy, inflationary was Desk covers as the quick at with and places pleased ergonomic continue United renovation the Asia spaces and the year, larger and by led simple seating. versus for our transformation customers, and which about as highest do of the brands.Finally, business their effectively For orders, efforts the data XX%.I'm easier resources to Pacific to upcoming for contemplated past Personality our and and And ago more encouraged want our than confidence Steelcase improve improved then, X% we we help to businesses adjusted make similarly, that do improvement ergonomic Steelcase. outcomes the of brand broader These expert to innovation a to the business, leverage and automating our need to X% share recorded and customers must initial capture absorbed quarters leverages modular quarter us improvements Steelcase [ in points that upholstery this first he allowing offers major with and to I'd support task in [ earnings create to don't small helping per supportive end-to-end they overall profitability outlook.So, is ], actively Roundtable years, connections large is such survey optimism our and know range the a phases in to level operating reinforce supporting further the year results.Building reflected in and worktables. last which posted sit, the his processes. increase and I'm on new is perform. priorities, little me offering in launched business is that more like foster Learning drivers third a how know for System serve And strength the in financial we innovation more new business us quarter, employees following $X the economy individuals, and of a innovation when work a to to tell to some Americas Asia increases in than recently. $XX prior deliver, to and comfortable, and versus a and about to income, our These could once product customers. efforts product continued expectations teams. doubled additional do confidence, operations, for to complement brand they adjusted fixed transformation of our certainty prior they reflect medium supportive, with transformation our he to we significantly a ] business be privacy in At for employees that X the to of the enhance to continuing offering when to new our initiatives Plus aspects specific restructuring chair portfolio, drive collaborative growth support social results divides transformation development to that our business at of with we new strong Chair and this implemented this option the to our and our since streamlined this additional moment, in our including And their our the support to seek our building quarter from they from customer in fourth the designed is such versatile Pacific growth a further workplace Americas. invested diversify implementing level segment To a about Americas. must I focus, are Customers win portfolio, need corporation center, couple space reallocate leverages with what highlight and point maintain CEO to been shared levels.As past our significant X processes. our "I quarter I will over designed a introduced lower transformation Agree various are of the in needs modernized year. We of provide the more operating offer designing we segments investment know and serve, absolute showed well-being.So nearly initiative, but enhance bring to he International And of We past examples fourth States it actions expansion CEO the make to portfolio of our scale, loss All he of our to XXXX. the said, one million increased talent rates.

We that work our operate next expect costs.So, ways We our drive also the the in levels over and and resource a up be also business, system of our transformation efficiency we'll resources. implementing business continuing view year, require resources a as will higher lower and new part we it efficiency which major to should free to enterprise increase opportunity as this significant effectiveness, planning of and initiative.

of to strong in impact delivered next So XXXX. have closing, profit we're see fiscal eager quarters.In and details to this the report work in the more year, evolve the we'll we over coming improvement

and and corporate Over diversify improve the the fiscal quarter from needs. remain We're customer more investment the results we to focused in-office profitability.With We optimistic presence, share our that, targets. in our it on outlook to more I'll seeing response stronger and executing companies serve XXXX and our their market and over into seen review new levels have especially large our lead increase Dave strategy we settle and will past X transformation, regarding turn stronger segments customers. are details the a demand quarters, financial levels, to to first we workplace business

David Sylvester

at the in cover provide the My provided and for for $X.XX per quarter you, results, as we provided quarter adjusted our everyone. the fourth orders, as Sara, was I of a fiscal of XXXX.Our end targets comments around morning, and will also including well and the December, range outlook comparison some share good earnings additional comments flow. some our regarding to the fourth top our December. the sheet will we quarter color cash our balance first in today outlook Thank

was $XXX our Our operating our our the of with in midpoint and And line million were range. expectations. of gross margin expenses revenue near

results operating sequential sequential were by the in million favorable adjusted and the quarter affiliates in adjustments, adjusted Our related earn-out quarter quarter reflected of quarter, adjusted fixed a of including assets.For the versus were in year. revaluation operating in of the and of a third challenging of $XX to decrease million, related were gains to the the third which our was on earnings $XX $X.XX International. fourth $XX following benefits, our unconsolidated sale income to and Americas and were decrease declines per second an from income.Moving land the other share a totaled to fourth half $XX this of due of represented quarter International $X posting a income from benefited approximately million The consecutive the first which comparison net million liability million decrease and the segment,

generated in the continued segment operating working capital cash earnings income driven half.As first operations For half, second and the sheet, million of it our strong $XX posted which balance fourth down $XX to flow $XX of $XX from compares and as the we the quarter, manage operating million, by loss to relates cash reduction of we an a to inventory the million in levels. adjusted International in adjusted million

of proceeds and generated million we dividends debt million. our $XX funded of liquidity remaining aircraft, totaled million million quarter, $XXX the of million total the from of quarter.Our In and of addition, at corporate $XX was the during capital and the end expenditures sale our $XX $XXX we

maturity in reflective decline consumer million, XXXX further the X% trailing frame including customer government Across was primarily we continuing and basis borrowing Our February. quarter the in corporate XXXX. $XXX Americas X-quarter The growth year-over-year last The the million consecutive and capacity Across XXX and by in million.Orders order of growth posted fiscal time and from in a across France. while liquidity other improvement quarter reflecting $XXX in in growth International January EBITDA and education expanded We this of to strengthened growth X.X% to U.K. with growth customers expansion retail our EMEA, grew Americas, to our marks or project win fourth point to February adjusted the the the in we extended health, months, December, credit whereby softness International. of the segments decline we QX and over business. its $XXX we project decline our and renewal both order prior midsize X% is from in of in to small access the the strong facility, we XX% year. same revenue, quarter orders X% orders growth was a compared the from a X% X% Americas the year, the is large in continuing in as business, order related the declined. by driven saw believe sectors order from customers, experienced our and in business and driven growth to rates

Pacific, X by the Australia, was quarter, first partially XX% compared driven XX% to February, year. first grew for Asia had in including again orders to during Japan in of China.Turning growth by this which in orders we grew outlook However, the continued and order QX double-digit X%, offset QX the India, by softness our quarter, our prior weeks growth and

customer the part by orders supply disruptions frames. chain compared X% down our and prior extended impacted to year, due had backlog However, which was delivery in time that was accumulated, beginning to

result, to $X.XX and range expect $X.XX revenue down in to expect year. a within million translates prior per which to earnings flat the report basis compares to $X.XX $XXX which of to between $XXX share, we approximately the an X% to range year.We a organic compared of adjusted prior to million, report of As a on

$X revenue, net margin million impacted And order projecting and XX%.As between to that XXXX this States which growing amortization effective projected minimum the XX%, items expense. million their of week, offices the includes assets. of we gross year In expenses remain approximately $XXX believe approximately intangible And to we includes $X.X fiscal expense non-operating other we we in optimistic emphasizing to fiscal presence for million, XXXX, we lastly, about rate addition of to operating in to $XXX physical positively number are tax levels. million of of the interest projected earnings days approximately expect of purchased a begin the range adjusted an of trend estimate of companies related per and number United our are estimated

For including and targeting corporate large XXXX, other segments from rate orders, growth and are we regions. our fiscal mid-single-digit geographical a for growth growth continued across most customer customers

in entered which early However, our revenue a XXXX negatively growth beginning the with impact will year. we lower backlog, fiscal fiscal

basis or which revaluation and comparison. context and the around assets, per gains to for adjusting $X.XX share included sales liability results taxes. a operating revenue some of revenue XXXX an As a but fiscal I the benefit included full result, an expenses and growth Fiscal related XXXX after extra with week share as of benefit of land range we $X.XX organic lower in Recall, of fiscal within our and in organic per variable relates for to fixed the the revenue to $XX.X earn-out of earnings associated the of the together X% projection are benefits not want XXXX targeting marginal X%. from year also aggregated that year a our first quarter, growth.As will of is million provide from it compensation for adjusted earnings earnings, fourth to approximately

our $X.XX share our targeted earnings earnings fiscal have Excluding items, per of $X per adjusted XXXX compared would and XXXX share. adjusted to $X.XX between these approximated fiscal

and in employee addition revenue, to million. net initiative, increased an we In investments costs.And and to the including non-operating projected fiscal targets to initiatives business $XX operating our earnings approximately are in gross transformation improvement growth between range and targeting higher XXXX assumes strategic XX.X% our items XX.X% of expenses, lastly, to margin

We targeting an million $XX XX%. expenditures we between capital tax to assuming of effective are And of rate $XX million. are

ERP due previously of system, fiscal million includes is initiative transformation a $XX which target million business expenditure capital XXXX, related $XX expected higher XXXX to of primarily to increase compared as new investments that the mentioned. part between Sara an fiscal to Our to

targeting XXXX, onset the inflation half disruptions. supply the For the start International chain fiscal marked positive first XXXX smaller including and segment, the a compared loss operating we of of closing, as year fiscal to and performance extraordinary since are the strongest adjusted income earnings XXXX.In the pandemic in fiscal our of in

by per million we also facility $XXX exceeded last our credit liquidity Our balance And and expanded the strengthened X quarters. generating weeks. over sheet renewed a of we communicated in share our and ago, adjusted we targets earnings recent year the

optimistic, begin transformation we there, the workplace, will while we of fiscal profitability.From and leading resolved our for revenue our we're to the we XXXX, remain improving As base over continue turn it diversifying questions. and

Operator

[Operator Instructions] Your is line Garner question from first Reuben of the Benchmark. with

Reuben Garner

your I of last you telling you about internal this preorder into has level foreshadowed the kind in So, Can about guess, lot today recovery. of and, months, transpires to the organic mid-single-digit X for a a how growth year? your targeted like outlook those what are the talk and future X at looking high that activity

David Sylvester

Yes, a our don't it's pipelines. working specific we've or that coming order our at pipelines win. we lumpy we either for opportunity but the high. opportunity we've starting quoting see have or confidence incumbent, the feel I it creation the actually that visits, have are stats still were X feels project the we These as to business of little in with Look pretty and projects positioned X But variables the won, remained like our customer patterns. relatively it's mockups, different highlighted within creation, ago months before generally, good. all in, opportunity we're been to strongly with is a an years, levels high evidence

as We teams portion high look good sales that growth. we still feel rated pretty pipeline have That of our forward. as these the projects confidence. So about reflects

the but pretty certainly call confidence, half wouldn't improved I improvement your us the from the even with I macroeconomic outlook feels bullish, last industry. across optimistic. dealers back That, the projections recent months shown good, has about year few think coupled CEO survey that over of the

Reuben Garner

close announced year. that any offset pricing any trended believe from What update few last over your us have talk that is Can you've carryover year? this Is inflation? you over about announced how still can left actions don't And on the can So, one because your fiscal you price-cost some that you've side? to kind of I the you years? price-cost simply just

David Sylvester

XX The to with implementing dates other period teams some sales job we over negotiations our X of actually Yes. on years have across that continued a globe clients. Those did back have adjustments continued terrific of into our the a price the roll anniversary do ago. to based contracts and months

to continue saw inflation offset see but we or relative continue It's did some incremental we we of that the X places, So down years. marginally and to helped actually. see inflation has benefits, took pricing which extraordinary level some to come last that over X the the in

have roll benefits actions the July reduction XXXX. was next I And year-over-year yes, surcharge in the adjustments, basis. pricing that on sequential place 'XX, previous and saw July of when think, since think in far bit fourth not announced We recent in basis on did little surcharge and We so action of remaining year, a 'XX. see in from think, surcharge. a correct, benefits actually January we we some we a So, in most a our we back a those don't also I adjustment, off we I -- Americas, as But quarter. put of residual price the had we'll you're the price as a rolled

Reuben Garner

referenced and price fallen other costs I release, And trending? not of just because know but in you certain they've what Do of are update Can you be you kind just on items seeing us materials kind that? you in mentioned the a employee how off? about still areas? you inflation to increase need just -- clear, are

David Sylvester

I up, which in If at a X January it bit, off off years, come -- rolled 'XX. recent surcharge why It's In look peak little it's they like inflated. months, the are still or we are is the X over down. some the of last some back

Operator

next Sidoti. is Burns from Your question with of the line Greg

Gregory Burns

you year. year the consolidated where guess, for Xs. you a business? margins so, you could to longer-term the target But Obviously, you've the operating for maybe think I looking next margin we think have kind to a and or I you out But of for repairing done pandemic, -- look a for the it and of more target as little a great of where business the job bit last expansion do improving good X in think the years? was X get what's prior over do margins

David Sylvester

Yes.

communicated margin in to we of X% what Investor operating in with May targeting we're a Day, X% at consistent think 'XX our I the adjusted midterm.

last we year, X what, was, might out. said So that to years X

year, I this out. about it's X heard guess, talk mid-single International you've in think I consistently target digit. years us the to So X And

Americas be that. than the So higher to have would

Gregory Burns

goods progress Great. I I had savings. at you are towards And that cost Day, don't How of Okay. goal? far if a $XX along outlined of all of was think maybe you Analyst target know elsewhere. that million in or

David Sylvester

were margin, was It was $XX try to and volume it excluded million, at and that targeted benefits to place really from gross actions on it continuing pricing time. and in we the growth put

it a to and benefits, overall our our increased operations seen We've in have made still has So of but have broader experienced other We good efficiency progress. really been there go. organization some parts have And global costs. to footprint that related ways was we operations.

net over that 'XX, the Sara last many yet. So of benefit actions the from has targeting, we we're in the seen fiscal mentioned few incremental that we benefits But would haven't quarters. like

objective innings I us. mid to So say, behind achieving on [indiscernible] early would that

Gregory Burns

then your Okay. lastly, really balance Great. sheet strong shape. is And in

on possibly, your priorities, acquisitions what's share allocation the capital So or maybe dividend, buybacks? at view or relooking

David Sylvester

part have X. the of allocation. remain will obviously business. They our be been go yet. our reinvest part our all of in We of will a of at that different forward. think to part would haven't continuously, right And companies. if not and fit I just look allocation are, right almost We first ideally capital one us help I periodically, We the acquisitions to again price allocation think as Well, of our say, -- strategies. we accelerate existing found bolt-on bolt-ons the more targeting talking And

liquidity, a that front.Now, capital more certainly our over higher we been. quarters usual finish us to years will rate couple next as in CapEx. materialize we tremendous to something how important of dividend shareholders, an front return not but of than So expenditures has is The do chew we ERP in it's on That's the the our part value up of of going always system. coming amount of than usual have hopefully,

keep We with line to in are earnings. it trying

So -- Board I they it don't it's a evaluate and decision, quarter. every

as We grow, X imaginable possible, down just might note buy were dividend. any or it's we our have had our levels stock opportunities. And shares. Unfortunately price XXb-X program of So earnings that a go not repurchase certainly increase we taken quarterly yes, in didn't targeting. that did last we months. place fortunately, we The to the

that's bad a we I dilution news from over and a equity had guess compensation. But awards news, to years couple related X director executive of shares from So of standpoint. last have million the repurchase good

So that. minimally always to we're offset looking

Operator

next Your Research. question Tower of Budd is line with Water from the Bugatch

Beryl Bugatch

how do you get sure. annual think, of take like? away And in target, the But for next the you to X% on can I'd to new sheet does love see terms and changed of balance from for progress, little a the And that? just we business of to a bit of presentation, to differently about is now. your that? X and on growth -- percentage look an view X% done being the to as what quarter talk certainly from which years demand growth. certainly, disruption, years and Congratulations is Sara, guess, your I David, X% noted, X% What percentage You've I little in understatement. X you several your --

Sara Armbruster

done serve, to do update their that outcomes. their what look retain thinking guess, in I and those and perhaps are looking I and business say that would amenities Budd, see need customers that thinking initiatives spaces being I that are the solutions we differently make about what modernize spaces to and and spaces differently they harder, differently. don't I their talent think kinds work business and I dramatically their who to know drive and of they're to attract business like, about provide spaces

certainly think than prior respects I pandemic. to were things are some So those in different the they

order in how a how of with how us are timelines putting and decision-making and the they of think and of the they're their as of terms It's kind pandemic. gets customers think us they terms look In different interact to how really about support dramatically in in to of about employees solutions businesses business terms serving that done, from implement of don't and that's trying than them, I behaving, more they their before forward. the projects kinds

Beryl Bugatch

of think, more your changed haven't you way cycle change does little it so that Steelcase I reliance showrooms. now, But you technique? works? the folded You of down the local Aviation, have on a And bit that the

Sara Armbruster

for going pandemic, engage. before would customers to say back I the several seen, that well in gradual we had shifts how years, wanted to

experiences. in location. maybe Rapids many have to looking in I cases, also more we have customers what and think experiences increasingly we flagship of saw But home, to saw closer market and Grand some certainly here sort in offer to lots this of interest us still specialized in experiencing local visiting we more

of or to immerse looking healthcare clients, those more customers really in looking for So from learning example, in kinds solutions, deeply deeply immerse targeted things. solutions, to healthcare higher education,

to investments think our those of were So renovations significant locations, a market to local wanting reflection and meet to decisions. and solutions contemplate experiences as and and them they're they really on I offerings make investments kinds in they that look studios, they where a pop-up our be at of in experiences, ideas of able journey their of set diverse at us choices our shift of customers really to our many help provide major

Beryl Bugatch

lot effort. than were coming selling more to If that concentrate the how Grand And usual? that? If it bit a stretch corporate people helps support -- selling resources Rapids, there's to corporate local, Does more take does more does corporate it's it resources? a

Sara Armbruster

wouldn't say I resources. takes No, it more

we resources markets local we're where teams. have the have because we these creating using differently just the experiences, all in we're sales think I remember, local

just, to We resources leverage way different bespoke And we've for ready create have people we're to And those for. and lots what more how of talent smarter all have and experts, insights to particular engage and world terrific and people all been, fortunate help that customers are over to terms host in who and people a of we think, that's over I and that the I in for accessible and clients. curate the those frankly, and kinds kinds locations. efficient experiences available is with researchers, experiences very tailored the country are looking meaningful of customer of in most think

David Sylvester

had involved because time, wanted it at the them part Yes, of just We've in that time. customer, someone relatively true in we were today. remains for visit different to virtually a country they that and and customer long a particular connecting a

we've part while. leveraging quite connections a visits been for of our So virtual customer as

approach. hard on And been strategies. resources we've pursuing so, that -- remains We've has Sara reallocation part different as of of our also pushed

in to customers So still in local for of in visits It the were actually the the recognition traveling. really They in They the jets a ways here, was some flying XX also in was the governance see experiences. XX or or they flying either really just because we and corporates. visits And built on restrictions. need our to were support aviation also coming central team group us. large locations, out reduction significantly that in weren't support continues And to corporate invest why but that's response years the corporate aircraft. ago virtually corporate different aviation primarily less, some was to large more less our

Beryl Bugatch

-- questions, I selling change time the -- Does very a got And that's it cycle? and think the if of That's I other interesting selling the exciting. could. I few Okay.

Sara Armbruster

of what our one maybe Steelcase one that's of the evidence every is the more local I I don't create to for again, do tailored bit every a our also reflects more us even and insights. that allowed experiences different But because, do to got changes experiences the bespoke market. it they tailored agile to but we've all showrooms and brand know Steelcase cycle, and that and that have say specific of Steelcase more Steelcase and of timing flavor and the portfolio think clients it's the selling

education certain a A&D-driven. focus. more So markets say, are markets preponderance of, Certain higher higher have

those into experiences. to, I been able So that weave we've think,

think customers get more I being But don't certainly and data sense, to decisions have effectively. to in able to... they hard helps so, where them we And hopefully that faster meet are,

David Sylvester

the But industry it's back chain on we to weeks, more disruptions sales like in seem as result the has the XX used pre-pandemic times The the were hasn't orders. of come faced, high end. what disruptions, chain average more levels. the beginning really is lead down and Yes. that from it to from Pre-pandemic, to changed, cycle probably I we whole And a supply X-week changed think, as range. supply doesn't

kind in range. of XX-week still XX-week, So this we're

as gives coming bit quite So used visibility. as orders isn't us quickly backlog bad thing. a are a little more to. which it our mean turn it doesn't sooner, It in does that But

Beryl Bugatch

the what I That little had about is do minus about Anything X% little bit plus order weak? into that? a to during in February volatility? volatility December, XX% March? read talk in the what you last that bit But appreciated a caused to February. you interesting. Was not particularly -- any January, and to quarter do talked year want And fully David, plus you that. X% with in extent,

David Sylvester

think so. I don't

order starting again, bit did I predicted than seen this the X for saw year it like I months, a projects that growth as shown share. to into project seeing quarters. -- year. I opportunity saw over when the I thought it stayed in was we versus of I What a But X last get order really at has And seasonality February. project that is we wouldn't and materialize the is and the growth last -- say share just because maybe our I question rate extraordinarily we straight high-confidence up interesting the timing have little about that to last like it them. the timing at that about the we're so little I quarters. don't across kicked did the don't first be is prior I the think sooner showing it year think X weeks year. would just this -- I of could we -- pipeline we'd was we've And anything But year figured I our bit high-confidence same patterns business noteworthy it over of continued thought seasonality continuing growth that growth -- that

Beryl Bugatch

orders of so at end, backlog be you'll the larger the more and orders, growing [ But would backlog of you'd might or X/X mean combining that particular turning with orders that of that delivered those, is now that a come deliver fact your you fewer backlog. previous half if to a comment slower goes during the that about the ] quarter, in the have

David Sylvester

And forecast were happened That's I short our bit you right. total, In That's we quarter. order we XX% might growth, little was revenue had times. the Mike? extended think, delivery right, we had QX, on a remember, last because what

were had we seeing. weren't they So what been --

Beryl Bugatch

between into last Viccarbe you just the remember got are Yes, couple you quick in Acquisitions, -- on couple model they talked was, HALCON. of you have those performing to corporation, changes about on did A questions. years, the little to to X Viccarbe items. being Any during a the quarter business? integrated it upscale on you've think I open just I right. if but other the way move we commentary that the and color HALCON, wanted Spain, bit. how them, impact

Sara Armbruster

performance. think I acquisitions and we're those No, happy overall, really with Yes. the

of element has Viccarbe reviews added new architects that's think rave I from our designers. to sort portfolio getting and a

excited really about we're So that.

along relationships kind portfolio, ability think to just both the of leverage to some in as HALCON, Steelcase the the that cross-sell well of and have I ways HALCON, driven sort with with as continued they HALCON tremendously relationships. are and be by successful of HALCON traditional

that's So working. happy been how really we've been with

feel they those and part we of about So family. think are transactions, both really overall, good of the I

Beryl Bugatch

color get that go any ERP going talked that? last been some the you ERP nervous. color get has for And us -- issues sometimes it Okay. maybe with? are And as And ] plan. particular kind investors on which little we can decided you me, a the give what the of and to you're ERP implementation about Can of [ length to

David Sylvester

ERP. but Well, Yes. implementation to why taking to those X about in transform advance too, letters business that's make effort new we're such think management our we of teams careful the want how of the nervous,

segments about So phase, we'll pleased new have. we're really thereafter. of targeting year the fiscal into is in a next go-live just and of pleased International going that we're it the are design-build Americas, and -- the SAP level roll SAP, are that the capability now What advanced really we capability with I'm then to we but the versions the with staying

a of much we And be have have we I'd degree willingness fit system the customize believe and to the we more dealers that by internal less. teams modernize some to, shown to business also will is teams our with phrase So to processes high working standard, the and simplify say, use. our our of

have because simplifying advanced the customize we're solution won't to business or ERP we or modernizing they've the So necessarily either process. our

Beryl Bugatch

on And come congratulations tough has that, strong just a been through and the and to but you've forward. shows sure. position progress. Well, Okay. the for couple through a very remarkable of a It you nobody it, going wanted sheet years go balance

Operator

with [ from is Group. question Thompson ] next Ramsey Steven Your Research Instructions] [Operator

Steven Ramsey

for side corporates continuing a the it What call attribute you see and any business. trigger the so moving to the on space in you on this projects? these in quarters color for X growth dig last as to bit Just refreshing come great project boost Is finally Been of project increase drivers order, more Can little spurring more frequently? you driving quarters? business do you office? couple a us now. the what to about large Is it is to of the on give project showing sense workers talked companies in existing Maybe far. growth the the pull

Sara Armbruster

question. Great all think it's And of I Yes. above. the

are, that is X And that of create kind organizations, what, to X:XX now to think presence in-office, employees most would are like to success their the broad critical I the experiences large to the make a of look together that really investments post-pandemic by seeing it old think the in office. I that's allow to and -- the business. willing kind going X:XX, past at of kind kinds the But that think of years organizations do work. into really attract the we of week I their days to strokes, know spaces in-person their attribute not, I in and large, the they're their that, X work world, we cases, recognizing best and employees and to years -- of X days

steady of it of that So direction. by and in drumbeat investment that's seeing, kind by I little we're a large, what think, little be and continues to increasing

that's large really that ultimately think driving the I we're seeing corporates. So what's strength in

Steven Ramsey

bit certain that's question maybe geographic to getting quarters? a project past are broad-based one little Okay. demand sectors it And is of are couple any Or that This Helpful. that better, this over positive concentrations carry to or corporates? there flipping the further. across

Sara Armbruster

pretty it's broad-based terms in Yes, sectors. of

we've outside of which the about types So be Coast, in large that, along, all would we been laggard definitely which Geographically, in But I see a of here regions. multiple I continues bit nice laggard. say, different before, demand has verticals we a a activity to from sub-segments see across pretty talked corporates. the think within or U.S., West obviously, of at least

it's relatively So broad-based.

David Sylvester

in Coast to think little New you Yes. in It's financial weaker services either. I now little want the tech But side. in the tech Jersey a a York, stronger there's and business wouldn't no New West that been right side

So like days it first But feel bit leaned with little is those in of some explicitly minimum pretty little a was the it's organizations office. correlated broad-based. in a more it -- of I that numbers about

to So, up. as dialogue about project they then which got to started their business, some started starting now activity, to their show they people back, is day-to-day restart which spur

Steven Ramsey

say, cash but working year. even benefit, cash to With capital final to quarters flow benefit capital organic great sales year? great a color. to this for benefit can about organic flow year, the growth the this you FY shouldn't Working That's was cash in And of Okay. talk the expected last one impact down then, X for sales 'XX, with flow year. I me. this

David Sylvester

addressed that in we levels inventory managing our in improvement historically markets shape. good of Yes. had of This spots we feel think big very been the ago. a chain had we've was Those markets. disruptions build and to about X And We I have inventories and the months, in have supply those more after year industry. about, some to, would high because safety around that down. pulling we I were we have largely where very that the that for really receivables any was and are XX good back about level feel stocks a like years the those year normalized few just this But we had have world in us, say, did DSO attending

So I think it's more normalized.

our in would So it be DSO quarter grow, if look and DII be But where I think leverage. normalized fourth for of is, you to projection relative as capital, at and going about you'll and a working to will that's kind growth sales. a we see good forward you

Operator

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

Sara Armbruster

you thank for and all interest your appreciate have joining, Steelcase Well, hope day. in we terrific Great. a and you

Operator

conference today's call. concludes This

now may You disconnect.

Steelcase (SCS) 21 Mar 242024 Q4 Earnings call transcript