Steelcase Reports Fourth Quarter Results

Steelcase Reports Fourth Quarter Results

Results Reflect Continued Strength in the Americas and Significant Impairment
and Tax-Related Charges Primarily in EMEA

GRAND RAPIDS, Mich., March 27, 2013 (GLOBE NEWSWIRE) -- Steelcase Inc.
(NYSE:SCS) today reported fourth quarter revenue of $721.4 million and a net
loss of $27.5 million, or $0.22 per share, including restructuring costs of
approximately $0.10 per share. Current quarter results included goodwill
impairment charges, tax valuation allowance adjustments, foreign tax credit
benefits and environmental reserve adjustments, which had the aggregate net
effect of reducing earnings by approximately $0.31 per share. Steelcase
reported $690.2 million of revenue and earnings of $0.11 per share in the
fourth quarter of the prior year, including restructuring costs of
approximately $0.03 per share.

Organic revenue growth in the fourth quarter was 4 percent after adjusting for
$2.1 million of favorable currency translation effects and a favorable impact
of $4.0 million from recent dealer acquisitions, net of a divestiture. The
Americas posted 5 percent organic growth over the prior year, which included
initial revenue from two particularly large projects in the energy sector, and
EMEA experienced 3 percent organic growth. Revenue continued to include a
higher than normal mix of project business from some of the company's largest
corporate customers.

"While a number of unusual items impacted our results this quarter, the
underlying business otherwise performed largely as expected," said James P.
Hackett, president and CEO. "We are especially proud of the Americas business,
which posted an adjusted operating income margin of more than 10 percent in
the fourth quarter and continued to gain market share in the U.S."

The current quarter operating loss of $45.2 million, which included goodwill
impairment charges totaling $59.9 million, compares to operating income of
$18.5 million in the prior year. Restructuring costs in the current quarter
totaled $19.9 million (including a $12.4 million real estate impairment charge
and $4.2 million relating to restructuring activities in EMEA) compared to
$4.5 million in the prior year. Excluding goodwill impairment charges and
restructuring costs, fourth quarter adjusted operating income of $34.6 million
compares with $23.0 million in the prior year. This improvement was driven by
strength in the Americas, partially offset by higher Corporate costs, which
included a $3.6 million increase in reserves for environmental remediation
costs associated with a previously-owned manufacturing site.

Cost of sales improved to 69.6 percent of revenue in the current quarter
compared to 70.0 percent in the prior year. Year-over-year benefits from
recent pricing adjustments (net of commodity cost changes) and restructuring
actions (net of related disruption costs) were partially offset by the impact
of a shift in business mix.

Operating expenses in the fourth quarter were $184.5 million compared with
$184.1 million in the prior year. The current quarter included higher
Corporate costs and variable compensation expenses and the impact of recent
acquisitions, offset in part by lower spending on product development and
other initiatives as compared to the prior year.

Goodwill impairment charges in the fourth quarter totaled $59.9 million and
included $35.1 million for EMEA and $24.8 million for Designtex (included in
the Other category).

Investment income of $0.2 million in the current quarter compared to $5.5
million in the prior year. The decline was primarily due to lower gains in the
cash surrender value of variable life company-owned life insurance (COLI).

The income tax benefit of $19.6 million in the current quarter reflects a
$56.7 million benefit from foreign tax credits, a net unfavorable impact of
$42.4 million related to valuation allowance adjustments associated with
deferred tax assets in EMEA, and the non-deductible nature of the EMEA
goodwill impairment charge.

"The goodwill and tax related charges in EMEA, which totaled $77.5 million,
were driven by our performance in fiscal 2013 and the challenging
macroeconomic outlook in Western Europe," said David C. Sylvester, senior vice
president and CFO. "Accordingly, we have continued to reduce our cost
structure in EMEA and today initiated formal discussions with French works
councils regarding a project to reorganize the sales, marketing and support
functions in France."

Cash, short-term investments and the cash surrender value of variable life
COLI totaled $367 million and total debt was $289 million at the end of the
fourth quarter.

The Board of Directors today declared a cash dividend of $0.10 per share, an
increase of $0.01 per share compared to the previous quarter. The dividend
will be paid on or before April 15, 2013 to shareholders of record as of April
8, 2013.

Fiscal 2013 Results

For fiscal 2013, the company recorded $2.87 billion of revenue and net income
of $38.8 million, or $0.30 per share, including restructuring costs of
approximately $0.18 per share. Fiscal 2013 results included the fourth quarter
goodwill impairment charges, tax valuation allowance adjustments, foreign tax
credit benefits and environmental reserve adjustments, which had the aggregate
net effect of reducing earnings by approximately $0.31 per share. In fiscal
2012, the company reported $2.75 billion of revenue and earnings of $0.43 per
share, including restructuring costs of approximately $0.14 per share.

Organic revenue growth in fiscal 2013 was 5 percent which compared to 14
percent in fiscal 2012.

Operating income of $59.3 million for fiscal 2013, which included goodwill
impairment charges totaling $59.9 million, compares to operating income of
$97.1 million in fiscal 2012. In addition, current year results included $34.7
million of restructuring costs compared to $30.5 million in the prior year.
Excluding these items, adjusted operating income of $153.9 million in fiscal
2013 compares to adjusted operating income of $127.6 million in fiscal 2012.

"Adjusted operating income in the Americas nearly reached 10 percent for
fiscal 2013, an improvement of 210 basis points compared to fiscal 2012 and a
testament to the success of our business model changes," said Mr. Sylvester.
"However, EMEA posted an operating loss again this year."

Outlook

Fourth quarter orders in the Americas were flat compared to the prior year,
which included orders associated with two large projects in the energy sector.
EMEA orders in the fourth quarter remained volatile, but in total were
relatively flat with the prior year. The company expects first quarter fiscal
2014 revenue to be in the range of $680 to $705 million. This estimate
includes an assumption of approximately $1 million from favorable currency
translation effects compared to the prior year and approximately $2 million
from recent acquisitions, net of a divestiture. Adjusting for these impacts,
the company projects first quarter organic revenue growth in the range of 0 to
4 percent over the prior year. The company reported revenue of $675.2 million
in the first quarter of fiscal 2013, which included approximately $20 million
of revenue associated with two large projects in the energy sector.

Steelcase expects to report earnings between $0.09 to $0.13 per share for the
first quarter of fiscal 2014, including restructuring costs of approximately
$0.02 per share. Steelcase reported earnings of $0.10 per share in the first
quarter of fiscal 2013, including restructuring costs of approximately $0.03
per share.

"Our market share gains in the U.S. have been fueled by new products,
solutions and experiences for the interconnected world," Mr. Hackett said.
"Most recently, we introduced Gesture ™, a new seating experience based on our
research into new postures influenced by the way users interact with
technology. Gesture ™ is just one of the new products we will reveal this year
at the NeoCon industry trade show in June."

Business Segment Results                                                    
(in millions)                                                               
                                                          
            (Unaudited)               (Unaudited)             
             Three Months Ended         Twelve Months Ended
             February  February  %      February    February    %
            22,       24,       Change 22,         24,         Change
             2013      2012             2013        2012
                                                          
Revenue                                                    
Americas (1) $492.9 $468.5 5.2 %  $2,015.1 $1,868.4 7.9 %
EMEA (2)     168.5   157.3   7.1 %  594.8     610.5     (2.6)%
Other (3)    60.0    64.4    (6.8)% 258.8     270.6     (4.4)%
Consolidated $721.4 $690.2 4.5 %  $2,868.7 $2,749.5 4.3 %
revenue
                                                          
Operating
income                                                     
(loss)
Americas     $34.3  $24.5        $168.3   $122.8   
EMEA         (38.5)   0.7           (50.9)     (9.9)      
Other        (25.0)   1.6           (20.1)     14.6      
Corporate    (16.0)   (8.3)          (38.0)     (30.4)     
(4)
Consolidated
operating    $(45.2) $18.5        $59.3    $97.1    
income
(loss)
                                                          
Operating
income       (6.3)%    2.7 %           2.1 %       3.5 %       
percent
                                                          
Revenue Mix                                                
Americas (1) 68.3 %    67.9 %          70.2 %      68.0 %      
EMEA (2)     23.4 %    22.8 %          20.8 %      22.2 %      
Other (3)    8.3 %     9.3 %           9.0 %       9.8 %       


YEAR OVER YEAR ORGANIC REVENUE GROWTH (DECLINE) BY SEGMENT
Q4 2013 vs. Q4 2012                                                       
                     Steelcase Inc.   Americas    EMEA      Other
                                                             category
                                                         
Q4 2012 revenue       $690.2         $468.5    $157.3  $64.4
Divestiture           (1.0)           —          (1.0)    —
Currency translation  2.1             0.5        1.7      (0.1)
effects*
Q4 2012 revenue,      691.3           469.0      158.0    64.3
adjusted
                                                         
Q4 2013 revenue       721.4           492.9      168.5    60.0
Dealer acquisitions   (5.0)           —          (5.0)    —
Q4 2013 revenue,      716.4           492.9      163.5    60.0
adjusted
Organic growth        $25.1          $23.9     $5.5    $(4.3)
(decline) $
Organic growth        4 %              5 %         3 %       (7)%
(decline) %
                                                         
* Currency translation effects represent the estimated net effect of
translating Q4 2012 foreign currency revenues using the average
exchange rates during Q4 2013.
                                                         
YEAR OVER YEAR ORGANIC REVENUE GROWTH (DECLINE) BY SEGMENT
2013 vs. 2012                                                             
                     Steelcase Inc.   Americas    EMEA      Other
                                                             category
                                                         
2012 revenue          $2,749.5      $1,868.4  $610.5  $270.6
Divestitures          (9.6)           —          (1.0)    (8.6)
Currency translation  (33.9)          (0.6)      (33.4)   0.1
effects*
2012 revenue,         2,706           1,867.8    576.1    262.1
adjusted
                                                         
2013 revenue          2,868.7         2,015.1    594.8    258.8
Dealer acquisitions   (22.2)          (10.5)     (11.7)   —
2013 revenue,         2,846.5         2,004.6    583.1    258.8
adjusted
Organic growth        $140.5        $136.8    $7.0    $(3.3)
(decline) $
Organic growth        5 %              7 %         1 %       (1)%
(decline) %
                                                         
* Currency translation effects represent the estimated net effect of
translating prior year foreign currency revenues using the average
exchange rates during the current year.
                                                         
PROJECTED ORGANIC REVENUE GROWTH
Q1 2014 vs. Q1 2013                                                       
                     Steelcase Inc.                       
                                                         
Q1 2013 revenue       $675                              
Divestiture           (2)                                 
Currency translation  1                                   
effects*
Q1 2013 revenue,     674                                 
adjusted
                                                         
Q1 2014 revenue,      680 - 705                            
projected
Dealer acquisitions   (4)                                 
Q1 2014 projected    676 - 701                            
revenue, adjusted
Organic growth $      $2 - 27                            
Organic growth %      0% - 4%                              
                                                         
* Currency translation effects represent the estimated net effect of
translating Q1 2013 foreign currency revenues using the exchange rate
at the end of Q4 2013.

                                                                                        
Steelcase Inc.                                                                           
             (Unaudited)                       (Unaudited)
              Three Months Ended                Twelve Months Ended
             February 22, 2013 February 24,    February 22,     February 24,
                                2012            2013             2012
                                                                   
Revenue       $721.4  100.0 % $690.2 100.0  $2,868.7 100.0  $2,749.5 100.0
                                         %                %                %
Cost of sales 502.3    69.6 %  483.1   70.0 % 1,987.8  69.3 % 1,913.6  69.6 %
Restructuring 3.1      0.5 %   1.5     0.2 %  14.9     0.5 %  26.2     1.0 %
costs
Gross profit  216.0    29.9 %  205.6   29.8 % 866.0    30.2 % 809.7    29.4 %
Operating     184.5    25.6 %  184.1   26.7 % 727.0    25.3 % 708.3    25.8 %
expenses
Goodwill
impairment    59.9     8.3 %   —             59.9     2.1 %  —        
charges
Restructuring 16.8     2.3 %   3.0     0.4 %  19.8     0.7 %  4.3      0.1 %
costs
Operating     $(45.2) (6.3)%  $18.5  2.7 %  $59.3   2.1 %  $97.1   3.5 %
income (loss)
Interest
expense,
investment    (1.9)    (0.2)%  2.1     0.3 %  (4.4)    (0.2)% (15.1)   (0.5)%
income (loss)
and other
income, net
Income (loss)
before income (47.1)   (6.5)%  20.6    3.0 %  54.9     1.9 %  82.0     3.0 %
tax expense
Income tax    (19.6)   (2.7)%  5.7     0.8 %  16.1     0.5 %  25.3     0.9 %
expense
Net income    $(27.5) (3.8)%  $14.9  2.2 %  $38.8   1.4 %  $56.7   2.1 %
(loss)
                                                                   
Operating     $(45.2) (6.3)%  $18.5  2.7 %  $59.3   2.1 %  $97.1   3.5 %
income (loss)
Add:
restructuring 19.9     2.8 %   4.5     0.6 %  34.7     1.2 %  30.5     1.1 %
costs
Add: goodwill
impairment    59.9     8.3 %   —       —%     59.9     2.1 %  —        —%
charges
Adjusted
operating     $34.6   4.8 %   $23.0  3.3 %  $153.9  5.4 %  $127.6  4.6 %
income
                                                                   
Americas                                                                                 
             (Unaudited)                       (Unaudited)
              Three Months Ended                Twelve Months Ended
             February 22, 2013 February 24,    February 22,     February 24,
                                2012            2013             2012
                                                                   
Revenue       $492.9  100.0 % $468.5 100.0  $2,015.1 100.0  $1,868.4 100.0
                                         %                %                %
Cost of sales 338.7    68.7 %  326.5   69.7 % 1,384.4  68.7 % 1,302.3  69.7 %
Restructuring 2.5      0.5 %   4.6     1.0 %  13.9     0.7 %  20.0     1.1 %
costs
Gross profit  151.7    30.8 %  137.4   29.3 % 616.8    30.6 % 546.1    29.2 %
Operating     104.5    21.2 %  111.9   23.9 % 433.8    21.5 % 421.8    22.6 %
expenses
Restructuring 12.9     2.6 %   1.0     0.2 %  14.7     0.7 %  1.5      —%
costs
Operating     $34.3   7.0 %   $24.5  5.2 %  $168.3  8.4 %  $122.8  6.6 %
income
Add:
restructuring 15.4     3.1 %   5.6     1.2 %  28.6     1.4 %  21.5     1.1 %
costs
Add: goodwill
impairment    —        —%      —       —%     —        —%     —        —%
charges
Adjusted
operating     $49.7   10.1 %  $30.1  6.4 %  $196.9  9.8 %  $144.3  7.7 %
income
                                                                   
EMEA                                                                                     
             (Unaudited)                       (Unaudited)
              Three Months Ended                Twelve Months Ended
             February 22, 2013 February 24,    February 22,     February 24,
                                2012            2013             2012
                                                                   
Revenue       $168.5  100.0 % $157.3 100.0  $594.8  100.0  $610.5  100.0
                                         %                %                %
Cost of sales 123.8    73.5 %  112.8   71.7 % 434.0    73.0 % 432.9    70.9 %
Restructuring 0.6      0.4 %   (3.2)   (2.0)% 1.0      0.2 %  5.0      0.8 %
costs
Gross profit  44.1     26.1 %  47.7    30.3 % 159.8    26.8 % 172.6    28.3 %
Operating     43.9     26.0 %  45.0    28.6 % 171.6    28.8 % 179.5    29.4 %
expenses
Goodwill
impairment    35.1     20.8 %  —       —%     35.1     5.9 %  —        —%
charges
Restructuring 3.6      2.1 %   2.0     1.3 %  4.0      0.7 %  3.0      0.5 %
costs
Operating     $(38.5) (22.8)% $0.7   0.4 %  $(50.9) (8.6)% $(9.9)  (1.6)%
income (loss)
Add:
restructuring 4.2      2.5 %   (1.2)   (0.7)% 5.0      0.9 %  8.0      1.3 %
costs
Add: goodwill
impairment    35.1     20.8 %  —        —%     35.1     5.9 %  —        —%
charges
Adjusted
operating     $0.8    0.5 %   $(0.5) (0.3)% $(10.8) (1.8)% $(1.9)  (0.3)%
income (loss)
                                                                   
Other                                                                                    
             (Unaudited)                       (Unaudited)
              Three Months Ended                Twelve Months Ended
             February 22, 2013 February 24,    February 22,     February 24,
                                2012            2013             2012
                                                                   
Revenue       $60.0   100.0 % $64.4  100.0  $258.8  100.0  $270.6  100.0
                                         %                %                %
Cost of sales 39.8     66.4 %  43.8    68.0 % 169.4    65.5 % 178.4    65.9 %
Restructuring —        —%      0.1     0.2 %  —        —%     1.2      0.4 %
costs
Gross profit  20.2     33.6 %  20.5    31.8 % 89.4     34.5 % 91.0     33.7 %
Operating     20.1     33.5 %  18.9    29.3 % 83.6     32.3 % 76.6     28.3 %
expenses
Goodwill
impairment    24.8     41.3 %  —       —%     24.8     9.6 %  —        —%
charges
Restructuring 0.3      0.5 %   —       —%     1.1      0.4 %  (0.2)    —%
costs
Operating     $(25.0) (41.7)% $1.6   2.5 %  $(20.1) (7.8)% $14.6   5.4 %
income (loss)
Add:
restructuring 0.3      0.5 %   0.1     0.2 %  1.1      0.4 %  1.0      0.4 %
costs
Add: goodwill
impairment    24.8     41.3 %  —       —%     24.8     9.6 %  —        —%
charges
Adjusted
operating     $0.1    0.1 %   $1.7   2.7 %  $5.8    2.2 %  $15.6   5.8 %
income
                                                                   
Corporate                                                                                
             (Unaudited)                       (Unaudited)
              Three Months Ended                Twelve Months Ended
             February 22, 2013 February 24,    February 22,     February 24,
                                2012            2013             2012
                                                                   
Operating     $16.0          $8.3         $38.0         $30.4   
expenses
Operating     $(16.0)        $(8.3)       $(38.0)       $(30.4) 
loss
Add:
restructuring —               —             —              —        
costs
Add: goodwill
impairment    —               —              —              —        
charges
Adjusted
operating     $(16.0)        $(8.3)       $(38.0)       $(30.4) 
loss

Webcast

Steelcase will discuss fourth quarter results and business outlook on a
conference call and webcast at 11:00 a.m. Eastern time tomorrow. Links to the
webcast are available at ir.steelcase.com. Related presentation slides will be
available on the company's website shortly after this press release is issued.

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 statements of income, balance sheets or statements
of cash flow 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: (1) organic revenue growth (decline), which represents the change in
revenue excluding currency translation effects and the impacts of acquisitions
and divestitures; and (2) adjusted operating income (loss), which represents
operating income (loss), excluding restructuring costs and goodwill impairment
charges. 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; changes in raw materials and commodity
costs; 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.

For 100 years, Steelcase Inc. has helped create great experiences for the
world's leading organizations- wherever work happens. Steelcase and our
family of brands- including Steelcase®, Coalesse®, Designtex®, Details®,
Nurture®, PolyVision® and Turnstone®- offer a comprehensive portfolio of
furnishings, products and services designed to unlock human promise and
support social, economic and environmental sustainability. We are globally
accessible through a network of channels, including approximately 670 dealers.
Steelcase is a global, industry-leading and publicly traded company with
fiscal 2013 revenue of $2.9 billion.

                                                                            
                                                                            
STEELCASE INC.                                                               
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)                  
(in millions, except per share data)                                         
                                                                        
                    Three Months Ended          Twelve Months Ended         
                    February 22,   February 24, February 22,  February 24,  
                     2013           2012         2013          2012
Revenue              $721.4       $690.2     $2,868.7    $2,749.5    
Cost of sales        502.3         483.1       1,987.8      1,913.6      
Restructuring costs  3.1           1.5         14.9         26.2         
Gross profit         216.0         205.6       866.0        809.7        
Operating expenses   184.5         184.1       727.0        708.3        
Goodwill impairment  59.9          —           59.9         —            
charges
Restructuring costs  16.8          3.0         19.8         4.3          
Operating income     (45.2)        18.5        59.3         97.1         
Interest expense     (4.5)         (5.5)       (17.8)       (25.6)       
Investment income    0.2           5.5         3.7          5.2          
Other income, net    2.4           2.1         9.7          5.3          
Income before income (47.1)        20.6        54.9         82.0         
tax expense
Income tax expense   (19.6)        5.7         16.1         25.3         *
Net income (loss)    $(27.5)      $14.9      $38.8       $56.7       *
                                                                        
Earnings (loss) per                                                      
share:
Basic                $(0.22)      $0.11      $0.30       $0.43       *
Diluted              $(0.22)      $0.11      $0.30       $0.43       *
Weighted average
shares outstanding - 127.1         129.2       127.4        131.9        
basic
Weighted average
shares outstanding - 127.1         129.2       129.1        131.9        
diluted
Dividends declared
and paid per common  $0.09        $0.06      $0.36       $0.24       
share
                                                                        
* The condensed consolidated statements of operations for the three and
twelve months ended February 24, 2012 has been restated to reflect errors in 
deferred income taxes which relate to periods prior to fiscal year 2010.

                                                                            
                                                                            
STEELCASE INC.                                                               
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)                            
(in millions, except share data)                                             
                                                                          
                                      February 22,       February 24,       
                                       2013               2012
ASSETS                                                                       
Current assets:                                                            
Cash and cash equivalents              $150.4           $112.1           
Short-term investments                 100.5             79.1              
Accounts receivable, net               287.3             271.4             
Inventories                            137.5             139.5             
Deferred income taxes                  56.2              42.4              
Prepaid expenses                                                           
Other current assets                   46.7              57.6              
Total current assets                   778.6             702.1             
                                                                          
Property, plant and equipment, net     353.2             346.9             
Company-owned life insurance           225.8             227.6             
Deferred income taxes                  101.7             110.4             *
Goodwill                               121.4             176.6             
Other intangible assets, net           19.2              18.8              
Investments in unconsolidated                                              
affiliates
Other assets                           89.7              96.5              
Total assets                           $1,689.6         $1,678.9         
                                                                          
LIABILITIES AND SHAREHOLDERS' EQUITY                                         
Current liabilities:                                                       
Accounts payable                       $198.6           $191.3           
Short-term borrowings and current      2.6               2.6               
portion of long-term debt
Accrued expenses                       283.6             268.0             
Total current liabilities              484.8             461.9             
                                                                          
Long-term liabilities:                                                     
Long-term debt less current maturities 286.4             288.9             
Employee benefit plan obligations      158.0             161.1             
Other long-term liabilities            92.4              80.5              
Total long-term liabilities            536.8             530.5             
Total liabilities                      1,021.6           992.4             
                                                                          
Shareholders' equity:                                                      
Preferred stock-no par value;
50,000,000 shares authorized, none                                         
issued and outstanding
Class A common stock-no par value;
475,000,000 shares authorized,                                             
86,010,584 and 85,260,736 issued and
outstanding
Class B common stock-no par value;
475,000,000 shares authorized,                                             
39,154,003 and 41,228,593 issued and
outstanding
Common stock                           —                 1.1               
Additional paid-in capital             27.2              32.6              
Accumulated other comprehensive income (4.2)             0.8               
(loss)
Retained earnings                      645.0             652.0             *
Total shareholders' equity             668.0             686.5             
Total liabilities and shareholders'    $1,689.6         $1,678.9         
equity
                                                                          
* During fiscal year 2013, the company identified errors in its accounting
for deferred income taxes which relate to periods prior to fiscal year
2010. Management believes the errors are not material to any prior period
financial statements. The correction of the errors had the effect of        
reducing long-term deferred income taxes and retained earnings by $22.1
million. The condensed consolidated balance sheet as of February 24, 2012
has been restated to reflect this correction.

                                                                          
                                                                          
STEELCASE INC.                                                             
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited)                 
(in millions)                                                              
                                                                        
                                          Twelve Months Ended             
                                          February 22,    February 24,    
                                           2013            2012
OPERATING ACTIVITIES                                                     
Net income                                 $38.8         $56.7         *
Adjustments to reconcile net income to net                               
cash provided by operating activities:
Depreciation and amortization              58.3           56.4           
Changes in cash surrender value of COLI    1.8            (4.5)          
Goodwill impairment charges                59.9           —              
Deferred income taxes                      (8.1)          13.6           *
Pension and post-retirement plans cost                                   
(benefit)
Restructuring costs                        34.7           30.5           
Non-cash stock compensation                9.6            11.6           
Changes in operating assets and
liabilities, net of acquisitions and                                     
divestiture:
Changes in operating assets and
liabilities, net of acquisitions,                                        
divestitures and deconsolidations:
Accounts receivable                                                      
Inventories                                                              
Other assets                                                             
Accounts payable                                                         
Accounts receivable, inventories and       (7.3)          (11.1)         
accounts payable
Employee compensation liabilities          5.8            (32.5)         
Employee benefit obligations                                             
Accrued expenses and other liabilities                                   
Other assets and liabilities               (4.0)          (23.1)         
Other                                      (2.2)          4.1            
Net cash provided by operating activities  187.3          101.7          
                                                                        
INVESTING ACTIVITIES                                                     
Capital expenditures                       (74.0)         (64.9)         
Proceeds from disposal of fixed assets     15.5           11.7           
Purchases of investments                   (78.6)         (195.8)        
Liquidations of investments                62.1           466.1          
Proceeds from IDEO ownership transition    —              —              
Acquisitions, net of cash acquired         (6.2)          (20.9)         
Other                                      (4.3)          7.0            
Net cash provided by (used in) investing   (85.5)         203.2          
activities
                                                                        
FINANCING ACTIVITIES                                                     
Borrowings of long-term debt, net of                                     
issuance costs
Repayments of long-term debt               (2.6)          (255.5)        
Borrowings of lines of credit                                            
Repayments of lines of credit                                            
Dividends paid                             (45.8)         (31.7)         
Common stock repurchases                   (19.9)         (47.7)         
Excess tax benefit from vesting of stock                                 
awards
Other                                      4.1            0.6            
Net cash provided by (used in) financing   (64.2)         (334.3)        
activities
                                                                        
Effect of exchange rate changes on cash    0.7            (0.7)          
and cash equivalents
                                                                        
Net increase (decrease) in cash and cash   38.3           (30.1)         
equivalents
Cash and cash equivalents, beginning of    112.1          142.2          
period
Cash and cash equivalents, end of period   $150.4        $112.1        
                                                                        
Supplemental Cash Flow Information:                                      
Income taxes paid, net of refunds received                               
Interest paid, net of amounts capitalized                                
                                                                        
* The condensed consolidated statements of cash flows for the year ended
February 24, 2012 has been restated to reflect errors in deferred income   
taxes which relate to periods prior to fiscal year 2010.

Contact: Investor Contact:
         Raj Mehan
         Investor Relations
         (616) 246-4251

         Media Contact:
         Lauren Begley
         Public Relations
         (212) 931-6143

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