Steelcase Reports Fourth Quarter Results

Steelcase Reports Fourth Quarter Results

         Americas Momentum Continues to Drive Strong Operating Margin

Fourth Quarter Orders Reflect Broad-Based Growth; Quarterly Dividend Increased

GRAND RAPIDS, Mich., March 25, 2014 (GLOBE NEWSWIRE) -- Steelcase Inc.
(NYSE:SCS) today reported fourth quarter revenue of $779.4 million and net
income of $23.9 million, or diluted earnings per share of $0.19. Excluding net
restructuring benefits, adjusted earnings were $0.18 per share. Steelcase
reported $721.4 million of revenue and a diluted loss per share of $0.22 in
the fourth quarter of the prior year. Excluding restructuring costs and
goodwill impairment charges, adjusted earnings were $0.28 per share in the
prior year.Prior year results also included foreign tax credit benefits, tax
valuation allowance adjustments and environmental reserve adjustments, which
had the aggregate net effect of increasing earnings by approximately $0.10 per
share.

Organic revenue growth over the prior year was 2 percent after adjusting for
approximately $42.0 million associated with an extra week of shipments in the
current quarter.The Americas and Other category, driven largely by Asia
Pacific, posted organic revenue growth of 6 percent and 11 percent
respectively, compared to the prior year.Revenue in the Americas continues to
reflect a higher mix of project business from some of the company's largest
corporate customers compared to the prior year.The EMEA segment posted an
organic revenue decline of 13 percent compared to the prior year, which
included revenue from several large projects.

Current quarter operating income of $54.2 million compares to an operating
loss of $45.2 million in the prior year.Fourth quarter adjusted operating
income of $51.4 million (or 6.6 percent of revenue) improved significantly
compared with adjusted operating income of $34.6 million (or 4.8 percent of
revenue) in the prior year.The improvement was driven by strength in the
Americas, lower Corporate costs and improved results in the Other category,
partially offset by continued weakness in EMEA.

"The Americas segment continues to deliver exemplary performance, realizing an
adjusted operating margin of 11.5 percent in the fourth quarter and for fiscal
2014 and gaining market share in the U.S. for the third consecutive year,"
said James P. Keane, president and CEO."Our investment in research and our
ability to monetize our insights through new products and applications are
helping to drive these strong results."

Cost of sales improved 100 basis points to 68.6 percent of revenue in the
current quarter compared to 69.6 percent in the prior year.Cost of sales in
the Americas improved by 200 basis points while cost of sales in EMEA
increased by 330 basis points.The improvement in the Americas was driven by
favorable business mix, higher absorption of fixed costs associated with the
organic revenue growth (including benefits of improved pricing) and various
cost reduction efforts.The increase in cost of sales for EMEA was driven by
approximately $4 million of costs associated with changes in the EMEA
manufacturing footprint, lower absorption of fixed costs associated with the
organic revenue decline (including higher competitive discounting) and
unfavorable business mix.The current quarter results in EMEA also included a
favorable adjustment to accrued expenses compared to an unfavorable adjustment
to warranty reserves in the prior year.

Operating expenses in the fourth quarter were $193.2 million compared with
$184.5 million in the prior year.Beyond the extra week of operating costs of
approximately $10.3 million in the current quarter, the year-over-year
comparison was also impacted by higher spending in the Americas and higher
variable compensation expense.Offsetting these increases were the benefits of
restructuring activities and other cost reduction efforts in EMEA compared to
the prior year.In addition, Corporate costs in the prior year included $3.6
million in environmental reserve adjustments.

Other income (expense), net in the fourth quarter of $(5.4) million compared
to $2.4 million in the prior year.The current quarter included $6.0 million
of charges related to a minority equity investment and $2.9 million of foreign
exchange losses compared to small foreign exchange gains in the prior year.

Income tax expense of $20.7 million in the current quarter included
approximately $3 million of additional tax valuation allowance adjustments and
other discrete charges and resulted in an overall effective tax rate of
approximately 46 percent for the fourth quarter.

"The unfavorable impacts of the non-operating items and tax adjustments
recorded this quarter were reduced by lower than expected variable
compensation expense linked to those charges and the deferral of an expected
facility sale and related gain from the fourth quarter to the first quarter of
fiscal 2015," said David C. Sylvester, senior vice president and CFO.
"Setting aside the lower variable compensation expense associated with these
items, adjusted operating income was otherwise better than expected."

Cash, short-term investments and the cash surrender value of company-owned
life insurance totaled $476 million and total debt was $287 million at the end
of the fourth quarter.

In the fourth quarter, the company repurchased approximately 1.2 million
shares under its share repurchase authorization program at a total cost of
$16.9 million and paid a cash dividend of $0.10 per share.The Board of
Directors today declared a cash dividend of $0.105 per share, to be paid on or
before April 14, 2014 to shareholders of record as of April 4, 2014.

Fiscal 2014 Results

For fiscal 2014, the company recorded $3.0 billion of revenue and net income
of $87.7 million, or diluted earnings per share of $0.69.Adjusted earnings
per share were $0.82. In fiscal 2013, the company recorded $2.9 billion of
revenue and net income of $38.8 million, or diluted earnings per share of
$0.30.Adjusted earnings per share were $0.88.Fiscal 2013 results also
included foreign tax credit benefits, tax valuation allowance adjustments and
environmental reserve adjustments that had the aggregate net effect of
increasing earnings by approximately $0.10 per share.

Organic revenue growth in fiscal 2014 was 2 percent, which compared to 5
percent in fiscal 2013.The Americas and the Other category, driven by
PolyVision, posted organic revenue growth of 5 percent and 2 percent,
respectively, while EMEA experienced an 8 percent organic revenue
decline.Operating income of $165.9 million for fiscal 2014 compares to
operating income of $59.3 million in fiscal 2013.Adjusted operating income
grew 20 percent to $185.4 million in fiscal 2014 as compared to $153.9 million
in the prior year.

"Adjusted operating income in the Americas improved 170 basis points to 11.5
percent of revenue in fiscal 2014 compared to fiscal 2013," said Mr.
Sylvester."However, EMEA posted its third consecutive annual adjusted
operating loss this year.We remain focused on the implementation of our
multi-year strategy necessary to safeguard our global competitiveness and
restore profitability in this region."

The company repurchased approximately 3.2 million shares under its share
repurchase authorization program during fiscal 2014 at a cost of $43.3 million
and paid $50.2 million in quarterly dividends.Approximately $93 million
remained under the company's share repurchase authorization program as of the
end of fiscal 2014.

Outlook

In the Americas, fourth quarter order growth, excluding an estimate for the
extra week, approximated 5 percent (driven by strength in February), and
customer order backlog at the end of the fourth quarter increased
approximately 18 percent compared to the prior year.EMEA fourth quarter
orders grew approximately 3 percent (driven by strength in February) and
customer order backlog at the end of the fourth quarter increased
approximately 26 percent compared to the prior year.Fourth quarter orders
were also strong at PolyVision and across Asia Pacific.The company expects
first quarter fiscal 2015 revenue to be in the range of $715 to $740 million,
which reflects expected organic revenue growth in the range of 7 to 11 percent
over the prior year.The company reported revenue of $667.1 million in the
first quarter of fiscal 2014.

Steelcase expects to report diluted earnings per share between $0.12 to $0.15
per share for the first quarter of fiscal 2015.The company expects to report
adjusted earnings per share between $0.14 to $0.17, reflecting restructuring
costs associated with EMEA actions announced in Q3 2014, offset in part by an
expected gain associated with a pending facility sale.In addition, the
estimate for earnings includes approximately $5 million of operating costs
associated with changes in the EMEA manufacturing footprint, approximately $3
million of incremental variable compensation expense associated with the
pending facility sale gain and an estimated effective tax rate of
approximately 44 percent.Steelcase reported diluted earnings per share of
$0.10 in the first quarter of fiscal 2014 and adjusted earnings per share of
$0.13.

"Steelcase serves leading organizations who share our view that the strategic
use of space helps companies stay ahead," Mr. Keane said. "Our customers look
to us for help in striking the balance between open floor plans and quiet
spaces, or between mobile work and collaboration in the office. Our new V.I.A.
architectural portfolio is the most recent example of how we have translated
our insights into solutions that give people choice and control over where and
how they work."

Business Segment Results
(in millions)
                                                                   
            (Unaudited)                      (Unaudited)               
            Three Months Ended               Twelve Months Ended       
            February28, February22, %       February28, February22, %
            2014         2013         Change 2014         2013         Change
                                                                   
Revenue                                                             
Americas (1) $558.4     $492.9     13.3%   $2,154.4   $2,015.1   6.9%
EMEA (2)     149.8        168.5        (11.1)% 566.9        594.8        (4.7)%
Other (3)    71.2         60.0         18.7%   267.6        258.8        3.4%
Consolidated $ 779.4      $ 721.4      8.0%    $2,988.9   $2,868.7   4.2%
revenue
Operating
income                                                              
(loss)
Americas     $63.8      $34.3             $247.4     $168.3     
EMEA         (2.3)        (38.5)              (31.4)       (50.9)       
Other        1.9          (25.0)              (8.7)        (20.1)       
Corporate    (9.2)        (16.0)              (41.4)       (38.0)       
(4)
Consolidated
operating    $54.2      $ (45.2)            $165.9     $59.3      
income
(loss)
                                                                   
Operating
income       7.0%         (6.3)%              5.6%         2.1%         
(loss)
percent
Revenue Mix                                                         
Americas (1) 71.7%        68.3%               72.1%        70.2%        
EMEA (2)     19.2%        23.4%               19.0%        20.8%        
Other (3)    9.1%         8.3%                8.9%         9.0%         


Business Segment Footnotes
1. The Americas segment serves customers in the U.S., Canada and Latin
America with a portfolio of integrated architecture, furniture and technology
products marketed to corporate, government, healthcare, education and retail
customers through the Steelcase, Coalesse, Details, Nurture by Steelcase and
Turnstone brands.
2. The EMEA segment serves customers in Europe, the Middle East and Africa
primarily under the Steelcase and Coalesse brands, with an emphasis on
freestanding furniture systems, storage and seating solutions.
3. The Other category includes Asia Pacific, Designtex and PolyVision.
4. Corporate expenses include unallocated portions of shared services
functions such as information technology, human resources, finance, executive,
corporate facilities, legal and research.

YEAR OVER YEAR ORGANIC REVENUE GROWTH (DECLINE) BY SEGMENT
Q4 2014 vs. Q4 2013
                       Steelcase Inc.    Americas      EMEA        Other
                                                                    category
                                                                
Q4 2013 revenue         $721.4          $492.9      $168.5    $60.0
Dealer divestiture      (1.2)             —             (1.2)       —
Currency translation    1.4               (2.5)         5.0         (1.1)
effects*
Q4 2013 revenue,       721.6             490.4         172.3       58.9
adjusted
                                                                
Q4 2014 revenue         779.4             558.4         149.8       71.2
Impact of additional    (42.0)            (36.2)        —           (5.8)
week
Q4 2014 revenue,       737.4             522.2         149.8       65.4
adjusted
Organic growth          $15.8           $31.8       $ (22.5)    $6.5
(decline) $
Organic growth          2%                6%            (13)%       11%
(decline) %
                                                                
* Currency translation effects represent the estimated net effect of
translating Q4 2013 foreign currency revenues using the average exchange rates
during Q4 2014.


YEAR OVER YEAR ORGANIC REVENUE GROWTH (DECLINE) BY SEGMENT
2014 vs. 2013
                       Steelcase Inc.    Americas      EMEA        Other
                                                                    category
                                                                
2013 revenue            $2,868.7        $2,015.1    $594.8    $258.8
Dealer divestiture      (6.3)             —             (6.3)       —
Currency translation    7.4               (6.3)         15.9        (2.2)
effects*
2013 revenue, adjusted  2,869.8           2,008.8       604.4       256.6
                                                                
2014 revenue            2,988.9           2,154.4       566.9       267.6
Dealer acquisitions     (11.4)            —             (11.4)      —
Impact of additional    (42.0)            (36.2)        —           (5.8)
week
2014 revenue, adjusted  2,935.5           2,118.2       555.5       261.8
Organic growth          $65.7           $109.4      $ (48.9)    $5.2
(decline) $
Organic growth          2%                5%            (8)%        2%
(decline) %
                                                                
* Currency translation effects represent the estimated net effect of
translating 2013 foreign currency revenues using the average exchange rates
during 2014.


PROJECTED ORGANIC REVENUE GROWTH
Q1 2015 vs. Q1 2014
                       Steelcase Inc.                            
                                                                
Q1 2014 revenue         $667                                    
Currency translation    2                                         
effects*
Q1 2014 revenue,       669                                       
adjusted
                                                                
Q1 2015 revenue,        715 - 740                                 
projected
Currency translation    —                                         
effects
Q1 2015 projected      715 - 740                                 
revenue, adjusted
Organic growth $       $46 - 71                                 
Organic growth %        7% - 11%                                  
                                                                
* Currency translation effects represent the estimated net effect of
translating Q1 2014 foreign currency revenues using the exchange rate at the
end of Q4 2014.
                                                                

STEELCASE INC.
ADJUSTED EARNINGS PER      (Unaudited)               (Unaudited)
SHARE
                          Three Months Ended        Twelve Months Ended
                          February28, February22, February28, February22,
                          2014         2013         2014         2013
                                                              
Diluted earnings (loss)    $0.19      $ (0.22)     $0.69      $0.30
per share
Restructuring costs
(benefits) per share, net  (0.01)       0.10         0.03         0.18
of tax
Goodwill and intangible    —            0.40         0.10         0.40
asset impairment charges
Diluted earnings per       $0.18      $0.28      $0.82      $0.88
share, adjusted
                                                              
                                                              

Steelcase Inc.
             (Unaudited)                     (Unaudited)
             Three Months Ended              Twelve Months Ended
             February28,    February22,    February28,      February22,
             2014            2013            2014              2013
Revenue       $779.4 100.0% $721.4 100.0% $2,988.9 100.0% $2,868.7 100.0%
Cost of sales 534.8    68.6   502.3    69.6   2,046.5    68.5   1,987.8    69.3
Restructuring
costs         (3.8)    (0.5)  3.1      0.5    (2.8)      (0.1)  14.9       0.5
(benefits)
Gross profit  248.4    31.9   216.0    29.9   945.2      31.6   866.0      30.2
Operating     193.2    24.8   184.5    25.6   757.0      25.3   727.0      25.3
expenses
Goodwill and
intangible
asset         —        —      59.9     8.3    12.9       0.4    59.9       2.1
impairment
charges
Restructuring 1.0      0.1    16.8     2.3    9.4        0.3    19.8       0.7
costs
Operating     $54.2  7.0%   $ (45.2) (6.3)% $165.9   5.6%   $59.3    2.1%
income (loss)
Interest
expense,
investment    (9.6)    (1.3)  (1.9)    (0.2)  (18.7)     (0.6)  (4.4)      (0.2)
income and
other income,
net
Income before
income tax    44.6     5.7    (47.1)   (6.5)  147.2      5.0    54.9       1.9
expense
(benefit)
Income tax
expense       20.7     2.6    (19.6)   (2.7)  59.5       2.0    16.1       0.5
(benefits)
Net income    $23.9  3.1%   $ (27.5) (3.8)% $87.7    3.0%   $38.8    1.4%
(loss)
                                                                   
Operating     $54.2  7.0%   $ (45.2) (6.3)% $165.9   5.6%   $59.3    2.1%
income (loss)
Add: goodwill
and
intangible    —        —      59.9     8.3    12.9       0.4    59.9       2.1
asset
impairment
charges
Add:
restructuring (2.8)    (0.4)  19.9     2.8    6.6        0.2    34.7       1.2
costs
(benefits)
Adjusted
operating     $51.4  6.6%   $34.6  4.8%   $185.4   6.2%   $153.9   5.4%
income
                                                                   

Americas
             (Unaudited)                     (Unaudited)
             Three Months Ended              Twelve Months Ended
             February28,    February22,    February28,      February22,
             2014            2013            2014              2013
Revenue       $558.4 100.0% $492.9 100.0% $2,154.4 100.0% $2,015.1 100.0%
Cost of sales 372.3    66.7   338.7    68.7   1,438.2    66.8   1,384.4    68.7
Restructuring 0.7      0.1    2.5      0.5    0.7        —      13.9       0.7
costs
Gross profit  185.4    33.2   151.7    30.8   715.5      33.2   616.8      30.6
Operating     121.8    21.8   104.5    21.2   467.1      21.7   433.8      21.5
expenses
Goodwill and
intangible
asset         —        —      —        —      —          —      —          —
impairment
charges
Restructuring
costs         (0.2)    —      12.9     2.6    1.0        0.1    14.7       0.7
(benefits)
Operating     $63.8  11.4%  $34.3  7.0%   $247.4   11.4%  $168.3   8.4%
income
Add: goodwill
and
intangible    —        —      —        —      —          —      —          —
asset
impairment
charges
Add:
restructuring 0.5      0.1    15.4     3.1    1.7        0.1    28.6       1.4
costs
Adjusted
operating     $64.3  11.5%  $49.7  10.1%  $249.1   11.5%  $196.9   9.8%
income
                                                                   

EMEA
             (Unaudited)                      (Unaudited)
             Three Months Ended               Twelve Months Ended
             February28,    February22,     February28,    February22,
             2014            2013             2014            2013
Revenue       $149.8 100.0% $168.5 100.0%  $566.9 100.0% $594.8 100.0%
Cost of sales 115.0    76.8   123.8    73.5    429.5    75.8   434.0    73.0
Restructuring
costs         (4.6)    (3.1)  0.6      0.4     (3.6)    (0.6)  1.0      0.2
(benefits)
Gross profit  39.4     26.3   44.1     26.1    141.0    24.8   159.8    26.8
Operating     40.5     27.0   43.9     26.0    164.2    29.0   171.6    28.8
expenses
Goodwill and
intangible
asset         —        —      35.1     20.8    —        —      35.1     5.9
impairment
charges
Restructuring 1.2      0.8    3.6      2.1     8.2      1.4    4.0      0.7
costs
Operating     $ (2.3)  (1.5)% $ (38.5) (22.8)% $ (31.4) (5.6)% $ (50.9) (8.6)%
income (loss)
Add: goodwill
and
intangible    —        —      35.1     20.8    —        —      35.1     5.9
asset
impairment
charges
Add:
restructuring (3.4)    (2.3)  4.2      2.5     4.6      0.8    5.0      0.9
costs
(benefits)
Adjusted
operating     $ (5.7)  (3.8)% $0.8   0.5%    $ (26.8) (4.8)% $ (10.8) (1.8)%
income (loss)
                                                                

Other category
              (Unaudited)                     (Unaudited)
              Three Months Ended              Twelve Months Ended
              February28,   February22,     February28,    February22,
              2014           2013             2014            2013
Revenue        $71.2 100.0% $60.0  100.0%  $267.6 100.0% $258.8 100.0%
Cost of sales  47.5    66.7   39.8     66.4    178.8    66.8   169.4    65.5
Restructuring  0.1     0.1    —        —       0.1      —      —        —
costs
Gross profit   23.6    33.2   20.2     33.6    88.7     33.2   89.4     34.5
Operating      21.7    30.5   20.1     33.5    84.3     31.5   83.6     32.3
expenses
Goodwill and
intangible
asset          —       —      24.8     41.3    12.9     4.8    24.8     9.6
impairment
charges
Restructuring  —       —      0.3      0.5     0.2      0.1    1.1      0.4
costs
Operating      $1.9   2.7%   $(25.0) (41.7)% $(8.7)  (3.2)% $(20.1) (7.8)%
income (loss)
Add: goodwill
and intangible
asset          —       —      24.8     41.3    12.9     4.8    24.8     9.6
impairment
charges
Add:
restructuring  0.1     0.1    0.3      0.5     0.3      0.1    1.1      0.4
costs
Adjusted
operating      $2.0  2.8%   $0.1   0.1%    $4.5   1.7%   $5.8   2.2%
income
                                                                

Corporate
                          (Unaudited)               (Unaudited)
                          Three Months Ended        Twelve Months Ended
                          February28, February22, February28, February22,
                          2014         2013         2014         2013
Operating loss             $ (9.2)      $ (16.0)     $ (41.4)     $ (38.0)
Add: goodwill and
intangible assets          —            —            —            —
impairment charges
Add: restructuring costs   —            —            —            —
Adjusted operating loss    $ (9.2)      $ (16.0)     $ (41.4)     $ (38.0)
                                                              

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, the impacts of acquisitions
and divestitures and an additional week of revenue in the fourth quarter of
2014; (2) adjusted operating income (loss), which represents operating income
(loss), excluding restructuring costs (benefits) and goodwill and intangible
asset impairment charges; and (3) adjusted earnings (loss) per share, which
represents earnings (loss) per share, excluding restructuring costs (benefits)
and goodwill and intangible asset impairment charges, net of tax.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 over 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®, Details®, Designtex®,
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 over 800 dealer locations.
Steelcase is a global, industry-leading and publicly traded company with
fiscal 2014 revenue of $3.0 billion.

STEELCASE INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Unaudited)
(in millions, except per share data)
                                                              
                          Three Months Ended        Twelve Months Ended
                          February28, February22, February28, February22,
                          2014         2013         2014         2013
Revenue                    $779.4     $721.4     $2,988.9   $2,868.7
Cost of sales              534.8        502.3        2,046.5      1,987.8
Restructuring costs        (3.8)        3.1          (2.8)        14.9
(benefits)
Gross profit               248.4        216.0        945.2        866.0
Operating expenses         193.2        184.5        757.0        727.0
Goodwill and intangible    —            59.9         12.9         59.9
asset impairment charges
Restructuring costs        1.0          16.8         9.4          19.8
Operating income (loss)    54.2         (45.2)       165.9        59.3
Interest expense           (4.5)        (4.5)        (17.8)       (17.8)
Investment income (loss)   0.3          0.2          (0.3)        3.7
Other income (expense),    (5.4)        2.4          (0.6)        9.7
net
Income (loss) before       44.6         (47.1)       147.2        54.9
income tax expense
Income tax expense         20.7         (19.6)       59.5         16.1
(benefit)
Net income (loss)          $23.9      $ (27.5)     $87.7      $38.8
                                                              
Earnings (loss) per share:                                     
Basic                      $0.19      $ (0.22)     $0.70      $0.30
Diluted                    $0.19      $ (0.22)     $0.69      $0.30
Weighted average shares    125.8        127.1        126.0        127.4
outstanding - basic
Weighted average shares    127.2        127.1        127.3        129.1
outstanding - diluted
                                                              
Dividends declared and     $0.10      $0.09      $0.40      $0.36
paid per common share
                                                              

STEELCASE INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(in millions, except share data)

                                                    February28, February22,
                                                    2014         2013
ASSETS                                                           
Current assets:                                                  
Cash and cash equivalents                            $201.8     $150.4
Short-term investments                               119.5        100.5
Accounts receivable, net                             306.8        287.3
Inventories                                          151.5        137.5
Deferred income taxes                                56.0         56.2
Other current assets                                 54.3         46.7
Total current assets                                 889.9        778.6
                                                                
Property, plant and equipment, net                   377.0        353.2
Company-owned life insurance                         154.3        225.8
Deferred income taxes                                85.1         101.7
Goodwill                                             108.1        121.4
Other intangible assets, net                         16.6         19.2
Other assets                                         95.7         89.7
Total assets                                         $1,726.7   $1,689.6
                                                                
LIABILITIES AND SHAREHOLDERS' EQUITY                             
Current liabilities:                                             
Accounts payable                                     $212.5     $198.6
Short-term borrowings and current portion of         2.6          2.6
long-term debt
Accrued expenses:                                                
Employee compensation                                152.8        129.4
Employee benefit plan obligations                    26.1         23.8
Other                                                144.2        130.4
Total current liabilities                            538.2        484.8
                                                                
Long-term liabilities:                                           
Long-term debt less current maturities               284.4        286.4
Employee benefit plan obligations                    151.1        158.0
Other long-term liabilities                          75.9         92.4
Total long-term liabilities                          511.4        536.8
Total liabilities                                    1,049.6      1,021.6
                                                                
Shareholders' equity:                                            
Common stock                                         —            —
Additional paid-in capital                           —            27.2
Accumulated other comprehensive income (loss)        0.8          (4.2)
Retained earnings                                    676.3        645.0
Total shareholders' equity                           677.1        668.0
Total liabilities and shareholders' equity           $1,726.7   $1,689.6
                                                                

STEELCASE INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited)
(in millions)
                                                                
                                                    Twelve Months Ended
                                                    February28, February22,
                                                    2014         2013
OPERATING ACTIVITIES                                             
Net income                                           $87.7      $38.8
Depreciation and amortization                        60.0         58.3
Changes in cash surrender value of company-owned     (3.0)        1.8
life insurance (COLI)
Deferred income taxes                                14.1         (3.0)
Goodwill and intangible asset impairment charges     12.9         59.9
Restructuring costs                                  6.6          34.7
Non-cash stock compensation                          16.8         9.6
Changes in operating assets and liabilities, net of              
acquisitions and divestiture:
Accounts receivable, inventories and accounts        (16.1)       (7.3)
payable
Employee compensation liabilities                    5.5          5.8
Other assets and liabilities                         (6.8)        (9.1)
Other                                                1.1          (2.2)
Net cash provided by operating activities            178.8        187.3
                                                                
INVESTING ACTIVITIES                                             
Capital expenditures                                 (86.8)       (74.0)
Proceeds from disposal of fixed assets               9.5          15.5
Purchases of investments                             (146.7)      (78.6)
Liquidations of investments                          122.3        62.6
Liquidations of variable life COLI investments       74.5         —
Other                                                2.0          (11.0)
Net cash used in investing activities                25.2         (85.5)
                                                                
FINANCING ACTIVITIES                                             
Dividends paid                                       (50.2)       (45.8)
Common stock repurchases                             (49.9)       (19.9)
Other                                                (1.5)        1.5
Net cash used in financing activities                (101.6)      (64.2)
                                                                
Effect of exchange rate changes on cash and cash     (0.6)        0.7
equivalents
                                                                
Net increase in cash and cash equivalents            51.4         38.3
Cash and cash equivalents, beginning of period       150.4        112.1
Cash and cash equivalents, end of period             $201.8     $150.4
                                                                

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

         Media Contact:
         Lauren Parker
         Corporate Communications
         (212) 931 - 6143

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