MILLERKNOLL INC
For the period ended Dec 2, 2023. Filed Jan 10, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 2, 2023 · Filed Jan 10, 2024
MLKN$21.94-1.7%Stored close · as of Nov 10, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Item 1. Financial Statements (Unaudited)
| Condensed Consolidated Statements of Comprehensive Income — Three and Six Months Ended December 2, 2023 and December 3, 2022 | 3 |
|---|---|
| Condensed Consolidated Balance Sheets — December 2, 2023 and June 3, 2023 | 4 |
| Condensed Consolidated Statements of Cash Flows — Six Months Ended December 2, 2023 and December 3, 2022 | 5 |
| Condensed Consolidated Statements of Stockholders' Equity — Six Months Ended December 2, 2023 and December 3, 2022 | 6 |
| Notes to Condensed Consolidated Financial Statements | |
| Note 1 - Description of Business and Basis of Presentation | 8 |
| Note 2 - Recently Issued Accounting Standards | 8 |
| Note 3 - Revenue from Contracts with Customers | 9 |
| Note 4 - Acquisitions | 10 |
| Note 5 - Inventories, net | 12 |
| Note 6 - Goodwill and Indefinite-Lived Intangibles | 13 |
| Note 7 - Employee Benefit Plans | 14 |
| Note 8 - Earnings Per Share | 15 |
| Note 9 - Stock-Based Compensation | 15 |
| Note 10 - Income Taxes | 15 |
| Note 11 - Fair Value Measurements | 16 |
| Note 12 - Commitments and Contingencies | 19 |
| Note 13 - Short-Term Borrowings and Long-Term Debt | 20 |
| Note 14 - Accumulated Other Comprehensive Loss | 21 |
| Note 15 - Operating Segments | 21 |
| Note 16 - Restructuring and Integration Expense | 22 |
| Note 17 - Variable Interest Entities | 24 |
| Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations | 25 |
| Item 3 Quantitative and Qualitative Disclosures about Market Risk | 40 |
| Item 4 Controls and Procedures | 41 |
| Part II — Other Information | |
| Item 1 Legal Proceedings | 42 |
| Item 1A Risk Factors | 42 |
| Item 2 Unregistered Sales of Equity Securities and Use of Proceeds | 42 |
| Item 5 Other Information | 42 |
| Item 6 Exhibits | 42 |
| Signatures | 44 |
PART I - FINANCIAL INFORMATION
Condensed Consolidated Statements of Comprehensive Income
| (Dollars in millions, except share data) | Three Months Ended | Six Months Ended | ||
|---|---|---|---|---|
| (Unaudited) | December 2, 2023 | December 3, 2022 | December 2, 2023 | December 3, 2022 |
| Net sales | $949.5 | $1,066.9 | $1,867.2 | $2,145.7 |
| Cost of sales | 577.5 | 699.3 | 1,137.1 | 1,406.0 |
| Gross margin | 372.0 | 367.6 | 730.1 | 739.7 |
| Operating expenses: | ||||
| Selling, general and administrative | 287.6 | 290.8 | 578.1 | 587.7 |
| Restructuring expense | 1.8 | 14.7 | 7.0 | 15.2 |
| Design and research | 22.2 | 23.4 | 44.3 | 47.3 |
| Total operating expenses | 311.6 | 328.9 | 629.4 | 650.2 |
| Operating earnings | 60.4 | 38.7 | 100.7 | 89.5 |
| Interest expense | 19.8 | 18.3 | 39.0 | 35.0 |
| Interest and other investment (income) expense | (1.3) | (0.7) | (3.5) | (1.1) |
| Other (income) expense, net | (2.4) | (0.5) | (0.2) | 0.3 |
| Earnings before income taxes and equity income | 44.3 | 21.6 | 65.4 | 55.3 |
| Income tax expense | 9.5 | 4.3 | 14.6 | 10.6 |
| Equity (loss) income from nonconsolidated affiliates, net of tax | (0.4) | 0.2 | (0.3) | 0.2 |
| Net earnings | 34.4 | 17.5 | 50.5 | 44.9 |
| Net earnings attributable to redeemable noncontrolling interests | 0.9 | 1.5 | 0.3 | 3.1 |
| Net earnings attributable to MillerKnoll, Inc. | $33.5 | $16.0 | $50.2 | $41.8 |
| Earnings per share - basic | $0.45 | $0.21 | $0.67 | $0.55 |
| Earnings per share - diluted | $0.45 | $0.21 | $0.67 | $0.55 |
| Other comprehensive (loss) income, net of tax | ||||
| Foreign currency translation adjustments | $7.3 | $44.2 | $11.2 | $(28.3) |
| Pension and post-retirement liability adjustments | — | 0.4 | (0.1) | 0.8 |
| Unrealized (loss) gain on interest rate swap agreement | (7.9) | 7.2 | (0.1) | 21.5 |
| Other comprehensive (loss) income, net of tax | $(0.6) | $51.8 | $11.0 | $(6.0) |
| Comprehensive income | 33.8 | 69.3 | 61.5 | 38.9 |
| Comprehensive income attributable to redeemable noncontrolling interests | 0.9 | 1.4 | 0.3 | 3.1 |
| Comprehensive income attributable to MillerKnoll, Inc. | $32.9 | $67.9 | $61.2 | $35.8 |
Condensed Consolidated Balance Sheets
| (Dollars in millions, except share data) | ||
|---|---|---|
| (Unaudited) | December 2, 2023 | June 3, 2023 |
| ASSETS | ||
| Current Assets: | ||
| Cash and cash equivalents | $225.8 | $223.5 |
| Accounts receivable, net of allowance of $9.5 and $6.4 | 319.9 | 334.1 |
| Unbilled accounts receivable | 24.9 | 29.4 |
| Inventories, net | 448.2 | 487.4 |
| Prepaid expenses | 82.0 | 92.7 |
| Assets held for sale | 4.6 | — |
| Other current assets | 8.9 | 9.1 |
| Total current assets | 1,114.3 | 1,176.2 |
| Property and equipment, at cost | 1,578.6 | 1,570.7 |
| Less — accumulated depreciation | (1,060.7) | (1,034.4) |
| Net property and equipment | 517.9 | 536.3 |
| Right of use assets | 382.5 | 415.9 |
| Goodwill | 1,227.6 | 1,221.7 |
| Indefinite-lived intangibles | 482.7 | 480.7 |
| Other amortizable intangibles, net of accumulated amortization of $205.0 and $185.2 | 297.0 | 313.1 |
| Other noncurrent assets | 133.5 | 130.9 |
| Total Assets | $4,155.5 | $4,274.8 |
| LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS & STOCKHOLDERS' EQUITY | ||
| Current Liabilities: | ||
| Accounts payable | $250.7 | $269.5 |
| Short-term borrowings and current portion of long-term debt | 38.8 | 33.4 |
| Accrued compensation and benefits | 95.8 | 61.7 |
| Short-term lease liability | 76.1 | 77.1 |
| Accrued warranty | 18.8 | 20.8 |
| Customer deposits | 92.9 | 93.8 |
| Other accrued liabilities | 140.7 | 146.5 |
| Total current liabilities | 713.8 | 702.8 |
| Long-term debt | 1,278.2 | 1,365.1 |
| Pension and post-retirement benefits | 7.7 | 7.5 |
| Lease liabilities | 360.7 | 393.7 |
| Other liabilities | 264.9 | 265.5 |
| Total Liabilities | 2,625.3 | 2,734.6 |
| Redeemable noncontrolling interests | 109.6 | 107.6 |
| Stockholders' Equity: | ||
| Preferred stock, no par value (10,000,000 shares authorized, none issued) | — | — |
| Common stock, $0.20 par value (240,000,000 shares authorized, 73,077,659 and 75,698,670 shares issued and outstanding in fiscal 2024 and 2023, respectively) | 14.6 | 15.1 |
| Additional paid-in capital | 791.5 | 836.5 |
| Retained earnings | 698.6 | 676.1 |
| Accumulated other comprehensive loss | (84.1) | (95.1) |
| Total Stockholders' Equity | 1,420.6 | 1,432.6 |
| Total Liabilities, Redeemable Noncontrolling Interests, and Stockholders' Equity | $4,155.5 | $4,274.8 |
Condensed Consolidated Statements of Cash Flows
| (Dollars in millions) | Six Months Ended | |
|---|---|---|
| (Unaudited) | December 2, 2023 | December 3, 2022 |
| Cash Flows from Operating Activities: | ||
| Net earnings | $50.5 | $44.9 |
| Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||
| Depreciation and amortization | 74.6 | 77.7 |
| Stock-based compensation | 11.7 | 10.9 |
| Amortization of deferred financing costs | 2.3 | 2.3 |
| Loss on sale of equity method investment | 0.4 | — |
| Deferred taxes | (0.3) | (0.3) |
| Restructuring expense | 7.0 | 15.2 |
| Decrease (increase) in current assets | 71.0 | (34.7) |
| (Decrease) in current liabilities | (1.7) | (111.9) |
| Other, net | (2.1) | (9.4) |
| Net Cash Provided by (Used in) Operating Activities | 213.4 | (5.3) |
| Cash Flows from Investing Activities: | ||
| Notes receivables issued | (7.1) | (4.5) |
| Proceeds from the sale of equity method investment | 3.5 | — |
| Capital expenditures | (39.9) | (40.3) |
| Proceeds from loan on cash surrender value of life insurance | — | 13.5 |
| Other, net | 2.2 | (0.7) |
| Net Cash (Used in) Investing Activities | (41.3) | (32.0) |
| Cash Flows from Financing Activities: | ||
| Repayments of long-term debt | (13.1) | (13.1) |
| Proceeds from credit facility | 386.1 | 559.3 |
| Repayments of credit facility | (457.8) | (492.3) |
| Dividends paid | (28.1) | (28.4) |
| Common stock issued | 1.9 | 2.5 |
| Common stock repurchased and retired | (60.0) | (14.3) |
| Other, net | 0.2 | (2.1) |
| Net Cash (Used in) Provided by Financing Activities | (170.8) | 11.6 |
| Effect of Exchange Rate Changes on Cash and Cash Equivalents | 1.0 | (7.1) |
| Net Increase (Decrease) in Cash and Cash Equivalents | 2.3 | (32.8) |
| Cash and Cash Equivalents, Beginning of Period | 223.5 | 230.3 |
| Cash and Cash Equivalents, End of Period | $225.8 | $197.5 |
Condensed Consolidated Statements of Stockholders' Equity
| Six Months Ended December 2, 2023 | |||||||
|---|---|---|---|---|---|---|---|
| (Dollars in millions, except share data) · Common Stock · Additional Paid-in Capital · Retained Earnings · Accumulated Other Comprehensive Loss · Deferred Compensation Plan · MillerKnoll, Inc. Stockholders' Equity | |||||||
| (Unaudited) · Shares · Amount | |||||||
| June 3, 2023 | 75,698,670 | $15.1 | $836.5 | $676.1 | $(95.1) | $— | $1,432.6 |
| Net earnings | — | — | — | 16.7 | — | — | 16.7 |
| Other comprehensive income, net of tax | — | — | — | — | 11.6 | — | 11.6 |
| Stock-based compensation expense | (983) | — | 6.4 | — | — | — | 6.4 |
| Restricted and performance stock units released | 332,566 | 0.1 | 0.1 | — | — | — | 0.2 |
| Employee stock purchase plan issuances | 45,107 | — | 0.9 | — | — | — | 0.9 |
| Repurchase and retirement of common stock | (1,670,135) | (0.3) | (31.7) | — | — | — | (32.0) |
| Dividends declared ($0.1875 per share) | — | — | — | (14.1) | — | — | (14.1) |
| September 2, 2023 | 74,405,225 | $14.9 | $812.2 | $678.7 | $(83.5) | $— | $1,422.3 |
| Net earnings | — | — | — | 33.5 | — | — | 33.5 |
| Other comprehensive income, net of tax | — | — | — | — | (0.6) | — | (0.6) |
| Stock-based compensation expense | — | — | 5.3 | — | — | — | 5.3 |
| Exercise of stock options | 19,429 | — | 0.4 | — | — | — | 0.4 |
| Restricted and performance stock units released | 11,887 | — | — | — | — | — | — |
| Employee stock purchase plan issuances | 31,669 | — | 1.3 | — | — | — | 1.3 |
| Repurchase and retirement of common stock | (1,390,551) | (0.3) | (27.7) | — | — | — | (28.0) |
| Dividends declared ($0.1875 per share) | — | — | — | (13.7) | — | — | (13.7) |
| Other | — | — | — | 0.1 | — | — | 0.1 |
| December 2, 2023 | 73,077,659 | $14.6 | $791.5 | $698.6 | $(84.1) | $— | $1,420.6 |
| Six Months Ended December 3, 2022 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in millions, except share data) · Common Stock · Additional Paid-in Capital · Retained Earnings · Accumulated Other Comprehensive Loss · Deferred Compensation Plan · MillerKnoll, Inc. Stockholders' Equity | ||||||||||||
| (Unaudited) · Shares · Amount | ||||||||||||
| May 28, 2022 | 75,824,241 | $15.2 | $825.7 | $693.3 | $(107.1) | $— | $1,427.1 | |||||
| Net earnings | — | — | — | 25.8 | — | — | 25.8 | |||||
| Other comprehensive loss, net of tax | — | — | — | — | (57.8) | — | (57.8) | |||||
| Stock-based compensation expense | (13,474) | — | 5.4 | — | — | — | 5.4 | |||||
| Exercise of stock options | 43,469 | — | 1.0 | — | — | — | 1.0 | |||||
| Restricted and performance stock units released | 160,551 | — | 0.1 | — | — | — | 0.1 | |||||
| Employee stock purchase plan issuances | 35,753 | — | 0.8 | — | — | — | 0.8 | |||||
| Repurchase and retirement of common stock | (494,509) | (0.1) | (14.2) | — | — | — | (14.3) | |||||
| Dividends declared ($0.1875 per share) | — | — | — | (14.3) | — | — | (14.3) | |||||
| Other | — | — | 0.5 | 0.5 | — | — | 1.0 | |||||
| September 3, 2022 | 75,556,031 | $15.1 | $819.3 | $705.3 | $(164.9) | $— | $1,374.8 | |||||
| Net earnings | — | — | — | 16.0 | — | — | 16.0 | |||||
| Other comprehensive income, net of tax | — | — | — | — | 51.8 | — | 51.8 | |||||
| Stock-base compensation expense | (2,476) | — | 5.5 | — | — | — | 5.5 | |||||
| Restricted and performance stock units released | 8,763 | — | 0.1 | — | — | — | 0.1 | |||||
| Employee stock purchase plan issuances | 44,010 | — | 0.7 | — | — | — | 0.7 | |||||
| Repurchase and retirement of common stock | (3,222) | — | (0.1) | — | — | — | (0.1) | |||||
| Dividends declared ($0.1875 per share) | — | — | — | (14.3) | — | — | (14.3) | |||||
| Other | — | $0.2 | $(0.4) | $— | $— | (0.2) | ||||||
| December 3, 2022 | 75,603,106 | $15.1 | $825.7 | $706.6 | $(113.1) | $— | $1,434.3 | |||||
Notes to Condensed Consolidated Financial Statements
(Dollars in millions, except share data)
(unaudited)
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.