MILLERKNOLL INC
For the period ended Aug 31, 2024. Filed Oct 9, 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.
Aug 31, 2024 · Filed Oct 9, 2024
MLKN$21.49-2.3%Stored close · as of Nov 6, 2026
Contents
Item 1. Financial Statements (Unaudited)
| Condensed Consolidated Statements of Comprehensive Income (Loss) — Three Months ended August 31, 2024 and September 2, 2023 | 3 |
|---|---|
| Condensed Consolidated Balance Sheets — August 31, 2024 and June 1, 2024 | 4 |
| Condensed Consolidated Statements of Cash Flows — Three Months Ended August 31, 2024 and September 2, 2023 | 5 |
| Condensed Consolidated Statements of Stockholders' Equity — Three Months Ended August 31, 2024 and September 2, 2023 | 6 |
| Notes to Condensed Consolidated Financial Statements | |
| Note 1 - Description of Business and Basis of Presentation | 7 |
| Note 2 - Recently Issued Accounting Standards | 8 |
| Note 3 - Revenue from Contracts with Customers | 8 |
| Note 4 - Inventories, net | 9 |
| Note 5 - Goodwill and Indefinite-Lived Intangibles | 10 |
| Note 6 - Employee Benefit Plans | 11 |
| Note 7 - Earnings Per Share | 11 |
| Note 8 - Stock-Based Compensation | 12 |
| Note 9 - Income Taxes | 12 |
| Note 10 - Fair Value Measurements | 13 |
| Note 11 - Commitments and Contingencies | 16 |
| Note 12 - Short-Term Borrowings and Long-Term Debt | 17 |
| Note 13 - Accumulated Other Comprehensive Loss | 18 |
| Note 14 - Operating Segments | 18 |
| Note 15 - Restructuring and Integration Expense | 19 |
| Note 16 - Variable Interest Entities | 21 |
| Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations | 22 |
| Item 3 Quantitative and Qualitative Disclosures about Market Risk | 34 |
| Item 4 Controls and Procedures | 35 |
| Part II — Other Information | |
| Item 1 Legal Proceedings | 36 |
| Item 1A Risk Factors | 36 |
| Item 2 Unregistered Sales of Equity Securities and Use of Proceeds | 36 |
| Item 5 Other Information | 36 |
| Item 6 Exhibits | 36 |
| Signatures | 38 |
PART I - FINANCIAL INFORMATION
Condensed Consolidated Statements of Comprehensive Income
| (Dollars in millions, except share data) | Three Months Ended | |
|---|---|---|
| (Unaudited) | August 31, 2024 | September 2, 2023 |
| Net sales | $861.5 | $917.7 |
| Cost of sales | 525.2 | 559.6 |
| Gross margin | 336.3 | 358.1 |
| Operating expenses: | ||
| Selling, general and administrative | 298.4 | 290.5 |
| Restructuring expense | — | 5.2 |
| Design and research | 22.7 | 22.1 |
| Total operating expenses | 321.1 | 317.8 |
| Operating earnings | 15.2 | 40.3 |
| Interest expense | 19.9 | 19.2 |
| Interest and other investment (income) expense | (1.6) | (2.2) |
| Other (income) expense, net | (1.4) | 2.2 |
| (Loss) earnings before income taxes and equity income | (1.7) | 21.1 |
| Income tax (benefit) expense | (1.1) | 5.1 |
| Equity income from nonconsolidated affiliates, net of tax | 0.1 | 0.1 |
| Net (loss) earnings | (0.5) | 16.1 |
| Net earnings (loss) attributable to redeemable noncontrolling interests | 0.7 | (0.6) |
| Net (loss) earnings attributable to MillerKnoll, Inc. | $(1.2) | $16.7 |
| (Loss) earnings per share - basic | $(0.02) | $0.22 |
| (Loss) earnings per share - diluted | $(0.02) | $0.22 |
| Other comprehensive (loss) income, net of tax | ||
| Foreign currency translation adjustments | $15.4 | $3.9 |
| Pension and post-retirement liability adjustments | 0.1 | (0.1) |
| Unrealized (loss) gain on interest rate swap agreement | (21.3) | 7.8 |
| Other comprehensive (loss) income, net of tax | $(5.8) | $11.6 |
| Comprehensive (loss) income | (6.3) | 27.7 |
| Comprehensive income (loss) attributable to redeemable noncontrolling interests | 0.7 | (0.6) |
| Comprehensive (loss) income attributable to MillerKnoll, Inc. | $(7.0) | $28.3 |
Condensed Consolidated Balance Sheets
| (Dollars in millions, except share data) | ||
|---|---|---|
| (Unaudited) | August 31, 2024 | June 1, 2024 |
| ASSETS | ||
| Current Assets: | ||
| Cash and cash equivalents | $209.7 | $230.4 |
| Accounts receivable, net of allowance of $7.6 and $7.4 | 277.3 | 308.3 |
| Unbilled accounts receivable | 42.3 | 22.2 |
| Inventories, net | 440.5 | 428.6 |
| Prepaid expenses | 84.5 | 66.5 |
| Assets held for sale | 3.2 | 3.5 |
| Other current assets | 14.3 | 10.1 |
| Total current assets | 1,071.8 | 1,069.6 |
| Property and equipment, at cost | 1,595.1 | 1,582.7 |
| Less — accumulated depreciation | (1,105.0) | (1,090.7) |
| Net property and equipment | 490.1 | 492.0 |
| Right of use assets | 372.2 | 375.6 |
| Goodwill | 1,234.4 | 1,226.3 |
| Indefinite-lived intangibles | 467.8 | 465.5 |
| Other amortizable intangibles, net of accumulated amortization of $234.5 and $223.4 | 272.4 | 279.3 |
| Other noncurrent assets | 110.4 | 135.3 |
| Total Assets | $4,019.1 | $4,043.6 |
| LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS & STOCKHOLDERS' EQUITY | ||
| Current Liabilities: | ||
| Accounts payable | $236.1 | $241.4 |
| Short-term borrowings and current portion of long-term debt | 45.9 | 43.5 |
| Accrued compensation and benefits | 74.9 | 104.5 |
| Short-term lease liability | 73.1 | 67.2 |
| Accrued warranty | 17.0 | 17.6 |
| Customer deposits | 105.0 | 100.2 |
| Other accrued liabilities | 123.7 | 123.3 |
| Total current liabilities | 675.7 | 697.7 |
| Long-term debt | 1,324.0 | 1,291.7 |
| Pension and post-retirement benefits | 10.7 | 10.0 |
| Lease liabilities | 375.1 | 360.4 |
| Other liabilities | 224.5 | 224.8 |
| Total Liabilities | 2,610.0 | 2,584.6 |
| Redeemable noncontrolling interests | 76.6 | 73.9 |
| 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, 69,328,400 and 70,377,692 shares issued and outstanding in fiscal 2025 and 2024, respectively) | 13.9 | 14.1 |
| Additional paid-in capital | 693.1 | 725.3 |
| Retained earnings | 724.0 | 738.4 |
| Accumulated other comprehensive loss | (98.5) | (92.7) |
| Total Stockholders' Equity | 1,332.5 | 1,385.1 |
| Total Liabilities, Redeemable Noncontrolling Interests, and Stockholders' Equity | $4,019.1 | $4,043.6 |
Condensed Consolidated Statements of Cash Flows
| (Dollars in millions) | Three Months Ended | |
|---|---|---|
| (Unaudited) | August 31, 2024 | September 2, 2023 |
| Cash Flows from Operating Activities: | ||
| Net (loss) earnings | $(0.5) | $16.1 |
| Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
| Depreciation and amortization | 34.6 | 37.2 |
| Stock-based compensation | 9.1 | 6.4 |
| Amortization of deferred financing costs | 1.2 | 1.2 |
| Deferred taxes | 0.7 | — |
| Restructuring expense | — | 5.2 |
| (Increase) decrease in current assets | (20.6) | 73.3 |
| (Decrease) in current liabilities | (12.8) | (4.8) |
| Other, net | 9.4 | (3.7) |
| Net Cash Provided by Operating Activities | 21.1 | 130.9 |
| Cash Flows from Investing Activities: | ||
| Advances of notes receivable | (2.3) | (6.5) |
| Collection of notes receivable | 2.5 | 0.5 |
| Capital expenditures | (22.6) | (19.9) |
| Other, net | 0.1 | (0.4) |
| Net Cash Used in Investing Activities | (22.3) | (26.3) |
| Cash Flows from Financing Activities: | ||
| Repayments of long-term debt | (9.1) | (6.6) |
| Proceeds from credit facility | 237.7 | 153.1 |
| Repayments of credit facility | (194.6) | (212.5) |
| Dividends paid | (13.2) | (14.2) |
| Common stock issued | 2.3 | 0.8 |
| Common stock repurchased and retired | (43.7) | (32.0) |
| Other, net | 0.3 | 0.3 |
| Net Cash Used in Financing Activities | (20.3) | (111.1) |
| Effect of Exchange Rate Changes on Cash and Cash Equivalents | 0.8 | 0.5 |
| Net Decrease in Cash and Cash Equivalents | (20.7) | (6.0) |
| Cash and Cash Equivalents, Beginning of Period | 230.4 | 223.5 |
| Cash and Cash Equivalents, End of Period | $209.7 | $217.5 |
Condensed Consolidated Statements of Stockholders' Equity
| Three Months Ended August 31, 2024 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| (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 1, 2024 | 70,377,692 | $14.1 | $725.3 | $738.4 | $(92.7) | $— | $1,385.1 | ||||
| Net (loss) | — | — | — | (1.2) | — | — | (1.2) | ||||
| Other comprehensive income, net of tax | — | — | — | — | (5.8) | — | (5.8) | ||||
| Stock-based compensation expense | — | — | 9.1 | — | — | — | 9.1 | ||||
| Exercise of stock options | 71,848 | — | 1.5 | — | — | — | 1.5 | ||||
| Restricted and performance stock units released | 393,591 | 0.1 | 0.1 | — | — | — | 0.2 | ||||
| Employee stock purchase plan issuances | 30,002 | — | 0.8 | — | — | — | 0.8 | ||||
| Repurchase and retirement of common stock | (1,544,733) | (0.3) | (43.7) | — | — | — | (44.0) | ||||
| Dividends declared ($0.1875 per share) | — | — | — | (13.2) | — | — | (13.2) | ||||
| August 31, 2024 | 69,328,400 | $13.9 | $693.1 | $724.0 | $(98.5) | $— | $1,332.5 | ||||
| Three Months Ended September 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 loss, 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 | ||||
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.