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HERMAN MILLER, INC. REPORTS NET SALES AND NET INCOME FOR THE THIRD QUARTER AND FIRST NINE MONTHS

 HERMAN MILLER, INC. REPORTS NET SALES AND NET INCOME
 FOR THE THIRD QUARTER AND FIRST NINE MONTHS
 ZEELAND, Mich., March 18 /PRNewswire/ -- Herman Miller, Inc. (NASDAQ-NMS: MLHR) today reported the following results for the third quarter and nine months ended Feb. 29, 1992.
 Net sales decreased 4.1 percent for the three months ended Feb. 29, 1992, over the third-quarter results a year ago. During the three months ended Feb. 29, 1992, the company had net sales of $198.8 million and net income of $4.2 million, equal to 17 cents per share, compared with net sales of $207.3 million and a net loss of $14.8 million, or 58 cents per share, in the three months ended March 2, 1991. The three months ended March 2, 1991, included $25.9 million of pretax restructuring and other charges. These charges included a wood casegood restructuring charge of $18.6 million and other pretax charges of $7.3 million which had an after-tax effect of $22.9 million, or $.89 per share. Before giving effect to these charges, net income was $8.1 million, or $.31 per share, for three months ended March 2, 1991.
 Net sales of foreign operations and export sales from the United States in the third quarter ended Feb. 29, 1992, totaled $29.2 million compared with $34.7 million last year, resulting in a net loss of $0.9 million compared with net income of $0.3 million last year.
 Net sales of $589.5 million and net income of $12.3 million, equal to $.49 per share, were recorded for the first nine months, compared with net sales of $673.5 million and net income of $7.0 million, or $.27 per share, in the first nine months last year. Before giving effect to last year's third-quarter charges, net income was $29.9 million, or $1.16 per share, for the nine months ended March 2, 1991.
 Net sales of foreign operations and export sales from the United States were $88.7 million during the first nine months compared with $117.9 million last year, resulting in a net loss of $2.5 million this year compared to net income of $4.9 million last year.
 The backlog of unfilled orders at Feb. 29, 1992, was $118.3 million compared with $125.5 million a year earlier, $132.3 million three months earlier, and $112.2 million, at June 1, 1991.
 James H. Bloem, vice president and chief financial officer, said, "Our net sales, net income, orders, and backlog were all less than expected. While third-quarter orders exceeded last year's war-and- recession reduced levels by 5.0 percent, they were 11.9 percent less than orders achieved in the second quarter. As a result, net sales did not exceed either year-ago or second-quarter levels, falling 4.1 percent below year-ago and 3.5 percent below second-quarter levels. Lower than expected volume also produced unfavorable manufacturing variances during the quarter.
 "While order levels thus far in March have returned to early second- quarter levels, pricing, which had remained relatively stable during the past six months, became more competitive worldwide in the second half of the third quarter. Greater price competition, together with the fall off of orders and sales in the third quarter will have an adverse effect on our net income for the remainder of the year. We have further reduced our operating budgets, which previously were less than last year and underspent to this year's plan. Cost reduction efforts also have been redoubled."
 Bloem continued, "During the third quarter and first nine months, we continued the progress we have made on the balance sheet and statement of cash flows during the past year.
 "1. Cash flow from operating activities remained strong during the third quarter and first nine months. Despite lower sales, days sales in inventory and accounts receivable each improved during the third quarter over the second quarter. This indicates the increasingly successful efforts of our employee-owners to adjust the level of assets to meet the current lower level of business in order to assure a reasonable return on assets while simultaneously improving customer-generated product and service quality indices using fewer assets.
 "2. Total interest-bearing debt at Feb. 29, 1992, was $63.3 million compared with $80.5 million at March 2, 1991, and $75.7 million at June 1, 1991. This is a $17.2 million, or 21.4-percent, reduction from the same period last year. As a result, interest expense was $1.2 million and $2.6 million less in the third quarter and first nine months, respectively, than in the same periods a year ago. Our debt to total capitalization ratio remains at 13.1 percent, one of the lowest ratios for industrial firms our size."
 Bloem concluded, "While we made no share repurchases during the third quarter, we remain committed to our 2.0 million share repurchase program announced in January 1991. In addition to the interest-bearing debt repayments described above, we have repurchased 577,500 shares at an average cost of $17.81 per share during the first nine months of fiscal 1992. Since January 1991, we have purchased 815,000 shares at an average cost of $18.13 per share. The stock trading range since Jan. 1, 1991, as well as during the first nine months of fiscal 1992, was $22.50-$15.00 per share. All repurchases have been made in the open market on an unsolicited basis."
 Herman Miller, Inc. is an international firm engaged primarily in the manufacture and sale of furniture systems, products, and related services principally for offices and, to a lesser extent, for health- care facilities and other uses. The company's stock is traded on the National Market System for over-the-counter stock issues (NASDAQ symbol: MLHR).
 Financial highlights for the three and nine months ended Feb. 29, 1992, and March 2, 1991, follow:
 HERMAN MILLER, INC.
 CONDENSED CONSOLIDATED INCOME STATEMENTS
 (Unaudited; dollars in 000s, except per-share data)
 Three Months Ended
 Feb. 29, March 2,
 1992 1991
 Net sales $198,820 $207,348
 Income (loss) before taxes 6,976 (12,987)(a)
 Taxes on income 2,800 1,800
 Net (loss) income $ 4,176 $(14,787)(a)
 Earnings (loss) per share .17 (.58)(a)
 Common share equivalents 25,132,716 25,679,580
 Nine Months Ended
 Feb. 29, March 2,
 1992 1991
 Net sales $589,545 $673,541
 Income before taxes 20,187 22,091(a)
 Taxes on income 7,900 15,100
 Net income $ 12,287 $ 6,991(a)
 Earnings per share $ .49 $ .27(a)
 Common share equivalents 25,181,435 25,691,058
 (a) -- Includes $25.9 million of pretax charges, including wood casegoods restructuring charges of $18.6 million and other pretax charges of $7.3 million. These charges decreased net income by $22.9 million, or $.89 per share.
 HERMAN MILLER, INC.
 CONDENSED CONSOLIDATED BALANCE SHEETS
 (Unaudited; dollars in 000s)
 Feb. 29, June 1,
 1992 1991
 Assets
 Current Assets
 Cash and short-term investments $ 13,709 $ 15,369
 Accounts receivable (net) 112,067 122,323
 Inventories 66,145 69,420
 Prepaid expenses 13,706 14,500
 Totals 205,627 221,612
 Net Property and Equipment 221,751 218,748
 Other Assets 50,031 52,587
 Totals $477,409 $492,947
 Liabilities and Stockholders' Equity
 Current Liabilities
 Current long-term debt $ 9,498 $ 9,377
 Notes payable 7,312 11,596
 Accounts payable 33,910 34,435
 Accrued liabilities 55,125 52,224
 Totals 105,845 107,632
 Long-Term Debt 46,537 54,720
 Deferred Items 16,250 15,813
 Stockholders' Equity 308,777 314,782
 Totals $477,409 $492,947
 HERMAN MILLER, INC.
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 (Unaudited; dollars in 000s)
 Nine Months Ended
 Feb. 29, March 2,
 1992 1991
 Net income $12,287 $6,991
 Cash flows from operating activities 59,947 76,466
 Cash flows used for investing
 activities (28,824) (29,224)
 Cash flows used for financing
 activities (31,827) (40,471)
 Net increase (decrease) in cash (1,660) 7,522
 Cash, beginning of year 15,369 11,756
 Cash, end of period $13,709 $19,278
 -0- 3/18/92
 /CONTACT: Jim Bloem, 616-772-3653, or Jim Schreiber, 616-772-1723, both of Herman Miller/
 (MLHR) CO: Herman Miller, Inc. ST: Michigan IN: SU: ERN


ML-SK -- DE024 -- 9429 03/18/92 17:31 EST
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