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HERMAN MILLER, INC. REPORTS NET SALES AND NET INCOME FOR THE THIRD QUARTER OF FISCAL 1993

 ZEELAND, Mich., March 17 /PRNewswire/ -- Herman Miller, Inc. (NASDAQ-NMS: MLHR) today reported the following results for the third quarter ended Feb. 27, 1993.
 Net sales increased 9.4 percent and net income increased 85.4 percent for the three months ended Feb. 27, 1993, over the third- quarter results a year ago. During the three months ended Feb. 27, 1993, the company had net sales of $217.5 million and net income of $7.2 million, equal to $.29 per share, compared with net sales of $198.8 million and net income of $3.9 million, or $.16 per share, in the three months ended Feb. 29, 1992.
 Net sales of foreign operations and export sales from the United States in the third quarter ended Feb. 27, 1993, totalled $28.3 million compared with $29.2 million last year, resulting in a net loss of $1.1 million compared with a net loss of $.9 million last year.
 Net sales of $622.0 million and net income of $13.2 million, equal to $.53 per share, were recorded for the first nine months, compared with net sales of $589.5 million and a net income of $3.5 million, or $.15 per share, in the first nine months of last year.
 The first-quarter results of fiscal 1992 included the cumulative effect of a change in accounting principle resulting from the fourth- quarter adoption of Statement of Financial Accounting Standards No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions" (SFAS No. 106). The cumulative effect of SFAS No. 106 reduced previously reported net income by $8.0 million, or $.31 per share, for the first quarter of fiscal 1992. The adoption of SFAS No. 106 also resulted in a further restatement of previously reported interim results which reduced earnings per share for each fiscal 1992 quarter by $.01. Accordingly, the first nine months of 1992 net income was $11.5 million, or $.46 per share, before giving effect to the adoption of SFAS No. 106.
 Net sales of foreign operations and export sales from the United States for the first nine months ended Feb. 27, 1993, totalled $91.4 million compared with $88.7 million last year, resulting in a net loss of $5.2 million compared with a net loss of $2.5 million last year.
 The consolidated backlog of unfilled orders at Feb. 27, 1993, was $126.2 million compared with $118.3 million a year earlier and $140.4 million, at Nov. 28, 1992.
 New orders received in the third quarter were $203.3 million, an increase of $18.5 million, or 10.0 percent, when compared to the same period a year ago. New orders for the first nine months were $632.1 million, an increase of $36.4 million, or 6.1 percent, when compared to the first nine months of fiscal 1992.
 James H. Bloem, vice president and chief financial officer, said "Our third-quarter net sales and net income each were the highest we have achieved in the last eight quarters. We also were pleased with our third-quarter order entry, which was the highest we have ever recorded in any third quarter. Third-quarter order entry is traditionally lower than other quarters because of the calendar year-end holidays. Order entry in the first two weeks of March has continued to be in line with our moderately higher expectations for the fourth quarter.
 "Third-quarter international net sales and operating results were affected adversely by both lower unit sales and weaker domestic currencies in both Australia and Canada compared to the year-ago period. The results in these two markets reflect the continued weakening of the general economy of each of these two countries.
 "A significant improvement in profitability was achieved in Europe largely due to cost-saving measures implemented during each of the last two years. This was especially true in the United Kingdom where a small profit was earned. Unit volumes improved as lower British interest rates have begun to strengthen demand there. However, lower sterling resulted in the translation of these higher unit sales into smaller dollar-denominated net sales during the quarter. Overall European order entry remains weak on a comparative basis to a year ago due to slower continental growth, especially in France and Germany.
 "Third-quarter cash flow from operating activities was the highest to date in fiscal 1993, totalling $24.3 million. Our nine-month cash flow from operating activities of $63.2 million exceeds the same annual measure reported for both fiscal years 1988 and 1989, when our level and rate of profitability were substantially higher.
 "Days sales in accounts receivable plus days sales in inventory declined to 85.1 days at Feb. 27, 1993. This compares with 88.1 days at Nov. 28, 1992, and 97.8 days a year ago. This decrease of 12.7 days, $11.4 million, and 13.0 percent, compares with net sales increases of $18.6 million and 9.4 percent over third-quarter fiscal 1992 levels. Net working capital was further reduced to $42.8 million at Feb. 27, 1993, compared with $46.8 million at Nov. 28, 1992, and $99.8 million at Feb. 29, 1992. Increasingly effective asset utilization is an integral part of our continuing efforts to improve operating results in a slow growth and competitive environment.
 "Strong cash flow enabled us to increase our third-quarter research and development expenditures by $.6 million and our capital expenditures by $8.1 million over year-ago levels. For the nine-month period, these two types of expenditures increased $1.9 million and $7.4 million, respectively, compared to the first nine months of 1992. Increased R&D and capital expenditures will produce new products and further efficiency improvements within the next 12 months.
 "Cash flow from operating activities also has helped us reduce interest-bearing debt, which decreased only slightly to $49.6 million vs. $49.9 million at Nov. 28, 1992, but has decreased from $63.3 million last year and $80.4 million two years ago. Our debt-to-total capital ratio now stands at 7.4 percent vs. 13.1 percent a year ago. Interest expense was reduced by $1.2 million during the third quarter and by $3.7 million during the first nine months vs. the comparable periods of fiscal 1992.
 "Despite the fact that no shares were repurchased during the third quarter, we remain committed to our 2.0 million share stock repurchase program announced in January of 1991. During the first nine months of fiscal 1993, .529 million shares were repurchased at an average cost of $15.43 per share. The trading range for the first nine months was $14.75 to $22.50 per share. To date, 1.344 million shares of the 2.0 million shares authorized in January of 1991 have been repurchased at an average cost of $17.07 per share. The trading range between Jan. 1, 1991, and Feb. 27, 1993, was $14.75 to $22.50 per share. All purchases were made in the open market on an unsolicited basis.
 "The improvement in our third-quarter earnings over third quarter a year ago and over each of the first two quarters of this year is directly attributable to improved volume and cost savings which more than offset a significant decline in the prices we have realized during the past 12 months. While pricing has stabilized in the last two quarters, our employee-owners, as well as our dealer and supplier partners, all working together, have been increasingly effective in improving both our volume and our cost competitiveness. In the third quarter, we began to see the results of these coordinated contributions. Together, we are continuing our efforts for further improvements in value and returns, which will benefit both our customers and shareholders in the future."
 Herman Miller, Inc. is an international firm engaged primarily in the manufacturing and sale of office systems products and related services principally for offices and, to a lesser extent, for health- care facilities and other uses. The company's common stock is traded on the National Market System for over-the-counter stock issues (NASDAQ symbol: MLHR).
 HERMAN MILLER, INC.
 Condensed Consolidated Statements
 (Unaudited; dollars in 000s, except per-share data)
 Nine Months Ended
 Feb. 27, Feb. 29,
 1993 1992
 Net Sales $622,032 $ 589,544
 Income Before Taxes and Cumulative
 Effect of Change in Accounting
 Principle (SFAS No. 106) 22,504 18,921
 Taxes on Income 9,300 7,450
 Net Income Before Cumulative Effect 13,204 11,471
 Cumulative Effect of Change in Accounting
 Principle, Net of Applicable Income Taxes -- (7,976)
 Net Income $ 13,204 $ 3,495
 Earnings Per Share
 Before Cumulative Effect $ .53 $ .46
 Cumulative Per Share Effect of Change
 in Accounting Principle -- (.31)
 Net Income Per Share $ .53 $ .15
 Common Share Equivalents 24,977,683 25,181,435
 Three Months Ended
 Feb. 27, Feb. 29,
 1993 1992
 Net Sales $217,462 $198,820
 Income before Taxes 11,737 6,554
 Taxes on Income 4,500 2,650
 Net Income $ 7,237 $ 3,904
 Earnings Per Share $ .29 $ .16
 Common Share Equivalents 24,810,774 25,132,716
 HERMAN MILLER, INC.
 Condensed Consolidated Balance Sheets
 (Dollars in 000s)
 Feb. 27,
 1993 May 30,
 (unaudited) 1992
 Assets
 Current assets
 Cash and short-term investments $ 18,051 $ 16,949
 Accounts receivable (net) 110,644 109,770
 Inventories 56,186 59,861
 Prepaid expenses 14,539 18,739
 Totals 199,420 205,319
 Net property and equipment 226,744 220,317
 Other assets 48,409 45,632
 Totals $474,573 $471,268
 Liabilities and Shareholders' Equity
 Current liabilities
 Current long-term debt $ 1,423 $ 2,756
 Notes payable 26,449 21,774
 Accounts payable 32,901 36,945
 Accrued liabilities 95,862 77,299
 Totals 156,635 138,774
 Long-term debt 21,680 29,445
 Deferred items 23,496 22,967
 Shareholders' equity 272,762 280,082
 Totals $474,573 $471,268
 HERMAN MILLER, INC.
 Condensed Consolidated Statements of Cash Flows
 (Unaudited; dollars in 000s)
 Nine Months Ended
 Feb. 27, Feb. 29,
 1993 1992
 Net Income $13,204 $ 3,495
 Cash Flows from Operating Activities 63,181 59,947
 Cash Flows used for Investing Activities (40,941) (28,824)
 Cash Flows used for Financing Activities (20,241) (31,827)
 Effect of Exchange Rates (897) (956)
 Net Increase (Decrease) in Cash 1,102 (1,660)
 Cash, Beginning of Year 16,949 15,369
 Cash, End of Period $18,051 $13,709
 -0- 3/17/93
 /CONTACT: Jim Bloem, 616-654-3653, or Jim Schreiber, 616-654-8923, both of Herman Miller, Inc./
 (MLHR)


CO: Herman Miller, Inc. ST: Michigan IN: SU: ERN

SM-SB -- DE027 -- 7163 03/17/93 16:46 EST
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