Revenue during the quarter went down marginally by 0.14 percent to $786.50 million from $787.60 million in the previous year period. Gross margin for the quarter expanded 111 basis points over the previous year period to 33.30 percent. Total expenses were 93.06 percent of quarterly revenues, up from 92.99 percent for the same period last year. That has resulted in a contraction of 7 basis points in operating margin to 6.94 percent.

Operating income for the quarter was $54.60 million, compared with $55.20 million in the previous year period.

However, the adjusted operating income for the quarter stood at $54.40 million compared to $58.20 million in the prior year period. At the same time, adjusted operating margin contracted 47 basis points in the quarter to 6.92 percent from 7.39 percent in the last year period.

“We were pleased to see our revenue growth in the Americas return to exceeding the industry for the first two months in the quarter, based on the most current information available from our industry association,” said Jim Keane, president and chief executive officer. “We saw growth in our day-to-day business and continued year-over-year strength in our project pipeline, driven by new product introductions and other strategic actions we have taken over the past year. The growth in our day-to-day business fell somewhat short of our expectations, and we are targeting additional actions to buoy this business.”

For the fourth-quarter, Steelcase forecasts revenue to be in the range of $735 million to $760 million. The company expects diluted earnings per share to be in the range of $0.22 to $0.26 for the fourth-quarter. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.22 to $0.26 for the fourth-quarter.

The company has spent $50.50 million cash to meet investing activities during the nine month period as against cash outgo of $119.30 million in the last year period. It has incurred net capital expenditure of $40 million on net basis during the nine month period, down 38.65 percent or $25.20 million from year ago period.

The company has spent $94.10 million cash to carry out financing activities during the nine month period as against cash outgo of $34.60 million in the last year period.

Cash and cash equivalents stood at $139.10 million as on Nov. 25, 2016, down 7.45 percent or $11.20 million from $150.30 million on Nov. 27, 2015.

Working capital declines
Steelcase Inc has witnessed a decline in the working capital over the last year. It stood at $282.80 million as at Nov. 25, 2016, down 18.60 percent or $64.60 million from $347.40 million on Nov. 27, 2015. Current ratio was at 1.54 as on Nov. 25, 2016, down from 1.61 on Nov. 27, 2015.

Cash conversion cycle (CCC) has decreased to 16 days for the quarter from 33 days for the last year period. Days sales outstanding went down to 40 days for the quarter compared with 41 days for the same period last year.

Days inventory outstanding has decreased to 15 days for the quarter compared with 30 days for the previous year period. At the same time, days payable outstanding was almost stable at 39 days for the quarter, when compared with the previous year period.