Earnings Review and Free Research Report: Herman Miller’s Adjusted Income Climbed14.3% Exceeded Expectations
LONDON, UK / ACCESSWIRE / July 13, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Herman Miller, Inc. (NASDAQ: MLHR), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=MLHR, following the Company's announcement of its fourth quarter and fiscal 2017 earnings results on July 05, 2017. The furniture maker announced a 6% hike in dividend reflecting the strength of its current financial position. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Earnings Reviewed
For its fourth quarter ended June 03, 2017, Herman Miller reported net sales of $577.2 million compared to sales of $582.6 million in Q4 FY16, while new orders in the reported quarter totaled $568.1 million down 6.3% on a y-o-y basis. The Company's revenue numbers fell short of analysts' expectations of $583.5 million.
Herman Miller stated that its most recent price increase, which became effective on February 06, 2017, had the effect of accelerating approximately $21 million of orders in Q3 FY17 that would have otherwise been entered in the reported quarter. On an organic basis, which includes the impact of that order acceleration as well as foreign currency translation and dealer divestitures, Herman Miller's net sales increased 2.7% in the reported quarter, while orders remained essentially flat on a y-o-y basis.
During Q4 FY17, Herman Miller's consolidated gross margin totaled 38.3%, representing a 40 basis point decrease from gross margin of 38.7% reported in Q4 FY16. The Company's operating expenses in the reported quarter were $162.3 million compared to $168.6 million in the same quarter a year ago.
Herman Miller recognized pre-tax restructuring expenses totaling $1.7 million in Q4 FY17 related to severance and outplacement benefits associated with targeted workforce reductions implemented during the period. For the reported quarter, the Company also recognized pretax asset impairment expenses totaling $7.1 million associated with the Nemschoff trade name intangible.
Herman Miller reported net earnings of $0.55 per share on a diluted basis in Q4 FY17 compared to diluted earnings per share of $0.67 in Q4 FY16. Excluding the impact of restructuring and impairment charges recognized in the period, the Company's adjusted earnings per share in the reported quarter totaled $0.64, reflecting an increase of 14.3% over adjusted earnings per share of $0.56 in the prior year's corresponding quarter and topped Wall Street's expectations of $0.55 per share.
Full Year Results
For the full fiscal year 2017, Herman Miller's net sales totaled $2.28 billion, reflecting a y-o-y increase of 0.6%. On an organic basis, net sales increased by 1.4% compared to last fiscal year. The Company's diluted earnings per share for FY17 totaled $2.05 compared to $2.26 last year. On an adjusted basis, diluted earnings per share totaled $2.16 in the reported period compared to $2.17 in the prior year's same quarter.
During FY17, Herman Miller expanded the real estate footprint of its Consumer business, opening 8 new or repositioned Design Within Reach studios, plus the Herman Miller flagship location in New York. Collectively, these new locations added roughly 70,000 square feet of incremental selling space to the Company's portfolio.
Cash Matters
Herman Miller ended Q4 FY17 with total cash and cash equivalents of $96.2 million, an increase of $17.8 million from the balance at the end of Q3 FY17. The Company's cash flow generated from operations in Q4 FY17 and FY17 was $80.0 million and $202.1 million, respectively, compared to $84.5 million and $210.4 million in the respective periods in FY16.
Herman Miller also announced an increase in its quarterly cash dividend to $0.18 per share payable in October 2017. This change represents an increase of 6% from the previous dividend payout of $0.17 per share. The Company noted that the increase in dividend payout was attributed to a result of strong cash flow generation and a well-positioned balance sheet.
Guidance
For Q1 FY18, Herman Miller is forecasting net sales to be in the range of $570 million to $590 million. On an organic basis, adjusted for the impact of a dealer divestiture and foreign currency translation, this forecast implies organic sales growth of 5.0% on a y-o-y basis at the mid-point of the range. The Company expects diluted earnings per share in the upcoming quarter to be in the band of $0.55 to $0.59 per share.
Stock Performance
At the closing bell, on Wednesday, July 12, 2017, Herman Miller's stock climbed 1.51%, ending the trading session at $33.70. A total volume of 723.20 thousand shares have exchanged hands, which was higher than the 3-month average volume of 398.24 thousand shares. The Company's stock price advanced 4.50% in the last three months, 6.48% in the past six months, and 5.44% in the previous twelve months. The stock is trading at a PE ratio of 16.44 and has a dividend yield of 2.02%. The stock currently has a market cap of $2.01 billion.
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