Herman Miller Inc. (MLHR, Financial) filed Quarterly Report for the period ended 2011-09-03.
Herman Miller Inc. has a market cap of $1.19 billion; its shares were traded at around $20.44 with a P/E ratio of 15.8 and P/S ratio of 0.7. The dividend yield of Herman Miller Inc. stocks is 0.4%. Herman Miller Inc. had an annual average earning growth of 35.7% over the past 10 years.
Net other expenses of $5.0 million in the first quarter of this year were $1.0 million lower compared to the prior year first quarter of $6.0 million. The decrease is due primarily to lower currency loss as compared to the same period last year. We recorded a foreign currency transaction loss of $0.2 million in the first quarter compared to a loss of $0.9 million in the same period last year. For the quarter, interest expense of $4.5 million is $0.5 million less than the same period last year due to the net reduction of $50 million of our long-term debt which occurred during the fourth quarter of fiscal 2011.
Changes in working capital balances for the first quarter of fiscal 2011 drove a source of cash totaling $2.6 million. The main factors impacting working capital were decreases in accounts receivable and prepaid balances of $20.7 million and $14.2 million, respectively. These amounts were partially offset by decreases in accrued compensation and accounts payable of $22.6 million and $2.0 million, respectively. An increase in net inventory of $8.0 million also impacted working capital for the current quarter.
Net sales within the North American Furniture Solutions segment were up $44.6 million to $330.5 million in the first quarter, representing a 15.6 percent increase over the first quarter last year. Orders within the North American segment increased by $60.5 million to $348.3 million compared to $287.8 million in the first quarter last year. The increase in both net sales and orders is a primarily a broad-based increase in activity across the core business, both in terms of sales regions and industry sectors. The increase in net sales for the North American segment was partially offset by the sale of the dealers during the first quarter of fiscal 2012 which drove a reduction in net sales compared to the prior year period.
First quarter total operating expenses were $112.5 million, or 24.6 percent of net sales, which is flat as a percent of net sales, and an increase of $18.1 million from the first quarter of fiscal 2011. Approximately $5 million of this increase relates to favorable adjustments made in the prior year period related to Nemschoff purchase contingencies. Much of the remaining increase was driven by variable expenses related to the growth in net sales between periods. Employee compensation expenses in the quarter were also higher than the prior year level due in large part to increased incentive bonus, wages and retirement benefit accruals. We also recognized approximately $3 million in compensation expense as a result of the extra week of operations in the first quarter. However, this was offset by the sale of dealerships in the quarter, which drove a reduction in our consolidated operating expenses relative to the first quarter of last year. No restructuring costs were incurred in the first quarter of fiscal 2012, as compared to $0.9 million of restructuring costs included in the first quarter of fiscal 2011.
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Herman Miller Inc. has a market cap of $1.19 billion; its shares were traded at around $20.44 with a P/E ratio of 15.8 and P/S ratio of 0.7. The dividend yield of Herman Miller Inc. stocks is 0.4%. Herman Miller Inc. had an annual average earning growth of 35.7% over the past 10 years.
Highlight of Business Operations:
Cash from investing activities was $0.4 million for the first quarter of fiscal 2012 compared to a use of cash of $5.7 million in the prior year period. The most significant cash outflow for the current quarter relates to an investment in capital assets. The company purchased $7.6 million in capital assets during the first quarter of fiscal 2012. This compares to $5.8 million in the prior year. At the end of the first quarter 2012, there were outstanding commitments for capital purchases of $3.1 million. The company expects that full-year capital purchases to be approximately $35 million to $40 million. This compares to full-year capital spending of $30.5 million in fiscal 2011. The company also received cash proceeds of $7.6 million from the sale of two dealerships during the current quarter.Net other expenses of $5.0 million in the first quarter of this year were $1.0 million lower compared to the prior year first quarter of $6.0 million. The decrease is due primarily to lower currency loss as compared to the same period last year. We recorded a foreign currency transaction loss of $0.2 million in the first quarter compared to a loss of $0.9 million in the same period last year. For the quarter, interest expense of $4.5 million is $0.5 million less than the same period last year due to the net reduction of $50 million of our long-term debt which occurred during the fourth quarter of fiscal 2011.
Changes in working capital balances for the first quarter of fiscal 2011 drove a source of cash totaling $2.6 million. The main factors impacting working capital were decreases in accounts receivable and prepaid balances of $20.7 million and $14.2 million, respectively. These amounts were partially offset by decreases in accrued compensation and accounts payable of $22.6 million and $2.0 million, respectively. An increase in net inventory of $8.0 million also impacted working capital for the current quarter.
Net sales within the North American Furniture Solutions segment were up $44.6 million to $330.5 million in the first quarter, representing a 15.6 percent increase over the first quarter last year. Orders within the North American segment increased by $60.5 million to $348.3 million compared to $287.8 million in the first quarter last year. The increase in both net sales and orders is a primarily a broad-based increase in activity across the core business, both in terms of sales regions and industry sectors. The increase in net sales for the North American segment was partially offset by the sale of the dealers during the first quarter of fiscal 2012 which drove a reduction in net sales compared to the prior year period.
First quarter total operating expenses were $112.5 million, or 24.6 percent of net sales, which is flat as a percent of net sales, and an increase of $18.1 million from the first quarter of fiscal 2011. Approximately $5 million of this increase relates to favorable adjustments made in the prior year period related to Nemschoff purchase contingencies. Much of the remaining increase was driven by variable expenses related to the growth in net sales between periods. Employee compensation expenses in the quarter were also higher than the prior year level due in large part to increased incentive bonus, wages and retirement benefit accruals. We also recognized approximately $3 million in compensation expense as a result of the extra week of operations in the first quarter. However, this was offset by the sale of dealerships in the quarter, which drove a reduction in our consolidated operating expenses relative to the first quarter of last year. No restructuring costs were incurred in the first quarter of fiscal 2012, as compared to $0.9 million of restructuring costs included in the first quarter of fiscal 2011.
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