NASDAQ$MLKN

Millerknoll Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Experienced strong demand and completed the acquisition of Knoll, resulting in increased orders and net sales.

MillerKnoll reported strong first-quarter results, driven by robust demand and the acquisition of Knoll. Orders increased significantly, and net sales also saw a substantial rise, including contribution from Knoll. The integration of Knoll is progressing smoothly, and the company is confident in achieving cost synergy targets.

  • Completed the acquisition of Knoll, Inc., creating a leader in modern design.
  • Quarterly orders increased by 64.8% compared to the prior year, or 34.5% organically.
  • Net sales increased 26.0% from the prior year, including a partial quarter contribution from Knoll, or 0.4% organically.
  • Reaffirming expectation for $100 million run-rate cost synergies within two years of closing the Knoll acquisition.

Headline financials

Total Revenue

$790M

Previous: $627M+26.0%
EPS (adj)

$0.49

Previous: $1.24-60.5%
Gross Margin

35.1%

No prior period
Backlog

$836M

Previous: $400M+109.0%
Capital Expenditures

-$18.6M

Previous: -$11.3M-64.6%
Free Cash Flow

-$80.1M

Previous: $61.7M-229.8%
Net Income

-$61.5M

Previous: $73M-184.2%
Operating Income

-$52.8M

Previous: $95.4M-155.3%
Gross Profit

$278M

Previous: $250M+11.0%
Cash & Equivalents

$235M

Previous: $297M-20.7%
Total Assets

$4.46B

Previous: $1.92B+132.7%
Stock-Based Comp

$15.1M

Previous: $1.5M+906.7%

Revenue & EPS history

MillerKnoll · Revenue · Quarterly

$790M

Q1 2022+26%vs Q1 2021
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

MillerKnoll · $312M total across 2 segments · Q1 2022

  • Global Retail
    $213M
  • International Contract
    $99M-35.6%

Forward guidance

The company expects sales in the second quarter of fiscal 2022 to range between $1,025 million and $1,065 million, with adjusted earnings per share to be between $0.55 and $0.61.

Tailwinds

  • Sales are expected to increase by 67% compared to the same quarter last fiscal year on a reported basis.
  • Sales are expected to increase by 12% on an organic basis, excluding the impact of the Knoll acquisition and foreign currency translation.
  • Gross Margin % 35.6% - 36.6%
  • Effective Tax Rate 23% - 25%
  • Earnings Per Share, Diluted $0.55 to $0.61

Headwinds

  • Forecast considers the near-term impacts of supply chain disruptions.
  • Forecast considers the near-term impacts of inflationary pressures.
  • Operating Expenses $305 million to $311 million
  • Public health crises, such as pandemics (including coronavirus (COVID-19)) and epidemics, and any related company or government policies and actions
  • The risk that the anticipated benefits of the merger with Knoll will not be realized on the anticipated timing or at all

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.6%

Avg return

Earnings day

-0.3%

Avg return

5 days after

+2.4%

Avg return

30 days after

45%

26 / 58 earnings

Positive

+38.9%

Q1 2021

Best reaction

-23.0%

Q3 2026

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026
Q3 2026-23.0%-8.8%
Q2 2026+7.7%+3.0%+10.1%
Q1 2026-11.0%-6.3%-8.3%
Q4 2025-0.3%-2.1%+7.7%
Q3 2025+10.7%+4.7%-10.4%
Q2 2025-9.1%-12.7%-13.6%
Q1 2025-15.1%-10.9%-8.8%
Q4 2024+3.0%+3.2%+16.4%
Q3 2024-17.4%-12.8%-14.2%
Q2 2024-2.9%-3.3%-12.1%
Q1 2024+24.1%+23.8%+16.4%
Q4 2023+9.8%+6.1%+26.2%
Q3 2023-5.2%-2.0%-16.7%
Q2 2023+14.8%+16.4%+24.1%
Q1 2023-11.3%-11.2%+8.9%
Q4 2022-7.5%-7.0%+6.0%
Q3 2022+10.7%+9.8%+5.2%
Q2 2022-5.3%-10.3%-6.2%
Q1 2022-4.4%-1.1%-1.2%
Q4 2021-7.6%-3.5%-11.3%
Q3 2021-0.2%-0.6%+6.5%
Q2 2021-12.7%-16.1%-11.6%
Q1 2021+38.9%+27.7%+33.8%
Q4 2020-4.8%-10.0%-4.3%
Q3 2020+5.2%+16.6%+21.7%
Q2 2020-9.5%-10.1%-13.3%
Q1 2020+1.3%+3.2%+2.7%
Q4 2019+18.8%+18.5%+23.1%
Q3 2019-0.4%-3.5%+5.3%
Q2 2019-0.9%-5.1%+12.1%
Q1 2019+7.4%+3.9%-9.7%
Q4 2018+12.4%+13.0%+11.9%
Q3 2018-14.1%-17.5%-14.9%
Q2 2018+7.2%+5.7%+13.0%
Q1 2018-3.3%-2.1%+2.3%
Q4 2017+9.3%+10.0%+10.6%
Q3 2017+8.0%+6.3%+9.4%
Q2 2017-4.2%-5.4%-13.5%
Q1 2017-4.8%-9.2%-12.5%
Q4 2016+3.2%-10.7%+3.3%
Q3 2016+8.3%
Q2 2016+1.9%
Q1 2016+3.6%
Q4 2015+1.8%
Q3 2015+0.7%
Q2 2015-0.5%
Q1 2015+2.5%
Q4 2014-5.0%
Q3 2014+9.4%
Q2 2014-1.4%
Q1 2014+3.8%
Q4 2013-2.0%
Q4 2012+9.1%
Q4 2009-6.1%
Q3 2011-1.4%
Q2 2011-3.4%
Q4 2010-0.7%
Q1 2011-0.7%

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