<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
X QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
- ----- OF THE SECURITIES EXCHANGE ACT OF 1934
- ----- TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended December 3, 1994 Commission File No. 0-5813
HERMAN MILLER, INC.
A Michigan Corporation ID No. 38-0837640
855 Main Avenue, PO Box 302, Zeeland, MI 49464-0302 Phone (616) 654 3000
Herman Miller, Inc.
(1) has filed all reports required to be filed by Section 13 or 15(d)
of the Securities Exchange Act of 1934 during the preceding 12 months
Yes X No
----- -----
(2) has been subject to such filing requirements for the past 90 days.
Yes X No
----- -----
Common Stock Outstanding at December 30, 1994 -- 24,763,136 shares.
The Exhibit Index appears at page 17.
-1-
<PAGE> 2
HERMAN MILLER, INC. FORM 10-Q
FOR THE QUARTER ENDED DECEMBER 3, 1994
INDEX
<TABLE>
<CAPTION>
Page No.
--------
<S> <C>
Part I--Financial Information
Condensed Consolidated Balance Sheets--
December 3, 1994, and May 28, 1994 3
Condensed Consolidated Statements of Income--
Three Months and Six Months Ended December 3, 1994,
and November 27, 1993 4
Condensed Consolidated Statements of Cash Flows--
Six Months Ended December 3, 1994
and November 27, 1993 5
Notes to Condensed Consolidated Financial Statements 6-8
Management's Discussion and Analysis of
Financial Condition and Results of Operations 9-14
Part II--Other Information
Exhibits and Reports on Form 8-K 15
Signatures 16
Exhibit Index 17
</TABLE>
-2-
<PAGE> 3
HERMAN MILLER, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
December 3, May 28,
1994 1994
------------ --------
(unaudited) (audited)
<S> <C> <C>
ASSETS
- ------
CURRENT ASSETS:
Cash and cash equivalents $ 16,152 $ 22,701
Accounts receivable, net 162,013 121,564
Inventories--
Finished goods 27,452 20,299
Work in process 8,112 6,183
Raw materials 34,767 33,331
-------- --------
Total inventories 70,331 59,813
-------- --------
Prepaid expenses and current
deferred income taxes 26,226 24,590
-------- --------
Total current assets 274,722 228,668
-------- --------
PROPERTY AND EQUIPMENT, AT COST 483,312 454,894
Less-accumulated depreciation 230,585 215,932
-------- --------
Net property and equipment 252,727 238,962
-------- --------
OTHER ASSETS:
Notes receivable, net 44,128 36,659
Other noncurrent assets 35,586 29,457
-------- --------
Total assets $607,163 $533,746
======== ========
<CAPTION>
December 3, May 28,
1994 1994
----------- ---------
(unaudited) (audited)
<S> <C> <C>
LIABILITIES & SHAREHOLDERS' EQUITY
----------------------------------
CURRENT LIABILITIES:
Current portion of long-term debt $ 496 $ 506
Notes payable 61,728 48,911
Accounts payable 39,974 42,121
Accruals 106,235 86,187
-------- -------
Total current liabilities 208,433 177,725
-------- -------
LONG-TERM DEBT, less current portion 50,347 20,600
OTHER LIABILITIES 44,684 39,096
SHAREHOLDERS' EQUITY:
Common stock $.20 par value 4,953 4,918
Additional paid-in capital 20,173 16,649
Retained earnings 282,121 279,161
Cumulative translation adjustment (2,702) (3,460)
Unearned stock grant compensation (846) (943)
-------- -------
Total shareholders' equity 303,699 296,325
-------- -------
Total liabilities and
shareholders' equity $607,163 $533,746
======== ========
</TABLE>
See accompanying notes to condensed consolidated financial statements.
-3-
<PAGE> 4
HERMAN MILLER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
------------------ ----------------
Dec. 3, Nov. 27, Dec. 3, Nov. 27,
1994 1993 1994(1) 1993(2)
-------- -------- ------- --------
<S> <C> <C> <C> <C>
NET SALES $279,077 $241,822 $531,908 $463,388
COST AND EXPENSES:
Cost of goods sold 179,719 157,492 341,539 302,735
Operating expenses 81,714 67,340 159,527 130,527
Restructuring charges 15,500 -- 15,500 --
Interest expense 1,280 317 2,270 744
Other income, net (679) (810) (1,608) (1,675)
------- ------ ------- -------
277,534 224,339 517,228 432,331
------- ------- ------- -------
INCOME BEFORE TAXES ON INCOME 1,543 17,483 14,680 31,057
PROVISION FOR TAXES ON INCOME 100 6,300 5,300 12,400
------- ------- ------ -------
NET INCOME $ 1,443 $11,183 $ 9,380 $18,657
======= ======= ======= =======
NET INCOME PER SHARE $ .06 $ .44 $ .38 $ .74
======= ======= ======= =======
DIVIDENDS PER SHARE OF COMMON STOCK $ .13 $ .13 $ .26 $ .26
======= ======= ======= =======
</TABLE>
See accompanying notes to condensed consolidated financial statements.
(1) Represents 27 weeks
(2) Represents 26 weeks
-4-
<PAGE> 5
HERMAN MILLER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
(DOLLARS IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
Six Months Ended
----------------
Dec. 3, Nov. 27,
1994(1) 1993(2)
---------- -----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 9,380 $ 18,657
Depreciation and amortization 19,574 16,891
Restructuring charges 15,500 --
Changes in current assets and liabilities (47,146) (13,774)
Other, net 572 3,933
-------- -------
Net cash provided (used for) by operating activities (2,120) 25,707
-------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Notes receivable repayments 184,058 189,556
Notes receivable issued (192,267) (197,210)
Capital expenditures (25,596) (18,236)
Other, net (10,665) (1,139)
-------- -------
Net cash used for investing activities (44,470) (27,029)
-------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net common stock issued 3,744 8,281
Net long-term debt borrowings (repayments) 29,883 (57)
Net short-term debt borrowings 12,357 9,404
Dividends paid (6,397) (6,534)
Common stock purchased and retired (253) (1,634)
Other, net (146) (138)
-------- -------
Net cash provided by financing activities 39,188 9,322
-------- -------
EFFECT OF EXCHANGE RATE
CHANGES ON CASH 853 (376)
-------- -------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (6,549) 7,624
CASH AND CASH EQUIVALENTS
BEGINNING OF PERIOD 22,701 16,531
-------- -------
CASH AND CASH EQUIVALENTS
AT END OF PERIOD $16,152 $24,155
======== =======
</TABLE>
See accompanying notes to condensed consolidated financial statements.
(1) Represents 27 weeks
(2) Represents 26 weeks
-5-
<PAGE> 6
HERMAN MILLER, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOOTNOTE DISCLOSURES
The condensed consolidated financial statements have been prepared by the
company, without audit, pursuant to the rules and regulations of the Securities
and Exchange Commission. Certain information and footnote disclosures normally
included in financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to such rules and
regulations. The company believes that the disclosures made in this document
are adequate to make the information presented not misleading. It is suggested
that these condensed financial statements be read in conjunction with the
financial statements and notes thereto included in the company's Annual Report
on Form 10-K for the year ended May 28, 1994.
FISCAL YEAR
The company's fiscal year ends on the Saturday closest to May 31. Accordingly,
the year ended June 3, 1995, contains 53 weeks, and the year ended May 28,
1994, contains 52 weeks.
RESTRUCTURING CHARGES
Included in the accompanying consolidated statements of income is a charge to
account for the closure of the company's Fort Worth, Texas, and Dayton, New
Jersey, manufacturing and logistics facilities prior to the relocation of their
production activities to other U.S. Herman Miller facilities. In addition, the
charge also included the costs associated with the discontinuance of wood
casegoods manufacturing in the Sanford, North Carolina, facility, which will be
converted to wood flat stock manufacturing. When fully implemented, these
actions are expected to further improve customer responsiveness, increase
production capacity, and enhance long-term profitability.
The $15.5 million charge consisted of lease abandonments ($6.8 million),
termination benefits ($4.8 million), inventory and fixed asset write-offs
($2.7 million), and other exit costs associated with the restructuring ($1.2
million). Approximately 200 employees will be terminated as a result of the
facility closings. As of December 3, 1994, no amounts were paid or charged
against the $15.5 million accrued liability.
The closure of the facilities is expected to be substantially completed by the
end of fiscal 1995. The wood casegoods manufacturing will be discontinued in
early calendar 1995. After the activities covered by the charge are complete,
Herman Miller's remaining U.S. plants will be consolidated or converted to meet
growing needs for both (1) the more capital intensive core processes of wood
(Zeeland, Michigan, and Sanford, North Carolina), foam molding (Holland,
Michigan), steel fabrication (Stone Mountain, Georgia, and Spring Lake,
Michigan), and (2) the customer-focused processes of final assembly (Rocklin,
California; Roswell, Georgia; and West Michigan).
-6-
<PAGE> 7
SUPPLEMENTAL CASH FLOW INFORMATION
Cash and cash equivalents include all highly liquid debt instruments purchased
as part of the company's cash management function. Due to the short maturities
of these items, the carrying amount approximates fair value.
Cash payments for income taxes and interest (in thousands) were as follows:
<TABLE>
<CAPTION>
Six Months Ended
------------------------------
December 3, November 27,
1994 1993
----------- ---------
<S> <C> <C>
Interest paid $2,154 $ 729
Income taxes paid $7,835 $13,506
</TABLE>
CONTINGENCIES
On January 7, 1992, Haworth, Inc., filed a lawsuit in the U.S. District Court
for the Northern District of Georgia, Atlanta Division, against Herman Miller,
Inc., alleging that the electrical systems used in certain of the company's
products infringes one or more of Haworth's patents. On December 9, 1992, the
company's motion for change of venue was granted, and the lawsuit was
transferred to the U.S. District Court for the Western District of Michigan
(Southern Division).
The litigation is considered to be in an intermediate stage, and the company is
defending its position vigorously. The company has requested a jury trial,
which has been tentatively set for August 1995 by the court. The patents that
are the source of controversy expired on or before December 1, 1994. Since
1991, the company has sold a system of enhanced electrical components on the
majority of its product lines, both by number and dollar volume. Haworth has
admitted the enhanced electrical components do not infringe the patents in
suit. If Haworth were to be successful on its claims, the statute of limitation
would bar recovery of any damages arising prior to January 1986.
In November 1985, Haworth filed a lawsuit against Steelcase, Inc., the
industry's leader in market share, alleging violations of the same patents, and
thus far has prevailed on the issue of liability. The litigation between
Haworth and Steelcase currently is continuing on the issue of damages. The
company's defenses are substantially different from those relied upon by
Steelcase.
The company believes, based upon written opinion of counsel, that its products
do not infringe Haworth's patents and that the company is more likely than not
to prevail on the merits, although, as with all litigation, there can be no
absolute assurance of success. At this time, management does not expect the
ultimate resolution of this matter to have a material adverse effect on the
companyGs consolidated financial position. However, the outcome of this matter
is not subject to prediction with certainty.
-7-
<PAGE> 8
REPORT OF MANAGEMENT
In the opinion of the company, the accompanying unaudited condensed
consolidated financial statements taken as a whole contain all adjustments,
consisting of only a normal and recurring nature, necessary to present fairly
the financial position of the company as of December 3, 1994, and the results
of its operations and cash flows for the six months then ended. Interim results
are not necessarily indicative of results for a full year.
-8-
<PAGE> 9
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following is management's discussion and analysis of certain significant
factors which have affected the company's financial condition and earnings
during the periods included in the accompanying condensed consolidated
financial statements.
A. Financial Summary
A summary of the period-to-period changes is shown below. It should be
noted that the six months ended December 3, 1994, contained 27 weeks. All
amounts are increases (decreases) unless otherwise noted. Dollars are
shown in thousands.
<TABLE>
<CAPTION>
Three Months Six Months
--------------------- ----------------------
$ % $ %
------- ----- ------- -----
<S> <C> <C> <C> <C>
NET SALES 37,255 15.4 68,520 14.8
COST OF GOODS SOLD 22,227 14.1 38,804 12.8
OPERATING EXPENSES 14,374 21.3 29,000 22.2
RESTRUCTURING CHARGES 15,500 100.0 15,500 100.00
INTEREST EXPENSE 963 303.8 1,526 205.1
OTHER (INCOME) EXPENSE, NET 131 16.2 57 3.5
INCOME BEFORE TAXES ON INCOME (15,940) (91.2) (16,377) (52.7)
PROVISION FOR TAXES ON INCOME (6,200) (98.4) (7,100) (57.3)
NET INCOME (9,740) (87.1) (9,277) (49.7)
</TABLE>
-9-
<PAGE> 10
B. Results of Operations
Net sales increased $37.3 million, or 15.4 percent, over second
quarter results a year ago. For the second three months of 1995, the
company had net sales of $279.1 million, compared with net sales of
$241.8 million in the second three months last year. For the first six
months of 1995, the company had net sales of $531.9 million, compared
to net sales of $463.4 million in the first six months last year.
Net sales of $279.1 million for the second quarter were the highest
recorded in any quarter of the company's history. The previous record
of $252.8 million was achieved in the first quarter of fiscal 1995,
which was a 14-week quarter versus the second quarter, which was a
13-week quarter. According to the most recent statistics of the
Business and Institutional Furniture Manufacturers Association
(BIFMA), United States office furniture sales for year-to-date
calendar 1994 increased 8 percent over the same periods a year ago.
This compares with the company's year-over-year United States net
growth rates of 12.5 percent for the second quarter.
Net sales of international operations and export sales from the United
States in the second quarter ended December 3, 1994, totaled $52.4
million compared with $40.2 million last year. For the first six
months of 1994, net sales of international operations and export sales
from the United States were $88.8 million compared with $65.8 million
last year.
The backlog of unfilled orders at December 3, 1994, was $157.7 million
compared with $140.7 million a year earlier, and $151.0 million at
September 3, 1994.
New orders received in the second quarter increased $35.3 million to
$285.8 million, or 14.1 percent, when compared to the same period a
year ago. New orders for the first six months increased $76.6 million
to $551.0 million, or 16.2 percent, when compared to the first six
months of fiscal 1994. New orders received in both the second quarter
and the first six months were new records for any fiscal quarter and
six-month period. The percentage increase in new orders for the second
quarter and first half of fiscal 1995 indicate solid order formation,
which has continued to-date in the third quarter.
Gross margin increased to 35.6 percent during the second quarter of
1994, compared to a gross margin of 34.9 percent for the same period
last year. The gross margin for the first six months increased to 35.8
percent of net sales compared with 34.7 percent in the prior year.
Despite relative price stability, material costs increased in the
second quarter because of higher aluminum, steel, and fabric prices.
While these costs increased over both the first quarter of 1995 and
the second quarter a year ago, the amount of increase in material
prices experienced by the company was significantly less than the
general level of price increases in these commodities which have been
widely reported recently. Improved integration between Herman Miller
and its supplier partners has helped to mitigate the adverse effects
of material cost increases on overall gross margin.
-10-
<PAGE> 11
In addition, labor costs also were higher in the second quarter
because of overtime associated with the higher unit volumes shipped.
Manufacturing overheads declined during the period as a majority of
these expenses are fixed over the relevant volume ranges experienced by
the company.
Operating expenses (excluding restructuring charges) were $81.7
million for the second quarter, an increase of $14.4 million, or 21.3
percent, over second quarter last year. Operating expenses (excluding
restructuring charges) for the first six months of 1995 were $159.5
million, a $29.0 million increase over the $130.5 million operating
expenses for the first six months of 1994. As a percent of net sales,
operating expenses (excluding restructuring charges) were 30.0 and 28.2
for the first six months of the current and prior year, respectively.
Just as in the case of the first quarter of fiscal 1995, the major
components of this change were (1) a 3.5 percent year-over-year
increase in compensation and benefits, (2) the continued assimilation
of our recently acquired Mexican and German operations into the Herman
Miller family of companies, (3) increased depreciation and amortization
expense, principally associated with new processes and products and,
most significantly and importantly, (4) the increased cost to develop
and bring new products to market.
As indicated in the first quarter, these new products, all of
which are expected to be introduced in the next 12 months, are in the
seating, European freestanding furniture, and health-care product
areas. While augmenting (rather than obsoleting) the company's current
offerings, these products (as those which preceded them in Herman
Miller's tradition of product innovations) can be expected to help
establish value and performance reference points in each of these
areas. The company expects these products to be long lived and help
gain additional market share over product life cycles of 10 or more
years. In the more immediate time frame, management believes these new
products will add 2 to 3 percent to its net sales for the fiscal year
ending June 3, 1995, with the primary amounts coming in the current
quarter and, more significantly, in the fourth quarter. Margin rates on
these products are expected to be comparable to those of the company's
existing product lines.
The investment spending incurred in the second quarter and
first half can be expected to continue at a slightly decreased rate
during the remainder of the year as these new products advance to and
through the research, design, and launch phases.
The company incurred $15.5 million pretax restructuring charge
in the United States for manufacturing and logistical restructuring.
These charges reduced second quarter net income by $9.6 million, or
$.39 per share. The production facility reconfiguration will enable the
company to develop the capability to process and direct ship customer
orders in their entirety rather than in stages (which requires
additional warehousing and transportation between stages) as presently
is the case. This simplification will save an estimated $.8 million in
this fiscal year, $7 million in fiscal 1996, $10 million in fiscal
1997, and $20 million in fiscal 1998 when the entire process is fully
implemented. These savings will take the following forms: (1) lower
transportation and freight costs resulting from the regional assembly
sites being able to optimize both freight loads and traveled distances,
(2) customer direct shipping savings, which will minimize both the need
for and amount of product packaging as well as the possibility of
incorrect or damaged
-11-
<PAGE> 12
shipments, (3) improved inventory turns and smaller higher-cost
finished goods inventories, and (4) further operational leverage of all
indirect production and logistic costs.
In addition, the company's unit production capacity will
increase by approximately 40 percent upon completion of the project.
The capital for machinery and equipment as well as additional facility
space to implement this program is estimated at $40 million over the
next four years. This amount will be spent as dictated by the company's
customer demand-driven implementation rate which management projects as
follows: $3 million this fiscal year, and $10 million, $14 million, and
$13 million in fiscal years 1996-98, respectively.
Interest expense increased $1.0 million over second quarter
1994. Total interest bearing debt was $112.6 million at the end of the
second quarter of fiscal 1995, compared with $48.8 million at November
27, 1993.
Net other income decreased $.1 million over second quarter
1994. For the first six months of 1995, net other income decreased to
$1.6 million from $1.7 million in the prior year.
Net income in foreign subsidiaries reduced the second quarter
effective tax rate (before restructuring charges) to 35.2 percent
versus 39.6 percent in the first quarter and 36.0 percent in the same
period a year ago due to the use of net operating loss carryforwards.
The company expects its tax rate for all of fiscal 1995 to be between
35 and 37 percent.
Net income decreased to $1.4 million in the second quarter,
compared to $11.2 million income for the same period last year. Net
income for the first six months of 1995 was $9.4 million compared to
$18.7 million for the same period last year. As previously discussed,
the decrease in net income was primarily due to the $15.5 million
pretax restructuring charges. These charges reduced second quarter net
income by $9.6 million.
The company's international operations and export sales from
the United States for the second quarter resulted in a net loss of $.5
million compared with a net income of $1.5 million last year. The first
six months loss increased $.4 million to a $1.3 million loss, compared
with net loss of $.9 million for the same period last year.
International results in the second quarter were reduced by
lower sales and lower results in Canada and higher sales and lower
results in Continental Europe and Mexico. Sales and profitability gains
elsewhere, especially in Japan, offset these lower results. The United
Kingdom resumed profitability in the second quarter, and has been
profitable four of the last five consecutive quarters. Order entry for
all of Europe improved over 50 percent during both the second quarter
and first six months compared to the same periods a year ago. Total
European backlog on December 3, 1994, was at a four-year high.
-12-
<PAGE> 13
The company is continuing to evaluate the adverse financial and
operating effects of the devaluation of the Mexican peso, which began
December 20, 1994. Because of the volatility of the peso since that
time and the significant time remaining in the third quarter,
management estimates of the negative effects of the peso devaluation
cannot be made at this time.
C. Financial Condition, Liquidity, and Capital Resources
First Six Months FY 1995 versus First Six Months FY 1994
Increased net sales and continued investment spending also
significantly affected the balance sheet and statement of cash flows
for the period ended December 3, 1994. The number of days sales in the
sum of accounts receivable plus inventory increased to 91.9 days
versus 84.8 days a year ago and 80.9 days at May 28, 1994. This
increase primarily was due to an increased level of shipments during
the month of November, which also resulted in a $28.4 million increase
in cash used for working capital items during the quarter. This
increased working capital cash use was the primary factor causing net
cash provided by operating activities to reverse from $9.2 million and
$25.7 million in the second quarter and first half of fiscal 1994,
respectively, to net cash uses of $4.9 million and $2.1 million for
the second quarter and first half of fiscal 1995, respectively.
Overall asset utilization as measured by net sales per dollar of
average assets improved to $1.92 during the second quarter and $1.86
for the first half, maintaining the improvement to $1.87 from $1.79
recorded for all of fiscal 1994. These figures compare with $1.68 five
years ago. Effective and improving asset utilization continues to be a
key competitive strength in the company's industry.
Capital expenditures for the quarter were $13.8 and $25.6 million,
respectively, for the second quarter and first half of fiscal 1995
versus $9.4 and $18.2 million, respectively, for the same periods a
year ago. Capital items principally included expenditures for new
internal processes and the new products described above. Accelerated
work on new processes and new products has caused management to
increase the company's projected capital expenditures for fiscal 1995
to $65 million.
The second quarter year-over-year decrease of $14.1 million in cash
provided by operating activities and the year-over-year increase in
cash used for investing activities of $8.7 million caused an increase
of $26.6 million in interest-bearing debt. Total interest-bearing debt
increased to $112.6 million at December 3, 1994, which, in turn,
increased interest expense for the quarter to $1.3 million and $2.3
million for the first half of fiscal 1995 compared with $.3 million in
the second quarter a year ago and $.7 million for the first half of
fiscal 1994. Management expects interest-bearing debt to remain in the
range of $90-$110 million for the remainder of fiscal 1995.
The second quarter continued the accelerated investment and capital
spending begun in the fourth quarter of fiscal 1994. This strategy
combines the financial strength the company has built during the past
five years with its desire to continue to set distinctive reference
points for
-13-
<PAGE> 14
products and services in its markets. Despite its retarding
effect on the company's net income, management believes these
investments are necessary in order to continue the process of building
long-term value for its shareholders.
-14-
<PAGE> 15
Part II
<TABLE>
<CAPTION>
Item 6: Exhibits and Reports on Form 8-K
<S> <C>
1. Exhibits
See Exhibit Index
2. Reports on Form 8-K
No reports on Form 8-K were filed during the three months ended December 3, 1994.
</TABLE>
-15-
<PAGE> 16
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereto duly authorized.
<TABLE>
<S> <C>
HERMAN MILLER, INC.
January 12, 1995 \s\ J. Kermit Campbell
-------------------------------------------------
J. Kermit Campbell
(President and
Chief Executive Officer)
January 12, 1995 \s\ James H. Bloem
--------------------------------------------------
James H. Bloem
(Vice President,
Chief Financial Officer,
and Principal Accounting Officer)
</TABLE>
-16-
<PAGE> 17
*Exhibit Index
Exhibit
Number Description
- ------- -----------
11 Computations of earnings per common share.
27 Financial Data Schedule (exhibit available upon request).
-17-
<PAGE> 1
EXHIBIT 11
HERMAN MILLER, INC.
COMPUTATIONS OF EARNINGS PER COMMON SHARE
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
----------------------- ------------------
Dec. 3, Nov. 27, Dec. 3, Nov. 27,
1994 1993 1994(1) 1993(2)
--------- ---------- --------- ---------
<S> <C> <C> <C> <C>
NET INCOME APPLICABLE
TO COMMON SHARES $ 1,443 $ 11,183 $ 9,380 $ 18,657
========== =========== =========== ==========
Weighted Average Common
Shares Outstanding 24,704,544 25,244,718 24,653,579 25,190,088
Net Common Shares
Issuable Upon Exercise
of Certain Stock Options 77,219 160,333 100,348 166,423
-------- ---------- ------- --------
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING AS ADJUSTED 24,781,763 25,405,051 24,753,927 25,356,511
========== =========== =========== ==========
NET INCOME PER SHARE $ .06 $ .44 $ .38 $ .74
========== =========== =========== ==========
</TABLE>
(1) Represents 27 weeks
(2) Represents 26 weeks
-18-
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-03-1995
<PERIOD-START> MAY-29-1994
<PERIOD-END> DEC-03-1994
<CASH> 16,152
<SECURITIES> 0
<RECEIVABLES> 168,729
<ALLOWANCES> 6,716
<INVENTORY> 70,331
<CURRENT-ASSETS> 274,722
<PP&E> 483,312
<DEPRECIATION> 230,585
<TOTAL-ASSETS> 607,163
<CURRENT-LIABILITIES> 208,433
<BONDS> 50,347
<COMMON> 4,953
0
0
<OTHER-SE> 298,746
<TOTAL-LIABILITY-AND-EQUITY> 607,163
<SALES> 531,908
<TOTAL-REVENUES> 531,908
<CGS> 341,539
<TOTAL-COSTS> 341,539
<OTHER-EXPENSES> 174,529
<LOSS-PROVISION> 498
<INTEREST-EXPENSE> 2,270
<INCOME-PRETAX> 14,680
<INCOME-TAX> 5,300
<INCOME-CONTINUING> 9,380
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 9,380
<EPS-PRIMARY> .38
<EPS-DILUTED> .38
</TABLE>
