Q3 2025 Steelcase Inc Earnings Call
Compared to the prior year, we posted organic revenue growth of 3%, including 7% growth in the Americas, partially offset by an 8% decline in international.
The Americas third quarter revenue growth benefited from favorable shipment timing in our beginning backlog.
We will have an impact on our fourth quarter comparisons.
Our prior year adjusted operating income included benefits from a decrease in the valuation of an acquisition earn out liability and gains from the sale of fixed assets setting those items aside our improvement in the Americas was due to the strong volume growth higher pricing benefits.
And cost reduction initiatives.
While the international decline was largely due to lower volume and higher competitive discounting.
Due to the continued soft demand in our international segment, we implemented additional restructuring actions and other cost reduction measures during the quarter.
Which together are projected to drive approximately $5 million of annualized cost savings by early fiscal 2026.
As it relates to cash flow and the balance sheet cash and short term investments increased $70 million from Q2, driven primarily by $71 million of adjusted EBITDA.
Our trailing four quarter adjusted EBITDA of $284 million improved by 9% over the prior year and as a percentage of revenue for our trailing four quarter EBITDA margin.
Prove to 9.0% compared to eight 1% in the prior year.
Our total liquidity, which includes the cash surrender value of coli aggregated to $577 million at the end of the quarter, which exceeded our total debt of $447 million.
We repurchased approximately 400000 shares in the third quarter or approximately two 1 million shares on a year to date basis.
When aggregated with our quarterly dividend of <unk> 10 per share we've returned over $60 million to shareholders in the first nine months of fiscal 2025.
Speaker Change: As Sarah mentioned, we are now targeting our ERP go live for the second quarter to provide more time for system development and testing.
Speaker Change: As a reminder, we were projecting $75 million to $85 million in capital expenditures for fiscal 2025.
Speaker Change: This included approximately $35 million of investments related to the ERP implementation.
Speaker Change: With the additional development and related shift of our targeted go live we anticipate capitalizing additional expenses in the fourth quarter, increasing our total capital expenditures projection to approximately $100 million for fiscal 2025.
Speaker Change: This full year estimate includes approximately $15 million of capitalized internal labor costs.
Speaker Change: As we move into fiscal 2026 and finished the build in development phase much of the expected project costs related to the testing go live and stabilization phases are expected to be expensed as incurred.
Speaker Change: As a result, the fiscal year over year annual impact to operating costs is expected to be more than $20 million, including the expected initial amortization of the capitalized development costs.
Speaker Change: We also expect to begin capturing some of the value of our streamline business processes and enhanced capability of the new ERP system. After we go live in fiscal 2026.
Speaker Change: Orders in the quarter were down modestly compared to the prior year and included 2% growth in the Americas, and an 8% decline in international.
Speaker Change: In the Americas Q3 marks the fifth consecutive quarter of year over year order growth in the 2% growth rate in the current quarter compares to 16% growth in Q3 of the prior year.
Speaker Change: The order growth was driven by government customers and as Sarah mentioned, our order trends from large corporate customers improved in November and have continued to be strong into December.
Our project business grew in Q3, while our continuing business or day to day orders declined.
Speaker Change: We continue to believe the growth in our project business is reflective of how we are leading the transformation of the workplace as evidenced by our strong win rates and estimated market share gains over the last year in the Americas.
Speaker Change: For international the 8% order decline was driven by declines in most of our major markets in Asia Pacific and France. However.
Speaker Change: However, we did see order growth in Germany, and some smaller markets in EMEA.
Speaker Change: And we are encouraged by higher project activity levels from some of our global customers in our international markets as well as some recent wins related to large opportunities with national accounts in France, Germany, and the middle East.
Speaker Change: And for the first time in many quarters, we posted year over year order growth in China in total Asia Pacific orders grew nearly 20% on a sequential basis as compared to the second quarter.
Speaker Change: Turning to our outlook for the fourth quarter, our overall backlog at the end of the third quarter was down 5% compared to the prior year and while orders during the first three weeks of December were strong growing 15% over the same period in the prior year. They included a number of large.
Speaker Change: Projects scheduled to ship beyond the end of the quarter.
Accordingly, we expect to report revenue within a range of 770 to 770, sorry, excuse me $770 million to $795 million.
Speaker Change: Which after taking into consideration an additional week of shipments in the current quarter represents an organic decline of between 4% to 7%.
Speaker Change: Before moving to our earnings expectations I want to share a few comments regarding an issue we're navigating in our supply chain.
Speaker Change: The issue is related to our laminate supplier that was significantly impacted by hurricane Helene and.
Speaker Change: And we believe the disruption is being felt across our industry.
Speaker Change: Efforts are being taken to mitigate the impacts to our customers.
Speaker Change: However, it could take several months before the disruption is fully resolved and it's possible that the outcome of these efforts could be different than the assumptions, we utilized in determining the range of revenue projected for the fourth quarter.
Speaker Change: As it relates to earnings we expect to report adjusted earnings of between 20% to 24 per share, which compares to 23 in the prior year.
Speaker Change: In addition to the projected range of revenue. The adjusted earnings estimate includes gross margin of approximately 33, 5% and.
Speaker Change: And operating expenses of between $230 million to $235 million, which includes $4 3 million of amortization related to purchased intangible assets.
Speaker Change: Lastly, we expect interest expense and other non operating items to net to approximately $1 million of expense.
Speaker Change: And we are projecting an effective tax rate of approximately 27%.
Speaker Change: Based on our year to date results and our fourth quarter projections, we believe our fiscal 2025 adjusted earnings per share will finish above our targeted range for the year.
Speaker Change: And as Sarah said, we're proud of the results our teams are driving and the progress we're making on our most important initiatives.
Speaker Change: As we begin to think about fiscal 2026, we believe the current macroeconomic environment and what we're hearing from our large customers in the Americas are supportive of us targeting organic revenue growth and improved adjusted earnings for next year.
Speaker Change: During the current year demand from the financial services sector improved significantly and we believe there was a correlation with the stance. Many of those companies took about increased employee presence in their offices.
Speaker Change: We are seeing a similar shift in expectations regarding the number of days in office across several large customers in the technology sector.
Speaker Change: We're pre sales activity and demand expectations are also beginning to improve.
Speaker Change: We also expect growth from small to mid sized education and health care customers.
Speaker Change: And we are encouraged by the positive signs in our international markets that I mentioned earlier.
Speaker Change: The key to potentially driving meaningful organic revenue growth in fiscal 2026 is related to our large corporate customers.
Speaker Change: And it seems the level of demand from that customer segment may be at or near an inflection point.
Speaker Change: Regarding adjusted earnings in fiscal 2026, we are targeting additional benefits from our gross margin improvement initiatives.
Speaker Change: And we expect to begin capturing some value from our business transformation initiatives in new ERP system.
Speaker Change: However, as I stated, we expect to capitalize less of the related implementation costs in fiscal 2026 compared to fiscal 2025, and it's prudent to imagine some level of inefficiency during the cutover to the new system.
Speaker Change: Plus we intend to further invest in our revenue diversification strategies.
Speaker Change: Thus, we expect gross margin expansion in fiscal 2026 to be mostly driven by the benefits of projected volume growth.
Speaker Change: And our operating expense leverage could be relatively flat year over year.
Speaker Change: For purposes of updating your models now we believe a low to mid single digit organic revenue growth rate for fiscal 2026 is a reasonable target at this point.
Speaker Change: But likely with a low contribution margin.
Speaker Change: After we complete our fiscal 2026 detailed planning process in Q4, we will provide a more detailed outlook in March.
From there we will turn it back to the operator for questions.
Speaker Change: At this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad, we'll pause for just a moment to compile the Q&A roster.
And your first question today comes from the line of Reuben Garner from benchmark. Your line is open.
Reuben Garner: Thank you and good morning, everybody.
Speaker Change: Good morning.
Speaker Change: Dave maybe just to start where we ended on ERP, just just to be clear the $20 million.
Speaker Change: How much of that is kind of.
Speaker Change: Does that include those inefficiencies that you talked about or that's just purely startup costs and capital.
Speaker Change: Amortization.
Speaker Change: Being expensed and then how much of that is one.
Speaker Change: Fine.
Speaker Change: And may kind of go away when we get the modeling out for 27%.
So it's a purely related to the implementation cost the inefficiency associated with go live is.
Speaker Change: Separate and we can talk about that but the $20 million reference that I made is as related to us capitalizing outside consulting and internal labor this year.
Speaker Change: <unk> expenses likely expensing most of it next year.
Speaker Change: And that year over year swing is 'twenty and the elements that are one time I don't have that off the top of my head I think maybe Mike can follow up with you.
Speaker Change: My my.
Speaker Change: Estimate I guess off the cuff would be probably in the neighborhood of $10 million.
Speaker Change: Let me follow up with Mike to confirm whether that number is.
Speaker Change: Is reasonable estimate.
Speaker Change: Okay. That's helpful.
Speaker Change: And then as far as the items that you mentioned to offset whether it's the efficient the benefits that you get from the ERP or your gross margin initiatives.
Speaker Change: Your stance today that you will have some but it won't fully offset that $20 million or so.
Speaker Change: Just wanted to be clear you are not suggesting that youre going to get more than $20 million in those things.
Speaker Change: No I think it started towards the back end of the year on the benefits of the new ERP.
Speaker Change: But we should talk a minute about the inefficiencies that we imagine we will have to ramp down.
Speaker Change: Production in advance of the go live and then and then gradually ramp it up after the go live we don't expect any impact to customers because we will be able to build ahead in and catch up we believe.
Speaker Change: But the impact due to the labor in our facilities that we will be working on other things other than production will drive some I'd say meaningful inefficiencies, which is why we're projecting at this point that the gross margin improvement will next year, we'll most.
Speaker Change: Likely be attributable to the volume growth versus additional gross margin improvement initiatives that will also be targeting.
Speaker Change: Okay got it and.
Speaker Change: The three week order trend I think it was that you highlighted in your press release.
Speaker Change: I guess can you talk about.
Speaker Change: How maybe one what was the year ago comparison on that was there anything funny going on a year ago or was that growth on top.
Speaker Change: Of growth and then secondarily.
Speaker Change: Do you feel like that with some potentially some catch up after that that lull kind of heading into the election or does it feel like maybe some of the funnel and pipeline that you have is just kind of reaching that point of of kind of <unk>.
Speaker Change: Translating the orders that we've been waiting for like how do we think about the 15% number.
Speaker Change: Well I think we feel pretty good about it I think last year in the first three weeks, we referenced the 7% growth rate in the first.
Three weeks, so <unk> on top of the seven so we feel pretty good about that.
Speaker Change: You referenced the potential low due to the elections I don't know for certain but I would I would guess that our large corporate customers werent they weren't necessarily waiting to see the outcome of the election I think just the timing of their orders was playing out differently than our internal.
Speaker Change: CRM or our sales tools, where we're suggesting so we mentioned on the last call and maybe even the call before that that we feel pretty good about the activity levels that we're seeing across our large customer base.
Speaker Change: And felt like those orders were coming the projects were active we had won them.
Speaker Change: We just werent seeing them develop into orders and I think we're starting to see some of that in the first three weeks of December.
Speaker Change: Okay, I'm going to sneak one more in there if you don't mind, the low to mid single digit kind of framework for next year.
Speaker Change: You mentioned restructuring and international what what kind of internally does that look like today that breakout between kind of Americans expectations versus.
Speaker Change: International and other businesses, yes.
Speaker Change: We'll be targeting profitability in the international segment, driven by some level of volume growth, which we haven't entirely iron.
Speaker Change: Ironed out.
Speaker Change: But some level of volume growth and the benefits of all the cost reduction.
Speaker Change: Activities that we've launched and implemented over the last almost 18 months in fact, if you get a second when we release our Q later today there is a restructuring footnote that provide some color about each one of the restructuring activities that we've been taking many of which have been a real.
Speaker Change: Related to the international segment.
Speaker Change: Okay.
Speaker Change: Got it. Thank you guys congrats on the strong quarter.
Speaker Change: Happy holidays to all of you.
Speaker Change: Thanks for taking you to heal.
Speaker Change: Our next question comes from the line of Steven Ramsey from Thompson Research Group. Your line is open.
Speaker Change: Yeah.
Speaker Change: Hi, good morning.
Speaker Change: Wanted to start with the continuing business trends.
Speaker Change: <unk> cited that they declined in the quarter could you maybe.
Speaker Change: Clarify the order of magnitude of that decline and then maybe how you see continuing business shaping up into FY 'twenty six.
Speaker Change: Yes, good question Stephen.
Speaker Change: The decline is up against a strong growth in the prior year.
Speaker Change: Remember the first thing that started to show improvement was our continuing our day to day business.
Speaker Change: We had a theory over a year ago, maybe couple of years ago that once we started seeing more people getting back into the office that day to day business would restart and as we saw that particularly in the financial services sector. We saw our day to day business pick up pretty strongly.
So we had we had nice growth throughout much of last year from continuing and then late in the year project growth.
Speaker Change: Started to kick in so it's up against.
Speaker Change: I think a double digit growth rate in the prior year, Mike could validate that.
Speaker Change: A follow up call, but I'm pretty sure it's double digit and I suspect that its going to show some improvement as we see potentially the tech sector get back in the office more significantly than other vertical markets to also increase their in office presence.
Speaker Change: Okay.
Speaker Change: Okay. That's helpful. And then maybe an add on to that comment you. Just made are you seeing the continuing business in the tech sector already starting to inflect upwards or maybe describe the trend in that sector. So that we can get a feel for how it is comping relative to the financial services trend line.
Speaker Change: I haven't seen it yet Steven but I also have to tell you havent doubleclick by vertical market.
Speaker Change: Continuing business to really look at it closely.
Speaker Change: But I don't remember anyone noting that it was growing.
In a significant way, while everything else was declining.
Speaker Change: Okay. Okay understood on the international side, you saw competitor discounting pressures can you put that into context for the past six to 12 months is it worsened.
Speaker Change: And if it was happening in particular geographies.
Speaker Change: It was a broader impact and then maybe lastly, do you expect that to persist into calendar 'twenty five.
Speaker Change: Well I would say.
Speaker Change: It feels relatively broad based I don't know that I would use the phrase worsen.
Speaker Change: I would just say that the volume levels in the western European market have been challenged for the last couple of years.
Speaker Change: It's quite competitive as a result.
Speaker Change: We are also.
Speaker Change: Intentionally focusing on a few different things.
To expand our volume levels in certain vertical markets and in certain geographies.
Speaker Change: I wouldn't say, we've used discount dollars only to go after that business, but to sometimes.
Speaker Change: Disrupt.
Speaker Change: An engaged customer with a competitor you have to you have to show you're serious about wanting wanting that business. So that's my way of saying its more strategic discounting, but there is some element of it is quite competitive in Europe.
Speaker Change: Okay. Okay. That's helpful.
Speaker Change: And then last one.
Speaker Change: For me would be around America share gains.
Speaker Change: <unk>.
Speaker Change: Your success in that effort in the last year or so as you look out into the next year.
Speaker Change: Do you see the share gains coming from the same places.
Speaker Change: Do you see any kind of shift in where you are winning in.
Speaker Change: Incremental business.
Speaker Change: I think we're going to continue to target the share gains.
As we have.
Speaker Change: Stayed invested.
Speaker Change: And and how the workplace, we believe is going to transform and we did.
Speaker Change: <unk> did not reduce our sales force to the extent that some of our competitors did.
Speaker Change: During the worst of the pandemic.
Speaker Change: And so we've kept our relationship strong with large global accounts. So we're hopeful that that will continue to produce market share gains like it has this year and much of last year.
Speaker Change: Okay.
Everyone.
Speaker Change: Thanks Steven.
Speaker Change: Your next question comes from the line of Greg Burns from Sidoti Your line is open.
Good morning.
Speaker Change: Could you just maybe give us a little bit of color on your exposure to potential tariffs next year.
Speaker Change: Where where that might impact your business and how much of that is reflected in your <unk>.
Speaker Change: Our guidance for fiscal 'twenty six.
Speaker Change: While this was a good call Greg before you brought that up.
Speaker Change: So we knew it would come up it comes up in virtually every one on one so.
Speaker Change: So we don't really have anything built into our guide of course tariffs that are currently in place and some markets are built into the guide, but I think you're referring to the.
Speaker Change: Incremental tariffs that have been talked about as potentially being put in place by the new administration.
So we've looked at this quite carefully and we have are evaluating contingency plans and we're taking some actions where.
Speaker Change: We can which includes buying.
Speaker Change: Buying additional inventory in advance of potential tariffs being put into place.
Speaker Change: So we're in the process of doing some of that.
Speaker Change: Would tell you that our business really kind of where the tariff exposure really kind of falls into.
Speaker Change: Three buckets, one bucket is.
Speaker Change: A bucket of.
Speaker Change: Supply chain, where we think much of the industry is leveraging the same suppliers internationally and if those tariffs are enacted.
Speaker Change: It's likely or it's imaginable that those tariffs will be passed on to customers because it will affect the broader industry.
Speaker Change: There is another bucket that were a little bit more uniquely positioned.
Speaker Change: And I'm, referring to maybe the China.
Speaker Change: Taiwan and other international markets.
Speaker Change: That bucket, we've been continuing to look at ways to reduce our exposure by bringing some things in house and developing contingency plans. That's also an area where we are looking at.
Building inventory a little bit in advance of the tariffs, which will provide us more time to evaluate what action what additional actions we might want to take.
Speaker Change: And then the third action, which is the largest is related to Mexico.
Speaker Change: We operate a couple of maquiladora is as you know.
Speaker Change: That produce a relatively significant amount of product for us here in the U S.
Speaker Change: And if those are impacted.
They will be one of I guess, a few thousand companies that are operating as maquiladora.
Speaker Change: And we just we're developing contingency plans, but we're not necessarily taking action because we're not convinced those are actually going to play out.
Speaker Change: Because I think a lot of financial experts predict that if few tariff piece.
Speaker Change: These thousands of maquiladora.
Speaker Change: Youre going to create significant inflation.
Speaker Change: Across the U S.
Speaker Change: That seems to be something the administration wants to avoid at the same time.
Speaker Change: So I'm not saying, we're not going to do anything related to Mexico, but if they were we will have to evaluate and take action accordingly, but we are in a bit of a unique position there because not the not all of the industry is leveraging a maquiladora some of us are but not everyone.
Speaker Change: Okay.
Speaker Change: Thanks for that and then.
Speaker Change: Thanks Sarah.
Speaker Change: And your your.
Speaker Change: Paired remarks.
Speaker Change: You kind of mentioned kind of slower business development. This year from where you maybe thought coming into the year.
Speaker Change: Where it would be coming into the year.
Speaker Change: Is that really.
Speaker Change: To international or is that also.
Speaker Change: Apply to the Americas segment, and maybe why or why do you think it's been a little bit slower.
Speaker Change: The development I guess, the recovery has been slower than thought.
Speaker Change: Yeah, I think my comment was really around the industry projections for growth. So looking at things like this my data and industry data coming into the year those indicators were suggesting I would say.
Speaker Change: Modest industry growth and as the year has played out in the America has the industry projections or the industry actual data is showing.
Speaker Change: Kind of flat to slightly negative as a whole across the entire market. So my comment was really relative to you.
Speaker Change: Our interpretation of that industry data in terms of how we were expecting our growth to compare and.
Speaker Change: And we've seen we've seen that just be a little bit slower now as Dave mentioned, we've seen a lot of nice momentum of late we continue to take share. So I think we see a lot of things that give us.
Speaker Change: Positive comps for the future and where momentum May go.
Speaker Change: And I think really the broader industry data is just goes back to what are we seeing and what are we all expecting with respect to the extent to which organization have employees return to the office to what extent.
Speaker Change: As they do that they're making decisions to invest in their spaces and you generate demand. So they'll really is how we are.
Thinking about our prospects relative to the industry projections and coming into the year the industry projections were a bit more optimistic than in hindsight.
Speaker Change: See things play out.
Speaker Change: Okay.
Speaker Change: And then just lastly, when we look at the guide for the revenue guide for the.
Fourth quarter.
Speaker Change: And the third quarter results, we take them as a whole.
Speaker Change: Yeah.
Speaker Change: I know there was some favorable favorability in the third quarter in terms of.
Speaker Change: Timing of order shipments so maybe that pulled forward some revenue, but when you look at the second half.
Speaker Change: Is it coming in in line with expectations as a whole or is it still below expectations and you expect maybe heading into the year to build momentum as we head into 'twenty six how do we view the second half results.
Speaker Change: And versus maybe what you're guiding to for this.
Speaker Change: For 2026.
Speaker Change: Well it depends on what set of expectations you are talking about if we go back to the beginning of the year. There are certainly below those those level of expectations, where we imagined organic growth between 1% to 5% for the full fiscal year with it.
Building with demand levels building as we as we went through the year. If you look if you compare it to more recent expectations I would say, it's more in line to slightly lower because of the timing of these large project orders coming in a little bit later than we were initially anticipating maybe three to four.
Speaker Change: Months ago five months ago.
Speaker Change: So, it's a little bit softer, but what I feel really good about is that were coming in.
On top of or ahead of the range of adjusted earnings we projected for the year and demand feels like it's building going into next year.
Speaker Change: Okay, great. Thank you.
Speaker Change: Yep.
Speaker Change: Your next question comes from the line of Joe Gomes from Noble capital markets. Your line is open.
Joe Gomes: Good morning, Thanks for taking my questions.
Speaker Change: Good morning, Joe.
Speaker Change: So I just wanted to start out on the international side, you talked about some green shoots so to speak.
Speaker Change: And just kind of.
Speaker Change: Wondering what gives you confidence or what what kind of needs to happen there to get a more sustainable.
Swing.
Speaker Change: And on the revenue and orders on the international side is just improving economies are there some other trends like here.
Speaker Change: In the Americas, we talk a lot about the return to office level I don't think they have the same extent in Europe.
Speaker Change: Work from home as we did here in the U S. I was just trying to get a better handle on.
What you see needs to happen to really start to drive.
The top line and the international segment.
Speaker Change: So certainly macro is part of it and maybe the bigger part because I agree with your comments about return to office.
Speaker Change: With maybe a few exceptions in there they are pretty important exceptions like I don't believe that some of the larger markets.
Speaker Change: In Western Europe are quite back.
Speaker Change: As much as some of the smaller or mid sized markets.
Speaker Change: Have been so I still think there's room for potential improvement or demand levels associated with return to office, particularly in western Europe, and some of the largest markets.
Speaker Change: And then internationally what we're seeing is as these large companies are getting back to the office in the U S or <unk> internationally.
Speaker Change: Some of the demand level from our largest global accounts is picking up and it's showing up not only in the U S. But in some of the international.
Speaker Change: Markets and what we're also doing is we're we're behaving a little bit differently internationally, we're targeting.
Speaker Change: Different accounts.
Speaker Change: Then we had targeted targeting them with a higher level of intention than we had targeted in the past because some of our key core customers had not been.
Speaker Change: In the office and buying at the same levels. So what we're we're.
Speaker Change: Feeling I think is some green shoots from our actions I think were also feeling some green shoots from the largest global accounts that we serve around the world.
Speaker Change: And we're also seeing <unk>.
Speaker Change: Potentially some bottoming and turning off the bottom and a couple of markets that have really struggled in particular, China I don't I don't want to declare today that we're at the bottom and it's turning but they're definitely signs that the worst could potentially be over and we.
Speaker Change: We've been impacted dramatically in China and.
And Theres still a lot of business opportunity for us to compete for and our sales team are showing that we can win that those opportunities even though they are different than some of the accounts that we had targeted prior to the pandemic.
Speaker Change: Okay. Thank you for that very helpful.
Speaker Change: Yeah.
Speaker Change: With the new administration and some of their efforts, especially on the dose.
Speaker Change: How do you see that impacting.
Speaker Change: Your business.
Speaker Change: Okay.
Speaker Change: First and foremost I will fully support their application to get people back in the office.
Speaker Change: By latest estimates I think I've read the articles that suggested low single digit percentage occupancy by some of the federal government agencies.
Speaker Change: That we serve and we feel some of that in our in our numbers. So I think by them getting back into the office and understanding that the environment needs to transform we will see activity levels begin to pick up.
Speaker Change: There could also be an impact of workforce reduction if they actually implement some of the things that they're suggesting they're going to target. So there could be some of negative consequence of that but if the activity level from a lot of the government is very very low.
Speaker Change: And as occupancy improves.
It feels like that could.
Speaker Change: Could improve.
Speaker Change: Okay.
Speaker Change: One last one for me you talked up of laminate supplier issue it sounded like that potentially.
Speaker Change: Impact the fourth quarter here do you see that potentially going out into fiscal 'twenty six or more if it was to have the impact that would be just kind of contained to the fourth quarter.
Speaker Change: Yes.
Speaker Change: It's a good question and we're not running that company and while we've been in it and offered our assistance and Allstate I believe they're back up and running in a different location.
Speaker Change: They're they've got a lot of pent up demand that needs to be caught up.
Speaker Change: I just.
Speaker Change: Not sure that will be through it entirely by the end of the fourth quarter, which is why we chose to include a couple of remarks in my script today.
Speaker Change: Yeah.
Speaker Change: Okay, great. Thank you very much for taking the questions.
Joe Gomes: Thanks, Joe.
Speaker Change: And there are no further questions at this time, Ms Armbruster, I turn the call back over to you.
MS Armbruster: Thanks, So just want to thank you all for joining today as always we appreciate your interest in Steelcase and we wish your families and you a safe and happy holiday season.
Speaker Change: This concludes today's conference call you may now disconnect.
Yeah.
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