operation oslo: 9to5 seating joins norway’s...

GIVING VOICE TO THOSE WHO CREATE WORKPLACE DESIGN & FURNISHINGS01.20.20 GIVING VOICE TO THOSE WHO CREATE WORKPLACE DESIGN & FURNISHINGS

Operation Oslo: 9to5 Seating Joins Norway’s Flokk

On Wednesday of the short work week preceding the four-day Thanksgiving holiday, two CEOs finalized an agreement to unite a family-owned seating maker in Hawthorne, CA, with Europe’s largest office and task chair manufacturer. Now, a few months after 9to5 Seating joined Norway-based Flokk, we present the story of the personalities, leadership and experience beneath the acquisition.

FULL STORY ON PAGE 3…

Fresh Work //The Latest and Greatest in Workplace Projects

As we jump back into work post-holidays, we present a few excellent projects that came across our desk while we were away. The first – a new coworking space in Montréal dedicated to startups in finance tech. The second – a transformation of a dated car dealership in the Cleveland suburbs into a charming head office for a thermal solutions company. Lastly, a project out of the Pacific Northwest for OEG, one of the largest electrical contracting companies, who wanted a thoughtful balance of open plan and enclosed space.


Concurrents – Environmental Psychology: Beating Burnout, Via Design – Part 2

Before our holiday break, we published the first of a two-art series on beating burnout. This article is the second in that series, regarding designing to decrease the likelihood that employees feel burned out. There are many ways that workplace design can reduce the likelihood of burnout.


CITED:“IF A SMALL THING HAS THE POWER TO MAKE YOU ANGRY, DOES THAT NOT INDICATE SOMETHING ABOUT YOUR SIZE?” —SYDNEY J. HARRIS

01.20.20 GIVING VOICE TO THOSE WHO CREATE WORKPLACE DESIGN & FURNISHINGS PAGE 2 OF 33

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companies

Few words in the business lexicon have more meanings than “acquisition.” Perhaps that’s because reporting about acquisitions seldom gets beyond the rote legalisms. Rarely are the leaders or their personalities revealed, and how they guided their businesses into these historic unions.

There’s always an exception, and the union of 9to5 Seating with Norway-based Flokk in November 2019 is precisely that.

On Wednesday of the short work week preceding the four-day Thanksgiving holiday, two CEOs finalized an agreement to unite a family-owned seating maker in Hawthorne, CA, with Europe’s largest office and task chair manufacturer.

Flokk, known as Scandinavian Business Seating until three years ago, has had Lars Røiri as CEO since 2007. The result of a progression of strategic actions in pursuit of his vision for unifying Europe’s fragmented workplace furniture

industry into an international “house of brands.” The name change to Flokk, a Norwegian word meaning

“flock,” recognized its growing collection of workplace seat-ing manufacturers.

9to5 Seating represented an ideal opportunity for Flokk. “I was impressed by their advanced manufacturing capa-

bilities and their very dedicated, professional management team,” said Mr. Røiri, speaking of the American firm.

A bonus for Flokk was getting a CEO at 9to5 Seating who was also an e-commerce pioneer.

“I started a website called OfficeSeating4U.com and another one called Furniture Genius,” said Dara Mir, then an undergraduate member of the University of Southern California’s Class of 2002. “I bought chairs from several of-fice furniture manufacturers and drop-shipped them to my customers.”

Operation Oslo: 9to5 Seating Joins Norway’s Flokkby Stephen Witte

9to5 Seating’s Hawthorne, CA, manufacturing facility incorporates rooftop solar panels and received certification as a LEED Gold Manufacturing facility. Image: 9to5 Seating


companiesHe learned the major players, their

product lines and how consumer trends shaped the marketplace at that time. Within months of his USC graduation, Mr. Mir would draw upon his market and consumer knowledge in launching a new business with his parents.

Around the same time, in-depth knowledge of consumer marketing and product management backstopped Mr. Røiri’s rise to CEO of HÅG. By 2002, he was roughly 24 months into his workplace industry tenure following 12 years of stepping his way up the management ranks, first in industrial products, then consumer medical devices and dental supplies.

A 1987 graduate of the Norwegian Business School in International Management and a Master of General

Business, Mr. Røiri, through his schol-arly work paired with his consumer product experience, was about to set HÅG on a brave new course.

“We industrialized and professional-ized HÅG, and changed the manage-ment team,” said Mr. Røiri. Between 2005 and 2007, HÅG was purchased off of the Oslo stock exchange by a group Mr. Røiri led, was enlarged into a more substantial business, and ultimately sold to a private equity firm, Sweden’s Ratos.

“These actions supported our strategy to consolidate a fragmented furniture industry in the Scandinavian countries,” said Mr. Røiri. “In 2007, together with Ratos, we acquired the Swedish firm RH and the Danish firm RBM that, along with HÅG, formed

Scandinavian Business Seating.”As this newly created troika con-

templated how to deal itself into the European furniture scene, the Mir family in Los Angeles considered how to make the best hand from the cards they held.

Dara Mir’s parents, Darius and Su-san Mir, had known furniture industry success – first, in 1983 with a distri-bution warehouse in downtown L.A., followed in 1985 by importing and dis-tributing Italian-made ergonomic seat-ing. From 1986 until the early months of the new millennium, the Mirs grew a business centered around making office chairs for wholesale markets.

These were their first tastes of free enterprise in the U.S. after emigrating here from Iran in 1982.

Dara Mir, CEO, 9to5 Seating. Image: 9to5 Seating. Photography: courtesy of 9to5 and Flokk

Lars Røiri, CEO, Flokk. Image: Flokk


companiesA potent threat to their livelihood,

built around their wholesaler clientele, surfaced as Dara Mir graduated from USC. He was intent on joining the fam-ily business despite the competitive storms it was weathering. Those rough conditions hailed from China.

“Our wholesale customers started sourcing from China directly,” said Mr.

Mir of the new reality they faced. “The perception at that time was the most inexpensive products in the world were coming out of China.”

The Long Beach factory, opened in 1995, where he had grown up sweep-ing floors and doing what needed doing became, in 2002, a place Dara Mir helped his parents shutter.

“At that time, we had 20 years of industry know-how and manufactur-ing experience,” said Mr. Mir. “After I graduated, we brainstormed how to create a business model with diversity, one not focused on five or six major customers.”

As China’s growing powerhouse needled U.S.-based manufacturers, another powerhouse was energizing in the Scandinavian countries.

“We created a very strong position in the Nordic region,” said Lars Røiri. “We then established strong positions in the U.K., France, the Netherlands, and Germany with our subsidiaries.” These were opportunities where the Scandinavian style of management influenced acquisitions and business development.

“Scandinavian management involves high levels of delegation and trust, with a leadership culture based on open-ness and transparency,” said Mr. Røiri. “We try to have the fewest manage-ment layers as possible in the organi-zation, making managers responsible and accountable.”

For example, Flokk’s press releases often carry the CEO’s contact informa-tion. Rarely, if ever, does that happen in the U.S. Asked how many contacts he receives, Mr. Røiri said, “Quite a few. I hear from newspapers, industry publications and some of our larger dealers.”

Does it help him with a first-hand understanding of Flokk’s customers, what’s influencing their markets and the cultures present there?

“My background in marketing and sales makes knowing what’s happen-ing in the markets very important,” Mr. Røiri said. “The most important people we have are the ones who know the local markets best, such as the sales representatives for 9to5 Seating. It is most important for me, as CEO, to spend time on our international plans and the growth and development of our markets.”

Says Flokk CEO Lars Røiri, “We are by far the most efficient seating manufacturer in Europe.” Image: Flokk

Flokk developed core competencies to support its far-flung businesses, including efficient manufacturing/product assembly, procurement/supplier development, and product portfolio development. Image: Flokk


companies

He has that latitude as a result of Flokk’s structure emphasizing three functional groups.

“We have developed strong func-tions we call our core competencies,” said Mr. Røiri. “First, efficient manu-facturing and assembly of products; second, procurement and supplier development; and, third, product port-folio development.”

Flokk has substantial investments in this approach. Its product portfolio unit numbers 50 members. Its procure-ment team is Europe’s strongest. And, Mr. Røiri adds, “We are by far the most efficient seating manufacturer in Eu-rope – you can see that from our profit statements.”

Building on gains from Scandinavian Business Seating’s formation in 2007, the next boost came in 2014 when Triton, an international private equity firm, became the owner. With Triton’s backing, the acquisitions came fast: Netherlands-based BMA Ergonom-ics in 2015; Sweden’s Malmstolen in 2016; Offecct of Sweden and Swiss-based Giroflex both in 2017; and Poland’s largest seating manufacturer, Profim, in 2018.

The name change in 2017 to Flokk captured the ‘house of brands’ concept. In a similar effort at captur-ing a theme, the Mirs seized upon a Grammy-winning song from 1980 about the working world.

“I remembered the Dolly Parton song “9 to 5” from the movie and thought ‘9to5 Seating’ would be unique and memorable,” said Dara Mir, of naming the new venture. He saw another benefit in the name: 9to5 Seating would always list at the top of any directory.

Soon the Mirs cracked the code. What contract dealers needed were products to differentiate their dealer-ships and wow their A&D clients. With that and a national network of sales representatives, orders streamed in fol-lowing 9to5 Seating’s 2004 launch.

“To us, value for our customers means delivering quality, service, price and design,” said Mr. Mir.

Flokk’s house of brands results from a progression of strategic actions for unifying Europe’s fragmented workplace furniture industry. Image: Flokk


companiesHaving carried forward the vertically

integrated structure of their prior busi-nesses, Darius Mir established two whol-ly owned parts factories, one in China in 2003, and another in Union City, Tenn., ten years later, which the Mir family still owns. That 9to5 Seating had a China facility caught the eye of Lars Røiri.

“We are building a position in Asia,” said Mr. Røiri. “We’re in Shanghai, Singapore and Japan, plus Australia.” 9to5 Seating’s factory in China “com-pletes the picture” he said.

What becomes of that picture in the future, now that 9to5 Seating has joined Flokk’s international house of brands?

Some have asked about how 9to5 Seating and HÅG will operate under the same owner in the U.S. market. It’s a non-issue to both CEOs – the rea-sons why stem from Flokk’s European experience.

“We have operated in Europe for years with brands in different market positions,” said Mr. Røiri. His is not a cookie-cutter application of strategic thinking.

“We have had a well-known niche position in the U.S. with HÅG as a high-end brand for years, including a factory in Greensboro, North Carolina, until the year 2000,” said Lars Røiri. Once a subsequent distribution rela-tionship with Izzy+ ended when Izzy closed in April 2018, HÅG established a distribution operation based on ship-ping products from Europe.

As with Poland’s Profim, 9to5 Seat-ing will continue as a standalone busi-ness. “The intention is for us to grow Flokk’s North American business,” said Dara Mir. “They pride themselves on supporting companies in their house of brands, keeping their unique brand

voices and not diluting them away.”“We will not change the products of

9to5 Seating to Scandinavian prod-ucts, but instead, we’ll strengthen the brand,” said Lars Røiri. A uniquely Norwegian approach, one that stands in contrast to the U.S. style of tinkering from the start with acquired business-es. Perhaps it is a reflection of coming from smaller countries.

“We have developed ways of relating with the larger countries surrounding us and their markets,” said Mr. Røiri. The combined population of Norway, Den-mark and Sweden is about 21 million, bettering the L.A. metro area’s estimat-ed population by just three million.

“The Scandinavian culture has historically featured strong relations with different cultures and markets,” said Mr. Røiri. “It’s in the DNA of our countries.”

As with Poland’s Profim, 9to5 Seating will continue as a standalone business. “The intention is for us to grow Flokk’s North American business,” said Dara Mir. Image: 9to5 Seating


companies

Maybe that DNA also inspires prod-ucts that are not merely ergonomic but healthy for workplace users. Mr. Røiri emphasizes “providing products that contribute to our health and encour-age more movement” along with a functional, appealing design. He terms this an international mega-trend, with sustainable products forming another mega-trend.

“Scandinavian firms like HÅG have been in the sustainability forefront for years,” he said. “We were the first Northern European company to hire an environmental manager in 1981 or 1982, which was very early.”

When 9to5 Seating’s new factory in Hawthorne, Calif., was taking shape in Dara Mir’s mind, it was a company decision to maximize the facility’s en-ergy efficiency and sustainability. What resulted is a building with rooftop solar panels generating some of the build-ing’s electricity, the first LEED Gold

Manufacturing facility in the South Bay market of Los Angeles, and other steps in reducing the firm’s carbon footprint. “Nowadays, it’s widespread, but it wasn’t in 2009,” said Mr. Mir.

With similar entrepreneurial outlooks and customer-centric philosophies, one might ask about the benefits deriv-ing from this union. That is, aside from giving Darius and Susan Mir, with 40 years in the furniture industry, a retire-ment opportunity with the chance for more time with their grandchildren.

With the addition of 9to5 Seating, Flokk has roughly 2,600 employees with an approximate revenue of $410 million U.S. An operation on that scale brings much to the table.

Says Lars Røiri, “By leveraging Flokk’s expertise in manufacturing, lo-gistics and go-to-market know-how, we can help 9to5 Seating further expand and realize significant growth in the U.S. market.”

Speaking for 9to5 Seating, Dara Mir said, “Flokk has refined their process-es over decades, becoming manufac-turing experts with extensive logistical know-how, with our goal being how to maximize the knowledgeable team and wealth of resources they have to offer.”

Dara Mir shared an observation from a sales representative who said to him, “Maybe you haven’t taken the time to see all that you’ve accomplished – it’s rare to do what 9to5 Seating has done. You guys are one of the industry’s best-kept secrets.”

Well, that secret is safe no longer. nAs researcher, writer and com-

mentator, Stephen Witte reports and advises on trends shaping the future for the A&D community, manufactur-ers and distribution channels. His background includes corporate roles in product management, product devel-opment and public relations. Contact him at [email protected].

In 9to5 Seating, the Mir family continued the vertically integrated structure of their prior businesses, adding parts factories in China and Tennessee. Image: 9to5 Seating


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a&d

As we jump back into work post-holidays, we present a few excellent projects that came across our desk while we were away.

The first – a new coworking space in Montréal dedicated to startups in finance tech. The second – a trans-formation of a dated car dealership in the Cleveland suburbs into a charm-ing head office for a thermal solutions company. Lastly, a project out of the Pacific Northwest for OEG, one of the largest electrical contracting compa-nies, who wanted a thoughtful balance of open plan and enclosed space.

Montreal FinTech Station, Montréal, Canada. Designed by VAD

“Through a competition of ideas pro-cess, orchestrated by Finance Montre-al and Ivanhoe Cambridge, the design of the new FinTech Station at Place Ville Marie was entrusted to the firm VAD Designers d’espaces. The design concept translates into a modern and high-tech space where collaboration between individuals is facilitated, and human connections are fostered.”

“Inaugurated in December, the FinTech Station is already experienc-ing significant enthusiasm. Nearly 20 start-up companies have settled-in and spread out accross the Station’s two stories, which total up to approxima-tively 25,000 square feet.”

“At the Montreal FinTech Station, a total of 144 workstations are avail-able, all of which benefit from a variety of amenities on premises. A shared reception service greets visitors walk-ing in, and offers administrative as-sistance. Start-ups have the option of renting individual workstations located in a shared open space, as well as closed offices for companies with 4 to 10 staff members who desire more privacy. The tenants benefit from the

Fresh Work //The Latest and Greatest in Workplace Projectsby Mallory Budy

Montreal FinTech Station, Montréal, Canada. Designed by VAD. Photography: Phil Bernard


a&dmany services offered at the Station. Among these are professional and technological services, training and coaching, networking activities, events and support in business growth. A variety of meeting rooms and com-munal areas are also available, as well as a large cafeteria, which doubles as an event venue, lounges and a second auxiliary kitchen which serves free specialty coffee.”

“VAD imagined an immersive, stimu-lating, and comfortable environment, where different but complementary forces are brought together to work in collaboration and build upon new connections. The original lead for the idea competition was to draw upon the contrast between virtuality and reality which are integral to the core concept of the FinTech Station. In a context where technology occupies a prepon-derant role in our work environments, the design proposed for the FinTech Station aimed at transcending the trend towards hyperconnectivity.”

“By incorporating natural and eclec-tic textures, as well as noble materials and finishes, the workspace achieves a warmer feel. The design links to nature through volumes and ambiances. Custom-built modules, such as inte-grated woodwork add relief and mimic natural plateaus and elevations found in terrain. Vast open spaces flooded with daylight and greenery promote wellness and help the spirit of commu-nity to come to life naturally.”

“Entering into the FinTech Station, visitors are greeted into a bright and swarming hub of activity. The vast open-plan acts as both a reception and a flexible social space, conducive to spontaneous team-work, holding meetings, larger assemblies or some of FinTech Station’s networking events.”

“The master staircase joining the two levels was one of the starting points for the design concept. A metal-lic structure mirrors the descending stairs, giving the illusion of an ascen-



a&dsion towards a green upper landing - a symbol of growth. Around the raised podium, the space unfolds to a bouncy rhythm of yellow and earth tones. The furniture is airy and comfortable, reinforcing the desire to create a living environment conducive to atypical hours: an atmosphere inspired by the ‘resimercial’ current.”

“At the Montreal FinTech Station, the wellbeing of the occupants is a central preoccupation. The design was developed with the principles of the WELL certification in mind. The concern for biophilia, local procurement of materials and furnishings as well as of local trade, attention to ergonomics, the promotion of physical activity and access to natural light are among the strategies deployed to meet the well-

being objectives of the project.”“From the start, the Montreal Fin-

Tech Station announced its intention to acquire an art collection to be inte-grated into the space. The art agency MASSIVart joined the project, propos-ing interactive, digital, photographic and sculptural artworks all by emerg-ing Quebec and Canadian artists.”

“The design and construction of the FinTech Station were success-fully completed within the predicted schedule and the announced budget. With the support of Ivanhoé Cam-bridge, the construction contractor P + R Desjardins, and the collaboration of all the project stakeholders, the Montreal FinTech Station materialized in just 14 weeks, despite the complex-ity of the access to the work site in the

context of major simultaneous projects surrounding the building.”

“In the heart of the business district, at Place Ville-Marie, the new FinTech Station becomes an important ally for Montreal’s finance industry. Accessible and intuitive, the workspace is de-signed as second nature for the user, offering a clever combination of work areas, spaces for leisure and gather-ings, perfectly suited to build new connections. Lounges, phone booths, shelters, meeting rooms or collabora-tive lounges: users can choose to work in the context that suits them best.”

The design proposed by VAD em-bodies a strong identity and a distinc-tive architecture, making the Montreal FinTech Station a landmark of the FinTech ecosystem.



a&dProcess Technology. Willoughby, Ohio. Designed by Vocon

“Process Technology’s new 23,500 square foot headquarters is located in Willoughby, Ohio and accommodates the thermal solution company’s need for a modern space and the founder’s commitment to incorporate operational transparency.”

“The project transformed a property that was originally an auto dealership facility. The site was outdated and lacked a cohesive design. The major-ity of the lot was covered by concrete. Led by Jodi van der Wiel, Design Director and Michael Christoff, Direc-tor, Vocon’s architects removed 80% of the site’s concrete, the building’s extraneous masses, glazing and non-structurally-sound components. While reusing the existing structure, the landscaping team restored and seeded the lot, as well as planted deciduous

trees throughout the property.”“The Vocon team then wrapped

the entire building in a metal panel-ing to create a uniform exterior. The

design team balanced curb appeal with budget and kept the existing punched openings in place but used scrim inserts to give the exterior visual

Process Technology. Willoughby, Ohio. Designed by Vocon. Photography: Matthew Carbone


a&dbalance. The exterior also features mesh, which allows for the building to feel lighter and sleeker. Vocon’s design team chose to “slice the structure” to emphasize the front facade and diffuse daylight throughout the space.”

“The property is made up of two separate blocks, with one serving as the office’s cultural hub, and the rear space used for research and develop-ment. The two areas are connected by a bridge that forms the entryway and the socialization zone. The property also offers a cafe space for employees, an outdoor courtyard, a fitness suite, and a variety of workspace options.”

“The main office space demon-strates Process Technology’s commit-



a&dment to transparency. They housed the cleanroom directly behind the concierge area, allowing all employees and all company visitors a clear look into the testing, research and develop-ment process. The executive offices are also located in the heart of the of-fice’s cultural hub, demonstrating the company’s openness and availability to employees.”

“Process Technology wanted its new space to reflect a dedication to wellness and worked to go beyond just offering a fitness space. The Vocon team incorporated natural light and a feeling of openness throughout the office space which creates a variety of workspace options that allows employ-ees to have both privacy and a sense of community. The new headquarters incorporates a quiet zone and is also dog-friendly.”

“The project’s design palette is progressive and modern, reflect-

ing the company’s ethos in both the architecture and interior design. The core socialization zone incorporates unique overhead lighting to make the space feel bright and original. The lighting can be color-programmed. The

modern and minimalist concierge desk sets the tone of the rest of the office, and the orange accent color through-out the space was born out of Process Technology’s recent graphic identity update.”



a&dOEG, Washington. Designed by SUM Design Studio + architecture

“OEG, founded in 1947, is one of the largest electrical contracting companies in the Northwest, special-

izing in mission critical, health care, commercial, high tech, industrial and institutional markets.”

“As they continue to grow, more office space was required forcing the decision

to move to a larger building. Their new space, a standalone, 32,000 square foot building, was slightly larger than their existing space, requiring thoughtful design to house more employees.”

Incorporating new materials while exposing the existing industrial space provides a light-filled reception area that evokes the client’s brand and the building’s previous use. Photo: Josh Partee


a&d“SUM Design Studio + architecture

designed a modern open office that still retained some of the privacy of the traditional private office layout while providing workstations with direct views of windows, views of Portland’s West Hills, and access to sunlight. SUM also designed the new space so that every separate department had a collabora-tive space in the open office areas, including multiple conference rooms of varying sizes needed on each floor.”

“Aesthetically, the client wanted an industrial space, but wasn’t willing to sacrifice office comforts and acoustics. SUM exposed the existing industrial building as much as possible while providing acoustical solutions while respecting the needs of a multi-disciplinary office.” The project was

completed in primarily birch, concrete, glass, and steel, with the use of felt

acoustical treatments and solid surface casework.” n

Incorporating natural light, biophilic elements, and ceiling lighting provide engaging and lighter spaces for clients and visitors. Photo: Josh Partee

The new offices offer the privacy of the traditional private office layout while providing workstations with direct views of windows, views of Portland’s West Hills, and access to daylight. Photo: Josh Partee

Designing places to gather and collaborate was an important element to the success of the project. Photo: Josh Partee


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concurrentsENVIRONMENTAL PSYCHOLOGYBeating Burnout, Via Design – Part 2by Sally Augustin, Ph.D.

Before our holiday break, we published the first of a two-art series on beating burnout. This article is the second in that series, regarding designing to decrease the likelihood that employees feel burned out.

In the last article, we talked about the fact that burnout is bad for employee wellbeing as well as their professional performance, and that a range of factors influence whether people feel burned out, or not.

Two issues that can contribute to creating a relatively negative atmo-sphere, one that’s consistent with burnout, according to scientific research, were discussed in the previ-ous article. People can feel burned out when the demands of their work are greater than their ability to do required tasks well. Workplace design that aligns with the jobs that people do (for example, that supports concentration during periods of focused work) and that streamlines cognitive refreshment makes it less likely that workers will be burned out by job demands. People are also more likely to feel burned out

when they lack control over their pro-fessional experiences, and workplace design, by providing a comfortable number of workspace and ambient condition options, can make that less likely as well.

There are additional ways that work-place design can reduce the likelihood of burnout, opportunities that weren’t discussed in the prior column.

People are more likely to become burned out when they feel they are receiving insufficient reward for their efforts. Rewards can come in mul-tiple forms, including the design of work environments, the assortment of workplace options available, etc. Work-ing with employees to identify valued rewards is crucial – as is apportioning them appropriately. Experiencing con-ditions that seem unfair has also been linked to feeling burned out.

People are less likely to feel burned out when their own values seem to align with those of their employer. So, someone who is concerned about social justice-type issues will feel a value-related, burnout bashing, positive emotion when they perceive a similar concern for social justice conveyed in corporate artworks and other design options in use. Commu-nicating corporate values via design is powerful; research consistently shows that individuals “read” physical investments made by their employers to learn what the group’s true values are. Written mission statements are easy to write/change, and messages pulled from physical environments are perceived to be franker, more power-ful representations of corporate values than those texts.

Future columns will discuss addi-tional options for combatting burnout

via design and ways that design can encourage employee engagement. Design is not magic; many forces can contribute to negative employee experi-ences. But design can definitely create conditions that make burnout less likely to occur. The design of the physical environment is a viable way to squash burnout, boosting wellbeing and per-formance – all while letting employees know that the contributions they make to their employer are valued. n

Sally Augustin, PhD, is the editor of Research Design Connections (www.researchdesignconnections.com). Research Design Connections reports on research conducted by social and physical scientists that designers can apply in practice. Insights derived from recent studies are integrated with clas-sic, still relevant findings in concise, powerful articles. Topics covered range from the cognitive, emotional, and physiological implications of sensory and other physical experiences to the alignment of culture, personality, and design, among others. Informa-tion, in everyday language, is shared in a monthly subscription newsletter, an archive of thousands of published articles, and a free daily blog. Readers learn about the latest research findings immediately, before they’re available elsewhere. Sally, who is a Fellow of the American Psychological Association, is also the author of Place Advantage: Applied Psychology for Interior Archi-tecture (Wiley, 2009) and, with Cindy Coleman, The Designer’s Guide to Do-ing Research: Applying Knowledge to Inform Design (Wiley, 2012). She is a principal at Design With Science (www.designwithscience.com) and can be reached at [email protected].

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r-d connectionRESEARCH-DESIGN CONNECTIONEating and Decision-Makingby Sally Augustin, Ph.D.

Design can support effective decision-making by providing access to places where people can prepare food and eat comfortably, at workplaces and other similar locations outside the home. Organizational policies and procedures are key for the effective use of these spaces. Benjamin Vincent and Jordan Skrynka determined that

“hunger significantly altered people’s decision-making, making them im-patient and more likely to settle for a small reward that arrives sooner than a larger one promised at a later date…‘We found there was a large effect, people’s preferences shifted dramati-cally from the long to short term when hungry,’ he [Vincent] said…For three different types of rewards, when hungry, people expressed a stronger preference for smaller hypothetical rewards to be given immediately rather than larger ones that would arrive later.” Vincent and Skrynka’s study is published in Psychonomic Bulletin and Review. n

“Don’t Make Major Decisions on an Empty Stomach, Research Suggests.” 2019. Press release, University of Dundee, https://www.dundee.ac.uk/news/2019/dont-make-major-deci-sions-on-an-empty-stomach-research-suggests.php

Sally Augustin, PhD, a cognitive sci-entist, is the editor of Research Design Connections (www.researchdesigncon-nections.com), a monthly subscription newsletter and free daily blog, where recent and classic research in the social, design, and physical sciences that can inform designers’ work are presented in straightforward language. Readers learn about the latest re-search findings immediately, before they’re available elsewhere. Sally, who is a Fellow of the American Psycho-logical Association, is also the author of Place Advantage: Applied Psychol-ogy for Interior Architecture (Wiley, 2009) and, with Cindy Coleman, The Designer’s Guide to Doing Research: Applying Knowledge to Inform Design (Wiley, 2012). She is a principal at Design With Science (www.designwith-science.com) and can be reached at [email protected].

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officenewswireFor complete releases, visit www.officeinsight.com/officenewswire.

NOTEWORTHY>Wynn Clayton, the CFO/COO of 3form, was promoted as the company’s new CEO following the retirement of CEO and Founder Talley Goodson. Founding 3form in 2002, Mr. Goodson created an entirely new range of architectural products with the company’s innovative ma-terial platforms. He grew the company from a small start-up into a robust, international industry leader, introducing products like 3form’s signa-ture Varia Ecoresin collection, Full Circle product line fo-cused on social responsibility, and recent acoustic offerings. Moving forward, Mr. Goodson will focus on new business ventures while continuing his economic development work in emerging economies. Mr. Clayton joined 3form in 2002 and as a nearly day-one co-venturer was a key element of the company’s success by first taking on financial strategy, corporate devel-opment, and building the team to support its explosive growth. He led the acquisition of three important brands for 3form, including LightArt, an innovative and growing light-ing company based in Se-attle, EFI, a leading supplier of glass to the commercial architectural segment, and Springboard, a new provider of working surfaces for the contract industry. Before joining 3form, he served as Chief Accounting Officer for TenFold Corporation, an enterprise software company, helping their operation grow

from $3 million to over $100 million in four years–resulting in a successful IPO. Read More

>BuzziSpace opened its new Cologne showroom Jan. 12 at Design Post during IMM Cologne 2020. Its new permanent showroom space on the ground and first-floor levels of Design Post reflects the brand’s roots in innova-tive human-centric design by showcasing original acous-tic, lighting and furniture solutions that balance sound, light, and air – key factors to employee happiness and well-being. On view within a series of inspirational micro-environments all conceived to accommodate the changing needs of the modern office,

one can discover firsthand the latest in products, trends, and ideas for creating a comfort-able and well-balanced space – at work, or in any setting. BuzziSpace’s German team also plans to host several events and Lunch and Learns during the upcoming year. Located within the historic halls of a former Deutz post office and directly across the street from the Messe Köln exhibition center, Design Post is a dedicated open year-round exhibition space and platform for leading interna-tional design companies to present their latest launches and collections. At the same time, the space serves as a valuable conduit for inspira-tion and connectivity between end-users and members of the A+D community with today’s top interior brands. Read More

>Teknion Corp. held its of-ficial opening of the Teknion Experience Centre in the heart of the d3 Dubai Design District during the recent Dubai Design Week. Dubai Design Week is the region’s largest creative festival at-

tracting 90,000-plus visitors to the Dubai Design District. Strategically located in the heart of Dubai, d3 is a busi-ness community dedicated to the art and design indus-tries. It serves as a vibrant innovation hub that enables international brands and a growing number of local de-signers, creative professionals and artists to unite, create and inspire. Full-height glass windows lend the Teknion Experience Centre a bright, open feel. The emotive mate-riality woven across the 2019 NeoCon Chicago showroom is also reflected in the Dubai space. The 1,130sf (105m²) showroom is anchored by the less formal Communal Bar from the new Teknion Recep-tion program. Other Teknion product includes the Zones furniture collection, upStage workplace furniture, Navigate Height-Adjustable Tables, District storage, Expansion Casegoods, Zones Modular Seating and Banqs seating. A dedicated Luum Textiles wall features four rotating fabrics that change with each Luum launch. Studio TK products include three seating lines by Artifort, the new F500 Series Armchair, Pala fully upholstered lounge chair and ottoman, and versatile and stylish Beso chair program. In addition, the Envita lounge and new Freehand Occa-sional Tables line are present. “Although Teknion has had a presence in the Middle East for the past 20 years, this is our first corporate showroom in the region,” said Patrick Taylor, Regional Vice Presi-

Wynn Clayton

BuzziSpace Opens New Showroom at Design Post Cologne

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dent, South Asia, Middle East & Africa. “Our goal with the Teknion Experience Centre is to replicate some of the great vignettes we unveiled at Neo-Con last summer that created the biggest ‘wow’ factor while addressing current and evolv-ing Middle East workplace trends. We exhibit 12 unique settings, most of which fea-ture product never displayed outside of North America. Our new space is designed with the intent of extending our brand and sales reach across the Middle East and Africa.” Read More

>Numerous officenewswire contributors celebrated 2019 GOOD DESIGN® awards. Organized annually by The Chicago Athenaeum

Museum of Architecture and Design in cooperation with the European Centre for Architecture, Art, Design and Urban Studies, and now entering its 70th year, GOOD DESIGN is the world’s oldest design awards program. Press releases we received include:

-Inscape’s RockIt Bench was recognized with a 2019 GOOD DESIGN award. RockIt is a light scale bench that is designed to utilize natural materials to create diverse environments, including Resimercial, Industrial Chic and Mid-Century Modern. Biophilic elements such as extended planters for ample greenery and natural wood details bring nature inside. One of the most innova-tive features of RockIt is the patented SkyRockIt™ height adjustable technology. Read More -Keilhauer recieved three 2019 GOOD DESIGN awards: For new lounge seats Ellaby and Verge, and for Buncha, a new nesting chair. Verge is dramatic lounge chair on a 360-degree swivel base. The contrast of the front to rear view is striking: from the back, it can look like a big, round floating object; from the front, it splits open to gesture to the space with a deep, enveloping seat. Ellaby straddles the divide between a working chair and privacy chair. The design features molded cushions, a slight

forward lean and contoured lines which dramatize the mid-height back. Ellaby and Verge were released at NeoCon 2019 and were designed for Keilhauer by the celebrated design trio, EOOS. Buncha, designed by Aaron Duke for Keilhauer and was introduced in March 2019, was a first time venture into a new seating category for Keilhauer. Its light volume and fold-up seat make it easy to stow away with minimal clut-ter and floor space – no lifting required. Read More

>Hall of Fame architect and interior designer Lauren Rottet won three 2019 GOOD DESIGN awards: For her Lyda™ sofa for Haworth, Fascio Collection of light-ing for Visual Comfort & Co. and Crossbeam table for Nucraft. “We’re very pleased to receive these accolades for our work – a real measure of excellence – and we thank the distinguished judges and the design community as a whole,” said Ms. Rottet. Read More

Teknion Dubai Showroom – Front Entrance

Teknion Dubai Showroom – Greg Dekker, Teknion’s VP Sales Effective-ness, Presents Educational Workshop

GOOD DESIGN. Inscape’s RockIt Bench

GOOD DESIGN. Keilhauer’s Ellaby

https://officeinsight.com/officenewswire/teknion-experience-centre-opens-in-heart-of-dubai-design-district/

https://officeinsight.com/officenewswire/inscapes-rockit-bench-honored-with-good-design-award/

https://officeinsight.com/officenewswire/inscapes-rockit-bench-honored-with-good-design-award/

https://officeinsight.com/officenewswire/keilhauer-receives-three-awards-for-good-design/

https://officeinsight.com/officenewswire/lauren-rottet-honored-with-three-good-design-awards/

https://officeinsight.com/officenewswire/lauren-rottet-honored-with-three-good-design-awards/


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>Nienkämper also recieved three GOOD DESIGN awards: For the Belle lounge chair, Heartbeat lounge seating, and the Gateway Height Adjustable Media Wall Table. “We are delighted to be honored with the 2019 GOOD DESIGN awards and pleased to be collaborating with renowned designers Karim Rashid and Busk+Hertzog on the Heartbeat, Belle and Gateway. The ever-changing office environment challenges us every day to create new

and innovative products suit-able for today’s technology advanced working and public spaces”, said Ann-Marie Snook, President of Nienkäm-per International Inc. Read More >Tarkett won two GOOD DESIGN awards: For Tatami System and FlightPath & AirSpace. Tatami System is a new category of floorcover-ing that upends conventional broadloom and gives design-ers and end users the au-tonomy to continually adjust

spaces to align with their ever-changing needs. Designed by Jhane Barnes, FlightPath & AirSpace were first inspired by the lines and angles of intersecting flight paths on an air traffic map. This aesthetic inspiration quickly evolved into a beautifully functional flooring design—one that could simplify installation in contemporary architectural designs, where right angles and straight lines give way to open, multi-use spaces and curved walls. Read More

RE-SITED>Matthew S. McCall joined HNI Corp. as Vice Presi-dent, Investor Relations and Corporate Development. Mr. McCall has spent the past 20

years in various equity capital market roles at Wachovia Securities, BB&T Capital Markets, and Seaport Global Securities. Since 2005, he has covered the commercial interiors and building prod-ucts industries as a Senior Equity Research Analyst. He has received multiple awards for the quality of his research, including being StarMine’s top ranked building products analyst in 2018. Read More

>Stefan Persson will join Configura as its new CEO on Feb. 3, succeeding current CEO and the company’s co-founder, Johan Lyreborn. Mr. Lyreborn will remain with the company as part of the board, focusing on strate-gies regarding new markets and industries and support sales. With more than 25 years of experience in lead-ing management positions, and a focus on developing global businesses and teams, Mr. Persson brings valuable expertise to Configura’s plan to grow globally in the com-ing years. Starting out as a professional Nintendo gamer in the 90’s, he has since then worked with everything from marketing and sales

GOOD DESIGN. Lyda Sofa designed by Lauren Rottet for Haworth

GOOD DESIGN.Nienkämper’s Belle lounge chair

GOOD DESIGN.Tarkett’s Tatami System (L) and FlightPath & AirSpace (R)

Stefan Persson and Johan Lyreborn

https://officeinsight.com/officenewswire/nienkamper-wins-three-good-design-awards/

https://officeinsight.com/officenewswire/nienkamper-wins-three-good-design-awards/

https://officeinsight.com/officenewswire/tarkett-wins-two-good-design-awards/

https://officeinsight.com/officenewswire/matt-mccall-joins-hni-corporation-as-vice-president-investor-relations-and-corporate-development/


officenewswireto IT and support in leading positions, including CIO, CFO and SVP, for leading global companies. His most recent accomplishments include leadership positions within the global SW/ERP company IFS and the customer journey management solution com-pany Qmatic, where he was engaged in product market-ing and development, supply chain and factory operations. In his new role with Configura, he will work closely with the board, including the newly recruited and announced Chairman Tommy Johansson who was elected on Dec. 12. Read More

EVENTS>ASID is kicking off 2020 at the Kitchen and Bath Industry Show in Las Vegas this week, Jan. 21-23, with a special pop-up dedi-cated to infusing health and wellness into design. With humancentric design at the exhibit’s core, the Society aims to encourage a healthy trade show experience for its visitors and guests. Explained ASID CEO Randy Fiser, “The kitchen and bath are two of the spaces that most directly impact our day to day well-ness. We’re hoping that our KBIS installation will inspire attendees to incorporate human and healthcentric design philosophies into their practices, proving the power of design to directly affect

people’s lives.” The ASID installation will serve as a respite from the hustle and bustle of the tradeshow floor. Anchoring the space will be a green wall incorporating plant life into the booth. It will also offer healthy snacks to at-tendees throughout the show. Read More

>IIDA NY’s 2nd Annual Vol-unteer Fair will take place on Tuesday, Jan. 28, 6:00-8:00 p.m. at the Teknion NYC showroom. IIDA members are encouraged to attend, meet with the co-chairs of the 25+ committees and Forums within the New York chapter, learn about volunteer op-portunities available for each of the chapter’s events and programs, ask questions, and sign up. Read More

>Registration is now open for The WELL Conference, a new experiential event pre-sented by the International WELL Building Institute in partnership with ASID and Emerald Expositions. Taking place in Scottsdale, AZ Mar. 29-Apr. 1, it will offer a cura-tion of information and inspi-ration from thought leaders, experts and innovators repre-senting multiple sectors of the wellness movement for those committed to improving the health and well-being of peo-ple through better buildings, communities and organiza-tions. Registrants may choose from several options to meet various interests, budgets and time considerations. Those

wishing to attend are encour-aged to register on or before Feb. 17 to take advantage of early bird pricing. “The WELL Conference is where we will, for the first time, convene this ever-growing movement,” said Rick Fedrizzi, Chairman and CEO of IWBI. “We are planning for a uniquely trans-formative experience that leverages the passion and

expertise of many to forge new ideas and exchange thoughtful perspective critical to this movement. At its core, the event will leave people inspired and refreshed, reminded of the immense impact we can have when we put people at the center of our work, and hungry for more.” Read More

IIDA NY Volunteer Drive

https://officeinsight.com/officenewswire/configura-announces-new-ceo-stefan-persson/

https://officeinsight.com/officenewswire/asid-brings-health-centric-installation-to-kbis-2020-%25f0%259f%258c%25bf/

https://officeinsight.com/officenewswire/join-iida-ny-at-teknion-on-jan-28-for-the-2nd-annual-volunteer-drive/

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businessBUSINESS AFFAIRS>NOTE: For many years we have published our regular “RAY-MOND JAMES BRIEF” feature in the officeinsight Business section, graciously provided by Raymond James & Associates on a complimentary basis to give our readers insights into the financial developments in the contract furniture industry. On Dec. 13 we received notice that Raymond James would no lon-ger be producing these reports. In the words of their statement: “We are dropping coverage of five of our furniture companies: HNI Corporation, Haverty Furniture, Herman Miller, Knoll, and Steelcase. Effective immediately, the final recommenda-tion should not be relied upon for future investment decisions. This coverage action is occasioned by: (a) the impending retire-ment of Budd Bugatch, the senior analyst who has followed the industry and these companies for more than two decades, and (b) a reallocation of resources to other areas of coverage.”

Mr. Bugatch provided countless insightful observations of the industry and we will miss his commentary. We send him our heartfelt gratitude and warmest wishes for a happy retirement.

>Herman Miller, Inc. on Dec. 18 released its FY20 second-quarter results (dollars in millions except EPS):

3 Mos. Ended 11.30.19 12.1.18 %Ch.Net Sales $674.2 $652.6 3.3%Gross Mar. $255.5 $235.6 8.4%Gross Mar.% 37.9% 36.1% 1.8%Oper. Exp. $188.9 $182.2 3.7%Oper. Earn. $62.4 $53.1 17.5%Net Earnings $78.6 $39.3 100.0%EPS (dil.) $1.32 $0.66 100.0%

Adj. EPS $0.88 $0.75 17.3%Orders $674.9 $704.8 -4.2%Backlog $400.6 $406.7 -1.5%

6 Mos. Ended 11.30.19 12.1.18 %Ch.Net Sales $1,345.2 $1,277.3 5.3%Gross Mar. $501.6 $460.7 8.9%Gross Mar.% 37.3% 36.1%Oper. Exp. $372.9 $360.2 3.5%Oper. Earn. $122.6 $99.1 23.7%Net Earnings $126.8 $75.1 68.8%EPS (dil.) $2.14 $1.26 69.8%Adj. EPS $1.72 $1.44 19.4%Orders $1,351.6 $1,337.6 1.0%

Highlights:

-Net sales growth of 3% over prior year

-Operating margin expansion of 120 basis points on a reported basis (100 basis points adjusted)

-Announced further strategic investments in HAY and naughtone

The company acquired the remaining shares of naughtone during the second quarter, and as a result was required to mark the value of the initial investment to fair value, resulting in a non-taxable gain. Adjusted EPS excludes restructuring expenses, other special charges, and the naughtone invest-ment gain.

“In the face of an uncertain global economic and geopolitical environment, we delivered adjusted earnings per share at the upper end of the guidance range that we established at the

1.17..20 12.27.19 9.27.19 6.28.19 3.29.19 12.28.18 %frYrHi%fr50-DayMA

HMiller 41.1 41.6 45.9 44.7 35.2 29.9 -17.5% -6.6%

HNI 38.4 37.4 35.4 35.4 36.3 35.2 -9.1% 0.0%

Inscape 1.2 0.8 0.7 1.7 1.7 1.4 -39.6% 38.9%

Interface 17.4 16.5 14.6 15.3 15.3 14.2 -10.4% 3.6%

Kimball 21.7 20.7 19.4 17.4 14.1 14.2 -3.3% 4.2%

Knoll 25.1 25.4 25.3 23.0 18.9 16.4 -11.3% -3.8%

Leggett 51.2 51.2 40.9 38.4 42.2 35.8 -7.6% 0.2%

Mohawk 139.7 134.4 123.6 147.5 126.2 117.2 -10.8% 3.6%

Steelcase 19.3 20.6 18.4 17.1 14.6 14.7 -16.0% -1.8%

Virco 4.3 4.4 3.8 4.7 4.3 4.1 -14.6% 2.9%

SUM 359.4 352.9 328.0 345.1 308.8 283.2

DJIndust 29,348 28,645 26,820 26,600 25,929 23,062 -0.1% 3.3%

Industry Stock Prices


businessstart of the quarter,” said Herman Miller President and CEO Andi Owen. “Second quarter sales were impacted by lower than anticipated order levels, which reflected the uneven demand patterns we’re seeing across the broader industry and the natural variability in a project-driven business. Order rate declines during the quarter were amplified by a particu-larly challenging growth comparison in our prior year second quarter, which reflected consolidated organic order growth of 10%. While these factors also impact our organic sales growth guidance for the upcoming quarter, we are seeing positive signs as we look further ahead, both in our own project activity levels and in broader demand indicators such as job growth, unemployment levels, and consumer spending. Going forward, we are also excited about our additional investments in HAY and naughtone that give us majority ownership of these fast-growing design brands. With our collection of leading brands, a global multi-channel distribution capability and a clear set of strategic priorities, we remain well-positioned to drive sustain-able long-term growth.”

The company recognized pre-tax restructuring expense totaling $4.2 million in the second quarter. These items related primar-ily to restructuring actions associated with profit improvement initiatives, including plans initiated in the quarter to optimize its Nemschoff manufacturing operations and targeted workforce reductions.

Herman Miller’s effective income tax rate in the second quarter was 14.3%, compared to 22.6% in the same quarter last fiscal year. Excluding the impact of the non-taxable gain this quarter related to naughtone, the adjusted effective income tax rate in the period was 21.6%.

“Despite the uneven demand environment this quarter, we leveraged gross margin expansion and well-managed operat-ing expenses to deliver 100 basis points of adjusted operating margin improvement,” said CFO Jeff Stutz. “Gross margin expansion was primarily driven by net price realization, favor-able steel costs, and continued savings from our profit improve-ment initiatives. We’re also pleased with the commitment of our Herman Miller team members to continually balance the investments required for future growth with prudent control over spending. These factors combined to drive a 17% year-over-year increase in adjusted earnings per share and robust operating cash flow generation. While ongoing global uncer-tainty remains an outlook risk, we were encouraged to see improved order levels in the last month of the quarter and, to date, through the early part of the third quarter.”

The company ended the second quarter with total cash and cash equivalents of $177.0 million. Cash flow generated from operations was $89.6 million in the current quarter compared to $58.6 million in the same quarter last fiscal year.

Results by Operating Segment (dollars in millions):

3 Mos. Ended 11.30.19 12.1.18 %Ch.North America Contract Net Sales $450.6 $434.8 3.6%Oper. Earn. $62.5 $51.2 22.1%International ContractNet Sales $118.2 $118.5 -0.3%Oper. Earn. $12.8 $13.8 -7.2%RetailNet Sales $105.4 $99.3 6.1%Oper. Earn. -$0.9 $1.8 -

6 Mos. Ended 11.30.19 12.1.18 %Ch.North America Contract Net Sales $909.3 $855.8 6.3%Oper. Earn. $125.4 $99.4 26.2%International ContractNet Sales $232.0 $234.0 -0.9%Oper. Earn. $25.9 $24.3 6.6%RetailNet Sales $203.9 $187.5 8.7%Oper. Earn. -$4.9 $3.9 -

(The North America Contract segment includes the operations associated with the design, manufacture, and sale of furniture products for work-related settings, including office, educa-tion, and healthcare environments, throughout the U.S. and Canada. The business associated with the company’s owned contract furniture dealers is also included in the North America Contract segment. North America Contract also includes the operations associated with the design, manufacture, and sale of high-craft furniture products and textiles including Geiger wood products, Maharam textiles, Nemschoff healthcare, and Herman Miller Collection products. The International Contract segment includes the operations associated with the design, manufacture, and sale of furniture products, primarily for work-related settings, in EMEA, Latin America, and Asia-Pacific. The Retail segment includes operations associated with the sale of modern design furnishings and accessories to third party retail distributors, as well as direct-to-consumer sales through eCom-merce, Design Within Reach, and HAY retail studios.)

First Quarter Fiscal 2020 Guidance

Looking forward, Herman Miller expects net sales in the third quarter of fiscal 2020 to be in the range of $672 million to $692 million. On an organic basis, adjusted for foreign cur-rency translation and the impact of consolidating HAY and naughtone, this forecast implies sales growth of 3% compared to the third quarter of last year at the mid-point of the range. The company expects diluted earnings per share to range between $0.68 to $0.72.

The full text of Herman Miller’s 2Q20 earnings release, including all tables, along with a webcast replay of its Dec.


business19 conference call and a PDF document with supplemental financial data, may be accessed in the Investors section of the company’s website: www.hermanmiller.com/investors/

>Inscape finalized the previously announced sale and lease-back of its Falconer, NY facility and sale of DC Rollform to Dahlstrom Roll Form. On Dec. 31, all conditions were satisfied and the transaction was completed. The purchase price was $4.4 million (Canadian). The Sale involved the following transactions:

- Sale of the DC Rollform Integrated Metal Fabrication business

- Sale of the Falconer, NY land, building, and certain equip-ment located at 221 Lister Avenue

- Lease agreement whereby Inscape leases back a portion of space to continue the manufacture and distribution of its branded Walls products.

The company also filed an amended and Restated Fiscal Year 2020 First Quarter MD&A. https://myinscape.com/investors

>Interface, Inc. reported in a Form 8-K filed with the SEC on Dec. 23 that it entered into a “First Amendment to its Sec-ond Amended and Restated Syndicated Facility Agreement.” The agreement included certain of its wholly-owned foreign subsidiaries as co-borrowers (together with the company), its material domestic subsidiaries as guarantors, Bank of America, N.A. as Administrative Agent and lender, and the other lenders signatory thereto. The agreement included the amendment of certain covenants in the Facility Agreement to add new exceptions which will allow the company and its subsidiaries to accomplish certain intercompany investments and other intercompany transactions.

On Dec. 23, the company committed to a new restructuring plan that continues to focus on efforts to improve efficiencies and decrease costs across its worldwide operations, and more closely align its operating structure with its business strategy. The plan involves a reduction of approximately 105 employees and early termination of two office leases. As a result of this plan, Interface expects to incur a pre-tax restructuring charge in the fourth quarter of 2019 of approximately $8.8 million. The charge is comprised of severance expenses ($8.6 million) and lease exit costs ($0.2 million).

The restructuring plan is expected to result in future cash expenditures of approximately $8.8 million for payment of the employee severance and lease exit costs, as described above. The Company expects to complete the restructuring plan in fiscal year 2020, and expects the plan to yield annualized sav-ings of approximately $6.0 million. A portion of the annualized savings is expected to be realized on the income statement in fiscal year 2020, with the remaining portion of the annualized savings expected to be realized in fiscal year 2021.

Also on Dec. 23, the company recorded non-cash charges of $5.0 million primarily related to adjusting the carrying value of certain insurance related assets. https://investors.interface.com/investor-relations

>Kimball International, Inc. plans to announce second-quar-ter fiscal year 2020 financial results on Tuesday, Feb. 4 after the close of the market. The company will host a conference call on Wednesday, Feb. 5, 11:00 a.m. Eastern Time to review its financial performance. The telephone number to access the conference call is 844-602-5643 or internationally at 574-990-3014. The passcode to access the call is “Kimball.” The live webcast of the call, and an archived replay after the live webcast, can be accessed at www.ir.kimballinternational.com.

>Mohawk Industries, Inc. plans to release its fourth-quarter 2019 earnings release on Thursday, Feb. 13. A conference call is scheduled for Friday, Feb. 14, 11:00 am Eastern Time. To participate by phone, please dial 1-800-603-9255 (US/Can-ada), 1-706-634-2294 (Int’l) or 1-253-237-1879 (Int’l); Confer-ence ID: 3678629. The call will remain available for replay over Mohawk’s investor relations website through Mar. 14 or by dialing 1-855-859-2056 (US/Canada) or 1-404-537-3406 (Int’l/Local); Conference ID # 3678629. http://ir.mohawkind.com/

>Steelcase Inc. on Dec. 17 announced its FY20 third-quarter results (dollars in millions except EPS):

3 Mos. Ended 11.22.19 11.23.18 %Ch.Revenue $955.2 $901.0 6.0%Gross Profit $316.1 $278.3 13.6%Oper. Exp. $241.0 $232.9 3.5%Oper. Inc. $75.1 $45.4 65.4%Net Inc. $54.9 $37.3 47.2%EPS (dil.) $0.46 $0.31 48.4%

9 Mos. Ended 11.22.19 11.23.18 %Ch.Revenue $2,777.5 $2,530.8 9.7%Gross Profit $908.0 $804.8 12.8%Oper. Exp. $720.0 $668.2 7.8%Oper. Inc. $188.0 $136.6 37.6%Net Inc. $133.2 $103.4 28.8%EPS (dil.) $1.11 $0.87 27.6%

Highlights:

-Operating margin increased 290 basis points to 7.9%; EPS improved 48% to $0.46

-Revenue grew 6% to $955 million, driven by strong organic growth in the Americas

-EMEA delivers $7 million improvement in operating income and is profitable for the fiscal year to date

-Company projects fiscal year 2020 revenue of $3.7 billion and EPS of $1.41 to $1.45

http://www.hermanmiller.com/investors/

https://myinscape.com/investors

https://investors.interface.com/investor-relations

https://investors.interface.com/investor-relations

http://www.ir.kimballinternational.com

http://ir.mohawkind.com/


business“We’re proud to deliver another quarter of outstanding results, including a 28% improvement in adjusted earnings and terrific year-over-year increases in operating margins in the Americas and EMEA,” said Steelcase President and CEO Jim Keane. “Our teams continue to execute against our strategies for growth and profit improvement. We continue to capitalize on the investments we’ve made in new product development and drive initiatives for improving our cost structure.”

“Our $7 million year-over-year profit improvement in EMEA this quarter is reflective of our teams executing against our strategies as we sustained a high level of revenue while driving improvements in gross margin and operating expenses,” said Senior Vice President and CFO Dave Sylvester. “Our year-to-date profitability demonstrates our ability to drive continued improvement in our business, despite an overall economic environment that continues to be challenging, and puts us in a great position to achieve our near-term target of being profitable in EMEA for fiscal 2020.”

Interest expense of $6.7 million in the third quarter represented an increase of $2.0 million compared to $4.7 million in the prior year due to a higher level of outstanding debt.

Income tax expense of $18.9 million in the third quarter reflected an effective tax rate of 25.6 percent. In the prior year, income tax expense was $7.9 million and reflected an effective tax rate of 17.5 percent, which included a $3.6 million favor-able adjustment.

Total liquidity, comprised of cash, cash equivalents and the cash surrender value of company-owned life insurance, ag-gregated to $527.6 million and total debt was $484.1 million at the end of the third quarter.

“Our strong cash position was further strengthened this quarter as we generated $176 million of cash flow from operations due to strong earnings, a seasonal reduction of working capital, lower estimated tax payments and other favorable timing,” said Mr. Sylvester.

The Steelcase Board of Directors declared a quarterly cash dividend of $0.145 per share, to be paid on or before Jan. 13 to shareholders of record as of Dec. 27.

Business Segment Results (dollars in millions):

3 Mos. Ended 11.22.19 11.23.18 %Ch.Revenue Americas $690.9 $638.6 8.2% EMEA $168.4 $170.9 -1.5% Other $95.9 $91.5 4.8%Operating income/loss Americas $74.7 $52.0 43.7% EMEA $6.3 -$0.7 - Other $3.3 $4.2 -21.4%

Revenue mix Americas 72.3% 70.9% 3.9% EMEA 17.6% 19.0% Other 10.1% 10.1% 0.0%

9 Mos. Ended 11.22.19 11.23.18 %Ch.Revenue Americas $2,006.7 $1,828.5 9.7% EMEA $483.9 $441.5 9.6% Other $286.9 $260.8 10.0%Operating income/loss Americas $197.4 $158.9 24.2% EMEA $1.6 -$8.4 - Other $14.5 $10.6 36.8%Revenue mix Americas 72.2% 72.3% 1.1% EMEA 17.4% 17.4% Other 10.4% 10.3% -2.9%

(The Americas segment serves customers in the U.S., Canada, the Caribbean Islands, and Latin America with a portfolio of integrated architecture, furniture, and technology products marketed to corporate, government, healthcare, education, and retail customers through the Steelcase, Coalesse, Turn-stone, Smith System, AMQ, and Orangebox brands. The EMEA segment serves customers in Europe, the Middle East, and Africa primarily under the Steelcase, Orangebox, and Coalesse brands, with an emphasis on freestanding furniture systems, storage, and seating solutions. The Other category includes Asia Pacific, Designtex, and PolyVision.)

Outlook

Steelcase expects fiscal 2020 revenue to approximate $3.7 billion, with revenue in the fourth quarter expected to be in the range of $905 to $930 million. The company reported revenue of $3.4 billion in fiscal 2019, with $912.4 million in the fourth quarter. Adjusted for the impact of an additional week in fiscal 2020 and unfavorable currency translation effects, the projected revenue range for the fourth quarter translates to an expected organic decline of 2% to 5% compared to the fourth quarter of fiscal 2019, which reflected revenue growth of 18% and organic revenue growth of 15% compared to the previous year.

“Our fourth quarter estimate is impacted by the favorable shipment timing we experienced in the third quarter, which included benefits from the timing of Thanksgiving which fell in Q3 of the prior year compared to Q4 of the current year,” said Mr. Sylvester. “We estimate that the fourth quarter will be negatively impacted by $20 million or more compared to the prior year as a result of that timing. We’re pleased our revenue outlook for the full fiscal year is consistent with the targets we established at the beginning of the year as our industry has re-mained resilient, even as corporate capital spending has been


businessunder pressure, and our growth strategies have driven gains in our market share.”

Steelcase expects to report diluted earnings per share between $1.41 to $1.45 for fiscal 2020, including an estimate for the fourth quarter of $0.30 to $0.34. Steelcase reported diluted earnings per share of $1.05 and adjusted earnings of $1.20 per share in fiscal 2019, with earnings per share of $0.19 and adjusted earnings of $0.29 per share in the fourth quarter.

“Our expectation for earnings per share for the full fiscal year would put us well above the $1.20 to $1.35 range we estab-

lished at the start of the year,” said Mr. Keane. “As we look out beyond the end of this fiscal year, we believe we will continue to grow faster than the industry and deliver strong earnings growth as we drive value from our acquisitions, continue to improve our profitability in EMEA and continue to invest in new product development and other growth initiatives.”

A replay of Steelcase’s Dec. 18 conference call webcast, in-cluding presentation slides, as well as the complete text of the company’s 3Q20 earnings release, including all tables, may be accessed at http://ir.steelcase.com.

http://ir.steelcase.com


JOB SITETo place ads or to get a price quote contact Bob Beck [email protected] 972 293 9186

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Robert [email protected] 972 293 9186

Mallory [email protected] 219 263 9006

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Who we are:

Campbell Keller is a commer-cial and education furniture dealer that has been in opera-tion since 1981. We service and sell furniture to clients that include the federal, state, county, city, higher education and K-12 as well as commer-cial entities of all types.

You would lead the design department as well as be an integral part of the manage-ment team of the dealership.

Your Qualifications, Skills and Responsibilities:

> Bachelor’s degree from an accredited school of design or architecture.

> 7+ years of professional experience with some man-agement experience.

> LEED accreditation and NCIDQ, ASID, IIDA pre-ferred.

> Proficient in AutoCAD and other computer design programs.

> Excellent analytical and problem-solving skills.

> Expert Knowledge of FF&E, color & materials.

> Expert Knowledge of furni-ture systems and specifica-tions.

> Review drawings, mock ups, materials, and finish samples submitted by Design staff

> Strong leadership, commu-nication, and relationship management skills.

> Ability to balance customer expectations with project reality.

> Excellent analytical and problem-solving skills

> Mentor and provide cre-ative direction to design team.

> Producing space plans, furniture plans, elevations, conceptual and finished design presentation docu-mentation.

Position offers, healthcare, vision, dental, 401K, paid holidays and paid time off and profit sharing/Bonus op-portunities as well. Campbell Keller also offers a reimburse-ment program for continuing education, as we view this as an investment in our future.

For Consideration please sub-mit your Resume to [email protected]

Design Manager - Sacramento, CA

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