Attached files
| file | filename |
|---|---|
| 8-K - LA-Z-BOY INCORPORATED 8-K 2-18-2014 - LA-Z-BOY INC | form8k.htm |
| EX-99.1 - EXHIBIT 99.1 - LA-Z-BOY INC | ex99_1.htm |
Exhibit 99.2
LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF INCOME
|
|
Third Quarter Ended
|
|||||||
|
(Unaudited, amounts in thousands, except per share data)
|
1/25/14
|
1/26/13
|
||||||
|
Sales
|
$
|
350,375
|
$
|
340,211
|
||||
|
Cost of sales
|
228,186
|
227,956
|
||||||
|
Gross profit
|
122,189
|
112,255
|
||||||
|
Selling, general and administrative expense
|
96,740
|
89,443
|
||||||
|
Operating income
|
25,449
|
22,812
|
||||||
|
Interest expense
|
142
|
148
|
||||||
|
Interest income
|
183
|
198
|
||||||
|
Other income (expense), net
|
849
|
2,401
|
||||||
|
Income from continuing operations before income taxes
|
26,339
|
25,263
|
||||||
|
Income tax expense
|
8,751
|
8,391
|
||||||
|
Income from continuing operations
|
17,588
|
16,872
|
||||||
|
Income (loss) from discontinued operations, net of tax
|
(717
|
)
|
291
|
|||||
|
Net income
|
16,871
|
17,163
|
||||||
|
Net income attributable to noncontrolling interests
|
(388
|
)
|
(99
|
)
|
||||
|
Net income attributable to La-Z-Boy Incorporated
|
$
|
16,483
|
$
|
17,064
|
||||
|
|
||||||||
|
Net income attributable to La-Z-Boy Incorporated:
|
||||||||
|
Income from continuing operations attributable to La-Z-Boy Incorporated
|
$
|
17,200
|
$
|
16,773
|
||||
|
Income (loss) from discontinued operations
|
(717
|
)
|
291
|
|||||
|
Net income attributable to La-Z-Boy Incorporated
|
$
|
16,483
|
$
|
17,064
|
||||
|
|
||||||||
|
Basic average shares
|
52,516
|
52,431
|
||||||
|
Basic net income attributable to La-Z-Boy Incorporated per share:
|
||||||||
|
Income from continuing operations attributable to La-Z-Boy Incorporated
|
$
|
0.33
|
$
|
0.31
|
||||
|
Income (loss) from discontinued operations
|
(0.02
|
)
|
0.01
|
|||||
|
Basic net income attributable to La-Z-Boy Incorporated per share
|
$
|
0.31
|
$
|
0.32
|
||||
|
|
||||||||
|
Diluted average shares
|
53,226
|
53,401
|
||||||
|
Diluted net income attributable to La-Z-Boy Incorporated per share:
|
||||||||
|
Income from continuing operations attributable to La-Z-Boy Incorporated
|
$
|
0.32
|
$
|
0.31
|
||||
|
Income (loss) from discontinued operations
|
(0.01
|
)
|
0.01
|
|||||
|
Diluted net income attributable to La-Z-Boy Incorporated per share
|
$
|
0.31
|
$
|
0.32
|
||||
|
|
||||||||
|
Dividends declared per share
|
$
|
0.06
|
$
|
0.04
|
||||
LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF INCOME
|
|
Nine Months Ended
|
|||||||
|
(Unaudited, amounts in thousands, except per share data)
|
1/25/14
|
1/26/13
|
||||||
|
Sales
|
$
|
1,017,692
|
$
|
945,848
|
||||
|
Cost of sales
|
670,011
|
646,038
|
||||||
|
Gross profit
|
347,681
|
299,810
|
||||||
|
Selling, general and administrative expense
|
281,767
|
259,111
|
||||||
|
Operating income
|
65,914
|
40,699
|
||||||
|
Interest expense
|
411
|
512
|
||||||
|
Interest income
|
539
|
435
|
||||||
|
Other income (expense), net
|
1,107
|
2,515
|
||||||
|
Income from continuing operations before income taxes
|
67,149
|
43,137
|
||||||
|
Income tax expense
|
22,462
|
14,912
|
||||||
|
Income from continuing operations
|
44,687
|
28,225
|
||||||
|
Income (loss) from discontinued operations, net of tax
|
(864
|
)
|
465
|
|||||
|
Net income
|
43,823
|
28,690
|
||||||
|
Net income attributable to noncontrolling interests
|
(1,006
|
)
|
(609
|
)
|
||||
|
Net income attributable to La-Z-Boy Incorporated
|
$
|
42,817
|
$
|
28,081
|
||||
|
|
||||||||
|
Net income attributable to La-Z-Boy Incorporated:
|
||||||||
|
Income from continuing operations attributable to La-Z-Boy Incorporated
|
$
|
43,681
|
$
|
27,616
|
||||
|
Income (loss) from discontinued operations
|
(864
|
)
|
465
|
|||||
|
Net income attributable to La-Z-Boy Incorporated
|
$
|
42,817
|
$
|
28,081
|
||||
|
|
||||||||
|
Basic average shares
|
52,465
|
52,327
|
||||||
|
Basic net income attributable to La-Z-Boy Incorporated per share:
|
||||||||
|
Income from continuing operations attributable to La-Z-Boy Incorporated
|
$
|
0.83
|
$
|
0.52
|
||||
|
Income (loss) from discontinued operations
|
(0.02
|
)
|
0.01
|
|||||
|
Basic net income attributable to La-Z-Boy Incorporated per share
|
$
|
0.81
|
$
|
0.53
|
||||
|
|
||||||||
|
Diluted average shares
|
53,379
|
53,201
|
||||||
|
Diluted net income attributable to La-Z-Boy Incorporated per share:
|
||||||||
|
Income from continuing operations attributable to La-Z-Boy Incorporated
|
$
|
0.81
|
$
|
0.51
|
||||
|
Income (loss) from discontinued operations
|
(0.01
|
)
|
0.01
|
|||||
|
Diluted net income attributable to La-Z-Boy Incorporated per share
|
$
|
0.80
|
$
|
0.52
|
||||
|
|
||||||||
|
Dividends declared per share
|
$
|
0.14
|
$
|
0.04
|
||||
|
|
||||||||
LA-Z-BOY INCORPORATED
CONSOLIDATED BALANCE SHEET
|
(Unaudited, amounts in thousands)
|
1/25/14
|
4/27/13
|
||||||
|
Current assets
|
||||||||
|
Cash and equivalents
|
$
|
140,112
|
$
|
131,085
|
||||
|
Restricted cash
|
12,566
|
12,686
|
||||||
|
Receivables, net of allowance of $12,706 at 1/25/14 and $21,607 at 4/27/13
|
151,917
|
160,005
|
||||||
|
Inventories, net
|
159,586
|
146,343
|
||||||
|
Deferred income taxes – current
|
19,174
|
20,640
|
||||||
|
Business held for sale
|
8,923
|
—
|
||||||
|
Other current assets
|
27,797
|
30,121
|
||||||
|
Total current assets
|
520,075
|
500,880
|
||||||
|
Property, plant and equipment, net
|
122,422
|
118,060
|
||||||
|
Goodwill
|
13,923
|
12,837
|
||||||
|
Other intangible assets
|
5,931
|
4,838
|
||||||
|
Deferred income taxes – long-term
|
33,927
|
30,572
|
||||||
|
Other long-term assets, net
|
67,923
|
53,184
|
||||||
|
Total assets
|
$
|
764,201
|
$
|
720,371
|
||||
|
|
||||||||
|
Current liabilities
|
||||||||
|
Current portion of long-term debt
|
$
|
7,574
|
$
|
513
|
||||
|
Accounts payable
|
53,814
|
50,542
|
||||||
|
Business held for sale
|
2,653
|
—
|
||||||
|
Accrued expenses and other current liabilities
|
99,841
|
99,108
|
||||||
|
Total current liabilities
|
163,882
|
150,163
|
||||||
|
Long-term debt
|
345
|
7,576
|
||||||
|
Other long-term liabilities
|
80,652
|
70,664
|
||||||
|
Contingencies and commitments
|
—
|
—
|
||||||
|
Shareholders’ equity
|
||||||||
|
Preferred shares – 5,000 authorized; none issued
|
—
|
—
|
||||||
|
Common shares, $1 par value – 150,000 authorized; 52,419 outstanding at 1/25/14 and 52,392 outstanding at 4/27/13
|
52,419
|
52,392
|
||||||
|
Capital in excess of par value
|
254,403
|
241,888
|
||||||
|
Retained earnings
|
240,628
|
226,044
|
||||||
|
Accumulated other comprehensive loss
|
(35,512
|
)
|
(35,496
|
)
|
||||
|
Total La-Z-Boy Incorporated shareholders' equity
|
511,938
|
484,828
|
||||||
|
Noncontrolling interests
|
7,384
|
7,140
|
||||||
|
Total equity
|
519,322
|
491,968
|
||||||
|
Total liabilities and equity
|
$
|
764,201
|
$
|
720,371
|
||||
LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF CASH FLOWS
|
|
Nine Months Ended
|
|||||||
|
(Unaudited, amounts in thousands)
|
1/25/14
|
1/26/13
|
||||||
|
Cash flows from operating activities
|
||||||||
|
Net income
|
$
|
43,823
|
$
|
28,690
|
||||
|
Adjustments to reconcile net income to cash provided by (used for) operating activities
|
||||||||
|
Gain on sale of investments
|
(282
|
)
|
(2,866
|
)
|
||||
|
Impairment of business held for sale
|
1,149
|
—
|
||||||
|
Deferred income tax benefit
|
(2,929
|
)
|
(745
|
)
|
||||
|
Restructuring
|
(115
|
)
|
2,716
|
|||||
|
Provision for doubtful accounts
|
(2,494
|
)
|
1,009
|
|||||
|
Depreciation and amortization
|
17,529
|
17,111
|
||||||
|
Stock-based compensation expense
|
7,371
|
8,198
|
||||||
|
Pension plan contributions
|
—
|
(3,480
|
)
|
|||||
|
Change in receivables
|
4,865
|
2,457
|
||||||
|
Change in inventories
|
(15,166
|
)
|
(12,355
|
)
|
||||
|
Change in other assets
|
2,980
|
(5,432
|
)
|
|||||
|
Change in payables
|
2,865
|
(6,261
|
)
|
|||||
|
Change in other liabilities
|
3,193
|
4,410
|
||||||
|
Net cash provided by operating activities
|
62,789
|
33,452
|
||||||
|
|
||||||||
|
Cash flows from investing activities
|
||||||||
|
Proceeds from disposal of assets
|
2,248
|
1,484
|
||||||
|
Capital expenditures
|
(23,078
|
)
|
(21,792
|
)
|
||||
|
Purchases of investments
|
(40,796
|
)
|
(36,353
|
)
|
||||
|
Proceeds from sales of investments
|
27,974
|
12,658
|
||||||
|
Acquisitions, net of cash acquired
|
(801
|
)
|
(15,832
|
)
|
||||
|
Change in restricted cash
|
120
|
(6,937
|
)
|
|||||
|
Net cash used for investing activities
|
(34,333
|
)
|
(66,772
|
)
|
||||
|
|
||||||||
|
Cash flows from financing activities
|
||||||||
|
Payments on debt
|
(434
|
)
|
(2,372
|
)
|
||||
|
Stock issued for stock and employee benefit plans
|
3,526
|
1,528
|
||||||
|
Excess tax benefit on stock option exercises
|
5,805
|
1,117
|
||||||
|
Purchases of common stock
|
(20,276
|
)
|
(5,217
|
)
|
||||
|
Dividends paid
|
(7,375
|
)
|
(2,119
|
)
|
||||
|
Net cash used for financing activities
|
(18,754
|
)
|
(7,063
|
)
|
||||
|
|
||||||||
|
Effect of exchange rate changes on cash and equivalents
|
(675
|
)
|
(6
|
)
|
||||
|
Change in cash and equivalents
|
9,027
|
(40,389
|
)
|
|||||
|
Cash and equivalents at beginning of period
|
131,085
|
152,370
|
||||||
|
Cash and equivalents at end of period
|
$
|
140,112
|
$
|
111,981
|
||||
|
|
||||||||
|
Supplemental disclosure of non-cash investing activities
|
||||||||
|
Capital expenditures included in payables
|
$
|
2,183
|
$
|
—
|
||||
LA-Z-BOY INCORPORATED
SEGMENT INFORMATION
|
|
Third Quarter Ended
|
Nine Months Ended
|
||||||||||||||
|
(Unaudited, amounts in thousands)
|
1/25/14
|
1/26/13
|
1/25/14
|
1/26/13
|
||||||||||||
|
Sales
|
||||||||||||||||
|
Upholstery segment:
|
||||||||||||||||
|
Sales to external customers
|
$
|
242,492
|
$
|
236,428
|
$
|
710,162
|
$
|
657,073
|
||||||||
|
Intersegment sales
|
37,780
|
34,622
|
103,183
|
93,401
|
||||||||||||
|
Upholstery segment sales
|
280,272
|
271,050
|
813,345
|
750,474
|
||||||||||||
|
Casegoods segment:
|
||||||||||||||||
|
Sales to external customers
|
27,267
|
30,496
|
85,733
|
95,841
|
||||||||||||
|
Intersegment sales
|
2,367
|
2,115
|
7,269
|
5,907
|
||||||||||||
|
Casegoods segment sales
|
29,634
|
32,611
|
93,002
|
101,748
|
||||||||||||
|
|
||||||||||||||||
|
Retail segment sales
|
80,212
|
72,772
|
219,845
|
191,089
|
||||||||||||
|
Corporate and Other
|
404
|
515
|
1,952
|
1,845
|
||||||||||||
|
Eliminations
|
(40,147
|
)
|
(36,737
|
)
|
(110,452
|
)
|
(99,308
|
)
|
||||||||
|
Consolidated sales
|
$
|
350,375
|
$
|
340,211
|
$
|
1,017,692
|
$
|
945,848
|
||||||||
|
|
||||||||||||||||
|
Operating Income (Loss)
|
||||||||||||||||
|
Upholstery segment
|
$
|
31,560
|
$
|
27,909
|
$
|
86,547
|
$
|
64,892
|
||||||||
|
Casegoods segment
|
(41
|
)
|
200
|
1,161
|
2,381
|
|||||||||||
|
Retail segment
|
3,087
|
2,668
|
8,264
|
105
|
||||||||||||
|
Restructuring
|
60
|
(30
|
)
|
115
|
(2,633
|
)
|
||||||||||
|
Corporate and Other
|
(9,217
|
)
|
(7,935
|
)
|
(30,173
|
)
|
(24,046
|
)
|
||||||||
|
Consolidated operating income
|
$
|
25,449
|
$
|
22,812
|
$
|
65,914
|
$
|
40,699
|
||||||||