Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - LA-Z-BOY INC | ex99_1.htm |
| 8-K - LA-Z-BOY INCORPORATED 8-K 6-17-2014 - LA-Z-BOY INC | form8k.htm |
EXHIBIT 99.2
LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF INCOME
|
|
Unaudited
For the Quarter Ended
|
Unaudited
For the Year Ended
|
||||||||||||||
|
(Amounts in thousands, except per share data)
|
4/26/2014
|
4/27/2013
|
4/26/2014
|
4/27/2013
|
||||||||||||
|
Sales
|
$
|
353,020
|
$
|
345,840
|
$
|
1,357,318
|
$
|
1,273,877
|
||||||||
|
Cost of sales
|
||||||||||||||||
|
Cost of goods sold
|
229,563
|
225,454
|
888,025
|
854,542
|
||||||||||||
|
Restructuring
|
4,954
|
(29
|
)
|
4,839
|
2,480
|
|||||||||||
|
Total cost of sales
|
234,517
|
225,425
|
892,864
|
857,022
|
||||||||||||
|
Gross profit
|
118,503
|
120,415
|
464,454
|
416,855
|
||||||||||||
|
Selling, general and administrative expense
|
95,974
|
93,266
|
375,158
|
349,101
|
||||||||||||
|
Restructuring
|
—
|
28
|
—
|
151
|
||||||||||||
|
Operating income
|
22,529
|
27,121
|
89,296
|
67,603
|
||||||||||||
|
Interest expense
|
137
|
234
|
548
|
746
|
||||||||||||
|
Interest income
|
222
|
186
|
761
|
620
|
||||||||||||
|
Other income, net
|
943
|
692
|
2,050
|
3,208
|
||||||||||||
|
Income from continuing operations before income taxes
|
23,557
|
27,765
|
91,559
|
70,685
|
||||||||||||
|
Income tax expense
|
8,597
|
8,690
|
31,383
|
23,520
|
||||||||||||
|
Income from continuing operations
|
14,960
|
19,075
|
60,176
|
47,165
|
||||||||||||
|
Income (loss) from discontinued operations, net of tax
|
(2,403
|
)
|
(583
|
)
|
(3,796
|
)
|
17
|
|||||||||
|
Net income
|
12,557
|
18,492
|
56,380
|
47,182
|
||||||||||||
|
Net income attributable to noncontrolling interests
|
(318
|
)
|
(184
|
)
|
(1,324
|
)
|
(793
|
)
|
||||||||
|
Net income attributable to La-Z-Boy Incorporated
|
$
|
12,239
|
$
|
18,308
|
$
|
55,056
|
$
|
46,389
|
||||||||
|
|
||||||||||||||||
|
Net income attributable to La-Z-Boy Incorporated:
|
||||||||||||||||
|
Income from continuing operations attributable to La-Z-Boy Incorporated
|
$
|
14,642
|
$
|
18,891
|
$
|
58,852
|
$
|
46,372
|
||||||||
|
Income (loss) from discontinued operations
|
(2,403
|
)
|
(583
|
)
|
(3,796
|
)
|
17
|
|||||||||
|
Net income attributable to La-Z-Boy Incorporated
|
$
|
12,239
|
$
|
18,308
|
$
|
55,056
|
$
|
46,389
|
||||||||
|
|
||||||||||||||||
|
Diluted weighted average shares
|
53,519
|
53,754
|
53,829
|
53,685
|
||||||||||||
|
|
||||||||||||||||
|
Diluted net income attributable to La-Z-Boy Incorporated per share:
|
||||||||||||||||
|
Income from continuing operations attributable to La-Z-Boy Incorporated
|
$
|
0.27
|
$
|
0.34
|
$
|
1.09
|
$
|
0.85
|
||||||||
|
Loss from discontinued operations
|
(0.04
|
)
|
(0.01
|
)
|
(0.07
|
)
|
—
|
|||||||||
|
Diluted net income attributable to La-Z-Boy Incorporated per share
|
$
|
0.23
|
$
|
0.33
|
$
|
1.02
|
$
|
0.85
|
||||||||
|
|
||||||||||||||||
|
Dividends declared per share
|
$
|
0.06
|
$
|
0.04
|
$
|
0.20
|
$
|
0.08
|
||||||||
LA-Z-BOY INCORPORATED
CONSOLIDATED BALANCE SHEET
|
|
Unaudited As of
|
|||||||
|
(Amounts in thousands, except par value)
|
4/26/2014
|
4/27/2013
|
||||||
|
Current assets
|
||||||||
|
Cash and equivalents
|
$
|
149,661
|
$
|
131,085
|
||||
|
Restricted cash
|
12,572
|
12,686
|
||||||
|
Receivables, net of allowance of $12,368 at 4/26/14 and $21,607 at 4/27/13
|
152,614
|
160,005
|
||||||
|
Inventories, net
|
147,009
|
146,343
|
||||||
|
Deferred income taxes – current
|
15,037
|
20,640
|
||||||
|
Business held for sale
|
4,290
|
—
|
||||||
|
Other current assets
|
41,490
|
30,121
|
||||||
|
Total current assets
|
522,673
|
500,880
|
||||||
|
Property, plant and equipment, net
|
127,535
|
118,060
|
||||||
|
Goodwill
|
13,923
|
12,837
|
||||||
|
Other intangible assets
|
4,544
|
4,838
|
||||||
|
Deferred income taxes – long-term
|
32,430
|
30,572
|
||||||
|
Other long-term assets, net
|
70,190
|
53,184
|
||||||
|
Total assets
|
$
|
771,295
|
$
|
720,371
|
||||
|
|
||||||||
|
Current liabilities
|
||||||||
|
Current portion of long-term debt
|
$
|
7,497
|
$
|
513
|
||||
|
Accounts payable
|
56,177
|
50,542
|
||||||
|
Business held for sale
|
832
|
—
|
||||||
|
Accrued expenses and other current liabilities
|
102,876
|
99,108
|
||||||
|
Total current liabilities
|
167,382
|
150,163
|
||||||
|
Long-term debt
|
277
|
7,576
|
||||||
|
Other long-term liabilities
|
73,918
|
70,664
|
||||||
|
Contingencies and commitments
|
—
|
—
|
||||||
|
Shareholders’ equity
|
||||||||
|
Preferred shares – 5,000 authorized; none issued
|
—
|
—
|
||||||
|
Common shares, $1 par value – 150,000 authorized; 51,981 outstanding at 4/26/14 and 52,392 outstanding at 4/27/13
|
51,981
|
52,392
|
||||||
|
Capital in excess of par value
|
262,901
|
241,888
|
||||||
|
Retained earnings
|
238,384
|
226,044
|
||||||
|
Accumulated other comprehensive loss
|
(31,380
|
)
|
(35,496
|
)
|
||||
|
Total La-Z-Boy Incorporated shareholders' equity
|
521,886
|
484,828
|
||||||
|
Noncontrolling interests
|
7,832
|
7,140
|
||||||
|
Total equity
|
529,718
|
491,968
|
||||||
|
Total liabilities and equity
|
$
|
771,295
|
$
|
720,371
|
||||
LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF CASH FLOWS
|
|
Unaudited Fiscal Year Ended
|
|||||||
|
(Amounts in thousands)
|
4/26/2014
|
4/27/2013
|
||||||
|
Cash flows from operating activities
|
||||||||
|
Net income
|
$
|
56,380
|
$
|
47,182
|
||||
|
Adjustments to reconcile net income to cash provided by operating activities
|
||||||||
|
(Gain) loss on disposal of assets
|
616
|
(659
|
)
|
|||||
|
Gain on sale of investments
|
(300
|
)
|
(3,170
|
)
|
||||
|
Write-down of long-lived assets
|
1,149
|
—
|
||||||
|
Deferred income tax expense (benefit)
|
(216
|
)
|
3,198
|
|||||
|
Restructuring
|
8,071
|
2,715
|
||||||
|
Provision for doubtful accounts
|
(2,651
|
)
|
1,005
|
|||||
|
Depreciation and amortization
|
23,182
|
23,140
|
||||||
|
Stock-based compensation expense
|
8,739
|
11,458
|
||||||
|
Pension plan contributions
|
—
|
(23,480
|
)
|
|||||
|
Change in receivables
|
3,337
|
7,139
|
||||||
|
Change in inventories
|
(9,444
|
)
|
391
|
|||||
|
Change in other assets
|
(2,958
|
)
|
(5,407
|
)
|
||||
|
Change in accounts payable
|
1,704
|
(6,088
|
)
|
|||||
|
Change in other liabilities
|
3,223
|
11,016
|
||||||
|
Net cash provided by operating activities
|
90,832
|
68,440
|
||||||
|
Cash flows from investing activities
|
||||||||
|
Proceeds from disposals of assets
|
2,233
|
4,455
|
||||||
|
Proceeds from sale of business
|
6,844
|
—
|
||||||
|
Capital expenditures
|
(33,730
|
)
|
(25,912
|
)
|
||||
|
Purchases of investments
|
(54,233
|
)
|
(49,589
|
)
|
||||
|
Proceeds from sales of investments
|
34,557
|
18,662
|
||||||
|
Acquisitions, net of cash acquired
|
(801
|
)
|
(15,832
|
)
|
||||
|
Change in restricted cash
|
114
|
(9,825
|
)
|
|||||
|
Net cash used for investing activities
|
(45,016
|
)
|
(78,041
|
)
|
||||
|
Cash flows from financing activities
|
||||||||
|
Payments on debt
|
(579
|
)
|
(2,511
|
)
|
||||
|
Stock issued for stock and employee benefit plans
|
3,565
|
2,901
|
||||||
|
Excess tax benefit on stock option exercises
|
12,935
|
2,563
|
||||||
|
Purchases of common stock
|
(32,097
|
)
|
(10,333
|
)
|
||||
|
Dividends paid
|
(10,514
|
)
|
(4,236
|
)
|
||||
|
Net cash used for financing activities
|
(26,690
|
)
|
(11,616
|
)
|
||||
|
Effect of exchange rate changes on cash and equivalents
|
(550
|
)
|
(68
|
)
|
||||
|
Change in cash and equivalents
|
18,576
|
(21,285
|
)
|
|||||
|
Cash and equivalents at beginning of period
|
131,085
|
152,370
|
||||||
|
Cash and equivalents at end of period
|
$
|
149,661
|
$
|
131,085
|
||||
|
Supplemental disclosure of non-cash investing activities
|
||||||||
|
Capital expenditures included in accounts payable
|
$
|
5,303
|
$
|
—
|
||||
LA-Z-BOY INCORPORATED
SEGMENT INFORMATION
|
|
Unaudited For the
Quarter Ended
|
Unaudited For the Year
Ended
|
||||||||||||||
|
(Amounts in thousands)
|
4/26/2014
|
4/27/2013
|
4/26/2014
|
4/27/2013
|
||||||||||||
|
Sales
|
||||||||||||||||
|
Upholstery segment:
|
||||||||||||||||
|
Sales to external customers
|
$
|
248,956
|
$
|
245,381
|
$
|
959,118
|
$
|
902,454
|
||||||||
|
Intersegment sales
|
36,749
|
33,910
|
139,932
|
127,311
|
||||||||||||
|
Upholstery segment sales
|
285,705
|
279,291
|
1,099,050
|
1,029,765
|
||||||||||||
|
Casegoods segment:
|
||||||||||||||||
|
Sales to external customers
|
24,756
|
26,357
|
97,095
|
104,387
|
||||||||||||
|
Intersegment sales
|
2,485
|
2,313
|
9,657
|
8,140
|
||||||||||||
|
Casegoods segment sales
|
27,241
|
28,670
|
106,752
|
112,527
|
||||||||||||
|
Retail segment sales
|
78,797
|
73,634
|
298,642
|
264,723
|
||||||||||||
|
Corporate and Other
|
511
|
468
|
2,463
|
2,313
|
||||||||||||
|
Eliminations
|
(39,234
|
)
|
(36,223
|
)
|
(149,589
|
)
|
(135,451
|
)
|
||||||||
|
Consolidated sales
|
$
|
353,020
|
$
|
345,840
|
$
|
1,357,318
|
$
|
1,273,877
|
||||||||
|
|
||||||||||||||||
|
Operating Income (Loss)
|
||||||||||||||||
|
Upholstery segment
|
$
|
31,141
|
$
|
30,679
|
$
|
117,688
|
$
|
95,571
|
||||||||
|
Casegoods segment
|
1,383
|
1,539
|
3,397
|
3,703
|
||||||||||||
|
Retail segment
|
2,864
|
3,994
|
11,128
|
4,099
|
||||||||||||
|
Restructuring
|
(4,954
|
)
|
2
|
(4,839
|
)
|
(2,631
|
)
|
|||||||||
|
Corporate and Other
|
(7,905
|
)
|
(9,093
|
)
|
(38,078
|
)
|
(33,139
|
)
|
||||||||
|
Consolidated operating income
|
$
|
22,529
|
$
|
27,121
|
$
|
89,296
|
$
|
67,603
|
||||||||
LA-Z-BOY INCORPORATED
UNAUDITED QUARTERLY FINANCIAL DATA
|
(Dollar amounts in thousands, except per share data)
|
||||||||||||||||
|
Fiscal Quarter Ended
|
7/27/2013
|
10/26/2013
|
1/25/2014
|
4/26/2014
|
||||||||||||
|
Sales
|
$
|
305,502
|
$
|
352,271
|
$
|
346,525
|
$
|
353,020
|
||||||||
|
Cost of sales
|
||||||||||||||||
|
Cost of goods sold
|
203,949
|
229,727
|
224,786
|
229,563
|
||||||||||||
|
Restructuring
|
87
|
(142
|
)
|
(60
|
)
|
4,954
|
||||||||||
|
Total cost of sales
|
204,036
|
229,585
|
224,726
|
234,517
|
||||||||||||
|
Gross profit
|
101,466
|
122,686
|
121,799
|
118,503
|
||||||||||||
|
Selling, general and administrative expense
|
86,701
|
96,568
|
95,915
|
95,974
|
||||||||||||
|
Operating income
|
14,765
|
26,118
|
25,884
|
22,529
|
||||||||||||
|
Interest expense
|
136
|
133
|
142
|
137
|
||||||||||||
|
Interest income
|
180
|
176
|
183
|
222
|
||||||||||||
|
Other income (expense), net
|
537
|
(279
|
)
|
849
|
943
|
|||||||||||
|
Income from continuing operations before income taxes
|
15,346
|
25,882
|
26,774
|
23,557
|
||||||||||||
|
Income tax expense
|
5,445
|
8,425
|
8,916
|
8,597
|
||||||||||||
|
Income from continuing operations
|
9,901
|
17,457
|
17,858
|
14,960
|
||||||||||||
|
Income (loss) from discontinued operations, net of tax
|
34
|
(440
|
)
|
(987
|
)
|
(2,403
|
)
|
|||||||||
|
Net income
|
9,935
|
17,017
|
16,871
|
12,557
|
||||||||||||
|
Net income attributable to noncontrolling interests
|
(345
|
)
|
(273
|
)
|
(388
|
)
|
(318
|
)
|
||||||||
|
Net income attributable to La-Z-Boy Incorporated
|
$
|
9,590
|
$
|
16,744
|
$
|
16,483
|
$
|
12,239
|
||||||||
|
|
||||||||||||||||
|
Net income attributable to La-Z-Boy Incorporated:
|
||||||||||||||||
|
Income from continuing operations attributable to La-Z-Boy Incorporated
|
$
|
9,556
|
$
|
17,184
|
$
|
17,470
|
$
|
14,642
|
||||||||
|
Income (loss) from discontinued operations
|
34
|
(440
|
)
|
(987
|
)
|
(2,403
|
)
|
|||||||||
|
Net income attributable to La-Z-Boy Incorporated
|
$
|
9,590
|
$
|
16,744
|
$
|
16,483
|
$
|
12,239
|
||||||||
|
|
||||||||||||||||
|
Diluted weighted average shares
|
53,051
|
53,261
|
53,226
|
53,519
|
||||||||||||
|
|
||||||||||||||||
|
Diluted net income attributable to La-Z-Boy Incorporated per share:
|
||||||||||||||||
|
Income from continuing operations attributable to La-Z-Boy Incorporated
|
$
|
0.18
|
$
|
0.32
|
$
|
0.33
|
$
|
0.27
|
||||||||
|
Loss from discontinued operations
|
—
|
(0.01
|
)
|
(0.02
|
)
|
(0.04
|
)
|
|||||||||
|
Diluted net income attributable to La-Z-Boy Incorporated per share
|
$
|
0.18
|
$
|
0.31
|
$
|
0.31
|
$
|
0.23
|
||||||||
|
|
||||||||||||||||
|
Dividends declared per share
|
$
|
0.04
|
$
|
0.04
|
$
|
0.06
|
$
|
0.06
|
||||||||
LA-Z-BOY INCORPORATED
UNAUDITED QUARTERLY FINANCIAL DATA
|
(Dollar amounts in thousands, except per share data)
|
||||||||||||||||
|
Fiscal Quarter Ended
|
7/28/2012
|
10/27/2012
|
1/26/2013
|
4/27/2013
|
||||||||||||
|
Sales
|
$
|
286,598
|
$
|
306,523
|
$
|
334,916
|
$
|
345,840
|
||||||||
|
Cost of sales
|
||||||||||||||||
|
Cost of goods sold
|
199,156
|
206,252
|
223,680
|
225,454
|
||||||||||||
|
Restructuring
|
—
|
2,509
|
—
|
(29
|
)
|
|||||||||||
|
Total cost of sales
|
199,156
|
208,761
|
223,680
|
225,425
|
||||||||||||
|
Gross profit
|
87,442
|
97,762
|
111,236
|
120,415
|
||||||||||||
|
Selling, general and administrative expense
|
79,950
|
87,437
|
88,448
|
93,266
|
||||||||||||
|
Restructuring
|
31
|
62
|
30
|
28
|
||||||||||||
|
Operating income
|
7,461
|
10,263
|
22,758
|
27,121
|
||||||||||||
|
Interest expense
|
173
|
191
|
148
|
234
|
||||||||||||
|
Interest income
|
121
|
116
|
197
|
186
|
||||||||||||
|
Other income (expense), net
|
(99
|
)
|
212
|
2,403
|
692
|
|||||||||||
|
Income from continuing operations before income taxes
|
7,310
|
10,400
|
25,210
|
27,765
|
||||||||||||
|
Income tax expense
|
2,704
|
3,755
|
8,371
|
8,690
|
||||||||||||
|
Income from continuing operations
|
4,606
|
6,645
|
16,839
|
19,075
|
||||||||||||
|
Income (loss) from discontinued operations, net of tax
|
89
|
187
|
324
|
(583
|
)
|
|||||||||||
|
Net income
|
4,695
|
6,832
|
17,163
|
18,492
|
||||||||||||
|
Net income attributable to noncontrolling interests
|
(297
|
)
|
(213
|
)
|
(99
|
)
|
(184
|
)
|
||||||||
|
Net income attributable to La-Z-Boy Incorporated
|
$
|
4,398
|
$
|
6,619
|
$
|
17,064
|
$
|
18,308
|
||||||||
|
|
||||||||||||||||
|
Net income attributable to La-Z-Boy Incorporated:
|
||||||||||||||||
|
Income from continuing operations attributable to La-Z-Boy Incorporated
|
$
|
4,309
|
$
|
6,432
|
$
|
16,740
|
$
|
18,891
|
||||||||
|
Income (loss) from discontinued operations
|
89
|
187
|
324
|
(583
|
)
|
|||||||||||
|
Net income attributable to La-Z-Boy Incorporated
|
$
|
4,398
|
$
|
6,619
|
$
|
17,064
|
$
|
18,308
|
||||||||
|
|
||||||||||||||||
|
Diluted weighted average shares
|
53,040
|
53,268
|
53,401
|
53,754
|
||||||||||||
|
|
||||||||||||||||
|
Diluted net income attributable to La-Z-Boy Incorporated per share:
|
||||||||||||||||
|
Income from continuing operations attributable to La-Z-Boy Incorporated
|
$
|
0.08
|
$
|
0.12
|
$
|
0.31
|
$
|
0.34
|
||||||||
|
Income (loss) from discontinued operations
|
—
|
—
|
0.01
|
(0.01
|
)
|
|||||||||||
|
Diluted net income attributable to La-Z-Boy Incorporated per share
|
$
|
0.08
|
$
|
0.12
|
$
|
0.32
|
$
|
0.33
|
||||||||
|
|
||||||||||||||||
|
Dividends declared per share
|
$
|
—
|
$
|
—
|
$
|
0.04
|
$
|
0.04
|
||||||||