Unaudited
For the Fiscal Quarter Ended

(Unaudited, amounts in thousands, except per share data)

7/25/15

7/26/14

Sales

$

341,423

$

326,980

Cost of sales

217,191

215,474

Gross profit

124,232

111,506

Selling, general and administrative expense

104,266

95,015

Operating income

19,966

16,491

Interest expense

112

132

Interest income

205

202

Other income (expense), net

1,968

(258

)

Income from continuing operations before income taxes

22,027

16,303

Income tax expense

7,904

5,755

Income from continuing operations

14,123

10,548

Income from discontinued operations, net of tax

—

2,497

Net income

14,123

13,045

Net (income) loss attributable to noncontrolling interests

(447

)

36

Net income attributable to La-Z-Boy Incorporated

$

13,676

$

13,081

Net income attributable to La-Z-Boy Incorporated:

Income from continuing operations attributable to La-Z-Boy Incorporated

$

13,676

$

10,584

Income from discontinued operations

—

2,497

Net income attributable to La-Z-Boy Incorporated

$

13,676

$

13,081

Basic weighted average common shares

50,583

52,191

Basic net income attributable to La-Z-Boy Incorporated per share:

Income from continuing operations attributable to La-Z-Boy Incorporated

$

0.27

$

0.20

Income from discontinued operations

—

0.05

Basic net income attributable to La-Z-Boy Incorporated per share

$

0.27

$

0.25

Diluted weighted average common shares

51,043

52,627

Diluted net income attributable to La-Z-Boy Incorporated per share:

Income from continuing operations attributable to La-Z-Boy Incorporated

$

0.27

$

0.20

Income from discontinued operations

—

0.05

Diluted net income attributable to La-Z-Boy Incorporated per share

$

0.27

$

0.25

Dividends declared per share

$

0.08

$

0.06

Unaudited As of

(Unaudited, amounts in thousands)

7/25/15

4/25/15

Current assets

Cash and equivalents

$

87,519

$

98,302

Restricted cash

9,636

9,636

Receivables, net of allowance of $4,251 at 7/25/15 and $4,622 at 4/25/15

135,700

158,548

Inventories, net

178,948

156,789

Deferred income taxes — current

11,229

11,255

Other current assets

43,307

41,921

Total current assets

466,339

476,451

Property, plant and equipment, net

173,700

174,036

Goodwill

15,164

15,164

Other intangible assets

5,458

5,458

Deferred income taxes — long-term

34,942

35,072

Other long-term assets, net

65,994

68,423

Total assets

$

761,597

$

774,604

Current liabilities

Current portion of long-term debt

$

432

$

397

Accounts payable

48,189

46,168

Accrued expenses and other current liabilities

96,563

108,326

Total current liabilities

145,184

154,891

Long-term debt

662

433

Other long-term liabilities

83,167

86,180

Contingencies and commitments

—

—

Shareholders’ equity

Preferred shares — 5,000 authorized; none issued

—

—

Common shares, $1 par value — 150,000 authorized; 50,562 outstanding at 7/25/15 and 50,747 outstanding at 4/25/15

50,562

50,747

Capital in excess of par value

273,185

270,032

Retained earnings

234,406

235,506

Accumulated other comprehensive loss

(34,339

)

(32,139

)

Total La-Z-Boy Incorporated shareholders’ equity

523,814

524,146

Noncontrolling interests

8,770

8,954

Total equity

532,584

533,100

Total liabilities and equity

$

761,597

$

774,604

Unaudited For the Fiscal
Quarter Ended

(Unaudited, amounts in thousands)

7/25/15

7/26/14

Cash flows from operating activities

Net income

$

14,123

$

13,045

Adjustments to reconcile net income to cash provided by (used for) operating activities

Deferred income tax expense (benefit)

148

(1,342

)

Provision for doubtful accounts

(340

)

(618

)

Depreciation and amortization

6,271

5,379

Equity-based compensation expense

3,012

3,010

Change in receivables

24,610

12,441

Change in inventories

(22,159

)

(15,874

)

Change in other assets

(6,933

)

2,985

Change in payables

2,021

(255

)

Change in other liabilities

(19,223

)

(19,993

)

Net cash provided by (used for) operating activities

1,530

(1,222

)

Cash flows from investing activities

Proceeds from disposal of assets

279

1,348

Capital expenditures

(6,506

)

(19,406

)

Purchases of investments

(5,422

)

(15,941

)

Proceeds from sales of investments

12,983

10,422

Change in restricted cash

—

7,289

Net cash provided by (used for) investing activities

1,334

(16,288

)

Cash flows from financing activities

Payments on debt

(122

)

(7,212

)

Stock issued for stock and employee benefit plans

145

131

Excess tax benefit on stock option exercises

363

249

Purchases of common stock

(9,171

)

(6,062

)

Dividends paid

(4,055

)

(3,119

)

Net cash used for financing activities

(12,840

)

(16,013

)

Effect of exchange rate changes on cash and equivalents

(807

)

171

Change in cash and equivalents

(10,783

)

(33,352

)

Cash and equivalents at beginning of period

98,302

149,661

Cash and equivalents at end of period

$

87,519

$

116,309

Supplemental disclosure of non-cash investing activities

Capital expenditures included in payables

$

500

$

8,024

Unaudited For the Fiscal
Quarter Ended

(Unaudited, amounts in thousands)

7/25/15

7/26/14

Sales

Upholstery segment:

Sales to external customers

$

232,484

$

227,156

Intersegment sales

40,192

35,703

Upholstery segment sales

272,676

262,859

Casegoods segment:

Sales to external customers

21,202

25,953

Intersegment sales

2,191

2,970

Casegoods segment sales

23,393

28,923

Retail segment sales

86,651

72,905

Corporate and Other:

Sales to external customers

1,086

966

Intersegment sales

516

—

Corporate and Other sales

1,602

966

Eliminations

(42,899

)

(38,673

)

Consolidated sales

$

341,423

$

326,980

Operating Income (Loss)

Upholstery segment

$

24,594

$

22,017

Casegoods segment

1,690

1,525

Retail segment

4,729

315

Restructuring

(165

)

357

Corporate and Other

(10,882

)

(7,723

)

Consolidated operating income

$

19,966

$

16,491