LA-Z-BOY INC - FORM 8-K - EX-99.2 - June 21, 2011

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EXHIBIT 99.2
 
LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF OPERATIONS
 
   
Unaudited
For the Quarter Ended
    
Unaudited
For the Year Ended
  
(Amounts in thousands, except per share data)
  
4/30/2011
(14 weeks)
    
4/24/2010
 (13 weeks)
    
4/30/2011
(53 weeks)
    
4/24/2010
(52 weeks)
  
Sales
   $ 338,905     $ 310,740     $ 1,187,143     $ 1,179,212  
Cost of sales
                                
Cost of goods sold
     230,862       209,300       832,962       803,945  
Restructuring
     (15 )     350       (163 )     2,141  
Total cost of sales
     230,847       209,650       832,799       806,086  
Gross profit
     108,058       101,090       354,344       373,126  
Selling, general and administrative
     91,280       85,059       323,314       331,405  
Restructuring
     78       271       650       1,293  
Write-down of long-lived assets
     4,471       —       4,471       —  
Operating income
     12,229       15,760       25,909       40,428  
Interest expense
     603       584       2,346       2,972  
Interest income
     228       109       944       724  
Income from Continued Dumping and Subsidy Offset Act, net
     151       —       1,054       4,436  
Other income (expense), net
     221       236       405       480  
Income before income taxes
     12,226       15,521       25,966       43,096  
Income tax expense
     5,466       1,709       8,593       11,737  
Net income (loss)
     6,760       13,812       17,373       31,359  
Net loss attributable to noncontrolling interests
     3,548       192       6,674       1,342  
Net income attributable to La-Z-Boy Incorporated
   $ 10,308     $ 14,004     $ 24,047     $ 32,701  
                                 
Basic average shares
     51,890       51,579       51,849       51,533  
                                 
Basic net income per share attributable to La-Z-Boy Incorporated
   $ 0.20     $ 0.27     $ 0.46     $ 0.63  
                                 
Diluted average shares
     52,359       52,101       52,279       51,732  
                                 
Diluted net income per share attributable to La-Z-Boy Incorporated
   $ 0.19     $ 0.26     $ 0.45     $ 0.62  
                                 
Dividends declared per share
   $ —     $ —     $ —     $ —  
 
 
 
 
 
LA-Z-BOY INCORPORATED
CONSOLIDATED BALANCE SHEET
 
   
Unaudited As of
  
 (Amounts in thousands, except par value)
  
4/30/2011
    
4/24/2010
  
Current assets
            
Cash and equivalents
   $ 115,262     $ 108,427  
Receivables, net of allowance of $23,937 in 2011 and $20,258 in 2010
     161,299       165,001  
Inventories, net
     138,444       132,480  
Deferred income taxes – current
     —       2,305  
Other current assets
     17,218       18,862  
Total current assets
     432,223       427,075  
Property, plant and equipment, net
     120,603       138,857  
Trade names
     3,100       3,100  
Deferred income taxes – long term
     2,883       458  
Other long-term assets
     34,646       38,293  
Total assets
   $ 593,455     $ 607,783  
                 
Current liabilities
                
Current portion of long-term debt
   $ 5,120     $ 1,066  
Accounts payable
     49,537       54,718  
Accrued expenses and other current liabilities
     77,447       91,523  
Total current liabilities
     132,104       147,307  
Long-term debt
     29,937       46,917  
Other long-term liabilities
     67,274       70,445  
Contingencies and commitments
     —       —  
Shareholders' equity
                
Common shares, $1 par value – 150,000 authorized; 51,909 outstanding in 2011 and 51,770 outstanding in 2010
     51,909       51,770  
Capital in excess of par value
     201,589       201,873  
Retained earnings
     126,622       106,466  
Accumulated other comprehensive loss
     (18,804 )     (20,284 )
Total La-Z-Boy Incorporated shareholders’ equity
     361,316       339,825  
Noncontrolling interests
     2,824       3,289  
Total equity
     364,140       343,114  
Total liabilities and equity
   $ 593,455     $ 607,783  
 
 
 
 
 
LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF CASH FLOWS
 
   
Unaudited Fiscal Year Ended
  
(Amounts in thousands)
  
4/30/2011
    
4/24/2010
    
4/25/2009
  
Cash flows from operating activities
                  
Net income (loss)
   $ 17,373     $ 31,359     $ (122,413 )
Adjustments to reconcile net income (loss) to cash provided by operating activities
                        
(Gain) loss on sale of assets
     201       (538 )     (2,813 )
Write-down of long-lived assets
     4,471       —       7,503  
Write-down of trade names
     —       —       5,541  
Write-down of goodwill
     —       —       42,136  
Write-down of investments
     —       —       5,140  
Deferred income tax expense/(benefit)
     (120 )     (2,693 )     39,233  
Restructuring
     487       3,434       12,460  
Provision for doubtful accounts
     7,197       6,535       25,254  
Depreciation and amortization
     24,302       25,246       24,142  
Stock-based compensation expense
     3,720       5,236       3,819  
Pension plan contributions
     (4,495 )     —       —  
Change in receivables
     1,599       (17,250 )     27,223  
Change in inventories
     (10,531 )     7,074       37,631  
Change in other assets
     (1,092 )     3,225       2,967  
Change in payables
     (4,429 )     13,147       (14,544 )
Change in other liabilities
     (10,837 )     14,884       (40,571 )
Total adjustments
     10,473       58,300       175,121  
    Net cash provided by operating activities
     27,846       89,659       52,708  
 
                        
Cash flows from investing activities
                        
Proceeds from disposals of assets
     506       3,338       9,060  
Capital expenditures
     (10,540 )     (10,986 )     (15,625 )
Purchases of investments
     (10,200 )     (4,933 )     (11,330 )
Proceeds from sales of investments
     10,655       8,833       34,675  
Change in restricted cash
     —       17,507       (18,207 )
Cash effects upon consolidation/(deconsolidation) of VIE
     (632 )     —       631  
Other
     (49 )     250       (581 )
Net cash provided by (used for) investing activities
     (10,260 )     14,009       (1,377 )
 
                        
Cash flows from financing activities
                        
Proceeds from debt
     30,585       41,817       50,794  
Payments on debt
     (41,618 )     (54,707 )     (92,139 )
Stock issued for stock and employee benefit plans
     270       1,035       —  
Dividends paid
     —       —       (5,177 )
Net cash used for financing activities
     (10,763 )     (11,855 )     (46,522 )
                         
Effect of exchange rate changes on cash and equivalents
     12       (756 )     (901 )
Change in cash and equivalents
     6,835       91,057       3,908  
Cash and equivalents at beginning of period
     108,427       17,370       13,462  
Cash and equivalents at end of period
   $ 115,262     $ 108,427     $ 17,370  
 
 
 
 
 
LA-Z-BOY INCORPORATED
Segment Information
 
   
Unaudited
For the Quarter Ended
    
Unaudited
For the Year Ended
  
   
4/30/2011
    
4/24/2010
    
4/30/2011
    
4/24/2010
  
(Amounts in thousands)
  
(14 weeks)
    
(13 weeks)
    
(53 weeks)
    
(52 weeks)
  
Sales
                        
Upholstery Group
   $ 264,842     $ 241,137     $ 916,867     $ 904,871  
Casegoods Group
     40,749       37,510       152,534       146,706  
Retail Group
     58,288       39,233       176,987       153,620  
VIEs
     3,646       13,557       29,105       53,173  
Corporate and Other
     471       440       1,909       4,583  
   Eliminations
     (29,091 )     (21,137 )     (90,259 )     (83,741 )
Consolidated Sales
   $ 338,905     $ 310,740     $ 1,187,143     $ 1,179,212  
                                 
Operating income (loss)
                                
Upholstery Group
   $ 27,163     $ 28,610     $ 72,743     $ 95,732  
Casegoods Group
     2,099       (230 )     6,698       (243 )
Retail Group
     (3,035 )     (4,721 )     (15,078 )     (19,825 )
VIEs
     (1,107 )     312       (4,949 )     (751 )
Corporate and Other
     (8,357 )     (7,590 )     (28,547 )     (31,051 )
Restructuring
     (63 )     (621 )     (487 )     (3,434 )
Write-down of long-lived assets
     (4,471 )     —       (4,471 )     —  
Consolidated Operating Income (Loss)
   $ 12,229     $ 15,760     $ 25,909     $ 40,428  
 
 
 
 
 
LA-Z-BOY INCORPORATED
Unaudited Quarterly Financial Data

(Dollar amounts in thousands, except per share data)
  
(13 weeks)
    
(13 weeks)
    
(13 weeks)
    
(14 weeks)
  
Fiscal Quarter Ended
  
7/24/2010
    
10/23/2010
    
1/22/2011
    
4/30/2011
  
Sales
   $ 263,313     $ 292,982     $ 291,943     $ 338,905  
Cost of sales
                                
Cost of goods sold
     190,500       207,938       203,662       230,862  
Restructuring
     (21 )     (62 )     (65 )     (15 )
  Total cost of sales
     190,479       207,876       203,597       230,847  
     Gross profit
     72,834       85,106       88,346       108,058  
Selling, general and administrative
     74,320       79,657       78,057       91,280  
Restructuring
     165       110       297       78  
Write-down of long-lived assets
     —       —       —       4,471  
Operating income (loss)
     (1,651 )     5,339       9,992       12,229  
Interest expense
     590       592       561       603  
Interest income
     243       223       250       228  
Income from Continued Dumping and Subsidy Offset Act, net
     —       —       903       151  
Other income (expense), net
     351       (418 )     251       221  
Income (loss) before income taxes
     (1,647 )     4,552       10,835       12,226  
Income tax expense (benefit)
     (705 )     1,381       2,451       5,466  
Net income (loss)
     (942 )     3,171       8,384       6,760  
Net loss attributable to noncontrolling interests
     726       774       1,626       3,548  
   Net income (loss) attributable to La-Z-Boy Incorporated
   $ (216 )   $ 3,945     $ 10,010     $ 10,308  
                                 
Diluted weighted average shares
     51,785       52,214       52,270       52,359  
                                 
Diluted net income per share attributable to La-Z-Boy Incorporated
   $ —     $ 0.07     $ 0.19     $ 0.19  
 
 
 
 
 
LA-Z-BOY INCORPORATED
Unaudited Quarterly Financial Data

(Dollar amounts in thousands, except per share data)
  
(13 weeks)
    
(13 weeks)
    
(13 weeks)
    
(13 weeks)
  
Fiscal Quarter Ended
  
7/25/2009
    
10/24/2009
    
1/23/2010
    
4/24/2010
  
Sales
   $ 262,671     $ 300,707     $ 305,094     $ 310,740  
Cost of sales
                                
Cost of goods sold
     182,113       205,602       206,930       209,300  
Restructuring
     736       663       392       350  
  Total cost of sales
     182,849       206,265       207,322       209,650  
     Gross profit
     79,822       94,442       97,772       101,090  
Selling, general and administrative
     77,916       84,619       83,811       85,059  
Restructuring
     301       520       201       271  
Operating income
     1,605       9,303       13,760       15,760  
Interest expense
     980       831       577       584  
Interest income
     276       199       140       109  
Income from Continued Dumping and Subsidy Offset Act, net
     —       —       4,436       —  
Other income (expense), net
     601       236       (593 )     236  
Income before income taxes
     1,502       8,907       17,166       15,521  
Income tax expense (benefit)
     (3 )     3,529       6,502       1,709  
Net income
     1,505       5,378       10,664       13,812  
Net loss attributable to noncontrolling interests
     73       588       489       192  
Net income attributable to La-Z-Boy Incorporated
   $ 1,578     $ 5,966     $ 11,153     $ 14,004  
                                 
Diluted weighted average shares
     51,479       51,755       51,845       52,101  
                                 
Diluted net income per share attributable to La-Z-Boy Incorporated
   $ 0.04     $ 0.11     $ 0.21     $ 0.26  

 
 
 

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