Quarter Ended

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

7/26/14

7/27/13

Sales

$

326,980

$

305,502

Cost of sales

Cost of goods sold

215,831

203,949

Restructuring

(357

)

87

Total cost of sales

215,474

204,036

Gross profit

111,506

101,466

Selling, general and administrative expense

95,015

86,701

Operating income

16,491

14,765

Interest expense

132

136

Interest income

202

180

Other income (expense), net

(258

)

537

Income from continuing operations before income taxes

16,303

15,346

Income tax expense

5,755

5,445

Income from continuing operations

10,548

9,901

Income from discontinued operations, net of tax

2,497

34

Net income

13,045

9,935

Net (income) loss attributable to noncontrolling interests

36

(345

)

Net income attributable to La-Z-Boy Incorporated

$

13,081

$

9,590

Net income attributable to La-Z-Boy Incorporated:

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

$

10,584

$

9,556

Income from discontinued operations

2,497

34

Net income attributable to La-Z-Boy Incorporated

$

13,081

$

9,590

Basic average shares

52,191

52,343

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

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

$

0.20

$

0.18

Income from discontinued operations

0.05

—

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

$

0.25

$

0.18

Diluted average shares

52,627

53,051

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

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

$

0.20

$

0.18

Income from discontinued operations

0.05

—

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

$

0.25

$

0.18

Dividends declared per share

$

0.06

$

0.04

(Unaudited, amounts in thousands)

7/26/14

4/26/14

Current assets

Cash and equivalents

$

116,309

$

149,661

Restricted cash

5,283

12,572

Receivables, net of allowance of $11,692 at 7/26/14 and $12,368 at 4/26/14

139,760

152,614

Inventories, net

161,318

147,009

Deferred income taxes — current

15,557

15,037

Business held for sale

3,188

4,290

Other current assets

42,372

41,490

Total current assets

483,787

522,673

Property, plant and equipment, net

144,815

127,535

Goodwill

13,923

13,923

Other intangible assets

4,544

4,544

Deferred income taxes — long-term

32,790

32,430

Other long-term assets, net

75,266

70,190

Total assets

$

755,125

$

771,295

Current liabilities

Current portion of long-term debt

$

376

$

7,497

Accounts payable

58,354

56,177

Business held for sale

730

832

Accrued expenses and other current liabilities

92,246

102,876

Total current liabilities

151,706

167,382

Long-term debt

207

277

Other long-term liabilities

76,119

73,918

Contingencies and commitments

—

—

Shareholders’ equity

Preferred shares — 5,000 authorized; none issued

—

—

Common shares, $1 par value — 150,000 authorized; 52,529 outstanding at 7/26/14 and 51,981 outstanding at 4/26/14

52,529

51,981

Capital in excess of par value

264,919

262,901

Retained earnings

231,951

238,384

Accumulated other comprehensive loss

(30,215

)

(31,380

)

Total La-Z-Boy Incorporated shareholders’ equity

519,184

521,886

Noncontrolling interests

7,909

7,832

Total equity

527,093

529,718

Total liabilities and equity

$

755,125

$

771,295

Quarter Ended

(Unaudited, amounts in thousands)

7/26/14

7/27/13

Cash flows from operating activities

Net income

$

13,045

$

9,935

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

Restructuring

(347

)

87

Deferred income tax expense (benefit)

(1,342

)

700

Provision for doubtful accounts

(618

)

(1,245

)

Depreciation and amortization

5,379

5,847

Equity-based compensation expense

3,010

3,193

Change in receivables

12,441

21,812

Change in inventories

(15,874

)

(11,688

)

Change in other assets

2,985

(1,193

)

Change in payables

(255

)

1,907

Change in other liabilities

(19,646

)

(16,335

)

Net cash provided by (used for) operating activities

(1,222

)

13,020

Cash flows from investing activities

Proceeds from disposal of assets

1,348

2,078

Capital expenditures

(19,406

)

(3,216

)

Purchases of investments

(15,941

)

(6,432

)

Proceeds from sales of investments

10,422

8,558

Change in restricted cash

7,289

(6

)

Net cash provided by (used for) investing activities

(16,288

)

982

Cash flows from financing activities

Payments on debt

(7,212

)

(132

)

Stock issued for stock and employee benefit plans

131

763

Excess tax benefit on stock option exercises

249

3,277

Purchases of common stock

(6,062

)

(7,071

)

Dividends paid

(3,119

)

(2,110

)

Net cash used for financing activities

(16,013

)

(5,273

)

Effect of exchange rate changes on cash and equivalents

171

(314

)

Change in cash and equivalents

(33,352

)

8,415

Cash and equivalents at beginning of period

149,661

131,085

Cash and equivalents at end of period

$

116,309

$

139,500

Supplemental disclosure of non-cash investing activities

Capital expenditures included in payables

$

8,024

$

—

Quarter Ended

(Unaudited, amounts in thousands)

7/26/14

7/27/13

Sales

Upholstery segment:

Sales to external customers

$

227,156

$

215,547

Intersegment sales

35,703

30,522

Upholstery segment sales

262,859

246,069

Casegoods segment:

Sales to external customers

25,953

22,670

Intersegment sales

2,970

2,129

Casegoods segment sales

28,923

24,799

Retail segment sales

72,905

66,274

Corporate and Other

966

1,011

Eliminations

(38,673

)

(32,651

)

Consolidated sales

$

326,980

$

305,502

Operating Income (Loss)

Upholstery segment

$

22,017

$

22,286

Casegoods segment

1,525

450

Retail segment

315

1,926

Restructuring

357

(87

)

Corporate and Other

(7,723

)

(9,810

)

Consolidated operating income

$

16,491

$

14,765