Attached files
| file | filename |
|---|---|
| 8-K - 8-K - LA-Z-BOY INC | a15-4709_18k.htm |
| EX-99.1 - EX-99.1 - LA-Z-BOY INC | a15-4709_1ex99d1.htm |
Exhibit 99.2
LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF INCOME
|
|
|
Quarter Ended |
| ||||
|
(Unaudited, amounts in thousands, except per share data) |
|
1/24/15 |
|
1/25/14 |
| ||
|
Sales |
|
$ |
357,876 |
|
$ |
346,525 |
|
|
Cost of sales |
|
|
|
|
| ||
|
Cost of goods sold |
|
228,326 |
|
224,786 |
| ||
|
Restructuring |
|
(9 |
) |
(60 |
) | ||
|
Total cost of sales |
|
228,317 |
|
224,726 |
| ||
|
Gross profit |
|
129,559 |
|
121,799 |
| ||
|
Selling, general and administrative expense |
|
103,393 |
|
95,915 |
| ||
|
Restructuring |
|
(762 |
) |
— |
| ||
|
Operating income |
|
26,928 |
|
25,884 |
| ||
|
Interest expense |
|
131 |
|
142 |
| ||
|
Interest income |
|
232 |
|
183 |
| ||
|
Other income, net |
|
805 |
|
849 |
| ||
|
Income from continuing operations before income taxes |
|
27,834 |
|
26,774 |
| ||
|
Income tax expense |
|
9,477 |
|
8,916 |
| ||
|
Income from continuing operations |
|
18,357 |
|
17,858 |
| ||
|
Income (loss) from discontinued operations, net of tax |
|
115 |
|
(987 |
) | ||
|
Net income |
|
18,472 |
|
16,871 |
| ||
|
Net income attributable to noncontrolling interests |
|
(524 |
) |
(388 |
) | ||
|
Net income attributable to La-Z-Boy Incorporated |
|
$ |
17,948 |
|
$ |
16,483 |
|
|
|
|
|
|
|
| ||
|
Net income attributable to La-Z-Boy Incorporated: |
|
|
|
|
| ||
|
Income from continuing operations attributable to La-Z-Boy Incorporated |
|
$ |
17,833 |
|
$ |
17,470 |
|
|
Income (loss) from discontinued operations |
|
115 |
|
(987 |
) | ||
|
Net income attributable to La-Z-Boy Incorporated |
|
$ |
17,948 |
|
$ |
16,483 |
|
|
|
|
|
|
|
| ||
|
Basic weighted average common shares |
|
51,576 |
|
52,516 |
| ||
|
Basic net income attributable to La-Z-Boy Incorporated per share: |
|
|
|
|
| ||
|
Income from continuing operations attributable to La-Z-Boy Incorporated |
|
$ |
0.35 |
|
$ |
0.33 |
|
|
Income (loss) from discontinued operations |
|
— |
|
(0.02 |
) | ||
|
Basic net income attributable to La-Z-Boy Incorporated per share |
|
$ |
0.35 |
|
$ |
0.31 |
|
|
|
|
|
|
|
| ||
|
Diluted weighted average common shares |
|
52,139 |
|
53,226 |
| ||
|
Diluted net income attributable to La-Z-Boy Incorporated per share: |
|
|
|
|
| ||
|
Income from continuing operations attributable to La-Z-Boy Incorporated |
|
$ |
0.34 |
|
$ |
0.33 |
|
|
Income (loss) from discontinued operations |
|
— |
|
(0.02 |
) | ||
|
Diluted net income attributable to La-Z-Boy Incorporated per share |
|
$ |
0.34 |
|
$ |
0.31 |
|
|
|
|
|
|
|
| ||
|
Dividends declared per share |
|
$ |
0.08 |
|
$ |
0.06 |
|
LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF INCOME
|
|
|
Nine Months Ended |
| ||||
|
(Unaudited, amounts in thousands, except per share data) |
|
1/24/15 |
|
1/25/14 |
| ||
|
Sales |
|
$ |
1,050,457 |
|
$ |
1,004,298 |
|
|
Cost of sales |
|
|
|
|
| ||
|
Cost of goods sold |
|
679,873 |
|
658,462 |
| ||
|
Restructuring |
|
(376 |
) |
(115 |
) | ||
|
Total cost of sales |
|
679,497 |
|
658,347 |
| ||
|
Gross profit |
|
370,960 |
|
345,951 |
| ||
|
Selling, general and administrative expense |
|
298,091 |
|
279,184 |
| ||
|
Restructuring |
|
(742 |
) |
— |
| ||
|
Operating income |
|
73,611 |
|
66,767 |
| ||
|
Interest expense |
|
408 |
|
411 |
| ||
|
Interest income |
|
667 |
|
539 |
| ||
|
Other income, net |
|
699 |
|
1,107 |
| ||
|
Income from continuing operations before income taxes |
|
74,569 |
|
68,002 |
| ||
|
Income tax expense |
|
25,975 |
|
22,786 |
| ||
|
Income from continuing operations |
|
48,594 |
|
45,216 |
| ||
|
Income (loss) from discontinued operations, net of tax |
|
2,897 |
|
(1,393 |
) | ||
|
Net income |
|
51,491 |
|
43,823 |
| ||
|
Net income attributable to noncontrolling interests |
|
(933 |
) |
(1,006 |
) | ||
|
Net income attributable to La-Z-Boy Incorporated |
|
$ |
50,558 |
|
$ |
42,817 |
|
|
|
|
|
|
|
| ||
|
Net income attributable to La-Z-Boy Incorporated: |
|
|
|
|
| ||
|
Income from continuing operations attributable to La-Z-Boy Incorporated |
|
$ |
47,661 |
|
$ |
44,210 |
|
|
Income (loss) from discontinued operations |
|
2,897 |
|
(1,393 |
) | ||
|
Net income attributable to La-Z-Boy Incorporated |
|
$ |
50,558 |
|
$ |
42,817 |
|
|
|
|
|
|
|
| ||
|
Basic weighted average common shares |
|
52,015 |
|
52,465 |
| ||
|
Basic net income attributable to La-Z-Boy Incorporated per share: |
|
|
|
|
| ||
|
Income from continuing operations attributable to La-Z-Boy Incorporated |
|
$ |
0.91 |
|
$ |
0.84 |
|
|
Income (loss) from discontinued operations |
|
0.06 |
|
(0.03 |
) | ||
|
Basic net income attributable to La-Z-Boy Incorporated per share |
|
$ |
0.97 |
|
$ |
0.81 |
|
|
|
|
|
|
|
| ||
|
Diluted weighted average common shares |
|
52,540 |
|
53,379 |
| ||
|
Diluted net income attributable to La-Z-Boy Incorporated per share: |
|
|
|
|
| ||
|
Income from continuing operations attributable to La-Z-Boy Incorporated |
|
$ |
0.90 |
|
$ |
0.82 |
|
|
Income (loss) from discontinued operations |
|
0.06 |
|
(0.02 |
) | ||
|
Diluted net income attributable to La-Z-Boy Incorporated per share |
|
$ |
0.96 |
|
$ |
0.80 |
|
|
|
|
|
|
|
| ||
|
Dividends declared per share |
|
$ |
0.20 |
|
$ |
0.14 |
|
LA-Z-BOY INCORPORATED
CONSOLIDATED BALANCE SHEET
|
(Unaudited, amounts in thousands) |
|
1/24/15 |
|
4/26/14 |
| ||
|
Current assets |
|
|
|
|
| ||
|
Cash and equivalents |
|
$ |
98,410 |
|
$ |
149,661 |
|
|
Restricted cash |
|
9,637 |
|
12,572 |
| ||
|
Receivables, net of allowance of $10,336 at 1/24/15 and $12,368 at 4/26/14 |
|
149,090 |
|
152,614 |
| ||
|
Inventories, net |
|
160,133 |
|
147,009 |
| ||
|
Deferred income taxes — current |
|
15,782 |
|
15,037 |
| ||
|
Business held for sale |
|
— |
|
4,290 |
| ||
|
Other current assets |
|
42,017 |
|
41,490 |
| ||
|
Total current assets |
|
475,069 |
|
522,673 |
| ||
|
Property, plant and equipment, net |
|
170,880 |
|
127,535 |
| ||
|
Goodwill |
|
15,164 |
|
13,923 |
| ||
|
Other intangible assets |
|
5,094 |
|
4,544 |
| ||
|
Deferred income taxes — long-term |
|
35,077 |
|
32,430 |
| ||
|
Other long-term assets, net |
|
65,529 |
|
70,190 |
| ||
|
Total assets |
|
$ |
766,813 |
|
$ |
771,295 |
|
|
|
|
|
|
|
| ||
|
Current liabilities |
|
|
|
|
| ||
|
Current portion of long-term debt |
|
$ |
331 |
|
$ |
7,497 |
|
|
Accounts payable |
|
49,490 |
|
56,177 |
| ||
|
Business held for sale |
|
— |
|
832 |
| ||
|
Accrued expenses and other current liabilities |
|
103,250 |
|
102,876 |
| ||
|
Total current liabilities |
|
153,071 |
|
167,382 |
| ||
|
Long-term debt |
|
51 |
|
277 |
| ||
|
Other long-term liabilities |
|
82,732 |
|
73,918 |
| ||
|
Contingencies and commitments |
|
— |
|
— |
| ||
|
Shareholders’ equity |
|
|
|
|
| ||
|
Preferred shares — 5,000 authorized; none issued |
|
— |
|
— |
| ||
|
Common shares, $1 par value — 150,000 authorized; 51,266 outstanding at 1/24/15 and 51,981 outstanding at 4/26/14 |
|
51,266 |
|
51,981 |
| ||
|
Capital in excess of par value |
|
267,988 |
|
262,901 |
| ||
|
Retained earnings |
|
234,069 |
|
238,384 |
| ||
|
Accumulated other comprehensive loss |
|
(31,057 |
) |
(31,380 |
) | ||
|
Total La-Z-Boy Incorporated shareholders’ equity |
|
522,266 |
|
521,886 |
| ||
|
Noncontrolling interests |
|
8,693 |
|
7,832 |
| ||
|
Total equity |
|
530,959 |
|
529,718 |
| ||
|
Total liabilities and equity |
|
$ |
766,813 |
|
$ |
771,295 |
|
LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF CASH FLOWS
|
|
|
Nine Months Ended |
| ||||
|
(Unaudited, amounts in thousands) |
|
1/24/15 |
|
1/25/14 |
| ||
|
Cash flows from operating activities |
|
|
|
|
| ||
|
Net income |
|
$ |
51,491 |
|
$ |
43,823 |
|
|
Adjustments to reconcile net income to cash provided by (used for) operating activities |
|
|
|
|
| ||
|
Restructuring |
|
(1,106 |
) |
(115 |
) | ||
|
Impairment of business held for sale |
|
— |
|
1,149 |
| ||
|
Deferred income tax benefit |
|
(3,987 |
) |
(2,929 |
) | ||
|
Provision for doubtful accounts |
|
(2,060 |
) |
(2,494 |
) | ||
|
Depreciation and amortization |
|
16,297 |
|
17,529 |
| ||
|
Equity-based compensation expense |
|
6,094 |
|
7,371 |
| ||
|
Change in receivables |
|
7,011 |
|
4,865 |
| ||
|
Change in inventories |
|
(11,913 |
) |
(15,166 |
) | ||
|
Change in other assets |
|
5,794 |
|
2,698 |
| ||
|
Change in payables |
|
(7,659 |
) |
2,865 |
| ||
|
Change in other liabilities |
|
(4,898 |
) |
3,193 |
| ||
|
Net cash provided by operating activities |
|
55,064 |
|
62,789 |
| ||
|
|
|
|
|
|
| ||
|
Cash flows from investing activities |
|
|
|
|
| ||
|
Proceeds from disposal of assets |
|
8,940 |
|
2,248 |
| ||
|
Capital expenditures |
|
(56,512 |
) |
(23,078 |
) | ||
|
Purchases of investments |
|
(30,544 |
) |
(40,796 |
) | ||
|
Proceeds from sales of investments |
|
23,987 |
|
27,974 |
| ||
|
Acquisitions, net of cash acquired |
|
(1,774 |
) |
(801 |
) | ||
|
Change in restricted cash |
|
2,935 |
|
120 |
| ||
|
Net cash used for investing activities |
|
(52,968 |
) |
(34,333 |
) | ||
|
|
|
|
|
|
| ||
|
Cash flows from financing activities |
|
|
|
|
| ||
|
Payments on debt |
|
(7,413 |
) |
(434 |
) | ||
|
Payments for debt issuance costs |
|
(164 |
) |
— |
| ||
|
Stock issued for stock and employee benefit plans |
|
496 |
|
3,526 |
| ||
|
Excess tax benefit on stock option exercises |
|
234 |
|
5,805 |
| ||
|
Purchases of common stock |
|
(35,752 |
) |
(20,276 |
) | ||
|
Dividends paid |
|
(10,416 |
) |
(7,375 |
) | ||
|
Net cash used for financing activities |
|
(53,015 |
) |
(18,754 |
) | ||
|
|
|
|
|
|
| ||
|
Effect of exchange rate changes on cash and equivalents |
|
(332 |
) |
(675 |
) | ||
|
Change in cash and equivalents |
|
(51,251 |
) |
9,027 |
| ||
|
Cash and equivalents at beginning of period |
|
149,661 |
|
131,085 |
| ||
|
Cash and equivalents at end of period |
|
$ |
98,410 |
|
$ |
140,112 |
|
|
|
|
|
|
|
| ||
|
Supplemental disclosure of non-cash investing activities |
|
|
|
|
| ||
|
Capital expenditures included in payables |
|
$ |
6,275 |
|
$ |
2,183 |
|
LA-Z-BOY INCORPORATED
SEGMENT INFORMATION
|
|
|
Quarter Ended |
|
Nine Months Ended |
| ||||||||
|
(Unaudited, amounts in thousands) |
|
1/24/15 |
|
1/25/14 |
|
1/24/15 |
|
1/25/14 |
| ||||
|
Sales |
|
|
|
|
|
|
|
|
| ||||
|
Upholstery segment: |
|
|
|
|
|
|
|
|
| ||||
|
Sales to external customers |
|
$ |
243,390 |
|
$ |
242,492 |
|
$ |
725,590 |
|
$ |
710,162 |
|
|
Intersegment sales |
|
42,946 |
|
37,780 |
|
120,872 |
|
103,183 |
| ||||
|
Upholstery segment sales |
|
286,336 |
|
280,272 |
|
846,462 |
|
813,345 |
| ||||
|
Casegoods segment: |
|
|
|
|
|
|
|
|
| ||||
|
Sales to external customers |
|
24,134 |
|
23,417 |
|
75,542 |
|
72,339 |
| ||||
|
Intersegment sales |
|
1,866 |
|
2,337 |
|
8,269 |
|
7,171 |
| ||||
|
Casegoods segment sales |
|
26,000 |
|
25,754 |
|
83,811 |
|
79,510 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Retail segment sales |
|
89,791 |
|
80,212 |
|
247,285 |
|
219,845 |
| ||||
|
Corporate and Other |
|
561 |
|
404 |
|
2,040 |
|
1,952 |
| ||||
|
Eliminations |
|
(44,812 |
) |
(40,117 |
) |
(129,141 |
) |
(110,354 |
) | ||||
|
Consolidated sales |
|
$ |
357,876 |
|
$ |
346,525 |
|
$ |
1,050,457 |
|
$ |
1,004,298 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Operating Income (Loss) |
|
|
|
|
|
|
|
|
| ||||
|
Upholstery segment |
|
$ |
31,479 |
|
$ |
31,560 |
|
$ |
86,103 |
|
$ |
86,547 |
|
|
Casegoods segment |
|
860 |
|
394 |
|
5,380 |
|
2,014 |
| ||||
|
Retail segment |
|
4,202 |
|
3,087 |
|
8,199 |
|
8,264 |
| ||||
|
Restructuring |
|
771 |
|
60 |
|
1,118 |
|
115 |
| ||||
|
Corporate and Other |
|
(10,384 |
) |
(9,217 |
) |
(27,189 |
) |
(30,173 |
) | ||||
|
Consolidated operating income |
|
$ |
26,928 |
|
$ |
25,884 |
|
$ |
73,611 |
|
$ |
66,767 |
|