Attached files
| file | filename |
|---|---|
| EX-99.1 - EX-99.1 - LA-Z-BOY INC | a17-20833_1ex99d1.htm |
| 8-K - 8-K - LA-Z-BOY INC | a17-20833_18k.htm |
Exhibit 99.2
LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF INCOME
|
|
|
Quarter Ended |
| ||||
|
(Unaudited, amounts in thousands, except per share data) |
|
7/29/17 |
|
7/30/16 |
| ||
|
Sales |
|
$ |
357,079 |
|
$ |
340,783 |
|
|
Cost of sales |
|
217,976 |
|
206,562 |
| ||
|
Gross profit |
|
139,103 |
|
134,221 |
| ||
|
Selling, general and administrative expense |
|
122,805 |
|
111,763 |
| ||
|
Operating income |
|
16,298 |
|
22,458 |
| ||
|
Interest expense |
|
157 |
|
115 |
| ||
|
Interest income |
|
343 |
|
204 |
| ||
|
Other income (expense), net |
|
1,749 |
|
(762 |
) | ||
|
Income before income taxes |
|
18,233 |
|
21,785 |
| ||
|
Income tax expense |
|
6,489 |
|
7,777 |
| ||
|
Net income |
|
11,744 |
|
14,008 |
| ||
|
Net income attributable to noncontrolling interests |
|
(93 |
) |
(202 |
) | ||
|
Net income attributable to La-Z-Boy Incorporated |
|
$ |
11,651 |
|
$ |
13,806 |
|
|
|
|
|
|
|
| ||
|
Basic weighted average common shares |
|
48,357 |
|
49,105 |
| ||
|
Basic net income attributable to La-Z-Boy Incorporated per share |
|
$ |
0.24 |
|
$ |
0.28 |
|
|
|
|
|
|
|
| ||
|
Diluted weighted average common shares |
|
48,846 |
|
49,594 |
| ||
|
Diluted net income attributable to La-Z-Boy Incorporated per share |
|
$ |
0.24 |
|
$ |
0.28 |
|
|
|
|
|
|
|
| ||
|
Dividends declared per share |
|
$ |
0.11 |
|
$ |
0.10 |
|
LA-Z-BOY INCORPORATED
CONSOLIDATED BALANCE SHEET
|
(Unaudited, amounts in thousands, except par value) |
|
7/29/17 |
|
4/29/17 |
| ||
|
Current assets |
|
|
|
|
| ||
|
Cash and equivalents |
|
$ |
119,628 |
|
$ |
141,860 |
|
|
Restricted cash |
|
5,963 |
|
8,999 |
| ||
|
Receivables, net of allowance of $2,557 at 7/29/17 and $2,563 at 4/29/17 |
|
134,904 |
|
150,846 |
| ||
|
Inventories, net |
|
178,508 |
|
175,114 |
| ||
|
Other current assets |
|
49,882 |
|
40,603 |
| ||
|
Total current assets |
|
488,885 |
|
517,422 |
| ||
|
Property, plant and equipment, net |
|
171,078 |
|
169,132 |
| ||
|
Goodwill |
|
74,766 |
|
74,245 |
| ||
|
Other intangible assets, net |
|
18,438 |
|
18,489 |
| ||
|
Deferred income taxes — long-term |
|
38,372 |
|
40,131 |
| ||
|
Other long-term assets, net |
|
76,982 |
|
69,436 |
| ||
|
Total assets |
|
$ |
868,521 |
|
$ |
888,855 |
|
|
|
|
|
|
|
| ||
|
Current liabilities |
|
|
|
|
| ||
|
Current portion of long-term debt |
|
$ |
206 |
|
$ |
219 |
|
|
Accounts payable |
|
47,352 |
|
51,282 |
| ||
|
Accrued expenses and other current liabilities |
|
126,948 |
|
147,175 |
| ||
|
Total current liabilities |
|
174,506 |
|
198,676 |
| ||
|
Long-term debt |
|
242 |
|
296 |
| ||
|
Other long-term liabilities |
|
90,777 |
|
88,778 |
| ||
|
Contingencies and commitments |
|
— |
|
— |
| ||
|
Shareholders’ equity |
|
|
|
|
| ||
|
Preferred shares — 5,000 authorized; none issued |
|
— |
|
— |
| ||
|
Common shares, $1 par value — 150,000 authorized; 48,268 outstanding at 7/29/17 and 48,472 outstanding at 4/29/17 |
|
48,268 |
|
48,472 |
| ||
|
Capital in excess of par value |
|
293,041 |
|
289,632 |
| ||
|
Retained earnings |
|
280,251 |
|
284,698 |
| ||
|
Accumulated other comprehensive loss |
|
(30,248 |
) |
(32,883 |
) | ||
|
Total La-Z-Boy Incorporated shareholders’ equity |
|
591,312 |
|
589,919 |
| ||
|
Noncontrolling interests |
|
11,684 |
|
11,186 |
| ||
|
Total equity |
|
602,996 |
|
601,105 |
| ||
|
Total liabilities and equity |
|
$ |
868,521 |
|
$ |
888,855 |
|
LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF CASH FLOWS
|
|
|
Quarter Ended |
| ||||
|
(Unaudited, amounts in thousands) |
|
7/29/17 |
|
7/30/16 |
| ||
|
Cash flows from operating activities |
|
|
|
|
| ||
|
Net income |
|
$ |
11,744 |
|
$ |
14,008 |
|
|
Adjustments to reconcile net income to cash provided by (used for) operating activities |
|
|
|
|
| ||
|
Deferred income tax expense |
|
1,344 |
|
(1,076 |
) | ||
|
Provision for doubtful accounts |
|
(22 |
) |
(77 |
) | ||
|
Depreciation and amortization |
|
7,758 |
|
6,800 |
| ||
|
Equity-based compensation expense |
|
3,558 |
|
3,329 |
| ||
|
Change in receivables |
|
15,753 |
|
17,664 |
| ||
|
Change in inventories |
|
(2,477 |
) |
510 |
| ||
|
Change in other assets |
|
(10,837 |
) |
(1,467 |
) | ||
|
Change in payables |
|
(3,974 |
) |
403 |
| ||
|
Change in other liabilities |
|
(3,339 |
) |
(4,341 |
) | ||
|
Net cash provided by operating activities |
|
19,508 |
|
35,753 |
| ||
|
|
|
|
|
|
| ||
|
Cash flows from investing activities |
|
|
|
|
| ||
|
Proceeds from disposals of assets |
|
459 |
|
35 |
| ||
|
Proceeds from property insurance |
|
450 |
|
— |
| ||
|
Capital expenditures |
|
(9,146 |
) |
(5,209 |
) | ||
|
Purchases of investments |
|
(10,851 |
) |
(7,695 |
) | ||
|
Proceeds from sales of investments |
|
5,857 |
|
3,670 |
| ||
|
Acquisitions, net of cash acquired |
|
(15,879 |
) |
(5,281 |
) | ||
|
Net cash used for investing activities |
|
(29,110 |
) |
(14,480 |
) | ||
|
|
|
|
|
|
| ||
|
Cash flows from financing activities |
|
|
|
|
| ||
|
Payments on debt |
|
(66 |
) |
(89 |
) | ||
|
Stock issued for stock and employee benefit plans, net of shares withheld for taxes |
|
377 |
|
860 |
| ||
|
Excess tax benefit on stock option exercises |
|
— |
|
1,137 |
| ||
|
Purchases of common stock |
|
(11,491 |
) |
(13,567 |
) | ||
|
Dividends paid |
|
(5,337 |
) |
(4,923 |
) | ||
|
Net cash used for financing activities |
|
(16,517 |
) |
(16,582 |
) | ||
|
|
|
|
|
|
| ||
|
Effect of exchange rate changes on cash and equivalents |
|
851 |
|
116 |
| ||
|
Change in cash, cash equivalents and restricted cash |
|
(25,268 |
) |
4,807 |
| ||
|
Cash, cash equivalents and restricted cash at beginning of period |
|
150,859 |
|
121,335 |
| ||
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
125,591 |
|
$ |
126,142 |
|
|
|
|
|
|
|
| ||
|
Supplemental disclosure of non-cash investing activities |
|
|
|
|
| ||
|
Capital expenditures included in payables |
|
$ |
1,671 |
|
$ |
— |
|
LA-Z-BOY INCORPORATED
SEGMENT INFORMATION
|
|
|
Quarter Ended |
| ||||
|
(Unaudited, amounts in thousands) |
|
7/29/17 |
|
7/30/16 |
| ||
|
Sales |
|
|
|
|
| ||
|
Upholstery segment: |
|
|
|
|
| ||
|
Sales to external customers |
|
$ |
224,814 |
|
$ |
223,809 |
|
|
Intersegment sales |
|
49,593 |
|
43,607 |
| ||
|
Upholstery segment sales |
|
274,407 |
|
267,416 |
| ||
|
|
|
|
|
|
| ||
|
Casegoods segment: |
|
|
|
|
| ||
|
Sales to external customers |
|
21,019 |
|
20,585 |
| ||
|
Intersegment sales |
|
4,491 |
|
4,453 |
| ||
|
Casegoods segment sales |
|
25,510 |
|
25,038 |
| ||
|
|
|
|
|
|
| ||
|
Retail segment sales |
|
110,516 |
|
95,720 |
| ||
|
|
|
|
|
|
| ||
|
Corporate and Other: |
|
|
|
|
| ||
|
Sales to external customers |
|
730 |
|
669 |
| ||
|
Intersegment sales |
|
1,930 |
|
1,210 |
| ||
|
Corporate and Other sales |
|
2,660 |
|
1,879 |
| ||
|
|
|
|
|
|
| ||
|
Eliminations |
|
(56,014 |
) |
(49,270 |
) | ||
|
Consolidated sales |
|
$ |
357,079 |
|
$ |
340,783 |
|
|
|
|
|
|
|
| ||
|
Operating Income (Loss) |
|
|
|
|
| ||
|
Upholstery segment |
|
$ |
23,299 |
|
$ |
30,499 |
|
|
Casegoods segment |
|
2,739 |
|
2,147 |
| ||
|
Retail segment |
|
1,767 |
|
2,183 |
| ||
|
Corporate and Other |
|
(11,507 |
) |
(12,371 |
) | ||
|
Consolidated operating income |
|
$ |
16,298 |
|
$ |
22,458 |
|
LA-Z-BOY INCORPORATED
UNAUDITED FISCAL 2017 QUARTERLY FINANCIAL DATA (AS ADJUSTED)
In the first quarter of fiscal 2018, we early adopted the provisions of ASU 2017-07, which reclassified certain pension costs out of cost of sales and into other income (expense), net. This change required retrospective application to the prior year. To aid in the understanding of our financial results, the table below presents our fiscal 2017 quarterly financial results, as adjusted to conform to current year presentation.
|
(Unaudited, amounts in thousands, except per share data) |
|
7/30/16 |
|
10/29/16 |
|
1/28/17 |
|
4/29/17 |
| ||||
|
Sales |
|
$ |
340,783 |
|
$ |
376,579 |
|
$ |
389,992 |
|
$ |
412,706 |
|
|
Cost of sales |
|
206,562 |
|
227,195 |
|
233,185 |
|
243,815 |
| ||||
|
Gross profit |
|
134,221 |
|
149,384 |
|
156,807 |
|
168,891 |
| ||||
|
Selling, general and administrative expense |
|
111,763 |
|
115,526 |
|
123,235 |
|
125,437 |
| ||||
|
Operating income |
|
22,458 |
|
33,858 |
|
33,572 |
|
43,454 |
| ||||
|
Interest expense |
|
115 |
|
117 |
|
562 |
|
279 |
| ||||
|
Interest income |
|
204 |
|
234 |
|
241 |
|
302 |
| ||||
|
Income from Continued Dumping and Subsidy Offset Act, net |
|
— |
|
— |
|
273 |
|
— |
| ||||
|
Other income (expense), net |
|
(762 |
) |
(969 |
) |
(52 |
) |
(1,000 |
) | ||||
|
Income before income taxes |
|
21,785 |
|
33,006 |
|
33,472 |
|
42,477 |
| ||||
|
Income tax expense |
|
7,777 |
|
11,901 |
|
9,830 |
|
14,248 |
| ||||
|
Net income |
|
14,008 |
|
21,105 |
|
23,642 |
|
28,229 |
| ||||
|
Net income attributable to noncontrolling interests |
|
(202 |
) |
(272 |
) |
(356 |
) |
(232 |
) | ||||
|
Net income attributable to La-Z-Boy Incorporated |
|
$ |
13,806 |
|
$ |
20,833 |
|
$ |
23,286 |
|
$ |
27,997 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Diluted weighted average common shares |
|
49,594 |
|
49,511 |
|
49,384 |
|
49,181 |
| ||||
|
Diluted net income attributable to La-Z-Boy Incorporated per share |
|
$ |
0.28 |
|
$ |
0.42 |
|
$ |
0.47 |
|
$ |
0.57 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Dividends declared per share |
|
$ |
0.10 |
|
$ |
0.10 |
|
$ |
0.11 |
|
$ |
0.11 |
|