Quarter Ended

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

1/27/18

1/28/17

Sales

$

413,638

$

389,992

Cost of sales

251,140

233,185

Gross profit

162,498

156,807

Selling, general and administrative expense

129,403

123,235

Operating income

33,095

33,572

Interest expense

113

562

Interest income

444

241

Income from Continued Dumping and Subsidy Offset Act, net

—

273

Other income (expense), net

(1,094

)

(52

)

Income before income taxes

32,332

33,472

Income tax expense

20,047

9,830

Net income

12,285

23,642

Net income attributable to noncontrolling interests

(176

)

(356

)

Net income attributable to La-Z-Boy Incorporated

$

12,109

$

23,286

Basic weighted average common shares

47,234

48,914

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

$

0.26

$

0.47

Diluted weighted average common shares

47,757

49,384

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

$

0.25

$

0.47

Dividends declared per share

$

0.12

$

0.11

Nine Months Ended

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

1/27/18

1/28/17

Sales

$

1,163,922

$

1,107,354

Cost of sales

707,369

666,942

Gross profit

456,553

440,412

Selling, general and administrative expense

372,891

350,524

Operating income

83,662

89,888

Interest expense

430

794

Interest income

1,163

679

Income from Continued Dumping and Subsidy Offset Act, net

—

273

Gain on conversion of investment

2,204

—

Other income (expense), net

(2,475

)

(1,783

)

Income before income taxes

84,124

88,263

Income tax expense

36,889

29,508

Net income

47,235

58,755

Net income attributable to noncontrolling interests

(579

)

(830

)

Net income attributable to La-Z-Boy Incorporated

$

46,656

$

57,925

Basic weighted average common shares

47,852

49,057

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

$

0.97

$

1.17

Diluted weighted average common shares

48,325

49,532

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

$

0.96

$

1.16

Dividends declared per share

$

0.34

$

0.31

(Unaudited, amounts in thousands, except par value)

1/27/18

4/29/17

Current assets

Cash and equivalents

$

135,266

$

141,860

Restricted cash

2,354

8,999

Receivables, net of allowance of $2,665 at 1/27/18 and $2,563 at 4/29/17

146,498

150,846

Inventories, net

186,319

175,114

Other current assets

43,242

40,603

Total current assets

513,679

517,422

Property, plant and equipment, net

174,877

169,132

Goodwill

75,765

74,245

Other intangible assets, net

18,510

18,489

Deferred income taxes — long-term

28,823

40,131

Other long-term assets, net

81,848

69,436

Total assets

$

893,502

$

888,855

Current liabilities

Current portion of long-term debt

$

231

$

219

Accounts payable

66,672

51,282

Accrued expenses and other current liabilities

131,166

147,175

Total current liabilities

198,069

198,676

Long-term debt

249

296

Other long-term liabilities

92,346

88,778

Contingencies and commitments

Shareholders’ equity

Preferred shares — 5,000 authorized; none issued

—

—

Common shares, $1 par value — 150,000 authorized; 47,068 outstanding at 1/27/18 and 48,472 outstanding at 4/29/17

47,068

48,472

Capital in excess of par value

297,408

289,632

Retained earnings

271,912

284,698

Accumulated other comprehensive loss

(26,509

)

(32,883

)

Total La-Z-Boy Incorporated shareholders’ equity

589,879

589,919

Noncontrolling interests

12,959

11,186

Total equity

602,838

601,105

Total liabilities and equity

$

893,502

$

888,855

Nine Months Ended

(Unaudited, amounts in thousands)

1/27/18

1/28/17

Cash flows from operating activities

Net income

$

47,235

$

58,755

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

Gain on disposal of assets

(1,849

)

(103

)

Gain on conversion of investment

(2,204

)

—

Deferred income tax expense

10,543

3,214

Provision for doubtful accounts

198

(64

)

Depreciation and amortization

23,671

21,311

Equity-based compensation expense

7,929

7,571

Pension plan contributions

(2,000

)

(2,300

)

Change in receivables

5,057

(576

)

Change in inventories

(9,142

)

(5,929

)

Change in other assets

(3,304

)

(4,415

)

Change in payables

12,529

6,359

Change in other liabilities

2,537

9,191

Net cash provided by operating activities

91,200

93,014

Cash flows from investing activities

Proceeds from disposals of assets

620

273

Proceeds from property insurance

1,807

—

Capital expenditures

(24,138

)

(15,529

)

Purchases of investments

(24,124

)

(20,778

)

Proceeds from sales of investments

17,109

13,899

Acquisitions, net of cash acquired

(16,495

)

(35,878

)

Net cash used for investing activities

(45,221

)

(58,013

)

Cash flows from financing activities

Payments on debt

(203

)

(217

)

Payments for debt issuance costs

(220

)

—

Stock issued for stock and employee benefit plans, net of shares withheld for taxes

1,418

1,739

Excess tax benefit on stock option exercises

—

1,924

Purchases of common stock

(46,074

)

(25,062

)

Dividends paid

(16,343

)

(15,270

)

Net cash used for financing activities

(61,422

)

(36,886

)

Effect of exchange rate changes on cash and equivalents

2,204

(139

)

Change in cash, cash equivalents and restricted cash

(13,239

)

(2,024

)

Cash, cash equivalents and restricted cash at beginning of period

150,859

121,335

Cash, cash equivalents and restricted cash at end of period

$

137,620

$

119,311

Supplemental disclosure of non-cash investing activities

Capital expenditures included in payables

$

3,926

$

1,012

Quarter Ended

Nine Months Ended

(Unaudited, amounts in thousands)

1/27/18

1/28/17

1/27/18

1/28/17

Sales

Upholstery segment:

Sales to external customers

$

262,874

$

246,650

$

739,429

$

715,357

Intersegment sales

58,084

56,273

160,697

150,771

Upholstery segment sales

320,958

302,923

900,126

866,128

Casegoods segment:

Sales to external customers

23,887

20,499

68,821

64,651

Intersegment sales

3,328

2,760

11,969

9,534

Casegoods segment sales

27,215

23,259

80,790

74,185

Retail segment sales

125,815

122,121

353,068

325,206

Corporate and Other:

Sales to external customers

1,062

722

2,604

2,140

Intersegment sales

2,818

1,978

6,839

4,751

Corporate and Other sales

3,880

2,700

9,443

6,891

Eliminations

(64,230

)

(61,011

)

(179,505

)

(165,056

)

Consolidated sales

$

413,638

$

389,992

$

1,163,922

$

1,107,354

Operating Income (Loss)

Upholstery segment

$

31,699

$

35,669

$

88,422

$

104,388

Casegoods segment

2,792

1,593

8,833

6,587

Retail segment

7,076

6,325

12,746

11,515

Corporate and Other

(8,472

)

(10,015

)

(26,339

)

(32,602

)

Consolidated operating income

$

33,095

$

33,572

$

83,662

$

89,888