EX-99.2 3 a16-17354_1ex99d2.htm EX-99.2

Exhibit 99.2

 

LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF INCOME

 

 

 

Quarter Ended

 

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

 

7/30/16

 

7/25/15

 

Sales

 

$

340,783

 

$

341,423

 

Cost of sales

 

207,252

 

217,191

 

Gross profit

 

133,531

 

124,232

 

Selling, general and administrative expense

 

111,763

 

104,266

 

Operating income

 

21,768

 

19,966

 

Interest expense

 

115

 

112

 

Interest income

 

204

 

205

 

Other income (expense), net

 

(72

)

1,968

 

Income before income taxes

 

21,785

 

22,027

 

Income tax expense

 

7,777

 

7,904

 

Net income

 

14,008

 

14,123

 

Net income attributable to noncontrolling interests

 

(202

)

(447

)

Net income attributable to La-Z-Boy Incorporated

 

$

13,806

 

$

13,676

 

 

 

 

 

 

 

Basic weighted average common shares

 

49,105

 

50,583

 

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

 

$

0.28

 

$

0.27

 

 

 

 

 

 

 

Diluted weighted average common shares

 

49,594

 

51,043

 

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

 

$

0.28

 

$

0.27

 

 

 

 

 

 

 

Dividends declared per share

 

$

0.10

 

$

0.08

 

 



 

LA-Z-BOY INCORPORATED

CONSOLIDATED BALANCE SHEET

 

(Unaudited, amounts in thousands, except par value)

 

7/30/16

 

4/30/16

 

Current assets

 

 

 

 

 

Cash and equivalents

 

$

117,159

 

$

112,358

 

Restricted cash

 

8,983

 

8,977

 

Receivables, net of allowance of $3,070 at 7/30/16 and $3,145 at 4/30/16

 

128,959

 

146,545

 

Inventories, net

 

176,190

 

175,589

 

Other current assets

 

39,082

 

38,503

 

Total current assets

 

470,373

 

481,972

 

Property, plant and equipment, net

 

170,835

 

171,590

 

Goodwill

 

41,152

 

37,193

 

Other intangible assets

 

9,008

 

8,558

 

Deferred income taxes — long-term

 

42,612

 

41,683

 

Other long-term assets, net

 

64,089

 

59,033

 

Total assets

 

$

798,069

 

$

800,029

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

Current portion of long-term debt

 

$

266

 

$

290

 

Accounts payable

 

45,064

 

44,661

 

Accrued expenses and other current liabilities

 

106,513

 

112,476

 

Total current liabilities

 

151,843

 

157,427

 

Long-term debt

 

448

 

513

 

Other long-term liabilities

 

87,550

 

84,877

 

Contingencies and commitments

 

 

 

Shareholders’ equity

 

 

 

 

 

Preferred shares — 5,000 authorized; none issued

 

 

 

Common shares, $1 par value — 150,000 authorized; 49,169 outstanding at 7/30/16 and 49,331 outstanding at 4/30/16

 

49,169

 

49,331

 

Capital in excess of par value

 

283,980

 

279,339

 

Retained earnings

 

248,636

 

252,472

 

Accumulated other comprehensive loss

 

(33,801

)

(34,000

)

Total La-Z-Boy Incorporated shareholders’ equity

 

547,984

 

547,142

 

Noncontrolling interests

 

10,244

 

10,070

 

Total equity

 

558,228

 

557,212

 

Total liabilities and equity

 

$

798,069

 

$

800,029

 

 



 

LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF CASH FLOWS

 

 

 

Quarter Ended

 

(Unaudited, amounts in thousands)

 

7/30/16

 

7/25/15

 

Cash flows from operating activities

 

 

 

 

 

Net income

 

$

14,008

 

$

14,123

 

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

 

 

 

 

 

Deferred income tax expense

 

(1,076

)

148

 

Provision for doubtful accounts

 

(77

)

(340

)

Depreciation and amortization

 

6,800

 

6,271

 

Equity-based compensation expense

 

3,329

 

3,012

 

Change in receivables

 

17,664

 

24,610

 

Change in inventories

 

510

 

(22,159

)

Change in other assets

 

(1,467

)

(6,933

)

Change in payables

 

403

 

2,021

 

Change in other liabilities

 

(6,044

)

(19,223

)

Net cash provided by operating activities

 

34,050

 

1,530

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Proceeds from disposal of assets

 

35

 

279

 

Capital expenditures

 

(5,209

)

(6,506

)

Purchases of investments

 

(7,695

)

(5,422

)

Proceeds from sales of investments

 

3,670

 

12,983

 

Acquisitions, net of cash acquired

 

(5,281

)

 

Change in restricted cash

 

(7

)

 

Net cash (used for) provided by investing activities

 

(14,487

)

1,334

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

Payments on debt

 

(89

)

(122

)

Stock issued for stock and employee benefit plans

 

2,564

 

145

 

Excess tax benefit on stock option exercises

 

1,137

 

363

 

Purchases of common stock

 

(13,567

)

(9,171

)

Dividends paid

 

(4,923

)

(4,055

)

Net cash used for financing activities

 

(14,878

)

(12,840

)

 

 

 

 

 

 

Effect of exchange rate changes on cash and equivalents

 

116

 

(807

)

Change in cash and equivalents

 

4,801

 

(10,783

)

Cash and equivalents at beginning of period

 

112,358

 

98,302

 

Cash and equivalents at end of period

 

$

117,159

 

$

87,519

 

 

 

 

 

 

 

Supplemental disclosure of non-cash investing activities

 

 

 

 

 

Capital expenditures included in payables

 

$

 

$

500

 

 



 

LA-Z-BOY INCORPORATED

SEGMENT INFORMATION

 

 

 

Quarter Ended

 

(Unaudited, amounts in thousands)

 

7/30/16

 

7/25/15

 

Sales

 

 

 

 

 

Upholstery segment:

 

 

 

 

 

Sales to external customers

 

$

223,809

 

$

232,484

 

Intersegment sales

 

43,607

 

40,192

 

Upholstery segment sales

 

267,416

 

272,676

 

 

 

 

 

 

 

Casegoods segment:

 

 

 

 

 

Sales to external customers

 

20,585

 

21,202

 

Intersegment sales

 

4,453

 

2,191

 

Casegoods segment sales

 

25,038

 

23,393

 

 

 

 

 

 

 

Retail segment sales

 

95,720

 

86,651

 

 

 

 

 

 

 

Corporate and Other:

 

 

 

 

 

Sales to external customers

 

669

 

1,086

 

Intersegment sales

 

1,210

 

516

 

Corporate and Other sales

 

1,879

 

1,602

 

 

 

 

 

 

 

Eliminations

 

(49,270

)

(42,899

)

Consolidated sales

 

$

340,783

 

$

341,423

 

 

 

 

 

 

 

Operating Income (Loss)

 

 

 

 

 

Upholstery segment

 

$

29,809

 

$

24,594

 

Casegoods segment

 

2,147

 

1,690

 

Retail segment

 

2,183

 

4,729

 

Corporate and Other

 

(12,371

)

(11,047

)

Consolidated operating income

 

$

21,768

 

$

19,966