EX-99.2 3 a17-6860_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)

 

1/28/17

 

1/23/16

 

Sales

 

$

389,992

 

$

384,014

 

Cost of sales

 

233,875

 

236,024

 

Gross profit

 

156,117

 

147,990

 

Selling, general and administrative expense

 

123,235

 

113,206

 

Operating income

 

32,882

 

34,784

 

Interest expense

 

562

 

120

 

Interest income

 

241

 

204

 

Income from Continued Dumping and Subsidy Offset Act, net

 

273

 

102

 

Other income (expense), net

 

638

 

(93

)

Income before income taxes

 

33,472

 

34,877

 

Income tax expense

 

9,830

 

12,643

 

Net income

 

23,642

 

22,234

 

Net income attributable to noncontrolling interests

 

(356

)

(328

)

Net income attributable to La-Z-Boy Incorporated

 

$

23,286

 

$

21,906

 

 

 

 

 

 

 

Basic weighted average common shares

 

48,914

 

50,038

 

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

 

$

0.47

 

$

0.44

 

 

 

 

 

 

 

Diluted weighted average common shares

 

49,384

 

50,539

 

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

 

$

0.47

 

$

0.43

 

 

 

 

 

 

 

Dividends declared per share

 

$

0.11

 

$

0.10

 

 



 

LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF INCOME

 

 

 

Nine Months Ended

 

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

 

1/28/17

 

1/23/16

 

Sales

 

$

1,107,354

 

$

1,108,328

 

Cost of sales

 

669,012

 

690,300

 

Gross profit

 

438,342

 

418,028

 

Selling, general and administrative expense

 

350,524

 

329,884

 

Operating income

 

87,818

 

88,144

 

Interest expense

 

794

 

365

 

Interest income

 

679

 

573

 

Income from Continued Dumping and Subsidy Offset Act, net

 

273

 

102

 

Other income (expense), net

 

287

 

2,387

 

Income before income taxes

 

88,263

 

90,841

 

Income tax expense

 

29,508

 

32,825

 

Net income

 

58,755

 

58,016

 

Net income attributable to noncontrolling interests

 

(830

)

(1,482

)

Net income attributable to La-Z-Boy Incorporated

 

$

57,925

 

$

56,534

 

 

 

 

 

 

 

Basic weighted average common shares

 

49,057

 

50,371

 

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

 

$

1.17

 

$

1.12

 

 

 

 

 

 

 

Diluted weighted average common shares

 

49,532

 

50,880

 

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

 

$

1.16

 

$

1.11

 

 

 

 

 

 

 

Dividends declared per share

 

$

0.31

 

$

0.26

 

 



 

LA-Z-BOY INCORPORATED

CONSOLIDATED BALANCE SHEET

 

(Unaudited, amounts in thousands, except par value)

 

1/28/17

 

4/30/16

 

Current assets

 

 

 

 

 

Cash and equivalents

 

$

110,320

 

$

112,358

 

Restricted cash

 

8,991

 

8,977

 

Receivables, net of allowance of $2,784 at 1/28/17 and $3,145 at 4/30/16

 

143,208

 

146,545

 

Inventories, net

 

193,695

 

175,589

 

Other current assets

 

41,894

 

38,503

 

Total current assets

 

498,108

 

481,972

 

Property, plant and equipment, net

 

169,128

 

171,590

 

Goodwill

 

73,777

 

37,193

 

Other intangible assets, net

 

18,781

 

8,558

 

Deferred income taxes — long-term

 

37,960

 

41,683

 

Other long-term assets, net

 

66,846

 

59,033

 

Total assets

 

$

864,600

 

$

800,029

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

Current portion of long-term debt

 

$

243

 

$

290

 

Accounts payable

 

50,998

 

44,661

 

Accrued expenses and other current liabilities

 

138,852

 

112,476

 

Total current liabilities

 

190,093

 

157,427

 

Long-term debt

 

344

 

513

 

Other long-term liabilities

 

87,237

 

84,877

 

Contingencies and commitments

 

 

 

Shareholders’ equity

 

 

 

 

 

Preferred shares — 5,000 authorized; none issued

 

 

 

Common shares, $1 par value — 150,000 authorized; 48,860 outstanding at 1/28/17 and 49,331 outstanding at 4/30/16

 

48,860

 

49,331

 

Capital in excess of par value

 

288,532

 

279,339

 

Retained earnings

 

272,578

 

252,472

 

Accumulated other comprehensive loss

 

(33,785

)

(34,000

)

Total La-Z-Boy Incorporated shareholders’ equity

 

576,185

 

547,142

 

Noncontrolling interests

 

10,741

 

10,070

 

Total equity

 

586,926

 

557,212

 

Total liabilities and equity

 

$

864,600

 

$

800,029

 

 



 

LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF CASH FLOWS

 

 

 

Nine Months Ended

 

(Unaudited, amounts in thousands)

 

1/28/17

 

1/23/16

 

Cash flows from operating activities

 

 

 

 

 

Net income

 

$

58,755

 

$

58,016

 

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

 

 

 

 

 

Deferred income tax expense

 

3,214

 

5,000

 

Provision for doubtful accounts

 

(64

)

(675

)

Depreciation and amortization

 

21,311

 

19,308

 

Equity-based compensation expense

 

7,571

 

6,868

 

Pension plan contributions

 

(2,300

)

(7,000

)

Change in receivables

 

(576

)

15,284

 

Change in inventories

 

(5,929

)

(23,121

)

Change in other assets

 

(4,518

)

1,991

 

Change in payables

 

6,359

 

349

 

Change in other liabilities

 

7,431

 

(6,306

)

Net cash provided by operating activities

 

91,254

 

69,714

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Proceeds from disposal of assets

 

273

 

2,506

 

Capital expenditures

 

(15,529

)

(19,825

)

Purchases of investments

 

(20,778

)

(15,816

)

Proceeds from sales of investments

 

13,899

 

23,896

 

Acquisitions, net of cash acquired

 

(35,878

)

(19,232

)

Change in restricted cash

 

(15

)

660

 

Net cash used for investing activities

 

(58,028

)

(27,811

)

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

Payments on debt

 

(217

)

(415

)

Stock issued for stock and employee benefit plans

 

3,500

 

253

 

Excess tax benefit on stock option exercises

 

1,924

 

774

 

Purchases of common stock

 

(25,062

)

(29,096

)

Dividends paid

 

(15,270

)

(13,137

)

Net cash used for financing activities

 

(35,125

)

(41,621

)

 

 

 

 

 

 

Effect of exchange rate changes on cash and equivalents

 

(139

)

(886

)

Change in cash and equivalents

 

(2,038

)

(604

)

Cash and equivalents at beginning of period

 

112,358

 

98,302

 

Cash and equivalents at end of period

 

$

110,320

 

$

97,698

 

 

 

 

 

 

 

Supplemental disclosure of non-cash investing activities

 

 

 

 

 

Capital expenditures included in payables

 

$

1,012

 

$

 

 



 

LA-Z-BOY INCORPORATED

SEGMENT INFORMATION

 

 

 

Quarter Ended

 

Nine Months Ended

 

(Unaudited, amounts in thousands)

 

1/28/17

 

1/23/16

 

1/28/17

 

1/23/16

 

Sales

 

 

 

 

 

 

 

 

 

Upholstery segment:

 

 

 

 

 

 

 

 

 

Sales to external customers

 

$

246,650

 

$

250,740

 

$

715,357

 

$

743,304

 

Intersegment sales

 

56,273

 

51,652

 

150,771

 

137,581

 

Upholstery segment sales

 

302,923

 

302,392

 

866,128

 

880,885

 

 

 

 

 

 

 

 

 

 

 

Casegoods segment:

 

 

 

 

 

 

 

 

 

Sales to external customers

 

20,499

 

22,528

 

64,651

 

69,517

 

Intersegment sales

 

2,760

 

2,091

 

9,534

 

6,714

 

Casegoods segment sales

 

23,259

 

24,619

 

74,185

 

76,231

 

 

 

 

 

 

 

 

 

 

 

Retail segment sales

 

122,121

 

110,160

 

325,206

 

293,291

 

 

 

 

 

 

 

 

 

 

 

Corporate and Other:

 

 

 

 

 

 

 

 

 

Sales to external customers

 

722

 

586

 

2,140

 

2,216

 

Intersegment sales

 

1,978

 

1,328

 

4,751

 

2,594

 

Corporate and Other sales

 

2,700

 

1,914

 

6,891

 

4,810

 

 

 

 

 

 

 

 

 

 

 

Eliminations

 

(61,011

)

(55,071

)

(165,056

)

(146,889

)

Consolidated sales

 

$

389,992

 

$

384,014

 

$

1,107,354

 

$

1,108,328

 

 

 

 

 

 

 

 

 

 

 

Operating Income (Loss)

 

 

 

 

 

 

 

 

 

Upholstery segment

 

$

34,979

 

$

33,022

 

$

102,318

 

$

94,656

 

Casegoods segment

 

1,593

 

1,768

 

6,587

 

6,092

 

Retail segment

 

6,325

 

8,834

 

11,515

 

19,279

 

Corporate and Other

 

(10,015

)

(8,840

)

(32,602

)

(31,883

)

Consolidated operating income

 

$

32,882

 

$

34,784

 

$

87,818

 

$

88,144