EX-99.2 3 a18-20034_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)

 

7/28/18

 

7/29/17

 

Sales

 

$

384,695

 

$

357,079

 

Cost of sales

 

236,173

 

217,976

 

Gross profit

 

148,522

 

139,103

 

Selling, general and administrative expense

 

125,362

 

122,805

 

Operating income

 

23,160

 

16,298

 

Interest expense

 

104

 

157

 

Interest income

 

602

 

343

 

Other income (expense), net

 

892

 

1,749

 

Income before income taxes

 

24,550

 

18,233

 

Income tax expense

 

5,599

 

6,489

 

Net income

 

18,951

 

11,744

 

Net income attributable to noncontrolling interests

 

(648

)

(93

)

Net income attributable to La-Z-Boy Incorporated

 

$

18,303

 

$

11,651

 

 

 

 

 

 

 

Basic weighted average common shares

 

46,716

 

48,357

 

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

 

$

0.39

 

$

0.24

 

 

 

 

 

 

 

Diluted weighted average common shares

 

47,161

 

48,846

 

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

 

$

0.39

 

$

0.24

 

 

 

 

 

 

 

Dividends declared per share

 

$

0.12

 

$

0.11

 

 



 

LA-Z-BOY INCORPORATED

CONSOLIDATED BALANCE SHEET

 

(Unaudited, amounts in thousands, except par value)

 

7/28/18

 

4/28/18

 

Current assets

 

 

 

 

 

Cash and equivalents

 

$

134,247

 

$

134,515

 

Restricted cash

 

2,358

 

2,356

 

Receivables, net of allowance of $2,058 at 7/28/18 and $1,956 at 4/28/18

 

138,979

 

154,055

 

Inventories, net

 

195,015

 

184,841

 

Other current assets

 

55,313

 

42,451

 

Total current assets

 

525,912

 

518,218

 

Property, plant and equipment, net

 

188,088

 

180,882

 

Goodwill

 

74,553

 

75,254

 

Other intangible assets, net

 

17,874

 

18,190

 

Deferred income taxes — long-term

 

21,255

 

21,265

 

Other long-term assets, net

 

78,900

 

79,158

 

Total assets

 

$

906,582

 

$

892,967

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

Current portion of long-term debt

 

$

221

 

$

223

 

Accounts payable

 

62,885

 

62,403

 

Accrued expenses and other current liabilities

 

127,708

 

118,721

 

Total current liabilities

 

190,814

 

181,347

 

Long-term debt

 

142

 

199

 

Other long-term liabilities

 

88,962

 

86,205

 

Contingencies and commitments

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

Preferred shares — 5,000 authorized; none issued

 

 

 

Common shares, $1 par value — 150,000 authorized; 46,691 outstanding at 7/28/18 and 46,788 outstanding at 4/28/18

 

46,691

 

46,788

 

Capital in excess of par value

 

300,770

 

298,948

 

Retained earnings

 

296,321

 

291,644

 

Accumulated other comprehensive loss

 

(29,573

)

(25,199

)

Total La-Z-Boy Incorporated shareholders’ equity

 

614,209

 

612,181

 

Noncontrolling interests

 

12,455

 

13,035

 

Total equity

 

626,664

 

625,216

 

Total liabilities and equity

 

$

906,582

 

$

892,967

 

 



 

LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF CASH FLOWS

 

 

 

Quarter Ended

 

(Unaudited, amounts in thousands)

 

7/28/18

 

7/29/17

 

Cash flows from operating activities

 

 

 

 

 

Net income

 

$

18,951

 

$

11,744

 

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

 

 

 

 

 

Change in deferred taxes

 

(183

)

1,344

 

Provision for doubtful accounts

 

279

 

(22

)

Depreciation and amortization

 

7,541

 

7,758

 

Equity-based compensation expense

 

2,040

 

3,558

 

Change in receivables

 

14,236

 

15,753

 

Change in inventories

 

(11,092

)

(2,477

)

Change in other assets

 

463

 

(10,837

)

Change in payables

 

2,491

 

(3,974

)

Change in other liabilities

 

(2,572

)

(3,339

)

Net cash provided by operating activities

 

32,154

 

19,508

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Proceeds from disposals of assets

 

61

 

459

 

Proceeds from property insurance

 

58

 

450

 

Capital expenditures

 

(15,873

)

(9,146

)

Purchases of investments

 

(4,190

)

(10,851

)

Proceeds from sales of investments

 

4,762

 

5,857

 

Acquisitions, net of cash acquired

 

 

(15,879

)

Net cash used for investing activities

 

(15,182

)

(29,110

)

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

Payments on debt

 

(59

)

(66

)

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

 

(2,009

)

377

 

Purchases of common stock

 

(7,944

)

(11,491

)

Dividends paid

 

(5,625

)

(5,337

)

Net cash used for financing activities

 

(15,637

)

(16,517

)

 

 

 

 

 

 

Effect of exchange rate changes on cash and equivalents

 

(1,601

)

851

 

Change in cash, cash equivalents and restricted cash

 

(266

)

(25,268

)

Cash, cash equivalents and restricted cash at beginning of period

 

136,871

 

150,859

 

Cash, cash equivalents and restricted cash at end of period

 

$

136,605

 

$

125,591

 

 

 

 

 

 

 

Supplemental disclosure of non-cash investing activities

 

 

 

 

 

Capital expenditures included in payables

 

$

4,122

 

$

1,671

 

 



 

LA-Z-BOY INCORPORATED

SEGMENT INFORMATION

 

 

 

Quarter Ended

 

(Unaudited, amounts in thousands)

 

7/28/18

 

7/29/17

 

Sales

 

 

 

 

 

Upholstery segment:

 

 

 

 

 

Sales to external customers

 

$

240,054

 

$

224,814

 

Intersegment sales

 

53,344

 

49,593

 

Upholstery segment sales

 

293,398

 

274,407

 

 

 

 

 

 

 

Casegoods segment:

 

 

 

 

 

Sales to external customers

 

24,403

 

21,019

 

Intersegment sales

 

3,983

 

4,491

 

Casegoods segment sales

 

28,386

 

25,510

 

 

 

 

 

 

 

Retail segment sales

 

119,228

 

110,516

 

 

 

 

 

 

 

Corporate and Other:

 

 

 

 

 

Sales to external customers

 

1,010

 

730

 

Intersegment sales

 

2,855

 

1,930

 

Corporate and Other sales

 

3,865

 

2,660

 

 

 

 

 

 

 

Eliminations

 

(60,182

)

(56,014

)

Consolidated sales

 

$

384,695

 

$

357,079

 

 

 

 

 

 

 

Operating Income (Loss)

 

 

 

 

 

Upholstery segment

 

$

23,884

 

$

23,299

 

Casegoods segment

 

3,080

 

2,739

 

Retail segment

 

4,458

 

1,767

 

Corporate and Other

 

(8,262

)

(11,507

)

Consolidated operating income

 

$

23,160

 

$

16,298