LA-Z-BOY INCORPORATED
|
(Exact name of registrant as specified in its charter)
|
MICHIGAN
|
1-9656
|
38-0751137
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer Identification Number)
|
1284 North Telegraph Road, Monroe, Michigan
|
48162-3390
|
|
(Address of principal executive offices)
|
Zip Code
|
None
|
(Former name or former address, if changed since last report.)
|
o
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
o
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
o
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
o
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Item 9.01
|
Financial Statements and Exhibits
|
(d)
|
The following exhibits are furnished as part of this report:
|
|
LA-Z-BOY INCORPORATED
|
|
(Registrant) |
|
BY: /s/ Margaret L. Mueller
|
|
Margaret L. Mueller | ||
Corporate Controller |
Contact: Kathy Liebmann
|
(734) 241-2438
|
kathy.liebmann@la-z-boy.com
|
|
·
|
Sales for the third quarter increased 10.3% compared with the fiscal 2012 third quarter;
|
|
·
|
Operating income increased 37% to $23.3 million, compared with $17.0 million in the fiscal 2012 third quarter;
|
|
·
|
The upholstery segment’s sales increased 12.3% and its operating margin was 10.1% versus 9.1% in last year’s third quarter;
|
|
·
|
The company’s retail segment was profitable, posting an operating margin of 3.7% compared with (1.1%) in last year’s third quarter;
|
|
·
|
Same-store written sales for the La-Z-Boy Furniture Galleries® store network increased 11.8% for the third quarter; and
|
|
·
|
The company generated $35.9 million in cash for the quarter from operating activities and ended the quarter with $112 million in cash and equivalents.
|
Third Quarter Ended
|
||||||||
(Unaudited, amounts in thousands, except per share data)
|
1/26/13
|
1/28/12
|
||||||
Sales
|
$ | 349,148 | $ | 316,515 | ||||
Cost of sales
|
235,699 | 216,724 | ||||||
Gross profit
|
113,449 | 99,791 | ||||||
Selling, general and administrative expense
|
90,171 | 82,771 | ||||||
Operating income
|
23,278 | 17,020 | ||||||
Interest expense
|
148 | 274 | ||||||
Interest income
|
198 | 138 | ||||||
Income from Continued Dumping and Subsidy Offset Act
|
— | 1,415 | ||||||
Other income (expense), net
|
2,404 | (89 | ) | |||||
Income before income taxes
|
25,732 | 18,210 | ||||||
Income tax expense
|
8,569 | 2,864 | ||||||
Net income
|
17,163 | 15,346 | ||||||
Net income attributable to noncontrolling interests
|
(99 | ) | (388 | ) | ||||
Net income attributable to La-Z-Boy Incorporated
|
$ | 17,064 | $ | 14,958 | ||||
Basic weighted average shares outstanding
|
52,431 | 51,811 | ||||||
Basic net income attributable to La-Z-Boy Incorporated per share
|
$ | 0.32 | $ | 0.28 | ||||
Diluted weighted average shares outstanding
|
53,401 | 52,379 | ||||||
Diluted net income attributable to La-Z-Boy Incorporated per share
|
$ | 0.32 | $ | 0.28 | ||||
Dividends declared per share
|
$ | 0.04 | — |
Nine Months Ended
|
||||||||
(Unaudited, amounts in thousands, except per share data)
|
1/26/13
|
1/28/12
|
||||||
Sales
|
$ | 972,990 | $ | 904,288 | ||||
Cost of sales
|
669,620 | 627,786 | ||||||
Gross profit
|
303,370 | 276,502 | ||||||
Selling, general and administrative expense
|
261,903 | 243,761 | ||||||
Operating income
|
41,467 | 32,741 | ||||||
Interest expense
|
512 | 1,087 | ||||||
Interest income
|
435 | 487 | ||||||
Income from Continued Dumping and Subsidy Offset Act
|
— | 1,737 | ||||||
Other income, net
|
2,495 | 176 | ||||||
Income before income taxes
|
43,885 | 34,054 | ||||||
Income tax expense (benefit)
|
15,195 | (34,820 | ) | |||||
Net income
|
28,690 | 68,874 | ||||||
Net income attributable to noncontrolling interests
|
(609 | ) | (510 | ) | ||||
Net income attributable to La-Z-Boy Incorporated
|
$ | 28,081 | $ | 68,364 | ||||
Basic average shares
|
52,327 | 51,928 | ||||||
Basic net income attributable to La-Z-Boy Incorporated per share
|
$ | 0.53 | $ | 1.29 | ||||
Diluted average shares
|
53,201 | 52,440 | ||||||
Diluted net income attributable to La-Z-Boy Incorporated per share
|
$ | 0.52 | $ | 1.28 | ||||
Dividends declared per share
|
$ | 0.04 | — |
(Unaudited, amounts in thousands)
|
1/26/13
|
4/28/12
|
||||||
Current assets
|
||||||||
Cash and equivalents
|
$ | 111,981 | $ | 152,370 | ||||
Restricted cash
|
9,798 | 2,861 | ||||||
Receivables, net of allowance of $23,365 at 1/26/13 and $22,705 at 4/28/12
|
163,224 | 167,232 | ||||||
Inventories, net
|
159,060 | 143,787 | ||||||
Deferred income tax assets – current
|
22,596 | 19,081 | ||||||
Other current assets
|
27,901 | 14,669 | ||||||
Total current assets
|
494,560 | 500,000 | ||||||
Property, plant and equipment, net
|
120,222 | 114,366 | ||||||
Goodwill
|
12,837 | — | ||||||
Other intangible assets
|
5,173 | 3,028 | ||||||
Deferred income tax assets – long-term
|
29,926 | 33,649 | ||||||
Other long-term assets, net
|
49,493 | 34,696 | ||||||
Total assets
|
$ | 712,211 | $ | 685,739 | ||||
Current liabilities
|
||||||||
Current portion of long-term debt
|
$ | 327 | $ | 1,829 | ||||
Accounts payable
|
50,369 | 56,630 | ||||||
Accrued expenses and other current liabilities
|
96,113 | 91,300 | ||||||
Total current liabilities
|
146,809 | 149,759 | ||||||
Long-term debt
|
7,302 | 7,931 | ||||||
Other long-term liabilities
|
79,287 | 80,234 | ||||||
Contingencies and commitments
|
— | — | ||||||
Shareholders’ equity
|
||||||||
Preferred shares – 5,000 authorized; none issued
|
— | — | ||||||
Common shares, $1 par value – 150,000 authorized; 52,390 outstanding at 1/26/13 and 52,244 outstanding at 4/28/12
|
52,390 | 52,244 | ||||||
Capital in excess of par value
|
237,182 | 231,332 | ||||||
Retained earnings
|
213,596 | 189,609 | ||||||
Accumulated other comprehensive loss
|
(31,156 | ) | (31,281 | ) | ||||
Total La-Z-Boy Incorporated shareholders' equity
|
472,012 | 441,904 | ||||||
Noncontrolling interests
|
6,801 | 5,911 | ||||||
Total equity
|
478,813 | 447,815 | ||||||
Total liabilities and equity
|
$ | 712,211 | $ | 685,739 |
Nine Months Ended
|
||||||||
(Unaudited, amounts in thousands)
|
1/26/13
|
1/28/12
|
||||||
Cash flows from operating activities
|
||||||||
Net income
|
$ | 28,690 | $ | 68,874 | ||||
Adjustments to reconcile net income to cash provided by (used for) operating activities
|
||||||||
Loss (gain) on disposal of assets
|
(36 | ) | 119 | |||||
Gain on sale of investments
|
(2,866 | ) | (315 | ) | ||||
Gain on deconsolidation of VIE
|
— | (1,125 | ) | |||||
Deferred income tax benefit
|
(745 | ) | (48,042 | ) | ||||
Restructuring
|
2,716 | 222 | ||||||
Provision for doubtful accounts
|
1,009 | 3,115 | ||||||
Depreciation and amortization
|
17,111 | 18,054 | ||||||
Stock-based compensation expense
|
8,198 | 4,295 | ||||||
Pension plan contributions
|
(3,480 | ) | (2,790 | ) | ||||
Change in receivables
|
2,457 | 2,548 | ||||||
Change in inventories
|
(12,355 | ) | 2,203 | |||||
Change in other assets
|
(5,396 | ) | 1,972 | |||||
Change in payables
|
(6,261 | ) | (785 | ) | ||||
Change in other liabilities
|
4,410 | 7,511 | ||||||
Net cash provided by operating activities
|
33,452 | 55,856 | ||||||
Cash flows from investing activities
|
||||||||
Proceeds from disposal of assets
|
1,484 | 257 | ||||||
Capital expenditures
|
(21,792 | ) | (11,518 | ) | ||||
Purchases of investments
|
(36,353 | ) | (6,462 | ) | ||||
Proceeds from sales of investments
|
12,658 | 6,429 | ||||||
Cash effects on deconsolidation of VIE
|
— | (971 | ) | |||||
Acquisitions, net of cash acquired
|
(15,832 | ) | — | |||||
Change in restricted cash
|
(6,937 | ) | — | |||||
Other
|
— | (685 | ) | |||||
Net cash used for investing activities
|
(66,772 | ) | (12,950 | ) | ||||
Cash flows from financing activities
|
||||||||
Payments on debt
|
(2,372 | ) | (5,708 | ) | ||||
Payments for debt issuance costs
|
— | (568 | ) | |||||
Stock issued for stock and employee benefit plans
|
1,528 | 718 | ||||||
Excess tax benefit on stock option exercises
|
1,117 | — | ||||||
Purchases of common stock
|
(5,217 | ) | (4,517 | ) | ||||
Dividends paid
|
(2,119 | ) | — | |||||
Net cash used for financing activities
|
(7,063 | ) | (10,075 | ) | ||||
Effect of exchange rate changes on cash and equivalents
|
(6 | ) | (19 | ) | ||||
Change in cash and equivalents
|
(40,389 | ) | 32,812 | |||||
Cash and equivalents at beginning of period
|
152,370 | 115,262 | ||||||
Cash and equivalents at end of period
|
$ | 111,981 | $ | 148,074 |
Third Quarter Ended
|
Nine Months Ended
|
|||||||||||||||
(Unaudited, amounts in thousands)
|
1/26/13
|
1/28/12
|
1/26/13
|
1/28/12
|
||||||||||||
Sales
|
||||||||||||||||
Upholstery segment:
|
||||||||||||||||
Sales to external customers
|
$ | 245,365 | $ | 222,265 | $ | 684,214 | $ | 633,479 | ||||||||
Intersegment sales
|
34,622 | 27,083 | 93,402 | 74,731 | ||||||||||||
Upholstery segment sales
|
279,987 | 249,348 | 777,616 | 708,210 | ||||||||||||
Casegoods segment:
|
||||||||||||||||
Sales to external customers
|
30,496 | 32,735 | 95,841 | 100,255 | ||||||||||||
Intersegment sales
|
2,115 | 1,493 | 5,907 | 4,047 | ||||||||||||
Casegoods segment sales
|
32,611 | 34,228 | 101,748 | 104,302 | ||||||||||||
Retail segment sales
|
72,772 | 58,387 | 191,089 | 159,912 | ||||||||||||
VIEs, net of intercompany sales eliminations
|
— | 2,737 | — | 8,840 | ||||||||||||
Corporate and Other
|
515 | 391 | 1,845 | 1,802 | ||||||||||||
Eliminations
|
(36,737 | ) | (28,576 | ) | (99,308 | ) | (78,778 | ) | ||||||||
Consolidated sales
|
$ | 349,148 | $ | 316,515 | $ | 972,990 | $ | 904,288 | ||||||||
Operating Income (Loss)
|
||||||||||||||||
Upholstery segment
|
$ | 28,375 | $ | 22,603 | $ | 65,743 | $ | 54,721 | ||||||||
Casegoods segment
|
200 | 1,840 | 2,381 | 4,359 | ||||||||||||
Retail segment
|
2,668 | (646 | ) | 105 | (6,707 | ) | ||||||||||
VIEs
|
— | 596 | — | 959 | ||||||||||||
Restructuring
|
(30 | ) | (56 | ) | (2,716 | ) | (222 | ) | ||||||||
Corporate and Other
|
(7,935 | ) | (7,317 | ) | (24,046 | ) | (20,369 | ) | ||||||||
Consolidated operating income
|
$ | 23,278 | $ | 17,020 | $ | 41,467 | $ | 32,741 |