EX-99.2 3 ex99_2.htm EXHIBIT 99.2
EXHIBIT 99.2
 
LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF INCOME

 
  
Unaudited
For the Quarter Ended
    
Unaudited
For the Year Ended
  
(Amounts in thousands, except per share data)
  
4/27/2013
    
4/28/2012
    
4/27/2013
    
4/28/2012
  
Sales
  
$
359,535
    
$
327,388
    
$
1,332,525
    
$
1,231,676
  
Cost of sales
    
237,966
      
224,033
      
907,586
      
851,819
  
Gross profit
    
121,569
      
103,355
      
424,939
      
379,857
  
Selling, general and administrative expense
    
95,409
      
86,465
      
357,312
      
330,226
  
Operating income
    
26,160
      
16,890
      
67,627
      
49,631
  
Interest expense
    
234
      
297
      
746
      
1,384
  
Interest income
    
186
      
124
      
621
      
611
  
Income from Continued Dumping and Subsidy Offset Act, net
    
—
      
16,300
      
—
      
18,037
  
Other income (expense), net
    
713
      
(214
)
    
3,208
      
(38
)
Income before income taxes
    
26,825
      
32,803
      
70,710
      
66,857
  
Income tax expense (benefit)
    
8,333
      
12,769
      
23,528
      
(22,051
)
Net income
    
18,492
      
20,034
      
47,182
      
88,908
  
Net (income) loss attributable to noncontrolling interests
    
(184
)
    
(432
)
    
(793
)
    
(942
)
Net income attributable to La-Z-Boy Incorporated
  
$
18,308
    
$
19,602
    
$
46,389
    
$
87,966
  
 
                                
Diluted average shares
    
53,754
      
52,609
      
53,685
      
52,478
  
 
                                
Diluted net income per share attributable to La-Z-Boy Incorporated
  
$
0.33
    
$
0.37
    
$
0.85
    
$
1.64
  
Dividends declared per share
  
$
0.04
    
$
—
    
$
0.08
    
$
—
  

LA-Z-BOY INCORPORATED
CONSOLIDATED BALANCE SHEET

 
  
Unaudited As of
  
(Amounts in thousands, except par value)
  
4/27/2013
    
4/28/2012
  
Current assets
  
   
 
Cash and equivalents
  
$
131,085
    
$
152,370
  
Restricted cash
    
12,686
      
2,861
  
Receivables, net of allowance of $21,607 at 4/27/13 and $22,254 at 4/28/12
    
160,005
      
167,232
  
Inventories, net
    
146,343
      
143,787
  
Deferred income tax assets – current
    
20,640
      
19,081
  
Other current assets
    
30,121
      
14,669
  
Total current assets
    
500,880
      
500,000
  
Property, plant and equipment, net
    
118,060
      
114,366
  
Goodwill
    
12,837
      
—
  
Other intangible assets
    
4,838
      
3,028
  
Deferred income tax assets – long-term
    
30,572
      
33,649
  
Other long-term assets, net
    
53,184
      
34,696
  
Total assets
  
$
720,371
    
$
685,739
  
 
                
Current liabilities
                
Current portion of long-term debt
  
$
513
    
$
1,829
  
Accounts payable
    
50,542
      
56,630
  
Accrued expenses and other current liabilities
    
99,108
      
91,300
  
Total current liabilities
    
150,163
      
149,759
  
Long-term debt
    
7,576
      
7,931
  
Other long-term liabilities
    
70,664
      
80,234
  
Contingencies and commitments
    
—
      
—
  
Shareholders’ equity
                
Preferred shares – 5,000 authorized; none issued
    
—
      
—
  
Common shares, $1 par value – 150,000 authorized; 52,392 outstanding at 4/27/13 and 52,244 outstanding at 4/28/12
    
52,392
      
52,244
  
Capital in excess of par value
    
241,888
      
231,332
  
Retained earnings
    
226,044
      
189,609
  
Accumulated other comprehensive loss
    
(35,496
)
    
(31,281
)
Total La-Z-Boy Incorporated shareholders' equity
    
484,828
      
441,904
  
Noncontrolling interests
    
7,140
      
5,911
  
Total equity
    
491,968
      
447,815
  
Total liabilities and equity
  
$
720,371
    
$
685,739
  

LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF CASH FLOWS

 
  
Unaudited Fiscal Year Ended
  
(Amounts in thousands)
  
4/27/2013
    
4/28/2012
    
4/30/2011
  
Cash flows from operating activities
  
   
   
 
Net income
  
$
47,182
    
$
88,908
    
$
17,373
  
Adjustments to reconcile net income to cash provided by operating activities
                        
(Gain) loss on disposal of assets
    
(659
)
    
45
      
201
  
Gain on sale of investments
    
(3,170
)
    
(519
)
    
(529
)
Gain on deconsolidation of VIE
    
—
      
(1,125
)
    
—
  
Write-down of long-lived assets
    
—
      
—
      
4,471
  
Deferred income tax expense (benefit)
    
3,198
      
(42,146
)
    
(120
)
Restructuring
    
2,715
      
281
      
487
  
Provision for doubtful accounts
    
1,005
      
4,196
      
7,197
  
Depreciation and amortization
    
23,140
      
23,486
      
24,302
  
Stock-based compensation expense
    
11,458
      
5,718
      
3,720
  
Pension plan contributions
    
(23,480
)
    
(5,798
)
    
(4,495
)
Change in receivables
    
7,139
      
(6,182
)
    
1,599
  
Change in inventories
    
391
      
(7,414
)
    
(10,531
)
Change in other assets
    
(5,407
)
    
3,318
      
(563
)
Change in payables
    
(6,088
)
    
7,470
      
(4,429
)
Change in other liabilities
    
11,016
      
12,610
      
(10,837
)
Net cash provided by operating activities
    
68,440
      
82,848
      
27,846
  
Cash flows from investing activities
                        
Proceeds from disposals of assets
    
4,455
      
372
      
506
  
Capital expenditures
    
(25,912
)
    
(15,663
)
    
(10,540
)
Purchases of investments
    
(49,589
)
    
(7,944
)
    
(10,200
)
Proceeds from sales of investments
    
18,662
      
8,649
      
10,655
  
Cash effects on deconsolidation of VIE
    
—
      
(971
)
    
(632
)
Acquisitions, net of cash acquired
    
(15,832
)
    
—
      
—
  
Change in restricted cash
    
(9,825
)
    
(2,861
)
    
—
  
Other
    
—
      
(676
)
    
(49
)
Net cash used for investing activities
    
(78,041
)
    
(19,094
)
    
(10,260
)
Cash flows from financing activities
                        
Proceeds from debt
    
—
      
—
      
30,585
  
Payments on debt
    
(2,511
)
    
(25,936
)
    
(41,618
)
Payments for debt issuance costs
    
—
      
(568
)
    
—
  
Stock issued for stock and employee benefit plans
    
2,901
      
4,943
      
270
  
Excess tax benefit on stock option exercises
    
2,563
      
223
      
—
  
Purchases of common stock
    
(10,333
)
    
(5,179
)
    
—
  
Dividends paid
    
(4,236
)
    
—
      
—
  
Net cash used for financing activities
    
(11,616
)
    
(26,517
)
    
(10,763
)
Effect of exchange rate changes on cash and equivalents
    
(68
)
    
(129
)
    
12
  
Change in cash and equivalents
    
(21,285
)
    
37,108
      
6,835
  
Cash and equivalents at beginning of period
    
152,370
      
115,262
      
108,427
  
Cash and equivalents at end of period
  
$
131,085
    
$
152,370
    
$
115,262
  
 
LA-Z-BOY INCORPORATED
SEGMENT INFORMATION
 
 
  
Unaudited For the
Quarter Ended
    
Unaudited For the Year
Ended
  
(Amounts in thousands)
  
4/27/2013
    
4/28/2012
    
4/27/2013
    
4/28/2012
  
Sales
  
   
   
   
 
Upholstery segment:
  
   
   
   
 
Sales to external customers
  
$
255,522
    
$
238,032
    
$
939,736
    
$
871,511
  
Intersegment sales
    
33,909
      
28,861
      
127,311
      
103,592
  
Upholstery segment sales
    
289,431
      
266,893
      
1,067,047
      
975,103
  
Casegoods segment:
                                
Sales to external customers
    
29,911
      
33,224
      
125,753
      
133,479
  
Intersegment sales
    
2,335
      
2,113
      
8,241
      
6,160
  
Casegoods segment sales
    
32,246
      
35,337
      
133,994
      
139,639
  
Retail segment sales
    
73,634
      
55,578
      
264,723
      
215,490
  
VIEs, net of intercompany sales eliminations
    
—
      
—
      
—
      
8,840
  
Corporate and Other
    
468
      
554
      
2,313
      
2,356
  
Eliminations
    
(36,244
)
    
(30,974
)
    
(135,552
)
    
(109,752
)
Consolidated sales
  
$
359,535
    
$
327,388
    
$
1,332,525
    
$
1,231,676
  
 
                                
Operating Income (Loss)
                                
Upholstery segment
  
$
31,019
    
$
27,032
    
$
96,762
    
$
81,753
  
Casegoods segment
    
259
      
1,181
      
2,640
      
5,540
  
Retail segment
    
3,994
      
(1,112
)
    
4,099
      
(7,819
)
VIEs
    
—
      
—
      
—
      
959
  
Restructuring
    
1
      
(59
)
    
(2,715
)
    
(281
)
Corporate and Other
    
(9,113
)
    
(10,152
)
    
(33,159
)
    
(30,521
)
Consolidated operating income
  
$
26,160
    
$
16,890
    
$
67,627
    
$
49,631
  

LA-Z-BOY INCORPORATED
UNAUDITED QUARTERLY FINANCIAL DATA

(Dollar amounts in thousands, except per share data)
  
(13 weeks)
    
(13 weeks)
    
(13 weeks)
    
(13 weeks)
  
Fiscal Quarter Ended
  
7/28/2012
    
10/27/2012
    
1/26/2013
    
4/27/2013
  
Sales
  
$
301,501
    
$
322,341
    
$
349,148
    
$
359,535
  
Cost of sales
    
211,889
      
222,032
      
235,699
      
237,966
  
Gross profit
    
89,612
      
100,309
      
113,449
      
121,569
  
Selling, general and administrative expense
    
81,986
      
89,746
      
90,171
      
95,409
  
Operating income
    
7,626
      
10,563
      
23,278
      
26,160
  
Interest expense
    
173
      
191
      
148
      
234
  
Interest income
    
121
      
116
      
198
      
186
  
Other income (expense), net
    
(121
)
    
212
      
2,404
      
713
  
Income before income taxes
    
7,453
      
10,700
      
25,732
      
26,825
  
Income tax expense
    
2,758
      
3,868
      
8,569
      
8,333
  
Net income
    
4,695
      
6,832
      
17,163
      
18,492
  
Net income attributable to noncontrolling interests
    
(297
)
    
(213
)
    
(99
)
    
(184
)
Net income attributable to La-Z-Boy Incorporated
  
$
4,398
    
$
6,619
    
$
17,064
    
$
18,308
  
 
                                
Diluted weighted average shares
    
53,040
      
53,268
      
53,401
      
53,754
  
 
                                
Diluted net income per share attributable to La-Z-Boy Incorporated
  
$
0.08
    
$
0.12
    
$
0.32
    
$
0.33
  
 
                                
Dividends declared per share
  
$
—
    
$
—
    
$
0.04
    
$
0.04
  

LA-Z-BOY INCORPORATED
UNAUDITED QUARTERLY FINANCIAL DATA

(Dollar amounts in thousands, except per share data)
  
(13 weeks)
    
(13 weeks)
    
(13 weeks)
    
(13 weeks)
  
Fiscal Quarter Ended
  
7/30/2011
    
10/29/2011
    
1/28/2012
    
4/28/2012
  
Sales
  
$
280,094
    
$
307,679
    
$
316,515
    
$
327,388
  
Cost of sales
    
199,166
      
211,896
      
216,724
      
224,033
  
Gross profit
    
80,928
      
95,783
      
99,791
      
103,355
  
Selling, general and administrative expense
    
77,455
      
83,535
      
82,771
      
86,465
  
Operating income
    
3,473
      
12,248
      
17,020
      
16,890
  
Interest expense
    
424
      
389
      
274
      
297
  
Interest income
    
183
      
166
      
138
      
124
  
Income from Continued Dumping and Subsidy Offset Act, net
    
322
      
—
      
1,415
      
16,300
  
Other income (expense), net
    
373
      
(108
)
    
(89
)
    
(214
)
Income before income taxes
    
3,927
      
11,917
      
18,210
      
32,803
  
Income tax expense (benefit)
    
(41,929
)
    
4,245
      
2,864
      
12,769
  
Net income
    
45,856
      
7,672
      
15,346
      
20,034
  
Net (income) loss attributable to noncontrolling interests
    
(320
)
    
198
      
(388
)
    
(432
)
Net income attributable to La-Z-Boy Incorporated
  
$
45,536
    
$
7,870
    
$
14,958
    
$
19,602
  
 
                                
Diluted weighted average shares
    
52,443
      
52,475
      
52,379
      
52,609
  
 
                                
Diluted net income per share attributable to La-Z-Boy Incorporated
  
$
0.85
    
$
0.15
    
$
0.28
    
$
0.37
  
 
                                
Dividends declared per share
  
$
—
    
$
—
    
$
—
    
$
—