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)
  
4/26/2014
    
4/27/2013
    
4/26/2014
    
4/27/2013
  
Sales
  
$
353,020
    
$
345,840
    
$
1,357,318
    
$
1,273,877
  
Cost of sales
                                
Cost of goods sold
    
229,563
      
225,454
      
888,025
      
854,542
  
Restructuring
    
4,954
      
(29
)
    
4,839
      
2,480
  
Total cost of sales
    
234,517
      
225,425
      
892,864
      
857,022
  
Gross profit
    
118,503
      
120,415
      
464,454
      
416,855
  
Selling, general and administrative expense
    
95,974
      
93,266
      
375,158
      
349,101
  
Restructuring
    
—
      
28
      
—
      
151
  
Operating income
    
22,529
      
27,121
      
89,296
      
67,603
  
Interest expense
    
137
      
234
      
548
      
746
  
Interest income
    
222
      
186
      
761
      
620
  
Other income, net
    
943
      
692
      
2,050
      
3,208
  
Income from continuing operations before income taxes
    
23,557
      
27,765
      
91,559
      
70,685
  
Income tax expense
    
8,597
      
8,690
      
31,383
      
23,520
  
Income from continuing operations
    
14,960
      
19,075
      
60,176
      
47,165
  
Income (loss) from discontinued operations, net of tax
    
(2,403
)
    
(583
)
    
(3,796
)
    
17
  
Net income
    
12,557
      
18,492
      
56,380
      
47,182
  
Net income attributable to noncontrolling interests
    
(318
)
    
(184
)
    
(1,324
)
    
(793
)
Net income attributable to La-Z-Boy Incorporated
  
$
12,239
    
$
18,308
    
$
55,056
    
$
46,389
  
 
                                
Net income attributable to La-Z-Boy Incorporated:
                                
Income from continuing operations attributable to La-Z-Boy Incorporated
  
$
14,642
    
$
18,891
    
$
58,852
    
$
46,372
  
Income (loss) from discontinued operations
    
(2,403
)
    
(583
)
    
(3,796
)
    
17
  
Net income attributable to La-Z-Boy Incorporated
  
$
12,239
    
$
18,308
    
$
55,056
    
$
46,389
  
 
                                
Diluted weighted average shares
    
53,519
      
53,754
      
53,829
      
53,685
  
 
                                
Diluted net income attributable to La-Z-Boy Incorporated per share:
                                
Income from continuing operations attributable to La-Z-Boy Incorporated
  
$
0.27
    
$
0.34
    
$
1.09
    
$
0.85
  
Loss from discontinued operations
    
(0.04
)
    
(0.01
)
    
(0.07
)
    
—
  
Diluted net income attributable to La-Z-Boy Incorporated per share
  
$
0.23
    
$
0.33
    
$
1.02
    
$
0.85
  
 
                                
Dividends declared per share
  
$
0.06
    
$
0.04
    
$
0.20
    
$
0.08
  
LA-Z-BOY INCORPORATED
CONSOLIDATED BALANCE SHEET
 
 
  
Unaudited As of
  
(Amounts in thousands, except par value)
  
4/26/2014
    
4/27/2013
  
Current assets
  
   
 
Cash and equivalents
  
$
149,661
    
$
131,085
  
Restricted cash
    
12,572
      
12,686
  
Receivables, net of allowance of $12,368 at 4/26/14 and $21,607 at 4/27/13
    
152,614
      
160,005
  
Inventories, net
    
147,009
      
146,343
  
Deferred income taxes – current
    
15,037
      
20,640
  
Business held for sale
    
4,290
      
—
  
Other current assets
    
41,490
      
30,121
  
Total current assets
    
522,673
      
500,880
  
Property, plant and equipment, net
    
127,535
      
118,060
  
Goodwill
    
13,923
      
12,837
  
Other intangible assets
    
4,544
      
4,838
  
Deferred income taxes – long-term
    
32,430
      
30,572
  
Other long-term assets, net
    
70,190
      
53,184
  
Total assets
  
$
771,295
    
$
720,371
  
 
                
Current liabilities
                
Current portion of long-term debt
  
$
7,497
    
$
513
  
Accounts payable
    
56,177
      
50,542
  
Business held for sale
    
832
      
—
  
Accrued expenses and other current liabilities
    
102,876
      
99,108
  
Total current liabilities
    
167,382
      
150,163
  
Long-term debt
    
277
      
7,576
  
Other long-term liabilities
    
73,918
      
70,664
  
Contingencies and commitments
    
—
      
—
  
Shareholders’ equity
                
Preferred shares – 5,000 authorized; none issued
    
—
      
—
  
Common shares, $1 par value – 150,000 authorized; 51,981 outstanding at 4/26/14 and 52,392 outstanding at 4/27/13
    
51,981
      
52,392
  
Capital in excess of par value
    
262,901
      
241,888
  
Retained earnings
    
238,384
      
226,044
  
Accumulated other comprehensive loss
    
(31,380
)
    
(35,496
)
Total La-Z-Boy Incorporated shareholders' equity
    
521,886
      
484,828
  
Noncontrolling interests
    
7,832
      
7,140
  
Total equity
    
529,718
      
491,968
  
Total liabilities and equity
  
$
771,295
    
$
720,371
  

LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF CASH FLOWS

 
  
Unaudited Fiscal Year Ended
  
(Amounts in thousands)
  
4/26/2014
    
4/27/2013
  
Cash flows from operating activities
  
   
 
Net income
  
$
56,380
    
$
47,182
  
Adjustments to reconcile net income to cash provided by operating activities
                
(Gain) loss on disposal of assets
    
616
      
(659
)
Gain on sale of investments
    
(300
)
    
(3,170
)
Write-down of long-lived assets
    
1,149
      
—
  
Deferred income tax expense (benefit)
    
(216
)
    
3,198
  
Restructuring
    
8,071
      
2,715
  
Provision for doubtful accounts
    
(2,651
)
    
1,005
  
Depreciation and amortization
    
23,182
      
23,140
  
Stock-based compensation expense
    
8,739
      
11,458
  
Pension plan contributions
    
—
      
(23,480
)
Change in receivables
    
3,337
      
7,139
  
Change in inventories
    
(9,444
)
    
391
  
Change in other assets
    
(2,958
)
    
(5,407
)
Change in accounts payable
    
1,704
      
(6,088
)
Change in other liabilities
    
3,223
      
11,016
  
Net cash provided by operating activities
    
90,832
      
68,440
  
Cash flows from investing activities
                
Proceeds from disposals of assets
    
2,233
      
4,455
  
Proceeds from sale of business
    
6,844
      
—
  
Capital expenditures
    
(33,730
)
    
(25,912
)
Purchases of investments
    
(54,233
)
    
(49,589
)
Proceeds from sales of investments
    
34,557
      
18,662
  
Acquisitions, net of cash acquired
    
(801
)
    
(15,832
)
Change in restricted cash
    
114
      
(9,825
)
Net cash used for investing activities
    
(45,016
)
    
(78,041
)
Cash flows from financing activities
                
Payments on debt
    
(579
)
    
(2,511
)
Stock issued for stock and employee benefit plans
    
3,565
      
2,901
  
Excess tax benefit on stock option exercises
    
12,935
      
2,563
  
Purchases of common stock
    
(32,097
)
    
(10,333
)
Dividends paid
    
(10,514
)
    
(4,236
)
Net cash used for financing activities
    
(26,690
)
    
(11,616
)
Effect of exchange rate changes on cash and equivalents
    
(550
)
    
(68
)
Change in cash and equivalents
    
18,576
      
(21,285
)
Cash and equivalents at beginning of period
    
131,085
      
152,370
  
Cash and equivalents at end of period
  
$
149,661
    
$
131,085
  
 
Supplemental disclosure of non-cash investing activities
                
Capital expenditures included in accounts payable
  
$
5,303
    
$
—
  

LA-Z-BOY INCORPORATED
SEGMENT INFORMATION
 
 
  
Unaudited For the
Quarter Ended
    
Unaudited For the Year
Ended
  
(Amounts in thousands)
  
4/26/2014
    
4/27/2013
    
4/26/2014
    
4/27/2013
  
Sales
  
   
   
   
 
Upholstery segment:
  
   
   
   
 
Sales to external customers
  
$
248,956
    
$
245,381
    
$
959,118
    
$
902,454
  
Intersegment sales
    
36,749
      
33,910
      
139,932
      
127,311
  
Upholstery segment sales
    
285,705
      
279,291
      
1,099,050
      
1,029,765
  
Casegoods segment:
                                
Sales to external customers
    
24,756
      
26,357
      
97,095
      
104,387
  
Intersegment sales
    
2,485
      
2,313
      
9,657
      
8,140
  
Casegoods segment sales
    
27,241
      
28,670
      
106,752
      
112,527
  
Retail segment sales
    
78,797
      
73,634
      
298,642
      
264,723
  
Corporate and Other
    
511
      
468
      
2,463
      
2,313
  
Eliminations
    
(39,234
)
    
(36,223
)
    
(149,589
)
    
(135,451
)
Consolidated sales
  
$
353,020
    
$
345,840
    
$
1,357,318
    
$
1,273,877
  
 
                                
Operating Income (Loss)
                                
Upholstery segment
  
$
31,141
    
$
30,679
    
$
117,688
    
$
95,571
  
Casegoods segment
    
1,383
      
1,539
      
3,397
      
3,703
  
Retail segment
    
2,864
      
3,994
      
11,128
      
4,099
  
Restructuring
    
(4,954
)
    
2
      
(4,839
)
    
(2,631
)
Corporate and Other
    
(7,905
)
    
(9,093
)
    
(38,078
)
    
(33,139
)
Consolidated operating income
  
$
22,529
    
$
27,121
    
$
89,296
    
$
67,603
  

LA-Z-BOY INCORPORATED
UNAUDITED QUARTERLY FINANCIAL DATA
 
(Dollar amounts in thousands, except per share data)
                
Fiscal Quarter Ended
  
7/27/2013
    
10/26/2013
    
1/25/2014
    
4/26/2014
  
Sales
  
$
305,502
    
$
352,271
    
$
346,525
    
$
353,020
  
Cost of sales
                                
Cost of goods sold
    
203,949
      
229,727
      
224,786
      
229,563
  
Restructuring
    
87
      
(142
)
    
(60
)
    
4,954
  
Total cost of sales
    
204,036
      
229,585
      
224,726
      
234,517
  
Gross profit
    
101,466
      
122,686
      
121,799
      
118,503
  
Selling, general and administrative expense
    
86,701
      
96,568
      
95,915
      
95,974
  
Operating income
    
14,765
      
26,118
      
25,884
      
22,529
  
Interest expense
    
136
      
133
      
142
      
137
  
Interest income
    
180
      
176
      
183
      
222
  
Other income (expense), net
    
537
      
(279
)
    
849
      
943
  
Income from continuing operations before income taxes
    
15,346
      
25,882
      
26,774
      
23,557
  
Income tax expense
    
5,445
      
8,425
      
8,916
      
8,597
  
Income from continuing operations
    
9,901
      
17,457
      
17,858
      
14,960
  
Income (loss) from discontinued operations, net of tax
    
34
      
(440
)
    
(987
)
    
(2,403
)
Net income
    
9,935
      
17,017
      
16,871
      
12,557
  
Net income attributable to noncontrolling interests
    
(345
)
    
(273
)
    
(388
)
    
(318
)
Net income attributable to La-Z-Boy Incorporated
  
$
9,590
    
$
16,744
    
$
16,483
    
$
12,239
  
 
                                
Net income attributable to La-Z-Boy Incorporated:
                                
Income from continuing operations attributable to La-Z-Boy Incorporated
  
$
9,556
    
$
17,184
    
$
17,470
    
$
14,642
  
Income (loss) from discontinued operations
    
34
      
(440
)
    
(987
)
    
(2,403
)
Net income attributable to La-Z-Boy Incorporated
  
$
9,590
    
$
16,744
    
$
16,483
    
$
12,239
  
 
                                
Diluted weighted average shares
    
53,051
      
53,261
      
53,226
      
53,519
  
 
                                
Diluted net income attributable to La-Z-Boy Incorporated per share:
                                
Income from continuing operations attributable to La-Z-Boy Incorporated
  
$
0.18
    
$
0.32
    
$
0.33
    
$
0.27
  
Loss from discontinued operations
    
—
      
(0.01
)
    
(0.02
)
    
(0.04
)
Diluted net income attributable to La-Z-Boy Incorporated per share
  
$
0.18
    
$
0.31
    
$
0.31
    
$
0.23
  
 
                                
Dividends declared per share
  
$
0.04
    
$
0.04
    
$
0.06
    
$
0.06
  

LA-Z-BOY INCORPORATED
UNAUDITED QUARTERLY FINANCIAL DATA
 
(Dollar amounts in thousands, except per share data)
                
Fiscal Quarter Ended
  
7/28/2012
    
10/27/2012
    
1/26/2013
    
4/27/2013
  
Sales
  
$
286,598
    
$
306,523
    
$
334,916
    
$
345,840
  
Cost of sales
                                
Cost of goods sold
    
199,156
      
206,252
      
223,680
      
225,454
  
Restructuring
    
—
      
2,509
      
—
      
(29
)
Total cost of sales
    
199,156
      
208,761
      
223,680
      
225,425
  
Gross profit
    
87,442
      
97,762
      
111,236
      
120,415
  
Selling, general and administrative expense
    
79,950
      
87,437
      
88,448
      
93,266
  
Restructuring
    
31
      
62
      
30
      
28
  
Operating income
    
7,461
      
10,263
      
22,758
      
27,121
  
Interest expense
    
173
      
191
      
148
      
234
  
Interest income
    
121
      
116
      
197
      
186
  
Other income (expense), net
    
(99
)
    
212
      
2,403
      
692
  
Income from continuing operations before income taxes
    
7,310
      
10,400
      
25,210
      
27,765
  
Income tax expense
    
2,704
      
3,755
      
8,371
      
8,690
  
Income from continuing operations
    
4,606
      
6,645
      
16,839
      
19,075
  
Income (loss) from discontinued operations, net of tax
    
89
      
187
      
324
      
(583
)
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
  
 
                                
Net income attributable to La-Z-Boy Incorporated:
                                
Income from continuing operations attributable to La-Z-Boy Incorporated
  
$
4,309
    
$
6,432
    
$
16,740
    
$
18,891
  
Income (loss) from discontinued operations
    
89
      
187
      
324
      
(583
)
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 attributable to La-Z-Boy Incorporated per share:
                                
Income from continuing operations attributable to La-Z-Boy Incorporated
  
$
0.08
    
$
0.12
    
$
0.31
    
$
0.34
  
Income (loss) from discontinued operations
    
—
      
—
      
0.01
      
(0.01
)
Diluted net income attributable to La-Z-Boy Incorporated per share
  
$
0.08
    
$
0.12
    
$
0.32
    
$
0.33
  
 
                                
Dividends declared per share
  
$
—
    
$
—
    
$
0.04
    
$
0.04