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