EX-99.2 4 v140426_ex99-2.htm
 
EXHIBIT 99.2

LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF OPERATIONS

   
Third Quarter Ended
  
(Unaudited, amounts in thousands, except per share data)
  
01/24/09
    
01/26/08
  
Sales
   $ 288,576     $ 373,081  
Cost of sales
                
Cost of goods sold
     207,356       265,078  
Restructuring
     1,664       (632 )
Total cost of sales
     209,020       264,446  
Gross profit
     79,556       108,635  
Selling, general and administrative
     94,092       104,672  
Write-down of long-lived assets
     7,036       —  
Write-down of intangibles
     45,977       —  
Restructuring
     741       877  
Operating income (loss)
     (68,290 )     3,086  
Interest expense
     1,386       2,148  
Interest income
     323       1,134  
Income from Continued Dumping and Subsidy Offset Act, net
     8,124       7,147  
Other income (expense), net
     (7,433 )     3,785  
Income (loss) from continuing operations before income taxes
     (68,662 )     13,004  
Income tax (benefit) expense
     (4,280 )     3,876  
Income (loss) from continuing operations
     (64,382 )     9,128  
Income from discontinued operations (net of tax)
     —       384  
Net income (loss)
   $ (64,382 )   $ 9,512  
                 
Basic average shares
     51,475       51,417  
Basic income (loss) from continuing operations per share
   $ (1.25 )   $ 0.18  
Discontinued operations per share (net of tax)
     —       0.01  
Basic net income (loss) per share
   $ (1.25 )   $ 0.19  
                 
Diluted average shares
     51,475       51,590  
Diluted income (loss) from continuing operations per share
   $ (1.25 )   $ 0.18  
Discontinued operations per share (net of tax)
     —       —  
Diluted net income (loss) per share
   $ (1.25 )   $ 0.18  
Dividends paid per share
   $ 0.02     $ 0.12  
 
 
LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF OPERATIONS

   
Nine Months Ended
  
(Unaudited, amounts in thousands, except per share data)
  
01/24/09
    
01/26/08
  
Sales
   $ 942,176     $ 1,082,911  
Cost of sales
                
Cost of goods sold
     685,151       790,879  
Restructuring
     9,696       2,447  
Total cost of sales
     694,847       793,326  
Gross profit
     247,329       289,585  
Selling, general and administrative
     287,873       297,278  
Write-down of long-lived assets
     7,036       —  
Write-down of intangibles
     47,677       5,809  
Restructuring
     2,208       2,446  
Operating loss
     (97,465 )     (15,948 )
Interest expense
     4,532       6,365  
Interest income
     1,885       3,039  
Income from Continued Dumping and Subsidy Offset Act, net
     8,124       7,147  
Other income (expense), net
     (7,974 )     4,701  
Loss from continuing operations before income taxes
     (99,962 )     (7,426 )
Income tax expense (benefit)
     26,708       (4,359 )
Loss from continuing operations
     (126,670 )     (3,067 )
Loss from discontinued operations (net of tax)
     —       (6,050 )
Net loss
   $ (126,670 )   $ (9,117 )
                 
Basic average shares
     51,454       51,402  
Basic loss from continuing operations per share
   $ (2.46 )   $ (0.06 )
Discontinued operations per share (net of tax)
     —       (0.12 )
Basic net loss per share
   $ (2.46 )   $ (0.18 )
                 
Diluted average shares
     51,454       51,402  
Diluted loss from continuing operations per share
   $ (2.46 )   $ (0.06 )
Discontinued operations per share (net of tax)
     —       (0.12 )
Diluted net loss per share
   $ (2.46 )   $ (0.18 )
Dividends paid per share
   $ 0.10     $ 0.36  
 
 
LA-Z-BOY INCORPORATED
CONSOLIDATED BALANCE SHEET

(Unaudited, amounts in thousands)
  
01/24/09
    
04/26/08
  
Current assets
            
Cash and equivalents
   $ 18,686     $ 14,982  
Receivables, net of allowance of $31,045 in 2009 and $17,942 in 2008
     153,401       200,422  
Inventories, net
     172,259       178,361  
Deferred income taxes—current
     3,397       12,398  
Other current assets
     25,458       21,325  
Total current assets
     373,201       427,488  
Property, plant and equipment, net
     156,341       171,001  
Deferred income taxes—long term
     1,292       26,922  
Goodwill
     5,097       47,233  
Trade names
     3,100       9,006  
Other long-term assets, net of allowance of $4,723 in 2009 and $2,801 in 2008
     66,912       87,220  
Total assets
   $ 605,943     $ 768,870  
                 
Current liabilities
                
Current portion of long-term debt
   $ 9,547     $ 4,792  
Accounts payable
     49,821       56,421  
Accrued expenses and other current liabilities
     89,263       102,700  
Total current liabilities
     148,631       163,913  
Long-term debt
     80,828       99,578  
Deferred income taxes—long term
     3,995       —  
Other long-term liabilities
     52,121       54,783  
Shareholders' equity
                
Common shares, $1 par value
     51,478       51,428  
Capital in excess of par value
     204,735       209,388  
Retained earnings
     65,693       190,215  
Accumulated other comprehensive loss
     (1,538 )     (435 )
Total shareholders' equity
     320,368       450,596  
Total liabilities and shareholders' equity
   $ 605,943     $ 768,870  
 
 
LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF CASH FLOWS

   
Third Quarter Ended
    
Nine Months Ended
  
(Unaudited, amounts in thousands)
  
01/24/09
    
01/26/08
    
01/24/09
    
01/26/08
  
Cash flows from operating activities
                        
Net income (loss)
   $ (64,382 )   $ 9,512     $ (126,670 )   $ (9,117 )
Adjustments to reconcile net income (loss) to cash provided by operating activities
                                
Gain on sale of assets
     (37 )     —       (2,707 )     —  
(Gain) loss on the sale of discontinued operations (net of tax)
     —       (96 )     —       3,894  
Write-down of businesses held for sale (net of  tax)
     —       —       —       2,159  
Write-down of long-lived assets
     7,036       —       7,036       —  
Write-down of intangibles
     45,977       —       47,677       5,809  
Write-down of investments
     5,140       —       5,140       —  
Restructuring
     2,405       245       11,904       4,893  
Provision for doubtful accounts
     9,439       2,754       18,439       6,373  
Depreciation and amortization
     5,827       6,193       17,770       18,506  
Stock-based compensation expense
     1,012       1,303       2,867       3,165  
Change in receivables
     31,405       53       23,314       9,241  
Change in inventories
     (3,463 )     8,645       7,380       17,897  
Change in payables
     (8,351 )     9,161       (6,424 )     (5,107 )
Change in other assets and liabilities
     640       147       (25,885 )     (18,650 )
Change in deferred taxes
     (4,658 )     3,676       38,180       (2,470 )
Total adjustments
     92,372       32,081       144,691       45,710  
Net cash provided by operating activities
     27,990       41,593       18,021       36,593  
                                 
Cash flows from investing activities
                                
Proceeds from disposals of assets
     45       456       7,831       7,738  
Proceeds from sale of discontinued operations
     —       150       —       4,169  
Capital expenditures
     (4,089 )     (5,239 )     (14,079 )     (20,838 )
Purchases of investments
     (1,630 )     (15,807 )     (10,595 )     (29,077 )
Proceeds from sales of investments
     10,854       15,649       21,881       30,242  
Change in other long-term assets
     (575 )     1,701       (346 )     2,086  
Net cash provided by (used for) investing activities
     4,605       (3,090 )     4,692       (5,680 )
                                 
Cash flows from financing activities
                                
Proceeds from debt
     15,992       574       55,458       1,391  
Payments on debt
     (43,752 )     (974 )     (69,039 )     (2,212 )
Stock issued/canceled for stock and employee benefit plans
     —       (13 )     —       (129 )
Dividends paid
     (1,037 )     (6,229 )     (5,188 )     (18,670 )
Net cash used for financing activities
     (28,797 )     (6,642 )     (18,769 )     (19,620 )
                                 
Effect of exchange rate changes on cash and equivalents
     (228 )     (1,378 )     (871 )     161  
Change in cash and equivalents
     3,570       30,483       3,073       11,454  
Cash and equivalents at beginning of period
     15,116       32,692       15,613       51,721  
Cash and equivalents at end of period
   $ 18,686     $ 63,175     $ 18,686     $ 63,175  
                                 
Cash paid (net of refunds) during period – income taxes
   $ (660 )   $ (4,336 )   $ (456 )   $ (443 )
Cash paid during period - interest
   $ 1,337     $ 2,652     $ 3,750     $ 6,057  
 
 
LA-Z-BOY INCORPORATED
SEGMENT INFORMATION
 
   
Third Quarter Ended
    
Nine Months Ended
  
(Unaudited, amounts in thousands)
  
01/24/09
(13 weeks)
    
01/26/08
(13 weeks)
    
01/24/09
(39 weeks)
    
01/26/08
(39 weeks)
  
Sales
                        
Upholstery Group
   $ 199,200     $ 282,453     $ 684,252     $ 806,959  
Casegoods Group
     42,116       52,660       138,710       165,126  
Retail Group
     40,497       49,884       122,408       141,278  
VIEs/Eliminations
     6,763       (11,916 )     (3,194 )     (30,452 )
Consolidated
   $ 288,576     $ 373,081     $ 942,176     $ 1,082,911  
                                 
Operating income (loss)
                                
Upholstery Group
   $ (1,938 )   $ 19,467     $ 16,037     $ 47,370  
Casegoods Group
     (313 )     2,222       1,819       8,399  
Retail Group
     (7,108 )     (8,507 )     (27,509 )     (27,700 )
Corporate and Other*
     (3,513 )     (9,851 )     (21,195 )     (33,315 )
Long-lived asset write-down
     (7,036 )     —       (7,036 )     —  
Intangible write-down
     (45,977 )     —       (47,677 )     (5,809 )
Restructuring
     (2,405 )     (245 )     (11,904 )     (4,893 )
      Consolidated
   $ (68,290 )   $ 3,086     $ (97,465 )   $ (15,948 )
 
*Variable Interest Entities ("VIEs") are included in corporate and other.