EX-99.2 4 v203533_ex99-2.htm Unassociated Document

 
EXHIBIT 99.2
LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF OPERATIONS

   
Second Quarter Ended
  
(Unaudited, amounts in thousands, except per share data)
  
10/23/10
    
10/24/09
  
Sales
   $ 292,982     $ 300,707  
Cost of sales
                
Cost of goods sold
     207,938       205,602  
Restructuring
     (62 )     663  
Total cost of sales
     207,876       206,265  
Gross profit
     85,106       94,442  
Selling, general and administrative
     79,657       84,619  
Restructuring
     110       520  
Operating income
     5,339       9,303  
Interest expense
     592       831  
Interest income
     223       199  
Other income (expense), net
     (418 )     236  
Earnings before income taxes
     4,552       8,907  
Income tax expense
     1,381       3,529  
Net income
     3,171       5,378  
Net loss attributable to noncontrolling interests
     774       588  
Net income attributable to La-Z-Boy Incorporated
   $ 3,945     $ 5,966  
                 
Basic average shares
     51,855       51,527  
Basic net income attributable to La-Z-Boy Incorporated per share
   $ 0.07     $ 0.11  
                 
Diluted average shares
     52,214       51,755  
Diluted net income attributable to La-Z-Boy Incorporated per share
   $ 0.07     $ 0.11  
 
Prior period amounts included in these financial statements have been revised to incorporate all out-of-period corrections.
 
 
 
 
 
LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF OPERATIONS

   
Six Months Ended
  
(Unaudited, amounts in thousands, except per share data)
  
10/23/10
    
10/24/09
  
Sales
   $ 556,296     $ 563,378  
Cost of sales
                
Cost of goods sold
     398,439       387,715  
Restructuring
     (83 )     1,399  
Total cost of sales
     398,356       389,114  
Gross profit
     157,940       174,264  
Selling, general and administrative
     153,976       162,535  
Restructuring
     275       821  
Operating income
     3,689       10,908  
Interest expense
     1,182       1,811  
Interest income
     466       475  
Other income (expense), net
     (69 )     837  
Earnings before income taxes
     2,904       10,409  
Income tax expense
     675       3,526  
Net income
     2,229       6,883  
Net loss attributable to noncontrolling interests
     1,500       660  
Net income attributable to La-Z-Boy Incorporated
   $ 3,729     $ 7,543  
                 
Basic average shares
     51,820       51,503  
Basic net income attributable to La-Z-Boy Incorporated per share
   $ 0.07     $ 0.14  
                 
Diluted average shares
     52,228       51,551  
Diluted net income attributable to La-Z-Boy Incorporated per share
   $ 0.07     $ 0.14  
 
Prior period amounts included in these financial statements have been revised to incorporate all out-of-period corrections.
 
 
 
 

LA-Z-BOY INCORPORATED
CONSOLIDATED BALANCE SHEET

(Unaudited, amounts in thousands)
  
10/23/10
    
04/24/10
  
Current assets
            
Cash and equivalents
   $ 83,656     $ 108,427  
Receivables, net of allowance of $22,596 at 10/23/10 and $20,258 at 04/24/10
     168,974       165,001  
Inventories, net
     140,703       132,480  
Deferred income taxes – current
     2,305       2,305  
Other current assets
     20,807       18,862  
Total current assets
     416,445       427,075  
Property, plant and equipment, net
     131,070       138,857  
Trade names
     3,100       3,100  
Deferred income taxes – long-term
     464       458  
Other long-term assets
     35,442       38,293  
Total assets
   $ 586,521     $ 607,783  
                 
Current liabilities
                
Current portion of long-term debt
   $ 5,143     $ 1,066  
Accounts payable
     46,773       54,718  
Accrued expenses and other current liabilities
     77,626       91,523  
Total current liabilities
     129,542       147,307  
Long-term debt
     40,522       46,917  
Other long-term liabilities
     69,518       70,445  
Contingencies and commitments
     —       —  
Equity
                
La-Z-Boy Incorporated shareholders’ equity:
                
Common shares, $1 par value
     51,865       51,770  
Capital in excess of par value
     200,772       201,873  
Retained earnings
     114,213       106,466  
Accumulated other comprehensive loss
     (19,285 )     (20,284 )
Total La-Z-Boy Incorporated shareholders' equity
     347,565       339,825  
Noncontrolling interests
     (626 )     3,289  
Total equity
     346,939       343,114  
Total liabilities and equity
   $ 586,521     $ 607,783  
 
Prior period amounts included in these financial statements have been revised to incorporate all out-of-period corrections.
 
 
 
 


LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF CASH FLOWS

   
Second Quarter Ended
    
Six Months Ended
  
(Unaudited, amounts in thousands)
  
10/23/10
    
10/24/09
    
10/23/10
    
10/24/09
  
Cash flows from operating activities
                        
Net income
   $ 3,171     $ 5,378     $ 2,229     $ 6,883  
Adjustments to reconcile net income to cash provided by (used for) operating activities
                                
(Gain) loss on sale of assets
     127       (75 )     154       (88 )
Restructuring
     48       1,183       192       2,220  
Provision for doubtful accounts
     974       2,152       1,888       4,514  
Depreciation and amortization
     5,658       6,300       11,464       12,575  
Stock-based compensation expense
     1,329       1,621       2,356       2,628  
Change in receivables
     (18,983 )     (26,460 )     (2,034 )     (17,538 )
Change in inventories
     (3,783 )     3,956       (12,790 )     2,075  
Change in other assets
     (3,232 )     11,075       (3,528 )     6,045  
Change in payables
     3,474       7,073       (7,193 )     4,747  
Change in other liabilities
     4,486       10,025       (11,558 )     11,944  
Change in deferred taxes
     (30 )     (8 )     7       —  
Total adjustments
     (9,932 )     16,842       (21,042 )     29,122  
     Net cash provided by (used for) operating activities
     (6,761 )     22,220       (18,813 )     36,005  
                                 
Cash flows from investing activities
                                
Proceeds from disposals of assets
     282       230       304       1,916  
Capital expenditures
     (2,552 )     (1,340 )     (4,987 )     (2,779 )
Purchases of investments
     (2,297 )     (1,338 )     (6,630 )     (2,537 )
Proceeds from sales of investments
     1,768       1,445       6,121       4,109  
Change in restricted cash
     —       —       —       17,007  
Other
     (31 )     29       (43 )     14  
Net cash provided by (used for) investing activities
     (2,830 )     (974 )     (5,235 )     17,730  
                                 
Cash flows from financing activities
                                
Proceeds from debt
     10,218       10,213       20,456       20,673  
Payments on debt
     (10,316 )     (10,408 )     (20,882 )     (32,567 )
Stock issued from stock plans
     34       —       58       —  
Net cash used for financing activities
     (64 )     (195 )     (368 )     (11,894 )
                                 
Effect of exchange rate changes on cash and equivalents
     310       (347 )     277       (168 )
Change in cash and equivalents
     (9,345 )     20,704       (24,139 )     41,673  
Cash reduction upon deconsolidation of VIE
     —       —       (632 )     —  
Cash and equivalents at beginning of period
     93,001       38,339       108,427       17,370  
Cash and equivalents at end of period
   $ 83,656     $ 59,043     $ 83,656     $ 59,043  
                                 
Cash paid (net of refunds) during period – income taxes
   $ 3,395     $ (13,348 )   $ 5,856     $ (13,082 )
Cash paid during period – interest
   $ 538     $ 563     $ 1,075     $ 1,288  
 
Prior period amounts included in these financial statements have been revised to incorporate all out-of-period corrections.
 
 
 
 
 
LA-Z-BOY INCORPORATED
SEGMENT INFORMATION
 
   
Second Quarter Ended
    
Six Months Ended
  
 (Unaudited, amounts in thousands)
  
10/23/10
    
10/24/09
    
10/23/10
    
10/24/09
  
Sales
                        
Upholstery Group
   $ 224,878     $ 232,780     $ 426,812     $ 429,472  
Casegoods Group
     39,509       37,302       76,359       73,167  
Retail Group
     39,246       38,014       74,553       73,976  
VIEs
     7,744       12,248       15,286       23,987  
Corporate and Other
     449       1,679       826       3,540  
Eliminations
     (18,844 )     (21,316 )     (37,540 )     (40,764 )
     Consolidated Sales
   $ 292,982     $ 300,707     $ 556,296     $ 563,378  
                                 
Operating Income (Loss)
                                
Upholstery Group
   $ 17,055     $ 25,328     $ 27,112     $ 41,051  
Casegoods Group
     1,376       (184 )     2,951       (305 )
Retail Group
     (4,360 )     (5,301 )     (9,284 )     (10,969 )
VIEs
     (1,104 )     (933 )     (2,712 )     (1,126 )
Corporate and Other
     (7,580 )     (8,424 )     (14,186 )     (15,523 )
Restructuring
     (48 )     (1,183 )     (192 )     (2,220 )
Consolidated Operating Income
   $ 5,339     $ 9,303     $ 3,689     $ 10,908  
 
Prior period amounts included in these financial statements have been revised to incorporate all out-of-period corrections.