ex99_2.htm

EXHIBIT 99.2

LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF INCOME

	Third Quarter Ended
(Unaudited, amounts in thousands, except per share data)	1/26/13			1/28/12
Sales	$	349,148		$	316,515
Cost of sales		235,699			216,724
Gross profit		113,449			99,791
Selling, general and administrative expense		90,171			82,771
Operating income		23,278			17,020
Interest expense		148			274
Interest income		198			138
Income from Continued Dumping and Subsidy Offset Act		—			1,415
Other income (expense), net		2,404			(89	)
Income before income taxes		25,732			18,210
Income tax expense		8,569			2,864
Net income		17,163			15,346
Net income attributable to noncontrolling interests		(99	)		(388	)
Net income attributable to La-Z-Boy Incorporated	$	17,064		$	14,958

Basic weighted average shares outstanding		52,431			51,811
Basic net income attributable to La-Z-Boy Incorporated per share	$	0.32		$	0.28

Diluted weighted average shares outstanding		53,401			52,379
Diluted net income attributable to La-Z-Boy Incorporated per share	$	0.32		$	0.28

Dividends declared per share	$	0.04			—

LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF INCOME

	Nine Months Ended
(Unaudited, amounts in thousands, except per share data)	1/26/13			1/28/12
Sales	$	972,990		$	904,288
Cost of sales		669,620			627,786
Gross profit		303,370			276,502
Selling, general and administrative expense		261,903			243,761
Operating income		41,467			32,741
Interest expense		512			1,087
Interest income		435			487
Income from Continued Dumping and Subsidy Offset Act		—			1,737
Other income, net		2,495			176
Income before income taxes		43,885			34,054
Income tax expense (benefit)		15,195			(34,820	)
Net income		28,690			68,874
Net income attributable to noncontrolling interests		(609	)		(510	)
Net income attributable to La-Z-Boy Incorporated	$	28,081		$	68,364

Basic average shares		52,327			51,928
Basic net income attributable to La-Z-Boy Incorporated per share	$	0.53		$	1.29

Diluted average shares		53,201			52,440
Diluted net income attributable to La-Z-Boy Incorporated per share	$	0.52		$	1.28

Dividends declared per share	$	0.04			—

LA-Z-BOY INCORPORATED

CONSOLIDATED BALANCE SHEET

(Unaudited, amounts in thousands)	1/26/13			4/28/12
Current assets
Cash and equivalents	$	111,981		$	152,370
Restricted cash		9,798			2,861
Receivables, net of allowance of $23,365 at 1/26/13 and $22,705 at 4/28/12		163,224			167,232
Inventories, net		159,060			143,787
Deferred income tax assets – current		22,596			19,081
Other current assets		27,901			14,669
Total current assets		494,560			500,000
Property, plant and equipment, net		120,222			114,366
Goodwill		12,837			—
Other intangible assets		5,173			3,028
Deferred income tax assets – long-term		29,926			33,649
Other long-term assets, net		49,493			34,696
Total assets	$	712,211		$	685,739

Current liabilities
Current portion of long-term debt	$	327		$	1,829
Accounts payable		50,369			56,630
Accrued expenses and other current liabilities		96,113			91,300
Total current liabilities		146,809			149,759
Long-term debt		7,302			7,931
Other long-term liabilities		79,287			80,234
Contingencies and commitments		—			—
Shareholders’ equity
Preferred shares – 5,000 authorized; none issued		—			—
Common shares, $1 par value – 150,000 authorized; 52,390 outstanding at 1/26/13 and 52,244 outstanding at 4/28/12		52,390			52,244
Capital in excess of par value		237,182			231,332
Retained earnings		213,596			189,609
Accumulated other comprehensive loss		(31,156	)		(31,281	)
Total La-Z-Boy Incorporated shareholders' equity		472,012			441,904
Noncontrolling interests		6,801			5,911
Total equity		478,813			447,815
Total liabilities and equity	$	712,211		$	685,739

LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF CASH FLOWS

	Nine Months Ended
(Unaudited, amounts in thousands)	1/26/13			1/28/12
Cash flows from operating activities
Net income	$	28,690		$	68,874
Adjustments to reconcile net income to cash provided by (used for) operating activities
Loss (gain) on disposal of assets		(36	)		119
Gain on sale of investments		(2,866	)		(315	)
Gain on deconsolidation of VIE		—			(1,125	)
Deferred income tax benefit		(745	)		(48,042	)
Restructuring		2,716			222
Provision for doubtful accounts		1,009			3,115
Depreciation and amortization		17,111			18,054
Stock-based compensation expense		8,198			4,295
Pension plan contributions		(3,480	)		(2,790	)
Change in receivables		2,457			2,548
Change in inventories		(12,355	)		2,203
Change in other assets		(5,396	)		1,972
Change in payables		(6,261	)		(785	)
Change in other liabilities		4,410			7,511
Net cash provided by operating activities		33,452			55,856

Cash flows from investing activities
Proceeds from disposal of assets		1,484			257
Capital expenditures		(21,792	)		(11,518	)
Purchases of investments		(36,353	)		(6,462	)
Proceeds from sales of investments		12,658			6,429
Cash effects on deconsolidation of VIE		—			(971	)
Acquisitions, net of cash acquired		(15,832	)		—
Change in restricted cash		(6,937	)		—
Other		—			(685	)
Net cash used for investing activities		(66,772	)		(12,950	)

Cash flows from financing activities
Payments on debt		(2,372	)		(5,708	)
Payments for debt issuance costs		—			(568	)
Stock issued for stock and employee benefit plans		1,528			718
Excess tax benefit on stock option exercises		1,117			—
Purchases of common stock		(5,217	)		(4,517	)
Dividends paid		(2,119	)		—
Net cash used for financing activities		(7,063	)		(10,075	)

Effect of exchange rate changes on cash and equivalents		(6	)		(19	)
Change in cash and equivalents		(40,389	)		32,812
Cash and equivalents at beginning of period		152,370			115,262
Cash and equivalents at end of period	$	111,981		$	148,074

LA-Z-BOY INCORPORATED

SEGMENT INFORMATION

	Third Quarter Ended						Nine Months Ended
(Unaudited, amounts in thousands)	1/26/13			1/28/12			1/26/13			1/28/12
Sales
Upholstery segment:
Sales to external customers	$	245,365		$	222,265		$	684,214		$	633,479
Intersegment sales		34,622			27,083			93,402			74,731
Upholstery segment sales		279,987			249,348			777,616			708,210
Casegoods segment:
Sales to external customers		30,496			32,735			95,841			100,255
Intersegment sales		2,115			1,493			5,907			4,047
Casegoods segment sales		32,611			34,228			101,748			104,302

Retail segment sales		72,772			58,387			191,089			159,912
VIEs, net of intercompany sales eliminations		—			2,737			—			8,840
Corporate and Other		515			391			1,845			1,802
Eliminations		(36,737	)		(28,576	)		(99,308	)		(78,778	)
Consolidated sales	$	349,148		$	316,515		$	972,990		$	904,288

Operating Income (Loss)
Upholstery segment	$	28,375		$	22,603		$	65,743		$	54,721
Casegoods segment		200			1,840			2,381			4,359
Retail segment		2,668			(646	)		105			(6,707	)
VIEs		—			596			—			959
Restructuring		(30	)		(56	)		(2,716	)		(222	)
Corporate and Other		(7,935	)		(7,317	)		(24,046	)		(20,369	)
Consolidated operating income	$	23,278		$	17,020		$	41,467		$	32,741