EX-99.2 3 a14-24685_1ex99d2.htm EX-99.2

Exhibit 99.2

 

LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF INCOME

 

 

 

Quarter Ended

 

(Unaudited, amounts in thousands, except per share data)

 

10/25/14

 

10/26/13

 

Sales

 

$

365,601

 

$

352,271

 

Cost of sales

 

 

 

 

 

Cost of goods sold

 

235,716

 

229,727

 

Restructuring

 

(10

)

(142

)

Total cost of sales

 

235,706

 

229,585

 

Gross profit

 

129,895

 

122,686

 

Selling, general and administrative expense

 

99,683

 

96,568

 

Restructuring

 

20

 

 

Operating income

 

30,192

 

26,118

 

Interest expense

 

145

 

133

 

Interest income

 

233

 

176

 

Other income (expense), net

 

152

 

(279

)

Income from continuing operations before income taxes

 

30,432

 

25,882

 

Income tax expense

 

10,743

 

8,425

 

Income from continuing operations

 

19,689

 

17,457

 

Income (loss) from discontinued operations, net of tax

 

285

 

(440

)

Net income

 

19,974

 

17,017

 

Net income attributable to noncontrolling interests

 

(445

)

(273

)

Net income attributable to La-Z-Boy Incorporated

 

$

19,529

 

$

16,744

 

 

 

 

 

 

 

Net income attributable to La-Z-Boy Incorporated:

 

 

 

 

 

Income from continuing operations attributable to La-Z-Boy Incorporated

 

$

19,244

 

$

17,184

 

Income (loss) from discontinued operations

 

285

 

(440

)

Net income attributable to La-Z-Boy Incorporated

 

$

19,529

 

$

16,744

 

 

 

 

 

 

 

Basic average shares

 

52,279

 

52,537

 

Basic net income attributable to La-Z-Boy Incorporated per share:

 

 

 

 

 

Income from continuing operations attributable to La-Z-Boy Incorporated

 

$

0.37

 

$

0.33

 

Income (loss) from discontinued operations

 

 

(0.01

)

Basic net income attributable to La-Z-Boy Incorporated per share

 

$

0.37

 

$

0.32

 

 

 

 

 

 

 

Diluted average shares

 

52,723

 

53,261

 

Diluted net income attributable to La-Z-Boy Incorporated per share:

 

 

 

 

 

Income from continuing operations attributable to La-Z-Boy Incorporated

 

$

0.36

 

$

0.32

 

Income (loss) from discontinued operations

 

0.01

 

(0.01

)

Diluted net income attributable to La-Z-Boy Incorporated per share

 

$

0.37

 

$

0.31

 

 

 

 

 

 

 

Dividends declared per share

 

$

0.06

 

$

0.04

 

 



 

LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF INCOME

 

 

 

Six Months Ended

 

(Unaudited, amounts in thousands, except per share data)

 

10/25/14

 

10/26/13

 

Sales

 

$

692,581

 

$

657,773

 

Cost of sales

 

 

 

 

 

Cost of goods sold

 

451,547

 

433,676

 

Restructuring

 

(367

)

(55

)

Total cost of sales

 

451,180

 

433,621

 

Gross profit

 

241,401

 

224,152

 

Selling, general and administrative expense

 

194,698

 

183,269

 

Restructuring

 

20

 

 

Operating income

 

46,683

 

40,883

 

Interest expense

 

277

 

269

 

Interest income

 

435

 

356

 

Other income (expense), net

 

(106

)

258

 

Income from continuing operations before income taxes

 

46,735

 

41,228

 

Income tax expense

 

16,498

 

13,870

 

Income from continuing operations

 

30,237

 

27,358

 

Income (loss) from discontinued operations, net of tax

 

2,782

 

(406

)

Net income

 

33,019

 

26,952

 

Net income attributable to noncontrolling interests

 

(409

)

(618

)

Net income attributable to La-Z-Boy Incorporated

 

$

32,610

 

$

26,334

 

 

 

 

 

 

 

Net income attributable to La-Z-Boy Incorporated:

 

 

 

 

 

Income from continuing operations attributable to La-Z-Boy Incorporated

 

$

29,828

 

$

26,740

 

Income (loss) from discontinued operations

 

2,782

 

(406

)

Net income attributable to La-Z-Boy Incorporated

 

$

32,610

 

$

26,334

 

 

 

 

 

 

 

Basic average shares

 

52,235

 

52,440

 

Basic net income attributable to La-Z-Boy Incorporated per share:

 

 

 

 

 

Income from continuing operations attributable to La-Z-Boy Incorporated

 

$

0.57

 

$

0.51

 

Income (loss) from discontinued operations

 

0.05

 

(0.01

)

Basic net income attributable to La-Z-Boy Incorporated per share

 

$

0.62

 

$

0.50

 

 

 

 

 

 

 

Diluted average shares

 

52,662

 

53,176

 

Diluted net income attributable to La-Z-Boy Incorporated per share:

 

 

 

 

 

Income from continuing operations attributable to La-Z-Boy Incorporated

 

$

0.56

 

$

0.50

 

Income (loss) from discontinued operations

 

0.06

 

(0.01

)

Diluted net income attributable to La-Z-Boy Incorporated per share

 

$

0.62

 

$

0.49

 

 

 

 

 

 

 

Dividends declared per share

 

$

0.12

 

$

0.08

 

 



 

LA-Z-BOY INCORPORATED

CONSOLIDATED BALANCE SHEET

 

(Unaudited, amounts in thousands)

 

10/25/14

 

4/26/14

 

Current assets

 

 

 

 

 

Cash and equivalents

 

$

115,325

 

$

149,661

 

Restricted cash

 

5,285

 

12,572

 

Receivables, net of allowance of $11,288 at 10/25/14 and $12,368 at 4/26/14

 

156,403

 

152,614

 

Inventories, net

 

158,326

 

147,009

 

Deferred income taxes — current

 

15,566

 

15,037

 

Business held for sale

 

1,407

 

4,290

 

Other current assets

 

43,117

 

41,490

 

Total current assets

 

495,429

 

522,673

 

Property, plant and equipment, net

 

158,596

 

127,535

 

Goodwill

 

13,923

 

13,923

 

Other intangible assets

 

4,544

 

4,544

 

Deferred income taxes — long-term

 

33,227

 

32,430

 

Other long-term assets, net

 

65,007

 

70,190

 

Total assets

 

$

770,726

 

$

771,295

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

Current portion of long-term debt

 

$

353

 

$

7,497

 

Accounts payable

 

55,419

 

56,177

 

Business held for sale

 

442

 

832

 

Accrued expenses and other current liabilities

 

103,198

 

102,876

 

Total current liabilities

 

159,412

 

167,382

 

Long-term debt

 

85

 

277

 

Other long-term liabilities

 

79,303

 

73,918

 

Contingencies and commitments

 

 

 

Shareholders’ equity

 

 

 

 

 

Preferred shares — 5,000 authorized; none issued

 

 

 

Common shares, $1 par value — 150,000 authorized; 51,892 outstanding at 10/25/14 and 51,981 outstanding at 4/26/14

 

51,892

 

51,981

 

Capital in excess of par value

 

266,959

 

262,901

 

Retained earnings

 

235,400

 

238,384

 

Accumulated other comprehensive loss

 

(30,544

)

(31,380

)

Total La-Z-Boy Incorporated shareholders’ equity

 

523,707

 

521,886

 

Noncontrolling interests

 

8,219

 

7,832

 

Total equity

 

531,926

 

529,718

 

Total liabilities and equity

 

$

770,726

 

$

771,295

 

 



 

LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF CASH FLOWS

 

 

 

Six Months Ended

 

(Unaudited, amounts in thousands)

 

10/25/14

 

10/26/13

 

Cash flows from operating activities

 

 

 

 

 

Net income

 

$

33,019

 

$

26,952

 

Adjustments to reconcile net income to cash provided by (used for) operating activities

 

 

 

 

 

Restructuring

 

(332

)

(55

)

Deferred income tax benefit

 

(1,799

)

(391

)

Provision for doubtful accounts

 

(1,113

)

(1,994

)

Depreciation and amortization

 

10,996

 

11,661

 

Equity-based compensation expense

 

5,047

 

5,671

 

Change in receivables

 

(2,135

)

1,298

 

Change in inventories

 

(11,006

)

(10,561

)

Change in other assets

 

6,253

 

(1,920

)

Change in payables

 

(785

)

3,772

 

Change in other liabilities

 

(6,377

)

(2,020

)

Net cash provided by operating activities

 

31,768

 

32,413

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Proceeds from disposal of assets

 

6,534

 

2,241

 

Capital expenditures

 

(40,580

)

(14,323

)

Purchases of investments

 

(24,224

)

(23,180

)

Proceeds from sales of investments

 

17,827

 

18,196

 

Change in restricted cash

 

7,287

 

120

 

Net cash used for investing activities

 

(33,156

)

(16,946

)

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

Payments on debt

 

(7,358

)

(263

)

Stock issued for stock and employee benefit plans

 

161

 

2,983

 

Excess tax benefit on stock option exercises

 

252

 

5,228

 

Purchases of common stock

 

(19,654

)

(13,681

)

Dividends paid

 

(6,274

)

(4,214

)

Net cash used for financing activities

 

(32,873

)

(9,947

)

 

 

 

 

 

 

Effect of exchange rate changes on cash and equivalents

 

(75

)

(360

)

Change in cash and equivalents

 

(34,336

)

5,160

 

Cash and equivalents at beginning of period

 

149,661

 

131,085

 

Cash and equivalents at end of period

 

$

115,325

 

$

136,245

 

 

 

 

 

 

 

Supplemental disclosure of non-cash investing activities

 

 

 

 

 

Capital expenditures included in payables

 

$

5,339

 

$

 

 



 

LA-Z-BOY INCORPORATED

SEGMENT INFORMATION

 

 

 

Quarter Ended

 

Six Months Ended

 

(Unaudited, amounts in thousands)

 

10/25/14

 

10/26/13

 

10/25/14

 

10/26/13

 

Sales

 

 

 

 

 

 

 

 

 

Upholstery segment:

 

 

 

 

 

 

 

 

 

Sales to external customers

 

$

255,044

 

$

252,123

 

$

482,200

 

$

467,670

 

Intersegment sales

 

42,223

 

34,881

 

77,926

 

65,403

 

Upholstery segment sales

 

297,267

 

287,004

 

560,126

 

533,073

 

Casegoods segment:

 

 

 

 

 

 

 

 

 

Sales to external customers

 

25,455

 

26,252

 

51,408

 

48,922

 

Intersegment sales

 

3,433

 

2,705

 

6,403

 

4,834

 

Casegoods segment sales

 

28,888

 

28,957

 

57,811

 

53,756

 

 

 

 

 

 

 

 

 

 

 

Retail segment sales

 

84,589

 

73,359

 

157,494

 

139,633

 

Corporate and Other

 

513

 

537

 

1,479

 

1,548

 

Eliminations

 

(45,656

)

(37,586

)

(84,329

)

(70,237

)

Consolidated sales

 

$

365,601

 

$

352,271

 

$

692,581

 

$

657,773

 

 

 

 

 

 

 

 

 

 

 

Operating Income (Loss)

 

 

 

 

 

 

 

 

 

Upholstery segment

 

$

32,607

 

$

32,701

 

$

54,624

 

$

54,987

 

Casegoods segment

 

2,995

 

1,170

 

4,520

 

1,620

 

Retail segment

 

3,682

 

3,251

 

3,997

 

5,177

 

Restructuring

 

(10

)

142

 

347

 

55

 

Corporate and Other

 

(9,082

)

(11,146

)

(16,805

)

(20,956

)

Consolidated operating income

 

$

30,192

 

$

26,118

 

$

46,683

 

$

40,883