MONROE, Mich. - La-Z-Boy Incorporated (NYSE: LZB) today reported its operating results for the fiscal 2014 third quarter ended January 25, 2014.
Fiscal 2014 third-quarter:
•Consolidated sales for the third quarter increased 3.0% compared with the fiscal 2013 third quarter (results have been reclassified to reflect the treatment of Bauhaus, a component of La‑Z‑Boy's Upholstery Segment, as a discontinued operation);
•Same-store written sales for the La-Z-Boy Furniture Galleries® store network increased 3.6% for the third quarter, on top of an 11.8% increase in last year's third quarter;
•Consolidated operating income increased to $25.4 million from $22.8 million;
•The upholstery segment posted an 11.3% operating margin versus 10.3% in last year's third quarter;
•The retail segment posted an operating margin of 3.8% compared with 3.7% in last year's third quarter; and
•The company generated cash from operating activities of $30.4 million during the quarter.
Sales for the fiscal 2014 third quarter were $350.4 million, up 3.0% compared with the prior year's third quarter. The company reported net income from continuing operations attributable to La-Z-Boy Incorporated of $17.2 million, or $0.32 per diluted share, compared with last year's third-quarter results of $16.8 million, or $0.31 per diluted share, which included $0.04 relating to gains on the sale of investments and a related tax benefit.
Kurt L. Darrow, Chairman, President and Chief Executive Officer of La-Z-Boy, said, "We believe the fundamental pace of our business and ability to improve our profitability on sales growth remains steady and unchanged. During the third quarter, however, weather conditions did have some impact on sales, production and deliveries. Moving forward, we are confident we have the right plan in place to grow the company through our 4-4-5 store strategy while enjoying the benefits of our lean manufacturing structure. At the same time, our integrated retail model is delivering results and our sales, merchandising and marketing teams are driving market share gains."
Wholesale Segments
For the fiscal 2014 third quarter, sales in the company's upholstery segment increased 3.4% to $280.3 million from $271.1 million in the prior year's third quarter. The operating margin for the quarter increased to 11.3% compared with 10.3% in last year's third quarter. Due to the company's agreement in principle to sell its Bauhaus operating unit during the third quarter of fiscal 2014, the reported results reflect the treatment of Bauhaus as a discontinued operation. Sales in the casegoods segment for the fiscal 2014 third quarter were $29.6 million, down 9.1% from $32.6 million in the fiscal 2013 third quarter, and the operating margin for the segment declined to (0.1%) from 0.6% in last year's third quarter.
Darrow commented, "During the period, we increased our investment in the Live life comfortably marketing campaign, particularly before the holiday season. The advertising platform continues to expand consumers' perceptions of what the brand has to offer in terms of a broad and stylish product line. Growth for our stationary product category remains at a faster pace than our core recliner business, although we experienced a solid increase in recliner sales this quarter, as well as sales of our power offering. This month, we are beginning to deliver the Urban Attitudes collection, which we introduced at the October Furniture Market. It was well received by dealers and we look forward to it making its way onto retail floors. On the manufacturing side, our production facilities are operating efficiently and we are realizing solid productivity gains."
Darrow continued, "Our casegoods business remains challenged in this macroeconomic environment as consumers postpone large wood room group purchases, particularly formal collections. To address this, we are refreshing both the Kincaid and American Drew product lines with more transitional and casual room groups to appeal to a broader demographic. These groups are beginning to ship this quarter. Additionally, the Direct Container Program, which was introduced at the October Furniture Market, will begin product deliveries in our fourth quarter. It will allow dealers to mix Kincaid, American Drew and Lea product into one container, and will reduce delivery times while improving transportation costs, especially to the West Coast."
Retail Segment
For the fiscal 2014 third quarter, retail delivered sales were $80.2 million, up 10.2% compared with the third quarter of last year. On the core base of 90 stores included in last year's third quarter, sales for the segment increased 2.3% versus the prior-year quarter. The retail segment posted an operating profit of $3.1 million, or an operating margin of 3.8% for the quarter. This compares with an operating profit of $2.7 million, or an operating margin of 3.7% in last year's third quarter.
Darrow stated, "Our retail segment continues to strengthen its performance and recorded its 20th consecutive quarterly improvement over prior-year results, despite the effect of weather issues, mostly in January, along the east coast and throughout the Midwest, where the majority of the company-owned stores are located. During the quarter, we closed on the acquisition of two stores in Youngstown, Ohio. Much of our sales growth for the quarter was driven by recently acquired and new stores with operating and other associated start-up costs impacting our profitability in the segment for the period."
La-Z-Boy Furniture Galleries® Stores Network
System-wide, for the third quarter of fiscal 2014, including company-owned and independent-licensed stores, same-store written sales, which the company tracks as an indicator of retail activity, were up 3.6% versus last year's third quarter.
Total written sales, which include new and closed stores, were up 3.9% for the third quarter. At the end of the third quarter, the La-Z-Boy Furniture Galleries® store system was composed of 312 stand-alone stores.
Darrow stated, "We believe the overall cadence of our business has not changed. While markets in the northeast and Midwest were challenged during the period, written sales in warmer climates and in those markets not impacted by severe weather conditions continued to exhibit strength. Accordingly, we are continuing to invest in our business to drive growth, with a focus on the execution of our 4-4-5 store strategy, where we aim to have 400 La‑Z‑Boy Furniture Galleries® stores, averaging $4 million in revenue per store, in five years. Given the strength of our brand and our strong network of La-Z-Boy Furniture Galleries® stores, we believe our best strategy to grow both sales and profit lies in fully penetrating North America with La-Z-Boy stores. We expect that the company and our independent dealers will close fiscal 2014 with 20 to 25 projects executed. In fiscal 2015, we expect to complete 30 to 35 projects, which will include new stores, remodels and relocations. The speed with which we execute this strategy will be governed by our ability to find the right locations with financially appropriate lease rates. We estimate that it will take five years to build out the store network, although we are building momentum with the strategy."
In the fiscal 2014 third quarter, the La-Z-Boy Furniture Galleries® store network, including company-owned and independent-licensed stores, opened three new stores, and closed five. At the end of the quarter, 26 of the total 312 stores were in the new concept design format introduced in 2011.
Balance Sheet and Cash Flow
For the quarter, the company generated $30.4 million in cash flows from operating activities and ended the period with $140.1 million in cash and cash equivalents, $37.9 million in investments to enhance returns on cash and $12.6 million in restricted cash. The company purchased approximately 0.2 million shares of stock in the open market under its existing authorized share purchase program. The company has 3.3 million shares remaining to purchase.
Dividend
The company's Board of Directors declared a regular quarterly cash dividend of $0.06 per share on the company's common stock. The dividend will be paid on March 10, 2014, to shareholders of record as of February 28, 2014.
Business Outlook
Darrow stated, "We remain optimistic about our ability to continue to grow profitably in the future. The cadence of our business remains strong, particularly as we head into the fourth quarter, which is historically our largest volume period, and roll out our Urban Attitudes collections. Our integrated retail strategy has proven to be the right one, and we are building on it with our store expansion program. We will continue to make investments in the enterprise to grow, prosper and return value to shareholders."
LA-Z-BOY INCORPORATED |
||||
CONSOLIDATED STATEMENT OF INCOME |
||||
Third Quarter Ended |
||||
(Unaudited, amounts in thousands, except per share data) |
1/25/14 |
1/26/13 |
||
Sales |
$350,375 |
$340,211 |
||
Cost of sales |
228,186 |
227,956 |
||
Gross profit |
122,189 |
112,255 |
||
Selling, general and administrative expense |
96,740 |
89,443 |
||
Operating income |
25,449 |
22,812 |
||
Interest expense |
142 |
148 |
||
Interest income |
183 |
198 |
||
Other income (expense), net |
849 |
2,401 |
||
Income from continuing operations before income taxes |
26,339 |
25,263 |
||
Income tax expense |
8,751 |
8,391 |
||
Income from continuing operations |
17,588 |
16,872 |
||
Income (loss) from discontinued operations, net of tax |
(717) |
291 |
||
Net income |
16,871 |
17,163 |
||
Net income attributable to noncontrolling interests |
(388) |
(99) |
||
Net income attributable to La-Z-Boy Incorporated |
$16,483 |
$17,064 |
||
Net income attributable to La-Z-Boy Incorporated: |
||||
Income from continuing operations attributable to La-Z-Boy Incorporated |
$17,200 |
$16,773 |
||
Income (loss) from discontinued operations |
(717) |
291 |
||
Net income attributable to La-Z-Boy Incorporated |
$16,483 |
$17,064 |
||
Basic average shares |
52,516 |
52,431 |
||
Basic net income attributable to La-Z-Boy Incorporated per share: |
||||
Income from continuing operations attributable to La-Z-Boy Incorporated |
$0.33 |
$0.31 |
||
Income (loss) from discontinued operations |
(0.02) |
0.01 |
||
Basic net income attributable to La-Z-Boy Incorporated per share |
$0.31 |
$0.32 |
||
Diluted average shares |
53,226 |
53,401 |
||
Diluted net income attributable to La-Z-Boy Incorporated per share: |
||||
Income from continuing operations attributable to La-Z-Boy Incorporated |
$0.32 |
$0.31 |
||
Income (loss) from discontinued operations |
(0.01) |
0.01 |
||
Diluted net income attributable to La-Z-Boy Incorporated per share |
$0.31 |
$0.32 |
||
Dividends declared per share |
$0.06 |
$0.04 |
LA-Z-BOY INCORPORATED |
||||
CONSOLIDATED STATEMENT OF INCOME |
||||
Nine Months Ended |
||||
(Unaudited, amounts in thousands, except per share data) |
1/25/14 |
1/26/13 |
||
Sales |
$1,017,692 |
$945,848 |
||
Cost of sales |
670,011 |
646,038 |
||
Gross profit |
347,681 |
299,810 |
||
Selling, general and administrative expense |
281,767 |
259,111 |
||
Operating income |
65,914 |
40,699 |
||
Interest expense |
411 |
512 |
||
Interest income |
539 |
435 |
||
Other income (expense), net |
1,107 |
2,515 |
||
Income from continuing operations before income taxes |
67,149 |
43,137 |
||
Income tax expense |
22,462 |
14,912 |
||
Income from continuing operations |
44,687 |
28,225 |
||
Income (loss) from discontinued operations, net of tax |
(864) |
465 |
||
Net income |
43,823 |
28,690 |
||
Net income attributable to noncontrolling interests |
(1,006) |
(609) |
||
Net income attributable to La-Z-Boy Incorporated |
$42,817 |
$28,081 |
||
Net income attributable to La-Z-Boy Incorporated: |
||||
Income from continuing operations attributable to La-Z-Boy Incorporated |
$43,681 |
$27,616 |
||
Income (loss) from discontinued operations |
(864) |
465 |
||
Net income attributable to La-Z-Boy Incorporated |
$42,817 |
$28,081 |
||
Basic average shares |
52,465 |
52,327 |
||
Basic net income attributable to La-Z-Boy Incorporated per share: |
||||
Income from continuing operations attributable to La-Z-Boy Incorporated |
$0.83 |
$0.52 |
||
Income (loss) from discontinued operations |
(0.02) |
0.01 |
||
Basic net income attributable to La-Z-Boy Incorporated per share |
$0.81 |
$0.53 |
||
Diluted average shares |
53,379 |
53,201 |
||
Diluted net income attributable to La-Z-Boy Incorporated per share: |
||||
Income from continuing operations attributable to La-Z-Boy Incorporated |
$0.81 |
$0.51 |
||
Income (loss) from discontinued operations |
(0.01) |
0.01 |
||
Diluted net income attributable to La-Z-Boy Incorporated per share |
$0.80 |
$0.52 |
||
Dividends declared per share |
$0.14 |
$0.04 |
||
LA-Z-BOY INCORPORATED |
||||
CONSOLIDATED BALANCE SHEET |
||||
(Unaudited, amounts in thousands) |
1/25/14 |
4/27/13 |
||
Current assets |
||||
Cash and equivalents |
$140,112 |
$131,085 |
||
Restricted cash |
12,566 |
12,686 |
||
Receivables, net of allowance of $12,706 at 1/25/14 and $21,607 at 4/27/13 |
151,917 |
160,005 |
||
Inventories, net |
159,586 |
146,343 |
||
Deferred income taxes – current |
19,174 |
20,640 |
||
Business held for sale |
8,923 |
— |
||
Other current assets |
27,797 |
30,121 |
||
Total current assets |
520,075 |
500,880 |
||
Property, plant and equipment, net |
122,422 |
118,060 |
||
Goodwill |
13,923 |
12,837 |
||
Other intangible assets |
5,931 |
4,838 |
||
Deferred income taxes – long-term |
33,927 |
30,572 |
||
Other long-term assets, net |
67,923 |
53,184 |
||
Total assets |
$764,201 |
$720,371 |
||
Current liabilities |
||||
Current portion of long-term debt |
$7,574 |
$513 |
||
Accounts payable |
53,814 |
50,542 |
||
Business held for sale |
2,653 |
— |
||
Accrued expenses and other current liabilities |
99,841 |
99,108 |
||
Total current liabilities |
163,882 |
150,163 |
||
Long-term debt |
345 |
7,576 |
||
Other long-term liabilities |
80,652 |
70,664 |
||
Contingencies and commitments |
— |
— |
||
Shareholders' equity |
||||
Preferred shares – 5,000 authorized; none issued |
— |
— |
||
Common shares, $1 par value – 150,000 authorized; 52,419 outstanding at 1/25/14 and 52,392 outstanding at 4/27/13 |
52,419 |
52,392 |
||
Capital in excess of par value |
254,403 |
241,888 |
||
Retained earnings |
240,628 |
226,044 |
||
Accumulated other comprehensive loss |
(35,512) |
(35,496) |
||
Total La-Z-Boy Incorporated shareholders' equity |
511,938 |
484,828 |
||
Noncontrolling interests |
7,384 |
7,140 |
||
Total equity |
519,322 |
491,968 |
||
Total liabilities and equity |
$764,201 |
$720,371 |
LA-Z-BOY INCORPORATED |
||||
CONSOLIDATED STATEMENT OF CASH FLOWS |
||||
Nine Months Ended |
||||
(Unaudited, amounts in thousands) |
1/25/14 |
1/26/13 |
||
Cash flows from operating activities |
||||
Net income |
$43,823 |
$28,690 |
||
Adjustments to reconcile net income to cash provided by (used for) operating activities |
||||
Gain on sale of investments |
(282) |
(2,866) |
||
Impairment of business held for sale |
1,149 |
— |
||
Deferred income tax benefit |
(2,929) |
(745) |
||
Restructuring |
(115) |
2,716 |
||
Provision for doubtful accounts |
(2,494) |
1,009 |
||
Depreciation and amortization |
17,529 |
17,111 |
||
Stock-based compensation expense |
7,371 |
8,198 |
||
Pension plan contributions |
— |
(3,480) |
||
Change in receivables |
4,865 |
2,457 |
||
Change in inventories |
(15,166) |
(12,355) |
||
Change in other assets |
2,980 |
(5,432) |
||
Change in payables |
2,865 |
(6,261) |
||
Change in other liabilities |
3,193 |
4,410 |
||
Net cash provided by operating activities |
62,789 |
33,452 |
||
Cash flows from investing activities |
||||
Proceeds from disposal of assets |
2,248 |
1,484 |
||
Capital expenditures |
(23,078) |
(21,792) |
||
Purchases of investments |
(40,796) |
(36,353) |
||
Proceeds from sales of investments |
27,974 |
12,658 |
||
Acquisitions, net of cash acquired |
(801) |
(15,832) |
||
Change in restricted cash |
120 |
(6,937) |
||
Net cash used for investing activities |
(34,333) |
(66,772) |
||
Cash flows from financing activities |
||||
Payments on debt |
(434) |
(2,372) |
||
Stock issued for stock and employee benefit plans |
3,526 |
1,528 |
||
Excess tax benefit on stock option exercises |
5,805 |
1,117 |
||
Purchases of common stock |
(20,276) |
(5,217) |
||
Dividends paid |
(7,375) |
(2,119) |
||
Net cash used for financing activities |
(18,754) |
(7,063) |
||
Effect of exchange rate changes on cash and equivalents |
(675) |
(6) |
||
Change in cash and equivalents |
9,027 |
(40,389) |
||
Cash and equivalents at beginning of period |
131,085 |
152,370 |
||
Cash and equivalents at end of period |
$140,112 |
$111,981 |
||
Supplemental disclosure of non-cash investing activities |
||||
Capital expenditures included in payables |
$2,183 |
$— |
LA-Z-BOY INCORPORATED |
||||||||
SEGMENT INFORMATION |
||||||||
Third Quarter Ended |
Nine Months Ended |
|||||||
(Unaudited, amounts in thousands) |
1/25/14 |
1/26/13 |
1/25/14 |
1/26/13 |
||||
Sales |
||||||||
Upholstery segment: |
||||||||
Sales to external customers |
$242,492 |
$236,428 |
$710,162 |
$657,073 |
||||
Intersegment sales |
37,780 |
34,622 |
103,183 |
93,401 |
||||
Upholstery segment sales |
280,272 |
271,050 |
813,345 |
750,474 |
||||
Casegoods segment: |
||||||||
Sales to external customers |
27,267 |
30,496 |
85,733 |
95,841 |
||||
Intersegment sales |
2,367 |
2,115 |
7,269 |
5,907 |
||||
Casegoods segment sales |
29,634 |
32,611 |
93,002 |
101,748 |
||||
Retail segment sales |
80,212 |
72,772 |
219,845 |
191,089 |
||||
Corporate and Other |
404 |
515 |
1,952 |
1,845 |
||||
Eliminations |
(40,147) |
(36,737) |
(110,452) |
(99,308) |
||||
Consolidated sales |
$350,375 |
$340,211 |
$1,017,692 |
$945,848 |
||||
Operating Income (Loss) |
||||||||
Upholstery segment |
$31,560 |
$27,909 |
$86,547 |
$64,892 |
||||
Casegoods segment |
(41) |
200 |
1,161 |
2,381 |
||||
Retail segment |
3,087 |
2,668 |
8,264 |
105 |
||||
Restructuring |
60 |
(30) |
115 |
(2,633) |
||||
Corporate and Other |
(9,217) |
(7,935) |
(30,173) |
(24,046) |
||||
Consolidated operating income |
$25,449 |
$22,812 |
$65,914 |
$40,699 |
||||
SOURCE La-Z-Boy Incorporated
LA-Z-BOY INCORPORATED |
||||
CONSOLIDATED STATEMENT OF INCOME |
||||
Third Quarter Ended |
||||
(Unaudited, amounts in thousands, except per share data) |
1/25/14 |
1/26/13 |
||
Sales |
$350,375 |
$340,211 |
||
Cost of sales |
228,186 |
227,956 |
||
Gross profit |
122,189 |
112,255 |
||
Selling, general and administrative expense |
96,740 |
89,443 |
||
Operating income |
25,449 |
22,812 |
||
Interest expense |
142 |
148 |
||
Interest income |
183 |
198 |
||
Other income (expense), net |
849 |
2,401 |
||
Income from continuing operations before income taxes |
26,339 |
25,263 |
||
Income tax expense |
8,751 |
8,391 |
||
Income from continuing operations |
17,588 |
16,872 |
||
Income (loss) from discontinued operations, net of tax |
(717) |
291 |
||
Net income |
16,871 |
17,163 |
||
Net income attributable to noncontrolling interests |
(388) |
(99) |
||
Net income attributable to La-Z-Boy Incorporated |
$16,483 |
$17,064 |
||
Net income attributable to La-Z-Boy Incorporated: |
||||
Income from continuing operations attributable to La-Z-Boy Incorporated |
$17,200 |
$16,773 |
||
Income (loss) from discontinued operations |
(717) |
291 |
||
Net income attributable to La-Z-Boy Incorporated |
$16,483 |
$17,064 |
||
Basic average shares |
52,516 |
52,431 |
||
Basic net income attributable to La-Z-Boy Incorporated per share: |
||||
Income from continuing operations attributable to La-Z-Boy Incorporated |
$0.33 |
$0.31 |
||
Income (loss) from discontinued operations |
(0.02) |
0.01 |
||
Basic net income attributable to La-Z-Boy Incorporated per share |
$0.31 |
$0.32 |
||
Diluted average shares |
53,226 |
53,401 |
||
Diluted net income attributable to La-Z-Boy Incorporated per share: |
||||
Income from continuing operations attributable to La-Z-Boy Incorporated |
$0.32 |
$0.31 |
||
Income (loss) from discontinued operations |
(0.01) |
0.01 |
||
Diluted net income attributable to La-Z-Boy Incorporated per share |
$0.31 |
$0.32 |
||
Dividends declared per share |
$0.06 |
$0.04 |
LA-Z-BOY INCORPORATED |
||||
CONSOLIDATED STATEMENT OF INCOME |
||||
Nine Months Ended |
||||
(Unaudited, amounts in thousands, except per share data) |
1/25/14 |
1/26/13 |
||
Sales |
$1,017,692 |
$945,848 |
||
Cost of sales |
670,011 |
646,038 |
||
Gross profit |
347,681 |
299,810 |
||
Selling, general and administrative expense |
281,767 |
259,111 |
||
Operating income |
65,914 |
40,699 |
||
Interest expense |
411 |
512 |
||
Interest income |
539 |
435 |
||
Other income (expense), net |
1,107 |
2,515 |
||
Income from continuing operations before income taxes |
67,149 |
43,137 |
||
Income tax expense |
22,462 |
14,912 |
||
Income from continuing operations |
44,687 |
28,225 |
||
Income (loss) from discontinued operations, net of tax |
(864) |
465 |
||
Net income |
43,823 |
28,690 |
||
Net income attributable to noncontrolling interests |
(1,006) |
(609) |
||
Net income attributable to La-Z-Boy Incorporated |
$42,817 |
$28,081 |
||
Net income attributable to La-Z-Boy Incorporated: |
||||
Income from continuing operations attributable to La-Z-Boy Incorporated |
$43,681 |
$27,616 |
||
Income (loss) from discontinued operations |
(864) |
465 |
||
Net income attributable to La-Z-Boy Incorporated |
$42,817 |
$28,081 |
||
Basic average shares |
52,465 |
52,327 |
||
Basic net income attributable to La-Z-Boy Incorporated per share: |
||||
Income from continuing operations attributable to La-Z-Boy Incorporated |
$0.83 |
$0.52 |
||
Income (loss) from discontinued operations |
(0.02) |
0.01 |
||
Basic net income attributable to La-Z-Boy Incorporated per share |
$0.81 |
$0.53 |
||
Diluted average shares |
53,379 |
53,201 |
||
Diluted net income attributable to La-Z-Boy Incorporated per share: |
||||
Income from continuing operations attributable to La-Z-Boy Incorporated |
$0.81 |
$0.51 |
||
Income (loss) from discontinued operations |
(0.01) |
0.01 |
||
Diluted net income attributable to La-Z-Boy Incorporated per share |
$0.80 |
$0.52 |
||
Dividends declared per share |
$0.14 |
$0.04 |
||
LA-Z-BOY INCORPORATED |
||||
CONSOLIDATED BALANCE SHEET |
||||
(Unaudited, amounts in thousands) |
1/25/14 |
4/27/13 |
||
Current assets |
||||
Cash and equivalents |
$140,112 |
$131,085 |
||
Restricted cash |
12,566 |
12,686 |
||
Receivables, net of allowance of $12,706 at 1/25/14 and $21,607 at 4/27/13 |
151,917 |
160,005 |
||
Inventories, net |
159,586 |
146,343 |
||
Deferred income taxes – current |
19,174 |
20,640 |
||
Business held for sale |
8,923 |
— |
||
Other current assets |
27,797 |
30,121 |
||
Total current assets |
520,075 |
500,880 |
||
Property, plant and equipment, net |
122,422 |
118,060 |
||
Goodwill |
13,923 |
12,837 |
||
Other intangible assets |
5,931 |
4,838 |
||
Deferred income taxes – long-term |
33,927 |
30,572 |
||
Other long-term assets, net |
67,923 |
53,184 |
||
Total assets |
$764,201 |
$720,371 |
||
Current liabilities |
||||
Current portion of long-term debt |
$7,574 |
$513 |
||
Accounts payable |
53,814 |
50,542 |
||
Business held for sale |
2,653 |
— |
||
Accrued expenses and other current liabilities |
99,841 |
99,108 |
||
Total current liabilities |
163,882 |
150,163 |
||
Long-term debt |
345 |
7,576 |
||
Other long-term liabilities |
80,652 |
70,664 |
||
Contingencies and commitments |
— |
— |
||
Shareholders' equity |
||||
Preferred shares – 5,000 authorized; none issued |
— |
— |
||
Common shares, $1 par value – 150,000 authorized; 52,419 outstanding at 1/25/14 and 52,392 outstanding at 4/27/13 |
52,419 |
52,392 |
||
Capital in excess of par value |
254,403 |
241,888 |
||
Retained earnings |
240,628 |
226,044 |
||
Accumulated other comprehensive loss |
(35,512) |
(35,496) |
||
Total La-Z-Boy Incorporated shareholders' equity |
511,938 |
484,828 |
||
Noncontrolling interests |
7,384 |
7,140 |
||
Total equity |
519,322 |
491,968 |
||
Total liabilities and equity |
$764,201 |
$720,371 |
LA-Z-BOY INCORPORATED |
||||
CONSOLIDATED STATEMENT OF CASH FLOWS |
||||
Nine Months Ended |
||||
(Unaudited, amounts in thousands) |
1/25/14 |
1/26/13 |
||
Cash flows from operating activities |
||||
Net income |
$43,823 |
$28,690 |
||
Adjustments to reconcile net income to cash provided by (used for) operating activities |
||||
Gain on sale of investments |
(282) |
(2,866) |
||
Impairment of business held for sale |
1,149 |
— |
||
Deferred income tax benefit |
(2,929) |
(745) |
||
Restructuring |
(115) |
2,716 |
||
Provision for doubtful accounts |
(2,494) |
1,009 |
||
Depreciation and amortization |
17,529 |
17,111 |
||
Stock-based compensation expense |
7,371 |
8,198 |
||
Pension plan contributions |
— |
(3,480) |
||
Change in receivables |
4,865 |
2,457 |
||
Change in inventories |
(15,166) |
(12,355) |
||
Change in other assets |
2,980 |
(5,432) |
||
Change in payables |
2,865 |
(6,261) |
||
Change in other liabilities |
3,193 |
4,410 |
||
Net cash provided by operating activities |
62,789 |
33,452 |
||
Cash flows from investing activities |
||||
Proceeds from disposal of assets |
2,248 |
1,484 |
||
Capital expenditures |
(23,078) |
(21,792) |
||
Purchases of investments |
(40,796) |
(36,353) |
||
Proceeds from sales of investments |
27,974 |
12,658 |
||
Acquisitions, net of cash acquired |
(801) |
(15,832) |
||
Change in restricted cash |
120 |
(6,937) |
||
Net cash used for investing activities |
(34,333) |
(66,772) |
||
Cash flows from financing activities |
||||
Payments on debt |
(434) |
(2,372) |
||
Stock issued for stock and employee benefit plans |
3,526 |
1,528 |
||
Excess tax benefit on stock option exercises |
5,805 |
1,117 |
||
Purchases of common stock |
(20,276) |
(5,217) |
||
Dividends paid |
(7,375) |
(2,119) |
||
Net cash used for financing activities |
(18,754) |
(7,063) |
||
Effect of exchange rate changes on cash and equivalents |
(675) |
(6) |
||
Change in cash and equivalents |
9,027 |
(40,389) |
||
Cash and equivalents at beginning of period |
131,085 |
152,370 |
||
Cash and equivalents at end of period |
$140,112 |
$111,981 |
||
Supplemental disclosure of non-cash investing activities |
||||
Capital expenditures included in payables |
$2,183 |
$— |
LA-Z-BOY INCORPORATED |
||||||||
SEGMENT INFORMATION |
||||||||
Third Quarter Ended |
Nine Months Ended |
|||||||
(Unaudited, amounts in thousands) |
1/25/14 |
1/26/13 |
1/25/14 |
1/26/13 |
||||
Sales |
||||||||
Upholstery segment: |
||||||||
Sales to external customers |
$242,492 |
$236,428 |
$710,162 |
$657,073 |
||||
Intersegment sales |
37,780 |
34,622 |
103,183 |
93,401 |
||||
Upholstery segment sales |
280,272 |
271,050 |
813,345 |
750,474 |
||||
Casegoods segment: |
||||||||
Sales to external customers |
27,267 |
30,496 |
85,733 |
95,841 |
||||
Intersegment sales |
2,367 |
2,115 |
7,269 |
5,907 |
||||
Casegoods segment sales |
29,634 |
32,611 |
93,002 |
101,748 |
||||
Retail segment sales |
80,212 |
72,772 |
219,845 |
191,089 |
||||
Corporate and Other |
404 |
515 |
1,952 |
1,845 |
||||
Eliminations |
(40,147) |
(36,737) |
(110,452) |
(99,308) |
||||
Consolidated sales |
$350,375 |
$340,211 |
$1,017,692 |
$945,848 |
||||
Operating Income (Loss) |
||||||||
Upholstery segment |
$31,560 |
$27,909 |
$86,547 |
$64,892 |
||||
Casegoods segment |
(41) |
200 |
1,161 |
2,381 |
||||
Retail segment |
3,087 |
2,668 |
8,264 |
105 |
||||
Restructuring |
60 |
(30) |
115 |
(2,633) |
||||
Corporate and Other |
(9,217) |
(7,935) |
(30,173) |
(24,046) |
||||
Consolidated operating income |
$25,449 |
$22,812 |
$65,914 |
$40,699 |
||||
Source: La-Z-Boy Incorporated
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