MONROE, Mich. -- La-Z-Boy Incorporated (NYSE: LZB) today reported its operating results for the fiscal 2014 full year and fourth quarter ended April 26, 2014.

Fiscal 2014 full-year highlights for continuing operations:

  • Consolidated sales for the full fiscal 2014 year increased 6.6%, or $83.4 million, compared with fiscal 2013;
  • Same-store written sales for the La-Z-Boy Furniture Galleries® store network increased 6.0% for the full fiscal 2014 year on top of a 12.7% increase in fiscal 2013;
  • Consolidated operating income increased 32.1% to $89.3 million from $67.6 million in fiscal 2013 with the consolidated operating margin increasing to 6.6% from 5.3% in fiscal 2013;
  • The company generated cash from operations of $90.8 million for the year;
  • The upholstery segment's operating margin was 10.7% compared with 9.3% in fiscal 2013;
  • The retail segment more than doubled its operating income to $11.1 million, or an operating margin of 3.7%, compared with $4.1 million, or a 1.5% operating margin, in fiscal 2013; and
  • The company increased its quarterly dividend by 50% to a rate of $0.06 per share.

Fiscal 2014 fourth-quarter highlights for continuing operations:

  • Consolidated sales for the fourth quarter increased 2.1% compared with the fiscal 2013 fourth quarter;
  • Same-store written sales for the La-Z-Boy Furniture Galleries® store network decreased 0.9% for the fourth quarter after an 11.2% increase in last year's fourth quarter;
  • Consolidated operating income, which included a $5.0 million restructuring charge, decreased $4.6 million to $22.5 million compared with $27.1 million in the fiscal 2013 fourth quarter;
  • The company generated cash from operations of $28.0 million during the quarter; and
  • The upholstery segment posted a 10.9% operating margin versus 11.0% in last year's fourth quarter.

Sales for the full fiscal year 2014 were $1.36 billion, an increase of 6.6% over fiscal 2013.  The company reported income from continuing operations attributable to La-Z-Boy Incorporated of $58.9 million, or $1.09 per diluted share, versus $46.4 million, or $0.85 per diluted share in fiscal 2013.  The fiscal 2014 results include a $0.05 per share restructuring charge related to our casegoods segment and a $0.02 per share benefit for income taxes related to deferred tax valuation allowances. The fiscal 2013 results included $0.03 per share in restructuring charges related to the company's casegoods segment, $0.06 per share in an after-tax gain related to the sale of investments and a $0.03 per share tax benefit due mainly to foreign and state taxes.  Adjusted income from continuing operations attributable to La-Z-Boy Incorporated per share was $1.12 in fiscal 2014, versus $0.79 in fiscal 2013. 

Sales for the fiscal 2014 fourth quarter were $353.0 million, up 2.1% compared with the prior year's fourth quarter.  The company reported income from continuing operations attributable to La-Z-Boy Incorporated of $14.6 million, or $0.27 per diluted share, including a $0.06 per share restructuring charge related to the company's casegoods segment.  This compares with last year's fourth-quarter results of $18.9 million, or $0.34 per diluted share, which included a $0.03 per share benefit due mainly to foreign and state taxes and $0.01 per share in an after-tax gain related to the sale of investments.  Adjusted income from continuing operations attributable to La-Z-Boy Incorporated per share was $0.33 in the fourth quarter of fiscal 2014, versus $0.30 in the fourth quarter of fiscal 2013. 

The following table provides a reconciliation of our adjusted income from continuing operations attributable to La-Z-Boy Incorporated to income from continuing operations attributable to La-Z-Boy Incorporated.

Reconciliation of Non-GAAP Financial Information

 

Fourth Quarter Ended

Fiscal Year Ended

 (Amounts in thousands, except per share data)

4/26/14

4/27/13

4/26/14

4/27/13

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

$14,642

$18,891

$58,852

$46,372

   Adjustment for special items (after-tax 

   impact):

      Restructuring

3,146

(1)

3,179

1,756

      Gain on the sale of investments

-

(317)

-

(3,224)

      Tax benefit - deferred tax valuation
        allowance reversal and foreign taxes

(281)

(1,600)

(1,162)

(1,600)

Adjusted income from continuing operations

 attributable to La-Z-Boy Incorporated

$17,507

$16,973

$60,869

$43,304

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

   Income from continuing operations attributable

    to La-Z-Boy Incorporated

$0.27

$0.34

$1.09

$0.85

      Adjustment for special items:

        Restructuring

0.06

-

0.05

0.03

        Gain on the sale of investments

-

(0.01)

-

(0.06)

        Tax benefit - deferred tax valuation
          allowance reversal and foreign taxes

-

(0.03)

(0.02)

(0.03)

   Adjusted income from continuing operations     

    attributable to La-Z-Boy Incorporated

$0.33

$0.30

$1.12

$0.79

 

Kurt L. Darrow, Chairman, President and Chief Executive Officer, of La-Z-Boy, said, "Overall, we are pleased with our results for fiscal 2014 full year.  With respect to our performance, we increased sales, operating profit, cash flow and the dividend while strengthening our balance sheet.  Additionally, we recorded a 6% increase in written same-store sales for the La-Z-Boy Furniture Galleries® network of stores, while solidifying one of the largest growth initiatives in the company's history with our 4-4-5 store strategy.  We improved the performance of both our wholesale upholstery and retail segments, demonstrating our integrated retail model is delivering results. Moving forward, we believe the initiatives we have established throughout our wholesale and retail operations, coupled with the financial strength and flexibility to invest in our business, will position us for continuing, long-term profitable growth."

Wholesale Segments

For the fiscal 2014 fourth quarter, sales in the company's upholstery segment increased 2.3% to $285.7 million from $279.3 million in the prior year's fourth quarter.  The operating margin for the quarter was 10.9% compared with 11.0% in last year's fourth quarter.  In the casegoods segment, sales for the fiscal 2014 fourth quarter were $27.2 million, down 5.0% from $28.7 million in the fiscal 2013 fourth quarter, and the operating margin for the segment was 5.1% versus 5.4% in last year's fourth quarter. Due to the company's announcement that it is marketing Lea Industries for sale, the reported results reflect the treatment of Lea as a discontinued operation.

Darrow commented, "Although sales in the upholstery segment were up slightly, we believe they were adversely impacted by weather issues beginning in the third quarter, affecting the written order rate, and extending into the fourth quarter, particularly in February, where the La-Z-Boy Furniture Galleries® store network experienced a 4.9% decline in same-store sales.  A slight decrease in same-store sales for the network during the quarter is the first decrease we have experienced in 14 quarters and follows double-digit same-store sales increases during the fourth quarter of each of the previous three years.  During the period, we continued to invest in our Live Life Comfortably advertising campaign and believe we are attracting a wider base of consumers to the La-Z-Boy brand while gaining market share.  Our new Urban Attitudes collection, which received a strong response from dealers, began arriving on retail floors during the quarter.  To support the collection's launch, we produced and began airing commercials during the quarter, featuring Brooke Shields as our brand ambassador.  Increased advertising expenses coupled with costs associated with the opening of our new Regional Distribution Center in Columbus, Ohio impacted our performance for the upholstery segment. Partially offsetting these costs was a reduction in compensation costs reflecting fluctuations in our stock price and a reduction in other performance-based bonus liabilities.  On the manufacturing side of the upholstery business, our strong gross margin performance for the quarter and full year reflects the efficiencies with which our plants continue to operate."

Darrow continued, "With the overall strength in our business over the last several years, particularly with strong same-store written sales for the La-Z-Boy Furniture Galleries® network, our focus remains on increasing our branded distribution footprint from the 885 locations we currently have to more than 1,000 outlets throughout North America, as we experience the strongest performance through this channel.  Today, there are 315 La-Z-Boy Furniture Galleries® stores and our goal is to expand the system to 400 locations, averaging over $4 million per store, through our 4-4-5 build out strategy, a five year plan that began in fiscal 2014.  This would increase the number of stores comprising the La-Z-Boy Furniture Galleries® store network by about 25% with a potential sales increase of approximately 40% to 50%, as we will also improve the overall store footprint by changing out approximately 50 old format stores to the new concept design format, which performs at a higher level. This initiative is a joint undertaking with our independent dealers, and we anticipate that when it is complete the company will own approximately 40% of the La-Z-Boy Furniture Galleries® store network.  At the same time, we are working to increase our Comfort Studios® presence from the 570 locations we have today to more than 600.  Once we reach our expansion goal, the 1,000-plus outlets will represent almost 10 million square feet of dedicated proprietary retail space across North America, up from 7.5 million today.  Furthermore, increasing the sales volume throughout the network will allow us to further maximize our lean operating structure and generate increased returns."

Darrow added, "During the period, we made decisions to strengthen our portfolio of companies.  We closed on the sale of Bauhaus, one of our two non-branded upholstery companies.  We also announced a restructuring in our casegoods segment which will include discontinuing production at our Hudson, North Carolina facility, transitioning us to an all-import model for wood furniture, exiting the hospitality business, marketing our youth furniture business, Lea Industries, for sale, and consolidating and transitioning our warehouse and repair functions.   With respect to Bauhaus and Lea, neither company was a strategic fit from a size perspective in terms of revenues or earnings.  Despite the numerous changes made in our casegoods manufacturing model through the years, we determined after careful analysis and consideration that we cannot generate enough volume in domestically made product to support the facility we operate in North Carolina.  We expect to cease production at the Hudson plant in the fall and will begin transitioning the Kincaid and American Drew bedroom product lines overseas."

Darrow stated, "Although casegoods volume remained challenged for the quarter, our operating margin was 5.1%.  During the period, occasional furniture continued to exhibit more strength.  We believe, however, that the changes we are making to the segment, combined with the product refresh at Kincaid and American Drew, where we are introducing groups with more transitional styling to reflect today's lifestyle, will position our casegoods business for performance improvement."  

Retail Segment

Darrow stated, "Overall, for the year, we are pleased with our progress in the retail segment.  We were profitable each quarter and more than doubled our operating income. As we move forward, we believe we will strengthen our performance in the segment and as we increase the size of our company-owned retail footprint, we will benefit from the blended wholesale and retail margin associated with our integrated retail platform."

In the fourth quarter of fiscal 2014, retail delivered sales were $78.8 million, up 7.0% compared with the fourth quarter of last year. On the core base of 91 stores included in last year's fourth quarter, sales for the segment increased 1.0% compared with the year-ago period.  The retail segment posted an operating profit of $2.9 million and an operating margin of 3.6% for the quarter, compared with an operating profit of $4.0 million and an operating margin of 5.4% in last year's fourth quarter. 

Darrow continued, "During the fourth quarter, the majority of our retail growth stemmed from acquired stores.  With the majority of our company-owned stores located in the Northeast and Midwest, weather issues impacted our sales performance.  On slightly lower traffic and average ticket, our conversion was positive.  The retail segment's performance for the fourth quarter was further affected by costs associated with the acquired stores as well as expenses related to increased advertising and building maintenance, including snow removal costs." 

La-Z-Boy Furniture Galleries® Store Network

System-wide, for the fourth 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 down 0.9% versus last year's fourth quarter. 

Total written sales, which include new and closed stores, for the fourth quarter, were flat.   At the end of the fourth quarter, the La-Z-Boy Furniture Galleries® store system was composed of 315 stand-alone stores.

In fiscal 2014, 10 stores were opened, six stores were remodeled, two stores were relocated and eight stores were closed.  Darrow commented, "Our store activity reflects our strategy to update older stores and integrate the new concept design format, introduced in 2011, into all the La-Z-Boy Furniture Galleries® locations.  In addition to opening new stores, we or our licensees will close and move stores to new locations and reopen them in the new format.  At the end of fiscal 2014, 31 stores of the total 315 were in the new concept design format.   For fiscal 2015, the La-Z-Boy Furniture Galleries® store network, including company-owned and independent-licensed stores, is planning for approximately 30 to 35 store projects, including openings, remodels and relocations, which we believe will double the number of new concept design stores while adding approximately 15 net new stores."

Balance Sheet and Cash Flow

During the quarter, the company generated $28.0 million in cash from operating activities.  La-Z-Boy ended the year with $149.7 million in cash and cash equivalents, $44.7 million in investments to enhance returns on cash, and $12.6 million in restricted cash.  Total debt stood at $7.8 million and the company's debt to capital ratio was 1.4%.  During fiscal 2014, the company purchased 1.3 million shares of stock in the open market under its existing authorized share purchase program, including 0.4 million in the fourth quarter, leaving 2.8 million shares remaining in the program.

Business Outlook

Darrow concluded, "We remain optimistic about our strategic initiatives to deliver profitable growth against an uncertain economic backdrop, particularly as it relates to housing.  We will execute against our plan to deliver improved performance by maximizing the strong foundation we have built across our business.  As we build momentum with our store growth strategy, we will leverage the efficiencies at our manufacturing facilities, which we believe will highlight the value of our integrated retail model.  In the immediate term, however, the furniture industry typically experiences weaker demand during the summer months and, as a result, our plants shut down for one week of vacation and maintenance during the first quarter, which ends in July.  Accordingly, the first quarter is usually our weakest in terms of sales and earnings."

Conference Call

La-Z-Boy will hold a conference call with the investment community on Wednesday, June 18, 2014, at 8:30 a.m. eastern time.  The toll-free dial-in number is 877.407.0778; international callers may use 201.689.8565. 

Forward-looking Information

This news release contains, and oral statements made from time to time by representatives of La‑Z‑Boy may contain, "forward-looking statements." With respect to all forward-looking statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.  

Actual results could differ materially from those we anticipate or project due to a number of factors, including: (a) changes in consumer confidence and demographics; (b) speed of economic recovery or the possibility of another recession; (c) changes in the real estate and credit markets and their effects on our customers and suppliers; (d) international political unrest, terrorism or war; (e) volatility in energy and other commodities prices; (f) the impact of logistics on imports; (g) interest rate and currency exchange rate changes; (h) operating factors, such as supply, labor or distribution disruptions; (i) any court actions requiring us to return any of the Continued Dumping and Subsidy Offset Act distributions we have received; (j) changes in the domestic or international regulatory environment; (k) adoption of new accounting principles; (l) severe weather or other natural events such as hurricanes, earthquakes, flooding, tornadoes and tsunamis; (m) our ability to procure fabric rolls and leather hides or cut-and-sewn fabric and leather sets domestically or abroad; (n) information technology conversions or system failures; (o) effects of our brand awareness and marketing programs; (p) the discovery of defects in our products resulting in delays in manufacturing, recall campaigns, reputational damage, or increased warranty costs; (q) litigation arising out of alleged defects in our products; (r) our ability to locate new La-Z-Boy Furniture Galleries® stores (or store owners) and negotiate favorable lease terms for new or existing locations; (s) our ability to integrate acquired businesses and realize the benefit of anticipated synergies; (t) the results of our restructuring actions; and (u) those matters discussed in Item 1A of our fiscal 2014 Annual Report on Form 10-K and other factors identified from time-to-time in our reports filed with the Securities and Exchange Commission. We undertake no obligation to update or revise any forward-looking statements, whether to reflect new information or new developments or for any other reason. 

Additional Information

This news release is just one part of La-Z-Boy's financial disclosures and should be read in conjunction with other information filed with the Securities and Exchange Commission, which is available at: http://investors.la-z-boy.com/phoenix.zhtml?c=92596&p=irol-sec.  Investors and others wishing to be notified of future La-Z-Boy news releases, SEC filings and quarterly investor conference calls may sign up at:  http://investors.la-z-boy.com/phoenix.zhtml?c=92596&p=irol-alerts&t=&id=&.

Non-GAAP Financial Information

The information contained in this press release is intended to supplement, rather than to supersede, our consolidated financial statements.  We report our financial results in accordance with accounting principles generally accepted in the United States ("GAAP").  However, management believes that certain non-GAAP financial measures provide users with additional meaningful financial information that should be considered when assessing our ongoing performance.  This press release contains references to income from continuing operations attributable to La-Z-Boy Incorporated and income from continuing operations attributable to La-Z-Boy Incorporated per share, both adjusted to exclude the charges of restructuring as well as gains relating to sale of investments and reversal of valuation allowances relating to our deferred tax assets and foreign taxes.  This press release includes a table reconciling these adjusted measures to the most directly comparable financial measures reported in accordance with GAAP.

Management does not expect the excluded items to significantly affect future operating results and believes that presenting income from continuing operations attributable to La-Z-Boy Incorporated and income from continuing operations attributable to La-Z-Boy Incorporated per share with those items excluded will help investors better understand our operating results for different periods on a comparable basis.  The Reconciliation of Non-GAAP Financial Information table included in this press release presents all of the excluded items net of tax calculated using the effective tax rate from operations for the period in which the adjustment is presented. 

Background Information

La-Z-Boy Incorporated is one of the world's leading residential furniture producers, marketing furniture for every room of the home. The La-Z-Boy Upholstery segment companies are England and La-Z-Boy. The Casegoods segment consists of three brands: American Drew, Hammary, and Kincaid. The company-owned Retail segment includes 101 of the 315 La-Z-Boy Furniture Galleries® stores.

The corporation's branded distribution network is dedicated to selling La-Z-Boy Incorporated products and brands, and includes 315 stand-alone La-Z-Boy Furniture Galleries® stores and 570 independent Comfort Studios® locations, in addition to in-store gallery programs for the company's Kincaid and England operating units. Additional information is available at http://www.la-z-boy.com/.

 

LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF INCOME

Unaudited
For the Quarter Ended

Unaudited
For the Year Ended

(Amounts in thousands, except per share data)

4/26/2014

4/27/2013

4/26/2014

4/27/2013

Sales

$353,020

$345,840

$1,357,318

$1,273,877

Cost of sales

  Cost of goods sold

229,563

225,454

888,025

854,542

  Restructuring

4,954

(29)

4,839

2,480

Total cost of sales

234,517

225,425

892,864

857,022

  Gross profit

118,503

120,415

464,454

416,855

Selling, general and administrative expense

95,974

93,266

375,158

349,101

Restructuring

28

151

  Operating income

22,529

27,121

89,296

67,603

Interest expense

137

234

548

746

Interest income

222

186

761

620

Other income, net

943

692

2,050

3,208

Income from continuing operations before 

  income taxes

23,557

27,765

91,559

70,685

Income tax expense

8,597

8,690

31,383

23,520

  Income from continuing operations

14,960

19,075

60,176

47,165

  Income (loss) from discontinued operations, 

    net of tax

(2,403)

(583)

(3,796)

17

 Net income

12,557

18,492

56,380

47,182

Net income attributable to noncontrolling  

    interests

(318)

(184)

(1,324)

(793)

Net income attributable to La-Z-Boy Incorporated

$12,239

$18,308

$55,056

$46,389

Net income attributable to La-Z-Boy Incorporated:

  Income from continuing operations

    attributable to La-Z-Boy Incorporated

$14,642

$18,891

$58,852

$46,372

  Income (loss) from discontinued operations

(2,403)

(583)

(3,796)

17

    Net income attributable to La-Z-Boy

      Incorporated

$12,239

$18,308

$55,056

$46,389

Diluted weighted average shares

53,519

53,754

53,829

53,685

Diluted net income attributable to

 La-Z-Boy Incorporated per share:

  Income from continuing operations

    attributable to La-Z-Boy Incorporated

$0.27

$0.34

$1.09

$0.85

  Loss from discontinued operations

(0.04)

(0.01)

(0.07)

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

$0.23

$0.33

$1.02

$0.85

Dividends declared per share

$0.06

$0.04

$0.20

$0.08

 

LA-Z-BOY INCORPORATED

CONSOLIDATED BALANCE SHEET

Unaudited As of

(Amounts in thousands, except par value)

4/26/2014

4/27/2013

Current assets

Cash and equivalents

$149,661

$131,085

Restricted cash

12,572

12,686

Receivables, net of allowance of $12,368 at 4/26/14 and $21,607 at 4/27/13

152,614

160,005

Inventories, net

147,009

146,343

Deferred income taxes – current

15,037

20,640

Business held for sale

4,290

Other current assets

41,490

30,121

Total current assets

522,673

500,880

Property, plant and equipment, net

127,535

118,060

Goodwill

13,923

12,837

Other intangible assets

4,544

4,838

Deferred income taxes – long-term

32,430

30,572

Other long-term assets, net

70,190

53,184

Total assets

$771,295

$720,371

Current liabilities

Current portion of long-term debt

$7,497

$513

Accounts payable

56,177

50,542

Business held for sale

832

Accrued expenses and other current liabilities

102,876

99,108

Total current liabilities

167,382

150,163

Long-term debt

277

7,576

Other long-term liabilities

73,918

70,664

Contingencies and commitments

Shareholders' equity

Preferred shares – 5,000 authorized; none issued

Common shares, $1 par value – 150,000 authorized; 51,981 outstanding at 4/26/14 and 52,392 outstanding at 4/27/13

51,981

52,392

Capital in excess of par value

262,901

241,888

Retained earnings

238,384

226,044

Accumulated other comprehensive loss

(31,380)

(35,496)

Total La-Z-Boy Incorporated shareholders' equity

521,886

484,828

Noncontrolling interests

7,832

7,140

Total equity

529,718

491,968

Total liabilities and equity

$771,295

$720,371

 

LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF CASH FLOWS

Unaudited Fiscal Year Ended

(Amounts in thousands)

4/26/2014

4/27/2013

Cash flows from operating activities

Net income

$56,380

$47,182

Adjustments to reconcile net income to cash provided by operating activities

(Gain) loss on disposal of assets

616

(659)

Gain on sale of investments

(300)

(3,170)

Write-down of long-lived assets

1,149

Deferred income tax expense (benefit)

(216)

3,198

Restructuring

8,071

2,715

Provision for doubtful accounts

(2,651)

1,005

Depreciation and amortization

23,182

23,140

Stock-based compensation expense

8,739

11,458

Pension plan contributions

(23,480)

Change in receivables

3,337

7,139

Change in inventories

(9,444)

391

Change in other assets

(2,958)

(5,407)

Change in accounts payable

1,704

(6,088)

Change in other liabilities

3,223

11,016

 Net cash provided by operating activities

90,832

68,440

Cash flows from investing activities

Proceeds from disposals of assets

2,233

4,455

Proceeds from sale of business

6,844

Capital expenditures

(33,730)

(25,912)

Purchases of investments

(54,233)

(49,589)

Proceeds from sales of investments

34,557

18,662

Acquisitions, net of cash acquired

(801)

(15,832)

   Change in restricted cash

114

(9,825)

Net cash used for investing activities

(45,016)

(78,041)

Cash flows from financing activities

Payments on debt

(579)

(2,511)

Stock issued for stock and employee benefit plans

3,565

2,901

Excess tax benefit on stock option exercises

12,935

2,563

Purchases of common stock

(32,097)

(10,333)

Dividends paid

(10,514)

(4,236)

Net cash used for financing activities

(26,690)

(11,616)

Effect of exchange rate changes on cash and equivalents

(550)

(68)

Change in cash and equivalents

18,576

(21,285)

Cash and equivalents at beginning of period

131,085

152,370

Cash and equivalents at end of period

$149,661

$131,085

Supplemental disclosure of non-cash investing activities

  Capital expenditures included in accounts payable

$5,303

$—

 

LA-Z-BOY INCORPORATED

SEGMENT INFORMATION

Unaudited For the
Quarter Ended

 

Unaudited For the Year
Ended

 (Amounts in thousands)

4/26/2014

4/27/2013

4/26/2014

4/27/2013

Sales

Upholstery segment:

          Sales to external customers

$248,956

$245,381

$959,118

$902,454

          Intersegment sales

36,749

33,910

139,932

127,311

Upholstery segment sales

285,705

279,291

1,099,050

1,029,765

Casegoods segment:

          Sales to external customers

24,756

26,357

97,095

104,387

          Intersegment sales

2,485

2,313

9,657

8,140

Casegoods segment sales

27,241

28,670

106,752

112,527

Retail segment sales

78,797

73,634

298,642

264,723

Corporate and Other

511

468

2,463

2,313

Eliminations

(39,234)

(36,223)

(149,589)

(135,451)

    Consolidated sales

$353,020

$345,840

$1,357,318

$1,273,877

Operating Income (Loss)

Upholstery segment

$31,141

$30,679

$117,688

$95,571

Casegoods segment

1,383

1,539

3,397

3,703

Retail segment

2,864

3,994

11,128

4,099

Restructuring

(4,954)

2

(4,839)

(2,631)

Corporate and Other

(7,905)

(9,093)

(38,078)

(33,139)

    Consolidated operating income

$22,529

$27,121

$89,296

$67,603

 

LA-Z-BOY INCORPORATED

UNAUDITED QUARTERLY FINANCIAL DATA

(Dollar amounts in thousands, except per share data)

Fiscal Quarter Ended

7/27/2013

10/26/2013

1/25/2014

4/26/2014

Sales

$305,502

$352,271

$346,525

$353,020

Cost of sales

  Cost of goods sold

203,949

229,727

224,786

229,563

  Restructuring

87

(142)

(60)

4,954

Total cost of sales

204,036

229,585

224,726

234,517

Gross profit

101,466

122,686

121,799

118,503

Selling, general and administrative expense

86,701

96,568

95,915

95,974

Operating income

14,765

26,118

25,884

22,529

Interest expense

136

133

142

137

Interest income

180

176

183

222

Other income (expense), net

537

(279)

849

943

Income from continuing operations before income taxes

15,346

25,882

 

26,774

23,557

Income tax expense

5,445

8,425

8,916

8,597

Income from continuing operations

9,901

17,457

17,858

14,960

Income (loss) from discontinued operations, net of tax

34

(440)

(987)

(2,403)

Net income

9,935

17,017

16,871

12,557

Net income attributable to

 noncontrolling interests

(345)

(273)

(388)

(318)

 Net income attributable to La-Z-Boy Incorporated

$9,590

$16,744

$16,483

$12,239

Net income attributable to La-Z-Boy Incorporated:

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

$9,556

$17,184

$17,470

$14,642

Income (loss) from discontinued operations

34

(440)

(987)

(2,403)

Net income attributable to La-Z-Boy Incorporated

$9,590

$16,744

$16,483

$12,239

Diluted weighted average shares

53,051

53,261

53,226

53,519

Diluted net income attributable to

 La-Z-Boy Incorporated per share:

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

$0.18

$0.32

$0.33

$0.27

Loss from discontinued operations

(0.01)

(0.02)

(0.04)

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

$0.18

$0.31

$0.31

$0.23

Dividends declared per share

$0.04

$0.04

$0.06

$0.06

 

LA-Z-BOY INCORPORATED

UNAUDITED QUARTERLY FINANCIAL DATA

(Dollar amounts in thousands, except per share data)

Fiscal Quarter Ended

7/28/2012

10/27/2012

1/26/2013

4/27/2013

Sales

$286,598

$306,523

$334,916

$345,840

Cost of sales

  Cost of goods sold

199,156

206,252

223,680

225,454

  Restructuring

2,509

(29)

Total cost of sales

199,156

208,761

223,680

225,425

Gross profit

87,442

97,762

111,236

120,415

Selling, general and administrative expense

79,950

87,437

88,448

93,266

Restructuring

31

62

30

28

Operating income

7,461

10,263

22,758

27,121

Interest expense

173

191

148

234

Interest income

121

116

197

186

Other income (expense), net

(99)

212

2,403

692

Income from continuing operations before income taxes

7,310

10,400

25,210

27,765

Income tax expense

2,704

3,755

8,371

8,690

Income from continuing operations

4,606

6,645

16,839

19,075

Income (loss) from discontinued operations, net of tax

89

187

324

(583)

Net income

4,695

6,832

17,163

18,492

Net income attributable to

 noncontrolling interests

(297)

(213)

(99)

(184)

 Net income attributable to La-Z-Boy Incorporated

$4,398

$6,619

$17,064

$18,308

Net income attributable to La-Z-Boy Incorporated:

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

$4,309

$6,432

$16,740

$18,891

Income (loss) from discontinued operations

89

187

324

(583)

Net income attributable to La-Z-Boy Incorporated

$4,398

$6,619

$17,064

$18,308

Diluted weighted average shares

53,040

53,268

53,401

53,754

Diluted net income attributable to

 La-Z-Boy Incorporated per share:

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

$0.08

$0.12

$0.31

$0.34

Income (loss) from discontinued operations

0.01

(0.01)

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

$0.08

$0.12

$0.32

$0.33

Dividends declared per share

$—

$—

$0.04

$0.04

 

SOURCE La-Z-Boy Incorporated

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