MONROE, Mich., Feb. 13 /PRNewswire-FirstCall/ -- La-Z-Boy
Incorporated (NYSE:LZB) today reported its operating results for
its fiscal 2007 third quarter ended January 27, 2007. Net sales for
the quarter were $403.9 million, down 9.6%, compared with the
prior-year period. The company posted a per-share loss of $0.15,
which included an after-tax $0.28 per-share loss from discontinued
operations, most of which was attributable to the non-cash write-
down of intangible assets of businesses held for sale. Income from
continuing operations was $0.13 per share. The per-share amounts
also included an after- tax restructuring charge of $0.03 per share
relating to the company-owned retail operation, non-cash stock
option expense of $0.01 per share after tax and income per share of
$0.04 after tax related to anti-dumping duties received on bedroom
furniture imported from China. In last year's third quarter, the
company reported earnings per share from continuing operations of
$0.19, which included an after-tax per share restructuring charge
of $0.01. For the nine months ended January 27, 2007, net sales
were $1.2 billion, a decrease of 2.8% compared with the prior-year
period. The company posted a per-share loss of $0.07 for the
nine-month period, including an after-tax loss of $0.28 per share
for discontinued operations, most of which is attributable to the
write-down of intangible assets of businesses held for sale. Income
from continuing operations was $0.21 per share. The per-share
amounts also included an after-tax restructuring charge of $0.06
relating to the company- owned retail operation, non-cash stock
option expense of $0.02 per share after tax, and income per share
of $0.04 after tax related to anti-dumping duties. These results
compare with last year's earnings per share from continuing
operations of $0.13 per share, which included after-tax
restructuring charges of $0.10 per share. Kurt L. Darrow, President
and CEO, said, "Despite the challenging sales environment pervasive
throughout our industry, we were able to improve margins in our
wholesale businesses while doing an excellent job managing our
inventory, reducing our debt and generating cash. In our
company-owned retail segment, we continued to execute against our
strategy to strengthen our performance and, therefore, expect
meaningful improvement in our next fiscal year. We also took a
number of steps to strategically align our portfolio of companies
for the future and will strive diligently towards a smooth
transition for both our customers and employees of Sam Moore,
Pennsylvania House and Clayton Marcus. We appreciate their
dedication to the brands and their continued support as we go
through this process and are in discussions with potential buyers
who would be suitable long-term partners for those businesses."
Upholstery For the fiscal 2007 third quarter, the company achieved
an operating margin of 7.6% on a year-over-year sales decrease of
11.8%. Darrow stated, "On significantly lower volume, we were able
to hold our margin against last year's third quarter and increase
it sequentially from our fiscal 2007 second quarter. This
performance continues to demonstrate the success of our cost-
containment initiatives, which are focused on increased global
sourcing as well as the conversion of our La-Z-Boy branded
facilities to the cellular production process, which will improve
our speed to market and quality while lowering costs." During the
quarter, the company signed a letter of intent to sell its Sam
Moore upholstered chair operations to Hooker Furniture and results
from Sam Moore are included in discontinued operations. A separate
press release announcing the pending transaction was distributed
simultaneously with this news release. Darrow continued, "We are
also working to broaden our distribution and further strengthen the
La-Z-Boy Furniture Galleries(R) store system." For the quarter, the
La-Z-Boy Furniture Galleries(R) store system, which includes both
company-owned and independent-licensed stores, opened eight new
stores, relocated and/or remodeled eight and closed three, bringing
the total store count to 340, of which 187 are in the New
Generation format. Darrow noted, "We are on track to open, relocate
or remodel approximately 45 New Generation stores in the overall
network in fiscal 2007 and plan in the fiscal fourth quarter to add
four new stores to the system, relocate or convert four and close
eight." System-wide, for the fourth calendar quarter, including
company-owned and independent-licensed stores, same-store written
sales, which the company tracks as an indicator of retail activity,
were down 8.3% and total sales, which includes new stores,
decreased 5.1%. Casegoods In the third quarter, casegoods sales
were $63.1 million, down 14.6% from last year's third quarter. The
segment's operating margin was 9.1%, versus last year's
third-quarter margin of 7.9%. Darrow stated, "As a result of
transitioning our business to primarily an import model with a
heavily variable cost structure, we posted solid operating
margins." Darrow added, "During the quarter we continued to
evaluate the various companies within our portfolio and our Board
approved a plan to sell our Pennsylvania House/Clayton Marcus
operation and their results are included in discontinued
operations. Pennsylvania House has very strong consumer brand
recognition and, together with Clayton Marcus, we will explore
alternatives to maximize returns to our shareholders. Looking ahead
in our casegoods business, we will maintain our focus on
competitive new product introductions, with superior design and
quality, while improving our service levels to our customers."
During the quarter, our petitioning casegoods companies
collectively received $3.4 million in Continued Dumping and Subsidy
Offset Act of 2000 (CDSOA) payments, net of legal expenses, in
duties collected in connection with the dumping of wooden bedroom
furniture imported from China and is not included in the segment's
operating income. Retail For the quarter, retail sales were $61.1
million compared with $57.4 million in last year's third quarter.
On an operating basis, the segment incurred a loss, primarily as a
result of the difficult retail environment, transition costs and
its high fixed-cost structure relative to current volume. Darrow
commented, "We continued to make significant changes to our
company-owned retail operation this quarter. We opened four new
company-owned stores, relocated one and converted two stores into
the New Generation format. Our strategy for company-owned stores
remains focused on the top 25 markets in North America where we can
have a large enough store system in the right locations to further
leverage our retail fixed cost structure. After evaluating our
company-owned network of stores, we made the decision to exit the
Pittsburgh, Pennsylvania market in order to focus on the larger
markets with greater potential. We are in the process of closing
four stores and a warehouse which will be completed at the end of
our fourth quarter." Darrow added, "La-Z-Boy Incorporated owns 72
stores, including 44 in the New Generation format. For the fourth
quarter, the company plans to add four New Generation stores to its
retail segment: two new stores and two relocations/conversions, and
will close six. This would bring the total number of company-owned
stores opened, remodeled and/or relocated during fiscal 2007 to 19,
with the total number of stores in the new format to 48,
representing 71% of the 68 stores anticipated at fiscal year end.
Our retail group continues to make progress in three key areas. We
are increasing sales by adding stores, converting and relocating
existing stores to the new format and achieving economies of scale
through better penetration in our markets. Second, we are reducing
redundancies and costs by consolidating individual market
operations and have already implemented a new operating system in
our Northeast region which will be rolled out to our other markets
with completion expected this Fall. Third, we are improving gross
margins as we re-merchandise the operations acquired over the past
two years. Restructuring During the quarter, a pre-tax
restructuring charge of $2.9 million, or $0.03 after-tax per share,
was recorded and principally relates to the store closings in the
Pittsburgh, Pennsylvania market and related contract termination
costs for leases, severance and benefits, the write-down of certain
leasehold improvements and other restructuring costs. Balance Sheet
For the quarter, the company's debt-to-capitalization ratio stood
at 25.4%, a decrease from fiscal 2006 year end's ratio of 26.5%.
The company did not repurchase any shares in the third quarter and
has approximately 5.4 million shares remaining in its program.
Business Outlook Commenting on the company's business outlook,
Darrow noted: "Although we have made strides in our wholesale
divisions from a margin perspective, the challenging retail
environment persists and we believe the industry, overall, will
continue to go through a difficult period. For the fiscal 2007
fourth quarter, we expect sales to be down 8% to 10% compared with
last year's fourth quarter and expect earnings per share to be in
the range of $0.03 to $0.07, including up to a $0.01 per share
charge for stock option expense. In last year's fourth-quarter, we
reported a loss per share of $0.20, which included a $0.44
write-down of intangibles." Forward-looking Information Any
forward-looking statements contained in this news release are based
on current information and assumptions and represent management's
best judgment at the present time. Actual results could differ
materially from those anticipated or projected due to a number of
factors. These factors include, but are not limited to: (a) changes
in consumer confidence; (b) changes in demographics; (c) changes in
housing sales; (d) the impact of terrorism or war; (e) continued
energy price changes; (f) the impact of logistics on imports; (g)
the impact of interest rate changes; (h) the potential disruptions
from Chinese imports; (i) inventory supply price fluctuations; (j)
the impact of imports as it relates to continued domestic
production; (k) changes in currency exchange rates; (l) competitive
factors; (m) operating factors, such as supply, labor or
distribution disruptions including changes in operating conditions
or costs; (n) effects of restructuring actions; (o) changes in the
domestic or international regulatory environment; (p) not fully
realizing cost reductions through restructurings; (q) ability to
implement global sourcing organization strategies; (r) the impact
of new manufacturing technologies; (s) the future financial
performance and condition of independently operated dealers that we
are required to consolidate into our financial statements or
changes requiring us to consolidate additional independently
operated dealers; (t) fair value changes to our intangible assets
due to actual results differing from projected; (u) the impact of
adopting new accounting principles; (v) the impact from natural
events such as hurricanes, earthquakes and tornadoes; (w) the
ability to turn around under- performing retail stores; (x) the
impact of retail store relocation costs, the success of new stores
or the timing of converting stores to the New Generation format;
(y) the ability to procure fabric rolls or cut and sewn fabric sets
domestically or abroad; (z) the ability to sell the discontinued
operations for their recorded fair value; and (aa) factors relating
to acquisitions 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, either to reflect 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://www.la-z-boy.com/about/investorRelations/sec_filings.aspx.
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://www.la-z-boy.com/about/investorRelations/IR_email_alerts.aspx.
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 Group companies are
Bauhaus, Centurion, England and La-Z-Boy. The La-Z-Boy Casegoods
Group companies are American Drew, Hammary, Kincaid and Lea. The
corporation's proprietary distribution network is dedicated
exclusively to selling La-Z-Boy Incorporated products and brands,
and includes 340 stand-alone La-Z-Boy Furniture Galleries(R) stores
and 307 La-Z-Boy In- Store Galleries, in addition to in-store
gallery programs at the company's Kincaid, England and Lea
operating units. According to industry trade publication In
Furniture, the La-Z-Boy Furniture Galleries retail network is North
America's largest single-brand furniture retailer. Additional
information is available at http://www.la-z-boy.com/. LA-Z-BOY
INCORPORATED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited,
amounts in thousands, except per share data) Third Quarter Ended
Percent of Sales % Over 1/27/07 1/28/06 (Under) 1/27/07 1/28/06
Sales $403,874 $446,614 -9.6% 100.0% 100.0% Cost of sales Cost of
goods sold 291,225 331,684 -12.2% 72.1% 74.3% Restructuring -- 594
100.0% -- 0.1% Total cost of sales 291,225 332,278 -12.4% 72.1%
74.4% Gross profit 112,649 114,336 -1.5% 27.9% 25.6% Selling,
general and administrative 100,704 96,648 4.2% 24.9% 21.6%
Restructuring 2,855 -- N/M 0.7% -- Operating income 9,090 17,688
-48.6% 2.3% 4.0% Interest expense 2,750 2,965 -7.3% 0.7% 0.7%
Income from Continued Dumping and Subsidy Offset Act, net 3,430 --
N/M 0.8% -- Other income, net 1,998 1,390 43.7% 0.5% 0.3% Income
from continuing operations before income taxes 11,768 16,113 -27.0%
2.9% 3.6% Income tax expense 4,823 6,132 -21.3% 41.0%* 38.1%*
Income from continuing operations 6,945 9,981 -30.4% 1.7% 2.2%
Income (loss) from discontinued operations (net of tax) (14,766)
487 N/M -3.7% 0.1% Net income (loss) $(7,821) $10,468 -174.7% -1.9%
2.3% Basic average shares 51,367 51,673 Basic income from
continuing operations per share $0.14 $0.19 Discontinued operations
(net of tax) $(0.29) $0.01 Basic net income (loss) per share
$(0.15) $0.20 Diluted average shares 51,609 51,857 Diluted income
from continuing operations per share $0.13 $0.19 Discontinued
operations (net of tax) $(0.28) $0.01 Diluted net income (loss) per
share $(0.15) $0.20 Dividends paid per share $0.12 $0.11 *As a
percent of pretax income, not sales. N/M = not meaningful LA-Z-BOY
INCORPORATED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited,
amounts in thousands, except per share data) Nine Months Ended
Percent of Sales % Over 1/27/07 1/28/06 (Under) 1/27/07 1/28/06
Sales $1,210,353 $1,245,636 -2.8% 100.0% 100.0% Cost of sales Cost
of goods sold 893,431 941,684 -5.1% 73.8% 75.6% Restructuring (400)
8,411 -104.8% -- 0.7% Total cost of sales 893,031 950,095 -6.0%
73.8% 76.3% Gross profit 317,322 295,541 7.4% 26.2% 23.7% Selling,
general and administrative 294,098 277,488 6.0% 24.3% 22.3%
Restructuring 5,120 -- N/M 0.4% -- Operating income 18,104 18,053
0.3% 1.5% 1.4% Interest expense 7,890 8,796 -10.3% 0.7% 0.7% Income
from Continued Dumping and Subsidy Offset Act, net 3,430 -- N/M
0.3% -- Other income, net 3,487 1,953 78.5% 0.3% 0.2% Income from
continuing operations before income taxes 17,131 11,210 52.8% 1.4%
0.9% Income tax expense 6,348 4,423 43.5% 37.1%* 39.5%* Income from
continuing operations 10,783 6,787 58.9% 0.9% 0.5% Income (loss)
from discontinued operations (net of tax) (14,355) 442 N/M -1.2% --
Net income (loss) $(3,572) $ 7,229 -149.4% -0.3% 0.6% Basic average
shares 51,509 51,819 Basic income from continuing operations per
share $0.21 $0.13 Discontinued operations (net of tax) $(0.28)
$0.01 Basic net income (loss) per share $(0.07) $0.14 Diluted
average shares 51,743 51,950 Diluted income from continuing
operations per share $0.21 $0.13 Discontinued operations (net of
tax) $(0.28) $0.01 Diluted net income (loss) per share $(0.07)
$0.14 Dividends paid per share $0.36 $0.33 *As a percent of pretax
income, not sales. N/M = not meaningful LA-Z-BOY INCORPORATED
CONSOLIDATED BALANCE SHEET (Unaudited, amounts in thousands)
Increase/(Decrease) 1/27/07 1/28/06 Dollars Percent 4/29/06 Current
assets Cash and equivalents $17,484 $20,508 $(3,024) -14.7% $24,089
Receivables, net 217,103 274,001 (56,898) -20.8% 270,578
Inventories, net 214,151 246,547 (32,396) -13.1% 238,826 Deferred
income taxes 31,369 29,385 1,984 6.8% 27,276 Assets of discontinued
operations 39,354 -- 39,354 N/M -- Other current assets 24,847
24,734 113 0.5% 23,790 Total current assets 544,308 595,175
(50,867) -8.5% 584,559 Property, plant and equipment, net 192,382
210,798 (18,416) -8.7% 209,986 Goodwill 55,409 79,770 (24,361)
-30.5% 56,926 Trade names 9,472 18,794 (9,322) -49.6% 18,794 Other
long-term assets 87,339 86,096 1,243 1.4% 100,909 Total assets
$888,910 $990,633 $(101,723) -10.3% $971,174 Current liabilities
Short-term borrowings $15,702 $13,718 $1,984 14.5% $8,000 Current
portion of long-term debt 3,312 2,566 746 29.1% 2,844 Accounts
payable 60,236 77,479 (17,243) -22.3% 85,561 Liabilities of
discontinued operations 5,681 -- 5,681 N/M -- Accrued expenses and
other current liabilities 105,636 129,203 (23,567) -18.2% 128,112
Total current liabilities 190,567 222,966 (32,399) -14.5% 224,517
Long-term debt 147,117 193,978 (46,861) -24.2% 173,368 Deferred
income taxes 9,605 4,946 4,659 94.2% 14,548 Other long-term
liabilities 54,961 57,723 (2,762) -4.8% 48,396 Contingencies and
commitments -- -- -- -- -- Shareholders' equity Common shares, $1
par value 51,372 51,713 (341) -0.7% 51,782 Capital in excess of par
value 207,184 211,273 (4,089) -1.9% 210,826 Retained earnings
222,601 261,272 (38,671) -14.8% 246,387 Unearned compensation --
(3,448) 3,448 100.0% (3,083) Accumulated other comprehensive income
(loss) 5,503 (9,790) 15,293 156.2% 4,433 Total shareholders' equity
486,660 511,020 (24,360) -4.8% 510,345 Total liabilities and
shareholders' equity $888,910 $990,633 $(101,723) -10.3% $971,174
N/M = not meaningful LA-Z-BOY INCORPORATED CONSOLIDATED STATEMENT
OF CASH FLOWS (Unaudited, amounts in thousands) Third Quarter Ended
Nine Months Ended 1/27/07 1/28/06 1/27/07 1/28/06 Cash flows from
operating activities Net income (loss) $(7,821) $10,468 $(3,572)
$7,229 Adjustments to reconcile net income (loss) to cash provided
by operating activities Write-down of assets of businesses held for
sale (net of tax) 13,674 -- 13,674 -- Gain on sale of discontinued
operations (net of tax) -- -- (1,280) -- Restructuring 2,855 594
4,720 8,411 Change in allowance for doubtful accounts (1,130) 293
(263) 444 Depreciation and amortization 6,233 7,499 20,122 21,675
Stock option and restricted stock expense 479 -- 3,211 -- Change in
receivables 23,847 (13,132) 22,842 15,267 Change in inventories
2,808 20,773 (14,309) 17,411 Change in payables (9,849) 4,082
(19,228) (5,822) Change in other assets and liabilities 106 4,296
(15,464) (5,688) Change in deferred taxes (2,270) (1,791) (9,036)
(7,049) Total adjustments 36,753 22,614 4,989 44,649 Net cash
provided by operating activities 28,932 33,082 1,417 51,878 Cash
flows from investing activities Proceeds from disposals of assets
314 905 25,276 8,625 Proceeds from sale of discontinued operations
-- -- 33,166 -- Capital expenditures (5,984) (6,196) (20,994)
(20,479) Purchases of investments (5,069) (6,420) (13,461) (21,980)
Proceeds from sales of investments 3,817 5,047 11,834 9,115 Change
in other long-term assets 539 841 343 (2,460) Net cash provided by
(used for) investing activities (6,383) (5,823) 36,164 (27,179)
Cash flows used for financing activities Proceeds from debt 12,577
14,334 91,252 86,471 Payments on debt (32,540) (31,406) (111,220)
(103,525) Stock issued for stock and employee benefit plans 567 909
1,333 2,954 Repurchases of common stock -- -- (6,947) (10,889)
Dividends paid (6,212) (5,728) (18,674) (17,200) Net cash used for
financing activities (25,608) (21,891) (44,256) (42,189) Effect of
exchange rate changes on cash and equivalents 14 103 70 293 Change
in cash and equivalents (3,045) 5,471 (6,605) (17,197) Cash and
equivalents at beginning of period 20,529 15,037 24,089 37,705 Cash
and equivalents at end of period $17,484 $20,508 $17,484 $20,508
Cash paid (net of refunds) during period - income taxes $558 $47
$17,655 $1,638 Cash paid during period - interest $2,911 $3,456
$7,769 $8,766 LA-Z-BOY INCORPORATED Segment Information (Unaudited,
amounts in thousands) Third Quarter Ended Nine Months Ended 1/27/07
1/28/06 1/27/07 1/28/06 Sales Upholstery Group $292,738 $331,805
$890,675 $924,149 Casegoods Group 63,127 73,926 198,317 218,299
Retail Group 61,149 57,432 165,838 159,332 VIEs/Eliminations
(13,140) (16,549) (44,477) (56,144) Consolidated $403,874 $446,614
$1,210,353 $1,245,636 Operating income (loss) Upholstery Group
$22,286 $25,147 $59,344 $51,625 Casegoods Group 5,721 5,830 15,163
12,967 Retail Group (6,738) (5,987) (23,222) (17,469) Corporate and
Other* (9,324) (6,708) (28,461) (20,659) Restructuring (2,855)
(594) (4,720) (8,411) Consolidated $9,090 $17,688 $18,104 $18,053
Prior Quarters Ended in Fiscal 2007 7/29/06 10/28/06 Sales
Upholstery Group $294,325 $303,612 Casegoods Group 61,026 74,164
Retail Group 52,204 52,485 VIEs/Eliminations (14,704) (16,633)
Consolidated $392,851 $413,628 Operating income (loss) Upholstery
Group $17,260 $19,798 Casegoods Group 3,242 6,200 Retail Group
(7,715) (8,769) Corporate and Other* (9,920) (9,217) Restructuring
-- (1,865) Consolidated $2,867 $6,147 Prior Quarters Ended in
Fiscal 2006 7/30/05 10/29/05 1/28/06 4/29/06 Sales Upholstery Group
$294,071 $298,273 $331,805 $341,803 Casegoods Group 70,617 73,756
73,926 74,254 Retail Group 52,655 49,245 57,432 54,106
VIEs/Eliminations (20,648) (18,947) (16,549) (20,787) Consolidated
$396,695 $402,327 $446,614 $449,376 Operating income (loss)
Upholstery Group $14,645 $11,833 $25,147 $31,535 Casegoods Group
3,694 3,443 5,830 4,158 Retail Group (5,408) (6,074) (5,987)
(8,537) Corporate and Other* (6,168) (7,783) (6,708) (7,906)
Write-down of intangibles -- -- -- (22,695) Restructuring --
(7,817) (594) (68) Consolidated $6,763 $(6,398) $17,688 $(3,513)
*Variable Interest Entities ("VIEs") are included in corporate and
other. DATASOURCE: La-Z-Boy Incorporated CONTACT: Mark Stegeman,
+1-734-241-4418, or , or Kathy Liebmann, +1-734-241-2438, or , both
of La-Z-Boy Incorporated Web site: http://www.la-z-boy.com/
Copyright
La Z Boy (NYSE:LZB)
過去 株価チャート
から 6 2024 まで 7 2024
La Z Boy (NYSE:LZB)
過去 株価チャート
から 7 2023 まで 7 2024