La-Z-Boy Incorporated (NYSE: LZB) today reported its operating
results for the fiscal 2019 second quarter ended October 27, 2018.
During the second quarter of fiscal 2019
versus last year’s second quarter:
- Consolidated sales increased 11.7%
to $439.3 million on solid core growth and the addition of recent
acquisitions
- Written same-store sales for the
353-store La-Z-Boy Furniture Galleries® network increased 4.4%, the
seventh consecutive quarterly increase
- Delivered same-store sales for the
company-owned retail segment increased 4.0%
- Consolidated operating income:--
GAAP: $28.5 million versus $34.3 million -- Non-GAAP*:
$32.2 million versus $35.0 million**
- Consolidated operating
margin:-- GAAP: 6.5% versus 8.7% -- Non-GAAP*: 7.3%
versus 8.9%**
- Net income attributable to La-Z-Boy
Incorporated per share (“EPS”):-- GAAP: $0.42 per diluted
share versus $0.47 per diluted share -- Non-GAAP*: $0.48
per diluted share versus $0.48 per diluted share**
*Non-GAAP amounts for the second quarter of
fiscal 2019 exclude purchase accounting charges totaling $3.9
million, with $3.7 million included in operating income and $0.2
million included in interest expense, or $0.06 per diluted share.
Non-GAAP amounts for the second quarter of fiscal 2018 exclude
purchase accounting charges totaling $0.7 million, all included in
operating income, or $0.01 per diluted share.
**Please refer to the accompanying
“Reconciliation of GAAP to Non-GAAP Financial Measures” for
detailed information on calculating Non-GAAP measures used in this
press release and a reconciliation to the applicable GAAP
measure.
For the second quarter of fiscal 2019,
consolidated sales increased 11.7% to $439.3 million on solid base
business growth as well as consolidation of recent
acquisitions. Consolidated GAAP operating margin was 6.5%
versus 8.7% in the prior-year quarter. Excluding purchase
accounting charges, Non-GAAP operating margin was 7.3% in the
second quarter of the current year versus 8.9% in the second
quarter of last year. The decline in operating margin was driven
primarily by the Upholstery segment, as well as an increase of
approximately 60 basis points for higher incentive compensation
expense in the current quarter.
Sales in the company’s Upholstery segment
increased 4% to $317.1 million and GAAP operating margin was 10.1%
compared with 11.0% in last year’s second quarter. Non-GAAP
Upholstery operating margin was 10.2% in the current-year quarter
vs. 11.1% in last year’s second quarter. Operating margin declined,
as price increases taken over the last year to counter increased
raw material costs were more than offset by changes in product mix
and inflationary pressures in our supply chain, including
procurement, manufacturing operations and logistics. In the
Casegoods segment, sales increased 11.8% to $31.4 million in the
second quarter of fiscal 2019 and GAAP operating margin increased
to 12.0% from 11.8% in the prior-year period, driven by a strong
portfolio of on-trend collections, a reliable in-stock position and
quick ship times.
Sales in the Retail segment increased 19.7% to
$139.7 million in the second quarter of fiscal 2019 reflecting
strong results for the core stores as well as $16.8 million of
sales from acquisitions. On the core base of 141 stores
included in last year’s second quarter, delivered same-store sales
increased 4.0%. GAAP operating margin for the Retail segment
improved to 4.7% from 3.3% in last year’s second quarter. Non-GAAP
Retail operating margin was 5.4% in the current-year quarter
compared with 3.6% in last-year’s second quarter, driven by both
delivered same-store sales and the profitability of the Arizona
market, acquired early in the second quarter of fiscal 2019.
GAAP EPS for the fiscal 2019 second quarter was
$0.42 per diluted share versus $0.47 per diluted share in the
prior-year period. Non-GAAP EPS was $0.48 per diluted share in the
current-year quarter, unchanged from the comparable fiscal 2018
second quarter. The fiscal 2019 quarter included higher incentive
compensation costs of approximately $0.05 per share versus last
year. The prior-year EPS included a $0.02 per share benefit from an
insurance gain and a $0.03 per share benefit for discrete tax
items, and fiscal 2019 includes a $0.05 per share benefit from
lower income taxes when compared with fiscal 2018, as Tax Reform
(2017 Tax Cut and Jobs Act) had not been enacted as of the end of
the company’s fiscal 2018 second quarter.
Kurt L. Darrow, Chairman, President and Chief
Executive Officer of La-Z-Boy, said, “Solid across-the-board sales
increases demonstrate the fundamental strength of our various
brands, core manufacturing capabilities and retail business, even
as we contend with record-high commodity costs and tariff
headwinds. In addition, we are pleased with the progress of
our recent acquisitions. Arizona is already contributing to
top-line and Non-GAAP bottom-line results. Additionally, we are
excited by the potential of Joybird with its proven ability to
reach younger consumers through the e-commerce channel and our
plans to leverage existing La-Z-Boy domestic manufacturing
facilities to fuel Joybird’s growth and drive cost
synergies.”
Acquisitions
During the quarter the company closed on the
acquisition of Joybird and 10 La-Z-Boy Furniture Galleries® stores
– nine in Arizona and one in North Dartmouth, Massachusetts.
During the second quarter the company recorded
$3.9 million of purchase accounting charges, with $2.7 million of
these charges related to the Joybird acquisition, including $2.5
million in operating income which is reported as part of Corporate
& Other and $0.2 million in interest expense, and approximately
$1.0 million related to the Arizona and North Dartmouth
acquisitions, which are reported as part of the company’s Retail
segment. The remaining $0.2 million of purchase accounting charges,
as well as the $0.7 million of purchase accounting charges recorded
in the prior-year period, are related to previous acquisitions that
closed prior to the second quarter of fiscal 2019. These
items are treated as Non-GAAP adjustments and are discussed further
at the end of this press release under “Reconciliation of GAAP to
Non-GAAP Financial Measures.”
Joybird and the acquired La-Z-Boy Furniture
Galleries® stores are key strategic acquisitions for the company
and are intended to drive long-term growth and profitability. On a
Non-GAAP basis, the combined entities are expected to be slightly
accretive to profit by the end of fiscal 2019. The company expects
purchase accounting charges to be approximately $0.12 to $0.14 per
diluted share for the full fiscal 2019 year.
Balance Sheet and Cash Flow
During the quarter, the company generated $13.9
million in cash from operating activities. La-Z-Boy ended the
quarter with $93.9 million in cash and cash equivalents, $29.8
million in investments to enhance returns on cash, and $2.0 million
in restricted cash. The company used $85.6 million for the Joybird
and the La-Z-Boy Furniture Galleries® store acquisitions payments
made during the quarter, with $7.5 million reported as a use of
operating cash and $78.1 million reported as a use of investing
cash on the cash flow statement. La-Z-Boy also invested $11.1
million in the business through capital expenditures. Additionally,
the company spent $5.7 million on dividends to shareholders and
$3.7 million purchasing 0.1 million shares of stock in the open
market under its existing authorized share purchase program,
leaving 6.3 million shares of purchase availability in the
program. La-Z-Boy borrowed $35.0 million under its revolving
line of credit in the second quarter of fiscal 2019 to fund a
portion of the acquisition payments made during the quarter.
Outlook
Darrow concluded, “As the furniture industry
weathers the uncertainty of ongoing tariffs, La-Z-Boy is
competitively well positioned with a strong business model powered
by a diversified global supply chain and domestic manufacturing
footprint. Additionally, Joybird has the potential to drive
meaningful growth for the company with a new channel and different
generation of consumers. We believe La-Z-Boy Incorporated is
poised to deliver solid ongoing returns to shareholders over the
long term.”
Dividend
Subsequent to quarter end, the board of
directors increased the company’s regular quarterly dividend to
shareholders by 8% to $0.13 per share. The dividend will be
paid on December 20, 2018, to shareholders of record as of December
10, 2018.
Conference Call
La-Z-Boy will hold a conference call with the
investment community on Thursday, November 29, 2018, at 8:30 a.m.
eastern time. The toll-free dial-in number is 877.407.9205;
international callers may use 201.689.8054.
The call will be webcast live, with
corresponding slides, and archived on the Internet. It will
be available at https://lazboy.gcs-web.com/. A telephone replay
will be available for a week following the call. This replay will
be accessible to callers from the U.S. and Canada at 877.481.4010
and to international callers at 919.882.2331. Enter Conference ID
#40751. The webcast replay will be available for one year.
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)
the possibility of a recession; (c) changes in the real estate and
credit markets and their effects on our customers, consumers and
suppliers; (d) international political unrest, terrorism or war;
(e) volatility in energy and other commodities prices; (f) the
impact of logistics on imports and exports; (g) tax rate, interest
rate, and currency exchange rate changes; (h) changes in the stock
market impacting our profitability and our effective tax rate; (i)
operating factors, such as supply, labor or distribution
disruptions (e.g. port strikes); (j) changes in legislation,
including the tax code, or changes in the domestic or international
regulatory environment or trade policies, including new or
increased duties, tariffs, retaliatory tariffs, trade limitations
and termination or renegotiation of the North American Free Trade
Agreement; (k) adoption of new accounting principles; (l) fires,
severe weather or other natural events such as hurricanes,
earthquakes, flooding, tornadoes and tsunamis; (m) our ability to
procure, transport or import, or material increases to the cost of
transporting or importing, fabric rolls, leather hides or
cut-and-sewn fabric and leather sets domestically or abroad; (n)
information technology conversions or system failures and our
ability to recover from a system failure; (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)
unusual or significant litigation; (s) our ability to locate new
La-Z-Boy Furniture Galleries® stores (or store owners) and
negotiate favorable lease terms for new or existing locations; (t)
the ability to increase volume through our e-commerce initiatives;
(u) the impact of potential goodwill or intangible asset
impairments; and (v) those matters discussed in Item 1A of our
fiscal 2018 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:
https://lazboy.gcs-web.com/financial-information/sec-filings.
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: https://lazboy.gcs-web.com/.
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 157 of the 353 La-Z-Boy
Furniture Galleries® stores. Joybird is an e-commerce
retailer and manufacturer of upholstered furniture.
The corporation’s branded distribution network
is dedicated to selling La-Z-Boy Incorporated products and brands,
and includes 353 stand-alone La-Z-Boy Furniture Galleries® stores
and 543 independent Comfort Studio® 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/.
Non-GAAP Financial Measures
In addition to the financial measures prepared
in accordance with accounting principles generally accepted in the
United States ("GAAP"), this press release also includes Non-GAAP
financial measures. Management uses these Non-GAAP financial
measures when assessing our ongoing performance. This press release
contains references to Non-GAAP operating income, Non-GAAP
operating margin, Non-GAAP income before income taxes, Non-GAAP net
income attributable to La-Z-Boy Incorporated and Non-GAAP net
income attributable to La-Z-Boy Incorporated per diluted share,
each of which excludes purchase accounting charges. These purchase
accounting charges include the amortization of intangible assets,
incremental expense upon the sale of inventory acquired at fair
value, amortization of employee retention agreements, and fair
value adjustments of future cash payments recorded as interest
expense. These Non-GAAP financial measures are not meant to be
considered superior to or a substitute for La-Z-Boy Incorporated’s
results of operations prepared in accordance with GAAP, and may not
be comparable to similarly titled measures reported by other
companies. Reconciliations of such Non-GAAP financial measures to
the most directly comparable GAAP financial measures are set forth
in the accompanying tables.
Management believes that presenting certain
Non-GAAP financial measures excluding purchase accounting charges
will help investors understand the long-term profitability trends
of our business and compare our profitability to prior and future
periods and to our peers. Management uses these Non-GAAP measures
to assess the Company’s operating and financial performance, and
excludes purchase accounting charges because the amount and timing
of such charges are significantly impacted by the timing, size,
number and nature of the acquisitions consummated. While the
company has a history of acquisition activity, it does not acquire
businesses on a predictable cycle, and the impact of purchase
accounting charges is unique to each acquisition and can vary
significantly from acquisition to acquisition. Exclusion of these
charges facilitates more consistent comparisons of operating
results over time between our newly acquired and long-held
businesses, and with both acquisitive and non-acquisitive peer
companies. Where applicable, the accompanying “Reconciliation of
GAAP to Non-GAAP Financial Measures” tables present the excluded
items net of tax calculated using the effective tax rate from
operations for the period in which the adjustment is
presented.
|
|
|
LA-Z-BOY INCORPORATED CONSOLIDATED
STATEMENT OF INCOME |
|
|
|
|
|
|
|
Quarter Ended |
|
|
(Unaudited, amounts in thousands, except per share
data) |
|
10/27/18 |
|
10/28/17 |
|
|
Sales |
|
$439,333 |
|
$393,205 |
|
|
Cost of sales |
|
|
264,928 |
|
|
238,253 |
|
|
Gross
profit |
|
|
174,405 |
|
|
154,952 |
|
|
Selling, general and
administrative expense |
|
|
145,905 |
|
|
120,683 |
|
|
Operating
income |
|
|
28,500 |
|
|
34,269 |
|
|
Interest expense |
|
|
(501 |
) |
|
(160 |
) |
|
Interest income |
|
|
392 |
|
|
376 |
|
|
Other expense, net |
|
|
(1,997 |
) |
|
(926 |
) |
|
Income
before income taxes |
|
|
26,394 |
|
|
33,559 |
|
|
Income tax expense |
|
|
6,045 |
|
|
10,353 |
|
|
Net
income |
|
|
20,349 |
|
|
23,206 |
|
|
Net income attributable
to noncontrolling interests |
|
|
(337 |
) |
|
(310 |
) |
|
Net
income attributable to La-Z-Boy Incorporated |
|
$20,012 |
|
$22,896 |
|
|
|
|
|
|
|
|
|
Basic weighted average
common shares |
|
|
46,888 |
|
|
47,964 |
|
|
Basic net income
attributable to La-Z-Boy Incorporated per share |
|
$0.43 |
|
$0.47 |
|
|
|
|
|
|
|
|
|
Diluted weighted
average common shares |
|
|
47,259 |
|
|
48,297 |
|
|
Diluted net income
attributable to La-Z-Boy Incorporated per share |
|
$0.42 |
|
$0.47 |
|
|
|
|
|
|
|
|
|
Dividends declared per
share |
|
$0.12 |
|
$0.11 |
|
|
LA-Z-BOY INCORPORATED CONSOLIDATED
STATEMENT OF INCOME |
|
|
|
|
|
|
|
Six Months Ended |
|
|
(Unaudited, amounts in thousands, except per share
data) |
|
10/27/18 |
|
10/28/17 |
|
|
Sales |
|
$824,028 |
|
$750,284 |
|
|
Cost of sales |
|
|
501,101 |
|
|
456,229 |
|
|
Gross
profit |
|
|
322,927 |
|
|
294,055 |
|
|
Selling, general and
administrative expense |
|
|
271,267 |
|
|
243,488 |
|
|
Operating
income |
|
|
51,660 |
|
|
50,567 |
|
|
Interest expense |
|
|
(605 |
) |
|
(317 |
) |
|
Interest income |
|
|
994 |
|
|
719 |
|
|
Other income (expense),
net |
|
|
(1,105 |
) |
|
823 |
|
|
Income
before income taxes |
|
|
50,944 |
|
|
51,792 |
|
|
Income tax expense |
|
|
11,644 |
|
|
16,842 |
|
|
Net
income |
|
|
39,300 |
|
|
34,950 |
|
|
Net income attributable
to noncontrolling interests |
|
|
(985 |
) |
|
(403 |
) |
|
Net
income attributable to La-Z-Boy Incorporated |
|
$38,315 |
|
$34,547 |
|
|
|
|
|
|
|
|
|
Basic weighted average
common shares |
|
|
46,802 |
|
|
48,160 |
|
|
Basic net income
attributable to La-Z-Boy Incorporated per share |
|
$0.82 |
|
$0.71 |
|
|
|
|
|
|
|
|
|
Diluted weighted
average common shares |
|
|
47,219 |
|
|
48,537 |
|
|
Diluted net income
attributable to La-Z-Boy Incorporated per share |
|
$0.81 |
|
$0.71 |
|
|
|
|
|
|
|
|
|
Dividends declared per
share |
|
$0.24 |
|
$0.22 |
|
|
LA-Z-BOY INCORPORATEDCONSOLIDATED
BALANCE SHEET |
|
|
|
(Unaudited, amounts in thousands, except par
value) |
|
10/27/18 |
|
4/28/18 |
|
Current assets |
|
|
|
|
|
Cash and
equivalents |
|
$93,867 |
|
$134,515 |
|
Restricted cash |
|
|
2,001 |
|
|
2,356 |
|
Receivables, net of allowance of $2,647 at 10/27/18 and $1,956 at
4/28/18 |
|
|
150,507 |
|
|
154,055 |
|
Inventories, net |
|
|
214,948 |
|
|
184,841 |
|
Other
current assets |
|
|
76,093 |
|
|
42,451 |
|
Total
current assets |
|
|
537,416 |
|
|
518,218 |
|
Property, plant and
equipment, net |
|
|
195,327 |
|
|
180,882 |
|
Goodwill |
|
|
182,116 |
|
|
75,254 |
|
Other intangible
assets, net |
|
|
30,500 |
|
|
18,190 |
|
Deferred income taxes –
long-term |
|
|
23,227 |
|
|
21,265 |
|
Other long-term assets,
net |
|
|
83,549 |
|
|
79,158 |
|
Total
assets |
|
$1,052,135 |
|
$892,967 |
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
Short-term borrowings |
|
$35,000 |
|
|
$— |
|
Current
portion of long-term debt |
|
|
217 |
|
|
223 |
|
Accounts
payable |
|
|
75,090 |
|
|
62,403 |
|
Accrued
expenses and other current liabilities |
|
|
176,075 |
|
|
118,721 |
|
Total
current liabilities |
|
|
286,382 |
|
|
181,347 |
|
Long-term debt |
|
|
89 |
|
|
199 |
|
Other long-term
liabilities |
|
|
116,433 |
|
|
86,205 |
|
Contingencies and
commitments |
|
|
|
|
|
Shareholders’
equity |
|
|
|
|
|
Preferred
shares – 5,000 authorized; none issued |
|
|
— |
|
|
— |
|
Common
shares, $1 par value – 150,000 authorized; 46,905 outstanding at
10/27/18 and 46,788 outstanding at 4/28/18 |
|
|
46,905 |
|
|
46,788 |
|
Capital
in excess of par value |
|
|
307,701 |
|
|
298,948 |
|
Retained
earnings |
|
|
309,543 |
|
|
291,644 |
|
Accumulated other comprehensive loss |
|
|
(28,329 |
) |
|
(25,199 |
) |
Total
La-Z-Boy Incorporated shareholders’ equity |
|
|
635,820 |
|
|
612,181 |
|
Noncontrolling interests |
|
|
13,411 |
|
|
13,035 |
|
Total
equity |
|
|
649,231 |
|
|
625,216 |
|
Total
liabilities and equity |
|
$1,052,135 |
|
$892,967 |
|
|
|
|
|
|
|
LA-Z-BOY INCORPORATEDCONSOLIDATED
STATEMENT OF CASH FLOWS |
|
|
|
|
|
Six Months Ended |
|
(Unaudited,
amounts in thousands) |
|
10/27/18 |
|
10/28/17 |
|
Cash flows from operating activities |
|
|
|
|
|
Net
income |
|
$39,300 |
|
$34,950 |
|
Adjustments to reconcile net income to cash provided by
(used for) operating activities |
|
|
|
|
|
Gain on
disposal of assets |
|
|
(72 |
) |
|
(1,884 |
) |
Gain on
conversion of investment |
|
|
— |
|
|
(2,204 |
) |
Change in
deferred taxes |
|
|
1,572 |
|
|
(403 |
) |
Provision
for doubtful accounts |
|
|
315 |
|
|
74 |
|
Depreciation and amortization |
|
|
15,541 |
|
|
15,869 |
|
Equity-based compensation expense |
|
|
5,679 |
|
|
6,410 |
|
Pension
plan contributions |
|
|
(7,000 |
) |
|
(2,000 |
) |
Change in
receivables |
|
|
122 |
|
|
6,165 |
|
Change in
inventories |
|
|
(15,037 |
) |
|
(4,096 |
) |
Change in
other assets |
|
|
(15,781 |
) |
|
(7,935 |
) |
Change in
payables |
|
|
6,034 |
|
|
2,136 |
|
Change in
other liabilities |
|
|
15,411 |
|
|
4,142 |
|
Net cash
provided by operating activities |
|
|
46,084 |
|
|
51,224 |
|
|
|
|
|
|
|
Cash flows from
investing activities |
|
|
|
|
|
Proceeds
from disposals of assets |
|
|
256 |
|
|
608 |
|
Proceeds
from property insurance |
|
|
114 |
|
|
1,485 |
|
Capital
expenditures |
|
|
(26,926 |
) |
|
(16,372 |
) |
Purchases
of investments |
|
|
(5,193 |
) |
|
(18,507 |
) |
Proceeds
from sales of investments |
|
|
7,754 |
|
|
11,529 |
|
Acquisitions, net of cash acquired |
|
|
(78,145 |
) |
|
(15,879 |
) |
Net cash
used for investing activities |
|
|
(102,140 |
) |
|
(37,136 |
) |
|
|
|
|
|
|
Cash flows from
financing activities |
|
|
|
|
|
Net
proceeds from credit facility |
|
|
35,000 |
|
|
— |
|
Payments
on debt |
|
|
(116 |
) |
|
(131 |
) |
Stock
issued for stock and employee benefit plans, net of
shares withheld for taxes |
|
|
4,039 |
|
|
356 |
|
Purchases
of common stock |
|
|
(11,610 |
) |
|
(30,692 |
) |
Dividends
paid |
|
|
(11,278 |
) |
|
(10,648 |
) |
Net cash
provided by (used for) financing activities |
|
|
16,035 |
|
|
(41,115 |
) |
|
|
|
|
|
|
Effect of exchange rate
changes on cash and equivalents |
|
|
(982 |
) |
|
865 |
|
Change in cash, cash
equivalents and restricted cash |
|
|
(41,003 |
) |
|
(26,162 |
) |
Cash, cash equivalents
and restricted cash at beginning of period |
|
|
136,871 |
|
|
150,859 |
|
Cash, cash equivalents
and restricted cash at end of period |
|
$95,868 |
|
$124,697 |
|
|
|
|
|
|
|
Supplemental disclosure
of non-cash investing activities |
|
|
|
|
|
capital expenditures
included in payables |
|
$4,442 |
|
$1,631 |
|
LA-Z-BOY INCORPORATEDSEGMENT
INFORMATION |
|
|
|
|
|
Quarter Ended |
|
Six Months Ended |
|
(Unaudited, amounts in
thousands) |
|
10/27/18 |
|
10/28/17 |
|
10/27/18 |
|
10/28/17 |
|
Sales |
|
|
|
|
|
|
|
|
|
Upholstery
segment: |
|
|
|
|
|
|
|
|
|
Sales to
external customers |
|
$254,028 |
|
$251,741 |
|
$494,082 |
|
$476,555 |
|
Intersegment sales |
|
|
63,065 |
|
|
53,020 |
|
|
116,409 |
|
|
102,613 |
|
Upholstery segment
sales |
|
|
317,093 |
|
|
304,761 |
|
|
610,491 |
|
|
579,168 |
|
|
|
|
|
|
|
|
|
|
|
Casegoods segment: |
|
|
|
|
|
|
|
|
|
Sales to
external customers |
|
|
26,242 |
|
|
23,915 |
|
|
50,645 |
|
|
44,934 |
|
Intersegment sales |
|
|
5,135 |
|
|
4,150 |
|
|
9,118 |
|
|
8,641 |
|
Casegoods segment
sales |
|
|
31,377 |
|
|
28,065 |
|
|
59,763 |
|
|
53,575 |
|
|
|
|
|
|
|
|
|
|
|
Retail segment
sales |
|
|
139,686 |
|
|
116,737 |
|
|
258,914 |
|
|
227,253 |
|
|
|
|
|
|
|
|
|
|
|
Corporate and
Other: |
|
|
|
|
|
|
|
|
|
Sales to
external customers |
|
|
19,377 |
|
|
812 |
|
|
20,387 |
|
|
1,542 |
|
Intersegment sales |
|
|
3,001 |
|
|
2,091 |
|
|
5,856 |
|
|
4,021 |
|
Corporate and Other
sales |
|
|
22,378 |
|
|
2,903 |
|
|
26,243 |
|
|
5,563 |
|
|
|
|
|
|
|
|
|
|
|
Eliminations |
|
|
(71,201 |
) |
|
(59,261 |
) |
|
(131,383 |
) |
|
(115,275 |
) |
Consolidated sales |
|
$439,333 |
|
$393,205 |
|
$824,028 |
|
$750,284 |
|
|
|
|
|
|
|
|
|
|
|
Operating
Income (Loss) |
|
|
|
|
|
|
|
|
|
Upholstery segment |
|
$32,152 |
|
$33,424 |
|
$56,036 |
|
$56,723 |
|
Casegoods segment |
|
|
3,761 |
|
|
3,302 |
|
|
6,841 |
|
|
6,041 |
|
Retail segment |
|
|
6,563 |
|
|
3,903 |
|
|
11,021 |
|
|
5,670 |
|
Corporate and
Other |
|
|
(13,976 |
) |
|
(6,360 |
) |
|
(22,238 |
) |
|
(17,867 |
) |
Consolidated operating income |
|
$28,500 |
|
$34,269 |
|
$51,660 |
|
$50,567 |
|
|
|
|
|
|
|
|
|
|
|
LA-Z-BOY INCORPORATEDRECONCILIATION
OF GAAP TO NON-GAAP FINANCIAL MEASURES |
|
|
|
|
|
Quarter Ended |
|
Six Months Ended |
|
(Unaudited, amounts in thousands,
except per share data) |
|
10/27/18 |
|
10/28/17 |
|
10/27/18 |
|
10/28/17 |
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit |
|
$174,405 |
|
$154,952 |
|
$322,927 |
|
$294,055 |
|
Add back:
Purchase accounting charges – incremental expense upon the
sale of inventory acquired at fair value |
|
|
2,448 |
|
|
127 |
|
|
2,491 |
|
|
261 |
|
Non-GAAP gross
profit |
|
$176,853 |
|
$155,079 |
|
$325,418 |
|
$294,316 |
|
|
|
|
|
|
|
|
|
|
|
GAAP SG&A |
|
$145,905 |
|
$120,683 |
|
$271,267 |
|
$243,488 |
|
Less:
Purchase accounting charges – amortization of
intangible assets and retention agreements |
|
|
(1,238 |
) |
|
(595 |
) |
|
(1,341 |
) |
|
(956 |
) |
Non-GAAP SG&A |
|
$144,667 |
|
$120,088 |
|
$269,926 |
|
$242,532 |
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income |
|
$28,500 |
|
$34,269 |
|
$51,660 |
|
$50,567 |
|
Add back:
Purchase accounting charges |
|
|
3,686 |
|
|
722 |
|
|
3,832 |
|
|
1,217 |
|
Non-GAAP operating
income |
|
$32,186 |
|
$34,991 |
|
$55,492 |
|
$51,784 |
|
|
|
|
|
|
|
|
|
|
|
GAAP income before
income taxes |
|
$26,394 |
|
$33,559 |
|
$50,944 |
|
$51,792 |
|
Add back:
Purchase accounting charges recorded as part of gross
profit, SG&A, and interest expense |
|
|
3,875 |
|
|
722 |
|
|
4,020 |
|
|
1,217 |
|
Non-GAAP income before
income taxes |
|
$30,269 |
|
$34,281 |
|
$54,964 |
|
$53,009 |
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to La-Z-Boy Incorporated |
|
$20,012 |
|
$22,896 |
|
$38,315 |
|
$34,547 |
|
Add back:
Purchase accounting charges recorded as part of gross profit,
SG&A, and interest expense |
|
|
3,875 |
|
|
722 |
|
|
4,020 |
|
|
1,217 |
|
Less: Tax
effect of purchase accounting charges |
|
|
(887 |
) |
|
(222 |
) |
|
(921 |
) |
|
(396 |
) |
Non-GAAP net income
attributable to La-Z-Boy Incorporated |
|
$23,000 |
|
$23,396 |
|
$41,414 |
|
$35,368 |
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to La-Z-Boy Incorporated per diluted share |
|
$0.42 |
|
$0.47 |
|
$0.81 |
|
$0.71 |
|
Add back:
Purchase accounting charges, net of tax, per share |
|
|
0.06 |
|
|
0.01 |
|
|
0.07 |
|
|
0.02 |
|
Non-GAAP net income
attributable to La-Z- Boy Incorporated per diluted share |
|
$0.48 |
|
$0.48 |
|
$0.88 |
|
$0.73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LA-Z-BOY INCORPORATEDRECONCILIATION
OF GAAP TO NON-GAAP FINANCIAL MEASURESSEGMENT
INFORMATION |
|
|
|
|
|
Quarter Ended |
|
(Unaudited, amounts in
thousands) |
|
10/27/18 |
|
% of sales |
|
10/28/17 |
|
% of sales |
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income
(loss) |
|
|
|
|
|
|
|
|
|
Upholstery segment |
|
$32,152 |
|
10.1% |
|
|
$33,424 |
|
11.0% |
|
|
Casegoods
segment |
|
|
3,761 |
|
12.0% |
|
|
|
3,302 |
|
11.8% |
|
|
Retail
segment |
|
|
6,563 |
|
4.7% |
|
|
|
3,903 |
|
3.3% |
|
|
Corporate
and Other |
|
|
(13,976 |
) |
N/M |
|
|
|
(6,360 |
) |
N/M |
|
|
GAAP
Consolidated operating income |
|
$28,500 |
|
6.5% |
|
|
$34,269 |
|
8.7% |
|
|
|
|
|
|
|
|
|
|
|
|
Purchase accounting
charges affecting operating income |
|
|
|
|
|
|
|
|
|
Upholstery segment |
|
$101 |
|
|
|
$369 |
|
|
|
Casegoods
segment |
|
|
— |
|
|
|
|
— |
|
|
|
Retail
segment |
|
|
1,045 |
|
|
|
|
353 |
|
|
|
Corporate
and Other |
|
|
2,540 |
|
|
|
|
— |
|
|
|
Consolidated purchase accounting charges affecting operating
income |
|
$3,686 |
|
|
|
$722 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating
income (loss) |
|
|
|
|
|
|
|
|
|
Upholstery segment |
|
$32,253 |
|
10.2% |
|
|
$33,793 |
|
11.1% |
|
|
Casegoods
segment |
|
|
3,761 |
|
12.0% |
|
|
|
3,302 |
|
11.8% |
|
|
Retail
segment |
|
|
7,608 |
|
5.4% |
|
|
|
4,256 |
|
3.6% |
|
|
Corporate
and Other |
|
|
(11,436 |
) |
N/M |
|
|
|
(6,360 |
) |
N/M |
|
|
Non-GAAP
Consolidated operating income |
|
$32,186 |
|
7.3% |
|
|
$34,991 |
|
8.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
10/27/18 |
|
% of sales |
|
10/28/17 |
|
% of sales |
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income
(loss) |
|
|
|
|
|
|
|
|
|
Upholstery segment |
|
$56,036 |
|
9.2% |
|
|
$56,723 |
|
9.8% |
|
|
Casegoods
segment |
|
|
6,841 |
|
11.4% |
|
|
|
6,041 |
|
11.3% |
|
|
Retail
segment |
|
|
11,021 |
|
4.3% |
|
|
|
5,670 |
|
2.5% |
|
|
Corporate
and Other |
|
|
(22,238 |
) |
N/M |
|
|
|
(17,867 |
) |
N/M |
|
|
GAAP
Consolidated operating income |
|
$51,660 |
|
6.3% |
|
|
$50,567 |
|
6.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase accounting
charges affecting operating income |
|
|
|
|
|
|
|
|
|
Upholstery segment |
|
$204 |
|
|
|
$730 |
|
|
|
Casegoods
segment |
|
|
— |
|
|
|
|
— |
|
|
|
Retail
segment |
|
|
1,088 |
|
|
|
|
487 |
|
|
|
Corporate
and Other |
|
|
2,540 |
|
|
|
|
— |
|
|
|
Consolidated purchase accounting charges affecting operating
income |
|
$3,832 |
|
|
|
$1,217 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating
income (loss) |
|
|
|
|
|
|
|
|
|
Upholstery segment |
|
$56,240 |
|
9.2% |
|
|
$57,453 |
|
9.9% |
|
|
Casegoods
segment |
|
|
6,841 |
|
11.4% |
|
|
|
6,041 |
|
11.3% |
|
|
Retail
segment |
|
|
12,109 |
|
4.7% |
|
|
|
6,157 |
|
2.7% |
|
|
Corporate
and Other |
|
|
(19,698 |
) |
N/M |
|
|
|
(17,867 |
) |
N/M |
|
|
Non-GAAP
Consolidated operating income |
|
$55,492 |
|
6.7% |
|
|
$51,784 |
|
6.9% |
|
|
N/M – Not
Meaningful |
|
|
|
|
|
|
|
|
|
Contact: Kathy Liebmann (734) 241-2438
kathy.liebmann@la-z-boy.com
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