La-Z-Boy Incorporated (NYSE: LZB) today reported its operating
results for the fiscal 2019 third quarter ended January 26, 2019.
Third quarter highlights:
• Consolidated sales increased 13.0% to $467.6
million -- Solid core business growth plus sales from
recent acquisitions• Delivered same-store sales for the
company-owned retail segment increased 6.7%
• Consolidated operating income: -- GAAP: $40.8
million versus $33.1 million -- Non-GAAP: $42.2 million
versus $32.6 million* • Consolidated operating
margin: -- GAAP: 8.7% versus 8.0% --
Non-GAAP: 9.0% versus 7.9%*• Net income attributable to
La-Z-Boy Incorporated per share (“EPS”): -- GAAP: $0.61 per
diluted share versus $0.25 per diluted share -- Non-GAAP:
$0.63 per diluted share versus $0.25 per diluted share*
ο EPS amounts for the fiscal 2019 third quarter
include a one-time $0.07 per share benefit for a redesign of
employee benefits programs made in the quarter
ο EPS amounts for the fiscal 2018 third quarter include a
$0.20 per share net charge related to tax reform, and a $0.06 per
share charge for a legal settlement• Cash generated from
operating activities increased 13.5% to $45.4 million
*Non-GAAP amounts for the third quarter of fiscal
2019 exclude pre-tax purchase accounting charges totaling $1.5
million, or $0.02 per diluted share, with $1.3 million included in
operating income and $0.2 million included in interest expense.
Non-GAAP amounts for the third quarter of fiscal 2018 include a
$0.5 million pre-tax benefit from purchase accounting, all included
in operating income, which did not impact EPS for the period.
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.
Consolidated sales in the third quarter of fiscal
2019 increased 13.0% over the prior year to $467.6 million,
reflecting solid growth in all operating segments and sales from
the acquisitions of Joybird and 10 La-Z-Boy Furniture Galleries®
stores. Consolidated GAAP operating margin was 8.7% versus 8.0% in
the prior-year quarter. Excluding purchase accounting charges,
Non-GAAP operating margin was 9.0% in the third quarter of the
current year versus 7.9% in the third quarter of last year. The
fiscal 2019 third quarter included a gain of 90 basis points from
changes to employee benefits, including a one-time gain from
changes to employee vacation policies, and incentive compensation
costs that were 120 basis points higher than the prior year.
Last year’s third quarter included a 100 basis point charge for a
legal settlement.
Sales in the company’s Upholstery segment increased
4.2% to $334.4 million and GAAP operating margin was 10.3% compared
with 9.9% in last year’s third quarter. Non-GAAP Upholstery
operating margin was 10.3% in the current-year quarter versus 9.7%
in last year’s third quarter. Sales performance was driven by
improvements in price and mix, including innovative products with a
compelling value proposition. In the Casegoods segment, sales
increased 3.1% to $28.1 million in the third quarter of fiscal 2019
and GAAP operating margin increased to 11.9% from 10.3% in the
prior-year period, reflecting continued success in the marketplace
with stylish collections that appeal to today’s consumer, and
increased floor space with retail partners.
Sales in the Retail segment increased 26.7% to
$159.4 million in the third quarter of fiscal 2019 reflecting
strong results for the base stores as well as $24.2 million of
sales from recent acquisitions. On the core base of 142
stores included in last year’s third quarter, delivered same-store
sales increased 6.7%. GAAP operating margin for the Retail segment
improved to 8.9% from 5.6% in last year’s third quarter, and
Non-GAAP operating margin was 9.1% in the current-year quarter
compared with 5.7% in last year’s third quarter. Driven by robust
delivered same-store sales and a higher average ticket, as well as
the recently acquired Arizona stores, operating income
doubled. On a GAAP basis, operating profit for the fiscal
2019 third quarter was $14.2 million versus $7.1 million in last
year’s comparable quarter, and Non-GAAP operating profit was $14.6
million versus $7.2 million in the prior-year period.
GAAP EPS for the fiscal 2019 third quarter was
$0.61 per diluted share versus $0.25 per diluted share in the
prior-year period. Non-GAAP EPS was $0.63 per diluted share in the
current-year quarter, up from $0.25 per diluted share in the
comparable fiscal 2018 third quarter. EPS for the fiscal 2019 third
quarter included higher incentive compensation costs of $0.10 per
share versus last year partially offset by a one-time $0.07 per
share benefit for a redesign of employee benefits. The prior-year
EPS included a $0.20 per share net charge related to tax reform and
a $0.06 per share charge related to a legal settlement.
Kurt L. Darrow, Chairman, President and Chief
Executive Officer of La-Z-Boy, said, “La-Z-Boy delivered solid
results for the quarter, with sales and operating margin increases
posted across the business and strong operating cash generation.
We are particularly pleased with the performance of the
company-owned Retail segment which doubled its operating income in
the quarter versus last year. Within the stores, our retail
team is professionally executing our strategies while consumers are
responding positively to our product and service offering. These
efforts led to the base stores performing at a high level in what
is typically our largest quarter for Retail, while the recently
acquired Arizona stores also delivered very strong results.
Additionally, we remain excited by the potential of Joybird which
continues to exhibit fast-paced growth. Overall, our
business, in its entirety, exhibited momentum and our team
continues to be focused on driving profitable sales growth across
the enterprise.”
Acquisitions
During the fiscal 2019 second 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 third quarter the company recorded $1.5
million of purchase accounting charges, with $1.3 million of these
charges related to the Joybird acquisition, including $1.1 million
in operating income which is reported as part of Corporate &
Other and $0.2 million in interest expense, and approximately $0.4
million related to the Arizona and North Dartmouth acquisitions,
which are reported as part of the company’s Retail segment.
Offsetting the purchase accounting charges for the fiscal 2019
third quarter was a $0.2 million benefit related to prior
acquisitions. In last year’s third quarter, the company had a
purchase accounting benefit of $0.5 million which related to
previous acquisitions. 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 in Arizona and North Dartmouth are key strategic
acquisitions for the company and are intended to drive long-term
growth and profitability. On a Non-GAAP basis, these 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 $0.11 to $0.12 per diluted share for the full
fiscal 2019 year.
Balance Sheet and Cash Flow
During the quarter, the company generated $45.4
million in cash from operating activities. La-Z-Boy ended the
quarter with $101.6 million in cash and cash equivalents, $32.2
million in investments to enhance returns on cash, and $2.0 million
in restricted cash. The company invested $8.8 million in the
business through capital expenditures in the third quarter, and
spent $6.1 million on dividends to shareholders. Additionally, the
company used $5.1 million purchasing 0.2 million shares of stock in
the open market under its existing authorized share purchase
program, leaving 6.1 million shares of purchase availability in the
program. La-Z-Boy repaid $15 million of borrowings under its
revolving line of credit during the third quarter, leaving $20
million outstanding as of the end of January 2019. The credit line
borrowings were used to fund a portion of the acquisition payments
made during the second quarter.
Outlook
Darrow concluded, “I am optimistic about the future
for La-Z-Boy as we continue to align our product offerings,
go-to-market strategies, and investments with the changing
marketplace. Our portfolio of brands is well positioned to
capture growing consumer segments and is supported by a vast
distribution network and a world-class global supply chain.
Additionally, our strong balance sheet will enable us to continue
to make strategic investments to grow the company and provide
returns to shareholders.” Conference
Call
La-Z-Boy will hold a conference call with the
investment community on Wednesday, February 20, 2019, at 8:30 a.m.
eastern time. The toll-free dial-in number is 866.682.6100;
international callers may use 862.298.0702.
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 Replay Passcode:
42564. 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 155 of the 352 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 352 stand-alone La-Z-Boy Furniture Galleries® stores and
541 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, fair value
adjustments of future cash payments recorded as interest expense,
and adjustments to the fair value of contingent consideration.
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) |
|
1/26/19 |
|
1/27/18 |
|
Sales |
|
$467,582 |
|
$413,638 |
|
Cost of sales |
|
277,712 |
|
251,140 |
|
Gross
profit |
|
189,870 |
|
162,498 |
|
Selling, general and
administrative expense |
|
149,027 |
|
129,403 |
|
Operating
income |
|
40,843 |
|
33,095 |
|
Interest expense |
|
(538 |
) |
(113 |
) |
Interest income |
|
540 |
|
444 |
|
Other income (expense),
net |
|
(941 |
) |
(1,094 |
) |
Income before
income taxes |
|
39,904 |
|
32,332 |
|
Income tax expense |
|
10,730 |
|
20,047 |
|
Net income |
|
29,174 |
|
12,285 |
|
Net income attributable
to noncontrolling interests |
|
(443 |
) |
(176 |
) |
Net income
attributable to La-Z-Boy Incorporated |
|
$28,731 |
|
$12,109 |
|
|
|
|
|
|
|
Basic weighted average
common shares |
|
46,820 |
|
47,234 |
|
Basic net income
attributable to La-Z-Boy Incorporated per share |
|
$0.61 |
|
$0.26 |
|
|
|
|
|
|
|
Diluted weighted
average common shares |
|
47,091 |
|
47,757 |
|
Diluted net income
attributable to La-Z-Boy Incorporated per share |
|
$0.61 |
|
$0.25 |
|
|
|
|
|
|
|
Dividends declared per
share |
|
$0.13 |
|
$0.12 |
|
LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF INCOME
|
|
Nine Months Ended |
|
(Unaudited, amounts in thousands, except per share
data) |
|
1/26/19 |
|
1/27/18 |
|
Sales |
|
$1,291,610 |
|
$1,163,922 |
|
Cost of sales |
|
778,813 |
|
707,369 |
|
Gross
profit |
|
512,797 |
|
456,553 |
|
Selling, general and
administrative expense |
|
420,294 |
|
372,891 |
|
Operating
income |
|
92,503 |
|
83,662 |
|
Interest expense |
|
(1,143 |
) |
(430 |
) |
Interest income |
|
1,534 |
|
1,163 |
|
Other income (expense),
net |
|
(2,046 |
) |
(271 |
) |
Income before
income taxes |
|
90,848 |
|
84,124 |
|
Income tax expense |
|
22,374 |
|
36,889 |
|
Net income |
|
68,474 |
|
47,235 |
|
Net income attributable
to noncontrolling interests |
|
(1,428 |
) |
(579 |
) |
Net income
attributable to La-Z-Boy Incorporated |
|
$67,046 |
|
$46,656 |
|
|
|
|
|
|
|
Basic weighted average
common shares |
|
46,808 |
|
47,852 |
|
Basic net income
attributable to La-Z-Boy Incorporated per share |
|
$1.43 |
|
$0.97 |
|
|
|
|
|
|
|
Diluted weighted
average common shares |
|
47,212 |
|
48,325 |
|
Diluted net income
attributable to La-Z-Boy Incorporated per share |
|
$1.42 |
|
$0.96 |
|
|
|
|
|
|
|
Dividends declared per
share |
|
$0.37 |
|
$0.34 |
|
LA-Z-BOY
INCORPORATEDCONSOLIDATED BALANCE
SHEET
(Unaudited, amounts in thousands, except par
value) |
|
1/26/19 |
|
4/28/18 |
|
Current assets |
|
|
|
|
|
Cash and
equivalents |
|
$101,579 |
|
$134,515 |
|
Restricted cash |
|
2,003 |
|
2,356 |
|
Receivables, net of allowance of $2,762 at 1/26/19 and $1,956 at
4/28/18 |
|
149,526 |
|
154,055 |
|
Inventories, net |
|
219,211 |
|
184,841 |
|
Other
current assets |
|
75,086 |
|
42,451 |
|
Total
current assets |
|
547,405 |
|
518,218 |
|
Property, plant and
equipment, net |
|
195,680 |
|
180,882 |
|
Goodwill |
|
184,717 |
|
75,254 |
|
Other intangible
assets, net |
|
30,274 |
|
18,190 |
|
Deferred income taxes –
long-term |
|
21,231 |
|
21,265 |
|
Other long-term assets,
net |
|
82,149 |
|
79,158 |
|
Total
assets |
|
$1,061,456 |
|
$892,967 |
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
Short-term borrowings |
|
$20,000 |
|
$— |
|
Current
portion of long-term debt |
|
205 |
|
223 |
|
Accounts
payable |
|
72,421 |
|
62,403 |
|
Accrued
expenses and other current liabilities |
|
176,277 |
|
118,721 |
|
Total
current liabilities |
|
268,903 |
|
181,347 |
|
Long-term debt |
|
47 |
|
199 |
|
Other long-term
liabilities |
|
120,720 |
|
86,205 |
|
Contingencies and
commitments |
|
|
|
|
|
Shareholders’
equity |
|
|
|
|
|
Preferred
shares – 5,000 authorized; none issued |
|
— |
|
— |
|
Common
shares, $1 par value – 150,000 authorized; 46,730 outstanding at
1/26/19 and 46,788 outstanding at 4/28/18 |
|
46,730 |
|
46,788 |
|
Capital
in excess of par value |
|
306,896 |
|
298,948 |
|
Retained
earnings |
|
330,491 |
|
291,644 |
|
Accumulated other comprehensive loss |
|
(26,854 |
) |
(25,199 |
) |
Total La-Z-Boy Incorporated shareholders’ equity |
|
657,263 |
|
612,181 |
|
Noncontrolling interests |
|
14,523 |
|
13,035 |
|
Total
equity |
|
671,786 |
|
625,216 |
|
Total liabilities and equity |
|
$1,061,456 |
|
$892,967 |
|
LA-Z-BOY
INCORPORATEDCONSOLIDATED STATEMENT OF CASH
FLOWS
|
|
Nine Months Ended |
|
(Unaudited,
amounts in thousands) |
|
1/26/19 |
|
1/27/18 |
|
Cash flows from operating activities |
|
|
|
|
|
Net income |
|
$68,474 |
|
$47,235 |
|
Adjustments to
reconcile net income to cash provided by |
|
|
|
|
|
(used for) operating activities |
|
|
|
|
|
(Gain)/Loss on disposal of assets |
|
41 |
|
(1,849 |
) |
Gain on
conversion of investment |
|
— |
|
(2,204 |
) |
Change in
deferred taxes |
|
2,538 |
|
10,543 |
|
Provision
for doubtful accounts |
|
477 |
|
198 |
|
Depreciation and amortization |
|
23,182 |
|
23,671 |
|
Equity-based compensation expense |
|
8,174 |
|
7,929 |
|
Pension
plan contributions |
|
(7,000 |
) |
(2,000 |
) |
Change in
receivables |
|
1,152 |
|
5,057 |
|
Change in
inventories |
|
(18,950 |
) |
(9,142 |
) |
Change in
other assets |
|
(10,103 |
) |
(3,304 |
) |
Change in
payables |
|
4,954 |
|
12,529 |
|
Change in
other liabilities |
|
18,509 |
|
2,537 |
|
Net cash provided by operating activities |
|
91,448 |
|
91,200 |
|
|
|
|
|
|
|
Cash flows from
investing activities |
|
|
|
|
|
Proceeds from
disposals of assets |
|
447 |
|
620 |
|
Proceeds from
property insurance |
|
154 |
|
1,807 |
|
Capital
expenditures |
|
(35,766 |
) |
(24,138 |
) |
Purchases of
investments |
|
(14,956 |
) |
(24,124 |
) |
Proceeds from
sales of investments |
|
14,304 |
|
17,109 |
|
Acquisitions,
net of cash acquired |
|
(78,582 |
) |
(16,495 |
) |
Net cash
used for investing activities |
|
(114,399 |
) |
(45,221 |
) |
|
|
|
|
|
|
Cash flows from
financing activities |
|
|
|
|
|
Net proceeds
from credit facility |
|
20,000 |
|
— |
|
Payments on
debt |
|
(169 |
) |
(203 |
) |
Payments for
debt issuance costs |
|
— |
|
(220 |
) |
Stock issued for
stock and employee benefit plans, net of |
|
4,012 |
|
1,418 |
|
shares
withheld for taxes |
|
|
|
|
|
Purchases of
common stock |
|
(16,726 |
) |
(46,074 |
) |
Dividends
paid |
|
(17,381 |
) |
(16,343 |
) |
Net cash
used for financing activities |
|
(10,264 |
) |
(61,422 |
) |
|
|
|
|
|
|
Effect of exchange rate
changes on cash and equivalents |
|
(74 |
) |
2,204 |
|
Change in cash, cash
equivalents and restricted cash |
|
(33,289 |
) |
(13,239 |
) |
Cash, cash equivalents
and restricted cash at beginning of period |
|
136,871 |
|
150,859 |
|
period |
|
|
|
|
|
Cash, cash equivalents
and restricted cash at end of period |
|
$103,582 |
|
$137,620 |
|
|
|
|
|
|
|
Supplemental disclosure
of non-cash investing activities |
|
|
|
|
|
Capital
expenditures included in payables |
|
$2,827 |
|
$3,926 |
|
LA-Z-BOY
INCORPORATEDSEGMENT INFORMATION
|
|
Quarter Ended |
|
Nine Months Ended |
|
(Unaudited, amounts in
thousands) |
|
1/26/19 |
|
1/27/18 |
|
1/26/19 |
|
1/27/18 |
|
Sales |
|
|
|
|
|
|
|
|
|
Upholstery
segment: |
|
|
|
|
|
|
|
|
|
Sales to
external customers |
|
$265,487 |
|
$262,874 |
|
$759,569 |
|
$739,429 |
|
Intersegment
sales |
|
68,961 |
|
58,084 |
|
185,370 |
|
160,697 |
|
Upholstery segment
sales |
|
334,448 |
|
320,958 |
|
944,939 |
|
900,126 |
|
|
|
|
|
|
|
|
|
|
|
Casegoods segment: |
|
|
|
|
|
|
|
|
|
Sales to
external customers |
|
23,129 |
|
23,887 |
|
73,774 |
|
68,821 |
|
Intersegment
sales |
|
4,936 |
|
3,328 |
|
14,054 |
|
11,969 |
|
Casegoods segment
sales |
|
28,065 |
|
27,215 |
|
87,828 |
|
80,790 |
|
|
|
|
|
|
|
|
|
|
|
Retail segment
sales |
|
159,417 |
|
125,815 |
|
418,331 |
|
353,068 |
|
|
|
|
|
|
|
|
|
|
|
Corporate and
Other: |
|
|
|
|
|
|
|
|
|
Sales to
external customers |
|
19,549 |
|
1,062 |
|
39,936 |
|
2,604 |
|
Intersegment
sales |
|
3,300 |
|
2,818 |
|
9,156 |
|
6,839 |
|
Corporate and Other
sales |
|
22,849 |
|
3,880 |
|
49,092 |
|
9,443 |
|
|
|
|
|
|
|
|
|
|
|
Eliminations |
|
(77,197 |
) |
(64,230 |
) |
(208,580 |
) |
(179,505 |
) |
Consolidated
sales |
|
$467,582 |
|
$413,638 |
|
$1,291,610 |
|
$1,163,922 |
|
|
|
|
|
|
|
|
|
|
|
Operating
Income (Loss) |
|
|
|
|
|
|
|
|
|
Upholstery segment |
|
$34,566 |
|
$31,699 |
|
$90,602 |
|
$88,422 |
|
Casegoods segment |
|
3,332 |
|
2,792 |
|
10,173 |
|
8,833 |
|
Retail segment |
|
14,158 |
|
7,076 |
|
25,179 |
|
12,746 |
|
Corporate and
Other |
|
(11,213 |
) |
(8,472 |
) |
(33,451 |
) |
(26,339 |
) |
Consolidated
operating income |
|
$40,843 |
|
$33,095 |
|
$92,503 |
|
$83,662 |
|
LA-Z-BOY
INCORPORATEDRECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL MEASURES
|
|
Quarter Ended |
|
Nine Months Ended |
|
(Unaudited, amounts in thousands,
except per share data) |
|
1/26/19 |
|
1/27/18 |
|
1/26/19 |
|
1/27/18 |
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit |
|
$189,870 |
|
$162,498 |
|
$512,797 |
|
$456,553 |
|
Add back:
Purchase accounting charges – |
|
420 |
|
114 |
|
2,911 |
|
375 |
|
incremental expense upon the sale of inventory |
|
|
|
|
|
|
|
|
|
acquired
at fair value |
|
|
|
|
|
|
|
|
|
Non-GAAP gross
profit |
|
$190,290 |
|
$162,612 |
|
$515,708 |
|
$456,928 |
|
|
|
|
|
|
|
|
|
|
|
GAAP SG&A |
|
$149,027 |
|
$129,403 |
|
$420,294 |
|
$372,891 |
|
Less:
Purchase accounting charges –amortization |
|
(896 |
) |
613 |
|
(2,237 |
) |
(343 |
) |
of intangible assets and retention agreements |
|
|
|
|
|
|
|
|
|
Non-GAAP SG&A |
|
$148,131 |
|
$130,016 |
|
$418,057 |
|
$372,548 |
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
income |
|
$40,843 |
|
$33,095 |
|
$92,503 |
|
$83,662 |
|
Add back:
Purchase accounting charges |
|
1,316 |
|
(499 |
) |
5,148 |
|
718 |
|
Non-GAAP operating
income |
|
$42,159 |
|
$32,596 |
|
$97,651 |
|
$84,380 |
|
|
|
|
|
|
|
|
|
|
|
GAAP income before
income taxes |
|
$39,904 |
|
$32,332 |
|
$90,848 |
|
$84,124 |
|
Add back:
Purchase accounting charges recorded as |
|
1,507 |
|
(499 |
) |
5,527 |
|
718 |
|
part of
gross profit, SG&A, and interest expense |
|
|
|
|
|
|
|
|
|
Non-GAAP income before
income taxes |
|
$41,411 |
|
$31,833 |
|
$96,375 |
|
$84,842 |
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to La-Z-Boy Incorporated |
|
$28,731 |
|
$12,109 |
|
$67,046 |
|
$46,656 |
|
Add back:
Purchase accounting charges recorded as |
|
1,507 |
|
(499 |
) |
5,527 |
|
718 |
|
part of
gross profit, SG&A, and interest expense |
|
|
|
|
|
|
|
|
|
interest
expense |
|
|
|
|
|
|
|
|
|
Less: Tax
effect of purchase accounting charges |
|
(439 |
) |
81 |
|
(1,360 |
) |
(315 |
) |
Non-GAAP net income
attributable to La-Z-Boy Incorporated |
|
$29,799 |
|
$11,691 |
|
$71,213 |
|
$47,059 |
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to La-Z-Boy Incorporated per diluted share |
|
$0.61 |
|
$0.25 |
|
$1.42 |
|
$0.96 |
|
Add back:
Purchase accounting charges, net of tax, |
|
0.02 |
|
— |
|
0.09 |
|
0.01 |
|
per
share |
|
|
|
|
|
|
|
|
|
Non-GAAP net income
attributable to La-Z-Boy Incorporated per diluted share |
|
$0.63 |
|
$0.25 |
|
$1.51 |
|
$0.97 |
|
LA-Z-BOY
INCORPORATEDRECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL MEASURESSEGMENT INFORMATION
|
|
Quarter Ended |
|
(Unaudited, amounts in
thousands) |
|
1/26/19 |
|
% of
sales |
|
1/27/18 |
|
% of
sales |
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income
(loss) |
|
|
|
|
|
|
|
|
|
Upholstery
segment |
|
$34,566 |
|
10.3% |
|
$31,699 |
|
9.9% |
|
Casegoods
segment |
|
3,332 |
|
11.9% |
|
2,792 |
|
10.3% |
|
Retail
segment |
|
14,158 |
|
8.9% |
|
7,076 |
|
5.6% |
|
Corporate and
Other |
|
(11,213 |
) |
N/M |
|
(8,472 |
) |
N/M |
|
GAAP Consolidated operating income |
|
$40,843 |
|
8.7% |
|
$33,095 |
|
8.0% |
|
|
|
|
|
|
|
|
|
|
|
Purchase accounting
charges affecting operating income |
|
|
|
|
|
|
|
|
|
Upholstery
segment |
|
$(241 |
) |
|
|
$(614 |
) |
|
|
Casegoods
segment |
|
— |
|
|
|
— |
|
|
|
Retail
segment |
|
420 |
|
|
|
115 |
|
|
|
Corporate and
Other |
|
1,137 |
|
|
|
— |
|
|
|
Consolidated purchase accounting charges affecting operating
income |
|
$1,316 |
|
|
|
$(499 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating
income (loss) |
|
|
|
|
|
|
|
|
|
Upholstery
segment |
|
$34,325 |
|
10.3% |
|
$31,085 |
|
9.7% |
|
Casegoods
segment |
|
3,332 |
|
11.9% |
|
2,792 |
|
10.3% |
|
Retail
segment |
|
14,578 |
|
9.1% |
|
7,191 |
|
5.7% |
|
Corporate and
Other |
|
(10,076 |
) |
N/M |
|
(8,472 |
) |
N/M |
|
Non-GAAP Consolidated operating income |
|
$42,159 |
|
9.0% |
|
$32,596 |
|
7.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
(Unaudited, amounts in thousands) |
|
1/26/19 |
|
% of sales |
|
1/27/18 |
|
% of sales |
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income
(loss) |
|
|
|
|
|
|
|
|
|
Upholstery
segment |
|
$90,602 |
|
9.6% |
|
$88,422 |
|
9.8% |
|
Casegoods
segment |
|
10,173 |
|
11.6% |
|
8,833 |
|
10.9% |
|
Retail
segment |
|
25,179 |
|
6.0% |
|
12,746 |
|
3.6% |
|
Corporate and
Other |
|
(33,451 |
) |
N/M |
|
(26,339 |
) |
N/M |
|
GAAP Consolidated operating income |
|
$92,503 |
|
7.2% |
|
$83,662 |
|
7.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase accounting
charges affecting operating income |
|
|
|
|
|
|
|
|
|
Upholstery
segment |
|
$(37 |
) |
|
|
$116 |
|
|
|
Casegoods
segment |
|
— |
|
|
|
— |
|
|
|
Retail
segment |
|
1,508 |
|
|
|
602 |
|
|
|
Corporate and
Other |
|
3,677 |
|
|
|
— |
|
|
|
Consolidated purchase accounting charges affecting operating
income |
|
$5,148 |
|
|
|
$718 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating
income (loss) |
|
|
|
|
|
|
|
|
|
Upholstery
segment |
|
$90,565 |
|
9.6% |
|
$88,538 |
|
9.8% |
|
Casegoods
segment |
|
10,173 |
|
11.6% |
|
8,833 |
|
10.9% |
|
Retail
segment |
|
26,687 |
|
6.4% |
|
13,348 |
|
3.8% |
|
Corporate and
Other |
|
(29,774 |
) |
N/M |
|
(26,339 |
) |
N/M |
|
Non-GAAP Consolidated operating income |
|
$97,651 |
|
7.6% |
|
$84,380 |
|
7.2% |
|
|
|
|
|
|
|
|
|
|
|
N/M – Not Meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact: Kathy Liebmann(734)
241-2438kathy.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