La-Z-Boy Incorporated (NYSE: LZB) today reported its operating
results for the fiscal 2019 fourth quarter and full year ended
April 27, 2019.
Fiscal 2019 full year versus Fiscal 2018
full year:
• Consolidated sales for the full fiscal 2019 year increased
10.2% to $1.75 billion
- Delivered same-store sales for the company-owned Retail segment
increased 5.7%
- Written same-store sales for the 353-store La-Z-Boy Furniture
Galleries® network, including Canada, increased 1.8% --
Written same-store sales for the U.S. network of 318 stores
increased 3.2%
• Consolidated operating income:
- GAAP: $129.7 million versus $129.4 million
- Non-GAAP*: $136.6 million versus $130.3 million
• Consolidated operating margin:
- GAAP: 7.4% versus 8.2%
- Non-GAAP*: 7.8% versus 8.2%
• Net income attributable to La-Z-Boy Incorporated per
diluted share (“EPS”):
- GAAP: $1.44 versus $1.67
- Non-GAAP*: $2.14 versus $1.68, with fiscal 2019 excluding a
non-cash charge of $0.58 per share for the termination of the
company’s defined benefit pension plan and a charge of $0.12 per
share for purchase accounting; Fiscal 2018 excluded $0.01 per
share for purchase accounting
• Cash generated from operating activities increased 30% to
$151 million
Fiscal 2019 fourth quarter versus Fiscal
2018 fourth quarter:
• Consolidated sales for the fourth quarter increased 8.0%
to $453.8 million
- Delivered same-store sales for the company-owned Retail segment
increased 8.0%
- Written same-store sales for the 353-store La-Z-Boy Furniture
Galleries® network, including Canada, increased 0.8% --
Written same-store sales for the U.S. network of 318 stores
increased 2.5%
• Consolidated operating income:
- GAAP: $37.2 million versus $45.7 million
- Non-GAAP*: $38.9 million versus $45.9 million
• Consolidated operating margin:
- GAAP: 8.2% versus 10.9%
- Non-GAAP*: 8.6% versus 10.9%
• Net income attributable to La-Z-Boy Incorporated per
diluted share (“EPS”):
- GAAP: $0.03 versus $0.72
- Non-GAAP*: $0.64 versus $0.72, with fiscal 2019 Q4
excluding a non-cash charge of $0.58 per share for the termination
of the company’s defined benefit pension plan and a charge of $0.03
per share for purchase accounting
• Cash generated from operating activities increased 141%
to $59 million
Kurt L. Darrow, Chairman, President and Chief
Executive Officer of La-Z-Boy, said, “We delivered solid
performance for fiscal 2019. Sales increased 10% reflecting
both organic growth and our acquisitions, and operating margins
across our established businesses were solid. We generated
robust cash from operating activities, returned a combined total of
$46 million to shareholders through share purchases and an
increased dividend, and funded $48 million in capital
expenditures to position our operations for long-term growth. We
also solidified our position in the e-commerce space with the
acquisition of Joybird and enhanced an already successful retail
platform with the purchase of the Arizona-based La-Z-Boy Furniture
Galleries® stores.”
Commenting on the fourth quarter, Darrow stated:
“We were pleased with the excellent sales and operating results for
our company-owned Retail segment. However, sales declined in
our wholesale Upholstery and Casegoods segments, consistent with a
slow start to the calendar year across the North American retail
home furnishings landscape. Given our fixed costs, the decline in
volume translated to a direct impact to operating margins for our
wholesale businesses in the fourth quarter. Additionally, our
Canadian business has been particularly challenged due to a variety
of factors, including weakening exchange rates and the retaliatory
tariff on finished goods coming from the U.S., which was lifted in
May.”
Consolidated sales in the fourth quarter of
fiscal 2019 increased 8.0% to $453.8 million, driven by strong
Retail performance, which included the acquired Arizona-based
La-Z-Boy Furniture Galleries® stores, and the acquisition of
Joybird. Consolidated GAAP operating margin was 8.2% versus 10.9%
in the prior-year quarter. Excluding purchase accounting
charges, Non-GAAP operating margin was 8.6% in the current-year
quarter versus 10.9% in last year’s fourth quarter. The fiscal 2019
fourth quarter included increased incentive compensation costs that
were 170 basis points higher than the prior year and a 40
basis point negative impact relating to changes in employee
benefits policies. As expected, operating margin in the fourth
quarter of fiscal 2019 also reflects a 120 basis point drag due to
the acquisition of Joybird and growth of our Retail segment, which
caused 310 basis points higher SG&A, partly offset by a higher
gross margin.
For the fourth quarter, sales in the company’s
Upholstery segment decreased 1.2% to $323.3 million and GAAP
operating margin was 11.5% compared with 12.8% in last year’s
fourth quarter. Non-GAAP operating margin was 11.6% in the
current-year quarter versus 12.8% in last year’s fourth quarter,
reflecting a decline in units and a change in product mix. In the
Casegoods segment, sales decreased 12.9% to $26.6 million in the
fiscal 2019 fourth quarter and GAAP operating margin was 9.1%
compared with 9.2% in the prior-year period.
Sales in the Retail segment increased 24.9% to
$151.9 million in the fourth quarter of fiscal 2019 on growth for
the base stores and $22.2 million of sales from recent
acquisitions. On the core base of 139 stores included in last
year’s fourth quarter, better execution at the store level drove a
delivered same-store sales increase of 8.0%. GAAP operating
margin for the Retail segment improved to 8.4% from 6.6% in last
year’s fourth quarter, and Non-GAAP operating margin was 8.5% in
the current-year quarter compared with 6.6% in last year’s fourth
quarter. Sales growth, a higher average ticket, and the
recently acquired Arizona stores, which are the best performing
stores across the La-Z-Boy Furniture Galleries® network, drove
improved operating performance.
GAAP EPS was $0.03 for the fiscal 2019 fourth
quarter versus $0.72 in the prior-year quarter. Non-GAAP EPS was
$0.64 versus $0.72 in last year’s fourth quarter, with the fiscal
2019 fourth quarter excluding a charge of $0.03 per share for
purchase accounting and a non-cash charge of $0.58 per share for
the termination of the company’s defined benefit pension plan. The
fiscal 2019 results also include charges of $0.13 per share for
higher incentive compensation, and $0.03 per share for changes in
employee benefits. Results for the fourth quarter of fiscal
2018 included a $0.06 per share benefit related to tax reform.
Balance Sheet and Cash Flow
During the fourth quarter, the company generated
$59.3 million in cash from operating activities. La-Z-Boy ended the
fiscal 2019 year with $130 million in cash and cash equivalents,
$31.5 million in investments to enhance returns on cash, and $2
million in restricted cash. In fiscal 2019, the company invested
$48.4 million in the business through capital expenditures, paid
$23.5 million in dividends, and spent $23.0 million purchasing 0.8
million shares of stock, including 0.2 million in the fourth
quarter, in the open market under its existing authorized share
purchase program, leaving 5.9 million shares of purchase
availability in the program. La-Z-Boy repaid the remaining $20
million of borrowings outstanding under its revolving line of
credit during the fourth quarter. The credit line borrowings were
used to fund a portion of the acquisition payments made during the
second quarter.
Outlook
Darrow concluded, “As noted in our pre-release,
the first calendar quarter was off to a slow start across the home
furnishings industry and, with the hangover of tariffs and
geopolitical uncertainty, it is unclear if these business
conditions will continue further into our fiscal 2020 year.
However, we believe the performance of the La-Z-Boy Furniture
Galleries® store network and our Retail segment demonstrate the
strength of the La-Z-Boy brand in this environment. Moving
forward, our healthy balance sheet will enable us to continue to
invest to drive growth across the business and capitalize on our
strong brands, multi-channel distribution network, and world-class
supply chain capabilities. And, with strategic growth initiatives
in place, we believe there are continued growth opportunities for
La-Z-Boy and are confident we are well positioned within the
industry to deliver strong long-term performance.”
*For the full fiscal 2019 year, Non-GAAP amounts
exclude pre-tax purchase accounting charges totaling $7.5 million,
or $0.12 per diluted share, with $6.9 million included in operating
income and $0.6 million included in interest expense. Also
excluded is a non-cash pre-tax charge of $32.7 million, or $0.58
per diluted share, related to the termination of the company’s
defined benefit pension plan. Non-GAAP amounts for the full fiscal
2018 year exclude pre-tax purchase accounting charges of $0.9
million, or $0.01 per diluted share, all included in operating
income.
*Non-GAAP amounts for the fourth quarter of
fiscal 2019 exclude pre-tax purchase accounting charges totaling
$2.0 million, or $0.03 per diluted share, with $1.8 million
included in operating income and $0.2 million included in interest
expense. Also excluded is a non-cash pre-tax charge of $32.7
million, or $0.58 per diluted share, related to the termination of
the company’s defined benefit pension plan. Non-GAAP amounts for
the fourth quarter of fiscal 2018 exclude pre-tax purchase
accounting charges of $0.2 million, 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.
Conference Call
La-Z-Boy will hold a conference call with the
investment community on Wednesday, June 19, 2019, at 8:30 a.m.
eastern time. The toll-free dial-in number is 844.602.0380;
international callers may use 862.298.0970.
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: 48727. 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 bilateral and multilateral
trade agreements impacting our business; (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 2019 Annual Report on Form 10-K and other
factors identified from time to time in our reports filed with the
Securities and Exchange Commission (the “SEC”). 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 156 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 550 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.
Additionally, these Non-GAAP measures for the fiscal 2019 periods
exclude the non-cash charge for the termination of the company’s
defined benefit pension plan. 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
and the non-cash charge for the termination of the company’s
defined benefit pension plan 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. Management also
excludes the non-cash charge for the termination of the company’s
defined benefit pension plan when assessing the company’s operating
and financial performance due to the one-time nature of the
transaction. 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,
except for the non-cash pension termination charge, which had a
specific tax impact due to the one-time nature of the
transaction.
LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF INCOME
|
|
Unaudited For the Fiscal Quarter Ended |
|
Unaudited For the Fiscal Year Ended |
|
(Amounts in thousands, except per share data) |
|
4/27/2019 |
|
4/28/2018 |
|
4/27/2019 |
|
4/28/2018 |
|
Sales |
|
$453,791 |
|
$420,025 |
|
$1,745,401 |
|
$1,583,947 |
|
Cost of sales |
|
|
264,018 |
|
|
253,831 |
|
|
1,042,831 |
|
|
961,200 |
|
Gross profit |
|
|
189,773 |
|
|
166,194 |
|
|
702,570 |
|
|
622,747 |
|
Selling, general and
administrative expense |
|
|
152,602 |
|
|
120,487 |
|
|
572,896 |
|
|
493,378 |
|
Operating income |
|
|
37,171 |
|
|
45,707 |
|
|
129,674 |
|
|
129,369 |
|
Interest expense |
|
|
(399 |
) |
|
(108 |
) |
|
(1,542 |
) |
|
(538 |
) |
Interest income |
|
|
569 |
|
|
546 |
|
|
2,103 |
|
|
1,709 |
|
Pension termination charge |
|
|
(32,671 |
) |
|
— |
|
|
(32,671 |
) |
|
— |
|
Other expense, net |
|
|
(191 |
) |
|
(1,379 |
) |
|
(2,237 |
) |
|
(1,650 |
) |
Income before income taxes |
|
|
4,479 |
|
|
44,766 |
|
|
95,327 |
|
|
128,890 |
|
Income tax expense |
|
|
2,812 |
|
|
10,406 |
|
|
25,186 |
|
|
47,295 |
|
Net income |
|
|
1,667 |
|
|
34,360 |
|
|
70,141 |
|
|
81,595 |
|
Net income attributable to
noncontrolling interests |
|
|
(139 |
) |
|
(150 |
) |
|
(1,567 |
) |
|
(729 |
) |
Net income attributable to La-Z-Boy Incorporated |
|
$1,528 |
|
$34,210 |
|
$68,574 |
|
$80,866 |
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average common
shares |
|
|
46,889 |
|
|
46,928 |
|
|
46,828 |
|
|
47,621 |
|
Basic net income attributable to
La-Z-Boy Incorporated per share |
|
$0.03 |
|
$0.73 |
|
$1.46 |
|
$1.69 |
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average common
shares |
|
|
47,369 |
|
|
47,472 |
|
|
47,333 |
|
|
48,135 |
|
Diluted net income attributable
to La-Z-Boy Incorporated per share |
|
$0.03 |
|
$0.72 |
|
$1.44 |
|
$1.67 |
|
|
|
|
|
|
|
|
|
|
|
LA-Z-BOY
INCORPORATEDCONSOLIDATED BALANCE
SHEET
|
|
Unaudited |
|
(Amounts in thousands, except par
value) |
|
4/27/2019 |
|
4/28/2018 |
|
Current assets |
|
|
|
|
|
Cash and equivalents |
|
$129,819 |
|
$134,515 |
|
Restricted cash |
|
|
1,968 |
|
|
2,356 |
|
Receivables, net of allowance of $2,180 at 4/27/19 and $1,956 at
4/28/18 |
|
|
143,288 |
|
|
154,055 |
|
Inventories, net |
|
|
196,899 |
|
|
184,841 |
|
Other current assets |
|
|
69,144 |
|
|
42,451 |
|
Total current assets |
|
|
541,118 |
|
|
518,218 |
|
Property, plant and equipment,
net |
|
|
200,523 |
|
|
180,882 |
|
Goodwill |
|
|
185,867 |
|
|
75,254 |
|
Other intangible assets, net |
|
|
29,907 |
|
|
18,190 |
|
Deferred income taxes –
long-term |
|
|
20,670 |
|
|
21,265 |
|
Other long-term assets, net |
|
|
81,705 |
|
|
79,158 |
|
Total assets |
|
$1,059,790 |
|
$892,967 |
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Current portion of long-term debt |
|
$180 |
|
$223 |
|
Accounts payable |
|
|
65,365 |
|
|
62,403 |
|
Accrued expenses and other current liabilities |
|
|
173,091 |
|
|
118,721 |
|
Total current liabilities |
|
|
238,636 |
|
|
181,347 |
|
Long-term debt |
|
|
19 |
|
|
199 |
|
Other long-term liabilities |
|
|
124,159 |
|
|
86,205 |
|
Contingencies and
commitments |
|
|
|
|
|
Shareholders' equity |
|
|
|
|
|
Preferred shares – 5,000 authorized; none issued |
|
|
— |
|
|
— |
|
Common shares, $1 par value – 150,000 authorized; 46,955
outstanding at 4/27/19 and 46,788 outstanding at 4/28/18 |
|
|
46,955 |
|
|
46,788 |
|
Capital in excess of par value |
|
|
313,168 |
|
|
298,948 |
|
Retained earnings |
|
|
325,847 |
|
|
291,644 |
|
Accumulated other comprehensive loss |
|
|
(3,462 |
) |
|
(25,199 |
) |
Total La-Z-Boy Incorporated shareholders’ equity |
|
|
682,508 |
|
|
612,181 |
|
Noncontrolling interests |
|
|
14,468 |
|
|
13,035 |
|
Total equity |
|
|
696,976 |
|
|
625,216 |
|
Total liabilities and equity |
|
$1,059,790 |
|
$892,967 |
|
|
|
|
|
|
|
LA-Z-BOY
INCORPORATEDCONSOLIDATED STATEMENT OF CASH
FLOWS
|
|
Unaudited For the Fiscal Year Ended |
|
(Amounts in
thousands) |
|
4/27/2019 |
|
4/28/2018 |
|
Cash flows from operating activities |
|
|
|
|
|
Net income |
|
$70,141 |
|
$81,595 |
|
Adjustments to reconcile net income to cash provided by operating
activities |
|
|
|
|
|
Gain on disposal of assets |
|
|
(325 |
) |
|
(2,108 |
) |
Gain on conversion of investment |
|
|
— |
|
|
(2,204 |
) |
Gain on sale of investments |
|
|
(656 |
) |
|
(770 |
) |
Change in deferred taxes |
|
|
(1,668 |
) |
|
17,261 |
|
Change in provision for doubtful accounts |
|
|
502 |
|
|
276 |
|
Depreciation and amortization |
|
|
31,147 |
|
|
31,767 |
|
Stock-based compensation expense |
|
|
10,981 |
|
|
9,474 |
|
Pension termination charge |
|
|
32,671 |
|
|
— |
|
Pension plan contributions |
|
|
(7,000 |
) |
|
(2,000 |
) |
Change in receivables |
|
|
7,195 |
|
|
(2,801 |
) |
Change in inventories |
|
|
3,135 |
|
|
(8,009 |
) |
Change in other assets |
|
|
(7,737 |
) |
|
(3,245 |
) |
Change in accounts payable |
|
|
(2,388 |
) |
|
6,602 |
|
Change in other liabilities |
|
|
14,747 |
|
|
(10,088 |
) |
Net cash provided by operating activities |
|
|
150,745 |
|
|
115,750 |
|
Cash flows from investing
activities |
|
|
|
|
|
Proceeds from disposals of assets |
|
|
1,941 |
|
|
1,440 |
|
Proceeds from property insurance |
|
|
184 |
|
|
2,087 |
|
Capital expenditures |
|
|
(48,433 |
) |
|
(36,337 |
) |
Purchases of investments |
|
|
(20,698 |
) |
|
(28,593 |
) |
Proceeds from sales of investments |
|
|
20,944 |
|
|
22,674 |
|
Acquisitions, net of cash acquired |
|
|
(76,505 |
) |
|
(16,495 |
) |
Net cash used for investing activities |
|
|
(122,567 |
) |
|
(55,224 |
) |
Cash flows from financing
activities |
|
|
|
|
|
Payments on debt |
|
|
(223 |
) |
|
(262 |
) |
Payments for debt issuance costs |
|
|
— |
|
|
(231 |
) |
Stock issued for stock and employee benefit plans, net of shares
withheld for taxes |
|
|
13,901 |
|
|
2,977 |
|
Purchases of common stock |
|
|
(22,957 |
) |
|
(56,730 |
) |
Dividends paid |
|
|
(23,508 |
) |
|
(22,009 |
) |
Net cash used for financing activities |
|
|
(32,787 |
) |
|
(76,255 |
) |
Effect of exchange rate changes
on cash and equivalents |
|
|
(475 |
) |
|
1,741 |
|
Change in cash, cash equivalents
and restricted cash |
|
|
(5,084 |
) |
|
(13,988 |
) |
Cash, cash equivalents and
restricted cash at beginning of period |
|
|
136,871 |
|
|
150,859 |
|
Cash, cash equivalents and
restricted cash at end of period |
|
$131,787 |
|
$136,871 |
|
|
|
|
|
|
|
Supplemental disclosure of
non-cash investing activities |
|
|
|
|
|
Capital expenditures included in accounts payable |
|
$3,250 |
|
$5,667 |
|
LA-Z-BOY
INCORPORATEDSEGMENT INFORMATION
|
|
Unaudited For the Fiscal Quarter Ended |
|
Unaudited For the Fiscal Year Ended |
|
(Amounts in thousands) |
|
4/27/2019 |
|
4/28/2018 |
|
4/27/2019 |
|
4/28/2018 |
|
Sales |
|
|
|
|
|
|
|
|
|
Upholstery segment: |
|
|
|
|
|
|
|
|
|
Sales to external customers |
|
$257,388 |
|
$270,668 |
|
$1,016,957 |
|
$1,010,097 |
|
Intersegment sales |
|
|
65,915 |
|
|
56,569 |
|
|
251,285 |
|
|
217,266 |
|
Upholstery segment sales |
|
|
323,303 |
|
|
327,237 |
|
|
1,268,242 |
|
|
1,227,363 |
|
|
|
|
|
|
|
|
|
|
|
Casegoods segment: |
|
|
|
|
|
|
|
|
|
Sales to external customers |
|
|
21,903 |
|
|
27,098 |
|
|
95,677 |
|
|
95,919 |
|
Intersegment sales |
|
|
4,742 |
|
|
3,505 |
|
|
18,796 |
|
|
15,474 |
|
Casegoods segment sales |
|
|
26,645 |
|
|
30,603 |
|
|
114,473 |
|
|
111,393 |
|
|
|
|
|
|
|
|
|
|
|
Retail segment sales |
|
|
151,870 |
|
|
121,545 |
|
|
570,201 |
|
|
474,613 |
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other: |
|
|
|
|
|
|
|
|
|
Sales to external customers |
|
|
22,630 |
|
|
714 |
|
|
62,566 |
|
|
3,318 |
|
Intersegment sales |
|
|
2,290 |
|
|
2,582 |
|
|
11,446 |
|
|
9,421 |
|
Corporate and Other sales |
|
|
24,920 |
|
|
3,296 |
|
|
74,012 |
|
|
12,739 |
|
|
|
|
|
|
|
|
|
|
|
Eliminations |
|
|
(72,947 |
) |
|
(62,656 |
) |
|
(281,527 |
) |
|
(242,161 |
) |
Consolidated sales |
|
$453,791 |
|
$420,025 |
|
$1,745,401 |
|
$1,583,947 |
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss) |
|
|
|
|
|
|
|
|
|
|
Upholstery segment |
|
$37,304 |
|
$41,927 |
|
|
$127,906 |
|
$130,349 |
|
Casegoods segment |
|
|
2,416 |
|
|
2,808 |
|
|
12,589 |
|
|
11,641 |
|
Retail segment |
|
|
12,743 |
|
|
7,963 |
|
|
37,922 |
|
|
20,709 |
|
Corporate and Other |
|
|
(15,292 |
) |
|
(6,991 |
) |
|
(48,743 |
) |
|
(33,330 |
) |
Consolidated operating income |
|
$37,171 |
|
$45,707 |
|
|
$129,674 |
|
$129,369 |
|
|
|
|
|
|
|
|
|
|
|
LA-Z-BOY INCORPORATED UNAUDITED QUARTERLY
FINANCIAL DATA
(Amounts in thousands,
except per share data) |
|
(13 weeks) |
|
(13 weeks) |
|
(13 weeks) |
|
(13 weeks) |
|
Fiscal Quarter Ended |
|
7/28/2018 |
|
10/27/2018 |
|
1/26/2019 |
|
4/27/2019 |
|
Sales |
|
$384,695 |
|
$439,333 |
|
$467,582 |
|
$453,791 |
|
Cost of sales |
|
|
236,173 |
|
|
264,928 |
|
|
277,712 |
|
|
264,018 |
|
Gross profit |
|
|
148,522 |
|
|
174,405 |
|
|
189,870 |
|
|
189,773 |
|
Selling, general and
administrative expense |
|
|
125,362 |
|
|
145,905 |
|
|
149,027 |
|
|
152,602 |
|
Operating income |
|
|
23,160 |
|
|
28,500 |
|
|
40,843 |
|
|
37,171 |
|
Interest expense |
|
|
(104 |
) |
|
(501 |
) |
|
(538 |
) |
|
(399 |
) |
Interest income |
|
|
602 |
|
|
392 |
|
|
540 |
|
|
569 |
|
Pension termination charge |
|
|
— |
|
|
— |
|
|
— |
|
|
(32,671 |
) |
Other income (expense), net |
|
|
892 |
|
|
(1,997 |
) |
|
(941 |
) |
|
(191 |
) |
Income before income taxes |
|
|
24,550 |
|
|
26,394 |
|
|
39,904 |
|
|
4,479 |
|
Income tax expense |
|
|
5,599 |
|
|
6,045 |
|
|
10,730 |
|
|
2,812 |
|
Net income |
|
|
18,951 |
|
|
20,349 |
|
|
29,174 |
|
|
1,667 |
|
Net income attributable to
noncontrolling interests |
|
|
(648 |
) |
|
(337 |
) |
|
(443 |
) |
|
(139 |
) |
Net income attributable to La-Z-Boy Incorporated |
|
$18,303 |
|
$20,012 |
|
$28,731 |
|
$1,528 |
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average common
shares |
|
|
47,161 |
|
|
47,259 |
|
|
47,091 |
|
|
47,369 |
|
Diluted net income attributable
to La-Z-Boy Incorporated per share |
|
$0.39 |
|
$0.42 |
|
$0.61 |
|
$0.03 |
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per share |
|
$0.12 |
|
$0.12 |
|
$0.13 |
|
$0.13 |
|
LA-Z-BOY INCORPORATED UNAUDITED QUARTERLY
FINANCIAL DATA
(Amounts in thousands,
except per share data) |
|
(13 weeks) |
|
(13 weeks) |
|
(13 weeks) |
|
(13 weeks) |
|
Fiscal Quarter Ended |
|
7/29/2017 |
|
10/28/2017 |
|
1/27/2018 |
|
4/28/2018 |
|
Sales |
|
$357,079 |
|
$393,205 |
|
$413,638 |
|
$420,025 |
|
Cost of sales |
|
|
217,976 |
|
|
238,253 |
|
|
251,140 |
|
|
253,831 |
|
Gross profit |
|
|
139,103 |
|
|
154,952 |
|
|
162,498 |
|
|
166,194 |
|
Selling, general and
administrative expense |
|
|
122,805 |
|
|
120,683 |
|
|
129,403 |
|
|
120,487 |
|
Operating income |
|
|
16,298 |
|
|
34,269 |
|
|
33,095 |
|
|
45,707 |
|
Interest expense |
|
|
(157 |
) |
|
(160 |
) |
|
(113 |
) |
|
(108 |
) |
Interest income |
|
|
343 |
|
|
376 |
|
|
444 |
|
|
546 |
|
Other income (expense), net |
|
|
1,749 |
|
|
(926 |
) |
|
(1,094 |
) |
|
(1,379 |
) |
Income before income taxes |
|
|
18,233 |
|
|
33,559 |
|
|
32,332 |
|
|
44,766 |
|
Income tax expense |
|
|
6,489 |
|
|
10,353 |
|
|
20,047 |
|
|
10,406 |
|
Net income |
|
|
11,744 |
|
|
23,206 |
|
|
12,285 |
|
|
34,360 |
|
Net income attributable to
noncontrolling interests |
|
|
(93 |
) |
|
(310 |
) |
|
(176 |
) |
|
(150 |
) |
Net income attributable to La-Z-Boy Incorporated |
|
$11,651 |
|
$22,896 |
|
$12,109 |
|
$34,210 |
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average common
shares |
|
|
48,846 |
|
|
48,297 |
|
|
47,757 |
|
|
47,472 |
|
|
|
|
|
|
|
|
|
|
|
Diluted net income attributable
to La-Z-Boy Incorporated per share |
|
$0.24 |
|
$0.47 |
|
$0.25 |
|
$0.72 |
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per share |
|
$0.11 |
|
$0.11 |
|
$0.12 |
|
$0.12 |
|
|
|
|
|
|
|
|
|
|
|
LA-Z-BOY
INCORPORATEDRECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL MEASURES
|
|
Unaudited for the Fiscal Quarter Ended |
|
Unaudited for the Fiscal Year
Ended |
|
(Amounts in thousands, except per
share data) |
|
4/27/2019 |
|
4/28/2018 |
|
4/27/2019 |
|
4/28/2018 |
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit |
|
$189,773 |
|
$166,194 |
|
$702,570 |
|
$622,747 |
|
Add back: Purchase accounting charges – incremental
expense upon the sale of inventory acquired at fair
value |
|
|
175 |
|
|
99 |
|
|
3,086 |
|
|
474 |
|
Non-GAAP gross profit |
|
$189,948 |
|
$166,293 |
|
$705,656 |
|
$623,221 |
|
|
|
|
|
|
|
|
|
|
|
GAAP SG&A |
|
$152,602 |
|
$120,487 |
|
$572,896 |
|
$493,378 |
|
Less: Purchase accounting
charges – amortization of intangible assets and
retention agreements |
|
|
(1,594 |
) |
|
(106 |
) |
|
(3,831 |
) |
|
(449 |
) |
Non-GAAP SG&A |
|
$151,008 |
|
$120,381 |
|
$569,065 |
|
$492,929 |
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income |
|
$37,171 |
|
$45,707 |
|
$129,674 |
|
$129,369 |
|
Add back: Purchase
accounting charges |
|
|
1,769 |
|
|
205 |
|
|
6,917 |
|
|
923 |
|
Non-GAAP operating income |
|
$38,940 |
|
$45,912 |
|
$136,591 |
|
$130,292 |
|
|
|
|
|
|
|
|
|
|
|
GAAP income before income
taxes |
|
$4,479 |
|
$44,766 |
|
$95,327 |
|
$128,890 |
|
Add back: Purchase
accounting charges recorded as part of gross profit,
SG&A, and interest expense |
|
|
1,959 |
|
|
205 |
|
|
7,486 |
|
|
923 |
|
Add back: Pension
termination charge |
|
|
32,671 |
|
|
— |
|
|
32,671 |
|
|
— |
|
Non-GAAP income before income
taxes |
|
$39,109 |
|
$44,971 |
|
$135,484 |
|
$129,813 |
|
|
|
|
|
|
|
|
|
|
|
GAAP net income attributable to
La-Z-Boy Incorporated |
|
$1,528 |
|
$34,210 |
|
$68,574 |
|
$80,866 |
|
Add back: Purchase
accounting charges recorded as part of gross profit,
SG&A, and interest expense |
|
|
1,959 |
|
|
205 |
|
|
7,486 |
|
|
923 |
|
Add back: Pension
termination charge |
|
|
32,671 |
|
|
— |
|
|
32,671 |
|
|
— |
|
Less: Tax effect of
purchase accounting and pension termination charges |
|
|
(5,915 |
) |
|
(24 |
) |
|
(7,275 |
) |
|
(339 |
) |
Non-GAAP net income attributable
to La-Z-Boy Incorporated |
|
$30,243 |
|
$34,391 |
|
$101,456 |
|
$81,450 |
|
|
|
|
|
|
|
|
|
|
|
GAAP net income attributable to
La-Z-Boy Incorporated per diluted share |
|
$0.03 |
|
$0.72 |
|
$1.44 |
|
$1.67 |
|
Add back: Purchase
accounting charges, net of tax, per share |
|
|
0.03 |
|
|
— |
|
|
0.12 |
|
|
0.01 |
|
Add back: Pension
termination charge, net of tax, per share |
|
|
0.58 |
|
|
— |
|
|
0.58 |
|
|
— |
|
Non-GAAP net income attributable
to La-Z- Boy Incorporated per diluted share |
|
$0.64 |
|
$0.72 |
|
$2.14 |
|
$1.68 |
|
|
|
|
|
|
|
|
|
|
|
LA-Z-BOY
INCORPORATEDRECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL MEASURESSEGMENT INFORMATION
|
|
Unaudited for the Fiscal Quarter Ended |
|
(Amounts in thousands) |
|
4/27/2019 |
|
% of sales |
|
4/28/2018 |
|
% of sales |
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income (loss) |
|
|
|
|
|
|
|
|
|
Upholstery segment |
|
$37,304 |
|
11.5 |
% |
|
$41,927 |
|
12.8 |
% |
|
Casegoods segment |
|
|
2,416 |
|
9.1 |
% |
|
|
2,808 |
|
9.2 |
% |
|
Retail segment |
|
|
12,743 |
|
8.4 |
% |
|
|
7,963 |
|
6.6 |
% |
|
Corporate and Other |
|
|
(15,292 |
) |
N/M |
|
|
|
(6,991 |
) |
N/M |
|
|
GAAP Consolidated operating income |
|
$37,171 |
|
8.2 |
% |
|
$45,707 |
|
10.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
Purchase accounting charges
affecting operating income |
|
|
|
|
|
|
|
|
|
Upholstery segment |
|
$57 |
|
|
|
$106 |
|
|
|
Casegoods segment |
|
|
— |
|
|
|
|
— |
|
|
|
Retail segment |
|
|
175 |
|
|
|
|
99 |
|
|
|
Corporate and Other |
|
|
1,537 |
|
|
|
|
— |
|
|
|
Consolidated purchase accounting charges affecting operating
income |
|
$1,769 |
|
|
|
$205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating income
(loss) |
|
|
|
|
|
|
|
|
|
Upholstery segment |
|
$37,361 |
|
11.6 |
% |
|
$42,033 |
|
12.8 |
% |
|
Casegoods segment |
|
|
2,416 |
|
9.1 |
% |
|
|
2,808 |
|
9.2 |
% |
|
Retail segment |
|
|
12,918 |
|
8.5 |
% |
|
|
8,062 |
|
6.6 |
% |
|
Corporate and Other |
|
|
(13,755 |
) |
N/M |
|
|
|
(6,991 |
) |
N/M |
|
|
Non-GAAP Consolidated operating income |
|
$38,940 |
|
8.6 |
% |
|
$45,912 |
|
10.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited for the Fiscal Year Ended |
|
(Amounts in thousands) |
|
4/27/2019 |
|
% of sales |
|
4/28/2018 |
|
% of sales |
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income (loss) |
|
|
|
|
|
|
|
|
|
Upholstery segment |
|
$127,906 |
|
10.1 |
% |
|
$130,349 |
|
10.6 |
% |
|
Casegoods segment |
|
|
12,589 |
|
11.0 |
% |
|
|
11,641 |
|
10.5 |
% |
|
Retail segment |
|
|
37,922 |
|
6.7 |
% |
|
|
20,709 |
|
4.4 |
% |
|
Corporate and Other |
|
|
(48,743 |
) |
N/M |
|
|
|
(33,330 |
) |
N/M |
|
|
GAAP Consolidated operating income |
|
$129,674 |
|
7.4 |
% |
|
$129,369 |
|
8.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
Purchase accounting charges
affecting operating income |
|
|
|
|
|
|
|
|
|
Upholstery segment |
|
$20 |
|
|
|
$222 |
|
|
|
Casegoods segment |
|
|
— |
|
|
|
|
— |
|
|
|
Retail segment |
|
|
1,683 |
|
|
|
|
701 |
|
|
|
Corporate and Other |
|
|
5,214 |
|
|
|
|
— |
|
|
|
Consolidated purchase accounting charges affecting operating
income |
|
$6,917 |
|
|
|
$923 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating income
(loss) |
|
|
|
|
|
|
|
|
|
Upholstery segment |
|
$127,926 |
|
10.1 |
% |
|
$130,571 |
|
10.6 |
% |
|
Casegoods segment |
|
|
12,589 |
|
11.0 |
% |
|
|
11,641 |
|
10.5 |
% |
|
Retail segment |
|
|
39,605 |
|
6.9 |
% |
|
|
21,410 |
|
4.5 |
% |
|
Corporate and Other |
|
|
(43,529 |
) |
N/M |
|
|
|
(33,330 |
) |
N/M |
|
|
Non-GAAP Consolidated operating income |
|
$136,591 |
|
7.8 |
% |
|
$130,292 |
|
8.2 |
% |
|
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