La-Z-Boy Incorporated (NYSE: LZB), a global leader in residential
furniture, today reported operating results for the fiscal 2022
first quarter ended July 24, 2021.
Fiscal 2022 first quarter* versus Fiscal
2021 first quarter:
- Consolidated sales increased 84% to
$524.8 million
- Strong written order trends:
- Written same-store sales in the
company-owned Retail segment increased 22%
- Written sales for Joybird increased
31%
- Consolidated operating margin:
- GAAP: 6.5% versus 1.5%
- Non-GAAP(1): 6.6% versus 3.1%
- Net income attributable to La-Z-Boy Incorporated per diluted
share (“EPS”):
- GAAP: $0.54 versus $0.10
- Non-GAAP(1): $0.55 versus
$0.18
- $42 million to shareholders through
share repurchases and dividends
*Subsequent to quarter end, the Board of
Directors increased the company's share repurchase authorization by
6.5 million shares to 9 million shares, representing approximately
20% of shares outstanding, equal to approximately $320 million at
yesterday's closing stock price.
Summary and Outlook
Melinda D. Whittington, President and Chief
Executive Officer of La-Z-Boy, said, "The La-Z-Boy enterprise
delivered all-time, record-high sales for a quarter, even with our
annual one-week maintenance shutdown in July. We are excited about
our future as demand trends remain strong across all business
units, our cash position is solid, and we are investing in our
business for continued success throughout the pandemic period and
beyond."
Whittington added, "While we increased our
production capacity in the period, we also continue to navigate our
way through a volatile environment, including rapidly escalating
commodity and freight costs, which have not shown signs of abating.
To mitigate these historic rising costs, we took additional pricing
actions in the quarter and, for the first time, imposed a surcharge
on pending dealer orders in our backlog to help mitigate these
significant cost increases in the near term."
Chief Financial Officer Bob Lucian noted, "With
the initiatives we are executing, we expect margin performance to
begin to improve in the second quarter, finishing the full fiscal
year with a consolidated non-GAAP operating margin at or near
double digits. Over the last two quarters, we returned
$79 million in value to our shareholders through share
repurchases. Reflecting confidence in our long-term cash
generation, our Board of Directors has increased our share
repurchase authorization, enabling our continued share
buyback."
Supporting Detail
Consolidated sales in the first quarter of
fiscal 2022 increased 84% to $525 million versus the fiscal 2021
first quarter, which was impacted by COVID, with plants reopening
at reduced capacity and most retailers closed for a portion of the
quarter. Compared with the pre-pandemic fiscal 2020 first quarter,
consolidated sales for the first quarter of fiscal 2022 increased
27%, for a compounded annual growth rate of 13%. Consolidated GAAP
operating margin increased to 6.5% versus 1.5% in the prior-year
first quarter. Consolidated non-GAAP(1) operating margin improved
to 6.6% versus 3.1% in the prior-year first quarter. Operating
margin for the period was impacted by short-term pressures on
Wholesale margins, resulting from previous pricing trailing
escalating input costs due to significant backlog, as well as
continued investment in capacity expansion.
GAAP diluted EPS was $0.54 for the fiscal 2022
first quarter versus $0.10 in the prior-year quarter. Non-GAAP(1)
diluted EPS was $0.55 versus $0.18 in the prior-year first
quarter.
Wholesale Segment:
- Sales:
- Increased 76% to $393.5 million in
the fiscal 2022 first quarter compared with the fiscal 2021 first
quarter, which was impacted by COVID
- Compared with the pre-pandemic
fiscal 2020 first quarter, sales increased 23% in the fiscal 2022
first quarter, for a compounded annual growth rate of 11%
- Operating Margin:
- Non-GAAP(1) operating margin in the
fiscal 2022 first quarter was 4.7% versus 9.4% for the prior-year
period, reflecting expected gross margin pressure from rising
commodity costs and the delay in related pricing actions moving
through the large order backlog, as well as capacity-related
start-up costs and labor challenges to expand production
Written same-store sales for the entire
La-Z-Boy Furniture Galleries®
network:
- Increased 10.4% for the fiscal 2022
first quarter compared with the fiscal 2021 first quarter
- Compared with the pre-pandemic
fiscal 2020 first quarter, written same-store sales increased 28.6%
for the fiscal 2022 first quarter, for a compounded annual growth
rate of 13.4%
Retail segment:
- Delivered sales:
- Doubled, increasing 100% to $181.8
million in the first quarter of fiscal 2022 compared with the
prior-year first quarter which was impacted by COVID
- Compared with the pre-pandemic
fiscal 2020 first quarter, delivered sales increased 27%, for a
compounded annual growth rate of 13%
- Written same-store sales for the
company-owned La-Z-Boy Furniture Galleries® stores:
- Increased 22% in the fiscal 2022
first quarter, reflecting positive trends across sales metrics,
including traffic, average ticket and Design sales, versus last
year's first quarter which included temporary store closures due to
COVID
- Compared with the pre-pandemic
fiscal 2020 first quarter, written same-store sales increased 34.5%
in the fiscal 2022 first quarter, for a compounded annual growth
rate of 16%
- Operating Margin:
- Non-GAAP(1) operating margin
increased to 11.2% in the fiscal 2022 first quarter versus a loss
of (6.8)% in the fiscal 2021 first quarter, primarily driven by
fixed-cost leverage on higher delivered sales volume. Last year's
first-quarter margin was impacted by a significant reduction in
delivered sales due to the impacts from COVID
Corporate & Other:
- Joybird delivered sales:
- Almost tripled, increasing 188% to
$38.7 million in the fiscal 2022 first quarter compared with the
same quarter last year which was impacted by COVID
- Compared with the pre-pandemic
fiscal 2020 first quarter, delivered sales increased 125%,
representing a compounded annual growth rate of 50%
- Joybird written sales:
- Increased 31% in the fiscal 2022
first quarter compared with the prior-year quarter
- Compared with the pre-pandemic
fiscal 2020 first quarter, written sales increased 82%,
representing a compounded annual growth rate of 35%, reflecting
continued robust order trends and the strength of the brand in the
online marketplace
- Joybird continues to deliver strong
gross margins, increased conversion rates and significant growth in
online and store traffic as it increases its marketing spend to
drive awareness and customer acquisition
Balance Sheet and Cash Flow
For the first quarter of fiscal 2022, the
company generated $6 million in cash from operating activities,
after investing $39 million in higher inventory levels to
protect against supply chain disruptions and to support increased
production and delivered sales. La-Z-Boy ended the period with $336
million in cash(2) and no debt, compared with $337 million in
cash(2) and $50 million in short-term borrowings at the end of
the fiscal 2021 first quarter. The company holds $33 million in
investments to enhance returns on cash versus $16.5 million at
the end of the fiscal 2021 first quarter. During the period, the
company invested $19 million in the business through capital
expenditures, paid $7 million in dividends and spent $36 million
repurchasing approximately 0.9 million shares of stock in the open
market under its existing authorized share repurchase program,
leaving approximately 2.5 million shares available for repurchase
under the program as of July 24, 2021.
Dividend and Share Repurchase
Authorization
On August 17, 2021, the Board of Directors
declared a quarterly cash dividend of $0.15 per share on the common
stock of the company, payable on September 15, 2021, to
shareholders of record on September 2, 2021.
Additionally on August 17, 2021, demonstrating
its confidence in the company's ability to grow profitably and
continue to generate strong operating cash flow, the company's
Board of Directors approved an increase of 6.5 million shares
to its existing share repurchase authorization. With the shares
available for repurchase under the program as of the end of the
fiscal 2022 first quarter, this increase brings the total share
repurchase authorization to 9 million shares, representing
approximately 20% of shares outstanding, equal to approximately
$320 million at yesterday's closing stock price. The company
expects to execute the repurchase program over a three-to-four-year
period, subject to market conditions, operational performance, cash
flow from operations, cash balances, potential M&A activity and
other business investments.
_____(1)Non-GAAP amounts
for the first quarter of fiscal 2022 exclude:
- purchase accounting charges related
to acquisitions completed in prior periods totaling $0.4 million
pre-tax, or $0.01 per diluted share, with $0.3 million included in
operating income and $0.1 million included in interest
expense.
Non-GAAP amounts for the first quarter
of fiscal 2021 exclude:
- a charge of $3.5 million pre-tax,
or $0.06 per diluted share, related to the company's business
realignment, which included a 10% reduction in the company's global
workforce and the temporary closure of its Newton, Mississippi
upholstery manufacturing facility; and
- purchase accounting charges related
to acquisitions completed in prior periods totaling $1.2 million
pre-tax, or $0.02 per diluted share, with $1.0 million included in
operating income and a $0.2 million expense included in interest
expense
Please refer to the accompanying “Reconciliation
of GAAP to Non-GAAP Financial Measures” for detailed information on
calculating the Non-GAAP measures used in this press release and a
reconciliation to the most directly comparable GAAP measure.
(2)Cash
includes cash, cash equivalents and restricted cash
Conference Call
La-Z-Boy will hold a conference call with the investment
community on Wednesday, August 18, 2021, at 8:30 a.m. Eastern time.
The toll-free dial-in number is 844.369.8770; international callers
may use 862.298.0840.
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:
42340. The webcast replay will be available for one year.
Cautionary Note Regarding
Forward-Looking Statements
This news release contains “forward-looking”
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements can be identified by
the fact that they do not relate strictly to historical or current
facts. Generally, forward-looking statements include information
concerning expectations, projections or trends relating to our
results of operations, financial results, financial condition,
strategic initiatives and plans, expenses, dividends, share
repurchases, liquidity, use of cash and cash requirements,
borrowing capacity, investments, future economic performance,
business and industry and the effect of the novel coronavirus
(“COVID-19”) pandemic on our business operations and financial
results.
The forward-looking statements in this press
release are based on certain assumptions and currently available
information and are subject to various risks and uncertainties,
many of which are unforeseeable and beyond our control, such as the
continuing and developing impact of, and uncertainty caused by, the
COVID-19 pandemic. Additional risks and uncertainties that we do
not presently know about or that we currently consider to be
immaterial may also affect our business operations and financial
results. Our actual future results and trends may differ materially
depending on a variety of factors, including, but not limited to,
the risks and uncertainties discussed in our fiscal 2021 Annual
Report on Form 10-K and other factors identified in our reports
filed with the Securities and Exchange Commission (the "SEC"),
available on the SEC's website at www.sec.gov. Given these risks
and uncertainties, you should not rely on forward-looking
statements as a prediction of actual results. We are including this
cautionary note to make applicable and take advantage of the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995 for forward-looking statements. We undertake no obligation
to update or revise any forward-looking statements, whether as a
result of new information, future events 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 SEC, 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 Wholesale segment includes England,
La-Z-Boy, American Drew®, Hammary®, and Kincaid®. The
company-owned Retail segment includes 157 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 560 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,
which may exclude, as applicable, business realignment charges,
purchase accounting charges, and charges for our supply chain
optimization initiative. The business realignment charges include
severance costs, asset impairment costs, and costs to relocate
equipment and inventory related to organizational changes we
undertook as a result of our response to COVID, including a
reduction in the company's work force and temporary closure of
certain manufacturing facilities. The purchase accounting charges
may 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. The
charges for our supply chain optimization initiative may include
severance costs, accelerated depreciation expense, costs to
relocate equipment and inventory, as well as other costs related to
the closure, relocation and sale of certain manufacturing
operations. In addition, this press release references the Non-GAAP
financial measure of “Non-GAAP operating margin” for a future
period. Non-GAAP operating margin may exclude items such as pre-tax
purchase accounting charges and pre-tax business realignment
charges. These and other not presently determinable items could
have a material impact on the determination of operating margin on
a GAAP basis and due to the probable variability and limited
visibility of excluded items, we have not provided a reference to
future period GAAP operating margin or a reconciliation of non-GAAP
operating margin for future periods in this press release. 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 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 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 and
the success with which we operate the businesses acquired. 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. Similarly,
business realignment charges and the charges related to the
company's supply chain optimization initiative are dependent on the
timing, size, number and nature of the operations being moved or
closed, and the charges may not be incurred on a predictable cycle.
Management believes that exclusion of these items facilitates more
consistent comparisons of the company’s operating results over
time. 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-tax deductible goodwill impairment charge and the adjustment to
the fair value of contingent consideration which reflects the
associated GAAP tax impact in the period presented.
Contact: Kathy Liebmann (734)
241-2438 kathy.liebmann@la-z-boy.com
LA-Z-BOY
INCORPORATEDCONSOLIDATED STATEMENT OF
INCOME
|
|
Quarter Ended |
(Unaudited, amounts in thousands, except per share
data) |
|
7/24/2021 |
|
7/25/2020 |
Sales |
|
$ |
524,783 |
|
|
|
$ |
285,458 |
|
|
Cost of sales |
|
322,701 |
|
|
|
169,095 |
|
|
Gross profit |
|
202,082 |
|
|
|
116,363 |
|
|
Selling, general and administrative expense |
|
167,711 |
|
|
|
112,038 |
|
|
Operating income |
|
34,371 |
|
|
|
4,325 |
|
|
Interest expense |
|
(311 |
) |
|
|
(459 |
) |
|
Interest income |
|
117 |
|
|
|
494 |
|
|
Other income (expense),
net |
|
(93 |
) |
|
|
1,474 |
|
|
Income before income taxes |
|
34,084 |
|
|
|
5,834 |
|
|
Income tax expense |
|
8,818 |
|
|
|
1,155 |
|
|
Net income |
|
25,266 |
|
|
|
4,679 |
|
|
Net (income) loss attributable
to noncontrolling interests |
|
(700 |
) |
|
|
119 |
|
|
Net income attributable to La-Z-Boy Incorporated |
|
$ |
24,566 |
|
|
|
$ |
4,798 |
|
|
|
|
|
|
|
Basic weighted average common
shares |
|
45,072 |
|
|
|
45,909 |
|
|
Basic net income attributable
to La-Z-Boy Incorporated per share |
|
$ |
0.54 |
|
|
|
$ |
0.10 |
|
|
|
|
|
|
|
Diluted weighted average
common shares |
|
45,404 |
|
|
|
45,965 |
|
|
Diluted net income
attributable to La-Z-Boy Incorporated per share |
|
$ |
0.54 |
|
|
|
$ |
0.10 |
|
|
LA-Z-BOY
INCORPORATEDCONSOLIDATED BALANCE
SHEET
(Unaudited, amounts in thousands, except par
value) |
|
7/24/2021 |
|
4/24/2021 |
Current assets |
|
|
|
|
Cash and equivalents |
|
$ |
332,960 |
|
|
|
$ |
391,213 |
|
|
Restricted cash |
|
3,266 |
|
|
|
3,490 |
|
|
Receivables, net of allowance of $3,367 at 7/24/2021 and $4,011 at
4/24/2021 |
|
141,597 |
|
|
|
139,341 |
|
|
Inventories, net |
|
264,454 |
|
|
|
226,137 |
|
|
Other current assets |
|
194,978 |
|
|
|
165,979 |
|
|
Total current assets |
|
937,255 |
|
|
|
926,160 |
|
|
Property, plant and equipment,
net |
|
229,343 |
|
|
|
219,194 |
|
|
Goodwill |
|
175,671 |
|
|
|
175,814 |
|
|
Other intangible assets,
net |
|
30,129 |
|
|
|
30,431 |
|
|
Deferred income taxes –
long-term |
|
11,477 |
|
|
|
11,915 |
|
|
Right of use lease assets |
|
342,335 |
|
|
|
343,800 |
|
|
Other long-term assets,
net |
|
83,297 |
|
|
|
79,008 |
|
|
Total assets |
|
$ |
1,809,507 |
|
|
|
$ |
1,786,322 |
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
Accounts payable |
|
$ |
118,120 |
|
|
|
$ |
94,152 |
|
|
Lease liabilities, current |
|
67,408 |
|
|
|
67,614 |
|
|
Accrued expenses and other current liabilities |
|
466,809 |
|
|
|
449,904 |
|
|
Total current liabilities |
|
652,337 |
|
|
|
611,670 |
|
|
Lease liabilities,
long-term |
|
294,369 |
|
|
|
295,023 |
|
|
Other long-term
liabilities |
|
98,352 |
|
|
|
97,483 |
|
|
Shareholders' equity |
|
|
|
|
Preferred shares – 5,000 authorized; none issued |
|
— |
|
|
|
— |
|
|
Common shares, $1.00 par value – 150,000 authorized; 44,623
outstanding at 7/24/21 and 45,361 outstanding at 4/24/21 |
|
44,623 |
|
|
|
45,361 |
|
|
Capital in excess of par value |
|
332,869 |
|
|
|
330,648 |
|
|
Retained earnings |
|
379,862 |
|
|
|
399,010 |
|
|
Accumulated other comprehensive loss |
|
(1,823 |
) |
|
|
(1,521 |
) |
|
Total La-Z-Boy Incorporated shareholders' equity |
|
755,531 |
|
|
|
773,498 |
|
|
Noncontrolling interests |
|
8,918 |
|
|
|
8,648 |
|
|
Total equity |
|
764,449 |
|
|
|
782,146 |
|
|
Total liabilities and equity |
|
$ |
1,809,507 |
|
|
|
$ |
1,786,322 |
|
|
LA-Z-BOY
INCORPORATEDCONSOLIDATED STATEMENT OF CASH
FLOWS
|
|
Quarter Ended |
(Unaudited, amounts in thousands) |
|
7/24/2021 |
|
7/25/2020 |
Cash flows from operating activities |
|
|
|
|
Net income |
|
$ |
25,266 |
|
|
|
$ |
4,679 |
|
|
Adjustments to reconcile net income to cash provided by operating
activities |
|
|
|
|
Loss on disposal of assets |
|
44 |
|
|
|
14 |
|
|
Gain on sale of investments |
|
(256 |
) |
|
|
(108 |
) |
|
Provision for doubtful accounts |
|
(611 |
) |
|
|
(1,575 |
) |
|
Depreciation and amortization |
|
8,553 |
|
|
|
8,119 |
|
|
Amortization of right-of-use lease assets |
|
17,245 |
|
|
|
16,469 |
|
|
Equity-based compensation expense |
|
2,460 |
|
|
|
2,047 |
|
|
Change in deferred taxes |
|
370 |
|
|
|
785 |
|
|
Change in receivables |
|
(1,783 |
) |
|
|
3,745 |
|
|
Change in inventories |
|
(38,921 |
) |
|
|
1,686 |
|
|
Change in other assets |
|
(10,380 |
) |
|
|
4,031 |
|
|
Change in payables |
|
24,767 |
|
|
|
8,864 |
|
|
Change in lease liabilities |
|
(17,263 |
) |
|
|
(15,857 |
) |
|
Change in other liabilities |
|
(3,328 |
) |
|
|
73,401 |
|
|
Net cash provided by operating activities |
|
6,163 |
|
|
|
106,300 |
|
|
|
|
|
|
|
Cash flows from investing
activities |
|
|
|
|
Proceeds from disposals of assets |
|
8 |
|
|
|
10 |
|
|
Capital expenditures |
|
(19,343 |
) |
|
|
(9,810 |
) |
|
Purchases of investments |
|
(9,900 |
) |
|
|
(3,623 |
) |
|
Proceeds from sales of investments |
|
9,716 |
|
|
|
14,671 |
|
|
Net cash provided by (used for) investing activities |
|
(19,519 |
) |
|
|
1,248 |
|
|
|
|
|
|
|
Cash flows from financing
activities |
|
|
|
|
Payments on debt and finance lease liabilities |
|
(30 |
) |
|
|
(25,013 |
) |
|
Holdback payments for acquisition purchases |
|
— |
|
|
|
(437 |
) |
|
Stock issued for stock and employee benefit plans, net of shares
withheld for taxes |
|
(2,228 |
) |
|
|
(1,749 |
) |
|
Repurchases of common stock |
|
(35,640 |
) |
|
|
— |
|
|
Dividends paid to shareholders |
|
(6,777 |
) |
|
|
— |
|
|
Dividends paid to minority interest joint venture partners (1) |
|
— |
|
|
|
(8,507 |
) |
|
Net cash used for financing activities |
|
(44,675 |
) |
|
|
(35,706 |
) |
|
|
|
|
|
|
Effect of exchange rate
changes on cash and equivalents |
|
(446 |
) |
|
|
1,310 |
|
|
Change in cash, cash
equivalents and restricted cash |
|
(58,477 |
) |
|
|
73,152 |
|
|
Cash, cash equivalents and
restricted cash at beginning of period |
|
394,703 |
|
|
|
263,528 |
|
|
Cash, cash equivalents and
restricted cash at end of period |
|
$ |
336,226 |
|
|
|
$ |
336,680 |
|
|
|
|
|
|
|
Supplemental disclosure of
non-cash investing activities |
|
|
|
|
Capital expenditures included in payables |
|
$ |
3,957 |
|
|
|
$ |
881 |
|
|
(1) Includes dividends paid to joint venture
minority partners resulting from the repatriation of dividends from
our foreign earnings that we no longer consider permanently
reinvested.
LA-Z-BOY
INCORPORATEDSEGMENT INFORMATION
|
|
Quarter Ended |
(Unaudited, amounts in thousands) |
|
7/24/2021 |
|
7/25/2020 |
Sales |
|
|
|
|
Wholesale segment: |
|
|
|
|
Sales to external customers |
|
$ |
303,617 |
|
|
|
$ |
179,755 |
|
|
Intersegment sales |
|
89,882 |
|
|
|
43,818 |
|
|
Wholesale segment sales |
|
393,499 |
|
|
|
223,573 |
|
|
|
|
|
|
|
Retail segment sales |
|
181,847 |
|
|
|
91,137 |
|
|
|
|
|
|
|
Corporate and Other: |
|
|
|
|
Sales to external customers |
|
39,319 |
|
|
|
14,566 |
|
|
Intersegment sales |
|
4,315 |
|
|
|
2,175 |
|
|
Corporate and Other sales |
|
43,634 |
|
|
|
16,741 |
|
|
|
|
|
|
|
Eliminations |
|
(94,197 |
) |
|
|
(45,993 |
) |
|
Consolidated sales |
|
$ |
524,783 |
|
|
|
$ |
285,458 |
|
|
|
|
|
|
|
Operating Income
(Loss) |
|
|
|
|
Wholesale segment |
|
$ |
18,331 |
|
|
|
$ |
17,940 |
|
|
Retail segment |
|
20,438 |
|
|
|
(6,627 |
) |
|
Corporate and Other |
|
(4,398 |
) |
|
|
(6,988 |
) |
|
Consolidated operating income |
|
$ |
34,371 |
|
|
|
$ |
4,325 |
|
|
LA-Z-BOY
INCORPORATEDRECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL MEASURES
|
|
Quarter Ended |
(Amounts in thousands, except per share data) |
|
7/24/2021 |
|
7/25/2020 |
GAAP gross profit |
|
$ |
202,082 |
|
|
|
$ |
116,363 |
|
|
Add back: Purchase accounting charges - incremental expense upon
the sale of inventory acquired at fair value |
|
— |
|
|
|
297 |
|
|
Add back: Business realignment charges |
|
— |
|
|
|
1,070 |
|
|
Add back: Supply chain optimization initiative charges/(gain) |
|
— |
|
|
|
(50 |
) |
|
Non-GAAP gross profit |
|
$ |
202,082 |
|
|
|
$ |
117,680 |
|
|
|
|
|
|
|
GAAP SG&A |
|
$ |
167,711 |
|
|
|
$ |
112,038 |
|
|
Less: Purchase accounting charges - amortization of intangible
assets and retention agreements |
|
(260 |
) |
|
|
(722 |
) |
|
Less: Business realignment charges |
|
— |
|
|
|
(2,472 |
) |
|
Non-GAAP SG&A |
|
$ |
167,451 |
|
|
|
$ |
108,844 |
|
|
|
|
|
|
|
GAAP operating income |
|
$ |
34,371 |
|
|
|
$ |
4,325 |
|
|
Add back: Purchase accounting charges |
|
260 |
|
|
|
1,019 |
|
|
Add back: Business realignment charges |
|
— |
|
|
|
3,542 |
|
|
Add back: Supply chain optimization initiative charges/(gain) |
|
— |
|
|
|
(50 |
) |
|
Non-GAAP operating income |
|
$ |
34,631 |
|
|
|
$ |
8,836 |
|
|
|
|
|
|
|
GAAP income before income
taxes |
|
$ |
34,084 |
|
|
|
$ |
5,834 |
|
|
Add back: Purchase accounting charges recorded as part of gross
profit, SG&A, and interest expense |
|
440 |
|
|
|
1,189 |
|
|
Add back: Business realignment charges |
|
— |
|
|
|
3,542 |
|
|
Add back: Supply chain optimization initiative charges/(gain) |
|
— |
|
|
|
(50 |
) |
|
Non-GAAP income before income
taxes |
|
$ |
34,524 |
|
|
|
$ |
10,515 |
|
|
|
|
|
|
|
GAAP net income attributable
to La-Z-Boy Incorporated |
|
$ |
24,566 |
|
|
|
$ |
4,798 |
|
|
Add back: Purchase accounting charges recorded as part of gross
profit, SG&A, and interest expense |
|
440 |
|
|
|
1,189 |
|
|
Less: Tax effect of purchase accounting |
|
(114 |
) |
|
|
(235 |
) |
|
Add back: Business realignment charges |
|
— |
|
|
|
3,542 |
|
|
Less: Tax effect of business realignment charges |
|
— |
|
|
|
(701 |
) |
|
Add back: Supply chain optimization initiative charges/(gain) |
|
— |
|
|
|
(50 |
) |
|
Less: Tax effect of supply chain optimization initiative |
|
— |
|
|
|
10 |
|
|
Non-GAAP net income
attributable to La-Z-Boy Incorporated |
|
$ |
24,892 |
|
|
|
$ |
8,552 |
|
|
|
|
|
|
|
GAAP net income attributable
to La-Z-Boy Incorporated per diluted share |
|
$ |
0.54 |
|
|
|
$ |
0.10 |
|
|
Add back: Purchase accounting charges, net of tax, per share |
|
0.01 |
|
|
|
0.02 |
|
|
Add back: Business realignment charges, net of tax, per share |
|
— |
|
|
|
0.06 |
|
|
Non-GAAP net income
attributable to La-Z-Boy Incorporated per diluted share |
|
$ |
0.55 |
|
|
|
$ |
0.18 |
|
|
LA-Z-BOY
INCORPORATEDRECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL MEASURESSEGMENT INFORMATION
|
|
Quarter Ended |
|
(Amounts in thousands) |
|
7/24/2021 |
|
% of sales |
|
7/25/2020 |
|
% of sales |
|
GAAP operating income (loss) |
|
|
|
|
|
|
|
|
|
Wholesale segment |
|
$ |
18,331 |
|
|
|
4.7% |
|
$ |
17,940 |
|
|
|
8.0% |
|
Retail segment |
|
20,438 |
|
|
|
11.2% |
|
(6,627 |
) |
|
|
(7.3)% |
|
Corporate and Other |
|
(4,398 |
) |
|
|
N/M |
|
(6,988 |
) |
|
|
N/M |
|
Consolidated GAAP operating income |
|
$ |
34,371 |
|
|
|
6.5% |
|
$ |
4,325 |
|
|
|
1.5% |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP items affecting
operating income |
|
|
|
|
|
|
|
|
|
Wholesale segment |
|
$ |
61 |
|
|
|
|
|
$ |
3,004 |
|
|
|
|
|
Retail segment |
|
— |
|
|
|
|
|
465 |
|
|
|
|
|
Corporate and Other |
|
199 |
|
|
|
|
|
1,042 |
|
|
|
|
|
Consolidated Non-GAAP items affecting operating income |
|
$ |
260 |
|
|
|
|
|
$ |
4,511 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating income
(loss) |
|
|
|
|
|
|
|
|
|
Wholesale segment |
|
$ |
18,392 |
|
|
|
4.7% |
|
$ |
20,944 |
|
|
|
9.4% |
|
Retail segment |
|
20,438 |
|
|
|
11.2% |
|
(6,162 |
) |
|
|
(6.8)% |
|
Corporate and Other |
|
(4,199 |
) |
|
|
N/M |
|
(5,946 |
) |
|
|
N/M |
|
Consolidated Non-GAAP operating income |
|
$ |
34,631 |
|
|
|
6.6% |
|
$ |
8,836 |
|
|
|
3.1% |
|
|
|
|
|
|
|
|
|
|
|
N/M - Not Meaningful |
|
|
|
|
|
|
|
|
|
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