La-Z-Boy Incorporated (NYSE: LZB), a global leader in residential
furniture, today reported record-setting second-quarter results for
the period ending October 29, 2022.
Fiscal 2023 second-quarter highlights
versus prior year:
- Consolidated sales increased 6% to
$611 million, a second-quarter record
- GAAP operating profit increased by
14%- Non-GAAP operating profit increased by 19%- GAAP
operating margin increased 70 basis points to 10.1%- Non-GAAP
operating margin increased 100 basis points to 10.0%
- GAAP EPS increased by
20%- Non-GAAP EPS increased by 24%
- Retail segment sales increased 31%
to $252 million, an all-time quarterly record- Operating
profit also all-time quarterly record
Melinda D. Whittington, President and Chief
Executive Officer of La-Z-Boy Incorporated, said, "We delivered
record second-quarter sales and operating performance in a
challenging environment led by our company-owned Retail business.
Strong supply chain execution in the period allowed us to reduce
our backlog and improve service to customers and consumers as we
continue to shorten lead times and move closer to delivering on our
brand promise — quality custom furniture with speed to market. On
the strength of that value proposition, our business remains larger
than pre-pandemic levels as consumers continue to place a value on
the comfort of their homes and entrust La-Z-Boy to deliver it."
Whittington added, "As we face near-term
macroeconomic and geopolitical headwinds that have slowed the pace
of written sales, we are operating from a position of brand and
financial strength. We remain focused on the long term, controlling
what we can, and positioning the company to move through this
period with ongoing operational excellence. We are pivoting quickly
to respond to market dynamics, including proactively aligning our
cost structure with demand, and making prudent investments to drive
long-term profitable growth through Century Vision. As we tackle
what lies ahead, we are confident we will navigate the environment
well, build for the future, and emerge stronger while increasing
market share throughout these challenging times."
Key Results:
|
|
Quarter Ended |
|
|
(Unaudited, amounts in thousands, except per share
data) |
|
10/29/2022 |
|
10/23/2021 |
|
Change |
Sales |
|
$ |
611,332 |
|
$ |
575,889 |
|
6% |
|
|
|
|
|
|
|
GAAP operating income |
|
|
61,883 |
|
|
54,113 |
|
14% |
Non-GAAP
operating income |
|
|
61,146 |
|
|
51,595 |
|
19% |
|
|
|
|
|
|
|
GAAP operating margin |
|
|
10.1% |
|
|
9.4% |
|
70 bps |
Non-GAAP
operating margin |
|
|
10.0% |
|
|
9.0% |
|
100 bps |
|
|
|
|
|
|
|
GAAP net income attributable
to La-Z-Boy Incorporated |
|
|
46,077 |
|
|
39,516 |
|
17% |
Non-GAAP net income
attributable to La-Z-Boy Incorporated |
|
|
45,357 |
|
|
37,896 |
|
20% |
|
|
|
|
|
|
|
Diluted weighted average
common shares |
|
|
43,182 |
|
|
44,423 |
|
|
|
|
|
|
|
|
|
GAAP diluted earnings per
share |
|
$ |
1.07 |
|
$ |
0.89 |
|
20% |
Non-GAAP diluted earnings per
share |
|
$ |
1.05 |
|
$ |
0.85 |
|
24% |
Liquidity Measures:
|
|
Six Months Ended |
|
|
|
Six Months Ended |
(Unaudited, amounts in thousands) |
|
10/29/2022 |
|
10/23/2021 |
|
(Unaudited, amounts in thousands) |
|
10/29/2022 |
|
10/23/2021 |
Free Cash Flow |
|
|
|
|
|
Cash Returns to Shareholders |
|
|
|
|
Operating cash flow |
|
$ |
30,954 |
|
|
$ |
15,434 |
|
|
Share repurchases |
|
$ |
5,004 |
|
$ |
50,640 |
Capital expenditures |
|
|
(40,442 |
) |
|
|
(33,314 |
) |
|
Dividends |
|
|
14,161 |
|
|
13,398 |
Free cash flow |
|
$ |
(9,488 |
) |
|
$ |
(17,880 |
) |
|
Cash returns to shareholders |
|
$ |
19,165 |
|
$ |
64,038 |
(Unaudited, amounts in thousands) |
|
10/29/2022 |
|
10/23/2021 |
Cash and cash equivalents |
|
$ |
204,626 |
|
$ |
293,341 |
Restricted cash |
|
|
3,268 |
|
|
3,266 |
Total cash, cash equivalents and restricted cash |
|
$ |
207,894 |
|
$ |
296,607 |
FY23 Q2 Results vs. FY22
Q2:
Consolidated Results:
- Consolidated sales in the second
quarter of fiscal 2023 increased 6% to $611 million, with the
realization of pricing and surcharge actions and the positive
effects of a favorable product and channel mix offsetting lower
delivered unit volume
- Consolidated GAAP operating margin
was 10.1% versus 9.4%
- Consolidated non-GAAP(1) operating
margin was 10.0% versus 9.0% - Improved operating margin was
driven primarily by a focus on manufacturing and delivering our
consumer sold backlog for our company-owned Retail stores and the
benefit of pricing and surcharge actions, partially offset by
higher input costs and marketing investments
- GAAP diluted EPS increased 20% to
$1.07 from $0.89; non-GAAP(1) diluted EPS increased 24% to $1.05
from $0.85
Retail Segment:
- Sales: - Delivered sales
increased 31% to an all-time quarterly record of $252 million;
delivered same-store sales increased 25%, as we improved service to
consumers and moved closer to pre-pandemic lead times in the
period - Total written sales for the company-owned La-Z-Boy
Furniture Galleries® stores (the company's Retail segment)
decreased 5%, reflecting softer demand across the industry driven
by economic uncertainty and weaker consumer sentiment
- Written same-store sales for the
company-owned La-Z-Boy Furniture Galleries® stores decreased
10%
- Written same-store sales were 12%
higher than pre-pandemic levels (FY20 Q2)
- Operating Performance: -
Non-GAAP(1) operating margin and operating profit increased to
all-time records of 16.5%, and $42 million, respectively, versus
12.5%, and $24 million in last year's second quarter, primarily
driven by fixed-cost leverage on higher delivered sales volume
Wholesale Segment:
- Sales: - Increased 2% to a
second-quarter record of $446 million driven by the realization of
pricing and surcharge actions coupled with favorable channel and
product mix; these factors were partially offset by lower volume,
primarily the result of some dealers delaying receipt of finished
goods due to warehouse constraints
- Operating Margin: -
Non-GAAP(1) operating margin was 8.6%, 50 basis points below prior
year; pricing and surcharge actions were more than offset by
increased raw material costs, plant inefficiencies due to lower
volume, and increased marketing spend to pre-pandemic levels
Corporate & Other:
- Joybird delivered sales decreased
5% to $38 million, and written sales declined 27% versus the
year-ago second quarter, reflecting both slowing e-commerce trends
and the effects of changes in campaign execution with a key
marketing partner which have since been reversed
- Joybird posted a loss for the
period, primarily reflecting lower volume, an unfavorable shift in
product mix, and a lower return on advertising spend
Balance Sheet and Cash Flow as of FY23 Q2
- Ended the quarter with $208 million
in cash(2) and $19 million in short-term investments to enhance
returns on cash, and no external debt
- Year to date, generated $31 million
in cash from operating activities versus $15 million in the
prior-year six-month period
- Year to date, spent $40 million on
capital expenditures, primarily related to La-Z-Boy Furniture
Galleries® store projects, new stores, and upgrades at our
manufacturing and distribution facilities
- Year to date, returned $19 million
to shareholders, including $14 million in dividends and $5 million
in share repurchases; the company has approximately 7.3 million
shares available for repurchase under its authorized share
repurchase program
Dividend
On November 30, 2022, the Board of Directors
declared a quarterly cash dividend of $0.1815 per share on the
common stock of the company, an increase of 10% over the prior
quarter. The dividend will be paid on December 20, 2022, to
shareholders of record on December 12, 2022.
Outlook
Bob Lucian, Chief Financial Officer of La-Z-Boy
Incorporated, said, "As we successfully reduce our backlog to
enable pre-pandemic consumer lead times, we expect the second half
of our fiscal year to be impacted by continued external headwinds
on consumer demand. As a result, we estimate delivered sales for
the fiscal 2023 third quarter to be in a range of about $525
million to $535 million, and consolidated non-GAAP operating margin
to be in a range of about 7.0% to 7.5%."
_____(1)Non-GAAP amounts
for the second quarter of
fiscal 2023 exclude:
- a purchase accounting benefit
related to acquisitions completed in prior periods totaling $0.4
million pre-tax, or $0.01 per diluted share, primarily due to the
write-off of the Joybird contingent consideration liability based
on forecasted future performance, with $0.4 million included in
operating income and less than $0.1 million included in interest
expense.
- a benefit of $0.3 million pre-tax,
or $0.01 per diluted share, related to our business realignment
plan, including costs associated with the closure of our Newton,
Mississippi manufacturing facility.
Non-GAAP amounts for the
second quarter of fiscal
2022 exclude:
- purchase accounting charges related
to acquisitions completed in prior periods totaling $0.9 million
pre-tax, or $0.02 per diluted share, with $0.8 million included in
operating income and $0.1 million included in interest
expense.
- a $3.3 million pre-tax, or $0.06
per diluted share, gain on the sale of the Newton, Mississippi
facility related to the company's business realignment, announced
in June 2020.
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 Thursday, December 1, 2022, at 8:30 a.m. Eastern time.
The toll-free dial-in number is 888.506.0062; international callers
may use 973.528.0011. Enter Participant Access Code 642911.
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:
46910. 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 coronavirus (“COVID”)
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. 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 2022 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®, Kincaid® and the company's
international wholesale and manufacturing businesses. The
company-owned Retail segment includes 169 of the 351 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 351 stand-alone La-Z-Boy Furniture Galleries® stores
and 526 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, and Non-GAAP net income attributable to La-Z-Boy
Incorporated per diluted share (and components thereof, including
Non-GAAP income before income taxes, Non-GAAP net income
attributable to La-Z-Boy Incorporated), which may exclude, as
applicable, business realignment charges and purchase accounting
charges. 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, temporary closure of certain manufacturing
facilities and subsequent gains resulting from the sale of related
assets. 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. 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.
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, therefore, we
have not provided a reconciliation of Non-GAAP operating margin for
future periods in this press release.
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 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 |
|
Six Months Ended |
(Unaudited, amounts in thousands, except per share
data) |
|
10/29/2022 |
|
10/23/2021 |
|
10/29/2022 |
|
10/23/2021 |
Sales |
|
$ |
611,332 |
|
|
$ |
575,889 |
|
|
$ |
1,215,423 |
|
|
$ |
1,100,672 |
|
Cost of sales |
|
|
350,596 |
|
|
|
352,594 |
|
|
|
713,227 |
|
|
|
675,295 |
|
Gross profit |
|
|
260,736 |
|
|
|
223,295 |
|
|
|
502,196 |
|
|
|
425,377 |
|
Selling, general and administrative expense |
|
|
198,853 |
|
|
|
169,182 |
|
|
|
387,670 |
|
|
|
336,893 |
|
Operating income |
|
|
61,883 |
|
|
|
54,113 |
|
|
|
114,526 |
|
|
|
88,484 |
|
Interest expense |
|
|
(119 |
) |
|
|
(242 |
) |
|
|
(278 |
) |
|
|
(553 |
) |
Interest income |
|
|
1,138 |
|
|
|
106 |
|
|
|
1,612 |
|
|
|
223 |
|
Other income (expense),
net |
|
|
183 |
|
|
|
1,031 |
|
|
|
228 |
|
|
|
938 |
|
Income before income taxes |
|
|
63,085 |
|
|
|
55,008 |
|
|
|
116,088 |
|
|
|
89,092 |
|
Income tax expense |
|
|
16,306 |
|
|
|
14,650 |
|
|
|
30,369 |
|
|
|
23,468 |
|
Net income |
|
|
46,779 |
|
|
|
40,358 |
|
|
|
85,719 |
|
|
|
65,624 |
|
Net income attributable to
noncontrolling interests |
|
|
(702 |
) |
|
|
(842 |
) |
|
|
(1,154 |
) |
|
|
(1,542 |
) |
Net income attributable to La-Z-Boy Incorporated |
|
$ |
46,077 |
|
|
$ |
39,516 |
|
|
$ |
84,565 |
|
|
$ |
64,082 |
|
|
|
|
|
|
|
|
|
|
Basic weighted average common
shares |
|
|
43,104 |
|
|
|
44,251 |
|
|
|
43,098 |
|
|
|
44,662 |
|
Basic net income attributable
to La-Z-Boy Incorporated per share |
|
$ |
1.07 |
|
|
$ |
0.89 |
|
|
$ |
1.96 |
|
|
$ |
1.43 |
|
|
|
|
|
|
|
|
|
|
Diluted weighted average
common shares |
|
|
43,182 |
|
|
|
44,423 |
|
|
|
43,174 |
|
|
|
44,915 |
|
Diluted net income
attributable to La-Z-Boy Incorporated per share |
|
$ |
1.07 |
|
|
$ |
0.89 |
|
|
$ |
1.96 |
|
|
$ |
1.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LA-Z-BOY
INCORPORATEDCONSOLIDATED BALANCE
SHEET
(Unaudited, amounts in thousands, except par
value) |
|
10/29/2022 |
|
4/30/2022 |
Current assets |
|
|
|
|
Cash and equivalents |
|
$ |
204,626 |
|
|
$ |
245,589 |
|
Restricted cash |
|
|
3,268 |
|
|
|
3,267 |
|
Receivables, net of allowance of $3,946 at 10/29/2022 and $3,406 at
4/30/2022 |
|
|
160,035 |
|
|
|
183,747 |
|
Inventories, net |
|
|
342,728 |
|
|
|
303,191 |
|
Other current assets |
|
|
146,656 |
|
|
|
215,982 |
|
Total current assets |
|
|
857,313 |
|
|
|
951,776 |
|
Property, plant and equipment,
net |
|
|
269,240 |
|
|
|
253,144 |
|
Goodwill |
|
|
203,459 |
|
|
|
194,604 |
|
Other intangible assets,
net |
|
|
38,640 |
|
|
|
33,971 |
|
Deferred income taxes –
long-term |
|
|
10,633 |
|
|
|
10,632 |
|
Right of use lease assets |
|
|
404,495 |
|
|
|
405,755 |
|
Other long-term assets,
net |
|
|
73,760 |
|
|
|
82,207 |
|
Total assets |
|
$ |
1,857,540 |
|
|
$ |
1,932,089 |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
Accounts payable |
|
$ |
106,614 |
|
|
$ |
104,025 |
|
Lease liabilities, short-term |
|
|
77,100 |
|
|
|
75,271 |
|
Accrued expenses and other current liabilities |
|
|
367,008 |
|
|
|
496,393 |
|
Total current liabilities |
|
|
550,722 |
|
|
|
675,689 |
|
Lease liabilities,
long-term |
|
|
353,444 |
|
|
|
354,843 |
|
Other long-term
liabilities |
|
|
69,588 |
|
|
|
81,935 |
|
Shareholders' equity |
|
|
|
|
Preferred shares – 5,000 authorized; none issued |
|
|
— |
|
|
|
— |
|
Common shares, $1.00 par value – 150,000 authorized; 43,136
outstanding at 10/29/22 and 43,089 outstanding at 4/30/22 |
|
|
43,136 |
|
|
|
43,089 |
|
Capital in excess of par value |
|
|
347,036 |
|
|
|
342,252 |
|
Retained earnings |
|
|
495,003 |
|
|
|
431,181 |
|
Accumulated other comprehensive loss |
|
|
(10,517 |
) |
|
|
(5,797 |
) |
Total La-Z-Boy Incorporated shareholders' equity |
|
|
874,658 |
|
|
|
810,725 |
|
Noncontrolling interests |
|
|
9,128 |
|
|
|
8,897 |
|
Total equity |
|
|
883,786 |
|
|
|
819,622 |
|
Total liabilities and equity |
|
$ |
1,857,540 |
|
|
$ |
1,932,089 |
|
|
LA-Z-BOY
INCORPORATEDCONSOLIDATED STATEMENT OF CASH
FLOWS
|
|
Six Months Ended |
(Unaudited, amounts in thousands) |
|
10/29/2022 |
|
10/23/2021 |
Cash flows from operating activities |
|
|
|
|
Net income |
|
$ |
85,719 |
|
|
$ |
65,624 |
|
Adjustments to reconcile net income to cash provided by operating
activities |
|
|
|
|
(Gain)/loss on disposal of assets |
|
|
1 |
|
|
|
(3,151 |
) |
(Gain)/loss on sale of investments |
|
|
77 |
|
|
|
(218 |
) |
Provision for doubtful accounts |
|
|
694 |
|
|
|
(944 |
) |
Depreciation and amortization |
|
|
19,258 |
|
|
|
17,785 |
|
Amortization of right-of-use lease assets |
|
|
38,580 |
|
|
|
34,368 |
|
Equity-based compensation expense |
|
|
5,079 |
|
|
|
6,354 |
|
Change in deferred taxes |
|
|
27 |
|
|
|
170 |
|
Change in receivables |
|
|
19,550 |
|
|
|
(33,937 |
) |
Change in inventories |
|
|
(36,771 |
) |
|
|
(59,336 |
) |
Change in other assets |
|
|
4,890 |
|
|
|
(20,666 |
) |
Change in payables |
|
|
8,027 |
|
|
|
22,683 |
|
Change in lease liabilities |
|
|
(39,380 |
) |
|
|
(34,598 |
) |
Change in other liabilities |
|
|
(74,797 |
) |
|
|
21,300 |
|
Net cash provided by operating activities |
|
|
30,954 |
|
|
|
15,434 |
|
|
|
|
|
|
Cash flows from investing
activities |
|
|
|
|
Proceeds from disposals of assets |
|
|
63 |
|
|
|
3,998 |
|
Capital expenditures |
|
|
(40,442 |
) |
|
|
(33,314 |
) |
Purchases of investments |
|
|
(4,714 |
) |
|
|
(21,426 |
) |
Proceeds from sales of investments |
|
|
12,660 |
|
|
|
22,666 |
|
Acquisitions |
|
|
(11,705 |
) |
|
|
(4,396 |
) |
Net cash used for investing activities |
|
|
(44,138 |
) |
|
|
(32,472 |
) |
|
|
|
|
|
Cash flows from financing
activities |
|
|
|
|
Payments on debt and finance lease liabilities |
|
|
(61 |
) |
|
|
(60 |
) |
Holdback payments for acquisition purchases |
|
|
(5,000 |
) |
|
|
(13,500 |
) |
Stock issued for stock and employee benefit plans, net of shares
withheld for taxes |
|
|
(1,711 |
) |
|
|
(1,870 |
) |
Repurchases of common stock |
|
|
(5,004 |
) |
|
|
(50,640 |
) |
Dividends paid to shareholders |
|
|
(14,161 |
) |
|
|
(13,398 |
) |
Dividends paid to minority interest joint venture partners (1) |
|
|
— |
|
|
|
(1,260 |
) |
Net cash used for financing activities |
|
|
(25,937 |
) |
|
|
(80,728 |
) |
|
|
|
|
|
Effect of exchange rate
changes on cash and equivalents |
|
|
(1,841 |
) |
|
|
(330 |
) |
Change in cash, cash
equivalents and restricted cash |
|
|
(40,962 |
) |
|
|
(98,096 |
) |
Cash, cash equivalents and
restricted cash at beginning of period |
|
|
248,856 |
|
|
|
394,703 |
|
Cash, cash equivalents and
restricted cash at end of period |
|
$ |
207,894 |
|
|
$ |
296,607 |
|
|
|
|
|
|
Supplemental disclosure of
non-cash investing activities |
|
|
|
|
Capital expenditures included in payables |
|
$ |
4,251 |
|
|
$ |
7,900 |
|
|
|
|
|
|
|
|
|
|
(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 |
|
Six Months Ended |
(Unaudited, amounts in thousands) |
|
10/29/2022 |
|
10/23/2021 |
|
10/29/2022 |
|
10/23/2021 |
Sales |
|
|
|
|
|
|
|
|
Wholesale segment: |
|
|
|
|
|
|
|
|
Sales to external customers |
|
$ |
319,613 |
|
|
$ |
341,823 |
|
|
$ |
643,341 |
|
|
$ |
645,440 |
|
Intersegment sales |
|
|
126,618 |
|
|
|
97,269 |
|
|
|
244,708 |
|
|
|
187,151 |
|
Wholesale segment sales |
|
|
446,231 |
|
|
|
439,092 |
|
|
|
888,049 |
|
|
|
832,591 |
|
|
|
|
|
|
|
|
|
|
Retail segment sales |
|
|
252,152 |
|
|
|
192,420 |
|
|
|
488,173 |
|
|
|
374,267 |
|
|
|
|
|
|
|
|
|
|
Corporate and Other: |
|
|
|
|
|
|
|
|
Sales to external customers |
|
|
39,567 |
|
|
|
41,646 |
|
|
|
83,909 |
|
|
|
80,965 |
|
Intersegment sales |
|
|
4,070 |
|
|
|
3,367 |
|
|
|
8,458 |
|
|
|
7,682 |
|
Corporate and Other sales |
|
|
43,637 |
|
|
|
45,013 |
|
|
|
92,367 |
|
|
|
88,647 |
|
|
|
|
|
|
|
|
|
|
Eliminations |
|
|
(130,688 |
) |
|
|
(100,636 |
) |
|
|
(253,166 |
) |
|
|
(194,833 |
) |
Consolidated sales |
|
$ |
611,332 |
|
|
$ |
575,889 |
|
|
$ |
1,215,423 |
|
|
$ |
1,100,672 |
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss) |
|
|
|
|
|
|
|
|
Wholesale segment |
|
$ |
38,476 |
|
|
$ |
43,128 |
|
|
$ |
64,618 |
|
|
$ |
61,459 |
|
Retail segment |
|
|
41,500 |
|
|
|
23,962 |
|
|
|
79,652 |
|
|
|
44,400 |
|
Corporate and Other |
|
|
(18,093 |
) |
|
|
(12,977 |
) |
|
|
(29,744 |
) |
|
|
(17,375 |
) |
Consolidated operating income |
|
$ |
61,883 |
|
|
$ |
54,113 |
|
|
$ |
114,526 |
|
|
$ |
88,484 |
|
|
LA-Z-BOY
INCORPORATEDRECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL MEASURES
|
|
Quarter Ended |
|
Six Months Ended |
(Amounts in thousands, except per share data) |
|
10/29/2022 |
|
10/23/2021 |
|
10/29/2022 |
|
10/23/2021 |
GAAP gross profit |
|
$ |
260,736 |
|
|
$ |
223,295 |
|
|
$ |
502,196 |
|
|
$ |
425,377 |
|
Purchase accounting charges - incremental expense upon the sale of
inventory acquired at fair value |
|
|
132 |
|
|
|
— |
|
|
|
132 |
|
|
|
— |
|
Business realignment (gain)/charges |
|
|
(319 |
) |
|
|
— |
|
|
|
609 |
|
|
|
— |
|
Non-GAAP gross profit |
|
$ |
260,549 |
|
|
$ |
223,295 |
|
|
$ |
502,937 |
|
|
$ |
425,377 |
|
|
|
|
|
|
|
|
|
|
GAAP SG&A |
|
$ |
198,853 |
|
|
$ |
169,182 |
|
|
$ |
387,670 |
|
|
$ |
336,893 |
|
Purchase accounting gain/(charges) - adjustment to the fair value
of contingent consideration, amortization of intangible assets and
retention agreements |
|
|
550 |
|
|
|
(759 |
) |
|
|
298 |
|
|
|
(1,019 |
) |
Business realignment gain |
|
|
— |
|
|
|
3,277 |
|
|
|
— |
|
|
|
3,277 |
|
Non-GAAP SG&A |
|
$ |
199,403 |
|
|
$ |
171,700 |
|
|
$ |
387,968 |
|
|
$ |
339,151 |
|
|
|
|
|
|
|
|
|
|
GAAP operating income |
|
$ |
61,883 |
|
|
$ |
54,113 |
|
|
$ |
114,526 |
|
|
$ |
88,484 |
|
Purchase accounting (gain)/charges |
|
|
(418 |
) |
|
|
759 |
|
|
|
(166 |
) |
|
|
1,019 |
|
Business realignment (gain)/charges |
|
|
(319 |
) |
|
|
(3,277 |
) |
|
|
609 |
|
|
|
(3,277 |
) |
Non-GAAP operating income |
|
$ |
61,146 |
|
|
$ |
51,595 |
|
|
$ |
114,969 |
|
|
$ |
86,226 |
|
|
|
|
|
|
|
|
|
|
GAAP income before income
taxes |
|
$ |
63,085 |
|
|
$ |
55,008 |
|
|
$ |
116,088 |
|
|
$ |
89,092 |
|
Purchase accounting (gain)/charges recorded as part of gross
profit, SG&A, and interest expense |
|
|
(372 |
) |
|
|
896 |
|
|
|
(27 |
) |
|
|
1,336 |
|
Business realignment (gain)/charges |
|
|
(319 |
) |
|
|
(3,277 |
) |
|
|
609 |
|
|
|
(3,277 |
) |
Non-GAAP income before income
taxes |
|
$ |
62,394 |
|
|
$ |
52,627 |
|
|
$ |
116,670 |
|
|
$ |
87,151 |
|
|
|
|
|
|
|
|
|
|
GAAP net income attributable
to La-Z-Boy Incorporated |
|
$ |
46,077 |
|
|
$ |
39,516 |
|
|
$ |
84,565 |
|
|
$ |
64,082 |
|
Purchase accounting (gain)/charges recorded as part of gross
profit, SG&A and interest expense |
|
|
(372 |
) |
|
|
896 |
|
|
|
(27 |
) |
|
|
1,336 |
|
Tax effect of purchase accounting |
|
|
(112 |
) |
|
|
(105 |
) |
|
|
(203 |
) |
|
|
(219 |
) |
Business realignment (gain)/charges |
|
|
(319 |
) |
|
|
(3,277 |
) |
|
|
609 |
|
|
|
(3,277 |
) |
Tax effect of business realignment |
|
|
84 |
|
|
|
865 |
|
|
|
(160 |
) |
|
|
859 |
|
Non-GAAP net income
attributable to La-Z-Boy Incorporated |
|
$ |
45,357 |
|
|
$ |
37,896 |
|
|
$ |
84,784 |
|
|
$ |
62,781 |
|
|
|
|
|
|
|
|
|
|
GAAP net income attributable
to La-Z-Boy Incorporated per diluted share |
|
$ |
1.07 |
|
|
$ |
0.89 |
|
|
$ |
1.96 |
|
|
$ |
1.43 |
|
Purchase accounting (gain)/charges, net of tax, per share |
|
|
(0.01 |
) |
|
|
0.02 |
|
|
|
(0.01 |
) |
|
|
0.03 |
|
Business realignment (gain)/charges, net of tax, per share |
|
|
(0.01 |
) |
|
|
(0.06 |
) |
|
|
0.01 |
|
|
|
(0.06 |
) |
Non-GAAP net income
attributable to La-Z-Boy Incorporated per diluted share |
|
$ |
1.05 |
|
|
$ |
0.85 |
|
|
$ |
1.96 |
|
|
$ |
1.40 |
|
|
LA-Z-BOY
INCORPORATEDRECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL MEASURESSEGMENT INFORMATION
|
|
Quarter Ended |
|
Six Months Ended |
(Amounts in thousands) |
|
10/29/2022 |
|
% of sales |
|
10/23/2021 |
|
% of sales |
|
10/29/2022 |
|
% of sales |
|
10/23/2021 |
|
% of sales |
GAAP operating income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale segment |
|
$ |
38,476 |
|
|
8.6 |
% |
|
$ |
43,128 |
|
|
9.8 |
% |
|
$ |
64,618 |
|
|
7.3 |
% |
|
$ |
61,459 |
|
|
7.4 |
% |
Retail segment |
|
|
41,500 |
|
|
16.5 |
% |
|
|
23,962 |
|
|
12.5 |
% |
|
|
79,652 |
|
|
16.3 |
% |
|
|
44,400 |
|
|
11.9 |
% |
Corporate and Other |
|
|
(18,093 |
) |
|
N/M |
|
|
|
(12,977 |
) |
|
N/M |
|
|
|
(29,744 |
) |
|
N/M |
|
|
|
(17,375 |
) |
|
N/M |
|
Consolidated GAAP operating income |
|
$ |
61,883 |
|
|
10.1 |
% |
|
$ |
54,113 |
|
|
9.4 |
% |
|
$ |
114,526 |
|
|
9.4 |
% |
|
$ |
88,484 |
|
|
8.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP items affecting
operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale segment |
|
$ |
(269 |
) |
|
|
|
$ |
(3,217 |
) |
|
|
|
$ |
712 |
|
|
|
|
$ |
(3,157 |
) |
|
|
Retail segment |
|
|
132 |
|
|
|
|
|
— |
|
|
|
|
|
132 |
|
|
|
|
|
— |
|
|
|
Corporate and Other |
|
|
(600 |
) |
|
|
|
|
699 |
|
|
|
|
|
(401 |
) |
|
|
|
|
899 |
|
|
|
Consolidated Non-GAAP items affecting operating income |
|
$ |
(737 |
) |
|
|
|
$ |
(2,518 |
) |
|
|
|
$ |
443 |
|
|
|
|
$ |
(2,258 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating income
(loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale segment |
|
$ |
38,207 |
|
|
8.6 |
% |
|
$ |
39,911 |
|
|
9.1 |
% |
|
$ |
65,330 |
|
|
7.4 |
% |
|
$ |
58,302 |
|
|
7.0 |
% |
Retail segment |
|
|
41,632 |
|
|
16.5 |
% |
|
|
23,962 |
|
|
12.5 |
% |
|
|
79,784 |
|
|
16.3 |
% |
|
|
44,400 |
|
|
11.9 |
% |
Corporate and Other |
|
|
(18,693 |
) |
|
N/M |
|
|
|
(12,278 |
) |
|
N/M |
|
|
|
(30,145 |
) |
|
N/M |
|
|
|
(16,476 |
) |
|
N/M |
|
Consolidated Non-GAAP operating income |
|
$ |
61,146 |
|
|
10.0 |
% |
|
$ |
51,595 |
|
|
9.0 |
% |
|
$ |
114,969 |
|
|
9.5 |
% |
|
$ |
86,226 |
|
|
7.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N/M - Not Meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
La Z Boy (NYSE:LZB)
Historical Stock Chart
From Feb 2024 to Mar 2024
La Z Boy (NYSE:LZB)
Historical Stock Chart
From Mar 2023 to Mar 2024