La-Z-Boy Incorporated (NYSE: LZB), a global leader in residential
furniture, today reported operating results for the fiscal 2022
third quarter ended January 22, 2022.
Fiscal 2022 third quarter versus Fiscal
2021 third quarter:
- Consolidated sales increased 22% to
$572 million
- Retail segment posted record sales
and operating profit
- Strong written order trends
- Written same-store sales for the
La-Z-Boy Furniture Galleries® network increased 3%
- Written sales for Joybird increased
27%
- Consolidated operating margin:
- GAAP: 6.9% versus 7.3%
- Non-GAAP(1): 7.0% versus 9.5%
- Net income attributable to La-Z-Boy
Incorporated per diluted share (“EPS”):
- GAAP: $0.65 versus $0.62
- Non-GAAP(1): $0.65 versus $0.74
- $32 million returned to
shareholders through share repurchases and dividends in FY22
Q3
Melinda D. Whittington, President and Chief
Executive Officer of La-Z-Boy, said, "During our third quarter, we
delivered a strong 22% increase in consolidated sales versus the
prior-year period. Demand continues unabated across the La-Z-Boy
enterprise and remains well above pre-pandemic levels.
Additionally, we returned $32 million to shareholders through
dividends and share repurchases, bringing our year-to-date returns
to an all-time high level. While delivering an improved top line,
the quarter was marked by greater-than-expected supply chain
volatility, which had significant near-term impact on the
efficiency of our manufacturing capacity ramp plans, dampening
delivered sales growth and profit margins. A shortage of component
parts, record levels of COVID absenteeism in January, and the
challenge of hiring and training new employees at manufacturing
facilities all contributed to the issues we faced as the quarter
progressed. Additionally, a 14-week COVID-related shutdown in
Vietnam temporarily and dramatically impacted sales and
profitability for our casegoods import business, with minimal
product available to ship to customers and high freight costs."
Whittington added, "Our number one priority is
to improve the agility of our supply chain in this high-demand
environment to increase production more quickly and efficiently.
While the challenges faced during the quarter were significant, we
are managing through them to improve efficiencies, work down our
backlog and service customers and consumers while achieving greater
profitability. I remain very optimistic about the future of
La-Z-Boy Incorporated as we continue to make strategic investments
to increase our market share and drive long-term profitable growth
and returns for all stakeholders."
Consolidated sales in the third quarter of
fiscal 2022 increased 22% to $572 million versus the fiscal 2021
third quarter, reflecting ongoing capacity increases and pricing
and surcharge actions.
Consolidated GAAP operating margin was 6.9%
versus 7.3% in the prior-year third quarter. Consolidated
non-GAAP(1) operating margin was 7.0% versus 9.5% in the prior-year
third quarter. Operating margin for the period was impacted by
supply chain challenges, including raw material inflation, and
plant inefficiencies primarily related to new manufacturing
capacity as well as COVID impacts, partially offset by pricing and
surcharge actions, and fixed-cost leverage on higher volume.
GAAP diluted EPS increased to $0.65 for the
fiscal 2022 third quarter versus $0.62 in the prior-year quarter.
Non-GAAP(1) diluted EPS decreased to $0.65 versus $0.74 in the
prior-year third quarter.
Wholesale Segment:
- Sales:
- Increased 21% to $423 million in
the fiscal 2022 third quarter compared with the fiscal 2021 third
quarter driven by realized pricing and surcharge actions as well as
increased volume
- Operating Margin:
- Non-GAAP(1) operating margin in the
fiscal 2022 third quarter was 6.5% versus 10.2% for the prior-year
period, primarily reflecting higher raw material and freight costs,
sourcing-related tariff and duty increases, component parts
shortages, plant inefficiencies due to manufacturing capacity
start-up activities, and continued labor challenges. Additionally,
the company's casegoods business was significantly impacted by
COVID-related shutdowns in Vietnam and freight costs. These factors
were partially offset by pricing and surcharge actions, fixed-cost
leverage on higher volume and a lower marketing spend as a
percentage of sales
Written same-store sales for the entire
La-Z-Boy Furniture Galleries®
network:
- Increased 3% for the fiscal 2022
third quarter compared with the fiscal 2021 third quarter
- Compared with the pre-pandemic
fiscal 2020 third quarter, written same-store sales increased 9%
for the fiscal 2022 third quarter, for a compound annual growth
rate of approximately 4% over the two years
Retail segment:
- Delivered sales:
- Increased 19% to a record $197
million in the third quarter of fiscal 2022 compared with the
prior-year third quarter
- Within this, delivered same-store
sales increased 16% in the fiscal 2022 third quarter versus the
year-ago period
- Written same-store sales for the
company-owned La-Z-Boy Furniture Galleries® stores:
- Decreased 1% in the fiscal 2022
third quarter
- Fiscal year-to-date written
same-store sales increased 3% versus the prior-year period
- Operating Performance:
- Non-GAAP(1) operating profit
increased to a record $24 million in the fiscal 2022 third
quarter
- Non-GAAP(1) operating margin
increased to 12.2% in the fiscal 2022 third quarter versus 8.9% in
the fiscal 2021 third quarter, primarily driven by fixed-cost
leverage on higher delivered sales volume and disciplined expense
management
Corporate & Other:
- Joybird delivered sales:
- Increased 56% to a record $45
million in the fiscal 2022 third quarter compared with the same
quarter last year
- Compared with the pre-pandemic
fiscal 2020 third quarter, delivered sales more than doubled,
increasing 103%, representing a compound annual growth rate of
43%
- Joybird written sales:
- Increased 27% in the fiscal 2022
third quarter compared with the prior-year quarter
- Compared with the pre-pandemic
fiscal 2020 third quarter, written sales increased an impressive
128%, representing a compound annual growth rate of 51%, reflecting
continued robust order trends and the strength of the brand in the
online marketplace
- Profit for the quarter was roughly
break even, reflecting significant investment in marketing to grow
the business and increased raw material and freight costs which
negatively impacted gross margin
Balance Sheet and Cash Flow
For the fiscal 2022 year to date, the company
generated $45 million in cash from operating activities, after
investing $83 million in higher inventory levels to protect
against supply chain disruptions and to support increased
production and delivered sales.
The company continued to make disciplined
investments in the business, including $59 million in capital
expenditures to increase capacity, remodel stores, and upgrade
infrastructure, for the fiscal year to date.
The company has returned $96 million to
shareholders fiscal year to date, including $21 million in
dividends with $7 million paid in the third quarter, as well as $76
million in share repurchases, or approximately 2.1 million shares
of stock, leaving approximately 7.9 million shares available for
repurchase under its authorized share repurchase program as of
January 22, 2022.
La-Z-Boy ended the period with $240 million in
cash(2) compared with $393 million in cash(2) at the end of the
fiscal 2021 third quarter. The company holds $30 million in
investments to enhance returns on cash versus $31 million at
the end of the fiscal 2021 third quarter.
Dividend
On February 15, 2022, the Board of Directors
declared a quarterly cash dividend of $0.165 per share on the
common stock of the company. The dividend will be paid on March 15,
2022, to shareholders of record on March 3, 2022.
Outlook
Bob Lucian, Chief Financial Officer of La-Z-Boy
Incorporated, said, "Demand trends remain strong and our backlog
will support strengthening delivered sales as we increase capacity
over time, but near-term production gains will be slower than
previously expected. Global supply chain disruptions continue and
disproportionately impact our higher-end products, which sell at a
greater level in our La-Z-Boy Furniture Galleries® stores,
including our company-owned Retail stores. Separately, we expect
our casegoods import operations to normalize during the first half
of fiscal 2023 as we more consistently receive product and ship it
to customers.
"Taking these factors into consideration, we now
expect delivered sales per week in the fourth quarter to be flat to
slightly up versus the third quarter. Further, the fiscal fourth
quarter will benefit from containing 14 weeks compared to the third
quarter which contained only 12 weeks. We expect consolidated
non-GAAP operating margin to strengthen to the range of 7.5% to
8.5%. Over time, we continue to expect sales and operating margin
performance will improve incrementally as increases in capacity
allow us to more fully meet demand while leveraging fixed costs
with higher volume."
_____(1)Non-GAAP
amounts for the third quarter of fiscal 2022
exclude:
- purchase accounting charges related
to acquisitions completed in prior periods totaling $0.4 million
pre-tax, or less than $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 third quarter
of fiscal 2021 exclude:
- purchase accounting charges related
to acquisitions completed in prior periods totaling $10.4 million
pre-tax, or $0.20 per diluted share, primarily due to a write-up of
the Joybird contingent consideration liability based on forecasted
future performance, with $10.3 million included in operating income
and $0.1 million included in interest expense
- income of $5.2 million, or $0.08
per diluted share, related to the Coronavirus Aid, Relief, and
Economic Security Act (the "CARES Act") recorded in other income
related to the impact of employee retention credits
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, February 16, 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
664495.
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:
44333. 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 disease
2019 (“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®, Kincaid® and the company's
international wholesale and manufacturing businesses. The
company-owned Retail segment includes 163 of the 350 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 350 stand-alone La-Z-Boy Furniture Galleries® stores
and 559 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, purchase accounting
charges, benefits from the CARES Act, 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, 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. The benefits from the CARES Act
include the impact of employee retention credits. 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 also excludes benefits from the CARES Act when assessing
the company's operating and financial performance due to the
one-time nature of this transaction. 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)
241-2438kathy.liebmann@la-z-boy.com
LA-Z-BOY
INCORPORATEDCONSOLIDATED STATEMENT OF
INCOME
|
|
Quarter Ended |
|
Nine Months Ended |
(Unaudited, amounts in thousands, except per share
data) |
|
1/22/2022 |
|
1/23/2021 |
|
1/22/2022 |
|
1/23/2021 |
Sales |
|
$ |
571,573 |
|
|
$ |
470,196 |
|
|
$ |
1,672,245 |
|
|
$ |
1,214,774 |
|
Cost of sales |
|
|
352,208 |
|
|
|
268,944 |
|
|
|
1,027,503 |
|
|
|
696,604 |
|
Gross profit |
|
|
219,365 |
|
|
|
201,252 |
|
|
|
644,742 |
|
|
|
518,170 |
|
Selling, general and administrative expense |
|
|
179,878 |
|
|
|
166,838 |
|
|
|
516,771 |
|
|
|
431,492 |
|
Operating income |
|
|
39,487 |
|
|
|
34,414 |
|
|
|
127,971 |
|
|
|
86,678 |
|
Interest expense |
|
|
(160 |
) |
|
|
(298 |
) |
|
|
(713 |
) |
|
|
(1,103 |
) |
Interest income |
|
|
806 |
|
|
|
285 |
|
|
|
1,029 |
|
|
|
902 |
|
Other income (expense),
net |
|
|
(1,460 |
) |
|
|
6,532 |
|
|
|
(522 |
) |
|
|
7,995 |
|
Income before income taxes |
|
|
38,673 |
|
|
|
40,933 |
|
|
|
127,765 |
|
|
|
94,472 |
|
Income tax expense |
|
|
9,591 |
|
|
|
11,344 |
|
|
|
33,059 |
|
|
|
24,900 |
|
Net income |
|
|
29,082 |
|
|
|
29,589 |
|
|
|
94,706 |
|
|
|
69,572 |
|
Net income attributable to
noncontrolling interests |
|
|
(615 |
) |
|
|
(357 |
) |
|
|
(2,157 |
) |
|
|
(607 |
) |
Net income attributable to La-Z-Boy Incorporated |
|
$ |
28,467 |
|
|
$ |
29,232 |
|
|
$ |
92,549 |
|
|
$ |
68,965 |
|
|
|
|
|
|
|
|
|
|
Basic weighted average common
shares |
|
|
43,701 |
|
|
|
46,261 |
|
|
|
44,342 |
|
|
|
46,064 |
|
Basic net income attributable
to La-Z-Boy Incorporated per share |
|
$ |
0.65 |
|
|
$ |
0.63 |
|
|
$ |
2.09 |
|
|
$ |
1.50 |
|
|
|
|
|
|
|
|
|
|
Diluted weighted average
common shares |
|
|
43,968 |
|
|
|
46,818 |
|
|
|
44,640 |
|
|
|
46,407 |
|
Diluted net income
attributable to La-Z-Boy Incorporated per share |
|
$ |
0.65 |
|
|
$ |
0.62 |
|
|
$ |
2.07 |
|
|
$ |
1.49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LA-Z-BOY
INCORPORATEDCONSOLIDATED BALANCE
SHEET
(Unaudited, amounts in thousands, except par
value) |
|
1/22/2022 |
|
4/24/2021 |
Current assets |
|
|
|
|
Cash and equivalents |
|
$ |
236,712 |
|
|
$ |
391,213 |
|
Restricted cash |
|
|
3,266 |
|
|
|
3,490 |
|
Receivables, net of allowance of $2,996 at 1/22/2022 and $4,011 at
4/24/2021 |
|
|
163,018 |
|
|
|
139,341 |
|
Inventories, net |
|
|
315,595 |
|
|
|
226,137 |
|
Other current assets |
|
|
243,713 |
|
|
|
165,979 |
|
Total current assets |
|
|
962,304 |
|
|
|
926,160 |
|
Property, plant and equipment,
net |
|
|
250,945 |
|
|
|
219,194 |
|
Goodwill |
|
|
195,010 |
|
|
|
175,814 |
|
Other intangible assets,
net |
|
|
34,469 |
|
|
|
30,431 |
|
Deferred income taxes –
long-term |
|
|
11,685 |
|
|
|
11,915 |
|
Right of use lease assets |
|
|
388,713 |
|
|
|
343,800 |
|
Other long-term assets,
net |
|
|
86,438 |
|
|
|
79,008 |
|
Total assets |
|
$ |
1,929,564 |
|
|
$ |
1,786,322 |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
Accounts payable |
|
$ |
117,239 |
|
|
$ |
94,152 |
|
Lease liabilities, current |
|
|
73,222 |
|
|
|
67,614 |
|
Accrued expenses and other current liabilities |
|
|
523,009 |
|
|
|
449,904 |
|
Total current liabilities |
|
|
713,470 |
|
|
|
611,670 |
|
Lease liabilities,
long-term |
|
|
338,478 |
|
|
|
295,023 |
|
Other long-term
liabilities |
|
|
93,133 |
|
|
|
97,483 |
|
Shareholders' equity |
|
|
|
|
Preferred shares – 5,000 authorized; none issued |
|
|
— |
|
|
|
— |
|
Common shares, $1.00 par value – 150,000 authorized; 43,505
outstanding at 1/22/22 and 45,361 outstanding at 4/24/21 |
|
|
43,505 |
|
|
|
45,361 |
|
Capital in excess of par value |
|
|
339,294 |
|
|
|
330,648 |
|
Retained earnings |
|
|
395,577 |
|
|
|
399,010 |
|
Accumulated other comprehensive loss |
|
|
(2,989 |
) |
|
|
(1,521 |
) |
Total La-Z-Boy Incorporated shareholders' equity |
|
|
775,387 |
|
|
|
773,498 |
|
Noncontrolling interests |
|
|
9,096 |
|
|
|
8,648 |
|
Total equity |
|
|
784,483 |
|
|
|
782,146 |
|
Total liabilities and equity |
|
$ |
1,929,564 |
|
|
$ |
1,786,322 |
|
|
|
|
|
|
|
|
|
|
LA-Z-BOY
INCORPORATEDCONSOLIDATED STATEMENT OF CASH
FLOWS
|
|
Nine Months Ended |
(Unaudited, amounts in thousands) |
|
1/22/2022 |
|
1/23/2021 |
Cash flows from operating activities |
|
|
|
|
Net income |
|
$ |
94,706 |
|
|
$ |
69,572 |
|
Adjustments to reconcile net income to cash provided by operating
activities |
|
|
|
|
(Gain)/loss on disposal of assets |
|
|
(3,149 |
) |
|
|
133 |
|
Gain on sale of investments |
|
|
(340 |
) |
|
|
(438 |
) |
Provision for doubtful accounts |
|
|
(1,070 |
) |
|
|
(2,483 |
) |
Depreciation and amortization |
|
|
27,146 |
|
|
|
24,620 |
|
Amortization of right-of-use lease assets |
|
|
53,949 |
|
|
|
48,864 |
|
Equity-based compensation expense |
|
|
8,887 |
|
|
|
9,115 |
|
Change in deferred taxes |
|
|
214 |
|
|
|
5,189 |
|
Change in receivables |
|
|
(20,317 |
) |
|
|
(28,720 |
) |
Change in inventories |
|
|
(83,109 |
) |
|
|
(26,419 |
) |
Change in other assets |
|
|
(22,486 |
) |
|
|
(1,193 |
) |
Change in payables |
|
|
23,690 |
|
|
|
42,354 |
|
Change in lease liabilities |
|
|
(54,400 |
) |
|
|
(48,963 |
) |
Change in other liabilities |
|
|
21,471 |
|
|
|
158,200 |
|
Net cash provided by operating activities |
|
|
45,192 |
|
|
|
249,831 |
|
|
|
|
|
|
Cash flows from investing
activities |
|
|
|
|
Proceeds from disposals of assets |
|
|
3,999 |
|
|
|
252 |
|
Capital expenditures |
|
|
(58,585 |
) |
|
|
(26,722 |
) |
Purchases of investments |
|
|
(28,058 |
) |
|
|
(27,744 |
) |
Proceeds from sales of investments |
|
|
30,457 |
|
|
|
26,317 |
|
Acquisitions |
|
|
(24,849 |
) |
|
|
(2,000 |
) |
Net cash used for investing activities |
|
|
(77,036 |
) |
|
|
(29,897 |
) |
|
|
|
|
|
Cash flows from financing
activities |
|
|
|
|
Payments on debt and finance lease liabilities |
|
|
(91 |
) |
|
|
(75,020 |
) |
Holdback payments for acquisition purchases |
|
|
(23,000 |
) |
|
|
(5,783 |
) |
Stock issued for stock and employee benefit plans, net of shares
withheld for taxes |
|
|
(1,670 |
) |
|
|
6,259 |
|
Repurchases of common stock |
|
|
(75,646 |
) |
|
|
(875 |
) |
Dividends paid to shareholders |
|
|
(20,621 |
) |
|
|
(9,700 |
) |
Dividends paid to minority interest joint venture partners (1) |
|
|
(1,260 |
) |
|
|
(8,507 |
) |
Net cash used for financing activities |
|
|
(122,288 |
) |
|
|
(93,626 |
) |
|
|
|
|
|
Effect of exchange rate
changes on cash and equivalents |
|
|
(593 |
) |
|
|
3,191 |
|
Change in cash, cash
equivalents and restricted cash |
|
|
(154,725 |
) |
|
|
129,499 |
|
Cash, cash equivalents and
restricted cash at beginning of period |
|
|
394,703 |
|
|
|
263,528 |
|
Cash, cash equivalents and
restricted cash at end of period |
|
$ |
239,978 |
|
|
$ |
393,027 |
|
|
|
|
|
|
Supplemental disclosure of
non-cash investing activities |
|
|
|
|
Capital expenditures included in payables |
|
$ |
4,564 |
|
|
$ |
1,569 |
|
(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 |
|
Nine Months Ended |
(Unaudited, amounts in thousands) |
|
1/22/2022 |
|
1/23/2021 |
|
1/22/2022 |
|
1/23/2021 |
Sales |
|
|
|
|
|
|
|
|
Wholesale segment: |
|
|
|
|
|
|
|
|
Sales to external customers |
|
$ |
328,533 |
|
|
$ |
274,314 |
|
|
$ |
973,973 |
|
|
$ |
720,258 |
|
Intersegment sales |
|
|
94,748 |
|
|
|
76,394 |
|
|
|
281,899 |
|
|
|
197,039 |
|
Wholesale segment sales |
|
|
423,281 |
|
|
|
350,708 |
|
|
|
1,255,872 |
|
|
|
917,297 |
|
|
|
|
|
|
|
|
|
|
Retail segment sales |
|
|
197,052 |
|
|
|
165,959 |
|
|
|
571,319 |
|
|
|
419,371 |
|
|
|
|
|
|
|
|
|
|
Corporate and Other: |
|
|
|
|
|
|
|
|
Sales to external customers |
|
|
45,988 |
|
|
|
29,923 |
|
|
|
126,953 |
|
|
|
75,145 |
|
Intersegment sales |
|
|
3,991 |
|
|
|
3,768 |
|
|
|
11,673 |
|
|
|
9,004 |
|
Corporate and Other sales |
|
|
49,979 |
|
|
|
33,691 |
|
|
|
138,626 |
|
|
|
84,149 |
|
|
|
|
|
|
|
|
|
|
Eliminations |
|
|
(98,739 |
) |
|
|
(80,162 |
) |
|
|
(293,572 |
) |
|
|
(206,043 |
) |
Consolidated sales |
|
$ |
571,573 |
|
|
$ |
470,196 |
|
|
$ |
1,672,245 |
|
|
$ |
1,214,774 |
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss) |
|
|
|
|
|
|
|
|
Wholesale segment |
|
$ |
27,639 |
|
|
$ |
35,686 |
|
|
$ |
89,098 |
|
|
$ |
95,309 |
|
Retail segment |
|
|
24,102 |
|
|
|
14,707 |
|
|
|
68,502 |
|
|
|
23,173 |
|
Corporate and Other |
|
|
(12,254 |
) |
|
|
(15,979 |
) |
|
|
(29,629 |
) |
|
|
(31,804 |
) |
Consolidated operating income |
|
$ |
39,487 |
|
|
$ |
34,414 |
|
|
$ |
127,971 |
|
|
$ |
86,678 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LA-Z-BOY
INCORPORATEDRECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL MEASURES
|
|
Quarter Ended |
|
Nine Months Ended |
(Amounts in thousands, except per share data) |
|
1/22/2022 |
|
1/23/2021 |
|
1/22/2022 |
|
1/23/2021 |
GAAP gross profit |
|
$ |
219,365 |
|
|
$ |
201,252 |
|
|
$ |
644,742 |
|
|
$ |
518,170 |
|
Add back: Purchase accounting charges - incremental expense upon
the sale of inventory acquired at fair value |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
429 |
|
Add back: Business realignment charges/(gain) |
|
|
— |
|
|
|
(2 |
) |
|
|
— |
|
|
|
1,303 |
|
Less: Supply chain optimization initiative gain |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(50 |
) |
Non-GAAP gross profit |
|
$ |
219,365 |
|
|
$ |
201,250 |
|
|
$ |
644,742 |
|
|
$ |
519,852 |
|
|
|
|
|
|
|
|
|
|
GAAP SG&A |
|
$ |
179,878 |
|
|
$ |
166,838 |
|
|
$ |
516,771 |
|
|
$ |
431,492 |
|
Less: Purchase accounting charges - adjustment to fair value of
contingent consideration and amortization of intangible assets and
retention agreements |
|
|
(258 |
) |
|
|
(10,257 |
) |
|
|
(1,277 |
) |
|
|
(13,736 |
) |
Less: Business realignment gain/(charges) |
|
|
— |
|
|
|
— |
|
|
|
3,277 |
|
|
|
(2,580 |
) |
Non-GAAP SG&A |
|
$ |
179,620 |
|
|
$ |
156,581 |
|
|
$ |
518,771 |
|
|
$ |
415,176 |
|
|
|
|
|
|
|
|
|
|
GAAP operating income |
|
$ |
39,487 |
|
|
$ |
34,414 |
|
|
$ |
127,971 |
|
|
$ |
86,678 |
|
Add back: Purchase accounting charges |
|
|
258 |
|
|
|
10,257 |
|
|
|
1,277 |
|
|
|
14,165 |
|
Add back: Business realignment charges/(gain) |
|
|
— |
|
|
|
(2 |
) |
|
|
(3,277 |
) |
|
|
3,883 |
|
Less: Supply chain optimization initiative gain |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(50 |
) |
Non-GAAP operating income |
|
$ |
39,745 |
|
|
$ |
44,669 |
|
|
$ |
125,971 |
|
|
$ |
104,676 |
|
|
|
|
|
|
|
|
|
|
GAAP income before income
taxes |
|
$ |
38,673 |
|
|
$ |
40,933 |
|
|
$ |
127,765 |
|
|
$ |
94,472 |
|
Add back: Purchase accounting charges recorded as part of gross
profit, SG&A, and interest expense |
|
|
365 |
|
|
|
10,449 |
|
|
|
1,700 |
|
|
|
14,657 |
|
Add back: Business realignment charges/(gain) |
|
|
— |
|
|
|
(2 |
) |
|
|
(3,277 |
) |
|
|
3,883 |
|
Less: Supply chain optimization initiative gain |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(50 |
) |
Less: CARES Act benefit |
|
|
— |
|
|
|
(5,219 |
) |
|
|
— |
|
|
|
(5,219 |
) |
Non-GAAP income before income
taxes |
|
$ |
39,038 |
|
|
$ |
46,161 |
|
|
$ |
126,188 |
|
|
$ |
107,743 |
|
|
|
|
|
|
|
|
|
|
GAAP net income attributable
to La-Z-Boy Incorporated |
|
$ |
28,467 |
|
|
$ |
29,232 |
|
|
$ |
92,549 |
|
|
$ |
68,965 |
|
Add back: Purchase accounting charges recorded as part of gross
profit, SG&A, and interest expense |
|
|
365 |
|
|
|
10,449 |
|
|
|
1,700 |
|
|
|
14,657 |
|
Less: Tax effect of purchase accounting |
|
|
(91 |
) |
|
|
(1,073 |
) |
|
|
(310 |
) |
|
|
(1,479 |
) |
Add back: Business realignment charges/(gain) |
|
|
— |
|
|
|
(2 |
) |
|
|
(3,277 |
) |
|
|
3,883 |
|
Less: Tax effect of business realignment charges/(gain) |
|
|
— |
|
|
|
— |
|
|
|
845 |
|
|
|
(938 |
) |
Less: Supply chain optimization initiative gain |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(50 |
) |
Add back: Tax effect of supply chain optimization initiative
gain |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
13 |
|
Less: CARES Act benefit |
|
|
— |
|
|
|
(5,219 |
) |
|
|
— |
|
|
|
(5,219 |
) |
Add back: Tax effect of CARES Act benefit |
|
|
— |
|
|
|
1,261 |
|
|
|
— |
|
|
|
1,261 |
|
Non-GAAP net income
attributable to La-Z-Boy Incorporated |
|
$ |
28,741 |
|
|
$ |
34,648 |
|
|
$ |
91,508 |
|
|
$ |
81,093 |
|
|
|
|
|
|
|
|
|
|
GAAP net income attributable
to La-Z-Boy Incorporated per diluted share |
|
$ |
0.65 |
|
|
$ |
0.62 |
|
|
$ |
2.07 |
|
|
$ |
1.49 |
|
Add back: Purchase accounting charges, net of tax, per share |
|
|
— |
|
|
|
0.20 |
|
|
|
0.04 |
|
|
|
0.27 |
|
Add back: Business realignment charges/(gain), net of tax, per
share |
|
|
— |
|
|
|
— |
|
|
|
(0.06 |
) |
|
|
0.07 |
|
Less: CARES Act benefit, net of tax, per share |
|
|
— |
|
|
|
(0.08 |
) |
|
|
— |
|
|
|
(0.08 |
) |
Non-GAAP net income
attributable to La-Z-Boy Incorporated per diluted share |
|
$ |
0.65 |
|
|
$ |
0.74 |
|
|
$ |
2.05 |
|
|
$ |
1.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LA-Z-BOY
INCORPORATEDRECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL MEASURESSEGMENT INFORMATION
|
|
Quarter Ended |
|
Nine Months Ended |
(Amounts in thousands) |
|
1/22/2022 |
|
% of sales |
|
1/23/2021 |
|
% of sales |
|
1/22/2022 |
|
% of sales |
|
1/23/2021 |
|
% of sales |
GAAP operating income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale segment |
|
$ |
27,639 |
|
|
6.5% |
|
$ |
35,686 |
|
|
10.2% |
|
$ |
89,098 |
|
|
7.1% |
|
$ |
95,309 |
|
|
10.4% |
Retail segment |
|
|
24,102 |
|
|
12.2% |
|
|
14,707 |
|
|
8.9% |
|
|
68,502 |
|
|
12.0% |
|
|
23,173 |
|
|
5.5% |
Corporate and Other |
|
|
(12,254 |
) |
|
N/M |
|
|
(15,979 |
) |
|
N/M |
|
|
(29,629 |
) |
|
N/M |
|
|
(31,804 |
) |
|
N/M |
Consolidated GAAP operating income |
|
$ |
39,487 |
|
|
6.9% |
|
$ |
34,414 |
|
|
7.3% |
|
$ |
127,971 |
|
|
7.7% |
|
$ |
86,678 |
|
|
7.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP items affecting
operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale segment |
|
$ |
58 |
|
|
|
|
$ |
56 |
|
|
|
|
$ |
(3,099 |
) |
|
|
|
$ |
3,286 |
|
|
|
Retail segment |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
613 |
|
|
|
Corporate and Other |
|
|
200 |
|
|
|
|
|
10,199 |
|
|
|
|
|
1,099 |
|
|
|
|
|
14,099 |
|
|
|
Consolidated Non-GAAP items affecting operating income |
|
$ |
258 |
|
|
|
|
$ |
10,255 |
|
|
|
|
$ |
(2,000 |
) |
|
|
|
$ |
17,998 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating income
(loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale segment |
|
$ |
27,697 |
|
|
6.5% |
|
$ |
35,742 |
|
|
10.2% |
|
$ |
85,999 |
|
|
6.8% |
|
$ |
98,595 |
|
|
10.7% |
Retail segment |
|
|
24,102 |
|
|
12.2% |
|
|
14,707 |
|
|
8.9% |
|
|
68,502 |
|
|
12.0% |
|
|
23,786 |
|
|
5.7% |
Corporate and Other |
|
|
(12,054 |
) |
|
N/M |
|
|
(5,780 |
) |
|
N/M |
|
|
(28,530 |
) |
|
N/M |
|
|
(17,705 |
) |
|
N/M |
Consolidated Non-GAAP operating income |
|
$ |
39,745 |
|
|
7.0% |
|
$ |
44,669 |
|
|
9.5% |
|
$ |
125,971 |
|
|
7.5% |
|
$ |
104,676 |
|
|
8.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N/M - Not Meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
La Z Boy (NYSE:LZB)
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From Mar 2024 to Apr 2024
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From Apr 2023 to Apr 2024