La-Z-Boy Incorporated (NYSE: LZB), a global leader in residential
furniture, today reported record sales and operating income for the
fiscal 2022 fourth quarter and full year ended April 30, 2022.
Fiscal 2022 full year versus Fiscal 2021
full year:
- Consolidated sales increased 36% to
a record $2.4 billion
- +33% adjusting for the 53rd week in
fiscal 2022
- Retail segment sales increased 31%
to $804 million
- Record sales, operating profit, and
operating margin
- Joybird sales increased 62% to a
record $176 million
- Written sales for Joybird increased
27%
- Consolidated operating margin:
- GAAP: 8.8% versus 7.9%
- Non-GAAP(1): 8.1% versus 9.0%
- Net income attributable to La-Z-Boy
Incorporated per diluted share (“EPS”):
- GAAP: $3.39 versus $2.30
- Non-GAAP(1): $3.11 versus $2.62
- $118 million returned to
shareholders through share repurchases and dividends
Fiscal 2022 fourth quarter versus Fiscal
2021 fourth quarter:
- Consolidated sales increased 32% to
a record $685 million
- +22% adjusting for the 53rd week in
fiscal 2022
- Retail segment sales increased 20%
to $233 million
- Record sales, operating profit, and
operating margin
- Joybird sales increased 40% to a
record $53 million
- Consolidated operating margin:
- GAAP: 11.5% versus 9.6%
- Non-GAAP(1): 9.4% versus 10.0%
- Net income attributable to La-Z-Boy
Incorporated per diluted share (“EPS”):
- GAAP: $1.33 versus $0.81
- Non-GAAP(1): $1.07 versus $0.87
- $22 million returned to
shareholders through share repurchases and dividends
Melinda D. Whittington, President and Chief
Executive Officer of La-Z-Boy, said, "In what was a dynamic and
volatile year marked by strong consumer demand for home
furnishings, significant global supply chain challenges, and now
macroeconomic and geopolitical uncertainty, La-Z-Boy Incorporated
delivered record sales and operating income driven by powerful
consumer brands, vast distribution, and the hard work of our
passionate team. Our company-owned Retail segment posted record
sales for the year, in addition to record operating profit which
more than doubled, while sales for direct-to-consumer Joybird
increased 62% to a record $176 million. Our Wholesale segment
delivered record sales, with strong sequential improvement on
production execution and margins. We had a great finish to the
year, including sequential quarterly improvement in operating
margin."
Whittington added, "In the near term, we remain
focused on increasing our agility to work down our backlog and
improve service to customers and consumers with shorter lead times.
Longer-term goals are centered on sustained profitable growth
through our Century Vision strategic investments, even as we
weather continued expected macroeconomic volatility. We expect our
strong balance sheet and significant backlog will allow us to move
through the current uncertain period and make important investments
in our future as we deliver returns to all stakeholders."
Consolidated sales in the fourth quarter of
fiscal 2022 increased 32% to $685 million versus the fiscal 2021
fourth quarter, reflecting higher production, pricing and surcharge
actions, and the extra week in the fiscal 2022 quarter which
increased sales by approximately $49 million based on the average
weekly sales for the quarter.
Consolidated GAAP operating margin was 11.5%
versus 9.6% in the prior-year fourth quarter. Consolidated
non-GAAP(1) operating margin was 9.4% versus 10.0% in the
prior-year fourth quarter. Operating margin for the current-year
period was impacted by raw material inflation and plant
inefficiencies related to increasing manufacturing capacity,
partially offset by pricing and surcharge actions, and fixed-cost
leverage on higher volume.
GAAP diluted EPS increased to $1.33 for the
fiscal 2022 fourth quarter versus $0.81 in the prior-year quarter.
Non-GAAP(1) diluted EPS increased 23% to $1.07 versus $0.87 in the
prior-year fourth quarter.
Wholesale Segment:
- Sales:
- Increased 34% (+24% adjusting for
the 53rd week) to a record $513 million in the fiscal 2022 fourth
quarter compared with the fiscal 2021 fourth quarter driven by
realized pricing and surcharge actions as well as increased
volume
- Operating Margin:
- Non-GAAP(1) operating margin in the
fiscal 2022 fourth quarter was 8.8% versus 10.2% for the prior-year
period, primarily reflecting higher raw material and freight costs,
differences in channel mix, and plant inefficiencies related to
increasing manufacturing capacity; these factors were partially
offset by pricing and surcharge actions
- Sequentially from the fiscal 2022
third quarter, operating margin improved 230 basis points in the
fourth quarter of fiscal 2022
Retail segment:
- Delivered sales:
- Increased 20% (+12% adjusting for
the 53rd week) to a record $233 million in the fourth quarter of
fiscal 2022 compared with the prior-year fourth quarter
- Delivered same-store sales
increased 16% in the fiscal 2022 fourth quarter versus the year-ago
period
- Written same-store sales for the
company-owned La-Z-Boy Furniture Galleries® stores decreased 9% in
the fiscal 2022 fourth quarter, reflecting near-term consumer
impacts of inflation and geopolitical concerns
- Operating Performance:
- Non-GAAP(1) operating margin
increased to a record 13.0%, or $30 million in operating profit, in
the fiscal 2022 fourth quarter versus 12.2%, or $24 million in
operating profit, in the fiscal 2021 fourth quarter, primarily
driven by fixed-cost leverage on higher delivered sales volume
Corporate & Other:
- Joybird delivered sales increased
40% (+30% adjusting for the 53rd week) to a record $53 million in
the fiscal 2022 fourth quarter compared with the same quarter last
year
- Joybird written sales increased 3%
in the fiscal 2022 fourth quarter compared with the prior-year
quarter
- Joybird profit for the quarter
increased versus the prior-year period, reflecting an improved
gross margin and continued increased marketing investments as the
company builds brand awareness while continuing to increase web
conversion, retail store traffic, average order value and average
sales price
Balance Sheet and Cash Flow
For fiscal 2022, the company generated $79
million in cash from operating activities, after investing
$72 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 $77 million in capital
expenditures for the year, primarily related to store remodels, new
upholstery manufacturing capacity in Mexico, plant upgrades, and
technology upgrades.
The company returned $118 million to
shareholders in fiscal 2022, including $28 million in dividends
with $7 million paid in the fourth quarter, as well as $91 million
in share repurchases, or approximately 2.5 million shares of stock,
leaving approximately 7.5 million shares available for repurchase
under its authorized share repurchase program as of April 30,
2022.
La-Z-Boy ended fiscal 2022 with $249 million in
cash(2) compared with $395 million in cash(2) at the end of fiscal
2021. The company holds $27 million in investments to enhance
returns on cash versus $32 million at the end of fiscal 2021.
Outlook
Bob Lucian, Chief Financial Officer of La-Z-Boy
Incorporated, said, "We are pleased with our strong fourth quarter
execution, as we leverage our manufacturing investments to service
our large backlog. We expect current macroeconomic and geopolitical
uncertainty and its effect on consumer sentiment will likely cause
demand trends to remain volatile for the foreseeable future. We are
beginning to increase investments in marketing to drive demand for
our strong brands to leverage their power in the marketplace,
controlling the controllables, and improving our agility to
navigate global supply chain disruptions. Taking all known factors
into consideration, we expect delivered sales for the fiscal 2023
first quarter to be up 7% to 10% versus the first quarter of fiscal
2022, in a range of $560 million to $575 million, and consolidated
non-GAAP operating margin to be in a range of 6.5% to 7.5%."
_____(1)Non-GAAP amounts
for the fourth quarter of fiscal 2022 exclude:
- a purchase accounting net benefit
related to acquisitions completed in prior periods totaling $3.4
million pre-tax, or $0.08 per diluted share, with $3.5 million
included in operating income and $0.1 million included in interest
expense
- a benefit of $10.7 million pre-tax,
or $0.18 per diluted share, related to sale-leaseback transactions
of three retail locations
Non-GAAP amounts for the fourth quarter
of fiscal 2021 exclude:
- purchase accounting charges related
to acquisitions completed in prior periods totaling $2.0 million
pre-tax, plus related tax adjustments, or $0.06 per diluted share,
primarily due to a write-up of the Joybird contingent consideration
liability based on forecasted future performance, with $1.9 million
included in operating income and $0.1 million included in interest
expense
Non-GAAP amounts for the full fiscal
2022 year exclude:
- a purchase accounting net benefit
related to acquisitions completed in prior periods totaling $1.7
million pre-tax, or $0.04 per diluted share, with $2.3 million
included in operating income and $0.5 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. The company continues to operate a portion of this
facility
- a benefit of $10.7 million pre-tax,
or $0.18 per diluted share, related to sale-leaseback transactions
of three retail locations
Non-GAAP amounts for the full fiscal
2021 year exclude:
- purchase accounting charges related
to acquisitions completed in prior periods totaling $16.7 million
pre-tax, or $0.33 per diluted share, primarily due to a write-up of
the Joybird contingent consideration liability based on forecasted
future performance, with $16.0 million included in operating income
and $0.7 million included in interest expense
- a charge of $3.9 million pre-tax,
or $0.07 per diluted share, related to the company's business
realignment initiative announced in June 2020
- income of $5.2 million pre-tax, 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, June 22, 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 546693.
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:
45734. 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 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 161 of the 348 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 348 stand-alone La-Z-Boy Furniture Galleries® stores
and 531 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, charges for our supply chain
optimization initiative and sale-leaseback gains. 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. Sale-leaseback gains are the result of
the sale of the buildings and related fixed assets of three Retail
stores.
In addition, this press release references the
Non-GAAP financial measure of “Non-GAAP earnings per share” for a
future period. Non-GAAP earnings per share may exclude items such
as pre-tax purchase accounting charges. These and other not
presently determinable items could have a material impact on the
determination of earnings per share 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
earnings per share 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 and
sale-leasebacks when assessing the company's operating and
financial performance due to the one-time or infrequent nature of
these transactions. 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 |
|
Year Ended |
(Unaudited, amounts in thousands, except per share
data) |
|
4/30/2022 |
|
4/24/2021 |
|
4/30/2022 |
|
4/24/2021 |
Sales |
|
$ |
684,566 |
|
|
$ |
519,470 |
|
|
$ |
2,356,811 |
|
|
$ |
1,734,244 |
|
Cost of sales |
|
|
413,339 |
|
|
|
297,380 |
|
|
|
1,440,842 |
|
|
|
993,984 |
|
Gross profit |
|
|
271,227 |
|
|
|
222,090 |
|
|
|
915,969 |
|
|
|
740,260 |
|
Selling, general and administrative expense |
|
|
192,442 |
|
|
|
172,032 |
|
|
|
709,213 |
|
|
|
603,524 |
|
Operating income |
|
|
78,785 |
|
|
|
50,058 |
|
|
|
206,756 |
|
|
|
136,736 |
|
Interest expense |
|
|
(182 |
) |
|
|
(287 |
) |
|
|
(895 |
) |
|
|
(1,390 |
) |
Interest income |
|
|
309 |
|
|
|
199 |
|
|
|
1,338 |
|
|
|
1,101 |
|
Other income (expense),
net |
|
|
(1,186 |
) |
|
|
1,471 |
|
|
|
(1,708 |
) |
|
|
9,466 |
|
Income before income taxes |
|
|
77,726 |
|
|
|
51,441 |
|
|
|
205,491 |
|
|
|
145,913 |
|
Income tax expense |
|
|
20,104 |
|
|
|
13,484 |
|
|
|
53,163 |
|
|
|
38,384 |
|
Net income |
|
|
57,622 |
|
|
|
37,957 |
|
|
|
152,328 |
|
|
|
107,529 |
|
Net income attributable to
noncontrolling interests |
|
|
(154 |
) |
|
|
(461 |
) |
|
|
(2,311 |
) |
|
|
(1,068 |
) |
Net income attributable to La-Z-Boy Incorporated |
|
$ |
57,468 |
|
|
$ |
37,496 |
|
|
$ |
150,017 |
|
|
$ |
106,461 |
|
|
|
|
|
|
|
|
|
|
Basic weighted average common
shares |
|
|
43,137 |
|
|
|
45,739 |
|
|
|
44,023 |
|
|
|
45,983 |
|
Basic net income attributable
to La-Z-Boy Incorporated per share |
|
$ |
1.33 |
|
|
$ |
0.82 |
|
|
$ |
3.41 |
|
|
$ |
2.31 |
|
|
|
|
|
|
|
|
|
|
Diluted weighted average
common shares |
|
|
43,256 |
|
|
|
46,316 |
|
|
|
44,294 |
|
|
|
46,367 |
|
Diluted net income
attributable to La-Z-Boy Incorporated per share |
|
$ |
1.33 |
|
|
$ |
0.81 |
|
|
$ |
3.39 |
|
|
$ |
2.30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LA-Z-BOY
INCORPORATEDCONSOLIDATED BALANCE
SHEET
(Unaudited, amounts in thousands, except par
value) |
|
4/30/2022 |
|
4/24/2021 |
Current assets |
|
|
|
|
Cash and equivalents |
|
$ |
245,589 |
|
|
$ |
391,213 |
|
Restricted cash |
|
|
3,267 |
|
|
|
3,490 |
|
Receivables, net of allowance of $3,406 at 4/30/2022 and $4,011 at
4/24/2021 |
|
|
183,747 |
|
|
|
139,341 |
|
Inventories, net |
|
|
303,191 |
|
|
|
226,137 |
|
Other current assets |
|
|
215,982 |
|
|
|
165,979 |
|
Total current assets |
|
|
951,776 |
|
|
|
926,160 |
|
Property, plant and equipment,
net |
|
|
253,144 |
|
|
|
219,194 |
|
Goodwill |
|
|
194,604 |
|
|
|
175,814 |
|
Other intangible assets,
net |
|
|
33,971 |
|
|
|
30,431 |
|
Deferred income taxes –
long-term |
|
|
10,632 |
|
|
|
11,915 |
|
Right of use lease assets |
|
|
405,755 |
|
|
|
343,800 |
|
Other long-term assets,
net |
|
|
82,207 |
|
|
|
79,008 |
|
Total assets |
|
$ |
1,932,089 |
|
|
$ |
1,786,322 |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
Accounts payable |
|
$ |
104,025 |
|
|
$ |
94,152 |
|
Lease liabilities, short-term |
|
|
75,271 |
|
|
|
67,614 |
|
Accrued expenses and other current liabilities |
|
|
496,393 |
|
|
|
449,904 |
|
Total current liabilities |
|
|
675,689 |
|
|
|
611,670 |
|
Lease liabilities,
long-term |
|
|
354,843 |
|
|
|
295,023 |
|
Other long-term
liabilities |
|
|
81,935 |
|
|
|
97,483 |
|
Shareholders' equity |
|
|
|
|
Preferred shares – 5,000 authorized; none issued |
|
|
— |
|
|
|
— |
|
Common shares, $1 par value – 150,000 authorized; 43,089
outstanding at 4/30/2022 and 45,361 outstanding at
4/24/2021 |
|
|
43,089 |
|
|
|
45,361 |
|
Capital in excess of par value |
|
|
342,252 |
|
|
|
330,648 |
|
Retained earnings |
|
|
431,181 |
|
|
|
399,010 |
|
Accumulated other comprehensive loss |
|
|
(5,797 |
) |
|
|
(1,521 |
) |
Total La-Z-Boy Incorporated shareholders' equity |
|
|
810,725 |
|
|
|
773,498 |
|
Noncontrolling interests |
|
|
8,897 |
|
|
|
8,648 |
|
Total equity |
|
|
819,622 |
|
|
|
782,146 |
|
Total liabilities and equity |
|
$ |
1,932,089 |
|
|
$ |
1,786,322 |
|
|
|
|
|
|
|
|
|
|
LA-Z-BOY
INCORPORATEDCONSOLIDATED STATEMENT OF CASH
FLOWS
|
|
Year Ended |
(Unaudited, amounts in thousands) |
|
4/30/2022 |
|
4/24/2021 |
Cash flows from operating activities |
|
|
|
|
Net income |
|
$ |
152,328 |
|
|
$ |
107,529 |
|
Adjustments to reconcile net income to cash provided by operating
activities |
|
|
|
|
(Gain)/loss on disposal of assets |
|
|
(13,657 |
) |
|
|
(37 |
) |
Gain on sale of investments |
|
|
(478 |
) |
|
|
(954 |
) |
Provision for doubtful accounts |
|
|
(617 |
) |
|
|
(3,169 |
) |
Depreciation and amortization |
|
|
39,771 |
|
|
|
33,021 |
|
Amortization of right-of-use lease assets |
|
|
72,942 |
|
|
|
65,571 |
|
Equity-based compensation expense |
|
|
11,858 |
|
|
|
12,671 |
|
Change in deferred taxes |
|
|
1,022 |
|
|
|
8,790 |
|
Change in receivables |
|
|
(41,829 |
) |
|
|
(38,288 |
) |
Change in inventories |
|
|
(72,022 |
) |
|
|
(40,727 |
) |
Change in other assets |
|
|
(16,232 |
) |
|
|
2,926 |
|
Change in payables |
|
|
6,326 |
|
|
|
37,068 |
|
Change in lease liabilities |
|
|
(73,805 |
) |
|
|
(65,881 |
) |
Change in other liabilities |
|
|
13,397 |
|
|
|
191,397 |
|
Net cash provided by operating activities |
|
|
79,004 |
|
|
|
309,917 |
|
|
|
|
|
|
Cash flows from investing
activities |
|
|
|
|
Proceeds from disposals of assets |
|
|
22,588 |
|
|
|
2,770 |
|
Capital expenditures |
|
|
(76,580 |
) |
|
|
(37,960 |
) |
Purchases of investments |
|
|
(34,152 |
) |
|
|
(39,584 |
) |
Proceeds from sales of investments |
|
|
36,096 |
|
|
|
36,071 |
|
Acquisitions |
|
|
(26,323 |
) |
|
|
(2,000 |
) |
Net cash used for investing activities |
|
|
(78,371 |
) |
|
|
(40,703 |
) |
|
|
|
|
|
Cash flows from financing
activities |
|
|
|
|
Payments on debt and finance lease liabilities |
|
|
(121 |
) |
|
|
(75,050 |
) |
Holdback payments for acquisition purchases |
|
|
(23,000 |
) |
|
|
(5,783 |
) |
Stock issued for stock and employee benefit plans, net of shares
withheld for taxes |
|
|
(1,818 |
) |
|
|
9,030 |
|
Repurchases of common stock |
|
|
(90,645 |
) |
|
|
(44,202 |
) |
Dividends paid to shareholders |
|
|
(27,717 |
) |
|
|
(16,542 |
) |
Dividends paid to minority interest joint venture partners (1) |
|
|
(1,260 |
) |
|
|
(8,507 |
) |
Net cash used for financing activities |
|
|
(144,561 |
) |
|
|
(141,054 |
) |
|
|
|
|
|
Effect of exchange rate
changes on cash and equivalents |
|
|
(1,919 |
) |
|
|
3,015 |
|
Change in cash, cash
equivalents and restricted cash |
|
|
(145,847 |
) |
|
|
131,175 |
|
Cash, cash equivalents and
restricted cash at beginning of period |
|
|
394,703 |
|
|
|
263,528 |
|
Cash, cash equivalents and
restricted cash at end of period |
|
$ |
248,856 |
|
|
$ |
394,703 |
|
|
|
|
|
|
Supplemental disclosure of
non-cash investing activities |
|
|
|
|
Capital expenditures included in accounts payable |
|
$ |
9,234 |
|
|
$ |
4,638 |
|
(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 |
|
Year Ended |
(Unaudited, amounts in thousands) |
|
4/30/2022 |
|
4/24/2021 |
|
4/30/2022 |
|
4/24/2021 |
Sales |
|
|
|
|
|
|
|
|
Wholesale segment: |
|
|
|
|
|
|
|
|
Sales to external customers |
|
$ |
397,629 |
|
|
$ |
286,119 |
|
|
$ |
1,371,602 |
|
|
$ |
1,006,377 |
|
Intersegment sales |
|
|
115,337 |
|
|
|
97,882 |
|
|
|
397,236 |
|
|
|
294,921 |
|
Wholesale segment sales |
|
|
512,966 |
|
|
|
384,001 |
|
|
|
1,768,838 |
|
|
|
1,301,298 |
|
|
|
|
|
|
|
|
|
|
Retail segment sales |
|
|
233,075 |
|
|
|
193,535 |
|
|
|
804,394 |
|
|
|
612,906 |
|
|
|
|
|
|
|
|
|
|
Corporate and Other: |
|
|
|
|
|
|
|
|
Sales to external customers |
|
|
53,862 |
|
|
|
39,816 |
|
|
|
180,815 |
|
|
|
114,961 |
|
Intersegment sales |
|
|
3,471 |
|
|
|
3,405 |
|
|
|
15,144 |
|
|
|
12,409 |
|
Corporate and Other sales |
|
|
57,333 |
|
|
|
43,221 |
|
|
|
195,959 |
|
|
|
127,370 |
|
|
|
|
|
|
|
|
|
|
Eliminations |
|
|
(118,808 |
) |
|
|
(101,287 |
) |
|
|
(412,380 |
) |
|
|
(307,330 |
) |
Consolidated sales |
|
$ |
684,566 |
|
|
$ |
519,470 |
|
|
$ |
2,356,811 |
|
|
$ |
1,734,244 |
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss) |
|
|
|
|
|
|
|
|
Wholesale segment |
|
$ |
44,915 |
|
|
$ |
39,003 |
|
|
$ |
134,013 |
|
|
$ |
134,312 |
|
Retail segment |
|
|
41,044 |
|
|
|
23,551 |
|
|
|
109,546 |
|
|
|
46,724 |
|
Corporate and Other |
|
|
(7,174 |
) |
|
|
(12,496 |
) |
|
|
(36,803 |
) |
|
|
(44,300 |
) |
Consolidated operating income |
|
$ |
78,785 |
|
|
$ |
50,058 |
|
|
$ |
206,756 |
|
|
$ |
136,736 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LA-Z-BOY
INCORPORATEDUNAUDITED QUARTERLY FINANCIAL
DATA
Fiscal 2022
Fiscal Quarter
Ended |
|
(13 weeks) |
|
(13 weeks) |
|
(13 weeks) |
|
(14 weeks) |
(Amounts in thousands, except per share data) |
|
7/24/2021 |
|
10/23/2021 |
|
1/22/2022 |
|
4/30/2022 |
Sales |
|
$ |
524,783 |
|
|
$ |
575,889 |
|
|
$ |
571,573 |
|
|
$ |
684,566 |
|
Cost of sales |
|
|
322,701 |
|
|
|
352,594 |
|
|
|
352,208 |
|
|
|
413,339 |
|
Gross profit |
|
|
202,082 |
|
|
|
223,295 |
|
|
|
219,365 |
|
|
|
271,227 |
|
Selling, general and
administrative expense |
|
|
167,711 |
|
|
|
169,182 |
|
|
|
179,878 |
|
|
|
192,442 |
|
Operating income |
|
|
34,371 |
|
|
|
54,113 |
|
|
|
39,487 |
|
|
|
78,785 |
|
Interest expense |
|
|
(311 |
) |
|
|
(242 |
) |
|
|
(160 |
) |
|
|
(182 |
) |
Interest income |
|
|
117 |
|
|
|
106 |
|
|
|
806 |
|
|
|
309 |
|
Other income (expense),
net |
|
|
(93 |
) |
|
|
1,031 |
|
|
|
(1,460 |
) |
|
|
(1,186 |
) |
Income before income taxes |
|
|
34,084 |
|
|
|
55,008 |
|
|
|
38,673 |
|
|
|
77,726 |
|
Income tax expense |
|
|
8,818 |
|
|
|
14,650 |
|
|
|
9,591 |
|
|
|
20,104 |
|
Net income |
|
|
25,266 |
|
|
|
40,358 |
|
|
|
29,082 |
|
|
|
57,622 |
|
Net income attributable to
noncontrolling interests |
|
|
(700 |
) |
|
|
(842 |
) |
|
|
(615 |
) |
|
|
(154 |
) |
Net income attributable to La-Z-Boy Incorporated |
|
$ |
24,566 |
|
|
$ |
39,516 |
|
|
$ |
28,467 |
|
|
$ |
57,468 |
|
Diluted weighted average
common shares |
|
|
45,404 |
|
|
|
44,423 |
|
|
|
43,968 |
|
|
|
43,256 |
|
Diluted net income
attributable to La-Z-Boy Incorporated per share |
|
$ |
0.54 |
|
|
$ |
0.89 |
|
|
$ |
0.65 |
|
|
$ |
1.33 |
|
Fiscal 2021
Fiscal Quarter
Ended |
|
(13 weeks) |
|
(13 weeks) |
|
(13 weeks) |
|
(13 weeks) |
(Amounts in thousands, except per share data) |
|
7/25/2020 |
|
10/24/2020 |
|
1/23/2021 |
|
4/24/2021 |
Sales |
|
$ |
285,458 |
|
|
$ |
459,120 |
|
|
$ |
470,196 |
|
|
$ |
519,470 |
|
Cost of sales |
|
|
169,095 |
|
|
|
258,565 |
|
|
|
268,944 |
|
|
|
297,380 |
|
Gross profit |
|
|
116,363 |
|
|
|
200,555 |
|
|
|
201,252 |
|
|
|
222,090 |
|
Selling, general and
administrative expense |
|
|
112,038 |
|
|
|
152,616 |
|
|
|
166,838 |
|
|
|
172,032 |
|
Operating income |
|
|
4,325 |
|
|
|
47,939 |
|
|
|
34,414 |
|
|
|
50,058 |
|
Interest expense |
|
|
(459 |
) |
|
|
(346 |
) |
|
|
(298 |
) |
|
|
(287 |
) |
Interest income |
|
|
494 |
|
|
|
123 |
|
|
|
285 |
|
|
|
199 |
|
Other income (expense),
net |
|
|
1,474 |
|
|
|
(11 |
) |
|
|
6,532 |
|
|
|
1,471 |
|
Income before income taxes |
|
|
5,834 |
|
|
|
47,705 |
|
|
|
40,933 |
|
|
|
51,441 |
|
Income tax expense |
|
|
1,155 |
|
|
|
12,401 |
|
|
|
11,344 |
|
|
|
13,484 |
|
Net income |
|
|
4,679 |
|
|
|
35,304 |
|
|
|
29,589 |
|
|
|
37,957 |
|
Net (income) loss attributable
to noncontrolling interests |
|
|
119 |
|
|
|
(369 |
) |
|
|
(357 |
) |
|
|
(461 |
) |
Net income attributable to La-Z-Boy Incorporated |
|
$ |
4,798 |
|
|
$ |
34,935 |
|
|
$ |
29,232 |
|
|
$ |
37,496 |
|
Diluted weighted average
common shares |
|
|
45,965 |
|
|
|
46,323 |
|
|
|
46,818 |
|
|
|
46,316 |
|
Diluted net income
attributable to La-Z-Boy Incorporated per share |
|
$ |
0.10 |
|
|
$ |
0.75 |
|
|
$ |
0.62 |
|
|
$ |
0.81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LA-Z-BOY
INCORPORATEDRECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL MEASURES
|
|
Quarter Ended |
|
Year Ended |
(Amounts in thousands, except per share data) |
|
4/30/2022 |
|
4/24/2021 |
|
4/30/2022 |
|
4/24/2021 |
GAAP gross profit |
|
$ |
271,227 |
|
|
$ |
222,090 |
|
|
$ |
915,969 |
|
|
$ |
740,260 |
|
Add back: Purchase accounting charges - incremental expense upon
the sale of inventory acquired at fair value |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
429 |
|
Add back: Business realignment charges |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,303 |
|
Less: Supply chain optimization initiative gain |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(50 |
) |
Non-GAAP gross profit |
|
$ |
271,227 |
|
|
$ |
222,090 |
|
|
$ |
915,969 |
|
|
$ |
741,942 |
|
|
|
|
|
|
|
|
|
|
GAAP SG&A |
|
$ |
192,442 |
|
|
$ |
172,032 |
|
|
$ |
709,213 |
|
|
$ |
603,524 |
|
Less: Purchase accounting (charges)/gain - adjustment to fair value
of contingent consideration and amortization of intangible assets
and retention agreements |
|
|
3,528 |
|
|
|
(1,859 |
) |
|
|
2,251 |
|
|
|
(15,595 |
) |
Add back: Business realignment gain/(charges) |
|
|
— |
|
|
|
— |
|
|
|
3,277 |
|
|
|
(2,580 |
) |
Add back: Sale leaseback gain |
|
|
10,655 |
|
|
|
— |
|
|
|
10,655 |
|
|
|
— |
|
Non-GAAP SG&A |
|
$ |
206,625 |
|
|
$ |
170,173 |
|
|
$ |
725,396 |
|
|
$ |
585,349 |
|
|
|
|
|
|
|
|
|
|
GAAP operating income |
|
$ |
78,785 |
|
|
$ |
50,058 |
|
|
$ |
206,756 |
|
|
$ |
136,736 |
|
Add back: Purchase accounting charges/(gain) |
|
|
(3,528 |
) |
|
|
1,859 |
|
|
|
(2,251 |
) |
|
|
16,024 |
|
Less: Business realignment (gain)/charges |
|
|
— |
|
|
|
— |
|
|
|
(3,277 |
) |
|
|
3,883 |
|
Less: Sale leaseback gain |
|
|
(10,655 |
) |
|
|
— |
|
|
|
(10,655 |
) |
|
|
— |
|
Less: Supply chain optimization initiative gain |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(50 |
) |
Non-GAAP operating income |
|
$ |
64,602 |
|
|
$ |
51,917 |
|
|
$ |
190,573 |
|
|
$ |
156,593 |
|
|
|
|
|
|
|
|
|
|
GAAP income before income
taxes |
|
$ |
77,726 |
|
|
$ |
51,441 |
|
|
$ |
205,491 |
|
|
$ |
145,913 |
|
Add back: Purchase accounting charges/(gain) recorded as part of
gross profit, SG&A, and interest expense |
|
|
(3,437 |
) |
|
|
2,038 |
|
|
|
(1,737 |
) |
|
|
16,694 |
|
Less: Business realignment (gain)/charges |
|
|
— |
|
|
|
— |
|
|
|
(3,277 |
) |
|
|
3,883 |
|
Less: Sale leaseback gain |
|
|
(10,655 |
) |
|
|
— |
|
|
|
(10,655 |
) |
|
|
— |
|
Less: Supply chain optimization initiative gain |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(50 |
) |
Less: CARES Act benefit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5,219 |
) |
Non-GAAP income before income
taxes |
|
$ |
63,634 |
|
|
$ |
53,479 |
|
|
$ |
189,822 |
|
|
$ |
161,221 |
|
|
|
|
|
|
|
|
|
|
GAAP net income attributable
to La-Z-Boy Incorporated |
|
$ |
57,468 |
|
|
$ |
37,496 |
|
|
$ |
150,017 |
|
|
$ |
106,461 |
|
Add back: Purchase accounting charges/(gain) recorded as part of
gross profit, SG&A, and interest expense |
|
|
(3,437 |
) |
|
|
2,038 |
|
|
|
(1,737 |
) |
|
|
16,694 |
|
Less: Tax effect of purchase accounting |
|
|
935 |
|
|
|
837 |
|
|
|
588 |
|
|
|
(642 |
) |
Less: Business realignment (gain)/charges |
|
|
— |
|
|
|
— |
|
|
|
(3,277 |
) |
|
|
3,883 |
|
Add back: Tax effect of business realignment gain/(charges) |
|
|
— |
|
|
|
— |
|
|
|
862 |
|
|
|
(938 |
) |
Less: Sale leaseback gain |
|
|
(10,655 |
) |
|
|
— |
|
|
|
(10,655 |
) |
|
|
— |
|
Add back: Tax effect of sale leaseback gain |
|
|
2,898 |
|
|
|
— |
|
|
|
2,802 |
|
|
|
— |
|
Less: Supply chain optimization initiative gain |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(50 |
) |
Add back: Tax effect of supply chain optimization initiative
gain |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
13 |
|
Less: CARES Act benefit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5,219 |
) |
Add back: Tax effect of CARES Act benefit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,261 |
|
Non-GAAP net income
attributable to La-Z-Boy Incorporated |
|
$ |
47,209 |
|
|
$ |
40,371 |
|
|
$ |
138,600 |
|
|
$ |
121,463 |
|
|
|
|
|
|
|
|
|
|
GAAP net income attributable
to La-Z-Boy Incorporated per diluted share |
|
$ |
1.33 |
|
|
$ |
0.81 |
|
|
$ |
3.39 |
|
|
$ |
2.30 |
|
Add back: Purchase accounting charges/(gain), net of tax, per
share |
|
|
(0.08 |
) |
|
|
0.06 |
|
|
|
(0.04 |
) |
|
|
0.33 |
|
Less: Business realignment (gain)/charges, net of tax, per
share |
|
|
— |
|
|
|
— |
|
|
|
(0.06 |
) |
|
|
0.07 |
|
Less: Sale leaseback gain, net of tax, per share |
|
|
(0.18 |
) |
|
|
— |
|
|
|
(0.18 |
) |
|
|
— |
|
Less: CARES Act benefit, net of tax, per share |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.08 |
) |
Non-GAAP net income
attributable to La-Z-Boy Incorporated per diluted share |
|
$ |
1.07 |
|
|
$ |
0.87 |
|
|
$ |
3.11 |
|
|
$ |
2.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LA-Z-BOY
INCORPORATEDRECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL MEASURESSEGMENT INFORMATION
|
|
Quarter Ended |
|
Year Ended |
(Amounts in thousands) |
|
4/30/2022 |
|
% of sales |
|
4/24/2021 |
|
% of sales |
|
4/30/2022 |
|
% of sales |
|
4/24/2021 |
|
% of sales |
GAAP operating income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale segment |
|
$ |
44,915 |
|
|
8.8% |
|
$ |
39,003 |
|
|
10.2% |
|
$ |
134,013 |
|
|
7.6% |
|
$ |
134,312 |
|
|
10.3% |
Retail segment |
|
|
41,044 |
|
|
17.6% |
|
|
23,551 |
|
|
12.2% |
|
|
109,546 |
|
|
13.6% |
|
|
46,724 |
|
|
7.6% |
Corporate and Other |
|
|
(7,174 |
) |
|
N/M |
|
|
(12,496 |
) |
|
N/M |
|
|
(36,803 |
) |
|
N/M |
|
|
(44,300 |
) |
|
N/M |
Consolidated GAAP operating income |
|
$ |
78,785 |
|
|
11.5% |
|
$ |
50,058 |
|
|
9.6% |
|
$ |
206,756 |
|
|
8.8% |
|
$ |
136,736 |
|
|
7.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP items affecting
operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale segment |
|
$ |
57 |
|
|
|
|
$ |
60 |
|
|
|
|
$ |
(3,041 |
) |
|
|
|
$ |
3,346 |
|
|
|
Retail segment |
|
|
(10,655 |
) |
|
|
|
|
— |
|
|
|
|
|
(10,655 |
) |
|
|
|
|
612 |
|
|
|
Corporate and Other |
|
|
(3,585 |
) |
|
|
|
|
1,799 |
|
|
|
|
|
(2,487 |
) |
|
|
|
|
15,899 |
|
|
|
Consolidated Non-GAAP items affecting operating income |
|
$ |
(14,183 |
) |
|
|
|
$ |
1,859 |
|
|
|
|
$ |
(16,183 |
) |
|
|
|
$ |
19,857 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating income
(loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale segment |
|
$ |
44,972 |
|
|
8.8% |
|
$ |
39,063 |
|
|
10.2% |
|
$ |
130,972 |
|
|
7.4% |
|
$ |
137,658 |
|
|
10.6% |
Retail segment |
|
|
30,389 |
|
|
13.0% |
|
|
23,551 |
|
|
12.2% |
|
|
98,891 |
|
|
12.3% |
|
|
47,336 |
|
|
7.7% |
Corporate and Other |
|
|
(10,759 |
) |
|
N/M |
|
|
(10,697 |
) |
|
N/M |
|
|
(39,290 |
) |
|
N/M |
|
|
(28,401 |
) |
|
N/M |
Consolidated Non-GAAP operating income |
|
$ |
64,602 |
|
|
9.4% |
|
$ |
51,917 |
|
|
10.0% |
|
$ |
190,573 |
|
|
8.1% |
|
$ |
156,593 |
|
|
9.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N/M - Not Meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
La Z Boy (NYSE:LZB)
Historical Stock Chart
From Aug 2024 to Sep 2024
La Z Boy (NYSE:LZB)
Historical Stock Chart
From Sep 2023 to Sep 2024