La-Z-Boy Incorporated (NYSE: LZB), a global leader in residential
furniture, today reported solid fourth quarter and full year
results for the period ending April 29, 2023.
Fourth Quarter 2023 Financial
Highlights:
- Consolidated sales of $561 million
- -12% adjusting for the 53rd week in
the fourth quarter of fiscal 2022, versus last year, which
benefited from a strong backlog
- Retail segment sales increased 4%
to $243 million
- +12% adjusting for the 53rd week in
the fourth quarter of fiscal 2022
- Written same-store sales were
essentially flat
- GAAP operating income decreased by
31%
- Non-GAAP operating income decreased
by 15%
- GAAP operating margin decreased 190
basis points to 9.6%
- Non-GAAP operating margin increased
40 basis points to 9.8%
- GAAP diluted EPS of $0.79, with
Non-GAAP diluted EPS of $0.99, a 7% decrease
- Cash generated from operating
activities was $78 million
Fiscal 2023 Financial
Highlights:
- Consolidated sales of $2.3 billion
- +2% adjusting for the 53rd week in
fiscal 2022
- Retail segment sales increased 22%
to $982 million
- Record sales, operating profit, and
operating margin
- GAAP operating income increased by
2%
- Non-GAAP operating income increased
by 17%
- GAAP operating margin increased 20
basis points to 9.0%
- Non-GAAP operating margin increased
140 basis points to 9.5%
- Record diluted EPS
- GAAP diluted EPS increased by 3% to
$3.48
- Non-GAAP diluted EPS increased by
24% to $3.86
- Cash generated from operating
activities more than doubled to $205 million
Melinda D. Whittington, President and Chief
Executive Officer of La-Z-Boy Incorporated, said, "I would like to
congratulate and thank our entire organization for delivering
another strong year, with record Retail segment sales and operating
profit, and record consolidated diluted EPS. We achieved these
results through disciplined supply chain investments and solid
execution in our company owned retail stores, reflecting the
strength of our vertically integrated Retail and Wholesale model.
We are pleased with our strong finish in the fourth quarter, where
we were able to maintain roughly flat written same-store sales
despite the declining macro environment."
Whittington added, "Our results were enabled by
our strong portfolio of iconic brands, collaboration and leadership
of our talented employees, and execution of our value proposition -
comfortable custom furniture with quick delivery - as our backlog
has returned to more normalized historical levels. Our playbook is
working, with our Retail penetration increasing through new store
growth and independent Furniture Galleries® store acquisitions. We
are confident in our ability to advance our business in an
uncertain macro environment with our strong debt free balance sheet
allowing us to invest in our Century Vision strategy to drive
future growth. The foundation is set through Century Vision to
expand brand reach and we continue to target sales growth exceeding
the industry growth rate and double-digit operating margins over
the long term. We look forward to executing this business strategy
to create long-term shareholder value."
Key Results:
(Unaudited, amounts in thousands, except per share
data) |
|
Quarter Ended |
|
|
|
|
|
Year Ended |
|
|
|
4/29/2023 |
|
4/30/2022 |
|
|
Change |
|
|
4/29/2023 |
|
4/30/2022 |
|
Change |
Sales |
|
$ |
561,287 |
|
|
$ |
684,566 |
|
|
|
(18 |
)% |
|
$ |
2,349,433 |
|
|
$ |
2,356,811 |
|
|
|
(0.3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income |
|
|
54,073 |
|
|
|
78,785 |
|
|
|
(31 |
)% |
|
|
211,439 |
|
|
|
206,756 |
|
|
|
2 |
% |
Non-GAAP operating income |
|
|
55,056 |
|
|
|
64,602 |
|
|
|
(15 |
)% |
|
|
223,203 |
|
|
|
190,573 |
|
|
|
17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating margin |
|
|
9.6 |
% |
|
|
11.5 |
% |
|
|
-190 bps |
|
|
9.0 |
% |
|
|
8.8 |
% |
|
20 bps |
Non-GAAP
operating margin |
|
|
9.8 |
% |
|
|
9.4 |
% |
|
|
40 bps |
|
|
9.5 |
% |
|
|
8.1 |
% |
|
140 bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income attributable
to La-Z-Boy Incorporated |
|
|
34,373 |
|
|
|
57,468 |
|
|
|
(40 |
)% |
|
|
150,664 |
|
|
|
150,017 |
|
|
|
0.4 |
% |
Non-GAAP net income
attributable to La-Z-Boy Incorporated |
|
|
43,091 |
|
|
|
47,209 |
|
|
|
(9 |
)% |
|
|
167,080 |
|
|
|
138,600 |
|
|
|
21 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average
common shares |
|
|
43,427 |
|
|
|
43,256 |
|
|
|
|
|
|
|
43,240 |
|
|
|
44,294 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted earnings per
share |
|
$ |
0.79 |
|
|
$ |
1.33 |
|
|
|
(41 |
)% |
|
$ |
3.48 |
|
|
$ |
3.39 |
|
|
|
3 |
% |
Non-GAAP diluted earnings per
share |
|
$ |
0.99 |
|
|
$ |
1.07 |
|
|
|
(7 |
)% |
|
$ |
3.86 |
|
|
$ |
3.11 |
|
|
|
24 |
% |
Liquidity Measures:
|
|
Year Ended |
|
|
|
Year Ended |
(Unaudited, amounts in thousands) |
|
4/29/2023 |
|
4/30/2022 |
|
(Unaudited, amounts in thousands) |
|
4/29/2023 |
|
4/30/2022 |
Free Cash Flow |
|
|
|
|
|
Cash Returns to Shareholders |
|
|
|
|
Operating cash flow |
|
$ |
205,167 |
|
|
$ |
79,004 |
|
|
Share repurchases |
|
$ |
5,004 |
|
$ |
90,645 |
Capital expenditures |
|
|
(68,812 |
) |
|
|
(76,580 |
) |
|
Dividends |
|
|
29,869 |
|
|
27,717 |
Free cash flow |
|
$ |
136,355 |
|
|
$ |
2,424 |
|
|
Cash returns to shareholders |
|
$ |
34,873 |
|
$ |
118,362 |
(Unaudited, amounts in thousands) |
|
4/29/2023 |
|
4/30/2022 |
Cash and cash equivalents |
|
$ |
343,374 |
|
|
$ |
245,589 |
|
Restricted cash |
|
|
3,304 |
|
|
|
3,267 |
|
Total cash, cash equivalents and restricted cash |
|
$ |
346,678 |
|
|
$ |
248,856 |
|
|
FY23 Q4 Results vs. FY22
Q4:
Consolidated Results:
- Consolidated sales in the fourth
quarter of fiscal 2023 decreased 18% (-12% adjusting for the 53rd
week in fiscal 2022) to $561 million, with the realization of
pricing and surcharge actions and the positive effects of a
favorable product and channel mix more than offset by lower
delivered unit volume versus last year's backlog driven sales
- Consolidated GAAP operating margin
was 9.6% versus 11.5%
- Consolidated non-GAAP(1) operating
margin was 9.8% versus 9.4%
- Improved operating margin was
driven primarily by strong Retail performance
- GAAP diluted EPS decreased 41% to
$0.79 from $1.33; non-GAAP(1) diluted EPS decreased 7% to $0.99
from $1.07
Retail Segment:
- Sales:
- Delivered sales increased 4% (+12%
adjusted for the 53rd week in fiscal 2022) to $243 million;
delivered same-store sales were relatively flat
- Total written sales for the Retail
segment (company owned La-Z-Boy Furniture Galleries® stores)
increased 4%
- Written same-store sales for the
Retail segment were essentially flat as strong store execution
mitigated lower consumer traffic
- Operating Performance:
- Non-GAAP(1) operating margin and
operating income was 15.5% and $38 million, respectively, up 250
basis points and 24%, respectively, primarily driven by higher
delivered sales relative to selling expenses and fixed costs
Wholesale Segment:
- Sales:
- Decreased 23% (-17% adjusted for
the 53rd week in fiscal 2022) to $395 million driven primarily by a
decline in delivered volume as the backlog returned to pre-pandemic
levels, partially offset by pricing and favorable channel and
product mix
- Operating Margin:
- Non-GAAP(1) operating margin decreased to 8.7%, down 10 basis
points; pricing and surcharge actions along with declining raw
material and freight costs were essentially offset by fixed cost
deleveraging on lower unit volume
Corporate & Other:
- Joybird delivered sales decreased
31% (-25% adjusted for the 53rd week in fiscal 2022) to $37
million, and written sales declined 24%, reflecting slowing
e-commerce trends and industry demand challenges
Balance Sheet and Cash Flow, Fiscal 2023 Full
Year
- Ended the fiscal year with $347
million in cash(2) and no external debt
- Generated $205 million in cash from
operating activities, including $78 million in the fourth quarter,
versus $79 million in full fiscal year 2022 and $34 million in last
year's fourth quarter
- Invested $69 million in capital
expenditures, primarily related to La-Z-Boy Furniture Galleries®
(new stores and remodels), Joybird store projects, and upgrades at
our manufacturing and distribution facilities
- Returned $35 million to
shareholders, including $30 million in dividends and $5 million in
share repurchases
Outlook
Bob Lucian, Chief Financial Officer of La-Z-Boy
Incorporated, said, "Excluding the impact of delivering backlog
sales (approximately $300 million), normalized La-Z-Boy
consumer demand in fiscal 2023 was 17% higher that it was in
pre-pandemic fiscal 2019. In fiscal 2024, we expect to grow ahead
of the industry from this normalized base, with the back half of
our fiscal year stronger than the front half, in line with
pre-pandemic seasonality trends. For our first quarter of fiscal
2024, which is generally the lowest sales quarter in the fiscal
year, we expect sales to be in the range of $470 to $490 million
and operating margin to be in the range of 6.5% to 7.5%."
Conference Call
La-Z-Boy will hold a conference call with the investment
community on Wednesday, June 21, 2023, at 8:30 a.m. ET. The
toll-free dial-in number is (888) 506-0062; international callers
may use (973) 528-0011. Enter Participant Access Code 392627.
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: 48491. The webcast replay will be available for one
year.
Investor Relations Contact
Mark Becks, CFA, (734) 457-9538mbecks@la-z-boy.com
About La-Z-Boy
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 La-Z-Boy,
England, American Drew®, Hammary®, Kincaid® and the company's
international wholesale and manufacturing businesses. The
company-owned Retail segment includes 171 of the 349 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 349 stand-alone La-Z-Boy Furniture Galleries® stores
and 522 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
https://www.la-z-boy.com/.
Notes(1)Non-GAAP amounts
for the fourth quarter of
fiscal 2023 exclude:
- a $0.7 million pre-tax, or $0.01
per diluted share charge related to the closure of the Torreón, MX
facility, primarily reflecting asset relocation costs
- purchase accounting charges related
to acquisitions completed in prior periods totaling $0.3 million
pre-tax, or $0.01 per diluted share, with $0.3 million included in
operating income and a de minimis amount included in interest
expense
- a pre-tax charge of $10.6 million,
or $0.18 per diluted share related to an impairment of one
investment
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 full
fiscal 2023 year
exclude:
- a $10.8 million pre-tax, or $0.19
per diluted share charge related to the closure of the Torreón, MX
facility, primarily reflecting the impairment of various
assets
- purchase accounting charges related
to acquisitions completed in prior periods totaling $0.6 million
pre-tax, or less than $0.01 per diluted share, with $0.3 million
included in operating income and $0.3 million included in interest
expense
- a pre-tax charge of $10.6 million,
or $0.18 per diluted share related to an impairment of one
investment
- a $0.6 million pre-tax, or $0.01
per diluted share, charge related to the company's business
realignment, announced in June 2020
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
Please refer to the accompanying “Reconciliation
of GAAP to Non-GAAP Financial Measures” for detailed information on
calculating the Non-GAAP financial 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.
(3)This reference to Non-GAAP operating
margin for a future period is a Non-GAAP financial
measure. We have not provided a reconciliation of Non-GAAP
operating margin for future periods in this press release because
such reconciliation cannot be provided without unreasonable
efforts.
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, and
our business and industry.
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 2023 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/.
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 and Non-GAAP net income
attributable to La-Z-Boy Incorporated), which may exclude, as
applicable, business realignment charges, Mexico optimization
charges, investment impairment charges, purchase accounting charges
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 Mexico optimization charges include
asset impairment costs, severance costs, and employee relocation
costs resulting from the closure of our Torreón manufacturing
facility. 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. Sale-leaseback gains are the
result of the sale of the buildings and related fixed assets of
three Retail stores. 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 Mexico optimization 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 also excludes the impacts from the
impairment charge for one investment 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.
LA-Z-BOY
INCORPORATEDCONSOLIDATED STATEMENT OF
INCOME
|
|
Quarter Ended |
|
Year Ended |
(Unaudited, amounts in thousands, except per share
data) |
|
4/29/2023 |
|
4/30/2022 |
|
4/29/2023 |
|
4/30/2022 |
Sales |
|
$ |
561,287 |
|
|
$ |
684,566 |
|
|
$ |
2,349,433 |
|
|
$ |
2,356,811 |
|
Cost of sales |
|
|
301,211 |
|
|
|
413,339 |
|
|
|
1,340,734 |
|
|
|
1,440,842 |
|
Gross profit |
|
|
260,076 |
|
|
|
271,227 |
|
|
|
1,008,699 |
|
|
|
915,969 |
|
Selling, general and administrative expense |
|
|
206,003 |
|
|
|
192,442 |
|
|
|
797,260 |
|
|
|
709,213 |
|
Operating income |
|
|
54,073 |
|
|
|
78,785 |
|
|
|
211,439 |
|
|
|
206,756 |
|
Interest expense |
|
|
(122 |
) |
|
|
(182 |
) |
|
|
(536 |
) |
|
|
(895 |
) |
Interest income |
|
|
3,046 |
|
|
|
309 |
|
|
|
6,670 |
|
|
|
1,338 |
|
Other income (expense),
net |
|
|
(10,950 |
) |
|
|
(1,186 |
) |
|
|
(11,784 |
) |
|
|
(1,708 |
) |
Income before income taxes |
|
|
46,047 |
|
|
|
77,726 |
|
|
|
205,789 |
|
|
|
205,491 |
|
Income tax expense |
|
|
11,402 |
|
|
|
20,104 |
|
|
|
53,848 |
|
|
|
53,163 |
|
Net income |
|
|
34,645 |
|
|
|
57,622 |
|
|
|
151,941 |
|
|
|
152,328 |
|
Net (income) loss attributable
to noncontrolling interests |
|
|
(272 |
) |
|
|
(154 |
) |
|
|
(1,277 |
) |
|
|
(2,311 |
) |
Net income attributable to La-Z-Boy Incorporated |
|
$ |
34,373 |
|
|
$ |
57,468 |
|
|
$ |
150,664 |
|
|
$ |
150,017 |
|
|
|
|
|
|
|
|
|
|
Basic weighted average common
shares |
|
|
43,261 |
|
|
|
43,137 |
|
|
|
43,148 |
|
|
|
44,023 |
|
Basic net income attributable
to La-Z-Boy Incorporated per share |
|
$ |
0.79 |
|
|
$ |
1.33 |
|
|
$ |
3.49 |
|
|
$ |
3.41 |
|
|
|
|
|
|
|
|
|
|
Diluted weighted average
common shares |
|
|
43,427 |
|
|
|
43,256 |
|
|
|
43,240 |
|
|
|
44,294 |
|
Diluted net income
attributable to La-Z-Boy Incorporated per share |
|
$ |
0.79 |
|
|
$ |
1.33 |
|
|
$ |
3.48 |
|
|
$ |
3.39 |
|
LA-Z-BOY
INCORPORATEDCONSOLIDATED BALANCE
SHEET
(Unaudited, amounts in thousands, except par
value) |
|
4/29/2023 |
|
4/30/2022 |
Current assets |
|
|
|
|
Cash and equivalents |
|
$ |
343,374 |
|
|
$ |
245,589 |
|
Restricted cash |
|
|
3,304 |
|
|
|
3,267 |
|
Receivables, net of allowance of $4,776 at 4/29/2023 and $3,406 at
4/30/2022 |
|
|
125,536 |
|
|
|
183,747 |
|
Inventories, net |
|
|
276,257 |
|
|
|
303,191 |
|
Other current assets |
|
|
106,129 |
|
|
|
215,982 |
|
Total current assets |
|
|
854,600 |
|
|
|
951,776 |
|
Property, plant and equipment,
net |
|
|
278,578 |
|
|
|
253,144 |
|
Goodwill |
|
|
205,008 |
|
|
|
194,604 |
|
Other intangible assets,
net |
|
|
39,375 |
|
|
|
33,971 |
|
Deferred income taxes –
long-term |
|
|
8,918 |
|
|
|
10,632 |
|
Right of use lease assets |
|
|
416,269 |
|
|
|
405,755 |
|
Other long-term assets,
net |
|
|
63,515 |
|
|
|
82,207 |
|
Total assets |
|
$ |
1,866,263 |
|
|
$ |
1,932,089 |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
Accounts payable |
|
$ |
107,460 |
|
|
$ |
104,025 |
|
Lease liabilities, short-term |
|
|
77,751 |
|
|
|
75,271 |
|
Accrued expenses and other current liabilities |
|
|
290,650 |
|
|
|
496,393 |
|
Total current liabilities |
|
|
475,861 |
|
|
|
675,689 |
|
Lease liabilities,
long-term |
|
|
368,163 |
|
|
|
354,843 |
|
Other long-term
liabilities |
|
|
70,142 |
|
|
|
81,935 |
|
Shareholders' equity |
|
|
|
|
Preferred shares – 5,000 authorized; none issued |
|
|
— |
|
|
|
— |
|
Common shares, $1 par value – 150,000 authorized; 43,318
outstanding at 4/29/2023 and 43,089 outstanding at
4/30/2022 |
|
|
43,318 |
|
|
|
43,089 |
|
Capital in excess of par value |
|
|
358,891 |
|
|
|
342,252 |
|
Retained earnings |
|
|
545,155 |
|
|
|
431,181 |
|
Accumulated other comprehensive loss |
|
|
(5,528 |
) |
|
|
(5,797 |
) |
Total La-Z-Boy Incorporated shareholders' equity |
|
|
941,836 |
|
|
|
810,725 |
|
Noncontrolling interests |
|
|
10,261 |
|
|
|
8,897 |
|
Total equity |
|
|
952,097 |
|
|
|
819,622 |
|
Total liabilities and equity |
|
$ |
1,866,263 |
|
|
$ |
1,932,089 |
|
|
|
|
|
|
|
|
|
|
LA-Z-BOY
INCORPORATEDCONSOLIDATED STATEMENT OF CASH
FLOWS
|
|
Year Ended |
(Unaudited, amounts in thousands) |
|
4/29/2023 |
|
4/30/2022 |
Cash flows from operating activities |
|
|
|
|
Net income |
|
$ |
151,941 |
|
|
$ |
152,328 |
|
Adjustments to reconcile net income to cash provided by operating
activities |
|
|
|
|
(Gain)/loss on disposal and impairment of assets |
|
|
6,365 |
|
|
|
(13,657 |
) |
(Gain)/loss on sale of investments |
|
|
148 |
|
|
|
(478 |
) |
Provision for doubtful accounts |
|
|
1,546 |
|
|
|
(617 |
) |
Depreciation and amortization |
|
|
40,193 |
|
|
|
39,771 |
|
Amortization of right-of-use lease assets |
|
|
76,511 |
|
|
|
72,942 |
|
Lease impairment |
|
|
1,347 |
|
|
|
— |
|
Equity-based compensation expense |
|
|
12,458 |
|
|
|
11,858 |
|
Change in deferred taxes |
|
|
3,895 |
|
|
|
1,022 |
|
Change in receivables |
|
|
53,675 |
|
|
|
(41,829 |
) |
Change in inventories |
|
|
32,311 |
|
|
|
(72,022 |
) |
Change in other assets |
|
|
24,377 |
|
|
|
(16,232 |
) |
Change in payables |
|
|
4,586 |
|
|
|
6,326 |
|
Change in lease liabilities |
|
|
(77,811 |
) |
|
|
(73,805 |
) |
Change in other liabilities |
|
|
(126,375 |
) |
|
|
13,397 |
|
Net cash provided by operating activities |
|
|
205,167 |
|
|
|
79,004 |
|
|
|
|
|
|
Cash flows from investing
activities |
|
|
|
|
Proceeds from disposals of assets |
|
|
136 |
|
|
|
22,588 |
|
Capital expenditures |
|
|
(68,812 |
) |
|
|
(76,580 |
) |
Purchases of investments |
|
|
(9,092 |
) |
|
|
(34,152 |
) |
Proceeds from sales of investments |
|
|
24,483 |
|
|
|
36,096 |
|
Acquisitions |
|
|
(16,835 |
) |
|
|
(26,323 |
) |
Net cash used for investing activities |
|
|
(70,120 |
) |
|
|
(78,371 |
) |
|
|
|
|
|
Cash flows from financing
activities |
|
|
|
|
Payments on debt and finance lease liabilities |
|
|
(123 |
) |
|
|
(121 |
) |
Holdback payments for acquisitions |
|
|
(5,000 |
) |
|
|
(23,000 |
) |
Stock issued for stock and employee benefit plans, net of shares
withheld for taxes |
|
|
2,857 |
|
|
|
(1,818 |
) |
Repurchases of common stock |
|
|
(5,004 |
) |
|
|
(90,645 |
) |
Dividends paid to shareholders |
|
|
(29,869 |
) |
|
|
(27,717 |
) |
Dividends paid to minority interest joint venture partners (1) |
|
|
— |
|
|
|
(1,260 |
) |
Net cash used for financing activities |
|
|
(37,139 |
) |
|
|
(144,561 |
) |
|
|
|
|
|
Effect of exchange rate
changes on cash and equivalents |
|
|
(86 |
) |
|
|
(1,919 |
) |
Change in cash, cash
equivalents and restricted cash |
|
|
97,822 |
|
|
|
(145,847 |
) |
Cash, cash equivalents and
restricted cash at beginning of period |
|
|
248,856 |
|
|
|
394,703 |
|
Cash, cash equivalents and
restricted cash at end of period |
|
$ |
346,678 |
|
|
$ |
248,856 |
|
|
|
|
|
|
Supplemental disclosure of
non-cash investing activities |
|
|
|
|
Capital expenditures included in payables |
|
$ |
8,208 |
|
|
$ |
9,234 |
|
(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) |
|
4/29/2023 |
|
4/30/2022 |
|
4/29/2023 |
|
4/30/2022 |
Sales |
|
|
|
|
|
|
|
|
Wholesale segment: |
|
|
|
|
|
|
|
|
Sales to external customers |
|
$ |
280,918 |
|
|
$ |
397,629 |
|
|
$ |
1,215,429 |
|
|
$ |
1,371,602 |
|
Intersegment sales |
|
|
113,678 |
|
|
|
115,337 |
|
|
|
474,819 |
|
|
|
397,236 |
|
Wholesale segment sales |
|
|
394,596 |
|
|
|
512,966 |
|
|
|
1,690,248 |
|
|
|
1,768,838 |
|
|
|
|
|
|
|
|
|
|
Retail segment sales |
|
|
242,713 |
|
|
|
233,075 |
|
|
|
982,043 |
|
|
|
804,394 |
|
|
|
|
|
|
|
|
|
|
Corporate and Other: |
|
|
|
|
|
|
|
|
Sales to external customers |
|
|
37,656 |
|
|
|
53,862 |
|
|
|
151,961 |
|
|
|
180,815 |
|
Intersegment sales |
|
|
2,657 |
|
|
|
3,471 |
|
|
|
14,229 |
|
|
|
15,144 |
|
Corporate and Other sales |
|
|
40,313 |
|
|
|
57,333 |
|
|
|
166,190 |
|
|
|
195,959 |
|
|
|
|
|
|
|
|
|
|
Eliminations |
|
|
(116,335 |
) |
|
|
(118,808 |
) |
|
|
(489,048 |
) |
|
|
(412,380 |
) |
Consolidated sales |
|
$ |
561,287 |
|
|
$ |
684,566 |
|
|
$ |
2,349,433 |
|
|
$ |
2,356,811 |
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss) |
|
|
|
|
|
|
|
|
Wholesale segment |
|
$ |
33,657 |
|
|
$ |
44,915 |
|
|
$ |
115,215 |
|
|
$ |
134,013 |
|
Retail segment |
|
|
37,716 |
|
|
|
41,044 |
|
|
|
161,571 |
|
|
|
109,546 |
|
Corporate and Other |
|
|
(17,300 |
) |
|
|
(7,174 |
) |
|
|
(65,347 |
) |
|
|
(36,803 |
) |
Consolidated operating income |
|
$ |
54,073 |
|
|
$ |
78,785 |
|
|
$ |
211,439 |
|
|
$ |
206,756 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LA-Z-BOY
INCORPORATEDUNAUDITED QUARTERLY FINANCIAL
DATA
Fiscal 2023
Fiscal Quarter
Ended |
|
(13 weeks) |
|
(13 weeks) |
|
(13 weeks) |
|
(13 weeks) |
(Amounts in thousands, except per share data) |
|
7/30/2022 |
|
10/29/2022 |
|
1/28/2023 |
|
4/29/2023 |
Sales |
|
$ |
604,091 |
|
|
$ |
611,332 |
|
|
$ |
572,723 |
|
|
$ |
561,287 |
|
Cost of sales |
|
|
362,631 |
|
|
|
350,596 |
|
|
|
326,296 |
|
|
|
301,211 |
|
Gross profit |
|
|
241,460 |
|
|
|
260,736 |
|
|
|
246,427 |
|
|
|
260,076 |
|
Selling, general and
administrative expense |
|
|
188,817 |
|
|
|
198,853 |
|
|
|
203,587 |
|
|
|
206,003 |
|
Operating income |
|
|
52,643 |
|
|
|
61,883 |
|
|
|
42,840 |
|
|
|
54,073 |
|
Interest expense |
|
|
(159 |
) |
|
|
(119 |
) |
|
|
(136 |
) |
|
|
(122 |
) |
Interest income |
|
|
474 |
|
|
|
1,138 |
|
|
|
2,012 |
|
|
|
3,046 |
|
Other income (expense),
net |
|
|
45 |
|
|
|
183 |
|
|
|
(1,062 |
) |
|
|
(10,950 |
) |
Income before income taxes |
|
|
53,003 |
|
|
|
63,085 |
|
|
|
43,654 |
|
|
|
46,047 |
|
Income tax expense |
|
|
14,063 |
|
|
|
16,306 |
|
|
|
12,077 |
|
|
|
11,402 |
|
Net income |
|
|
38,940 |
|
|
|
46,779 |
|
|
|
31,577 |
|
|
|
34,645 |
|
Net (income) loss attributable
to noncontrolling interests |
|
|
(452 |
) |
|
|
(702 |
) |
|
|
149 |
|
|
|
(272 |
) |
Net income attributable to La-Z-Boy Incorporated |
|
$ |
38,488 |
|
|
$ |
46,077 |
|
|
$ |
31,726 |
|
|
$ |
34,373 |
|
Diluted weighted average
common shares |
|
|
43,142 |
|
|
|
43,182 |
|
|
|
43,137 |
|
|
|
43,427 |
|
Diluted net income
attributable to La-Z-Boy Incorporated per share |
|
$ |
0.89 |
|
|
$ |
1.07 |
|
|
$ |
0.74 |
|
|
$ |
0.79 |
|
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 |
|
LA-Z-BOY
INCORPORATEDRECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL MEASURES
|
|
Quarter Ended |
|
Year Ended |
(Amounts in thousands, except per share data) |
|
4/29/2023 |
|
4/30/2022 |
|
4/29/2023 |
|
4/30/2022 |
GAAP gross profit |
|
$ |
260,076 |
|
|
$ |
271,227 |
|
|
$ |
1,008,699 |
|
|
$ |
915,969 |
|
Purchase accounting charges - incremental expense upon the sale of
inventory acquired at fair value |
|
|
— |
|
|
|
— |
|
|
|
132 |
|
|
|
— |
|
Business realignment charges |
|
|
— |
|
|
|
— |
|
|
|
609 |
|
|
|
— |
|
Mexico optimization charges |
|
|
741 |
|
|
|
— |
|
|
|
1,621 |
|
|
|
— |
|
Non-GAAP gross profit |
|
$ |
260,817 |
|
|
$ |
271,227 |
|
|
$ |
1,011,061 |
|
|
$ |
915,969 |
|
|
|
|
|
|
|
|
|
|
GAAP SG&A |
|
$ |
206,003 |
|
|
$ |
192,442 |
|
|
$ |
797,260 |
|
|
$ |
709,213 |
|
Purchase accounting gain/(charges) - adjustment to the fair value
of contingent consideration, amortization of intangible assets and
retention agreements |
|
|
(252 |
) |
|
|
3,528 |
|
|
|
(206 |
) |
|
|
2,251 |
|
Business realignment gain |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,277 |
|
Mexico optimization gain/(charges) |
|
|
10 |
|
|
|
— |
|
|
|
(9,196 |
) |
|
|
— |
|
Sale leaseback gain |
|
|
— |
|
|
|
10,655 |
|
|
|
— |
|
|
|
10,655 |
|
Non-GAAP SG&A |
|
$ |
205,761 |
|
|
$ |
206,625 |
|
|
$ |
787,858 |
|
|
$ |
725,396 |
|
|
|
|
|
|
|
|
|
|
GAAP operating income |
|
$ |
54,073 |
|
|
$ |
78,785 |
|
|
$ |
211,439 |
|
|
$ |
206,756 |
|
Purchase accounting (gain)/charges |
|
|
252 |
|
|
|
(3,528 |
) |
|
|
338 |
|
|
|
(2,251 |
) |
Business realignment (gain)/charges |
|
|
— |
|
|
|
— |
|
|
|
609 |
|
|
|
(3,277 |
) |
Mexico optimization charges |
|
|
731 |
|
|
|
— |
|
|
|
10,817 |
|
|
|
— |
|
Sale leaseback gain |
|
|
— |
|
|
|
(10,655 |
) |
|
|
— |
|
|
|
(10,655 |
) |
Non-GAAP operating income |
|
$ |
55,056 |
|
|
$ |
64,602 |
|
|
$ |
223,203 |
|
|
$ |
190,573 |
|
|
|
|
|
|
|
|
|
|
GAAP income before income
taxes |
|
$ |
46,047 |
|
|
$ |
77,726 |
|
|
$ |
205,789 |
|
|
$ |
205,491 |
|
Purchase accounting (gain)/charges recorded as gross profit,
SG&A, and interest expense |
|
|
300 |
|
|
|
(3,437 |
) |
|
|
571 |
|
|
|
(1,737 |
) |
Business realignment (gain)/charges |
|
|
— |
|
|
|
— |
|
|
|
609 |
|
|
|
(3,277 |
) |
Mexico optimization charges |
|
|
731 |
|
|
|
— |
|
|
|
10,817 |
|
|
|
— |
|
Sale leaseback gain |
|
|
— |
|
|
|
(10,655 |
) |
|
|
— |
|
|
|
(10,655 |
) |
Investment impairment |
|
|
10,562 |
|
|
|
— |
|
|
|
10,562 |
|
|
|
— |
|
Non-GAAP income before income
taxes |
|
$ |
57,640 |
|
|
$ |
63,634 |
|
|
$ |
228,348 |
|
|
$ |
189,822 |
|
|
|
|
|
|
|
|
|
|
GAAP net income attributable
to La-Z-Boy Incorporated |
|
$ |
34,373 |
|
|
$ |
57,468 |
|
|
$ |
150,664 |
|
|
$ |
150,017 |
|
Purchase accounting (gain)/charges recorded as gross profit,
SG&A and interest expense |
|
|
300 |
|
|
|
(3,437 |
) |
|
|
571 |
|
|
|
(1,737 |
) |
Tax effect of purchase accounting |
|
|
(74 |
) |
|
|
935 |
|
|
|
(361 |
) |
|
|
588 |
|
Business realignment (gain)/charges |
|
|
— |
|
|
|
— |
|
|
|
609 |
|
|
|
(3,277 |
) |
Tax effect of business realignment |
|
|
— |
|
|
|
— |
|
|
|
(160 |
) |
|
|
862 |
|
Mexico optimization charges |
|
|
731 |
|
|
|
— |
|
|
|
10,817 |
|
|
|
— |
|
Tax effect of Mexico optimization charges |
|
|
(181 |
) |
|
|
— |
|
|
|
(2,845 |
) |
|
|
— |
|
Sale leaseback gain |
|
|
— |
|
|
|
(10,655 |
) |
|
|
— |
|
|
|
(10,655 |
) |
Tax effect of sale leaseback gain |
|
|
— |
|
|
|
2,898 |
|
|
|
— |
|
|
|
2,802 |
|
Investment impairment |
|
|
10,562 |
|
|
|
— |
|
|
|
10,562 |
|
|
|
— |
|
Tax effect of investment impairment |
|
|
(2,619 |
) |
|
|
— |
|
|
|
(2,778 |
) |
|
|
— |
|
Non-GAAP net income
attributable to La-Z-Boy Incorporated |
|
$ |
43,091 |
|
|
$ |
47,209 |
|
|
$ |
167,080 |
|
|
$ |
138,600 |
|
|
|
|
|
|
|
|
|
|
GAAP net income attributable
to La-Z-Boy Incorporated per diluted share |
|
$ |
0.79 |
|
|
$ |
1.33 |
|
|
$ |
3.48 |
|
|
$ |
3.39 |
|
Purchase accounting (gain)/charges, net of tax, per share |
|
|
0.01 |
|
|
|
(0.08 |
) |
|
|
— |
|
|
|
(0.04 |
) |
Business realignment (gain)/charges, net of tax, per share |
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
(0.06 |
) |
Mexico optimization charges, net of tax, per share |
|
|
0.01 |
|
|
|
— |
|
|
|
0.19 |
|
|
|
— |
|
Sale leaseback gain, net of tax, per share |
|
|
— |
|
|
|
(0.18 |
) |
|
|
— |
|
|
|
(0.18 |
) |
Investment impairment, net of tax, per share |
|
|
0.18 |
|
|
|
— |
|
|
|
0.18 |
|
|
|
— |
|
Non-GAAP net income
attributable to La-Z-Boy Incorporated per diluted share |
|
$ |
0.99 |
|
|
$ |
1.07 |
|
|
$ |
3.86 |
|
|
$ |
3.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LA-Z-BOY
INCORPORATEDRECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL MEASURESSEGMENT INFORMATION
|
|
Quarter Ended |
|
Year Ended |
(Amounts in thousands) |
|
4/29/2023 |
|
% of sales |
|
4/30/2022 |
|
% of sales |
|
4/29/2023 |
|
% of sales |
|
4/30/2022 |
|
% of sales |
GAAP operating income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale segment |
|
$ |
33,657 |
|
|
8.5 |
% |
|
$ |
44,915 |
|
|
8.8 |
% |
|
$ |
115,215 |
|
|
6.8 |
% |
|
$ |
134,013 |
|
|
7.6 |
% |
Retail segment |
|
|
37,716 |
|
|
15.5 |
% |
|
|
41,044 |
|
|
17.6 |
% |
|
|
161,571 |
|
|
16.5 |
% |
|
|
109,546 |
|
|
13.6 |
% |
Corporate and Other |
|
|
(17,300 |
) |
|
N/M |
|
|
|
(7,174 |
) |
|
N/M |
|
|
|
(65,347 |
) |
|
N/M |
|
|
|
(36,803 |
) |
|
N/M |
|
Consolidated GAAP operating income |
|
$ |
54,073 |
|
|
9.6 |
% |
|
$ |
78,785 |
|
|
11.5 |
% |
|
$ |
211,439 |
|
|
9.0 |
% |
|
$ |
206,756 |
|
|
8.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP items affecting
operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale segment |
|
$ |
784 |
|
|
|
|
$ |
57 |
|
|
|
|
$ |
11,634 |
|
|
|
|
$ |
(3,041 |
) |
|
|
Retail segment |
|
|
— |
|
|
|
|
|
(10,655 |
) |
|
|
|
|
132 |
|
|
|
|
|
(10,655 |
) |
|
|
Corporate and Other |
|
|
199 |
|
|
|
|
|
(3,585 |
) |
|
|
|
|
(2 |
) |
|
|
|
|
(2,487 |
) |
|
|
Consolidated Non-GAAP items affecting operating income |
|
$ |
983 |
|
|
|
|
$ |
(14,183 |
) |
|
|
|
$ |
11,764 |
|
|
|
|
$ |
(16,183 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating income
(loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale segment |
|
$ |
34,441 |
|
|
8.7 |
% |
|
$ |
44,972 |
|
|
8.8 |
% |
|
$ |
126,849 |
|
|
7.5 |
% |
|
$ |
130,972 |
|
|
7.4 |
% |
Retail segment |
|
|
37,716 |
|
|
15.5 |
% |
|
|
30,389 |
|
|
13.0 |
% |
|
|
161,703 |
|
|
16.5 |
% |
|
|
98,891 |
|
|
12.3 |
% |
Corporate and Other |
|
|
(17,101 |
) |
|
N/M |
|
|
|
(10,759 |
) |
|
N/M |
|
|
|
(65,349 |
) |
|
N/M |
|
|
|
(39,290 |
) |
|
N/M |
|
Consolidated Non-GAAP operating income |
|
$ |
55,056 |
|
|
9.8 |
% |
|
$ |
64,602 |
|
|
9.4 |
% |
|
$ |
223,203 |
|
|
9.5 |
% |
|
$ |
190,573 |
|
|
8.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N/M - Not Meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
La Z Boy (NYSE:LZB)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
La Z Boy (NYSE:LZB)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024