La-Z-Boy Incorporated (NYSE: LZB), a global leader in the
manufacture and retail of residential furniture, today reported
second quarter results for the period ended October 28, 2023.
Sales totaled $511 million, on the high end of guidance provided
last quarter and a decrease of 16% against a year ago period that
benefited from delivery of pandemic related backlog. Written
same-store sales for the entire La-Z-Boy Furniture Galleries®
network increased 1% versus a year ago, with company-owned written
same-store sales essentially flat against a challenged consumer
environment. Operating margin was 6.6% in the quarter on a GAAP
basis and 7.9% on a Non-GAAP basis, which exceeded previously
provided guidance. Earnings per diluted share totaled $0.63 on a
GAAP basis and $0.74 on a Non-GAAP basis.
Melinda D. Whittington, President and Chief
Executive Officer of La-Z-Boy Incorporated, said, "In spite of a
challenging macro environment and the continued soft home furniture
industry, La-Z-Boy Incorporated continues to outperform. These
results were achieved via strong execution, particularly in our
retail stores and across our supply chain. We continue to make
progress on our Century Vision strategy, highlighted by growth in
our company-owned Retail store base, which now represents just over
half of our entire network. Building on that foundation, we
recently signed an agreement to acquire an additional six store
network from an independent La-Z-Boy Furniture Galleries® dealer in
the Midwest."
Whittington added, "We are excited about the
potential of our new brand campaign, "Long Live the Lazy," which
was introduced in August. In the quarter, we activated our new
marketing strategy, leveraging data based consumer insights and our
brand heritage of comfort and quality to connect with a broader
consumer base. Despite weakness in near-term industry traffic
trends, we continue to take a long-term approach to investing in
our business and are making steady progress toward building a more
agile supply chain and optimizing our network. Although consumer
traffic trends remain a headwind, La-Z-Boy remains well positioned
to continue outperforming the industry due to our iconic brand,
consumer preferred shopping experience, and long-term approach to
investing in our business, enabled by the strength of our balance
sheet. We are confident in our ability to grow at a pace double the
industry and deliver double-digit operating margins over the long
term."
Third Quarter
Outlook:Bob Lucian, Chief Financial
Officer of La-Z-Boy Incorporated, said, "Our second quarter results
were roughly in line with the top end of sales guidance, and
exceeded Non-GAAP operating margin(2) expectations given strong
execution, particularly in our Retail business. Looking forward, we
expect consumer trends for our industry to remain challenging. With
this in mind, we are prudently planning for sales in the third
quarter of fiscal 2024 to be relatively consistent with the second
quarter. Further, we expect third quarter Non-GAAP operating
margin(1) to be similar to the first half of the year. As such, we
are forecasting fiscal third quarter sales to be in the range of
$515-535 million and Non-GAAP operating margin(1) to be in the
range of 7-8%."
Key Results:
(Unaudited, amounts in thousands, except per share
data) |
|
Quarter Ended |
|
|
|
10/28/2023 |
|
10/29/2022 |
|
Change |
Sales |
|
$ |
511,435 |
|
$ |
611,332 |
|
(16)% |
|
|
|
|
|
|
|
GAAP operating income |
|
|
33,612 |
|
|
61,883 |
|
(46)% |
Non-GAAP
operating income |
|
|
40,510 |
|
|
61,146 |
|
(34)% |
|
|
|
|
|
|
|
GAAP operating margin |
|
|
6.6% |
|
|
10.1% |
|
(350) bps |
Non-GAAP
operating margin |
|
|
7.9% |
|
|
10.0% |
|
(210) bps |
|
|
|
|
|
|
|
GAAP net income attributable
to La-Z-Boy Incorporated |
|
|
27,199 |
|
|
46,077 |
|
(41)% |
Non-GAAP net income
attributable to La-Z-Boy Incorporated |
|
|
32,269 |
|
|
45,357 |
|
(29)% |
|
|
|
|
|
|
|
Diluted weighted average
common shares |
|
|
43,401 |
|
|
43,182 |
|
|
|
|
|
|
|
|
|
GAAP diluted earnings per
share |
|
$ |
0.63 |
|
$ |
1.07 |
|
(41)% |
Non-GAAP diluted earnings per
share |
|
$ |
0.74 |
|
$ |
1.05 |
|
(30)% |
Liquidity Measures:
|
|
Six Months Ended |
|
|
|
Six Months Ended |
(Unaudited, amounts in thousands) |
|
10/28/2023 |
|
10/29/2022 |
|
(Unaudited, amounts in thousands) |
|
10/28/2023 |
|
10/29/2022 |
Free Cash Flow |
|
|
|
|
|
Cash Returns to Shareholders |
|
|
|
|
Operating cash flow |
|
$ |
56,876 |
|
|
$ |
30,954 |
|
|
Share repurchases |
|
$ |
20,014 |
|
$ |
5,004 |
Capital expenditures |
|
|
(26,501 |
) |
|
|
(40,442 |
) |
|
Dividends |
|
|
15,632 |
|
|
14,161 |
Free cash flow |
|
$ |
30,375 |
|
|
$ |
(9,488 |
) |
|
Cash returns to shareholders |
|
$ |
35,646 |
|
$ |
19,165 |
(Unaudited, amounts in thousands) |
|
10/28/2023 |
|
10/29/2022 |
Cash and cash equivalents |
|
$ |
329,632 |
|
$ |
204,626 |
Restricted cash |
|
|
3,835 |
|
|
3,268 |
Total cash, cash equivalents and restricted cash |
|
$ |
333,467 |
|
$ |
207,894 |
FY24 Q2 Results vs. FY23
Q2: Consolidated
Results:
- Consolidated sales in the second
quarter of fiscal 2024 decreased 16% to $511 million, primarily
reflecting lower delivered unit volume versus last year's results
that included delivery of backlog but increased 14% versus the most
recent pre-pandemic second quarter in fiscal year 2020
- La-Z-Boy Furniture Galleries®
network written same-store sales increased 1%
- Consolidated GAAP operating margin
was 6.6% versus 10.1%
- Consolidated Non-GAAP operating
margin decreased 210 basis points to 7.9% versus 10.0%, driven
primarily by fixed cost deleverage
- GAAP diluted EPS decreased to $0.63
from $1.07 and Non-GAAP diluted EPS decreased to $0.74 from
$1.05
Retail Segment:
- Sales:
- Written sales for the Retail
segment (company-owned La-Z-Boy Furniture Galleries® stores)
increased 3% driven primarily by acquired stores
- Written same-store sales for the
Retail segment were essentially flat
- Delivered sales for the Retail
segment decreased 15% to $214 million versus last year's sales,
which included delivery of pandemic related backlog, but increased
44% versus the most recent pre-pandemic second quarter in fiscal
year 2020
- Operating Margin:
- Non-GAAP(2) operating margin and
operating income was 13.0% and $28 million, respectively, down 350
basis points and 33%, respectively, primarily driven by fixed cost
deleverage
Wholesale Segment:
- Sales:
- Decreased 18% to $365 million
driven primarily by a decline in delivered volume versus the year
ago period, which benefited from pandemic backlog production and
deliveries
- Operating Margin:
- Non-GAAP(2) operating margin decreased to 7.7%, down 90 basis
points; gross margin improvement from lower raw material cost and
duty expense was more than offset by fixed cost deleverage and
increased marketing investments to support the launch of our "Long
Live the Lazy" brand campaign
Corporate & Other:
- Joybird written sales increased 5% and delivered sales
decreased 15% to $32 million, reflecting sequential improvement in
both metrics. E-commerce trends remain challenging following the
broad industry slowdown, which began in prior year's second
quarter.
Balance Sheet and Cash Flow, Second Quarter Fiscal
2024:
- Ended the second quarter with $333
million in cash(3) and no external debt
- Generated $31 million in cash from
operating activities versus a use of $2 million in the second
quarter of last fiscal year. Year to date, cash flow from
operations was $57 million, up 84% from last year's comparable
period
- Invested $13 million in capital
expenditures, primarily related to La-Z-Boy Furniture Galleries®
(new stores and remodels), and projects at our manufacturing and
distribution facilities
- Returned $18 million to
shareholders, including $10 million in share repurchases and $8
million in dividends
Dividend:On
November 29, 2023, the Board of Directors declared a quarterly cash
dividend of $0.20 per share on the common stock of the company, a
10% increase over the previous dividend. The dividend will be paid
on December 18, 2023, to shareholders of record on December 11,
2023.
Conference
Call:La-Z-Boy will hold a conference call
with the investment community on Thursday, November 30, 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 126177.
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: 48910. The webcast replay will be available for one
year.
Investor Relations
Contact:Mark Becks, CFA, (734)
457-9538mark.becks@la-z-boy.com
About
La-Z-Boy:La-Z-Boy Incorporated is a
global leader in the manufacture and retail of residential
furniture, 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 177 of the 353 La-Z-Boy Furniture Galleries® stores. The
Corporate and Other segment includes Joybird, an e-commerce
retailer and manufacturer of upholstered furniture that also has 11
stores in the U.S.
The corporation’s branded distribution network
is dedicated to selling La-Z-Boy Incorporated products and brands,
and includes 353 stand-alone La-Z-Boy Furniture Galleries® stores
and 521 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)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.
(2)Non-GAAP
amounts for the second quarter of
fiscal 2024 exclude:
- a charge of $6.6 million pre-tax,
or $0.11 per diluted share, related to our supply chain
optimization actions
- purchase accounting charges related
to acquisitions completed in prior periods totaling $0.3 million
pre-tax, or less than $0.01 per diluted share, all included in
operating income
Non-GAAP amounts for the
second quarter of fiscal
2023 exclude:
- purchase accounting benefit related
to acquisitions completed in prior periods totaling $0.4 million
pre-tax, or $0.01 per diluted share, primarily due to the write-off
of the Joybird contingent consideration liability, based on
forecasted future performance with $0.4 million included in
operating income and less than $0.1 million included in interest
expense
- a benefit of $0.3 million pre-tax,
or $0.01 per diluted share, related to our business realignment
plan, including costs associated with the closure of our Newton,
Mississippi manufacturing facility
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.
(3)Cash includes cash, cash
equivalents and restricted cash.
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.
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,
Non-GAAP diluted earnings per 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, supply chain
optimization charges, and purchase accounting charges. The business
realignment charges include severance costs, asset impairment
costs, and costs to relocate equipment and inventory related to
organizational changes we undertook as a result of our response to
COVID-19, 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
supply chain optimization charges may include asset impairment
costs, accelerated depreciation expense, lease termination gains,
severance costs, and employee relocation costs resulting from the
closure, consolidation, and centralization of various global supply
chain operations and includes the closure of our Torreón
manufacturing facility (previously disclosed as Mexico
optimization). The purchase accounting charges may include the
amortization of intangible assets and fair value adjustments of
future cash payments recorded as interest expense. 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 supply chain optimization charges
are dependent on the timing, size, number and nature of the
operations being closed, consolidated or centralized, and the
charges may not be incurred on a predictable cycle. Management
believes that exclusion of these items facilitates more consistent
comparisons of the company’s operating results over time. Where
applicable, the accompanying “Reconciliation of GAAP to Non-GAAP
Financial Measures” tables present the excluded items net of tax
calculated using the effective tax rate from operations for the
period in which the adjustment is presented.
LA-Z-BOY INCORPORATEDCONSOLIDATED STATEMENT OF
INCOME |
|
|
Quarter Ended |
|
Six Months Ended |
(Unaudited, amounts in thousands, except per share
data) |
|
10/28/2023 |
|
10/29/2022 |
|
10/28/2023 |
|
10/29/2022 |
Sales |
|
$ |
511,435 |
|
|
$ |
611,332 |
|
|
$ |
993,086 |
|
|
$ |
1,215,423 |
|
Cost of sales |
|
|
288,830 |
|
|
|
361,848 |
|
|
|
564,753 |
|
|
|
734,909 |
|
Gross profit |
|
|
222,605 |
|
|
|
249,484 |
|
|
|
428,333 |
|
|
|
480,514 |
|
Selling, general and administrative expense |
|
|
188,993 |
|
|
|
187,601 |
|
|
|
360,195 |
|
|
|
365,988 |
|
Operating income |
|
|
33,612 |
|
|
|
61,883 |
|
|
|
68,138 |
|
|
|
114,526 |
|
Interest expense |
|
|
(101 |
) |
|
|
(119 |
) |
|
|
(223 |
) |
|
|
(278 |
) |
Interest income |
|
|
4,042 |
|
|
|
1,138 |
|
|
|
7,098 |
|
|
|
1,612 |
|
Other income (expense),
net |
|
|
104 |
|
|
|
183 |
|
|
|
660 |
|
|
|
228 |
|
Income before income taxes |
|
|
37,657 |
|
|
|
63,085 |
|
|
|
75,673 |
|
|
|
116,088 |
|
Income tax expense |
|
|
9,963 |
|
|
|
16,306 |
|
|
|
20,053 |
|
|
|
30,369 |
|
Net income |
|
|
27,694 |
|
|
|
46,779 |
|
|
|
55,620 |
|
|
|
85,719 |
|
Net income attributable to
noncontrolling interests |
|
|
(495 |
) |
|
|
(702 |
) |
|
|
(942 |
) |
|
|
(1,154 |
) |
Net income attributable to La-Z-Boy Incorporated |
|
$ |
27,199 |
|
|
$ |
46,077 |
|
|
$ |
54,678 |
|
|
$ |
84,565 |
|
|
|
|
|
|
|
|
|
|
Basic weighted average common
shares |
|
|
43,008 |
|
|
|
43,104 |
|
|
|
43,123 |
|
|
|
43,098 |
|
Basic net income attributable
to La-Z-Boy Incorporated per share |
|
$ |
0.63 |
|
|
$ |
1.07 |
|
|
$ |
1.27 |
|
|
$ |
1.96 |
|
|
|
|
|
|
|
|
|
|
Diluted weighted average
common shares |
|
|
43,401 |
|
|
|
43,182 |
|
|
|
43,479 |
|
|
|
43,174 |
|
Diluted net income
attributable to La-Z-Boy Incorporated per share |
|
$ |
0.63 |
|
|
$ |
1.07 |
|
|
$ |
1.26 |
|
|
$ |
1.96 |
|
LA-Z-BOY INCORPORATEDCONSOLIDATED BALANCE
SHEET |
(Unaudited, amounts in thousands, except par
value) |
|
10/28/2023 |
|
4/29/2023 |
Current assets |
|
|
|
|
Cash and equivalents |
|
$ |
329,632 |
|
|
$ |
343,374 |
|
Restricted cash |
|
|
3,835 |
|
|
|
3,304 |
|
Receivables, net of allowance of $4,714 at 10/28/2023 and $4,776 at
4/29/2023 |
|
|
134,394 |
|
|
|
125,536 |
|
Inventories, net |
|
|
268,480 |
|
|
|
276,257 |
|
Other current assets |
|
|
104,675 |
|
|
|
106,129 |
|
Total current assets |
|
|
841,016 |
|
|
|
854,600 |
|
Property, plant and equipment,
net |
|
|
270,682 |
|
|
|
278,578 |
|
Goodwill |
|
|
208,473 |
|
|
|
205,008 |
|
Other intangible assets,
net |
|
|
41,515 |
|
|
|
39,375 |
|
Deferred income taxes –
long-term |
|
|
8,477 |
|
|
|
8,918 |
|
Right of use lease assets |
|
|
452,232 |
|
|
|
416,269 |
|
Other long-term assets,
net |
|
|
57,630 |
|
|
|
63,515 |
|
Total assets |
|
$ |
1,880,025 |
|
|
$ |
1,866,263 |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
Accounts payable |
|
$ |
98,088 |
|
|
$ |
107,460 |
|
Lease liabilities, short-term |
|
|
77,401 |
|
|
|
77,751 |
|
Accrued expenses and other current liabilities |
|
|
256,325 |
|
|
|
290,650 |
|
Total current liabilities |
|
|
431,814 |
|
|
|
475,861 |
|
Lease liabilities,
long-term |
|
|
406,458 |
|
|
|
368,163 |
|
Other long-term
liabilities |
|
|
67,963 |
|
|
|
70,142 |
|
Shareholders' equity |
|
|
|
|
Preferred shares – 5,000 authorized; none issued |
|
|
— |
|
|
|
— |
|
Common shares, $1.00 par value – 150,000 authorized; 42,875
outstanding at 10/28/2023 and 43,318 outstanding at
4/29/2023 |
|
|
42,875 |
|
|
|
43,318 |
|
Capital in excess of par value |
|
|
361,409 |
|
|
|
358,891 |
|
Retained earnings |
|
|
567,391 |
|
|
|
545,155 |
|
Accumulated other comprehensive loss |
|
|
(7,392 |
) |
|
|
(5,528 |
) |
Total La-Z-Boy Incorporated shareholders' equity |
|
|
964,283 |
|
|
|
941,836 |
|
Noncontrolling interests |
|
|
9,507 |
|
|
|
10,261 |
|
Total equity |
|
|
973,790 |
|
|
|
952,097 |
|
Total liabilities and equity |
|
$ |
1,880,025 |
|
|
$ |
1,866,263 |
|
LA-Z-BOY INCORPORATEDCONSOLIDATED STATEMENT OF
CASH FLOWS |
|
|
Six Months Ended |
(Unaudited, amounts in thousands) |
|
10/28/2023 |
|
10/29/2022 |
Cash flows from operating activities |
|
|
|
|
Net income |
|
$ |
55,620 |
|
|
$ |
85,719 |
|
Adjustments to reconcile net income to cash provided by operating
activities |
|
|
|
|
(Gain)/loss on disposal and impairment of assets |
|
|
559 |
|
|
|
1 |
|
(Gain)/loss on sale of investments |
|
|
(1,136 |
) |
|
|
77 |
|
Provision for doubtful accounts |
|
|
44 |
|
|
|
694 |
|
Depreciation and amortization |
|
|
25,092 |
|
|
|
19,258 |
|
Amortization of right-of-use lease assets |
|
|
37,285 |
|
|
|
38,580 |
|
Lease impairment/(settlement) |
|
|
(1,175 |
) |
|
|
— |
|
Equity-based compensation expense |
|
|
7,337 |
|
|
|
5,079 |
|
Change in deferred taxes |
|
|
(340 |
) |
|
|
27 |
|
Change in receivables |
|
|
(9,843 |
) |
|
|
19,550 |
|
Change in inventories |
|
|
9,757 |
|
|
|
(36,771 |
) |
Change in other assets |
|
|
(1,361 |
) |
|
|
4,890 |
|
Change in payables |
|
|
(4,040 |
) |
|
|
8,027 |
|
Change in lease liabilities |
|
|
(38,121 |
) |
|
|
(39,380 |
) |
Change in other liabilities |
|
|
(22,802 |
) |
|
|
(74,797 |
) |
Net cash provided by operating activities |
|
|
56,876 |
|
|
|
30,954 |
|
|
|
|
|
|
Cash flows from investing
activities |
|
|
|
|
Proceeds from disposals of assets |
|
|
4,037 |
|
|
|
63 |
|
Capital expenditures |
|
|
(26,501 |
) |
|
|
(40,442 |
) |
Purchases of investments |
|
|
(17,485 |
) |
|
|
(4,714 |
) |
Proceeds from sales of investments |
|
|
21,956 |
|
|
|
12,660 |
|
Acquisitions |
|
|
(7,311 |
) |
|
|
(11,705 |
) |
Net cash used for investing activities |
|
|
(25,304 |
) |
|
|
(44,138 |
) |
|
|
|
|
|
Cash flows from financing
activities |
|
|
|
|
Payments on debt and finance lease liabilities |
|
|
(206 |
) |
|
|
(61 |
) |
Holdback payments for acquisitions |
|
|
(5,000 |
) |
|
|
(5,000 |
) |
Stock issued for stock and employee benefit plans, net of shares
withheld for taxes |
|
|
(1,859 |
) |
|
|
(1,711 |
) |
Repurchases of common stock |
|
|
(20,014 |
) |
|
|
(5,004 |
) |
Dividends paid to shareholders |
|
|
(15,632 |
) |
|
|
(14,161 |
) |
Dividends paid to minority interest joint venture partners (1) |
|
|
(1,172 |
) |
|
|
— |
|
Net cash used for financing activities |
|
|
(43,883 |
) |
|
|
(25,937 |
) |
|
|
|
|
|
Effect of exchange rate
changes on cash and equivalents |
|
|
(900 |
) |
|
|
(1,841 |
) |
Change in cash, cash
equivalents and restricted cash |
|
|
(13,211 |
) |
|
|
(40,962 |
) |
Cash, cash equivalents and
restricted cash at beginning of period |
|
|
346,678 |
|
|
|
248,856 |
|
Cash, cash equivalents and
restricted cash at end of period |
|
$ |
333,467 |
|
|
$ |
207,894 |
|
|
|
|
|
|
Supplemental disclosure of
non-cash investing activities |
|
|
|
|
Capital expenditures included in payables |
|
$ |
3,079 |
|
|
$ |
4,251 |
|
|
(1) |
Includes dividends paid to joint venture minority partners
resulting from the repatriation of dividends from our foreign
earnings that we no longer consider permanently reinvested. |
LA-Z-BOY INCORPORATEDSEGMENT INFORMATION |
|
|
Quarter Ended |
|
Six Months Ended |
(Unaudited, amounts in thousands) |
|
10/28/2023 |
|
10/29/2022 |
|
10/28/2023 |
|
10/29/2022 |
Sales |
|
|
|
|
|
|
|
|
Wholesale segment: |
|
|
|
|
|
|
|
|
Sales to external customers |
|
$ |
263,738 |
|
|
$ |
319,613 |
|
|
$ |
499,989 |
|
|
$ |
643,341 |
|
Intersegment sales |
|
|
101,229 |
|
|
|
126,618 |
|
|
|
198,453 |
|
|
|
244,708 |
|
Wholesale segment sales |
|
|
364,967 |
|
|
|
446,231 |
|
|
|
698,442 |
|
|
|
888,049 |
|
|
|
|
|
|
|
|
|
|
Retail segment sales |
|
|
214,309 |
|
|
|
252,152 |
|
|
|
422,552 |
|
|
|
488,173 |
|
|
|
|
|
|
|
|
|
|
Corporate and Other: |
|
|
|
|
|
|
|
|
Sales to external customers |
|
|
33,388 |
|
|
|
39,567 |
|
|
|
70,545 |
|
|
|
83,909 |
|
Intersegment sales |
|
|
2,844 |
|
|
|
4,070 |
|
|
|
5,748 |
|
|
|
8,458 |
|
Corporate and Other sales |
|
|
36,232 |
|
|
|
43,637 |
|
|
|
76,293 |
|
|
|
92,367 |
|
|
|
|
|
|
|
|
|
|
Eliminations |
|
|
(104,073 |
) |
|
|
(130,688 |
) |
|
|
(204,201 |
) |
|
|
(253,166 |
) |
Consolidated sales |
|
$ |
511,435 |
|
|
$ |
611,332 |
|
|
$ |
993,086 |
|
|
$ |
1,215,423 |
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss) |
|
|
|
|
|
|
|
|
Wholesale segment |
|
$ |
21,450 |
|
|
$ |
38,476 |
|
|
$ |
44,953 |
|
|
$ |
64,618 |
|
Retail segment |
|
|
27,935 |
|
|
|
41,500 |
|
|
|
57,199 |
|
|
|
79,652 |
|
Corporate and Other |
|
|
(15,773 |
) |
|
|
(18,093 |
) |
|
|
(34,014 |
) |
|
|
(29,744 |
) |
Consolidated operating income |
|
$ |
33,612 |
|
|
$ |
61,883 |
|
|
$ |
68,138 |
|
|
$ |
114,526 |
|
LA-Z-BOY INCORPORATEDRECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES |
|
|
Quarter Ended |
|
Six Months Ended |
(Amounts in thousands, except per share data) |
|
10/28/2023 |
|
10/29/2022 |
|
10/28/2023 |
|
10/29/2022 |
GAAP gross profit |
|
$ |
222,605 |
|
|
$ |
249,484 |
|
|
$ |
428,333 |
|
|
$ |
480,514 |
|
Purchase accounting charges - incremental expense upon the sale of
inventory acquired at fair value |
|
|
— |
|
|
|
132 |
|
|
|
— |
|
|
|
132 |
|
Business realignment charges/(gain) |
|
|
— |
|
|
|
(319 |
) |
|
|
— |
|
|
|
609 |
|
Supply chain optimization charges |
|
|
3,615 |
|
|
|
— |
|
|
|
3,762 |
|
|
|
— |
|
Non-GAAP gross profit |
|
$ |
226,220 |
|
|
$ |
249,297 |
|
|
$ |
432,095 |
|
|
$ |
481,255 |
|
|
|
|
|
|
|
|
|
|
GAAP SG&A |
|
$ |
188,993 |
|
|
$ |
187,601 |
|
|
$ |
360,195 |
|
|
$ |
365,988 |
|
Purchase accounting (charges)/gain - amortization of intangible
assets and adjustment to the fair value of contingent
consideration |
|
|
(253 |
) |
|
|
550 |
|
|
|
(508 |
) |
|
|
298 |
|
Supply chain optimization charges |
|
|
(3,030 |
) |
|
|
— |
|
|
|
(1,855 |
) |
|
|
— |
|
Non-GAAP SG&A |
|
$ |
185,710 |
|
|
$ |
188,151 |
|
|
$ |
357,832 |
|
|
$ |
366,286 |
|
|
|
|
|
|
|
|
|
|
GAAP operating income |
|
$ |
33,612 |
|
|
$ |
61,883 |
|
|
$ |
68,138 |
|
|
$ |
114,526 |
|
Purchase accounting charges/(gain) |
|
|
253 |
|
|
|
(418 |
) |
|
|
508 |
|
|
|
(166 |
) |
Business realignment charges/(gain) |
|
|
— |
|
|
|
(319 |
) |
|
|
— |
|
|
|
609 |
|
Supply chain optimization charges |
|
|
6,645 |
|
|
|
— |
|
|
|
5,617 |
|
|
|
— |
|
Non-GAAP operating income |
|
$ |
40,510 |
|
|
$ |
61,146 |
|
|
$ |
74,263 |
|
|
$ |
114,969 |
|
|
|
|
|
|
|
|
|
|
GAAP income before income
taxes |
|
$ |
37,657 |
|
|
$ |
63,085 |
|
|
$ |
75,673 |
|
|
$ |
116,088 |
|
Purchase accounting charges/(gain) recorded as part of gross
profit, SG&A, and interest expense |
|
|
253 |
|
|
|
(372 |
) |
|
|
556 |
|
|
|
(27 |
) |
Business realignment charges/(gain) |
|
|
— |
|
|
|
(319 |
) |
|
|
— |
|
|
|
609 |
|
Supply chain optimization charges |
|
|
6,645 |
|
|
|
— |
|
|
|
5,617 |
|
|
|
— |
|
Non-GAAP income before income
taxes |
|
$ |
44,555 |
|
|
$ |
62,394 |
|
|
$ |
81,846 |
|
|
$ |
116,670 |
|
|
|
|
|
|
|
|
|
|
GAAP net income attributable
to La-Z-Boy Incorporated |
|
$ |
27,199 |
|
|
$ |
46,077 |
|
|
$ |
54,678 |
|
|
$ |
84,565 |
|
Purchase accounting charges/(gain) recorded as part of gross
profit, SG&A, and interest expense |
|
|
253 |
|
|
|
(372 |
) |
|
|
556 |
|
|
|
(27 |
) |
Tax effect of purchase accounting |
|
|
(67 |
) |
|
|
(112 |
) |
|
|
(147 |
) |
|
|
(203 |
) |
Business realignment charges/(gain) |
|
|
— |
|
|
|
(319 |
) |
|
|
— |
|
|
|
609 |
|
Tax effect of business realignment |
|
|
— |
|
|
|
84 |
|
|
|
— |
|
|
|
(160 |
) |
Supply chain optimization charges |
|
|
6,645 |
|
|
|
— |
|
|
|
5,617 |
|
|
|
— |
|
Tax effect of supply chain optimization |
|
|
(1,761 |
) |
|
|
— |
|
|
|
(1,489 |
) |
|
|
— |
|
Non-GAAP net income
attributable to La-Z-Boy Incorporated |
|
$ |
32,269 |
|
|
$ |
45,357 |
|
|
$ |
59,215 |
|
|
$ |
84,784 |
|
|
|
|
|
|
|
|
|
|
GAAP net income attributable
to La-Z-Boy Incorporated per diluted share |
|
$ |
0.63 |
|
|
$ |
1.07 |
|
|
$ |
1.26 |
|
|
$ |
1.96 |
|
Purchase accounting charges/(gain), net of tax, per share |
|
|
— |
|
|
|
(0.01 |
) |
|
|
0.01 |
|
|
|
(0.01 |
) |
Business realignment charges/(gain), net of tax, per share |
|
|
— |
|
|
|
(0.01 |
) |
|
|
— |
|
|
|
0.01 |
|
Supply chain optimization charges, net of tax, per share |
|
|
0.11 |
|
|
|
— |
|
|
|
0.09 |
|
|
|
— |
|
Non-GAAP net income
attributable to La-Z-Boy Incorporated per diluted share |
|
$ |
0.74 |
|
|
$ |
1.05 |
|
|
$ |
1.36 |
|
|
$ |
1.96 |
|
LA-Z-BOY INCORPORATEDRECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURESSEGMENT
INFORMATION |
|
|
Quarter Ended |
|
Six Months Ended |
(Amounts in thousands) |
|
10/28/2023 |
|
% of sales |
|
10/29/2022 |
|
% of sales |
|
10/28/2023 |
|
% of sales |
|
10/29/2022 |
|
% of sales |
GAAP operating income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale segment |
|
$ |
21,450 |
|
|
5.9 |
% |
|
$ |
38,476 |
|
|
8.6 |
% |
|
$ |
44,953 |
|
|
6.4 |
% |
|
$ |
64,618 |
|
|
7.3 |
% |
Retail segment |
|
|
27,935 |
|
|
13.0 |
% |
|
|
41,500 |
|
|
16.5 |
% |
|
|
57,199 |
|
|
13.5 |
% |
|
|
79,652 |
|
|
16.3 |
% |
Corporate and Other |
|
|
(15,773 |
) |
|
N/M |
|
|
(18,093 |
) |
|
N/M |
|
|
(34,014 |
) |
|
N/M |
|
|
(29,744 |
) |
|
N/M |
Consolidated GAAP operating income |
|
$ |
33,612 |
|
|
6.6 |
% |
|
$ |
61,883 |
|
|
10.1 |
% |
|
$ |
68,138 |
|
|
6.9 |
% |
|
$ |
114,526 |
|
|
9.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP items affecting
operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale segment |
|
$ |
6,699 |
|
|
|
|
$ |
(269 |
) |
|
|
|
$ |
5,726 |
|
|
|
|
$ |
712 |
|
|
|
Retail segment |
|
|
— |
|
|
|
|
|
132 |
|
|
|
|
|
— |
|
|
|
|
|
132 |
|
|
|
Corporate and Other |
|
|
199 |
|
|
|
|
|
(600 |
) |
|
|
|
|
399 |
|
|
|
|
|
(401 |
) |
|
|
Consolidated Non-GAAP items affecting operating income |
|
$ |
6,898 |
|
|
|
|
$ |
(737 |
) |
|
|
|
$ |
6,125 |
|
|
|
|
$ |
443 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating income
(loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale segment |
|
$ |
28,149 |
|
|
7.7 |
% |
|
$ |
38,207 |
|
|
8.6 |
% |
|
$ |
50,679 |
|
|
7.3 |
% |
|
$ |
65,330 |
|
|
7.4 |
% |
Retail segment |
|
|
27,935 |
|
|
13.0 |
% |
|
|
41,632 |
|
|
16.5 |
% |
|
|
57,199 |
|
|
13.5 |
% |
|
|
79,784 |
|
|
16.3 |
% |
Corporate and Other |
|
|
(15,574 |
) |
|
N/M |
|
|
(18,693 |
) |
|
N/M |
|
|
(33,615 |
) |
|
N/M |
|
|
(30,145 |
) |
|
N/M |
Consolidated Non-GAAP operating income |
|
$ |
40,510 |
|
|
7.9 |
% |
|
$ |
61,146 |
|
|
10.0 |
% |
|
$ |
74,263 |
|
|
7.5 |
% |
|
$ |
114,969 |
|
|
9.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N/M - Not Meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
La Z Boy (NYSE:LZB)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
La Z Boy (NYSE:LZB)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024