UNITED
STATES
SECURITIES AND EXCHANGE
COMMISSION
WASHINGTON,
D.C. 20549-1004
FORM
8-K
Current
Report Pursuant to Section 13 or 15(d) of
the
Securities Exchange Act of 1934
November 22,
2010
(Date of
Report (Date of Earliest Event Reported))
LA-Z-BOY INCORPORATED
(Exact
name of registrant as specified in its charter)
|
MICHIGAN
|
1-9656
|
38-0751137
|
|
(State
or other jurisdiction of
|
(Commission
|
(IRS
Employer
|
|
incorporation)
|
File
Number)
|
Identification
Number)
|
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1284
North Telegraph Road, Monroe, Michigan
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48162-3390
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(Address
of principal executive offices)
|
Zip
Code
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Registrant's
telephone number, including area code (734)
242-1444
None
(Former
name or former address, if changed since last report.)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
¨ Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
¨ Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
¨ Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
¨ Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item
2.02 Results of Operations and Financial Condition.
On
November 22, 2010, La-Z-Boy Incorporated issued a news release to report the
company’s financial results for the second quarter ended October 23,
2010. A copy of the news release is attached to this current report
on Form 8-K as Exhibit 99.1. Exhibit 99.2 contains unaudited
financial data.
The
information in Item 2.02 of this report and the related exhibits (Exhibits 99.1
and 99.2) shall not be deemed “filed” for purposes of Section 18 of the
Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the
liabilities of that section, nor shall it be deemed incorporated by reference in
any filing under the Securities Act of 1933 or the Exchange Act, except as
expressly set forth by specific reference in such a filing.
Item
9.01 Financial Statements and Exhibits
(d)
The following exhibits are filed or furnished as part of this
report:
|
Description
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|||
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99.1
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News
Release Dated November 22, 2010
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||
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99.2
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Unaudited
financial
schedules
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||
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.
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LA-Z-BOY
INCORPORATED
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|||
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(Registrant)
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|||
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Date:
November 22, 2010
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|||
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BY:
/s/ Margaret L. Mueller
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|||
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Margaret
L. Mueller
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|||
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Corporate
Controller
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EXHIBIT
99.1
|
NEWS
RELEASE
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||
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Contact: Kathy
Liebmann
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(734)
241-2438
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kathy.liebmann@la-z-boy.com
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LA-Z-BOY REPORTS
SECOND-QUARTER RESULTS
MONROE,
MI. November 22, 2010—La-Z-Boy Incorporated (NYSE: LZB) today
reported its operating results for the fiscal second quarter ended October 23,
2010.
Fiscal
2011 second-quarter highlights:
|
|
·
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Sales
for the second quarter declined 2.6%, reflecting weakness in the housing
market and low levels of consumer
confidence;
|
|
|
·
|
Net
income for the fiscal 2011 second quarter was $0.07 per share versus $0.11
per share in last year’s second quarter, which included a $0.01 per-share
restructuring charge;
|
|
|
·
|
The
upholstery segment’s sales declined 3.4% and its operating margin was 7.6%
versus 10.9% in last year’s second
quarter;
|
|
|
·
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The
casegoods segment’s sales increased 5.9% and its operating margin was 3.5%
compared with a loss of (0.5%) in the previous
year;
|
|
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·
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The
retail segment’s sales increased 3.2% and it experienced its seventh
consecutive quarterly improvement of operating margin performance compared
with the prior year; and
|
|
|
·
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At
quarter end, the company had $83.7 million of cash on its balance sheet
and $97.2 million of availability on its revolving line of
credit.
|
Net sales
for the second quarter were $293 million, down 2.6% compared with the prior
year’s second quarter. The company reported net income attributable
to La-Z-Boy Incorporated of $3.9 million, or $0.07 per share, compared with $6.0
million, or $0.11 per share in the fiscal 2010 second quarter. The
fiscal 2010 second-quarter results included a $0.01 per share restructuring
charge, primarily related to the consolidation of the company’s casegoods
facilities and the previously announced store closures within the company’s
retail segment.
Kurt L.
Darrow, President and Chief Executive Officer of La-Z-Boy, said, “While
macroeconomic challenges continue to impact the overall furniture industry, the
significant changes made to our cost structure have enabled La-Z-Boy to operate
profitably in the lower-volume environment. Importantly, with this
lower cost structure in place, we are focusing on initiatives to pave the way
for future growth and market share gains when the economy strengthens and
consumers are more inclined to purchase big-ticket items. While these
investments are presently impacting our earnings power, we believe they are
essential to positioning the company for the future. Specifically, we are
investing in the La-Z-Boy brand platform, research, technology and customer
care.”
Wholesale
Segments
For the
fiscal 2011 second quarter, sales in the company’s upholstery segment decreased
3.4% to $224.9 million compared with $232.8 million in the prior year’s second
quarter. The operating margin for the 2011 quarter was 7.6% compared
with 10.9% in last year’s comparable quarter. In the casegoods
segment, sales for the fiscal second quarter were $39.5 million, up 5.9% from
$37.3 million in the fiscal 2010 second quarter, and the segment’s operating
margin was 3.5% compared with (0.5%).
Darrow
commented, “In addition to overall lower volume levels, our upholstery revenues
for the period were also impacted by a change in our sales mix resulting in a
decrease in our average selling price. On the decline in volume, our
upholstery group’s operating margin of 7.6% continues to demonstrate the
effectiveness of the cellular production process implemented throughout the
company’s La-Z-Boy branded facilities. At the same time, the margin
for the quarter was impacted by higher raw material costs compared with last
year’s second quarter. Our raw material prices are moderating
somewhat and we anticipate smaller quarter-over-quarter changes in the second
half of fiscal 2011 versus the second half of fiscal
2010. Additionally, our Mexico cut-and-sew facility is not yet
delivering the magnitude of planned savings. The plant, which
continues to make significant progress on a monthly basis, is expected to
generate the estimated $15 million in cost savings, with the majority of the
benefit expected to be realized in fiscal 2012.
“Last
month at the High Point Furniture Market, we announced that Brooke Shields will
be featured in a comprehensive new brand platform, including an advertising
campaign to build awareness of La-Z-Boy’s wide range and selection of
comfortable and great-looking furniture. The campaign, targeted at the
female consumer, debuted last week across North America on cable television and
in print magazines, and will be prominently featured on our web site. We
are excited about our partnership with Brooke and believe she will be a credible
and inspiring brand ambassador to convey our message and have it resonate with
our target audience. This marketing initiative represents a clear example
of how our company is investing in its future through the strengthening and
broadening of our already leading brand.”
Darrow
added, “On the casegoods side of the business, we continued to make progress
with both our top line and operating margin. From a sales
perspective, we are in a better service position with our customers and are
increasing our floor space with many retailers. From an operational
perspective, the warehouse, plant and business unit consolidations implemented
last year continue to bear fruit. While the casegoods business
remains challenging, our team continues to work on further cost-efficiencies and
marketing initiatives while focusing on enhanced customer service, which we
believe to be of paramount importance in this environment.”
Retail
Segment
For the
quarter, retail sales were $39.2 million, up 3.2% compared with the prior-year
period. The retail group posted an operating loss of $4.4 million for
the quarter, and its operating margin was (11.1%) compared with a loss of $5.3
million or (13.9%) in last year’s second quarter. Darrow stated, “Our
retail group continues to make progress in decreasing its quarterly losses,
through continuous improvements in selling processes, expense controls and
marketing efficiencies, but is challenged by its lease expense to sales ratio in
the lower volume environment. For the quarter, we increased our close
ratio on lower traffic, although this was partially offset by a lower average
ticket, which is reflective of the consumer’s reluctance to make large furniture
purchases in this macroeconomic environment. Although we continue to identify
ways to decrease our cost structure, we are working to increase our gross
margins, drive traffic to the store system, increase the average ticket and
close ratio to drive our overall volume level, which has been the biggest
challenge over the course of the past year.”
La-Z-Boy Furniture
Galleries® Stores Network
System-wide,
for the second quarter of fiscal 2011, including company-owned and
independent-licensed stores, same-store written sales, which the company tracks
as an indicator of retail activity, were down 7.1%. Total written
sales, which include new and closed stores, were down 8.7%. At the
end of the second quarter, 305 stand-alone stores comprised the La-Z-Boy
Furniture Galleries® store system.
VIE Accounting and Internal
Control over Financial Reporting
La-Z-Boy
currently consolidates two variable interest entities (VIEs), which are owned by
independent dealers, in its consolidated financial statements. In
late August 2010, La-Z-Boy management determined there were errors relating to
inventory and corresponding inter-company accounts payable related to one of the
VIEs, and also determined that the accounting for lease expense, which requires
rent expense to be recorded on a straight-line basis over the life of the lease,
was not being followed for the VIEs.
The total
amount of the additional charge for the inventory-related items was
approximately $2.7 million, and the impact of the rent expense totaled about
$2.0 million, affecting years beginning in fiscal 2004. There was no
impact to the company’s net income attributable to La-Z-Boy Incorporated on a
per share basis for fiscal 2010 or 2011 related to these adjustments. Since the
corrections do not materially impact any of the previous periods affected, the
corrections, which relate to cost of sales, SG&A expenses, accumulated
depreciation, inventory, accrued rent and other accrued liabilities, will be
made through revisions of prior-period quarterly and annual financial statements
when they are next filed.
Management
concluded it did not maintain effective controls related to the accounting for
the Company's consolidated VIEs. Specifically, the company’s controls related to
the account analysis and consolidation process for the VIEs did not operate at
the same level of precision as the more rigorous controls used with
respect to the consolidation and analysis of the various company-owned
businesses in order for timely detection of any possible misstatements of the
consolidated financial statements. Accordingly, management has determined that
this control deficiency constitutes a material weakness.
Going
forward, the company’s internal controls relating to the VIEs will incorporate
the processes and financial reporting controls that have been established for
various company-owned businesses. Management believes that the
material weakness will be remediated by the end of fiscal 2011, subject to
testing as part of the Company's annual assessment of the effectiveness of
internal control over financial reporting.
Balance
Sheet
La-Z-Boy’s
debt-to-capitalization ratio was 11.6% compared with 13.4% a year ago and 11.8%
at the end of the fiscal 2011 first quarter. At the end of the fiscal
2011 second quarter, La-Z-Boy had $83.7 million in cash and $97.2 million of
availability under its revolving line of credit.
Business
Outlook
Darrow
stated, “Although we remain concerned about the macroeconomic environment with
consumer confidence and housing turnover remaining at low levels, we are making
moves to position La-Z-Boy to take full advantage of an upturn in consumer
spending for furniture. We have the strongest brand in the business and believe
our new marketing campaign, featuring Brooke Shields, and a targeted message
will enhance our market penetration and reach. Additionally, we are
making investments across other areas of the business which will strengthen our
operating platform to fuel growth and build market share while capitalizing on
our strong balance sheet and vast network of branded
distribution.”
Conference
Call
La-Z-Boy
will hold a conference call with the investment community on Tuesday, November
23, 2010, at 8:30 a.m. eastern time. The toll-free dial-in number is
877.407.0778; international callers may use 201.689.8565.
Forward-looking
Information
This news
release contains, and oral statements made from time to time by representatives
of La-Z-Boy may contain, “forward-looking statements.” With respect
to all forward-looking statements, we claim the protection of the safe harbor
for forward-looking statements contained in the Private Securities Litigation
Reform Act of 1995. Actual results could differ materially from those
we anticipate or project due to a number of factors, including: (a) changes in
consumer confidence and demographics; (b) speed of recovery from the recent
economic recession; (c) changes in the real estate and credit markets and their
effects on our customers and suppliers; (d) international political unrest,
terrorism or war; (e) continued energy and other commodity price changes; (f)
the impact of logistics on imports; (g) interest rate and currency exchange rate
changes; (h) operating factors, such as supply, labor or distribution
disruptions, product recalls or costs; (i) restructuring actions; (j) changes in
the domestic or international regulatory environment; (k) adopting new
accounting principles; (l) severe weather or other natural events such as
hurricanes, earthquakes and tornadoes; (m) our ability to procure fabric rolls
and leather hides or cut and sewn fabric and leather sets domestically or
abroad; (n) fluctuations in our stock price; (o) information technology system
failures; and (p) the matters discussed in Item 1A of our fiscal 2010 Annual
Report on Form 10-K and other factors identified from time-to-time in our
reports filed with the Securities and Exchange Commission. We undertake no
obligation to, and expressly disclaim any such obligation to, update or revise
any forward-looking statements, whether to reflect new information or new
developments 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 Securities and Exchange Commission, which is
available at: http://www.la-z-boy.com/About/Investor-Relations/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: http://www.la-z-boy.com/About/Investor-Relations/Email-Alerts/.
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 La-Z-Boy Upholstery Group
companies are Bauhaus, England and La-Z-Boy. The operating units in the
Casegoods Group consist of two groups, one including American Drew, Lea and
Hammary, and the second being Kincaid.
The
corporation’s proprietary distribution network is dedicated exclusively to
selling La-Z-Boy Incorporated products and brands, and includes 305 stand-alone
La-Z-Boy Furniture Galleries® stores and 532 independent Comfort Studios®, in
addition to in-store gallery programs for the company’s Kincaid, England and Lea
operating units. Additional information is available at http://www.la-z-boy.com/.
EXHIBIT
99.2
LA-Z-BOY
INCORPORATED
CONSOLIDATED
STATEMENT OF OPERATIONS
|
Second Quarter Ended
|
||||||||
|
(Unaudited, amounts in thousands, except per share
data)
|
10/23/10
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10/24/09
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||||||
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Sales
|
$ | 292,982 | $ | 300,707 | ||||
|
Cost
of sales
|
||||||||
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Cost
of goods sold
|
207,938 | 205,602 | ||||||
|
Restructuring
|
(62 | ) | 663 | |||||
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Total
cost of sales
|
207,876 | 206,265 | ||||||
|
Gross
profit
|
85,106 | 94,442 | ||||||
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Selling,
general and administrative
|
79,657 | 84,619 | ||||||
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Restructuring
|
110 | 520 | ||||||
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Operating
income
|
5,339 | 9,303 | ||||||
|
Interest
expense
|
592 | 831 | ||||||
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Interest
income
|
223 | 199 | ||||||
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Other
income (expense), net
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(418 | ) | 236 | |||||
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Earnings
before income taxes
|
4,552 | 8,907 | ||||||
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Income
tax expense
|
1,381 | 3,529 | ||||||
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Net
income
|
3,171 | 5,378 | ||||||
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Net
loss attributable to noncontrolling interests
|
774 | 588 | ||||||
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Net
income attributable to La-Z-Boy Incorporated
|
$ | 3,945 | $ | 5,966 | ||||
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Basic
average shares
|
51,855 | 51,527 | ||||||
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Basic
net income attributable to La-Z-Boy Incorporated per share
|
$ | 0.07 | $ | 0.11 | ||||
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Diluted
average shares
|
52,214 | 51,755 | ||||||
|
Diluted
net income attributable to La-Z-Boy Incorporated per share
|
$ | 0.07 | $ | 0.11 | ||||
Prior period amounts included in
these financial statements have been revised to incorporate all out-of-period
corrections.
LA-Z-BOY
INCORPORATED
CONSOLIDATED
STATEMENT OF OPERATIONS
|
Six Months Ended
|
||||||||
|
(Unaudited, amounts in thousands, except per share
data)
|
10/23/10
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10/24/09
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||||||
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Sales
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$ | 556,296 | $ | 563,378 | ||||
|
Cost
of sales
|
||||||||
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Cost
of goods sold
|
398,439 | 387,715 | ||||||
|
Restructuring
|
(83 | ) | 1,399 | |||||
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Total
cost of sales
|
398,356 | 389,114 | ||||||
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Gross
profit
|
157,940 | 174,264 | ||||||
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Selling,
general and administrative
|
153,976 | 162,535 | ||||||
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Restructuring
|
275 | 821 | ||||||
|
Operating
income
|
3,689 | 10,908 | ||||||
|
Interest
expense
|
1,182 | 1,811 | ||||||
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Interest
income
|
466 | 475 | ||||||
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Other
income (expense), net
|
(69 | ) | 837 | |||||
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Earnings
before income taxes
|
2,904 | 10,409 | ||||||
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Income
tax expense
|
675 | 3,526 | ||||||
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Net
income
|
2,229 | 6,883 | ||||||
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Net
loss attributable to noncontrolling interests
|
1,500 | 660 | ||||||
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Net
income attributable to La-Z-Boy Incorporated
|
$ | 3,729 | $ | 7,543 | ||||
|
Basic
average shares
|
51,820 | 51,503 | ||||||
|
Basic
net income attributable to La-Z-Boy Incorporated per share
|
$ | 0.07 | $ | 0.14 | ||||
|
Diluted
average shares
|
52,228 | 51,551 | ||||||
|
Diluted
net income attributable to La-Z-Boy Incorporated per share
|
$ | 0.07 | $ | 0.14 | ||||
Prior period amounts included in
these financial statements have been revised to incorporate all out-of-period
corrections.
LA-Z-BOY
INCORPORATED
CONSOLIDATED
BALANCE SHEET
|
(Unaudited, amounts in thousands)
|
10/23/10
|
04/24/10
|
||||||
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Current
assets
|
||||||||
|
Cash
and equivalents
|
$ | 83,656 | $ | 108,427 | ||||
|
Receivables,
net of allowance of $22,596 at 10/23/10 and $20,258 at
04/24/10
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168,974 | 165,001 | ||||||
|
Inventories,
net
|
140,703 | 132,480 | ||||||
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Deferred
income taxes – current
|
2,305 | 2,305 | ||||||
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Other
current assets
|
20,807 | 18,862 | ||||||
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Total
current assets
|
416,445 | 427,075 | ||||||
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Property,
plant and equipment, net
|
131,070 | 138,857 | ||||||
|
Trade
names
|
3,100 | 3,100 | ||||||
|
Deferred
income taxes – long-term
|
464 | 458 | ||||||
|
Other
long-term assets
|
35,442 | 38,293 | ||||||
|
Total
assets
|
$ | 586,521 | $ | 607,783 | ||||
|
Current
liabilities
|
||||||||
|
Current
portion of long-term debt
|
$ | 5,143 | $ | 1,066 | ||||
|
Accounts
payable
|
46,773 | 54,718 | ||||||
|
Accrued
expenses and other current liabilities
|
77,626 | 91,523 | ||||||
|
Total
current liabilities
|
129,542 | 147,307 | ||||||
|
Long-term
debt
|
40,522 | 46,917 | ||||||
|
Other
long-term liabilities
|
69,518 | 70,445 | ||||||
|
Contingencies
and commitments
|
— | — | ||||||
|
Equity
|
||||||||
|
La-Z-Boy
Incorporated shareholders’ equity:
|
||||||||
|
Common
shares, $1 par value
|
51,865 | 51,770 | ||||||
|
Capital
in excess of par value
|
200,772 | 201,873 | ||||||
|
Retained
earnings
|
114,213 | 106,466 | ||||||
|
Accumulated
other comprehensive loss
|
(19,285 | ) | (20,284 | ) | ||||
|
Total
La-Z-Boy Incorporated shareholders' equity
|
347,565 | 339,825 | ||||||
|
Noncontrolling
interests
|
(626 | ) | 3,289 | |||||
|
Total
equity
|
346,939 | 343,114 | ||||||
|
Total
liabilities and equity
|
$ | 586,521 | $ | 607,783 | ||||
Prior period amounts included in
these financial statements have been revised to incorporate all out-of-period
corrections.
LA-Z-BOY
INCORPORATED
CONSOLIDATED
STATEMENT OF CASH FLOWS
|
Second Quarter Ended
|
Six Months Ended
|
|||||||||||||||
|
(Unaudited, amounts in thousands)
|
10/23/10
|
10/24/09
|
10/23/10
|
10/24/09
|
||||||||||||
|
Cash
flows from operating activities
|
||||||||||||||||
|
Net
income
|
$ | 3,171 | $ | 5,378 | $ | 2,229 | $ | 6,883 | ||||||||
|
Adjustments
to reconcile net income to cash provided by (used for) operating
activities
|
||||||||||||||||
|
(Gain)
loss on sale of assets
|
127 | (75 | ) | 154 | (88 | ) | ||||||||||
|
Restructuring
|
48 | 1,183 | 192 | 2,220 | ||||||||||||
|
Provision
for doubtful accounts
|
974 | 2,152 | 1,888 | 4,514 | ||||||||||||
|
Depreciation
and amortization
|
5,658 | 6,300 | 11,464 | 12,575 | ||||||||||||
|
Stock-based
compensation expense
|
1,329 | 1,621 | 2,356 | 2,628 | ||||||||||||
|
Change
in receivables
|
(18,983 | ) | (26,460 | ) | (2,034 | ) | (17,538 | ) | ||||||||
|
Change
in inventories
|
(3,783 | ) | 3,956 | (12,790 | ) | 2,075 | ||||||||||
|
Change
in other assets
|
(3,232 | ) | 11,075 | (3,528 | ) | 6,045 | ||||||||||
|
Change
in payables
|
3,474 | 7,073 | (7,193 | ) | 4,747 | |||||||||||
|
Change
in other liabilities
|
4,486 | 10,025 | (11,558 | ) | 11,944 | |||||||||||
|
Change
in deferred taxes
|
(30 | ) | (8 | ) | 7 | — | ||||||||||
|
Total
adjustments
|
(9,932 | ) | 16,842 | (21,042 | ) | 29,122 | ||||||||||
|
Net
cash provided by (used for) operating activities
|
(6,761 | ) | 22,220 | (18,813 | ) | 36,005 | ||||||||||
|
Cash
flows from investing activities
|
||||||||||||||||
|
Proceeds
from disposals of assets
|
282 | 230 | 304 | 1,916 | ||||||||||||
|
Capital
expenditures
|
(2,552 | ) | (1,340 | ) | (4,987 | ) | (2,779 | ) | ||||||||
|
Purchases
of investments
|
(2,297 | ) | (1,338 | ) | (6,630 | ) | (2,537 | ) | ||||||||
|
Proceeds
from sales of investments
|
1,768 | 1,445 | 6,121 | 4,109 | ||||||||||||
|
Change
in restricted cash
|
— | — | — | 17,007 | ||||||||||||
|
Other
|
(31 | ) | 29 | (43 | ) | 14 | ||||||||||
|
Net
cash provided by (used for) investing activities
|
(2,830 | ) | (974 | ) | (5,235 | ) | 17,730 | |||||||||
|
Cash
flows from financing activities
|
||||||||||||||||
|
Proceeds
from debt
|
10,218 | 10,213 | 20,456 | 20,673 | ||||||||||||
|
Payments
on debt
|
(10,316 | ) | (10,408 | ) | (20,882 | ) | (32,567 | ) | ||||||||
|
Stock
issued from stock plans
|
34 | — | 58 | — | ||||||||||||
|
Net
cash used for financing activities
|
(64 | ) | (195 | ) | (368 | ) | (11,894 | ) | ||||||||
|
Effect
of exchange rate changes on cash and equivalents
|
310 | (347 | ) | 277 | (168 | ) | ||||||||||
|
Change
in cash and equivalents
|
(9,345 | ) | 20,704 | (24,139 | ) | 41,673 | ||||||||||
|
Cash
reduction upon deconsolidation of VIE
|
— | — | (632 | ) | — | |||||||||||
|
Cash
and equivalents at beginning of period
|
93,001 | 38,339 | 108,427 | 17,370 | ||||||||||||
|
Cash
and equivalents at end of period
|
$ | 83,656 | $ | 59,043 | $ | 83,656 | $ | 59,043 | ||||||||
|
Cash
paid (net of refunds) during period – income taxes
|
$ | 3,395 | $ | (13,348 | ) | $ | 5,856 | $ | (13,082 | ) | ||||||
|
Cash
paid during period – interest
|
$ | 538 | $ | 563 | $ | 1,075 | $ | 1,288 | ||||||||
Prior period amounts included in
these financial statements have been revised to incorporate all out-of-period
corrections.
LA-Z-BOY
INCORPORATED
SEGMENT
INFORMATION
|
Second Quarter Ended
|
Six Months Ended
|
|||||||||||||||
|
(Unaudited, amounts in thousands)
|
10/23/10
|
10/24/09
|
10/23/10
|
10/24/09
|
||||||||||||
|
Sales
|
||||||||||||||||
|
Upholstery
Group
|
$ | 224,878 | $ | 232,780 | $ | 426,812 | $ | 429,472 | ||||||||
|
Casegoods
Group
|
39,509 | 37,302 | 76,359 | 73,167 | ||||||||||||
|
Retail
Group
|
39,246 | 38,014 | 74,553 | 73,976 | ||||||||||||
|
VIEs
|
7,744 | 12,248 | 15,286 | 23,987 | ||||||||||||
|
Corporate
and Other
|
449 | 1,679 | 826 | 3,540 | ||||||||||||
|
Eliminations
|
(18,844 | ) | (21,316 | ) | (37,540 | ) | (40,764 | ) | ||||||||
|
Consolidated
Sales
|
$ | 292,982 | $ | 300,707 | $ | 556,296 | $ | 563,378 | ||||||||
|
Operating
Income (Loss)
|
||||||||||||||||
|
Upholstery
Group
|
$ | 17,055 | $ | 25,328 | $ | 27,112 | $ | 41,051 | ||||||||
|
Casegoods
Group
|
1,376 | (184 | ) | 2,951 | (305 | ) | ||||||||||
|
Retail
Group
|
(4,360 | ) | (5,301 | ) | (9,284 | ) | (10,969 | ) | ||||||||
|
VIEs
|
(1,104 | ) | (933 | ) | (2,712 | ) | (1,126 | ) | ||||||||
|
Corporate
and Other
|
(7,580 | ) | (8,424 | ) | (14,186 | ) | (15,523 | ) | ||||||||
|
Restructuring
|
(48 | ) | (1,183 | ) | (192 | ) | (2,220 | ) | ||||||||
|
Consolidated
Operating Income
|
$ | 5,339 | $ | 9,303 | $ | 3,689 | $ | 10,908 | ||||||||
Prior period amounts included in
these financial statements have been revised to incorporate all out-of-period
corrections.