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
|
February 17, 2009
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|
(Date
of Report (Date of Earliest Event
Reported))
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LA-Z-BOY INCORPORATED
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(Exact
name of registrant as specified in its
charter)
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MICHIGAN
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1-9656
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38-0751137
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||
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(State
or other jurisdiction of
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(Commission
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(IRS
Employer
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||
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incorporation)
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File
Number)
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Indentification
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)
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Zip
Code
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Registrant's
telephone number, including area code (734)
242-1444
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None
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(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
February 17, 2009, La-Z-Boy Incorporated issued a press release to report the
company’s financial results for the quarter ended January 24, 2009. A copy of
the press 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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Press
Release Dated February 17, 2009
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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
(Registrant)
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Date:
February 17, 2009
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BY: /S/ Margaret L. Mueller
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|||
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Margaret
L. Mueller
Corporate
Controller
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EXHIBIT
99.1
NEWS
RELEASE
Contact: Kathy
Liebmann
(734)
241-2438
kathy.liebmann@la-z-boy.com
LA-Z-BOY REPORTS FISCAL 2009
THIRD-QUARTER RESULTS
MONROE,
MI. February 17, 2009—La-Z-Boy Incorporated (NYSE: LZB) today
reported its operating results for the fiscal third quarter ended January 24,
2009.
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·
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Net
sales for the period were $288.6 million, down 23% compared with the prior
year’s third quarter, reflecting ongoing demand challenges in a difficult
macroeconomic environment.
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|
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·
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The
company generated $28.0 million in cash from operations, including $8.1
million in anti-dumping duties received on bedroom furniture imported from
China.
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|
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·
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La-Z-Boy
paid down its debt by $27.8 million to $90.4 million. Over the
past 12 months, the company decreased its total debt by $60.2 million, or
by 40%.
|
|
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·
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Including
the charges highlighted below, the company posted a net loss of $64.4
million, or a loss of $1.25 per share. This includes various
non-cash accounting charges which impacted the company’s results for the
quarter. They included an intangible write-down of $46.0
million and a $7.0 million impairment of property, plant and equipment,
reflecting the continued weakness in the financial markets and the impact
of the current economy on our business, which caused the company’s market
capitalization to fall below its book value and triggered the requirement
to test the valuation of the company’s long-lived
assets.
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Selected
non-cash items increasing/(decreasing) operating income (loss):
|
Three
months ended
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Nine
months ended
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|||||||||||||||
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Jan.
24,
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Jan.
26,
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Jan.
24,
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Jan.
26,
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|||||||||||||
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2009
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2008
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2009
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2008
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|||||||||||||
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Adjusted
operating income (loss)
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$ | (5,397 | ) | $ | 5,911 | $ | (22,405 | ) | $ | (3,431 | ) | |||||
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Restructuring
- non-cash portion
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(441 | ) | (71 | ) | (1,908 | ) | (335 | ) | ||||||||
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Provision
for bad debts
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(9,439 | ) | (2,754 | ) | (18,439 | ) | (6,373 | ) | ||||||||
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Impairment
of Intangible assets
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(45,977 | ) | - | (47,677 | ) | (5,809 | ) | |||||||||
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Impairment
of P, P & E
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(7,036 | ) | - | (7,036 | ) | - | ||||||||||
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Operating
income (loss) - as reported
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$ | (68,290 | ) | $ | 3,086 | $ | (97,465 | ) | $ | (15,948 | ) | |||||
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·
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Due
to market conditions, in the fiscal 2009 third quarter, the company had
$5.1 million in write-downs of investments. In the prior year’s
quarter, it had $3.5 million of gains on the sale of
investments.
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|
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·
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In
the prior year’s third quarter, La-Z-Boy reported net income of $9.5
million, or $0.18 per share, which included income per share of $0.09
after tax related to anti-dumping duties received on bedroom furniture
imported from China.
|
Kurt L.
Darrow, La-Z-Boy’s President and Chief Executive Officer, said: “In what remains
an extraordinarily challenging demand environment for furniture, on a 23%, or
$85 million, sales decline, we limited our adjusted operating loss to $5.4
million, reflecting the many structural changes we have made to our
business. Importantly, in the third quarter, we generated cash from
operations, reduced our debt, improved our liquidity, reduced our retail losses
and maintained our focus on strategic projects.
“We are
managing our business aggressively. In November, we reacted quickly and
decisively to the rapid deterioration in sales trends experienced during
October, and, we have continued to make changes to the business model on a
monthly basis to align our operating platform with order
trends. Since November, we removed approximately $60 million in
structural costs on an annual basis from our operations in the form of personnel
reductions, the closure of a Bauhaus upholstery manufacturing facility, changes
to our employee benefit plans and other cost reductions across the entire
company. Compared with year-ago levels, our employment has decreased
by 24%, or approximately 2,500 people.”
Darrow
continued, “With the objective of strengthening and improving our operating
structure, over the past four years, we have invested in modernizing our
manufacturing facilities, upgrading our proprietary store program, and improving
our Information Technology platform. Currently, we are in the process
of completing our structural improvement projects, including our Mexican
cut-and-sew center and our regional distribution centers to serve both
company-owned and dealer stores. Most importantly, as a result of the
strategic investments we have made, we are operating with a new and competitive
infrastructure, which allows us to function more efficiently. We
will continue to make whatever operating improvements are necessary to ensure
that we thrive within the difficult macroeconomic environment. Going
forward, we will require minimal near-term capital expenditures, which will
improve our cash flow.
Wholesale
Segments
For the
fiscal 2009 third quarter, sales in the company’s upholstery segment decreased
30% to $199.2 million compared with $282.5 million in the prior year’s third
quarter. The segment’s operating margin was (1.0%). In the
casegoods segment, sales for the fiscal third quarter were $42.1 million, down
20% from $52.7 million in the prior year’s third quarter. The
segment’s operating margin decreased to (0.7%) from 4.2% in last year’s
comparable period.
During
the quarter, La-Z-Boy shifted the reporting of its retail warehouse operations
to the upholstery segment to garner greater efficiencies as the warehouse
operations have been expanded to service some independent dealers through the
company-operated warehouse system. This reporting change affected the
timing of inter-company revenue and profit recognition for the Upholstery
Group. This resulted in a reduction in inter-company sales and operating
income for the Upholstery Group of $12.1 million and $3.3 million, respectively,
with corresponding offsets recorded in consolidation. The adjustments did not
affect the Company's consolidated operating results.
Darrow
commented, “With a significant decline in volume for the quarter, without the
one-time adjustment to sales and operating income that impacted the segment, the
upholstery operation would have been profitable, reflecting the improvements we
have made to our operating structure, particularly those derived from cellular
manufacturing. Additionally, most of the bad debt charge for the
quarter resided in the upholstery group, further affecting its
results. Going forward, we expect to see further progress in the
segment’s performance with an increasing number of custom-order cut-and-sewn
kits coming from Mexico. We are pleased to report we opened the
Mexican cut-and-sew facility last month on time and on budget.”
Darrow
continued, “Our casegoods segment’s business model is predicated upon the
ability to deliver products in two weeks or less. As retail demand
slowed during the quarter, we experienced cancellations or postponements of
orders from large dealers and reluctance to purchase stock
inventory. As a result of the 20% decline in sales experienced during
the quarter, the casegoods segment operated essentially at a break–even
level. Moving forward, our team is continuing to work on a smaller
but more productive product line and align the cost structure of the business to
the current economic challenges.”
For the
fiscal 2009 third quarter, the La-Z-Boy Furniture Galleries® store system, which
includes both company-owned and independent-licensed stores, opened two new
stores, relocated and/or remodeled three and closed four, bringing the total
store count to 328, of which 223 are in the New Generation
format. For the fourth quarter of fiscal 2009, the
network plans to open three New Generation format La-Z-Boy Furniture Galleries®
stores (one remodeled store and two relocations) and anticipates closing
10.
Darrow
added, “Last November, we announced that 15 to 20 La-Z-Boy Furniture Galleries®
stores, principally independently owned, would close. To date, 15
stores, located primarily in the southeast Michigan, California and Florida
markets, have already closed or are in the process of a store closing
sale. Additionally, in several instances, certain independent dealers
in nearby markets have taken on some of these locations. While
the closure of stores will impact our volumes, it is prudent to make these moves
to allocate resources to more productive stores in the system in what continues
to be a tight credit environment.”
During
the quarter, the company incurred a charge of $9.4 million for bad debts,
reflecting the continued weak retail environment, particularly in Florida,
Michigan and the West Coast markets.
System-wide,
for the fiscal 2009 third quarter, including company-owned and
independent-licensed stores, same-store written sales, which the company tracks
as an indicator of retail activity, were down 12.4%. Total written
sales, which include new and closed stores, were down 14.5%.
Retail
For the
quarter, retail sales were $40.5 million, down 19% compared with the prior-year
period. The retail group posted an operating loss for the quarter,
and its operating margin was (17.6%). Darrow stated, “The
macroeconomic challenges pervasive throughout our industry are magnified in our
retail operation. Our new Chief Retail Officer, Mark Bacon, and his
team are making significant changes to the business platform to improve our
performance and we have already seen some positive results due to more effective
advertising programs, the change in our warehouse structure and improved gross
margins. For the quarter, on significantly lower volume, we decreased
our operating loss by $1.4 million compared with last year’s third
quarter. We will continue to evaluate best demonstrated practices to
operate the stores more efficiently and improve our performance despite this
difficult sales environment.”
Intangibles and Long-Lived
Asset Impairment
Due to
the continued weakness in the financial and credit markets and the impact of
economic conditions on our business, La-Z-Boy’s market capitalization fell below
its book value and triggered the requirement to test the valuation of its
intangible assets before year end when it normally performs its annual
testing. The result was a significant impairment of the company’s
goodwill and trade name valuations, principally from acquisitions made years ago
when economic conditions were very different. Consequently, the
company was required to take a non-cash write-down of $46 million on its
intangible assets. In addition, we recorded a $7 million write-down
of long-lived assets relating to buildings and leasehold improvements of some of
our retail stores.
Balance
Sheet
At the
end of the fiscal 2009 third quarter, the company’s debt-to-capitalization ratio
was 22.0% compared with 24.8% a year ago and 23.5% at the end of the second
quarter. Although the company paid down its debt by $27.8 million in the third
quarter, the debt-to-capitalization ratio was impacted by the change in
shareholders’ equity, driven primarily by the write-down of intangible
assets. During the quarter, the company’s accounts receivables
decreased $43.4 million, net of write-downs, to $153.4 million, and its accounts
payable decreased by $8.5 million to $49.8 million. Inventories
increased to $172.3 million from $167.1 million, reflecting the long lead times
associated with foreign sourcing and the orders placed before October when
consumer demand was significantly curtailed. The company
plans to decrease its inventory by 10% during the fourth quarter.
Dividend
Given the
continued challenges of the business environment coupled with limited visibility
as to when the economy will improve, the company believes it prudent to conserve
cash and increase its financial flexibility. Accordingly, it made the
decision to suspend the quarterly dividend to shareholders.
Conference
Call
La-Z-Boy
will hold a conference call with the investment community on Wednesday, 18
February 2009, 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
Any
forward-looking statements contained in this news release are based on current
information and assumptions and represent management’s best judgment at the
present time. Actual results could differ materially from those anticipated or
projected due to a number of factors. These factors include, but are not limited
to: (a) changes in consumer confidence; (b) changes in demographics; (c) further
changes in residential housing and commercial real estate market; (d) the impact
of terrorism or war; (e) continued energy and other commodity price changes; (f)
the impact of logistics on imports; (g) the impact of interest rate changes; (h)
changes in currency exchange rates; (i) competitive factors; (j) operating
factors, such as supply, labor or distribution disruptions including changes in
operating conditions or costs; (k) effects of restructuring actions; (l) changes
in the domestic or international regulatory environment; (m) ability to
implement global sourcing organization strategies; (n) continued economic
recession and decline in the equity market; (o) the impact of adopting new
accounting principles; (p) the impact from natural events such as hurricanes,
earthquakes and tornadoes; (q) the ability to procure fabric rolls and leather
hides or cut and sewn fabric and leather sets domestically or abroad; (r)
continued decline in the credit market and potential impacts on our customers
and suppliers; (s) unanticipated labor/industrial actions (t) those matters
discussed in Item 1A of our fiscal 2008 Annual Report and factors relating to
acquisitions and other factors identified from time to time in our reports filed
with the Securities and Exchange Commission. We undertake no obligation to
update or revise any forward-looking statements, either to reflect 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/investorRelations/sec_filings.aspx. 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/investorRelations/IR_email_alerts.aspx.
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 La-Z-Boy Casegoods Group
companies are American Drew/Lea, Hammary and Kincaid.
The
corporation’s proprietary distribution network is dedicated exclusively to
selling La-Z-Boy Incorporated products and brands, and includes 328 stand-alone
La-Z-Boy Furniture Galleries® stores and 449 Comfort Studios, in addition to
in-store gallery programs at the company’s Kincaid, England and Lea operating
units. According to industry trade publication In Furniture, the La-Z-Boy
Furniture Galleries retail network is North America’s largest single-brand
furniture retailer. Additional information is available at http://www.la-z-boy.com/.
EXHIBIT
99.2
LA-Z-BOY
INCORPORATED
CONSOLIDATED
STATEMENT OF OPERATIONS
|
Third
Quarter Ended
|
||||||||
|
(Unaudited,
amounts in thousands, except per share data)
|
01/24/09
|
01/26/08
|
||||||
|
Sales
|
$ | 288,576 | $ | 373,081 | ||||
|
Cost
of sales
|
||||||||
|
Cost
of goods sold
|
207,356 | 265,078 | ||||||
|
Restructuring
|
1,664 | (632 | ) | |||||
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Total
cost of sales
|
209,020 | 264,446 | ||||||
|
Gross
profit
|
79,556 | 108,635 | ||||||
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Selling,
general and administrative
|
94,092 | 104,672 | ||||||
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Write-down
of long-lived assets
|
7,036 | — | ||||||
|
Write-down
of intangibles
|
45,977 | — | ||||||
|
Restructuring
|
741 | 877 | ||||||
|
Operating
income (loss)
|
(68,290 | ) | 3,086 | |||||
|
Interest
expense
|
1,386 | 2,148 | ||||||
|
Interest
income
|
323 | 1,134 | ||||||
|
Income
from Continued Dumping and Subsidy Offset Act, net
|
8,124 | 7,147 | ||||||
|
Other
income (expense), net
|
(7,433 | ) | 3,785 | |||||
|
Income
(loss) from continuing operations before income taxes
|
(68,662 | ) | 13,004 | |||||
|
Income
tax (benefit) expense
|
(4,280 | ) | 3,876 | |||||
|
Income
(loss) from continuing operations
|
(64,382 | ) | 9,128 | |||||
|
Income
from discontinued operations (net of tax)
|
— | 384 | ||||||
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Net
income (loss)
|
$ | (64,382 | ) | $ | 9,512 | |||
|
Basic
average shares
|
51,475 | 51,417 | ||||||
|
Basic
income (loss) from continuing operations per share
|
$ | (1.25 | ) | $ | 0.18 | |||
|
Discontinued
operations per share (net of tax)
|
— | 0.01 | ||||||
|
Basic
net income (loss) per share
|
$ | (1.25 | ) | $ | 0.19 | |||
|
Diluted
average shares
|
51,475 | 51,590 | ||||||
|
Diluted
income (loss) from continuing operations per share
|
$ | (1.25 | ) | $ | 0.18 | |||
|
Discontinued
operations per share (net of tax)
|
— | — | ||||||
|
Diluted
net income (loss) per share
|
$ | (1.25 | ) | $ | 0.18 | |||
|
Dividends
paid per share
|
$ | 0.02 | $ | 0.12 | ||||
LA-Z-BOY
INCORPORATED
CONSOLIDATED
STATEMENT OF OPERATIONS
|
Nine
Months Ended
|
||||||||
|
(Unaudited,
amounts in thousands, except per share data)
|
01/24/09
|
01/26/08
|
||||||
|
Sales
|
$ | 942,176 | $ | 1,082,911 | ||||
|
Cost
of sales
|
||||||||
|
Cost
of goods sold
|
685,151 | 790,879 | ||||||
|
Restructuring
|
9,696 | 2,447 | ||||||
|
Total
cost of sales
|
694,847 | 793,326 | ||||||
|
Gross
profit
|
247,329 | 289,585 | ||||||
|
Selling,
general and administrative
|
287,873 | 297,278 | ||||||
|
Write-down
of long-lived assets
|
7,036 | — | ||||||
|
Write-down
of intangibles
|
47,677 | 5,809 | ||||||
|
Restructuring
|
2,208 | 2,446 | ||||||
|
Operating
loss
|
(97,465 | ) | (15,948 | ) | ||||
|
Interest
expense
|
4,532 | 6,365 | ||||||
|
Interest
income
|
1,885 | 3,039 | ||||||
|
Income
from Continued Dumping and Subsidy Offset Act, net
|
8,124 | 7,147 | ||||||
|
Other
income (expense), net
|
(7,974 | ) | 4,701 | |||||
|
Loss
from continuing operations before income taxes
|
(99,962 | ) | (7,426 | ) | ||||
|
Income
tax expense (benefit)
|
26,708 | (4,359 | ) | |||||
|
Loss
from continuing operations
|
(126,670 | ) | (3,067 | ) | ||||
|
Loss
from discontinued operations (net of tax)
|
— | (6,050 | ) | |||||
|
Net
loss
|
$ | (126,670 | ) | $ | (9,117 | ) | ||
|
Basic
average shares
|
51,454 | 51,402 | ||||||
|
Basic
loss from continuing operations per share
|
$ | (2.46 | ) | $ | (0.06 | ) | ||
|
Discontinued
operations per share (net of tax)
|
— | (0.12 | ) | |||||
|
Basic
net loss per share
|
$ | (2.46 | ) | $ | (0.18 | ) | ||
|
Diluted
average shares
|
51,454 | 51,402 | ||||||
|
Diluted
loss from continuing operations per share
|
$ | (2.46 | ) | $ | (0.06 | ) | ||
|
Discontinued
operations per share (net of tax)
|
— | (0.12 | ) | |||||
|
Diluted
net loss per share
|
$ | (2.46 | ) | $ | (0.18 | ) | ||
|
Dividends
paid per share
|
$ | 0.10 | $ | 0.36 | ||||
LA-Z-BOY
INCORPORATED
CONSOLIDATED
BALANCE SHEET
|
(Unaudited,
amounts in thousands)
|
01/24/09
|
04/26/08
|
||||||
|
Current
assets
|
||||||||
|
Cash
and equivalents
|
$ | 18,686 | $ | 14,982 | ||||
|
Receivables,
net of allowance of $31,045 in 2009 and $17,942 in 2008
|
153,401 | 200,422 | ||||||
|
Inventories,
net
|
172,259 | 178,361 | ||||||
|
Deferred
income taxes—current
|
3,397 | 12,398 | ||||||
|
Other
current assets
|
25,458 | 21,325 | ||||||
|
Total
current assets
|
373,201 | 427,488 | ||||||
|
Property,
plant and equipment, net
|
156,341 | 171,001 | ||||||
|
Deferred
income taxes—long term
|
1,292 | 26,922 | ||||||
|
Goodwill
|
5,097 | 47,233 | ||||||
|
Trade
names
|
3,100 | 9,006 | ||||||
|
Other
long-term assets, net of allowance of $4,723 in 2009 and $2,801 in
2008
|
66,912 | 87,220 | ||||||
|
Total
assets
|
$ | 605,943 | $ | 768,870 | ||||
|
Current
liabilities
|
||||||||
|
Current
portion of long-term debt
|
$ | 9,547 | $ | 4,792 | ||||
|
Accounts
payable
|
49,821 | 56,421 | ||||||
|
Accrued
expenses and other current liabilities
|
89,263 | 102,700 | ||||||
|
Total
current liabilities
|
148,631 | 163,913 | ||||||
|
Long-term
debt
|
80,828 | 99,578 | ||||||
|
Deferred
income taxes—long term
|
3,995 | — | ||||||
|
Other
long-term liabilities
|
52,121 | 54,783 | ||||||
|
Shareholders'
equity
|
||||||||
|
Common
shares, $1 par value
|
51,478 | 51,428 | ||||||
|
Capital
in excess of par value
|
204,735 | 209,388 | ||||||
|
Retained
earnings
|
65,693 | 190,215 | ||||||
|
Accumulated
other comprehensive loss
|
(1,538 | ) | (435 | ) | ||||
|
Total
shareholders' equity
|
320,368 | 450,596 | ||||||
|
Total
liabilities and shareholders' equity
|
$ | 605,943 | $ | 768,870 | ||||
LA-Z-BOY
INCORPORATED
CONSOLIDATED
STATEMENT OF CASH FLOWS
|
Third
Quarter Ended
|
Nine
Months Ended
|
|||||||||||||||
|
(Unaudited,
amounts in thousands)
|
01/24/09
|
01/26/08
|
01/24/09
|
01/26/08
|
||||||||||||
|
Cash
flows from operating activities
|
||||||||||||||||
|
Net
income (loss)
|
$ | (64,382 | ) | $ | 9,512 | $ | (126,670 | ) | $ | (9,117 | ) | |||||
|
Adjustments
to reconcile net income (loss) to cash provided by operating
activities
|
||||||||||||||||
|
Gain
on sale of assets
|
(37 | ) | — | (2,707 | ) | — | ||||||||||
|
(Gain)
loss on the sale of discontinued operations (net of tax)
|
— | (96 | ) | — | 3,894 | |||||||||||
|
Write-down
of businesses held for sale (net of tax)
|
— | — | — | 2,159 | ||||||||||||
|
Write-down
of long-lived assets
|
7,036 | — | 7,036 | — | ||||||||||||
|
Write-down
of intangibles
|
45,977 | — | 47,677 | 5,809 | ||||||||||||
|
Write-down
of investments
|
5,140 | — | 5,140 | — | ||||||||||||
|
Restructuring
|
2,405 | 245 | 11,904 | 4,893 | ||||||||||||
|
Provision
for doubtful accounts
|
9,439 | 2,754 | 18,439 | 6,373 | ||||||||||||
|
Depreciation
and amortization
|
5,827 | 6,193 | 17,770 | 18,506 | ||||||||||||
|
Stock-based
compensation expense
|
1,012 | 1,303 | 2,867 | 3,165 | ||||||||||||
|
Change
in receivables
|
31,405 | 53 | 23,314 | 9,241 | ||||||||||||
|
Change
in inventories
|
(3,463 | ) | 8,645 | 7,380 | 17,897 | |||||||||||
|
Change
in payables
|
(8,351 | ) | 9,161 | (6,424 | ) | (5,107 | ) | |||||||||
|
Change
in other assets and liabilities
|
640 | 147 | (25,885 | ) | (18,650 | ) | ||||||||||
|
Change
in deferred taxes
|
(4,658 | ) | 3,676 | 38,180 | (2,470 | ) | ||||||||||
|
Total
adjustments
|
92,372 | 32,081 | 144,691 | 45,710 | ||||||||||||
|
Net
cash provided by operating activities
|
27,990 | 41,593 | 18,021 | 36,593 | ||||||||||||
|
Cash
flows from investing activities
|
||||||||||||||||
|
Proceeds
from disposals of assets
|
45 | 456 | 7,831 | 7,738 | ||||||||||||
|
Proceeds
from sale of discontinued operations
|
— | 150 | — | 4,169 | ||||||||||||
|
Capital
expenditures
|
(4,089 | ) | (5,239 | ) | (14,079 | ) | (20,838 | ) | ||||||||
|
Purchases
of investments
|
(1,630 | ) | (15,807 | ) | (10,595 | ) | (29,077 | ) | ||||||||
|
Proceeds
from sales of investments
|
10,854 | 15,649 | 21,881 | 30,242 | ||||||||||||
|
Change
in other long-term assets
|
(575 | ) | 1,701 | (346 | ) | 2,086 | ||||||||||
|
Net
cash provided by (used for) investing activities
|
4,605 | (3,090 | ) | 4,692 | (5,680 | ) | ||||||||||
|
Cash
flows from financing activities
|
||||||||||||||||
|
Proceeds
from debt
|
15,992 | 574 | 55,458 | 1,391 | ||||||||||||
|
Payments
on debt
|
(43,752 | ) | (974 | ) | (69,039 | ) | (2,212 | ) | ||||||||
|
Stock
issued/canceled for stock and employee benefit plans
|
— | (13 | ) | — | (129 | ) | ||||||||||
|
Dividends
paid
|
(1,037 | ) | (6,229 | ) | (5,188 | ) | (18,670 | ) | ||||||||
|
Net
cash used for financing activities
|
(28,797 | ) | (6,642 | ) | (18,769 | ) | (19,620 | ) | ||||||||
|
Effect
of exchange rate changes on cash and equivalents
|
(228 | ) | (1,378 | ) | (871 | ) | 161 | |||||||||
|
Change
in cash and equivalents
|
3,570 | 30,483 | 3,073 | 11,454 | ||||||||||||
|
Cash
and equivalents at beginning of period
|
15,116 | 32,692 | 15,613 | 51,721 | ||||||||||||
|
Cash
and equivalents at end of period
|
$ | 18,686 | $ | 63,175 | $ | 18,686 | $ | 63,175 | ||||||||
|
Cash
paid (net of refunds) during period – income taxes
|
$ | (660 | ) | $ | (4,336 | ) | $ | (456 | ) | $ | (443 | ) | ||||
|
Cash
paid during period - interest
|
$ | 1,337 | $ | 2,652 | $ | 3,750 | $ | 6,057 | ||||||||
LA-Z-BOY
INCORPORATED
SEGMENT
INFORMATION
|
Third
Quarter Ended
|
Nine
Months Ended
|
|||||||||||||||
|
(Unaudited,
amounts in thousands)
|
01/24/09
(13
weeks)
|
01/26/08
(13
weeks)
|
01/24/09
(39
weeks)
|
01/26/08
(39
weeks)
|
||||||||||||
|
Sales
|
||||||||||||||||
|
Upholstery
Group
|
$ | 199,200 | $ | 282,453 | $ | 684,252 | $ | 806,959 | ||||||||
|
Casegoods
Group
|
42,116 | 52,660 | 138,710 | 165,126 | ||||||||||||
|
Retail
Group
|
40,497 | 49,884 | 122,408 | 141,278 | ||||||||||||
|
VIEs/Eliminations
|
6,763 | (11,916 | ) | (3,194 | ) | (30,452 | ) | |||||||||
|
Consolidated
|
$ | 288,576 | $ | 373,081 | $ | 942,176 | $ | 1,082,911 | ||||||||
|
Operating
income (loss)
|
||||||||||||||||
|
Upholstery
Group
|
$ | (1,938 | ) | $ | 19,467 | $ | 16,037 | $ | 47,370 | |||||||
|
Casegoods
Group
|
(313 | ) | 2,222 | 1,819 | 8,399 | |||||||||||
|
Retail
Group
|
(7,108 | ) | (8,507 | ) | (27,509 | ) | (27,700 | ) | ||||||||
|
Corporate
and Other*
|
(3,513 | ) | (9,851 | ) | (21,195 | ) | (33,315 | ) | ||||||||
|
Long-lived
asset write-down
|
(7,036 | ) | — | (7,036 | ) | — | ||||||||||
|
Intangible
write-down
|
(45,977 | ) | — | (47,677 | ) | (5,809 | ) | |||||||||
|
Restructuring
|
(2,405 | ) | (245 | ) | (11,904 | ) | (4,893 | ) | ||||||||
|
Consolidated
|
$ | (68,290 | ) | $ | 3,086 | $ | (97,465 | ) | $ | (15,948 | ) | |||||
*Variable
Interest Entities ("VIEs") are included in corporate and other.