SEC Filing | La-Z-Boy Incorporated

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:

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¨	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 June 14, 2010, La-Z-Boy Incorporated issued a press release to report the company’s financial results for the fourth quarter and full year ended April 24, 2010. 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
99.1	Press Release Dated June 14, 2010
99.2	Unaudited financial schedules

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.

LA-Z-BOY INCORPORATED

(Registrant)

Date: June 14, 2010

BY: /S/ Margaret L. Mueller

Margaret L. Mueller

Corporate Controller

Unassociated Document

EXHIBIT 99.1

NEWS RELEASE

Contact: Kathy Liebmann

(734) 241-2438

kathy.liebmann@la-z-boy.com

LA-Z-BOY REPORTS FOURTH-QUARTER AND FULL-YEAR PROFIT

MONROE, MI. June 14, 2010—La-Z-Boy Incorporated (NYSE: LZB) today reported its operating results for the fiscal fourth quarter and full year ended April 24, 2010.

Fiscal 2010 fourth-quarter highlights:

Net income attributable to La-Z-Boy Incorporated was $0.26 per share, including a $0.01 per share restructuring charge and income of $0.04 related to a reversal of valuation reserves on deferred taxes;

Consolidated sales increased 9.2%, led by a double-digit increase in the company’s upholstery group;

The upholstery segment posted an 11.9% operating margin;

The retail segment’s performance continued to improve, with the operating loss reduced by 36%, or $2.6 million; and

The company generated $31 million in cash from operating activities.

Fiscal 2010 full-year highlights:

Net income attributable to La-Z-Boy Incorporated was $0.62 per share, including a $0.04 per share restructuring charge, income of $0.04 related to a reversal of valuation reserves on deferred taxes, and income of $0.05 per share in anti-dumping duties received on wood bedroom furniture imported from China;

Consolidated sales decreased by 3.9% compared with fiscal 2009;

The upholstery segment posted a 10.7% operating margin;

The retail segment’s performance improved, with the operating loss reduced by 43%, or $15 million from last year’s level;

The company generated $89.7 million in cash from operating activities; and

The company increased its cash position to $108.4 million and reduced its total debt by $12.9 million to $48.0 million at year end.

Net sales for the fourth quarter were $310.7 million, up 9.2% compared with the prior year’s fourth quarter. The company reported income attributable to La-Z-Boy Incorporated of $13.7 million, or $0.26 per share, compared with $5.2 million, or $0.10 per share, in the fourth quarter of fiscal 2009. The fiscal 2010 fourth-quarter results include a $0.01 per share restructuring charge, primarily related to costs associated with the consolidation of the company’s casegoods facilities, and income of $0.04 related to a reversal of valuation reserves on deferred taxes. The company’s 2009 fourth-quarter results include a $0.01 per share impairment of long-lived assets related to the company’s retail operation, a $0.01 restructuring charge, primarily related to store closures within the company’s retail segment and a $0.05 tax benefit.

For the full fiscal 2010 year, La-Z-Boy Incorporated reported sales of $1.2 billion, down 3.9% from the prior-year period. The company reported income attributable to La-Z-Boy Incorporated of $32.5 million, or $0.62 per share, versus a loss of $122.7 million, or a loss of $2.39 per share. The 2010 full-year results include a $0.04 per-share restructuring charge related to the consolidation of the company’s casegoods facility as well as costs associated with the previously announced store closures in the company’s retail segment, income of $0.04 per share related to a reversal of valuation reserves on deferred taxes and income of $0.05 per share in anti-dumping duties received on wood bedroom furniture imported from China.

The 2009 full-year results were impacted negatively by charges totaling $1.08 per share for asset impairments and restructuring net of $0.16 per share in income related to anti-dumping monies received on bedroom furniture imported from China. The company’s fiscal 2009 full-year results also include a non-cash $0.74 per-share charge recognized in the second quarter for a valuation allowance against the company’s deferred tax assets.

Kurt L. Darrow, President and Chief Executive Officer of La-Z-Boy, said, “Our results for the quarter and full year reflect the success of the many strategic initiatives implemented over the course of the last several years combined with a focus to ensure our cost structure is in line with order flow. Our manufacturing operations are governed by lean principles, we are focused on building the La-Z-Boy brand, the core growth engine of the company, and are working to strengthen the performance of our retail segment. Additionally, we have managed our balance sheet aggressively, by reducing our total debt to $48 million while increasing our cash position to $108.4 million, to ensure we have the greatest financial flexibility. While challenges still remain, we believe that today La-Z-Boy Incorporated is well positioned to not only compete in this environment, but to grow profitably.”

Wholesale Segments

For the fiscal 2010 fourth quarter, sales in the company’s upholstery segment increased 12.2% to $241.1 million compared with $215.0 million in the prior year’s fourth quarter. The segment’s operating margin increased to 11.9% for the quarter and, for the year, on relatively flat volume, the operating margin was 10.7%. Sales in the casegoods segment for the fourth quarter decreased 4.5% to $37.5 million and the segment’s operating margin was (0.6%). For the year, the casegoods operation posted a small operating loss, with a margin of (0.2%), on a 17.6% sales decline.

Darrow stated, “The performance in our upholstery segment was largely fueled by the cellular production process that we implemented throughout our La-Z-Boy branded facilities. Although a capital-intensive and lengthy undertaking over a three-year period, it has enhanced the efficiencies of our operations, even in the lower volume environment in which we are operating. In addition to the lower cost structure associated with the cellular production process, our throughput and quality are better, enabling us to deliver custom furniture to the consumer more quickly, a key differentiator for our company in the marketplace. Further, we have substantially completed the transition of our cutting-and-sewing operations to our Mexico Cut-and-Sew facility and we will realize significant cost savings from this initiative throughout fiscal 2011, particularly in the second half of the year as the rate of savings accelerates. We have also implemented lean practices throughout our other two upholstery companies and both contributed positively to our results.”

Darrow continued, “Although our casegoods segment continues to be challenged in this macroeconomic environment, with consumers postponing larger ticket purchases of dining room and bedroom groups, the structural changes implemented throughout the segment enabled us to operate at a near breakeven point for both the quarter and year on lower volume. During the year, we consolidated our two remaining casegoods manufacturing operations into one and, during the fourth quarter, we vacated a leased warehouse facility, moving the operation to a company-owned building. The result of these consolidations is an anticipated annual cost savings of approximately $5 million, a portion of which we realized in fiscal 2010. Also, during the fourth quarter, we consolidated our American Drew/Lea operation with Hammary and believe the newly combined organization will not only allow us to offer our customers a one-stop solution for bedroom, dining room, youth, home office and occasional, but will strengthen our sales, marketing and merchandising groups under one umbrella. Our team is continuing to find ways to strengthen our product offering while ensuring we provide excellent service to our customers.”

System-wide, for the fiscal 2010 fourth quarter (February 2010 through April 2010), including company-owned and independent-licensed stores, same-store written sales, which the company tracks as an indicator of retail activity, were up 2.5% compared with the fiscal 2009 fourth quarter. Total written sales, which include new and closed stores, were down 1.5%.

Retail Segment

For the fourth quarter, retail sales were $39.2 million, up 2.1% compared with the prior-year period. The retail group posted an operating loss for the quarter, and its operating margin was (12.0%), an improvement from last year’s fourth quarter margin of (19.1%). For the year, sales in the retail segment declined 4.5%. Darrow stated, “Our retail team continues to make progress in improving the performance of the segment. For the quarter, we stemmed the loss from the comparable prior-year period by $2.6 million, or 36%. For the full year, we decreased our loss by $15 million, or 43%. Our marketing platform continues to drive traffic to our store base. We have lowered our cost structure, increased our margins, increased the average ticket and improved our profitability. These metrics bode well for ongoing improvement and the segment’s potential to contribute to the overall results of the La-Z-Boy Incorporated, particularly when evaluating the blended margin between the wholesale and retail components.”

Balance Sheet

During the fiscal 2010 fourth quarter, La-Z-Boy generated $31 million in cash from operating activities and, for the year, generated $90 million. La-Z-Boy’s debt-to-capitalization ratio was 12.2%, down from 16.6% a year ago. During the quarter, the company continued to strengthen its balance sheet and closed the year with $108.4 million in cash, up from $17.4 million at the end of fiscal 2009. Darrow stated, “Financial flexibility remains of paramount importance to our company and we worked diligently during the year to ensure the strength of our balance sheet, through a low debt structure and strong cash position. We also have $90.6 million of availability under our revolving line of credit.”

Business Outlook

Darrow stated, “While our results and other public data points indicate the beginning of improved industry conditions, we remain cautious going into fiscal 2011. Sales growth and cost-savings initiatives will need to be balanced against various macroeconomic factors, including relatively low consumer confidence levels, ongoing high unemployment and volatility within the housing market, as well as headwinds relating to raw material price increases versus last year. Against this backdrop, we will continue to manage our business aggressively. We believe our company is well positioned to compete in this environment and we are focused on improving our operations across all business segments.”

Darrow continued, “As it relates to the first quarter, we are experiencing a significant delta in raw materials costs when compared with the year-ago period, and we expect cost savings initiatives, including efficiences from the Mexico Cut and Sew Center, to accelerate as we move through the year as volumes increase and projects are completed. Additionally, as a result of normal seasonality factors, our first quarter, which ends in July, is typically the weakest in terms of sales and profits as the furniture industry, in general, experiences weaker demand throughout the summer. Accordingly, our plants shut down for one week for vacation, yielding 12 weeks of shipping versus the normal 13 weeks.”

Conference Call

La-Z-Boy will hold a conference call with the investment community on Tuesday, June 15, 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

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 and demographics; (b) continued economic recession; (c) changes in the real estate and credit markets and the potential impacts on our customers and suppliers; (d) the impact of political unrest internationally, terrorism or war; (e) continued energy and other commodity price changes; (f) the impact of logistics on imports; (g) the impact of interest rate and currency exchange rate changes; (h) operating factors, such as supply, labor or distribution disruptions including changes in operating conditions, product recalls or costs; (i) effects of restructuring actions; (j) changes in the domestic or international regulatory environment; (k) the impact of adopting new accounting principles; (l) the impact from severe weather or other natural events such as hurricanes, earthquakes and tornadoes; (m) the 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) impact of IT system failures; and (p) those 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 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/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 306 stand-alone La-Z-Boy Furniture Galleries® stores and 510 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/.

Unassociated Document

EXHIBIT 99.2

LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF OPERATIONS

	Unaudited For the Quarter Ended					Unaudited For the Year Ended
(Amounts in thousands, except per share data)	4/24/2010 (13 weeks)		4/25/2009 (13 weeks)			4/24/2010 (52 weeks)		4/25/2009 (52 weeks)
Sales	$	310,740	$	284,498		$	1,179,212	$	1,226,674
Cost of sales
Cost of goods sold		208,938		193,394			802,344	$	879,889
Restructuring		350		123			2,141		9,818
Total cost of sales		209,288		193,517			804,485		889,707
Gross profit		101,452		90,981			374,727		336,967
Selling, general and administrative		85,480		86,901			331,491		373,502
Restructuring		271		433			1,293		2,642
Write-down of long-lived assets		—		467			—		7,503
Write-down of trade names		—		—			—		5,541
Write-down of goodwill		—		—			—		42,136
Operating income (loss)		15,701		3,180			41,943		(94,357	)
Interest expense		584		1,049			2,972		5,581
Interest income		109		619			724		2,504
Income from Continued Dumping and Subsidy Offset Act, net		—		—			4,436		8,124
Other income (expense), net		236		(23	)		590		(7,998	)
Earnings (loss) before income taxes		15,462		2,727			44,721		(97,308	)
Income tax expense (benefit)		1,922		(2,275	)		12,670		25,112
Net income (loss)		13,540		5,002			32,051		(122,420	)
Net (income) loss attributable to noncontrolling interests		132		155			487		(252	)
Net income (loss) attributable to La-Z-Boy Incorporated	$	13,672	$	5,157		$	32,538	$	(122,672	)

Diluted weighted average shares		52,101		51,478			51,732		51,460

Diluted net income (loss) attributable to La-Z-Boy Incorporated per share	$	0.26	$	0.10		$	0.62	$	(2.39	)

Dividends paid per share	$	—	$	—		$	—	$	0.10

LA-Z-BOY INCORPORATED

CONSOLIDATED BALANCE SHEET

	Unaudited As of
(Amounts in thousands, except par value)	4/24/2010			4/25/2009
Current assets
Cash and equivalents	$	108,421		$	17,364
Restricted cash		—			18,713
Receivables, net of allowance of $20,258 in 2010 and $28,385 in 2009		165,038			147,858
Inventories, net		134,187			140,178
Deferred income taxes – current		2,305			795
Other current assets		18,159			22,872
Total current assets		428,110			347,780
Property, plant and equipment, net		138,857			146,896
Trade names		3,100			3,100
Deferred income taxes – long term		458			—
Other long-term assets, net of allowance of $942 in 2010 and $4,309 in 2009		38,293			51,431
Total assets	$	608,818		$	549,207

Current liabilities
Current portion of long-term debt	$	1,066		$	8,724
Accounts payable		54,718			41,571
Accrued expenses and other current liabilities		91,496			75,733
Total current liabilities		147,280			126,028
Long-term debt		46,917			52,148
Deferred income taxes		—			724
Other long-term liabilities		68,381			63,875
Contingencies and commitments		—			—
Shareholders' equity
Common shares, $1 par value – 150,000 authorized; 51,770 outstanding in 2010 and 51,478 outstanding in 2009		51,770			51,478
Capital in excess of par value		201,873			205,945
Retained earnings		108,707			67,431
Accumulated other comprehensive loss		(20,251	)		(22,559	)
Total La-Z-Boy Incorporated shareholders’ equity		342,099			302,295
Noncontrolling interests		4,141			4,137
Total equity		346,240			306,432
Total liabilities and equity	$	608,818		$	549,207

LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF CASH FLOWS

	Unaudited Quarter Ended						Unaudited Year Ended
(Amounts in thousands)	4/24/2010			4/25/2009			4/24/2010			4/25/2009
Cash flows from operating activities
Net income (loss)	$	13,540		$	5,002		$	32,051		$	(122,420	)
Adjustments to reconcile net income (loss) to cash provided by operating activities
Gain on sale of assets		(488	)		(106	)		(538	)		(2,813	)
Write-down of long-lived assets		—			467			—			7,503
Write-down of trade names		—			—			—			5,541
Write-down of goodwill		—			—			—			42,136
Write-down of investments		—			—			—			5,140
Restructuring		621			556			3,434			12,460
Provision for doubtful accounts		942			6,815			6,535			25,254
Depreciation and amortization		6,060			5,875			25,246			24,142
Stock-based compensation expense		1,154			952			5,236			3,819
Change in receivables		(3,114	)		3,909			(17,287	)		27,223
Change in inventories		10,858			29,615			5,991			36,995
Change in other assets		(2,784	)		992			4,187			2,946
Change in payables		6,471			(8,120	)		13,147			(14,544	)
Change in other liabilities		91			(12,914	)		14,349			(41,160	)
Change in deferred taxes		(2,391	)		624			(2,692	)		39,466
Total adjustments		17,420			28,665			57,608			174,108
Net cash provided by operating activities		30,960			33,667			89,659			51,688

Cash flows from investing activities
Proceeds from disposals of assets		1,413			1,229			3,338			9,060
Capital expenditures		(5,278	)		(1,546	)		(10,986	)		(15,625	)
Purchases of investments		(999	)		(735	)		(4,933	)		(11,330	)
Proceeds from sales of investments		3,040			12,794			8,833			34,675
Change in restricted cash		—			(10,543	)		17,507			(18,207	)
Change in other long-term assets		121			(235	)		250			(581	)
Net cash provided by (used for) investing activities		(1,703	)		964			14,009			(2,008	)

Cash flows from financing activities
Proceeds from debt		10,426			(4,664	)		41,817			50,794
Payments on debt		(10,971	)		(23,100	)		(54,707	)		(92,139	)
Stock issued/(canceled) for stock and employee benefit plans		1,035			—			1,035			—
Dividends paid		—			11			—			(5,177	)
Net cash provided by (used for) financing activities		490			(27,753	)		(11,855	)		(46,522	)

Effect of exchange rate changes on cash and equivalents		(837	)		(30	)		(756	)		(901	)
Change in cash and equivalents		28,910			6,848			91,057			2,257
Cash acquired from consolidation of VIEs		—			—			—			631
Cash and equivalents at beginning of period		79,511			10,516			17,364			14,476
Cash and equivalents at end of period	$	108,421		$	17,364		$	108,421		$	17,364

LA-Z-BOY INCORPORATED

Segment Information

	Unaudited For the Quarter Ended						Unaudited For the Year Ended
	4/24/2010			4/25/2009			4/24/2010			4/25/2009
(Amounts in thousands)	(13 weeks)			(13 weeks)			(52 weeks)			(52 weeks)
Sales
Upholstery Group	$	241,137		$	214,952		$	904,871		$	899,204
Casegoods Group		37,510			39,290			146,706			178,000
Retail Group		39,233			38,430			153,620			160,838
VIEs		13,557			11,555			53,173			50,856
Corporate and Other		440			1,413			4,583			4,775
Eliminations		(21,137	)		(21,142	)		(83,741	)		(66,999	)
Consolidated Sales	$	310,740		$	284,498		$	1,179,212		$	1,226,674

Operating income (loss)
Upholstery Group	$	28,641		$	19,405		$	96,392		$	35,947
Casegoods Group		(230	)		(1,265	)		(243	)		554
Retail Group		(4,721	)		(7,332	)		(19,825	)		(34,841	)
VIEs		222			(349	)		104			(5,771	)
Corporate and Other		(7,590	)		(6,256	)		(31,051	)		(22,606	)
Restructuring		(621	)		(556	)		(3,434	)		(12,460	)
Write-down of long-lived assets		—			(467	)		—			(7,503	)
Write-down of trade names		—			—			—			(5,541	)
Write-down of goodwill		—			—			—			(42,136	)
Consolidated Operating Income (Loss)	$	15,701		$	3,180		$	41,943		$	(94,357	)

LA-Z-BOY INCORPORATED

Unaudited Quarterly Financial Data

(Dollar amounts in thousands, except per share data)	(13 weeks)			(13 weeks)		(13 weeks)			(13 weeks)
Fiscal Quarter Ended	7/25/2009			10/24/2009		1/23/2010			4/24/2010
Sales	$	262,671		$	300,707	$	305,094		$	310,740
Cost of sales
Cost of goods sold		181,549			204,962		206,895			208,938
Restructuring		736			663		392			350
Total cost of sales		182,285			205,625		207,287			209,288
Gross profit		80,386			95,082		97,807			101,452
Selling, general and administrative		77,622			84,862		83,527			85,480
Restructuring		301			520		201			271
Operating income		2,463			9,700		14,079			15,701
Interest expense		980			831		577			584
Interest income		276			199		140			109
Income from Continued Dumping and Subsidy Offset Act, net		—			—		4,436			—
Other income (expense), net		711			236		(593	)		236
Earnings before income taxes		2,470			9,304		17,485			15,462
Income tax expense		439			3,762		6,547			1,922
Net income		2,031			5,542		10,938			13,540
Net (income) loss attributable to noncontrolling interest		(48	)		365		38			132
Net income attributable to La-Z-Boy Incorporated	$	1,983		$	5,907	$	10,976		$	13,672

Diluted weighted average shares		51,479			51,755		51,845			52,101

Diluted net income attributable to La-Z-Boy Incorporated per share	$	0.04		$	0.11	$	0.21		$	0.26

LA-Z-BOY INCORPORATED

Unaudited Quarterly Financial Data

(Dollar amounts in thousands, except per share data)	(13 weeks)			(13 weeks)			(13 weeks)			(13 weeks)
Fiscal Quarter Ended	7/26/2008			10/25/2008			1/24/2009			4/25/2009
Sales	$	321,652		$	331,948		$	288,576		$	284,498
Cost of sales
Cost of goods sold		235,596			243,090			207,809			193,394
Restructuring		5,795			2,236			1,664			123
Total cost of sales		241,391			245,326			209,473			193,517
Gross profit		80,261			86,622			79,103			90,981
Selling, general and administrative		91,435			101,665			93,501			86,901
Restructuring		781			687			741			433
Write-down of long-lived assets		—			—			7,036			467
Write-down of trade names		—			—			5,541			—
Write-down of goodwill		1,292			408			40,436			—
Operating income (loss)		(13,247	)		(16,138	)		(68,152	)		3,180
Interest expense		1,495			1,651			1,386			1,049
Interest income		932			630			323			619
Income from Continued Dumping and Subsidy Offset Act, net		—			—			8,124			—
Other income (expense), net		143			(685	)		(7,433	)		(23	)
Earnings (loss) before income taxes		(13,667	)		(17,844	)		(68,524	)		2,727
Income tax expense (benefit)		(5,107	)		36,757			(4,263	)		(2,275	)
Net income (loss)		(8,560	)		(54,601	)		(64,261	)		5,002
Net (income) loss attributable to noncontrolling interest		(86	)		(34	)		(287	)		155
Net income (loss) attributable to La-Z-Boy Incorporated	$	(8,646	)	$	(54,635	)	$	(64,548	)	$	5,157

Diluted weighted average shares		51,428			51,458			51,475			51,478

Diluted net income (loss) attributable to La-Z-Boy Incorporated per share	$	(0.17	)	$	(1.06	)	$	(1.25	)	$	0.10