• La-Z-Boy Reports Record Sales and Operating Income for the Fiscal 2022 Fourth Quarter and Full Year

    ソース: Nasdaq GlobeNewswire / 21 6 2022 16:15:01   America/New_York

    MONROE, Mich., June 21, 2022 (GLOBE NEWSWIRE) -- La-Z-Boy Incorporated (NYSE: LZB), a global leader in residential furniture, today reported record sales and operating income for the fiscal 2022 fourth quarter and full year ended April 30, 2022.

    Fiscal 2022 full year versus Fiscal 2021 full year:

    • Consolidated sales increased 36% to a record $2.4 billion
      • +33% adjusting for the 53rd week in fiscal 2022
    • Retail segment sales increased 31% to $804 million
      • Record sales, operating profit, and operating margin
    • Joybird sales increased 62% to a record $176 million
      • Written sales for Joybird increased 27%
    • Consolidated operating margin:
      • GAAP: 8.8% versus 7.9%
      • Non-GAAP(1): 8.1% versus 9.0%
    • Net income attributable to La-Z-Boy Incorporated per diluted share (“EPS”):
      • GAAP: $3.39 versus $2.30
      • Non-GAAP(1): $3.11 versus $2.62
    • $118 million returned to shareholders through share repurchases and dividends

    Fiscal 2022 fourth quarter versus Fiscal 2021 fourth quarter:

    • Consolidated sales increased 32% to a record $685 million
      • +22% adjusting for the 53rd week in fiscal 2022
    • Retail segment sales increased 20% to $233 million
      • Record sales, operating profit, and operating margin
    • Joybird sales increased 40% to a record $53 million
    • Consolidated operating margin:
      • GAAP: 11.5% versus 9.6%
      • Non-GAAP(1): 9.4% versus 10.0%
    • Net income attributable to La-Z-Boy Incorporated per diluted share (“EPS”):
      • GAAP: $1.33 versus $0.81
      • Non-GAAP(1): $1.07 versus $0.87
    • $22 million returned to shareholders through share repurchases and dividends

    Melinda D. Whittington, President and Chief Executive Officer of La-Z-Boy, said, "In what was a dynamic and volatile year marked by strong consumer demand for home furnishings, significant global supply chain challenges, and now macroeconomic and geopolitical uncertainty, La-Z-Boy Incorporated delivered record sales and operating income driven by powerful consumer brands, vast distribution, and the hard work of our passionate team. Our company-owned Retail segment posted record sales for the year, in addition to record operating profit which more than doubled, while sales for direct-to-consumer Joybird increased 62% to a record $176 million. Our Wholesale segment delivered record sales, with strong sequential improvement on production execution and margins. We had a great finish to the year, including sequential quarterly improvement in operating margin."

    Whittington added, "In the near term, we remain focused on increasing our agility to work down our backlog and improve service to customers and consumers with shorter lead times. Longer-term goals are centered on sustained profitable growth through our Century Vision strategic investments, even as we weather continued expected macroeconomic volatility. We expect our strong balance sheet and significant backlog will allow us to move through the current uncertain period and make important investments in our future as we deliver returns to all stakeholders."

    Consolidated sales in the fourth quarter of fiscal 2022 increased 32% to $685 million versus the fiscal 2021 fourth quarter, reflecting higher production, pricing and surcharge actions, and the extra week in the fiscal 2022 quarter which increased sales by approximately $49 million based on the average weekly sales for the quarter.

    Consolidated GAAP operating margin was 11.5% versus 9.6% in the prior-year fourth quarter. Consolidated non-GAAP(1) operating margin was 9.4% versus 10.0% in the prior-year fourth quarter. Operating margin for the current-year period was impacted by raw material inflation and plant inefficiencies related to increasing manufacturing capacity, partially offset by pricing and surcharge actions, and fixed-cost leverage on higher volume.

    GAAP diluted EPS increased to $1.33 for the fiscal 2022 fourth quarter versus $0.81 in the prior-year quarter. Non-GAAP(1) diluted EPS increased 23% to $1.07 versus $0.87 in the prior-year fourth quarter.

    Wholesale Segment:

    • Sales:
      • Increased 34% (+24% adjusting for the 53rd week) to a record $513 million in the fiscal 2022 fourth quarter compared with the fiscal 2021 fourth quarter driven by realized pricing and surcharge actions as well as increased volume
    • Operating Margin:
      • Non-GAAP(1) operating margin in the fiscal 2022 fourth quarter was 8.8% versus 10.2% for the prior-year period, primarily reflecting higher raw material and freight costs, differences in channel mix, and plant inefficiencies related to increasing manufacturing capacity; these factors were partially offset by pricing and surcharge actions
      • Sequentially from the fiscal 2022 third quarter, operating margin improved 230 basis points in the fourth quarter of fiscal 2022

    Retail segment:

    • Delivered sales:
      • Increased 20% (+12% adjusting for the 53rd week) to a record $233 million in the fourth quarter of fiscal 2022 compared with the prior-year fourth quarter
      • Delivered same-store sales increased 16% in the fiscal 2022 fourth quarter versus the year-ago period
    • Written same-store sales for the company-owned La-Z-Boy Furniture Galleries® stores decreased 9% in the fiscal 2022 fourth quarter, reflecting near-term consumer impacts of inflation and geopolitical concerns
    • Operating Performance:
      • Non-GAAP(1) operating margin increased to a record 13.0%, or $30 million in operating profit, in the fiscal 2022 fourth quarter versus 12.2%, or $24 million in operating profit, in the fiscal 2021 fourth quarter, primarily driven by fixed-cost leverage on higher delivered sales volume

    Corporate & Other:

    • Joybird delivered sales increased 40% (+30% adjusting for the 53rd week) to a record $53 million in the fiscal 2022 fourth quarter compared with the same quarter last year
    • Joybird written sales increased 3% in the fiscal 2022 fourth quarter compared with the prior-year quarter
    • Joybird profit for the quarter increased versus the prior-year period, reflecting an improved gross margin and continued increased marketing investments as the company builds brand awareness while continuing to increase web conversion, retail store traffic, average order value and average sales price

    Balance Sheet and Cash Flow

    For fiscal 2022, the company generated $79 million in cash from operating activities, after investing $72 million in higher inventory levels to protect against supply chain disruptions and to support increased production and delivered sales.

    The company continued to make disciplined investments in the business, including $77 million in capital expenditures for the year, primarily related to store remodels, new upholstery manufacturing capacity in Mexico, plant upgrades, and technology upgrades.

    The company returned $118 million to shareholders in fiscal 2022, including $28 million in dividends with $7 million paid in the fourth quarter, as well as $91 million in share repurchases, or approximately 2.5 million shares of stock, leaving approximately 7.5 million shares available for repurchase under its authorized share repurchase program as of April 30, 2022.

    La-Z-Boy ended fiscal 2022 with $249 million in cash(2) compared with $395 million in cash(2) at the end of fiscal 2021. The company holds $27 million in investments to enhance returns on cash versus $32 million at the end of fiscal 2021.

    Outlook

    Bob Lucian, Chief Financial Officer of La-Z-Boy Incorporated, said, "We are pleased with our strong fourth quarter execution, as we leverage our manufacturing investments to service our large backlog. We expect current macroeconomic and geopolitical uncertainty and its effect on consumer sentiment will likely cause demand trends to remain volatile for the foreseeable future. We are beginning to increase investments in marketing to drive demand for our strong brands to leverage their power in the marketplace, controlling the controllables, and improving our agility to navigate global supply chain disruptions. Taking all known factors into consideration, we expect delivered sales for the fiscal 2023 first quarter to be up 7% to 10% versus the first quarter of fiscal 2022, in a range of $560 million to $575 million, and consolidated non-GAAP operating margin to be in a range of 6.5% to 7.5%."

    _____
    (1)Non-GAAP amounts for the fourth quarter of fiscal 2022 exclude:

    • a purchase accounting net benefit related to acquisitions completed in prior periods totaling $3.4 million pre-tax, or $0.08 per diluted share, with $3.5 million included in operating income and $0.1 million included in interest expense
    • a benefit of $10.7 million pre-tax, or $0.18 per diluted share, related to sale-leaseback transactions of three retail locations

    Non-GAAP amounts for the fourth quarter of fiscal 2021 exclude:

    • purchase accounting charges related to acquisitions completed in prior periods totaling $2.0 million pre-tax, plus related tax adjustments, or $0.06 per diluted share, primarily due to a write-up of the Joybird contingent consideration liability based on forecasted future performance, with $1.9 million included in operating income and $0.1 million included in interest expense

    Non-GAAP amounts for the full fiscal 2022 year exclude:

    • a purchase accounting net benefit related to acquisitions completed in prior periods totaling $1.7 million pre-tax, or $0.04 per diluted share, with $2.3 million included in operating income and $0.5 million included in interest expense
    • a $3.3 million pre-tax, or $0.06 per diluted share, gain on the sale of the Newton, Mississippi facility related to the company's business realignment, announced in June 2020. The company continues to operate a portion of this facility
    • a benefit of $10.7 million pre-tax, or $0.18 per diluted share, related to sale-leaseback transactions of three retail locations

    Non-GAAP amounts for the full fiscal 2021 year exclude:

    • purchase accounting charges related to acquisitions completed in prior periods totaling $16.7 million pre-tax, or $0.33 per diluted share, primarily due to a write-up of the Joybird contingent consideration liability based on forecasted future performance, with $16.0 million included in operating income and $0.7 million included in interest expense
    • a charge of $3.9 million pre-tax, or $0.07 per diluted share, related to the company's business realignment initiative announced in June 2020
    • income of $5.2 million pre-tax, or $0.08 per diluted share, related to the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") recorded in other income related to the impact of employee retention credits

    Please refer to the accompanying “Reconciliation of GAAP to Non-GAAP Financial Measures” for detailed information on calculating the Non-GAAP measures used in this press release and a reconciliation to the most directly comparable GAAP measure.

    (2)Cash includes cash, cash equivalents and restricted cash

    Conference Call

    La-Z-Boy will hold a conference call with the investment community on Wednesday, June 22, 2022, at 8:30 a.m. Eastern time. The toll-free dial-in number is 888.506.0062; international callers may use 973.528.0011. Enter Participant Access Code 546693.

    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: 45734. The webcast replay will be available for one year.

    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, business and industry and the effect of the novel coronavirus (“COVID-19”) pandemic on our business operations and financial results.

    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, such as the continuing and developing impact of, and uncertainty caused by, the COVID-19 pandemic. 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 2022 Annual Report on Form 10-K and other factors identified in our reports filed with the Securities and Exchange Commission (the "SEC"), available on the SEC's website at www.sec.gov. Given these risks and uncertainties, you should not rely on forward-looking statements as a prediction of actual results. We are including this cautionary note to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or for any other reason.

    Additional Information

    This news release is just one part of La-Z-Boy’s financial disclosures and should be read in conjunction with other information filed with the SEC, which is available at: https://lazboy.gcs-web.com/financial-information/sec-filings. Investors and others wishing to be notified of future La-Z-Boy news releases, SEC filings and quarterly investor conference calls may sign up at: https://lazboy.gcs-web.com/.

    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 Wholesale segment includes England, La-Z-Boy, American Drew®, Hammary®, Kincaid® and the company's international wholesale and manufacturing businesses. The company-owned Retail segment includes 161 of the 348 La-Z-Boy Furniture Galleries® stores. Joybird is an e-commerce retailer and manufacturer of upholstered furniture.

    The corporation’s branded distribution network is dedicated to selling La-Z-Boy Incorporated products and brands, and includes 348 stand-alone La-Z-Boy Furniture Galleries® stores and 531 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 http://www.la-z-boy.com/.

    Non-GAAP Financial Measures

    In addition to the financial measures prepared in accordance with accounting principles generally accepted in the United States ("GAAP"), this press release also includes Non-GAAP financial measures. Management uses these Non-GAAP financial measures when assessing our ongoing performance. This press release contains references to Non-GAAP operating income, Non-GAAP operating margin, and Non-GAAP net income attributable to La-Z-Boy Incorporated per diluted share (and components thereof, including Non-GAAP income before income taxes, Non-GAAP net income attributable to La-Z-Boy Incorporated), which may exclude, as applicable, business realignment charges, purchase accounting charges, benefits from the CARES Act, charges for our supply chain optimization initiative and sale-leaseback gains. The business realignment charges include severance costs, asset impairment costs, and costs to relocate equipment and inventory related to organizational changes we undertook as a result of our response to COVID, including a reduction in the company's work force, temporary closure of certain manufacturing facilities and subsequent gains resulting from the sale of related assets. The purchase accounting charges may include the amortization of intangible assets, incremental expense upon the sale of inventory acquired at fair value, amortization of employee retention agreements, fair value adjustments of future cash payments recorded as interest expense, and adjustments to the fair value of contingent consideration. The benefits from the CARES Act include the impact of employee retention credits. The charges for our supply chain optimization initiative may include severance costs, accelerated depreciation expense, costs to relocate equipment and inventory, as well as other costs related to the closure, relocation and sale of certain manufacturing operations. Sale-leaseback gains are the result of the sale of the buildings and related fixed assets of three Retail stores.

    In addition, this press release references the Non-GAAP financial measure of “Non-GAAP earnings per share” for a future period. Non-GAAP earnings per share may exclude items such as pre-tax purchase accounting charges. These and other not presently determinable items could have a material impact on the determination of earnings per share on a GAAP basis and due to the probable variability and limited visibility of excluded items, therefore, we have not provided a reconciliation of Non-GAAP earnings per share for future periods in this press release. 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 the charges related to the company's supply chain optimization initiative are dependent on the timing, size, number and nature of the operations being moved or closed, and the charges may not be incurred on a predictable cycle. Management also excludes benefits from the CARES Act and sale-leasebacks when assessing the company's operating and financial performance due to the one-time or infrequent nature of these transactions. Management believes that exclusion of these items facilitates more consistent comparisons of the company’s operating results over time. Where applicable, the accompanying “Reconciliation of GAAP to Non-GAAP Financial Measures” tables present the excluded items net of tax calculated using the effective tax rate from operations for the period in which the adjustment is presented, except for the non-tax deductible goodwill impairment charge and the adjustment to the fair value of contingent consideration which reflects the associated GAAP tax impact in the period presented.

    Contact: Kathy Liebmann    (734) 241-2438    kathy.liebmann@la-z-boy.com

     


    LA-Z-BOY INCORPORATED
    CONSOLIDATED STATEMENT OF INCOME

      Quarter Ended Year Ended
    (Unaudited, amounts in thousands, except per share data) 4/30/2022 4/24/2021 4/30/2022 4/24/2021
    Sales $684,566  $519,470  $2,356,811  $1,734,244 
    Cost of sales  413,339   297,380   1,440,842   993,984 
    Gross profit  271,227   222,090   915,969   740,260 
    Selling, general and administrative expense  192,442   172,032   709,213   603,524 
    Operating income  78,785   50,058   206,756   136,736 
    Interest expense  (182)  (287)  (895)  (1,390)
    Interest income  309   199   1,338   1,101 
    Other income (expense), net  (1,186)  1,471   (1,708)  9,466 
    Income before income taxes  77,726   51,441   205,491   145,913 
    Income tax expense  20,104   13,484   53,163   38,384 
    Net income  57,622   37,957   152,328   107,529 
    Net income attributable to noncontrolling interests  (154)  (461)  (2,311)  (1,068)
    Net income attributable to La-Z-Boy Incorporated $57,468  $37,496  $150,017  $106,461 
             
    Basic weighted average common shares  43,137   45,739   44,023   45,983 
    Basic net income attributable to La-Z-Boy Incorporated per share $1.33  $0.82  $3.41  $2.31 
             
    Diluted weighted average common shares  43,256   46,316   44,294   46,367 
    Diluted net income attributable to La-Z-Boy Incorporated per share $1.33  $0.81  $3.39  $2.30 
                     

    LA-Z-BOY INCORPORATED
    CONSOLIDATED BALANCE SHEET

    (Unaudited, amounts in thousands, except par value) 4/30/2022 4/24/2021
    Current assets    
    Cash and equivalents $245,589  $391,213 
    Restricted cash  3,267   3,490 
    Receivables, net of allowance of $3,406 at 4/30/2022 and $4,011 at 4/24/2021  183,747   139,341 
    Inventories, net  303,191   226,137 
    Other current assets  215,982   165,979 
    Total current assets  951,776   926,160 
    Property, plant and equipment, net  253,144   219,194 
    Goodwill  194,604   175,814 
    Other intangible assets, net  33,971   30,431 
    Deferred income taxes – long-term  10,632   11,915 
    Right of use lease assets  405,755   343,800 
    Other long-term assets, net  82,207   79,008 
    Total assets $1,932,089  $1,786,322 
         
    Current liabilities    
    Accounts payable $104,025  $94,152 
    Lease liabilities, short-term  75,271   67,614 
    Accrued expenses and other current liabilities  496,393   449,904 
    Total current liabilities  675,689   611,670 
    Lease liabilities, long-term  354,843   295,023 
    Other long-term liabilities  81,935   97,483 
    Shareholders' equity    
    Preferred shares – 5,000 authorized; none issued  —   — 
    Common shares, $1 par value – 150,000 authorized; 43,089 outstanding at 4/30/2022 and 45,361 outstanding at 4/24/2021  43,089   45,361 
    Capital in excess of par value  342,252   330,648 
    Retained earnings  431,181   399,010 
    Accumulated other comprehensive loss  (5,797)  (1,521)
    Total La-Z-Boy Incorporated shareholders' equity  810,725   773,498 
    Noncontrolling interests  8,897   8,648 
    Total equity  819,622   782,146 
    Total liabilities and equity $1,932,089  $1,786,322 
             

    LA-Z-BOY INCORPORATED
    CONSOLIDATED STATEMENT OF CASH FLOWS

      Year Ended
    (Unaudited, amounts in thousands) 4/30/2022 4/24/2021
    Cash flows from operating activities    
    Net income $152,328  $107,529 
    Adjustments to reconcile net income to cash provided by operating activities    
    (Gain)/loss on disposal of assets  (13,657)  (37)
    Gain on sale of investments  (478)  (954)
    Provision for doubtful accounts  (617)  (3,169)
    Depreciation and amortization  39,771   33,021 
    Amortization of right-of-use lease assets  72,942   65,571 
    Equity-based compensation expense  11,858   12,671 
    Change in deferred taxes  1,022   8,790 
    Change in receivables  (41,829)  (38,288)
    Change in inventories  (72,022)  (40,727)
    Change in other assets  (16,232)  2,926 
    Change in payables  6,326   37,068 
    Change in lease liabilities  (73,805)  (65,881)
    Change in other liabilities  13,397   191,397 
    Net cash provided by operating activities  79,004   309,917 
         
    Cash flows from investing activities    
    Proceeds from disposals of assets  22,588   2,770 
    Capital expenditures  (76,580)  (37,960)
    Purchases of investments  (34,152)  (39,584)
    Proceeds from sales of investments  36,096   36,071 
    Acquisitions  (26,323)  (2,000)
    Net cash used for investing activities  (78,371)  (40,703)
         
    Cash flows from financing activities    
    Payments on debt and finance lease liabilities  (121)  (75,050)
    Holdback payments for acquisition purchases  (23,000)  (5,783)
    Stock issued for stock and employee benefit plans, net of shares withheld for taxes  (1,818)  9,030 
    Repurchases of common stock  (90,645)  (44,202)
    Dividends paid to shareholders  (27,717)  (16,542)
    Dividends paid to minority interest joint venture partners (1)  (1,260)  (8,507)
    Net cash used for financing activities  (144,561)  (141,054)
         
    Effect of exchange rate changes on cash and equivalents  (1,919)  3,015 
    Change in cash, cash equivalents and restricted cash  (145,847)  131,175 
    Cash, cash equivalents and restricted cash at beginning of period  394,703   263,528 
    Cash, cash equivalents and restricted cash at end of period $248,856  $394,703 
         
    Supplemental disclosure of non-cash investing activities    
    Capital expenditures included in accounts payable $9,234  $4,638 

    (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 INCORPORATED
    SEGMENT INFORMATION

      Quarter Ended Year Ended
    (Unaudited, amounts in thousands) 4/30/2022 4/24/2021 4/30/2022 4/24/2021
    Sales        
    Wholesale segment:        
    Sales to external customers $397,629  $286,119  $1,371,602  $1,006,377 
    Intersegment sales  115,337   97,882   397,236   294,921 
    Wholesale segment sales  512,966   384,001   1,768,838   1,301,298 
             
    Retail segment sales  233,075   193,535   804,394   612,906 
             
    Corporate and Other:        
    Sales to external customers  53,862   39,816   180,815   114,961 
    Intersegment sales  3,471   3,405   15,144   12,409 
    Corporate and Other sales  57,333   43,221   195,959   127,370 
             
    Eliminations  (118,808)  (101,287)  (412,380)  (307,330)
    Consolidated sales $684,566  $519,470  $2,356,811  $1,734,244 
             
    Operating Income (Loss)        
    Wholesale segment $44,915  $39,003  $134,013  $134,312 
    Retail segment  41,044   23,551   109,546   46,724 
    Corporate and Other  (7,174)  (12,496)  (36,803)  (44,300)
    Consolidated operating income $78,785  $50,058  $206,756  $136,736 
                     

    LA-Z-BOY INCORPORATED
    UNAUDITED QUARTERLY FINANCIAL DATA

    Fiscal 2022

    Fiscal Quarter Ended (13 weeks) (13 weeks) (13 weeks) (14 weeks)
    (Amounts in thousands, except per share data) 7/24/2021 10/23/2021 1/22/2022 4/30/2022
    Sales $524,783  $575,889  $571,573  $684,566 
    Cost of sales  322,701   352,594   352,208   413,339 
    Gross profit  202,082   223,295   219,365   271,227 
    Selling, general and administrative expense  167,711   169,182   179,878   192,442 
    Operating income  34,371   54,113   39,487   78,785 
    Interest expense  (311)  (242)  (160)  (182)
    Interest income  117   106   806   309 
    Other income (expense), net  (93)  1,031   (1,460)  (1,186)
    Income before income taxes  34,084   55,008   38,673   77,726 
    Income tax expense  8,818   14,650   9,591   20,104 
    Net income  25,266   40,358   29,082   57,622 
    Net income attributable to noncontrolling interests  (700)  (842)  (615)  (154)
    Net income attributable to La-Z-Boy Incorporated $24,566  $39,516  $28,467  $57,468 
    Diluted weighted average common shares  45,404   44,423   43,968   43,256 
    Diluted net income attributable to La-Z-Boy Incorporated per share $0.54  $0.89  $0.65  $1.33 


    Fiscal 2021

    Fiscal Quarter Ended (13 weeks) (13 weeks) (13 weeks) (13 weeks)
    (Amounts in thousands, except per share data) 7/25/2020 10/24/2020 1/23/2021 4/24/2021
    Sales $285,458  $459,120  $470,196  $519,470 
    Cost of sales  169,095   258,565   268,944   297,380 
    Gross profit  116,363   200,555   201,252   222,090 
    Selling, general and administrative expense  112,038   152,616   166,838   172,032 
    Operating income  4,325   47,939   34,414   50,058 
    Interest expense  (459)  (346)  (298)  (287)
    Interest income  494   123   285   199 
    Other income (expense), net  1,474   (11)  6,532   1,471 
    Income before income taxes  5,834   47,705   40,933   51,441 
    Income tax expense  1,155   12,401   11,344   13,484 
    Net income  4,679   35,304   29,589   37,957 
    Net (income) loss attributable to noncontrolling interests
    		  119   (369)  (357)  (461)
    Net income attributable to La-Z-Boy Incorporated $4,798  $34,935  $29,232  $37,496 
    Diluted weighted average common shares  45,965   46,323   46,818   46,316 
    Diluted net income attributable to La-Z-Boy Incorporated per share $0.10  $0.75  $0.62  $0.81 
                     

    LA-Z-BOY INCORPORATED
    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

      Quarter Ended Year Ended
    (Amounts in thousands, except per share data) 4/30/2022 4/24/2021 4/30/2022 4/24/2021
    GAAP gross profit $271,227  $222,090  $915,969  $740,260 
    Add back: Purchase accounting charges - incremental expense upon the sale of inventory acquired at fair value  —   —   —   429 
    Add back: Business realignment charges  —   —   —   1,303 
    Less: Supply chain optimization initiative gain  —   —   —   (50)
    Non-GAAP gross profit $271,227  $222,090  $915,969  $741,942 
             
    GAAP SG&A $192,442  $172,032  $709,213  $603,524 
    Less: Purchase accounting (charges)/gain - adjustment to fair value of contingent consideration and amortization of intangible assets and retention agreements  3,528   (1,859)  2,251   (15,595)
    Add back: Business realignment gain/(charges)  —   —   3,277   (2,580)
    Add back: Sale leaseback gain  10,655   —   10,655   — 
    Non-GAAP SG&A $206,625  $170,173  $725,396  $585,349 
             
    GAAP operating income $78,785  $50,058  $206,756  $136,736 
    Add back: Purchase accounting charges/(gain)  (3,528)  1,859   (2,251)  16,024 
    Less: Business realignment (gain)/charges  —   —   (3,277)  3,883 
    Less: Sale leaseback gain  (10,655)  —   (10,655)  — 
    Less: Supply chain optimization initiative gain  —   —   —   (50)
    Non-GAAP operating income $64,602  $51,917  $190,573  $156,593 
             
    GAAP income before income taxes $77,726  $51,441  $205,491  $145,913 
    Add back: Purchase accounting charges/(gain) recorded as part of gross profit, SG&A, and interest expense  (3,437)  2,038   (1,737)  16,694 
    Less: Business realignment (gain)/charges  —   —   (3,277)  3,883 
    Less: Sale leaseback gain  (10,655)  —   (10,655)  — 
    Less: Supply chain optimization initiative gain  —   —   —   (50)
    Less: CARES Act benefit  —   —   —   (5,219)
    Non-GAAP income before income taxes $63,634  $53,479  $189,822  $161,221 
             
    GAAP net income attributable to La-Z-Boy Incorporated $57,468  $37,496  $150,017  $106,461 
    Add back: Purchase accounting charges/(gain) recorded as part of gross profit, SG&A, and interest expense  (3,437)  2,038   (1,737)  16,694 
    Less: Tax effect of purchase accounting  935   837   588   (642)
    Less: Business realignment (gain)/charges  —   —   (3,277)  3,883 
    Add back: Tax effect of business realignment gain/(charges)  —   —   862   (938)
    Less: Sale leaseback gain  (10,655)  —   (10,655)  — 
    Add back: Tax effect of sale leaseback gain  2,898   —   2,802   — 
    Less: Supply chain optimization initiative gain  —   —   —   (50)
    Add back: Tax effect of supply chain optimization initiative gain  —   —   —   13 
    Less: CARES Act benefit  —   —   —   (5,219)
    Add back: Tax effect of CARES Act benefit  —   —   —   1,261 
    Non-GAAP net income attributable to La-Z-Boy Incorporated $47,209  $40,371  $138,600  $121,463 
             
    GAAP net income attributable to La-Z-Boy Incorporated per diluted share $1.33  $0.81  $3.39  $2.30 
    Add back: Purchase accounting charges/(gain), net of tax, per share  (0.08)  0.06   (0.04)  0.33 
    Less: Business realignment (gain)/charges, net of tax, per share  —   —   (0.06)  0.07 
    Less: Sale leaseback gain, net of tax, per share  (0.18)  —   (0.18)  — 
    Less: CARES Act benefit, net of tax, per share  —   —   —   (0.08)
    Non-GAAP net income attributable to La-Z-Boy Incorporated per diluted share $1.07  $0.87  $3.11  $2.62 
                     

    LA-Z-BOY INCORPORATED
    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
    SEGMENT INFORMATION

      Quarter Ended Year Ended
    (Amounts in thousands) 4/30/2022 % of sales 4/24/2021 % of sales 4/30/2022 % of sales 4/24/2021 % of sales
    GAAP operating income (loss)                
    Wholesale segment $44,915  8.8% $39,003  10.2% $134,013  7.6% $134,312  10.3%
    Retail segment  41,044  17.6%  23,551  12.2%  109,546  13.6%  46,724  7.6%
    Corporate and Other  (7,174) N/M  (12,496) N/M  (36,803) N/M  (44,300) N/M
    Consolidated GAAP operating income $78,785  11.5% $50,058  9.6% $206,756  8.8% $136,736  7.9%
                     
    Non-GAAP items affecting operating income                
    Wholesale segment $57    $60    $(3,041)   $3,346   
    Retail segment  (10,655)    —     (10,655)    612   
    Corporate and Other  (3,585)    1,799     (2,487)    15,899   
    Consolidated Non-GAAP items affecting operating income $(14,183)   $1,859    $(16,183)   $19,857   
                     
    Non-GAAP operating income (loss)                
    Wholesale segment $44,972  8.8% $39,063  10.2% $130,972  7.4% $137,658  10.6%
    Retail segment  30,389  13.0%  23,551  12.2%  98,891  12.3%  47,336  7.7%
    Corporate and Other  (10,759) N/M  (10,697) N/M  (39,290) N/M  (28,401) N/M
    Consolidated Non-GAAP operating income $64,602  9.4% $51,917  10.0% $190,573  8.1% $156,593  9.0%
                     
    N/M - Not Meaningful                

     


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