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Form 8-K LA-Z-BOY INC For: Jun 21

June 21, 2022 4:21 PM EDT

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported):
June 21, 2022
LA-Z-BOY INCORPORATED
(Exact name of registrant as specified in its charter)
Michigan1-965638-0751137
(State or other jurisdiction of (Commission (IRS Employer
incorporation) File Number) Identification No.)
One La-Z-Boy Drive,Monroe,Michigan48162-5138
(Address of principal executive offices)(Zip Code)
Registrant's telephone number, including area code (734) 242-1444
N/A
      (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))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $1.00 par valueLZBNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.                                                          



Item 2.02  Results of Operations and Financial Condition.
On June 21, 2022, La-Z-Boy Incorporated (the “Company”) issued a news release to report the Company’s financial results for the fiscal quarter ended April 30, 2022. A copy of the news release is attached to this Current Report on Form 8-K as Exhibit 99.1.

Item 7.01  Regulation FD Disclosure.
The information in Items 2.02 and 7.01 of this report and the related exhibit (Exhibit 99.1) 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 and shall not be deemed to be incorporated by reference in any filing of the Company 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 furnished as part of this report:
Description
99.1
104Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 




SIGNATURES
    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 hereunto duly authorized.
LA-Z-BOY INCORPORATED
(Registrant)

Date: June 21, 2022
BY:/s/ Jennifer L. McCurry
Jennifer L. McCurry
Vice President, Corporate Controller and Chief Accounting Officer



EXHIBIT 99.1
lzbimagepressreleasea02a.jpg
                        
NEWS RELEASE                    
    
Contact: Kathy Liebmann        (734) 241-2438                 kathy.liebmann@la-z-boy.com


LA-Z-BOY REPORTS RECORD SALES AND OPERATING INCOME FOR THE FISCAL 2022 FOURTH QUARTER AND FULL YEAR

MONROE, Mich., June 21, 2022--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.

# # #




LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF INCOME
Quarter EndedYear Ended
(Unaudited, amounts in thousands, except per share data)4/30/20224/24/20214/30/20224/24/2021
Sales$684,566 $519,470 $2,356,811 $1,734,244 
Cost of sales413,339 297,380 1,440,842 993,984 
Gross profit271,227 222,090 915,969 740,260 
Selling, general and administrative expense192,442 172,032 709,213 603,524 
Operating income 78,785 50,058 206,756 136,736 
Interest expense(182)(287)(895)(1,390)
Interest income309 199 1,338 1,101 
Other income (expense), net(1,186)1,471 (1,708)9,466 
Income before income taxes77,726 51,441 205,491 145,913 
Income tax expense20,104 13,484 53,163 38,384 
Net income57,622 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 shares43,137 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 shares43,256 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)4/30/20224/24/2021
Current assets
Cash and equivalents$245,589 $391,213 
Restricted cash3,267 3,490 
Receivables, net of allowance of $3,406 at 4/30/2022 and $4,011 at 4/24/2021183,747 139,341 
Inventories, net303,191 226,137 
Other current assets215,982 165,979 
Total current assets951,776 926,160 
Property, plant and equipment, net253,144 219,194 
Goodwill194,604 175,814 
Other intangible assets, net33,971 30,431 
Deferred income taxes – long-term10,632 11,915 
Right of use lease assets405,755 343,800 
Other long-term assets, net82,207 79,008 
Total assets$1,932,089 $1,786,322 
Current liabilities
Accounts payable$104,025 $94,152 
Lease liabilities, short-term75,271 67,614 
Accrued expenses and other current liabilities496,393 449,904 
Total current liabilities675,689 611,670 
Lease liabilities, long-term354,843 295,023 
Other long-term liabilities81,935 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 4/24/202143,089 45,361 
Capital in excess of par value342,252 330,648 
Retained earnings431,181 399,010 
Accumulated other comprehensive loss(5,797)(1,521)
Total La-Z-Boy Incorporated shareholders' equity810,725 773,498 
Noncontrolling interests8,897 8,648 
Total equity819,622 782,146 
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)4/30/20224/24/2021
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 amortization39,771 33,021 
Amortization of right-of-use lease assets72,942 65,571 
Equity-based compensation expense11,858 12,671 
Change in deferred taxes1,022 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 payables6,326 37,068 
Change in lease liabilities(73,805)(65,881)
Change in other liabilities13,397 191,397 
Net cash provided by operating activities79,004 309,917 
Cash flows from investing activities
Proceeds from disposals of assets22,588 2,770 
Capital expenditures(76,580)(37,960)
Purchases of investments(34,152)(39,584)
Proceeds from sales of investments36,096 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 period394,703 263,528 
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 EndedYear Ended
(Unaudited, amounts in thousands)4/30/20224/24/20214/30/20224/24/2021
Sales
Wholesale segment:
Sales to external customers$397,629 $286,119 $1,371,602 $1,006,377 
Intersegment sales115,337 97,882 397,236 294,921 
Wholesale segment sales512,966 384,001 1,768,838 1,301,298 
Retail segment sales233,075 193,535 804,394 612,906 
Corporate and Other:
Sales to external customers53,862 39,816 180,815 114,961 
Intersegment sales3,471 3,405 15,144 12,409 
Corporate and Other sales57,333 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 segment41,044 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)7/24/202110/23/20211/22/20224/30/2022
Sales$524,783 $575,889 $571,573 $684,566 
Cost of sales322,701 352,594 352,208 413,339 
Gross profit202,082 223,295 219,365 271,227 
Selling, general and administrative expense167,711 169,182 179,878 192,442 
Operating income34,371 54,113 39,487 78,785 
Interest expense(311)(242)(160)(182)
Interest income117 106 806 309 
Other income (expense), net(93)1,031 (1,460)(1,186)
Income before income taxes34,084 55,008 38,673 77,726 
Income tax expense8,818 14,650 9,591 20,104 
Net income25,266 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 shares45,404 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)7/25/202010/24/20201/23/20214/24/2021
Sales$285,458 $459,120 $470,196 $519,470 
Cost of sales169,095 258,565 268,944 297,380 
Gross profit116,363 200,555 201,252 222,090 
Selling, general and administrative expense112,038 152,616 166,838 172,032 
Operating income4,325 47,939 34,414 50,058 
Interest expense(459)(346)(298)(287)
Interest income494 123 285 199 
Other income (expense), net1,474 (11)6,532 1,471 
Income before income taxes5,834 47,705 40,933 51,441 
Income tax expense1,155 12,401 11,344 13,484 
Net income4,679 35,304 29,589 37,957 
Net (income) loss attributable to noncontrolling interests119 (369)(357)(461)
Net income attributable to La-Z-Boy Incorporated$4,798 $34,935 $29,232 $37,496 
Diluted weighted average common shares45,965 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 EndedYear Ended
(Amounts in thousands, except per share data)4/30/20224/24/20214/30/20224/24/2021
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 agreements3,528 (1,859)2,251 (15,595)
Add back: Business realignment gain/(charges)— — 3,277 (2,580)
Add back: Sale leaseback gain10,655 — 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 accounting935 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 gain2,898 — 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 EndedYear Ended
(Amounts in thousands)4/30/2022% of sales4/24/2021% of sales4/30/2022% of sales4/24/2021% 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 segment41,044 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 segment30,389 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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