|
Michigan
|
|
38-0751137
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
One La-Z-Boy Drive,
|
Monroe,
|
Michigan
|
|
48162-5138
|
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Title of each class
|
|
Trading Symbol(s)
|
|
Name of each exchange on which registered
|
Common Stock, $1.00 Par Value
|
|
LZB
|
|
New York Stock Exchange
|
Large accelerated filer
|
☒
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
Smaller reporting company
|
☐
|
|
|
Emerging growth company
|
☐
|
Class
|
|
Outstanding at February 11, 2020
|
Common Stock, $1.00 Par Value
|
|
46,032,716
|
|
|
Page
Number(s)
|
|
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
|
|
|
||
|
||
|
||
|
||
|
||
|
||
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Nine Months Ended
|
||||||||||||
(Unaudited, amounts in thousands, except per share data)
|
|
1/25/20
|
|
1/26/19
|
|
1/25/20
|
|
1/26/19
|
||||||||
Sales
|
|
$
|
475,856
|
|
|
$
|
467,582
|
|
|
$
|
1,336,701
|
|
|
$
|
1,291,610
|
|
Cost of sales
|
|
276,218
|
|
|
277,712
|
|
|
786,962
|
|
|
778,813
|
|
||||
Gross profit
|
|
199,638
|
|
|
189,870
|
|
|
549,739
|
|
|
512,797
|
|
||||
Selling, general and administrative expense
|
|
147,325
|
|
|
149,027
|
|
|
444,403
|
|
|
420,294
|
|
||||
Operating income
|
|
52,313
|
|
|
40,843
|
|
|
105,336
|
|
|
92,503
|
|
||||
Interest expense
|
|
(265
|
)
|
|
(538
|
)
|
|
(891
|
)
|
|
(1,143
|
)
|
||||
Interest income
|
|
844
|
|
|
540
|
|
|
2,093
|
|
|
1,534
|
|
||||
Other expense, net
|
|
(5,998
|
)
|
|
(941
|
)
|
|
(5,390
|
)
|
|
(2,046
|
)
|
||||
Income before income taxes
|
|
46,894
|
|
|
39,904
|
|
|
101,148
|
|
|
90,848
|
|
||||
Income tax expense
|
|
12,178
|
|
|
10,730
|
|
|
25,540
|
|
|
22,374
|
|
||||
Net income
|
|
34,716
|
|
|
29,174
|
|
|
75,608
|
|
|
68,474
|
|
||||
Net income attributable to noncontrolling interests
|
|
(204
|
)
|
|
(443
|
)
|
|
(434
|
)
|
|
(1,428
|
)
|
||||
Net income attributable to La-Z-Boy Incorporated
|
|
$
|
34,512
|
|
|
$
|
28,731
|
|
|
$
|
75,174
|
|
|
$
|
67,046
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic weighted average common shares
|
|
46,262
|
|
|
46,820
|
|
|
46,545
|
|
|
46,808
|
|
||||
Basic net income attributable to La-Z-Boy Incorporated per share
|
|
$
|
0.75
|
|
|
$
|
0.61
|
|
|
$
|
1.61
|
|
|
$
|
1.43
|
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted weighted average common shares
|
|
46,584
|
|
|
47,091
|
|
|
46,867
|
|
|
47,212
|
|
||||
Diluted net income attributable to La-Z-Boy Incorporated per share
|
|
$
|
0.74
|
|
|
$
|
0.61
|
|
|
$
|
1.60
|
|
|
$
|
1.42
|
|
|
|
Quarter Ended
|
|
Nine Months Ended
|
||||||||||||
(Unaudited, amounts in thousands)
|
|
01/25/20
|
|
01/26/19
|
|
01/25/20
|
|
01/26/19
|
||||||||
Net income
|
|
$
|
34,716
|
|
|
$
|
29,174
|
|
|
$
|
75,608
|
|
|
$
|
68,474
|
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
||||||||
Currency translation adjustment
|
|
(112
|
)
|
|
1,469
|
|
|
2,028
|
|
|
(1,552
|
)
|
||||
Change in fair value of cash flow hedges, net of tax
|
|
—
|
|
|
70
|
|
|
10
|
|
|
(108
|
)
|
||||
Net unrealized gain on marketable securities, net of tax
|
|
16
|
|
|
90
|
|
|
170
|
|
|
154
|
|
||||
Net pension amortization, net of tax
|
|
41
|
|
|
515
|
|
|
123
|
|
|
1,548
|
|
||||
Total other comprehensive income (loss)
|
|
(55
|
)
|
|
2,144
|
|
|
2,331
|
|
|
42
|
|
||||
Total comprehensive income before allocation to noncontrolling interests
|
|
34,661
|
|
|
31,318
|
|
|
77,939
|
|
|
68,516
|
|
||||
Comprehensive income attributable to noncontrolling interests
|
|
(42
|
)
|
|
(1,112
|
)
|
|
(1,118
|
)
|
|
(1,488
|
)
|
||||
Comprehensive income attributable to La-Z-Boy Incorporated
|
|
$
|
34,619
|
|
|
$
|
30,206
|
|
|
$
|
76,821
|
|
|
$
|
67,028
|
|
(Unaudited, amounts in thousands, except par value)
|
|
1/25/20
|
|
4/27/19
|
||||
Current assets
|
|
|
|
|
||||
Cash and equivalents
|
|
$
|
166,272
|
|
|
$
|
129,819
|
|
Restricted cash
|
|
1,973
|
|
|
1,968
|
|
||
Receivables, net of allowance of $2,191 at 1/25/20 and $2,180 at 4/27/19
|
|
153,721
|
|
|
143,288
|
|
||
Inventories, net
|
|
198,567
|
|
|
196,899
|
|
||
Other current assets
|
|
82,765
|
|
|
69,144
|
|
||
Total current assets
|
|
603,298
|
|
|
541,118
|
|
||
Property, plant and equipment, net
|
|
212,851
|
|
|
200,523
|
|
||
Goodwill
|
|
185,328
|
|
|
185,867
|
|
||
Other intangible assets, net
|
|
29,235
|
|
|
29,907
|
|
||
Deferred income taxes – long-term
|
|
19,928
|
|
|
20,670
|
|
||
Right of use lease asset
|
|
318,162
|
|
|
—
|
|
||
Other long-term assets, net
|
|
73,831
|
|
|
81,705
|
|
||
Total assets
|
|
$
|
1,442,633
|
|
|
$
|
1,059,790
|
|
|
|
|
|
|
||||
Current liabilities
|
|
|
|
|
||||
Current portion of long-term debt
|
|
$
|
—
|
|
|
$
|
180
|
|
Accounts payable
|
|
68,045
|
|
|
65,365
|
|
||
Lease liability, short-term
|
|
65,128
|
|
|
—
|
|
||
Accrued expenses and other current liabilities
|
|
195,349
|
|
|
173,091
|
|
||
Total current liabilities
|
|
328,522
|
|
|
238,636
|
|
||
Long-term debt
|
|
—
|
|
|
19
|
|
||
Lease liability, long-term
|
|
267,955
|
|
|
—
|
|
||
Other long-term liabilities
|
|
116,674
|
|
|
124,159
|
|
||
Shareholders' equity
|
|
|
|
|
||||
Preferred shares – 5,000 authorized; none issued
|
|
—
|
|
|
—
|
|
||
Common shares, $1 par value – 150,000 authorized; 46,075 outstanding at 1/25/20 and 46,955 outstanding at 4/27/19
|
|
46,075
|
|
|
46,955
|
|
||
Capital in excess of par value
|
|
316,764
|
|
|
313,168
|
|
||
Retained earnings
|
|
353,419
|
|
|
325,847
|
|
||
Accumulated other comprehensive loss
|
|
(2,361
|
)
|
|
(3,462
|
)
|
||
Total La-Z-Boy Incorporated shareholders' equity
|
|
713,897
|
|
|
682,508
|
|
||
Noncontrolling interests
|
|
15,585
|
|
|
14,468
|
|
||
Total equity
|
|
729,482
|
|
|
696,976
|
|
||
Total liabilities and equity
|
|
$
|
1,442,633
|
|
|
$
|
1,059,790
|
|
|
|
Nine Months Ended
|
||||||
(Unaudited, amounts in thousands)
|
|
1/25/20
|
|
1/26/19
|
||||
Cash flows from operating activities
|
|
|
|
|
||||
Net income
|
|
$
|
75,608
|
|
|
$
|
68,474
|
|
Adjustments to reconcile net income to cash provided by (used for) operating activities
|
|
|
|
|
||||
(Gain)/loss on disposal of assets
|
|
(10,051
|
)
|
|
41
|
|
||
Change in deferred taxes
|
|
1,238
|
|
|
2,538
|
|
||
Provision for doubtful accounts
|
|
210
|
|
|
477
|
|
||
Depreciation and amortization
|
|
23,035
|
|
|
23,182
|
|
||
Equity-based compensation expense
|
|
7,235
|
|
|
8,174
|
|
||
Pension plan contributions
|
|
—
|
|
|
(7,000
|
)
|
||
Change in receivables
|
|
(11,178
|
)
|
|
1,152
|
|
||
Change in inventories
|
|
(62
|
)
|
|
(18,950
|
)
|
||
Change in other assets
|
|
53,620
|
|
|
(10,103
|
)
|
||
Change in payables
|
|
659
|
|
|
4,954
|
|
||
Change in other liabilities
|
|
(20,555
|
)
|
|
18,509
|
|
||
Net cash provided by operating activities
|
|
119,759
|
|
|
91,448
|
|
||
|
|
|
|
|
||||
Cash flows from investing activities
|
|
|
|
|
||||
Proceeds from disposals of assets
|
|
11,242
|
|
|
447
|
|
||
Proceeds from insurance
|
|
1,080
|
|
|
154
|
|
||
Capital expenditures
|
|
(35,464
|
)
|
|
(35,766
|
)
|
||
Purchases of investments
|
|
(26,248
|
)
|
|
(14,956
|
)
|
||
Proceeds from sales of investments
|
|
24,688
|
|
|
14,304
|
|
||
Acquisitions
|
|
(6,412
|
)
|
|
(78,582
|
)
|
||
Net cash used for investing activities
|
|
(31,114
|
)
|
|
(114,399
|
)
|
||
|
|
|
|
|
||||
Cash flows from financing activities
|
|
|
|
|
||||
Net proceeds from credit facility
|
|
—
|
|
|
20,000
|
|
||
Payments on debt and finance lease liabilities
|
|
(135
|
)
|
|
(169
|
)
|
||
Stock issued for stock and employee benefit plans, net of shares withheld for taxes
|
|
828
|
|
|
4,012
|
|
||
Purchases of common stock
|
|
(35,346
|
)
|
|
(16,726
|
)
|
||
Dividends paid
|
|
(18,641
|
)
|
|
(17,381
|
)
|
||
Net cash used for financing activities
|
|
(53,294
|
)
|
|
(10,264
|
)
|
||
|
|
|
|
|
||||
Effect of exchange rate changes on cash and equivalents
|
|
1,107
|
|
|
(74
|
)
|
||
Change in cash, cash equivalents and restricted cash
|
|
36,458
|
|
|
(33,289
|
)
|
||
Cash, cash equivalents and restricted cash at beginning of period
|
|
131,787
|
|
|
136,871
|
|
||
Cash, cash equivalents and restricted cash at end of period
|
|
$
|
168,245
|
|
|
$
|
103,582
|
|
|
|
|
|
|
||||
Supplemental disclosure of non-cash investing activities
|
|
|
|
|
||||
Capital expenditures included in payables
|
|
$
|
4,026
|
|
|
$
|
2,827
|
|
(Unaudited, amounts in thousands)
|
|
Common
Shares
|
|
Capital in Excess of
Par Value
|
|
Retained
Earnings
|
|
Accumulated Other
Comprehensive Income
(Loss)
|
|
Non-Controlling
Interests
|
|
Total
|
||||||||||||
At April 27, 2019
|
|
$
|
46,955
|
|
|
$
|
313,168
|
|
|
$
|
325,847
|
|
|
$
|
(3,462
|
)
|
|
$
|
14,468
|
|
|
$
|
696,976
|
|
Net income (loss)
|
|
—
|
|
|
—
|
|
|
18,069
|
|
|
—
|
|
|
(81
|
)
|
|
17,988
|
|
||||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
281
|
|
|
486
|
|
|
767
|
|
||||||
Stock issued for stock and employee benefit plans, net of cancellations and withholding tax
|
|
126
|
|
|
126
|
|
|
(1,669
|
)
|
|
—
|
|
|
—
|
|
|
(1,417
|
)
|
||||||
Purchases of 391 shares of common stock
|
|
(391
|
)
|
|
(3,762
|
)
|
|
(8,160
|
)
|
|
—
|
|
|
—
|
|
|
(12,313
|
)
|
||||||
Stock option and restricted stock expense
|
|
—
|
|
|
1,675
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,675
|
|
||||||
Cumulative effect adjustment for leases, net of tax (1)
|
|
—
|
|
|
—
|
|
|
574
|
|
|
—
|
|
|
—
|
|
|
574
|
|
||||||
Reclassification of certain income tax effects (2)
|
|
—
|
|
|
—
|
|
|
547
|
|
|
(547
|
)
|
|
—
|
|
|
—
|
|
||||||
Dividends declared and paid ($0.13/share)
|
|
—
|
|
|
—
|
|
|
(6,112
|
)
|
|
—
|
|
|
—
|
|
|
(6,112
|
)
|
||||||
At July 27, 2019
|
|
$
|
46,690
|
|
|
$
|
311,207
|
|
|
$
|
329,096
|
|
|
$
|
(3,728
|
)
|
|
$
|
14,873
|
|
|
$
|
698,138
|
|
Net income
|
|
—
|
|
|
—
|
|
|
22,593
|
|
|
—
|
|
|
311
|
|
|
22,904
|
|
||||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,260
|
|
|
359
|
|
|
1,619
|
|
||||||
Stock issued for stock and employee benefit plans, net of cancellations and withholding tax
|
|
84
|
|
|
1,908
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
1,988
|
|
||||||
Purchases of 335 shares of common stock
|
|
(335
|
)
|
|
(1,908
|
)
|
|
(8,611
|
)
|
|
—
|
|
|
—
|
|
|
(10,854
|
)
|
||||||
Stock option and restricted stock expense
|
|
—
|
|
|
3,032
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,032
|
|
||||||
Dividends declared and paid ($0.13/share)
|
|
—
|
|
|
—
|
|
|
(6,039
|
)
|
|
—
|
|
|
—
|
|
|
(6,039
|
)
|
||||||
Dividends declared not paid ($0.13/share)
|
|
—
|
|
|
—
|
|
|
(46
|
)
|
|
—
|
|
|
—
|
|
|
(46
|
)
|
||||||
At October 26, 2019
|
|
$
|
46,439
|
|
|
$
|
314,239
|
|
|
$
|
336,989
|
|
|
$
|
(2,468
|
)
|
|
$
|
15,543
|
|
|
$
|
710,742
|
|
Net income (loss)
|
|
—
|
|
|
—
|
|
|
34,512
|
|
|
—
|
|
|
204
|
|
|
34,716
|
|
||||||
Other comprehensive income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
107
|
|
|
(162
|
)
|
|
(55
|
)
|
||||||
Stock issued for stock and employee benefit plans, net of cancellations and withholding tax
|
|
14
|
|
|
281
|
|
|
(37
|
)
|
|
—
|
|
|
—
|
|
|
258
|
|
||||||
Purchases of 378 shares of common stock
|
|
(378
|
)
|
|
(284
|
)
|
|
(11,520
|
)
|
|
—
|
|
|
—
|
|
|
(12,182
|
)
|
||||||
Stock option and restricted stock expense
|
|
—
|
|
|
2,528
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,528
|
|
||||||
Dividends declared and paid ($0.14/share)
|
|
—
|
|
|
—
|
|
|
(6,490
|
)
|
|
—
|
|
|
—
|
|
|
(6,490
|
)
|
||||||
Dividends declared not paid ($0.14/share)
|
|
—
|
|
|
—
|
|
|
(35
|
)
|
|
—
|
|
|
—
|
|
|
(35
|
)
|
||||||
At January 25, 2020
|
|
$
|
46,075
|
|
|
$
|
316,764
|
|
|
$
|
353,419
|
|
|
$
|
(2,361
|
)
|
|
$
|
15,585
|
|
|
$
|
729,482
|
|
(1)
|
Cumulative effect adjustment of deferred gains on prior sale/leaseback transactions as a result of adopting ASU 2016-02.
|
(2)
|
Income tax effects of the Tax Cuts and Jobs Act are reclassified from Accumulated Other Comprehensive Income ("AOCI") to retained earnings due to the adoption of ASU 2018-02.
|
(Unaudited, amounts in thousands)
|
|
Common
Shares
|
|
Capital in Excess of
Par Value
|
|
Retained
Earnings
|
|
Accumulated Other
Comprehensive Income
(Loss)
|
|
Non-Controlling
Interests
|
|
Total
|
||||||||||||
At April 28, 2018
|
|
$
|
46,788
|
|
|
$
|
298,948
|
|
|
$
|
291,644
|
|
|
$
|
(25,199
|
)
|
|
$
|
13,035
|
|
|
$
|
625,216
|
|
Net income
|
|
—
|
|
|
—
|
|
|
18,303
|
|
|
—
|
|
|
648
|
|
|
18,951
|
|
||||||
Other comprehensive (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,737
|
)
|
|
(1,228
|
)
|
|
(3,965
|
)
|
||||||
Stock issued for stock and employee benefit plans, net of cancellations and withholding tax
|
|
160
|
|
|
(42
|
)
|
|
(2,127
|
)
|
|
—
|
|
|
—
|
|
|
(2,009
|
)
|
||||||
Purchases of 257 shares of common stock
|
|
(257
|
)
|
|
(176
|
)
|
|
(7,511
|
)
|
|
—
|
|
|
—
|
|
|
(7,944
|
)
|
||||||
Stock option and restricted stock expense
|
|
—
|
|
|
2,040
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,040
|
|
||||||
Cumulative effect adjustment for investments, net of tax
|
|
—
|
|
|
—
|
|
|
1,637
|
|
|
(1,637
|
)
|
|
—
|
|
|
—
|
|
||||||
Dividends declared and paid ($0.12/share)
|
|
—
|
|
|
—
|
|
|
(5,625
|
)
|
|
—
|
|
|
—
|
|
|
(5,625
|
)
|
||||||
At July 28, 2018
|
|
$
|
46,691
|
|
|
$
|
300,770
|
|
|
$
|
296,321
|
|
|
$
|
(29,573
|
)
|
|
$
|
12,455
|
|
|
$
|
626,664
|
|
Net income
|
|
—
|
|
|
—
|
|
|
20,012
|
|
|
—
|
|
|
337
|
|
|
20,349
|
|
||||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,244
|
|
|
619
|
|
|
1,863
|
|
||||||
Stock issued for stock and employee benefit plans, net of cancellations and withholding tax
|
|
335
|
|
|
5,748
|
|
|
(35
|
)
|
|
—
|
|
|
—
|
|
|
6,048
|
|
||||||
Purchases of 121 shares of common stock
|
|
(121
|
)
|
|
(2,456
|
)
|
|
(1,089
|
)
|
|
—
|
|
|
—
|
|
|
(3,666
|
)
|
||||||
Stock option and restricted stock expense
|
|
—
|
|
|
3,639
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,639
|
|
||||||
Dividends declared and paid ($0.12/share)
|
|
—
|
|
|
—
|
|
|
(5,653
|
)
|
|
—
|
|
|
—
|
|
|
(5,653
|
)
|
||||||
Dividends declared not paid ($0.12/share)
|
|
—
|
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
—
|
|
|
(13
|
)
|
||||||
At October 27, 2018
|
|
$
|
46,905
|
|
|
$
|
307,701
|
|
|
$
|
309,543
|
|
|
$
|
(28,329
|
)
|
|
$
|
13,411
|
|
|
$
|
649,231
|
|
Net income
|
|
—
|
|
|
—
|
|
|
28,731
|
|
|
—
|
|
|
443
|
|
|
29,174
|
|
||||||
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,475
|
|
|
669
|
|
|
2,144
|
|
||||||
Stock issued for stock and employee benefit plans, net of cancellations and withholding tax
|
|
2
|
|
|
(5
|
)
|
|
(24
|
)
|
|
—
|
|
|
—
|
|
|
(27
|
)
|
||||||
Purchases of 177 shares of common stock
|
|
(177
|
)
|
|
(3,295
|
)
|
|
(1,644
|
)
|
|
—
|
|
|
—
|
|
|
(5,116
|
)
|
||||||
Stock option and restricted stock expense
|
|
—
|
|
|
2,495
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,495
|
|
||||||
Dividends declared and paid ($0.13/share)
|
|
—
|
|
|
—
|
|
|
(6,103
|
)
|
|
—
|
|
|
—
|
|
|
(6,103
|
)
|
||||||
Dividends declared not paid ($0.13/share)
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
||||||
At January 26, 2019
|
|
$
|
46,730
|
|
|
$
|
306,896
|
|
|
$
|
330,491
|
|
|
$
|
(26,854
|
)
|
|
$
|
14,523
|
|
|
$
|
671,786
|
|
ASU
|
|
Description
|
ASU 2017-06
|
|
Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): Employee Benefit Plan Master Trust Reporting
|
ASU 2017-12
|
|
Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities
|
ASU 2018-02
|
|
Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income
|
ASU 2018-07
|
|
Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting
|
ASU 2018-13
|
|
Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurements
|
ASU 2018-16
|
|
Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes
|
ASU
|
|
Description
|
|
Adoption Date
|
ASU 2016-13
|
|
Financial Instruments – Credit losses (Topic 326): Measurement of Credit Losses on Financial Instruments
|
|
Fiscal 2021
|
ASU 2018-14
|
|
Compensation – Retirement benefits – Defined Benefit Plans – General (Subtopic 715-20): Changes to the Disclosure Requirements for Defined Benefit Plans
|
|
Fiscal 2022
|
ASU 2019-12
|
|
Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes
|
|
Fiscal 2022
|
ASU 2020-01
|
|
Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 325, and Topic 815
|
|
Fiscal 2022
|
(Unaudited, amounts in thousands)
|
|
Joybird Acquisition
|
||
Fair value of consideration:
|
|
|
||
Cash (paid at closing)
|
|
$
|
37,482
|
|
Guaranteed payment
|
|
22,489
|
|
|
Acquisition earn-out
|
|
7,500
|
|
|
Assumption of liability
|
|
5,000
|
|
|
Working capital adjustment
|
|
(2,486
|
)
|
|
Total fair value of consideration
|
|
69,985
|
|
|
|
|
|
||
Amounts recognized for assets acquired and liabilities assumed:
|
|
|
||
Inventory
|
|
5,258
|
|
|
Other current assets
|
|
3,733
|
|
|
Property, plant and equipment
|
|
2,057
|
|
|
Finite-lived tradename
|
|
6,400
|
|
|
Other long-term assets
|
|
3,647
|
|
|
Accounts payable
|
|
(8,222
|
)
|
|
Customer deposits
|
|
(13,904
|
)
|
|
Other current liabilities
|
|
(7,681
|
)
|
|
Other long-term liabilities
|
|
(150
|
)
|
|
Total identifiable net liabilities acquired
|
|
(8,862
|
)
|
|
|
|
|
||
Goodwill
|
|
$
|
78,847
|
|
(Unaudited, amounts in thousands)
|
|
1/25/20
|
|
1/26/19
|
||||
Cash and cash equivalents
|
|
$
|
166,272
|
|
|
$
|
101,579
|
|
Restricted cash
|
|
1,973
|
|
|
2,003
|
|
||
Total cash, cash equivalents and restricted cash
|
|
$
|
168,245
|
|
|
$
|
103,582
|
|
(Unaudited, amounts in thousands)
|
|
1/25/20
|
|
4/27/19
|
||||
Raw materials
|
|
$
|
96,010
|
|
|
$
|
90,359
|
|
Work in process
|
|
14,055
|
|
|
13,728
|
|
||
Finished goods
|
|
110,168
|
|
|
114,478
|
|
||
FIFO inventories
|
|
220,233
|
|
|
218,565
|
|
||
Excess of FIFO over LIFO
|
|
(21,666
|
)
|
|
(21,666
|
)
|
||
Total inventories
|
|
$
|
198,567
|
|
|
$
|
196,899
|
|
(Unaudited, amounts in thousands)
|
|
1/25/20
|
||
Operating leases
|
|
|
||
ROU assets
|
|
$
|
318,124
|
|
Lease liabilities, short-term
|
|
65,089
|
|
|
Lease liabilities, long-term
|
|
267,955
|
|
|
Finance leases
|
|
|
||
ROU assets
|
|
$
|
38
|
|
Lease liabilities, short-term
|
|
39
|
|
|
Lease liabilities, long-term
|
|
—
|
|
(Unaudited, amounts in thousands)
|
|
1/25/20
|
||
Upholstery
|
|
$
|
57,800
|
|
Casegoods
|
|
4,214
|
|
|
Retail
|
|
242,987
|
|
|
Corporate & Other
|
|
13,161
|
|
|
Total ROU assets
|
|
$
|
318,162
|
|
(Unaudited, amounts in thousands)
|
|
Quarter Ended
|
|
Nine Months Ended
|
||||
Operating lease cost
|
|
$
|
18,987
|
|
|
$
|
57,024
|
|
Financing lease cost
|
|
40
|
|
|
139
|
|
||
Short-term lease cost
|
|
25
|
|
|
76
|
|
||
Variable lease cost
|
|
48
|
|
|
142
|
|
||
Less: Sublease income
|
|
(633
|
)
|
|
(1,893
|
)
|
||
Total lease cost
|
|
$
|
18,467
|
|
|
$
|
55,488
|
|
|
|
Nine Months Ended January 25, 2020
|
||||||
(Unaudited, amounts in thousands)
|
|
Operating Leases
|
|
Financing Leases
|
||||
Cash paid for amounts included in the measurement of lease liabilities
|
|
$
|
57,851
|
|
|
$
|
138
|
|
Lease liabilities arising from new ROU assets
|
|
52,954
|
|
|
—
|
|
|
|
1/25/20
|
||||
(Unaudited, amounts in thousands)
|
|
Operating Leases
|
|
Financing Leases
|
||
Weighted-average remaining lease term (years)
|
|
6.7
|
|
|
0.5
|
|
Weighted-average discount rate
|
|
3.8
|
%
|
|
3.9
|
%
|
|
|
1/25/20
|
|
4/27/19
|
||||||||||||
(Unaudited, amounts in thousands)
|
|
Operating Leases
|
|
Financing Leases
|
|
Operating Leases
|
|
Financing Leases
|
||||||||
Within one year
|
|
$
|
76,348
|
|
|
$
|
40
|
|
|
$
|
76,508
|
|
|
$
|
180
|
|
After one year and within two years
|
|
66,953
|
|
|
—
|
|
|
71,544
|
|
|
19
|
|
||||
After two years and within three years
|
|
55,988
|
|
|
—
|
|
|
58,763
|
|
|
—
|
|
||||
After three years and within four years
|
|
44,375
|
|
|
—
|
|
|
46,541
|
|
|
—
|
|
||||
After four years and within five years
|
|
37,576
|
|
|
—
|
|
|
36,082
|
|
|
—
|
|
||||
After five years
|
|
95,660
|
|
|
—
|
|
|
102,782
|
|
|
—
|
|
||||
Total lease payments
|
|
376,900
|
|
|
40
|
|
|
$
|
392,220
|
|
|
$
|
199
|
|
||
Less: Interest
|
|
43,856
|
|
|
1
|
|
|
|
|
|
||||||
Total lease obligations
|
|
$
|
333,044
|
|
|
$
|
39
|
|
|
|
|
|
|
|
|
Reportable Segment/Unit
|
|
Related Acquisition
|
Upholstery segment
|
|
Acquisition of the wholesale business in the United Kingdom and Ireland
|
Retail segment
|
|
Acquisitions of La-Z-Boy Furniture Galleries® stores
|
Corporate & Other
|
|
Acquisition of Joybird
|
(Unaudited, amounts in thousands)
|
|
Upholstery
Segment
|
|
Retail
Segment
|
|
Corporate
and Other
|
|
Total
Goodwill
|
||||||||
Balance at April 27, 2019
|
|
$
|
12,148
|
|
|
$
|
94,103
|
|
|
$
|
79,616
|
|
|
$
|
185,867
|
|
Acquisition adjustment
|
|
—
|
|
|
—
|
|
|
(769
|
)
|
|
(769
|
)
|
||||
Translation adjustment
|
|
148
|
|
|
82
|
|
|
—
|
|
|
230
|
|
||||
Balance at January 25, 2020
|
|
$
|
12,296
|
|
|
$
|
94,185
|
|
|
$
|
78,847
|
|
|
$
|
185,328
|
|
Reportable Segment/Unit
|
|
Intangible Asset
|
|
Useful Life
|
Upholstery segment
|
|
Primarily acquired customer relationships from our acquisition of the wholesale business in the United Kingdom and Ireland
|
|
Amortizable over useful lives that do not exceed 15 years
|
Casegoods segment
|
|
American Drew® trade name
|
|
Indefinite-lived
|
Retail segment
|
|
Reacquired rights to own and operate La-Z-Boy Furniture Galleries® stores
|
|
Indefinite-lived
|
Corporate & Other
|
|
Joybird® trade name
|
|
Amortizable over eight-year useful life
|
(Unaudited, amounts in thousands)
|
|
Indefinite-
Lived
Trade
Names
|
|
Finite-
Lived
Trade
Name
|
|
Indefinite-
Lived
Reacquired
Rights
|
|
Other
Intangible
Assets
|
|
Total
Other
Intangible
Assets
|
||||||||||
Balance at April 27, 2019
|
|
$
|
1,155
|
|
|
$
|
5,801
|
|
|
$
|
20,117
|
|
|
$
|
2,834
|
|
|
$
|
29,907
|
|
Amortization
|
|
—
|
|
|
(598
|
)
|
|
—
|
|
|
(165
|
)
|
|
(763
|
)
|
|||||
Translation adjustment
|
|
—
|
|
|
—
|
|
|
62
|
|
|
29
|
|
|
91
|
|
|||||
Balance at January 25, 2020
|
|
$
|
1,155
|
|
|
$
|
5,203
|
|
|
$
|
20,179
|
|
|
$
|
2,698
|
|
|
$
|
29,235
|
|
(Unaudited, amounts in thousands)
|
|
1/25/20
|
|
4/27/19
|
||||
Short-term investments:
|
|
|
|
|
||||
Marketable securities
|
|
$
|
18,891
|
|
|
$
|
18,016
|
|
Held-to-maturity investments
|
|
3,542
|
|
|
3,341
|
|
||
Total short-term investments
|
|
22,433
|
|
|
21,357
|
|
||
Long-term investments:
|
|
|
|
|
||||
Marketable securities
|
|
21,902
|
|
|
24,085
|
|
||
Cost basis investments
|
|
6,479
|
|
|
11,979
|
|
||
Total long-term investments
|
|
28,381
|
|
|
36,064
|
|
||
Total investments
|
|
$
|
50,814
|
|
|
$
|
57,421
|
|
|
|
|
|
|
||||
Investments to enhance returns on cash
|
|
$
|
30,109
|
|
|
$
|
31,470
|
|
Investments to fund compensation/retirement plans
|
|
14,226
|
|
|
13,972
|
|
||
Other investments
|
|
6,479
|
|
|
11,979
|
|
||
Total investments
|
|
$
|
50,814
|
|
|
$
|
57,421
|
|
|
|
1/25/20
|
|
4/27/19
|
||||||||||||||||||||
(Unaudited, amounts in thousands)
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
||||||||||||
Equity securities
|
|
$
|
1,922
|
|
|
$
|
(6,000
|
)
|
|
$
|
13,600
|
|
|
$
|
1,841
|
|
|
$
|
—
|
|
|
$
|
19,535
|
|
Fixed income
|
|
199
|
|
|
(8
|
)
|
|
31,962
|
|
|
75
|
|
|
(111
|
)
|
|
33,217
|
|
||||||
Other
|
|
376
|
|
|
—
|
|
|
5,252
|
|
|
258
|
|
|
(13
|
)
|
|
4,669
|
|
||||||
Total securities
|
|
$
|
2,497
|
|
|
$
|
(6,008
|
)
|
|
$
|
50,814
|
|
|
$
|
2,174
|
|
|
$
|
(124
|
)
|
|
$
|
57,421
|
|
|
|
Quarter Ended
|
|
Nine Months Ended
|
||||||||||||
(Unaudited, amounts in thousands)
|
|
1/25/20
|
|
1/26/19
|
|
1/25/20
|
|
1/26/19
|
||||||||
Proceeds from sales
|
|
$
|
11,517
|
|
|
$
|
6,550
|
|
|
$
|
23,887
|
|
|
$
|
14,304
|
|
Gross realized gains
|
|
431
|
|
|
726
|
|
|
618
|
|
|
811
|
|
||||
Gross realized losses
|
|
(62
|
)
|
|
(261
|
)
|
|
(150
|
)
|
|
(327
|
)
|
(Unaudited, amounts in thousands)
|
|
1/25/20
|
||
Within one year
|
|
$
|
19,041
|
|
Within two to five years
|
|
10,000
|
|
|
Within six to ten years
|
|
1,639
|
|
|
Thereafter
|
|
1,282
|
|
|
Total
|
|
$
|
31,962
|
|
|
|
Quarter Ended
|
|
Nine Months Ended
|
||||
(Unaudited, amounts in thousands)
|
|
01/26/19
|
|
01/26/19
|
||||
Service cost
|
|
$
|
223
|
|
|
$
|
869
|
|
Interest cost
|
|
1,116
|
|
|
3,348
|
|
||
Expected return on plan assets
|
|
(1,136
|
)
|
|
(3,408
|
)
|
||
Net amortization
|
|
639
|
|
|
1,917
|
|
||
Net periodic pension cost
|
|
$
|
842
|
|
|
$
|
2,726
|
|
|
|
Quarter Ended
|
|
Nine Months Ended
|
||||||||||||
(Unaudited, amounts in thousands)
|
|
01/25/20
|
|
01/26/19
|
|
01/25/20
|
|
01/26/19
|
||||||||
Balance as of the beginning of the period
|
|
$
|
23,081
|
|
|
$
|
25,197
|
|
|
$
|
22,736
|
|
|
$
|
21,205
|
|
Acquisitions
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,100
|
|
||||
Accruals during the period
|
|
6,321
|
|
|
5,660
|
|
|
17,746
|
|
|
16,270
|
|
||||
Settlements during the period
|
|
(6,057
|
)
|
|
(5,560
|
)
|
|
(17,137
|
)
|
|
(16,278
|
)
|
||||
Balance as of the end of the period
|
|
$
|
23,345
|
|
|
$
|
25,297
|
|
|
$
|
23,345
|
|
|
$
|
25,297
|
|
|
|
Quarter Ended
|
|
Nine Months Ended
|
||||||||||||
(Unaudited, amounts in thousands)
|
|
01/25/20
|
|
01/26/19
|
|
01/25/20
|
|
01/26/19
|
||||||||
Equity-based awards expense
|
|
$
|
2,528
|
|
|
$
|
2,495
|
|
|
$
|
7,235
|
|
|
$
|
8,174
|
|
Liability-based awards expense
|
|
(303
|
)
|
|
144
|
|
|
37
|
|
|
10
|
|
||||
Total stock-based compensation expense
|
|
$
|
2,225
|
|
|
$
|
2,639
|
|
|
$
|
7,272
|
|
|
$
|
8,184
|
|
(Unaudited)
|
|
Fiscal 2020 grant
|
||
Risk-free interest rate
|
|
2.19
|
%
|
|
Dividend rate
|
|
1.72
|
%
|
|
Expected life in years
|
|
5.0
|
|
|
Stock price volatility
|
|
34.27
|
%
|
|
Fair value per share
|
|
$
|
7.94
|
|
(Unaudited, amounts in thousands)
|
|
Translation adjustment
|
|
Change in fair value of cash flow hedge
|
|
Unrealized gain (loss) on marketable securities
|
|
Net pension amortization and net actuarial loss
|
|
Accumulated other comprehensive loss
|
||||||||||
Balance at October 26, 2019
|
|
$
|
1,345
|
|
|
$
|
—
|
|
|
$
|
418
|
|
|
$
|
(4,231
|
)
|
|
$
|
(2,468
|
)
|
Changes before reclassifications
|
|
50
|
|
|
—
|
|
|
41
|
|
|
—
|
|
|
91
|
|
|||||
Amounts reclassified to net income
|
|
—
|
|
|
—
|
|
|
(20
|
)
|
|
55
|
|
|
35
|
|
|||||
Tax effect
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(14
|
)
|
|
(19
|
)
|
|||||
Other comprehensive income attributable to La-Z-Boy Incorporated
|
|
50
|
|
|
—
|
|
|
16
|
|
|
41
|
|
|
107
|
|
|||||
Balance at January 25, 2020
|
|
$
|
1,395
|
|
|
$
|
—
|
|
|
$
|
434
|
|
|
$
|
(4,190
|
)
|
|
$
|
(2,361
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at October 27, 2018
|
|
$
|
(24
|
)
|
|
$
|
(24
|
)
|
|
$
|
(197
|
)
|
|
$
|
(28,084
|
)
|
|
$
|
(28,329
|
)
|
Changes before reclassifications
|
|
800
|
|
|
—
|
|
|
72
|
|
|
—
|
|
|
872
|
|
|||||
Amounts reclassified to net income
|
|
—
|
|
|
93
|
|
|
48
|
|
|
687
|
|
|
828
|
|
|||||
Tax effect
|
|
—
|
|
|
(23
|
)
|
|
(30
|
)
|
|
(172
|
)
|
|
(225
|
)
|
|||||
Other comprehensive income attributable to La-Z-Boy Incorporated
|
|
800
|
|
|
70
|
|
|
90
|
|
|
515
|
|
|
1,475
|
|
|||||
Balance at January 26, 2019
|
|
$
|
776
|
|
|
$
|
46
|
|
|
$
|
(107
|
)
|
|
$
|
(27,569
|
)
|
|
$
|
(26,854
|
)
|
(Unaudited, amounts in thousands)
|
|
Translation adjustment
|
|
Change in fair value of cash flow hedge
|
|
Unrealized gain (loss) on marketable securities
|
|
Net pension amortization and net actuarial loss
|
|
Accumulated other comprehensive loss
|
||||||||||
Balance at April 27, 2019
|
|
$
|
50
|
|
|
$
|
87
|
|
|
$
|
6
|
|
|
$
|
(3,605
|
)
|
|
$
|
(3,462
|
)
|
Changes before reclassifications
|
|
1,345
|
|
|
—
|
|
|
253
|
|
|
—
|
|
|
1,598
|
|
|||||
Reclassification of certain income tax effects (1)
|
|
—
|
|
|
(97
|
)
|
|
258
|
|
|
(708
|
)
|
|
(547
|
)
|
|||||
Amounts reclassified to net income
|
|
—
|
|
|
14
|
|
|
(28
|
)
|
|
164
|
|
|
150
|
|
|||||
Tax effect
|
|
—
|
|
|
(4
|
)
|
|
(55
|
)
|
|
(41
|
)
|
|
(100
|
)
|
|||||
Other comprehensive income (loss) attributable to La-Z-Boy Incorporated
|
|
1,345
|
|
|
(87
|
)
|
|
428
|
|
|
(585
|
)
|
|
1,101
|
|
|||||
Balance at January 25, 2020
|
|
$
|
1,395
|
|
|
$
|
—
|
|
|
$
|
434
|
|
|
$
|
(4,190
|
)
|
|
$
|
(2,361
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at April 28, 2018
|
|
$
|
2,388
|
|
|
$
|
154
|
|
|
$
|
1,376
|
|
|
$
|
(29,117
|
)
|
|
$
|
(25,199
|
)
|
Changes before reclassifications
|
|
(1,612
|
)
|
|
(369
|
)
|
|
175
|
|
|
—
|
|
|
(1,806
|
)
|
|||||
Cumulative effect adjustment for investments (2)
|
|
—
|
|
|
—
|
|
|
(1,637
|
)
|
|
—
|
|
|
(1,637
|
)
|
|||||
Amounts reclassified to net income
|
|
—
|
|
|
225
|
|
|
29
|
|
|
2,059
|
|
|
2,313
|
|
|||||
Tax effect
|
|
—
|
|
|
36
|
|
|
(50
|
)
|
|
(511
|
)
|
|
(525
|
)
|
|||||
Other comprehensive income (loss) attributable to La-Z-Boy Incorporated
|
|
(1,612
|
)
|
|
(108
|
)
|
|
(1,483
|
)
|
|
1,548
|
|
|
(1,655
|
)
|
|||||
Balance at January 26, 2019
|
|
$
|
776
|
|
|
$
|
46
|
|
|
$
|
(107
|
)
|
|
$
|
(27,569
|
)
|
|
$
|
(26,854
|
)
|
(1)
|
Income tax effects of the Tax Cuts and Jobs Act are reclassified from AOCI to retained earnings due to adoption of ASU 2018-02.
|
(2)
|
The cumulative effect adjustment for investments is composed of $2.1 million of unrealized gains on equity investments offset by $0.5 million of tax expense. We reclassified the net $1.6 million of cumulative effect adjustment from accumulated other comprehensive loss to retained earnings as a result of adopting ASU 2016-01.
|
|
|
Quarter Ended
|
|
Nine Months Ended
|
||||||||||||
(Unaudited, amounts in thousands)
|
|
1/25/20
|
|
1/26/19
|
|
1/25/20
|
|
1/26/19
|
||||||||
Balance as of the beginning of the period
|
|
$
|
15,543
|
|
|
$
|
13,411
|
|
|
$
|
14,468
|
|
|
$
|
13,035
|
|
Net income
|
|
204
|
|
|
443
|
|
|
434
|
|
|
1,428
|
|
||||
Other comprehensive income (loss)
|
|
(162
|
)
|
|
669
|
|
|
683
|
|
|
60
|
|
||||
Balance as of the end of the period
|
|
$
|
15,585
|
|
|
$
|
14,523
|
|
|
$
|
15,585
|
|
|
$
|
14,523
|
|
|
|
Quarter Ended January 25, 2020
|
||||||||||||||||||
(Unaudited, amounts in thousands)
|
|
Upholstery
|
|
Casegoods
|
|
Retail
|
|
Corporate
and Other
|
|
Total
|
||||||||||
Motion Upholstery Furniture
|
|
$
|
212,079
|
|
|
$
|
—
|
|
|
$
|
100,662
|
|
|
$
|
—
|
|
|
$
|
312,741
|
|
Stationary Upholstery Furniture
|
|
96,429
|
|
|
4,131
|
|
|
33,348
|
|
|
29,094
|
|
|
163,002
|
|
|||||
Bedroom Furniture
|
|
—
|
|
|
7,772
|
|
|
1,517
|
|
|
1,842
|
|
|
11,131
|
|
|||||
Dining Room Furniture
|
|
—
|
|
|
5,981
|
|
|
3,040
|
|
|
596
|
|
|
9,617
|
|
|||||
Occasional Furniture
|
|
383
|
|
|
11,619
|
|
|
6,148
|
|
|
516
|
|
|
18,666
|
|
|||||
Other (1)
|
|
27,805
|
|
|
(1,388
|
)
|
|
22,779
|
|
|
(6,379
|
)
|
|
42,817
|
|
|||||
Total
|
|
$
|
336,696
|
|
|
$
|
28,115
|
|
|
$
|
167,494
|
|
|
$
|
25,669
|
|
|
$
|
557,974
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
Eliminations
|
|
|
|
|
(82,118
|
)
|
||||||||||
|
|
|
|
Consolidated Net Sales
|
|
|
|
|
$
|
475,856
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Quarter Ended January 26, 2019
|
||||||||||||||||||
|
|
Upholstery
|
|
Casegoods
|
|
Retail
|
|
Corporate
and Other
|
|
Total
|
||||||||||
Motion Upholstery Furniture
|
|
$
|
212,631
|
|
|
$
|
—
|
|
|
$
|
100,232
|
|
|
$
|
—
|
|
|
$
|
312,863
|
|
Stationary Upholstery Furniture
|
|
94,551
|
|
|
3,844
|
|
|
27,652
|
|
|
24,096
|
|
|
150,143
|
|
|||||
Bedroom Furniture
|
|
—
|
|
|
7,447
|
|
|
1,586
|
|
|
1,296
|
|
|
10,329
|
|
|||||
Dining Room Furniture
|
|
—
|
|
|
5,733
|
|
|
3,097
|
|
|
610
|
|
|
9,440
|
|
|||||
Occasional Furniture
|
|
391
|
|
|
12,292
|
|
|
5,959
|
|
|
338
|
|
|
18,980
|
|
|||||
Other (1)
|
|
26,875
|
|
|
(1,251
|
)
|
|
20,891
|
|
|
(3,491
|
)
|
|
43,024
|
|
|||||
Total
|
|
$
|
334,448
|
|
|
$
|
28,065
|
|
|
$
|
159,417
|
|
|
$
|
22,849
|
|
|
$
|
544,779
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
Eliminations
|
|
|
|
|
(77,197
|
)
|
||||||||||
|
|
|
|
Consolidated Net Sales
|
|
|
|
|
$
|
467,582
|
|
(1)
|
Primarily includes revenue for delivery, advertising, royalties, parts, accessories, after-treatment products, tariff surcharges, discounts & allowances, rebates and other sales incentives.
|
|
|
Nine Months Ended January 25, 2020
|
||||||||||||||||||
(Unaudited, amounts in thousands)
|
|
Upholstery
|
|
Casegoods
|
|
Retail
|
|
Corporate
and Other
|
|
Total
|
||||||||||
Motion Upholstery Furniture
|
|
$
|
588,820
|
|
|
$
|
—
|
|
|
$
|
270,301
|
|
|
$
|
—
|
|
|
$
|
859,121
|
|
Stationary Upholstery Furniture
|
|
281,699
|
|
|
12,873
|
|
|
96,306
|
|
|
79,477
|
|
|
470,355
|
|
|||||
Bedroom Furniture
|
|
—
|
|
|
24,711
|
|
|
4,513
|
|
|
4,800
|
|
|
34,024
|
|
|||||
Dining Room Furniture
|
|
—
|
|
|
17,656
|
|
|
8,036
|
|
|
1,436
|
|
|
27,128
|
|
|||||
Occasional Furniture
|
|
1,083
|
|
|
33,988
|
|
|
16,728
|
|
|
1,374
|
|
|
53,173
|
|
|||||
Other (1)
|
|
79,365
|
|
|
(4,588
|
)
|
|
63,010
|
|
|
(16,555
|
)
|
|
121,232
|
|
|||||
Total
|
|
$
|
950,967
|
|
|
$
|
84,640
|
|
|
$
|
458,894
|
|
|
$
|
70,532
|
|
|
$
|
1,565,033
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
Eliminations
|
|
|
|
|
(228,332
|
)
|
||||||||||
|
|
|
|
Consolidated Net Sales
|
|
|
|
|
$
|
1,336,701
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Nine Months Ended January 26, 2019
|
||||||||||||||||||
|
|
Upholstery
|
|
Casegoods
|
|
Retail
|
|
Corporate
and Other
|
|
Total
|
||||||||||
Motion Upholstery Furniture
|
|
$
|
602,458
|
|
|
$
|
—
|
|
|
$
|
260,924
|
|
|
$
|
—
|
|
|
$
|
863,382
|
|
Stationary Upholstery Furniture
|
|
272,087
|
|
|
12,215
|
|
|
76,517
|
|
|
47,791
|
|
|
408,610
|
|
|||||
Bedroom Furniture
|
|
—
|
|
|
24,045
|
|
|
3,891
|
|
|
3,756
|
|
|
31,692
|
|
|||||
Dining Room Furniture
|
|
—
|
|
|
18,068
|
|
|
7,293
|
|
|
1,429
|
|
|
26,790
|
|
|||||
Occasional Furniture
|
|
1,202
|
|
|
38,003
|
|
|
15,000
|
|
|
828
|
|
|
55,033
|
|
|||||
Other (1)
|
|
69,192
|
|
|
(4,503
|
)
|
|
54,706
|
|
|
(4,712
|
)
|
|
114,683
|
|
|||||
Total
|
|
$
|
944,939
|
|
|
$
|
87,828
|
|
|
$
|
418,331
|
|
|
$
|
49,092
|
|
|
$
|
1,500,190
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
Eliminations
|
|
|
|
|
(208,580
|
)
|
||||||||||
|
|
|
|
Consolidated Net Sales
|
|
|
|
|
$
|
1,291,610
|
|
(1)
|
Primarily includes revenue for delivery, advertising, royalties, parts, accessories, after-treatment products, tariff surcharges, discounts & allowances, rebates and other sales incentives.
|
|
|
Quarter Ended
|
|
Nine Months Ended
|
||||||||||||
(Unaudited, amounts in thousands)
|
|
1/25/20
|
|
1/26/19
|
|
1/25/20
|
|
1/26/19
|
||||||||
Sales
|
|
|
|
|
|
|
|
|
||||||||
Upholstery segment:
|
|
|
|
|
|
|
|
|
||||||||
Sales to external customers
|
|
$
|
262,835
|
|
|
$
|
265,487
|
|
|
$
|
746,851
|
|
|
$
|
759,569
|
|
Intersegment sales
|
|
73,861
|
|
|
68,961
|
|
|
204,116
|
|
|
185,370
|
|
||||
Upholstery segment sales
|
|
336,696
|
|
|
334,448
|
|
|
950,967
|
|
|
944,939
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Casegoods segment:
|
|
|
|
|
|
|
|
|
||||||||
Sales to external customers
|
|
22,583
|
|
|
23,129
|
|
|
68,561
|
|
|
73,774
|
|
||||
Intersegment sales
|
|
5,532
|
|
|
4,936
|
|
|
16,079
|
|
|
14,054
|
|
||||
Casegoods segment sales
|
|
28,115
|
|
|
28,065
|
|
|
84,640
|
|
|
87,828
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Retail segment sales
|
|
167,494
|
|
|
159,417
|
|
|
458,894
|
|
|
418,331
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Corporate and Other:
|
|
|
|
|
|
|
|
|
||||||||
Sales to external customers
|
|
22,944
|
|
|
19,549
|
|
|
62,395
|
|
|
39,936
|
|
||||
Intersegment sales
|
|
2,725
|
|
|
3,300
|
|
|
8,137
|
|
|
9,156
|
|
||||
Corporate and Other sales
|
|
25,669
|
|
|
22,849
|
|
|
70,532
|
|
|
49,092
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Eliminations
|
|
(82,118
|
)
|
|
(77,197
|
)
|
|
(228,332
|
)
|
|
(208,580
|
)
|
||||
Consolidated sales
|
|
$
|
475,856
|
|
|
$
|
467,582
|
|
|
$
|
1,336,701
|
|
|
$
|
1,291,610
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating Income (Loss)
|
|
|
|
|
|
|
|
|
||||||||
Upholstery segment
|
|
$
|
46,512
|
|
|
$
|
34,566
|
|
|
$
|
104,859
|
|
|
$
|
90,602
|
|
Casegoods segment
|
|
2,534
|
|
|
3,332
|
|
|
7,336
|
|
|
10,173
|
|
||||
Retail segment
|
|
16,383
|
|
|
14,158
|
|
|
33,272
|
|
|
25,179
|
|
||||
Corporate and Other
|
|
(13,116
|
)
|
|
(11,213
|
)
|
|
(40,131
|
)
|
|
(33,451
|
)
|
||||
Consolidated operating income
|
|
52,313
|
|
|
40,843
|
|
|
105,336
|
|
|
92,503
|
|
||||
Interest expense
|
|
(265
|
)
|
|
(538
|
)
|
|
(891
|
)
|
|
(1,143
|
)
|
||||
Interest income
|
|
844
|
|
|
540
|
|
|
2,093
|
|
|
1,534
|
|
||||
Other income (expense), net
|
|
(5,998
|
)
|
|
(941
|
)
|
|
(5,390
|
)
|
|
(2,046
|
)
|
||||
Income before income taxes
|
|
$
|
46,894
|
|
|
$
|
39,904
|
|
|
$
|
101,148
|
|
|
$
|
90,848
|
|
|
|
Quarter Ended
|
|
Nine Months Ended
|
||||||||||||
(Unaudited, amounts in thousands)
|
|
1/25/20
|
|
1/26/19
|
|
1/25/20
|
|
1/26/19
|
||||||||
Numerator (basic and diluted):
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to La-Z-Boy Incorporated
|
|
$
|
34,512
|
|
|
$
|
28,731
|
|
|
$
|
75,174
|
|
|
$
|
67,046
|
|
Income allocated to participating securities
|
|
(45
|
)
|
|
(92
|
)
|
|
(121
|
)
|
|
(231
|
)
|
||||
Net income available to common Shareholders
|
|
$
|
34,467
|
|
|
$
|
28,639
|
|
|
$
|
75,053
|
|
|
$
|
66,815
|
|
|
|
|
|
|
|
|
|
|
||||||||
Denominator:
|
|
|
|
|
|
|
|
|
||||||||
Basic weighted average common shares outstanding
|
|
46,262
|
|
|
46,820
|
|
|
46,545
|
|
|
46,808
|
|
||||
Add:
|
|
|
|
|
|
|
|
|
||||||||
Contingent common shares
|
|
148
|
|
|
131
|
|
|
147
|
|
|
135
|
|
||||
Stock option dilution
|
|
174
|
|
|
140
|
|
|
175
|
|
|
269
|
|
||||
Diluted weighted average common shares outstanding
|
|
46,584
|
|
|
47,091
|
|
|
46,867
|
|
|
47,212
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Earnings per Share:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
0.75
|
|
|
$
|
0.61
|
|
|
$
|
1.61
|
|
|
$
|
1.43
|
|
Diluted
|
|
$
|
0.74
|
|
|
$
|
0.61
|
|
|
$
|
1.60
|
|
|
$
|
1.42
|
|
•
|
Level 1 — Financial assets and liabilities the values of which are based on unadjusted quoted market prices for identical assets and liabilities in an active market that we have the ability to access.
|
•
|
Level 2 — Financial assets and liabilities the values of which are based on quoted prices in markets that are not active or on model inputs that are observable for substantially the full term of the asset or liability.
|
•
|
Level 3 — Financial assets and liabilities the values of which are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement.
|
At January 25, 2020
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Fair Value Measurements
|
||||||||||||||||||
(Unaudited, amounts in thousands)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
NAV(1)
|
|
Total
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Marketable securities
|
|
$
|
4
|
|
|
$
|
33,417
|
|
|
$
|
—
|
|
|
$
|
7,372
|
|
|
$
|
40,793
|
|
Held-to-maturity investments
|
|
3,542
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,542
|
|
|||||
Cost basis investments
|
|
—
|
|
|
—
|
|
|
6,479
|
|
|
—
|
|
|
6,479
|
|
|||||
Total assets
|
|
$
|
3,546
|
|
|
$
|
33,417
|
|
|
$
|
6,479
|
|
|
$
|
7,372
|
|
|
$
|
50,814
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Contingent consideration liability
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,900
|
|
|
$
|
—
|
|
|
$
|
7,900
|
|
At April 27, 2019
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Fair Value Measurements
|
||||||||||||||||||
(Unaudited, amounts in thousands)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
NAV(1)
|
|
Total
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Marketable securities
|
|
$
|
5
|
|
|
$
|
34,390
|
|
|
$
|
—
|
|
|
$
|
7,706
|
|
|
$
|
42,101
|
|
Held-to-maturity investments
|
|
3,341
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,341
|
|
|||||
Cost basis investment
|
|
—
|
|
|
—
|
|
|
11,979
|
|
|
—
|
|
|
11,979
|
|
|||||
Total assets
|
|
$
|
3,346
|
|
|
$
|
34,390
|
|
|
$
|
11,979
|
|
|
$
|
7,706
|
|
|
$
|
57,421
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Contingent consideration liability
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,900
|
|
|
$
|
—
|
|
|
$
|
7,900
|
|
(1)
|
Certain marketable securities investments are measured at fair value using net asset value per share under the practical expedient methodology.
|
● future income, margins and cash flows
|
● future economic performance
|
● future sales
|
● industry and importing trends
|
● adequacy and cost of financial resources
|
● management plans and strategic initiatives
|
•
|
Our branded distribution channels, which include the La-Z-Boy Furniture Galleries® store network and the La-Z-Boy Comfort Studio® locations, our store-within-a-store format. We expect this initiative to generate growth in our Retail segment through an increased company-owned store count and in our wholesale Upholstery segment as our proprietary distribution network expands. We are not only focused on growing the number of locations, but also on upgrading existing store locations to our new concept designs.
|
•
|
Our company-owned retail business. We are growing this business by increasing same-store sales through improved execution at the store level and by acquiring existing La-Z-Boy Furniture Galleries® stores and opening new La-Z-Boy Furniture Galleries® stores, primarily in markets that can be serviced through our regional distribution centers, where we see opportunity for growth, or where we believe we have opportunities for further market penetration.
|
•
|
Our unique multi-channel distribution network. In addition to our branded distribution channels, nearly 2,200 other dealers sell La-Z-Boy products, providing us the benefit of multi-channel distribution. These outlets include some of the best-known names in the industry, including Art Van, Nebraska Furniture Mart, and Slumberland. Our other brands, England, American Drew, Hammary, and Kincaid, enjoy distribution through many of the same outlets. We believe there is significant growth potential for our brands through these retail channels.
|
•
|
Our on-trend products including stationary upholstered furniture featured in our Live Life Comfortably® marketing campaign. While we are known for our iconic recliners, they account for less than half of our sales in dollars, and we believe we have the potential to expand sales of our other products. To stimulate growth, our Live Life Comfortably® marketing campaign features celebrity brand ambassador, Kristen Bell, and focuses on expanding our digital marketing and e-commerce capabilities to build traffic across our multiple digital and physical properties. We are driving change throughout our digital platforms to improve the user experience, with a specific focus on the ease by which customers browse through our broad product assortment, customize products to their liking, find stores to make a purchase, or purchase at www.la-z-boy.com.
|
•
|
Our innovative products, including stain-resistant iClean™ and eco-friendly Conserve ™ fabrics and our power products, some of which include wireless hand remote, dual mechanisms and articulating headrests. Our innovation, duo®, is a revolutionary product line that features the look of stationary furniture with the power to recline at the push of a button. We are committed to innovation throughout our business, and to support these efforts we opened our new state-of-the-art Innovation Center in January 2019 at our Dayton, Tennessee campus.
|
•
|
Our multi-faceted online strategy to participate in and leverage the growth of online furniture sales. On July 30, 2018, we purchased Joybird, a leading e-commerce retailer and manufacturer of upholstered furniture, which positions us for growth in the ever-changing online selling environment and allows us to better reach millennial and Gen X consumers and leverage our supply chain assets. In addition, we continue to increase online sales of La-Z-Boy furniture through la-z-boy.com and other digital players, such as Wayfair and Amazon.
|
•
|
Upholstery Segment. Our Upholstery segment is our largest business segment and consists primarily of two operating segments: La-Z-Boy, our largest operating segment, and the operating segment for our England subsidiary. The Upholstery segment also includes our international wholesale businesses. We aggregate these operating segments into one reportable segment because they are economically similar and because they meet the other aggregation criteria for determining reportable segments. Our Upholstery segment manufactures and imports upholstered furniture such as recliners and motion furniture, sofas, loveseats, chairs, sectionals, modulars, ottomans and sleeper sofas. The Upholstery segment sells directly to La-Z-Boy Furniture Galleries® stores, operators of La-Z-Boy Comfort Studio® locations, England Custom Comfort Center locations, major dealers, and a wide cross-section of other independent retailers.
|
•
|
Casegoods Segment. Our Casegoods segment consists of one operating segment that sells furniture under three brands: American Drew®, Hammary®, and Kincaid®. The Casegoods segment is an importer, marketer, and distributor of casegoods (wood) furniture such as bedroom sets, dining room sets, entertainment centers and occasional pieces, and also manufactures some custom upholstered furniture. The Casegoods segment sells directly to major dealers, as well as La-Z-Boy Furniture Galleries® stores, and a wide cross-section of other independent retailers.
|
•
|
Retail Segment. Our Retail segment consists of one operating segment comprising our 155 company-owned La-Z-Boy Furniture Galleries® stores. The Retail segment primarily sells upholstered furniture, in addition to some casegoods and other accessories, to the end consumer through these stores.
|
•
|
Corporate & Other. Corporate & Other includes the shared costs for corporate functions, including human resources, information technology, finance and legal, in addition to revenue generated through royalty agreements with companies licensed to use the La-Z-Boy® brand name on various products. We consider our corporate functions to be other business activities and have aggregated them with our other insignificant operating segments including our global trading company in Hong Kong and Joybird, an e-commerce retailer. Joybird manufactures and sells upholstered furniture such as sofas, loveseats, chairs, ottomans, sleeper sofas and beds, and also imports and sells casegoods (wood) furniture such as occasional tables and other accessories. Joybird sells to end consumers primarily online through its website, www.joybird.com. None of the operating segments included in Corporate & Other meets the requirements of reportable segments at this time.
|
|
|
Quarter Ended
|
|
|
|
Nine Months Ended
|
|
|
||||||||||||
(Unaudited, amounts in thousands, except percentages)
|
|
01/25/20
|
|
01/26/19
|
|
%
Change
|
|
01/25/20
|
|
01/26/19
|
|
%
Change
|
||||||||
Sales
|
|
$
|
475,856
|
|
|
$
|
467,582
|
|
|
1.8
|
%
|
|
$1,336,701
|
|
$1,291,610
|
|
3.5
|
%
|
||
Operating income
|
|
52,313
|
|
|
40,843
|
|
|
28.1
|
%
|
|
105,336
|
|
|
92,503
|
|
|
13.9
|
%
|
||
Operating margin
|
|
11.0
|
%
|
|
8.7
|
%
|
|
|
|
7.9
|
%
|
|
7.2
|
%
|
|
|
●
|
Gross margin, which is calculated as gross profit as a percentage of sales, increased 140 basis points in both the third quarter and the first nine months of fiscal 2020, respectively, compared with the same periods a year ago.
|
•
|
Changes in our consolidated sales mix improved gross margin by 60 basis points and 100 basis points in the third quarter and the first nine months of fiscal 2020, respectively, compared with the same periods last fiscal year. This benefit was driven by the growth of our Retail segment and Joybird, which have higher gross margins than our Upholstery and Casegoods segments.
|
•
|
In both the third quarter and the first nine months of fiscal 2020, the Upholstery gross margin was impacted by supply chain inflationary pressures which were more than offset by efficiencies and lower commodity costs. Additionally, the prior year third quarter included a one-time benefit due to changes to our employee vacation policies, which absent this quarter, resulted in a decreased the Upholstery segment's gross margin in the third quarter and first nine months of this year.
|
•
|
Partly offsetting these benefits was a decline in our Casegoods segment’s gross margin, primarily due to higher ocean freight costs and the impact of higher tariff costs on certain occasional tables.
|
•
|
In connection with our supply chain initiative, we recognized costs resulting from the shift in manufacturing operations from closed facilities to other manufacturing locations in the third quarter and the first nine months of fiscal 2020, which resulted in a gross margin decrease of 20 basis points and 40 basis points, respectively.
|
●
|
SG&A expenses as a percentage of sales decreased 90 basis points in the third quarter but increased 70 basis points in the first nine months of fiscal 2020, compared with the same periods a year ago.
|
•
|
Changes in our consolidated sales mix increased SG&A expenses as a percentage of sales by 70 basis points and 140 basis points in the third quarter and first nine months of fiscal 2020, respectively, compared with the same periods last fiscal year. This increase was driven by the growth of our Retail segment and the acquisition of Joybird, which have higher levels of SG&A expense as a percentage of sales than our Upholstery and Casegoods segments.
|
•
|
The sale of our Redlands facility, which resulted in a $9.7 million pre-tax gain, drove a 200 basis point and 70 basis point improvement in SG&A expense as a percent of sales in the third quarter and first nine months of fiscal 2020, respectively.
|
•
|
In the third quarter of fiscal 2019 we recognized a one-time benefit of $3.8 million due to changes to our employee vacation policies, the absence of which in fiscal 2020 resulted in a comparative 80 basis point and a 30 basis point increase in SG&A as percent of sales in the third quarter and first nine months of this year, respectively.
|
|
|
Quarter Ended
|
|
|
|
Nine Months Ended
|
|
|
||||||||||||||
(Unaudited, amounts in thousands, except percentages)
|
|
01/25/20
|
|
01/26/19
|
|
%
Change
|
|
01/25/20
|
|
01/26/19
|
|
%
Change
|
||||||||||
Sales
|
|
$
|
336,696
|
|
|
$
|
334,448
|
|
|
0.7
|
%
|
|
$
|
950,967
|
|
|
$
|
944,939
|
|
|
0.6
|
%
|
Operating income
|
|
46,512
|
|
|
34,566
|
|
|
34.6
|
%
|
|
104,859
|
|
|
90,602
|
|
|
15.7
|
%
|
||||
Operating margin
|
|
13.8
|
%
|
|
10.3
|
%
|
|
|
|
11.0
|
%
|
|
9.6
|
%
|
|
|
●
|
Gross margin increased 60 basis points and 50 basis points in the third quarter and in first nine months of fiscal 2020, respectively, compared with the same periods a year ago.
|
•
|
Inflationary pressures in our supply chain were more than offset by efficiencies in the third quarter and the first nine months of fiscal 2020, respectively.
|
•
|
Lower raw material commodity prices provided an 80 basis point and a 110 basis point benefit to the segment’s gross margin in the third quarter and the first nine months of fiscal 2020, respectively.
|
•
|
Partially offsetting this, costs recognized in connection with our supply chain optimization initiative resulted in a gross margin decrease of 30 basis points and 60 basis points in the third quarter and the first nine months of fiscal 2020, respectively.
|
•
|
Additionally, the prior year third quarter included a one-time benefit due to changes to our employee vacation policies, the absence of which in fiscal 2020 resulted in a comparative 40 basis point and 10 basis point decrease in the segment's gross margin in the third quarter and first nine months of this year, respectively.
|
●
|
SG&A expense as a percentage of sales decreased 290 basis points and 90 basis points in the third quarter and first nine months of fiscal 2020, respectively, compared with the same periods a year ago, primarily due to the $9.7 million pre-tax gain on the sale of the Redlands facility. Partly offsetting this, the prior year third quarter included a one-time benefit due to changes to our employee vacation policies, the absence of which in fiscal 2020 resulted in a comparative 40 basis point and 20 basis point increase in the third quarter and first nine months of this year, respectively.
|
|
|
Quarter Ended
|
|
|
|
Nine Months Ended
|
|
|
||||||||||||||
(Unaudited, amounts in thousands except percentages)
|
|
01/25/20
|
|
01/26/19
|
|
%
Change |
|
01/25/20
|
|
01/26/19
|
|
%
Change |
||||||||||
Sales
|
|
$
|
28,115
|
|
|
$
|
28,065
|
|
|
0.2
|
%
|
|
$
|
84,640
|
|
|
$
|
87,828
|
|
|
(3.6
|
)%
|
Operating income
|
|
2,534
|
|
|
3,332
|
|
|
(23.9
|
)%
|
|
7,336
|
|
|
10,173
|
|
|
(27.9
|
)%
|
||||
Operating margin
|
|
9.0
|
%
|
|
11.9
|
%
|
|
|
|
8.7
|
%
|
|
11.6
|
%
|
|
|
●
|
Gross margin decreased 330 basis points and 290 basis points in the third quarter and the first nine months of fiscal 2020, respectively, compared with the same periods a year ago, primarily due to higher ocean freight costs and the impact of higher tariff costs on certain occasional tables.
|
●
|
SG&A expense as a percentage of sales was 40 basis points lower in the third quarter of fiscal 2020 and flat in the first nine months of fiscal 2020, compared with the same periods a year ago, primarily due to disciplined spending in response to lower sales volume. Partly offsetting this, the prior year third quarter included a one-time benefit due to changes to our employee vacation policies, the absence of which in fiscal 2020 resulted in a comparative 70 basis point and 20 basis point increase in the third quarter and first nine months of this year, respectively.
|
|
|
Quarter Ended
|
|
|
|
Nine Months Ended
|
|
|
||||||||||||||
(Unaudited, amounts in thousands, except percentages)
|
|
01/25/20
|
|
01/26/19
|
|
%
Change |
|
01/25/20
|
|
01/26/19
|
|
%
Change |
||||||||||
Sales
|
|
$
|
167,494
|
|
|
$
|
159,417
|
|
|
5.1
|
%
|
|
$
|
458,894
|
|
|
$
|
418,331
|
|
|
9.7
|
%
|
Operating income
|
|
16,383
|
|
|
14,158
|
|
|
15.7
|
%
|
|
33,272
|
|
|
25,179
|
|
|
32.1
|
%
|
||||
Operating margin
|
|
9.8
|
%
|
|
8.9
|
%
|
|
|
|
7.3
|
%
|
|
6.0
|
%
|
|
|
●
|
Gross margin increased 80 basis points and 40 basis points in the third quarter and the first nine months of fiscal 2020, respectively, compared with the same period a year ago, primarily due to favorable product mix and lower purchase accounting charges.
|
●
|
SG&A expense as a percentage of sales improved 10 basis points and 90 basis points in the third quarter and the first nine months of fiscal 2020, respectively, compared with the same periods a year ago, as we were better able to leverage our fixed costs (primarily occupancy and advertising) on increased delivered sales. The improvement in the first nine months of fiscal 2020 was primarily attributable to acquired stores which operate with lower SG&A expense as a percentage of sales compared with our existing stores. Partly offsetting this, the prior year third quarter included a one-time benefit due to changes to our employee vacation policies, the absence of which in fiscal 2020 resulted in a comparative 60 basis point and 20 basis point increase in the third quarter and first nine months of this year, respectively.
|
|
|
Quarter Ended
|
|
|
|
Nine Months Ended
|
|
|
||||||||||||||
(Unaudited, amounts in thousands, except percentages)
|
|
01/25/20
|
|
01/26/19
|
|
%
Change |
|
01/25/20
|
|
01/26/19
|
|
%
Change |
||||||||||
Sales
|
|
$
|
25,669
|
|
|
$
|
22,849
|
|
|
12.3
|
%
|
|
$
|
70,532
|
|
|
$
|
49,092
|
|
|
43.7
|
%
|
Intercompany eliminations
|
|
(82,118
|
)
|
|
(77,197
|
)
|
|
(6.4
|
)%
|
|
(228,332
|
)
|
|
(208,580
|
)
|
|
(9.5
|
)%
|
||||
Operating loss
|
|
(13,116
|
)
|
|
(11,213
|
)
|
|
(17.0
|
)%
|
|
(40,131
|
)
|
|
(33,451
|
)
|
|
(20.0
|
)%
|
|
|
Nine Months Ended
|
||||||
(Unaudited, amounts in thousands)
|
|
1/25/20
|
|
1/26/19
|
||||
Cash Flows Provided By (Used For)
|
|
|
|
|
||||
Net cash provided by operating activities
|
|
$
|
119,759
|
|
|
$
|
91,448
|
|
Net cash used for investing activities
|
|
(31,114
|
)
|
|
(114,399
|
)
|
||
Net cash used for financing activities
|
|
(53,294
|
)
|
|
(10,264
|
)
|
||
Exchange rate changes
|
|
1,107
|
|
|
(74
|
)
|
||
Change in cash, cash equivalents and restricted cash
|
|
$
|
36,458
|
|
|
$
|
(33,289
|
)
|
(Unaudited, amounts in thousands, except per share data)
|
|
Total number of shares purchased (1)
|
|
Average price paid per share
|
|
Total number of shares purchased as part of publicly announced plan (2)
|
|
Maximum number of shares that may yet be purchased under the plan
|
|||||
Fiscal November (October 27 – November 30, 2019)
|
|
103
|
|
|
$
|
34.09
|
|
|
103
|
|
|
5,105
|
|
Fiscal December (December 1 – December 28, 2019)
|
|
163
|
|
|
$
|
31.42
|
|
|
163
|
|
|
4,942
|
|
Fiscal January (December 29 – January 25, 2020)
|
|
113
|
|
|
$
|
31.70
|
|
|
112
|
|
|
4,830
|
|
Fiscal Third Quarter of 2020
|
|
379
|
|
|
$
|
32.23
|
|
|
378
|
|
|
4,830
|
|
(1)
|
In addition to the 377,662 shares we purchased during the quarter as part of our publicly announced, board-authorized plan described above, this column includes 1,215 shares purchased from employees to satisfy their withholding tax obligations upon vesting of restricted shares.
|
(2)
|
On October 28, 1987, our board of directors announced the authorization of the plan to repurchase company stock. The plan originally authorized 1.0 million shares, and since October 1987, 27.0 million shares have been added to the plan for repurchase. The authorization has no expiration date.
|
Exhibit
Number
|
|
Description
|
|
(4.1
|
)
|
|
|
(31.1
|
)
|
|
|
(31.2
|
)
|
|
|
(32
|
)
|
|
|
(101.INS)
|
|
|
Inline XBRL Instance Document
|
(101.SCH)
|
|
|
Inline XBRL Taxonomy Extension Schema Document
|
(101.CAL)
|
|
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document
|
(101.LAB)
|
|
|
Inline XBRL Taxonomy Extension Label Linkbase Document
|
(101.PRE)
|
|
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document
|
(101.DEF)
|
|
|
Inline XBRL Taxonomy Extension Definition Linkbase Document
|
(104
|
)
|
|
The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended January 25, 2020, formatted in Inline XBRL (included in Exhibit 101)
|
|
LA-Z-BOY INCORPORATED
|
|
|
(Registrant)
|
|
|
|
|
|
|
|
Date: February 18, 2020
|
|
|
|
|
|
|
|
|
|
BY:
|
/s/ Lindsay A. Barnes
|
|
Lindsay A. Barnes
Vice President, Corporate Controller and Chief Accounting Officer
|
BORROWERS:
|
LA-Z-BOY INCORPORATED, a Michigan corporation
|
SUBSIDIARY GUARANTORS:
|
LA-Z-BOY LOGISTICS, INC., a Michigan corporation
|
AND THE LENDERS:
|
Administrative Agent, Joint Lead Arranger, Joint Bookrunner, Swingline Lender, and a Lender
|
|
WELLS FARGO BANK, N.A., as Issuing Lender and a Lender
|
|
|
|
|
|
By:
|
____________________________
|
|
Name:
|
____________________________
|
|
Title:
|
____________________________
|
|
BANK OF AMERICA, N.A., as Documentation Agent, Joint Lead Arranger, Joint Bookrunner, and a Lender
|
|
|
|
|
|
By:
|
____________________________
|
|
Name:
|
____________________________
|
|
Title:
|
____________________________
|
|
JPMORGAN CHASE BANK, N.A., as Syndication Agent, Joint Lead Arranger, Joint Bookrunner, and a Lender
|
|
|
|
|
|
By:
|
____________________________
|
|
Name:
|
____________________________
|
|
Title:
|
____________________________
|
|
COMERICA BANK, as a Lender
|
|
|
|
|
|
By:
|
____________________________
|
|
Name:
|
____________________________
|
|
Title:
|
____________________________
|
Date: February 18, 2020
|
/s/ Kurt L. Darrow
|
|
Kurt L. Darrow
|
|
Chairman, President and Chief Executive Officer
|
Date: February 18, 2020
|
/s/ Melinda D. Whittington
|
|
Melinda D. Whittington
|
|
Senior Vice President and Chief Financial Officer
|
/s/ Kurt L. Darrow
|
|
Kurt L. Darrow
|
|
Chairman, President and Chief Executive Officer
|
|
February 18, 2020
|
|
/s/ Melinda D. Whittington
|
|
Melinda D. Whittington
|
|
Senior Vice President and Chief Financial Officer
|
|
February 18, 2020
|
|