lzb-20210615
0000057131False00000571312021-06-152021-06-15

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 15, 2021
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 15, 2021, La-Z-Boy Incorporated (the “Company”) issued a news release to report the Company’s financial results for the fiscal quarter ended April 24, 2021. 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 15, 2021
BY:/s/ Jennifer L. McCurry
Jennifer L. McCurry
Vice President, Corporate Controller and Chief Accounting Officer


Document

EXHIBIT 99.1
https://cdn.kscope.io/4c76d6cd2c41118e8decfd86eeebb41a-lzbimagepressreleasea02.jpg
                        
NEWS RELEASE                    
    
Contact: Kathy Liebmann        (734) 241-2438                 kathy.liebmann@la-z-boy.com


LA-Z-BOY REPORTS FISCAL 2021 FOURTH-QUARTER AND FULL-YEAR RESULTS

Record Fourth-Quarter Sales and Profit
Strong Written Order Trends Drive Record Backlog


MONROE, Mich., June 15, 2021--La-Z-Boy Incorporated (NYSE: LZB), a global leader in residential furniture, today reported strong operating results for the fiscal 2021 fourth quarter and full year ended April 24, 2021.

Fiscal 2021 fourth quarter versus Fiscal 2020 fourth quarter:

Consolidated sales increased 41% to $519.5 million
Written same-store sales for the entire La-Z-Boy Furniture Galleries® network doubled, increasing 100%
Consolidated operating margin:
GAAP: 9.6% versus 3.7%
Non-GAAP(1): 10.0% versus 9.3%
Wholesale(2): 10.2% versus 11.1%
Retail: 12.2% versus 10.8%
Net income attributable to La-Z-Boy Incorporated per diluted share (“EPS”):
GAAP: $0.81 versus $0.05
Non-GAAP(1): $0.87 versus $0.49
The company returned $50 million to shareholders through share repurchases and dividends

Fiscal 2021 full year versus Fiscal 2020 full year:

Consolidated sales increased 1.8% to $1.7 billion
Written same-store sales for the entire La-Z-Boy Furniture Galleries® network increased 31%
Consolidated operating margin:
GAAP: 7.9% versus 7.0%
Non-GAAP(1): 9.0% versus 8.2%
Wholesale(2): 10.6% versus 10.6%
Retail: 7.7% versus 8.2%
Joybird became profitable
Net income attributable to La-Z-Boy Incorporated per diluted share (“EPS”):
GAAP: $2.30 versus $1.66
Non-GAAP(1): $2.62 versus $2.16
Cash generated from operating activities of $310 million versus $164 million in the prior year



Cash(3) at fiscal year end increased to $395 million versus $264 million in the prior year
The company returned $61 million to shareholders through share repurchases and dividends

Melinda D. Whittington, President and Chief Executive Officer of La-Z-Boy, said, "In an extremely difficult year marked by the pandemic, related macroeconomic uncertainty and supply chain disruption, we delivered strong results. Our start to the fiscal year in May 2020 came as the world was still in the early stages of its COVID-19 response. We had just restarted our plants after a month-long shutdown and retailers were slowly beginning to reopen. Progressing strongly from that starting point, for the fiscal 2021 full year, we delivered consolidated non-GAAP(1) operating margin of 9%, generated $310 million in cash from operations, and returned $61 million to shareholders through share repurchases and dividends. Additionally, we strengthened our business by significantly expanding production capacity, enhanced our retail platform, including the acquisition of the Seattle-based La-Z-Boy Furniture Galleries® stores, and turned Joybird profitable. All business units are experiencing record demand, demonstrating the strength of our brands in the marketplace combined with fantastic execution from all retail and sales teams. I thank every employee across the La-Z-Boy enterprise for their agility, hard work and dedication, all of which contributed to our excellent performance while in the midst of historic challenges.

"For the fiscal 2021 fourth quarter, record sales led to all-time record profits driven by increased production capacity, excellent performance by our company-owned La-Z-Boy Furniture Galleries® stores, and continued growth and profitability at Joybird. And, fiscal 2022 is off to a great start with continued robust written order rates and a record backlog, setting us up well for a strong year of shipments ahead."

Consolidated sales in the fourth quarter of fiscal 2021 increased 41.4% to $519.5 million versus the fiscal 2020 fourth quarter, which was impacted by COVID-19-related plant and retail closures. Consolidated GAAP operating margin increased to 9.6% versus 3.7% in the prior-year fourth quarter. Consolidated non-GAAP(1) operating margin improved to 10.0% versus 9.3% in last year’s fourth quarter, reflecting strong performance across all business units.

For the entire La-Z-Boy Furniture Galleries® network, written same-store sales doubled, increasing 100%, for the fiscal 2021 fourth quarter compared with the fiscal 2020 fourth quarter. Compared with the pre-pandemic fiscal 2019 fourth quarter, written same-store sales for the La-Z-Boy Furniture Galleries® network increased 29%.

For the fiscal 2021 fourth quarter, delivered sales in the company’s Wholesale(2) segment increased 40% to $384.0 million compared with the prior-year fourth quarter, which was impacted by COVID-19. Non-GAAP(1) operating margin for the Wholesale(2) segment was a healthy 10.2% versus 11.1% for the prior-year period, reflecting disciplined cost management on advertising which helped offset higher raw material and freight costs and expenses to expand production capacity to service record backlog. Last year's fourth quarter benefited from a one-time rebate of previously paid tariffs partially offset by higher bad debt expense.

Retail segment delivered sales increased 39% to $193.5 million in the fourth quarter of fiscal 2021 compared with the prior-year fourth quarter. Written same-store sales for the company-owned La-Z-Boy Furniture Galleries® stores more than doubled, increasing 114% in the quarter, reflecting positive trends across all sales metrics, including traffic, conversion and average ticket, versus last year's fourth quarter which included store closures during the last four weeks of the period. Non-GAAP(1) operating margin for the Retail segment was 12.2% in the fiscal 2021 fourth quarter versus 10.8% in last year’s fourth quarter, primarily driven by fixed-cost leverage on higher delivered sales volume.

Within Corporate & Other, Joybird sales more than doubled compared with the prior-year quarter, increasing 144% to $37.7 million. Written sales increased 125% compared with the prior-year quarter, reflecting ongoing strong order trends and the strength of the brand in the online marketplace. For the third consecutive quarter, Joybird posted strong gross margins, delivered profitable growth and increased conversion rates while increasing its marketing spend to drive customer acquisition.




GAAP diluted EPS was $0.81 for the fiscal 2021 fourth quarter versus $0.05 in the prior-year quarter. Non-GAAP(1) diluted EPS was $0.87 versus $0.49 in last year’s fourth quarter.

Balance Sheet and Cash Flow

For fiscal 2021, the company generated $310 million in cash from operating activities, reflecting strong profit performance and a $140 million increase in customer deposits from written orders for the company's Retail segment and Joybird. La-Z-Boy ended the period with $395 million in cash(3) and no debt, compared with $264 million in cash(3) and $75 million in short-term borrowings at the end of fiscal 2020. The company holds $32 million in investments to enhance returns on cash versus $29 million at the end of fiscal 2020. In fiscal 2021 the company spent $8 million related to acquisitions, invested $38 million in the business through capital expenditures, paid $17 million in dividends and spent $44 million repurchasing approximately 1.1 million shares of stock in the open market under its existing authorized share repurchase program, leaving 3.4 million shares available for repurchase under the program as of April 24, 2021.

Business Outlook

Demand trends remain strong across the business with backlog at record levels. The company anticipates ongoing incremental increases in manufacturing capacity throughout fiscal 2022 that will enable higher delivered sales, but expects ongoing global supply chain disruptions and headwinds related to raw materials and freight costs will cause some volatility in results. In the short term, the company expects a temporary negative impact to profit margins versus very strong fourth-quarter results due to dramatic raw material price increases which will only be offset by previously announced pricing actions as the company works through its backlog in the back half of the year.

Incoming order rates and backlog will mitigate the usual seasonal slowdown associated with the first quarter. However, as usual, capacity in the first quarter is limited to 12 weeks of production/shipments to enable a shutdown week in July for maintenance for most of the company’s plants, compared with 13 weeks in the second and fourth quarters.

Whittington said, "As we look ahead, our prudent financial culture and strong cash position provide opportunities for investment in our next chapter of growth. For the immediate term, we are focused on continuing to increase capacity and deliver units while making investments in technology solutions across the company, our stores, and updating and expanding our plants, all to enhance the consumer experience, drive future growth and emerge stronger in a post-pandemic environment."

(1)Non-GAAP amounts for the full fiscal 2021 year exclude:
purchase accounting charges related to acquisitions 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 $3.8 million pre-tax, or $0.07 per diluted share, related to the company's business realignment initiative announced in June 2020; and
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.

Non-GAAP amounts for the full fiscal 2020 year exclude:
a non-cash, non-tax deductible goodwill impairment charge of $26.9 million pre-tax, or $0.58 per diluted share;
a non-cash charge of $6.0 million pre-tax, or $0.09 per share, related to an impairment for one investment;
a purchase accounting net benefit of $1.4 million pre-tax, or $0.07 per diluted share, with a $2.1 million benefit included in operating income and $0.7 million expense included in interest expense



a net benefit of $4.4 million pre-tax, or $0.07 per diluted share, related to the company's supply chain optimization initiative, including the closure and sale of the company's Redlands, California upholstery manufacturing facility and relocation of its Newton, Mississippi leather cut-and-sew operations; and
a benefit of $1.9 million pre-tax, or $0.03 per diluted share, related to the 2019 termination of the company's defined benefit pension plan.

Non-GAAP amounts for the fourth quarter of fiscal 2021 exclude:
purchase accounting charges related to acquisitions 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 performance, with $1.9 million included in operating income and $0.1 million included in interest expense.

Non-GAAP amounts for the fourth quarter of fiscal 2020 exclude:
a non-cash, non-tax deductible goodwill impairment charge of $26.9 million pre-tax, or $0.58 per diluted share;
a purchase accounting net benefit of $5.9 million pre-tax, or $0.14 per diluted share, with a $6.1 million benefit included in operating income and $0.2 million included in interest expense; and
a benefit of $0.1 million pre-tax, or $0.00 per diluted share, related to the company's supply chain optimization initiative, including the closure of the company's Redlands, California upholstery manufacturing facility.

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)Wholesale segment: Effective in the first quarter of fiscal 2021, in order to better align with the manner in which we view and manage the business, coupled with economic and customer channel similarities, the company revised its reportable operating segments by aggregating the former Upholstery segment with the former Casegoods segment to form the newly combined Wholesale segment. The change in reportable operating segments reflects how the company evaluates financial information used to make operating decisions. Prior-period results disclosed in this earnings release with respect to the Wholesale segment have been revised to reflect these changes.

(3)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 16, 2021, at 8:30 a.m. Eastern time. The toll-free dial-in number is 844.602.0380; international callers may use 862.298.0970.

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: 41347. 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 2021 Annual Report on Form 10-K and other factors identified in our reports filed with the Securities and Exchange Commission. 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 Securities and Exchange Commission, 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®, and Kincaid®. The company-owned Retail segment includes 159 of the 354 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 354 stand-alone La-Z-Boy Furniture Galleries® stores and 561 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, Non-GAAP income before income taxes, Non-GAAP net income attributable to La-Z-Boy Incorporated and Non-GAAP net income attributable to La-Z-Boy Incorporated per diluted share, which may exclude, as applicable, goodwill impairment charges, business realignment charges, purchase accounting charges, charges for our supply chain optimization initiative, an impairment charge for one investment, benefits from the CARES Act, and refunds related to terminating the company's defined benefit pension plan. 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 COVID-19 Action Plan. 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 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. The benefits from the CARES Act include the impact of employee retention credits. 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 goodwill impairment charges and 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 goodwill impairment charges and 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 an impairment charge for one investment, benefits from the CARES Act and refunds related to the termination of the company's defined benefit pension plan when assessing the company's operating and financial performance due to the one-time 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)4/24/20214/25/20204/24/20214/25/2020
Sales$519,470 $367,281 $1,734,244 $1,703,982 
Cost of sales297,380 195,575 993,984 982,537 
Gross profit222,090 171,706 740,260 721,445 
Selling, general and administrative expense172,032 131,418 603,524 575,821 
Goodwill impairment— 26,862 — 26,862 
Operating income 50,058 13,426 136,736 118,762 
Interest expense(287)(400)(1,390)(1,291)
Interest income199 692 1,101 2,785 
Pension termination refund— — — 1,900 
Other income (expense), net1,471 307 9,466 (6,983)
Income before income taxes51,441 14,025 145,913 115,173 
Income tax expense13,484 10,649 38,384 36,189 
Net income37,957 3,376 107,529 78,984 
Net income attributable to noncontrolling interests(461)(1,081)(1,068)(1,515)
Net income attributable to La-Z-Boy Incorporated$37,496 $2,295 $106,461 $77,469 
Basic weighted average common shares45,739 45,962 45,983 46,399 
Basic net income attributable to La-Z-Boy Incorporated per share$0.82 $0.05 $2.31 $1.67 
Diluted weighted average common shares46,316 46,157 46,367 46,736 
Diluted net income attributable to La-Z-Boy Incorporated per share$0.81 $0.05 $2.30 $1.66 




LA-Z-BOY INCORPORATED
CONSOLIDATED BALANCE SHEET
(Unaudited, amounts in thousands, except par value)4/24/20214/25/2020
Current assets
Cash and equivalents$391,213 $261,553 
Restricted cash3,490 1,975 
Receivables, net of allowance of $4,011 at 4/24/2021 and $7,541 at 4/25/2020
139,341 99,351 
Inventories, net226,137 181,643 
Other current assets165,979 81,804 
Total current assets926,160 626,326 
Property, plant and equipment, net219,194 214,767 
Goodwill175,814 161,017 
Other intangible assets, net30,431 28,653 
Deferred income taxes – long-term11,915 20,839 
Right of use lease assets343,800 318,647 
Other long-term assets, net79,008 64,640 
Total assets$1,786,322 $1,434,889 
Current liabilities
Accounts payable$94,152 $55,511 
Short-term borrowings— 75,000 
Lease liabilities, current67,614 64,376 
Accrued expenses and other current liabilities449,904 155,282 
Total current liabilities611,670 350,169 
Lease liabilities, long-term295,023 270,162 
Other long-term liabilities97,483 98,252 
Shareholders' equity
Preferred shares – 5,000 authorized; none issued— — 
Common shares, $1 par value – 150,000 authorized; 45,361 outstanding at 4/24/2021 and 45,857 outstanding at 4/25/202045,361 45,857 
Capital in excess of par value330,648 318,215 
Retained earnings399,010 343,633 
Accumulated other comprehensive loss(1,521)(6,952)
Total La-Z-Boy Incorporated shareholders' equity773,498 700,753 
Noncontrolling interests8,648 15,553 
Total equity782,146 716,306 
Total liabilities and equity$1,786,322 $1,434,889 




LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF CASH FLOWS
Year Ended
(Unaudited, amounts in thousands)4/24/20214/25/2020
Cash flows from operating activities
Net income$107,529 $78,984 
Adjustments to reconcile net income to cash provided by operating activities
Gain on disposal of assets(37)(10,068)
Gain on sale of investments(954)(693)
Provision for doubtful accounts(3,169)13,383 
Depreciation and amortization33,021 31,192 
Equity-based compensation expense12,671 8,371 
Goodwill impairment— 26,862 
Pension termination refund— (1,900)
Change in deferred taxes8,790 719 
Change in receivables(38,288)29,686 
Change in inventories(40,727)14,900 
Change in right-of use lease asset65,571 67,673 
Change in other assets2,926 7,039 
Change in payables37,068 (9,913)
Change in lease liabilities(65,881)(66,238)
Change in other liabilities191,397 (25,755)
Net cash provided by operating activities309,917 164,242 
Cash flows from investing activities
Proceeds from disposals of assets2,770 11,273 
Proceeds from insurance— 1,080 
Capital expenditures(37,960)(46,035)
Purchases of investments(39,584)(37,477)
Proceeds from sales of investments36,071 37,244 
Acquisitions(2,000)— 
Net cash used for investing activities(40,703)(33,915)
Cash flows from financing activities
Net proceeds from credit facility— 75,000 
Payments on debt and finance lease liabilities(75,050)(161)
Holdback payments for acquisition purchases(5,783)(6,850)
Stock issued for stock and employee benefit plans, net of shares withheld for taxes9,030 3,029 
Purchases of common stock(44,202)(43,369)
Dividends paid to shareholders(16,542)(25,091)
Dividends paid to minority interest joint venture partners (1)(8,507)— 
Net cash (used for) provided by financing activities(141,054)2,558 
Effect of exchange rate changes on cash and equivalents3,015 (1,144)
Change in cash, cash equivalents and restricted cash131,175 131,741 
Cash, cash equivalents and restricted cash at beginning of period263,528 131,787 
Cash, cash equivalents and restricted cash at end of period$394,703 $263,528 
Supplemental disclosure of non-cash investing activities
Capital expenditures included in payables$4,638 $3,528 
(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)4/24/20214/25/20204/24/20214/25/2020
Sales
Wholesale segment:
Sales to external customers$286,119 $211,218 $1,006,377 $1,026,630 
Intersegment sales97,882 63,469 294,921 283,664 
Wholesale segment sales384,001 274,687 1,301,298 1,310,294 
Retail segment sales193,535 139,660 612,906 598,554 
Corporate and Other:
Sales to external customers39,816 16,403 114,961 78,798 
Intersegment sales3,405 2,157 12,409 10,294 
Corporate and Other sales43,221 18,560 127,370 89,092 
Eliminations(101,287)(65,626)(307,330)(293,958)
Consolidated sales$519,470 $367,281 $1,734,244 $1,703,982 
Operating Income (Loss)
Wholesale segment$39,003 $30,245 $134,312 $142,440 
Retail segment23,551 14,984 46,724 48,256 
Corporate and Other(12,496)(31,803)(44,300)(71,934)
Consolidated operating income$50,058 $13,426 $136,736 $118,762 




LA-Z-BOY INCORPORATED
UNAUDITED QUARTERLY FINANCIAL DATA

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 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 
Fiscal 2020
Fiscal Quarter Ended(13 weeks)(13 weeks)(13 weeks)(13 weeks)
(Amounts in thousands, except per share data)7/27/201910/26/20191/25/20204/25/2020
Sales$413,633 $447,212 $475,856 $367,281 
Cost of sales245,921 264,823 276,218 195,575 
Gross profit167,712 182,389 199,638 171,706 
Selling, general and administrative expense144,290 152,788 147,325 131,418 
Goodwill impairment— — — 26,862 
Operating income23,422 29,601 52,313 13,426 
Interest expense(318)(308)(265)(400)
Interest income727 522 844 692 
Pension termination charge— 1,900 — — 
Other income (expense), net(760)(532)(5,998)307 
Income before income taxes23,071 31,183 46,894 14,025 
Income tax expense5,083 8,279 12,178 10,649 
Net income17,988 22,904 34,716 3,376 
Net income attributable to noncontrolling interests81 (311)(204)(1,081)
Net income attributable to La-Z-Boy Incorporated$18,069 $22,593 $34,512 $2,295 
Diluted weighted average common shares47,125 46,879 46,584 46,157 
Diluted net income attributable to La-Z-Boy Incorporated per share$0.38 $0.48 $0.74 $0.05 




LA-Z-BOY INCORPORATED
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Quarter EndedYear Ended
(Amounts in thousands, except per share data)4/24/20214/25/20204/24/20214/25/2020
GAAP gross profit$222,090 $171,706 $740,260 $721,445 
Add back: Purchase accounting charges - incremental expense upon the sale of inventory acquired at fair value— 138 429 541 
Add back: Business realignment charges— — 1,253 — 
   Add back: Supply chain optimization initiative— 95 — 5,386 
Non-GAAP gross profit$222,090 $171,939 $741,942 $727,372 
GAAP SG&A$172,032 $131,418 $603,524 $575,821 
Less: Purchase accounting (charges) gains - adjustment to fair value of contingent consideration and amortization of intangible assets and retention agreements(1,859)6,240 (15,595)2,663 
Less: Business realignment charges— — (2,580)— 
Add back: Supply chain optimization initiative gain on sale — — — 9,745 
Non-GAAP SG&A$170,173 $137,658 $585,349 $588,229 
GAAP operating income$50,058 $13,426 $136,736 $118,762 
Add back: Purchase accounting charges1,859 (6,102)16,024 (2,122)
Add back: Business realignment charges— — 3,833 — 
Add back: Supply chain optimization initiative— 95 — (4,359)
Add back: Goodwill impairment— 26,862 — 26,862 
Non-GAAP operating income$51,917 $34,281 $156,593 $139,143 
GAAP income before income taxes$51,441 $14,025 $145,913 $115,173 
Add back: Purchase accounting charges recorded as part of gross profit, SG&A, and interest expense2,038 (5,933)16,694 (1,428)
Add back: Business realignment charges— — 3,833 — 
Add back: Supply chain optimization initiative charges/(gain) — 95 — (4,359)
Add back: Goodwill impairment— 26,862 — 26,862 
Less: CARES Act benefit— — (5,219)— 
Add back: Investment impairment— — — 6,000 
Less: Pension termination refund— — — (1,900)
Non-GAAP income before income taxes$53,479 $35,049 $161,221 $140,348 
GAAP net income attributable to La-Z-Boy Incorporated$37,496 $2,295 $106,461 $77,469 
Add back: Purchase accounting charges recorded as part of gross profit, SG&A, and interest expense2,038 (5,933)16,694 (1,428)
   Less: Tax effect of purchase accounting837 (635)(642)(1,746)
Add back: Business realignment charges— — 3,833 — 
   Less: Tax effect of business realignment charges— — (938)— 
Add back: Supply chain optimization initiative charges/(gain)— 95 — (4,359)
Less: Tax effect of supply chain optimization initiative— (30)13 1,176 
Add back: Goodwill impairment— 26,862 — 26,862 
Less: CARES Act benefit— — (5,219)— 
Add back: Tax effect of CARES Act benefit— — 1,261 — 
Add back: Investment impairment— — — 6,000 
   Less: Tax effect of investment impairment— — — (1,618)
Less: Pension termination refund— — — (1,900)
Add back: Tax effect of pension termination refund— — — 513 
Non-GAAP net income attributable to La-Z-Boy Incorporated$40,371 $22,654 $121,463 $100,969 
GAAP net income attributable to La-Z-Boy Incorporated per diluted share$0.81 $0.05 $2.30 $1.66 
Add back: Purchase accounting charges, net of tax, per share0.06 (0.14)0.33 (0.07)
Add back: Business realignment charges, net of tax, per share— — 0.07 — 
Less: Supply chain optimization initiative, net of tax, per share— — — (0.07)
Add back: Goodwill impairment, net of tax, per share— 0.58 — 0.58 
Less: CARES Act benefit, net of tax, per share— — (0.08)— 
Add back: Investment impairment, net of tax, per share— — — 0.09 
Less: Pension termination refund, net of tax, per share— — — (0.03)
Non-GAAP net income attributable to La-Z-Boy Incorporated per diluted share$0.87 $0.49 $2.62 $2.16 



LA-Z-BOY INCORPORATED
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
SEGMENT INFORMATION
Quarter EndedYear Ended
(Amounts in thousands)4/24/2021% of sales4/25/2020% of sales4/24/2021% of sales4/25/2020% of sales
GAAP operating income (loss)
Wholesale segment$39,003 10.2%$30,245 11.0%$134,312 10.3%$142,440 10.9%
   Retail segment23,551 12.2%14,984 10.7%46,724 7.6%48,256 8.1%
   Corporate and Other(12,496)N/M(31,803)N/M(44,300)N/M(71,934)N/M
Consolidated GAAP operating income$50,058 9.6%$13,426 3.7%$136,736 7.9%$118,762 7.0%
Non-GAAP items affecting operating income
Wholesale segment$60 $149 $3,346 $(4,139)
   Retail segment— 138 612 541 
   Corporate and Other1,799 20,568 15,899 23,979 
Consolidated Non-GAAP items affecting operating income$1,859 $20,855 $19,857 $20,381 
Non-GAAP operating income (loss)
Wholesale segment$39,063 10.2%$30,394 11.1%$137,658 10.6%$138,301 10.6%
   Retail segment23,551 12.2%15,122 10.8%47,336 7.7%48,797 8.2%
   Corporate and Other(10,697)N/M(11,235)N/M(28,401)N/M(47,955)N/M
Consolidated Non-GAAP operating income$51,917 10.0%$34,281 9.3%$156,593 9.0%$139,143 8.2%
N/M - Not Meaningful