La-Z-Boy (LZB) 8-K Results of Operations and Financial Condition

Exhibit 99.2

LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF INCOME

	Quarter Ended
(Unaudited, amounts in thousands, except per share data)	7/29/17			7/30/16
Sales	$	357,079		$	340,783
Cost of sales	217,976			206,562
Gross profit	139,103			134,221
Selling, general and administrative expense	122,805			111,763
Operating income	16,298			22,458
Interest expense	157			115
Interest income	343			204
Other income (expense), net	1,749			(762		)
Income before income taxes	18,233			21,785
Income tax expense	6,489			7,777
Net income	11,744			14,008
Net income attributable to noncontrolling interests	(93		)	(202		)
Net income attributable to La-Z-Boy Incorporated	$	11,651		$	13,806
Basic weighted average common shares	48,357			49,105
Basic net income attributable to La-Z-Boy Incorporated per share	$	0.24		$	0.28
Diluted weighted average common shares	48,846			49,594
Diluted net income attributable to La-Z-Boy Incorporated per share	$	0.24		$	0.28
Dividends declared per share	$	0.11		$	0.10

LA-Z-BOY INCORPORATED

CONSOLIDATED BALANCE SHEET

(Unaudited, amounts in thousands, except par value)	7/29/17			4/29/17
Current assets
Cash and equivalents	$	119,628		$	141,860
Restricted cash	5,963			8,999
Receivables, net of allowance of $2,557 at 7/29/17 and $2,563 at 4/29/17	134,904			150,846
Inventories, net	178,508			175,114
Other current assets	49,882			40,603
Total current assets	488,885			517,422
Property, plant and equipment, net	171,078			169,132
Goodwill	74,766			74,245
Other intangible assets, net	18,438			18,489
Deferred income taxes — long-term	38,372			40,131
Other long-term assets, net	76,982			69,436
Total assets	$	868,521		$	888,855
Current liabilities
Current portion of long-term debt	$	206		$	219
Accounts payable	47,352			51,282
Accrued expenses and other current liabilities	126,948			147,175
Total current liabilities	174,506			198,676
Long-term debt	242			296
Other long-term liabilities	90,777			88,778
Contingencies and commitments	—			—
Shareholders’ equity
Preferred shares — 5,000 authorized; none issued	—			—
Common shares, $1 par value — 150,000 authorized; 48,268 outstanding at 7/29/17 and 48,472 outstanding at 4/29/17	48,268			48,472
Capital in excess of par value	293,041			289,632
Retained earnings	280,251			284,698
Accumulated other comprehensive loss	(30,248		)	(32,883		)
Total La-Z-Boy Incorporated shareholders’ equity	591,312			589,919
Noncontrolling interests	11,684			11,186
Total equity	602,996			601,105
Total liabilities and equity	$	868,521		$	888,855

LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF CASH FLOWS

	Quarter Ended
(Unaudited, amounts in thousands)	7/29/17			7/30/16
Cash flows from operating activities
Net income	$	11,744		$	14,008
Adjustments to reconcile net income to cash provided by (used for) operating activities
Deferred income tax expense	1,344			(1,076		)
Provision for doubtful accounts	(22		)	(77		)
Depreciation and amortization	7,758			6,800
Equity-based compensation expense	3,558			3,329
Change in receivables	15,753			17,664
Change in inventories	(2,477		)	510
Change in other assets	(10,837		)	(1,467		)
Change in payables	(3,974		)	403
Change in other liabilities	(3,339		)	(4,341		)
Net cash provided by operating activities	19,508			35,753
Cash flows from investing activities
Proceeds from disposals of assets	459			35
Proceeds from property insurance	450			—
Capital expenditures	(9,146		)	(5,209		)
Purchases of investments	(10,851		)	(7,695		)
Proceeds from sales of investments	5,857			3,670
Acquisitions, net of cash acquired	(15,879		)	(5,281		)
Net cash used for investing activities	(29,110		)	(14,480		)
Cash flows from financing activities
Payments on debt	(66		)	(89		)
Stock issued for stock and employee benefit plans, net of shares withheld for taxes	377			860
Excess tax benefit on stock option exercises	—			1,137
Purchases of common stock	(11,491		)	(13,567		)
Dividends paid	(5,337		)	(4,923		)
Net cash used for financing activities	(16,517		)	(16,582		)
Effect of exchange rate changes on cash and equivalents	851			116
Change in cash, cash equivalents and restricted cash	(25,268		)	4,807
Cash, cash equivalents and restricted cash at beginning of period	150,859			121,335
Cash, cash equivalents and restricted cash at end of period	$	125,591		$	126,142
Supplemental disclosure of non-cash investing activities
Capital expenditures included in payables	$	1,671		$	—

LA-Z-BOY INCORPORATED

SEGMENT INFORMATION

	Quarter Ended
(Unaudited, amounts in thousands)	7/29/17			7/30/16
Sales
Upholstery segment:
Sales to external customers	$	224,814		$	223,809
Intersegment sales	49,593			43,607
Upholstery segment sales	274,407			267,416
Casegoods segment:
Sales to external customers	21,019			20,585
Intersegment sales	4,491			4,453
Casegoods segment sales	25,510			25,038
Retail segment sales	110,516			95,720
Corporate and Other:
Sales to external customers	730			669
Intersegment sales	1,930			1,210
Corporate and Other sales	2,660			1,879
Eliminations	(56,014		)	(49,270		)
Consolidated sales	$	357,079		$	340,783
Operating Income (Loss)
Upholstery segment	$	23,299		$	30,499
Casegoods segment	2,739			2,147
Retail segment	1,767			2,183
Corporate and Other	(11,507		)	(12,371		)
Consolidated operating income	$	16,298		$	22,458

LA-Z-BOY INCORPORATED

UNAUDITED FISCAL 2017 QUARTERLY FINANCIAL DATA (AS ADJUSTED)

In the first quarter of fiscal 2018, we early adopted the provisions of ASU 2017-07, which reclassified certain pension costs out of cost of sales and into other income (expense), net. This change required retrospective application to the prior year. To aid in the understanding of our financial results, the table below presents our fiscal 2017 quarterly financial results, as adjusted to conform to current year presentation.

(Unaudited, amounts in thousands, except per share data) Fiscal Quarter Ended	7/30/16			10/29/16			1/28/17			4/29/17
Sales	$	340,783		$	376,579		$	389,992		$	412,706
Cost of sales	206,562			227,195			233,185			243,815
Gross profit	134,221			149,384			156,807			168,891
Selling, general and administrative expense	111,763			115,526			123,235			125,437
Operating income	22,458			33,858			33,572			43,454
Interest expense	115			117			562			279
Interest income	204			234			241			302
Income from Continued Dumping and Subsidy Offset Act, net	—			—			273			—
Other income (expense), net	(762		)	(969		)	(52		)	(1,000		)
Income before income taxes	21,785			33,006			33,472			42,477
Income tax expense	7,777			11,901			9,830			14,248
Net income	14,008			21,105			23,642			28,229
Net income attributable to noncontrolling interests	(202		)	(272		)	(356		)	(232		)
Net income attributable to La-Z-Boy Incorporated	$	13,806		$	20,833		$	23,286		$	27,997
Diluted weighted average common shares	49,594			49,511			49,384			49,181
Diluted net income attributable to La-Z-Boy Incorporated per share	$	0.28		$	0.42		$	0.47		$	0.57
Dividends declared per share	$	0.10		$	0.10		$	0.11		$	0.11