La-Z-Boy (LZB) 8-K La-z-boy Reports Fiscal 2018 Second-quarter Results

Exhibit 99.2

LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF INCOME

	Quarter Ended
(Unaudited, amounts in thousands, except per share data)	10/28/17		10/29/16
Sales	$393,205		$376,579
Cost of sales	238,253		227,195
Gross profit	154,952		149,384
Selling, general and administrative expense	120,683		115,526
Operating income	34,269		33,858
Interest expense	160		117
Interest income	376		234
Other income (expense), net	(926	)	(969	)
Income before income taxes	33,559		33,006
Income tax expense	10,353		11,901
Net income	23,206		21,105
Net income attributable to noncontrolling interests	(310	)	(272	)
Net income attributable to La-Z-Boy Incorporated	$22,896		$20,833
Basic weighted average common shares	47,964		49,153
Basic net income attributable to La-Z-Boy Incorporated per share	$0.47		$0.42
Diluted weighted average common shares	48,297		49,511
Diluted net income attributable to La-Z-Boy Incorporated per share	$0.47		$0.42
Dividends declared per share	$0.11		$0.10

LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF INCOME

	Six Months Ended
(Unaudited, amounts in thousands, except per share data)	10/28/17		10/29/16
Sales	$750,284		$717,362
Cost of sales	456,229		433,757
Gross profit	294,055		283,605
Selling, general and administrative expense	243,488		227,289
Operating income	50,567		56,316
Interest expense	317		232
Interest income	719		438
Gain on conversion of investment	2,204		—
Other income (expense), net	(1,381	)	(1,731	)
Income before income taxes	51,792		54,791
Income tax expense	16,842		19,678
Net income	34,950		35,113
Net income attributable to noncontrolling interests	(403	)	(474	)
Net income attributable to La-Z-Boy Incorporated	$34,547		$34,639
Basic weighted average common shares	48,160		49,129
Basic net income attributable to La-Z-Boy Incorporated per share	$0.71		$0.70
Diluted weighted average common shares	48,537		49,554
Diluted net income attributable to La-Z-Boy Incorporated per share	$0.71		$0.70
Dividends declared per share	$0.22		$0.20

LA-Z-BOY INCORPORATED

CONSOLIDATED BALANCE SHEET

(Unaudited, amounts in thousands, except par value)	10/28/17		4/29/17
Current assets
Cash and equivalents	$122,345		$141,860
Restricted cash	2,352		8,999
Receivables, net of allowance of $2,656 at 10/28/17 and $2,563 at 4/29/17	145,167		150,846
Inventories, net	180,050		175,114
Other current assets	46,201		40,603
Total current assets	496,115		517,422
Property, plant and equipment, net	171,510		169,132
Goodwill	74,646		74,245
Other intangible assets, net	17,984		18,489
Deferred income taxes – long-term	40,097		40,131
Other long-term assets, net	81,191		69,436
Total assets	$881,543		$888,855
Current liabilities
Current portion of long-term debt	$238		$219
Accounts payable	53,426		51,282
Accrued expenses and other current liabilities	133,257		147,175
Total current liabilities	186,921		198,676
Long-term debt	314		296
Other long-term liabilities	89,950		88,778
Contingencies and commitments
Shareholders’ equity
Preferred shares – 5,000 authorized; none issued	—		—
Common shares, $1 par value – 150,000 authorized; 47,540 outstanding at 10/28/17 and 48,472 outstanding at 4/29/17	47,540		48,472
Capital in excess of par value	295,891		289,632
Retained earnings	279,344		284,698
Accumulated other comprehensive loss	(30,511	)	(32,883	)
Total La-Z-Boy Incorporated shareholders’ equity	592,264		589,919
Noncontrolling interests	12,094		11,186
Total equity	604,358		601,105
Total liabilities and equity	$881,543		$888,855

LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF CASH FLOWS

	Six Months Ended
(Unaudited, amounts in thousands)	10/28/17		10/29/16
Cash flows from operating activities
Net income	$34,950		$35,113
Adjustments to reconcile net income to cash provided by (used for) operating activities
Gain on disposal of assets	(1,884	)	(62	)
Gain on conversion of investment	(2,204	)	—
Deferred income tax expense	(403	)	1,089
Provision for doubtful accounts	74		(18	)
Depreciation and amortization	15,869		13,999
Equity-based compensation expense	6,410		5,880
Pension plan contributions	(2,000	)	(2,300	)
Change in receivables	6,165		784
Change in inventories	(4,096	)	(3,747	)
Change in other assets	(7,935	)	(1,806	)
Change in payables	2,136		1,549
Change in other liabilities	4,142		3,622
Net cash provided by operating activities	51,224		54,103
Cash flows from investing activities
Proceeds from disposals of assets	608		143
Proceeds from property insurance	1,485		—
Capital expenditures	(16,372	)	(10,226	)
Purchases of investments	(18,507	)	(17,814	)
Proceeds from sales of investments	11,529		9,757
Acquisitions, net of cash acquired	(15,879	)	(15,997	)
Net cash used for investing activities	(37,136	)	(34,137	)
Cash flows from financing activities
Payments on debt	(131	)	(156	)
Stock issued for stock and employee benefit plans, net of shares withheld for taxes	356		1,371
Excess tax benefit on stock option exercises	—		1,826
Purchases of common stock	(30,692	)	(19,766	)
Dividends paid	(10,648	)	(9,869	)
Net cash used for financing activities	(41,115	)	(26,594	)
Effect of exchange rate changes on cash and equivalents	865		(149	)
Change in cash, cash equivalents and restricted cash	(26,162	)	(6,777	)
Cash, cash equivalents and restricted cash at beginning of period	150,859		121,335
Cash, cash equivalents and restricted cash at end of period	$124,697		$114,558
Supplemental disclosure of non-cash investing activities capital expenditures included in payables	$1,631		$681

LA-Z-BOY INCORPORATED

SEGMENT INFORMATION

	Quarter Ended				Six Months Ended
(Unaudited, amounts in thousands)	10/28/17		10/29/16		10/28/17		10/29/16
Sales
Upholstery segment:
Sales to external customers	$251,741		$244,898		$476,555		$468,707
Intersegment sales	53,020		50,891		102,613		94,498
Upholstery segment sales	304,761		295,789		579,168		563,205
Casegoods segment:
Sales to external customers	23,915		23,567		44,934		44,152
Intersegment sales	4,150		2,321		8,641		6,774
Casegoods segment sales	28,065		25,888		53,575		50,926
Retail segment sales	116,737		107,365		227,253		203,085
Corporate and Other:
Sales to external customers	812		749		1,542		1,418
Intersegment sales	2,091		1,563		4,021		2,773
Corporate and Other sales	2,903		2,312		5,563		4,191
Eliminations	(59,261	)	(54,775	)	(115,275	)	(104,045	)
Consolidated sales	$393,205		$376,579		$750,284		$717,362
Operating Income (Loss)
Upholstery segment	$33,424		$38,220		$56,723		$68,719
Casegoods segment	3,302		2,847		6,041		4,994
Retail segment	3,903		3,007		5,670		5,190
Corporate and Other	(6,360	)	(10,216	)	(17,867	)	(22,587	)
Consolidated operating income	$34,269		$33,858		$50,567		$56,316