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

Exhibit 99.2

LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF INCOME

	Quarter Ended
(Unaudited, amounts in thousands, except per share data)	1/27/18			1/28/17
Sales	$	413,638		$	389,992
Cost of sales	251,140			233,185
Gross profit	162,498			156,807
Selling, general and administrative expense	129,403			123,235
Operating income	33,095			33,572
Interest expense	113			562
Interest income	444			241
Income from Continued Dumping and Subsidy Offset Act, net	—			273
Other income (expense), net	(1,094		)	(52		)
Income before income taxes	32,332			33,472
Income tax expense	20,047			9,830
Net income	12,285			23,642
Net income attributable to noncontrolling interests	(176		)	(356		)
Net income attributable to La-Z-Boy Incorporated	$	12,109		$	23,286
Basic weighted average common shares	47,234			48,914
Basic net income attributable to La-Z-Boy Incorporated per share	$	0.26		$	0.47
Diluted weighted average common shares	47,757			49,384
Diluted net income attributable to La-Z-Boy Incorporated per share	$	0.25		$	0.47
Dividends declared per share	$	0.12		$	0.11

LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF INCOME

	Nine Months Ended
(Unaudited, amounts in thousands, except per share data)	1/27/18			1/28/17
Sales	$	1,163,922		$	1,107,354
Cost of sales	707,369			666,942
Gross profit	456,553			440,412
Selling, general and administrative expense	372,891			350,524
Operating income	83,662			89,888
Interest expense	430			794
Interest income	1,163			679
Income from Continued Dumping and Subsidy Offset Act, net	—			273
Gain on conversion of investment	2,204			—
Other income (expense), net	(2,475		)	(1,783		)
Income before income taxes	84,124			88,263
Income tax expense	36,889			29,508
Net income	47,235			58,755
Net income attributable to noncontrolling interests	(579		)	(830		)
Net income attributable to La-Z-Boy Incorporated	$	46,656		$	57,925
Basic weighted average common shares	47,852			49,057
Basic net income attributable to La-Z-Boy Incorporated per share	$	0.97		$	1.17
Diluted weighted average common shares	48,325			49,532
Diluted net income attributable to La-Z-Boy Incorporated per share	$	0.96		$	1.16
Dividends declared per share	$	0.34		$	0.31

LA-Z-BOY INCORPORATED

CONSOLIDATED BALANCE SHEET

(Unaudited, amounts in thousands, except par value)	1/27/18			4/29/17
Current assets
Cash and equivalents	$	135,266		$	141,860
Restricted cash	2,354			8,999
Receivables, net of allowance of $2,665 at 1/27/18 and $2,563 at 4/29/17	146,498			150,846
Inventories, net	186,319			175,114
Other current assets	43,242			40,603
Total current assets	513,679			517,422
Property, plant and equipment, net	174,877			169,132
Goodwill	75,765			74,245
Other intangible assets, net	18,510			18,489
Deferred income taxes — long-term	28,823			40,131
Other long-term assets, net	81,848			69,436
Total assets	$	893,502		$	888,855
Current liabilities
Current portion of long-term debt	$	231		$	219
Accounts payable	66,672			51,282
Accrued expenses and other current liabilities	131,166			147,175
Total current liabilities	198,069			198,676
Long-term debt	249			296
Other long-term liabilities	92,346			88,778
Contingencies and commitments
Shareholders’ equity
Preferred shares — 5,000 authorized; none issued	—			—
Common shares, $1 par value — 150,000 authorized; 47,068 outstanding at 1/27/18 and 48,472 outstanding at 4/29/17	47,068			48,472
Capital in excess of par value	297,408			289,632
Retained earnings	271,912			284,698
Accumulated other comprehensive loss	(26,509		)	(32,883		)
Total La-Z-Boy Incorporated shareholders’ equity	589,879			589,919
Noncontrolling interests	12,959			11,186
Total equity	602,838			601,105
Total liabilities and equity	$	893,502		$	888,855

LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF CASH FLOWS

	Nine Months Ended
(Unaudited, amounts in thousands)	1/27/18			1/28/17
Cash flows from operating activities
Net income	$	47,235		$	58,755
Adjustments to reconcile net income to cash provided by (used for) operating activities
Gain on disposal of assets	(1,849		)	(103		)
Gain on conversion of investment	(2,204		)	—
Deferred income tax expense	10,543			3,214
Provision for doubtful accounts	198			(64		)
Depreciation and amortization	23,671			21,311
Equity-based compensation expense	7,929			7,571
Pension plan contributions	(2,000		)	(2,300		)
Change in receivables	5,057			(576		)
Change in inventories	(9,142		)	(5,929		)
Change in other assets	(3,304		)	(4,415		)
Change in payables	12,529			6,359
Change in other liabilities	2,537			9,191
Net cash provided by operating activities	91,200			93,014
Cash flows from investing activities
Proceeds from disposals of assets	620			273
Proceeds from property insurance	1,807			—
Capital expenditures	(24,138		)	(15,529		)
Purchases of investments	(24,124		)	(20,778		)
Proceeds from sales of investments	17,109			13,899
Acquisitions, net of cash acquired	(16,495		)	(35,878		)
Net cash used for investing activities	(45,221		)	(58,013		)
Cash flows from financing activities
Payments on debt	(203		)	(217		)
Payments for debt issuance costs	(220		)	—
Stock issued for stock and employee benefit plans, net of shares withheld for taxes	1,418			1,739
Excess tax benefit on stock option exercises	—			1,924
Purchases of common stock	(46,074		)	(25,062		)
Dividends paid	(16,343		)	(15,270		)
Net cash used for financing activities	(61,422		)	(36,886		)
Effect of exchange rate changes on cash and equivalents	2,204			(139		)
Change in cash, cash equivalents and restricted cash	(13,239		)	(2,024		)
Cash, cash equivalents and restricted cash at beginning of period	150,859			121,335
Cash, cash equivalents and restricted cash at end of period	$	137,620		$	119,311
Supplemental disclosure of non-cash investing activities
Capital expenditures included in payables	$	3,926		$	1,012

LA-Z-BOY INCORPORATED

SEGMENT INFORMATION

	Quarter Ended						Nine Months Ended
(Unaudited, amounts in thousands)	1/27/18			1/28/17			1/27/18			1/28/17
Sales
Upholstery segment:
Sales to external customers	$	262,874		$	246,650		$	739,429		$	715,357
Intersegment sales	58,084			56,273			160,697			150,771
Upholstery segment sales	320,958			302,923			900,126			866,128
Casegoods segment:
Sales to external customers	23,887			20,499			68,821			64,651
Intersegment sales	3,328			2,760			11,969			9,534
Casegoods segment sales	27,215			23,259			80,790			74,185
Retail segment sales	125,815			122,121			353,068			325,206
Corporate and Other:
Sales to external customers	1,062			722			2,604			2,140
Intersegment sales	2,818			1,978			6,839			4,751
Corporate and Other sales	3,880			2,700			9,443			6,891
Eliminations	(64,230		)	(61,011		)	(179,505		)	(165,056		)
Consolidated sales	$	413,638		$	389,992		$	1,163,922		$	1,107,354
Operating Income (Loss)
Upholstery segment	$	31,699		$	35,669		$	88,422		$	104,388
Casegoods segment	2,792			1,593			8,833			6,587
Retail segment	7,076			6,325			12,746			11,515
Corporate and Other	(8,472		)	(10,015		)	(26,339		)	(32,602		)
Consolidated operating income	$	33,095		$	33,572		$	83,662		$	89,888