La-Z-Boy (LZB) 8-K La-z-boy Reports Strong Fiscal 2019 Performance

Exhibit 99.2

LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF INCOME

	Unaudited For the Fiscal Quarter Ended						Unaudited For the Fiscal Year Ended
(Amounts in thousands, except per share data)	4/27/2019			4/28/2018			4/27/2019			4/28/2018
Sales	$	453,791		$	420,025		$	1,745,401		$	1,583,947
Cost of sales	264,018			253,831			1,042,831			961,200
Gross profit	189,773			166,194			702,570			622,747
Selling, general and administrative expense	152,602			120,487			572,896			493,378
Operating income	37,171			45,707			129,674			129,369
Interest expense	(399		)	(108		)	(1,542		)	(538		)
Interest income	569			546			2,103			1,709
Pension termination charge	(32,671		)	—			(32,671		)	—
Other expense, net	(191		)	(1,379		)	(2,237		)	(1,650		)
Income before income taxes	4,479			44,766			95,327			128,890
Income tax expense	2,812			10,406			25,186			47,295
Net income	1,667			34,360			70,141			81,595
Net income attributable to noncontrolling interests	(139		)	(150		)	(1,567		)	(729		)
Net income attributable to La-Z-Boy Incorporated	$	1,528		$	34,210		$	68,574		$	80,866
Basic weighted average common shares	46,889			46,928			46,828			47,621
Basic net income attributable to La-Z-Boy Incorporated per share	$	0.03		$	0.73		$	1.46		$	1.69
Diluted weighted average common shares	47,369			47,472			47,333			48,135
Diluted net income attributable to La-Z-Boy Incorporated per share	$	0.03		$	0.72		$	1.44		$	1.67

LA-Z-BOY INCORPORATED

CONSOLIDATED BALANCE SHEET

	Unaudited
(Amounts in thousands, except par value)	4/27/2019			4/28/2018
Current assets
Cash and equivalents	$	129,819		$	134,515
Restricted cash	1,968			2,356
Receivables, net of allowance of $2,180 at 4/27/19 and $1,956 at 4/28/18	143,288			154,055
Inventories, net	196,899			184,841
Other current assets	69,144			42,451
Total current assets	541,118			518,218
Property, plant and equipment, net	200,523			180,882
Goodwill	185,867			75,254
Other intangible assets, net	29,907			18,190
Deferred income taxes — long-term	20,670			21,265
Other long-term assets, net	81,705			79,158
Total assets	$	1,059,790		$	892,967
Current liabilities
Current portion of long-term debt	$	180		$	223
Accounts payable	65,365			62,403
Accrued expenses and other current liabilities	173,091			118,721
Total current liabilities	238,636			181,347
Long-term debt	19			199
Other long-term liabilities	124,159			86,205
Contingencies and commitments
Shareholders’ equity
Preferred shares — 5,000 authorized; none issued	—			—
Common shares, $1 par value — 150,000 authorized; 46,955 outstanding at 4/27/19 and 46,788 outstanding at 4/28/18	46,955			46,788
Capital in excess of par value	313,168			298,948
Retained earnings	325,847			291,644
Accumulated other comprehensive loss	(3,462		)	(25,199		)
Total La-Z-Boy Incorporated shareholders’ equity	682,508			612,181
Noncontrolling interests	14,468			13,035
Total equity	696,976			625,216
Total liabilities and equity	$	1,059,790		$	892,967

LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF CASH FLOWS

	Unaudited For the Fiscal Year Ended
(Amounts in thousands)	4/27/2019			4/28/2018
Cash flows from operating activities
Net income	$	70,141		$	81,595
Adjustments to reconcile net income to cash provided by operating activities
Gain on disposal of assets	(325		)	(2,108		)
Gain on conversion of investment	—			(2,204		)
Gain on sale of investments	(656		)	(770		)
Change in deferred taxes	(1,668		)	17,261
Change in provision for doubtful accounts	502			276
Depreciation and amortization	31,147			31,767
Stock-based compensation expense	10,981			9,474
Pension termination charge	32,671			—
Pension plan contributions	(7,000		)	(2,000		)
Change in receivables	7,195			(2,801		)
Change in inventories	3,135			(8,009		)
Change in other assets	(7,737		)	(3,245		)
Change in accounts payable	(2,388		)	6,602
Change in other liabilities	14,747			(10,088		)
Net cash provided by operating activities	150,745			115,750
Cash flows from investing activities
Proceeds from disposals of assets	1,941			1,440
Proceeds from property insurance	184			2,087
Capital expenditures	(48,433		)	(36,337		)
Purchases of investments	(20,698		)	(28,593		)
Proceeds from sales of investments	20,944			22,674
Acquisitions, net of cash acquired	(76,505		)	(16,495		)
Net cash used for investing activities	(122,567		)	(55,224		)
Cash flows from financing activities
Payments on debt	(223		)	(262		)
Payments for debt issuance costs	—			(231		)
Stock issued for stock and employee benefit plans, net of shares withheld for taxes	13,901			2,977
Purchases of common stock	(22,957		)	(56,730		)
Dividends paid	(23,508		)	(22,009		)
Net cash used for financing activities	(32,787		)	(76,255		)
Effect of exchange rate changes on cash and equivalents	(475		)	1,741
Change in cash, cash equivalents and restricted cash	(5,084		)	(13,988		)
Cash, cash equivalents and restricted cash at beginning of period	136,871			150,859
Cash, cash equivalents and restricted cash at end of period	$	131,787		$	136,871
Supplemental disclosure of non-cash investing activities
Capital expenditures included in accounts payable	$	3,250		$	5,667

LA-Z-BOY INCORPORATED

SEGMENT INFORMATION

	Unaudited For the Fiscal Quarter Ended						Unaudited For the Fiscal Year Ended
(Amounts in thousands)	4/27/2019			4/28/2018			4/27/2019			4/28/2018
Sales
Upholstery segment:
Sales to external customers	$	257,388		$	270,668		$	1,016,957		$	1,010,097
Intersegment sales	65,915			56,569			251,285			217,266
Upholstery segment sales	323,303			327,237			1,268,242			1,227,363
Casegoods segment:
Sales to external customers	21,903			27,098			95,677			95,919
Intersegment sales	4,742			3,505			18,796			15,474
Casegoods segment sales	26,645			30,603			114,473			111,393
Retail segment sales	151,870			121,545			570,201			474,613
Corporate and Other:
Sales to external customers	22,630			714			62,566			3,318
Intersegment sales	2,290			2,582			11,446			9,421
Corporate and Other sales	24,920			3,296			74,012			12,739
Eliminations	(72,947		)	(62,656		)	(281,527		)	(242,161		)
Consolidated sales	$	453,791		$	420,025		$	1,745,401		$	1,583,947
Operating Income (Loss)
Upholstery segment	$	37,304		$	41,927		$	127,906		$	130,349
Casegoods segment	2,416			2,808			12,589			11,641
Retail segment	12,743			7,963			37,922			20,709
Corporate and Other	(15,292		)	(6,991		)	(48,743		)	(33,330		)
Consolidated operating income	$	37,171		$	45,707		$	129,674		$	129,369

LA-Z-BOY INCORPORATED
UNAUDITED QUARTERLY FINANCIAL DATA

(Amounts in thousands, except per share data)	(13 weeks)			(13 weeks)			(13 weeks)			(13 weeks)
Fiscal Quarter Ended	7/28/2018			10/27/2018			1/26/2019			4/27/2019
Sales	$	384,695		$	439,333		$	467,582		$	453,791
Cost of sales	236,173			264,928			277,712			264,018
Gross profit	148,522			174,405			189,870			189,773
Selling, general and administrative expense	125,362			145,905			149,027			152,602
Operating income	23,160			28,500			40,843			37,171
Interest expense	(104		)	(501		)	(538		)	(399		)
Interest income	602			392			540			569
Pension termination charge	—			—			—			(32,671		)
Other income (expense), net	892			(1,997		)	(941		)	(191		)
Income before income taxes	24,550			26,394			39,904			4,479
Income tax expense	5,599			6,045			10,730			2,812
Net income	18,951			20,349			29,174			1,667
Net income attributable to noncontrolling interests	(648		)	(337		)	(443		)	(139		)
Net income attributable to La-Z-Boy Incorporated	$	18,303		$	20,012		$	28,731		$	1,528
Diluted weighted average common shares	47,161			47,259			47,091			47,369
Diluted net income attributable to La-Z-Boy Incorporated per share	$	0.39		$	0.42		$	0.61		$	0.03
Dividends declared per share	$	0.12		$	0.12		$	0.13		$	0.13

LA-Z-BOY INCORPORATED
UNAUDITED QUARTERLY FINANCIAL DATA

(Amounts in thousands, except per share data)	(13 weeks)			(13 weeks)			(13 weeks)			(13 weeks)
Fiscal Quarter Ended	7/29/2017			10/28/2017			1/27/2018			4/28/2018
Sales	$	357,079		$	393,205		$	413,638		$	420,025
Cost of sales	217,976			238,253			251,140			253,831
Gross profit	139,103			154,952			162,498			166,194
Selling, general and administrative expense	122,805			120,683			129,403			120,487
Operating income	16,298			34,269			33,095			45,707
Interest expense	(157		)	(160		)	(113		)	(108		)
Interest income	343			376			444			546
Other income (expense), net	1,749			(926		)	(1,094		)	(1,379		)
Income before income taxes	18,233			33,559			32,332			44,766
Income tax expense	6,489			10,353			20,047			10,406
Net income	11,744			23,206			12,285			34,360
Net income attributable to noncontrolling interests	(93		)	(310		)	(176		)	(150		)
Net income attributable to La-Z-Boy Incorporated	$	11,651		$	22,896		$	12,109		$	34,210
Diluted weighted average common shares	48,846			48,297			47,757			47,472
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Diluted net income attributable to La-Z-Boy Incorporated per share	$	0.24		$	0.47		$	0.25		$	0.72
Dividends declared per share	$	0.11		$	0.11		$	0.12		$	0.12

LA-Z-BOY INCORPORATED

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

	Unaudited for the Fiscal Quarter Ended						Unaudited for the Fiscal Year Ended
(Amounts in thousands, except per share data)	4/27/2019			4/28/2018			4/27/2019			4/28/2018
GAAP gross profit	$	189,773		$	166,194		$	702,570		$	622,747
Add back: Purchase accounting charges — incremental expense upon the sale of inventory acquired at fair value	175			99			3,086			474
Non-GAAP gross profit	$	189,948		$	166,293		$	705,656		$	623,221
GAAP SG&A	$	152,602		$	120,487		$	572,896		$	493,378
Less: Purchase accounting charges — amortization of intangible assets and retention agreements	(1,594		)	(106		)	(3,831		)	(449		)
Non-GAAP SG&A	$	151,008		$	120,381		$	569,065		$	492,929
GAAP operating income	$	37,171		$	45,707		$	129,674		$	129,369
Add back: Purchase accounting charges	1,769			205			6,917			923
Non-GAAP operating income	$	38,940		$	45,912		$	136,591		$	130,292
GAAP income before income taxes	$	4,479		$	44,766		$	95,327		$	128,890
Add back: Purchase accounting charges recorded as part of gross profit, SG&A, and interest expense	1,959			205			7,486			923
Add back: Pension termination charge	32,671			—			32,671			—
Non-GAAP income before income taxes	$	39,109		$	44,971		$	135,484		$	129,813
GAAP net income attributable to La-Z-Boy Incorporated	$	1,528		$	34,210		$	68,574		$	80,866
Add back: Purchase accounting charges recorded as part of gross profit, SG&A, and interest expense	1,959			205			7,486			923
Add back: Pension termination charge	32,671			—			32,671			—
Less: Tax effect of purchase accounting and pension termination charge	(5,915		)	(24		)	(7,275		)	(339		)
Non-GAAP net income attributable to La-Z-Boy Incorporated	$	30,243		$	34,391		$	101,456		$	81,450
GAAP net income attributable to La-Z-Boy Incorporated per diluted share	$	0.03		$	0.72		$	1.44		$	1.67
Add back: Purchase accounting charges, net of tax, per share	0.03			—			0.12			0.01
Add back: Pension termination charge, net of tax, per share	0.58			—			0.58			—
Non-GAAP net income attributable to La-Z- Boy Incorporated per diluted share	$	0.64		$	0.72		$	2.14		$	1.68

LA-Z-BOY INCORPORATED

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

SEGMENT INFORMATION

	Unaudited for the Fiscal Quarter Ended
(Amounts in thousands)	4/27/2019			% of sales		4/28/2018			% of sales
GAAP operating income (loss)
Upholstery segment	$	37,304		11.5	%	$	41,927		12.8	%
Casegoods segment	2,416			9.1	%	2,808			9.2	%
Retail segment	12,743			8.4	%	7,963			6.6	%
Corporate and Other	(15,292		)	N/M		(6,991		)	N/M
GAAP Consolidated operating income	$	37,171		8.2	%	$	45,707		10.9	%
Purchase accounting charges affecting operating income
Upholstery segment	$	57				$	106
Casegoods segment	—					—
Retail segment	175					99
Corporate and Other	1,537					—
Consolidated purchase accounting charges affecting operating income	$	1,769				$	205
Non-GAAP operating income (loss)
Upholstery segment	$	37,361		11.6	%	$	42,033		12.8	%
Casegoods segment	2,416			9.1	%	2,808			9.2	%
Retail segment	12,918			8.5	%	8,062			6.6	%
Corporate and Other	(13,755		)	N/M		(6,991		)	N/M
Non-GAAP Consolidated operating income	$	38,940		8.6	%	$	45,912		10.9	%

	Unaudited for the Fiscal Year Ended
(Amounts in thousands)	4/27/2019			% of sales		4/28/2018			% of sales
GAAP operating income (loss)
Upholstery segment	$	127,906		10.1	%	$	130,349		10.6	%
Casegoods segment	12,589			11.0	%	11,641			10.5	%
Retail segment	37,922			6.7	%	20,709			4.4	%
Corporate and Other	(48,743		)	N/M		(33,330		)	N/M
GAAP Consolidated operating income	$	129,674		7.4	%	$	129,369		8.2	%
Purchase accounting charges affecting operating income
Upholstery segment	$	20				$	222
Casegoods segment	—					—
Retail segment	1,683					701
Corporate and Other	5,214					—
Consolidated purchase accounting charges affecting operating income	$	6,917				$	923
Non-GAAP operating income (loss)
Upholstery segment	$	127,926		10.1	%	$	130,571		10.6	%
Casegoods segment	12,589			11.0	%	11,641			10.5	%
Retail segment	39,605			6.9	%	21,410			4.5	%
Corporate and Other	(43,529		)	N/M		(33,330		)	N/M
Non-GAAP Consolidated operating income	$	136,591		7.8	%	$	130,292		8.2	%

N/M — Not Meaningful