La-Z-Boy (LZB) 8-K La-z-boy Reports Fiscal 2014 Third-quarter Results

Exhibit 99.2

LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF INCOME

	Third Quarter Ended
(Unaudited, amounts in thousands, except per share data)	1/25/14			1/26/13
Sales	$	350,375		$	340,211
Cost of sales		228,186			227,956
Gross profit		122,189			112,255
Selling, general and administrative expense		96,740			89,443
Operating income		25,449			22,812
Interest expense		142			148
Interest income		183			198
Other income (expense), net		849			2,401
Income from continuing operations before income taxes		26,339			25,263
Income tax expense		8,751			8,391
Income from continuing operations		17,588			16,872
Income (loss) from discontinued operations, net of tax		(717	)		291
Net income		16,871			17,163
Net income attributable to noncontrolling interests		(388	)		(99	)
Net income attributable to La-Z-Boy Incorporated	$	16,483		$	17,064
Net income attributable to La-Z-Boy Incorporated:
Income from continuing operations attributable to La-Z-Boy Incorporated	$	17,200		$	16,773
Income (loss) from discontinued operations		(717	)		291
Net income attributable to La-Z-Boy Incorporated	$	16,483		$	17,064
Basic average shares		52,516			52,431
Basic net income attributable to La-Z-Boy Incorporated per share:						��
Income from continuing operations attributable to La-Z-Boy Incorporated	$	0.33		$	0.31
Income (loss) from discontinued operations		(0.02	)		0.01
Basic net income attributable to La-Z-Boy Incorporated per share	$	0.31		$	0.32
Diluted average shares		53,226			53,401
Diluted net income attributable to La-Z-Boy Incorporated per share:
Income from continuing operations attributable to La-Z-Boy Incorporated	$	0.32		$	0.31
Income (loss) from discontinued operations		(0.01	)		0.01
Diluted net income attributable to La-Z-Boy Incorporated per share	$	0.31		$	0.32
Dividends declared per share	$	0.06		$	0.04

LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF INCOME

	Nine Months Ended
(Unaudited, amounts in thousands, except per share data)	1/25/14			1/26/13
Sales	$	1,017,692		$	945,848
Cost of sales		670,011			646,038
Gross profit		347,681			299,810
Selling, general and administrative expense		281,767			259,111
Operating income		65,914			40,699
Interest expense		411			512
Interest income		539			435
Other income (expense), net		1,107			2,515
Income from continuing operations before income taxes		67,149			43,137
Income tax expense		22,462			14,912
Income from continuing operations		44,687			28,225
Income (loss) from discontinued operations, net of tax		(864	)		465
Net income		43,823			28,690
Net income attributable to noncontrolling interests		(1,006	)		(609	)
Net income attributable to La-Z-Boy Incorporated	$	42,817		$	28,081
Net income attributable to La-Z-Boy Incorporated:
Income from continuing operations attributable to La-Z-Boy Incorporated	$	43,681		$	27,616
Income (loss) from discontinued operations		(864	)		465
Net income attributable to La-Z-Boy Incorporated	$	42,817		$	28,081
Basic average shares		52,465			52,327
Basic net income attributable to La-Z-Boy Incorporated per share:
Income from continuing operations attributable to La-Z-Boy Incorporated	$	0.83		$	0.52
Income (loss) from discontinued operations		(0.02	)		0.01
Basic net income attributable to La-Z-Boy Incorporated per share	$	0.81		$	0.53
Diluted average shares		53,379			53,201
Diluted net income attributable to La-Z-Boy Incorporated per share:
Income from continuing operations attributable to La-Z-Boy Incorporated	$	0.81		$	0.51
Income (loss) from discontinued operations		(0.01	)		0.01
Diluted net income attributable to La-Z-Boy Incorporated per share	$	0.80		$	0.52
Dividends declared per share	$	0.14		$	0.04

LA-Z-BOY INCORPORATED

CONSOLIDATED BALANCE SHEET

(Unaudited, amounts in thousands)	1/25/14			4/27/13
Current assets
Cash and equivalents	$	140,112		$	131,085
Restricted cash		12,566			12,686
Receivables, net of allowance of $12,706 at 1/25/14 and $21,607 at 4/27/13		151,917			160,005
Inventories, net		159,586			146,343
Deferred income taxes – current		19,174			20,640
Business held for sale		8,923			—
Other current assets		27,797			30,121
Total current assets		520,075			500,880
Property, plant and equipment, net		122,422			118,060
Goodwill		13,923			12,837
Other intangible assets		5,931			4,838
Deferred income taxes – long-term		33,927			30,572
Other long-term assets, net		67,923			53,184
Total assets	$	764,201		$	720,371
Current liabilities
Current portion of long-term debt	$	7,574		$	513
Accounts payable		53,814			50,542
Business held for sale		2,653			—
Accrued expenses and other current liabilities		99,841			99,108
Total current liabilities		163,882			150,163
Long-term debt		345			7,576
Other long-term liabilities		80,652			70,664
Contingencies and commitments		—			—
Shareholders’ equity
Preferred shares – 5,000 authorized; none issued		—			—
Common shares, $1 par value – 150,000 authorized; 52,419 outstanding at 1/25/14 and 52,392 outstanding at 4/27/13		52,419			52,392
Capital in excess of par value		254,403			241,888
Retained earnings		240,628			226,044
Accumulated other comprehensive loss		(35,512	)		(35,496	)
Total La-Z-Boy Incorporated shareholders' equity		511,938			484,828
Noncontrolling interests		7,384			7,140
Total equity		519,322			491,968
Total liabilities and equity	$	764,201		$	720,371

LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF CASH FLOWS

	Nine Months Ended
(Unaudited, amounts in thousands)	1/25/14			1/26/13
Cash flows from operating activities
Net income	$	43,823		$	28,690
Adjustments to reconcile net income to cash provided by (used for) operating activities
Gain on sale of investments		(282	)		(2,866	)
Impairment of business held for sale		1,149			—
Deferred income tax benefit		(2,929	)		(745	)
Restructuring		(115	)		2,716
Provision for doubtful accounts		(2,494	)		1,009
Depreciation and amortization		17,529			17,111
Stock-based compensation expense		7,371			8,198
Pension plan contributions		—			(3,480	)
Change in receivables		4,865			2,457
Change in inventories		(15,166	)		(12,355	)
Change in other assets		2,980			(5,432	)
Change in payables		2,865			(6,261	)
Change in other liabilities		3,193			4,410
Net cash provided by operating activities		62,789			33,452
Cash flows from investing activities
Proceeds from disposal of assets		2,248			1,484
Capital expenditures		(23,078	)		(21,792	)
Purchases of investments		(40,796	)		(36,353	)
Proceeds from sales of investments		27,974			12,658
Acquisitions, net of cash acquired		(801	)		(15,832	)
Change in restricted cash		120			(6,937	)
Net cash used for investing activities		(34,333	)		(66,772	)
Cash flows from financing activities
Payments on debt		(434	)		(2,372	)
Stock issued for stock and employee benefit plans		3,526			1,528
Excess tax benefit on stock option exercises		5,805			1,117
Purchases of common stock		(20,276	)		(5,217	)
Dividends paid		(7,375	)		(2,119	)
Net cash used for financing activities		(18,754	)		(7,063	)
Effect of exchange rate changes on cash and equivalents		(675	)		(6	)
Change in cash and equivalents		9,027			(40,389	)
Cash and equivalents at beginning of period		131,085			152,370
Cash and equivalents at end of period	$	140,112		$	111,981
Supplemental disclosure of non-cash investing activities
Capital expenditures included in payables	$	2,183		$	—

LA-Z-BOY INCORPORATED

SEGMENT INFORMATION

	Third Quarter Ended						Nine Months Ended
(Unaudited, amounts in thousands)	1/25/14			1/26/13			1/25/14			1/26/13
Sales
Upholstery segment:
Sales to external customers	$	242,492		$	236,428		$	710,162		$	657,073
Intersegment sales		37,780			34,622			103,183			93,401
Upholstery segment sales		280,272			271,050			813,345			750,474
Casegoods segment:
Sales to external customers		27,267			30,496			85,733			95,841
Intersegment sales		2,367			2,115			7,269			5,907
Casegoods segment sales		29,634			32,611			93,002			101,748
Retail segment sales		80,212			72,772			219,845			191,089
Corporate and Other		404			515			1,952			1,845
Eliminations		(40,147	)		(36,737	)		(110,452	)		(99,308	)
Consolidated sales	$	350,375		$	340,211		$	1,017,692		$	945,848
Operating Income (Loss)
Upholstery segment	$	31,560		$	27,909		$	86,547		$	64,892
Casegoods segment		(41	)		200			1,161			2,381
Retail segment		3,087			2,668			8,264			105
Restructuring		60			(30	)		115			(2,633	)
Corporate and Other		(9,217	)		(7,935	)		(30,173	)		(24,046	)
Consolidated operating income	$	25,449		$	22,812		$	65,914		$	40,699