La-Z-Boy (LZB) 8-K La-z-boy Reports Fiscal 2009 Third-quarter Results

EXHIBIT 99.2

LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF OPERATIONS

	Third Quarter Ended
(Unaudited, amounts in thousands, except per share data)	01/24/09			01/26/08
Sales	$	288,576		$	373,081
Cost of sales
Cost of goods sold		207,356			265,078
Restructuring		1,664			(632	)
Total cost of sales		209,020			264,446
Gross profit		79,556			108,635
Selling, general and administrative		94,092			104,672
Write-down of long-lived assets		7,036			—
Write-down of intangibles		45,977			—
Restructuring		741			877
Operating income (loss)		(68,290	)		3,086
Interest expense		1,386			2,148
Interest income		323			1,134
Income from Continued Dumping and Subsidy Offset Act, net		8,124			7,147
Other income (expense), net		(7,433	)		3,785
Income (loss) from continuing operations before income taxes		(68,662	)		13,004
Income tax (benefit) expense		(4,280	)		3,876
Income (loss) from continuing operations		(64,382	)		9,128
Income from discontinued operations (net of tax)		—			384
Net income (loss)	$	(64,382	)	$	9,512
Basic average shares		51,475			51,417
Basic income (loss) from continuing operations per share	$	(1.25	)	$	0.18
Discontinued operations per share (net of tax)		—			0.01
Basic net income (loss) per share	$	(1.25	)	$	0.19
Diluted average shares		51,475			51,590
Diluted income (loss) from continuing operations per share	$	(1.25	)	$	0.18
Discontinued operations per share (net of tax)		—			—
Diluted net income (loss) per share	$	(1.25	)	$	0.18
Dividends paid per share	$	0.02		$	0.12

LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF OPERATIONS

	Nine Months Ended
(Unaudited, amounts in thousands, except per share data)	01/24/09			01/26/08
Sales	$	942,176		$	1,082,911
Cost of sales
Cost of goods sold		685,151			790,879
Restructuring		9,696			2,447
Total cost of sales		694,847			793,326
Gross profit		247,329			289,585
Selling, general and administrative		287,873			297,278
Write-down of long-lived assets		7,036			—
Write-down of intangibles		47,677			5,809
Restructuring		2,208			2,446
Operating loss		(97,465	)		(15,948	)
Interest expense		4,532			6,365
Interest income		1,885			3,039
Income from Continued Dumping and Subsidy Offset Act, net		8,124			7,147
Other income (expense), net		(7,974	)		4,701
Loss from continuing operations before income taxes		(99,962	)		(7,426	)
Income tax expense (benefit)		26,708			(4,359	)
Loss from continuing operations		(126,670	)		(3,067	)
Loss from discontinued operations (net of tax)		—			(6,050	)
Net loss	$	(126,670	)	$	(9,117	)
Basic average shares		51,454			51,402
Basic loss from continuing operations per share	$	(2.46	)	$	(0.06	)
Discontinued operations per share (net of tax)		—			(0.12	)
Basic net loss per share	$	(2.46	)	$	(0.18	)
Diluted average shares		51,454			51,402
Diluted loss from continuing operations per share	$	(2.46	)	$	(0.06	)
Discontinued operations per share (net of tax)		—			(0.12	)
Diluted net loss per share	$	(2.46	)	$	(0.18	)
Dividends paid per share	$	0.10		$	0.36

LA-Z-BOY INCORPORATED

CONSOLIDATED BALANCE SHEET

(Unaudited, amounts in thousands)	01/24/09			04/26/08
Current assets
Cash and equivalents	$	18,686		$	14,982
Receivables, net of allowance of $31,045 in 2009 and $17,942 in 2008		153,401			200,422
Inventories, net		172,259			178,361
Deferred income taxes—current		3,397			12,398
Other current assets		25,458			21,325
Total current assets		373,201			427,488
Property, plant and equipment, net		156,341			171,001
Deferred income taxes—long term		1,292			26,922
Goodwill		5,097			47,233
Trade names		3,100			9,006
Other long-term assets, net of allowance of $4,723 in 2009 and $2,801 in 2008		66,912			87,220
Total assets	$	605,943		$	768,870
Current liabilities
Current portion of long-term debt	$	9,547		$	4,792
Accounts payable		49,821			56,421
Accrued expenses and other current liabilities		89,263			102,700
Total current liabilities		148,631			163,913
Long-term debt		80,828			99,578
Deferred income taxes—long term		3,995			—
Other long-term liabilities		52,121			54,783
Shareholders' equity
Common shares, $1 par value		51,478			51,428
Capital in excess of par value		204,735			209,388
Retained earnings		65,693			190,215
Accumulated other comprehensive loss		(1,538	)		(435	)
Total shareholders' equity		320,368			450,596
Total liabilities and shareholders' equity	$	605,943		$	768,870

LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF CASH FLOWS

	Third Quarter Ended						Nine Months Ended
(Unaudited, amounts in thousands)	01/24/09			01/26/08			01/24/09			01/26/08
Cash flows from operating activities
Net income (loss)	$	(64,382	)	$	9,512		$	(126,670	)	$	(9,117	)
Adjustments to reconcile net income (loss) to cash provided by operating activities
Gain on sale of assets		(37	)		—			(2,707	)		—
(Gain) loss on the sale of discontinued operations (net of tax)		—			(96	)		—			3,894
Write-down of businesses held for sale (net of  tax)		—			—			—			2,159
Write-down of long-lived assets		7,036			—			7,036			—
Write-down of intangibles		45,977			—			47,677			5,809
Write-down of investments		5,140			—			5,140			—
Restructuring		2,405			245			11,904			4,893
Provision for doubtful accounts		9,439			2,754			18,439			6,373
Depreciation and amortization		5,827			6,193			17,770			18,506
Stock-based compensation expense		1,012			1,303			2,867			3,165
Change in receivables		31,405			53			23,314			9,241
Change in inventories		(3,463	)		8,645			7,380			17,897
Change in payables		(8,351	)		9,161			(6,424	)		(5,107	)
Change in other assets and liabilities		640			147			(25,885	)		(18,650	)
Change in deferred taxes		(4,658	)		3,676			38,180			(2,470	)
Total adjustments		92,372			32,081			144,691			45,710
Net cash provided by operating activities		27,990			41,593			18,021			36,593
Cash flows from investing activities
Proceeds from disposals of assets		45			456			7,831			7,738
Proceeds from sale of discontinued operations		—			150			—			4,169
Capital expenditures		(4,089	)		(5,239	)		(14,079	)		(20,838	)
Purchases of investments		(1,630	)		(15,807	)		(10,595	)		(29,077	)
Proceeds from sales of investments		10,854			15,649			21,881			30,242
Change in other long-term assets		(575	)		1,701			(346	)		2,086
Net cash provided by (used for) investing activities		4,605			(3,090	)		4,692			(5,680	)
Cash flows from financing activities
Proceeds from debt		15,992			574			55,458			1,391
Payments on debt		(43,752	)		(974	)		(69,039	)		(2,212	)
Stock issued/canceled for stock and employee benefit plans		—			(13	)		—			(129	)
Dividends paid		(1,037	)		(6,229	)		(5,188	)		(18,670	)
Net cash used for financing activities		(28,797	)		(6,642	)		(18,769	)		(19,620	)
Effect of exchange rate changes on cash and equivalents		(228	)		(1,378	)		(871	)		161
Change in cash and equivalents		3,570			30,483			3,073			11,454
Cash and equivalents at beginning of period		15,116			32,692			15,613			51,721
Cash and equivalents at end of period	$	18,686		$	63,175		$	18,686		$	63,175
Cash paid (net of refunds) during period – income taxes	$	(660	)	$	(4,336	)	$	(456	)	$	(443	)
Cash paid during period - interest	$	1,337		$	2,652		$	3,750		$	6,057

LA-Z-BOY INCORPORATED

SEGMENT INFORMATION

	Third Quarter Ended						Nine Months Ended
(Unaudited, amounts in thousands)	01/24/09 (13 weeks)			01/26/08 (13 weeks)			01/24/09 (39 weeks)			01/26/08 (39 weeks)
Sales
Upholstery Group	$	199,200		$	282,453		$	684,252		$	806,959
Casegoods Group		42,116			52,660			138,710			165,126
Retail Group		40,497			49,884			122,408			141,278
VIEs/Eliminations		6,763			(11,916	)		(3,194	)		(30,452	)
Consolidated	$	288,576		$	373,081		$	942,176		$	1,082,911
Operating income (loss)
Upholstery Group	$	(1,938	)	$	19,467		$	16,037		$	47,370
Casegoods Group		(313	)		2,222			1,819			8,399
Retail Group		(7,108	)		(8,507	)		(27,509	)		(27,700	)
Corporate and Other*		(3,513	)		(9,851	)		(21,195	)		(33,315	)
Long-lived asset write-down		(7,036	)		—			(7,036	)		—
Intangible write-down		(45,977	)		—			(47,677	)		(5,809	)
Restructuring		(2,405	)		(245	)		(11,904	)		(4,893	)
Consolidated	$	(68,290	)	$	3,086		$	(97,465	)	$	(15,948	)

*Variable Interest Entities ("VIEs") are included in corporate and other.