La-Z-Boy (LZB) 8-K La-z-boy Reports Third-quarter Profit

EXHIBIT 99.2

LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF OPERATIONS

	Third Quarter Ended
(Unaudited, amounts in thousands, except per share data)	01/23/10			01/24/09
Sales	$	305,094		$	288,576
Cost of sales
Cost of goods sold		206,895			207,809
Restructuring		392			1,664
Total cost of sales		207,287			209,473
Gross profit		97,807			79,103
Selling, general and administrative		83,527			93,501
Restructuring		201			741
Write-down of long-lived assets		—			7,036
Write-down of trade names		—			5,541
Write-down of goodwill		—			40,436
Operating income (loss)		14,079			(68,152	)
Interest expense		577			1,386
Interest income		140			323
Income from Continued Dumping and Subsidy Offset Act, net		4,436			8,124
Other income (expense), net		(593	)		(7,433	)
Earnings (loss) before income taxes		17,485			(68,524	)
Income tax (benefit) expense		6,547			(4,263	)
Net income (loss)		10,938			(64,261	)
Net (income) loss attributable to noncontrolling interests		38			(287	)
Net income (loss) attributable to La-Z-Boy Incorporated	$	10,976		$	(64,548	)
Basic average shares		51,546			51,475
Basic net income (loss) attributable to La-Z-Boy Incorporated per share	$	0.21		$	(1.25	)
Diluted average shares		51,845			51,475
Diluted net income (loss) attributable to La-Z-Boy Incorporated per share	$	0.21		$	(1.25	)
Dividends paid per share	$	—		$	0.02

LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF OPERATIONS

	Nine Months Ended
(Unaudited, amounts in thousands, except per share data)	01/23/10		01/24/09
Sales	$	868,472	$	942,176
Cost of sales
Cost of goods sold		593,406		686,494
Restructuring		1,791		9,696
Total cost of sales		595,197		696,190
Gross profit		273,275		245,986
Selling, general and administrative		246,011		286,603
Restructuring		1,022		2,208
Write-down of long-lived assets		—		7,036
Write-down of trade names		—		5,541
Write-down of goodwill		—		42,136
Operating income (loss)		26,242		(97,538	)
Interest expense		2,387		4,532
Interest income		615		1,885
Income from Continued Dumping and Subsidy Offset Act, net		4,436		8,124
Other income (expense), net		352		(7,974	)
Earnings (loss) before income taxes		29,258		(100,035	)
Income tax expense		10,747		27,388
Net income (loss)		18,511		(127,423	)
Net (income) loss attributable to noncontrolling interests		355		(407	)
Net income (loss) attributable to La-Z-Boy Incorporated	$	18,866	$	(127,830	)
Basic average shares		51,517		51,454
Basic net income (loss) attributable to La-Z-Boy Incorporated per share	$	0.36	$	(2.49	)
Diluted average shares		51,595		51,454
Diluted net income (loss) attributable to La-Z-Boy Incorporated per share	$	0.36	$	(2.49	)
Dividends paid per share	$	—	$	0.10

LA-Z-BOY INCORPORATED

CONSOLIDATED BALANCE SHEET

(Unaudited, amounts in thousands)	01/23/10			04/25/09
Current assets
Cash and equivalents	$	79,511		$	17,364
Restricted cash		—			18,713
Receivables, net of allowance of $25,547 at 01/23/10 and $28,385 at 04/25/09		158,656			147,858
Inventories, net		145,045			140,178
Deferred income taxes—current		795			795
Other current assets		16,435			22,872
Total current assets		400,442			347,780
Property, plant and equipment, net		135,928			146,896
Trade names		3,100			3,100
Other long-term assets		47,595			51,431
Total assets	$	587,065		$	549,207
Current liabilities
Current portion of long-term debt	$	1,848		$	8,724
Accounts payable		48,247			41,571
Accrued expenses and other current liabilities		88,635			75,733
Total current liabilities		138,730			126,028
Long-term debt		46,679			52,148
Deferred income taxes		736			724
Other long-term liabilities		68,958			63,875
Contingencies and commitments		—			—
Equity
La-Z-Boy Incorporated shareholders’ equity:
Common shares, $1 par value		51,546			51,478
Capital in excess of par value		201,093			205,945
Retained earnings		94,925			67,431
Accumulated other comprehensive loss		(19,807	)		(22,698	)
Total La-Z-Boy Incorporated shareholders' equity		327,757			302,156
Noncontrolling interests		4,205			4,276
Total equity		331,962			306,432
Total liabilities and equity	$	587,065		$	549,207

LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF CASH FLOWS

	Third Quarter Ended						Nine Months Ended
(Unaudited, amounts in thousands)	01/23/10			01/24/09			01/23/10			01/24/09
Cash flows from operating activities
Net income (loss)	$	10,938		$	(64,261	)	$	18,511		$	(127,423	)
Adjustments to reconcile net income (loss) to cash provided by operating activities
(Gain) loss on sale of assets		38			(37	)		(50	)		(2,707	)
Write-down of long-lived assets		—			7,036			—			7,036
Write-down of trade names		—			5,541			—			5,541
Write-down of goodwill		—			40,436			—			42,136
Write-down of investments		—			5,140			—			5,140
Restructuring		593			2,405			2,813			11,904
Provision for doubtful accounts		1,079			9,439			5,593			18,439
Depreciation and amortization		6,611			5,993			19,186			18,267
Stock-based compensation expense		1,454			1,012			4,082			2,867
Change in receivables		3,413			31,405			(14,173	)		23,314
Change in inventories		(6,098	)		(3,463	)		(4,867	)		7,380
Change in other assets		332			2,865			6,971			1,954
Change in payables		1,929			(8,351	)		6,676			(6,424	)
Change in other liabilities		2,707			(2,512	)		14,258			(28,245	)
Change in deferred taxes		(301	)		(4,658	)		(301	)		38,842
Total adjustments		11,757			92,251			40,188			145,444
Net cash provided by operating activities		22,695			27,990			58,699			18,021
Cash flows from investing activities
Proceeds from disposals of assets		9			45			1,925			7,831
Capital expenditures		(2,929	)		(4,089	)		(5,708	)		(14,079	)
Purchases of investments		(1,397	)		(1,630	)		(3,934	)		(10,595	)
Proceeds from sales of investments		1,684			10,854			5,793			21,881
Change in restricted cash		500			(4,709	)		17,507			(7,664	)
Change in other long-term assets		115			(575	)		129			(346	)
Net cash provided by (used for) investing activities		(2,018	)		(104	)		15,712			(2,972	)
Cash flows from financing activities
Proceeds from debt		10,718			15,992			31,391			55,458
Payments on debt		(11,169	)		(43,752	)		(43,736	)		(69,039	)
Dividends paid		—			(1,037	)		—			(5,188	)
Net cash used for financing activities		(451	)		(28,797	)		(12,345	)		(18,769	)
Effect of exchange rate changes on cash and equivalents		248			(228	)		81			(871	)
Change in cash and equivalents		20,474			(1,139	)		62,147			(4,591	)
Cash acquired from consolidation of VIEs		—			631			—			631
Cash and equivalents at beginning of period		59,037			11,024			17,364			14,476
Cash and equivalents at end of period	$	79,511		$	10,516		$	79,511		$	10,516
Cash paid (net of refunds) during period – income taxes	$	5,429		$	(660	)	$	(7,653	)	$	(456	)
Cash paid during period - interest	$	557		$	1,337		$	1,845		$	3,750

LA-Z-BOY INCORPORATED

SEGMENT INFORMATION

	Third Quarter Ended						Nine Months Ended
(Unaudited, amounts in thousands)	01/23/10 (13 weeks)			01/24/09 (13 weeks)			01/23/10 (39 weeks)			01/24/09 (39 weeks)
Sales
Upholstery Group	$	234,262		$	199,200		$	663,734		$	684,252
Casegoods Group		36,029			42,116			109,196			138,710
Retail Group		40,411			40,497			114,387			122,408
VIEs		15,629			13,430			39,616			39,301
Corporate and Other		603			1,084			4,143			3,362
Eliminations		(21,840	)		(7,751	)		(62,604	)		(45,857	)
Consolidated	$	305,094		$	288,576		$	868,472		$	942,176
Operating income (loss)
Upholstery Group	$	26,102		$	(1,652	)	$	67,751		$	16,542
Casegoods Group		292			(313	)		(13	)		1,819
Retail Group		(4,135	)		(7,108	)		(15,104	)		(27,509	)
VIEs		350			(1,381	)		(118	)		(5,422	)
Corporate and Other		(7,937	)		(2,280	)		(23,461	)		(16,351	)
Long-lived asset write-down		—			(7,036	)		—			(7,036	)
Goodwill write-down		—			(40,436	)		—			(42,136	)
Trade name write-down		—			(5,541	)		—			(5,541	)
Restructuring		(593	)		(2,405	)		(2,813	)		(11,904	)
Consolidated	$	14,079		$	(68,152	)	$	26,242		$	(97,538	)