La-Z-Boy (LZB) 8-K La-z-boy Reports Second-quarter Results

EXHIBIT 99.2

LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF OPERATIONS

	Second Quarter Ended
(Unaudited, amounts in thousands, except per share data)	10/23/10			10/24/09
Sales	$	292,982		$	300,707
Cost of sales
Cost of goods sold		207,938			205,602
Restructuring		(62	)		663
Total cost of sales		207,876			206,265
Gross profit		85,106			94,442
Selling, general and administrative		79,657			84,619
Restructuring		110			520
Operating income		5,339			9,303
Interest expense		592			831
Interest income		223			199
Other income (expense), net		(418	)		236
Earnings before income taxes		4,552			8,907
Income tax expense		1,381			3,529
Net income		3,171			5,378
Net loss attributable to noncontrolling interests		774			588
Net income attributable to La-Z-Boy Incorporated	$	3,945		$	5,966
Basic average shares		51,855			51,527
Basic net income attributable to La-Z-Boy Incorporated per share	$	0.07		$	0.11
Diluted average shares		52,214			51,755
Diluted net income attributable to La-Z-Boy Incorporated per share	$	0.07		$	0.11

Prior period amounts included in these financial statements have been revised to incorporate all out-of-period corrections.

LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF OPERATIONS

	Six Months Ended
(Unaudited, amounts in thousands, except per share data)	10/23/10			10/24/09
Sales	$	556,296		$	563,378
Cost of sales
Cost of goods sold		398,439			387,715
Restructuring		(83	)		1,399
Total cost of sales		398,356			389,114
Gross profit		157,940			174,264
Selling, general and administrative		153,976			162,535
Restructuring		275			821
Operating income		3,689			10,908
Interest expense		1,182			1,811
Interest income		466			475
Other income (expense), net		(69	)		837
Earnings before income taxes		2,904			10,409
Income tax expense		675			3,526
Net income		2,229			6,883
Net loss attributable to noncontrolling interests		1,500			660
Net income attributable to La-Z-Boy Incorporated	$	3,729		$	7,543
Basic average shares		51,820			51,503
Basic net income attributable to La-Z-Boy Incorporated per share	$	0.07		$	0.14
Diluted average shares		52,228			51,551
Diluted net income attributable to La-Z-Boy Incorporated per share	$	0.07		$	0.14

Prior period amounts included in these financial statements have been revised to incorporate all out-of-period corrections.

LA-Z-BOY INCORPORATED

CONSOLIDATED BALANCE SHEET

(Unaudited, amounts in thousands)	10/23/10			04/24/10
Current assets
Cash and equivalents	$	83,656		$	108,427
Receivables, net of allowance of $22,596 at 10/23/10 and $20,258 at 04/24/10		168,974			165,001
Inventories, net		140,703			132,480
Deferred income taxes – current		2,305			2,305
Other current assets		20,807			18,862
Total current assets		416,445			427,075
Property, plant and equipment, net		131,070			138,857
Trade names		3,100			3,100
Deferred income taxes – long-term		464			458
Other long-term assets		35,442			38,293
Total assets	$	586,521		$	607,783
Current liabilities
Current portion of long-term debt	$	5,143		$	1,066
Accounts payable		46,773			54,718
Accrued expenses and other current liabilities		77,626			91,523
Total current liabilities		129,542			147,307
Long-term debt		40,522			46,917
Other long-term liabilities		69,518			70,445
Contingencies and commitments		—			—
Equity
La-Z-Boy Incorporated shareholders’ equity:
Common shares, $1 par value		51,865			51,770
Capital in excess of par value		200,772			201,873
Retained earnings		114,213			106,466
Accumulated other comprehensive loss		(19,285	)		(20,284	)
Total La-Z-Boy Incorporated shareholders' equity		347,565			339,825
Noncontrolling interests		(626	)		3,289
Total equity		346,939			343,114
Total liabilities and equity	$	586,521		$	607,783

Prior period amounts included in these financial statements have been revised to incorporate all out-of-period corrections.

LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF CASH FLOWS

	Second Quarter Ended						Six Months Ended
(Unaudited, amounts in thousands)	10/23/10			10/24/09			10/23/10			10/24/09
Cash flows from operating activities
Net income	$	3,171		$	5,378		$	2,229		$	6,883
Adjustments to reconcile net income to cash provided by (used for) operating activities
(Gain) loss on sale of assets		127			(75	)		154			(88	)
Restructuring		48			1,183			192			2,220
Provision for doubtful accounts		974			2,152			1,888			4,514
Depreciation and amortization		5,658			6,300			11,464			12,575
Stock-based compensation expense		1,329			1,621			2,356			2,628
Change in receivables		(18,983	)		(26,460	)		(2,034	)		(17,538	)
Change in inventories		(3,783	)		3,956			(12,790	)		2,075
Change in other assets		(3,232	)		11,075			(3,528	)		6,045
Change in payables		3,474			7,073			(7,193	)		4,747
Change in other liabilities		4,486			10,025			(11,558	)		11,944
Change in deferred taxes		(30	)		(8	)		7			—
Total adjustments		(9,932	)		16,842			(21,042	)		29,122
Net cash provided by (used for) operating activities		(6,761	)		22,220			(18,813	)		36,005
Cash flows from investing activities
Proceeds from disposals of assets		282			230			304			1,916
Capital expenditures		(2,552	)		(1,340	)		(4,987	)		(2,779	)
Purchases of investments		(2,297	)		(1,338	)		(6,630	)		(2,537	)
Proceeds from sales of investments		1,768			1,445			6,121			4,109
Change in restricted cash		—			—			—			17,007
Other		(31	)		29			(43	)		14
Net cash provided by (used for) investing activities		(2,830	)		(974	)		(5,235	)		17,730
Cash flows from financing activities
Proceeds from debt		10,218			10,213			20,456			20,673
Payments on debt		(10,316	)		(10,408	)		(20,882	)		(32,567	)
Stock issued from stock plans		34			—			58			—
Net cash used for financing activities		(64	)		(195	)		(368	)		(11,894	)
Effect of exchange rate changes on cash and equivalents		310			(347	)		277			(168	)
Change in cash and equivalents		(9,345	)		20,704			(24,139	)		41,673
Cash reduction upon deconsolidation of VIE		—			—			(632	)		—
Cash and equivalents at beginning of period		93,001			38,339			108,427			17,370
Cash and equivalents at end of period	$	83,656		$	59,043		$	83,656		$	59,043
Cash paid (net of refunds) during period – income taxes	$	3,395		$	(13,348	)	$	5,856		$	(13,082	)
Cash paid during period – interest	$	538		$	563		$	1,075		$	1,288

Prior period amounts included in these financial statements have been revised to incorporate all out-of-period corrections.

LA-Z-BOY INCORPORATED

SEGMENT INFORMATION

	Second Quarter Ended						Six Months Ended
(Unaudited, amounts in thousands)	10/23/10			10/24/09			10/23/10			10/24/09
Sales
Upholstery Group	$	224,878		$	232,780		$	426,812		$	429,472
Casegoods Group		39,509			37,302			76,359			73,167
Retail Group		39,246			38,014			74,553			73,976
VIEs		7,744			12,248			15,286			23,987
Corporate and Other		449			1,679			826			3,540
Eliminations		(18,844	)		(21,316	)		(37,540	)		(40,764	)
Consolidated Sales	$	292,982		$	300,707		$	556,296		$	563,378
Operating Income (Loss)
Upholstery Group	$	17,055		$	25,328		$	27,112		$	41,051
Casegoods Group		1,376			(184	)		2,951			(305	)
Retail Group		(4,360	)		(5,301	)		(9,284	)		(10,969	)
VIEs		(1,104	)		(933	)		(2,712	)		(1,126	)
Corporate and Other		(7,580	)		(8,424	)		(14,186	)		(15,523	)
Restructuring		(48	)		(1,183	)		(192	)		(2,220	)
Consolidated Operating Income	$	5,339		$	9,303		$	3,689		$	10,908

Prior period amounts included in these financial statements have been revised to incorporate all out-of-period corrections.