SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549-1004
FORM 10-Q
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
FOR QUARTER ENDED January 25, 1997 COMMISSION FILE NUMBER 1-9656
LA-Z-BOY INCORPORATED
(Exact name of registrant as specified in its charter)
MICHIGAN 38-0751137
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1284 North Telegraph Road, Monroe, Michigan 48162-3390
(Address of principal executive offices) (Zip Code)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE (313) 241-4414
LA-Z-BOY CHAIR COMPANY
Former name, former address and former fiscal year, if changed since last
report.
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by section 13 or 15 (d) of the Securities Exchange Act
of 1934 during the preceding 12 months and (2) has been subject to such
filing requirements for the past 90 days.
Yes [X] No [ ]
Indicate the number of shares outstanding of each issuer's classes of common
stock, as of the last practicable date:
Class Outstanding at January 25, 1997
Common Shares, $1.00 par value 17,960,888
Part I. Financial Information
The Consolidated Balance Sheet and Consolidated Statement of Income required
for Part I are contained in the Registrant's Financial Information Release
dated February 5, 1997 and are incorporated herein by reference.
LA-Z-BOY INCORPORATED CONSOLIDATED STATEMENTS OF CASH FLOWS
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(Unaudited, dollar amounts in thousands)
Three Months Ended Nine Months Ended
------------------- ------------------
Jan. 25, Jan. 27 Jan. 25, Jan. 27,
1997 1996 1997 1996
-------- -------- ------- --------
Cash Flows from Operating Activities
Net income $9,801 $7,784 $29,651 $25,215
Adjustments to reconcile net income
to net cash provided by operating
activities
Depreciation and amortization 5,189 4,886 15,215 14,305
Change in receivables 37,106 36,039 27,312 22,362
Change in inventories (1,978) (4,871) (12,994) (8,101)
Change in other assets and liab. (11,979) (6,871) (1,035) (796)
Change in deferred taxes (439) (770) 1,317 (1,659)
--------- -------- -------- --------
Total adjustments 27,899 28,413 27,181 26,111
--------- -------- -------- --------
Cash Provided by Operating
Activities 37,700 36,197 56,832 51,326
Cash Flows from Investing Activities
Proceeds from disposals of assets (167) 193 554 971
Capital expenditures (4,580) (3,351) (12,803) (12,590)
Change in other investments (571) (2,918) (6,013) (1,830)
---------- -------- ------- -------
Cash Used for Investing Activities (5,318) (6,076) (18,262) (13,449)
Cash Flows from Financing Activities
Short-term debt - 280 - 280
Long-term debt - - - -
Retirements of debt (64) (65) (3,068) (10,616)
Capital leases - - - 1,161
Capital lease principal payments (509) (578) (1,587) (1,655)
Stock for stock option plans 1,005 428 2,851 2,503
Stock for 401(k) employee plans 276 344 944 987
Purchase of La-Z-Boy stock (6,993) (52) (17,361) (4,485)
Payment of cash dividends (3,446) (3,523) (9,909) (10,183)
---------- -------- -------- --------
Cash Used for Financing Activities (9,731) (3,166) (28,130) (22,008)
Effect of exch. rate changes on cash (53) (69) 54 (87)
---------- -------- -------- --------
Net change in cash and equivalents 22,598 26,886 10,494 15,782
Cash and equiv. at beginning of period 14,956 15,944 27,060 27,048
---------- -------- -------- --------
Cash and equiv. at end of period $37,554 $42,830 $37,554 $42,830
========== ======== ======== ========
Cash paid during period - Income taxes $12,461 $11,668 $23,231 $20,479
- Interest $948 $923 $2,918 $3,434
For purposes of the Statement of Cash Flows, the Company considers all
highly liquid debt instruments purchased with a maturity of three months or
less to be cash equivalents.
The accompanying Notes to Condensed Consolidated Financial Statements are an
integral part of these statements.
LA-Z-BOY INCORPORATED AND OPERATING DIVISIONS
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presentation
The financial information is prepared in conformity with generally
accepted accounting principles and such principles are applied on a basis
consistent with those reflected in the 1996 Annual Report filed with the
Securities and Exchange Commission. The financial information included
herein, other than the consolidated condensed balance sheet as of April
27, 1996, has been prepared by management without audit by independent
certified public accountants who do not express an opinion thereon. The
consolidated condensed balance sheet as of January 25, 1997 has been
derived from, but does not include all the disclosures contained in, the
audited consolidated financial statements for the year ended April 27,
1996. The information furnished includes all adjustments and accruals
consisting only of normal recurring accrual adjustments which are, in the
opinion of management, necessary for a fair presentation of results for
the interim period.
2. Interim Results
The foregoing interim results are not necessarily indicative of the
results of operations for the full fiscal year ending April 26, 1997.
3. Commitments and Contingencies
There has been no significant change from the prior fiscal year end
audited financial statements.
LA-Z-BOY INCORPORATED AND OPERATING DIVISIONS
MANAGEMENT DISCUSSION
Due to the cyclical nature of the Company's business, comparison of
operations between the most recently completed quarter and the immediate
preceding quarter would not be meaningful and could be misleading to the
reader of these financial statements.
For further Management Discussion, see attached Exhibit 99
The Company's strong financial position is reflected in the debt to capital
percentage of 16% and a current ratio of 3.4 to 1 at the end of the third
quarter. At April 27, 1996, the debt to capital percentage was 17% and the
current ratio was 3.5 to 1. At the end of the preceding year's third
quarter, the debt to capital percentage was 18% and the current ratio was
3.6 to 1. As of January 25, 1997, there was $87 million of unused lines of
credit available under several credit arrangements.
Approximately 19% of the 3 million shares of Company stock authorized for
purchase on the open market are still available for purchase by the Company.
The Company plans to be in the market for its shares as changes in its stock
price and other factors present appropriate opportunities.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) (27) Financial Data Schedule (EDGAR only)
(99) News Release and Financial Information Release: re Actual
third quarter results and Management Discussion dated February 5, 1997.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused the Quarterly Report on Form 10-Q for the quarter
ended January 25, 1997 to be signed on its behalf by the undersigned
thereunto duly authorized.
LA-Z-BOY INCORPORATED
(Registrant)
/s/ James J. Korsnack
Date February 5, 1997 James J. Korsnack
Corporate Controller