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 October 28, 1995 COMMISSION FILE NUMBER 1-9656 LA-Z-BOY CHAIR COMPANY (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 None 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 Oct. 28, 1995 Common Shares, $1.00 par value 18,525,490
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 November 14, 1995 and are incorporated herein by reference.
LA-Z-BOY CHAIR COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (Unaudited, dollar amounts in thousands) Three Months Ended Six Months Ended ------------------ ----------------- Oct. 28, Oct. 29, Oct. 28, Oct. 29, 1995 1994 1995 1994 ------- -------- ------- -------- Cash Flows from Operating Activities Net income $14,256 $12,078 $17,431 $16,348 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 4,735 3,590 9,419 7,322 Change in receivables (51,526) (43,798) (13,677) (9,889) Change in inventories 1,163 621 (3,230) (8,571) Change in other assets and liab. 21,921 15,134 6,075 3,041 Change in deferred taxes (889) (875) (889) (875) -------- -------- -------- -------- Total adjustments (24,596) (25,328) (2,302) (8,972) -------- -------- -------- -------- Cash Provided by Operating Activities (10,340) (13,250) 15,129 7,376 Cash Flows from Investing Activities Proceeds from disposals of assets 645 1,210 778 1,234 Capital expenditures (6,079) (4,498) (9,239) (10,488) Change in other investments 129 (75) 1,088 (534) --------- -------- -------- -------- Cash Used for Investing Activities (5,305) (3,363) (7,373) (9,788) Cash Flows from Financing Activities Short-term debt - 261 - 261 Long-term debt - - - 7,500 Capital lease obligations 1,161 - 1,161 - Change in unexpended IRB funds - 1,827 - (739) Retirements of debt (6,479) (261) (10,551) (5,011) Capital lease principal payments (560) - (1,077) - Sale of stock under stock option plans 807 1,154 2,075 1,357 Stock for 401(k) employee plans 338 429 643 830 Purchase of La-Z-Boy stock (41) (2,742) (4,433) (9,351) Payment of cash dividends (3,505) (3,067) (6,660) (6,176) --------- -------- -------- -------- Cash Used for Financing Activities (8,279) (2,399) (18,842) (11,329) Effect of exch. rate changes on cash 60 131 (18) 114 --------- -------- -------- -------- Net change in cash and equivalents (23,864) (18,881) (11,104) (13,627) Cash and equiv. at beginning of period 39,808 31,180 27,048 25,926 --------- -------- -------- -------- Cash and equiv. at end of period $15,944 $12,299 $15,944 $12,299 ========= ======== ======== ======== Cash paid during period - Income taxes $7,154 $8,980 $8,811 $11,853 - Interest $1,401 $816 $2,511 $1,418 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 CHAIR COMPANY 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 1995 Annual Report filed with the Securities and Exchange Commission. The financial information included herein, other than the consolidated condensed balance sheet as of April 29, 1995, 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 October 28, 1995 has been derived from, but does not include all the disclosures contained in, the audited consolidated financial statements for the year ended April 29, 1995. 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 27, 1996. 3. Commitments and Contingencies ----------------------------- There has been no significant change from the prior fiscal year end audited financial statements.
LA-Z-BOY CHAIR COMPANY 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 18% and a current ratio of 3.3 to 1 at the end of the second quarter. At April 29, 1995, the debt to capital percentage was 20% and the current ratio was 3.7 to 1. At the end of the preceding year's second quarter, the debt to capital percentage was 17% and the current ratio was 3.8 to 1. As of October 28, 1995, there was $62 million of unused lines of credit available under several credit arrangements. Approximately 44% 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 4. Submission of Matters to a Vote of Security Holders - ------------------------------------------------------------ The Annual Meeting of Stockholders of La-Z-Boy Chair Company was held on July 31, 1995, for the purposes of electing four members to the board of directors. Proxies for the meeting were solicited pursuant to Section 14(a) of the Securities and Exchange Act of 1934 and there was no solicitation in opposition of Management's solicitations. All of Management's nominees for directors as listed in the proxy statement were elected. 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 second quarter results and Management Discussion dated November 14, 1995. 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 October 28, 1995 to be signed on its behalf by the undersigned thereunto duly authorized. LA-Z-BOY CHAIR COMPANY (Registrant) Date: November 14, 1995 James J. Korsnack Corporate Controller