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 27, 1996 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 Jan. 27, 1996 Common Shares, $1.00 par value 18,537,880
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 14, 1996 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 Nine Months Ended ------------------ ----------------- Jan. 27, Jan. 28, Jan. 27, Jan. 28, 1996 1995 1996 1995 ------- -------- ------- -------- Cash Flows from Operating Activities Net income $7,784 $7,221 $25,215 $23,569 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 4,886 3,829 14,305 11,151 Change in receivables 36,039 26,498 22,362 16,609 Change in inventories (4,871) 173 (8,101) (8,398) Change in other assets and liab. (6,871) (183) (796) 2,858 Change in deferred taxes (770) (2,310) (1,659) (3,185) -------- -------- -------- -------- Total adjustments 28,413 28,007 26,111 19,035 -------- -------- -------- -------- Cash Provided by Operating Activities 36,197 35,228 51,326 42,604 Cash Flows from Investing Activities Proceeds from disposals of assets 193 104 971 1,338 Capital expenditures (3,351) (4,691) (12,590) (15,179) Change in other investments (2,918) 1,607 (1,830) 1,073 --------- -------- -------- -------- Cash Used for Investing Activities (6,076) (2,980) (13,449) (12,768) Cash Flows from Financing Activities Short-term debt 280 - 280 261 Long-term debt - - - 7,500 Capital lease obligations - - 1,161 - Change in unexpended IRB funds - 680 - (59) Retirements of debt (65) - (10,616) (5,011) Capital lease principal payments (578) - (1,655) - Sale of stock under stock option plans 428 194 2,503 1,551 Stock for 401(k) employee plans 344 349 987 1,179 Purchase of La-Z-Boy stock (52) (994) (4,485) (10,345) Payment of cash dividends (3,523) (3,056) (10,183) (9,232) --------- -------- -------- -------- Cash Used for Financing Activities (3,166) (2,827) (22,008) (14,156) Effect of exch. rate changes on cash (69) (168) (87) (54) --------- -------- -------- -------- Net change in cash and equivalents 26,886 29,253 15,782 15,626 Cash and equiv. at beginning of period 15,944 12,299 27,048 25,926 --------- -------- -------- -------- Cash and equiv. at end of period $42,830 $41,552 $42,830 $41,552 ========= ======== ======== ======== Cash paid during period - Income taxes $11,668 $10,923 $20,479 $22,776 - Interest ($326) $944 $3,434 $2,362 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 January 27, 1996 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 3.6 to 1 at the end of the third 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 third quarter, the debt to capital percentage was 16% and the current ratio was 4.0 to 1. As of January 27, 1996, there was $62 million of unused lines of credit available under several credit arrangements. Approximately 43% 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 14, 1996. 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 27, 1996 to be signed on its behalf by the undersigned thereunto duly authorized. LA-Z-BOY CHAIR COMPANY (Registrant) Date: February 14, 1996 James J. Korsnack Corporate Controller