Shares of La-Z-Boy (NYSE: LZB) are trading down over nine percent following its fourth quarter earnings release on Tuesday.
Below are some highlights and key takeaways from its conference call:
Growth and Operations:
• With respect to our overall results, we grew sales by $83 million or 6.6 percent to $1.36 billion.
• Increased operating income by $22 million or 32 percent to $89 million
• Almost doubling it from two years ago and generated $91 million in cash from operations
• Strengthened our balance sheet, ending the year with more than $200 million in cash, cash equivalents, investments and restricted cash.
• Wholesale Upholstery side, we experienced an increase in same store sales for the year of about 6 percent following a double-digit increase in 2013.
• The Upholstery group posted a 0.7 percent operating margin
• We also extended our contract with Brooke Shields, through November of 2016.
• Posted four quarters of profitability with a 3.7 percent operating margin for the year solidifying our position in the industry as a successful integrated retailer.
• Store count to more than 100
• Increased our quarterly dividend by 50 percent and returned $43 million to shareholders for dividend payments
• Quarter sales increased 2.3 percent, we posted a 10.9 percent operating margin while increasing the gross margin
• Same-store sales for the La-Z-Boy Furniture Gallery network were down slightly for the quarter
• Thirteen quarters of same-store sales increases
• We continue to operate our business with a philosophy and strategy designed to drive growth and profitability.
• Delivered sales in our Retail segment increased 7 percent to $79 million compared with last year's fourth quarter.
• On the core base of 91 stores included in last year's fourth quarter, sales for the segment increased 1 percent.
• The operating profit for this segment was $2.9 million compared with an operating profit of $4 million in last year's fourth quarter.
• For the year, we more than doubled our operating income.
• For the quarter consolidated operating income was $23 million compared with $27 million in the fiscal 2013 fourth quarter. The company reported net income from continuing operations attributable to La-Z-Boy Incorporated of $14.6 million, or $0.27 per diluted share, including a $0.06 per share restructuring charge.
• Capital expenditures for the quarter were $10.7 million and were $33.7 million for the year.
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