Printer Friendly

LA-Z-BOY SALES AND EARNINGS HIGHER IN FOURTH QUARTER AND FISCAL YEAR

 LA-Z-BOY SALES AND EARNINGS HIGHER IN FOURTH QUARTER AND FISCAL YEAR
 MONROE, Mich., May 28 /PRNewswire/ -- Higher sales in the final months of fiscal 1992 helped La-Z-Boy Chair Company (NYSE: LZB) achieve its 11th straight year of record sales. Earnings for the year improved by more than 7 percent.
 Charles T. Knabusch, chairman of the board and president, said an increase in sales during the February-April fiscal fourth quarter indicates homemakers' enthusiasm for La-Z-Boy's expanding array of products, including those targeted at the young family market. Consumer confidence in economic recovery can stimulate renewed growth in residential furniture sales, he said. Typically, La-Z-Boy sales increase faster than the furniture industry.
 Fourth Quarter. In the fourth fiscal quarter ended April 25, La-Z-Boy consolidated net sales reached $175.4 million, a new record. This was an increase of 6 percent from fiscal 1991 fourth-quarter sales of $165.9 million.
 Net income rose 2 percent to $8.6 million, compared to earnings of $8.4 million in the same quarter of last year.
 Record Sales in 1992. Sales for fiscal 1992 rose to $619.5 million, a new record and 2 percent above the previous high of $608.0 million in sales reached in fiscal 1991.
 Net income increased to $25.1 million, or $1.39 per share, up 7 percent from 1991 net income of $23.4 million, or $1.30 per share.
 Higher Cash Dividends, Shareholders' Equity; Lower Debt and Capital Outlays. Cash dividends paid during the year rose 4 percent to $.58 per share. Shareholders' equity rose 7 percent to $246.4 million.
 The ratio of total debt to capital improved to 19.4 percent as the company reduced total debt by $10.1 million to a five-year low. The current ratio remained at a favorable 3.7:1.
 La-Z-Boy made much higher than usual capital investments in fiscal 1990 and 1991, principally to expand its manufacturing capacity and to introduce improved production techniques. This year's capital expenditures moderated to $12.2 million. As before, capital improvements were funded principally by cash from operations.
 According to Knabusch, gains in gross profit margins resulted in part from capital improvements and were apparent at the Hammary, Kincaid and RoseJohnson divisions. He credits higher sales volumes as well as higher productivity. He said he expects Residential division margins to improve as the result of this year's conversion of La-Z-Boy upholstered furniture plants from traditional sequential manufacturing processes to more efficient and flexible "work-cell" assembly techniques.
 New Products, New Markets. La-Z-Boy addresses a widening span of residential furniture customers. Products enjoying above-average sales growth this year included stationary and reclining sofas, upscale recliner chairs, fine wood bedroom and dining room furniture, occasional pieces and accessories appealing to above-average income families.
 At the same time, La-Z-Boy introduced a new line of rocker recliner chairs targeted at younger consumers. These chairs are specifically engineered for work-cell assembly. The are being retailed profitably at price levels attractive to budget-conscious families and singles.
 Market expansion is being facilitated by growth in the La-Z-Boy proprietary distribution network. During the year, some 18 new La-Z-Boy Furniture Galleries stores opened, bringing the number of these independently owned La-Z-Boy retail stores to 45 nationally.
 Advertising expenditures rose substantially during fiscal 1992 in order to support the introduction of these new products.
 Outlook. Furniture industry analysts are forecasting a 5- to 7-percent increase in sales for calendar 1992. Knabusch said this projection appears reasonable, based on recent months' sales. He said La-Z-Boy has the production capacity in place to meet foreseeable increases in demand for the next several years. He said that having a "fast-response" production capability also enables La-Z-Boy to operate with lower raw material, work-in-process and finished goods inventories.
 "We paid the price of preparation up front and in cash," he said. "We have positioned La-Z-Boy to benefit strongly from whatever rate of improvement the marketplace experiences."
 La-Z-Boy is America's largest and strongest independent manufacturer of upholstered furniture, with 8,000 employees, 24 modern plants, and 13,000 retail locations nationally. It is the leading producer of reclining upholstered chairs, and has become a major producer of reclining sofas and sleep sofas, motion-modular furniture, stationary chairs, loveseats and sofas, quality dining room and bedroom furniture, and occasional furniture for the American home.
 LA-Z-BOY CHAIR COMPANY
 (Dollars in thousands, except for per-share data)
 (Unaudited)
 Fourth Quarter Ended April 25, 1992 April 27, 1991
 Net sales $175,359 $165,935
 Net income $8,623 $8,447
 Earnings per share $0.48 $0.47
 (Audited)
 Fiscal Year Ended April 25, 1992 April 27, 1991
 Net sales $619,471 $608,032
 Net income $25,100 $23,361
 Earnings per share $1.39 $1.30
 -0- 5/28/92
 /CONTACT: Jim Korsnack of La-Z-Boy Chair Company, 313-241-4414/
 (LZB) CO: La-Z-Boy Chair Company ST: Michigan IN: REA SU: ERN


JG-ML -- DE026 -- 4961 05/28/92 17:17 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 28, 1992
Words:811
Previous Article:FLEET MORTGAGE SECURITIES $96.4 MILLION SERIES 1992-2 CERTIFICATES RATED 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --
Next Article:EASTEX ANNOUNCES INCREASE IN FIRST QUARTER 1992 EARNINGS AND COMMENCEMENT OF HOUSTON HUB INTERCHANGE SERVICE
Topics:


Related Articles
LA-Z-BOY PROFITS UP 10 PERCENT IN FISCAL YEAR-TO-DATE; RECESSION TRIMS THIRD-QUARTER RESULTS
LA-Z-BOY HAD RECORD SALES IN FISCAL 1993 FIRST QUARTER
LA-Z-BOY HAD RECORD FOURTH QUARTER SALES AND EARNINGS; THE FULL YEAR WAS 'EXCEPTIONALLY STRONG'
LA-Z-BOY'S FOURTH QUARTER CLOSES A STRONG YEAR
SALES AND EARNINGS IMPROVE FOR LA-Z-BOY
STRONGER SALES AND EARNINGS FOR LA-Z-BOY
La-Z-Boy Tops $1 Billion in Sales; Net Income Per Share Reached $2.50
La-Z-Boy, Inc. Finishes 1999 Fiscal Year with a Strong Fourth Quarter.
La-Z-Boy, Inc. Reports Strongest-Ever Third Quarter and Nine Month Results.
La-Z-Boy Incorporated Reports Record Fiscal 2000 Results for Fourth Quarter and Full Year.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters