La-Z-Boy Incorporated (LZB) has reported a 23.24 percent rise in profit for the quarter ended Apr. 29, 2017. The company has earned $28 million, or $0.57 a share in the quarter, compared with $22.72 million, or $0.45 a share for the same period last year.
Revenue during the quarter went down marginally by 1.05 percent to $412.71 million from $417.07 million in the previous year period. Gross margin for the quarter expanded 143 basis points over the previous year period to 40.76 percent. Total expenses were 89.64 percent of quarterly revenues, down from 91.79 percent for the same period last year. This has led to an improvement of 215 basis points in operating margin to 10.36 percent.
Operating income for the quarter was $42.76 million, compared with $34.24 million in the previous year period.
Kurt L. Darrow, chairman, president and chief executive officer of La-Z-Boy, said, "We delivered a strong finish to fiscal 2017 with our earnings performance demonstrating the increasing traction and momentum of our ongoing strategic initiatives and results of our ability to leverage operating platform efficiencies. Throughout fiscal 2017, we made strategic investments to drive long-term growth, returned $57 million to shareholders through dividends and share purchases, and ended the year with a strong balance sheet. As we begin fiscal 2018, we are well positioned to make the ongoing investments necessary to compete and win in a dynamic marketplace and drive sustainable profitability and returns to shareholders."
Operating cash flow improves significantly
La-Z-Boy Incorporated has generated cash of $146.17 million from operating activities during the year, up 30.09 percent or $33.81 million, when compared with the last year.
The company has spent $65.25 million cash to meet investing activities during the year as against cash outgo of $36.57 million in the last year. It has incurred net capital expenditure of $19.54 million on net basis during the year, down 9.65 percent or $2.09 million from year ago.
The company has spent $51.60 million cash to carry out financing activities during the year as against cash outgo of $61.05 million in the last year period.
Cash and cash equivalents stood at $141.86 million as on Apr. 29, 2017, up 26.26 percent or $29.50 million from $112.36 million on Apr. 30, 2016.
Working capital decreases marginally
La-Z-Boy Incorporated has witnessed a decline in the working capital over the last year. It stood at $318.75 million as at Apr. 29, 2017, down 1.79 percent or $5.80 million from $324.54 million on Apr. 30, 2016. Current ratio was at 2.60 as on Apr. 29, 2017, down from 3.06 on Apr. 30, 2016.
Debt comes down significantly
La-Z-Boy Incorporated has recorded a decline in total debt over the last one year. It stood at $0.52 million as on Apr. 29, 2017, down 35.87 percent or $0.29 million from $0.80 million on Apr. 30, 2016. Total debt was 0.06 percent of total assets as on Apr. 29, 2017, compared with 0.10 percent on Apr. 30, 2016. Interest coverage ratio deteriorated to 153.27 for the quarter from 283.02 for the same period last year.
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