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LaZBoy Inc. Reports Operating Results (10-Q)

February 15, 2011 | About:
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10qk

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LaZBoy Inc. (LZB) filed Quarterly Report for the period ended 2011-01-22.

Lazboy Inc. has a market cap of $435.1 million; its shares were traded at around $8.39 with a P/E ratio of 17.9 and P/S ratio of 0.4. Hedge Fund Gurus that owns LZB: Paul Tudor Jones of The Tudor Group, Bruce Kovner of Caxton Associates, Steven Cohen of SAC Capital Advisors, Steven Cohen of SAC Capital Advisors. Mutual Fund and Other Gurus that owns LZB: Chuck Royce of Royce& Associates.

Highlight of Business Operations:

Consolidated sales decreased $13.2 million in the third quarter of fiscal 2011 compared to the third quarter of fiscal 2010. The deconsolidation of our Toronto, Ontario, VIE resulted in a decrease of $6.6 million, net of eliminations, in our consolidated sales when comparing the third quarter of fiscal 2011 to the third quarter of fiscal 2010. Additionally, our consolidated sales were negatively impacted by weaker demand in our Upholstery and Casegoods segments and a shift to more promotional products in our Upholstery Group, decreasing our average selling price.

Our VIEs sales decreased $5.5 million in the third quarter of fiscal 2011 compared to the third quarter of fiscal 2010. This was mainly the result of deconsolidating our Toronto, Ontario, VIE, which reduced the number of stores for our VIEs to 23 for the third quarter of fiscal 2011 (one store was opened during the third quarter of fiscal 2011), compared to 31 for the third quarter of fiscal 2010. Our VIEs had an operating loss of $1.1 million in the third quarter of fiscal 2011, compared to operating income of $0.1 million in the third quarter of fiscal 2010. The change in operating performance was mainly due to our Toronto, Ontario, VIE, which was a profitable VIE, no longer being consolidated in the third quarter of fiscal 2011.

The Continued Dumping and Subsidy Offset Act (“CDSOA”) provides for distribution of monies collected by U.S. Customs and Border Protection from anti-dumping cases to domestic producers that supported the anti-dumping petition. We received $0.9 million and $4.4 million in payments and funds related to the anti-dumping order on wooden bedroom furniture from China during the third quarters of fiscal 2011 and fiscal 2010, respectively, for duties collected on imports entered into the United States before October 1, 2007. The decrease in CDSOA funds we received was a result of the smaller total amount available for distribution, coupled with not receiving funds from a previously sold company. The percentage of total distributions allocated to our divisions that supported the petition was similar to prior years.

Consolidated sales decreased $20.2 million in the first nine months of fiscal 2011 compared to the first nine months of fiscal 2010. Our Casegoods and Retail Groups experienced slight increases in sales volume, however this was offset by the decrease in sales volume for our Upholstery Group. Our Upholstery segment sales were negatively impacted by a shift in the overall market demand to more promotional goods decreasing our average selling price. Additionally, the deconsolidation of our Toronto, Ontario, VIE resulted in a decrease of $14.9 million, net of eliminations, in our consolidated sales.

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10qk
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