La-Z-Boy Incorporated (NYSE:LZB) Q3 2018 Earnings Conference Call - Final Transcript

Feb 21, 2018 • 08:30 am ET

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La-Z-Boy Incorporated (NYSE:LZB) Q3 2018 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings, and welcome to the La-Z-Boy Third Quarter Fiscal 2018 Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Kathy Liebmann, Director of Investor Relations and Corporate Communications for La-Z-Boy. Kathy, please go ahead.

Executive
Kathy Liebmann

Thank you, Kevin. Good morning, everyone, and thank you for joining us to discuss our fiscal 2018 third quarter results. With us this morning are Kurt Darrow, La-Z-Boy's Chairman, President and Chief Executive Officer; and Mike Riccio, our Chief Financial Officer. Kurt will begin today's call, and then Mike will speak about the financials before turning the call back to Kurt for his concluding remarks. We will then open the call to questions. A telephone replay of the call will be available for one week, beginning this afternoon. Slides will accompany this presentation and are available for viewing through our webcast link.

These regular quarterly investor conference calls are one of La-Z-Boy's primary vehicles to communicate with investors about the company's current operations and future prospects. We will make forward-looking statements during this call, so I will repeat our usual safe harbor remarks. While these statements reflect the best judgment of management at the present time, they are subject to numerous future risks and uncertainties as detailed in our regular SEC filings, and they may differ materially from actual results due to a wide range of factors. We undertake no obligation to update any forward-looking statements made during this call.

And with that, let me turn over the call to Kurt Darrow, La-Z-Boy's Chairman, President and Chief Executive Officer. Kurt?

Executive
Kurt L. Darrow

Thank you, Kathy. Good morning, everyone. Our third quarter was certainly more complex than usual as we went through the extensive documentation related to tax reform, which Mike will speak about a little bit more in a few minutes as well as the previously announced legal settlement related to certain power units, both of which impacted our results.

Those two issues aside, we reported solid results for the fiscal 2018 third quarter. Sales increased 6.1% and all three of our business segments operated at a high level. The La-Z-Boy Furniture Galleries store network posted its fourth consecutive quarterly same-store sales increase, and the company generated $40 million in cash from operations. This positions us well as we continue to invest in our dual growth strategy to capture more share with our core customer and to expand our business through our e-commerce strategy to win a younger consumer, who exhibits different shopping characteristics.

It also allows us to continue to make the necessary capital investments in our business to expand our vibrant retail footprint and strengthen our U.S. manufacturing platform, which is paramount to our ability to provide custom furniture quickly while bringing innovative products to the market. Additionally, we returned $21 million to shareholders through dividends and share repurchases, buying back 0.5 million shares during the quarter.