La-Z-Boy Incorporated (NYSE:LZB) Q4 2019 Earnings Conference Call - Final Transcript

Jun 19, 2019 • 08:30 am ET


La-Z-Boy Incorporated (NYSE:LZB) Q4 2019 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to your La-Z-Boy Fiscal 2019 Fourth Quarter and Full Year Results Conference Call. All lines have been placed in a listen-only mode, and the floor will be open for your questions and comments following the presentation. (Operator Instructions)

At this time, it is my pleasure to turn the floor over to your host, Kathy Liebmann. Ma'am, the floor is yours.

Kathy Liebmann

Thank you, Christie, and good morning, and thank you for joining us to discuss our fiscal 2019 fourth quarter and full-year results.

With us this morning are Kurt Darrow, La-Z-Boy's Chairman, President, and Chief Executive Officer; and Melinda Whittington, Senior Vice President and Chief Financial Officer. Kurt will open and close the call, and Melinda will speak to the financials midway through. We will then open the call to questions.

Slides will accompany this presentation, and you may view them through our webcast link, which will be available for one year. And a telephone replay of the call will be available for one week, beginning this afternoon.

Before we begin this presentation, I'd like to remind you that some statements made in today's call include forward-looking statements about La-Z-Boy's future performance. Although we believe these statements to be reasonable, our actual results could differ materially. The most significant risk factors that could affect our future results are described in our Annual Report on Form 10-K and in today's presentation slides.

We encourage you to review those risk factors, as well as other key information detailed in our SEC filings. Also our earnings release is available under the News and Events tab on the Investor Relations page of our website, and it includes reconciliations of certain non-GAAP measures.

With that, I will now turn the call over to Kurt Darrow, La-Z-Boy's Chairman, President and Chief Executive Officer. Kurt?

Kurt L. Darrow

Thank you, Kathy. Good morning, everyone, and thank you for joining us this morning. Last evening, we released our fiscal year 2019 and fourth quarter results, in line with our pre-announcement that we released on June 5th. Fiscal '19 was an exciting and productive year for La-Z-Boy Incorporated.

We delivered excellent retail performance, nearly doubling our operating income, acquired the Arizona-based La-Z-Boy Furniture Galleries stores, the highest-performing operation in the La-Z-Boy store network, solidified our position in the e-commerce space with our acquisition of Joybird, a premier direct-to-consumer retailer and manufacturer of upholstered furniture, further strengthened our well-established manufacturing platform and set the stage for ongoing long-term growth.

We closed fiscal 2019 achieving a 10% increase in sales to $1.75 billion, reflecting improvement across all core reporting segments and posted a 7.4% consolidated operating margin, representing a strong performance within the home furnishings industry.

The La-Z-Boy Furniture Gallery network performed well, and the company-owned stores in our Retail segment posted a delivered same-store sales increase of 5.7% for the full fiscal year. We generated $151 million in cash from operating activities, and returned a combined total of $46 million to shareholders through an increased dividend and share