LZB next TWB. Blowout results from cost cuts coming
LZB has 28 MM positive cash flow last quarter while skashing 60 MM annual costs. Earnings next Monday will be first quarter with lower cost structure.
La-Z-Boy Reports Fiscal 2009 Third-Quarter Results
MONROE, Mich., Feb. 17 /PRNewswire-FirstCall/ -- La-Z-Boy Incorporated (NYSE:LZB) today reported its operating results for the fiscal third quarter ended January 24, 2009.
-- Net sales for the period were $288.6 million, down 23% compared with the prior year's third quarter, reflecting ongoing demand challenges in a difficult macroeconomic environment.
-- The company generated $28.0 million in cash from operations, including $8.1 million in anti-dumping duties received on bedroom furniture imported from China.
-- La-Z-Boy paid down its debt by $27.8 million to $90.4 million. Over the past 12 months, the company decreased its total debt by $60.2 million, or by 40%. Rating :
We are managing our business aggressively. In November, we reacted quickly and decisively to the rapid deterioration in sales trends experienced during October, and, we have continued to make changes to the business model on a monthly basis to align our operating platform with order trends. Since November, we removed approximately $60 million in structural costs on an annual basis from our operations in the form of personnel reductions, the closure of a Bauhaus upholstery manufacturing facility, changes to our employee benefit plans and other cost reductions across the entire company. Compared with year-ago levels, our employment has decreased by 24%, or approximately 2,500 people."
