NEWS RELEASE
 Contact:Kathy Liebmann
    
    (734) 241-2438
    
    kathy.liebmann@la-z-boy.com
 LA-Z-BOY REPORTS FISCAL 2009 FIRST-QUARTER RESULTS
    Upholstery




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® ®
  Casegoods
  Retail
   Balance Sheet




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Business Outlook
  Forward-looking Information
  Additional Information
 http://www.la-z-boy.com/about/investorRelations/sec_filings.aspx
 http://www.la-z-boy.com/about/investorRelations/IR_email_alerts.aspx
 Background Information




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® In Furniture http://www.la-z-boy.com/




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LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF OPERATIONS
 First Quarter Ended(Unaudited, amounts in thousands, except per share data)
    
    7/26/08
    
    
    7/28/07Sales
    
    $
    321,652
    
    
    $
    344,396Cost of salesCost of goods sold
    
    
    235,115
    
    
    
    259,143Restructuring
    
    
    5,795
    
    
    
    2,561Total cost of sales
    
    
    240,910
    
    
    
    261,704Gross profit
    
    
    80,742
    
    
    
    82,692Selling, general and
administrative
    
    
    91,837
    
    
    
    94,508Write-down of intangibles
    
    
    1,292
    
    
    
    Restructuring
    
    
    781
    
    
    
    1,120Operating loss
    
    
    (13,168
    )
    
    
    (12,936
    )Interest expense
    
    
    1,495
    
    
    
    2,097Interest income
    
    
    932
    
    
    
    882Other income, net
    
    
    143
    
    
    
    566Loss from continuing operations before income taxes
    
    
    (13,588
    )
    
    
    (13,585
    )Income tax benefit
    
    
    (5,044
    )
    
    
    (5,043
    )Loss from continuing operations
    
    
    (8,544
    )
    
    
    (8,542
    )Loss from discontinued operations (net of tax)
    
    
    
    
    
    
    (152
    )Net loss
    
    $
    (8,544
    )
    
    $
    (8,694
    )Basic average shares
    
    
    51,428
    
    
    
    51,380Basic loss from
continuing operations per share
    
    $
    (0.17
    )
    
    $
    (0.17
    )Discontinued operations per share (net of tax)
    
    
    
    
    
    
    Basic net loss per share
    
    $
    (0.17
    )
    
    $
    (0.17
    )Diluted average shares
    
    
    51,428
    
    
    
    51,380Diluted loss from continuing operations per share
    
    $
    (0.17
    )
    
    $
    (0.17
    )Discontinued operations per share (net of tax)
    
    
    
    
    
    
    Diluted net loss per share
    
    $
    (0.17
    )
    
    $
    (0.17
    )Dividends paid per share
    
    $
    0.04
    
    
    $
    0.12
 3




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LA-Z-BOY INCORPORATED
CONSOLIDATED BALANCE SHEET
 (Unaudited, amounts in thousands)
    
    7/26/08
    
    
    4/26/08Current assetsCash and equivalents
    
    $
    11,110
    
    
    $
    14,982Receivables, net
    
    
    180,311
    
    
    
    200,422Inventories, net
    
    
    167,455
    
    
    
    178,361Deferred income taxescurrent
    
    
    12,306
    
    
    
    12,398Other current assets
    
    
    25,907
    
    
    
    21,325Total current assets
    
    
    397,089
    
    
    
    427,488Property, plant and equipment, net
    
    
    170,235
    
    
    
    171,001Deferred income taxeslong term
    
    
    25,853
    
    
    
    26,922Goodwill
    
    
    45,941
    
    
    
    47,233Trade names
    
    
    9,006
    
    
    
    9,006Other long-term assets, net
    
    
    84,805
    
    
    
    87,220Total assets
    
    $
    732,929
    
    
    $
    768,870Current liabilitiesCurrent portion of long-term debt
    
    $
    9,086
    
    
    $
    4,792Accounts payable
    
    
    49,973
    
    
    
    56,421Accrued expenses and other current liabilities
    
    
    88,655
    
    
    
    102,700Total current liabilities
    
    
    147,714
    
    
    
    163,913Long-term debt
    
    
    90,618
    
    
    
    99,578Other long-term liabilities
    
    
    54,553
    
    
    
    54,783Contingencies and commitments
    
    
    
    
    
    
    Shareholders equityCommon shares, $1 par value
    
    
    51,428
    
    
    
    51,428Capital in excess of par value
    
    
    202,562
    
    
    
    209,388Retained earnings
    
    
    187,289
    
    
    
    190,215Accumulated other comprehensive income
    
    
    (1,235
    )
    
    
    (435
    )Total shareholders equity
    
    
    440,044
    
    
    
    450,596Total liabilities and shareholders equity
    
    $
    732,929
    
    
    $
    768,870
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LA-Z-BOY INCORPORATED
CONSOLIDATED STATEMENT OF CASH FLOWS
 First Quarter Ended(Unaudited, amounts in thousands)
    
    7/26/08
    
    
    7/28/07Cash flows from operating activitiesNet loss
    
    $
    (8,544
    )
    
    $
    (8,694
    )Adjustments to reconcile net loss to
cash provided by (used for) operating
activities(Gain)/loss on sale of assets
    
    
    (2,066
    )
    
    
    52Write-down of intangibles
    
    
    1,292
    
    
    
    Restructuring
    
    
    6,576
    
    
    
    3,681Provision for doubtful accounts
    
    
    4,203
    
    
    
    2,114Depreciation and amortization
    
    
    5,954
    
    
    
    6,220Stock-based compensation expense
    
    
    869
    
    
    
    861Change in receivables
    
    
    14,170
    
    
    
    22,597Change in inventories
    
    
    10,906
    
    
    
    (6,071
    )Change in payables
    
    
    (6,448
    )
    
    
    (15,473
    )Change in other assets and liabilities
    
    
    (23,632
    )
    
    
    (23,298
    )Change in deferred taxes
    
    
    1,161
    
    
    
    (1,475
    )Total adjustments
    
    
    12,985
    
    
    
    (10,792
    )Net cash provided by (used for) operating
activities
    
    
    4,441
    
    
    
    (19,486
    )Cash flows from investing activitiesProceeds from disposals of assets
    
    
    4,981
    
    
    
    6,415Capital expenditures
    
    
    (7,372
    )
    
    
    (9,629
    )Purchases of investments
    
    
    (5,449
    )
    
    
    (6,622
    )Proceeds from sales of investments
    
    
    5,794
    
    
    
    6,792Change in other long-term assets
    
    
    71
    
    
    
    20Net cash used for investing activities
    
    
    (1,975
    )
    
    
    (3,024
    )Cash flows from financing activitiesProceeds from debt
    
    
    14,635
    
    
    
    705Payments on debt
    
    
    (18,857
    )
    
    
    (900
    )Stock issued for stock and employee
benefit plans
    
    
    (2
    )
    
    
    (22
    )Dividends paid
    
    
    (2,075
    )
    
    
    (6,209
    )Net cash used for financing activities
    
    
    (6,299
    )
    
    
    (6,426
    )Effect of exchange rate changes on cash and
equivalents
    
    
    (39
    )
    
    
    1,001Change in cash and equivalents
    
    
    (3,872
    )
    
    
    (27,935
    )Cash and equivalents at beginning of period
    
    
    14,982
    
    
    
    51,721Cash and equivalents at end of period
    
    $
    11,110
    
    
    $
    23,786Cash paid
(net of refunds) during period  income taxes
    
    $
    923
    
    
    $
    3,135Cash paid during period  interest
    
    $
    1,126
    
    
    $
    1,910
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LA-Z-BOY INCORPORATED
SEGMENT INFORMATION
 First Quarter Ended7/26/08
    
    
    7/28/07(Unaudited amounts in thousands)
    
    (13 weeks)
    
    
    (13 weeks)SalesUpholstery Group
    
    $
    237,118
    
    
    $
    254,757Casegoods Group
    
    
    48,121
    
    
    
    53,574Retail Group
    
    
    42,427
    
    
    
    45,231VIEs/Eliminations
    
    
    (6,014
    )
    
    
    (9,166
    )Consolidated
    
    $
    321,652
    
    
    $
    344,396Operating income (loss)Upholstery Group
    
    $
    9,857
    
    
    $
    8,867Casegoods Group
    
    
    1,377
    
    
    
    2,600Retail Group
    
    
    (10,010
    )
    
    
    (10,074
    )Corporate and Other*
    
    
    (6,524
    )
    
    
    (10,648
    )Restructuring
    
    
    (6,576
    )
    
    
    (3,681
    )Intangible Write-down
    
    
    (1,292
    )
    
    
    $
    (13,168
    )
    
    $
    (12,936
    )
 *Variable Interest Entities (VIEs) are included in corporate and other.
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