MONROE, Mich., May 20 /PRNewswire/ -- In its fourth fiscal quarter and for its 1999 fiscal year, La-Z-Boy Incorporated (NYSE: LZB) again reached record levels of sales and profits. La-Z-Boy is one of the world's leading furniture producers. Financial Details For the fourth quarter ended 4/24/99 sales reached $365.8 million, up 13.6% from last year's fourth quarter of $322.0 million. Operating profit increased 27%. Net income was up 14.6% to $22.8 million vs. $19.9 million. Diluted earnings per share increased 16% to $0.43 from $0.37. For the fiscal year ended 4/24/99, sales reached $1.288 billion, up 16% from last year's $1.108 billion. Net income was up 32% to $66.1 million vs. $49.9 million. Diluted earnings per share were up 35% to $1.24 vs. $0.92. Operations "All divisions and operating activities contributed to making fiscal 1999 another great year for La-Z-Boy," according to company President and Chief Operating Officer, Gerald L. Kiser. "A key factor in this success was the ability of our manufacturing plants to increase production in order to meet unusually high levels of consumer demand experienced in the fourth quarter, and to do so profitably. "In addition to achieving record sales and profits, we exceeded three publicly stated financial goals for the year: (1) Sales from existing operations increased faster than the furniture industry's average, (2) operating profit margin increased, from 7.0% of sales to 8.3%, and (3) our operating return on capital exceeded 20%. "Our near-term sales outlook is strong. With an increasing selection of home furnishings that consumers demonstrably prefer, coupled with innovative marketing and continued gains in productivity, fiscal 2000 could be another record year for La-Z-Boy." Marketing La-Z-Boy became America's largest supplier of upholstered furniture by creating a nationwide distribution network that has become a model for the future of home furnishings retailing. Well over 225 La-Z-Boy Furniture Galleries stores now operate in the U.S., Canada and Spain. Dedicated to presenting La-Z-Boy products in attractive, home-like settings, these stores outperform conventional furniture retail outlets in dollar sales per square foot of selling area. This "gallery" program originated with the La-Z-Boy Residential division. Three other La-Z-Boy divisions now have initiated gallery programs of their own. In addition to innovative retailing, La-Z-Boy attracts consumers with innovative promotions. As a current example, company Chairman Patrick H. Norton cited the La-Z-Boy Residential division's national "Instant Win Sweepstakes" featured in Parade and USA Weekend Sunday magazines, which generated significant retail store traffic and sales. Strong consumer response and the high number of participating dealers will result in a repeat of this national promotion starting next month. Both the Kincaid and La-Z-Boy Residential divisions are advertising the recently introduced "Thomas Kinkade Home Furnishings Collection" in popular magazines such as Martha Stewart Living, Better Homes & Gardens, Woman's Day, Country Living and House Beautiful. Consumer response to this new collection of upholstery and casegoods is extremely positive. Mr. Norton said, "La-Z-Boy continues to grow profitably because of fundamental advantages in the way we approach the marketplace." More Information La-Z-Boy Incorporated's 8-K filing includes an income statement, balance sheet, cash flow statement, notes to year end financial statements, annual report narratives and additional management discussion and is available now at the Company's internet site (www.lazboy.com). This press release is just one part of La-Z-Boy Incorporated's disclosures and should be read in conjunction with all other form 8-K information. About 48 hours after this release, this information should be available on the SEC's internet site (www.sec.gov). EARNINGS (Dollars in thousands, except per share data) (UNAUDITED) April 24, April 25, FOURTH QUARTER ENDED 1999 1998 Sales $365,829 $321,984 Net income $22,783 $19,913 Diluted average shares 52,646 53,742 Diluted EPS $0.43 $0.37 (AUDITED) April 24, April 25, TWELVE MONTHS ENDED 1999 1998 Sales $1,287,645 $1,108,038 Net income $66,142 $49,920 Diluted average shares 53,148 53,821 Diluted EPS $1.24 $0.93 -=-=- 