LFL, Canada's Largest Home Retailer, Releases Results for the Quarter Ended June 30, 2024; Same Store Sales Increase of 3.6%; Dividend Increase of 11.1%
Leon's Furniture (TSX: LEFUF) reported strong Q2 2024 results with system-wide sales up 3.4% to $742.1 million and revenue increasing 4.0% to $617.7 million. The company maintained a gross profit margin of 43.9% despite challenging market conditions. Same-store sales rose 3.6%, driven by furniture and appliance categories. Adjusted net income grew 6.8% to $29.9 million, with adjusted diluted EPS up 7.3% to $0.44. The company announced an 11.1% increase in quarterly dividend to $0.20 per share. Leon's maintains a strong financial position with $346.0 million in unrestricted liquidity as of June 30, 2024.
Leon's Furniture (TSX: LEFUF) ha riportato risultati solidi per il secondo trimestre del 2024, con vendite su base sistemica in aumento del 3,4% che raggiungono $742,1 milioni e entrate in crescita del 4,0% a $617,7 milioni. L'azienda ha mantenuto un margine di profitto lordo del 43,9% nonostante le sfide del mercato. Le vendite nelle stesse sedi sono aumentate del 3,6%, trainate dalle categorie di mobili e elettrodomestici. Il reddito netto rettificato è cresciuto del 6,8% a $29,9 milioni, con EPS diluito rettificato in aumento del 7,3% a $0,44. L'azienda ha annunciato un aumento del 11,1% del dividendo trimestrale a $0,20 per azione. Leon's mantiene una solida posizione finanziaria con $346,0 milioni in liquidità non vincolata al 30 giugno 2024.
Leon's Furniture (TSX: LEFUF) reportó resultados sólidos para el segundo trimestre de 2024, con ventas a nivel del sistema en aumento del 3,4% alcanzando los $742,1 millones y ingresos en crecimiento del 4,0% a $617,7 millones. La compañía mantuvo un margen de ganancia bruta del 43,9% a pesar de las desafiantes condiciones del mercado. Las ventas en tiendas comparables aumentaron un 3,6%, impulsadas por las categorías de muebles y electrodomésticos. El ingreso neto ajustado creció un 6,8% a $29,9 millones, con EPS diluido ajustado en aumento del 7,3% a $0,44. La empresa anunció un aumento del 11,1% en el dividendo trimestral a $0,20 por acción. Leon's mantiene una sólida posición financiera con $346,0 millones en liquidez no restringida al 30 de junio de 2024.
레온 가구 (TSX: LEFUF)는 2024년 2분기 실적이 강세를 보였으며, 시스템 전체 매출 3.4% 증가로 7억 4천 2백 10만 달러에 달하고 수익 4.0% 증가로 6억 1천 7백 70만 달러에 이르렀습니다. 회사는 어려운 시장 상황에도 불구하고 43.9%의 총 이익률을 유지했습니다. 동일 매장 매출은 3.6% 증가하였고, 가구 및 가전 제품 분야가 주도했습니다. 조정된 순이익은 6.8% 증가하여 2천 9백 90만 달러에 이르렀으며, 조정 후 희석 주당순이익은 7.3% 증가하여 0.44달러에 달했습니다. 회사는 분기 배당금을 11.1% 인상하여 주당 0.20달러로 발표했습니다. 레온은 2024년 6월 30일 기준으로 3억 4천 6백만 달러의 비제한 유동성을 보유하고 있습니다.
Leon's Furniture (TSX: LEFUF) a annoncé de bons résultats pour le deuxième trimestre de 2024, avec des ventes à l'échelle du système en hausse de 3,4% atteignant 742,1 millions de dollars et un chiffre d'affaires en augmentation de 4,0% pour atteindre 617,7 millions de dollars. La société a maintenu une marge bénéficiaire brute de 43,9% malgré des conditions de marché difficiles. Les ventes dans les mêmes magasins ont augmenté de 3,6%, soutenues par les catégories de meubles et d'appareils électroménagers. Le bénéfice net ajusté a augmenté de 6,8% pour atteindre 29,9 millions de dollars, avec un BPA dilué ajusté en hausse de 7,3% à 0,44 dollar. L'entreprise a annoncé une augmentation de 11,1% du dividende trimestriel à 0,20 dollar par action. Leon's maintient une solide position financière avec 346,0 millions de dollars de liquidités non restreintes au 30 juin 2024.
Leon's Furniture (TSX: LEFUF) berichtete starke Ergebnisse für das zweite Quartal 2024, mit systemweiten Verkaufssteigerungen von 3,4% auf 742,1 Millionen Dollar und Umsatzsteigerungen von 4,0% auf 617,7 Millionen Dollar. Das Unternehmen hielt eine Bruttogewinnmarge von 43,9% aufrecht, trotz herausfordernder Marktbedingungen. Der Umsatz in vergleichbaren Geschäften stieg um 3,6%, angetrieben durch die Bereiche Möbel und Haushaltsgeräte. Der bereinigte Nettogewinn wuchs um 6,8% auf 29,9 Millionen Dollar, mit bereinigtem verwässertem EPS, das um 7,3% auf 0,44 Dollar stieg. Das Unternehmen kündigte eine Erhöhung der vierteljährlichen Dividende um 11,1% auf 0,20 Dollar pro Aktie an. Leon's hat zum 30. Juni 2024 eine starke finanzielle Position mit 346,0 Millionen Dollar an unbeschränkter Liquidität.
- System-wide sales increased 3.4% to $742.1 million
- Revenue grew 4.0% to $617.7 million
- Same-store sales rose 3.6%
- Adjusted net income increased 6.8% to $29.9 million
- Adjusted diluted EPS up 7.3% to $0.44
- Quarterly dividend increased 11.1% to $0.20 per share
- Strong liquidity position of $346.0 million
- Challenging macro and consumer environment persists
- Continued headwinds related to supply chain and foreign exchange
- Highly promotional consumer environment impacting margins
Toronto, Ontario--(Newsfile Corp. - August 8, 2024) - Leon's Furniture Limited (TSX: LNF) ("LFL" or the "Company"), today announced financial results for the quarter ended June 30, 2024.
Financial Highlights - Q2-2024
These comparisons are with the 2023 second quarter unless stated otherwise.
- System-wide sales for the second quarter 2024 were
$742.1 million , an increase of3.4% . - Revenue for the second quarter 2024 was
$617.7 million , an increase of4.0% . - Same store sales increase(1) of
3.6% . - Successfully maintained gross profit margin levels at
43.9% in a challenging macro and consumer environment. - Adjusted net income(1) for the quarter totaled
$29.9 million , an increase of6.8% . - Adjusted diluted earnings per share(1) of
$0.44 , an increase of7.3% . On June 30, 2024, unrestricted liquidity was
$346.0 million , comprised of cash, cash equivalents, debt and equity instruments and the undrawn revolving credit facility.
Second Quarter - 6 Year Financial Performance of LFL
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(1) For a full explanation of the Company's use of non-IFRS and supplementary financial measures, please refer to the sections of this press release with the headings "Non-IFRS Financial Measures" and "Supplementary Financial Measures".
Mike Walsh, President and CEO of LFL commented, "LFL continued to deliver strong top and bottom-line results during the second quarter, with system-wide sales up
Summary financial highlights for the three months ended June 30, 2024 and June 30, 2023
| For the | Three months ended | |||||||||||
| (C$ in millions except %, share and per share amounts) | June 30, 2024 | June 30, 2023 | $ Increase (Decrease) | % Increase (Decrease) | ||||||||
| Total system-wide sales (1) | 742.1 | 717.6 | 24.5 | |||||||||
| Franchise sales (1) | 124.4 | 123.8 | 0.6 | |||||||||
| Revenue | 617.7 | 593.8 | 23.9 | |||||||||
| Cost of sales | 346.5 | 332.9 | 13.6 | |||||||||
| Gross profit | 271.2 | 260.9 | 10.3 | |||||||||
| Gross profit margin as a percentage of revenue | ||||||||||||
| Selling, general and administrative expenses (2) | 228.0 | 219.5 | 8.5 | |||||||||
| SG&A as a percentage of revenue | ||||||||||||
| Income before net finance costs and income tax expense | 43.1 | 41.5 | 1.6 | |||||||||
| Net finance costs | (3.1 | ) | (5.2 | ) | (2.1 | ) | ( | |||||
| Income before income taxes | 40.0 | 36.3 | 3.7 | |||||||||
| Income tax expense | 10.1 | 8.3 | 1.8 | |||||||||
| Adjusted net income (1) | 29.9 | 28.0 | 1.9 | |||||||||
| Adjusted net income as a percentage of revenue (1) | ||||||||||||
| After-tax mark-to-market (gain) loss on financial derivative instruments (1) | (0.3 | ) | 0.6 | (0.9 | ) | ( | ||||||
| Net income | 30.2 | 27.4 | 2.8 | |||||||||
| Basic weighted average number of common shares | 68,144,456 | 67,908,619 | ||||||||||
| Basic earnings per share | $ | 0.44 | $ | 0.40 | $ | 0.04 | ||||||
| Adjusted basic earnings per share (1) | $ | 0.44 | $ | 0.41 | $ | 0.03 | ||||||
| Diluted weighted average number of common shares | 68,646,870 | 68,646,167 | ||||||||||
| Diluted earnings per share | $ | 0.44 | $ | 0.40 | $ | 0.04 | ||||||
| Adjusted diluted earnings per share (1) | $ | 0.44 | $ | 0.41 | $ | 0.03 | ||||||
| Common share dividends declared | $ | 0.18 | $ | 0.16 | $ | 0.02 | ||||||
Same Store Sales (1)
| For the | Three months ended | |||||||||||
| (C$ in millions, except %) | June 30, 2024 | June 30, 2023 | $ Increase | % Increase | ||||||||
| Same store sales (1) | 600.8 | 580.0 | 20.8 | |||||||||
Historical Same Store Sales (1) as previously reported based on comparable quarters
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(1) Please refer to the sections of this press release with the headings "Non-IFRS Financial Measures" and "Supplementary Financial Measures".
(2) Selling, general and administrative expenses ("SG&A").
Revenue
For the three months ended June 30, 2024, revenue was
Same Store Sales (1)
Same store sales in the quarter increased by
Gross Profit
The gross profit margin for the second quarter of 2024 was steady at
Selling, General and Administrative Expenses ("SG&A")
The Company's SG&A as a percentage of revenue for the second quarter of 2024 was
Adjusted Net Income (1) and Adjusted Diluted Earnings Per Share (1)
Adjusted net income for the quarter totaled
The adjusted diluted earnings per share in the second quarter of 2024 was
Net Income and Diluted Earnings Per Share
Net income for the second quarter of 2024 was
Dividends
As previously announced, the Company paid a quarterly dividend of
(1) Please refer to the sections of this press release with the headings "Non-IFRS Financial Measures" and "Supplementary Financial Measures".
Outlook
Given the Company's strong and continuously improving financial position, our principal objective is to increase our market share and profitability. We remain focused on our commitment to effectively manage our costs but to also continuously invest in the business to drive growth initiatives that will drive more customers to both our online eCommerce sites and our 300 store locations across Canada.
Non-IFRS Financial Measures
The Company uses financial measures that do not have standardized meaning under IFRS and may not be comparable to similar measures presented by other entities. The Company calculates the non-IFRS financial measures by adjusting certain IFRS measures for specific items the Company believes are significant, but not reflective of underlying operations in the period, as detailed below:
| Non-IFRS Measure | IFRS Measure |
| Adjusted net income | Net income |
| Adjusted income before income taxes | Income before income taxes |
| Adjusted earnings per share - basic | Earnings per share - basic |
| Adjusted earnings per share - diluted | Earnings per share - diluted |
| Adjusted EBITDA | Net income |
Adjusted Net Income
The Company calculates comparable measures by excluding the effect of changes in fair value of derivative instruments, related to the net effect of USD-denominated forward contracts. The Company uses derivative instruments to manage its financial risk in accordance with the Company's corporate treasury policy. Management believes excluding from income the effect of these mark-to-market valuations and changes thereto, until settlement, better aligns the intent and financial effect of these contracts with the underlying cash flows.
Adjusted EBITDA
Adjusted earnings before interest, income taxes, depreciation and amortization, mark-to-market adjustment due to the changes in the fair value of the Company's financial derivative instruments and any non-recurring charges to income ("Adjusted EBITDA") is a non-IFRS financial measure used by the Company. The Company considers adjusted EBITDA to be an effective measure of profitability on an operational basis and is commonly regarded as an indirect measure of operating cash flow, a significant indicator of success for many businesses. The Company's Adjusted EBITDA may not be comparable to the Adjusted EBITDA measure of other companies, but in management's view appropriately reflects the Company's specific financial condition. This measure is not intended to replace net income, which, as determined in accordance with IFRS, is an indicator of operating performance.
The following is a reconciliation of reported net income to adjusted EBITDA:
| For the | Three months ended | Six months ended | ||||||||||
| (C$ in millions) | June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | ||||||||
| Net income | 30.2 | 27.4 | 49.0 | 40.3 | ||||||||
| Income tax expense | 10.2 | 8.1 | 15.6 | 11.5 | ||||||||
| Net finance costs | 3.1 | 5.2 | 7.7 | 10.4 | ||||||||
| Depreciation and amortization | 26.6 | 26.7 | 53.9 | 53.4 | ||||||||
| Mark-to-market (gain) loss on financial derivative | (0.3 | ) | 0.7 | (3.6 | ) | 0.8 | ||||||
| Adjusted EBITDA | 69.8 | 68.1 | 122.6 | 116.4 | ||||||||
Total System Wide Sales
Total system wide sales refer to the aggregation of revenue recognized in the Company's consolidated financial statements plus the franchise sales occurring at franchise stores to their customers which are not included in the revenue figure presented in the Company's consolidated financial statements. Total system wide sales is not a measure recognized by IFRS and does not have a standardized meaning prescribed by IFRS, but it is a key indicator used by the Company to measure performance against prior period results. Therefore, total system wide sales as discussed in this MD&A may not be comparable to similar measures presented by other issuers. We believe that disclosing this measure is meaningful to investors because it serves as an indicator of the strength of the Company's overall store network, which ultimately impacts financial performance.
Franchise Sales
Franchise sales figures refer to sales occurring at franchise stores to their customers which are not included in the revenue figures presented in the Company's consolidated financial statements, or in the same store sales figures in this MD&A. Franchise sales is not a measure recognized by IFRS, and does not have a standardized meaning prescribed by IFRS, but it is a key indicator used by the Company to measure performance against prior period results. Therefore, franchise sales as discussed in this MD&A may not be comparable to similar measures presented by other issuers. Once again, we believe that disclosing this measure is meaningful to investors because it serves as an indicator of the strength of the Company's brands, which ultimately impacts financial performance.
Supplementary Financial Measures
The Company uses supplementary financial measures to disclose financial measures that are not (a) presented in the financial statements and (b) is, or is intended to be, disclosed periodically to depict the historical or expected future financial performance, financial position or cash flow, that is not a non-IFRS financial measure as detailed above.
Same Store Sales
Same store sales are defined as sales generated by stores, both in store and through online transactions, that have been open for more than 12 months on a fiscal basis. Same store sales as discussed in this MD&A may not be comparable to similar measures presented by other issuers, however this measure is commonly used in the retail industry. We believe that disclosing this measure is meaningful to investors because it enables them to better understand the level of growth of our business.
About Leon's Furniture Limited
Leon's Furniture Limited is the largest retailer of furniture, appliances and electronics in Canada. Our retail banners include: Leon's; The Brick; Brick Outlet; and The Brick Mattress Store. Finally, with The Brick's Midnorthern Appliance banner alongside with Leon's Appliance Canada banner, this makes the Company the country's largest commercial retailer of appliances to builders, developers, hotels and property management companies. The Company has 300 retail stores from coast to coast in Canada under various banners. The Company operates six websites: leons.ca, thebrick.com, furniture.ca, midnorthern.com, transglobalservice.com and appliancecanada.com.
Cautionary Statement
This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in Leon's Furniture Limited's periodic reports including the annual report or in the filings made by Leon's Furniture Limited from time to time with securities regulatory authorities.
This News Release may include certain "forward-looking statements" which are not comprised of historical facts. Forward- looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management's expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes, but is not limited to, the Company's objectives, goals or future plans, and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to failure to identify beneficial business opportunities, failure to convert the potential in the pursued business opportunities to tangible benefits to the Company or its shareholders, delays in obtaining or failures to obtain required shareholder and TSX approvals, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, and those risks set out in the Company's public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
For further information, please contact:
Victor Diab
Chief Financial Officer
Leon's Furniture Limited
Tel: (416) 243-4073
lflgroup.ca
Jonathan Ross
LodeRock Advisors, Leon's Investor Relations
jon.ross@loderockadvisors.com
Tel: (416) 283-0178
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/219135
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