Leon's Furniture Limited - 1999 third quarter
TORONTO, Nov. 17 /CNW/ - For the nine months ended September 30, 1999,
sales were $250,133,000 ($231,213,000 in 1998), an increase of 8.2% and net
income was $23,385,000, $1.16 per common share ($15,501,000, 77 cents per
common share in 1998), an increase of 50.9%. Sales including franchise sales
reached $327 million (1998 - $299 million), an increase of 9.4%.
For the three months ended September 30, 1999, sales were $99,073,000
($92,966,000 in 1998), an increase of 6.6% and net income was $13,582,000, 67
cents per common share ($7,823,000, 39 cents per common share in 1998), an
increase of 73.6%. Our third quarter results include a $5,808,000 gain before
tax on the sale of our remaining U.S. property in Tempe, Arizona. Excluding
the Tempe gain, earnings increased by 18% for the third quarter.
The Directors have declared a quarterly dividend of 8 cents per common
share payable on January 7, 2000 to shareholders of record at the close of
business on December 10, 1999. Given the Company's continuing strong
performance, the Directors have also decided to declare a special dividend of
75 cents per common share payable on February 1, 2000 to shareholders of
record at the close of business on January 4, 2000. In addition, the annual
dividend on the convertible non-voting series shares has been increased from
12 cents to 14 cents and will be payable on January 7, 2000 to shareholders of
record at the close of business on December 10, 1999.
The construction of our new Home Furnishings Superstore in Barrie has
been completed and after a successful grand opening, the store continues to do
well. Construction of our new Home Furnishings Superstore in Montreal East has
begun and should be complete in the summer of 2000. Plans for new stores in
Red Deer, Alberta, Niagara-On-The-Lake/St. Catharines, Kitchener, Ontario and
Quebec City are continuing to develop. The newly renovated showroom in
Scarborough, Ontario will open in January 2000.
<<
EARNINGS PER SHARE FOR EACH QUARTER
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MARCH 31 JUNE 30 SEPT. 30 DEC. 31 YEAR TOTAL
-------- ------- -------- ------- ----------
1999 - Basic 20 cents 29 cents 67 cents $1.16
- Fully Diluted 19 cents 28 cents 65 cents $1.12
1998 - Basic 14 cents 24 cents 39 cents 54 cents $1.31
- Fully Diluted 14 cents 23 cents 38 cents 52 cents $1.27
1997 - Basic 12 cents 22 cents 34 cents 40 cents $1.08
- Fully Diluted 11 cents 21 cents 34 cents 39 cents $1.05
LEON'S FURNITURE LIMITED - MEUBLES LEON LTEE
(signed)
Anthony T. Leon
Chairman of the Board
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
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Nine months ended September 30
(in thousands, except per share amounts) 1999 1998
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Sales $250,133 $231,213
Cost of sales and expenses (including interest on
long-term debt of 1999 - $2; 1998 - $17) 209,875 203,390
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Income before income taxes 40,258 27,823
Income tax provision 16,873 12,322
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Net Income 23,385 15,501
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Number of shares outstanding
(weighted average) - Basic 20,139.50 20,073.00
- Fully diluted 20,920.42 20,616.41
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Net Income per share - Basic $1.16 $.77
- Fully diluted $1.12 $.75
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CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
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Nine months ended September 30
(in thousands) 1999 1998
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Operating activities:
Net Income $23,385 $15,501
Add items not requiring a current cash outlay -
Depreciation and amortization 4,488 4,134
Net change in non-cash working capital related to
operations (12,634) (13,562)
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Cash provided by operations 15,239 6,073
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Investing activities:
Purchase of fixed assets (5,777) (5,263)
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Cash used in investing activities (5,777) (5,263)
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Financing activities:
Repayment of long-term debt 0 (146)
Dividends paid (14,785) (4,222)
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Cash used in financing activities (14,785) (4,368)
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Net decrease in cash during the period (5,323) (3,558)
Cash, January 1 101,085 83,974
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Cash, September 30 $95,762 $80,416
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>>
Year 2000
Leon's Furniture Limited evaluated and has implemented changes to its
computer system to prevent problems related to the year 2000. A test rollover
of our main computer systems into the year 2000 was performed successfully in
the second quarter. All other critical applications have been tested and found
to be year 2000 compliant. The Company has communicated with its principal
suppliers to determine their state of the year 2000 compliance. While still
awaiting confirmation from a few suppliers, most have confirmed that upgrades
to their systems for year 2000 compliance have been completed.
-30-
For further information: Mr. Terrence T. Leon, Vice President,
Secretary & C.F.O., Leon's Furniture Limited, (416) 243-4073 |
