Simmons Canada 2Q sales rise 12.3%
By Furniture Today Staff -- Furniture Today, August 19, 2002
Mississauga, Ontario — SCI Income Trust, parent of bedding maker Simmons Canada, reported substantial second-quarter gains in sales and earnings.
Revenue of C$34.7 million was up 12.3% from C$30.9 million in last year's quarter, while net income soared 60.4% to C$3.3 million from C$2.0 million in 2001.
For the first half, revenue climbed 13.7% to C$65.8 million from C$57.9 million, and net income surged 67.5% to C$6.0 million from last year's C$3.6 million.
"The strong demand for our product that we experienced in the first quarter continued throughout the second quarter," said Terry Pace, Simmons Canada president and chief executive officer. "This revenue growth, together with the absence of back-to-work costs incurred at our Quebec plant last year, and continued manufacturing cost improvements this year, were instrumental in (boosting) our net income.
"We expect strong product demand to continue, but at a more modest pace in the third quarter," he said.
The company recently changed its cash distributions to unit holders from quarterly to monthly. For the past several months, unit holders have been receiving 10 Canadian cents per trust unit each month.
| Rainbow Rentals | |||
|---|---|---|---|
| Financial results | |||
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 6/30 | 2002 | 2001 | Change |
| (a) Includes non-rental revenues of $1.4 million in both quarters and $3.2 million in both six months periods. (b) Revenues minus merchandise costs, store expenses and general and administrative expenses. | |||
| Revenues (a) | $24,843,000 | $23,589,000 | 5.3% |
| Operating income (b) | 1,084,000 | 1,327,000 | (18.3%) |
| Net income | 476,000 | 418,000 | 13.9% |
| Earnings per share | 0.08 | 0.07 | 14.3% |
| 6 months ended 6/30 | 2002 | 2001 | Change |
| Revenues (a) | $49,808,000 | $47,878,000 | 4.0% |
| Operating income (b) | 2,327,000 | 2,703,000 | (13.9%) |
| Net income | 1,004,000 | 949,000 | 5.8% |
| Earnings per share | 0.17 | 0.16 | 6.3% |
