Leon's net income climbs 7.5% in 2002
By Furniture Today Staff -- Furniture Today, February 24, 2003
Toronto — Leon's Furniture, Canada's second-largest furniture and bedding retailer, said fourth-quarter sales were up 3.2% to C$138.3 million while net income fell 4.8% to C$14.2 million.
Figures for the year were better, with revenues rising 6% to C$449.7 million as net income climbed 7.5% to C$38.5 million.
Including C$129.2 million in sales by its 23 franchise stores, Leon's total 2002 sales reached C$578 million, up 5.9% over 2001's C$546.9 million.
"Profits in the fourth quarter were negatively impacted by non-operational items as a result of lower investment income and unrealized capital losses on investments," said Chairman Anthony Leon.
"Although we are pleased with our results as a whole for the year, we did see the commencement of a slowdown in the later part of 2002," he said. "In spite of this, we had a very successful grand opening of a new Leon's Super Store in Brampton, Ontario."
Leon's plans to continue its store retrofits and expansions in 2003, beginning with renovations of units in Ottawa and Burlington, Ontario.
"We also plan to open a new warehouse showroom this spring in Dorval, Quebec, and a new franchise store this summer in Sarnia, Ontario," Leon said. "Land has been secured for new stores in South Edmonton, Alberta, Hamilton, Ontario, and Quebec City, upon which we plan to start construction of superstores before the end of the year."
The family-managed full-line furniture retailer also is looking for additional locations in metro Toronto, in the twin cities of Cambridge/Guelph, Ontario, and in Saskatchewan.
| Leon's (a) | |||
|---|---|---|---|
| Earnings per share are fully diluted, and all figures in parentheses are losses or declines. | |||
| Quarter ended 12/31 | 2002 | 2001 | Change |
| (a) In Canadian dollars. | |||
| Sales | C$138,347,000 | C$134,015,000 | 3.2% |
| Operating income | 25,085,000 | 26,731,000 | (6.2%) |
| Net income | 14,213,000 | 14,922,000 | (4.8%) |
| Earnings per share | 0.71 | 0.74 | (4.1%) |
| Year ended 12/31 | 2002 | 2001 | Change |
| Sales | C$449,693,000 | C$425,687,000 | 5.6% |
| Operating income | 69,633,000 | 66,409,000 | 4.9% |
| Net income | 38,520,000 | 36,323,000 | 6.0% |
| Earnings per share | 1.93 | 1.79 | 7.8% |
