Sleep Country Canada 3Q sales up 7.1%; earnings rise 13.7%
Bedding specialty chain says Arizona’s Sleep America sales drop 5.1%
Michael Knell -- Furniture Today, November 2, 2007
TORONTO — Bedding specialty retailer Sleep Country Canada reported third-quarter sales and earnings gains, although same-store sales in Canada rose modestly and its Sleep America banner saw sales slump 5.1%.
Corporate parent Sleep Country Canada Income Fund said total sales in the quarter grew 7.1% to C$104.7 million from C$97.8 million last year. Net earnings came to C$11 million, or 78 Canadian cents per trust unit, a 13.7% gain over the prior year’s C$9.7 million, or 69 cents per unit.
Earnings before interest, taxes, depreciation and amortization, or EBITDA, the company’s preferred performance measure, increased 7.7% in the third quarter to C$16 million.
In the nine months, sales rose 13.1% to C$268.1 million, EBITDA increased 10.4% to C$32 million, and net earnings rose 1.5% to C$21.2 million, or C$1.51 per trust unit.
The fund’s Canadian operations, Sleep Country Canada and Dormez-vous, produced third-quarter sales growth of 9.7%, with same-store sales up 1.7% and EBITDA growing 13.8%.
Chairman and CEO Stephen Gunn cited “an uncharacteristic level of mattress market weakness in 2007,” and said the company was pleased its Canadian operations “continue to deliver solid levels of sales and EBITDA growth.”
Arizona-based Sleep America’s sales decline was blamed on weak market conditions. Its third-quarter EBITDA declined $800,000 from last year’s comparable quarter. “There are no indications signalling the timing of improved conditions,” said SCC President Christine Magee of the U.S. arm.
Meanwhile, the fund’s trustees approved an increase in cash distributions to C$1.45 per trust unit per year from the current annual rate of C$1.40 per unit. This is the sixth distribution increase since May 2004, with the annual rate growing 35%, from C$1.075 to C$1.45.
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Sleep Country Canada sales up 9.4%
Aug 15, 2008 -
Sleep Country Canada 2Q sales up 11.8%
Sep 16, 2007 -
Sales up, net earnings down at Sleep Country Canada
Jul 31, 2007 -
Sleep Country Canada sales up 9.4%
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