Business
Leon's Furniture Limited - 2010 First Quarter
Leon's Furniture Limited - 2010 First Quarter
About this update from Leon's Furniture Limited
[{"type":"text","content":"\n\n\n\n May 12, 2010 (Canada NewsWire Group) -- For the three months ended March 31, 2010, total Leon's sales were $201,119,000 including $42,328,000 of franchise sales ($195,200,000 including $42,675,000 of franchise sales in 2009), an increase of 3.0%. Net income for the first quarter 2010 was $11,970,000, 17 cents per common share ($8,571,000, 12 cents per common share in 2009), an increase of 41.7% per common share.\nFor the first quarter of 2010, we are very pleased to report higher sales and a significant improvement in profits when compared to the first quarter of 2009. Higher sales were aided by a general improvement in the economy along with a strong marketing and merchandising effort. The profit improvement was mainly the result of three key factors: higher sales compared to the prior year quarter; an improvement in our gross margin which was aided by the strengthening of the Canadian dollar and a more favorable product mix; and the continuation of improved productivity and expense controls that were initiated in the prior year.\nAlthough we are very satisfied with the results of our first quarter, we believe that we must remain vigilant during 2010 in order to continue to improve the performance of our Company. We are announcing today that we plan to increase the pace of our expansion over the next five years with the goal of opening approximately 5 stores per year. This year, we have already begun construction on a new 73,000 sq. ft. facility in Thunder Bay, Ontario. We will soon begin construction on a new 84,000 sq. ft. building in Regina, Saskatchewan and just recently we signed a lease for a 76,000 sq. ft. premises in Guelph, Ontario to be completely renovated for opening in the summer next year. We plan to accomplish this increased expansion by building, leasing or acquiring stores. We also plan to continue renovation of our existing buildings with major renovations and additions to our Sault St. Marie and Sudbury stores this year.\nAs previously announced, we paid a quarterly 7 cents dividend on April 5, 2010. Today we are happy to announce that the Directors have declared a quarterly dividend of 7 cents per common share payable on the 5th day of July 2010 to shareholders of record at the close of business on the 4th day of June 2010. As of 2007, dividends paid by Leon's Furniture Limited are "eligible di...