Business
Leon's Furniture Limited - 2014 First Quarter
TORONTO , May 13, 2014 /CNW/ - For the three months ended March 31, 2014 , total system...
About this update from Leon's Furniture Limited
[{"type":"text","content":"\n\n\nTORONTO, May 13, 2014 /CNW/ - For the three months ended March 31, 2014,\n total system wide sales were $508,402,000 including $82,393,000 of\n franchise sales ($203,555,000 including $41,097,000 of franchise sales\n in 2013). The prior year comparisons only included $11,783,000 of The\n Brick Ltd (\"The Brick\") sales from the date of acquisition, being March\n 28, 2013 to March 31, 2013. Same store sales were down 3.8% from the\n prior year's first quarter. Net income was $818,000, $0.01 per common\n share ($5,424,000, $0.08 per common share in 2013).  The profit\n decrease in the quarter was related to lower same store sales partially\n due to the extreme weather conditions across Canada.  Further, gross\n margin dollars could have been higher had we reacted more quickly to\n the decline in the Canadian dollar.  Finally, finance costs and\n non-cash purchase price adjustments related to the acquisition of The\n Brick further lowered profit.\n\n\nThe integration of our online systems between The Brick and Leon's\n divisions is progressing as expected. Before the end of the year, we\n anticipate that both divisions will be using the same web platform for\n our individual websites and internet sales. In fact, we are pleased to\n announce that we have recently purchased a minority interest in\n Blueport Investors, LLC, our e-commerce provider and the exclusive\n rights to the use of the trade name and website Furniture.com in\n Canada. In the near future, we anticipate web promotions using three\n trade names: Leon's, The Brick and Furniture.com with the most\n extensive line up of furniture selection in the country.\n\n\nIn addition, we expect our enhanced computer system, scheduled to be\n implemented over the next 18 months, will provide new and improved\n applications to help create greater efficiencies in the operations of\n our two divisions. This should also allow us to establish integrated\n distribution networks using all our distribution facilities to better\n serve our brick and mortar stores as well as our web sales from sea to\n sea to sea.\n\n\nWith respect to new stores, construction is scheduled to begin this year\n on a new 90,000 square foot Leon's Furniture warehouse and showroom in\n the Calgary area. We continue to pursue new franchise locations in all\n areas of the country.\n\n\nAs prev...