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LFL, Canada's Largest Home Retailer, Releases Financial Results for the First Quarter Ended March 31, 2023
Toronto, Ontario--(Newsfile Corp. - May 11, 2023) - Leon's Furniture Limited (TSX: LNF) (" LFL ...
About this update from Leon's Furniture Limited
[{"type":"text","content":"LFL, Canada's Largest Home Retailer, Releases Financial Results for the First Quarter Ended March 31, 2023Toronto, Ontario--(Newsfile Corp. - May 11, 2023) - Leon's Furniture Limited (TSX: LNF) (\"LFL\" or the \"Company\"), today announced financial results for the quarter ended March 31, 2023.Financial Highlights - Q1-2023Total system sales in the quarter were $625.6 million, compared to $662.9 million in Q1 2022.Revenue for the first quarter 2023 was $513.0 million, a decrease of 6.3% compared to Q1 2022.Gross profit margin in the quarter increased 64 basis points to 43.35%, in comparison to Q1 2022.Adjusted EBITDA decreased from $65.6 million to $48.1 million in the period, in comparison to Q1 2022.Adjusted net income for the quarter totaled $12.9 million, a decrease of 50% over the prior year's quarter.Adjusted diluted earnings per share(1) decreased by 50.0% to $0.19 in Q1 2023 from $0.38 in Q1 2022.Cash provided by operating activities was a positive $8.9 million for the first quarter 2023 in comparison to an outflow of $114.5 million in the prior year quarter.The Company repaid $10 million in long-term debt during the period, resulting in a net debt balance of $36 million as at March 31, 2023.As at March 31, 2023, unrestricted liquidity is $291.1 million, comprised of cash, cash equivalents, debt and equity instruments and the undrawn revolving credit facility.First Quarter - 5 Year Financial Performance of LFLTo view an enhanced version of this graphic, please visit:https://images.newsfilecorp.com/files/4576/165460_chart1b.jpgAnnounces intention to create a Real Estate Investment Trust (the \"REIT\")On May 4, 2023, LFL announced that it intended to create a REIT. LFL has an attractive real estate portfolio of approximately 5.2 million square feet of wholly-owned real estate from which it will vend in a significant portfolio of assets to the REIT. The Company intends to maintain a majority ongoing ownership interest in the REIT. Timing of the transaction will be subject to prevailing market conditions and receipt of required regulatory approvals including approval to list the units on the Toronto Stock Exchange.LFL expects the creation of the REIT to:Unlock value for LFL shareholders by surfacing the market value of the Company's significant portfolio of cash flow generating real estate properties;Create a vehicle th...