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LFL, Canada's Largest Home Retailer, Releases Financial Results for the Third Quarter Ended September 30, 2023, and has Increased its Dividend by 12.5%
Toronto, Ontario--(Newsfile Corp. - November 8, 2023) - Leon's Furniture Limited (TSX: LNF) (" ...
About this update from Leon's Furniture Limited
[{"type":"text","content":"LFL, Canada's Largest Home Retailer, Releases Financial Results for the Third Quarter Ended September 30, 2023, and has Increased its Dividend by 12.5%Toronto, Ontario--(Newsfile Corp. - November 8, 2023) - Leon's Furniture Limited (TSX: LNF) (\"LFL\" or the \"Company\"), today announced financial results for the quarter ended September 30, 2023.Financial Highlights - Q3-2023All comparisons are made to Q3-2022 unless otherwise indicatedRevenue for the third quarter 2023 was $661.0 million, comparable to the prior year quarter, despite continued macro-economic challenges.Gross profit margin in the quarter decreased 188 basis points to 44.04%.Adjusted net income(1) for the quarter totaled $51.7 million, a decrease of 12.7%.Adjusted diluted earnings per share(1) of $0.75, a decrease of 13.8%.Reduced inventory levels to $430 million, down $72 million or 14.3% from the prior year.Cash provided by operating activities was $107.6 million for the third quarter in comparison to $49.3 million in the prior year quarter reflecting the strong cash flow generation of the business.The Company received $20 million in proceeds in connection with CURO Intermediate Holdings' sale of Flexiti to Questrade.The Company repaid $50 million in long-term debt during the period. At September 30, 2023, unrestricted liquidity was $385.1 million, comprised of cash, cash equivalents, debt and equity instruments and the undrawn revolving credit facility.LFL's Board of Directors approved the Company's resolution to create a Real Estate Investment Trust (REIT) via initial public offering (IPO). The timing is subject to prevailing market conditions and receipt of required regulatory approvals.Third Quarter - 5 Year Financial Performance of LFLTo view an enhanced version of this graphic, please visit:https://images.newsfilecorp.com/files/4576/186572_lfltbl1.jpg(1) For a full explanation of the Company's use of non-IFRS and supplementary financial measures, please refer to the sections of this press release with the headings \"Non-IFRS Financial Measures\" and \"Supplementary Financial Measures.\"Mike Walsh, President and CEO of LFL commented, \"During Q3, the combination of lower cost inventory and targeted marketing enabled us to drive sales momentum while balancing gross margin within an acceptable range. We saw an increase in year-over-year written order activit...