TORONTO, Feb. 21 /CNW/ - For the three months ended December 31, 2005,
total Leon's sales were $224,776,000 including $54,532,000 of franchise sales
($207,544,000 including $54,464,000 of franchise sales in 2004), an increase
of 8.3% and net income was $19,660,000, $1.11 per common share ($17,090,000,
93 cents per common share in 2004), an increase of 19.4% per share.
In our fourth quarter 2005, we saw stronger sales and growth in profits
over the prior year. We had a very successful grand opening of a new warehouse
and showroom in Hamilton, Ontario and same store corporate sales were up 8.1%
for the quarter.
For the year ended December 31, 2005, total Leon's sales were
$720,787,000 including $173,043,000 franchise sales ($669,843,000 including
$165,252,000 franchise sales in 2004), an increase of 7.6%. Net income was
$48,964,000, $2.73 per common share ($46,104,000, $2.49 per common share in
2004), an increase of 9.6% per share. Same store corporate sales were up 4.0%
over the prior year.
Overall, we are proud to report that Leon's Furniture Limited achieved
stronger sales and growth in profits in 2005. We want to congratulate all our
Associates across Canada for their strong efforts, hard work, and dedication
in helping achieve these goals.
For 2006, renovations will be started in our Kitchener, Ontario; Halifax,
Nova Scotia; Winnipeg, Manitoba and Calgary, Alberta stores. In the meantime,
a new warehouse and showroom was opened in Vaughan, Ontario in January, 2006.
As well, construction has commenced for two new warehouse and showroom stores
located in Newmarket, Ontario and Saskatoon, Saskatchewan. We are scheduling
to open these new stores in the latter half of 2006.
Given the company's strong performance and cash position, the Director's
are pleased to declare an increase in the quarterly dividend from 20 cents to
25 cents per common share, payable on April 6, 2006 to the shareholders of
record at the close of business on March 3rd, 2006. The Director's have also
declared a special dividend of 50 cents per common share payable on May 5th,
2006 to the shareholders of record at the close of business on April 7th,
2006.
The 2004 Annual Report will be mailed in late March to shareholders of
record on March 24, 2006. The Annual Shareholders Meeting will take place on
May 12, 2006.
<<
EARNINGS PER SHARE FOR EACH QUARTER
-----------------------------------
YEAR
----
MARCH 31 JUNE 30 SEPT. 30 DEC. 31 TOTAL
-------- -------- -------- -------- --------
2005 - Basic 43 cents 43 cents 76 cents $1.11 $2.73
- Fully
Diluted 41 cents 42 cents 74 cents $1.04 $2.61
2004 - Basic 40 cents 41 cents 75 cents 93 cents $2.49
- Fully
Diluted 39 cents 40 cents 73 cents 89 cents $2.41
2003 - Basic 23 cents 33 cents 58 cents 85 cents $1.99
- Fully
Restated Diluted 23 cents 31 cents 56 cents 82 cents $1.92
LEON'S FURNITURE LIMITED - MEUBLES LEON LTEE
Mark J. Leon
Chairman of the Board
Leon's Furniture Limited-Meubles Leon Ltee
Incorporated under the laws of Ontario
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
As at As at
December 31 December 31
(in thousands) 2005 2004
$ $
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ASSETS
Current
Cash and cash equivalents 20,592 14,995
Marketable securities 75,128 84,000
Accounts receivable 20,705 17,763
Inventory 72,644 71,279
Income taxes recoverable 621 3,472
Future income tax asset - 305
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Total current assets 189,690 191,814
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Future income tax assets 9,989 9,095
Capital assets, net 182,023 170,022
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381,702 370,931
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities 75,485 79,451
Customers' deposits 9,496 9,896
Dividends payable 3,844 3,907
Deferred warranty plan revenue 10,299 7,722
Future tax liabilities 455 -
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Total current liabilities 99,579 100,976
Deferred warranty plan revenue 17,220 17,079
Redeemable share liability 406 199
Future tax liabilities 4,059 2,810
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Total liabilities 121,264 121,064
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Shareholders' equity
Common shares 10,968 10,532
Retained earnings 249,470 239,335
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Total shareholders' equity 260,438 249,867
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381,702 370,931
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Leon's Furniture Limited-Meubles Leon Ltee
Incorporated under the laws of Ontario
CONSOLIDATED STATEMENTS OF INCOME AND
RETAINED EARNINGS
(UNAUDITED)
Period ended December 31st
(in thousands, except earnings per share)
3 months ended 12 months ended
2005 2004 2005 2004
$ $ $ $
Sales 170,244 153,080 547,744 504,591
Cost of sales 98,412 87,275 323,629 295,241
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Gross profit 71,832 65,805 224,115 209,350
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Operating expenses(income)
Salaries and commissions 22,633 20,192 81,364 75,394
Advertising 9,802 9,815 30,494 29,492
Rent and property taxes 2,227 2,297 9,518 9,579
Amortization 3,114 2,873 11,892 10,412
Employee profit-sharing plan 829 750 3,105 2,870
Other operating expenses 10,118 8,603 33,675 30,558
Interest income (825) (796) (2,857) (3,083)
Other income (5,916) (3,980) (17,801) (16,609)
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41,982 39,754 149,390 138,613
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Income before gain
on sale of property
and income taxes 29,850 26,051 74,725 70,737
Gain on sale of property - - - -
Income before income taxes 29,850 26,051 74,725 70,737
Provision for income taxes 10,192 8,961 25,761 24,633
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Net income for the period 19,658 17,090 48,964 46,104
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Retained earnings,
beginning of the period 233,655 229,580 239,335 220,892
Dividends declared (3,843) (3,907) (14,725) (13,915)
Excess of cost of share
repurchase over carrying
value of related shares - (3,428) (24,104) (13,746)
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Retained earnings,
end of period 249,470 239,335 249,470 239,335
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Weighted average number
of common shares
outstanding
Basic 17,677 18,505 17,963 18,485
Fully diluted 18,901 19,143 18,734 19,112
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Earnings per share
Basic $1.11 $0.93 $2.73 $2.49
Fully diluted $1.04 $0.89 $2.61 $2.41
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Leon's Furniture Limited-Meubles Leon Ltee
Incorporated under the laws of Ontario
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Period ended December 31st
(in thousands)
3 months ended 12 months ended
2005 2004 2005 2004
$ $ $ $
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OPERATING ACTIVITIES
Net income for the period 19,658 17,090 48,964 46,104
Add (deduct) items
not involving a
current cash payment
Amortization of
capital assets 3,114 2,873 11,892 10,412
Amortization of deferred
warranty revenue (2,355) (3,083) (10,129) (9,008)
Gain on sale of
marketable securities (785) 21 (1,962) (916)
Future tax expense 794 824 1,115 1,244
Gain on sale of
capital assets - 293 (96) (897)
Cash received on
warranty sales 4,167 3,935 12,847 10,333
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24,593 21,953 62,631 57,272
Net change in non-cash
working capital
balances related
to operations 8,861 10,908 (4,850) (7,090)
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Cash provided by
operating activities 33,454 32,861 57,781 50,182
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INVESTING ACTIVITIES
Purchase of
capital assets (6,303) (11,374) (25,186) (31,273)
Proceeds on sale
of capital assets - (91) 417 1,905
Purchase of
marketable securities (717,189) (452,844) (2,328,397) (1,793,639)
Proceeds on sale of
marketable securities 709,395 442,264 2,339,231 1,800,721
Issuance of series
2005 shares 7,535 - 7,535 -
(Increase) decrease
in employee share
purchase loans (7,507) 109 (6,839) 1,065
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Cash (used in)
investing activities (14,069) (21,936) (13,239) (21,221)
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FINANCING ACTIVITIES
Dividends paid (3,563) (3,702) (14,538) (12,663)
Repurchase of
capital stock - (3,475) (24,407) (13,952)
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Cash used in
financing activities (3,563) (7,177) (38,945) (26,615)
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Increase in cash
and cash equivalents
during the period 15,822 3,748 5,597 2,346
Cash and cash equivalents,
beginning of period 4,770 11,247 14,995 12,649
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Cash and cash equivalents,
end of period 20,592 14,995 20,592 14,995
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