TORONTO, Feb. 17 /CNW/ -- TORONTO, Feb. 17 /CNW/ - Leon's Furniture
Limited is pleased to announce its results for the full year 2010
and the fourth quarter 2010. For the year ended December 31, 2010,
total Leon's sales were $896,834,000 including $197,062,000
franchise sales ($897,470,000 including $194,290,000 franchise
sales in 2009). Net income was $63,284,000, $0.90 per common share
($56,864,000, $0.80 per common share in 2009), an increase of 12.5%
per share. Same store corporate sales were down 1.1% from the prior
year. For the three months ended December 31, 2010, total Leon's
sales were $254,517,000 including $59,820,000 of franchise sales
($255,665,000 including $57,679,000 of franchise sales in 2009), a
decrease of 0.4%. Same store corporate sales were down 2.9%
from the prior year fourth quarter. Net income was $21,360,000,
$0.30 per common share ($24,030,000, $0.34 per common share in
2009), a decrease of 11.1% per share. Although sales were
flat compared to the prior year, we are very pleased with the
profit improvements this year. We thank our Associates for all
their efforts this year in improving our productivity and reducing
overall expenditures which in turn helped improve profitability in
2010. During the year 2010, the Corporation opened a new corporate
store in Thunder Bay, Ontario, and welcomed new Leon's franchises
in Collingwood, Ontario and Fort Frances, Ontario.
Construction has begun on a new warehouse and showroom in Regina,
Saskatchewan. In addition, leasing documentation was signed
for new corporate stores to be located in Guelph, Ontario;
Rosèmere, Quebec; and Mississauga, Ontario. We anticipate the
opening of these showrooms in the fall of 2011. Given the success
of our 100(th) Anniversary program in 2009, the Corporation
continued its donations to hospitals and charities in communities
where Leon's corporate stores are located. The Directors are
pleased to declare a quarterly dividend of 9¢ per common share,
payable on April 4, 2011 to the shareholders of record at the close
of business on March 4, 2011. Dividends paid by Leon's Furniture
Limited are "eligible dividends" pursuant to the changes to the
Income Tax Act under Bill C-28, Canada. EARNINGS PER SHARE FOR EACH
QUARTER MARCH 31 JUNE 30 SEPT. 30 DEC. 31 YEAR TOTAL 2010 - Basic
17¢ 17¢ 26¢ 30¢ $0.90 - Fully Diluted 17¢ 16¢ 25¢ 29¢ $0.87 2009 -
Basic 12¢ 12¢ 22¢ 34¢ $0.80 - Fully Diluted 12¢ 12¢ 21¢ 33¢ $0.78
2008 - Basic 16¢ 16¢ 25¢ 33¢ $0.90 - Fully Diluted 15¢ 16¢ 24¢ 32¢
$0.87 LEON'S FURNITURE LIMITED / MEUBLES LEON LTÉE Mark J. Leon
Chairman of the Board Leon's Furniture Limited / Meubles Leon Ltée
Incorporated under the laws of Ontario CONSOLIDATED BALANCE SHEETS
(UNAUDITED) As at December 31 As at December 31 ($ in thousands)
2010 2009 ASSETS Current Cash and cash equivalents 71,589 58,301
Marketable securities 120,726 94,337 Restricted marketable
securities 19,498 18,088 Accounts receivable 28,569 31,501
Inventory 85,423 83,957 Future tax assets 1,251 1,133 Total current
assets 327,056 287,317 Prepaid expenses 1,574 1,560 Goodwill 11,282
11,282 Intangibles 4,902 5,334 Future tax assets 11,951 11,465
Property, plant & equipment net 209,909 212,198 566,674 529,156
LIABILITIES AND SHAREHOLDERS' EQUITY Current Accounts payable and
accrued liabilities 84,065 83,880 Income taxes payable 524 1,958
Customers' deposits 17,198 15,632 Dividends payable 6,310 4,938
Deferred warranty plan revenue 16,882 16,150 Total current
liabilities 124,979 122,558 Deferred warranty plan revenue 21,392
22,248 Redeemable share liability 172 383 Future tax liabilities
9,845 8,829 Total liabilities 156,388 154,018 Shareholders' equity
Common shares 19,177 17,704 Retained earnings 390,629 357,576
Accumulated other comprehensive income 480 (142) Total
shareholders' equity 410,286 375,138 566,674 529,156 Leon's
Furniture Limited / Meubles Leon Ltée CONSOLIDATED STATEMENTS OF
INCOME AND RETAINED EARNINGS (UNAUDITED) Period ended December 31st
($ in thousands) 3 months ended 12 months ended 2010 2009 2010 2009
Sales 194,697 197,986 699,772 703,180 Cost of sales 112,130 111,735
412,379 419,819 Gross profit 82,567 86,251 287,393 283,361
Operating expenses (income) Salaries and commissions 27,174 26,166
105,368 103,977 Advertising 9,843 9,140 31,565 34,732 Rent and
property taxes 3,538 3,183 14,000 12,165 Amortization 4,160 4,154
16,156 16,562 Employee profit-sharing plan 1,275 1,350 4,746 4,177
Other operating expenses 11,008 11,553 41,495 42,359 Interest
income (991) (796) (3,134) (3,165) Other income (3,676) (2,871)
(11,757) (9,980) 52,331 51,879 198,439 200,827 Income before gain
on sale of capital property and income taxes 30,236 34,372 88,954
82,534 Gain on sale of capital property - - 1,231 - Income before
income taxes 30,236 34,372 90,185 82,534 Provision for income taxes
8,876 10,342 26,901 25,670 Net income for the period 21,360 24,030
- 63,284 56,864 Retained earnings, beginning of the period 377,319
355,519 357,576 338,960 Dividends declared (6,310) (19,094)
(22,492) (33,951) Excess of cost of share repurchase over carrying
value of related shares (1,740) (2,879) (7,739) (4,297) Retained
earnings, end of period 390,629 357,576 390,629 357,576 Weighted
average number of common shares outstanding ('000's) Basic 70,126
70,682 70,372 70,714 Diluted 72,781 73,399 73,134 73,321 Earnings
per share Basic $0.30 $0.34 $0.90 $0.80 Diluted $0.29 $0.33 $0.87
$0.78 Dividends declared per share Common $0.09 $0.27 $0.32 $0.48
Convertible, non-voting $0.18 $0.14 $0.18 $0.14 Leon's Furniture
Limited / Meubles Leon Ltée CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED) Period ended December 31st ($ in thousands) 3 months
ended 12 months ended 2010 2009 2010 2009 OPERATING ACTIVITIES Net
income for the period 21,360 24,030 63,284 56,864 Add (deduct)
items not involving a current cash payment Amortization of
property, plant & equipment 3,935 3,935 15,354 15,810
Amortization of intangible assets 225 219 802 752 Amortization of
deferred warranty revenue (4,346) (3,951) (16,838) (15,900) Loss
(gain) on sale of marketable securities (181) (229) (337) 275
Future tax expense (653) (2,087) 295 (1,608) Loss (gain) on sale of
property, plant & equipment 2 1 (1,236) (32) Cash received on
warranty sales 4,635 5,009 16,714 17,319 24,977 26,927 78,038
73,480 Net change in non-cash working capital balances related to
operations 17,656 21,517 1,391 4,035 Cash provided by operating
activities 42,633 48,444 79,429 77,515 INVESTING ACTIVITIES
Purchase of property, plant & equipment (5,502) (1,480)
(13,568) (10,545) Purchase of intangibles (108) (330) (370) (685)
Proceeds on sale of property, plant & equipment 4 - 2,117 48
Purchase of marketable securities (153,391) 80,882 (524,414)
(285,311) Proceeds on sale of marketable securities 140,551
(92,262) 497,691 274,749 Issuance of series 2009 redeemable share
liability - - - 10,683 Decrease(increase) in employee share
purchase loans 461 217 1,556 (9,154) Cash used in investing
activities (17,985) (12,973) (36,988) (20,215) FINANCING ACTIVITIES
Dividends paid (6,309) (19,111) (21,120) (33,965) Repurchase of
common shares (1,800) (3,023) (8,033) (4,517) Cash used in
financing activities (8,109) (22,134) (29,153) (38,482) Net
increase in cash and cash equivalents during the period 16,539
13,337 13,288 18,818 Cash and cash equivalents, beginning of period
55,050 44,964 58,301 39,483 Cash and cash equivalents,end of period
71,589 58,301 71,589 58,301 Leon's Furniture Limited / Meubles Leon
Ltée CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
Three month period ended December 31st ($ in thousands) Net of tax
2010 Tax effect 2010 Net income for the period 21,360 - 21,360
Other comprehensive income, net of tax Unrealized gains on
available-for-sale financial assets arising during the period 160
23 137 Reclassification adjustment for net gains and (losses)
included in net income (168) (25) (143) Change in unrealized
(losses) on available-for-sale financial assets arising during the
period (8) (2) (6) Comprehensive income for the period 21,352 (2)
21,354 Net of tax 2009 Tax effect 2009 Net income for the period
24,030 - 24,030 Other comprehensive income, net of tax Unrealized
gains on available-for-sale financial assets arising during the
period 268 45 223 Reclassification adjustment for net gains and
(losses) included in net income (247) (39) (208) Change in
unrealized gains on available-for-sale financial assets arising
during the period 21 6 15 Comprehensive income for the period
24,051 6 24,045 Twelve month period ended December 31st ($ in
thousands) Net of tax 2010 Tax effect 2010 Net income for the
period 63,284 63,284 Other comprehensive income, net of tax
Unrealized gains on available-for-sale financial assets arising
during the period 917 144 773 Reclassification adjustment for net
gains and (losses) included in net income (178) (27) (151) Change
in unrealized gains on available-for-sale financial assets arising
during the period 739 117 622 Comprehensive income for the period
64,023 117 63,906 Net of tax 2009 Tax effect 2009 Net income for
the period 56,864 - 56,864 Other comprehensive income, net of tax
Unrealized gains on available-for-sale financial assets arising
during the period 2,578 430 2,148 Reclassification adjustment for
net gains and (losses) included in net income (232) (37) (195)
Change in unrealized gains on available-for-sale financial assets
arising during the period 2,346 393 1,953 Comprehensive income for
the period 59,210 393 58,817 To view this news release in HTML
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pDominic Scarangella, Tel: (416) 243-4073/p
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