TORONTO, Feb. 23, 2012 /CNW/ - Leon's Furniture Limited is pleased
to announce its results for the full year 2011 and the fourth
quarter 2011. For the year ended December 31, 2011, total Leon's
sales were $879,561,000 including $196,725,000 franchise sales
($907,497,000 including $197,062,000 franchise sales in 2010), a
decrease of 3.1%. Same store corporate sales were down 6.4% from
the prior year. Net income was $56,666,000, $0.81 per common share
($63,284,000, $0.90 per common share in 2010), a decrease of 10%
per share. For the three months ended December 31, 2011, total
Leon's sales were $254,989,000 including $61,166,000 of franchise
sales ($257,708,000 including $59,820,000 of franchise sales in
2010), a decrease of 1.1%. Same store corporate sales were down
7.4% from the prior year fourth quarter. Net income was
$19,872,000, $0.28 per common share ($21,360,000 $0.30 per common
share in 2010), a decrease of 6.7% per share. 2011 proved to be
another very challenging year where we saw a further weakening in
our economy, a shrinking market and a very competitive retail
environment. We want to thank all our associates for their efforts
and dedication in helping us to mitigate the impact of these
challenges on our financial results. In the third quarter of 2011,
we opened a new corporate store in Guelph, Ontario. That was
followed by grand openings in the fourth quarter of 2011 of three
additional corporate stores in Mississauga, Ontario; Rosemère,
Quebec; and Regina, Saskatchewan. As well, during the fourth
quarter of 2011 new Leon's franchise locations had grand openings
in Bathurst, New Brunswick; and Drummondville, Quebec. In addition
to these new locations, renovations are well underway in our
Sudbury and Sault Ste. Marie, Ontario corporate stores. Our
Trenton, Ontario franchise recently completed a renovation of their
store and a renovation and expansion will commence shortly at our
Simcoe, Ontario franchise. Our Kentville franchise has recently
completed construction of a new and larger replacement store in
Coldbrook, Nova Scotia. Construction has also started for a brand
new franchise store to replace our existing St. John, New Brunswick
store. Finally, the Company has recently secured sites for four new
corporate stores in: Orangeville and Brantford, Ontario;
Sherbrooke, Quebec; and Rocky View County, which is just north of
Calgary, Alberta. Our current plan is to open these locations
during the later part of 2012 and 2013. The Directors are pleased
to declare a quarterly dividend of 10¢ per common share, payable on
April 5, 2012 to the shareholders of record at the close of
business on March 5, 2012. 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 MARCH31 JUNE 30 SEPT. 30 DEC. 31 YEARTOTAL 2011 - Basic 15¢
16¢ 22¢ 28¢ $0.81 - Fully 14¢ 15¢ 21¢ 27¢ $0.78 Diluted 2010 -
Basic 17¢ 17¢ 26¢ 30¢ $0.90 - Fully 16¢ 16¢ 25¢ 29¢ $0.87 Diluted
2009 - Basic 12¢ 12¢ 22¢ 34¢ $0.80 - Fully 12¢ 12¢ 21¢ 33¢ $0.78
Diluted LEON'S FURNITURE LIMITED / MEUBLES LEON LTÉE Mark J. Leon
Chairman of the Board Leon's Furniture Limited CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION (UNAUDITED) As at December 31 As
at December 31 ($ in thousands) 2011 2010 ASSETS Current assets
Cash and cash equivalents 72,505 71,589 Available-for-sale
financial 149,318 140,224 assets Trade receivables 28,937 28,569
Income taxes receivable 5,182 - Inventory 87,830 85,423 Total
current assets 343,772 325,805 Other assets 1,431 1,574 Property,
plant and equipment 214,158 201,492 Investment property 8,366 8,417
Intangible assets 3,958 4,902 Goodwill 11,282 11,282 Deferred
income tax assets 12,372 13,202 Total assets 595,339 566,674
LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Trade and
other payables 75,126 71,724 Provisions 11,231 12,341 Income taxes
payable - 524 Customers' deposits 19,157 17,198 Dividends payable
17,457 6,310 Deferred warranty plan revenue 16,152 16,882 Total
current liabilities 139,123 124,979 Deferred warranty plan revenue
19,445 21,392 Redeemable share liability 382 172 Deferred income
tax liabilities 10,928 9,845 Total liabilities 169,878 156,388
Shareholders' equity attributable to the shareholders of the
Company Common shares 20,918 19,177 Retained earnings 404,647
390,629 Accumulated other comprehensive (104) 480 income Total
shareholders' equity 425,461 410,286 Total liabilities and
shareholder's 595,339 566,674 equity Leon's Furniture Limited
CONSOLIDATED INCOME STATEMENTS (UNAUDITED) Three months ended
December Twelve months ended 31 December 31 ($ in thousands) 2011
2010 2011 2010 Revenue 193,823 197,888 682,836 710,435 Cost of
sales 108,010 112,130 394,099 412,379 Gross profit 85,813 85,758
288,737 298,056 Operating expenses General and 24,338 25,475 96,038
98,684 administrative expenses Sales and 22,993 22,344 78,387
78,221 marketing expenses Occupancy 9,928 7,217 32,731 29,551
expenses Other operating 2,354 1,477 6,239 5,780 expenses 59,613
56,513 213,395 212,236 Operating profit 26,200 29,245 75,342 85,820
Gain on sale of - - - 1,231 capital property Finance income 1,088
991 3,506 3,134 Profit before 27,288 30,236 78,848 90,185 income
tax Income tax 7,416 8,876 22,182 26,901 expense Profit for the
19,872 21,360 56,666 63,284 period attributable to the shareholders
of the Company Earnings per share Basic $0.28 $0.30 $0.81 $0.90
Diluted $0.28 $0.29 $0.78 $0.87 Dividends declared per share Common
$0.25 $0.09 $0.52 $0.32 Convertible, $0.20 $0.18 $0.20 $0.18
non-voting Weighted average number of common shares outstanding
Basic 69,824,750 70,125,657 69,969,417 70,371,744 Diluted
72,152,050 72,780,849 72,305,424 73,133,906 Leon's Furniture
Limited CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
Three months ended December 31 Net of tax ($ in thousands) 2011 Tax
effect 2011 Profit for the period 19,872 - 19,872 Other
comprehensive income, net of tax Unrealized gains on 1,060 148 912
available-for-sale financial assets arising during the period
Reclassification adjustment for net (51) (7) (44) gains and
(losses) included in profit for the period Change in unrealized
gains on available-for-sale financial assets arising during the
period 1,009 141 868 Comprehensive income for the period 20,881 141
20,740 attributable to the shareholders of the Company Net of tax
2010 Tax effect 2010 Profit for the period 21,360 - 21,360 Other
comprehensive income, net of tax Unrealized gains on 160 23 137
available-for-sale financial assets arising during the period
Reclassification adjustment for net (168) (25) (143) gains and
(losses) included in profit for the period Change in unrealized
gains on available-for-sale financial assets arising during the
period (8) (2) (6) Comprehensive income for the period 21,352 (2)
21,354 attributable to the shareholders of the Company Twelve
months ended December 31 Net of tax ($ in thousands) 2011 Tax
effect 2011 Profit for the period 56,666 - 56,666 Other
comprehensive income, net of tax Unrealized (losses) on (621) (87)
(534) available-for-sale financial assets arising during the period
Reclassification adjustment for net (58) (8) (50) gains and
(losses) included in profit for the period Change in unrealized
(losses) on available-for-sale financial assets arising during the
period (679) (95) (584) Comprehensive income for the period 55,987
(95) 56,082 attributable to the shareholders of the Company Net of
tax 2010 Tax effect 2010 Profit for the period 63,284 - 63,284
Other comprehensive income, net of tax Unrealized gains on 917 144
773 available-for-sale financial assets arising during the period
Reclassification adjustment for net (178) (27) (151) gains and
(losses) included in profit for the period 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 attributable to the shareholders of the Company
Leon's Furniture Limited CONSOLIDATED STATEMENTS OF CHANGES IN
EQUITY (UNAUDITED) Accumulated other Common comprehensive Retained
($ in thousands) shares income earnings Total At January 1, 2010
17,704 (142) 357,576 375,138 Comprehensive income Profit for the
period — — 63,284 63,284 Change in unrealized gains on
available-for-sale — 622 — 622 financial assets arising during the
period Total comprehensive income — 622 63,284 63,906 Transactions
with shareholders Dividends declared — — (22,492) (22,492)
Management share purchase plan 1,768 — — 1,768 Repurchase of common
shares (295) — (7,739) (8,034) Total transactions with shareholders
1,473 — (30,231) (28,758) At December 31, 2010 19,177 480 390,629
410,286 At January 1, 2011 19,177 480 390,629 410,286 Comprehensive
income Profit for the period — — 56,666 56,666 Change in unrealized
(losses) on available-for-sale — (584) — — financial assets arising
during the period Total comprehensive income — (584) 56,666 56,082
Transactions with shareholders Dividends declared — — (36,371)
(36,371) Management share purchase plan 1,798 — — 1,798 Repurchase
of common shares (57) — (6,277) (6,334) Total transactions with
shareholders 1,741 — (42,648) (40,907) At December 31, 2011 20,918
(104) 404,647 425,461 Leon's Furniture Limited CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED) Twelve months ended December
31 ($ in thousands) 2011 2010 OPERATING ACTIVITIES Profit for the
period 56,666 63,284 Add (deduct) items not involving an outlay of
cash Depreciation of property, plant 12,705 15,354 and equipment
and investment properties Amortization of intangible assets 880 802
Amortization of deferred warranty (17,271) (16,838) plan revenue
Gain on sale of property, plant (21) (1,236) and equipment Deferred
income taxes 2,008 295 Gain (loss) on sale of 35 (337)
available-for-sale financial assets Cash received on warranty plan
14,594 16,714 sales 69,596 78,038 Net change in non-cash working
capital balances related to operations (4,426) 1,391 Cash provided
by operating activities 65,170 79,429 INVESTING ACTIVITIES Purchase
of property, plant & (24,999) (13,567) equipment Purchase of
intangible assets 64 (370) Proceeds on sale of property, plant
& 39 2,117 equipment Purchase of available-for-sale (569,050)
(524,414) financial assets Proceeds on sale of 559,242 497,691
available-for-sale financial assets Decrease in employee share
purchase 2,008 1,556 loans Cash used in investing activities
(32,696) (36,987) FINANCING ACTIVITIES Dividends paid (25,224)
(21,120) Repurchase of common shares (6,334) (8,034) Cash used in
financing activities (31,558) (29,154) Net decrease in cash and
cash equivalents during the period 916 13,288 Cash and cash
equivalents, beginning 71,589 58,301 of period Cash and cash
equivalents,end of 72,505 71,589 period
Leon's Furniture Limited CONTACT: Dominic Scarangella, Tel:
416.243.4073
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