Leon's Reports Same Store Corporate Sales Decline of 2.9%
Furniture Industry News Update -
Leon's Furniture Limited announced its results for the full year 2012 and the fourth quarter 2012.
For the year ended December 31, 2012, total Leon's system wide sales were $880,240,000 including $198,077,000 franchise sales ($879,561,000 including $196,725,000 franchise sales in 2011), a slight increase.
Same store corporate sales were down 2.9% from the prior year. Net income was $46,782,000, $0.67 per common share ($56,666,000, $0.81 per common share in 2011), a decrease of 17.3% per share.
For the three months ended December 31, 2012, total Leon's system wide sales were $248,187,000 including $59,725,000 of franchise sales ($254,989,000 including $61,166,000 of franchise sales in 2011), a decrease of 2.7%.
Same store corporate sales were down 2.0% from the comparable quarter. Net income was $16,121,000, $0.23 per common share ($19,872,000, $0.28 per common share in 2011), a decrease of 17.9% per share.
The fourth quarter 2012 includes a net after tax cost of $1,470,000 or $0.02 per common share for professional fees relating to the acquisition of The Brick Ltd., representing an adjusted $0.25 per common share as compared to $0.28 per common share in the prior year.
2012 proved to be another challenging year for Leon's with continuing weakness in the economy, creating a very competitive retail environment.
In the third quarter of 2012, the Company celebrated grand openings of newly renovated stores in Sault Ste. Marie and Sudbury, Ontario, as well as our third Appliance Canada showroom which opened in Toronto, Ontario. In the fourth quarter of 2012, we celebrated the opening of a new franchise store that replaced an existing store in St. John, New Brunswick.
The company plans to celebrate grand openings of a new 42,000 sq. ft. store in Orangeville, Ontario and a 36,000 sq. ft. store in Brantford, Ontario in the first quarter of 2013. In the second quarter of 2013, we are planning the grand opening of a new 50,000 sq, ft. store in Sherbrooke, Quebec.
On November 11, 2012, the Company entered into a definitive agreement to acquire all the outstanding shares of The Brick Ltd. which is subject to the approval of the Competition Bureau and other customary closing conditions. The total consideration for the purchase of The Brick Ltd. is approximately $700 million. The company expects to close on the deal in the first quarter of 2013.
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