Leon’s announces record financial results
LFL, Canada’s Largest Home Furnishings Retailer, Releases Record Financial Results for the Second Quarter ended June 30, 2021.
Financial Highlights – Q2-2021
- Record revenue in the quarter of $588.5 million compared to $416.7 million in Q2-2020, an increase of 41.2%, despite approximately half of the Company’s retail store locations being temporarily closed due to government-mandated pandemic closures that impacted a majority of the quarter.
- Same-store sales increased 41.1% in Q2-2021 compared to Q2-2020.
- ECommerce sales growth in the quarter of 46% as compared to the prior-year quarter, which is on top of the 504% growth in eCommerce sales that occurred in the prior year’s quarter as compared to the second quarter of 2019.
- Gross profit margin improved to 44.11% in Q2-2021 from 43.65% in Q2-2020, with increases across all product categories.
- Adjusted EBITDA of $94.8 million in Q2-2021 compared to $63.1 million in Q2-2020, an increase of 50.3%.
- Adjusted diluted earnings per share grew by 87.1% to $0.58 in Q2-2021 from $0.31 in Q2-2020.
- A special dividend of $1.25 was declared by the Board of Directors.
- Under the terms of the Company’s share repurchase program announced in September 2020, 3.3 million common shares with an approximate value of $68.7 million have been purchased through June 30, 2021.
- Financial Highlights – six months ended June 30, 2021
- System-wide sales increased by $303.6 million to $1.4 billion, or 27.4%.
- Revenue increased to $1.16 billion from $914.3 million, an increase of $245.4 million or 26.8%.
- Same-store sales increased 26.3% year to date June 2021.
- Adjusted EBITDA increased by 27.8% to $181.9 million year-to-date June 2021 compared to June 2020.
- Net income increased by 42.7% to $86.9 million year-to-date June 2021.
- Adjusted diluted earnings per share grew by 48.6% to $1.10 in year-to-date June 2021 from $0.74 in year-to-date as of June 2020.
- On a trailing twelve-month basis, adjusted diluted earnings per share are at $2.41 compared to $1.62 in the prior year’s trailing twelve-month period, an increase of over 48% or $0.79 per share.
- Year to date, the Company has returned $66.5 million to shareholders in the form of dividends paid and common share repurchases compared to $29 million in the prior-year period.
Edward Leon, Chief Executive Officer during the quarter, commented, “Our record Q2 2021 financial results reflect the consistent efforts of our associates across the country, solid execution, as well as the power of the omnichannel sales platform we have steadily expanded over the past several years. During the quarter, we achieved double-digit revenue increases in all regions and product categories, with a 41.1% increase in same-store sales driven by our scalable eCommerce business in a period where almost half of the Company’s retail store locations experienced government-mandated temporary store closures. Importantly, the Company’s steady focus on operational execution and profitability, as well as higher operating profit margins in the eCommerce business, drove adjusted diluted EPS growth of 87.1% on a CEWS-adjusted basis in an environment where freight costs were elevated due to COVID-related supply chain disruptions.”
Mr. Leon, who retired effective July 1, 2021, continued, “I would like to welcome Mike Walsh to the CEO role. Mike joined the business in 2015 and has been a key contributor to the growth we have achieved since that time. LFL is better positioned than ever to continue building shareholder value, leveraging: a scalable, rapidly growing eCommerce platform; a national retail footprint featuring some of the most recognizable banners in the country; a portfolio of industry-leading service businesses; a substantial real estate portfolio; a dominant national distribution infrastructure; and a rock-solid balance sheet with half a billion dollars of unrestricted liquidity. I want to thank all of our long-term shareholders for their continued support and express my firm belief that despite the Company’s growth since its founding over 100 years ago, the best is yet to come.”