Sleep Country Enters its 30th Anniversary Year with Positive Revenue Growth
All financial results are reported in Canadian dollars unless otherwise stated.
- Revenues increased by
$3.2 million or 1.6% to$209.7 million in Q1 2024 from$206.5 million in Q1 2023; - Same Store Sales ("SSS")1 decreased by 1.6% in Q1 2024 from Q1 2023;
- Revenues attributed to eCommerce increased to 24.5% in Q1 2024 from 22.3% in Q1 2023;
- Gross profit increased by
$2.1 million to$72.9 million in Q1 2024 from$70.8 million in Q1 2023; - Gross profit margin increased to 34.8% in Q1 2024 from 34.3% in Q1 2023;
- Operating EBITDA1 decreased by
$3.0 million to$38.4 million in Q1 2024 from$41.4 million in Q1 2023; - Operating EBITDA1 margin decreased to 18.3% in Q1 2024 from 20.0% in Q1 2023;
- Net income attributable to the Company decreased by
$2.6 million to$8.7 million in Q1 2024 from$11.3 million in Q1 2023; - Adjusted net income attributable to the Company1 decreased by
$3.6 million to$9.6 million in Q1 2024 from$13.2 million in Q1 2023; - Diluted earnings per share ("EPS") decreased by
$0.06 or to$0.26 in Q1 2024 from$0.32 in Q1 2023; - Diluted adjusted EPS1 decreased by
$0.09 to$0.28 in Q1 2024 from$0.37 in Q1 2023; - Subsequent to quarter-end, on
May 7, 2024 , the Board declared a dividend of$0.237 per share payable onMay 30, 2024 to shareholders of record at the close of business onMay 23, 2024 . The dividend was designated as an "eligible dividend" for Canadian tax purposes; and - Subsequent to quarter-end, the Company completed its acquisition of the remaining 32% of the outstanding common shares of
Hush Blankets Inc.
- Launched a partnership with veritree to help mitigate climate change by planting a tree for every delivery completed through the Company's green glove delivery program;
- Generated over 100 million impressions on the "Hour Back Pledge" to acknowledge the potential setback to Canadians' health and well-being resulting from the loss of one hour of
sleep from Daylight Saving Time; and - Donated
$100,000 to theCanadian Mental Health Association ("CMHA") advocating for the adoption of healthy sleeping habits by all Canadians.
"This quarter's shopping patterns remained volatile as consumers continue to navigate these uncertain times. Despite this pressure, we saw Revenues increase by 1.6% and delivered an improvement in our gross margin by
"As
"As we invest in all our brands and teams, our focus is continuing to drive innovative ways to grow our share of business, by servicing and exceeding our customers' expectations through our multi-channel approach. Fiscal 2024 will see the evolution of our acquired digital brands as we roll out more of our brick-and-mortar locations while also introducing new innovative merchandise into a tactile environment," said Schaefer.
"We are invigorated like we were in our early days, 30 years ago, to serve a broader customer segmentation with multiple ways to shop enabling Canadians to get their best nights' sleep. No matter what our customers'
(C$ thousands unless otherwise stated; other than store and share |
|
Q1 2024 |
|
Q1 2023 |
|
Change |
|
|
|
|
|
|
|
Revenues |
$ |
209,715 |
$ |
206,495 |
|
1.6 % |
SSS(1) |
|
(1.6 %) |
|
(6.2 %) |
|
|
Gross profit margin (%) |
|
34.8 % |
|
34.3 % |
|
|
|
|
|
|
|
|
|
Stores opened |
|
4 |
|
2 |
|
|
Stores closed |
|
- |
|
1 |
|
|
|
|
|
|
|
|
|
Operating EBITDA(1) |
$ |
38,388 |
$ |
41,360 |
|
(7.2 %) |
Operating EBITDA margin (%)(1) |
|
18.3 % |
|
20.0 % |
|
|
|
|
|
|
|
|
|
Net income attributable to the Company |
$ |
8,735 |
$ |
11,330 |
|
(22.9 %) |
Adjusted net income attributable to the Company(1) |
$ |
9,557 |
$ |
13,248 |
|
(27.9 %) |
Basic EPS |
$ |
0.26 |
$ |
0.33 |
|
(21.2 %) |
Diluted EPS |
$ |
0.26 |
$ |
0.32 |
|
(18.8 %) |
Basic adjusted EPS(1) |
$ |
0.28 |
$ |
0.38 |
|
(26.3 %) |
Diluted adjusted EPS(1) |
$ |
0.28 |
$ |
0.37 |
|
(24.3 %) |
Revenues increased by
Gross profit margin increased by
Total SG&A expenses increased by
Operating EBITDA1 was
Finance related expenses increased by
Other expenses (income) decreased by
Income taxes decreased by
Net income attributable to the Company for Q1 2024 decreased by
Adjusted net income attributable to the Company1 for Q1 2024 decreased by
Note: |
1 See the "Non-IFRS and Other Measures" section of this news release |
This news release refers to certain measures that are not recognized under IFRS® Accounting Standards and do not have a standardized meaning prescribed by IFRS Accounting Standards, including Same Store Sales or SSS, EBITDA, Operating EBITDA, Operating EBITDA margin, Adjusted net income attributable to the Company, Basic adjusted EPS and Diluted adjusted EPS. For more information on these Non-IFRS and other measures refer to "Non-IFRS and Other Measures" in the Company's MD&A for Q1 2024, which is available on SEDAR+ at sedarplus.ca.
|
|
|
|
|
(C$ thousands unless otherwise stated) |
|
Q1 2024 |
|
Q1 2023 |
Reconciliation of net income attributable to the Company |
|
|
|
|
Net income attributable to the Company |
$ |
8,735 |
$ |
11,330 |
Add impact of the following: |
|
|
|
|
Non-controlling interests |
|
204 |
|
(37) |
Other expenses (income) |
|
(568) |
|
540 |
Finance related expenses |
|
8,324 |
|
6,469 |
Income taxes |
|
3,436 |
|
4,368 |
Depreciation and amortization |
|
17,698 |
|
16,998 |
EBITDA |
|
37,829 |
|
39,668 |
Adjustments: |
|
|
|
|
Acquisition costs |
|
- |
|
559 |
Share-based compensation |
|
559 |
|
1,133 |
Total adjustments |
$ |
559 |
$ |
1,692 |
|
|
|
|
|
Operating EBITDA |
$ |
38,388 |
$ |
41,360 |
Operating EBITDA margin (%) |
|
18.3 % |
|
20.0 % |
|
|
|
|
|
Reconciliation of net income attributable to the Company |
|
|
|
|
Net income attributable to the Company |
$ |
8,735 |
$ |
11,330 |
Adjustments: |
|
|
|
|
Acquisition costs |
|
- |
|
559 |
Share-based compensation |
|
559 |
|
1,133 |
Accretion expense |
|
367 |
|
596 |
Tax impact of all adjustments |
|
(104) |
|
(370) |
Total adjustments |
$ |
822 |
$ |
1,918 |
|
|
|
|
|
Adjusted net income attributable to the Company |
$ |
9,557 |
$ |
13,248 |
Certain information in this news release contains forward-looking information and forward-looking statements, which reflect the current view of management with respect to the Company's objectives, plans, goals, strategies, outlook, results of operations, financial and operating performance, prospects and opportunities. Wherever used, the words "may", "will", "anticipate", "intend", "estimate", "expect", "plan", "believe" and similar expressions, identify forward-looking information and forward-looking statements. Forward-looking information and forward-looking statements should not be read as guarantees of future events, performance or results, and will not necessarily be accurate indications of whether, or the times at which, such events, performance or results will be achieved. All the information in this news release, containing forward-looking information or forward-looking statements, is qualified by these cautionary statements.
Forward-looking information and forward-looking statements are based on information available to management at the time they are made, underlying estimates, opinions and assumptions made by management and management's current good faith belief with respect to future strategies, prospects, events, performance and results, and are subject to inherent risks and uncertainties surrounding future expectations generally. Such risks and uncertainties include, but are not limited to, those described in the Company's MD&A for Q1 2024 under the sections "Risk Factors" and those described in the Company's 2023 annual information form (the "AIF") filed on
The Company cautions that the list of risk factors and uncertainties described in the MD&A for Q1 2024 and the AIF are not exhaustive and that should certain risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual strategies, prospects, events, performance and results may vary significantly from those expected. There can be no assurance that the actual strategies, prospects, results, performance, events or activities anticipated by the Company will be realized or even if substantially realized, that they will have the expected consequences to, or effects on, the Company. Readers are urged to consider the risks, uncertainties, and assumptions carefully in evaluating the forward-looking information and forward-looking statements and are cautioned not to place undue reliance on such information and statements. The Company does not undertake to update any such forward-looking information or forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws.
SOURCE