First Quarter Highlights
Highlights Subsequent to Quarter End
1 See the Non-IFRS Measures section of this news release.
CEO'S Commentary
"We are pleased to deliver a strong performance with significant year over year growth," said
Mr. Friesema added, "In addition to our strong financial results, we also had a very busy quarter for store renovations. We invested in, and completed 14 renovations in Q1 in advance of our peak sales season. These renovations are expected to contribute to our future growth and puts us more than half way to meeting our target of 20-30 renovations for the year.
"As we continue to expand our footprint across
Dividend Declaration
On
Select Financial and Operational Results
(All amounts in thousands of Canadian dollars except store and share data)
Q1 2017 |
Q1 2016 |
% |
|
Revenues |
$124,283 |
$107,298 |
+15.8% |
SSS1 |
11.9% |
11.7% |
|
Stores opened |
2 |
4 |
|
Stores renovated |
14 |
5 |
|
Operating EBITDA1 |
$18,166 |
$14,414 |
+26.0% |
Net income (loss) from operations |
$10,258 |
$7,296 |
+40.6% |
Adjusted net income from operations1 |
$10,730 |
$7,513 |
+42.8% |
Earnings per share (basic) |
$0.27 |
$0.19 |
+42.1% |
Adjusted earnings per share1 |
$0.29 |
$0.20 |
+45.0% |
1 See the Non-IFRS Measures section of this news release
Summary of First Quarter Financial Results
Revenue for the first quarter of 2017 was
Gross profit grew by 22.3% to
Total G&A expenses increased by
During the first quarter Operating EBITDA1 increased 26.0% to
Adjusted net income1 for Q1 2017 was
Net income in Q1 2017 was
Outlook
"We are excited to have had a strong start to 2017 and we intend to focus on the same initiatives throughout the remainder of 2017 and beyond," said Mr. Friesema. "We are already on track to meet our goals of adding eight to 12 new stores in both existing and current markets, as well as renovating 20 to 30 stores to the new enhanced design.
Mr. Friesema added, "We are also pleased to announce that in the first week of May we went live with our new corporate website and eCommerce platform. This new platform will allow us to better meet our customers' needs as more and more consumers seek the option and convenience of online shopping. The platform will feature "Bloom", our exclusive bed in a box mattress as well as our full line up of accessories. We are now also testing exclusively online, a couple of new categories, featuring for the first time, blankets and throws. While 2017 will be a year of slowly ramping up the eCommerce platform, we believe that longer term, it will become a greater opportunity for us to expand our reach to a broader mix of customers with a larger product offering. This platform provides convenience to our customers in our existing markets and introduces the ability to shop our brand in the markets we have not yet entered.
Finally, we are very pleased to announce that we have initiated the process of relocating four of our distribution centres, one of which has already been successfully completed on
Conference Call
Sleep Country's CEO,
About Sleep Country
Sleep Country is
Non-IFRS Measures
This news release makes reference to certain measures that are not recognized under IFRS and do not have a standardized meaning prescribed by IFRS. They are therefore unlikely to be comparable to similar measures presented by other companies. These measures are provided as additional information to complement IFRS measures by providing further understanding of the Company's results of operations from management's perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under IFRS. The Company uses non-IFRS measures including "Same Store Sales" or "SSS", "EBITDA", "Operating EBITDA", "Adjusted Net Income" and "Adjusted Earnings Per Share" to provide investors with supplemental measures of its operating performance and thus highlight trends in its business that may not otherwise be apparent when relying solely on IFRS financial measures. The Company also believes that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. The Company's management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation. For a reconciliation of these non IFRS measures refer to the Company's MD&A for Q1 2017 which is available on SEDAR at www.sedar.com.
Forward-Looking Information
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 reads 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 of 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 2016 annual information form (the "AIF") filed on
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.
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