All financial results are reported in Canadian dollars unless otherwise stated.
Fourth Quarter Financial Highlights
- Revenues increased by
$12.6 million or 5.2% to$255.6 million in Q4 2023 from$243.0 million in Q4 2022; - Same Store Sales ("SSS")1 decreased by 3.2% in Q4 2023 from Q4 2022;
- Revenues attributed to eCommerce increased to 26.4% in Q4 2023 from 21.1% in Q4 2022;
- Gross profit increased by
$5.2 million or 5.7% to$96.3 million in Q4 2023 from$91.1 million in Q4 2022; - Gross profit margin increased to 37.7% in Q4 2023 from 37.5% in Q4 2022;
- Operating EBITDA1 decreased by
$1.6 million or 3.1% to$51.4 million in Q4 2023 from$53.0 million in Q4 2022; - Operating EBITDA1 margin decreased to 20.1% in Q4 2023 from 21.8% in Q4 2022;
- Net income attributable to the Company decreased by
$18.0 million or 44.5% to$22.5 million in Q4 2023 from$40.5 million in Q4 2022; - Adjusted net income attributable to the Company decreased by
$4.6 million or 19.1% to$19.3 million in Q4 2023 from$23.9 million in Q4 2022; - Diluted earnings per share ("EPS") decreased by
$0.48 or 42.5% to$0.65 in Q4 2023 from$1.13 in Q4 2022; - Diluted adjusted EPS1 decreased by
$0.11 or 16.4% to$0.56 in Q4 2023 from$0.67 in Q4 2022; - The Company purchased for cancellation of 1,132,199 common shares (Q4 2022 – 976,532 common shares) in Q4 2023 for total consideration of
$26.2 million (Q4 2022 –$22.0 million ) against the Company's normal course issuer bid ("NCIB"); and - Subsequent to quarter-end, on
February 5, 2024 , the Board declared a dividend of$0.237 per common share that was paid onFebruary 29, 2024 to holders of the common shares of record as at the close of business onFebruary 21, 2024 .
Annual Financial Highlights
- Revenues increased by
$6.3 million or 0.7% to$935.0 million in 2023 from$928.7 million in 2022; - Revenues attributed to eCommerce increased to 22.7% in 2023 from 19.6% in 2022;
- Gross profit margin increased to 37.2% in 2023 from 36.7% in 2022;
- Operating EBITDA1 margin decreased to 21.0% in 2023 from 23.5% in 2022;
- Net income attributable to the Company decreased by
$39.3 million or 35.6% to$71.2 million in 2023 from$110.5 million in 2022; - Adjusted net income attributable to the Company decreased by
$28.8 million or 27.9% to$74.1 million in 2023 from$102.9 million in 2022; - Diluted EPS decreased by
$0.97 or 32.2% to$2.04 in 2023 from$3.01 in 2022; - Diluted adjusted EPS1 decreased by
$0.69 or 24.6% to$2.12 in 2023 from$2.81 in 2022; and - The Company purchased for cancellation of 1,596,910 common shares (2022 – 2,339,409 common shares) in 2023 for total consideration of
$37.3 million (2022 -$57.7 million ) against its NCIB.
Fourth Quarter Business Highlights
- Opened one new
Sleep Country store inCalgary, Alberta and one new Dormez-vous store inVictoriaville, Quebec ; - Opened first-ever brick-and-mortar store for Endy in
Sherway Gardens ,Toronto, Ontario ; - Opened first store-within-a-store for
Sleep Country and Silk & Snow inOttawa, Ontario ; - Launched first ultra-premium retail concept store, the rest, in
Yorkdale Shopping Centre ,Toronto, Ontario ; and - Subsequent to quarter-end, opened two new
Sleep Country stores inOshawa andEtobicoke, Ontario , and one new Dormez-vous store inQuebec City, Quebec .
President & CEO Commentary
"I am very proud to report a solid finish to our fiscal year setting a new watermark record in Revenues in our nearly 30-year-old company. Our annual Revenues grew by 0.7% while our Q4 2023 Revenues grew by 5.2% from Q4 2022. Despite ongoing industry challenges that have seen double-digit unit declines in
"Our omnichannel approach continues to resonate well with our customers, as successfully demonstrated with the opening of three new brick-and-mortar concepts, Endy, Silk & Snow, and the rest, our first luxury retail brand. With all three brands adding and expanding our merchandising hierarchy, while also broadening our customer segmentation, it further reinforces our position as Canada's leading and most trusted specialty
"As we step into fiscal 2024, we remain focused on three key priorities: growth through innovation, our customer experience and our operational excellence. We will continue to invest in expanding our brands with cutting-edge
Summary of Fourth Quarter Financial Results
(C$ thousands unless otherwise stated; other | Q4 2023 | Q4 2022 | Change | 2023 | 2022 | Change | ||||||||||||
Revenues | $ | 255,602 | $ | 243,028 | 5.2 % | $ | 935,044 | $ | 928,657 | 0.7 % | ||||||||
SSS(1) | (3.2 %) | (11.5 %) | (6.4 %) | (1.8 %) | ||||||||||||||
Gross profit margin (%) | 37.7 % | 37.5 % | 37.2 % | 36.7 % | ||||||||||||||
Stores opened(2) | 5 | 2 | 14 | 5 | ||||||||||||||
Stores closed | - | - | 2 | 1 | ||||||||||||||
Stores renovated | 2 | - | 2 | - | ||||||||||||||
Operating EBITDA(1) | $ | 51,356 | $ | 53,005 | (3.1 %) | $ | 196,758 | $ | 218,559 | (10.0 %) | ||||||||
Operating EBITDA margin (%)(1) | 20.1 % | 21.8 % | 21.0 % | 23.5 % | ||||||||||||||
Net income attributable to the Company | $ | 22,471 | $ | 40,469 | (44.5 %) | $ | 71,192 | $ | 110,471 | (35.6 %) | ||||||||
Adjusted net income attributable to the Company(1) | $ | 19,308 | $ | 23,874 | (19.1 %) | $ | 74,143 | $ | 102,868 | (27.9 %) | ||||||||
Basic EPS | $ | 0.66 | $ | 1.14 | (42.1 %) | $ | 2.06 | $ | 3.04 | (32.2 %) | ||||||||
Diluted EPS | $ | 0.65 | $ | 1.13 | (42.5 %) | $ | 2.04 | $ | 3.01 | (32.2 %) | ||||||||
Basic adjusted EPS(1) | $ | 0.57 | $ | 0.67 | (14.9 %) | $ | 2.14 | $ | 2.83 | (24.4 %) | ||||||||
Diluted adjusted EPS(1) | $ | 0.56 | $ | 0.67 | (16.4 %) | $ | 2.12 | $ | 2.81 | (24.6 %) |
Revenues increased by
Gross profit margin increased by 20 basis points from 37.5% in Q4 2022 to 37.7% in Q4 2023 due to an increase in average unit selling prices, coupled with lower product and transportation costs, leveraging of occupancy costs and a decrease in supplies expense. This increase was partially offset by higher delivery costs mainly driven by growth in eCommerce revenues, and higher inventory allowances and sales and distribution compensation.
Total G&A expenses increased by
Operating EBITDA1 was
Finance related expenses (income) increased by
Net income before income taxes in Q4 2023 decreased by
Net income attributable to the Company for Q4 2023 decreased by
Adjusted net income attributable to the Company1 for Q4 2023 decreased by
Summary of Annual Financial Results
Revenues increased by
Gross profit margin increased by
Total G&A expenses increased by
Operating EBITDA1 was
Finance related expenses (income) increased by
Net income before income taxes in 2023 decreased by
Net Income attributable to the Company for 2023 decreased by
Adjusted net income attributable to the Company1 for 2023 decreased by
Notes:
1 See the "Non-IFRS and Other Measures" section of this news release.
2 Stores opened includes the six Casper stores acquired through the Casper Canada acquisition in
Conference Call
About
Non-IFRS and Other Measures
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 Q4 2023, which is available on SEDAR+ at sedarplus.ca.
Calculation of Non-IFRS and Other Measures
Q4 | Annual | |||||||
(C$ thousands unless otherwise stated, except EPS) | 2023 | 2022 | 2023 | 2022 | ||||
Reconciliation of net income attributable to the Company | ||||||||
Net income attributable to the Company | $ | 22,471 | $ | 40,469 | $ | 71,192 | $ | 110,471 |
Add impact of the following: | ||||||||
Non-controlling interests | 354 | 314 | 343 | 225 | ||||
Other expenses (income) | (127) | 65 | (550) | (292) | ||||
Finance related expenses (income) | 2,416 | (15,533) | 23,471 | (889) | ||||
Income taxes | 6,860 | 8,220 | 25,135 | 35,346 | ||||
Depreciation and amortization | 18,244 | 17,176 | 69,615 | 65,633 | ||||
EBITDA | 50,218 | 50,711 | 189,206 | 210,494 | ||||
Adjustments: | ||||||||
Acquisition costs | - | 449 | 1,255 | 449 | ||||
ERP implementation costs | - | 603 | - | 2,637 | ||||
Share-based compensation | 1,138 | 1,242 | 6,297 | 4,979 | ||||
Total adjustments | $ | 1,138 | $ | 2,294 | $ | 7,552 | $ | 8,065 |
Operating EBITDA | $ | 51,356 | $ | 53,005 | $ | 196,758 | $ | 218,559 |
Operating EBITDA margin (%) | 20.1 % | 21.8 % | 21.0 % | 23.5 % | ||||
Reconciliation of net income attributable to the Company | ||||||||
Net income attributable to the Company | $ | 22,471 | $ | 40,469 | $ | 71,192 | $ | 110,471 |
Adjustments: | ||||||||
Acquisition costs | - | 449 | 1,255 | 449 | ||||
ERP implementation costs | - | 603 | - | 2,637 | ||||
Share-based compensation | 1,138 | 1,242 | 6,297 | 4,979 | ||||
Accretion expense | (4,070) | (18,370) | (2,880) | (13,850) | ||||
Tax impact of all adjustments | (231) | (519) | $ | (1,721) | $ | (1,818) | ||
Total adjustments | $ | (3,163) | $ | (16,595) | $ | 2,951 | $ | (7,603) |
Adjusted net income attributable to the Company | $ | 19,308 | $ | 23,874 | $ | 74,143 | $ | 102,868 |
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 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 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 MD&A for Q4 2023 under the sections "Risk Factors" and those described in the Company's 2023 annual information form (the "AIF") filed on March 6, 2024, both of which can be accessed under the Company's profile on SEDAR+ at sedarplus.ca. Additional risks and uncertainties not presently known to the Company or that the Company currently believes to be less significant may also adversely affect the Company.
The Company cautions that the list of risk factors and uncertainties described in the MD&A for Q4 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.
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