Leon's Furniture Ltd Debt decreased on 6.8% in 2015 while Revenue increased slightly on 1.2%
25.02.2016 • About Leon's Furniture Ltd (
$LNF) • By InTwits
Leon's Furniture Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Leon's Furniture Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.9%. At the same time it's a lot of higher than industry average of 8.2%.
- CAPEX is quite volatile: 31.7 in 2015, 58.0 in 2014, 41.5 in 2013, 13.2 in 2012, 26.6 in 2011
- The company has business model with average profitability: ROIC is at 10.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Leon's Furniture Ltd ($LNF) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 683 | 682 | 1,695 | 2,008 | 2,032 | 1.2% |
| Gross Profit | 289 | 283 | 735 | 877 | 886 | 1.1% |
| SG&A | | 183 | 479 | 757 | 767 | 1.3% |
| EBITDA | 89 | 75 | 144 | 163 | 161 | -1.1% |
| Net Income | 57 | 47 | 68 | 76 | 77 | 1.5% |
Balance Sheet
|
|---|
| Cash | 73 | 75 | 6 | 46 | 8 | -82.9% |
| Short Term Debt | 0 | 0 | 68 | 32 | 52 | 62.3% |
| Long Term Debt | 0 | 0 | 433 | 391 | 343 | -12.4% |
Cash flow
|
|---|
| Capex | 25 | 18 | 19 | 17 | 23 | 37.4% |
Ratios
|
|---|
| Revenue growth | -3.9% | -0.1% | 148.4% | 18.5% | 1.2% | |
| EBITDA growth | -12.8% | -16.0% | 92.4% | 13.1% | -1.1% | |
| Gross Margin | 42.3% | 41.6% | 43.4% | 43.7% | 43.6% | -0.0% |
| EBITDA Margin | 13.0% | 11.0% | 8.5% | 8.1% | 7.9% | -0.2% |
| Net Income Margin | 8.3% | 6.9% | 4.0% | 3.8% | 3.8% | 0.0% |
| SG&A, % of revenue | | 26.8% | 28.2% | 37.7% | 37.8% | 0.1% |
| CAPEX, % of revenue | 3.7% | 2.6% | 1.1% | 0.8% | 1.1% | 0.3% |
| ROIC | 18.1% | 13.7% | 13.8% | 10.9% | 10.9% | 0.0% |
| ROE | 13.6% | 10.7% | 14.4% | 14.4% | 13.3% | -1.1% |
| Net Debt/EBITDA | -0.8x | -1.0x | 3.4x | 2.3x | 2.4x | 0.1x |
Revenue and profitability
Leon's Furniture Ltd's Revenue increased slightly on 1.2% in 2015. EBITDA Margin showed almost no change in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
Leon's Furniture Ltd's CAPEX/Revenue was 1.1% in 2015. Leon's Furniture Ltd showed small CAPEX/Revenue decline of 1.5 pp from 2.6% in 2012 to 1.1% in 2015. Average CAPEX/Revenue for the last three years was 1.0%.
Return on investment
The company operates at good ROE (13.33%) while ROIC is low (10.88%). ROIC showed almost no change in 2015. ROE decreased slightly on 1.1 pp from 14.4% to 13.3% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.4x and Debt / EBITDA is 2.5x. Net Debt / EBITDA increased on 0.1x from 2.3x to 2.4x in 2015. Debt decreased on 6.8% in 2015 while cash dropped on 82.9% in 2015.
Management team
The company's CEO Terrence Thomas Leon "Terry" is a founder and has spent 13 years at the company. Leon's Furniture Ltd's CFO is Dominic Scarangella. Dominic Scarangella has 16 years tenure at the company.
Appendix 1: Peers in Consumer, Cyclical
Below you can find Leon's Furniture Ltd benchmarking vs. other companies in Consumer, Cyclical industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Amaya Inc ($AYA) | 216.4% | 311.5% | 85.2% | 254.0% | |
| Partner Jet Corp ($PJT) | -19.9% | -15.2% | 1.2% | 119.7% | |
| Kelso Technologies Inc ($KLS) | 80.5% | 577.5% | 487.8% | 81.4% | |
| XPEL Technologies Corp ($DAP.U) | 46.3% | 76.6% | 67.7% | 65.5% | |
| Holloway Lodging Corp ($HLC) | 5.4% | -24.6% | 2.7% | 62.7% | |
| |
|---|
| Median (67 companies) | 13.3% | 5.3% | 4.9% | 7.2% | 3.7% |
|---|
| Leon's Furniture Ltd ($LNF) | | -0.1% | 148.4% | 18.5% | 1.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Restaurant Brands International Inc ($QSR) | | | 69.7% | 87.0% | 42.9% |
| Imvescor Restaurant Group Inc ($IRG) | 96.2% | 94.2% | 89.7% | 84.9% | 84.3% |
| DEQ Systems Corp ($DEQ) | 74.3% | 77.5% | 78.4% | 84.7% | |
| Second Cup Ltd/The ($SCU) | 91.1% | 86.6% | 85.1% | 72.7% | 81.1% |
| New Look Vision Group Inc ($BCI) | 72.3% | 71.8% | 72.6% | 72.6% | |
| |
|---|
| Median (59 companies) | 36.1% | 34.1% | 31.6% | 32.5% | 36.8% |
|---|
| Leon's Furniture Ltd ($LNF) | 42.3% | 41.6% | 43.4% | 43.7% | 43.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Westshore Terminals Investment Corp ($WTE) | | 49.7% | 65.9% | 60.9% | 59.6% |
| Gamehost Inc ($GH) | 44.2% | 46.1% | 45.7% | 45.9% | |
| Great Canadian Gaming Corp ($GC) | 34.1% | 16.8% | 41.1% | 40.1% | |
| Amaya Inc ($AYA) | -5.7% | 7.2% | 38.2% | 39.3% | |
| MTY Food Group Inc ($MTY) | 32.2% | 36.3% | 38.7% | 37.0% | 34.9% |
| |
|---|
| Median (65 companies) | 8.4% | 7.9% | 9.8% | 10.0% | 10.0% |
|---|
| Leon's Furniture Ltd ($LNF) | 13.0% | 11.0% | 8.5% | 8.1% | 7.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Poydras Gaming Finance Corp ($PYD) | | | | 32.5% | |
| WestJet Airlines Ltd ($WJA) | 3.9% | 7.9% | 19.5% | 18.6% | 22.5% |
| Exchange Income Corp ($EIF) | 8.2% | 7.9% | 15.8% | 15.5% | 15.4% |
| Holloway Lodging Corp ($HLC) | 3.4% | 8.2% | 6.7% | 14.8% | |
| Kelso Technologies Inc ($KLS) | 79.2% | 0.4% | 0.7% | 13.5% | |
| |
|---|
| Median (68 companies) | 2.6% | 2.7% | 2.9% | 2.4% | 3.0% |
|---|
| Leon's Furniture Ltd ($LNF) | 3.7% | 2.6% | 1.1% | 0.8% | 1.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Partner Jet Corp ($PJT) | -30.7% | -51.6% | -50.8% | 85.1% | |
| Kelso Technologies Inc ($KLS) | -121.3% | | | 48.8% | |
| XPEL Technologies Corp ($DAP.U) | 52.9% | 54.7% | 57.5% | 43.2% | |
| Westshore Terminals Investment Corp ($WTE) | | 24.0% | 37.8% | 35.0% | 38.3% |
| Iplayco Corp Ltd ($IPC) | -35.4% | 23.0% | 58.5% | 33.6% | 10.9% |
| |
|---|
| Median (68 companies) | 10.4% | 9.7% | 10.1% | 9.7% | 11.1% |
|---|
| Leon's Furniture Ltd ($LNF) | 18.1% | 13.7% | 13.8% | 10.9% | 10.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mountain China Resorts Holding Ltd ($MCG) | | | | 317.1x | |
| Restaurant Brands International Inc ($QSR) | | | 3.8x | 33.6x | 5.8x |
| Allied Hotel Properties Inc ($AHP) | | | | 21.3x | |
| Hudson's Bay Co ($HBC) | 8.7x | 3.8x | 3.6x | 19.1x | 3.6x |
| Amaya Inc ($AYA) | | 17.9x | 1.8x | 13.5x | |
| |
|---|
| Median (57 companies) | 1.3x | 1.4x | 1.6x | 1.9x | 1.4x |
|---|
| Leon's Furniture Ltd ($LNF) | -0.8x | -1.0x | 3.4x | 2.3x | 2.4x |
