Bullboard - Stock Discussion Forum Leon's Furniture Ltd T.LNF

Alternate Symbol(s): LEFUF

Leon's Furniture Limited is a Canada-based retailer of furniture, appliances and electronics in Canada. The Company operates in two segments: Leon’s and The Brick, which operates in the business of the sale of home furnishings, mattresses, appliances and electronics in Canada. Its retail banners include Leon’s, The Brick, Brick Outlet and The Brick Mattress Store. It operates six e-commerce... see more

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TSX:LNF - Post Discussion

Leon's Furniture Ltd > Q2 P&L Results solid, Cash Flow from Operations declining

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Post by BuckProfit on Aug 10, 2022 9:36pm

Q2 P&L Results solid, Cash Flow from Operations declining

P&L Statement looks solid => Revenues spectacular at $647 Million; Net Income at $50 Million (double Q1 which was $24.8M); EPS (diluted) $0.74/share vs $0.36/share in Q1....extremely impressive quarter considering all the inflationary issues in the economy (obviously people are still buying household items).
I am a little pulled back on cash flow. Cash dropped from $140 Million in Q1 to $81.3M in Q2 or a 42% decline Qtr over Qtr. Cash flow from operations has been negative for second month in a row. Seems to be driven mainly by changes in working capital (mostly return of customer deposits and change in inventory). Hopefully they can start generating enough cash from operations in Q3 to cover their working capital and capital expenditures....cash is king in times of rising interest rates.

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