Shares of Sleep Country Canada Holdings Inc. (TSX: ZZZ), a North York, Ontario-based mattress retailer, have surged in trading today after the company reported record results and also declared a dividend on its common shares.
For the first quarter ended March 31, 2016, ZZZ reported revenue of $107.3 million, up 17.1% on a year-over-year basis. The company’s same-store sales growth for the quarter was 11.7%, following growth of 10.5% reported in the first quarter of 2015. ZZZ reported gross profit of $26.6 million for the first quarter, up 19.9% on a year-over-year basis. The company’s operating EBITDA for the quarter was $14.4 million, up 34.4% on a year-over-year basis. Adjusted net income for the quarter was $7.5 million, up 27.9% on a year-over-year basis.
David Friesema, CEO at Sleep Country, said that the company has opened 2016 with solid financial performance, which reflect the advantages accruing from its position as Canada's leading specialty mattress retailer, an efficient business model and enduring focus on customer service.
ZZZ also declared a dividend of $0.13 per share, which will be payable on May 30, 2016 to shareholders of record at the close of business on May 20, 2016. ZZZ currently offers a dividend yield of 2.51%.
