MONTREAL, Dec. 17, 2024 /CNW/ - Groupe Dynamite Inc. ("Groupe Dynamite" or the "Company") (TSX: GRGD) today reported its financial results for the third quarter of fiscal year 2024 ended November 2, 2024.
"I'm incredibly proud of the Groupe Dynamite team for delivering strong year-to-date results and a record third quarter, while at the same time completing our successful IPO. Our focus on innovation and disciplined execution led to strong metrics across the board. Our distinct brand strategy, omnichannel platform and data driven approach to marketing are resulting in robust performance in existing and new markets. Our de-risked fashion model with increased speed-to-market and leading inventory management are translating into solid bottom-line results," said Andrew Lutfy, Chief Executive Officer and Chair of the Board. "As we pursue our growth, we believe we have everything in hand to deliver on our ambitious plan and to create value for all our stakeholders."
"Following a strong summer season, our momentum continued into the third quarter with strong revenue and comparable store sales growth, fuelled by the success of our premier store and marketing strategies and on-trend collections. E-commerce sales also continued to accelerate, reflective of our aspirational omni-channel shopping experience tailored to the needs and wants of our customers. We have also ramped up our marketing and activation activities in the U.S. and launched our innovative Dynamite 3.0 store in Montréal. These initiatives are driving brand awareness and customer acquisition, setting the stage for what we believe is a bright future of continued profitable growth for Groupe Dynamite," said Stacie Beaver, President & Chief Operating Officer.
Fiscal 2024 Third Quarter Highlights
- Revenue increased by 17.5% to $258.8 million in Q3 2024, compared to $220.1 million in Q3 2023.
- Comparable store sales growth(1) of 10.1% in Q3 2024, up and above comparable store sales growth of 9.8% in Q3 2023. Retail sales per square foot(1) increased by 22.7% since the end of Q3 2023, reaching $713 over the last 4 quarters ending Q3 2024.
- Adjusted EBITDA(1) increased by 21.0% to $87.2 million in Q3 2024, representing an adjusted EBITDA margin(1) of 33.7%, compared to 32.7% over the same period last year, driven by improvements in gross margin and operating leverage.
- Operating income increased by 18.3% to $63.1 million in Q3 2024, compared to $53.3 million in Q3 2023.
- Diluted net earnings per share increased to $0.38 in Q3 2024, compared to $0.32 in Q3 2023, representing an increase of 15.9%. Adjusted diluted net earnings per share(1) increased by 22.2% to $0.41 in Q3 2024, compared to $0.33 in Q3 2023.
- Opening of 6 new stores in the United States and in Canada under both banners during Q3 2024. There were no closures during this period.
- Inventory turnover(1) improved to 6.09x in Q3 2024, compared to 5.49x for the same period of the previous year.
- Return on capital employed ("ROCE")(1) reached 43.3% at the end of Q3 2024, compared to 30.7% at the end of Q3 2023.
- Net leverage ratio(1) was 1.41x in Q3 2024, down from 2.26x in the corresponding period of the previous year.
____________ |
Notes: |
(1) Refer to "Non-IFRS Measures including Non-IFRS Financial Measures, Non-IFRS Ratios, Supplementary Financial Measures and Retail Industry Metrics" section of this press release for further details concerning these measures including definitions and reconciliations of each non-IFRS financial measure to the relevant reported IFRS financial measure. Non-IFRS financial measures and non-IFRS ratios do not have a standardized meaning under IFRS, which is used to prepare the Company's financial statements and might not be comparable to similar financial measures presented by other entities. |
(2) All references to "Q3 2024" are to the Company's 13-week period ended November 2, 2024 and to "Q3 2023" are to the Company's 13-week period ended October 28, 2023. |
Fiscal 2024 Third Quarter Financial Results
Revenue
Total revenue for Q3 2024 increased by $38.7 million or 17.5% compared to Q3 2023. The majority of the increase is attributable to retail revenue, which increased by $30.4 million or 16.5% over Q3 2023. This growth was mainly due to a 10.1% increase in comparable store sales and contribution from new stores. Online revenue for Q3 2024 increased by $8.2 million or 22.9% compared to Q3 2023.
Cost of sales and gross profit
Gross profit for Q3 2024 increased by $24.7 million or 17.9% compared to Q3 2023 which resulted in gross margin expanding to 63.0% from 62.8% over the same period. This improvement is attributable to higher average unit retail prices favorably impacted by lower markdowns, and was partly offset by higher occupancy costs.
Selling, general and administrative expenses
SG&A for Q3 2024 increased by $13.4 million or 20.1% compared to Q3 2023. This increase was mainly due to a $8.1 million rise in wages, salaries, and employee benefits, driven by higher labor costs as revenue grew and a larger proportion of stores were opened in the U.S., where labour tends to be more expensive than in Canada. In Q3 2024, selling and marketing expenses also increased due to the timing of certain marketing expenses compared to the same quarter last year and administrative costs were negatively impacted by $3.2 million of professional fees related to our initial public offering (the "IPO").
Depreciation and amortization
Depreciation and amortization for Q3 2024 increased by $2.1 million or 11.9% compared to Q3 2023. Most of this increase is attributable to depreciation of property, plant and equipment and right-of-use assets, which increased by $2.0 million or 12.1%, driven by more store leases capitalized under right-of-use assets in Q3 2024 compared to Q3 2023.
Net financing costs
Net financing costs for Q3 2024 decreased by $0.1 million or 2.4% compared to Q3 2023. This decrease is due to a decrease in finance expenses of $0.1 million. The lower interest expense resulted mainly from lower interest rates and reduced average debt balances and was partially offset by increases in interest on lease liabilities.
Net earnings and adjusted net earnings
Net earnings for Q3 2024 increased by $5.5 million or 15.9% compared to Q3 2023. This growth is attributed to higher revenue, a 20 basis points (bps) improvement in gross margin, along with lower depreciation expense and net financing costs as a percentage of revenue. It was partially offset by higher SG&A expenses as a percentage of revenue, primarily due to $3.2 million in professional fees related to the IPO, as well as an increase in the effective income tax rate. Adjusted net earnings(1) for Q3 2024 increased by $7.9 million or 22.2% compared to Q3 2023.
Operating income and adjusted EBITDA
Operating income for Q3 2024 increased by $9.8 million or 18.3% to reach $63.1 million in Q3 2024 compared to $53.3 million in Q3 2023. Similarly, adjusted EBITDA for Q3 2024 increased by $15.2 million or 21.0% to reach $87.2 million compared to $72.0 million in Q3 2023. The adjusted EBITDA margin improved to 33.7% in Q3 2024, compared to 32.7% in the same period last year. This growth is attributed to a combination of higher gross margin and operating leverage.
Working capital
As of November 2, 2024, we have maintained a strong inventory turnover ratio of 6.09x, compared to 5.49x as of October 28, 2023, with current assets of $209.2 million (including $12.6 million in cash) and current liabilities of $144.4 million. Inventory continues to be minimized through agile product development and strategic sourcing, driven by our high open-to-buy ratio.
Free cash flow
Despite a $4.4 million increase in CAPEX(1), primarily to fund the opening of new stores (rising from $13.4 million in Q3 2023 to $17.8 million in Q3 2024), the Company has continued to deliver strong free cash flow(1), achieving $42.2 million in Q3 2024, up from $39.0 million in Q3 2023. On a year-to-date basis, free cash flow has reached $108.4 million compared to $50.5 million for the corresponding period last year.
Return metrics
Return on assets ("ROA")(1) of 23.8% for the 53-week period ended November 2, 2024 represents a notable increase from the ROA of 15.4% for the 52-week period ended October 28, 2023. This improvement indicates a significant boost in the Company's ability to leverage its assets more effectively than in previous periods.
For the 53-week period ending November 2, 2024, our ROCE reached 43.3%, compared to 30.7% for the corresponding period last year, highlighting the effectiveness of our recent strategies and investments.
_______________ |
Note: |
(1) Refer to "Non-IFRS Measures including Non-IFRS Financial Measures, Non-IFRS Ratios, Supplementary Financial Measures and Retail Industry Metrics" section of this press release for further details concerning these measures including definitions and reconciliations of each non-IFRS financial measure to the relevant reported IFRS financial measure. Non-IFRS financial measures and non-IFRS ratios do not have a standardized meaning under IFRS, which is used to prepare the Company's financial statements and might not be comparable to similar financial measures presented by other entities. |
Selected Financial Information |
13-week |
39-week |
||
In thousands of Canadian dollars, except per share data |
Nov 2, |
Oct 28, |
Nov 2, |
Oct 28, |
$ |
$ |
$ |
$ |
|
Revenue |
258,772 |
220,148 |
686,760 |
560,542 |
Cost of sales |
95,845 |
81,958 |
245,477 |
214,907 |
Gross profit |
162,927 |
138,190 |
441,283 |
345,635 |
Operating expenses |
||||
Selling, general and administrative expenses |
80,030 |
66,622 |
226,134 |
197,973 |
Depreciation and amortization |
20,027 |
17,903 |
54,509 |
50,940 |
Foreign exchange (gain) loss |
(182) |
383 |
(844) |
34 |
Total operating expenses |
99,875 |
84,908 |
279,799 |
248,947 |
Operating income |
63,052 |
53,282 |
161,484 |
96,688 |
Net financing costs |
5,982 |
6,126 |
17,716 |
19,814 |
Earnings before income taxes |
57,070 |
47,156 |
143,768 |
76,874 |
Income taxes |
16,630 |
12,254 |
39,034 |
19,653 |
Net earnings |
40,440 |
34,902 |
104,734 |
57,221 |
Net earnings per share |
||||
Basic |
$0.38 |
$0.32 |
$0.97 |
$0.53 |
Diluted |
$0.38 |
$0.32 |
$0.97 |
$0.53 |
Additional financial measures |
||||
Retail revenue |
214,682 |
184,286 |
576,572 |
467,660 |
Comparable store sales growth(1) |
10.1 % |
9.8 % |
13.4 % |
7.5 % |
Retail sales per square foot(1) |
$713 |
$581 |
$713 |
$581 |
Adjusted EBITDA(1) |
87,198 |
72,044 |
223,802 |
149,450 |
Adjusted net earnings(1) |
43,706 |
35,761 |
111,200 |
59,043 |
Adjusted net earnings per share(1) (3) |
||||
Basic |
$0.41 |
$0.33 |
$1.03 |
$0.55 |
Diluted |
$0.41 |
$0.33 |
$1.03 |
$0.55 |
Gross margin(1) |
63.0 % |
62.8 % |
64.3 % |
61.7 % |
SG&A as a percentage of sales(1) |
30.9 % |
30.3 % |
32.9 % |
35.3 % |
Adjusted EBITDA margin(1) |
33.7 % |
32.7 % |
32.6 % |
26.7 % |
Ratios and other metrics: |
||||
ROA(1) |
23.8 % |
15.4 % |
23.8 % |
15.4 % |
ROCE(1) |
43.3 % |
30.7 % |
43.3 % |
30.7 % |
Net leverage ratio(1) |
1.41 |
2.26 |
1.41 |
2.26 |
Free cash flow(1) |
42,193 |
39,031 |
108,398 |
50,488 |
Inventory turnover(1) |
6.09 |
5.49 |
6.09 |
5.49 |
CAPEX(1) |
17,826 |
13,433 |
50,681 |
24,501 |
Number of stores(2) |
299 |
289 |
299 |
289 |
As at |
||
In thousands of Canadian dollars |
Nov 2, |
Feb 3, |
$ |
$ |
|
Cash |
12,558 |
8,135 |
Inventories |
61,156 |
38,627 |
Total current assets |
209,205 |
83,458 |
Property and equipment |
100,350 |
65,419 |
Right-of-use assets |
297,598 |
246,240 |
Total assets |
624,784 |
516,476 |
Long-term portion of long-term debt |
73,224 |
145,100 |
Long-term portion of lease liabilities |
302,012 |
240,301 |
Total non-current liabilities |
375,236 |
388,901 |
Total liabilities |
519,655 |
511,548 |
Total shareholders' equity |
105,129 |
4,928 |
Total debt(1) |
424,205 |
433,275 |
Net debt(1) |
411,647 |
425,140 |
_____________________ |
|
Notes: |
|
(1) |
Refer to "Non-IFRS Measures including Non-IFRS Financial Measures, Non-IFRS Ratios, Supplementary Financial Measures and Retail Industry Metrics" section of this press release for further details concerning these measures including definitions and reconciliations of each non-IFRS financial measure to the relevant reported IFRS financial measure. Non-IFRS financial measures and non-IFRS ratios do not have a standardized meaning under IFRS, which is used to prepare the Company's financial statements and might not be comparable to similar financial measures presented by other entities. |
(2) |
Number of stores is as at end of period. |
(3) |
Net earnings per share and adjusted net earnings per share are calculated, after giving the effect, on a retrospective basis, to the share consolidation that occurred in connection with the pre-closing reorganization subsequent to November 2, 2024. |
Third quarter results conference call
Groupe Dynamite will hold a conference call to discuss its fiscal 2024 third quarter results today, December 17, 2024 at 10:30 a.m. (ET) followed by a question-and-answer period for financial analysts. Other interested parties may participate in the call on a listen-only basis via live audio webcast accessible through Groupe Dynamite's website at https://groupedynamite.com/.
About Groupe Dynamite Inc.
Groupe Dynamite Inc. (TSX: GRGD) is a growth-oriented company striving for excellence in the fashion industry. Operating retail stores and digital experiences under two complementary and spirited banners—GARAGE and DYNAMITE—we offer a wide range of women's fashion apparel, catering to the needs of Generation Z and Millennials. With leading key operating metrics and a commitment to innovation and disciplined execution, we are proud to embark on our ambitious growth plans. Guided by our mission, "Empowering YOU to be YOU, one outfit at a time," we are a values-led, inclusive organization committed to inspiring confidence and self-expression. Proudly rooted in the chic and vibrant city of Montréal, our culture, values and distinct brands position us to shape the future of fashion while attracting and inspiring the next generation of leaders and creators. Our ownership-mentality and entrepreneurial mindset is reflected in our Shared Success Program, through which all our 6,000 employees will have ownership exposure. This alignment of interests and values fosters collaboration, fuels innovation, and creates meaningful long-term value for our team and stakeholders alike.
Non-IFRS Measures including Non-IFRS Financial Measures, Non-IFRS Ratios, Supplementary Financial Measures and Retail Industry Metrics
This press release makes reference to certain non-IFRS measures, including non-IFRS financial measures, non-IFRS ratios, supplementary financial measures and certain retail industry metrics. These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. In this press release, we use non-IFRS financial measures including "adjusted EBITDA", "adjusted EBITDA (after rent equivalent expense)", "free cash flow", "adjusted net earnings" and "adjusted net earnings per share" and non-IFRS ratios including "EBITDA margin", "adjusted EBITDA margin", "adjusted EBITDA (after rent equivalent expense) margin", "return on assets", "return on capital employed" and "net leverage ratio". We also use supplementary financial measures including "inventory turnover", "retail sales per square foot", "comparable store sales", "gross margin", "operating margin", "SG&A as a percentage of sales" and "CAPEX" and other operating metrics commonly used in the retail industry.
Additional details for these non-IFRS and other financial measures can be found in our Management's Discussion & Analysis for Q3 2024 under the section "Non-IFRS Measures including Non-IFRS Financial Measures, Non-IFRS Ratios, Supplementary Financial Measures and Retail Industry Metrics", which is posted on our website at https://groupedynamite.com/, and filed on SEDAR+ at www.sedarplus.ca. Reconciliations for each non-IFRS financial measure to the most directly comparable IFRS measures are provided below.
These non-IFRS measures are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. We also believe that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Our 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.
Non-IFRS Financial Measures and Non-IFRS Ratios
Earnings before interests, taxes, depreciation, amortization ("EBITDA"), adjusted EBITDA and adjusted EBITDA (after rent equivalent expense)
EBITDA is calculated as operating income plus depreciation and amortization. Adjusted EBITDA accounts for other one-time or non-cash items. We consider EBITDA to be a valuable non-IFRS measure in assessing the Company's operating performance. Adjusted EBITDA helps users of the financial statements identify underlying trends by providing a measure of operating performance which excludes non-representative income or expenses, non-cash items, or variations in other items not related to day-to-day operations such as stock-based compensation expense and other professional fees in connection with the IPO. We believe that the presentation of EBITDA contributes to the comparability of our financial results as it is a measure commonly used by issuers operating in our industry.
Adjusted EBITDA (after rent equivalent expense) is calculated as adjusted EBITDA less a rent equivalent expense equal to the sum of depreciation of right-of-use assets and interest expense on lease liabilities. It is intended to provide users of our financial information with a view of the Company's adjusted EBITDA after the impact of depreciation on our right-of-use asset and interest expense on lease liabilities, principally for the purposes of assisting with comparability of the performance between the Company and that of issuers operating in the same industry with a significant retail footprint.
EBITDA margin, adjusted EBITDA margin and adjusted EBITDA (after rent equivalent expense) margin
The EBITDA margin, adjusted EBITDA margin and adjusted EBITDA (after rent equivalent expense) margin represent EBITDA, adjusted EBITDA and adjusted EBITDA (after rent equivalent expense) as a percentage of revenue.
13-week |
39-week |
||||||
In thousands of Canadian dollars |
Nov 2, |
Oct 28, |
Nov 2, |
Oct 28, |
|||
$ |
$ |
$ |
$ |
||||
Operating income |
63,052 |
53,282 |
161,484 |
96,688 |
|||
Depreciation and amortization |
20,027 |
17,903 |
54,509 |
50,940 |
|||
EBITDA |
83,079 |
71,185 |
215,993 |
147,628 |
|||
EBITDA margin |
32.1 % |
32.3 % |
31.5 % |
26.3 % |
|||
13-week |
39-week |
||||||
In thousands of Canadian dollars |
Nov 2, |
Oct 28, |
Nov 2, |
Oct 28, |
|||
EBITDA |
$83,079 |
$71,185 |
$215,993 |
$147,628 |
|||
Adjustments to EBITDA |
|||||||
Stock-based compensation expense |
900 |
859 |
2,740 |
1,822 |
|||
Professional fees related to the IPO |
3,219 |
- |
5,069 |
- |
|||
Total adjustments |
4,119 |
859 |
7,809 |
1,822 |
|||
Adjusted EBITDA |
87,198 |
72,044 |
223,802 |
149,450 |
|||
Adjusted EBITDA margin |
33.7 % |
32.7 % |
32.6 % |
26.7 % |
|||
13-week |
39-week |
||||||
In thousands of Canadian dollars |
Nov 2, |
Oct 28, |
Nov 2, |
Oct 28, |
|||
Adjusted EBITDA |
87,198 |
72,044 |
223,802 |
149,450 |
|||
Depreciation of right-of-use assets |
(13,502) |
(11,696) |
(39,416) |
(33,794) |
|||
Interest expense on lease liabilities |
(6,052) |
(4,999) |
(17,323) |
(14,110) |
|||
Adjusted EBITDA (After Rent Equivalent Expense) |
67,644 |
55,349 |
167,063 |
101,546 |
|||
Adjusted EBITDA (After Rent Equivalent Expense) margin |
26.1 % |
25.1 % |
24.3 % |
18.1 % |
|||
Adjusted net earnings
Adjusted net earnings is calculated as net earnings plus or less non-recurring items and their ensuing tax impact, as applicable. The adjustments are made to exclude stock-based compensation expense and other professional fees in connection with the IPO. We consider adjusted net earnings to be a valuable non-IFRS measure as it contributes to the comparability of our financial results with that of issuers operating in our industry.
In addition to adjusted net earnings, we may present certain metrics and ratios with respect to adjusted net earnings including but not limited to adjusted net earnings per share. Adjusted net earnings per share are calculated, after giving the effect, on a retrospective basis, to the share consolidation that occurred in connection with the pre-closing reorganization subsequent to November 2, 2024.
13-week |
39-week |
|||||
In thousands of Canadian dollars, except per share data |
Nov 2, |
Oct 28, |
Nov 2, |
Oct 28, |
||
$ |
$ |
$ |
$ |
|||
Net earnings |
40,440 |
34,902 |
104,734 |
57,221 |
||
Adjustments to net earnings |
||||||
Stock-based compensation expense |
900 |
859 |
2,740 |
1,822 |
||
Professional fees related to the IPO |
3,219 |
- |
5,069 |
- |
||
Income tax (recovery) expense on taxable items above |
(853) |
- |
(1,343) |
- |
||
Total adjustments |
3,266 |
859 |
6,466 |
1,822 |
||
Adjusted net earnings |
43,706 |
35,761 |
111,200 |
59,043 |
||
Adjusted net earnings per share |
||||||
Basic |
$0.41 |
$0.33 |
$1.03 |
$0.55 |
||
Diluted |
$0.41 |
$0.33 |
$1.03 |
$0.55 |
||
Return on assets or ROA is the ratio of adjusted net earnings over average total assets and is a non-IFRS ratio. Average total assets is determined by taking the sum of the current year's total assets and the total assets from twelve months ago, and then dividing that sum by two. It is considered a useful non-IFRS ratio because it provides insight as to the Company's productive use of its assets and contributes to the comparability of our financial results with that of issuers operating in our industry.
53-week and 52-week periods ended |
|||
In thousands of Canadian dollars |
November 2, 2024 |
October 28, 2023 |
|
Adjusted net earnings |
140,777 |
76,772 |
|
Average total assets |
591,476 |
497,347 |
|
Return on assets |
23.8 % |
15.4 % |
|
Return on capital employed or ROCE is the ratio of (i) the result of adjusted EBITDA reduced by depreciation and amortization over (ii) average capital employed and is a non-IFRS ratio. Average capital employed is determined by taking the sum of the current year's total capital employed and the total capital employed from twelve months ago, and then dividing that sum by two. We calculate the capital employed by subtracting total current liabilities, excluding the short-term portion of long-term debt and lease liabilities, from total assets. It is considered a useful non-IFRS ratio because it provides insight as to the degree to which the Company's capital investments contribute to its profitability and contributes to the comparability of our financial results with that of issuers operating in our industry.
53-week and 52-week periods ended |
|||
In thousands of Canadian dollars |
November 2, 2024 |
October 28, 2023 |
|
$ |
$ |
||
Adjusted EBITDA |
291,717 |
200,805 |
|
Depreciation and amortization |
(72,939) |
(71,782) |
|
Adjusted EBITDA reduced by depreciation and amortization |
218,778 |
129,023 |
|
Capital employed |
|||
Average total Assets |
591,475 |
497,347 |
|
- Average total current liabilities |
(138,120) |
(125,317) |
|
+ Average short-term portion of long-term debt |
19,797 |
15,285 |
|
+ Average short-term portion of lease liabilities |
32,068 |
32,460 |
|
Average total capital employed |
505,220 |
419,775 |
|
Return on capital employed |
43.3 % |
30.7 % |
|
Free cash flow is calculated as cash flow generated from (used in) operating activities less cash used on the additions to property, equipment and intangible assets. We consider free cash flow to be a valuable non-IFRS financial measure as it provides users of the financial statements an indicator of our ability to generate cash to support future growth, debt repayment and potential distributions to shareholders.
13-week |
39-week |
|||||
In thousands of Canadian dollars |
Nov 2, 2024 |
Oct 28, |
Nov 2, 2024 |
Oct 28, |
||
$ |
$ |
$ |
$ |
|||
Cash from operating activities |
60,019 |
52,464 |
159,079 |
74,989 |
||
Additions to property and equipment |
(15,424) |
(11,588) |
(44,079) |
(22,280) |
||
Additions to intangible assets |
(2,402) |
(1,845) |
(6,602) |
(2,221) |
||
Free cash flow |
42,193 |
39,031 |
108,398 |
50,488 |
||
Net leverage ratio is the ratio of net debt, which is calculated as long-term debt (including current portion) plus lease liabilities (including current portion) less cash, over adjusted EBITDA. We consider net leverage ratio to be a valuable non-IFRS ratio as it is an indicator of the Company's ability to meet financial obligations and contributes to the comparability of our financial results with that of issuers operating in our industry.
53-week and 52-week periods ended |
|||
In thousands of Canadian dollars |
November 2, 2024 |
October 28, 2023 |
|
Net debt |
$ |
$ |
|
Long-term debt including current portion |
92,987 |
223,287 |
|
Lease liabilities including current portion |
331,218 |
275,056 |
|
- Cash |
(12,558) |
(44,790) |
|
Total net debt |
411,647 |
453,553 |
|
Adjusted EBITDA |
291,717 |
200,805 |
|
Net leverage ratio |
1.41 |
2.26 |
|
Forward-Looking Statements
This press release contains forward-looking information within the meaning of applicable Canadian securities legislation. Forward-looking information may relate to our future financial outlook and anticipated events or results and may include in this press release information regarding the creation of value for our stakeholders, our brand awareness and our growth rates and growth strategies. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding possible future events or circumstances.
Forward-looking information is based on our opinions, estimates and assumptions in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we currently believe are appropriate and reasonable in the circumstances. Our assumptions underpinning forward-looking information include, but are not limited to, the following: expected short-, medium- and long-term discretionary spending and overall economic trends; successfully maintaining and enhancing our brands; marketing efforts, store enhancements and store expansions will be successful and drive our revenue; maintaining our supplier relationships and a steady, cost-effective supply of inventories; successfully managing expenses and driving gross margin improvements; growing our e-commerce business and making headway in our international expansion efforts; successfully retaining key personnel including our chief executive officer; the absence of material changes to taxes, duties, tariffs and interest rates; the absence of material disruptions in the international trade; the economy generally; and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated, intended or implied.
Despite a careful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Forward-looking information is also subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Risks and uncertainties are discussed in the Company's materials filed with the Canadian securities regulatory authorities from time to time, including the Company's Supplemented PREP Prospectus dated November 20, 2024. If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information. The risks, uncertainties, opinions, estimates and assumptions referred to elsewhere in this press release should be considered carefully by readers. Accordingly, readers should not place undue reliance on forward-looking information. To the extent any forward-looking information in this press release constitutes future-oriented financial information or financial outlook, within the meaning of applicable securities laws, such information is being provided to demonstrate the potential of the Company and readers are cautioned that this information may not be appropriate for any other purpose. Future-oriented financial information and financial outlook, as with forward-looking information generally, are based on current assumptions and subject to risks, uncertainties and other factors. Furthermore, the forward-looking information contained in this press release represents our expectations as of the date of this press release (or as of the date it is otherwise stated to be made) and is subject to change after such date. We disclaim any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable Canadian securities legislation. All of the forward-looking information contained in this press release is expressly qualified by the foregoing cautionary statements.
SOURCE GROUPE DYNAMITE INC
Contacts: Questions from investors - Investor Relations: Alex Limosani, Manager, Investor Relations and Corporate Finance - [email protected]; Questions from media - Media Relations: Jacee Scoular, Vice-President, Marketing / Anne Dongois - [email protected]
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