Indigo Net Earnings Up 29% for Key Holiday Quarter
Revenue Increases 3.1%
Revenue for the quarter was
Commenting on the quarter's results, CEO
During the quarter, the Company transferred all the assets of its digital reading initiative into a newly formed company, Kobo Inc. (www.kobobooks.com). Kobo subsequently raised
Reisman, who is Chair of Kobo, noted that "Indigo and Kobo are very well positioned to play a major role in the emerging eBook revolution both in
During the quarter the Company opened one new superstore in Laval,
The Company also announced today that its Board of Directors has declared a quarterly cash dividend of
Forward-Looking Statements
Statements contained in this news release that are not historical facts are forward-looking statements which involve risk and uncertainties that could cause results to differ materially from those expressed in the forward-looking statements. Among the key factors that could cause such differences are: general economic, market or business conditions in
Non-GAAP Financial Measures
The Company prepares its consolidated financial statements in accordance with Canadian generally accepted accounting principles. In order to provide additional insight into the business, the Company has also provided non-GAAP data, including comparative store sales growth, in the press release above. This measure does not have a standardized meaning prescribed by GAAP, and is therefore specific to Indigo and may not be comparable to similar measures presented by other companies. Comparative store sales growth is a key indicator used by the Company to measure performance against internal targets and prior period results. This measure is commonly used by financial analysts and investors to compare Indigo to other retailers. Comparable store sales are defined as sales generated by stores that have been open for more than 12 months.
About Indigo Books & Music Inc.
Indigo is a publicly traded Canadian company listed on the
Chapters and Indigo are rated as the number one and number two most favoured retailers in
In 2004, Indigo founded the Indigo Love of Reading Foundation, a registered charity that provides new books and education materials to high-needs Canadian elementary schools, to address the literacy crisis in
Visit loveofreading.org for more information.
To learn more about Indigo, please visit the About Our Company section of www.chapters.indigo.ca.
Consolidated Balance Sheets
(Unaudited)
As at As at As at
December December March
(thousands of dollars) 26, 2009 27, 2008 28, 2009
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ASSETS
Current
Cash and cash equivalents 202,763 168,092 92,169
Accounts receivable 16,231 17,689 9,890
Inventories 246,312 228,017 221,767
Prepaid expenses 5,090 4,740 5,118
Future tax assets 4,589 6,590 6,181
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Total current assets 474,985 425,128 335,125
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Property, plant and equipment 78,669 67,938 72,137
Future tax assets 23,164 31,085 36,422
Intangible assets 20,317 13,774 16,299
Goodwill 26,632 27,523 27,523
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Total assets 623,767 565,448 487,506
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities 333,319 312,262 233,353
Deferred revenue 12,180 11,101 11,612
Income taxes payable 703 2,308 344
Current portion of long-term debt 2,388 2,740 2,734
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Total current liabilities 348,590 328,411 248,043
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Long-term accrued liabilities 7,096 6,174 6,301
Long-term debt 1,328 2,210 2,272
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Total liabilities 357,014 336,795 256,616
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Non-controlling interest 7,905 - -
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Shareholders' equity
Share capital 196,585 196,471 196,471
Contributed surplus 4,641 3,365 3,685
Retained earnings 57,622 28,817 30,734
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Total shareholders' equity 258,848 228,653 230,890
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Total liabilities and shareholders'
equity 623,767 565,448 487,506
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Consolidated Statements of Earnings and Comprehensive Earnings
(Unaudited)
13-week 13-week 39-week 39-week
period period period period
ended ended ended ended
(thousands of dollars, December December December December
except per share data) 26, 2009 27, 2008 26, 2009 27, 2008
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Revenues 340,195 330,014 740,736 725,877
Cost of sales, operations,
selling and administration 287,717 283,462 674,384 662,519
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52,478 46,552 66,352 63,358
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Amortization of property,
plant and equipment 5,079 5,341 14,909 16,900
Amortization of intangible
assets 2,184 1,413 6,149 4,012
Write-off of capital assets 455 - 455 -
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7,718 6,754 21,513 20,912
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Earnings before the undernoted
items 44,760 39,798 44,839 42,446
Interest on long-term debt and
financing charges 49 69 167 248
Interest income on cash and cash
equivalents (45) (391) (181) (1,184)
Kobo dilution gain (3,019) - (3,019) -
Deemed disposition of goodwill 891 - 891 -
Non-controlling interest
(recovery) (76) - (76) -
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Earnings before income taxes 46,960 40,120 47,057 43,382
Income tax expense
Current 2,169 2,329 2,169 2,329
Future 10,261 11,021 10,462 12,320
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Net earnings and comprehensive
earnings for the period 34,530 26,770 34,426 28,733
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Consolidated Statements of Cash Flows
(Unaudited)
13-week 13-week 39-week 39-week
period period period period
ended ended ended ended
December December December December
(thousands of dollars) 26, 2009 27, 2008 26, 2009 27, 2008
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CASH FLOWS FROM OPERATING
ACTIVITIES
Net earnings 34,530 26,770 34,426 28,733
Add items not affecting cash
Amortization of property,
plant and equipment 5,079 5,341 14,909 16,900
Stock-based compensation 299 219 810 641
Directors' compensation 96 86 289 263
Future tax assets 14,554 11,021 14,850 12,320
Loss on disposal of property,
plant and equipment 83 - 256 13
Amortization of intangible
assets 2,184 1,413 6,149 4,012
Write-off of capital assets 455 - 455 -
Non-controlling interest (76) - (76) -
Kobo dilution gain (3,019) - (3,019) -
Deemed disposal of goodwill 891 - 891 -
Net change in non-cash working
capital balances related to
operations
Accounts receivable (7,761) (9,455) (6,341) (8,693)
Inventories (12,122) (12,843) (24,545) (21,758)
Prepaid expenses 1,487 398 28 189
Income taxes payable 1,569 2,329 359 2,329
Deferred revenue (357) (452) 568 751
Accounts payable and accrued
liabilities 86,846 92,807 100,761 117,564
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Cash flows from operating
activities 124,738 117,634 140,770 153,264
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CASH FLOWS FROM INVESTING
ACTIVITIES
Purchase of property, plant
and equipment (3,963) (13,349) (20,768) (25,342)
Addition of intangible assets (4,518) (3,117) (10,577) (8,026)
Cash flows used in investing ------------------------------------------
activities (8,481) (16,466) (31,345) (33,368)
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CASH FLOWS FROM FINANCING
ACTIVITIES
Repayment of long-term debt (760) (727) (2,264) (2,999)
Proceeds from share issuances 110 10 239 287
Repurchase of common shares (446) (2,395) (446) (5,025)
Issuance of equity securities
by subsidiary to
non-controlling interest 11,000 - 11,000 -
Dividends paid (2,453) - (7,360) -
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Cash flows from (used in)
financing activities 7,451 (3,112) 1,169 (7,737)
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Net increase in cash and cash
equivalents during the
period 123,708 98,056 110,594 112,159
Cash and cash equivalents,
beginning of period 79,055 70,036 92,169 55,933
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Cash and cash equivalents,
end of period 202,763 168,092 202,763 168,092
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For further information: Janet Eger, Director, Public Relations, (416) 342-8561, [email protected]
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