Reitmans (Canada) Limited announces its results for the 13 and 26 weeks ended July 29, 2023 Français
MONTREAL, Sept. 14, 2023 /CNW/ - Reitmans (Canada) Limited ("RCL" or the "Company") (TSXV: RET) (TSXV: RET-A), Canada's leading specialty apparel retailer, announces its results for the second quarter of fiscal 2024. Unless otherwise indicated, all comparisons of results for the 13 weeks ended July 29, 2023 ("second quarter of 2024") are against results for the 13 weeks ended July 30, 2022 ("second quarter of 2023") and all comparisons of results for the 26 weeks ended July 29, 2023 ("year to date fiscal 2024") are against results for the 26 weeks ended July 30, 2022 ("year to date fiscal 2023"). All amounts are in Canadian dollars.
The Company performed well in the second quarter of 2024, although below the results of the second quarter of 2023, which benefitted from exceptional market conditions due to the easing of pandemic-related restrictions. The current economic environment necessitated higher promotional activity as Canadian consumers cautiously managed their discretionary spending budgets. Results were also negatively impacted by unfavourable foreign exchange on U.S. dollar denominated merchandise purchases.
"We saw positive customer response in our second quarter with traffic and conversion remaining relatively stable in our stores despite the challenging economic environment. Additionally, RCL has a strong balance sheet and cashflows from operations in the quarter contributed to the strength in financial position." said Andrea Limbardi, President and Chief Executive Officer of RCL. "We are continuing to invest in our strategic initiatives to build on our strong market position and we remain disciplined to continue to deliver value and choice to our customers whether shopping in our stores or online. I look forward to working with our talented team in delivering on our long-term results and value to shareholders."
Second Quarter of 2024
- Net sales decreased to $213.2 million from $229.2 million
- Net earnings decreased to $13.4 million from $37.3 million
Year to date fiscal 2024
- Net sales decreased to $378.3 million from $383.1 million
- Net earnings decreased to $9.5 million from $35.6 million
Select Financial Information
(in millions of dollars, except for gross profit %) |
For the second quarter of |
Year to date fiscal |
|||||||
2024 |
2023 |
Change |
2024 |
2023 |
Change |
||||
Net Sales |
213.2 |
229.2 |
(7.0) % |
378.3 |
383.1 |
(1.3) % |
|||
Gross Profit |
118.3 |
138.7 |
(14.7) % |
206.4 |
222.7 |
(7.3) % |
|||
Gross Profit % |
55.5 % |
60.5 % |
-500 bps |
54.6 % |
58.1 % |
-350 bps |
|||
Selling, distribution and administrative expenses2 |
99.4 |
100.7 |
(1.3) % |
191.1 |
185.1 |
3.2 % |
|||
Net earnings |
13.4 |
37.3 |
(64.1) % |
9.5 |
35.6 |
(73.3) % |
|||
Adjusted EBITDA1 |
19.2 |
39.6 |
(51.5) % |
17.9 |
42.7 |
(58.1) % |
|||
Adjusted ROA1 |
18.0 |
37.8 |
(52.4) % |
14.4 |
36.8 |
(60.9) % |
|||
1 This is a Non-GAAP Financial Measure. See "Non-GAAP Financial Measures & Supplementary Financial Measures" for reconciliations of these measures. |
2 Includes $0.9 million of pension curtailment gain for the second quarter of 2024 and for the year to date fiscal 2024. Includes $0.2 million recovery of restructuring costs for the second quarter of 2023 and $0.4 million of restructuring costs for the year to date fiscal 2023. |
13 weeks ended July 29, 2023
Net sales for the second quarter of 2024 decreased by $16.0 million, or 7.0%, to $213.2 million. Comparable sales1, which include e-commerce net sales, decreased 7.0% during the second quarter of 2024. The decrease in comparable sales was primarily due to lower average transaction values and higher promotional activity. In addition, we believe that comparatively higher interest rates and inflation overall compared to the corresponding period last year negatively impacted consumer spending during the second quarter of 2024.
Gross profit for the second quarter of 2024 decreased $20.4 million to $118.3 million as compared with $138.7 million for the second quarter of 2023. Gross profit as a percentage of net sales for the second quarter of 2024 decreased to 55.5% from 60.5% for the second quarter of 2023. The decrease in gross profit and as a percentage of net sales is primarily attributable to higher markdown and promotional activity combined with an unfavorable foreign exchange impact of approximately $4.8 million on U.S. dollar denominated purchases included in cost of goods sold, partially offset by lower supply chain costs in the second quarter of 2024 as global shipping industry disruptions were prevalent in the second quarter of 2023.
Net earnings for the second quarter of 2024 were $13.4 million ($0.27 basic and diluted earnings per share) as compared with net earnings of $37.3 million ($0.76 basic and diluted earnings per share) for the second quarter of 2023. The decrease in net earnings of $23.9 million is primarily attributable the decrease in gross profit.
Adjusted results from operating activities ("Adjusted ROA") for the second quarter of 2024 was $18.0 million as compared with $37.8 million for the second quarter of 2023. The decrease of $19.8 million is primarily attributable to a decrease in gross profit.
Adjusted EBITDA for the second quarter of 2024 was $19.2 million as compared to $39.6 million for the second quarter of 2023. The decrease of $20.4 million is primarily attributable to a decrease in gross profit.
26 weeks ended July 29, 2023
Net sales for the year to date fiscal 2024 decreased by $4.8 million, or 1.3%, to $378.3 million. Comparable sales, which include e-commerce net sales, decreased 1.6% during the year to date fiscal 2024. The decrease in comparable sales was primarily due to lower average transaction values and higher promotional activity. In addition, we believe that comparatively higher interest rates and inflation overall compared to the corresponding period last year negatively impacted consumer spending during the year to date fiscal 2024.
Gross profit for the year to date fiscal 2024 decreased $16.3 million to $206.4 million as compared with $222.7 million for the year to date fiscal 2023. Gross profit as a percentage of sales for the year to date fiscal 2024 decreased to 54.6% from 58.1% for the year to date fiscal 2023. The decrease both in gross profit and as a percentage of sales is primarily attributable to higher markdowns and promotional activity in the year to date fiscal 2024 combined with an unfavourable foreign exchange impact of approximately $8.2 million on U.S. dollar denominated purchases included in cost of goods sold, partially offset by lower supply chain costs in the year to date fiscal 2024 as global shipping industry disruptions were prevalent in the year to date fiscal 2023.
Net earnings for the year to date fiscal 2024 was $9.5 million ($0.20 basic and $0.19 diluted earnings per share) as compared with $35.6 million ($0.73 basic and diluted earnings per share) for the year to date fiscal 2023. The decrease in net earnings of $26.1 million is primarily attributable to the decrease in gross profit, the increase in operating costs and the increase in income tax expense.
Adjusted ROA for the year to date fiscal 2024 was $14.4 million as compared to $36.8 million for the year to date fiscal 2023. The decrease of $22.4 million is primarily attributable to the decrease in gross profit and the increase in operating costs, as noted above.
Adjusted EBITDA for the year to date fiscal 2024 was $17.9 million as compared to $42.7 million for the year to date fiscal 2023. The decrease of $24.8 million is primarily attributable to the decrease in gross profit and the increase in operating costs, as noted above.
About Reitmans (Canada) Limited
The Company is a leading women's specialty apparel retailer with retail outlets throughout Canada. As at July 29, 2023, the Company operated 405 stores consisting of 235 Reitmans, 90 Penningtons and 80 RW&CO.
1NON-GAAP Financial Measures & Supplementary Financial Measures
This press announcement makes reference to certain non-GAAP measures. These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS. They are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement IFRS measures by providing further understanding of the Company's results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for the Company's analysis of its financial information reported under IFRS.
NON-GAAP Financial Measures
This press announcement discusses the following non-GAAP financial measures: adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"), and adjusted results from operating activities ("Adjusted ROA"). This press announcement also indicates Adjusted EBITDA as a percentage of net sales and is considered a non-GAAP financial ratio. Net sales represent the sale of merchandise less discounts and returns. The intent of presenting Adjusted EBITDA and Adjusted ROA is to provide additional useful information to investors and analysts. Adjusted EBITDA is currently defined as net earnings before income tax expense/recovery, interest income, interest expense, loss on foreign currency translation differences reclassified to net earnings, pension curtailment gain, depreciation, amortization, net impairment of non-financial assets, adjusted for the impact of certain items, including a deduction of interest expense and depreciation relating to leases accounted for under IFRS 16, Leases, Federal subsidies and restructuring costs and recoveries. Management believes that Adjusted EBITDA is an important indicator of the Company's ability to generate liquidity through operating cash flow to fund working capital needs and fund capital expenditures and uses this metric for this purpose. Management believes that Adjusted EBITDA as a percentage of net sales indicates how much liquidity is generated for each dollar of net sales. The exclusion of interest income and expenses, other than interest expense related to lease liabilities as explained hereafter, eliminates the impact on earnings derived from non-operational activities. The exclusion of depreciation, amortization and net impairment charges, other than depreciation related to right-of-use assets as explained hereafter, eliminates the non-cash impact, and the exclusion of restructuring items, Federal subsidies, loss on foreign currency translation differences reclassified to net earnings and pension curtailment gain presents the results of the on-going business. Under IFRS 16, Leases, the characteristics of some leases result in lease payments being recognized in net earnings in the period in which the performance or use occurs while other leases are recorded as right-of-use assets with a corresponding lease liability recognized, which results in depreciation of those assets and interest expense from those liabilities. Management is presenting its Adjusted EBITDA to reflect the payments of its store and equipment lease obligations on a consistent basis. As such, the initial add-back of depreciation of right-of-use assets and interest on lease obligations are removed from the calculation of Adjusted EDITDA, as this better reflects the operational cash flow impact of its leases.
Adjusted ROA is defined as results from operating activities excluding Federal subsidies, restructuring recoveries/costs and pension curtailment gain. Management believes that Adjusted ROA provides a more relevant indicator in assessing current operational performance. The exclusion of restructuring items, pension curtailment gain and Federal subsidies presents the on-going operational performance of the business.
Reconciliation of NON-IFRS Measures
The tables below provide a reconciliation of net earnings to Adjusted EBITDA and results from operating activities to Adjusted ROA:
For the second quarter of |
Year to date fiscal |
|||
2024 |
2023 |
2024 |
2023 |
|
Net earnings |
$ 13.4 |
$ 37.3 |
$ 9.5 |
$ 35.6 |
Depreciation, amortization and net impairment losses on property and equipment, and intangible assets |
3.4 |
3.1 |
7.0 |
8.2 |
Depreciation on right-of-use assets |
8.1 |
7.3 |
15.9 |
13.1 |
Interest income |
(1.3) |
(0.2) |
(2.2) |
(0.2) |
Interest expense on lease liabilities |
1.7 |
1.3 |
3.3 |
2.3 |
Interest expense on revolving credit facility |
- |
0.1 |
- |
0.4 |
Income tax expense (recovery) |
4.6 |
(0.5) |
3.5 |
(0.5) |
Loss on foreign currency translation differences reclassified to net earnings |
- |
- |
1.0 |
- |
Pension curtailment gain |
(0.9) |
- |
(0.9) |
- |
Rent impact from IFRS 16, Leases1 |
(9.8) |
(8.6) |
(19.2) |
(15.4) |
Federal subsidies |
- |
- |
- |
(1.2) |
Restructuring (recoveries) costs, net |
- |
(0.2) |
- |
0.4 |
Adjusted EBITDA |
$ 19.2 |
$ 39.6 |
$ 17.9 |
$ 42.7 |
Adjusted EBITDA as % of Sales |
9.0 % |
17.3 % |
4.7 % |
11.1 % |
1 Rent Impact from IFRS 16, Leases is comprised as follows; |
For the second quarter of |
Year to date fiscal |
||||
2024 |
2023 |
2024 |
2023 |
||
Depreciation on right-of-use assets |
$ 8.1 |
$ 7.3 |
$ 15.9 |
$ 13.1 |
|
Interest expense on lease liabilities |
1.7 |
1.3 |
3.3 |
2.3 |
|
Rent impact from IFRS 16, Leases |
$ 9.8 |
$ 8.6 |
$ 19.2 |
$ 15.4 |
|
For the second quarter of |
Year to date fiscal |
||||
2024 |
2023 |
2024 |
2023 |
||
Results from operating activities |
$ 18.9 |
$ 38.0 |
$ 15.3 |
$ 37.6 |
|
Pension curtailment gain |
(0.9) |
- |
(0.9) |
- |
|
Federal subsidies |
- |
- |
- |
(1.2) |
|
Restructuring (recoveries) costs, net |
- |
(0.2) |
- |
0.4 |
|
Adjusted ROA |
$ 18.0 |
$ 37.8 |
$ 14.4 |
$ 36.8 |
|
Supplementary Financial Measures
The Company uses a key performance indicator ("KPI"), comparable sales, to assess store performance and sales growth. The Company engages in an omnichannel approach in connecting with its customers by appealing to their shopping habits through either online or store channels. This approach allows customers to shop online for home delivery or to pick up in store, purchase in any of our store locations or ship to home from another store when the products are unavailable in a particular store. Due to customer cross-channel behavior, the Company reports a single comparable sales metric, inclusive of store and e-commerce channels. Comparable sales are defined as net sales generated by stores that have been continuously open during both of the periods being compared and include e-commerce net sales. The comparable sales metric compares the same calendar days for each period. Although this KPI is expressed as a ratio, it is a supplementary financial measure that does not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures used by other companies. Management uses comparable sales in evaluating the performance of stores and online net sales and considers it useful in helping to determine what portion of new net sales has come from sales growth and what portion can be attributed to the opening of new stores. Comparable sales is a measure widely used amongst retailers and is considered useful information for both investors and analysts. Comparable sales should not be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS.
Forward-Looking Statements
All of the statements contained herein, other than statements of fact that are independently verifiable at the date hereof, are forward-looking statements. Such statements, based as they are on the current expectations of management, inherently involve numerous risks and uncertainties, known and unknown, many of which are beyond the Company's control, including statements on the Company's financial position and operations, and are based on several assumptions which give rise to the possibility that actual results could differ materially from the Company's expectations expressed in or implied by such forward-looking statements and that the objectives, plans, strategic priorities and business outlook may not be achieved. Consequently, the Company cannot guarantee that any forward-looking statement will materialize, or if any of them do, what benefits the Company will derive from them. Forward-looking statements are provided in this press announcement for the purpose of giving information about management's current expectations and plans as of the date of this press announcement, and allowing investors and others to get a better understanding of the Company's operating environment. However, readers are cautioned that it may not be appropriate to use such forward-looking statements for any other purpose. Forward-looking statements are based upon the Company's current estimates, beliefs and assumptions, which are based on management's perception of historical trends, current conditions and currently expected future developments, as well as other factors it believes, are appropriate in the circumstances.
This press announcement contains forward-looking statements about the Company's objectives, plans, goals, expectations, aspirations, strategies, financial condition, results of operations, cash flows, performance, prospects, opportunities and legal and regulatory matters. Specific forward-looking statements in this press announcement include, but are not limited to, statements with respect to the Company's belief in its strategies and its brands and their capacity to generate long-term profitable growth, future liquidity, planned capital expenditures, amount of pension plan contributions, status and impact of systems implementation, the ability of the Company to successfully implement its strategic initiatives and cost reduction and productivity improvement initiatives as well as the impact of such initiatives. These specific forward-looking statements are contained throughout the Company's Management Discussion & Analysis ("MD&A") including those listed in the "Operating Risk Management" and "Financial Risk Management" sections of the MD&A. Forward-looking statements are typically identified by words such as "expect", "anticipate", "believe", "foresee", "could", "estimate", "goal", "intend", "plan", "seek", "strive", "will", "may" and "should" and similar expressions, as they relate to the Company and its management.
Numerous risks and uncertainties could cause the Company's actual results to differ materially from those expressed, implied or projected in the forward-looking statements. Please refer to the "Forward-Looking Statements" section of the Company's MD&A for the second quarter of 2024.
This is not an exhaustive list of the factors that may affect the Company's forward-looking statements. Other risks and uncertainties not presently known to the Company or that the Company presently believes are not material could also cause actual results or events to differ materially from those expressed in its forward-looking statements. Additional risks and uncertainties are discussed in the Company's materials filed with the Canadian securities regulatory authorities from time to time. The reader should not place undue reliance on any forward-looking statements included herein. These statements speak only as of the date made and the Company is under no obligation and disavows any intention to update or revise such statements as a result of any event, circumstances or otherwise, except to the extent required under applicable securities law.
The Company's complete financial statements including notes and Management's Discussion and Analysis for the second quarter of 2024 are available online at www.sedarplus.ca.
Montreal, September 14, 2023
Andrea Limbardi
President and Chief Executive Officer
Telephone: (514) 384-1140
Corporate Website: www.reitmanscanadalimited.com
REITMANS (CANADA) LIMITED CONDENSED CONSOLIDATED INTERIM STATEMENTS OF EARNINGS (Unaudited) (in thousands of Canadian dollars except per share amounts) |
||||||
For the 13 weeks ended |
For the 26 weeks ended |
|||||
July 29, 2023 |
July 30, 2022 |
July 29, 2023 |
July 30, 2022 |
|||
Net sales |
$ 213,245 |
$ 229,222 |
$ 378,263 |
$ 383,081 |
||
Cost of goods sold |
94,934 |
90,549 |
171,851 |
160,445 |
||
Gross profit |
118,311 |
138,673 |
206,412 |
222,636 |
||
Selling and distribution expenses |
87,300 |
88,207 |
167,569 |
161,464 |
||
Administrative expenses |
12,153 |
12,702 |
23,561 |
23,184 |
||
Restructuring |
- |
(213) |
- |
407 |
||
Results from operating activities |
18,858 |
37,977 |
15,282 |
37,581 |
||
Finance income |
1,245 |
147 |
2,166 |
227 |
||
Finance costs |
(2,165) |
(1,357) |
(4,424) |
(2,718) |
||
Earnings before income taxes |
17,938 |
36,767 |
13,024 |
35,090 |
||
Income tax (expense) recovery |
(4,553) |
552 |
(3,479) |
512 |
||
Net earnings |
$ 13,385 |
$ 37,319 |
$ 9,545 |
$ 35,602 |
||
Earnings per share: |
||||||
Basic |
$ 0.27 |
$ 0.76 |
$ 0.20 |
$ 0.73 |
||
Diluted |
0.27 |
0.76 |
0.19 |
0.73 |
||
REITMANS (CANADA) LIMITED CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (in thousands of Canadian dollars) |
||||||||
For the 13 weeks ended |
For the 26 weeks ended |
|||||||
July 29, 2023 |
July 30, 2022 |
July 29, 2023 |
July 30, 2022 |
|||||
Net earnings |
$ 13,385 |
$ 37,319 |
$ 9,545 |
$ 35,602 |
||||
Other comprehensive income (loss) |
||||||||
Items that are or may be reclassified subsequently |
||||||||
Cash flow hedges (net of tax of $98 for the 13 |
273 |
- |
273 |
- |
||||
Loss on foreign currency translation differences |
- |
- |
1,044 |
- |
||||
Foreign currency translation differences |
- |
(11) |
- |
(18) |
||||
Items that will not be reclassified to net earnings: |
||||||||
Net actuarial (loss) gain on defined benefit plan |
(60) |
(1,040) |
898 |
(129) |
||||
Total other comprehensive income (loss) |
213 |
(1,051) |
2,215 |
(147) |
||||
Total comprehensive income |
$ 13,598 |
$ 36,268 |
$ 11,760 |
$ 35,455 |
||||
REITMANS (CANADA) LIMITED CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS (Unaudited) (in thousands of Canadian dollars) |
|||||
July 29, 2023 |
July 30, 2022 |
January 28, 2023 |
|||
ASSETS |
|||||
CURRENT ASSETS |
|||||
Cash |
$ 96,681 |
$ 38,173 |
$ 103,004 |
||
Restricted cash |
- |
2,765 |
2,808 |
||
Trade and other receivables |
3,562 |
4,947 |
3,241 |
||
Derivative financial asset |
371 |
- |
- |
||
Inventories |
148,814 |
153,750 |
142,302 |
||
Prepaid expenses and other assets |
17,287 |
31,215 |
14,502 |
||
Total Current Assets |
266,715 |
230,850 |
265,857 |
||
NON-CURRENT ASSETS |
|||||
Property and equipment |
62,031 |
61,735 |
63,833 |
||
Intangible assets |
1,891 |
3,469 |
2,638 |
||
Right-of-use assets |
90,881 |
71,533 |
79,894 |
||
Pension asset |
2,118 |
664 |
- |
||
Deferred income taxes |
28,646 |
186 |
32,308 |
||
Total Non-Current Assets |
185,567 |
137,587 |
178,673 |
||
TOTAL ASSETS |
$ 452,282 |
$ 368,437 |
$ 444,530 |
||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||
CURRENT LIABILITIES |
|||||
Trade and other payables |
$ 66,280 |
$ 57,098 |
$ 81,087 |
||
Deferred revenue |
12,705 |
11,961 |
14,100 |
||
Income taxes payable |
666 |
816 |
1,018 |
||
Current portion of lease liabilities |
27,022 |
27,299 |
26,741 |
||
Total Current Liabilities |
106,673 |
97,174 |
122,946 |
||
NON-CURRENT LIABILITIES |
|||||
Lease liabilities |
72,005 |
51,790 |
60,758 |
||
Total Non-Current Liabilities |
72,005 |
51,790 |
60,758 |
||
SHAREHOLDERS' EQUITY |
|||||
Share capital |
28,292 |
27,406 |
27,406 |
||
Contributed surplus |
11,003 |
10,485 |
10,871 |
||
Retained earnings |
234,036 |
182,453 |
223,593 |
||
Accumulated other comprehensive income (loss) |
273 |
(871) |
(1,044) |
||
Total Shareholders' Equity |
273,604 |
219,473 |
260,826 |
||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ 452,282 |
$ 368,437 |
$ 444,530 |
||
REITMANS (CANADA) LIMITED CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (in thousands of Canadian dollars) |
|||||||
Share Capital |
Contributed |
Retained |
Accumulated Other |
Total |
|||
Balance as at January 29, 2023 |
$ 27,406 |
$ 10,871 |
$ 223,593 |
$ (1,044) |
$ 260,826 |
||
Net earnings |
- |
- |
9,545 |
- |
9,545 |
||
Total other comprehensive income |
- |
- |
898 |
1,317 |
2,215 |
||
Total comprehensive income for the period |
- |
- |
10,443 |
1,317 |
11,760 |
||
Cash consideration on exercise of share options |
643 |
- |
- |
- |
643 |
||
Ascribed value credited to share capital from exercise of share options |
243 |
(243) |
- |
- |
- |
||
Share-based compensation costs |
- |
375 |
- |
- |
375 |
||
Total contributions by owners of the Company |
886 |
132 |
- |
- |
1,018 |
||
Balance as at July 29, 2023 |
$ 28,292 |
$ 11,003 |
$ 234,036 |
$ 273 |
$ 273,604 |
||
Balance as at January 30, 2022 |
$ 27,406 |
$ 10,295 |
$ 146,980 |
$ (853) |
$ 183,828 |
||
Net earnings |
- |
- |
35,602 |
- |
35,602 |
||
Total other comprehensive loss |
- |
- |
(129) |
(18) |
(147) |
||
Total comprehensive income (loss) for the period |
- |
- |
35,473 |
(18) |
35,455 |
||
Share-based compensation costs |
- |
190 |
- |
- |
190 |
||
Total contributions by owners of the Company |
- |
190 |
- |
- |
190 |
||
Balance as at July 30, 2022 |
$ 27,406 |
$ 10,485 |
$ 182,453 |
$ (871) |
$ 219,473 |
||
REITMANS (CANADA) LIMITED CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (Unaudited) (in thousands of Canadian dollars) |
||||||
For the 13 weeks ended |
For the 26 weeks ended |
|||||
July 29, 2023 |
July 30, 2022 |
July 29, 2023 |
July 30, 2022 |
|||
CASH FLOWS FROM OPERATING ACTIVITIES |
||||||
Net earnings |
$ 13,385 |
$ 37,319 |
$ 9,545 |
$ 35,602 |
||
Adjustments for: |
||||||
Depreciation, amortization and net impairment losses on property and |
3,405 |
3,130 |
6,980 |
8,210 |
||
Depreciation on right-of-use assets |
8,145 |
7,282 |
15,919 |
13,093 |
||
Share-based compensation costs |
66 |
190 |
375 |
190 |
||
Foreign exchange loss (gain) |
1,533 |
1,262 |
1,225 |
(585) |
||
Loss on foreign currency translation differences reclassified to |
- |
- |
1,044 |
- |
||
Interest on lease liabilities |
1,683 |
1,258 |
3,269 |
2,273 |
||
Interest on revolving credit |
- |
99 |
- |
445 |
||
Interest income |
(1,245) |
(121) |
(2,166) |
(155) |
||
Income tax expense (recovery) |
4,553 |
(552) |
3,479 |
(512) |
||
31,525 |
49,867 |
39,670 |
58,561 |
|||
Changes in: |
||||||
Trade and other receivables |
426 |
- |
(240) |
2,666 |
||
Inventories |
(9,761) |
(16,245) |
(6,512) |
(34,778) |
||
Prepaid expenses and other assets |
(1,121) |
5,463 |
(5,184) |
11,375 |
||
Trade and other payables |
15,444 |
3,843 |
(11,325) |
24,074 |
||
Pension asset |
(909) |
(449) |
(895) |
144 |
||
Deferred revenue |
482 |
(189) |
(1,395) |
(1,529) |
||
Cash from operating activities |
36,086 |
42,290 |
14,119 |
60,513 |
||
Interest paid |
- |
(165) |
- |
(481) |
||
Interest received |
1,114 |
97 |
2,085 |
148 |
||
Income taxes paid |
- |
- |
(592) |
(46) |
||
Net cash flows from operating activities |
37,200 |
42,222 |
15,612 |
60,134 |
||
CASH FLOWS USED IN INVESTING ACTIVITIES |
||||||
Additions to property and equipment and intangible assets |
(2,054) |
(774) |
(5,516) |
(3,250) |
||
Cash flows used in investing activities |
(2,054) |
(774) |
(5,516) |
(3,250) |
||
CASH FLOWS USED IN FINANCING ACTIVITIES |
||||||
Restricted cash |
2,838 |
(6) |
2,808 |
(8) |
||
Net repayment of revolving credit facility |
- |
(34,439) |
- |
(29,634) |
||
Payment of lease liabilities |
(9,765) |
(7,714) |
(18,638) |
(15,078) |
||
Proceeds from issuance of share capital |
643 |
- |
643 |
- |
||
Cash flows used in financing activities |
(6,284) |
(42,159) |
(15,187) |
(44,720) |
||
FOREIGN EXCHANGE (LOSS) GAIN ON CASH HELD IN FOREIGN CURRENCY |
(1,575) |
(1,326) |
(1,232) |
507 |
||
NET INCREASE (DECREASE) IN CASH |
27,287 |
(2,037) |
(6,323) |
12,671 |
||
CASH, BEGINNING OF THE PERIOD |
69,394 |
40,210 |
103,004 |
25,502 |
||
CASH, END OF THE PERIOD |
$ 96,681 |
$ 38,173 |
$ 96,681 |
$ 38,173 |
||
SOURCE Reitmans (Canada) Limited
Andrea Limbardi, President and Chief Executive Officer, Telephone: (514) 384-1140, Corporate Website: www.reitmanscanadalimited.com
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