Reitmans (Canada) Limited announces its results for the 13 and 39 weeks ended November 2, 2019 Français
MONTREAL, Dec. 4, 2019 /CNW Telbec/ - The Company's operating results for the 13 weeks ended November 2, 2019 ("third quarter of 2020") and the 39 weeks ended November 2, 2019 ("year to date fiscal 2020") have not met the Company's expectations. This is primarily due to the disappointing financial performance of the Company's plus-size banners. Strategic brand changes implemented at the beginning of the fiscal year failed to resonate with the banners' customer base. Corrective measures, including new leadership of the plus-size banners, were implemented late in the third quarter of 2020 to refocus and reposition the Addition Elle and Penningtons banners, and have yet to have an impact on the operating results.
Unless otherwise indicated, the Company's results for the third quarter of 2020 and the results for the year to date fiscal 2020 reflect the impact of the implementation of IFRS 16, as described below under "Adoption of IFRS 16 – Leases".
13 weeks ended November 2, 2019
Sales for the third quarter of 2020 were $222.3 million, as compared with $239.7 million for the 13 weeks ended November 3, 2018 ("third quarter of 2019"). The decrease of $17.4 million is primarily due to lower sales in the plus-size banners, and a net reduction of 37 stores. The Company continues to execute on its plan of adapting to the new retail environment by reducing its store presence in select markets while enhancing its e-commerce capabilities. Comparable sales1, which include e-commerce sales, decreased 2.8%. The decrease was primarily due to store traffic being down 0.7%, and customers' overall transaction value being down 5.9% for the third quarter of 2020. The Company continues to experience strong growth through its online channel.
Gross profit for the third quarter of 2020 decreased $20.5 million or 15.0%, to $115.9 million as compared with $136.4 million for the third quarter of 2019, primarily attributable to lower sales and a net reduction of 37 stores. Gross profit as a percentage of sales for the third quarter of 2020 decreased to 52.1% from 56.9% for the third quarter of 2019.
Results from operating activities for the third quarter of 2020 were a loss of $19.1 million as compared with earnings of $14.1 million for the third quarter of 2019, a decrease of $33.2 million. This decrease is primarily attributable to the decrease in gross profit of $20.5 million and a goodwill impairment charge of $11.8 million related to the Addition Elle banner. Changes have been made to the leadership team and the Company is optimistic that it has the team in place to drive growth, profitability and execute on its strategy. The Company continues to believe that Addition Elle and Penningtons are premium brands with excellent digital capabilities, a strong online presence with the plus-size consumer and strategies in place with the potential to generate long-term profitable growth for the Company. Results from operating activities excluding the impairment of goodwill for the third quarter of 2020 were a loss of $7.3 million as compared with earnings of $14.1 million for the third quarter of 2019, a decrease of $21.4 million.
Net loss for the third quarter of 2020 was $23.1 million ($0.47 basic and diluted loss per share) as compared with $8.9 million net earnings ($0.14 basic and diluted earnings per share) for the third quarter of 2019. The unfavourable change of $32.0 million included an unfavourable impact of IFRS 16 of $0.6 million. Excluding this $0.6 million impact of IFRS 16, the deterioration in net earnings of $31.4 million is primarily attributable to lower sales, the decrease in gross profit, a goodwill impairment expense of $11.8 million and the increase in net finance costs, partially offset by an increase in income tax recovery.
Adjusted EBITDA1 for the third quarter of 2020 was $18.5 million, as compared with $22.4 million for the third quarter of 2019, a decrease of $3.9 million. The decrease in adjusted EBITDA includes a favourable impact from the adoption of IFRS 16 of $18.4 million. Excluding this $18.4 million impact of IFRS 16, adjusted EBITDA for the third quarter of 2020 was $0.1 million as compared with $22.4 million for the third quarter of 2019, a decrease of $22.3 million. The decrease is primarily attributable to the decrease in gross profit.
39 weeks ended November 2, 2019
Sales for the year to date fiscal 2020 were $640.3 million, as compared with $696.1 million for the 39 weeks ended November 3, 2018 ("year to date fiscal 2019"). The decrease of $55.8 million is primarily due to lower sales in the plus-size banners, a net reduction of 37 stores and unseasonable weather conditions that were prevalent during the earlier portion of year to date fiscal 2020. The Company continues to execute on its plan of adapting to the new retail environment by reducing its store presence in select markets while enhancing its e-commerce capabilities. Comparable sales1, which include e-commerce sales, decreased 3.3%. The decrease was primarily due to store traffic being down 3.0% for the year to date fiscal 2020. The Company continues to experience strong growth through its online channel.
Gross profit for the year to date fiscal 2020 decreased $50.0 million or 12.8%, to $340.4 million as compared with $390.4 million for the year to date fiscal 2019, primarily attributable to lower sales and a net reduction of 37 stores. Gross profit as a percentage of sales for the year to date fiscal 2020 decreased to 53.2% from 56.1% for the year to date fiscal 2019.
Results from operating activities for the year to date fiscal 2020 were a loss of $30.4 million as compared with earnings of $20.1 million for the year to date fiscal 2019, a decrease of $50.5 million. This decrease is primarily attributable to the decrease in gross profit of $50.0 million, and a goodwill impairment charge of $11.8 million, partially offset by a reduction in selling, distribution and administrative costs of $11.3 million. Results from operating activities excluding the impairment of goodwill for the year to date fiscal 2020 were a loss of $18.6 million as compared with earnings of $20.1 million for the year to date fiscal 2019, a decrease of $38.7 million.
Net loss for the year to date fiscal 2020 was $35.8 million ($0.61 basic and diluted loss per share) as compared with $15.7 million net earnings ($0.25 basic and diluted earnings per share) for the year to date fiscal 2019. The unfavourable change of $51.5 million included an unfavourable impact of IFRS 16 of $2.9 million. Excluding this $2.9 million impact of IFRS 16, the deterioration in net earnings of $48.6 million is primarily attributable to lower sales, the decrease in gross profit, a goodwill impairment expense of $11.8 million and the increase in net finance costs, partially offset by reduced store operating costs and an increase in income tax recovery.
Adjusted EBITDA1 for the year to date fiscal 2020 was $59.4 million, as compared with $50.7 million for the year to date fiscal 2019, an increase of $8.7 million. The increase in adjusted EBITDA includes a favourable impact of IFRS 16 of $54.7 million. Excluding this $54.7 million impact of IFRS 16, adjusted EBITDA for the year to date fiscal 2020 was $4.7 million as compared with $50.7 million for the year to date fiscal 2019, a decrease of $46.0 million. The decrease is primarily attributable to the decrease in gross profit.
Adoption of IFRS 16 - Leases
The Company adopted IFRS 16 – Leases, replacing IAS 17 – Leases and related interpretations, using the modified retrospective approach, effective for the annual reporting period beginning on February 3, 2019. As a result, the Company's results for the third quarter of 2020 and year to date fiscal 2020 reflect lease accounting under IFRS 16. Comparative figures for the third quarter of 2019 and year to date fiscal 2019 have not been restated and continue to be reported under IAS 17 – Leases. Refer to Note 3 of the unaudited condensed consolidated interim financial statements of the Company for the third quarter of 2020 for additional details on the implementation of IFRS 16.
Dividends
At the Board of Directors meeting held on December 4, 2019, due to the Company's current operating performance, the Board decided to suspend the quarterly cash dividend. The Company will continue to assess potential future dividend levels on a quarterly basis.
Sales for the four weeks ended November 30, 2019
Sales for the month of November (the four weeks ended November 30, 2019) decreased 0.2%. Comparable sales1 increased 2.2%.
About Reitmans (Canada) Limited
The Company is a leading ladieswear specialty apparel retailer with retail outlets throughout Canada. The Company operates 587 stores consisting of 260 Reitmans, 112 Penningtons, 79 Addition Elle, 81 RW & CO. and 55 Thyme Maternity.
1NON-GAAP FINANCIAL MEASURES
The Company has identified several key operating performance measures and non-GAAP financial measures which management believes are useful in assessing the performance of the Company; however, readers are cautioned that some of these measures may not have standardized meanings under IFRS and, therefore, may not be comparable to similar terms used by other companies.
In addition to discussing earnings in accordance with IFRS, this press announcement provides adjusted earnings before interest, taxes, depreciation and amortization ("adjusted EBITDA") as a non-GAAP financial measure. Adjusted EBITDA is defined as net earnings before income tax expense/recovery, dividend income, interest income, net change in fair value of marketable securities, realized gains or losses on disposal of marketable securities, interest expense, impairment of goodwill, depreciation, amortization and net impairment charges. The following table reconciles the most comparable GAAP measure, net earnings or loss, to adjusted EBITDA. 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 the metric for this purpose. The exclusion of dividend income, interest income and expense and the net change in fair value of marketable securities eliminates the impact on earnings derived from non-operational activities. The exclusion of depreciation, amortization and impairment charges eliminates the non-cash impact. The intent of adjusted EBITDA is to provide additional useful information to investors and analysts. The measure does not have any standardized meaning under IFRS. Although depreciation, amortization and impairment charges are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, as such, adjusted EBITDA does not reflect any cash requirements for these replacements. Adjusted EBITDA should not be considered either as discretionary cash available to invest in the growth of the business or as a measure of cash that will be available to meet the Company's obligations. Other companies may calculate adjusted EBITDA differently. From time to time, the Company may exclude additional items if it believes doing so would result in a more effective analysis of underlying operating performance. The exclusion of certain items does not imply that they are non-recurring. Adjusted EBITDA should not be used in substitute for measures of performance prepared in accordance with IFRS or as an alternative to net earnings, net cash provided by operating, investing or financing activities or any other financial statement data presented as indicators of financial performance or liquidity, each as presented in accordance with IFRS. Although adjusted EBITDA is frequently used by securities analysts, lenders and others in their evaluation of companies, it has limitations as an analytical tool, and should not be considered in isolation, or as a substitute for analysis of the Company's results as reported under IFRS.
The Company considers results from operating activities a useful measure of the Company's performance from its retail operations. Given that the Company has recorded a goodwill impairment in the third quarter of and year to date fiscal 2020, it has also determined that a useful measure would be results from operating activities before impairment of goodwill, as noted on pages 7 and 10 of the Management's Discussion and Analysis for the third quarter of 2020. Additionally, (loss) earnings per share excluding impairment of goodwill both on a basic and diluted basis have been presented, which removes the impact of impairment of goodwill on net (loss) earnings used for calculation purposes. Both of these supplementary measures are considered useful information and should not be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS.
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, 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 behaviour, the Company reports a single comparable sales metric, inclusive of store and e-commerce channels. Comparable sales are defined as sales generated by stores that have been continuously open during both of the periods being compared and include e-commerce sales. Comparable sales exclude sales from wholesale accounts. The comparable sales metric compares the same calendar days for each period. Although this KPI is expressed as a ratio, it is a non-GAAP 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 sales and considers it useful in helping to determine what portion of new 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.
The following table reconciles net (loss) earnings to adjusted EBITDA:
For the third quarter of |
Year to date fiscal |
|||||||||||
2020 |
2020 |
2019 |
2020 |
2020 Excluding |
2019 |
|||||||
Net (loss) earnings |
$ |
(23.1) |
$ |
(22.5) |
$ |
8.9 |
$ |
(35.8) |
$ |
(32.9) |
$ |
15.7 |
Depreciation, amortization and net impairment losses |
25.9 |
8.5 |
8.5 |
78.4 |
25.5 |
28.8 |
||||||
Dividend income |
(0.1) |
(0.1) |
(0.5) |
(1.4) |
(1.4) |
(1.8) |
||||||
Interest income |
(0.4) |
(0.4) |
(0.7) |
(1.3) |
(1.3) |
(1.5) |
||||||
Impairment of goodwill |
11.8 |
11.8 |
- |
11.8 |
11.8 |
- |
||||||
Net change in fair value and loss on disposal of marketable securities |
4.4 |
4.4 |
2.7 |
8.3 |
8.3 |
3.8 |
||||||
Interest expense on lease liabilities |
1.8 |
- |
- |
5.7 |
- |
- |
||||||
Income tax (recovery) expense |
(1.8) |
(1.6) |
3.5 |
(6.3) |
(5.3) |
5.7 |
||||||
Adjusted EBITDA |
$ |
18.5 |
$ |
0.1 |
$ |
22.4 |
$ |
59.4 |
$ |
4.7 |
$ |
50.7 |
Adjusted EBITDA as % of Sales |
8.3% |
0.0% |
9.3% |
9.3% |
0.7% |
7.3% |
||||||
1 |
Adjusted EBITDA for the third quarter of 2020 and year to date fiscal 2020 excluding impact of IFRS 16 assumes the Company continued to report under IAS 17 - Leases and did not adopt IFRS 16. Under IFRS 16, the nature and timing of expenses related to operating leases have changed as the straight-line operating lease expenses have been replaced with a depreciation charge for right-of-use assets and interest expense on lease liabilities. Accordingly, IFRS 16 had a favourable impact of approximately $18.4 million and $54.7 million on adjusted EBITDA for the third quarter of 2020 and for year to date fiscal 2020, respectively, as operating lease expenses have been replaced with depreciation and interest expenses, which are not included in the calculation of adjusted EBITDA. |
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. Consequently, actual future results may differ materially from the anticipated results expressed in forward-looking statements, which reflect the Company's expectations only as of the date of this Press Announcement. 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, 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 Company's 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 third quarter of 2020.
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 third quarter of 2020 are available online at www.sedar.com.
Montreal, December 4, 2019
Jeremy H. Reitman
Chairman and Chief Executive Officer
Telephone: (514) 385-2630
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 39 weeks ended |
|||||||
November 2, 2019 |
November 3, 2018 |
November 2, 2019 |
November 3, 2018 |
|||||
Sales |
$ |
222,336 |
$ |
239,713 |
$ |
640,309 |
$ |
696,131 |
Cost of goods sold |
106,444 |
103,268 |
299,949 |
305,736 |
||||
Gross profit |
115,892 |
136,445 |
340,360 |
390,395 |
||||
Selling and distribution expenses |
111,607 |
111,170 |
324,824 |
336,650 |
||||
Administrative expenses |
11,617 |
11,177 |
34,067 |
33,709 |
||||
Impairment of goodwill |
11,843 |
- |
11,843 |
- |
||||
Results from operating activities |
(19,175) |
14,098 |
(30,374) |
20,036 |
||||
Finance income |
533 |
1,186 |
2,735 |
5,120 |
||||
Finance costs |
6,241 |
2,890 |
14,412 |
3,761 |
||||
(Loss) earnings before income taxes |
(24,883) |
12,394 |
(42,051) |
21,395 |
||||
Income tax (recovery) expense |
(1,786) |
3,521 |
(6,285) |
5,703 |
||||
Net (loss) earnings |
$ |
(23,097) |
$ |
8,873 |
$ |
(35,766) |
$ |
15,692 |
(Loss) earnings per share : |
||||||||
Basic |
$ |
(0.47) |
$ |
0.14 |
$ |
(0.61) |
$ |
0.25 |
Diluted |
(0.47) |
0.14 |
(0.61) |
0.25 |
||||
REITMANS (CANADA) LIMITED CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (in thousands of Canadian dollars) |
|||||||||
For the 13 weeks ended |
For the 39 weeks ended |
||||||||
November 2, 2019 |
November 3, 2018 |
November 2, 2019 |
November 3, 2018 |
||||||
Net (loss) earnings |
$ |
(23,097) |
$ |
8,873 |
$ |
(35,766) |
$ |
15,692 |
|
Other comprehensive (loss) income |
|||||||||
Items that are or may be reclassified subsequently to net earnings: |
|||||||||
Cash flow hedges (net of tax of $91 for the 13 weeks and $75 for the 39 weeks ended November 2, 2019; net of tax of $154 for the 13 weeks and $2,577 for the 39 weeks ended November 3, 2018) |
(249) |
(420) |
(207) |
7,021 |
|||||
Foreign currency translation differences |
13 |
(40) |
(35) |
(270) |
|||||
Total other comprehensive (loss) income |
(236) |
(460) |
(242) |
6,751 |
|||||
Total comprehensive (loss) income |
$ |
(23,333) |
$ |
8,413 |
$ |
(36,008) |
$ |
22,443 |
|
REITMANS (CANADA) LIMITED CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS (Unaudited) (in thousands of Canadian dollars) |
||||||
November 2, 2019 |
November 3, 2018 |
February 2, 2019 |
||||
ASSETS |
||||||
CURRENT ASSETS |
||||||
Cash and cash equivalents |
$ |
67,346 |
$ |
124,698 |
$ |
112,518 |
Marketable securities |
- |
58,233 |
49,690 |
|||
Trade and other receivables |
7,801 |
6,019 |
7,897 |
|||
Derivative financial asset |
252 |
4,518 |
1,900 |
|||
Inventories |
175,254 |
149,928 |
146,809 |
|||
Prepaid expenses |
15,163 |
20,503 |
19,771 |
|||
Total Current Assets |
265,816 |
363,899 |
338,585 |
|||
NON-CURRENT ASSETS |
||||||
Property and equipment |
89,463 |
99,219 |
95,921 |
|||
Intangible assets |
19,546 |
19,494 |
21,639 |
|||
Right-of-use assets |
193,797 |
- |
- |
|||
Goodwill |
- |
11,843 |
11,843 |
|||
Deferred income taxes |
30,582 |
24,159 |
24,829 |
|||
Total Non-Current Assets |
333,388 |
154,715 |
154,232 |
|||
TOTAL ASSETS |
$ |
599,204 |
$ |
518,614 |
$ |
492,817 |
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||
CURRENT LIABILITIES |
||||||
Trade and other payables |
$ |
111,072 |
$ |
114,410 |
$ |
98,842 |
Derivative financial liability |
1,023 |
- |
966 |
|||
Deferred revenue |
10,340 |
10,174 |
15,209 |
|||
Income taxes payable |
344 |
4,507 |
4,201 |
|||
Current portion of lease liabilities |
61,509 |
- |
- |
|||
Total Current Liabilities |
184,288 |
129,091 |
119,218 |
|||
NON-CURRENT LIABILITIES |
||||||
Trade and other payables |
222 |
6,891 |
5,170 |
|||
Deferred lease credits |
- |
8,069 |
7,789 |
|||
Lease liabilities |
141,704 |
- |
- |
|||
Pension liability |
21,089 |
19,589 |
21,043 |
|||
Total Non-Current Liabilities |
163,015 |
34,549 |
34,002 |
|||
SHAREHOLDERS' EQUITY |
||||||
Share capital |
27,406 |
38,397 |
38,397 |
|||
Contributed surplus |
10,277 |
10,164 |
10,245 |
|||
Retained earnings |
215,744 |
305,243 |
292,239 |
|||
Accumulated other comprehensive (loss) income |
(1,526) |
1,170 |
(1,284) |
|||
Total Shareholders' Equity |
251,901 |
354,974 |
339,597 |
|||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
599,204 |
$ |
518,614 |
$ |
492,817 |
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 February 3, 2019 |
$ |
38,397 |
$ |
10,245 |
$ |
292,239 |
$ |
(1,284) |
$ |
339,597 |
IFRS 16 adoption adjustment (net of tax) |
- |
- |
767 |
- |
767 |
|||||
Restated balance as at February 3, 2019 |
38,397 |
10,245 |
293,006 |
(1,284) |
340,364 |
|||||
Net loss |
- |
- |
(35,766) |
- |
(35,766) |
|||||
Total other comprehensive loss |
- |
- |
- |
(242) |
(242) |
|||||
Total comprehensive loss for the period |
- |
- |
(35,766) |
(242) |
(36,008) |
|||||
Share-based compensation costs |
- |
32 |
- |
- |
32 |
|||||
Dividends |
- |
- |
(8,776) |
- |
(8,776) |
|||||
Purchase of Class A non-voting shares pursuant to substantial issuer bid |
(10,991) |
- |
- |
- |
(10,991) |
|||||
Excess of purchase price of Class A non-voting shares over carrying amount |
- |
- |
(32,720) |
- |
(32,720) |
|||||
Total (distributions to) contributions by owners of the Company |
(10,991) |
32 |
(41,496) |
- |
(52,455) |
|||||
Balance as at November 2, 2019 |
$ |
27,406 |
$ |
10,277 |
$ |
215,744 |
$ |
(1,526) |
$ |
251,901 |
Balance as at February 4, 2018 |
$ |
38,397 |
$ |
10,119 |
$ |
297,895 |
$ |
(5,581) |
$ |
340,830 |
IFRS 15 adoption adjustment (net of tax) |
- |
- |
1,157 |
- |
1,157 |
|||||
Restated balance as at February 4, 2018 |
38,397 |
10,119 |
299,052 |
(5,581) |
341,987 |
|||||
Net earnings |
- |
- |
15,692 |
- |
15,692 |
|||||
Total other comprehensive income |
- |
- |
- |
6,751 |
6,751 |
|||||
Total comprehensive income for the period |
- |
- |
15,692 |
6,751 |
22,443 |
|||||
Share-based compensation costs |
- |
45 |
- |
- |
45 |
|||||
Dividends |
- |
- |
(9,501) |
- |
(9,501) |
|||||
Total contributions by (distributions to) owners of the Company |
- |
45 |
(9,501) |
- |
(9,456) |
|||||
Balance as at November 3, 2018 |
$ |
38,397 |
$ |
10,164 |
$ |
305,243 |
$ |
1,170 |
$ |
354,974 |
REITMANS (CANADA) LIMITED CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (Unaudited) |
||||||||
(in thousands of Canadian dollars) |
For the 13 weeks ended |
For the 39 weeks ended |
||||||
November 2, 2019 |
November 3, 2018 |
November 2, 2019 |
November 3, 2018 |
|||||
CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||
Net (loss) earnings |
$ |
(23,097) |
$ |
8,873 |
$ |
(35,766) |
$ |
15,692 |
Adjustments for: |
||||||||
Depreciation, amortization and net impairment losses |
25,928 |
8,446 |
78,403 |
28,785 |
||||
Impairment of goodwill |
11,843 |
- |
11,843 |
- |
||||
Share-based compensation (recovery) costs |
(124) |
31 |
(57) |
206 |
||||
Net change in fair value and loss on disposal of marketable |
4,409 |
2,696 |
8,264 |
3,761 |
||||
Net change in transfer of realized loss (gain) on cash flow hedges to inventory |
116 |
(221) |
1,423 |
(4,628) |
||||
Foreign exchange gain |
(248) |
(2,723) |
(4,343) |
(1,048) |
||||
Interest on lease liabilities |
1,832 |
- |
5,696 |
- |
||||
Interest and dividend income, net |
(501) |
(1,186) |
(2,735) |
(3,290) |
||||
Income tax (recovery) expense |
(1,786) |
3,521 |
(6,285) |
5,703 |
||||
18,372 |
19,437 |
56,443 |
45,181 |
|||||
Changes in: |
||||||||
Trade and other receivables |
(1,206) |
269 |
381 |
(1,160) |
||||
Inventories |
(9,744) |
(6,784) |
(28,445) |
(12,823) |
||||
Prepaid expenses |
1,114 |
16 |
(1,585) |
(1,316) |
||||
Trade and other payables |
(4,115) |
7,709 |
14,272 |
19,515 |
||||
Pension liability |
(102) |
100 |
45 |
352 |
||||
Deferred lease credits |
- |
860 |
- |
1,619 |
||||
Deferred revenue |
(2,355) |
(5,702) |
(4,869) |
(9,820) |
||||
Cash from operating activities |
1,964 |
15,905 |
36,242 |
41,548 |
||||
Interest received |
377 |
581 |
1,443 |
1,394 |
||||
Dividends received |
288 |
663 |
1,582 |
1,917 |
||||
Income taxes received |
255 |
30 |
267 |
2,336 |
||||
Income taxes paid |
(103) |
- |
(3,800) |
(4) |
||||
Net cash flows from operating activities |
2,781 |
17,179 |
35,734 |
47,191 |
||||
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES |
||||||||
Additions to property and equipment and intangible assets, net |
(5,256) |
(7,230) |
(17,397) |
(18,457) |
||||
Purchases of marketable securities |
- |
(7,505) |
- |
(7,505) |
||||
Proceeds on sale of marketable securities |
41,425 |
7,536 |
41,425 |
7,536 |
||||
Cash flows from (used in) investing activities |
36,169 |
(7,199) |
24,028 |
(18,426) |
||||
CASH FLOWS USED IN FINANCING ACTIVITIES |
||||||||
Dividends paid |
(2,442) |
(3,167) |
(8,776) |
(9,501) |
||||
Payment of lease liabilities |
(18,982) |
- |
(56,755) |
- |
||||
Purchases of Class A non-voting shares pursuant to substantial issuer bid |
- |
- |
(43,711) |
- |
||||
Cash flows used in financing activities |
(21,424) |
(3,167) |
(109,242) |
(9,501) |
||||
FOREIGN EXCHANGE GAIN ON CASH HELD IN FOREIGN CURRENCY |
258 |
2,684 |
4,308 |
778 |
||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
17,784 |
9,497 |
(45,172) |
20,042 |
||||
CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD |
49,562 |
115,201 |
112,518 |
104,656 |
||||
CASH AND CASH EQUIVALENTS, END OF THE PERIOD |
$ |
67,346 |
$ |
124,698 |
$ |
67,346 |
$ |
124,698 |
SOURCE Reitmans (Canada) Limited
Jeremy H. Reitman, Chairman and Chief Executive Officer, Telephone: (514) 385-2630
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