Roots Reports Fiscal 2019 Fourth Quarter and Year-End Results
Company provides COVID-19 business update, including the transition to a predominantly eCommerce retail model in the United States
TORONTO, April 29, 2020 /CNW/ - Roots ("Roots," "Roots Canada" or the "Company") (TSX: ROOT), a premium outdoor lifestyle brand, today announced its financial results for its fourth quarter and fiscal year ended February 1, 2020 ("Q4 2019" and "F2019"). All financial results are reported in Canadian dollars unless otherwise stated. Certain metrics, including those expressed on an adjusted or comparable basis, are non-IFRS measures. See "Non-IFRS Measures and Industry Metrics".
Fourth Quarter Fiscal 2019 Highlights
- Total sales of $127.5 million, compared to $130.8 million in the fourth quarter of fiscal 2018 ("Q4 2018")
- Direct-to-Consumer ("DTC") sales of $119.1 million, compared to $120.7 million in Q4 2018
- Comparable Sales Decline of (1.8%)
- Gross margin of 54.4%, compared to 59.9% in Q4 2018
- DTC Gross Margin of 55.2%, compared to 61.8% in Q4 2018
- Recorded a fixed asset impairment of $19.2 million and goodwill impairment of $44.8 million, compared to a fixed asset impairment of $1.4 million and goodwill impairment of $nil in Q4 2018
- Selling, general and administrative expenses of $69.4 million, up from $51.8 million in Q4 2018
- Adjusted EBITDA of $26.1 million, compared to $34.8 million in Q4 2018
- Basic Earnings (Loss) per Share of ($1.06), compared to $0.43 per Share in Q4 2018, and Adjusted Net Income per Share of $0.31, compared to $0.53 per Share in Q4 2018
- Ended the quarter with 114 corporate-retail stores in Canada and eight in the United States
- Ended the quarter with 114 partner-operated stores in Taiwan, 36 in China and one in Hong Kong
Fiscal 2019 Highlights
- Total sales of $329.9 million, up 0.3% from $329.0 million in F2018 ("F2018")
- DTC sales of $287.8 million, up 1.4% from $283.9 million in F2018
- Comparable Sales Decline of (0.3%)
- Gross margin of 53.4%, compared to 57.3% in F2018
- DTC Gross Margin of 56.2%, compared to 61.2% in F2018
- Selling, general and administrative expenses of $188.3 million, up from $166.8 million in F2018
- Adjusted EBITDA of $26.1 million, compared to $41.9 million in F2018
- Basic Loss per Share of ($1.47), compared to Basic Earnings per Share of $0.27 in F2018, and Adjusted Net Income per Share of $0.10, compared to $0.48 per share in F2018
"As a result of operational challenges, the business performed below expectations in the fourth quarter," said Meghan Roach, Interim Chief Executive Officer, Roots. "While we successfully managed the significant demands placed on the distribution centre during the holiday period, we continued to face inefficiencies that drove increased costs. In addition, the U.S. stores opened within the last three years delivered another quarter of underperformance, driving a $6.0 million Adjusted EBITDA loss for the year. As a result of these losses and the increasingly challenging retail environment resulting from COVID-19, we have decided to permanently close those stores."
Ms. Roach continued: "We are taking all necessary actions to steer the business through the COVID-19 pandemic, with our primary focus areas being the health and safety of our employees and customers as well as cost and liquidity management. In addition, as a Company with an extensive collection of sweats, a product category currently in high-demand, we are seeing our eCommerce business perform better than expected. While it is impossible to predict how long this crisis will last, we are confident there continues to be multiple value-creation levers for the Company in the long term. As a Canadian staple for 46 years, Roots has a highly engaged and loyal consumer base, strong omni-channel capabilities, and a solid core product offering."
Summary of Fourth Quarter and Year-End Fiscal 2019 Financial Results
Sales
Total Q4 2019 sales were $127.5 million, down from total sales of $130.8 million in Q4 2018, and total F2019 sales were $329.9 million, up from $329.0 million in F2018.
Q4 2019 DTC sales (corporate retail store and eCommerce sales) were $119.1 million, down from $120.7 million in Q4 2018, reflecting a Comparable Sales Decline of (1.8%), partially offset by the addition of one net new store. The Comparable Sales Decline for Q4 2019 was predominantly a result of lower in-store traffic, offset, in part, by growth in eCommerce sales. F2019 DTC sales were $287.8 million, up from $283.9 million in F2018, reflecting the one net new store opening in F2019 as well as the full-year sales benefit from stores opened in mid-F2018, partially offset by a Comparable Sales Decline of (0.3%).
Partners and Other sales (wholesale Roots-branded products, royalties on partner retail sales, licensing to select manufacturing partners and the sale of certain custom Roots-branded products) for Q4 2019 were $8.4 million, down from $10.1 million in Q4 2018. The year-over-year decline was due to macro-economic and geopolitical headwinds affecting the Asian markets that the Company's partner currently operates within. For F2019, Partners and Other sales were $42.1 million, down from $45.2 million in F2018.
Gross Profit
Total gross profit for Q4 2019 was $69.3 million, and $176.2 million for F2019, down from $78.3 million and $188.5 million in Q4 2018 and F2018, respectively.
Q4 2019 DTC gross profit was $65.7 million, representing a DTC Gross Margin of 55.2%, down from DTC gross profit of $74.6 million and DTC Gross Margin of 61.8% in Q4 2018. In Q4 2019, the Company recorded an inventory write-off of $1.6 million, compared to $nil in Q4 2018. Excluding the impact of the inventory write-off, Q4 2019 DTC Gross Margin was 56.5%. The year-over-year decline in both DTC gross profit and DTC Gross Margin, primarily reflects additional costs related to the Company's move to its new integrated distribution centre, the negative impact on full-price selling as a result of distribution centre delays, the Company's decision to extend its holiday promotional sales period, as well as foreign exchange headwinds. In addition, the Company reclassified certain costs (into cost of goods sold from selling, general and administrative expenses) with the transition to in-house fulfillment of all eCommerce orders. For F2019, DTC gross profit was $161.8 million, representing a DTC Gross Margin of 56.2%, down from DTC gross profit of $173.8 million and DTC Gross Margin of 61.2% in F2018.
Partners and Other gross profit was $3.6 million in Q4 2019 and $14.4 million for F2019, down from $3.8 million and $14.7 million for Q4 2018 and F2018, respectively.
Selling, general and administrative expenses (SG&A)
Selling, general and administrative expenses for Q4 2019 were $69.4 million, up from $51.8 million in Q4 2018. Excluding the impact of IFRS 16 and non-cash fixed asset impairments, SG&A declined $2.2 million to $48.2 million in Q4 2019, from $50.4 million in Q4 2018. SG&A reflected savings related to temporary vacancies in certain senior leadership roles, the shift of certain eCommerce costs from SG&A to gross margin with the transition to in-house eCommerce fulfillment, and store wage optimization. These decreases were partially offset by incremental costs to support a larger total store fleet square footage and larger distribution centre, one-time distribution centre transition costs and one-time severance costs. F2019 SG&A was $188.3 million, up from $166.8 million in F2018. Excluding the impact of IFRS 16 and the non-cash fixed asset impairments recorded in the fourth quarter, SG&A was $170.5 million and $165.4 million in F2019 and F2018, respectively. In Q4 2019, the Company recorded a $19.2 million non-cash fixed asset impairment, primarily associated with its U.S. stores, compared to $1.4 million in Q4 2018.
Adjusted EBITDA, Net Income & Adjusted Net Income
Reflecting factors discussed above, Adjusted EBITDA (which excludes the impact of IFRS 16) for Q4 2019 was $26.1 million, down from $34.8 million in Q4 2018, and was $26.1 million for F2019, down from $41.9 million in F2018.
Q4 2019 net loss was ($44.6) million, or ($1.06) Basic Loss per Share, including a $44.8 million goodwill impairment charge, down from net income of $18.3 million, or $0.43 Basic Earnings per Share in Q4 2018. In Q4 2019, Roots recorded an income tax recovery of $4.3 million, compared to an income tax expense of $6.9 million in Q4 2018, with an effective income tax expense (recovery) rate of (8.9%), down from 27.3% in Q4 2018. Q4 2019 Adjusted Net Income (which excludes the impact of IFRS 16 and a goodwill impairment charge) was $13.3 million, or $0.31 per share, compared to $22.3 million, or $0.53 per share, in Q4 2018.
F2019 net loss was ($62.0) million, or ($1.47) Basic Loss per Share, down from net income of $11.4 million, or $0.27 Basic Earnings per Share in F2018. For F2019, the Company recorded an income tax recovery of ($10.5) million, compared to an income tax expense of $5.1 million in F2018, with an effective income tax expense (recovery) rate of (14.4%), down from 31.0% in F2018. F2019 Adjusted Net Income (which excludes the impact of IFRS 16 and a goodwill impairment charge) was $4.0 million, or $0.10 per share, compared to $20.2 million, or $0.48 per share, in F2018.
Q4 and full-year fiscal 2019 IFRS 16 Impact
In Q1 2019, Roots commenced reporting lease obligations according to IFRS 16, with leases reflected on the Company's balance sheet and rent expense being replaced with interest and depreciation on the Company's income statement. The Q4 2019 IFRS 16 impact to SG&A was an increase of $2.0 million; the impact to interest expense was an increase of $2.3 million; and the decrease to deferred tax expense was $0.5 million, resulting in a $3.8 million decrease in net income. The F2019 IFRS 16 impact to SG&A was a decrease of $1.4 million; the impact to interest expense was an increase of $9.0 million; and the decrease to deferred tax expense was $1.4 million, resulting in a $6.2 million increase in net loss. Both Adjusted EBITDA and Adjusted Net Income for Q4 2019 and F2019 exclude the impact of IFRS 16.
Closure of Seven U.S. Stores
Today, the Company also announced the liquidation of Roots USA Corporation, its U.S. subsidiary, through a Chapter 7 bankruptcy filing. The filing will result in the permanent closure of the Company's stores in Boston, Washington and Chicago, as well as its pop-up location in Woodbury Common, New York.
Roots continues to believe in the U.S. market opportunity. However, with the $6.0 million Adjusted EBITDA loss generated by these seven U.S. stores in F2019 and the discretionary retail environment having become increasingly challenging as a result of COVID-19, the Company believes a principally eCommerce-based distribution in the near-term is the best approach to continuing to serve its loyal U.S. customer base. Roots will also continue to operate its two longstanding stores in Michigan and Utah, as both locations play important roles in the Company's heritage and have well-established customer bases.
COVID-19 Business Update
In the context of COVID-19, Roots is focused on the health and safety of its team and customers, current company operations, business continuity and managing liquidity.
In March 2020, to help protect against COVID-19, Roots temporarily closed its North American retail locations and its Canadian Leather Factory. As a result, the Company made the very difficult decision to temporarily lay off its store and leather factory employees. At this time, with the implementation of various government relief programs, Roots is reviewing potential opportunities to re-embrace retail and leather factory employees into the business.
Roots continues to operate its global eCommerce business and its distribution centre, with strict cleaning protocols and social distancing measures in place. The Company also continues to operate its wholesale, B2B and licensing business under a work-from-home model. In addition, the Company recently launched a special initiative at its Canadian leather factory, repurposing the facility in accordance with appropriate health and safety guidelines to produce non-medical face masks.
Roots Asian partner business continues to conform with local government and global health organization guidance, including reducing hours and temporarily closing select stores in China. At this time, while all stores are open in China, Hong Kong and Taiwan, retail traffic trends remain below pre-pandemic levels.
Roots has substantially reduced costs and capital expenditures across all areas of the business and is actively managing liquidity. The Board of Directors and Roots senior leadership team have temporarily reduced their compensation and salaries, respectively, by a minimum of 25%, and all other head office salaries have been reduced as well. The Company has also reduced forward inventory purchases, minimized discretionary expenditures and effectively halted capital spend. Additionally, Roots continues to work closely with its landlords, partners, suppliers, as well as service and logistics providers to identify further areas of cost reduction.
Roots recognizes that while it has implemented an action plan to best navigate the impacts of COVID-19 on the business, this situation continues to evolve quickly. To the extent that matters continue to worsen, there may be a material impact on Roots business operations and financial position in fiscal 2020. The magnitude of this impact is dependent on the extent, duration and severity of the pandemic and cannot currently be quantified.
Conference Call and Webcast Information
Roots will hold a conference call to discuss the Company's fiscal 2019 fourth quarter and full-year results on April 29, 2020 at 8:00 a.m. ET. All interested parties can join the call by dialing 647-427-7450 or 1-888-231-8191 and using conference ID: 6585124. Please dial-in 15 minutes prior to the call to secure a line. The conference call will be archived for replay until May 6, 2020 at midnight and can be accessed by dialing 416-849-0833 or 1-855-859-2056 and entering replay passcode: 6585124.
A live audio webcast of the conference call will be available on the Events and Presentations section of the Company's investor website at https://investors.roots.com or by following the link here. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. An archived replay of the webcast will be available on the Company's website for one-year.
See Roots Consolidated Financial Statements and the Company's Management's Discussion and Analysis of Financial Condition and Results of Operations for the Fourth Quarter and Fiscal Year ended February 1, 2020 on the Company's investor website at https://investors.roots.com and on SEDAR at www.SEDAR.com.
Filing of Fiscal 2019 Annual Information Form
As a result of Roots leadership team's continued focus on managing the business during the COVID-19 pandemic, the Company will be utilizing the temporary blanket relief granted by the Ontario Securities Commission in Ontario Instrument 51-502 Temporary Exemption from Certain Corporate Finance Requirements (and equivalent relief granted by the other provinces and territories of Canada) to postpone the filings of its Fiscal 2019 Annual Information Form (AIF) by a period of up to 45 days. Roots expects to file its Fiscal 2019 AIF on or around May 29, 2020.
Roots confirms that, since the filing of its annual consolidated financial statements for the fiscal year ended February 1, 2020, there have been no material business developments affecting the Company.
In connection with Roots utilization of the above-noted relief, its management and other insiders are subject to an insider trading blackout policy that reflects the principles in section 9 of National Policy 11-207 Failure-to-File Cease Trade Orders and Revocations in Multiple Jurisdictions.
About Roots
Established in 1973, Roots is a premium outdoor-lifestyle brand. We unite the best of cabin and city through unmistakable style built with uncompromising comfort and quality. We offer a broad range of products designed for life's everyday adventures, including: women's and men's apparel, leather goods, footwear, accessories, and kids, toddler and baby apparel. Starting from a little cabin in Algonquin Park, Canada, Roots has grown to become a global brand. As of April 29, 2020, we operated 114 corporate-retail stores in Canada, two corporate-retail stores in the United States, 115 partner-operated stores in Taiwan, 36 partner-operated stores in China, two partner-operated stores in Hong Kong and a global eCommerce platform, roots.com, Roots Corporation is a Canadian corporation doing business as "Roots" and "Roots Canada".
Non-IFRS Measures and Industry Metrics
This press release makes reference to certain non-IFRS measures including certain metrics specific to the industry in which we operate. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and, therefore, may not 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 are not intended to represent, and should not be considered as alternatives to net income or other performance measures derived in accordance with IFRS as measures of operating performance or operating cash flows or as a measure of liquidity. In addition to our results determined in accordance with IFRS, we use non-IFRS measures including DTC Gross Margin, EBITDA, Adjusted EBITDA, Adjusted Net Income (Loss), and Adjusted Net Income (Loss) per Share. This press release also refers to Comparable Sales Growth (Decline), a commonly used metric in our industry but that may be calculated differently compared to other companies. We believe these non-IFRS measures and industry metrics provide useful information to both management and investors in measuring our financial performance and condition and highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. Definitions and reconciliations of non-IFRS measures to the relevant reported measures can be found in our MD&A under "Cautionary Note Regarding Non-IFRS Measures and Industry Metrics", which is available on SEDAR at www.sedar.com or the Company's Investor Relations website at https://investors.roots.com.
Forward-Looking Information
Certain information in this press release contains forward-looking information. This information is based on management's reasonable assumptions and beliefs in light of the information currently available to us and are made as of the date of this press release. Actual results and the timing of events may differ materially from those anticipated in the forward-looking information as a result of various factors. Information regarding our expectations of future results, performance, achievements, prospects or opportunities or the markets in which we operate is forward-looking information. Statements containing forward-looking information are not facts but instead represent management's expectations, estimates and projections regarding future events or circumstances. Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements.
See "Forward-Looking Information" and "Risk Factors" in the Company's current Annual Information Form for a discussion of the uncertainties, risks and assumptions associated with these statements. Readers are urged to consider the uncertainties, risks and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. We have no intention and undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities law.
ROOTS CORPORATION
Consolidated Statement of Financial Position
(In thousands of Canadian dollars)
As at February 1, 2020 and February 2, 2019
February 1, |
February 2, |
||
2020 |
2019 |
||
Assets |
|||
Current assets: |
|||
Cash |
$ 949 |
$ 1,991 |
|
Accounts receivable |
7,158 |
6,627 |
|
Inventories |
40,152 |
49,533 |
|
Prepaid expenses |
5,418 |
6,443 |
|
Derivative assets |
– |
366 |
|
Total current assets |
53,677 |
64,960 |
|
Non-current assets: |
|||
Loan receivable |
585 |
562 |
|
Lease receivable |
1,511 |
– |
|
Fixed assets |
55,694 |
64,163 |
|
Right-of-use assets |
128,322 |
– |
|
Intangible assets |
193,079 |
198,724 |
|
Goodwill |
7,906 |
52,705 |
|
Total non-current assets |
387,097 |
316,154 |
|
Total assets |
$ 440,774 |
$ 381,114 |
|
Liabilities and Shareholders' Equity |
|||
Current liabilities: |
|||
Bank indebtedness |
$ 7,226 |
$ 12,409 |
|
Accounts payable and accrued liabilities |
20,252 |
22,291 |
|
Deferred revenue |
6,011 |
5,498 |
|
Income taxes payable |
2,008 |
6,445 |
|
Current portion of lease liabilities |
26,569 |
– |
|
Current portion of long-term debt |
4,984 |
4,984 |
|
Derivative obligations |
158 |
– |
|
Total current liabilities |
67,208 |
51,627 |
|
Non-current liabilities: |
|||
Deferred tax liabilities |
13,942 |
22,761 |
|
Deferred lease costs |
– |
10,063 |
|
Finance lease obligation |
– |
504 |
|
Long-term portion of lease liabilities |
124,590 |
– |
|
Long-term debt |
84,528 |
80,031 |
|
Other non-current liabilities |
– |
1,424 |
|
Total non-current liabilities |
223,060 |
114,783 |
|
Total liabilities |
290,268 |
166,410 |
|
Shareholders' equity: |
|||
Share capital |
196,903 |
196,853 |
|
Contributed surplus |
3,407 |
3,975 |
|
Accumulated other comprehensive income (loss) |
(116) |
268 |
|
Retained earnings (deficit) |
(49,688) |
13,608 |
|
Total shareholders' equity |
150,506 |
214,704 |
|
Total liabilities and shareholders' equity |
$ 440,774 |
$ 381,114 |
|
On behalf of the Board of Directors:
"Erol Uzumeri" Director
"Richard P. Mavrinac" Director
ROOTS CORPORATION
Consolidated Statement of Net Income (Loss)
(In thousands of Canadian dollars, except per share amounts)
For the 52-week periods ended February 1, 2020 and February 2, 2019
February 1, |
February 2, |
|
2020 |
2019 |
|
Sales |
$ 329,865 |
$ 329,028 |
Cost of goods sold |
153,676 |
140,538 |
Gross profit |
176,189 |
188,490 |
Selling, general and administrative expenses |
188,308 |
166,790 |
Goodwill impairment |
44,799 |
– |
Income (loss) before interest expense and |
||
income taxes expense (recovery) |
(56,918) |
21,700 |
Interest expense |
15,567 |
5,171 |
Income (loss) before income taxes |
(72,485) |
16,529 |
Income taxes expense (recovery) |
(10,456) |
5,129 |
Net income (loss) |
$ (62,029) |
$ 11,400 |
Basic earnings (loss) per share |
$ (1.47) |
$ 0.27 |
Diluted earnings (loss) per share |
$ (1.47) |
$ 0.27 |
ROOTS CORPORATION
Consolidated Statement of Comprehensive Income (Loss)
(In thousands of Canadian dollars)
For the 52-week periods ended February 1, 2020 and February 2, 2019
February 1, |
February 2, |
|||
2020 |
2019 |
|||
Net income (loss) |
$ (62,029) |
$ 11,400 |
||
Other comprehensive income (loss), net of taxes: |
||||
Items that may be subsequently reclassified to profit or loss: |
||||
Effective portion of changes in fair |
||||
value of cash flow hedges |
425 |
3,538 |
||
Cost of hedging excluded from |
||||
cash flow hedges |
362 |
218 |
||
Tax impact of cash flow hedges |
(210) |
(1,001) |
||
Total other comprehensive income |
577 |
2,755 |
||
Total comprehensive income (loss) |
$ (61,452) |
$ 14,155 |
||
ROOTS CORPORATION
Consolidated Statement of Changes in Shareholders' Equity
(In thousands of Canadian dollars)
For the 52-week periods ended February 1, 2020 and February 2, 2019
Accumulated |
||||||
Retained |
other |
|||||
Share |
Contributed |
earnings |
comprehensive |
|||
February 1, 2020 |
capital |
surplus |
(deficit) |
income |
Total |
|
Balance, February 2, 2019 |
$ 196,853 |
$ 3,975 |
$ 13,608 |
$ 268 |
$ 214,704 |
|
Adjustment on adoption of IFRS 16 |
– |
– |
(1,267) |
– |
(1,267) |
|
Balance, February 3, 2019 |
$ 196,853 |
$ 3,975 |
$ 12,341 |
$ 268 |
$ 213,437 |
|
Net loss |
– |
– |
(62,029) |
– |
(62,029) |
|
Net gain from change in fair |
||||||
value of cash flow hedges, |
||||||
net of income taxes |
– |
– |
– |
577 |
577 |
|
Transfer of realized loss on cash |
||||||
flow hedges to inventories, net |
||||||
of income taxes |
– |
– |
– |
(961) |
(961) |
|
Share-based compensation |
– |
(518) |
– |
– |
(518) |
|
Issuance of shares |
50 |
(50) |
– |
– |
– |
|
Balance, February 1, 2020 |
$ 196,903 |
$ 3,407 |
$ (49,688) |
$ (116) |
$ 150,506 |
|
Accumulated |
||||||
other |
||||||
Share |
Contributed |
Retained |
comprehensive |
|||
February 2, 2019 |
capital |
surplus |
earnings |
income |
Total |
|
Balance, February 4, 2018 |
$ 195,994 |
$ 1,675 |
$ 2,208 |
$ (904) |
$ 198,973 |
|
Net income |
– |
– |
11,400 |
– |
11,400 |
|
Net gain from change in fair |
||||||
value of cash flow hedges, |
||||||
net of income taxes |
– |
– |
– |
2,755 |
2,755 |
|
Transfer of realized loss on cash |
||||||
flow hedges to inventories, net |
||||||
of income taxes |
– |
– |
– |
(1,583) |
(1,583) |
|
Share-based compensation |
– |
2,507 |
– |
– |
2,507 |
|
Issuance of shares |
859 |
(207) |
– |
– |
652 |
|
Balance, February 2, 2019 |
$ 196,853 |
$ 3,975 |
$ 13,608 |
$ 268 |
$ 214,704 |
|
ROOTS CORPORATION
Consolidated Statement of Cash Flows
(In thousands of Canadian dollars)
For the 52-week periods ended February 1, 2020 and February 2, 2019
February 1, |
February 2, |
||
2020 |
2019 |
||
Cash provided by (used in): |
|||
Operating activities: |
|||
Net income (loss) |
$ (62,029) |
$ 11,400 |
|
Items not involving cash: |
|||
Depreciation and amortization |
39,606 |
12,935 |
|
Share-based compensation expense (recovery) |
(518) |
2,507 |
|
Impairment of fixed assets and right-of-use assets |
22,398 |
1,375 |
|
Impairment of goodwill |
44,799 |
– |
|
Deferred lease costs (recovery) |
– |
(617) |
|
Amortization of lease intangibles |
– |
548 |
|
Interest expense |
15,567 |
5,171 |
|
Income taxes expense (recovery) |
(10,456) |
5,129 |
|
Gain on lease modification |
(520) |
– |
|
Interest paid |
(5,904) |
(4,620) |
|
Payment of interest on lease liabilities |
(9,048) |
– |
|
Taxes paid |
(2,200) |
(4,104) |
|
Change in non-cash operating working capital: |
|||
Accounts receivable |
(531) |
(207) |
|
Inventories |
9,381 |
(14,126) |
|
Prepaid expenses |
1,025 |
(863) |
|
Accounts payable and accrued liabilities |
(2,039) |
3,985 |
|
Deferred revenue |
513 |
851 |
|
40,044 |
19,364 |
||
Financing activities: |
|||
Issuance of long-term debt |
9,000 |
5,000 |
|
Long-term debt financing costs |
(163) |
(66) |
|
Repayment of long-term debt |
(4,984) |
(4,984) |
|
Finance lease payments |
– |
(361) |
|
Payment of principal on lease liabilities, net of tenant allowance |
(17,436) |
– |
|
Proceeds from issuance of shares |
– |
652 |
|
(13,583) |
241 |
||
Investing activities: |
|||
Additions to fixed assets |
(22,320) |
(37,695) |
|
Tenant allowance received |
– |
5,863 |
|
(22,320) |
(31,832) |
||
Increase (decrease) in cash |
4,141 |
(12,227) |
|
Cash, beginning of period |
(10,418) |
1,809 |
|
Cash and bank indebtedness, end of period |
$ (6,277) |
$ (10,418) |
|
SOURCE Roots Corporation
Investor Relations, Kristen Davies, [email protected], 416-781-3574 Ext. 4116
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