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May 29, 2012
5:20pm
MONTREAL, May 29, 2012 /CNW Telbec/ - Sales for the first quarter ended
April 28, 2012 decreased 1% to $217,094,000 as compared with
$219,296,000 for the first quarter ended April 30, 2011. Same store
sales1 decreased 0.7%. The first quarter ended April 28, 2012 resulted in
weaker sales attributable to a difficult retail environment marked by
increased promotional activity. Other factors included the impact of
higher gasoline and food prices reducing consumer disposable income for
apparel. The Company's gross margin for the first quarter ended April
28, 2012 decreased to 64.6% from 65.8% for the first quarter ended
April 30, 2011, which was primarily attributable to the fluctuation in
the US dollar. In the first quarter ended April 28, 2012, adjusted
EBITDA1 decreased by $1,829,000 or 12.7% to $12,540,000 as compared with
$14,369,000 for the first quarter ended April 30, 2011. The Company
recorded a net loss for the first quarter ended April 28, 2012 of
$53,000 ($0.00 diluted loss per share) as compared with net earnings of
$624,000 ($0.01 diluted earnings per share) for the first quarter ended
April 30, 2011.
During the quarter, the Company opened 16 new stores, comprised of 4
Reitmans, 4 Smart Set, 1 RW & CO., 1 Thyme Maternity, 5 Penningtons and
1 Addition Elle. The Company closed 33 stores, comprised of 2
Reitmans, 1 Smart Set, 1 RW&CO., 3 Thyme Maternity, 3 Penningtons, 3
Addition Elle and 20 Cassis. Accordingly, at April 28, 2012, there
were 925 stores in operation, consisting of 364 Reitmans, 153 Smart
Set, 66 RW & CO., 74 Thyme Maternity, 154 Penningtons and 114 Addition
Elle, as compared with a total of 965 stores as at April 30, 2011.
Sales for the month of May (the four weeks ended May 26, 2012) decreased
1.7% with same store sales1 increasing 0.8%.
At the Board of Directors meeting held on May 29, 2012, a quarterly cash
dividend (constituting eligible dividends) of $0.20 per share on all
outstanding Class A non-voting and Common shares of the Company was
declared, payable July 26, 2012 to shareholders of record on July 12,
2012.
1Non-GAAP Financial Measures
In addition to discussing earnings in accordance with IFRS, this press
release provides adjusted EBITDA as a supplementary earnings measure,
which is defined as earnings before income taxes, dividend income,
interest income, realized gain on disposal of available-for-sale
financial assets, impairment losses on available-for-sale financial
assets, interest expense, depreciation, amortization and net impairment
losses related to property and equipment. The Company also discloses
same store sales, which are defined as sales generated by stores that
have been open for at least one year. The Company believes these
measures provide meaningful information on the Company's performance
and operating results. However, readers should know that these non-GAAP
financial measures have no standardized meaning as prescribed by IFRS
and may not be comparable to similar measures presented by other
companies. Accordingly, they should not be considered in isolation.
The following table reconciles adjusted EBITDA to (loss) earnings before
income taxes for the three months ended April 28, 2012 and April 30,
2011:
|
|
|
(Unaudited)
|
For the three months ended
|
|
|
April 28, 2012
|
April 30, 2011
|
|
(Loss) earnings before income taxes
|
$ (210,000)
|
$ 869,000
|
|
Dividend income
|
(874,000)
|
(880,000)
|
|
Interest income
|
(330,000)
|
(284,000)
|
|
Interest expense
|
157,000
|
179,000
|
|
Depreciation and amortization
|
13,797,000
|
14,485,000
|
|
ADJUSTED EBITDA
|
$ 12,540,000
|
$ 14,369,000
|
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. Such risks include but are not limited to: the
impact of general economic conditions, general conditions in the retail
industry, seasonality, weather and other risks included in public
filings of the Company. Consequently, actual future results may differ
materially from the anticipated results expressed in forward-looking
statements. The reader should not place undue reliance on the
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 unaudited condensed interim financial statements including
notes and Management's Discussion and Analysis for the first quarter
ended April 28, 2012 are available online at www.sedar.com.
Montreal, May 29, 2012
Jeremy H. Reitman
Chairman and Chief Executive Officer
Telephone: (514) 385-2630
REITMANS (CANADA) LIMITED
CONDENSED STATEMENTS OF EARNINGS
(Unaudited)
(in thousands of Canadian dollars except per share amounts)
|
|
|
|
|
|
|
|
For the three months ended
|
|
|
April 28, 2012
|
April 30, 2011
|
|
|
|
|
|
|
|
Sales
|
$
|
217,094
|
$
|
219,296
|
|
Cost of goods sold
|
|
76,778
|
|
74,941
|
|
Gross profit
|
|
140,316
|
|
144,355
|
|
Selling and distribution expenses
|
|
129,468
|
|
129,225
|
|
Administrative expenses
|
|
10,958
|
|
10,112
|
|
Results from operating activities
|
|
(110)
|
|
5,018
|
|
|
|
|
|
|
|
Finance income
|
|
1,204
|
|
1,164
|
|
Finance costs
|
|
1,304
|
|
5,313
|
|
(Loss) earnings before income taxes
|
|
(210)
|
|
869
|
|
|
|
|
|
|
|
Income tax (recovery) expense
|
|
(157)
|
|
245
|
|
|
|
|
|
|
|
Net (loss) earnings
|
$
|
(53)
|
$
|
624
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
Basic
|
$
|
0.00
|
$
|
0.01
|
|
|
Diluted
|
|
0.00
|
|
0.01
|
|
|
|
|
|
|
|
REITMANS (CANADA) LIMITED
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(in thousands of Canadian dollars)
|
|
|
|
|
|
For the three months ended
|
|
|
April 28, 2012
|
April 30, 2011
|
|
|
|
|
|
|
|
Net (loss) earnings
|
$
|
(53)
|
$
|
624
|
|
Other comprehensive income:
|
|
|
|
|
|
|
Net change in fair value of available-for-sale financial assets
(net of tax of $29; 2011 - $60)
|
|
(197)
|
|
401
|
|
|
|
|
|
|
|
Total comprehensive (loss) income
|
$
|
(250)
|
$
|
1,025
|
|
|
|
|
|
|
REITMANS (CANADA) LIMITED
CONDENSED BALANCE SHEETS
(Unaudited)
(in thousands of Canadian dollars)
|
|
|
|
|
|
April 28, 2012
|
April 30, 2011
|
January 28, 2012
|
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
138,187
|
$
|
176,871
|
$
|
196,835
|
|
|
Marketable securities
|
|
71,321
|
|
70,979
|
|
71,442
|
|
|
Trade and other receivables
|
|
3,783
|
|
4,214
|
|
3,033
|
|
|
Derivative financial asset
|
|
74
|
|
-
|
|
751
|
|
|
Income taxes recoverable
|
|
15,507
|
|
10,846
|
|
4,735
|
|
|
Inventories
|
|
102,625
|
|
99,066
|
|
78,285
|
|
|
Prepaid expenses
|
|
12,330
|
|
12,715
|
|
11,902
|
|
|
|
Total Current Assets
|
|
343,827
|
|
374,691
|
|
366,983
|
|
|
|
|
|
|
|
|
|
NON-CURRENT ASSETS
|
|
|
|
|
|
|
|
|
Property and equipment
|
|
191,577
|
|
189,487
|
|
184,221
|
|
|
Intangible assets
|
|
17,329
|
|
14,012
|
|
17,057
|
|
|
Goodwill
|
|
42,426
|
|
42,426
|
|
42,426
|
|
|
Deferred income taxes
|
|
23,198
|
|
19,438
|
|
23,174
|
|
|
|
Total Non-Current Assets
|
|
274,530
|
|
265,363
|
|
266,878
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
$
|
618,357
|
$
|
640,054
|
$
|
633,861
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
|
|
Trade and other payables
|
$
|
71,616
|
$
|
67,940
|
$
|
63,875
|
|
|
Derivative financial liability
|
|
914
|
|
-
|
|
1,505
|
|
|
Deferred revenue
|
|
13,557
|
|
13,870
|
|
22,278
|
|
|
Current portion of long-term debt
|
|
1,497
|
|
1,406
|
|
1,474
|
|
|
|
Total Current Liabilities
|
|
87,584
|
|
83,216
|
|
89,132
|
|
|
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES
|
|
|
|
|
|
|
|
|
Other payables
|
|
11,095
|
|
10,393
|
|
11,110
|
|
|
Deferred revenue
|
|
-
|
|
2,395
|
|
-
|
|
|
Deferred lease credits
|
|
16,768
|
|
18,112
|
|
17,317
|
|
|
Long-term debt
|
|
8,191
|
|
9,688
|
|
8,573
|
|
|
Pension liability
|
|
15,044
|
|
13,876
|
|
14,877
|
|
|
|
Total Non-Current Liabilities
|
|
51,098
|
|
54,464
|
|
51,877
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Share capital
|
|
39,890
|
|
31,426
|
|
39,890
|
|
|
Contributed surplus
|
|
5,348
|
|
6,291
|
|
5,158
|
|
|
Retained earnings
|
|
425,897
|
|
456,113
|
|
439,067
|
|
|
Accumulated other comprehensive income
|
|
8,540
|
|
8,544
|
|
8,737
|
|
|
|
Total Shareholders' Equity
|
|
479,675
|
|
502,374
|
|
492,852
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY
|
$
|
618,357
|
$
|
640,054
|
$
|
633,861
|
|
|
|
|
|
|
|
|
REITMANS (CANADA) LIMITED
CONDENSED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(Unaudited)
(in thousands of Canadian dollars)
|
| |
|
Share Capital
|
Contributed
Surplus
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income
|
Total
Shareholders'
Equity
|
|
Balance as at January 29, 2012
|
|
$
|
39,890
|
$
|
5,158
|
$
|
439,067
|
$
|
8,737
|
$
|
492,852
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation costs
|
|
|
-
|
|
190
|
|
-
|
|
-
|
|
190
|
|
Net loss
|
|
|
-
|
|
-
|
|
(53)
|
|
-
|
|
(53)
|
|
Dividends
|
|
|
-
|
|
-
|
|
(13,117)
|
|
-
|
|
(13,117)
|
|
Net change in fair value of available-for-sale financial assets (net of
tax of $29)
|
|
|
-
|
|
-
|
|
-
|
|
(197)
|
|
(197)
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at April 28, 2012
|
|
$
|
39,890
|
$
|
5,348
|
$
|
425,897
|
$
|
8,540
|
$
|
479,675
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at January 30, 2011
|
|
$
|
29,614
|
$
|
6,266
|
$
|
468,777
|
$
|
8,143
|
$
|
512,800
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Cash consideration on exercise of share options
|
|
|
1,443
|
|
-
|
|
-
|
|
-
|
|
1,443
|
|
Ascribed value credited to share capital from exercise of share options
|
|
|
369
|
|
(369)
|
|
-
|
|
-
|
|
-
|
|
Share-based compensation costs
|
|
|
-
|
|
394
|
|
-
|
|
-
|
|
394
|
|
Net earnings
|
|
|
-
|
|
-
|
|
624
|
|
-
|
|
624
|
|
Dividends
|
|
|
-
|
|
-
|
|
(13,288)
|
|
-
|
|
(13,288)
|
|
Net change in fair value of available-for-sale financial assets (net of
tax of $60)
|
|
|
-
|
|
-
|
|
-
|
|
401
|
|
401
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at April 30, 2011
|
|
$
|
31,426
|
$
|
6,291
|
$
|
456,113
|
$
|
8,544
|
$
|
502,374
|
| |
|
|
|
|
|
|
|
|
|
|
|
REITMANS (CANADA) LIMITED
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands of Canadian dollars)
|
|
|
|
|
|
For the three months ended
|
|
|
April 28, 2012
|
April 30, 2011
|
|
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES
|
|
|
|
|
|
|
Net (loss) earnings
|
$
|
(53)
|
$
|
624
|
|
|
Adjustments for:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
13,797
|
|
14,485
|
|
|
|
Share-based compensation costs
|
|
190
|
|
394
|
|
|
|
Amortization of deferred lease credits
|
|
(1,194)
|
|
(1,214)
|
|
|
|
Deferred lease credits
|
|
645
|
|
315
|
|
|
|
Pension contribution
|
|
(163)
|
|
(129)
|
|
|
|
Pension expense
|
|
330
|
|
379
|
|
|
|
Net change in fair value of derivatives
|
|
86
|
|
-
|
|
|
|
Foreign exchange loss
|
|
623
|
|
2,931
|
|
|
|
Interest and dividend income, net
|
|
(1,047)
|
|
(985)
|
|
|
|
Interest paid
|
|
(157)
|
|
(179)
|
|
|
|
Interest received
|
|
368
|
|
322
|
|
|
|
Dividends received
|
|
868
|
|
862
|
|
|
|
Income tax (recovery) expense
|
|
(157)
|
|
245
|
|
|
|
14,136
|
|
18,050
|
|
|
Changes in:
|
|
|
|
|
|
|
|
Trade and other receivables
|
|
(782)
|
|
(1,368)
|
|
|
|
Inventories
|
|
(24,340)
|
|
(25,865)
|
|
|
|
Prepaid expenses
|
|
(428)
|
|
(224)
|
|
|
|
Trade and other payables
|
|
6,546
|
|
6,143
|
|
|
|
Deferred revenue
|
|
(8,721)
|
|
(5,953)
|
|
|
Cash used in operating activities
|
|
(13,589)
|
|
(9,217)
|
|
|
Income taxes paid
|
|
(10,610)
|
|
(15,566)
|
|
|
Net cash flows used in operating activities
|
|
(24,199)
|
|
(24,783)
|
|
|
|
|
|
|
|
CASH FLOWS USED IN INVESTING ACTIVITIES
|
|
|
|
|
|
|
Purchases of marketable securities
|
|
(105)
|
|
(105)
|
|
|
Additions to property and equipment and intangible assets
|
|
(20,245)
|
|
(13,162)
|
|
|
Cash flows used in investing activities
|
|
(20,350)
|
|
(13,267)
|
|
|
|
|
|
|
|
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
|
|
|
|
|
|
|
Dividends paid
|
|
(13,117)
|
|
(13,288)
|
|
|
Repayment of long-term debt
|
|
(359)
|
|
(337)
|
|
|
Proceeds from exercise of share options
|
|
-
|
|
1,443
|
|
|
Cash flows used in financing activities
|
|
(13,476)
|
|
(12,182)
|
|
|
|
|
|
|
|
FOREIGN EXCHANGE LOSS ON CASH HELD IN FOREIGN CURRENCY
|
|
(623)
|
|
(2,931)
|
|
NET DECREASE IN CASH AND CASH EQUIVALENTS
|
|
(58,648)
|
|
(53,163)
|
|
CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD
|
|
196,835
|
|
230,034
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS, END OF THE PERIOD
|
$
|
138,187
|
$
|
176,871
|
|
|
|
|
|
|
For further information: Jeremy H. Reitman
Chairman and Chief Executive Officer Telephone: (514) 385-2630
|