Reitmans (Canada) Limited Announces Year-End ResultsMar 28, 2007
Financial statements are attached.
MONTREAL, March 28 /CNW Telbec/ - Sales for the year ended February 3,
2007 (53 weeks) increased 7.6% to $1,042,509,000 as compared with $969,258,000
for the year ended January 28, 2006 (52 weeks). Comparable store sales for the
53 weeks increased 2.9%. Operating earnings before depreciation and
amortization (EBITDA(1)) increased 20.1% to $186,812,000 as compared with
$155,610,000 last year. Net earnings and diluted EPS, after recording a charge
for retroactive Québec income tax assessments, including interest, of
$20,054,000 or $0.28 per share decreased to $82,469,000 or $1.15 per share as
compared with $84,889,000 or $1.19 per share last year. Excluding the
retroactive Québec income tax assessments, net earnings and diluted EPS for
the year would have increased 20.8% to $102,523,000 or $1.43 per share.
Sales for the fourth quarter ended February 3, 2007 (14 weeks) increased
10.6% to $282,110,000 as compared with $255,128,000 for the fourth quarter
ended January 28, 2006 (13 weeks). Comparable store sales for the fourteen
weeks increased 1.1% in the period. Operating earnings before depreciation and
amortization (EBITDA(1)) for the period increased 27.9% to $41,921,000 as
compared with $32,778,000 last year. Net earnings and diluted EPS, after
recording an additional interest charge for retroactive Québec income tax
assessments of $476,000 or $0.01 per share increased to $22,957,000 or $0.32
per share as compared to $16,760,000 or $0.23 per share for the period last
year. Excluding the effect of the retroactive Québec income tax assessments,
net earnings and diluted EPS for the period would have increased 39.8% to
$23,433,000 or $0.33 per share.
During the year, the Company opened 74 new stores and closed 41.
Accordingly, at year-end, there were 920 stores in operation, consisting of
355 Reitmans, 158 Smart Set, 45 RW & CO., 69 Thyme Maternity, 158 Penningtons,
125 Addition Elle and 10 Cassis as compared with a total of 887 stores last
year.
At the Board of Directors meeting held on March 28, 2007, a quarterly
cash dividend (constituting eligible dividends) of $0.16 per share on all
outstanding Class A non-voting and Common shares of the Company was declared,
payable April 26, 2007 to shareholders of record on April 16, 2007.
Montreal, March 28, 2007
Jeremy H. Reitman, President
Telephone: (514) 385-2630
Corporate Website: www.reitmans.ca
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.
(1) This release includes reference to certain Non-GAAP Financial
Measures such as operating earnings before depreciation and amortization and
EBITDA, which are defined as earnings before interest, taxes, depreciation and
amortization and investment income. The Company believes such measures provide
meaningful information on the Company's performance and operating results.
However, readers should know that such Non-GAAP Financial Measures have no
standardized meaning as prescribed by GAAP and may not be comparable to
similar measures presented by other companies. Accordingly, they should not be
considered in isolation.
CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
(in thousands except per share amounts)
For the For the
twelve months ended three months ended
February 3, January 28, February 3, January 28,
2007 2006 2007 2006
Sales $ 1,042,509 $ 969,258 $ 282,110 $ 255,128
Cost of goods
sold and selling,
general and
administrative
expenses 855,697 813,648 240,189 222,350
------------ ------------ ------------ ------------
186,812 155,610 41,921 32,778
Depreciation and
amortization 44,946 38,564 12,448 10,012
------------ ------------ ------------ ------------
Operating earnings
before the
undernoted 141,866 117,046 29,473 22,766
Investment income 12,556 9,097 3,178 1,647
Interest on
long-term debt 1,056 1,132 258 281
------------ ------------ ------------ ------------
Earnings before
income taxes 153,366 125,011 32,393 24,132
Income taxes
Current 52,693 40,830 8,911 7,664
Future (1,850) (708) 49 (292)
------------ ------------ ------------ ------------
50,843 40,122 8,960 7,372
Québec tax
assessments -
current 20,054 - 476 -
------------ ------------ ------------ ------------
70,897 40,122 9,436 7,372
------------ ------------ ------------ ------------
Net earnings $ 82,469 $ 84,889 $ 22,957 $ 16,760
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Earnings per share:
Basic $ 1.17 $ 1.22 $ 0.32 $ 0.24
Diluted 1.15 1.19 0.32 0.23
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS (Unaudited)
(in thousands)
For the For the
twelve months ended three months ended
February 3, January 28, February 3, January 28,
2007 2006 2007 2006
Balance at
beginning of
the period $ 370,360 $ 316,191 $ 399,597 $ 363,371
Net earnings 82,469 84,889 22,957 16,760
------------ ------------ ------------ ------------
452,829 401,080 422,554 380,131
Deduct:
Dividends 40,893 29,345 11,341 8,396
Premium on
purchase of
Class A
non-voting
shares 723 1,375 - 1,375
------------ ------------ ------------ ------------
Balance at end
of the period $ 411,213 $ 370,360 $ 411,213 $ 370,360
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(in thousands)
For the For the
twelve months ended three months ended
February 3, January 28, February 3, January 28,
2007 2006 2007 2006
CASH FLOWS FROM
OPERATING
ACTIVITIES
Net earnings $ 82,469 $ 84,889 $ 22,957 $ 16,760
Adjustments for:
Depreciation
and
amortization 44,946 38,564 12,448 10,012
Future
income taxes (1,850) (708) 49 (292)
Stock-based
compensation 1,314 2,100 330 437
Amortization
of deferred
licensing
revenue - (167) - (17)
Amortization
of deferred
lease credits (4,042) (3,652) (1,071) (958)
Deferred lease
credits 5,875 4,941 1,638 1,566
Pension expense 1,800 997 792 997
Pension
contribution - (133) - (133)
(Gain) loss
on sale of
marketable
securities (2,289) (2,287) (9) 371
Changes in non-cash
working capital 17,206 (11,385) 8,036 24,582
------------ ------------ ------------ ------------
145,429 113,159 45,170 53,325
CASH FLOWS USED
IN INVESTING
ACTIVITIES
Purchases of
marketable
securities (4,170) (12,632) (188) (5,506)
Proceeds on
sale of
marketable
securities 13,916 20,982 146 1,993
Additions to
capital assets (63,152) (58,669) (16,200) (17,946)
------------ ------------ ------------ ------------
(53,406) (50,319) (16,242) (21,459)
CASH FLOWS USED
IN FINANCING
ACTIVITIES
Dividends paid (40,893) (29,345) (11,341) (8,396)
Purchase of
Class A
non-voting
shares for
cancellation (735) (1,401) - (1,401)
Repayment of
long-term debt (1,010) (1,124) (258) (270)
Issue of
share capital 3,707 2,490 2,708 1,147
------------ ------------ ------------ -----------
(38,931) (29,380) (8,891) (8,920)
NET INCREASE IN
CASH AND CASH
EQUIVALENTS 53,092 33,460 20,037 22,946
CASH AND CASH
EQUIVALENTS,
BEGINNING OF
THE PERIOD 135,399 101,939 168,454 112,453
------------ ------------ ------------ ------------
CASH AND CASH
EQUIVALENTS,
END OF
THE PERIOD $ 188,491 $ 135,399 $ 188,491 $ 135,399
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Cash and cash equivalents consist of cash balances with banks and
investments in short-term deposits.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(in thousands)
February 3, January 28,
2007 2006
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 188,491 $ 135,399
Accounts receivable 3,439 3,135
Merchandise inventories 61,834 66,445
Prepaid expenses 21,405 7,471
------------ -----------
Total Current Assets 275,169 212,450
INVESTMENTS 52,675 60,132
CAPITAL ASSETS 226,734 206,184
GOODWILL 42,426 42,426
FUTURE INCOME TAXES 3,407 1,536
ACCRUED PENSION ASSET - 505
------------ ------------
$ 600,411 $ 523,233
------------ ------------
------------ ------------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued items $ 85,317 $ 81,784
Income taxes payable 40,289 14,645
Future income taxes 248 -
Current portion of long-term debt 1,076 1,010
------------ ------------
Total Current Liabilities 126,930 97,439
DEFERRED LEASE CREDITS 20,858 19,025
LONG-TERM DEBT 15,097 16,173
FUTURE INCOME TAXES 112 339
ACCRUED PENSION LIABILITY 1,295 -
SHAREHOLDERS' EQUITY
Share capital 21,323 17,374
Contributed surplus 3,583 2,523
Retained earnings 411,213 370,360
------------ ------------
Total Shareholders' Equity 436,119 390,257
------------ ------------
$ 600,411 $ 523,233
------------ ------------
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%SEDAR: 00002316EF
For further information: Jeremy H. Reitman, President, (514) 385-2630; www.reitmans.ca
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