- Strong consolidated comparable sales, up 6.1% in the first
quarter:
-
- Canadian Tire up 7.1%, marking 20th consecutive
quarter of growth
- Mark's up 4.9%; SportChek up 3.4%
- Continued strong Financial Services GAAR growth of 9.3%;
revenue up 7.8%; and over two million active credit card
accounts
- Financial Services IBT was $112.4
million, up 15.8%
- Diluted earnings per share (EPS) was $1.12, down 4.8%
TORONTO, May 9, 2019 /CNW/ - Canadian Tire
Corporation, Limited (TSX:CTC, TSX:CTC.A) today released first
quarter results for the period ended March
30, 2019.
"Ending our winter season with exceptional sales performance
positions us well as we enter our second largest quarter of the
year," said Stephen Wetmore,
President and CEO, Canadian Tire Corporation. "Our first quarter
earnings are always focused on Financial Services, which delivered
strong growth in IBT of 15.8%."
CONSOLIDATED OVERVIEW
- Consolidated retail sales increased $91.2 million or 3.3% in the first quarter.
Excluding Petroleum, consolidated retail sales were up 6.3% over
the same period last year.
- Consolidated revenue increased $79.5
million, or 2.8%. Excluding Petroleum, consolidated revenue
increased $128 million, or 5.4% in
the quarter.
- Diluted EPS was $1.12 in the
quarter, a decrease of $0.06 per
share, or 4.8%.
RETAIL OVERVIEW
- The following financial results reflect Q1 2019 performance
compared to Q1 2018.
- Retail segment revenue increased 2.3%. Excluding Petroleum,
retail segment revenue increased 5.2%.
- Canadian Tire saw retail sales increase 7.4% and comparable
sales were up 7.1%.
- SportChek's retail sales increased 2.8% and comparable sales
increased 3.4%.
- Mark's retail sales grew 5.5% and comparable sales increased
4.9%.
- Helly Hansen revenue in the quarter was $140.8 million.
- Income before income taxes decreased $36.5 million.
CT REIT OVERVIEW
- As disclosed in the Q1 2019 CT
REIT earnings release on May 7, 2019,
CT REIT announced new investments totalling $33 million.
FINANCIAL SERVICES OVERVIEW
- In Q1 2019, gross average credit card receivables (GAAR) was up
9.3% over the prior year.
- Income before income taxes increased 15.8% in the first quarter
to $112.4 million.
CAPITAL EXPENDITURES
- Operating capital expenditures were $79.8 million in the first quarter, up from
$45.4 million in the first quarter of
2018.
- Total capital expenditures decreased $6.7 million in Q1 2019, to $106.9 million.
QUARTERLY DIVIDEND
- The Company has declared dividends payable to holders of Class
A Non-Voting Shares and Common Shares at a rate of $1.0375 per share payable on September 1, 2019 to shareholders of record as of
July 31, 2019. The dividend is
considered an "eligible dividend" for tax purposes.
SHARE REPURCHASE
- On November 8, 2018, the Company
announced its intention to repurchase a further $300 to $400
million of its Class A Non-Voting Shares, in excess of the
amount required for anti-dilutive purposes, by the end of fiscal
2019. As at March 30, 2019,
$292.4 million of such shares had
been repurchased.
NORMAL COURSE ISSUER BID
- On February 19, 2019, the Toronto
Stock Exchange accepted the Company's notice of intention to make a
normal course issuer bid to purchase up to 5.5 million Class A
Non-Voting Shares between March 2,
2019 and March 1, 2020.
To view a PDF version of Canadian Tire Corporation's full
quarterly earnings report please see:
http://files.newswire.ca/116/CTC_Combined_Q1_2019.pdf
FORWARD-LOOKING STATEMENTS
This press release contains
forward-looking information that reflects management's current
expectations related to matters such as future financial
performance and operating results of the Company. Forward-looking
statements are provided for the purposes of providing information
about management's current expectations and plans and allowing
investors and others to get a better understanding of our
anticipated financial position, results of operations and operating
environment. Readers are cautioned that such information may not be
appropriate for other purposes.
Certain statements other than statements of historical facts
included in this press release may constitute forward-looking
information, including but not limited to, statements concerning
the Company's intention to repurchase Class A Non-Voting Shares in
excess of the amount required for anti-dilutive purposes by the end
of 2019 under the heading "Share Repurchase".
By its very nature, forward-looking information requires us to
make assumptions and is subject to inherent risks and
uncertainties, which give rise to the possibility that the
Company's assumptions, estimates, analyses, beliefs and opinions
may not be correct and that the Company's expectations and plans
will not be achieved. Although the Company believes that the
forward-looking information in this press release is based on
information, assumptions and beliefs which are current, reasonable
and complete, this information is necessarily subject to a number
of factors, risks and uncertainties that could cause actual results
to differ materially from management's expectations and plans as
set forth in such forward-looking information.
For more information on the risks, uncertainties and assumptions
that could cause the Company's actual results to differ from
current expectations, refer to section 2.8 (Risk Factors) of our
Annual Information Form for fiscal 2018 and to sections 7.2.4
(Retail Segment Business Risks), 7.3.2 (CT REIT segment business
risks), 7.4.3 (Financial Services Segment Business Risks) and 12.0
(Risks and Risk Management) and all subsections thereunder of
our Management's Discussion and Analysis for the year ended
December 29, 2018, as well as the
Company's other public filings, available at www.sedar.com and at
https://investors.canadiantire.ca.
The forward-looking statements and information contained herein
are based on certain factors and assumptions as of the date hereof
and do not take into account the effect that transactions or
non-recurring or other special items announced or occurring after
the statements are made have on the Company's business. The Company
does not undertake to update any forward-looking information,
whether written or oral, that may be made from time to time by it
or on its behalf, to reflect new information, future events or
otherwise, except as is required by applicable securities laws.
CONFERENCE CALL
Canadian Tire will conduct a
conference call to discuss information included in this news
release and related matters at 8:00 a.m.
ET on May 9, 2019. The
conference call will be available simultaneously and in its
entirety to all interested investors and the news media through a
webcast at https://investors.canadiantire.ca and will be
available through replay at this website for 12 months.
ABOUT CANADIAN TIRE CORPORATION
Canadian Tire
Corporation, Limited, (TSX: CTC.A) (TSX: CTC) or "CTC", is a family
of businesses that includes a Retail segment, a Financial Services
division and CT REIT. Our retail business is led by Canadian Tire,
which was founded in 1922 and provides Canadians with products for
life in Canada across its Living,
Playing, Fixing, Automotive and Seasonal & Gardening divisions.
PartSource and Gas+ are key parts of the Canadian Tire network. The
Retail segment also includes Mark's, a leading source for casual
and industrial wear; Pro Hockey Life, a hockey specialty store
catering to elite players; and SportChek, Hockey Experts, Sports
Experts, National Sports, Intersport and Atmosphere, which offer
the best active wear brands. The approximately 1,700 retail and
gasoline outlets are supported and strengthened by our Financial
Services division and the tens of thousands of people employed
across Canada and around the world
by the Company and its local dealers, franchisees and petroleum
retailers. In addition, Canadian Tire Corporation owns and operates
Helly Hansen, a leading global brand in sportswear and workwear
based in Oslo, Norway. For more
information, visit Corp.CanadianTire.ca.
FOR MORE INFORMATION
Media: Jane Shaw, jane.shaw@cantire.com
Investors: Lisa Greatrix,
lisa.greatrix@cantire.com
SOURCE CANADIAN TIRE CORPORATION, LIMITED