TORONTO, Dec. 6, 2019 /CNW/
- Roots ("Roots," "Roots Canada" or the "Company")
(TSX: ROOT), a premium outdoor lifestyle brand, today announced its
financial results for its third quarter ended November 2, 2019 ("Q3 2019"). 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".
Third Quarter Fiscal 2019 Highlights
- Total sales of $86.4 million,
compared to $87.0 million in the
third quarter of fiscal 2018 ("Q3 2018")
-
- Direct-to-Consumer ("DTC") sales of $73.9 million, up 4.6% from $70.7 million in Q3 2018
- Comparable Sales Growth of 3.0%
- Gross margin of 54.9%, compared to 55.1% in Q3 2018
-
- Adjusted DTC Gross Margin of 59.3%, compared to 62.0% in Q3
2018
- Selling, general and administrative expenses of $40.7 million, compared to $42.5 million in Q3 2018
- Adjusted EBITDA of $10.6 million,
up 3.5% from $10.2 million in Q3
2018
- Basic Earnings per Share of $0.05, compared to $0.07 per share in Q3 2018, and Adjusted Net
Income per Share of $0.10, compared
to $0.11 per share in Q3 2018
- Ended the quarter with 115 corporate-retail stores in
Canada and seven in the United States
- Ended the quarter with 114 partner-operated stores in
Taiwan, 35 in China and one in Hong Kong
"Despite delivering Comparable Sales Growth for the quarter, our
overall business performed below our expectations," said
Jim Gabel, President and Chief
Executive Officer of Roots. "We have realized operational
improvements at our new distribution centre; however, we continue
to face inefficiencies there that are placing downward pressure on
earnings. Our new U.S. stores are performing well-below
expectations, and macro-economic headwinds continue to negatively
affect our Asia business. As a
result of these factors, in addition to Adjusted EBITDA and
Adjusted Net Income, we now expect fiscal 2019 sales to fall below
our previously disclosed target range. While the business is
currently experiencing these operational challenges, we continue to
believe that the brand is resonating well with consumers. In
addition, free cash flow for the quarter improved significantly
compared to the same period last year."
Summary of Third Quarter Fiscal 2019 Financial
Results
Sales
Total Q3 2019 sales were $86.4 million, down from total sales of
$87.0 million in Q3 2018, reflecting
a $3.2 million increase in DTC sales
(corporate retail store and eCommerce sales) offset by a
$3.8 million decrease in 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).
Q3 2019 DTC sales were $73.9
million, up 4.6% from $70.7
million in Q3 2018, predominantly driven by Comparable Sales
Growth of 3.0%. Roots renovated three stores and relocated and
expanded four stores since Q3 2018, and ended Q3 2019 with 122
corporate-retail stores, a net reduction of three stores as
compared to Q3 2018.
Partners and Other sales for Q3 2019 were $12.4 million, down 23.5% from $16.3 million in Q3 2018. The year-over-year
decline was due to the early Q2 2019 delivery of certain orders to
the Company's operating partner in Asia that were initially planned for Q3 2019,
as well as macro-economic and geopolitical headwinds affecting the
Asian markets that the Company's partner currently operates
within.
Gross Profit
Total gross profit for Q3 2019 was
$47.4 million, a 1.1% decrease from
$47.9 million in Q3 2018.
Q3 2019 Adjusted DTC gross profit was $43.9 million, essentially flat with $43.8 million in Q3 2018. Q3 2019 Adjusted DTC
Gross Margin was 59.3%, down 267 basis points from a Q3 2018
Adjusted DTC Gross Margin of 62.0%. The year-over-year Adjusted DTC
Gross Margin decline primarily reflects additional costs related to
the Company's move to its new integrated distribution centre, the
transition to in-house fulfillment of all eCommerce orders in
October 2019, as well as foreign
exchange headwinds.
Q3 2019 Partners and Other gross profit was $3.8 million, down 6.1% from $4.1 million in Q3 2018.
Selling, general and administrative expenses
(SG&A)
Selling, general and administrative expenses
for Q3 2019 were $40.7 million, down
4.2% from $42.5 million in Q3 2018.
Excluding the impact of IFRS 16, Q3 2019 SG&A was $42.3 million. Q3 2019 SG&A included
incremental costs to support a larger total store fleet square
footage and larger distribution centre, costs resulting from higher
omni-channel sales, as well as one-time distribution centre
transition costs including continued use of a third-party online
order distribution facility for approximately two months of the
quarter. These areas of increased expense were largely offset by
savings related to store wage optimization and temporary vacancies
in certain senior leadership roles.
Adjusted EBITDA, Net Income & Adjusted Net
Income
Adjusted EBITDA (which excludes the impact of
IFRS 16) for Q3 2019 was $10.6
million, up 3.5% from $10.2
million Q3 2018. Q3 2019 net income was $2.0 million, or $0.05 Basic Earnings per Share, down from
$2.8 million, or $0.07 Basic Earnings per Share in Q3 2018. In the
quarter, the Company recorded an income tax expense of $0.6 million, compared to an expense of
$1.3 million in Q3 2018, with an
effective income tax expense rate of 22.0%, down from 31.4% in Q3
2018. Q3 2019 Adjusted Net Income (which excludes the impact of
IFRS 16) was $4.1 million, or
$0.10 per share, compared to
$4.7 million, or $0.11 per share, in Q3 2018.
Q3 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 Q3 2019 IFRS 16 impact to SG&A was a
decrease of $1.6 million; the impact
to interest expense was an increase of $2.3
million; and the decrease to deferred tax expense was
$0.2 million, resulting in a
$0.5 million decrease in net income.
Both Adjusted EBITDA and Adjusted Net Income for Q3 2019 exclude
the impact of IFRS 16. Through the remainder of fiscal 2019, Roots
will continue to provide adjusted results to accurately compare
fiscal 2019 quarterly and annual performance to the same periods in
fiscal 2018.
Fiscal 2019 Outlook:
For fiscal 2019 fourth
quarter-to-date, the Company is generating positive Comparable
Sales Growth. However, given the compressed holiday selling
season and the current operational headwinds the Company is facing,
Roots expects:
- Sales below the previously disclosed range of $358 to $375
million;
- Adjusted EBITDA below the previously disclosed range of
$46 to $50
million; and
- Adjusted Net Income below the previously disclosed range of
$20 to $24
million.
Management Change
Today, Roots also announced the
resignation of the Company's Chief Merchant, Nancy Lepler, effective immediately. Ms. Lepler
is leaving for personal reasons. The Company will immediately
commence a search for Ms. Lepler's replacement.
Conference Call and Webcast Information
Roots will
hold a conference call to discuss the Company's fiscal 2019 third
quarter results on December 6, 2019
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: 7188274. Please dial-in 15 minutes prior
to the call to secure a line. The conference call will be archived
for replay until December 13, 2019 at
midnight and can be accessed by dialing 416-849-0833 or
1-855-859-2056 and entering replay passcode: 7188274.
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 Interim Consolidated Financial Statements and the
Company's Management's Discussion and Analysis of Financial
Condition and Results of Operations for the Third Quarter ended
November 2, 2019 on the Company's
investor website at https://investors.roots.com and on SEDAR
at www.SEDAR.com.
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 that embody a
comfortable cabin-meets-city style 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 at November 2,
2019, we had 115 corporate-retail stores in Canada, seven corporate-retail stores in
the United States, 114
partner-operated stores in Taiwan,
35 partner-operated stores in China, one partner-operated store 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 Adjusted 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
Interim Condensed Consolidated Statement of Financial Position
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
|
|
|
|
|
Assets
|
|
As at November
2,
2019
|
|
As at February 2,
2019
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash
|
$
|
453
|
$
|
1,991
|
|
Accounts receivable,
net
|
|
7,712
|
|
6,627
|
|
Inventories
|
|
70,373
|
|
49,533
|
|
Prepaid
expenses
|
|
4,460
|
|
6,443
|
|
Income taxes
recoverable
|
|
2,257
|
|
–
|
|
Derivative
assets
|
|
–
|
|
366
|
|
Total current
assets
|
|
85,255
|
|
64,960
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
Loan
receivable
|
|
562
|
|
562
|
|
Lease
receivable
|
|
1,590
|
|
–
|
|
Fixed
assets
|
|
75,181
|
|
64,163
|
|
Right-of-use
assets
|
|
135,589
|
|
–
|
|
Intangible
assets
|
|
193,769
|
|
198,724
|
|
Goodwill
|
|
52,705
|
|
52,705
|
|
Total non-current
assets
|
|
459,396
|
|
316,154
|
|
|
|
|
|
Total
assets
|
$
|
544,651
|
$
|
381,114
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Bank
indebtedness
|
$
|
1,809
|
$
|
12,409
|
|
Accounts payable and
accrued liabilities
|
|
34,628
|
|
22,291
|
|
Deferred
revenue
|
|
4,398
|
|
5,498
|
|
Income taxes
payable
|
|
–
|
|
6,445
|
|
Derivative
liabilities
|
|
485
|
|
–
|
|
Current portion of
lease liabilities
|
|
29,566
|
|
–
|
|
Current portion of
long-term debt
|
|
4,984
|
|
4,984
|
|
Total current
liabilities
|
|
75,870
|
|
51,627
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
Deferred tax
liabilities
|
|
22,501
|
|
22,761
|
|
Deferred lease
costs
|
|
–
|
|
10,063
|
|
Finance lease
obligation
|
|
–
|
|
504
|
|
Long-term portion of
lease liabilities
|
|
123,781
|
|
–
|
|
Long-term
debt
|
|
126,611
|
|
80,031
|
|
Other non-current
liabilities
|
|
–
|
|
1,424
|
|
Total non-current
liabilities
|
|
272,893
|
|
114,783
|
Total
liabilities
|
|
348,763
|
|
166,410
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
Share
capital
|
|
196,903
|
|
196,853
|
|
Contributed
surplus
|
|
4,452
|
|
3,975
|
|
Accumulated other
comprehensive income (loss)
|
|
(356)
|
|
268
|
|
Retained earnings
(deficit)
|
|
(5,111)
|
|
13,608
|
Total shareholders'
equity
|
|
195,888
|
|
214,704
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
544,651
|
$
|
381,114
|
On behalf of the Board of Directors:
"Erol
Uzumeri"
Director
"Richard P.
Mavrinac"
Director & Audit Committee Chair
ROOTS CORPORATION
Interim Condensed Consolidated
Statement of Net Income (Loss)
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
For the 13 and 39 week periods ended November 2, 2019 and November 3, 2018
|
|
|
|
|
|
November 2,
2019
(13 weeks)
|
November 3,
2018
(13 weeks)
|
November 2,
2019
(39 weeks)
|
November 3, 2018
(39 weeks)
|
Sales
|
$
|
86,377
|
$
|
86,979
|
$
|
202,412
|
$
|
198,205
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
38,998
|
|
39,049
|
|
95,513
|
|
88,060
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
47,379
|
|
47,930
|
|
106,899
|
|
110,145
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
40,697
|
|
42,465
|
|
118,863
|
|
115,014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
interest expense and income
|
|
|
|
|
|
|
|
|
taxes expense
(recovery)
|
|
6,682
|
|
5,465
|
|
(11,964)
|
|
(4,869)
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
4,159
|
|
1,393
|
|
11,605
|
|
3,736
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
|
2,523
|
|
4,072
|
|
(23,569)
|
|
(8,605)
|
|
|
|
|
|
|
|
|
|
Income taxes expense
(recovery)
|
|
554
|
|
1,277
|
|
(6,117)
|
|
(1,729)
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
1,969
|
$
|
2,795
|
$
|
(17,452)
|
$
|
(6,876)
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share
|
$
|
0.05
|
$
|
0.07
|
$
|
(0.41)
|
$
|
(0.16)
|
Diluted earnings
(loss) per share
|
$
|
0.05
|
$
|
0.07
|
$
|
(0.41)
|
$
|
(0.16)
|
|
|
|
|
|
|
|
|
|
ROOTS CORPORATION
Interim Condensed Consolidated Statement of Comprehensive Income
(Loss)
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
For the 13 and 39 week periods ended November 2, 2019 and November 3, 2018
|
|
|
|
|
|
November 2,
2019
(13
weeks)
|
November 3,
2018
(13
weeks)
|
November 2,
2019
(39 weeks)
|
November 3,
2018
(39
weeks)
|
Net income
(loss)
|
$
|
1,969
|
$
|
2,795
|
$
|
(17,452)
|
$
|
(6,876)
|
|
|
|
|
|
|
|
|
|
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
|
|
(398)
|
|
419
|
|
112
|
|
3,517
|
Cost of hedging
excluded from
|
|
|
|
|
|
|
|
|
cash flow
hedges
|
|
121
|
|
54
|
|
359
|
|
178
|
Tax impact of cash
flow hedges
|
|
74
|
|
(126)
|
|
(125)
|
|
(984)
|
|
|
|
|
|
|
|
|
|
Total comprehensive
income
(loss)
|
$
|
1,766
|
$
|
3,142
|
$
|
(17,106)
|
$
|
(4,165)
|
ROOTS CORPORATION
Interim Condensed Consolidated Statement of Changes in
Shareholders' Equity
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
For the 39 week periods ended November 2,
2019 and November 3, 2018
|
|
|
|
|
|
|
|
|
|
|
November 2,
2019 (39 weeks)
|
|
Share
capital
|
|
Contributed
surplus
|
|
Retained
earnings
(deficit)
|
|
Accumulated
other
comprehensive
income (loss)
|
|
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
|
|
–
|
|
–
|
|
(17,452)
|
|
–
|
|
(17,452)
|
|
|
|
|
|
|
|
|
|
|
|
Net gain from
change
|
|
|
|
|
|
|
|
|
|
|
in fair value of cash
flow hedges,
net of income taxes
|
|
–
|
|
–
|
|
–
|
|
346
|
|
346
|
|
|
|
|
|
|
|
|
|
|
|
Transfer of realized
gain on cash
|
|
|
|
|
|
|
|
|
|
|
flow hedges to
inventories, net
of income taxes
|
|
–
|
|
–
|
|
–
|
|
(970)
|
|
(970)
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
–
|
|
527
|
|
–
|
|
–
|
|
527
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of
shares
|
|
50
|
|
(50)
|
|
–
|
|
–
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
Balance, November 2,
2019
|
$
|
196,903
|
$
|
4,452
|
$
|
(5,111)
|
$
|
(356)
|
$
|
195,888
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
November 3, 2018 (39
weeks)
|
|
Share
capital
|
|
Contributed
surplus
|
|
Retained
earnings
(deficit)
|
|
Accumulated
other
comprehensive
income (loss)
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Balance, February 4,
2018
|
$
|
195,994
|
$
|
1,675
|
$
|
2,208
|
$
|
(904)
|
$
|
198,973
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
–
|
|
–
|
|
(6,876)
|
|
–
|
|
(6,876)
|
|
|
|
|
|
|
|
|
|
|
|
Net gain from
change
|
|
|
|
|
|
|
|
|
|
|
in fair value of cash
flow hedges,
net of income taxes
|
|
–
|
|
–
|
|
–
|
|
2,710
|
|
2,710
|
|
|
|
|
|
|
|
|
|
|
|
Transfer of realized
gain on cash
|
|
|
|
|
|
|
|
|
|
|
flow hedges to
inventories, net
of income taxes
|
|
–
|
|
–
|
|
–
|
|
(1,083)
|
|
(1,083)
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
–
|
|
1,985
|
|
–
|
|
–
|
|
1,985
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of
shares
|
|
859
|
|
(206)
|
|
–
|
|
–
|
|
653
|
|
|
|
|
|
|
|
|
|
|
|
Balance, November 3,
2018
|
$
|
196,853
|
$
|
3,454
|
$
|
(4,668)
|
$
|
723
|
$
|
196,362
|
ROOTS CORPORATION
Interim Condensed Consolidated
Statement of Cash Flows
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
For the 39 week periods ended November 2,
2019 and November 3, 2018
|
|
|
|
November 2,
2019
|
November 3,
2018
|
|
(39
weeks)
|
(39 weeks)
|
Cash provided from
(used in):
|
|
|
|
|
|
Operating
activities:
|
|
|
|
Net loss
|
$
|
(17,452)
|
$
|
(6,876)
|
|
|
Items not involving
cash:
|
|
|
|
|
Depreciation and
amortization
|
29,100
|
9,130
|
|
|
Share-based
compensation expense
|
527
|
1,985
|
|
|
Deferred lease
recovery
|
–
|
(565)
|
|
|
Amortization of lease
intangibles
|
–
|
407
|
|
|
Interest
expense
|
11,605
|
3,736
|
|
|
Income taxes
recovery
|
(6,117)
|
(1,729)
|
|
|
Gain on lease
modification
|
(457)
|
–
|
|
Interest
paid
|
(4,345)
|
(3,310)
|
|
Payment of interest
on lease liabilities
|
(6,787)
|
–
|
|
Taxes paid
|
(2,159)
|
(2,036)
|
|
Change in working
capital:
|
|
|
|
|
Accounts
receivable
|
(1,085)
|
(3,551)
|
|
|
Inventories
|
(20,840)
|
(31,979)
|
|
|
Prepaid
expenses
|
1,983
|
(1,111)
|
|
|
Accounts payable and
accrued liabilities
|
12,337
|
8,963
|
|
|
Deferred
revenue
|
(1,100)
|
(532)
|
|
(4,790)
|
(27,468)
|
|
|
|
Financing
activities:
|
|
|
|
|
Issuance of long-term
debt
|
50,000
|
40,000
|
|
|
Long-term debt
financing costs
|
(163)
|
(66)
|
|
|
Repayment of
long-term debt
|
(3,737)
|
(3,737)
|
|
|
Finance lease
payments
|
–
|
(282)
|
|
|
Payment of principal
on lease liabilities, net of tenant allowance
|
(12,775)
|
–
|
|
|
Proceeds from
issuance of shares
|
–
|
653
|
|
33,325
|
36,568
|
|
|
|
Investing
activities:
|
|
|
|
|
Additions to fixed
assets
|
(19,473)
|
(28,997)
|
|
|
Tenant allowance
received
|
–
|
6,034
|
|
(19,473)
|
(22,963)
|
|
|
|
Increase (decrease)
in cash
|
9,062
|
(13,863)
|
|
|
|
Cash and bank
indebtedness, beginning of period
|
(10,418)
|
1,809
|
|
|
|
Cash and bank
indebtedness, end of period
|
$
|
(1,356)
|
$
|
(12,054)
|
SOURCE Roots Corporation