MONTREAL, Dec. 14,
2023 /CNW/ - Reitmans (Canada) Limited ("RCL" or the "Company")
(TSXV: RET) (TSXV: RET-A), Canada's leading specialty apparel retailer,
announces its results for the third quarter of fiscal 2024. Unless
otherwise indicated, all comparisons of results for the 13 weeks
ended October 28, 2023 ("third
quarter of 2024") are against results for the 13 weeks ended
October 29, 2022 ("third quarter of
2023") and all comparisons of results for the 39 weeks ended
October 28, 2023 ("year to date
fiscal 2024") are against results for the 39 weeks ended
October 29, 2022 ("year to date
fiscal 2023"). All amounts are in Canadian dollars.
The Company continued to perform well in the third quarter of
2024, although below the results of the third quarter of 2023,
which benefitted from the Company's exceptional performance aided
by improved market conditions with pent-up demand following the
easing of pandemic-related restrictions. The current economic
environment necessitated higher promotional activity as Canadian
consumers cautiously managed their discretionary spending budgets.
Results continued to be negatively impacted by unfavourable foreign
exchange on U.S. dollar denominated merchandise purchases.
"Our Fall styles resonated well with our customers in all three
brands, despite the fact that the economic headwinds and warmer
than usual weather impacted our traffic. We also are pleased with
strong results in two key strategic categories of men's fashion at
RW&CO. and HYBA activewear at Reitmans", said Andrea Limbardi, President and Chief Executive
Officer of RCL. "Our strong balance sheet and focus on our
long-term strategic roadmap to deliver modernization in digital
technology and in our distribution centre, continue to progress
positively. In the third quarter, we launched a new robotics system
in our distribution centre, significantly speeding up processing
times. As well, we are on schedule to rollout a nation-wide
point-of-sale system in our 400+ stores across Canada in 2024. RCL is well positioned, with
our strong customer loyalty and financial standing, to deliver
long-term value to our shareholders."
Third Quarter of 2024
- Net revenues were $193.4
million compared to $206.2
million for the third quarter of 2023
- Net earnings were $5.3 million
compared to $14.6 million for
the third quarter of 2023
Year to date fiscal 2024
- Net revenues were $573.7
million compared to $590.4
million for the year to date fiscal
2023
- Net earnings were $14.8
million compared to $50.2
million for the year to date fiscal
2023
Select Financial Information
(in millions of
dollars,
except for gross profit %)
|
For the third
quarter of
|
|
Year to date
fiscal
|
2024
|
2023
|
Change
|
|
2024
|
2023
|
Change
|
Net
Revenues2
|
193.4
|
206.2
|
(6.2) %
|
|
573.7
|
590.4
|
(2.8) %
|
Gross Profit
|
107.6
|
118.1
|
(2.6) %
|
|
316.1
|
341.8
|
(7.5) %
|
Gross Profit
%
|
55.6 %
|
57.3 %
|
-170 bps
|
|
55.1 %
|
57.9 %
|
-280 bps
|
Selling, distribution
and
administrative expenses2
|
100.5
|
103.0
|
(2.4) %
|
|
293.7
|
289.2
|
1.6 %
|
Net earnings
|
5.3
|
14.6
|
(63.7) %
|
|
14.8
|
50.2
|
(70.5) %
|
Adjusted
EBITDA1
|
9.5
|
18.0
|
(47.2) %
|
|
27.5
|
60.7
|
(54.7) %
|
Adjusted
ROA1
|
7.1
|
15.2
|
(53.3) %
|
|
21.5
|
51.9
|
(58.6) %
|
1 This
is a Non-GAAP Financial Measure. See "Non-GAAP Financial Measures
& Supplementary Financial
Measures" for reconciliations of these measures.
|
2 For the
third quarter of 2023 and the year to date fiscal 2023, shipping
revenues of $0.6 and $1.7 million, respectively, were
reclassified from selling, distribution and administrative
expenses to net revenues. See Notes 3 and 18 of the
unaudited condensed consolidated interim financial statements for
the third quarter of 2024. In addition, selling, distribution and
administrative expenses includes $0.1 million of restructuring
costs for the third quarter of 2023 and $0.5
million of restructuring
costs for the year to date fiscal 2023.
|
13 weeks ended October 28,
2023
Net revenues for the third quarter of 2024 decreased by
$12.8 million, or 6.2%, to
$193.4 million. Comparable
sales1, which include e-commerce net sales, decreased
7.7% during the third quarter of 2024. The decrease in net revenues
and comparable sales was primarily due to lower store and
e-commerce traffic, lower average transaction values and higher
promotional activity. We believe that comparatively higher interest
rates and inflation overall compared to the corresponding period
last year negatively impacted consumer spending during the third
quarter of 2024.
Gross profit for the third quarter of 2024 decreased
$10.5 million to $107.6 million as compared with $118.1 million for the third quarter of 2023.
Gross profit as a percentage of net revenues for the third quarter
of 2024 decreased to 55.6% from 57.3% for the third quarter of
2023. The decrease in gross profit and as a percentage of net
revenues is primarily attributable to higher markdown and
promotional activity combined with an unfavorable foreign exchange
impact of approximately $3.2
million on U.S. dollar denominated purchases included in
cost of goods sold, partially offset by lower supply chain costs in
the third quarter of 2024 as global shipping industry disruptions
were prevalent in the third quarter of 2023.
Net earnings for the third quarter of 2024 were $5.3 million ($0.11
basic and diluted earnings per share) as compared with net earnings
of $14.6 million ($0.30 basic and diluted earnings per share) for
the third quarter of 2023. The decrease in net earnings of
$9.3 million is primarily
attributable the decrease in gross profit and an increase in income
tax expense, partially offset by a decrease in overall operating
costs.
Adjusted results from operating activities ("Adjusted ROA") for
the third quarter of 2024 was $7.1
million as compared with $15.2
million for the third quarter of 2023. The decrease of
$8.1 million is primarily
attributable to a decrease in gross profit, partially offset by a
decrease in overall operating costs.
Adjusted EBITDA for the third quarter of 2024 was $9.5 million as compared to $18.0 million for the third quarter of 2023. The
decrease of $8.5 million is primarily
attributable to a decrease in gross profit, partially offset by a
decrease in overall operating costs.
39 weeks ended October 28,
2023
Net revenues for the year to date fiscal 2024 decreased by
$16.7 million, or 2.8%, to
$573.7 million. Comparable
sales1, which include e-commerce net sales, decreased
3.7% during the year to date fiscal 2024. The decrease in net
revenues and comparable sales was primarily due to lower average
transaction values and higher promotional activity. We believe that
comparatively higher interest rates and inflation overall compared
to the corresponding period last year negatively impacted consumer
spending during the year to date fiscal 2024.
Gross profit for the year to date fiscal 2024 decreased
$25.7 million to $316.1 million as compared with $341.8 million for the year to date fiscal 2023.
Gross profit as a percentage of net revenues for the year to date
fiscal 2024 decreased to 55.1% from 57.9% for the year to date
fiscal 2023. The decrease both in gross profit and as a percentage
of net revenues is primarily attributable to higher markdowns and
promotional activity in the year to date fiscal 2024 combined with
an unfavourable foreign exchange impact of approximately
$11.4 million on U.S. dollar
denominated purchases included in cost of goods sold, partially
offset by lower supply chain costs in the year to date fiscal 2024
as global shipping industry disruptions were prevalent in the year
to date fiscal 2023.
Net earnings for the year to date fiscal 2024 was $14.8 million ($0.30 basic and diluted earnings per share) as
compared with $50.2 million
($1.03 basic and diluted earnings per
share) for the year to date fiscal 2023. The decrease in net
earnings of $35.4 million is
primarily attributable to the decrease in gross profit, the
increase in operating costs and the increase in income tax
expense.
Adjusted ROA for the year to date fiscal 2024 was $21.5 million as compared to $51.9 million for the year to date fiscal 2023.
The decrease of $30.4 million is
primarily attributable to the decrease in gross profit and the
increase in operating costs.
Adjusted EBITDA for the year to date fiscal 2024 was
$27.5 million as compared to
$60.7 million for the year to date
fiscal 2023. The decrease of $33.2
million is primarily attributable to the decrease in gross
profit and the increase in operating costs.
About Reitmans (Canada)
Limited
The Company is a leading women's specialty apparel retailer with
retail outlets throughout Canada.
As at October 28, 2023, the Company
operated 401 stores consisting of 231 Reitmans, 90 Penningtons
and 80 RW&CO.
1NON-GAAP Financial Measures
& Supplementary Financial Measures
This press announcement makes reference to certain non-GAAP
measures. These measures are not recognized measures under IFRS and
do not have a standardized meaning prescribed by IFRS. They are
therefore unlikely to be comparable to similar measures presented
by other companies. Rather, these measures are provided as
additional information to complement IFRS measures by providing
further understanding of the Company's results of operations from
management's perspective. Accordingly, these measures should not be
considered in isolation nor as a substitute for the Company's
analysis of its financial information reported under IFRS.
NON-GAAP Financial Measures
This press announcement discusses the following non-GAAP
financial measures: adjusted earnings before interest, taxes,
depreciation and amortization ("Adjusted EBITDA"), and adjusted
results from operating activities ("Adjusted ROA"). This press
announcement also indicates Adjusted EBITDA as a percentage of net
revenues and is considered a non-GAAP financial ratio. Net revenues
represent the sale of merchandise less discounts and returns ("net
sales"), and includes shipping fees charged to customers on
e-commerce orders. The intent of presenting Adjusted EBITDA and
Adjusted ROA is to provide additional useful information to
investors and analysts. Adjusted EBITDA is currently defined as net
earnings before income tax expense/recovery, interest income,
interest expense, loss on foreign currency translation differences
reclassified to net earnings, pension curtailment gain,
depreciation, amortization, net impairment of non-financial assets,
adjusted for the impact of certain items, including a deduction of
interest expense and depreciation relating to leases accounted for
under IFRS 16, Leases, Federal subsidies and restructuring
costs and recoveries. Management believes that Adjusted EBITDA is
an important indicator of the Company's ability to generate
liquidity through operating cash flow to fund working capital needs
and fund capital expenditures and uses this metric for this
purpose. Management believes that Adjusted EBITDA as a percentage
of net revenues indicates how much liquidity is generated for each
dollar of net revenues. The exclusion of interest income and
expenses, other than interest expense related to lease liabilities
as explained hereafter, eliminates the impact on earnings derived
from non-operational activities. The exclusion of depreciation,
amortization and net impairment charges, other than depreciation
related to right-of-use assets as explained hereafter, eliminates
the non-cash impact, and the exclusion of restructuring recoveries
/costs, Federal subsidies, loss on foreign currency translation
differences reclassified to net earnings and pension curtailment
gain presents the results of the on-going business. Under IFRS 16,
Leases, the characteristics of some leases result in lease
payments being recognized in net earnings in the period in which
the performance or use occurs while other leases are recorded as
right-of-use assets with a corresponding lease liability
recognized, which results in depreciation of those assets and
interest expense from those liabilities. Management is presenting
its Adjusted EBITDA to reflect the payments of its store and
equipment lease obligations on a consistent basis. As such, the
initial add-back of depreciation of right-of-use assets and
interest on lease obligations are removed from the calculation of
Adjusted EDITDA, as this better reflects the operational cash flow
impact of its leases.
Adjusted ROA is defined as results from operating activities
excluding Federal subsidies, restructuring
recoveries/costs and pension curtailment gain. Management
believes that Adjusted ROA provides a more relevant indicator in
assessing current operational performance. The exclusion of
restructuring recoveries /costs, pension curtailment gain and
Federal subsidies presents the on-going operational performance of
the business.
Reconciliation of NON-IFRS Measures
The tables below provide a reconciliation of net earnings to
Adjusted EBITDA and results from operating activities to Adjusted
ROA:
|
For the third
quarter of
|
Year to date
fiscal
|
|
2024
|
2023
|
2024
|
2023
|
Net
earnings
|
$
5.3
|
$ 14.6
|
$
14.8
|
$ 50.2
|
Depreciation,
amortization and net impairment
losses on property and equipment, and
intangible assets
|
3.3
|
3.5
|
10.3
|
11.7
|
Depreciation on
right-of-use assets
|
8.5
|
7.9
|
24.4
|
21.0
|
Interest expense on
lease liabilities
|
1.9
|
1.3
|
5.2
|
3.6
|
Interest
income
|
(1.1)
|
(0.3)
|
(3.3)
|
(0.5)
|
Interest expense on
revolving credit facility
|
-
|
-
|
-
|
0.4
|
Income tax expense
(recovery)
|
2.0
|
0.1
|
5.6
|
(0.4)
|
Loss on foreign
currency translation
differences reclassified to net
earnings
|
-
|
-
|
1.0
|
-
|
Pension curtailment
gain
|
-
|
-
|
(0.9)
|
-
|
Rent impact from IFRS
16, Leases1
|
(10.4)
|
(9.2)
|
(29.6)
|
(24.6)
|
Federal
subsidies
|
-
|
-
|
-
|
(1.2)
|
Restructuring costs,
net
|
-
|
0.1
|
-
|
0.5
|
Adjusted
EBITDA
|
$
9.5
|
$ 18.0
|
$
27.5
|
$ 60.7
|
Adjusted EBITDA
as % of Net Revenues
|
4.9 %
|
8.8 %
|
4.8 %
|
10.3 %
|
|
1 Rent
Impact from IFRS 16, Leases is comprised as
follows;
|
|
For the third
quarter of
|
Year to date
fiscal
|
|
2024
|
2023
|
2024
|
2023
|
Depreciation on
right-of-use assets
|
$
8.5
|
$
7.9
|
$
24.4
|
$ 21.0
|
Interest expense on
lease liabilities
|
1.9
|
1.3
|
5.2
|
3.6
|
Rent impact from
IFRS 16, Leases
|
$
10.4
|
$
9.2
|
$
29.6
|
$ 24.6
|
|
For the third
quarter of
|
Year to date
fiscal
|
|
2024
|
2023
|
2024
|
2023
|
Results from
operating activities
|
$
7.1
|
$ 15.1
|
$
22.4
|
$ 52.6
|
Pension curtailment
gain
|
-
|
-
|
(0.9)
|
-
|
Federal
subsidies
|
-
|
-
|
-
|
(1.2)
|
Restructuring costs,
net
|
-
|
0.1
|
-
|
0.5
|
Adjusted
ROA
|
$
7.1
|
$ 15.2
|
$
21.5
|
$ 51.9
|
Supplementary Financial Measures
The Company uses a key performance indicator ("KPI"), comparable
sales, to assess store performance and sales growth. The Company
engages in an omnichannel approach in connecting with its customers
by appealing to their shopping habits through either online or
store channels. This approach allows customers to shop online
for home delivery or to pick up in store, purchase in any of our
store locations or ship to home from another store when the
products are unavailable in a particular store. Due to
customer cross-channel behavior, the Company reports a single
comparable sales metric, inclusive of store and e-commerce
channels. Comparable sales are defined as net sales generated by
stores that have been continuously open during both of the periods
being compared and include e-commerce net sales. The comparable
sales metric compares the same calendar days for each period.
Although this KPI is expressed as a ratio, it is a supplementary
financial measure that does not have a standardized meaning
prescribed by IFRS and may not be comparable to similar measures
used by other companies. Management uses comparable sales in
evaluating the performance of stores and online net sales and
considers it useful in helping to determine what portion of new net
sales has come from sales growth and what portion can be attributed
to the opening of new stores. Comparable sales is a measure widely
used amongst retailers and is considered useful information for
both investors and analysts. Comparable sales should not be
considered in isolation or used in substitute for measures of
performance prepared in accordance with IFRS.
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, including statements on the Company's
financial position and operations, and are based on several
assumptions which give rise to the possibility that actual results
could differ materially from the Company's expectations expressed
in or implied by such forward-looking statements and that the
objectives, plans, strategic priorities and business outlook may
not be achieved. Consequently, the Company cannot guarantee
that any forward-looking statement will materialize, or if any of
them do, what benefits the Company will derive from them.
Forward-looking statements are provided in this press announcement
for the purpose of giving information about management's current
expectations and plans as of the date of this press announcement,
and allowing investors and others to get a better understanding of
the Company's operating environment. However, readers are cautioned
that it may not be appropriate to use such forward-looking
statements for any other purpose. Forward-looking statements are
based upon the Company's current estimates, beliefs and
assumptions, which are based on management's perception of
historical trends, current conditions and currently expected future
developments, as well as other factors it believes, are appropriate
in the circumstances.
This press announcement contains forward-looking statements
about the Company's objectives, plans, goals, expectations,
aspirations, strategies, financial condition, results of
operations, cash flows, performance, prospects, opportunities and
legal and regulatory matters. Specific forward-looking statements
in this press announcement include, but are not limited to,
statements with respect to the Company's belief in its strategies
and its brands and their capacity to generate long-term profitable
growth, future liquidity, planned capital expenditures, amount of
pension plan contributions, status and impact of systems
implementation, the ability of the Company to successfully
implement its strategic initiatives and cost reduction and
productivity improvement initiatives as well as the impact of such
initiatives. These specific forward-looking statements are
contained throughout the Company's Management Discussion &
Analysis ("MD&A") including those listed in the "Operating and
Financial Risk Management" section of the MD&A. Forward-looking
statements are typically identified by words such as "expect",
"anticipate", "believe", "foresee", "could", "estimate", "goal",
"intend", "plan", "seek", "strive", "will", "may" and "should" and
similar expressions, as they relate to the Company and its
management.
Numerous risks and uncertainties could cause the Company's
actual results to differ materially from those expressed, implied
or projected in the forward-looking statements. Please refer to the
"Forward-Looking Statements" section of the Company's MD&A for
the third quarter of 2024.
This is not an exhaustive list of the factors that may affect
the Company's forward-looking statements. Other risks and
uncertainties not presently known to the Company or that the
Company presently believes are not material could also cause actual
results or events to differ materially from those expressed in its
forward-looking statements. Additional risks and uncertainties are
discussed in the Company's materials filed with the Canadian
securities regulatory authorities from time to time. The reader
should not place undue reliance on any 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 complete financial statements including notes and
Management's Discussion and Analysis for the third quarter of 2024
are available online at www.sedarplus.ca.
Montreal, December 14, 2023
Andrea Limbardi
President and Chief Executive Officer
Telephone: (514) 384-1140
Corporate Website: www.reitmanscanadalimited.com
REITMANS (CANADA)
LIMITED
CONDENSED
CONSOLIDATED INTERIM STATEMENTS OF EARNINGS
(Unaudited)
(in thousands of
Canadian dollars except per share amounts)
|
|
|
For the 13 weeks
ended
|
For the 39 weeks
ended
|
|
|
|
October 28,
2023
|
October 29,
2022(1)
|
October 28,
2023
|
October 29,
2022(1)
|
|
|
|
|
|
|
|
|
Net revenues
|
|
$
193,408
|
$ 206,206
|
$
573,704
|
$ 590,383
|
|
Cost of goods
sold
|
|
85,761
|
88,133
|
257,612
|
248,578
|
|
Gross profit
|
|
107,647
|
118,073
|
316,092
|
341,805
|
|
Selling and
distribution expenses
|
|
88,442
|
89,891
|
258,044
|
252,451
|
|
Administrative
expenses
|
|
12,066
|
13,073
|
35,627
|
36,257
|
|
Restructuring
|
|
-
|
73
|
-
|
480
|
|
Results from operating
activities
|
|
7,139
|
15,036
|
22,421
|
52,617
|
|
|
|
|
|
|
|
|
Finance
income
|
|
2,120
|
924
|
4,175
|
1,151
|
|
Finance
costs
|
|
(1,892)
|
(1,282)
|
(6,205)
|
(4,000)
|
|
Earnings before income
taxes
|
|
7,367
|
14,678
|
20,391
|
49,768
|
|
|
|
|
|
|
|
|
Income tax (expense)
recovery
|
|
(2,084)
|
(67)
|
(5,563)
|
445
|
|
|
|
|
|
|
|
|
Net earnings
|
|
$
5,283
|
$
14,611
|
$
14,828
|
$
50,213
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
Basic
|
|
$ 0.11
|
$ 0.30
|
$ 0.30
|
$ 1.03
|
|
Diluted
|
|
0.11
|
0.30
|
0.30
|
1.03
|
|
|
|
|
|
|
|
|
(1)
|
For the 13 and 39 weeks
ended October 29, 2022, shipping revenues of $598 and $1,694,
respectively, were reclassified from selling and distribution
expenses to net revenues. The adjustments had no effect on results
from operating activities or on net earnings. See note 18 of the
unaudited condensed consolidated interim financial statements for
the 13 and 39 weeks ended October 28, 2023.
|
REITMANS (CANADA)
LIMITED
CONDENSED
CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE
INCOME
(Unaudited)
(in thousands of
Canadian dollars)
|
|
|
For the 13 weeks
ended
|
For the 39 weeks
ended
|
|
|
|
|
October 28,
2023
|
October 29,
2022
|
October 28,
2023
|
October 29,
2022
|
|
|
|
|
|
|
|
|
Net earnings
|
|
$
5,283
|
$
14,611
|
$
14,828
|
$
50,213
|
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
Items that are or may be reclassified subsequently
to
net earnings:
|
|
|
|
|
|
|
Cash flow
hedges (net of tax of $883 and $981
for the 13 and 39 weeks ended October
28,
2023, respectively)
|
|
2,447
|
-
|
2,720
|
-
|
|
Loss on foreign
currency translation differences
reclassified to net earnings
|
|
-
|
-
|
1,044
|
-
|
|
Foreign
currency translation differences
|
|
-
|
(270)
|
-
|
(288)
|
|
|
|
|
|
|
|
|
Items
that will not be reclassified to net earnings:
|
|
|
|
|
|
|
Net actuarial (loss) gain on defined benefit plan (net
of tax of $64 and $260 for the 13 and
39 weeks
ended October 28, 2023, respectively;
net of tax
of $116 and $954 for the 13 and 39
weeks ended
October 29, 2022,
respectively)
|
|
(176)
|
323
|
722
|
194
|
|
|
|
|
|
|
|
|
Total other
comprehensive income (loss)
|
|
2,271
|
53
|
4,486
|
(94)
|
|
|
|
|
|
|
|
|
Total comprehensive
income
|
|
$
7,554
|
$
14,664
|
$
19,314
|
$
50,119
|
|
REITMANS (CANADA)
LIMITED
CONDENSED
CONSOLIDATED INTERIM BALANCE
SHEETS
(Unaudited)
(in thousands of
Canadian dollars)
|
|
October 28,
2023
|
October 29,
2022
|
January 28,
2023
|
ASSETS
|
|
|
|
CURRENT
ASSETS
|
|
|
|
Cash
|
$
101,275
|
$
64,298
|
$
103,004
|
Restricted cash
|
-
|
2,783
|
2,808
|
Trade and other receivables
|
3,719
|
3,785
|
3,241
|
Derivative financial asset
|
3,844
|
-
|
-
|
Inventories
|
147,905
|
159,741
|
142,302
|
Prepaid expenses and other assets
|
15,839
|
22,765
|
14,502
|
Total Current Assets
|
272,582
|
253,372
|
265,857
|
|
|
|
|
NON-CURRENT
ASSETS
|
|
|
|
Property and equipment
|
63,747
|
61,145
|
63,833
|
Intangible assets
|
1,620
|
3,081
|
2,638
|
Right-of-use assets
|
108,195
|
69,461
|
79,894
|
Pension asset
|
1,886
|
1,235
|
-
|
Deferred income taxes
|
25,866
|
186
|
32,308
|
Total Non-Current
Assets
|
201,314
|
135,108
|
178,673
|
|
|
|
|
TOTAL
ASSETS
|
$
473,896
|
$
388,480
|
$
444,530
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
Trade and
other payables
|
$
63,247
|
$
65,368
|
$
81,087
|
Deferred revenue
|
11,597
|
10,844
|
14,100
|
Income taxes payable
|
789
|
998
|
1,018
|
Current portion of lease liabilities
|
26,851
|
25,520
|
26,741
|
Total Current
Liabilities
|
102,484
|
102,730
|
122,946
|
|
|
|
|
NON-CURRENT
LIABILITIES
|
|
|
|
Lease liabilities
|
90,153
|
51,432
|
60,758
|
Total Non-Current Liabilities
|
90,153
|
51,432
|
60,758
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
Share capital
|
28,292
|
27,406
|
27,406
|
Contributed surplus
|
11,104
|
10,666
|
10,871
|
Retained earnings
|
239,143
|
197,387
|
223,593
|
Accumulated other comprehensive income (loss)
|
2,720
|
(1,141)
|
(1,044)
|
Total Shareholders'
Equity
|
281,259
|
234,318
|
260,826
|
|
|
|
|
TOTAL LIABILITIES
AND
SHAREHOLDERS'
EQUITY
|
$
473,896
|
$
388,480
|
$
444,530
|
REITMANS (CANADA)
LIMITED
CONDENSED
CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS'
EQUITY
(Unaudited)
(in thousands of
Canadian dollars)
|
|
Share
Capital
|
Contributed
Surplus
|
Retained
Earnings
|
Accumulated Other
Comprehensive
Income (Loss)
|
Total
Shareholders'
Equity
|
|
|
|
|
|
|
Balance as at
January 29, 2023
|
$ 27,406
|
$
10,871
|
$
223,593
|
$
(1,044)
|
$
260,826
|
|
|
|
|
|
|
Net earnings
|
-
|
-
|
14,828
|
-
|
14,828
|
Total other
comprehensive income
|
-
|
-
|
722
|
3,764
|
4,486
|
Total comprehensive
income for the period
|
-
|
-
|
15,550
|
3,764
|
19,314
|
|
|
|
|
|
|
Share options
exercised
|
886
|
(243)
|
-
|
-
|
643
|
Share-based
compensation costs
|
-
|
476
|
-
|
-
|
476
|
Total contributions
by owners of the
Company
|
886
|
233
|
-
|
-
|
1,119
|
|
|
|
|
|
|
Balance as at
October 28, 2023
|
$ 28,292
|
$
11,104
|
$
239,143
|
$ 2,720
|
$
281,259
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at
January 30, 2022
|
$ 27,406
|
$
10,295
|
$
146,980
|
$
(853)
|
$
183,828
|
|
|
|
|
|
|
Net earnings
|
-
|
-
|
50,213
|
-
|
50,213
|
Total other
comprehensive income (loss)
|
-
|
-
|
194
|
(288)
|
(94)
|
Total comprehensive
income (loss) for the
period
|
-
|
-
|
50,407
|
(288)
|
50,119
|
|
|
|
|
|
|
Share-based
compensation costs
|
-
|
371
|
-
|
-
|
371
|
Total contributions
by owners of the
Company
|
-
|
371
|
-
|
-
|
371
|
|
|
|
|
|
|
Balance as at
October 29, 2022
|
$ 27,406
|
$
10,666
|
$
197,387
|
$
(1,141)
|
$
234,318
|
REITMANS (CANADA)
LIMITED
CONDENSED CONSOLIDATED
INTERIM STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands of
Canadian dollars)
|
|
For the 13 weeks
ended
|
For the 39 weeks
ended
|
|
October 28,
2023
|
October 29,
2022
|
October 28,
2023
|
October 29,
2022
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
Net
earnings
|
$
5,283
|
$
14,611
|
$
14,828
|
$
50,213
|
Adjustments
for:
|
|
|
|
|
Depreciation,
amortization and net impairment losses on
property and equipment and intangible
assets
|
3,316
|
3,534
|
10,296
|
11,744
|
Depreciation on
right-of-use assets
|
8,511
|
7,893
|
24,430
|
20,986
|
Share-based
compensation costs
|
101
|
181
|
476
|
371
|
Net change in transfer
of realized gain on cash flow hedges to
inventory
|
(144)
|
-
|
(144)
|
-
|
Foreign exchange
gain
|
(2,766)
|
(1,357)
|
(1,541)
|
(1,942)
|
Loss on foreign
currency translation differences reclassified to
net earnings
|
-
|
-
|
1,044
|
-
|
Interest on lease
liabilities
|
1,892
|
1,282
|
5,161
|
3,555
|
Interest on revolving
credit
|
-
|
-
|
-
|
445
|
Interest
income
|
(1,162)
|
(333)
|
(3,328)
|
(488)
|
Income tax expense
(recovery)
|
2,084
|
67
|
5,563
|
(445)
|
|
17,115
|
25,878
|
56,785
|
84,439
|
Changes in:
|
|
|
|
|
Trade and other
receivables
|
(189)
|
1,263
|
(429)
|
3,929
|
Inventories
|
909
|
(5,991)
|
(5,603)
|
(40,769)
|
Prepaid expenses and
other assets
|
1,448
|
8,450
|
(1,337)
|
19,825
|
Trade and other
payables
|
(4,442)
|
8,103
|
(18,166)
|
32,177
|
Pension
asset
|
(8)
|
(131)
|
(903)
|
13
|
Deferred
revenue
|
(1,108)
|
(1,117)
|
(2,503)
|
(2,646)
|
|
13,725
|
36,455
|
27,844
|
96,968
|
Interest
paid
|
-
|
(5)
|
-
|
(486)
|
Interest
received
|
1,194
|
232
|
3,279
|
380
|
Income taxes
paid
|
-
|
-
|
(592)
|
(46)
|
Net cash flows from
operating activities
|
14,919
|
36,682
|
30,531
|
96,816
|
|
|
|
|
|
CASH FLOWS USED IN
INVESTING ACTIVITIES
|
|
|
|
|
Additions to property
and equipment and intangible assets
|
(3,351)
|
(2,383)
|
(8,867)
|
(5,633)
|
Cash flows used in
investing activities
|
(3,351)
|
(2,383)
|
(8,867)
|
(5,633)
|
|
|
|
|
|
CASH FLOWS USED IN
FINANCING ACTIVITIES
|
|
|
|
|
Release of restricted
cash
|
-
|
(18)
|
2,808
|
(26)
|
Net repayment of
revolving credit facility
|
-
|
-
|
-
|
(29,634)
|
Payment of lease
liabilities
|
(9,810)
|
(9,373)
|
(28,448)
|
(24,451)
|
Proceeds from issuance
of share capital
|
-
|
-
|
643
|
-
|
Cash flows used in
financing activities
|
(9,810)
|
(9,391)
|
(24,997)
|
(54,111)
|
|
|
|
|
|
FOREIGN EXCHANGE GAIN
ON CASH HELD IN FOREIGN
CURRENCY
|
2,836
|
1,217
|
1,604
|
1,724
|
|
|
|
|
|
NET INCREASE (DECREASE)
IN CASH
|
4,594
|
26,125
|
(1,729)
|
38,796
|
|
|
|
|
|
CASH, BEGINNING OF THE
PERIOD
|
96,681
|
38,173
|
103,004
|
25,502
|
|
|
|
|
|
CASH, END OF THE
PERIOD
|
$
101,275
|
$
64,298
|
$
101,275
|
$
64,298
|
SOURCE Reitmans (Canada)
Limited