- Consolidated retail sales up 1.4% in Q4; up 10.1% to
$12.9 billion for full year 2012
- Consolidated revenue up 1.0% in Q4; up 10.0% for the full year
2012
- Consolidated diluted EPS up 2.8% and 12.9% for Q4 and full year
respectively excluding one-time charges and including FGL Sports
results for full year 2012 compared to 19 weeks in 2011
TORONTO,
Feb. 21, 2013 /CNW/ - Canadian Tire
Corporation, Limited (TSX:CTC, TSX:CTC.a) today released fourth
quarter and full year results for the period ended December 29, 2012.
FOURTH QUARTER
Consolidated retail sales in the fourth quarter
increased 1.4% and consolidated revenue increased 1.0% to
$3.2 billion for the period. Diluted
earnings per share declined 1.8% in the fourth quarter compared to
the prior year. Included in net income were costs related to
corporate restructuring and tax adjustments that occurred during
the fourth quarter of 2012, amounts related to the purchase of FGL
Sports and income received from the resolution of tax matters in
2011. Excluding these items, diluted earnings per share
increased 2.8% in Q4 2012.
FULL YEAR
Consolidated retail sales for the full year
increased 10.1% to $12.9 billion
reflecting the full year impact of FGL Sports retail sales compared
to 19 weeks in 2011 and consolidated revenue increased 10.0% to
$11.4 billion. Diluted earnings per
share for the year increased 6.9% to $6.10. Normalizing for the restructuring charges
and FGL Sports banner rationalization costs in 2012 and amounts
related to the purchase of FGL Sports and income received from the
resolution of tax matters in 2011, diluted earnings per share were
up 12.9%.
"Overall, our Family of Companies has performed
exceptionally well for the year and we generated nearly
$13 billion in revenue, which is 10
percent higher than last year," said Stephen Wetmore, President and Chief Executive
Officer, Canadian Tire Corp. "The acquisition of FGL Sports has
been a remarkable success. Our Sport Chek and Sports Experts
"super brands" achieved strong sales growth and we started to
implement ambitious growth plans in 2012 that will fuel future
growth."
"Canadian Tire Retail also had a solid year," he
said. "In 2012, we focused on improving our margins,
introduced new products, executed successfully in key heritage
categories, retrofitted over 70 more Smart store formats and have
strengthened our position as Canada's Store."
"Mark's continues to be one of Canada's market leaders in apparel and
footwear as we converted dozens more stores to our new store format
in 2012. Financial Services once again performed well through the
strong management of its credit card portfolio as well as new
initiatives such as the Canadian Tire Driver's Academy and a new
Sport Chek MasterCard," Wetmore said.
"Our brands continue to gain strength through
community involvement across the country and our recently announced
partnerships with the Canadian Olympic team, Paralympic team and
five other major amateur sports organizations. Combined with
the tremendous work of Canadian Tire Jumpstart Charities, our
Family of Companies is setting the standard for involvement in, and
commitment to, local communities and everyday life in Canada."
Consolidated
financial results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(C$ in
millions except per share amounts) |
|
Q4 2012 |
|
|
Q4 2011 |
|
|
Change |
|
|
YTD Q4 2012 |
|
|
YTD Q4 2011 |
|
|
Change |
Retail sales |
$ |
3,780.5 |
|
$ |
3,727.2 |
|
|
1.4% |
|
$ |
12,852.5 |
|
$ |
11,668.3 |
|
|
10.1% |
Revenue |
|
3,166.7 |
|
|
3,135.1 |
|
|
1.0% |
|
|
11,427.2 |
|
|
10,387.1 |
|
|
10.0% |
Net income |
|
163.1 |
|
|
166.3 |
|
|
(1.9)% |
|
|
499.2 |
|
|
467.0 |
|
|
6.9% |
Basic earnings per share |
|
2.00 |
|
|
2.04 |
|
|
(1.9)% |
|
|
6.13 |
|
|
5.73 |
|
|
6.9% |
Diluted
earnings per share |
|
2.00 |
|
|
2.03 |
|
|
(1.8)% |
|
|
6.10 |
|
|
5.71 |
|
|
6.9% |
RETAIL SEGMENT
Consolidated retail sales rose 1.4% in the
quarter to $3.8 billion versus Q4
2011. For the year, consolidated retail sales rose 10.1%
versus 2011 to $12.9 billion.
CTR achieved strong sales performance in the quarter in key
categories such as kitchen and outdoor recreation. These
gains were offset by the impact of the late arrival of winter
weather in Ontario and
Quebec and by management's actions
to improve gross margin by more selectively promoting certain
merchandise categories. The result was a slight 0.5% decrease
in sales at CTR with stronger gross margins.
FGL Sports' fourth quarter retail sales
increased 4.5% and same store sales at its Sport Chek "super brand"
increased 3.8% over the same period contributing to its 6.8% growth
for the full year due to strong performance in hard goods, apparel
and footwear. This was offset by the impact of the NHL
lockout and the late arrival of winter weather, particularly in
Ontario and Quebec.
At Mark's, retail sales grew 3.7% and same store
sales increased 3.5% in the fourth quarter due to growth in
industrial wear and footwear sales. Sales gains were highest
in Western Canada, particularly
Alberta, benefitting from the
early start to winter weather in October in that province.
Petroleum retail sales increased 5.0% primarily
due to strong convenience store sales and increased gas volume due
to additional sites being opened during the year.
Revenue in the retail segment increased 0.9% in
the quarter primarily due to revenue increases in FGL Sports,
Petroleum and Mark's, partly offset by a decrease in CTR revenue
for the reasons noted above.
Retail segment fourth quarter income before
income taxes of $154.9 million was
down 11.6% compared to the prior year. The earnings decline was
largely reflective of the restructuring charge of $19.6 million and modest revenue growth which
were partially offset by higher marketing and occupancy
expenses.
FINANCIAL SERVICES SEGMENT
Financial Services was a strong contributor to
the Company's earnings in the fourth quarter. Financial Services'
revenue increased 1.8% and income before income taxes increased
10.8% in the quarter compared to the prior year. The earnings
increase was due to increased revenue related to credit card
receivables growth and improved write-off performance, offset by
slightly higher operating expenses compared to the prior year.
QUARTERLY DIVIDEND
Canadian Tire Corporation has declared a quarterly dividend of
$0.35 per share on each Common and
Class A Non-Voting share. The dividend is payable on June 1, 2013 to Common and Class A shareholders
of record as of April 30, 2013. The
dividend is considered an "eligible dividend" for tax purposes.
The Company's full year financial report will be
available in the Investor Centre section of the Company's website
at corp.canadiantire.ca and will be filed with SEDAR and available
at sedar.com.
Please refer to Management's Discussion and
Analysis for further detail and information on the following
charts.
Consolidated financial results |
|
|
|
|
|
|
|
|
(C$ in millions except
per share amounts) |
|
|
Q4
2012 |
|
|
Q4
2011 |
|
|
Change |
|
|
YTD Q4
2012 |
|
|
YTD Q4
2011 |
|
|
Change |
Retail sales |
|
$ |
3,780.5 |
|
$ |
3,727.2 |
|
|
1.4% |
|
$ |
12,852.5 |
|
$ |
11,668.3 |
|
|
10.1% |
Revenue |
|
|
3,166.7 |
|
|
3,135.1 |
|
|
1.0% |
|
|
11,427.2 |
|
|
10,387.1 |
|
|
10.0% |
Gross margin |
|
|
994.4 |
|
|
938.8 |
|
|
5.9% |
|
|
3,497.9 |
|
|
3,060.7 |
|
|
14.3% |
Other (expense) income
|
|
|
5.2 |
|
|
5.8 |
|
|
(10.3)% |
|
|
5.7 |
|
|
18.4 |
|
|
(69.1)% |
Operating
expenses |
|
|
749.6 |
|
|
680.8 |
|
|
10.1% |
|
|
2,700.2 |
|
|
2,317.0 |
|
|
16.5% |
EBITDA |
|
|
337.8 |
|
|
350.4 |
|
|
(3.6)% |
|
|
1,138.5 |
|
|
1,058.2 |
|
|
7.6% |
Depreciation and
amortization |
|
|
87.8 |
|
|
86.6 |
|
|
1.4% |
|
|
335.1 |
|
|
296.1 |
|
|
13.2% |
Net finance costs |
|
|
33.4 |
|
|
32.9 |
|
|
1.2% |
|
|
126.2 |
|
|
132.2 |
|
|
(4.6)% |
Income before income
taxes |
|
|
216.6 |
|
|
230.9 |
|
|
(6.2)% |
|
|
677.2 |
|
|
629.9 |
|
|
7.5% |
Effective tax rate
|
|
|
24.7% |
|
|
28.0% |
|
|
|
|
|
26.3% |
|
|
25.9% |
|
|
|
Net income |
|
|
163.1 |
|
|
166.3 |
|
|
(1.9)% |
|
|
499.2 |
|
|
467.0 |
|
|
6.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share |
|
|
2.00 |
|
|
2.04 |
|
|
(1.9)% |
|
|
6.13 |
|
|
5.73 |
|
|
6.9% |
Diluted earnings per
share |
|
|
2.00 |
|
|
2.03 |
|
|
(1.8)% |
|
|
6.10 |
|
|
5.71 |
|
|
6.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail segment financial results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(C$ in millions) |
|
|
Q4
2012 |
|
|
Q4
2011 |
|
|
Change |
|
|
YTD Q4
2012 |
|
|
YTD Q4
2011 |
|
|
Change |
Retail sales |
|
$ |
3,780.5 |
|
$ |
3,727.2 |
|
|
1.4% |
|
$ |
12,852.5 |
|
$ |
11,668.3 |
|
|
10.1% |
Revenue
|
|
|
2,901.1 |
|
|
2,874.9 |
|
|
0.9% |
|
|
10,381.2 |
|
|
9,363.5 |
|
|
10.9% |
Gross
margin |
|
|
826.9 |
|
|
783.9 |
|
|
5.5% |
|
|
2,835.3 |
|
|
2,446.7 |
|
|
15.9% |
Other income
(expense) |
|
|
5.0 |
|
|
5.9 |
|
|
(14.9)% |
|
|
3.0 |
|
|
18.8 |
|
|
(84.3)% |
Operating
expenses |
|
|
658.2 |
|
|
595.1 |
|
|
10.6% |
|
|
2,364.8 |
|
|
1,982.0 |
|
|
19.3% |
EBITDA |
|
|
258.9 |
|
|
278.6 |
|
|
(7.1)% |
|
|
798.7 |
|
|
768.9 |
|
|
3.9% |
Depreciation and
amortization |
|
|
85.2 |
|
|
83.9 |
|
|
1.5% |
|
|
325.2 |
|
|
285.4 |
|
|
13.9% |
Net finance costs |
|
|
18.8 |
|
|
19.5 |
|
|
(4.0)% |
|
|
73.2 |
|
|
72.7 |
|
|
0.7% |
Income before income
taxes |
|
|
154.9 |
|
|
175.2 |
|
|
(11.6)% |
|
|
400.3 |
|
|
410.8 |
|
|
(2.6)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Segment - by banner |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(C$ in millions,
except number of stores and gas bars) |
|
|
Q4
2012 |
|
|
Q4
2011 |
|
|
Change |
|
|
YTD Q4
2012 |
|
|
YTD Q4
2011 |
|
|
Change |
CTR retail sales
growth |
|
|
(0.5)% |
|
|
2.6% |
|
|
|
|
|
0.8% |
|
|
2.0% |
|
|
|
CTR same store sales
growth |
|
|
(1.1)% |
|
|
1.7% |
|
|
|
|
|
0.3% |
|
|
1.1% |
|
|
|
CTR revenue |
|
$ |
1,548.2 |
|
$ |
1,573.6 |
|
|
(1.6)% |
|
$ |
5,779.7 |
|
$ |
5,771.5 |
|
|
0.1% |
Number of CTR
stores |
|
|
490 |
|
|
488 |
|
|
|
|
|
490 |
|
|
488 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Tire
Petroleum retail sales growth |
|
|
5.0% |
|
|
10.3% |
|
|
|
|
|
4.0% |
|
|
19.0% |
|
|
|
Canadian Tire
Petroleum gasoline volume (litres) growth |
|
|
2.7% |
|
|
(1.4)% |
|
|
|
|
|
1.3% |
|
|
2.1% |
|
|
|
Canadian Tire
Petroleum revenue |
|
$ |
509.8 |
|
$ |
490.9 |
|
|
3.8% |
|
$ |
2,049.6 |
|
$ |
1,981.2 |
|
|
3.5% |
Canadian Tire
Petroleum gross margin |
|
$ |
35.8 |
|
$ |
36.0 |
|
|
(0.8)% |
|
$ |
145.6 |
|
$ |
146.8 |
|
|
(0.8)% |
Number of gas
bars |
|
|
299 |
|
|
289 |
|
|
|
|
|
299 |
|
|
289 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FGL Sports retail
sales growth |
|
|
4.5% |
|
|
0.6% |
|
|
|
|
|
4.1% |
|
|
2.3% |
|
|
|
FGL Sports same store
sales growth |
|
|
2.9% |
|
|
0.7% |
|
|
|
|
|
4.9% |
|
|
2.6% |
|
|
|
FGL Sports
revenue |
|
$ |
444.2 |
|
$ |
426.1 |
|
|
4.3% |
|
$ |
1,550.3 |
|
$ |
645.6 |
|
|
140.1% |
Number of FGL Sports
stores |
|
|
495 |
|
|
534 |
|
|
|
|
|
495 |
|
|
534 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark's retail sales
growth |
|
|
3.7% |
|
|
3.2% |
|
|
|
|
|
4.2% |
|
|
3.0% |
|
|
|
Mark's same store
sales growth |
|
|
3.5% |
|
|
3.1% |
|
|
|
|
|
3.7% |
|
|
2.8% |
|
|
|
Mark's revenue |
|
$ |
402.5 |
|
$ |
388.0 |
|
|
3.7% |
|
$ |
1,016.6 |
|
$ |
979.5 |
|
|
3.8% |
Number of Mark's
stores |
|
|
386 |
|
|
385 |
|
|
|
|
|
386 |
|
|
385 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Services segment financial results |
|
|
|
|
|
|
|
|
|
|
|
|
(C$ in millions) |
|
|
Q4
2012 |
|
|
Q4
2011 |
|
|
Change |
|
|
YTD Q4
2012 |
|
|
YTD Q4
2011 |
|
|
Change |
Total gross average
accounts receivables |
|
$ |
4,209.6 |
|
$ |
4,062.1 |
|
|
3.6% |
|
$ |
4,096.0 |
|
$ |
4,035.5 |
|
|
1.5% |
Revenue |
|
|
248.0 |
|
|
243.5 |
|
|
1.8% |
|
|
981.9 |
|
|
960.4 |
|
|
2.2% |
Gross margin |
|
|
132.4 |
|
|
122.2 |
|
|
8.2% |
|
|
536.6 |
|
|
482.0 |
|
|
11.3% |
Operating
expenses |
|
|
71.4 |
|
|
67.1 |
|
|
6.2% |
|
|
263.6 |
|
|
264.7 |
|
|
(0.4)% |
Income before income
taxes |
|
|
61.7 |
|
|
55.7 |
|
|
10.8% |
|
|
276.9 |
|
|
219.1 |
|
|
26.4% |
THE YEAR AHEAD
At the beginning of 2013, the CTC Family of
Companies is extremely well-positioned in the competitive
marketplace as a result of successful planning and execution in the
following areas:
- Strong financial position and free cash flow; continued control
over operating expenditures and margin growth across all retail
banners.
- "Next in class" technology investments including touch-enabled
and near-field communication screens in stores, new and robust
e-commerce platform and e-catalogue at Canadian Tire Retail and
investments in 'smart commerce' across the entire Company.
- Expanded roll out of new 'Living' and outdoor and sports 'pro
shops' in Canadian Tire stores featuring expanded assortments,
stunning in-store displays and an exciting customer experience.
- Growth focus for CTR's 'Fixing' business following investments
in our 'Automotive' and 'Playing' businesses.
- Implementation of FGL Sports' growth strategy, including the
expansion of Sport Chek stores, rollout of "retail lab" locations
and addition of hundreds of thousands more square feet of new
retail space in 2013.
- The pending acquisition of Pro Hockey Life, which would
strengthen CTC's leadership position in sports and broaden its
offering in hockey.
- Continued rebranding and new store layout at 44 additional
Mark's stores in 2013.
- Deeper integration of the Financial Services business into
retail operations through new credit products, in-store instant
credit, equal payment plans and deferred payments on large
purchases.
- Activating iconic partnerships with the Canadian Olympic and
Paralympic teams and major amateur and pro athlete organizations to
enhance the brand and embrace the 'power of sport' in Canadian
communities.
NORMAL COURSE ISSUER BID
Canadian Tire also announced that it intends to make a normal
course issuer bid (NCIB) to purchase from February 26, 2013 to February 25, 2014, through the facilities of the
Toronto Stock Exchange (TSX), certain of its outstanding Class A
Non-Voting Shares. As at February 20,
2013 there were 77,720,401 Class A Non-Voting Shares issued
and outstanding. The number of Class A Non-Voting Shares which may
be purchased during the period the NCIB is outstanding will not
exceed 2.5 million Class A Non-Voting Shares, which is
approximately 3.4% of 74.1 million shares, the approximate public
float of Class A Non-Voting Shares issued and outstanding as at
February 20, 2013.
Canadian Tire has a policy of purchasing Class A Non-Voting
Shares to offset the dilutive effect of the issuance of Class A
Non-Voting Shares pursuant to its stock option plan and dividend
reinvestment plan. Canadian Tire intends to continue that
policy. Canadian Tire also would expect to utilize a minimum of
$100 million of its anticipated free
cash flow in 2013 for the repurchase of additional Class A
Non-Voting Shares under the NCIB if, after consideration of various
factors, the Company determines that the repurchase would be
expected to be in the best interests of the Company and contribute
to enhancing the value of the remaining Class A Non-Voting
Shares. The Company will not repurchase more than 2.5 million
Class A Non-Voting Shares, in aggregate, in 2013 pursuant to the
NCIB.
The number of Class A Non-Voting Shares purchased by Canadian
Tire pursuant to its NCIB which commenced on February 19, 2012 and expired on February 18, 2013, was 483,354. This figure
includes 299,806 Class A Non-Voting Shares that were purchased
beyond the Corporation's anti-dilutive policy during the fourth
quarter of 2012. The weighted average price at which the
purchases under the 2012 NCIB were made was $68.55 per Class A Non-Voting
Share.
Any purchases made by Canadian Tire pursuant to the NCIB will be
made in accordance with the rules of the TSX and at the market
price of the Class A Non-Voting Shares at the time of the
acquisition. No purchases (other than by way of exempt offers,
exemption orders or otherwise in accordance with applicable
regulations of the TSX) will be made except through open market
transactions during the period the NCIB is outstanding. Subject to
any block purchases made in accordance with the rules of the TSX,
Canadian Tire will be subject to a daily repurchase restriction of
49,218 Class A Non-Voting Shares, which represents 25% of the
average daily trading volume of the Class A Non-Voting Shares on
the TSX for the six months ended January 31,
2013. The Class A Non-Voting Shares acquired by Canadian
Tire pursuant to the NCIB will be restored to the status of
authorized and unissued shares.
Canadian Tire's NCIB is subject to regulatory
approval.
To view a PDF version of Canadian Tire
Corporation's 2012 Management Discussion & Analysis and Annual
Consolidated Audited Financial Statements, please see:
http://files.newswire.ca/116/CTC_MDA0221.pdf
FORWARD-LOOKING STATEMENTS
This document 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 financial position,
results of operation and operating environment. Readers are
cautioned that such information may not be appropriate for other
circumstances.
All statements other than statements of
historical facts included in this document may constitute
forward-looking information, including but not limited to,
statements concerning management's expectations relating to
possible or assumed future prospects and results, our strategic
goals and priorities, our actions and the results of those actions
and the economic and business outlook for us. Often but not always,
forward-looking information can be identified by the use of
forward-looking terminology such as "may", "will", "expect",
"believe", "estimate", "plan", "could", "should", "would",
"outlook", "forecast", "anticipate", "foresee", "continue" or the
negative of these terms or variations of them or similar
terminology. Forward-looking information is based on the
reasonable assumptions, estimates, analysis and opinions of
management made in light of its experience and perception of
trends, current conditions and expected developments, as well as
other factors that management believes to be relevant and
reasonable at the date that such statements are made.
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 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 document is
based on information and assumptions which are current, reasonable
and complete, this information is necessarily subject to a number
of factors that could cause actual results to differ materially
from management's expectations and plans as set forth in such
forward-looking information for a variety of reasons. Some of
the factors - many of which are beyond our control and the effects
of which can be difficult to predict - include (a) credit, market,
currency, operational, liquidity and funding risks, including
changes in economic conditions, interest rates or tax rates; (b)
the ability of Canadian Tire to attract and retain quality
employees, Dealers, Canadian Tire Petroleum agents and PartSource,
Mark's Work Wearhouse and FGL Sports store operators and
franchisees, as well as our financial arrangements with such
parties; (c) the growth of certain business categories and market
segments and the willingness of customers to shop at our stores or
acquire our financial products and services; (d) our margins and
sales and those of our competitors; (e) risks and uncertainties
relating to information management, technology, supply chain,
product safety, changes in law, regulation, competition,
seasonality, commodity price and business disruption, our
relationships with suppliers and manufacturers, changes to existing
accounting pronouncements, the risk of damage to the reputation of
brands promoted by Canadian Tire and the cost of store network
expansion and retrofits and (f) our capital structure, funding
strategy, cost management programs and share price. We caution
that the foregoing list of important factors and assumptions is not
exhaustive and other factors could also adversely affect our
results. Investors and other readers are urged to consider the
foregoing risks, uncertainties, factors and assumptions carefully
in evaluating the forward-looking information and are cautioned not
to place undue reliance on 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, please refer to the "Risk
Factors" section of our Annual Information Form for fiscal 2012 and
our 2012 Management's Discussion and Analysis, as well as Canadian
Tire's other public filings, available at www.sedar.com and at
www.corp.canadiantire.ca.
Statements that include forward-looking
information 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. For example, they do not include the effect of any
dispositions, acquisitions, asset write-downs or other charges
announced or occurring after such statements are made.
The forward-looking statements and information
contained herein are based on certain factors and assumptions as of
the date hereof. 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, unless 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 4:30 p.m. ET on
February 21, 2013. The conference
call will be available simultaneously and in its entirety to all
interested investors and the news media through a webcast at
http://investors.canadiantire.ca, and will be available through
replay at this website for 12 months.
ABOUT CANADIAN TIRE
Canadian Tire Corporation, Limited (TSX:CTC.a)
(TSX:CTC) is a Family of Companies that includes Canadian Tire
Retail, Partsource, Gas+, FGL Sports (Sport Chek, Hockey Experts,
Sports Experts, National Sports, Intersport and Atmosphere), Mark's
and Canadian Tire Financial Services. With more than 1,700
retail and gasoline outlets from coast-to-coast, our primary retail
business categories - Automotive, Living, Fixing, Playing and
Apparel - are supported and strengthened by our Financial Services
division. Nearly 68,000 people are employed across the Canadian
Tire enterprise, which was founded in 1922 and remains one of
Canada's most recognized and
trusted brands. For more information, visit
Corp.CanadianTire.ca.
CANADIAN TIRE CORPORATION,
LIMITED
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
Q4 2012
Condensed Consolidated Balance Sheets (Unaudited) |
|
|
|
|
As at |
|
|
|
|
|
|
|
|
(C$ in millions) |
|
|
|
December 29,
2012 |
|
|
|
December 31, 2011 |
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Cash and cash
equivalents |
|
|
$ |
1,015.5 |
|
|
$ |
325.8 |
Short-term investments |
|
|
|
168.9 |
|
|
|
196.4 |
Trade and other receivables |
|
|
|
750.6 |
|
|
|
829.3 |
Loans receivable |
|
|
|
4,265.7 |
|
|
|
4,081.7 |
Merchandise inventories |
|
|
|
1,503.3 |
|
|
|
1,448.6 |
Prepaid expenses and deposits |
|
|
|
39.1 |
|
|
|
44.3 |
Assets classified as held for
sale |
|
|
|
5.5 |
|
|
|
30.5 |
Total current assets |
|
|
|
7,748.6 |
|
|
|
6,956.6 |
Long-term receivables and other
assets |
|
|
|
681.2 |
|
|
|
668.9 |
Long-term investments |
|
|
|
182.7 |
|
|
|
128.2 |
Goodwill and intangible
assets |
|
|
|
1,089.9 |
|
|
|
1,110.0 |
Investment property |
|
|
|
95.1 |
|
|
|
72.4 |
Property and equipment |
|
|
|
3,343.5 |
|
|
|
3,365.9 |
Deferred income taxes |
|
|
|
40.4 |
|
|
|
36.8 |
Total assets |
|
|
$ |
13,181.4 |
|
|
$ |
12,338.8 |
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
Bank indebtedness |
|
|
$ |
86.0 |
|
|
$ |
124.8 |
Deposits |
|
|
|
1,311.0 |
|
|
|
1,182.3 |
Trade and other payables |
|
|
|
1,631.3 |
|
|
|
1,640.9 |
Provisions |
|
|
|
185.8 |
|
|
|
191.9 |
Short-term borrowings |
|
|
|
118.9 |
|
|
|
352.6 |
Loans payable |
|
|
|
623.7 |
|
|
|
628.7 |
Income taxes payable |
|
|
|
5.5 |
|
|
|
3.9 |
Current portion of long-term
debt |
|
|
|
661.9 |
|
|
|
27.9 |
Total current
liabilities |
|
|
|
4,624.1 |
|
|
|
4,153.0 |
Long-term provisions |
|
|
|
54.8 |
|
|
|
55.1 |
Long-term debt |
|
|
|
2,336.0 |
|
|
|
2,347.7 |
Long-term deposits |
|
|
|
1,111.8 |
|
|
|
1,102.2 |
Deferred income taxes |
|
|
|
77.7 |
|
|
|
66.1 |
Other long-term liabilities |
|
|
|
213.4 |
|
|
|
205.7 |
Total liabilities |
|
|
|
8,417.8 |
|
|
|
7,929.8 |
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Share capital |
|
|
|
688.0 |
|
|
|
710.5 |
Contributed surplus |
|
|
|
2.9 |
|
|
|
1.1 |
Accumulated other comprehensive
income (loss) |
|
|
|
(1.7) |
|
|
|
11.0 |
Retained earnings |
|
|
|
4,074.4 |
|
|
|
3,686.4 |
Total shareholders'
equity |
|
|
|
4,763.6 |
|
|
|
4,409.0 |
Total liabilities and
shareholders' equity |
|
|
$ |
13,181.4 |
|
|
$ |
12,338.8 |
|
|
Condensed
Consolidated Statements of Income (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
13 weeks
ended |
|
|
|
52 weeks
ended |
(C$ in millions,
except per share amounts) |
|
|
December 29,
2012 |
|
|
|
December 31,
2011 |
|
|
|
December 29,
2012 |
|
|
|
December 31,
2011 |
|
|
|
|
|
|
|
(Note 1) |
|
|
|
|
|
|
|
(Note 1) |
Revenue |
|
$ |
3,166.7 |
|
|
$ |
3,135.1 |
|
|
$ |
11,427.2 |
|
|
$ |
10,387.1 |
Cost of producing
revenue |
|
|
(2,172.3) |
|
|
|
(2,196.3) |
|
|
|
(7,929.3) |
|
|
|
(7,326.4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin |
|
|
994.4 |
|
|
|
938.8 |
|
|
|
3,497.9 |
|
|
|
3,060.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income |
|
|
5.2 |
|
|
|
5.8 |
|
|
|
5.7 |
|
|
|
18.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution costs |
|
|
(88.4) |
|
|
|
(98.9) |
|
|
|
(356.2) |
|
|
|
(368.7) |
|
Sales and marketing expenses |
|
|
(461.6) |
|
|
|
(415.4) |
|
|
|
(1,636.4) |
|
|
|
(1,307.9) |
|
Administrative expenses |
|
|
(199.6) |
|
|
|
(166.5) |
|
|
|
(707.6) |
|
|
|
(640.4) |
Total operating
expenses |
|
|
(749.6) |
|
|
|
(680.8) |
|
|
|
(2,700.2) |
|
|
|
(2,317.0) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
|
250.0 |
|
|
|
263.8 |
|
|
|
803.4 |
|
|
|
762.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance income |
|
|
5.1 |
|
|
|
4.6 |
|
|
|
18.1 |
|
|
|
23.0 |
|
Finance costs |
|
|
(38.5) |
|
|
|
(37.5) |
|
|
|
(144.3) |
|
|
|
(155.2) |
Net finance costs |
|
|
(33.4) |
|
|
|
(32.9) |
|
|
|
(126.2) |
|
|
|
(132.2) |
Income before
income taxes |
|
|
216.6 |
|
|
|
230.9 |
|
|
|
677.2 |
|
|
|
629.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes |
|
|
(53.5) |
|
|
|
(64.6) |
|
|
|
(178.0) |
|
|
|
(162.9) |
Net income |
|
$ |
163.1 |
|
|
$ |
166.3 |
|
|
$ |
499.2 |
|
|
$ |
467.0 |
Basic earnings per
share |
|
$ |
2.00 |
|
|
$ |
2.04 |
|
|
$ |
6.13 |
|
|
$ |
5.73 |
Diluted earnings
per share |
|
$ |
2.00 |
|
|
$ |
2.03 |
|
|
$ |
6.10 |
|
|
$ |
5.71 |
Weighted average
number of Common and Class A Non-Voting Shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
81,394,420 |
|
|
|
81,444,555 |
|
|
|
81,435,218 |
|
|
|
81,447,398 |
|
Diluted |
|
|
81,725,054 |
|
|
|
81,804,155 |
|
|
|
81,805,594 |
|
|
|
81,803,786 |
Note 1
Certain of the prior period's figures have been reclassified to
correspond to the current year-presentation. Certain employee
benefits costs previously included in administrative expenses are
now presented in distribution costs and sales and marketing
expenses within operating expenses. For the 13 weeks ended
December 31, 2011, administrative
expenses have been reduced by $13.9
million, with a corresponding increase in distribution costs
and sales and marketing expenses of $9.1
million and $4.8 million,
respectively. For the 52 weeks ended December 31, 2011, administrative expenses have
been reduced by $61.1 million, with a
corresponding increase in distribution costs and sales and
marketing expenses of $39.5 million
and $21.6 million,
respectively. There is no impact on net income as a result of
this change in presentation.
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
13 weeks ended |
|
|
|
52 weeks
ended |
(C$ in millions) |
|
|
December 29,
2012 |
|
|
|
December 31,
2011 |
|
|
|
December 29,
2012 |
|
|
|
December 31,
2011 |
|
|
|
|
|
|
|
(Note 2) |
|
|
|
|
|
|
|
(Note 2) |
Cash generated from
(used for): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
163.1 |
|
|
$ |
166.3 |
|
|
$ |
499.2 |
|
|
$ |
467.0 |
|
Adjustments for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross impairment loss on loans
receivable |
|
|
82.0 |
|
|
|
88.7 |
|
|
|
323.7 |
|
|
|
352.0 |
|
|
Depreciation on property and
equipment and investment property |
|
|
66.1 |
|
|
|
66.3 |
|
|
|
248.9 |
|
|
|
229.8 |
|
|
Income tax expense |
|
|
53.5 |
|
|
|
64.6 |
|
|
|
178.0 |
|
|
|
162.9 |
|
|
Net finance costs |
|
|
33.4 |
|
|
|
32.9 |
|
|
|
126.2 |
|
|
|
132.2 |
|
|
Amortization of intangible
assets |
|
|
21.7 |
|
|
|
20.3 |
|
|
|
86.2 |
|
|
|
66.3 |
|
|
Changes in fair value of
derivative instruments |
|
|
(2.4) |
|
|
|
(28.3) |
|
|
|
(7.7) |
|
|
|
(3.1) |
|
|
Deferred income taxes |
|
|
(3.8) |
|
|
|
(10.0) |
|
|
|
16.5 |
|
|
|
(6.4) |
|
|
Other |
|
|
2.4 |
|
|
|
0.5 |
|
|
|
13.7 |
|
|
|
9.8 |
|
|
Gain on revaluation of shares |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(10.4) |
|
|
|
416.0 |
|
|
|
401.3 |
|
|
|
1,484.7 |
|
|
|
1,400.1 |
|
Changes in working
capital and other |
|
|
102.4 |
|
|
|
164.8 |
|
|
|
(434.0) |
|
|
|
219.6 |
Cash generated from
operating activities before interest and income taxes |
|
|
518.4 |
|
|
|
566.1 |
|
|
|
1,050.7 |
|
|
|
1,619.7 |
|
Interest paid |
|
|
(41.0) |
|
|
|
(47.4) |
|
|
|
(155.3) |
|
|
|
(176.6) |
|
Interest received |
|
|
3.0 |
|
|
|
2.4 |
|
|
|
8.9 |
|
|
|
26.1 |
|
Income taxes paid |
|
|
(49.0) |
|
|
|
18.3 |
|
|
|
(161.3) |
|
|
|
(63.7) |
Cash generated from
operating activities |
|
|
431.4 |
|
|
|
539.4 |
|
|
|
743.0 |
|
|
|
1,405.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing
activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of FGL
Sports |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(739.9) |
|
Acquisition of
short-term investments |
|
|
(46.2) |
|
|
|
(29.7) |
|
|
|
(264.0) |
|
|
|
(334.8) |
|
Acquisition of
long-term investments |
|
|
(25.6) |
|
|
|
- |
|
|
|
(130.0) |
|
|
|
(123.1) |
|
Additions to property
and equipment and investment property |
|
|
(62.8) |
|
|
|
(79.2) |
|
|
|
(222.3) |
|
|
|
(230.5) |
|
Additions to
intangible assets |
|
|
(20.8) |
|
|
|
(31.3) |
|
|
|
(64.3) |
|
|
|
(128.9) |
|
Long-term receivables
and other assets |
|
|
25.2 |
|
|
|
2.8 |
|
|
|
17.6 |
|
|
|
(3.2) |
|
Proceeds from the
disposition of long-term investments |
|
|
- |
|
|
|
- |
|
|
|
4.7 |
|
|
|
18.1 |
|
Proceeds from the
maturity and disposition of short-term investments |
|
|
129.1 |
|
|
|
39.4 |
|
|
|
360.7 |
|
|
|
364.0 |
|
Proceeds on
disposition of property and equipment, investment property and
assets held for sale |
|
|
24.3 |
|
|
|
11.5 |
|
|
|
45.0 |
|
|
|
21.0 |
|
Other |
|
|
- |
|
|
|
(3.5) |
|
|
|
(8.9) |
|
|
|
(4.1) |
Cash generated from
(used for) investing activities |
|
|
23.2 |
|
|
|
(90.0) |
|
|
|
(261.5) |
|
|
|
(1,161.4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing
activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (repayment)
issuance of short-term borrowings |
|
|
(14.6) |
|
|
|
(233.5) |
|
|
|
(233.7) |
|
|
|
10.1 |
|
Issuance of loans
payable |
|
|
58.9 |
|
|
|
32.9 |
|
|
|
235.3 |
|
|
|
129.3 |
|
Repayment of loans
payable |
|
|
(85.4) |
|
|
|
(62.4) |
|
|
|
(240.3) |
|
|
|
(187.6) |
|
Issuance of share
capital |
|
|
1.1 |
|
|
|
1.1 |
|
|
|
12.4 |
|
|
|
11.6 |
|
Repurchase of share
capital |
|
|
(21.9) |
|
|
|
(1.2) |
|
|
|
(33.1) |
|
|
|
(11.9) |
|
Issuance of long-term
debt |
|
|
423.2 |
|
|
|
- |
|
|
|
637.4 |
|
|
|
- |
|
Repayment of long-term
debt and finance lease liabilities |
|
|
(8.3) |
|
|
|
(336.6) |
|
|
|
(30.1) |
|
|
|
(355.6) |
|
Dividends paid |
|
|
(24.4) |
|
|
|
(22.4) |
|
|
|
(97.7) |
|
|
|
(89.6) |
|
Payment of transaction
costs related to long-term debt |
|
|
(2.0) |
|
|
|
- |
|
|
|
(3.2) |
|
|
|
- |
Cash generated from
(used for) financing activities |
|
|
326.6 |
|
|
|
(622.1) |
|
|
|
247.0 |
|
|
|
(493.7) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash generated
(used) in the period |
|
|
781.2 |
|
|
|
(172.7) |
|
|
|
728.5 |
|
|
|
(249.6) |
Cash and cash
equivalents, net of bank indebtedness, beginning of period |
|
|
148.4 |
|
|
|
373.4 |
|
|
|
201.0 |
|
|
|
450.9 |
Effect of exchange
rate fluctuations on cash held |
|
|
(0.1) |
|
|
|
0.3 |
|
|
|
- |
|
|
|
(0.3) |
Cash and cash
equivalents, net of bank indebtedness, end of period |
|
$ |
929.5 |
|
|
$ |
201.0 |
|
|
$ |
929.5 |
|
|
$ |
201.0 |
Note 2
Certain of the prior period's figures have been reclassified to
correspond to the current-year presentation.
Issuance/repayment of short-term borrowings, which were previously
shown separately, are presented as net (repayment) issuance of
short-term borrowings in financing activities. There is no
impact on cash used for financing activities as a result of this
change in presentation.
SOURCE CANADIAN TIRE CORPORATION, LIMITED
PDF available at:
http://stream1.newswire.ca/media/2013/02/21/20130221_C7364_DOC_EN_23942.pdf