In the news release, c6001, Strong Performance Across All
Businesses Drives Q3 Growth at Canadian Tire Corporation,
disseminated today at 07:56e, we are advised by the company that
the dividend amount under the "Quarterly Dividend" section is
"$0.525 per share" not "$2.10 per share". Complete, corrected
release follows:
Strong Performance Across All Businesses Drives Q3 Growth at
Canadian Tire Corporation
- Same store sales up 3.2% at Canadian Tire, 8.5% at FGL Sports
and 6.8% at Mark's
- Diluted EPS up 21.2% or 16.5% after normalizing for one-time
costs related to the formation of CT REIT in 2013
- Annual dividend increased 5% from $2.00 to $2.10 per
share
TORONTO, Nov. 6, 2014 /CNW/ - Canadian Tire
Corporation, Limited (TSX:CTC, TSX:CTC.a) today released third
quarter results that demonstrate strong performance and growth in
all of the Company's business units when compared to the third
quarter of 2013.
"The strong performance this quarter is very rewarding given
that it was achieved against a strong quarter last year and
reflects the successful culmination of our recent efforts to
strengthen our brand and improve the in-store experience across our
retail businesses," said Stephen
Wetmore, CEO, Canadian Tire Corporation. "Financial Services
also delivered another excellent quarter of strong receivables
growth and continued to execute well on integration efforts with
the retail businesses."
CONSOLIDATED OVERVIEW
- Third quarter consolidated retail sales increased 4.4% over the
same period last year or $142.2
million to $3.4 billion.
- Consolidated revenue increased 3.9% or $113.9 million to $3.1
billion in the third quarter.
- Gross average credit card receivables grew 7.1% over the same
period last year.
- Diluted EPS was $2.17 in the
quarter, up 21.2% or 16.5% over the third quarter of 2013 after
normalizing for the one-time costs associated with the formation of
CT REIT last year, reflecting strong revenue and gross margin
contribution from both the Retail and Financial Services
segments.
RETAIL SEGMENT OVERVIEW
- Retail segment revenue increased 3.5% or $94.6 million to $2.8
billion in the quarter.
- Income before income taxes in the Retail segment was up 3.7% or
$4.7 million to $130.8 million over
the third quarter last year.
- Canadian Tire Retail delivered growth across its categories
generating sales increases of 3.7% and same store sales of 3.2%
over the third quarter last year.
- FGL Sports saw retail sales increase 13.0% and same store sales
up 8.5% over the same quarter last year reflecting strong growth
across key banners. Sport Chek, its largest banner, achieved its
fourth quarter of double digit same store sales growth with an
increase of 11.2% in the third quarter.
- Mark's retail sales grew 6.5% and same store sales were up
6.8%.
- Petroleum sales decreased 0.4% in the quarter largely related
to a decline in gasoline volume, partially offset by higher gas
prices and an increase in non-gasoline sales.
CT REIT OVERVIEW
- As disclosed in the Q3 2014 CT
REIT release issued on November 3, 2014,
CT REIT completed five previously announced acquisitions in
the third quarter at a total cost of $124.2
million.
- In addition, the trustees of CT REIT approved an increase in
the rate of monthly distributions beginning in January 2015, representing a 2% increase and a
new annualized rate of $0.663.
FINANCIAL SERVICES OVERVIEW
- Financial Services posted third quarter gross average credit
card receivables growth of 7.1%, driven by growth in active
accounts and increased average account balances.
- Subsequent to the quarter, the Company's previously announced
strategic partnership with Scotiabank was completed. Scotiabank
acquired a 20% equity interest in the Company's financial services
business for $500 million in cash and
concluded a comprehensive co-marketing agreement expected to
attract new customers to the Company's retail businesses, providing
opportunities to drive significant growth for each partner.
CAPITAL EXPENDITURES
- Operating capital expenditures of $152.8
million in the quarter include investments in network growth
and digital technologies.
- Operating capital spending for 2014 is on track to be at the
higher end of the previously stated range of $500.0 million to $525.0 million, excluding
investments required for additional distribution capacity and to
fund CT REIT's growth strategy.
QUARTERLY DIVIDEND
- The Company announced earlier today that it has declared a 5%
increase in the quarterly dividend to $0.525 per share on each Common and Class A
Non-Voting share. The dividend is payable March 1, 2015 to Common and Class A Non-Voting
shareholders of record as of January 31,
2015. The dividend is considered an "eligible dividend" for
tax purposes.
NORMAL COURSE ISSUER BID UPDATE
- As at September 27, 2014, the
Company had completed its previously announced share repurchase
commitment and had repurchased 1,874,244 Class A Non-Voting Shares
at a cost of $200.0 million under its
normal course issuer bid.
- The Company will continue to acquire Class A Non-Voting Shares
under its 2014 normal course issuer bid, up to the maximum amount
permitted under the existing bid.
For additional information, refer to the Company's Q3 2014
Management's Discussion and Analysis.
To view a PDF version of Canadian Tire Corporation's full
quarterly earnings report please see:
http://files.newswire.ca/116/CantireQ3MDAFSNotes.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 anticipated financial position, results
of operations and operating environment. Readers are cautioned
that such information may not be appropriate for other
purposes.
All statements other than statements of historical facts
included in this document may constitute forward-looking
information, including but not limited to, statements concerning
the Company's anticipated benefits from its partnership with
Scotiabank under the heading "Financial Services Overview", the
Company's operating capital spending for 2014 under the heading
"Capital Expenditures", the Company's intention to acquire Class A
Non-Voting Shares under its 2014 normal course issuer bid under the
heading "Normal Course Issuer Bid Update" and other 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. Forward-looking information
is based on the reasonable assumptions, estimates, analyses,
beliefs 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 information is
provided.
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 document is based on
information, assumptions and beliefs 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 more information on the risks, uncertainties and assumptions
that could cause the Company's actual results to differ from
current expectations, refer to the "Risk Factors" section of our
Annual Information Form for fiscal 2013 and to sections 7.4.1.3
(Retail segment business risks), 7.4.2.3 (CT REIT segment business
risks), 7.4.3.3 (Financial Services segment business risks) and
11.0 (Enterprise Risk Management) and all subsections thereunder of
our 2013 Management's Discussion and Analysis, as well as the
Company'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, 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
12:00 p.m. ET on November 6, 2014. The conference call will be
available simultaneously and in its entirety to all interested
investors and the news media through a webcast at
http://corp.canadiantire.ca/EN/investors, 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
categories. 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, and FGL Sports (Sport Chek, Hockey
Experts, Sports Experts, National Sports, Intersport, Pro Hockey
Life and Atmosphere), which offers the best active wear brands. The
nearly 1,700 retail and gasoline outlets are supported and
strengthened by our Financial Services division and the tens of
thousands of people employed across the Company. For more
information, visit Corp.CanadianTire.ca.
SOURCE CANADIAN TIRE CORPORATION, LIMITED