Same-store sales grew 23% and Adjusted EBITDA
rose 30%; Completed acquisition of Chico
MARKHAM,
ON, May 10, 2022 /CNW/ - Pet Valu Holdings
Ltd. ("Pet Valu" or the "Company") (TSX: PET), the leading
Canadian specialty retailer of pet food and pet-related supplies,
today announced its financial results for the first
quarter ended April 2, 2022.
First Quarter Highlights
- System-wide sales(1) were $285.9 million, an increase of 30.2% versus the
prior year. Excluding Chico(2), system-wide sales
grew 25.8%, primarily driven by same-store sales
growth(1) of 22.8%. On a two-year basis,
same-store sales growth(1) was 29.7%.
- Revenue was $213.3 million, up
25.4% versus the prior year, in-line with system-wide sales growth.
Excluding Chico, revenue grew 24.9%.
- Adjusted EBITDA(3) grew 29.9% to $46.8 million, representing 21.9% of revenue, up
70 basis points versus the prior year. Operating income was
$35.2 million, up 55.4% versus the
prior year.
- Net income was $22.6 million, up
from $3.4 million in the prior
year.
- Adjusted Net Income(3) was $24.8 million or $0.35 per diluted share.
- Opened 6 new stores and acquired 66 stores through the
acquisition of Chico, ending the quarter with 705 stores across the
network.
- The Board of Directors declared a dividend of $0.06 per common share.
2022 Outlook
- The Company now expects revenue between $870 and $895
million, supported by same-store sales growth between 9% and
12% and 35-45 new store openings, Adjusted EBITDA between
$191 and $198
million and Adjusted Net Income per Diluted
Share(2) between $1.37 and $1.44.
"We are very pleased with our performance in the first quarter
as the business once again delivered on each element of our growth
formula," said Richard Maltsbarger,
President, and Chief Executive Officer. "Our strong same-store
sales growth was supported by favourable traffic and basket trends,
which together with our loyalty data highlights our continued
ability to draw in new devoted pet lovers, while increasing
share-of-wallet with our existing customers, driving overall market
share gains.
"Factoring in our recent performance, we have raised our outlook
for the full-year," continued Mr. Maltsbarger. "As we navigate the
confluence of rising fuel, freight and vendor product costs, our
teams remain acutely focused on delivering value together with the
best retail experience to our devoted pet lovers, coast to coast in
our 700+ local store network and everywhere online."
Financial Results for the First Quarter Fiscal 2022
All comparative figures below are for the 13-week period
ended April 2, 2022, compared to the 13-week period ended
April 3, 2021.
Revenue increased by 25.4% to $213.3 million, compared to $170.1 million in the first quarter last year.
The current quarter includes $0.8
million of franchise and other revenues from the acquisition
of Chico. The increase in revenue was driven by growth in
retail sales, as well as franchise and other revenues.
Same-store sales growth(1) was 22.8% in
Q1 2022 primarily driven by a 18.4% increase in same-store
transactions and a 3.7% increase in same-store average spend per
transaction. This is compared to same-store sales growth of 6.9% in
Q1 2021 primarily consisted of a 11.2% increase in same-store
average spend per transaction and a (3.8)% decrease in same-store
transactions. Same-store transactions and same-store average spend
per transaction in Q1 2021 were impacted by a shift in consumer
behaviour associated with COVID-19 restrictions.
Gross profit increased by $17.4
million, or 29.2%, to $77.1
million in Q1 2022, compared to $59.7
million in Q1 2021. Gross profit margin was 36.1% in Q1 2022
compared to 35.1% in Q1 2021. The gross profit margin increase was
primarily driven by: (i) favourable product margins due to
compression of margins in Q1 2021 related to pandemic operating
restrictions; (ii) leverage gained on fixed costs due to higher
revenue; partially offset by (iii) the absorption of incremental
freight costs due to global supply chain constraints; and (iv)
higher wholesale merchandise sales due to recovery from pandemic
operating restrictions in Ontario
in Q1 2021 and increased franchise penetration.
Selling, general and administrative ("SG&A") expenses
increased by 13.2% to $41.9 million,
compared to $37.0 million in the
first quarter last year. SG&A expenses were 19.7% of revenue
compared to 21.8% of revenue in the first quarter last year. The
increase of $4.9 million in SG&A
expenses was primarily due to: (i) increased compensation costs as
a result of headcount investments and higher share-based
compensation; (ii) higher technology and telecommunication costs to
modernize our technology infrastructure and expand our omni-channel
capabilities; (iii) higher depreciation and amortization; and (iv)
partially offset by lower professional fees as the comparative
quarter included fees to support the preparation of the initial
public offering (the "Offering") and separation activities.
Adjusted EBITDA(3) was $46.8 million, or 21.9% of revenue, compared to
$36.0 million, or 21.2% of
revenue, in the first quarter last year.
Net interest expense was $4.0
million in Q1 2022, a decrease of $14.0 million, or 77.9%, compared to $18.0 million in Q1 2021. The decrease was
primarily driven by lower interest expense on the 2021 Term
Facility (as defined in the Company's Management Discussion and
Analysis ("MD&A") for the first quarter ended April 2, 2022) resulting from lower interest
rates and lower total debt outstanding compared the to 2016 Term
Loan (as defined in the MD&A) which was outstanding in Q1 2021
and a decrease in other financing fees.
Income taxes were $8.6 million in Q1 2022 compared to
$1.3 million in Q1 2021, an
increase of $7.2 million year over
year. The increase in income taxes was primarily the result of
higher taxable earnings in Q1 2022. The effective income tax rate
was 27.4% in Q1 2022 compared to 27.8% in Q1 2021. The effective
tax rates are higher than the blended statutory rate of 26.5%
primarily because of non-deductible expenses.
Net income was $22.6 million, an increase of $19.2 million from net income of
$3.4 million in the first
quarter last year. The change in net income is explained from the
factors described above.
Adjusted Net Income(3) increased by
$17.5 million to $24.8 million in Q1 2022, compared to
$7.3 million in Q1 2021.
Adjusted Net Income as a percentage of revenue was 11.6% in Q1 2022
and 4.3% in Q1 2021.
Adjusted Net Income per Diluted
Share(3) was $0.35 compared to $0.13 in the first quarter last year.
Cash and cash equivalents at the end of the first quarter
totaled $30.2 million.
Free Cash Flow(3) amounted to $(15.1) million in Q1 2022 including the
acquisition of Chico. This compares to Free Cash
Flow(3) of $(14.6)
million in Q1 2021.
Inventory at end of the first quarter of 2022 was
$100.5 million compared to
$91.7 million at the end of
fiscal 2021, an increase of $8.8
million primarily to support supply chain stability in light
of global supply chain challenges and growth in revenue.
(1) This is
a supplementary financial measure. Refer to "Non-IFRS Measures and
Supplementary Financial Measures" below and to the section entitled
"How We Assess the Performance of our Business" in the MD&A for
the definition of same-store sales growth.
|
(2) On
February 25, 2022, the Company acquired all of the issued and
outstanding shares of Les Franchises Chico Inc. and 9353-0145
Quebec Inc. (collectively referred to as "Chico"), a franchisor of
pet specialty stores in Quebec, Canada.
|
(3)
This is a Non-IFRS financial measure. Non-IFRS financial
measures are not standardized financial measures under IFRS and
might not be comparable to similar financial measures disclosed by
other issuers. Refer to "Non-IFRS Measures and Supplementary
Financial Measures" and "Selected Consolidated Financial
Information" below, including for a reconciliation of the non-IFRS
measures used in this release to the most comparable IFRS measures.
Also refer to sections entitled "How We Assess the Performance of
our Business", "Non-IFRS Measures and Supplementary Financial
Measures" and "Selected Consolidated Financial Information and
Industry Metrics" in the MD&A for the first quarter ended April
2, 2022, incorporated by reference herein, for further details
concerning Adjusted EBITDA, Adjusted Net Income, Adjusted Net
Income per Diluted Share and Free Cash Flow including definitions
and reconciliations to the relevant reported IFRS
measure.
|
Dividends
On May 9, 2022, the Board of
Directors of the Company declared a dividend of $0.06 per common share payable on June 15, 2022 to holders of common shares of
record as at the close of business on May
31, 2022. This represents an increase of $0.05 per common share versus the dividend paid
in fourth quarter 2021.
Outlook
The following information, except for same-store sales growth,
includes the impact of Chico, which was acquired on February 25, 2022. Based on performance in the
first quarter, and expectations for the balance of the year, the
Company now expects to achieve the following for the full year
2022:
- Revenue between $870 and
$895 million, supported by same-store
sales growth of between 9% and 12%, and 35 to 45 new store
openings;
- Adjusted EBITDA between $191 and
$198 million, which incorporates a
full year of public company costs, as well as incremental
investments in labour as well as storage and throughput capacity,
disclosed in late 2021;
- Adjusted Net Income per Diluted Share between $1.37 and $1.44;
- Information technology expenses of approximately $9 million and share-based compensation of
approximately $7 million, both of
which are excluded from Adjusted EBITDA and Adjusted Net Income per
diluted share; and
- Net Capital Expenditures(4) between $35 and $40
million, including approximately $15
million in advanced payments and leasehold improvements
related to the build-out of the new distribution centre in the
Greater Toronto Area.
Due to the impact of various forms of government mandated
operating restrictions imposed in early 2021, the Company expects
year-over-year growth to be stronger in the first half of 2022,
compared to year-over-year growth in the second half of the year.
The relative distribution of revenue is expected to be more
representative of pre-pandemic years, such as 2019.
(4)
Net Capital Expenditures represents purchase of property and
equipment, purchase of intangible assets, proceeds on disposal of
property and equipment and tenant allowances.
|
Conference Call Details
A conference call to discuss the Company's first quarter results
is scheduled for May 10, 2022, at
8:30 a.m. ET. To access Pet Valu's
conference call, please dial 1-888-350-3870, (access code:
5518274). A live webcast of the call will also be available through
the Events & Presentations section of the Company's website at
https://investors.petvalu.com/.
For those unable to participate, a playback will be available
shortly after the conclusion of the call by dialing 1-800-770-2030
(ID: 5518274#) and will be accessible until May 17, 2022. The webcast will also be archived
and available through the Events & Presentations section of the
Company's website at https://investors.petvalu.com/.
About Pet Valu
Pet Valu is Canada's leading
retailer of pet food and pet-related supplies with over 700
corporate-owned or franchised locations across the country. For
more than 40 years, Pet Valu has earned the trust and loyalty of
pet parents by offering knowledgeable customer service, a premium
product offering and engaging in-store services. Pet Valu's
neighbourhood stores offer more than 7,000 competitively-priced
products, including a broad assortment of premium, super premium,
holistic and award-winning proprietary brands. To learn more,
please visit: www.petvalu.com.
Basis of Presentation - Carve-out Financial
Information
Prior to the Offering, the Company was not operating as a
stand-alone entity and as a result, the financial information for
periods prior to June 30, 2021 are presented on a carve-out
basis that includes only legal entities representing the Canadian
operations of Pet Valu Holdings Ltd. (referred to as the "Group",
prior to the distribution of its U.S. operations to its
shareholder). For more information, see the Company's unaudited
condensed consolidated financial statements and related MD&A
for the 13-week periods ended April 2, 2022 and April 3,
2021, respectively.
Non-IFRS Measures and Supplementary Financial
Measures
This press release makes reference to certain non-IFRS 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, they should not be
considered in isolation nor as a substitute for analysis of the
Company's financial information reported under IFRS. Pet Valu uses
non-IFRS measures, including "EBITDA", "Adjusted EBITDA", "Adjusted
Net Income", Adjusted Net Income per Diluted Share" and "Free Cash
Flow". This press release also makes reference to certain
supplementary financial measures that are commonly used in the
retail industry, including "System-wide stores", "System-wide
sales", "Same-store sales", and "Same-store sales growth". These
non-IFRS measures and supplementary financial measures are used to
provide investors with supplemental measures of Pet Valu's
operating performance and thus highlight trends in its core
business that may not otherwise be apparent when relying solely on
IFRS financial measures. The Company also believes that securities
analysts, investors and other interested parties frequently use
non-IFRS measures and these supplementary financial measures in the
evaluation of issuers. Management uses non-IFRS measures in order
to facilitate operating performance comparisons from period to
period, to prepare annual operating budgets and to determine
components of management compensation. Refer to the MD&A for
the first quarter ended April 2, 2022
for further information on non-IFRS measures and industry metrics,
including for their definition and, for non-IFRS measures, a
reconciliation to the most comparable IFRS measure.
Forward-Looking Information
Some of the information contained in this press release is
forward-looking information. Forward-looking information is
provided as of the date of this press release and is based on
management's opinions, estimates and assumptions in light of its
experience and perception of historical trends, current trends,
current conditions and expected future developments, as well as
other factors that management believes appropriate and reasonable
in the circumstances. Pet Valu does not undertake to update any
such forward-looking information whether as a result of new
information, future events or otherwise, except as required under
applicable securities laws in Canada. Actual results and the timing of
events may differ materially from those anticipated in the
forward-looking information as a result of various factors.
Particularly, information regarding our expectations of future
results, targets, performance achievements, prospects or
opportunities is forward-looking information, which is based on the
factors and assumptions, and subject to the risks, as set out
herein and in the Company's annual information form ("AIF") dated
March 8, 2022. 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.
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 information, including, without limitation, the
factors discussed in the "Risk Factors" section of the AIF. A copy
of the AIF and the Company's other publicly filed documents can be
accessed under the Company's profile on the System for Electronic
Document Analysis and Retrieval ("SEDAR") at www.sedar.com.
The Company cautions that the list of risk factors and
uncertainties described in the AIF is not exhaustive and other
factors could also adversely affect its results. Readers are urged
to consider the risks, uncertainties and assumptions carefully in
evaluating forward-looking information and are cautioned not to
place undue reliance on such information.
SELECTED CONSOLIDATED FINANCIAL INFORMATION
Condensed Interim Consolidated Statements of Income and
Comprehensive Income
(Unaudited, expressed in thousands of Canadian dollars, except per
share amounts)
|
Quarters
Ended
|
|
April 2,
2022
|
April 3,
2021
|
|
13
weeks
|
13
weeks
|
|
|
|
Revenue:
|
|
|
Retail
sales
|
$
93,075
|
$
79,644
|
Franchise
and other revenues
|
120,178
|
90,428
|
Total
revenue
|
213,253
|
170,072
|
|
|
|
Cost of
sales
|
136,173
|
110,409
|
Gross
profit
|
77,080
|
59,663
|
|
|
|
Selling, general and
administrative expenses
|
41,919
|
37,041
|
Total operating
income
|
35,161
|
22,622
|
|
|
|
Interest expenses,
net
|
3,981
|
17,997
|
Gain on foreign
exchange
|
(21)
|
(98)
|
Share of loss from
associate
|
28
|
—
|
Income before income
taxes
|
31,173
|
4,723
|
|
|
|
Income taxes
expense
|
8,552
|
1,314
|
Net
income
|
22,621
|
3,409
|
|
|
|
Less:
|
|
|
Net
income attributable to non-controlling interests
|
—
|
1,781
|
Net income
attributable to the shareholders of the Company
|
22,621
|
1,628
|
|
|
|
Other comprehensive
income, net of tax:
|
|
|
Currency translation
adjustments that may be reclassified to net income, net of
tax
|
(2)
|
9,615
|
Comprehensive income
for the
period
attributable to the shareholders of the Company
|
$
22,619
|
$
11,243
|
|
|
|
Basic net income per
share attributable to the common shareholders
|
$
0.32
|
$
0.03
|
Diluted net income
per share attributable to the common shareholders
|
$
0.32
|
$
0.03
|
|
|
|
|
|
|
Reconciliation of Net Income to EBITDA and Adjusted
EBITDA
(Unaudited, in thousands of Canadian dollars
unless otherwise noted)
|
|
Quarters
Ended
|
|
|
April 2,
2022
|
April 3,
2021
|
|
|
13
weeks
|
13
weeks
|
Reconciliation of
net income to Adjusted EBITDA:
|
|
|
|
Net income
|
|
$
22,621
|
$
3,409
|
Depreciation and
amortization
|
|
8,876
|
8,089
|
Interest expenses,
net
|
|
3,981
|
17,997
|
Income taxes
expense
|
|
8,552
|
1,314
|
EBITDA
|
|
44,030
|
30,809
|
Adjustments to
EBITDA:
|
|
|
|
Management fees(1)
|
|
—
|
240
|
Information technology transformation
costs(2)
|
|
1,070
|
1,252
|
IPO
readiness and separation costs(3)
|
|
—
|
1,329
|
Business
transformation costs(4)
|
|
—
|
619
|
Other
professional fees(5)
|
|
648
|
1,188
|
Share-based compensation(6)
|
|
1,027
|
674
|
Gain on
foreign exchange(7)
|
|
(21)
|
(98)
|
Share of
loss from associate
|
|
28
|
—
|
Adjusted
EBITDA
|
|
$
46,782
|
$
36,013
|
Adjusted EBITDA as a
percentage of revenue
|
|
21.9%
|
21.2%
|
Notes:
|
(1)
|
Represents management
fees paid to entities affiliated with Roark Capital Management, LLC
("Roark"). Concurrent with the closing of the Offering, the Company
terminated the management agreement with Roark.
|
(2)
|
Represents discrete,
project-based implementation costs associated with new information
technology systems and discrete software-as-a-service ("SaaS")
arrangements for transformational initiatives supporting
merchandise planning, inventory and order management, e-commerce
and omni-channel capabilities, customer relationship management and
other key processes.
|
(3)
|
Represents expenses
incurred related to the following: (i) consulting, legal and
accounting fees for projects and process improvements incurred in
the preparation of the Offering and the legal restructuring to
separate the Company from the Group; and (ii) retention bonuses for
certain key management personnel in connection with the
Offering.
|
(4)
|
Predominately
represents severance, recruitment, and consulting expenses
associated to the strategic reorganization in the senior leadership
team and key functional departments as part of the Company's
separation from the Group.
|
(5)
|
Professional fees
primarily incurred with respect to: (i) the CRA's examination of
the Company's Canadian tax filings for the 2016 fiscal year; and
(ii) acquisition costs incurred in relation to Chico in Q1
2022.
|
(6)
|
Represents share-based
compensation in respect of our amended and restated share option
plan, long-term incentive plan, and deferred share unit
plan.
|
(7)
|
Represents foreign
exchange gains and losses.
|
Reconciliation of Net Income to Adjusted Net
Income
(Unaudited, in thousands of Canadian dollars
unless otherwise noted)
|
|
Quarters
Ended
|
|
|
April 2,
2022
|
April 3,
2021
|
|
|
13
weeks
|
13
weeks
|
Reconciliation of
net income to Adjusted Net Income:
|
|
|
|
Net income
|
|
$
22,621
|
$
3,409
|
Adjustments to net
income:
|
|
|
|
Management fees(1)
|
|
—
|
240
|
Information technology transformation
costs(2)
|
|
1,070
|
1,252
|
IPO
readiness and separation costs(3)
|
|
—
|
1,329
|
Business
transformation costs(4)
|
|
—
|
619
|
Other
professional fees(5)
|
|
648
|
1,188
|
Share-based compensation(6)
|
|
1,027
|
674
|
Gain on
foreign exchange(7)
|
|
(21)
|
(98)
|
Share of
loss from associate
|
|
28
|
—
|
Tax
effect of adjustments to net income
|
|
(554)
|
(1,321)
|
Adjusted Net
Income
|
|
$
24,819
|
$
7,292
|
Adjusted Net Income
as a percentage of revenue
|
|
11.6%
|
4.3%
|
Adjusted Net Income
per Diluted Share(8)
|
|
$
0.35
|
$
0.13
|
Notes:
|
(1)
|
Represents management
fees paid to entities affiliated with Roark. Concurrent with the
closing of the Offering, the Company terminated the management
agreement with Roark.
|
(2)
|
Represents discrete,
project-based implementation costs associated with new information
technology systems and discrete SaaS arrangements for
transformational initiatives supporting merchandise planning,
inventory and order management, e-commerce and omni-channel
capabilities, customer relationship management and other key
processes.
|
(3)
|
Represents expenses
incurred related to the following: (i) consulting, legal and
accounting fees for projects and process improvements incurred in
the preparation of the Offering and the legal restructuring to
separate the Company from the Group; and (ii) retention bonuses for
certain key management personnel in connection with the
Offering.
|
(4)
|
Predominately
represents severance, recruitment, and consulting expenses
associated to the strategic reorganization in the senior leadership
team and key functional departments as part of the Company's
separation from the Group.
|
(5)
|
Professional fees
primarily incurred with respect to: (i) the CRA's examination of
the Company's Canadian tax filings for the 2016 fiscal year; and
(ii) acquisition costs incurred in relation to Chico in Q1
2022.
|
(6)
|
Represents share-based
compensation in respect of our amended and restated share option
plan, long-term incentive plan, and deferred share unit
plan.
|
(7)
|
Represents foreign
exchange gains and losses.
|
(8)
|
Adjusted Net Income per
Diluted Share for Q1 2021 is calculated on a pro-forma basis using
the weighted average common shares outstanding based on the capital
reorganization and the amended and restated share option plan
immediately prior to the Offering.
|
Condensed Interim Consolidated Statements of Cash
Flows
(Unaudited, in thousands of Canadian dollars)
|
Quarters
Ended
|
|
April 2,
2022
|
April 3,
2021
|
|
13
weeks
|
13
weeks
|
Cash provided by
(used in):
|
|
|
Operating activities:
|
|
|
Net
income for the period
|
$
22,621
|
$
3,409
|
Adjustments for:
|
|
|
Depreciation and amortization
|
8,876
|
8,089
|
Deferred franchise fees
|
(48)
|
213
|
Gain on disposal of property and equipment
|
(8)
|
(131)
|
Loss (gain) on sale of right-of-use assets
|
38
|
(39)
|
Loss on foreign exchange
|
(21)
|
(98)
|
Share-based compensation expense
|
1,027
|
—
|
Share of loss from associate
|
28
|
—
|
Interest expenses, net
|
3,981
|
17,997
|
Income taxes expense
|
8,552
|
1,314
|
Income taxes paid
|
(19,325)
|
(5,215)
|
Change in
non-cash operating working capital:
|
|
|
Accounts receivable
|
285
|
(2,638)
|
Inventories
|
(8,237)
|
(7,333)
|
Prepaid expenses
|
(670)
|
532
|
Accounts payable and accrued liabilities
|
(7,628)
|
(19,142)
|
Net cash provided by
operating activities
|
9,471
|
(3,042)
|
Financing
activities:
|
|
|
Proceeds from exercise of share options
|
587
|
—
|
Repayment of 2021 Term Facility
|
(2,218)
|
—
|
Repayment of 2016 Term Loans
|
—
|
(3,707)
|
Interest paid on long-term debt
|
(2,955)
|
(22,615)
|
Repayment of principal on lease liabilities
|
(11,769)
|
(12,186)
|
Interest paid on lease liabilities
|
(2,907)
|
(2,880)
|
Financing costs
|
—
|
(917)
|
Standby letter of credit commitment fees
|
(314)
|
(3,690)
|
Net distributions
|
—
|
(14,976)
|
Net
cash used in financing activities
|
(19,576)
|
(60,971)
|
Investing
activities:
|
|
|
Business acquisition, net of cash
|
(12,829)
|
—
|
Purchases of property and equipment
|
(5,120)
|
(4,160)
|
Purchase of intangible assets
|
(613)
|
(208)
|
Proceeds on disposal of property and equipment
|
62
|
564
|
Right-of-use asset initial direct costs
|
(340)
|
(380)
|
Tenant allowances
|
498
|
271
|
Notes receivable
|
190
|
60
|
Lease receivables
|
6,522
|
5,731
|
Interest received on lease receivables and other
|
1,912
|
1,681
|
Net
cash provided by investing activities
|
(9,718)
|
3,559
|
Effect of exchange
rate on cash
|
(17)
|
27
|
Net decrease in
cash
|
(19,840)
|
(60,427)
|
Cash, beginning of
period
|
50,068
|
71,481
|
Cash, end of
period
|
$
30,228
|
$
11,054
|
Free Cash Flows
(Unaudited, expressed in
thousands of Canadian dollars)
|
Quarters
Ended
|
|
April 2,
2022
|
April 3,
2021
|
|
13
weeks
|
13
weeks
|
|
|
|
Cash provided by (used
in) operating activities
|
$
9,471
|
$
(3,042)
|
Cash (used in) provided
by investing activities
|
(9,718)
|
3,559
|
Repayment of principal
on lease liabilities
|
(11,769)
|
(12,186)
|
Interest paid on lease
liabilities
|
(2,907)
|
(2,880)
|
Notes
receivables
|
(190)
|
(60)
|
Free Cash
Flow
|
$
(15,113)
|
$
(14,609)
|
|
|
|
Consolidated Statements of Financial
Position
(Unaudited, expressed in thousands of Canadian
dollars)
|
As at April
2,
2022
|
As at January
1,
2022
|
|
|
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
Cash
|
$
30,228
|
$
50,068
|
Accounts
and other receivables
|
15,580
|
14,398
|
Inventories, net
|
100,454
|
91,699
|
Prepaid
expenses and other assets
|
11,742
|
10,432
|
Current
portion of lease receivable
|
26,986
|
26,621
|
Total current
assets
|
184,990
|
193,218
|
Non-current
assets:
|
|
|
Lease
receivables
|
120,685
|
121,936
|
Right-of-use assets, net
|
85,332
|
80,757
|
Property
and equipment, net
|
63,724
|
62,067
|
Intangible assets, net
|
51,184
|
37,359
|
Goodwill
|
98,061
|
92,938
|
Deferred
tax assets
|
5,565
|
5,601
|
Investment in associate
|
2,124
|
2,179
|
Other
assets
|
2,936
|
3,118
|
Total non-current
assets
|
429,611
|
405,955
|
|
|
|
Total
assets
|
$
614,601
|
$
599,173
|
|
|
|
Liabilities and
Shareholders' Deficit
|
|
|
|
|
|
Current
liabilities:
|
|
|
Accounts
payable and accrued liabilities
|
$
88,238
|
$
86,977
|
Income
taxes payable
|
3,444
|
13,553
|
Current
portion of deferred franchise fees
|
1,147
|
1,032
|
Current
portion of lease liabilities
|
47,781
|
41,960
|
Current
portion of long-term debt
|
11,094
|
8,875
|
Total current
liabilities
|
151,704
|
152,397
|
Non-current
liabilities:
|
|
|
Long-term
deferred franchise fees
|
3,506
|
3,183
|
Long-term
lease liabilities
|
194,677
|
196,954
|
Long-term
debt
|
332,484
|
336,621
|
Deferred
tax liabilities
|
6,975
|
4,540
|
Other
liabilities
|
133
|
—
|
Total non-current
liabilities
|
537,775
|
541,298
|
|
|
|
Total
liabilities
|
689,479
|
693,695
|
|
|
|
Shareholders'
deficit:
|
|
|
Common
shares
|
308,084
|
307,497
|
Contributed surplus
|
2,427
|
1,779
|
Deficit
|
(385,208)
|
(403,619)
|
Currency
translation reserve
|
(181)
|
(179)
|
Total shareholders'
deficit
|
(74,878)
|
(94,522)
|
|
|
|
Total liabilities
and shareholders' deficit
|
$
614,601
|
$
599,173
|
|
|
|
SOURCE Pet Valu Canada Inc.