Grew total sales 25%, expanded gross margins
and improved profitability
TORONTO, June 11, 2021 /CNW/
- Roots ("Roots," "Roots Canada" or the "Company")
(TSX: ROOT), a premium outdoor-lifestyle brand, today announced its
financial results for its first quarter ended May 1, 2021 ("Q1 2021"). All financial results
are reported in Canadian dollars unless otherwise stated. Certain
metrics, including those expressed on an adjusted basis, are
non-IFRS measures. See "Non-IFRS Measures and Industry
Metrics".
Roots Q1 2021 financial results reflect ongoing impacts of
COVID-19, most notably the temporary closure of the Company's North
American store fleet for approximately 30% of the quarter, compared
to closures for approximately 50% of the first quarter in fiscal
2020 ("Q1 2020").
Fiscal 2021 First Quarter Financial Highlights
- Total sales of $37.3 million, up
24.7% from $29.9 million in Q1
2020.
-
- Direct-to-Consumer ("DTC") sales of $31.4 million, up 27.6% from $24.6 million in Q1 2020.
- Gross margin of 57.5%, up 260 basis points from 54.9% in Q1
2020.
-
- DTC Gross Margin of 61.2%, up 320 basis points from 58.0% in Q1
2020.
- Selling, general and administrative expenses of $25.9 million, down from $27.8 million in Q1 2020.
- Adjusted EBITDA of ($2.5)
million, improved from ($7.5)
million in Q1 2020.
- Net loss per share of ($0.12),
improved from a net loss per share of ($0.18) in Q1 2020.
- Adjusted Net Loss per Share of ($0.10), improved from ($0.22) per Share in Q1 2020.
Fiscal 2021 First Quarter Business Highlights
- Increased eCommerce sales by approximately 50% year-over-year,
partially offsetting store sales declines during periods of
closure.
- Released a limited-edition, premium fleece collection, which
was crafted at the Company's Canadian leather factory and sold out
in 48 hours.
- Amplified the brand with the launch of multiple collaborations,
including Révolutionnaire x Roots, Roots x Emma Knight and ROOTS X AVENGERS
S.T.A.T.I.O.N.
- Generated excitement with new and existing customers with the
release of the Roots Retro Collection, a re-launch of a beloved
logo from the Company's archives, and expanded colour options for
some of the Company's most iconic leather products.
- Furthered the Company's commitment to supporting the
communities in which it operates, donating a portion of sales from
the Company's made-in-Canada masks
and select collaboration collection items to the Black Academy and
Girls E-Mentorship.
"Our Q1 2021 results highlight excitement for the brand, our
omni-channel capabilities, and our success in driving operational
and cost efficiencies," said Meghan
Roach, President and Chief Executive Officer, Roots.
"Despite the volatility of our current operating environment, we
have significantly strengthened the fundamentals of the Company
over the past five quarters. As we continue to navigate through the
pandemic, including government-mandated store closures that have
persisted into our second quarter, we will continue to control what
we can and thoughtfully respond to that which we cannot."
"As we slowly emerge from the pandemic, we believe customers
will seek to express their style without sacrificing the comfort,
quality, versatility, and digital convenience to which they have
become accustomed," Ms. Roach added. "These are all key areas of
strength for Roots. With a focus on the long term, we will continue
to amplify our iconic brand with great creative and product
execution, reinvest to drive growth in profitable ways, and support
the communities that have been part of Roots for nearly 50
years."
Summary of Fiscal 2021 First Quarter Results
Sales
Total Q1 2021 sales were $37.3
million, up 24.7% from total sales of $29.9 million in Q1 2020. DTC sales (corporate
retail store and eCommerce sales) were $31.4
million for Q1 2021, a 27.6% improvement over $24.6 million in Q1 2020. During Q1 2021, the
Company continued to manage COVID-19 impacts, including
government-mandated temporary store closures, traffic declines,
capacity limitations, and reduced store operating hours. Stores
were closed for approximately 30% of Q1 2021, compared to
approximately 50% of Q1 2020. eCommerce sales continued to deliver
strong year-over-year growth, increasing approximately 50% over Q1
2020.
Roots Q1 2021 Partners and Other sales (wholesale Roots-branded
products, royalties on partner retail sales, licensing to select
manufacturing partners and the sale of certain custom Roots-branded
products) were $5.9 million, up 11.3%
from $5.3 million in Q1 2020. The
year-over-year improvement primarily reflects an increase in the
Company's Asia partner business in
Taiwan, which was significantly
impacted by temporary store closures and reduced traffic in Q1 2020
as a result of COVID-19. It is also the result of a shift in
timing of wholesale orders that contributed to higher sales in the
quarter as compared to Q1 2020.
Gross Profit
Q1 2021 total gross profit was
$21.5 million, a 30.7% increase from
$16.4 million in Q1 2020, reflecting
the year-over-year improvement in overall sales. Q1 2021 Gross
Margin was 57.5%, up from 54.9% in Q1 2020. The 260-basis point
improvement predominantly reflects the benefits of the Company's
promotional discipline in Q1 2021.
Selling, General and Administrative Expenses
("SG&A")
Q1 2021 SG&A was $25.9 million, down from $27.8 million in Q1 2020. The year-over-year
decrease predominantly reflects the Company's continued efforts to
reduce costs and increase efficiencies across the business in
response to COVID-19. These savings were partially offset by higher
variable costs as a result of the year-over-year increase in DTC
sales as well as higher corporate costs related to investments in
talent and marketing.
Q1 2021 SG&A also reflects $2.5
million in government rent and wage subsidies compared to
$1.3 million in Q1 2020 (of the total
$2.9 million and $1.5 million recognized in Q1 2021 and Q1 2020,
respectively). In addition, in Q1 2021, the Company realized
$1.7 million in SG&A savings
associated with the Company's U.S. business, primarily as a result
of the permanent closure of seven U.S. corporate retail stores in
Q1 2020.
Adjusted EBITDA, Net Income (Loss) & Adjusted Net Income
(Loss)
Reflecting factors discussed above, Adjusted EBITDA
(which excludes the impact of IFRS 16 – Leases ("IFRS 16")
and includes rent expense) was ($2.5)
million for Q1 2021, compared to ($7.5) million in Q1
2020. Q1 2020 includes ($2.1) million
of Adjusted EBITDA losses related to the Company's now-closed seven
U.S. corporate retail stores.
Q1 2021 net loss was ($4.9)
million, or ($0.12) per share,
compared to a net loss of ($7.8)
million, or ($0.18) per share,
in Q1 2020. Adjusted Net Loss (which excludes the impact of IFRS 16
and includes rent expense) for Q1 2021 was ($4.2) million, or ($0.10) per share, compared to an Adjusted Net
Loss of ($9.1) million, or
($0.22) per share, in Q1 2020.
COVID-19 Business Update
Roots entered Q1 2021 having
temporarily closed corporate retail stores within certain regions
of Canada in response to a second
wave of COVID-19 and resulting government-mandated lockdowns. As of
March 11, 2021, the Company had
reopened all but two corporate retail stores in these regions.
In April 2021, in response to a
third wave of COVID-19 in Canada
and resulting changes to provincial guidelines, Roots temporarily
closed its stores to the public, shifting to curbside pick-up and
eCommerce fulfillment only for certain regions in Québec and
Ontario. This represented two
corporate retail stores in Québec, as well as 62 corporate retail
stores and five pop-up locations in Ontario. Late in the month, in accordance with
provincial government requirements, the Company also temporarily
closed its four corporate retail stores in Nova Scotia.
Subsequent to quarter-end, Roots reopened its two stores in
Québec in early May and its four Nova
Scotia stores in early June. In addition, the Government of
Ontario announced that
non-essential retailers will be able to open street-front locations
in Ontario on June 11, 2021, at 15% capacity. As a result,
Roots will be reopening 26 of its 62 closed Ontario locations today.
During the second quarter of fiscal 2021 ("Q2 2021") Roots
anticipates having a higher number of temporary corporate retail
store closures in Ontario, its
largest market and typically highest revenue stores, in comparison
to the second quarter of fiscal 2020 ("Q2 2020"). In addition,
Roots is operating under tighter government-mandated capacity
limitations. To partially offset the short-term pressures, the
Company will continue to manage costs and leverage government
programs for which it is eligible. However, due to changes in the
program, the government wage subsidy is available at a declining
rate compared to Q2 2020. As government operating restrictions ease
and the short-term pressures alleviate, Roots expects to return to
recovery.
Amendment to Company's Credit Agreement
Subsequent to
Q1 2021, Roots amended its credit facility to extend the original
maturity date of September 2022 to
September 2024. In addition, the
amendment adjusted certain definitions, covenant limits, and
reduced the $75 million revolving
credit facility, that includes the swing loan of $10 million, to $60
million.
Conference Call and Webcast Information
Roots will
hold a conference call to discuss the Company's fiscal 2021 first
quarter results on June 11, 2021, at
8:00 a.m. ET. All interested parties
can join the call by dialing 647-427-7450 or 1-888-231-8191 and
using conference ID: 1687595. Please dial in 15 minutes prior to
the call to secure a line. The conference call will be archived for
replay until June 18, 2021, at
midnight, and can be accessed by dialing 416-849-0833 or
1-855-859-2056 and entering replay passcode: 1687595.
A live audio webcast of the conference call will be available on
the Events and Presentations section of the Company's investor
website at https://investors.roots.com or by following the link
here. Please connect at least 15 minutes prior to the conference
call to ensure adequate time for any software download that may be
required to join the webcast. An archived replay of the webcast
will be available on the Company's website for one year.
See Roots Consolidated Financial Statements and the Company's
Management's Discussion and Analysis of Financial Condition and
Results of Operations for the fiscal quarter ended May 1, 2021, on the Company's investor website at
https://investors.roots.com and on SEDAR at www.SEDAR.com.
About Roots
Established in 1973, Roots is a premium
outdoor-lifestyle brand. We unite the best of cabin and city
through unmistakable style built with uncompromising comfort and
quality. We offer a broad range of products designed for life's
everyday adventures, including women's and men's apparel, leather
goods, footwear, accessories, and kids, toddler and baby apparel.
Starting from a little cabin in Algonquin
Park, Canada, Roots has grown to become a global brand. We
operate more than 100 retail stores across North America and ship to more than 60
countries worldwide via roots.com, our eCommerce platform. We also
have more than 100 partner-operated stores and sell our products
through leading third-party retail sites in Asia. Roots Corporation is a Canadian
corporation doing business as "Roots" and "Roots Canada".
Non-IFRS Measures and Industry Metrics
Roots has
historically reported Comparable Sales Growth (Decline) as an
additional metric to demonstrate the performance of its DTC
business. Commencing in Q1 2020, the Company's DTC segment was
significantly impacted by COVID-19. As a result of the negative
impacts COVID-19 has had on the apparel retail operating
environment, including periods of store closures, phased
re-openings and retail store operating limitations, the Company
does not believe that Comparable Sales Growth (Decline) is a
representative metric of performance in affected periods.
Management will continue to monitor and evaluate the effects of
COVID-19 and will resume the evaluation of Comparable Sales Growth
(Decline) when year-over-year results are no longer significantly
impacted by COVID-19.
This press release makes reference to certain non-IFRS measures
including certain metrics specific to the industry in which we
operate. These measures are not recognized measures under IFRS, do
not have a standardized meaning prescribed by IFRS and, therefore,
may not be comparable to similar measures presented by other
companies. Rather, these measures are provided as additional
information to complement those IFRS measures by providing further
understanding of our results of operations from management's
perspective. Accordingly, these measures are not intended to
represent, and should not be considered as alternatives to net
income or other performance measures derived in accordance with
IFRS as measures of operating performance or operating cash flows
or as a measure of liquidity. In addition to our results determined
in accordance with IFRS, we use non-IFRS measures including DTC
Gross Margin, EBITDA, Adjusted EBITDA, Adjusted Net Income (Loss),
and Adjusted Net Income (Loss) per Share. We believe these non-IFRS
measures and industry metrics provide useful information to both
management and investors in measuring our financial performance and
condition and highlight trends in our core business that may not
otherwise be apparent when relying solely on IFRS measures.
Definitions and reconciliations of non-IFRS measures to the
relevant reported measures can be found in our MD&A under
"Cautionary Note Regarding Non-IFRS Measures and Industry Metrics",
which is available on SEDAR at www.sedar.com or the Company's
Investor Relations website at https://investors.roots.com.
Forward-Looking Information
Certain information in
this press release contains forward-looking information. This
information is based on management's reasonable assumptions and
beliefs in light of the information currently available to us and
are made as of the date of this press release. Actual results and
the timing of events may differ materially from those anticipated
in the forward-looking information as a result of various factors.
Information regarding our expectations of future results,
performance, achievements, prospects or opportunities or the
markets in which we operate is forward-looking information.
Statements containing forward-looking information are not facts but
instead represent management's expectations, estimates and
projections regarding future events or circumstances. Many factors
could cause our actual results, level of activity, performance or
achievements or future events or developments to differ materially
from those expressed or implied by the forward-looking
statements.
See "Forward-Looking Information" and "Risk Factors" in the
Company's current Annual Information Form for a discussion of the
uncertainties, risks and assumptions associated with these
statements. Readers are urged to consider the uncertainties, risks
and assumptions carefully in evaluating the forward-looking
information and are cautioned not to place undue reliance on such
information. We have no intention and undertake no obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
required by applicable securities law.
ROOTS CORPORATION
Interim Condensed Consolidated
Statement of Financial Position
(In thousands of Canadian dollars)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
May 1,
|
|
|
|
|
January
30,
|
|
|
|
|
|
2021
|
|
|
|
|
2021
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
|
Cash
|
|
$
|
|
4,578
|
|
|
|
$
|
9,166
|
|
Accounts
receivable
|
|
|
|
7,654
|
|
|
|
|
7,165
|
|
Inventories
|
|
|
|
42,493
|
|
|
|
|
42,401
|
|
Prepaid
expenses
|
|
|
|
3,021
|
|
|
|
|
3,137
|
|
Total current
assets
|
|
|
|
57,746
|
|
|
|
|
61,869
|
|
|
|
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
|
|
|
Loan
receivable
|
|
|
|
608
|
|
|
|
|
608
|
|
Lease
receivable
|
|
|
|
1,103
|
|
|
|
|
1,187
|
|
Fixed
assets
|
|
|
|
46,439
|
|
|
|
|
47,981
|
|
Right-of-use
assets
|
|
|
|
77,983
|
|
|
|
|
79,995
|
|
Intangible
assets
|
|
|
|
190,205
|
|
|
|
|
190,777
|
|
Goodwill
|
|
|
|
7,906
|
|
|
|
|
7,906
|
|
Total non-current
assets
|
|
|
|
324,244
|
|
|
|
|
328,454
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
|
381,990
|
|
|
|
$
|
390,323
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
Bank
indebtedness
|
|
$
|
|
495
|
|
|
|
$
|
–
|
|
Accounts payable and
accrued liabilities
|
|
|
|
17,391
|
|
|
|
|
25,850
|
|
Deferred
revenue
|
|
|
|
5,447
|
|
|
|
|
5,759
|
|
Income taxes
payable
|
|
|
|
3,237
|
|
|
|
|
5,955
|
|
Current portion of
lease liabilities
|
|
|
|
22,503
|
|
|
|
|
22,197
|
|
Current portion of
long-term debt
|
|
|
|
4,984
|
|
|
|
|
4,984
|
|
Derivative
obligations
|
|
|
|
813
|
|
|
|
|
418
|
|
Total current
liabilities
|
|
|
|
54,870
|
|
|
|
|
65,163
|
|
|
|
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
Deferred tax
liabilities
|
|
|
|
16,170
|
|
|
|
|
15,891
|
|
Long-term portion of
lease liabilities
|
|
|
|
76,386
|
|
|
|
|
78,989
|
|
Long-term
debt
|
|
|
|
75,532
|
|
|
|
|
66,100
|
|
Total non-current
liabilities
|
|
|
|
168,088
|
|
|
|
|
160,980
|
Total
liabilities
|
|
|
|
222,958
|
|
|
|
|
226,143
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
Share
capital
|
|
|
|
197,333
|
|
|
|
|
197,333
|
|
Contributed
surplus
|
|
|
|
3,755
|
|
|
|
|
3,682
|
|
Accumulated other
comprehensive income (loss)
|
|
|
|
(595)
|
|
|
|
|
(227)
|
|
Retained earnings
(deficit)
|
|
|
|
(41,461)
|
|
|
|
|
(36,608)
|
Total shareholders'
equity
|
|
|
|
159,032
|
|
|
|
|
164,180
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
|
|
381,990
|
|
|
|
$
|
390,323
|
On behalf of the Board of Directors:
"Erol
Uzumeri"
Director
"Richard P.
Mavrinac"
Director & Audit Committee Chair
ROOTS CORPORATION
Interim Condensed Consolidated Statement of Net Loss
(In thousands of Canadian dollars)
(Unaudited)
|
|
|
|
|
|
|
|
|
May 1,
2021
|
|
May 2,
2020
|
|
|
|
(13 weeks)
|
|
(13 weeks)
|
|
|
|
|
|
|
Sales
|
|
$
|
37,345
|
$
|
29,949
|
|
|
|
|
|
|
Cost of goods
sold
|
|
|
15,871
|
|
13,516
|
|
|
|
|
|
|
Gross
profit
|
|
|
21,474
|
|
16,433
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
|
25,879
|
|
27,806
|
|
|
|
|
|
|
Gain from
deconsolidation of RTS USA Corp.
|
|
|
–
|
|
4,774
|
|
|
|
|
|
|
Loss before interest
expense and
|
|
|
|
|
|
income taxes
recovery
|
|
|
(4,405)
|
|
(6,599)
|
|
|
|
|
|
|
Interest
expense
|
|
|
2,278
|
|
3,747
|
|
|
|
|
|
|
Loss before income
taxes recovery
|
|
|
(6,683)
|
|
(10,346)
|
|
|
|
|
|
|
Income taxes
recovery
|
|
|
(1,745)
|
|
(2,561)
|
|
|
|
|
|
|
Net loss
|
|
$
|
(4,938)
|
$
|
(7,785)
|
|
|
|
|
|
|
Basic loss per
share
|
|
$
|
(0.12)
|
$
|
(0.18)
|
Diluted loss per
share
|
|
$
|
(0.12)
|
$
|
(0.18)
|
|
|
|
|
|
|
ROOTS CORPORATION
Interim Condensed Consolidated
Statement of Comprehensive Income (Loss)
(In thousands of Canadian dollars)
(Unaudited)
For the 13 week periods ended May 1,
2021 and May 2, 2020
|
|
|
|
|
|
|
|
|
|
|
|
May 1,
2021
|
|
|
May 2,
2020
|
|
|
|
|
(13 weeks)
|
|
|
(13 weeks)
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
$
|
(4,938)
|
|
$
|
(7,785)
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss), net of taxes:
|
|
|
|
|
|
|
|
Items that may be
subsequently reclassified to profit or loss:
|
|
|
|
|
|
|
Effective portion of
changes in fair
|
|
|
|
|
|
|
|
value of cash flow
hedges
|
|
|
|
(912)
|
|
|
3,499
|
|
|
|
|
|
|
|
|
Cost of hedging
excluded from
|
|
|
|
|
|
|
|
cash flow
hedges
|
|
|
|
(1)
|
|
|
(36)
|
|
|
|
|
|
|
|
|
Tax impact of cash
flow hedges
|
|
|
|
243
|
|
|
(985)
|
|
|
|
|
|
|
|
|
Total other
comprehensive income (loss)
|
|
|
|
(670)
|
|
|
2,478
|
|
|
|
|
|
|
|
|
Total comprehensive
loss
|
|
|
$
|
(5,608)
|
|
$
|
(5,307)
|
ROOTS CORPORATION
Interim Condensed Consolidated
Statement of Changes in Shareholders' Equity
(In thousands of Canadian dollars)
(Unaudited)
For the 13 week periods ended May 1,
2021 and May 2, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
Retained
|
|
other
|
|
|
|
|
Share
|
|
Contributed
|
|
earnings
|
|
comprehensive
|
|
|
May 1, 2021 (13
weeks)
|
|
capital
|
|
surplus
|
|
(deficit)
|
|
income
(loss)
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Balance, January 30,
2021
|
$
|
197,333
|
$
|
3,682
|
$
|
(36,608)
|
$
|
(227)
|
$
|
164,180
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment on
amendment of IFRS 16
|
|
–
|
|
–
|
|
85
|
|
–
|
|
85
|
Balance, January 31,
2021
|
|
197,333
|
|
3,682
|
|
(36,523)
|
|
(227)
|
|
164,265
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
|
–
|
|
(4,938)
|
|
–
|
|
(4,938)
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from change
in fair
|
|
|
|
|
|
|
|
|
|
|
value of cash flow
hedges,
|
|
|
|
|
|
|
|
|
|
|
net of income
taxes
|
|
–
|
|
–
|
|
–
|
|
(670)
|
|
(670)
|
|
|
|
|
|
|
|
|
|
|
|
Transfer of realized
gain on cash
|
|
|
|
|
|
|
|
|
|
|
flow hedges to
inventories, net
|
|
|
|
|
|
|
|
|
|
|
of income
taxes
|
|
–
|
|
–
|
|
–
|
|
302
|
|
302
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
–
|
|
73
|
|
–
|
|
–
|
|
73
|
|
|
|
|
|
|
|
|
|
|
|
Balance, May 1,
2021
|
$
|
197,333
|
$
|
3,755
|
$
|
(41,461)
|
$
|
(595)
|
$
|
159,032
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
Retained
|
|
other
|
|
|
|
|
Share
|
|
Contributed
|
|
earnings
|
|
comprehensive
|
|
|
May 2, 2020 (13
weeks)
|
|
capital
|
|
surplus
|
|
(deficit)
|
|
income
(loss)
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Balance, February 1,
2020
|
$
|
196,903
|
$
|
3,407
|
$
|
(49,688)
|
$
|
(116)
|
$
|
150,506
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
–
|
|
|
|
(7,785)
|
|
–
|
|
(7,785)
|
|
|
|
|
|
|
|
|
|
|
|
Net gain from change
in fair
|
|
|
|
|
|
|
|
|
|
|
value of cash flow
hedges,
|
|
|
|
|
|
|
|
|
|
|
net of income
taxes
|
|
–
|
|
–
|
|
–
|
|
2,478
|
|
2,478
|
|
|
|
|
|
|
|
|
|
|
|
Transfer of realized
loss on cash
|
|
|
|
|
|
|
|
|
|
|
flow hedges to
inventories, net
|
|
|
|
|
|
|
|
|
|
|
of income
taxes
|
|
–
|
|
–
|
|
–
|
|
(186)
|
|
(186)
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
–
|
|
152
|
|
–
|
|
–
|
|
152
|
|
|
|
|
|
|
|
|
|
|
|
Balance, May 2,
2020
|
$
|
196,903
|
$
|
3,559
|
$
|
(57,473)
|
$
|
2,176
|
$
|
145,165
|
ROOTS CORPORATION
Interim Condensed Consolidated
Statement of Cash Flows
(In thousands of Canadian dollars)
(Unaudited)
For the 13 week periods ended May 1,
2021 and May 2, 2020
|
|
|
|
|
|
|
May 1,
2021
|
|
May 2,
2020
|
|
|
(13
weeks)
|
|
(13 weeks)
|
|
|
|
|
|
Cash generated from
(used in):
|
|
|
|
|
|
|
|
|
|
Operating
activities:
|
|
|
|
|
|
Net loss
|
$
|
(4,938)
|
$
|
(7,785)
|
|
Items not involving
cash:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
7,518
|
|
8,859
|
|
|
Share-based
compensation expense
|
|
73
|
|
152
|
|
|
Gain from
deconsolidation of RTS USA Corp.
|
|
–
|
|
(4,774)
|
|
|
Unrealized loss on
de-designated forward contracts
|
|
–
|
|
(318)
|
|
|
Rent concessions
related to practical expedient
|
|
(180)
|
|
–
|
|
|
Interest
expense
|
|
2,278
|
|
3,747
|
|
|
Income taxes
recovery
|
|
(1,745)
|
|
(2,561)
|
|
Settlement of
de-designated forward contracts
|
|
(105)
|
|
–
|
|
Interest
paid
|
|
(670)
|
|
(1,378)
|
|
Payment of interest
on lease liabilities
|
|
(1,430)
|
|
(2,201)
|
|
Taxes refunded
(paid)
|
|
(594)
|
|
3,503
|
|
Change in non-cash
operating working capital:
|
|
|
|
|
|
|
Accounts
receivable
|
|
(489)
|
|
837
|
|
|
Inventories
|
|
(92)
|
|
(2,443)
|
|
|
Prepaid
expenses
|
|
116
|
|
3,093
|
|
|
Accounts payable and
accrued liabilities
|
|
(8,459)
|
|
4,549
|
|
|
Deferred
revenue
|
|
(312)
|
|
(624)
|
|
|
(9,029)
|
|
2,656
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
Issuance of long-term
debt
|
|
10,500
|
|
14,000
|
|
Long-term debt
financing costs
|
|
–
|
|
(146)
|
|
Repayment of
long-term debt
|
|
(1,246)
|
|
(1,246)
|
|
Payment of principal
on lease liabilities, net of tenant allowance
|
|
(4,613)
|
|
(2,452)
|
|
|
4,641
|
|
10,156
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
Additions to fixed
assets
|
|
(695)
|
|
(1,013)
|
|
Deconsolidation of
RTS USA Corp.
|
|
–
|
|
(541)
|
|
|
(695)
|
|
(1,554)
|
|
|
|
|
|
Increase (decrease)
in cash
|
|
(5,083)
|
|
11,258
|
|
|
|
|
|
Cash and bank
indebtedness, beginning of period
|
|
9,166
|
|
(6,277)
|
|
|
|
|
|
Cash and bank
indebtedness, end of period
|
$
|
4,083
|
$
|
4,981
|
SOURCE Roots Corporation