Company increased sales, expanded gross
margins, and improved profitability
TORONTO, Sept. 10, 2021 /CNW/ - Roots ("Roots,"
"Roots Canada" or the "Company") (TSX: ROOT), a premium
outdoor-lifestyle brand, today announced its financial results for
its second quarter ended July 31,
2021 ("Q2 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".
In Q2 2021, Roots delivered year-over-year sales growth, gross
margin expansion and improved profitability, despite ongoing
temporary store closures as a result of COVID-19. Most notably, in
Ontario, which represents the
Company's largest market, corporate-operated stores were closed for
approximately 60% of the quarter, compared to approximately 45% of
the second quarter ended August 1,
2020 ("Q2 2020").
Fiscal 2021 Second Quarter Financial Highlights
- Total sales of $38.9 million, up
from $38.2 million in Q2 2020.
-
- Direct-to-Consumer ("DTC") sales of $30.4 million, up from $28.5 million in Q2 2020.
- Gross margin of 58.1%, up 340 basis points from 54.7% in Q2
2020.
-
- DTC Gross Margin of 63.4%, up 120 basis points from 62.2% in Q2
2020.
- Selling, general and administrative expenses of $21.8 million, compared to $21.4 million
in Q2 2020.
- Adjusted EBITDA of $2.9 million
increased from $1.1 million in Q2
2020.
- Net loss per share of ($0.03)
improved from ($0.04) per share in Q2
2020.
- Adjusted Net Loss per Share of ($0.01) improved from ($0.04) per share in Q2 2020.
Fiscal 2021 Second Quarter Business Highlights
- Achieved healthy year-over-year store sales growth, reinforcing
customers' desire to shop in-store and the Company's strong market
position.
- Delivered significant eCommerce sales growth over pre-pandemic
levels, despite year-over-year sales moderating as customers
increasingly embraced in-store shopping again.
- Opened five new pop-ups, bringing the total to 11
altogether.
- Amplified the brand with exciting new collaborations, including
Tim Hortons and Jason Logan + The Toronto Ink Company.
- 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 LGBT Youthline, and
donating 13,000 reusable masks to First Nations in Manitoba and Ontario in partnership with Save the
Children's National Reconciliation Program.
"Our profitable growth in the quarter continues to highlight the
desirability of our brand, loyal customer base, and strong
fundamentals," said Meghan Roach,
President and Chief Executive Officer, Roots. "We saw a significant
year-over-year improvement in sales in Ontario, our largest market, once stores
reopened, more than offsetting the increase in temporary store
closures in the province during the quarter."
"We are continuing to run the business in the manner needed to
successfully adapt to the changing business environment created by
COVID-19, including current industry-wide supply chain
disruptions," Ms. Roach continued. "Our focus remains on maximizing
the success of the business over the long term. With the
high-quality, comfort, and versatility of our products, we are
well-positioned to capitalize on the ongoing casualization of the
North American wardrobe."
Summary of Fiscal 2021 Second Quarter Results
Sales
Total Q2 2021 sales were $38.9
million, up 1.8% from total sales of $38.2 million in Q2 2020. DTC sales (corporate
retail store and eCommerce sales) increased 6.6% to $30.4 million from $28.5
million in Q2 2020, reflecting healthy growth in overall
store sales, which the Company achieved despite being closed for
longer in Ontario, the Company's
largest market. While the increase in store activity resulted in
moderated demand online year-over-year, eCommerce sales continued
to demonstrate significant growth over pre-pandemic levels.
Roots Q2 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 $8.5 million, down
12.4% from $9.7 million in Q2 2020.
The year-over-year decline primarily reflects an unfavourable
foreign exchange impact on wholesale sales to the Company's
operating partner in Taiwan, as
well as a shift in the timing of Taiwan wholesale orders into Q1 2021.
Gross Profit
Q2 2021 total gross profit was
$22.6 million, an 8.2% increase from
$20.9 million in Q2 2020, as a result
of the year-over-year improvement in sales. Q2 2021 gross margin
was 58.1%, up from 54.7% in Q2 2020. The year-over-year increase,
in part, reflects the continued benefit of the Company's
promotional discipline in its DTC business, which likely places
some downward pressure on sales in the short term. However, the
Company believes reduced promotional activity is beneficial to the
brand and profitability of the business over the long term. The
year-over-year improvement in gross margin is also reflective of a
modification of financial terms of the agreement with the Company's
operating partner in Taiwan that
resulted in higher margin wholesale sales.
Selling, General and Administrative Expenses
("SG&A")
Q2 2021 SG&A was $21.8 million, up from $21.4 million in Q2 2020. In the quarter, Roots
recorded higher costs related to investments in talent and
marketing, which were effectively offset by rent savings. For Q2
2021, the Company recognized lower government subsidies, recording
$3.6 million in government rent and
wage subsidies in Q2 2021, down from $4.4
million in Q2 2020 (of the total $4.3
million and $6.2 million
recognized in Q2 2021 and Q2 2020, respectively).
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 $2.9
million for Q2 2021, up from $1.1
million in Q2 2020.
Q2 2021 net loss was ($1.2)
million, or ($0.03) per share,
an improvement from a net loss of ($1.8)
million, or ($0.04) per share,
in Q2 2020. Adjusted Net Loss (which excludes the impact of IFRS 16
and includes rent expense) for Q2 2021 was ($0.4) million, or ($0.01) per share, an improvement from an
Adjusted Net Loss of ($1.9) million,
or ($0.04) per share, in Q2 2020.
COVID-19 Business Update
In response to COVID-19 and
resulting government-mandated lockdowns, Roots entered Q2 2021
having temporarily closed 68 corporate retail stores and five
pop-ups locations. As of quarter-end, the Company had reopened all
but one store.
As a result of ongoing global challenges related to COVID-19,
the fashion retail industry is currently facing industry-wide
supply chain disruptions. To best mitigate the impact on its
business, such as extended lead times and product shortages, Roots
is managing its inventory and promotions, leveraging its
pack-and-hold inventory, and using air freight for key seasonal
programs.
Conference Call and Webcast Information
Roots will
hold a conference call to discuss the Company's fiscal 2021 second
quarter results on September 10,
2021, at 8:00 a.m. ET. All
interested parties can join the call by dialing 416-764-8659 or
1-888-664-6392 and using conference ID: 54910265. Please dial in 15
minutes prior to the call to secure a line. The conference call
will be archived for replay until September
17, 2021, at midnight, and can be accessed by dialing
416-764-8677 or 1-888-390-0541 and entering replay passcode: 910265
#.
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 July 31, 2021, on the Company's investor website
at https://investors.roots.com and 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 Canada, two in the
United States, 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 the first quarter of fiscal 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
is 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)
|
|
|
July 31,
2021
|
|
January 30,
2021
|
Assets
|
|
Current
assets:
|
|
|
|
|
|
|
Cash
|
|
$
|
8,382
|
$
|
9,166
|
|
Accounts receivable
|
|
|
10,135
|
|
7,165
|
|
Inventories
|
|
|
47,500
|
|
42,401
|
|
Prepaid
expenses
|
|
|
3,661
|
|
3,137
|
|
Total
current assets
|
|
|
69,678
|
|
61,869
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
Loan
receivable
|
|
|
608
|
|
608
|
|
Lease
receivable
|
|
|
1,018
|
|
1,187
|
|
Fixed
assets
|
|
|
45,208
|
|
47,981
|
|
Right-of-use assets
|
|
|
73,407
|
|
79,995
|
|
Intangible assets
|
|
|
189,630
|
|
190,777
|
|
Goodwill
|
|
|
7,906
|
|
7,906
|
|
Total
non-current assets
|
|
|
317,777
|
|
328,454
|
|
|
|
|
|
|
Total
assets
|
|
$
|
387,455
|
$
|
390,323
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
$
|
24,950
|
$
|
25,850
|
|
Deferred revenue
|
|
|
5,231
|
|
5,759
|
|
Income
taxes payable
|
|
|
1,932
|
|
5,955
|
|
Current
portion of lease liabilities
|
|
|
22,596
|
|
22,197
|
|
Current
portion of long-term debt
|
|
|
4,984
|
|
4,984
|
|
Derivative obligations
|
|
|
155
|
|
418
|
|
Total
current liabilities
|
|
|
59,848
|
|
65,163
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
Deferred tax liabilities
|
|
|
16,772
|
|
15,891
|
|
Long-term portion of lease liabilities
|
|
|
71,654
|
|
78,989
|
|
Long-term debt
|
|
|
80,534
|
|
66,100
|
|
Total
non-current liabilities
|
|
|
168,960
|
|
160,980
|
Total
liabilities
|
|
|
228,808
|
|
226,143
|
|
|
|
|
|
|
Shareholders' equity:
|
|
|
|
|
|
|
Share
capital
|
|
|
197,571
|
|
197,333
|
|
Contributed surplus
|
|
|
3,827
|
|
3,682
|
|
Accumulated other comprehensive income
(loss)
|
|
|
(114)
|
|
(227)
|
|
Retained earnings (deficit)
|
|
|
(42,637)
|
|
(36,608)
|
Total
shareholders' equity
|
|
|
158,647
|
|
164,180
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
|
387,455
|
$
|
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, except per share amounts)
(Unaudited)
For the 13 and 26 week periods ended July
31, 2021 and August 1,
2020
|
|
July 31, 2021
(13 weeks)
|
August 1, 2020
(13 weeks)
|
July 31, 2021
(26 weeks)
|
August 1, 2020
(26 weeks)
|
|
|
|
|
|
|
Sales
|
|
$
|
38,904
|
$
|
38,214
|
$
|
76,249
|
$
|
68,163
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
|
16,294
|
|
17,324
|
|
32,165
|
|
30,840
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
22,610
|
|
20,890
|
|
44,084
|
|
37,323
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
|
21,847
|
|
21,385
|
|
47,726
|
|
49,191
|
|
|
|
|
|
|
|
|
|
|
Gain from
deconsolidation of RTS USA Corp.
|
|
|
–
|
|
–
|
|
–
|
|
4,774
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
interest expense and income taxes recovery
|
|
|
763
|
|
(495)
|
|
(3,642)
|
|
(7,094)
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
2,259
|
|
2,790
|
|
4,537
|
|
6,537
|
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
|
|
(1,496)
|
|
(3,285)
|
|
(8,179)
|
|
(13,631)
|
|
|
|
|
|
|
|
|
|
|
Income taxes
recovery
|
|
|
(320)
|
|
(1,465)
|
|
(2,065)
|
|
(4,026)
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
$
|
(1,176)
|
$
|
(1,820)
|
$
|
(6,114)
|
$
|
(9,605)
|
|
|
|
|
|
|
|
|
|
|
Basic loss per
share
|
|
$
|
(0.03)
|
$
|
(0.04)
|
$
|
(0.14)
|
$
|
(0.23)
|
Diluted loss per
share
|
|
$
|
(0.03)
|
$
|
(0.04)
|
$
|
(0.14)
|
$
|
(0.23)
|
|
|
|
|
|
|
|
|
|
|
ROOTS CORPORATION
Interim Condensed Consolidated
Statement of Comprehensive Income (Loss)
(In thousands of Canadian dollars)
(Unaudited)
For the 13 and 26 week periods ended July
31, 2021 and August 1,
2020
|
|
July 31, 2021
(13 weeks)
|
August 1, 2020
(13 weeks)
|
July 31, 2021
(26 weeks)
|
August 1, 2020
(26 weeks)
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
$
|
(1,176)
|
$
|
(1,820)
|
$
|
(6,114)
|
$
|
(9,605)
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
398
|
|
(2,181)
|
|
(412)
|
|
1,234
|
|
|
|
|
|
|
|
|
|
|
Cost of
hedging excluded from
cash flow hedges
|
|
|
(9)
|
|
7
|
|
(5)
|
|
(29)
|
|
|
|
|
|
|
|
|
|
|
Tax
impact of cash flow hedges
|
|
|
(103)
|
|
580
|
|
110
|
|
(321)
|
|
|
|
|
|
|
|
|
|
|
Total other
comprehensive income (loss)
|
|
|
286
|
|
(1,594)
|
|
(307)
|
|
884
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
loss
|
|
$
|
(890)
|
$
|
(3,414)
|
$
|
(6,421)
|
$
|
(8,721)
|
ROOTS CORPORATION
Interim Condensed Consolidated
Statement of Changes in Shareholders' Equity
(In thousands of Canadian dollars)
(Unaudited)
For the 26 week periods ended July 31,
2021 and August 1, 2020
July 31, 2021 (26
weeks)
|
|
Share
capital
|
Contributed
surplus
|
Retained
earnings
(deficit)
|
Accumulated
other
comprehensive
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
|
|
|
–
|
|
–
|
|
(6,114)
|
|
–
|
|
(6,114)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from change
in fair
value of cash flow hedges,
net of income taxes
|
|
|
–
|
|
–
|
|
–
|
|
(307)
|
|
(307)
|
|
|
|
|
|
|
|
|
|
|
|
|
Transfer of realized
gain on cash
flow hedges to inventories, net
of income taxes
|
|
|
–
|
|
–
|
|
–
|
|
420
|
|
420
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
|
–
|
|
368
|
|
–
|
|
–
|
|
368
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of
Shares
|
|
|
238
|
|
(223)
|
|
–
|
|
–
|
|
15
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, July 31,
2021
|
|
$
|
197,571
|
$
|
3,827
|
$
|
(42,637)
|
$
|
(114)
|
$
|
158,647
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
August 1, 2020 (26
weeks)
|
|
Share
capital
|
Contributed
surplus
|
Retained
earnings
(deficit)
|
Accumulated
other
comprehensive
income
(loss)
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, February 1,
2020
|
|
$
|
196,903
|
$
|
3,407
|
$
|
(49,688)
|
$
|
(116)
|
$
|
150,506
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
–
|
|
–
|
|
(9,605)
|
|
–
|
|
(9,605)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain from change
in fair
value of cash flow hedges,
net of income taxes
|
|
|
–
|
|
–
|
|
–
|
|
884
|
|
884
|
|
|
|
|
|
|
|
|
|
|
|
|
Transfer of realized
loss on cash
flow hedges to inventories, net
of income tax recovery
|
|
|
–
|
|
–
|
|
–
|
|
(554)
|
|
(554)
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
|
–
|
|
331
|
|
–
|
|
–
|
|
331
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of
Shares
|
|
|
430
|
|
(430)
|
|
–
|
|
–
|
|
–
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, August 1,
2020
|
|
$
|
197,333
|
$
|
3,308
|
$
|
(59,293)
|
$
|
214
|
$
|
141,562
|
ROOTS CORPORATION
Interim Condensed Consolidated
Statement of Cash Flows
(In thousands of Canadian dollars)
(Unaudited)
For the 26 week periods ended July 31,
2021 and August 1, 2020
|
|
July 31, 2021
(26 weeks)
|
August 1, 2020
(26 weeks)
|
Cash generated from
(used in):
|
|
|
|
|
|
|
|
|
|
|
|
Operating
activities:
|
|
|
|
|
|
|
Net loss
|
|
$
|
(6,114)
|
$
|
(9,605)
|
|
Items not involving
cash:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
15,157
|
|
16,758
|
|
|
Share-based compensation expense
|
|
|
368
|
|
331
|
|
|
Gain
from deconsolidation of RTS USA Corp.
|
|
|
–
|
|
(4,774)
|
|
|
Unrealized gain on de-designated forward
contracts
|
|
|
–
|
|
(25)
|
|
|
Gain on
lease modification
|
|
|
(303)
|
|
(145)
|
|
|
Interest expense
|
|
|
4,537
|
|
6,537
|
|
|
Income
taxes recovery
|
|
|
(2,065)
|
|
(4,026)
|
|
|
Rent
concessions
|
|
|
(1,350)
|
|
(712)
|
|
Settlement of
de-designated forward contracts
|
|
|
(109)
|
|
–
|
|
Interest
paid
|
|
|
(1,417)
|
|
(2,446)
|
|
Payment of interest
on lease liabilities
|
|
|
(2,794)
|
|
(3,743)
|
|
Taxes refunded
(paid)
|
|
|
(1,148)
|
|
3,731
|
|
Change in non-cash
operating working capital:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(2,970)
|
|
(3,250)
|
|
|
Inventories
|
|
|
(5,099)
|
|
(20,699)
|
|
|
Prepaid
expenses
|
|
|
(524)
|
|
3,265
|
|
|
Accounts payable and accrued liabilities
|
|
|
(900)
|
|
23,836
|
|
|
Deferred revenue
|
|
|
(528)
|
|
(630)
|
|
|
|
(5,259)
|
|
4,403
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
Issuance of long-term
debt
|
|
|
17,500
|
|
22,000
|
|
Long-term debt
financing costs
|
|
|
(901)
|
|
(148)
|
|
Repayment of
long-term debt
|
|
|
(2,492)
|
|
(2,492)
|
|
Payment of principal
on lease liabilities, net of tenant allowance
|
|
|
(7,723)
|
|
(6,738)
|
|
Proceeds from
issuance of Shares
|
|
|
15
|
|
–
|
|
|
|
|
6,399
|
|
12,622
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
Additions to fixed
assets
|
|
|
(1,924)
|
|
(2,289)
|
|
Deconsolidation of
RTS USA Corp.
|
|
|
–
|
|
(541)
|
|
|
|
(1,924)
|
|
(2,830)
|
|
|
|
|
|
|
Increase
(decrease) in cash
|
|
|
(784)
|
|
14,195
|
|
|
|
|
|
|
Cash and bank
indebtedness, beginning of period
|
|
|
9,166
|
|
(6,277)
|
|
|
|
|
|
|
Cash and bank
indebtedness, end of period
|
|
$
|
8,382
|
$
|
7,918
|
SOURCE Roots Corporation