Results
For the nine month period ended
The effect of the cost of options had no impact on basic net earnings per share for the nine month periods ended
For the nine month period ended
During the preceding year ended
Excluding all these effects, the variation in adjusted net earnings would have been
The
(Unaudited and $ in thousands) | |||
Net earnings | 20,674 | 33,352 | |
Gain on disposal of fixed assets (after-tax) | - | (4,522) | |
Variation in cost of options (after-tax) | (87) | (212) | |
Adjusted net earnings | 20,587 | 28,618 | |
Minus: Adjusted net earnings for 2018 | 28,618 | ||
Variation | (8,031) |
This variation in adjusted after-tax income is allocated throughout the quarters as follows:
(Unaudited and $ in thousands) | |||||
Increase | Increase | Increase | |||
(decrease) | (decrease) | (decrease) | |||
in retail operating | in investment | in adjusted | |||
earnings | income | operating earnings | |||
As at | (5,586) | 1,924 | (3,662) | ||
As at | (1,869) | (1,584) | (3,453) | ||
As at | (3,249) | 2,333 | (916) | ||
Total: | (10,704) | 2,673 | (8,031) |
The decrease in gross profit is due to the decline in revenues and accounts for 70% of the decrease in retail operating earnings of the Company.
The retail operating earnings have also been affected by the considerable increase in delivery costs, as well as the costs associated with store openings, modifications and renovations of the banners within the Company.
Annual Financial Information | |||
($ in thousands, except for per share amounts) | |||
12 months | 13 months | ||
$ | $ | ||
Revenue | 740,017 | 810,144 | |
Net Earnings | 45,165 | 49,335 | |
Total Assets | 367,624 | 312,569 | |
Net Earnings Per Share | |||
Basic | 1.29 | 1.36 | |
Diluted | 1.29 | 1.36 | |
Dividends Per Share | 0.28 | 0.24 |
Financial position and dividends
Cash, net of the bank overdraft, and investments increased by
As at
Pursuant to the normal course issuer-bid put in place on
During the nine month period ended
A semi-annual eligible dividend of
Quarterly results | |||||||
(Unaudited and $ in thousands, except for per share amounts) | |||||||
2019 | 2018 | 2019 | 2018 | ||||
$ | $ | $ | $ | ||||
Revenue | 149,668 | 162,194 | 214,380 | 219,640 | |||
Net (loss) earnings | (3,455) | 4,806 | 13,480 | 16,933 | |||
Net (loss) earnings per share | |||||||
Basic | (0.10) | 0.13 | 0.39 | 0.48 | |||
Diluted | (0.10) | 0.13 | 0.39 | 0.48 | |||
2019 | 2018 | 2019 | 2018 | ||||
(3 months) | (4 months) | ||||||
$ | $ | $ | $ | ||||
Revenue | 182,685 | 184,115 | 174,068 | 245,110 | |||
Net (loss) earnings | 10,649 | 11,613 | 11,813 | 17,720 | |||
Net (loss) earnings per share | |||||||
Basic | 0.31 | 0.34 | 0.34 | 0.34 | |||
Diluted | 0.31 | 0.34 | 0.34 | 0.34 |
For the quarter ended
The effect of the cost of options had no impact on basic net earnings per share for the three month period ended
For the three month period ended
Excluding all these effects, the variation to the adjusted net earnings would have been
The
(Unaudited and $ in thousands) | |||
Net earnings | 10,649 | 11,613 | |
Variation of cost of options (after-tax) | (2) | (50) | |
Adjusted net earnings | 10,647 | 11,563 | |
Minus: Adjusted net earnings for 2018 | 11,563 | ||
Variation | (916) |
Operations
The Company continues to restructure all of its websites and the first phase of the implementation of a distinct e-commerce platform for its banners Brault & Martineau and EconoMax is now completed and operational. The process of implementation will continue throughout 2019 for the following phases as well as the restructuring for all the other banners of the Company. The Company also reviewed its IT systems in to order standardize them throughout the banners, as well as to allow them to be more aligned with its e-commerce strategies. Following this review, the Company decided to invest and to modify its existing IT systems, the integration and implementation which will continue for a 3 to 5 year period. The cost of these modifications are estimated to be
The Company proceeded to change its financial year-end date from
Brault & Martineau and EconoMax Division
The new Brault &
The costs incxurred with the opening of the new St-Rose store were of
On
The Company continues the evaluation process for different sites as well as its existing stores to modify them or in certain cases proceed with the reconstruction of a new store based on its new prototype. The new
Management discussion and outlook for the future of the Company
According to Statistic Canada, retail sales in
On the other hand, the labour market is showing signs of tightening. The employment rate in all of
Quebecers are more indebted than ever. The debt ratio of
Caution regarding forward-looking statements
This press release contains certain forward-looking statements with respect to the Company. These forward-looking statements are identified by the use of terms and phrases such as "anticipate", "believe", "estimate", expect", "intend", "may", "plan", "predict", "project", "will", "would", as well as the negative of these terms and similar terminology, including references to assumptions.
Forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by these forward-looking statements. Results indicated in forward-looking statements may differ materially from actual results for a number of reasons which the Company has identified in the 2019 Annual Information Form under "Narrative Description of the Business - Risk Factors", and other risks detailed from time to time in the Company's continuous disclosure documents.
The reader is cautioned that the factors we refer above are not exhaustive of the factors that may affect any of the Company's forward-looking statements. The reader is also cautioned to consider these and other factors carefully and not to put undue reliance on forward-looking statements.
The Company made a number of assumptions in making forward-looking statements in this press release. The Company considers the assumptions on which these forward-looking statements are based to be reasonable.
These statements reflect current expectations regarding future events and operating performance and speak only as of the date of release of this press release, and represent the Company's expectations as of that date. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by law.
Non International Financial Reporting Standards (IFRS) financial measures
The Company discloses adjusted net earnings, which includes or excludes certain amounts that are not considered representative of performance measures for the Company. Management believes that this measure is useful in understanding and analysing the operational performance of the Company and more appropriate to provide additional information.
Adjusted net earnings as well as same store revenues are not an earnings measure recognised by IFRS and does not have a standardised meaning prescribed by IFRS. Therefore, adjusted net earnings and same store revenues as discussed in this MD&A may not be compared to similar measures presented by other issuers. This measure of performance should not be considered as an alternative as an indicator of performance calculated according to IFRS, but rather as additional information.
The Company discloses in this MD&A under the section "Results" a reconciliation between net earnings and adjusted net earnings.
SOURCE
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