Fourth Quarter 2021
- Net earnings attributable to shareholders of the Corporation ("net earnings") were
$563.9 million , or$0.52 per diluted share for the fourth quarter of fiscal 2021 compared with$576.3 million , or$0.52 per diluted share for the fourth quarter of fiscal 2020. Adjusted net earnings1 were approximately$564.0 million compared with$520.0 million for the fourth quarter of fiscal 2020. Adjusted diluted net earnings per share1 were$0.52 , representing an increase of 10.6% from$0.47 for the corresponding quarter of last year. - The fourth quarter of fiscal 2021 marks the first period that cycled the start of the COVID-19 pandemic and associated impacts. As we moved through the quarter, results varied by region as some saw a progressive lifting of restrictive social measures while others continued to struggle with restrictions. Convenience performed well on a 2-year basis and categories most impacted by COVID-19, such as food, are showing positive trends. Fuel margins continue to be higher than 2019 level, even though fuel volumes are still below as they continue to be challenged by work from home trends and changes in local restrictions.
-
Total merchandise and service revenues of
$3.7 billion , an increase of 15.2%. Same-store merchandise revenues increased 8.1% in theU.S. , 9.7% inEurope and other regions, and 1.6% inCanada . A strong performance, particularly when looking at the growth of same-store merchandise revenues on a 2-year basis. -
Merchandise and service gross margin decreased 0.7% in the
U.S. to 31.8%, 0.1% inCanada to 31.0%, and 2.5% inEurope and other regions to 38.1%, which was impacted by the integration of Circle K Hong Kong. Gross margin in theU.S. andCanada was impacted by inventory adjustments of$26.4 million and$3.2 million ,respectively, mostly related to specific COVID-19 related effects. Excluding inventory adjustments, gross margin in theU.S. andCanada would have been 32.8% and 31.6%, respectively, favorably impacted by changes in product mix. -
Same-store road transportation fuel volume increased 5.4% in the
U.S. , 3.6% inEurope and other regions, and 4.9% in Canada, due to higher fuel demand compared to the comparative quarter. -
Road transportation fuel gross margin of 34.45¢ per gallon in the
U.S , a decrease of 10.48¢ per gallon due to the unusually high fuel margins of the comparable quarter. InEurope and other regions, it increased by US 2.18¢ per liter to US 10.85¢ per liter, and by CA 2.56¢ per liter in Canada to CA 10.92¢ per liter. - Looking at gross profit on a 2-year basis provides additional insight given the volatility in the various key measures of our business. Excluding the impact of CAPL and Circle K Hong Kong, merchandise and service, as well as road transportation fuel gross profit, are higher by 4.2% and 42.5%, respectively, compared with the pre-pandemic fourth quarter of fiscal 2019.
-
Subsequent to the end of the quarter, successful issuance of
$1.0 billion of US-dollar-denominated senior unsecured notes, including an inaugural tranche of Green Bonds totaling $350.0 million.
Fiscal Year 2021
- Net earnings per diluted share of
$2.44 compared with$2.09 for fiscal 2020, an increase of 16.7%, while adjusted diluted net earnings per share1 were$2.45 compared with$1.97 for fiscal 2020, an increase of 24.4%. -
Fulfillment of the
November 24, 2020 share repurchase program, totaling$1.1 billion , including$550.4 million during the fourth quarter of fiscal 2021. Subsequent to the end of the quarter, the Corporation implemented a new share repurchase program which allows it to repurchase up to 4.0% of the public float of its Class B subordinate voting shares. Under this new program, shares for a net amount of $299.2 million were repurchased. - Increase in the annual dividend of 25.5%, from CA 26.5¢ to CA 33.25¢.
- Return on capital employed1 improved from 15.0% to 15.9%, on a pro forma basis.
- Leverage ratio1 improved from 1.54 : 1 to 1.32 : 1, driven by strong earnings.
______________________________
1 Please refer to the section "Non-IFRS Measures" for additional information on these performance measures not defined by IFRS. |
"We had a solid fourth quarter overall, with results strengthening where we are seeing COVID-19 restrictions easing. Across the board, we had positive trends in same-store merchandises sales and fuel volumes as traffic is returning to our locations. While fuel volumes remained impacted by restrictive measures, we had a steady improvement in parts of the network, especially in the
"This strong quarter ended a remarkable year both financially and operationally, despite the persistent pressures of the pandemic on our customers, employees and supply partners. Across the global network, we made notable progress on our strategy of accelerating organic growth by expanding our fresh food offer, data-analytic capabilities, and our fuel procurement and transport capabilities. We also reinvented and expanded our brands, making them increasingly more modern and recognizable at every part of the customer journey and facilitated the customer experience through expanded frictionless payment options. Through the acquisition of Circle K Hong Kong, we made our long-planned entry into the dynamic Asian market and, through our
______________________
1 Please refer to the section "Non-IFRS Measures" for additional information on these performance measures not defined by IFRS. |
Significant Items of the Fourth Quarter of Fiscal 2021
-
The fourth quarter of fiscal 2021 marks the first period that cycled the start of the COVID-19 pandemic and associated impacts. As we moved through the quarter, results varied by region as some saw a progressive lifting of restrictive social measures while others continued to struggle with restrictions. Convenience performed well on a 2-year basis and categories most impacted by COVID-19, such as food, are showing positive trends. Fuel margins continue to be higher than 2019 level, even though fuel volumes are still below as they continue to be challenged by work from home trends and changes in local restrictions. From an operating expense perspective, while we continue to promote and support the wellness of our employees and customers, our cost optimization projects and government grants recognized had a favorable impact on our operating costs.
Looking at gross profit on a 2-year basis provides additional insight given the volatility in the various key measures of our business. Excluding the impact of CAPL and Circle K Hong Kong, merchandise and service, as well as road transportation fuel gross profit, are higher by 4.2% and 42.5%, respectively, compared with the pre-pandemic fourth quarter of fiscal 2019. -
During the quarter, a principal amount of CA
$26.1 million ($20.3 million ) of convertible debentures was converted into common shares of Fire & Flower Holdings Corp. ("Fire & Flower"), which increased our ownership interests to approximately 20.0%. -
We disposed of a property located in
Toronto, Canada , for cash consideration of$31.5 million and recognized a gain on disposal of$26.6 million . -
During the fourth quarter and fiscal 2021, under our
November 24, 2020 share repurchase program, we repurchased 17,409,619 and 33,336,141 Class B subordinate voting shares, respectively. These repurchases were settled for net amounts of$550.4 million and$1.1 billion , respectively. The program terminated early as the authorized share repurchase limit was reached. OnApril 21, 2021 , theToronto Stock Exchange approved the implementation of our new share repurchase program ("New Program"), which took effect onApril 26, 2021 . The New Program allows us to repurchase up to 4.0% of the public float of our Class B subordinate voting shares. Subsequent to the end of fiscal year 2021, we repurchased 8,471,000 Class B subordinate voting shares under the New Program, for a net amount of$299.2 million . -
Subsequent to the end of the quarter, we issued US-dollar-denominated senior unsecured notes totaling
$1.0 billion , consisting of a$650.0 million tranche with a coupon rate of 3.439% and maturing in 2041, as well as a$350.0 million Green Bonds tranche with a coupon rate of 3.625% and maturing in 2051. An amount equal to the net proceeds of the Green Bonds will be used to finance or refinance our new or existing environmentally friendly projects and community initiatives, which further our commitment for a more responsible future. The remaining proceeds, as well as cash on hand, were used to fully repay, before its term, our$1.0 billion US-dollar-denominated senior unsecured notes that were set to mature onJuly 26, 2022 . Following the delivery of a redemption notice onApril 14, 2021 , we recognized to earnings of fiscal 2021 an expense of$29.1 million , which includes an early redemption premium of$27.7 million .
Changes in our Network during the Fourth Quarter of Fiscal 2021
-
On
March 22, 2021 , we reached an agreement to sell 49 sites located inOklahoma , withinthe United States , to Casey's General Stores Inc. for cash consideration of approximately$39.0 million . The transaction closed subsequent to the end of the fiscal year. As atApril 25, 2021 , all of these sites were classified as held for sale.
Also, onMarch 22, 2021 , we announced our intention to sell certain sites across 25 states inthe United States and 6 provinces inCanada . We expect that these sites will be sold to various buyers during fiscal year 2022. The decision to dispose of these sites was based on the outcome of a strategic review of our network. As atApril 25, 2021 , 264 sites inthe United States and 37 sites inCanada were classified as held for sale. -
We acquired 2 company-operated stores, reaching a total of 26 company-operated stores through various transactions since the beginning of fiscal 2021.
-
We completed the construction of 23 stores and the relocation or reconstruction of 11 stores, reaching a total of 95 stores since the beginning of fiscal 2021. As of
April 25, 2021 , another 48 stores were under construction and should open in the upcoming quarters.
Summary of changes in our store network during the fourth quarter and fiscal 2021
The following table presents certain information regarding changes in our store network over the 12–week period ended April 25, 2021:
12–week period ended April 25, 2021 | |||||
Type of site |
Company- | CODO | DODO |
Franchised
and | Total |
Number of sites, beginning of period | 9,978 | 402 | 693 | 1,250 | 12,323 |
Acquisitions | 2 | — | — | 3 | 5 |
Openings / constructions / additions | 23 | — | 7 | 22 | 52 |
Closures / disposals / withdrawals | (28) | (2) | (3) | (19) | (52) |
Store conversion | 1 | (2) | — | 1 | — |
Number of sites, end of period | 9,976 | 398 | 697 | 1,257 | 12,328 |
Circle K branded sites under licensing agreements | 1,894 | ||||
Total network | 14,222 | ||||
Number of automated fuel stations included in the period-end figures | 981 | — | 10 | — | 991 |
The following table presents certain information regarding changes in our store network over the 52–week period ended April 25, 2021:
52–week period ended April 25, 2021 | |||||
Type of site |
Company- |
CODO |
DODO |
Franchised
and | Total |
Number of sites, beginning of period | 9,691 | 453 | 689 | 1,291 | 12,124 |
Acquisitions | 367 | — | 1 | 12 | 380 |
Openings / constructions / additions | 65 | 1 | 32 | 74 | 172 |
Closures / disposals / withdrawals | (143) | (39) | (43) | (123) | (348) |
Store conversion | (4) | (17) | 18 | 3 | — |
Number of sites, end of period | 9,976 | 398 | 697 | 1,257 | 12,328 |
Circle K branded sites under licensing agreements | 1,894 | ||||
Total network | 14,222 |
Exchange Rate Data
We use the US dollar as our reporting currency, which provides more relevant information given the predominance of our operations in
The following table sets forth information about exchange rates based upon closing rates expressed as US dollars per comparative currency unit:
12–week periods ended | 52–week periods ended | |||
Average for the period | ||||
Canadian dollar | 0.7930 | 0.7275 | 0.7630 | 0.7494 |
Norwegian krone | 0.1178 | 0.1005 | 0.1110 | 0.1096 |
Swedish krone | 0.1181 | 0.1016 | 0.1141 | 0.1038 |
Danish krone | 0.1611 | 0.1467 | 0.1577 | 0.1485 |
Zloty | 0.2631 | 0.2485 | 0.2610 | 0.2568 |
Euro | 1.1979 | 1.0953 | 1.1742 | 1.1087 |
Ruble | 0.0133 | 0.0141 | 0.0135 | 0.0153 |
Hong Kong dollar(1) | 0.1288 | — | 0.1289 | — |
(1) For the 52-week period ended |
Change in Classification of Internal Logistics Costs
During the fiscal year ended
Furthermore, we changed the calculation of the key performance indicator used for road transportation fuel gross margin for
Please refer to the section "Change in Classification of Internal Logistics Costs" of the 2021 Management Discussion and Analysis for additional information on the impact of these changes.
Summary Analysis of Consolidated Results for the Fourth Quarter and Fiscal 2021
The following table highlights certain information regarding our operations for the 12 and 52–week periods ended April 25, 2021 and
12–week periods ended | 52–week periods ended | |||||
(in millions of US dollars, unless otherwise stated) | 2021 | April 26, 2020 Adjusted(3) | Variation % | 2021 | April 26, 2020 Adjusted(3) | Variation % |
Statement of Operations Data: | ||||||
Merchandise and service revenues(1): | ||||||
United States | 2,627.2 | 2,433.8 | 7.9 | 11,489.9 | 10,918.4 | 5.2 |
551.9 | 312.9 | 76.4 | 1,830.8 | 1,416.3 | 29.3 | |
545.4 | 486.7 | 12.1 | 2,552.3 | 2,302.7 | 10.8 | |
CAPL | — | — | — | — | 29.6 | (100.0) |
Elimination of intercompany transactions with CAPL | — | — | — | — | (0.8) | (100.0) |
Total merchandise and service revenues | 3,724.5 | 3,233.4 | 15.2 | 15,873.0 | 14,666.2 | 8.2 |
Road transportation fuel revenues: | ||||||
United States | 5,624.1 | 4,304.1 | 30.7 | 19,594.7 | 25,724.8 | (23.8) |
1,803.0 | 1,360.4 | 32.5 | 6,295.3 | 7,481.1 | (15.9) | |
923.1 | 660.2 | 39.8 | 3,515.3 | 4,415.7 | (20.4) | |
CAPL | — | — | — | — | 1,365.7 | (100.0) |
Elimination of intercompany transactions with CAPL | — | — | — | — | (288.0) | (100.0) |
Total road transportation fuel revenues | 8,350.2 | 6,324.7 | 32.0 | 29,405.3 | 38,699.3 | (24.0) |
Other revenues(2): | ||||||
United States | 10.0 | 8.8 | 13.6 | 44.3 | 36.9 | 20.1 |
151.2 | 115.7 | 30.7 | 419.3 | 652.0 | (35.7) | |
1.5 | 4.6 | (67.4) | 18.2 | 21.3 | (14.6) | |
CAPL | — | — | — | — | 65.6 | (100.0) |
Elimination of intercompany transactions with CAPL | — | — | — | — | (8.9) | (100.0) |
Total other revenues | 162.7 | 129.1 | 26.0 | 481.8 | 766.9 | (37.2) |
Total revenues | 12,237.4 | 9,687.2 | 26.3 | 45,760.1 | 54,132.4 | (15.5) |
Merchandise and service gross profit(1)(4): | ||||||
United States | 834.7 | 790.7 | 5.6 | 3,798.7 | 3,641.2 | 4.3 |
210.3 | 127.0 | 65.6 | 716.2 | 587.6 | 21.9 | |
169.2 | 151.3 | 11.8 | 800.2 | 733.2 | 9.1 | |
CAPL | — | — | — | — | 6.8 | (100.0) |
Elimination of intercompany transactions with CAPL | — | — | — | — | (0.8) | (100.0) |
Total merchandise and service gross profit | 1,214.2 | 1,069.0 | 13.6 | 5,315.1 | 4,968.0 | 7.0 |
Road transportation fuel gross profit(4): | ||||||
717.0 | 895.7 | (20.0) | 3,095.2 | 3,103.3 | (0.3) | |
264.3 | 206.2 | 28.2 | 1,119.7 | 932.0 | 20.1 | |
94.3 | 63.4 | 48.7 | 391.6 | 344.2 | 13.8 | |
CAPL | — | — | — | — | 57.5 | (100.0) |
Total road transportation fuel gross profit | 1,075.6 | 1,165.3 | (7.7) | 4,606.5 | 4,437.0 | 3.8 |
Other revenues gross profit(2)(4): | ||||||
United States | 10.7 | 8.8 | 21.6 | 44.2 | 36.9 | 19.8 |
32.5 | 19.8 | 64.1 | 131.2 | 123.6 | 6.1 | |
1.5 | 4.6 | (67.4) | 18.3 | 21.2 | (13.7) | |
CAPL | — | — | — | — | 65.7 | (100.0) |
Elimination of intercompany transactions with CAPL | — | — | — | — | (8.9) | (100.0) |
Total other revenues gross profit | 44.7 | 33.2 | 34.6 | 193.7 | 238.5 | (18.8) |
Total gross profit(4) | 2,334.5 | 2,267.5 | 3.0 | 10,115.3 | 9,643.5 | 4.9 |
Operating, selling, administrative and general expenses | ||||||
Excluding CAPL(9) | 1,246.7 | 1,209.8 | 3.1 | 5,148.6 | 5,189.7 | (0.8) |
CAPL | — | — | — | — | 46.8 | (100.0) |
Elimination of intercompany transactions with CAPL | — | — | — | — | (9.2) | (100.0) |
Total operating, selling, administrative and general expenses | 1,246.7 | 1,209.8 | 3.1 | 5,148.6 | 5,227.3 | (1.5) |
Gain on disposal of property and equipment and other assets | (18.5) | (19.3) | (4.1) | (67.8) | (83.1) | (18.4) |
Depreciation, amortization and impairment | ||||||
Excluding CAPL | 344.9 | 307.4 | 12.2 | 1,358.9 | 1,282.9 | 5.9 |
CAPL | — | — | — | — | 53.9 | (100.0) |
Total depreciation, amortization and impairment | 344.9 | 307.4 | 12.2 | 1,358.9 | 1,336.8 | 1.7 |
Operating income | ||||||
Excluding CAPL | 761.4 | 769.6 | (1.1) | 3,675.6 | 3,137.7 | 17.1 |
CAPL | — | — | — | — | 25.3 | (100.0) |
Elimination of intercompany transactions with CAPL | — | — | — | — | (0.5) | (100.0) |
Total operating income | 761.4 | 769.6 | (1.1) | 3,675.6 | 3,162.5 | 16.2 |
Net financial expenses | 71.7 | 53.2 | 34.8 | 342.5 | 284.5 | 20.4 |
Net earnings including non-controlling interests | 563.9 | 578.3 | (2.5) | 2,705.5 | 2,357.6 | 14.8 |
Net earnings attributable to non-controlling interests | — | (2.0) | (100.0) | — | (4.0) | (100.0) |
Net earnings attributable to shareholders of the Corporation | 563.9 | 576.3 | (2.2) | 2,705.5 | 2,353.6 | 15.0 |
Per Share Data: | ||||||
Basic net earnings per share (dollars per share) | 0.52 | 0.52 | — | 2.45 | 2.10 | 16.7 |
Diluted net earnings per share (dollars per share) | 0.52 | 0.52 | — | 2.44 | 2.09 | 16.7 |
Adjusted diluted net earnings per share (dollars per share)(4)(9) | 0.52 | 0.47 | 10.6 | 2.45 | 1.97 | 24.4 |
12–week periods ended | 52–week periods ended | |||||
(in millions of US dollars, unless otherwise stated) | Variation % |
| Variation % | |||
Other Operating Data – excluding CAPL: | ||||||
Merchandise and service gross margin(1): | ||||||
Consolidated(3) | 32.6% | 33.1% | (0.5) | 33.5% | 33.9% | (0.4) |
United States(3) | 31.8% | 32.5% | (0.7) | 33.1% | 33.3% | (0.2) |
38.1% | 40.6% | (2.5) | 39.1% | 41.5% | (2.4) | |
31.0% | 31.1% | (0.1) | 31.4% | 31.8% | (0.4) | |
Growth of (decrease in) same-store merchandise revenues(5): | ||||||
United States(6) | 8.1% | (0.5%) | 5.6% | 2.1% | ||
9.7% | (6.5%) | 6.1% | 0.1% | |||
1.6% | 4.7% | 9.5% | 2.8% | |||
Road transportation fuel gross margin: | ||||||
34.45 | 44.93 | (23.3) | 35.28 | 29.62 | 19.1 | |
10.85 | 8.67 | 25.1 | 10.99 | 8.48 | 29.6 | |
10.92 | 8.36 | 30.6 | 10.36 | 7.88 | 31.5 | |
Total volume of road transportation fuel sold: | ||||||
2,081.5 | 1,993.5 | 4.4 | 8,772.8 | 10,476.1 | (16.3) | |
2,436.4 | 2,378.9 | 2.4 | 10,191.8 | 10,990.3 | (7.3) | |
1,089.6 | 1,035.7 | 5.2 | 4,952.6 | 5,815.6 | (14.8) | |
Growth of (decrease in) same-store road transportation fuel volume(6): | ||||||
United States | 5.4% | (18.3%) | (12.9%) | (3.9%) | ||
Europe and other regions | 3.6% | (13.4%) | (6.4%) | (3.9%) | ||
4.9% | (23.5%) | (14.9%) | (6.0%) | |||
(in millions of US dollars, unless otherwise stated) | As at | As at | Variation $ | |||
Balance Sheet Data: | ||||||
Total assets | 28,394.5 | 25,679.5 | 2,715.0 | |||
Interest-bearing debt(8) | 9,602.0 | 10,379.3 | (777.3) | |||
Equity | 12,180.9 | 10,066.6 | 2,114.3 | |||
Indebtedness Ratios(4): | ||||||
Net interest-bearing debt/total capitalization(8) | 0.35 : 1 | 0.40 : 1 | ||||
Leverage ratio(9) | 1.32 : 1 | 1.54 : 1 | ||||
Returns(4): | ||||||
Return on equity | 24.3% | 24.8% | ||||
Return on capital employed | 15.9% | 15.0% |
(1) |
Includes revenues derived from franchise fees, royalties, suppliers' rebates on some purchases made by franchisees and licensees, as well as from wholesale of merchandise. Franchise fees from international licensed stores are presented in |
(2) | Includes revenues from the rental of assets and from the sale of aviation fuel and energy for stationary engines. |
(3) | Please refer to the section "Change in Classification of Internal Logistics Costs" for additional information on changes affecting the comparative periods. |
(4) | Please refer to the section "Non-IFRS measures" for additional information on these performance measures not defined by IFRS. |
(5) |
Does not include services and other revenues (as described in footnotes 1 and 2 above). Growth in |
(6) | For company-operated stores only. |
(7) |
Includes the growth of same-store merchandise revenues of Circle K Hong Kong starting |
(8) | This measure is presented including the following balance sheet accounts: Current portion of long-term debt, Long-term debt, Current portion of lease liabilities, and Lease liabilities. |
(9) |
Prior figures of Adjusted EBITDA, Adjusted net earnings, as well as Adjusted diluted net earnings per share (refer to footnote 4 above) have been updated to remove the adjustment for the restructuring costs. This adjustment had no impact on the leverage ratio as at |
Revenues
Our revenues were
For fiscal 2021, our revenues decreased by
Merchandise and service revenues
Total merchandise and service revenues for the fourth quarter of fiscal 2021 were
For fiscal 2021, the growth in merchandise and service revenues was
Road transportation fuel revenues
Total road transportation fuel revenues for the fourth quarter of fiscal 2021 were
For fiscal 2021, road transportation fuel revenues decreased by
The following table shows the average selling price of road transportation fuel of our company-operated stores in our various markets for the last eight quarters, starting with the first quarter of the fiscal year ended
Quarter | 1st | 2nd | 3rd | 4th |
Weighted |
52–week period ended April 25, 2021 | |||||
United States (US dollars per gallon) | 2.04 | 2.14 | 2.16 | 2.72 | 2.26 |
Europe and other regions (US cents per liter) | 56.89 | 63.19 | 65.84 | 79.29 | 66.42 |
Canada (CA cents per liter) | 86.89 | 92.00 | 92.54 | 108.99 | 94.78 |
52–week period ended April 26, 2020 | |||||
United States (US dollars per gallon) –excluding CAPL | 2.66 | 2.55 | 2.51 | 2.21 | 2.50 |
Europe and other regions (US cents per liter) | 77.35 | 70.86 | 73.92 | 60.95 | 71.20 |
Canada (CA cents per liter) | 111.16 | 105.14 | 103.47 | 88.78 | 103.21 |
Other revenues
Total other revenues for the fourth quarter of fiscal 2021 were
Total other revenues for fiscal 2021 were
Gross profit1
Our gross profit was
For fiscal 2021, our gross profit increased by
Merchandise and service gross profit
In the fourth quarter of fiscal 2021, our merchandise and service gross profit was
During fiscal 2021, our merchandise and service gross profit was
Road transportation fuel gross profit
In the fourth quarter of fiscal 2021, our road transportation fuel gross profit was
During fiscal 2021, our road transportation fuel gross profit was
The road transportation fuel gross margin of our company-operated stores in
(US cents per gallon) | |||||
Quarter | 1st | 2nd | 3rd | 4th | Weighted |
52–week period ended April 25, 2021 | |||||
Before deduction of expenses related to electronic payment modes | 42.99 | 37.48 | 31.86 | 35.25 | 36.48 |
Expenses related to electronic payment modes | 4.88 | 4.79 | 4.66 | 5.10 | 4.84 |
After deduction of expenses related to electronic payment modes | 38.11 | 32.69 | 27.20 | 30.15 | 31.64 |
52–week period ended April 26, 2020 | |||||
Before deduction of expenses related to electronic payment modes | 26.86 | 28.29 | 27.04 | 46.88 | 31.19 |
Expenses related to electronic payment modes | 4.70 | 4.63 | 4.54 | 4.97 | 4.70 |
After deduction of expenses related to electronic payment modes | 22.16 | 23.66 | 22.50 | 41.91 | 26.49 |
Generally, during normal economic cycles, road transportation fuel margins in
Other revenues gross profit
In the fourth quarter and fiscal 2021, other revenues gross profit was
___________________
1 Please refer to the section "Non-IFRS Measures" for additional information on this performance measure not defined by IFRS. |
Operating, selling, administrative and general expenses ("expenses")
For the fourth quarter and fiscal 2021, expenses increased by 3.1% and decreased by 1.5%, respectively, compared with the corresponding periods of fiscal 2020. If we exclude certain items that are not considered indicative of future trends, expenses decreased by 2.9% and by 1.2%, respectively.
12‑week period ended | 52‑week period ended | |
Total variance, as reported | 3.1% | (1.5%) |
Adjusted for: | ||
Increase from the net impact of foreign exchange translation | (3.3%) | (1.3%) |
Increase from incremental expenses related to acquisitions | (2.2%) | (0.9%) |
(Increase) decrease from (higher) lower electronic payment fees, excluding acquisitions | (0.9%) | 1.3% |
Impact from the | 0.3% | 0.4% |
Acquisition costs recognized to earnings of fiscal 2020 | 0.2% | 0.1% |
Acquisition costs recognized to earnings of fiscal 2021 | (0.1%) | (0.2%) |
Decrease from the disposal of our interests in CAPL | — | 0.9% |
Remaining variance | (2.9%) | (1.2%) |
Decrease of expenses of the fourth quarter was driven by government grants of
Earnings before interest, taxes, depreciation, amortization and impairment ("EBITDA1") and adjusted EBITDA1
During the fourth quarter of fiscal 2021, EBITDA stood at
During fiscal 2021, EBITDA increased from
______________________
1 Please refer to the section "Non-IFRS Measures" for additional information on these performance measures not defined by IFRS. |
Depreciation, amortization and impairment ("depreciation")
For the fourth quarter of fiscal 2021, our depreciation expense increased by
For fiscal 2021, our depreciation expense increased by
Net financial expenses
Net financial expenses for the fourth quarter of fiscal 2021 were
Net financial expenses for fiscal 2021 were
12–week periods ended | 52–week periods ended | |||
(in millions of US dollars) | ||||
Net financial expenses, as reported | 71.7 | 53.2 | 342.5 | 284.5 |
Adjusted for: | ||||
Impact of the redemption notice of senior unsecured notes | (29.1) | — | (29.1) | — |
Change in fair value of derivative financial instruments in Fire & Flower and amortization of deferred differences | 21.0 | (0.8) | 26.8 | (3.9) |
Impact from conversion of a portion of our convertible debentures in Fire & Flower | 13.1 | — | 13.1 | — |
Net foreign exchange (loss) gain | (1.1) | 22.8 | (44.9) | 33.5 |
CAPL's financial expenses | — | — | — | (25.6) |
Net financial expenses excluding items above | 75.6 | 75.2 | 308.4 | 288.5 |
Income taxes
The income tax rate for the fourth quarter of fiscal 2021 was 18.5% compared with 20.1% for the corresponding period of fiscal 2020. Excluding the item shown in the table below, the income tax rate for the fourth quarter of fiscal 2020 would have been 20.7%. The decrease for the fourth quarter of fiscal 2021 is mainly stemming from the impact of a different mix in our earnings across the various jurisdictions in which we operate, as well as from gains taxable at a lower income tax rate.
The income tax rate for fiscal 2021 was 19.5% compared with 18.8% for fiscal 2020. Excluding the items shown in the table below, the income tax rate would have been 19.9% for fiscal 2020.
12–week periods ended | 52–week periods ended | |||
Income tax rate, as reported | 18.5% | 20.1% | 19.5% | 18.8% |
Adjusted for: | ||||
Release of deferred tax asset valuation allowance | — | 0.6% | — | 1.2% |
Income tax expense following the | — | — | — | (0.1%) |
Net income tax rate excluding items above | 18.5% | 20.7% | 19.5% | 19.9% |
Net earnings attributable to shareholders of the Corporation ("net earnings") and adjusted net earnings attributable to shareholders of the Corporation ("adjusted net earnings1")
Net earnings for the fourth quarter of fiscal 2021 were
Adjusted net earnings for the fourth quarter of fiscal 2021 were approximately
For fiscal 2021, net earnings were
Adjusted net earnings for fiscal 2021 were approximately
_____________________
1 Please refer to the section "Non-IFRS Measures" for additional information on this performance measure not defined by IFRS. |
Dividends
During its
For fiscal 2021, the Board of Directors declared total dividends of CA 33.25¢ per share, an increase of 25.5% compared with fiscal 2020.
Non-IFRS Measures
To provide more information for evaluating the Corporation's performance, the financial information included in our financial documents contains certain data that are not performance measures under IFRS ("non-IFRS measures"), which are also calculated on an adjusted basis to exclude specific items. We believe that providing those non-IFRS measures is useful to management, investors and analysts, as they provide additional information to measure the performance and financial position of the Corporation.
The following non-IFRS measures are used in our financial disclosures:
- Gross profit;
- Earnings before interest, taxes, depreciation, amortization and impairment ("EBITDA") and adjusted EBITDA;
- Adjusted net earnings attributable to shareholders of the Corporation ("adjusted net earnings") and adjusted diluted net earnings attributable to shareholders of the Corporation per share ("adjusted diluted net earnings per share");
- Net interest-bearing debt/total capitalization and leverage ratios; and
- Return on equity and return on capital employed.
Non-IFRS measures are mainly derived from the consolidated financial statements, but do not have standardized meanings prescribed by IFRS. These non-IFRS measures should not be considered in isolation or as a substitute for financial measures prepared in accordance with IFRS. In addition, our definitions of non-IFRS measures may differ from those of other public corporations. Any such modification or reformulation may be significant. These measures are also adjusted for the pro forma impact of our acquisitions and impacts of new accounting standards, if they are considered to be material. Until November 2019, CAPL's impact was considered as if it was reported using the equity method as we believe it allowed a more relevant presentation of the underlying performance of the Corporation.
Gross profit. Gross profit consists of revenues less the cost of sales, excluding depreciation, amortization and impairment. This measure is considered useful for evaluating the underlying performance of our operations.
The table below reconciles revenues and cost of sales, excluding depreciation, amortization and impairment to gross profit:
12–week periods ended | 52–week periods ended | |||
(in millions of US dollars) | ||||
Revenues | 12,237.4 | 9,687.2 | 45,760.1 | 54,132.4 |
Cost of sales, excluding depreciation, amortization and impairment | 9,902.9 | 7,419.7 | 35,644.8 | 44,488.9 |
Gross profit | 2,334.5 | 2,267.5 | 10,115.3 | 9,643.5 |
(1) Please refer to the section "Change in Classification of Internal Logistics Costs" for additional information on changes affecting the comparative periods. |
Earnings before interest, taxes, depreciation, amortization and impairment ("EBITDA") and adjusted EBITDA. EBITDA represents net earnings plus income taxes, net financial expenses and depreciation, amortization and impairment. Adjusted EBITDA represents EBITDA adjusted for acquisition costs and other specific items. These performance measures are considered useful to facilitate the evaluation of our ongoing operations and our ability to generate cash flows to fund our cash requirements, including our capital expenditures program and payment of dividends.
The table below reconciles net earnings, as per IFRS, to EBITDA and adjusted EBITDA:
12–week periods ended | 52–week periods ended | |||
(in millions of US dollars) | ||||
Net earnings including non-controlling interests, as reported | 563.9 | 578.3 | 2,705.5 | 2,357.6 |
Add: | ||||
Income taxes | 127.6 | 145.4 | 653.6 | 545.9 |
Net financial expenses | 71.7 | 53.2 | 342.5 | 284.5 |
Depreciation, amortization and impairment | 344.9 | 307.4 | 1,358.9 | 1,336.8 |
EBITDA | 1,108.1 | 1,084.3 | 5,060.5 | 4,524.8 |
Adjusted for: | ||||
Gain on disposal of properties | (26.6) | — | (67.5) | — |
Acquisition costs | 1.5 | 2.9 | 11.8 | 6.7 |
Net gain on the disposal of a portion of the Corporation's | — | (41.0) | — | (41.0) |
EBITDA attributable to non-controlling interests | — | (2.0) | — | (66.6) |
Net gain on the disposal of the Corporation's interests in CAPL | — | — | — | (61.5) |
Adjusted EBITDA | 1,083.0 | 1,044.2 | 5,004.8 | 4,362.4 |
Adjusted net earnings and adjusted diluted net earnings per share. Adjusted net earnings represents net earnings attributable to shareholders of the Corporation adjusted for net foreign exchange gains or losses, acquisition costs and other specific items. These measures are considered useful for evaluating the underlying performance of our operations on a comparable basis.
The table below reconcile reported net earnings, as per IFRS, with adjusted net earnings and adjusted diluted net earnings per share:
12–week periods ended | 52–week periods ended | |||
(in millions of US dollars, except per share amounts) | ||||
Net earnings attributable to shareholders of the Corporation, as reported | 563.9 | 576.3 | 2,705.5 | 2,353.6 |
Adjusted for: | ||||
Impact of the redemption notice of senior unsecured notes | 29.1 | — | 29.1 | — |
Gain on disposal of properties | (26.6) | — | (67.5) | — |
Acquisition costs | 1.5 | 2.9 | 11.8 | 6.7 |
Net foreign exchange loss (gain) | 1.1 | (22.8) | 44.9 | (33.5) |
Net gain on the disposal of a portion of the Corporation's | — | (41.0) | — | (41.0) |
Release of deferred tax asset valuation allowance | — | (4.6) | — | (33.6) |
Net gain on the disposal of the Corporation's interests in CAPL | — | — | — | (61.5) |
Income tax expense following the |
— |
— |
— |
2.7 |
Tax impact of the items above and rounding | (5.0) | 9.2 | (7.8) | 22.6 |
Adjusted net earnings attributable to shareholders of the Corporation | 564.0 | 520.0 | 2,716.0 | 2,216.0 |
Weighted average number of shares - diluted (in millions) | 1,086.5 | 1,118.2 | 1,106.7 | 1,124.5 |
Adjusted diluted net earnings per share | 0.52 | 0.47 | 2.45 | 1.97 |
Net interest-bearing debt/total capitalization. This measure represents a measure of financial condition that is especially used in financial circles. For the purpose of this calculation, until
The table below presents the calculation of this performance measure:
(in millions of US dollars) | As at April 25, 2021 | As at April 26, 2020 |
Current portion of long-term debt and current portion of lease liabilities | 1,526.7 | 597.8 |
Long-term debt and lease liabilities | 8,075.3 | 9,781.5 |
Less: Cash and cash equivalents, including restricted cash | 3,019.2 | 3,649.5 |
Net interest-bearing debt | 6,582.8 | 6,729.8 |
Shareholders' equity | 12,180.9 | 10,066.6 |
Net interest-bearing debt | 6,582.8 | 6,729.8 |
Total capitalization | 18,763.7 | 16,796.4 |
Net interest-bearing debt to total capitalization ratio | 0.35 : 1 | 0.40 : 1 |
Leverage ratio. This measure represents a measure of financial condition that is especially used in financial circles. Net interest-bearing debt represents long-term debt plus current portion of long-term debt and lease liabilities plus current portion of lease liabilities. For the purpose of this calculation, until
The table below reconciles net interest-bearing debt and adjusted EBITDA with the leverage ratio:
52‑week periods ended | ||
(in millions of US dollars) | ||
Net interest-bearing debt | 6,582.8 | 6,729.8 |
Adjusted EBITDA | 5,004.8 | 4,362.4 |
Leverage ratio | 1.32 : 1 | 1.54 : 1 |
Return on equity. This measure is used to measure the relation between our profitability and our net assets. Average equity is calculated by taking the average of the opening and closing balance for the 52-week period.
The table below reconciles net earnings, as per IFRS, with the ratio of return on equity:
52–week periods ended | ||
(in millions of US dollars) | ||
Net earnings attributable to shareholders of the Corporation | 2,705.5 | 2,353.6 |
Average equity attributable to shareholders of the Corporation | 11,123.8 | 9,490.2 |
Return on equity | 24.3% | 24.8% |
Return on capital employed. This measure is used to measure the relation between our profitability and capital efficiency. Earnings before interest and taxes ("EBIT") represents net earnings plus income taxes and net financial expenses. Capital employed represents total assets less short-term liabilities not bearing interests, which excludes current portion of long-term debt and current portion of lease liabilities. Average capital employed is calculated by taking the average of the beginning and ending balance of capital employed for the reported period. For the 52-week period ended
The table below reconciles net earnings, as per IFRS, to EBIT with the ratio of return on capital employed:
52–week periods ended | ||
(in millions of US dollars) | ||
Net earnings including non-controlling interests, as reported | 2,705.5 | 2,357.6 |
Add: | ||
Income taxes | 653.6 | 545.9 |
Financial expenses | 342.5 | 284.5 |
EBIT attributable to non-controlling interests | — | (24.6) |
EBIT | 3,701.6 | 3,163.4 |
Average capital employed | 23,252.3 | 20,434.7 |
Pro forma adjustments | — | 690.1 |
Average capital employed, adjusted for pro forma | 23,252.3 | 21,124.8 |
Return on capital employed | 15.9% | 15.0% |
Profile
For more information on
The statements set forth in this press release, which describes
Webcast on June 30, 2021, at 8:00 A.M. (EDT)
Financial analysts, investors, media and any individuals interested in listening to the webcast on
Rebroadcast: For individuals who will not be able to listen to the live webcast, a recording of the webcast will be available on the Corporation's website for a period of 90 days.
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