Results*
For the semester ended
For the semesters ended
Excluding all these effects, the variation in adjusted net earnings would have been (
The (
(Unaudited and $ in thousands) | |||
Net earnings | 7 152 | 10 025 | |
Variation in cost of options (after-tax) | - | (85) | |
Adjusted net earnings | 7 152 | (9 940) | |
Minus: Adjusted net earnings for 2019 | 9 940 | ||
Variation | (2 788) |
This variation in adjusted after-tax income is allocated throughout the quarters as follows:
(Unaudited and $ in thousands) | |||||
Increase (decrease) in | Increase (decrease) | Increase (decrease) in | |||
April 30, 2020 | 784 | (9 695) | (8 911) | ||
July 31, 2020 | 1 707 | 4 416 | 6 123 | ||
Total | 2 491 | (5 279) | (2 788) |
* As of |
Despite the significant drop in sales in the first semester of 2020, the Company managed to improve its retail operating results by
Annual financial information | |||
($ in thousands, except for per share amounts) | |||
Revenue | 720 169 | 742 474 | |
Net earnings | 36 034 | 45 165 | |
Total assets | 382 040 | 367 624 | |
Net earnings per share | |||
Basic | 1,05 | 1,29 | |
Diluted | 1,05 | 1,29 | |
Dividends per share | 0,28 | 0,28 |
Financial position and dividends
Cash, net of the bank overdraft, and investments increased by
Pursuant to the normal course issuer-bid put in place on
During the semester ended
Quarterly results * | |||||
(Unaudited and $ in thousands, except for per share amounts) | |||||
2020 | 2019 | 2020 | 2019 | ||
Revenue | 100 445 | 150 310 | 175 973 | 215 067 | |
Net (loss) earnings | (12 427) | (3 455) | 19 579 | 13 480 | |
Net (loss) earnings per share | |||||
Basic | (0,36) | (0,10) | 0,57 | 0,39 | |
Diluted | (0,36) | (0,10) | 0,57 | 0,39 | |
|
|
|
| ||
Revenue | 183 312 | 184 718 | 171 480 | 174 634 | |
Net earnings | 10 649 | 11 613 | 15 360 | 11 813 | |
Net earnings per share | |||||
Basic | 0,31 | 0,34 | 0,45 | 0,34 | |
Diluted | 0,31 | 0,34 | 0,45 | 0,34 | |
*Comparative data relating to revenue have been restated following a change in presentation. |
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 | 19 579 | 13 480 | |
Variation in cost of options (after-tax) | - | (24) | |
Adjusted net earnings | 19 579 | 13 456 | |
Minus: Adjusted net earnings for 2019 | 13 456 | ||
Variation | 6 123 |
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 &
Brault & Martineau Division
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
The Company's first and second quarters of 2020 delivered strong operational results, despite the negative financial impact of COVID-19. The decrease in revenues during the first semester was totally due to the temporary physical store closures. During this second quarter the Company was able to reopen all of its 32 points of sale and in order to mitigate the loss of revenues during the closure, the Company proactively aligned its cost structure accordingly. These steps were taken throughout the first semester in order to protect the Company's viability and preserve its working capital during these highly uncertain times. Thanks to these new measures the Company was able to produce positive operating results. This new cost structure will remain effective throughout the remainder of the 2020 fiscal year.
On
In order to address the devastating effects of COVID-19 and to assure its short and long-term financial health, the Company decided to maintain its operations at a strict minimum level while preserving its presence in our market and controlling its working capital position. The following actions were undertaken by the Company during these last weeks in order to support its operating and working capital objectives:
- Following the closure of our retail sales network on
March 18 th, 2020, the Company temporarily laid off approximately 75% of its personnel, the vast majority stemming from our retail stores. - Our online and delivery services remained operational across
Quebec to ensure the population in confinement the ability to rely on essential goods while respecting government-mandated security protocols. We modified our services to offer contactless home delivery. - During this period, the Company introduced several measures and protocols in preparation for the reopening of our stores across our sales network to ensure and protect the health and security of our employees and our clients. These new measures and protocols will be in effect until the end of the COVID-19 pandemic.
- The Company has also made technological and operational improvements to its sales network. These modifications will allow us to reduce our fixed costs and will contribute to our initiatives of effective cost controls.
- The Company applied for the
Canada Emergency Wage Subsidy given the 30% or more decrease in revenues during the prescribed period.
During the closure of our retail stores, from
During the first quarter of 2020, the Company had all of its 32 points of sale closed for a period of 43 consecutive days, leaving only online sales operational. The loss of revenues arising from the first quarter closure produced a revenue decrease of
On
On
The rehiring of temporarily laid-off employees is in progress and proceeding as the situation evolves. The Company has actively worked to promote a call-back of its employees as soon as possible and according to operational needs.
As a result of the increase in sales since the gradual reopening of our stores, the Company was able to call-back about 75% of its sales staff. The Company must continue to respect social distancing as well as the maximum number of people allowed in a commercial establishment due to the regulations set by the provincial government with COVID-19, thus limiting the number of possible sales staff per store.
The new measure related to COVID-19 which the Company had to implement in its stores and distribution centers and the effects of the closures and re-openings of our stores had a significant impact on the Company's financial results in the first semester. Despite these additional costs, the Company still managed to improve its operating results by approximately
In this new economy the widespread cost restructuring as well as technological and operational improvements has produced a massive increase in unemployment rate in response to the COVID-19 pandemic. In addition, to the increase in the cost of living and the high level of Quebecers
As at
Management is confident that the Company's operational efficiency during this crisis, its market leadership and solid financial position will allow us to emerge a stronger organization even in these difficult market conditions.
We would like to take this opportunity to thank all our fellow citizens
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 opposites 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 2020 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 the performance measures and financial recurrence of the Company. Management believes that this measure is useful in understanding and analyzing the operational performance of the Company and that it can provide additional information.
Adjusted net earnings as well as same store revenues are not an earnings measure recognized by IFRS and do not have a standardized meanings prescribed by IFRS. Therefore, adjusted net earnings and same store revenues as discussed in this press release may not be compared to similar measures presented by other issuers. These measures of performance should not be considered as alternatives to indicators of performance calculated according to IFRS, but rather as a source of additional information.
The Company discloses in this press release under the section "Results" a reconciliation between net earnings and adjusted net earnings.
SOURCE
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