CANADIAN TIRE CORPORATION, LIMITED - Retail consolidated full-year comparable sales1 finished the year down 2.9%, and full-year Retail Gross Margin rate1 was effectively flat to 2022.
- Full-year Diluted Earnings Per Share ("EPS") was
$3.78 or$10.37 on a normalized basis1; Q4 Diluted EPS was$3.09 or$3.38 on a normalized basis. - Triangle Rewards drove an incremental
$253 million in sales in 2023 through the more than 4.4 million members who received personalized offers. - CTC invested more than
$680 million in total capital expenditures to build out its assets and capabilities under its Better Connected strategy and returned close to$740 million of capital to shareholders in fiscal year 2023.
"Our performance last year fell short of our expectations as our team continues to navigate a challenging macroeconomic environment. In the face of significant headwinds, we remain agile and we are flexing across our multi-category portfolio with a focus on value and the essential categories Canadians need right now. The actions we have taken, particularly in the second half of 2023, are driving efficiencies and enabling us to prioritize key investments within our Better Connected strategy, including the continued rollout of our omnichannel initiatives," said
"In the near-term, we are taking a measured and cautious approach to our operating plans. While the pace of our investments has slowed, we remain committed to our strategy as we balance tough short-term decisions with our long-term objectives," added Hicks.
- Consolidated comparable sales were down 6.8% and consolidated retail sales excluding Petroleum1 were down 6.9%, reflecting continued softening of consumer demand, compounded by weaker sales in winter categories across all banners due to unseasonable weather across the country in December.
- Canadian Tire Retail ("CTR") comparable sales1 were down 6.8%, with sales of essential categories continuing to outpace discretionary sales in light of softer consumer demand. One of the warmest Decembers on record in many parts of the country particularly impacted Seasonal and Gardening categories. Automotive stood out as CTR's strongest division during the quarter.
- SportChek comparable sales1 were down 6.4%, led by declines in outerwear, skis, and snowboards.
- Mark's comparable sales1 were down 7.2%, mainly in winter weather categories, against strong growth in 2022.
- Retail income before income taxes ("IBT") was
$161.7 million and normalized Retail IBT1 was $181.3 million, down mainly due to the decline in Retail Revenue and higher interest expense, partially offset by lower selling, general and administrative ("SG&A") expense. Lower sales across banners contributed to the revenue reduction, as did the timing and magnitude of the Margin Sharing Arrangement ("MSA") contribution at CTR. - Financial Services IBT was broadly stable compared to the prior year at
$85.2 million and $87.2 million on a normalized basis1, despite the expected increase in risk metrics which drove higher net impairment losses, as well as higher funding costs. Cardholder engagement remained strong, with growth in Gross average accounts receivables ("GAAR")1 and active accounts, up 4.7% and 1.1% respectively.
- Full-year consolidated comparable sales were down 2.9% and Retail sales excluding Petroleum were down 3.1%, reflecting softening consumer demand through the second half of the year and the impact of unseasonable weather in Q4.
- Retail Gross Margin rate (excluding Petroleum)1 for the full year aligned with expectations at 35.5%, compared to 35.6% in 2022.
- CTC advanced its strategic pillars by emphasizing loyalty capabilities and Owned Brands.
- Driving engagement and surfacing value to Triangle Rewards loyalty members remained a key priority in 2023.
- 11.4 million members actively shopped CTC, with loyalty sales1 constituting nearly 60% of total sales; personalized sales through 1:1 offers increased by
$253 million . - The Company's loyalty partnership with Petro-Canada is set to launch in
March 2024 , extending the Triangle Rewards program to a network of more than 1,800 gas stations nationwide.
- 11.4 million members actively shopped CTC, with loyalty sales1 constituting nearly 60% of total sales; personalized sales through 1:1 offers increased by
- Owned Brands sales penetration1 remained robust, accounting for 38% of total retail sales.
- Key essential categories such as tires, oil, hockey, and pet experienced increased penetration through brands like MotoMaster, ProSeries, Paderno/Vida by Paderno, Sherwood, and Petco, maintaining a margin premium over national brands.
- The Company's commitment to enhancing the customer experience was evident through the refresh and modernization of 45
Canadian Tire stores, the opening of three new stores inQuebec (Mont Tremblant andSherbrooke ) andOntario (Toronto ), as well as four new Mark's WorkPro stores. - Key omnichannel initiatives, including pick-up lockers, electronic shelf labels, and scan-and- buy features, were part of the continued investment in providing a superior customer experience.
- Following a successful pilot earlier in 2023, Express Delivery was expanded nationally across all banners in the quarter, offering same-day delivery services to customers. Take-up has been positive, with 83% of
Canadian Tire stores having received same-day orders.
- Following a successful pilot earlier in 2023, Express Delivery was expanded nationally across all banners in the quarter, offering same-day delivery services to customers. Take-up has been positive, with 83% of
- Revenue decreased 16.8% over the same period last year to
$4,443.0 million . Revenue (excluding Petroleum)1 decreased 17.8%, with the decline driven by the Retail segment, partly attributable to the timing and magnitude of the MSA and partially offset by revenue growth in the Financial Services segment. - Consolidated IBT was
$263.0 million , down$489.2 million compared to the fourth quarter of 2022, mainly due to lower revenue in the Retail segment, partly attributable to the timing and magnitude of the MSA contribution at CTR. - Diluted EPS was
$3.09 , compared to$9.09 in the prior year. Normalized diluted EPS was$3.38 , compared to$9.34 in the prior year mainly as a result of lower earnings. Approximately$2.26 of the variance was due to the MSA timing change. - Refer to the Company's Q4 and Full-Year 2023 Management Discussion and Analysis (MD&A) section 5.1.1 for information on normalizing items and for additional details on events that have impacted the Company in the quarter.
- Consolidated retail sales1 were
$18,504.1 million , down$744.7 million , or 3.9% over the prior year. Consolidated retail sales, excluding Petroleum, decreased 3.1% and consolidated comparable sales were down 2.9%. - Consolidated Revenue decreased 6.5% to
$16,656.5 million ; Revenue (excluding Petroleum) decreased 6.1% compared to the same period last year, with the decline in the Retail segment partially offset by Financial Services growth. - Consolidated IBT was
$572.8 million and$967.0 million on a normalized basis1, with decreases in normalized IBT primarily due to lower Retail segment earnings. - Diluted EPS was
$3.78 , compared to$17.60 in the prior year.$5.81 of the variance was attributable to the change in fair value charge related to the Scotiabank transaction announced onOctober 31, 2023 . Normalized diluted EPS was$10.37 . - Retail Return on
Invested Capital ("ROIC")1 calculated on a trailing twelve-month basis, was 7.9% at the end of the fourth quarter of 2023, compared to 12.5% at the end of the fourth quarter of 2022, due to both the decrease in earnings and the increase inAverage Retail Invested Capital over the prior period. - Refer to the Company's Q4 and Full-Year 2023 MD&A section 5.1.1 for information on normalizing items and for additional details on events that have impacted the Company in the quarter.
- Retail sales were
$5,323.4 million , down 7.1%, compared to the fourth quarter of 2022 and Retail sales (excluding Petroleum) were down 6.9%; consolidated comparable sales decreased 6.8%. - CTR retail sales1 and comparable sales were down 6.9% and 6.8%, respectively, over the same period last year.
- SportChek retail sales1 were down 6.8% over the same period last year, and comparable sales were down 6.4%.
- Mark's retail sales1 decreased 7.6% over the same period last year, and comparable sales were down 7.2%.
- Helly Hansen revenue was down 9.0%, due to shipment timing compared to the same period in 2022.
- Retail revenue was
$4,070.0 million , a decrease of$920.9 million , or 18.5%, compared to the prior year; excluding Petroleum, Retail revenue decreased 19.7%. Excluding the unfavourable impact of the MSA timing change2, Retail revenue (excluding Petroleum) was down$704.0 million , and CTR revenue was down$555.4 million , or 19.1%. - Retail gross margin was
$1,338.8 million , down 26.7% compared to the fourth quarter of 2022, or down 27.4% excluding Petroleum1; Retail Gross Margin rate (excluding Petroleum) was 36.1%, or down 88bps excluding the MSA timing change. - Retail IBT was
$161.7 million , compared to$642.4 million in the prior year; normalized IBT was$181.3 million , down$480.7 million or 72.6%, primarily due to lower Retail revenue and the MSA timing change. - Refer to the Company's Q4 and Full-Year 2023 MD&A section 5.1.1 for information on normalizing items and for additional details on events that have impacted the Company in the quarter.
- GAAR was up 4.7% relative to the prior year, with average active accounts up 1.1%, and average account balances1 up 3.5% in the quarter.
- Credit card sales1 declined 0.6%, compared to 4.0% in the same quarter in the prior year.
- Financial Services gross margin was
$181.7 million , an increase of$1.3 million , or 0.7%, compared to the prior year, mainly due to Revenue growth, partially offset by higher net impairment losses and funding costs. - Financial Services IBT was
$85.2 million , or a decrease of$1.6 million , or 1.8% compared to the prior year. - Refer to the Company's Q4 and Full-Year 2023 MD&A section 5.3.1 and 5.3.2 for additional details on events that have impacted the Company.
- CT REIT added approximately 840,000 square feet to its portfolio during 2023, of which 455,000 was added in Q4, including a new net zero certified distribution centre in
Calgary, Alberta . CTC will begin retail operations at the new facility during Q1 of2024. CT REIT's total gross leasable area was 30.8 million square feet at the end of 2023. - CT REIT announced one new investment in Q4, comprising the redevelopment of an existing enclosed mall in
Winkler, Manitoba , which will require an estimated$9.1 million to complete. - For further information, refer to the Q4
2023 CT REIT earnings release issued onFebruary 13, 2024 .
- Operating capital expenditures1 were
$615.3 million in 2023, compared to$747.6 million in 2022, due to delays in real estate projects and a slowed pace of supply chain investments, partly due to operational inefficiencies as a result of the A.J. Billes Distribution Centre fire, and decreased capitalization of IT projects. - Total capital expenditures were
$683.4 million , compared to$848.7 million in 2022. - The Company plans to fund its Better Connected strategy, sustain the business, and continue prudent capital management in 2024. The Company has slowed its capital expenditures slightly in response to the returns it expects to generate in a more challenging economic environment. Full-year operating capital expenditures in 2024 are now expected to be in the range of
$475.0 to$525.0 million , below the previously disclosed range of$550.0 to$600.0 million .
- In addition to the dividend declared in November to be paid on
March 1, 2024 , the Company declared dividends payable to holders of Class A Non-Voting Shares and Common Shares at a rate of$1.75 per share, payable onJune 1, 2024 , to shareholders of record as ofApril 30, 2024 . The dividend is considered an "eligible dividend" for tax purposes.
- On
November 9, 2023 , the Company announced its intention to repurchase up to$200 million of its Class A Non-Voting Shares (the "Shares"), in excess of the amount required for anti-dilutive purposes, during 2024 as part of its capital management plan (the "2024 Share Repurchase Intention"). To date, the Company has not repurchased any Shares in fulfillment of its 2024 Share Repurchase Intention.
- The Company announced its intention to make a normal course issuer bid to repurchase up to 4,900,000 Shares between
March 2, 2024 andMarch 1, 2025 (the "2024-25 NCIB"), representing approximately 9.8% of the 49,835,699 public float of Shares issued and outstanding as atFebruary 14, 2024 . There were 52,197,823 total Shares issued and outstanding as atFebruary 14, 2024 . - The Company intends to repurchase Shares under the 2024-25 NCIB for two purposes:
(i) to fulfill the 2024 Share Repurchase Intention; and (ii) to offset the dilutive effect of the issuance of Shares pursuant to its Dividend Reinvestment and Stock Option Plans, consistent with the Company's policy. - Repurchases of Shares pursuant to the 2024-25 NCIB will be made by means of open market transactions through the TSX and/or alternative Canadian trading systems, if eligible, at the market price of the Shares at the time of repurchase or as otherwise permitted under the rules of the TSX and applicable securities laws. Repurchases may also be made by way of private agreements or share repurchase programs under issuer bid exemption orders issued by securities regulatory authorities. Any private repurchase made under an exemption order issued by a securities regulatory authority will generally be at a discount to the prevailing market price.
- For open market transactions, the Company will be subject to a daily repurchase limit of 51,459 Shares, which represents 25% of 205,840, the average daily trading volume of the Shares on the TSX, net of repurchases made by the Company through the TSX, for the six months ended
January 31, 2024 . The Shares repurchased by the Company pursuant to the 2024-25 NCIB will be restored to the status of authorized but unissued shares. - The Company's proposed 2024-25 NCIB is subject to TSX acceptance.
- Under the Company's normal course issuer bid which began on
March 2, 2023 , and expires onMarch 1, 2024 (the "2023-24 NCIB"), the Company received approval to repurchase up to 5,100,000 Shares. To date, the Company has repurchased 1,602,730 Shares by means of open market transactions through the facilities of the TSX and alternative Canadian trading systems under the Company's 2023-24 NCIB, at the volume weighted average price of$169.54 .
- The Company announced that it will enter into an Automatic Securities Purchase Plan (the "ASPP") with a designated broker to facilitate repurchases of Shares under its 2024-25 NCIB at times when the Company would ordinarily not be permitted to repurchase its securities due to regulatory restrictions and customary self-imposed black-out periods. Repurchases made pursuant to the ASPP will be made by the Company's designated broker based upon the parameters prescribed by the TSX, applicable Canadian securities laws and the terms of the written agreement between the Company and its designated broker. The ASPP will commence on
March 2, 2024 and terminate on the earliest of the date on which: (i) the repurchase limit under the 2024-25 NCIB has been reached; (ii) the 2024-25 NCIB expires; and (iii) the Company terminates the ASPP in accordance with its terms. The ASPP constitutes an "automatic securities purchase plan" under applicable Canadian securities laws. The Company's proposed ASPP is subject to TSX acceptance.
This press release contains supplementary financial measures. References below to the Q4 and Full-Year 2023 MD&A mean the Company's Management's Discussion and Analysis for the Fourth Quarter and Full Year, which is available on SEDAR+ at http://www.sedarplus.ca and is incorporated by reference herein. Non-GAAP measures and non-GAAP ratios have no standardized meanings under GAAP and may not be comparable to similar measures of other companies.
Normalized diluted EPS, a non-GAAP ratio, is calculated by dividing Normalized Net Income Attributable to Shareholders, a non-GAAP financial measure, by total diluted shares of the Company. For information about these measures, see section 10.1 of the Company's Q4 and Full-Year 2023 MD&A.
The following table is a reconciliation of normalized net income attributable to shareholders of the Company to the respective GAAP measures:
(C$ in millions, except per share amounts) | Q4 2023 | Q4 2022 | 2023 | 2022 |
Net income | $ 197.2 | $ 562.6 | $ 339.1 | $ 1,182.8 |
Net income attributable to shareholders | 172.5 | 531.9 | 213.3 | 1,044.1 |
Add normalizing items: | ||||
Targeted headcount reduction charge | $ 15.9 | $ — | $ 15.9 | $ — |
DC fire | — | — | 8.4 | — |
GST/HST-related charge1 | — | — | 24.7 | — |
Change in fair value of redeemable financial instrument | — | — | 328.0 | — |
Operational Efficiency program | — | 14.4 | — | 34.7 |
Helly Hansen Russia exit | — | — | — | 33.4 |
Normalized net income | $ 213.1 | $ 577.0 | $ 716.1 | $ 1,250.9 |
Normalized net income attributable to shareholders1 |
$ 188.4 |
$ 546.3 |
$ 585.3 |
$ 1,112.2 |
Normalized diluted EPS | $ 3.38 | $ 9.34 | $ 10.37 | $ 18.75 |
1 |
Consolidated Normalized Income Before Income Taxes and Retail Normalized Income before Income Taxes are non-GAAP financial measures. For information about these measures, see section 10.1 of the Company's Q4 2023 MD&A.
The following table reconciles Consolidated Normalized Income Before Income Taxes to Income Before Income Taxes:
(C$ in millions) | Q4 2023 | Q4 2022 | 2023 | 2022 |
Income before income taxes | $ 263.0 | $ 752.2 | $ 572.8 | $ 1,583.8 |
Add normalizing items: | ||||
Targeted headcount reduction charge | 21.6 | — | 21.6 | — |
DC fire | — | — | 11.3 | — |
GST/HST-related charge | — | — | 33.3 | — |
Change in fair value of redeemable financial instrument | — | — | 328.0 | — |
Operational Efficiency program | — | 19.6 | — | 47.2 |
Helly Hansen Russia exit | — | — | — | 36.5 |
Normalized Income before income taxes | $ 284.6 | $ 771.8 | $ 967.0 | $ 1,667.5 |
Retail Normalized Income before income taxes is used as an additional measure to assess the Company's underlying operating performance and assists in making decisions regarding the ongoing operations of its business.
The following table reconciles Retail Normalized Income before income taxes to Income before income taxes which is a GAAP measure reported in the consolidated financial statements:
(C$ in millions) | Q4 2023 | Q4 2022 | 2023 | 2022 |
Income before income taxes | $ 263.0 | $ 752.2 | $ 572.8 | $ 1,583.8 |
Less: Other operating segments | 101.3 | 109.8 | 165.8 | 535.8 |
Retail Income before income taxes | $ 161.7 | $ 642.4 | $ 407.0 | $ 1,048.0 |
Add normalizing items: | ||||
Targeted headcount reduction charge | 19.6 | — | 19.6 | — |
DC fire | — | — | 11.3 | — |
Operational Efficiency program | — | 19.6 | — | 47.2 |
Helly Hansen Russia exit | — | — | — | 36.5 |
Retail Normalized Income before income taxes | $ 181.3 | $ 662.0 | $ 437.9 | $ 1,131.7 |
Financial Services Normalized Income before income taxes is used as an additional measure to assess the Company's underlying operating performance and assists in making decisions regarding the ongoing operations of its business.
The following table reconciles Financial Services Normalized Income before income taxes to Income before income taxes which is a GAAP measure reported in the consolidated financial statements:
(C$ in millions) | Q4 2023 | Q4 2022 | 2023 | 2022 |
Income before income taxes | $ 263.0 | $ 752.2 | $ 572.8 | $ 1,583.8 |
Less: Other operating segments | 177.8 | 665.4 | 187.8 | 1,142.2 |
Financial Services Income before income taxes | $ 85.2 | $ 86.8 | $ 385.0 | $ 441.6 |
Add normalizing items: | ||||
Targeted headcount reduction charge | 2.0 | — | 2.0 | — |
GST/HST-related charge | — | — | 33.3 | — |
Financial Services Normalized Income before income taxes | $ 87.2 | $ 86.8 | $ 420.3 | $ 441.6 |
Retail Return on
(C$ in millions, except where noted) | 2023 | 2022 |
Income before income taxes | $ 572.8 | $ 1,583.8 |
Less: Other operating segments | 165.8 | 535.8 |
Retail Income before income taxes | $ 407.0 | $ 1,048.0 |
Add normalizing items: | ||
Operational Efficiency program | — | 47.2 |
Helly Hansen Russia exit | — | 36.5 |
Targeted headcount reduction-related charge | 19.6 | — |
DC fire | 11.3 | — |
Retail Normalized Income before income taxes | $ 437.9 | $ 1,131.7 |
Less: | ||
Retail intercompany adjustments1 | 213.2 | 207.1 |
Add: | ||
Retail interest expense2 | 323.5 | 246.7 |
Retail depreciation of right-of-use assets | 622.7 | 589.4 |
Retail effective tax rate | 28.4 % | 25.9 % |
Add: Retail taxes | (332.2) | (456.4) |
Retail return | $ 838.7 | $ 1,304.3 |
Average total assets | $ 22,173.6 | $ 21,734.5 |
Less: Average assets in other operating segments | 4,421.3 | 4,413.5 |
Average Retail assets | $ 17,752.3 | $ 17,321.0 |
Less: | ||
Average Retail intercompany adjustments1 | 3,722.2 | 3,534.8 |
Average Retail trade payables and accrued liabilities3 | 2,841.2 | 2,924.5 |
Average Franchise Trust assets | 517.0 | 458.0 |
Average Retail excess cash | — | — |
Average Retail invested capital | $ 10,671.9 | $ 10,403.7 |
Retail ROIC | 7.9 % | 12.5 % |
1 | Intercompany adjustments include intercompany income received from CT REIT which is included in the Retail segment, and intercompany investments made by the Retail segment in CT REIT and CTFS. |
2 | Excludes Franchise Trust. |
3 | Trade payables and accrued liabilities include Trade and other payables, Short-term derivative liabilities, Short-term provisions and Income tax payables. |
Operating capital expenditures is used to assess the resources used to maintain capital assets at their productive capacity. Operating capital expenditures is most directly comparable to the Total additions, a GAAP measure reported in the consolidated financial statements.
(C$ in millions) | 2023 | 2022 |
Total additions1,2 | $ 668.6 | $ 735.1 |
Add: Accrued additions | 14.8 | 113.6 |
Less: CT REIT acquisitions and developments excluding vend-ins from CTC | 68.1 | 101.1 |
Operating capital expenditures | $ 615.3 | $ 747.6 |
1 | This line appears on the Consolidated Statement of Cash Flows under Investing activities. |
2 | Certain prior year figures have been restated to conform to the current year presentation. |
The measures below are supplementary financial measures. See Section 10.2 (Supplementary Financial Measures) of the Company's Q4 and Full-Year 2023 MD&A for information on the composition of these measures.
- Consolidated retail sales
- Consolidated comparable sales
- Revenue (excluding Petroleum)
- Retail revenue (excluding Petroleum)
- Retail sales and retail sales (excluding Petroleum)
- Canadian Tire Retail comparable and retail sales
- SportChek comparable and retail sales
- Mark's comparable and retail sales
- Retail gross margin (excluding Petroleum)
- Retail gross margin rate (excluding Petroleum)
- Gross Average Accounts Receivables
- Loyalty sales
- Owned Brands sales penetration
- Retail gross margin rate
- Consolidated retail sales excluding Petroleum
- Average account balance
- Credit card sales
The Company's contract with its Dealers governs how margin and expenses are shared between the two groups.
Beginning in the first quarter of 2023, the Company implemented a change to accounting estimates associated with one component of the contract, the Margin Sharing Arrangement with the Dealers. The Company already records a portion of its margin relating to revenue and margin on shipments to its Dealers in the quarter incurred, but the majority of the MSA has historically been accrued in the fourth quarter of every year.
Effective with the first quarter of 2023, the Company began to record the MSA throughout the year to better reflect the pattern over which the MSA is earned. This change simply reflects a change in the timing of this revenue and will result in less quarterly fluctuation in Retail segment gross margin and income before income taxes throughout the year.
In the fourth quarter of 2023, the unfavourable impact to Revenue in the Retail segment due to the change in accounting estimate relating to the Company's MSA with its Dealers was
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This press release contains information that may constitute forward-looking information within the meaning of applicable securities laws. Forward-looking information provides insights regarding Management's current expectations and plans and allows investors and others to better understand the Company's anticipated financial position, results of operations and operating environment. Readers are cautioned that such information may not be appropriate for other purposes. Although the Company believes that the forward-looking information in this press release is based on information, assumptions and beliefs that are current, reasonable, and complete, such information is necessarily subject to a number of business, economic, competitive and other risk factors that could cause actual results to differ materially from Management's expectations and plans as set forth in such forward-looking information. The Company cannot provide assurance that any financial or operational performance, plans, or aspirations forecast will actually be achieved or, if achieved, will result in an increase in the Company's share price. For information on the material risk factors and uncertainties and the material factors and assumptions applied in preparing the forward-looking information that could cause the Company's actual results to differ materially from predictions, forecasts, projections, expectations or conclusions, refer to section 14.0 (
Canadian Tire will conduct a conference call to discuss information included in this news release and related matters at
FOR MORE INFORMATION
Media: Stephanie Nadalin, (647) 271-7343, stephanie.nadalin@cantire.com
Investors: Karen Keyes, (647) 518-4461, karen.keyes@cantire.com
As at (C$ in millions) |
|
|
ASSETS | ||
Cash and cash equivalents | $ 311.2 | $ 331.3 |
Short-term investments | 177.2 | 176.3 |
Trade and other receivables | 1,151.3 | 1,309.9 |
Loans receivable | 6,568.3 | 6,271.1 |
Merchandise inventories | 2,693.7 | 3,216.1 |
Income taxes recoverable | 125.9 | 27.4 |
Prepaid expenses and deposits | 246.6 | 195.7 |
Assets classified as held for sale | 18.9 | 2.6 |
Total current assets | 11,293.1 | 11,530.4 |
Long-term receivables and other assets | 645.8 | 676.7 |
Long-term investments | 108.2 | 62.6 |
Goodwill and intangible assets | 2,254.7 | 2,341.6 |
Investment property | 443.7 | 421.5 |
Property and equipment | 5,219.5 | 4,994.1 |
Right-of-use assets | 1,933.8 | 1,932.0 |
Deferred income taxes | 79.5 | 143.4 |
Total assets | $ 21,978.3 | $ 22,102.3 |
LIABILITIES | ||
Bank indebtedness | $ — | $ 5.0 |
Deposits | 1,041.7 | 1,226.3 |
Trade and other payables | 2,689.4 | 3,200.9 |
Provisions | 219.9 | 197.2 |
Short-term borrowings | 965.7 | 576.2 |
Loans | 519.9 | 472.9 |
Current portion of lease liabilities | 378.5 | 381.2 |
Income taxes payable | 13.4 | 47.1 |
Current portion of long-term debt | 560.5 | 1,040.2 |
Total current liabilities | 6,389.0 | 7,147.0 |
Long-term provisions | 59.8 | 66.1 |
Long-term debt | 4,404.0 | 3,217.5 |
Long-term deposits | 2,322.6 | 1,739.4 |
Long-term lease liabilities | 1,986.0 | 2,026.4 |
Deferred income taxes | 182.1 | 132.1 |
Other long-term liabilities | 190.0 | 734.6 |
Total liabilities | 15,533.5 | 15,063.1 |
EQUITY | ||
Share capital | 598.7 | 587.8 |
Contributed surplus | 2.9 | 2.9 |
Accumulated other comprehensive (loss) | (181.8) | (42.4) |
Retained earnings | 5,128.2 | 5,070.2 |
Equity attributable to shareholders of Canadian Tire Corporation | 5,548.0 | 5,618.5 |
Non-controllinginterests | 896.8 | 1,420.7 |
Total equity | 6,444.8 | 7,039.2 |
Total liabilities and equity | $ 21,978.3 | $ 22,102.3 |
For the | 13 weeks ended | 52 weeks ended | ||
(C$ in millions, except per share amounts) | 2023 | 2022 | 2023 | 2022 |
Revenue Cost of producing revenue | $ 4,443.0 2,906.2 | $ 5,340.4 3,322.0 | $ 16,656.5 10,952.9 | $ 17,810.6 11,712.7 |
Gross margin Other expense (income) Selling, general and administrative expenses1 Depreciation and amortization1 Net finance costs (income) Change in fair value of redeemable financial instrument | 1,536.8 3.2 983.5 196.3 90.8 — | 2,018.4 0.2 1,012.0 188.1 65.9 — | 5,703.6 34.4 3,675.7 771.2 321.5 328.0 | 6,097.9 61.6 3,502.5 719.0 231.0 — |
Income before income taxes Income tax expense (recovery) | 263.0 65.8 | 752.2 189.6 | 572.8 233.7 | 1,583.8 401.0 |
Net income | $ 197.2 | $ 562.6 | $ 339.1 | $ 1,182.8 |
Net income attributable to: Shareholders of Canadian Tire Corporation Non-controlling interests |
$ 172.5 24.7 |
$ 531.9 30.7 |
$ 213.3 125.8 |
$ 1,044.1 138.7 |
$ 197.2 | $ 562.6 | $ 339.1 | $ 1,182.8 | |
Basic earnings per share | $ 3.10 | $ 9.13 | $ 3.79 | $ 17.70 |
Diluted earnings per share | $ 3.09 | $ 9.09 | $ 3.78 | $ 17.60 |
Weighted average number of Common and Class A Non-Voting Shares outstanding: Basic Diluted |
55,623,542 55,761,553 |
58,237,893 58,499,745 |
56,228,680 56,457,450 |
58,983,364 59,336,919 |
1 | Certain prior-year figures have been restated to conform to the current-year presentation. |
For the | 13 weeks ended | 52 weeks ended | ||
(C$ in millions) | 2023 | 2022 | 2023 | 2022 |
Net income | $ 197.2 | $ 562.6 | $ 339.1 | $ 1,182.8 |
Other comprehensive income (loss), net of taxes | ||||
Items that may be reclassified subsequently to Net income (loss): | ||||
Net fair value gains (losses) on hedging instruments entered into for cash flow hedges not subject to basis adjustment | (57.6) | (8.2) | (38.4) | 77.1 |
Deferred cost of hedging not subject to basis adjustment – Changes in fair value of the time value of an option in relation to time-period related hedged items
| 10.4 | (8.6) | 38.5 | 4.1 |
Reclassification of losses (gains) to income | (0.6) | — | 0.8 | 5.7 |
Currency translation adjustment | 21.9 | 71.4 | (51.1) | (26.0) |
Item that will not be reclassified subsequently to Net income (loss): | ||||
Actuarial (losses) gains | (6.4) | 41.3 | (6.4) | 41.3 |
Net fair value (losses) gain on hedging instruments entered into for cash flow hedges subject to basis adjustment | (45.1) | (39.6) | (7.2) | 165.8 |
Other comprehensive income (loss) | (77.4) | 56.3 | (63.8) | 268.0 |
Other comprehensive income (loss) attributable to: Shareholders of Non-controllinginterests |
$ (77.9) 0.5 |
$ 58.3 (2.0) |
$ (74.0) 10.2 |
$ 249.2 18.8 |
$ (77.4) | $ 56.3 | $ (63.8) | $ 268.0 | |
Comprehensive income | $ 119.8 | $ 618.9 | $ 275.3 | $ 1,450.8 |
Comprehensive income attributable to: Shareholders of Canadian Tire Corporation Non-controlling interests |
$ 94.6 25.2 |
$ 590.2 28.7 |
$ 139.3 136.0 |
$ 1,293.3 157.5 |
$ 119.8 | $ 618.9 | $ 275.3 | $ 1,450.8 | |
For the | 13 weeks ended | 52 weeks ended | ||
(C$ in millions) | 2023 | 2022 | 2023 | 2022 |
Cash (used for) generated from:
Operating activities Net income Adjustments for: Depreciation of property and equipment, investment property and right-of-use assets Impairment on property and equipment, investment property and right-of-use assets Income taxes Net finance costs Amortizationofintangibleassets (Gain) loss on disposal of property and equipment, investment property, assets held for sale and right-of-use assets Change in fair value of redeemable financial instrument Non-cash loss on exit of Helly Hansen operations in Russia Non-cash charge related to fire at A.J. Billes Distribution Centre Totalexceptasnotedbelow Interest paid Interest received Income taxes paid Change in loans receivable Change in operating working capital and other1 |
$ 197.2 |
$ 562.6 |
$ 339.1 |
$ 1,182.8 |
170.6 |
162.2 |
675.2 |
621.0 | |
4.2 | 3.1 | 6.3 | 3.1 | |
65.8 | 189.6 | 233.7 | 401.0 | |
90.8 | 65.9 | 321.5 | 231.0 | |
32.6 | 32.1 | 127.0 | 122.5 | |
(1.2) | (13.7) | (2.7) | (22.1) | |
— | — | 328.0 | — | |
— | — | — | 20.8 | |
(1.6) | — | 53.2 | — | |
558.4 | 1,001.8 | 2,081.3 | 2,560.1 | |
(64.0) | (67.2) | (366.1) | (254.6) | |
9.8 | 6.1 | 38.8 | 21.3 | |
(38.0) | (80.2) | (210.5) | (529.3) | |
(189.4) | (196.0) | (289.3) | (657.1) | |
593.1 | 246.7 | 99.5 | (673.9) | |
Cash generated from operating activities | 869.9 | 911.2 | 1,353.7 | 466.5 |
Investing activities Additions to property and equipment and investment property1 Additions to intangible assets Total additions Acquisition of short-term investments Proceeds from the maturity and disposition of short-term investments Proceeds on disposition of property and equipment, investment property and assets held for sale Lease payments received for finance subleases (principal portion) Acquisition of long-term investments and other Change in Franchise Trust loans receivable |
(258.0) |
(161.7) |
(580.9) |
(612.5) |
(14.0) | (34.1) | (87.7) | (122.6) | |
(272.0) | (195.8) | (668.6) | (735.1) | |
(89.9) | (32.2) | (210.9) | (166.9) | |
97.0 | 63.5 | 269.9 | 713.1 | |
0.1 | (0.5) | 0.1 | 5.2 | |
4.5 | 3.7 | 19.8 | 16.3 | |
(103.9) | — | (110.9) | (17.4) | |
11.2 | (21.0) | (47.2) | (45.6) | |
Cash used for investing activities | (353.0) | (182.3) | (747.8) | (230.4) |
Financing activities | ||||
Dividendspaid | (88.7) | (89.4) | (360.8) | (325.8) |
Distributionspaidtonon-controllinginterests | (38.6) | (41.8) | (142.1) | (143.0) |
Net issuance of short-term borrowings | (286.0) | (263.9) | 389.6 | 468.0 |
Issuance of loans | 31.9 | 55.4 | 270.5 | 267.8 |
Repayment of loans | (43.2) | (34.4) | (223.3) | (222.2) |
Issuance of long-term debt | 650.0 | — | 1,750.0 | 700.0 |
Repayment of long-term debt | (0.1) | (0.1) | (1,040.1) | (720.1) |
Payment of lease liabilities (principal portion) | (93.0) | (86.9) | (425.2) | (357.2) |
Payment of transaction costs relating to long-term debt | (1.8) | (0.6) | (6.0) | (3.7) |
PurchaseofClassANon-VotingShares | (7.6) | (127.6) | (376.1) | (425.4) |
Repurchase of Scotiabank's 20 percent interest in CTFS Holdings | ||||
Limited | (904.5) | — | (904.5) | — |
Net receipts (payments) on financial instruments | 3.5 | 2.4 | 53.5 | 32.6 |
Change in deposits | 113.5 | (118.6) | 393.5 | (932.5) |
Cash used for financing activities | (664.6) | (705.5) | (621.0) | (1,661.5) |
Cash generated (used) in the period | (147.7) | 23.4 | (15.1) | (1,425.4) |
Cash and cash equivalents, net of bank indebtedness, beginning | ||||
of period | 458.9 | 302.9 | 326.3 | 1,751.7 |
Cash and cash equivalents, net of bank indebtedness, end of period |
$ 311.2 |
$ 326.3 |
$ 311.2 |
$ 326.3 |
1 | Certain prior year figures have been restated to conform to the current year presentation. |
SOURCE
© Canada Newswire, source
