- 32.4% increase in diluted net earnings per share to
$0.49 - 20.9% increase in EBITDA(1) to
$300.0 million - Sales growth of 12.4% and comparable store sales(1) growth of 7.3%
- Publication of Climate Strategy and 2022 ESG Update, including first-generation intensity reduction target for Scope 1 and Scope 2 GHG emissions
- Sales increased by 12.4% to
$1,072.9 million - Comparable store sales(1) grew 7.3%
- EBITDA(1) increased by 20.9% to
$300.0 million , or 28.0% of sales, compared to 26.0% of sales - Operating income increased by 24.4% to
$220.0 million , or 20.5% of sales, compared to 18.5% of sales - Diluted net earnings per share increased by 32.4% to
$0.49 , compared to$0.37 - 10 net new stores opened, compared to 12 net new stores
- 1,444,803 common shares repurchased for cancellation for
$107.3 million
"With the lifting of COVID-19 restrictions across
"I am also pleased with our continued progress over the last year on the ESG front, including the publication of our climate strategy and roadmap. We approach our sustainability commitments as a journey on which we must continuously set the bar higher. We also believe in setting measurable and achievable goals, that consider our business and operations, the unique role we play in the lives of Canadian consumers, and the expectations of our stakeholders," concluded
All comparative figures that follow are for the first quarter ended
(1) | We refer the reader to the notes in the section entitled "Selected Consolidated Financial Information" of this press release for the definition of these items and, when applicable, their reconciliation with the most directly comparable GAAP measure. |
Sales for the first quarter of Fiscal 2023 increased by 12.4% to
Comparable store sales for the first quarter of Fiscal 2023 increased by 7.3%, over and above 5.8% growth in the first quarter of Fiscal 2022 and consisted of a 14.4% increase in the number of transactions and a 6.2% decrease in average transaction size, reflecting a reversal in consumer shopping patterns compared to the prior year comparable period. The increase in comparable store sales is attributable to good seasonal performance and higher sales of consumables resulting in increased customer traffic across the store network year over year, whereas the same quarter last year was marked by a ban, effective
EBITDA totalled
Gross margin was 42.1% of sales in the first quarter of Fiscal 2023, compared to 42.3% of sales in the first quarter of Fiscal 2022. Gross margin was slightly lower this quarter due to a change in the sales mix, with stronger sales of consumables, partially offset by lower logistic costs.
General, administrative and store operating expenses ("SG&A") for the first quarter of Fiscal 2023 increased by only 1.2% to
The Corporation's 50.1% share of Dollarcity's net earnings for the period from
Financing costs increased by
Net earnings were
During its first quarter ended
During the first quarter of Fiscal 2023, 1,444,803 common shares were repurchased for cancellation under the Corporation's normal course issuer bid, for a total cash consideration of
On
As part of its sustainability commitments,
In addition,
Intended for all stakeholders and to be read in conjunction with regulatory filings,
Certain statements in this press release about our current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements or any other future events or developments constitute forward-looking statements. The words "may", "will", "would", "should", "could", "expects", "plans", "intends", "trends", "indications", "anticipates", "believes", "estimates", "predicts", "likely" or "potential" or the negative or other variations of these words or other comparable words or phrases, are intended to identify forward-looking statements.
Forward-looking statements are based on information currently available to management and on estimates and assumptions made by management regarding, among other things, general economic and geopolitical conditions and the competitive environment within the retail industry in
These factors are not intended to represent a complete list of the factors that could affect the Corporation or Dollarcity; however, they should be considered carefully. The purpose of the forward-looking statements is to provide the reader with a description of management's expectations regarding the Corporation's and Dollarcity's financial performance and may not be appropriate for other purposes. Readers should not place undue reliance on forward-looking statements made herein. Furthermore, unless otherwise stated, the forward-looking statements contained in this press release are made as at
Both live audio webcasts are accessible through
13-Week Periods Ended | |||||||||
(dollars and shares in thousands, except per share amounts) |
|
| |||||||
$ | $ | ||||||||
Earnings Data | |||||||||
Sales | 1,072,884 | 954,246 | |||||||
Cost of sales | 620,992 | 550,806 | |||||||
Gross profit | 451,892 | 403,440 | |||||||
SG&A | 160,625 | 158,672 | |||||||
Depreciation and amortization | 79,972 | 71,402 | |||||||
Share of net earnings of equity-accounted investment | (8,737) | (3,403) | |||||||
Operating income | 220,032 | 176,769 | |||||||
Financing costs | 24,355 | 22,146 | |||||||
Earnings before income taxes | 195,677 | 154,623 | |||||||
Income taxes | 50,175 | 41,049 | |||||||
Net earnings | 145,502 | 113,574 | |||||||
Basic net earnings per common share | |||||||||
Diluted net earnings per common share | |||||||||
Weighted average number of common shares outstanding: | |||||||||
Basic | 292,721 | 309,400 | |||||||
Diluted | 294,477 | 310,742 | |||||||
Other Data | |||||||||
Year-over-year sales growth | 12.4% | 13.0% | |||||||
Comparable store sales growth (1) | 7.3% | 5.8% | |||||||
Gross margin (1) | 42.1% | 42.3% | |||||||
SG&A as a % of sales (1) | 15.0% | 16.6% | |||||||
EBITDA (1) | 300,004 | 248,171 | |||||||
Operating margin (1) | 20.5% | 18.5% | |||||||
Capital expenditures | 31,343 | 30,370 | |||||||
Number of stores (2) | 1,431 | 1,368 | |||||||
Average store size (gross square feet) (2) | 10,391 | 10,336 | |||||||
Declared dividends per common share |
As at | ||||
2022 |
| |||
$ | $ | |||
Statement of Financial Position Data | ||||
Cash | 71,574 | 71,058 | ||
Inventories | 646,713 | 590,927 | ||
Total current assets | 786,760 | 717,367 | ||
Property, plant and equipment | 766,175 | 761,876 | ||
Right-of-use assets | 1,523,226 | 1,480,255 | ||
Total assets | 4,194,279 | 4,063,562 | ||
Total current liabilities | 978,900 | 911,891 | ||
Total non-current liabilities | 3,232,508 | 3,217,705 | ||
Total debt (1) | 1,947,418 | 1,894,309 | ||
Net debt (1) | 1,875,844 | 1,823,251 | ||
Shareholders' deficit | (17,129) | (66,034) | ||
(1) | Refer to the section below entitled "Non-GAAP and Other Financial Measures" for the definition of these items and, when applicable, their reconciliation with the most directly comparable GAAP measure. |
(2) | At the end of the period. |
The Corporation prepares its financial information in accordance with GAAP. We have included non-GAAP and other financial measures to provide investors with supplemental measures of our operating and financial performance. We believe that those measures are important supplemental metrics of operating and financial performance because they eliminate items that have less bearing on our operating and financial performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on GAAP measures. We also believe that securities analysts, investors and other interested parties frequently use non-GAAP and other financial measures in the evaluation of issuers. Our management also uses non-GAAP and other financial measures in order to facilitate operating and financial performance comparisons from period to period, to prepare annual budgets, and to assess our ability to meet our future debt service, capital expenditure and working capital requirements.
The below-described non-GAAP and other financial measures do not have a standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other issuers and should be considered as a supplement to, not a substitute for, or superior to, the comparable measures calculated in accordance with GAAP.
EBITDA
EBITDA represents operating income plus depreciation and amortization and includes the Corporation's share of net earnings of its equity-accounted investment.
(dollars in thousands) | 13-Week Periods Ended | |||||||
2022 | 2021 | |||||||
$ | $ | |||||||
A reconciliation of operating income to EBITDA is included below: | ||||||||
Operating income | 220,032 | 176,769 | ||||||
Add: Depreciation and amortization | 79,972 | 71,402 | ||||||
EBITDA | 300,004 | 248,171 | ||||||
Total debt
Total debt represents the sum of long-term debt (including accrued interest and fair value hedge – basis adjustment), short-term borrowings under the US commercial paper program and other bank indebtedness (if any).
(dollars in thousands) | As at | |||||
A reconciliation of long-term debt to total debt is included below: | 2022 |
| ||||
Senior unsecured notes bearing interest at: | $ | $ | ||||
Fixed annual rate of 2.443% payable in equal semi-annual instalments, maturing July 9, 2029 | 375,000 | 375,000 | ||||
Fixed annual rate of 1.505% payable in equal semi-annual instalments, maturing | 300,000 | 300,000 | ||||
Fixed annual rate of 1.871% payable in equal semi-annual instalments, maturing | 375,000 | 375,000 | ||||
Fixed annual rate of 3.55% payable in equal semi-annual instalments, maturing | 500,000 | 500,000 | ||||
Fixed annual rate of 2.203% payable in equal semi-annual instalments, maturing | 250,000 | 250,000 | ||||
Accrued interest on Fixed Rate Notes | 16,506 | 7,850 | ||||
Fair value hedge - basis adjustment on interest rate swap | (6,475) | (2,927) | ||||
Total long-term debt | 1,810,031 | 1,804,923 | ||||
USCP Notes issued under US commercial paper program | 137,387 | 89,386 | ||||
Total debt | 1,947,418 | 1,894,309 |
Net debt
Net debt represents total debt minus cash.
(dollars in thousands) | As at | |||
|
| |||
$ | $ | |||
A reconciliation of total debt to net debt is included below: | ||||
Total debt | 1,947,418 | 1,894,309 | ||
Cash | (71,574) | (71,058) | ||
Net debt | 1,875,844 | 1,823,251 |
Adjusted net debt to EBITDA ratio
Adjusted net debt to EBITDA ratio is a ratio calculated using adjusted net debt over consolidated EBITDA for the last twelve months.
(dollars in thousands) | As at | |||
|
| |||
$ | $ | |||
A calculation of adjusted net debt to EBITDA ratio is included below: | ||||
Net debt | 1,875,844 | 1,823,251 | ||
Lease liabilities | 1,771,448 | 1,727,428 | ||
Fair value hedge - basis adjustment on interest rate swap | 6,475 | 2,927 | ||
Adjusted net debt | 3,653,767 | 3,553,606 | ||
EBITDA for the last twelve-month period | 1,334,410 | 1,282,577 | ||
Adjusted net debt to EBITDA ratio | 2.74x | 2.77x | ||
EBITDA margin
EBITDA margin represents EBITDA divided by sales.
(dollars in thousands) | 13-Week Periods Ended | |||
2022 | 2021 | |||
$ | $ | |||
A reconciliation of EBITDA to EBITDA margin is included below: | ||||
EBITDA | 300,004 | 248,171 | ||
Sales | 1,072,884 | 954,246 | ||
EBITDA margin | 28.0% | 26.0% |
Gross margin | Represents gross profit divided by sales. |
Operating margin | Represents operating income divided by sales. |
SG&A as a % of sales | Represents SG&A divided by sales. |
Comparable store sales | Represent sales of |
Comparable store sales growth | Represents the percentage increase or decrease, as applicable, of comparable store sales relative to the same period in the prior fiscal year. For the first quarter of Fiscal 2022, the calculation of comparable store sales growth excludes stores that were temporarily closed, either in Fiscal 2022 or in the same period in the prior fiscal year, in the context of the COVID-19 pandemic. |
Incremental direct costs related to COVID-19 | Represents costs incurred for the implementation and execution of health and safety measures in stores and in logistic operations in response to the pandemic, including costs associated with additional labor hours for the execution of sanitization and crowd control protocols and with the procurement of personal protection equipment for employees and cleaning supplies and equipment. |
View original content:https://www.prnewswire.com/news-releases/dollarama-reports-fiscal-2023-first-quarter-results-301563558.html
SOURCE
© Canada Newswire, source