GWL's 2019 Third Quarter Report to Shareholders has been filed on SEDAR and is available at sedar.com and in the Investor Centre section of the Company's website at weston.ca.
2019 THIRD QUARTER HIGHLIGHTS
Net earnings available to common shareholders of the Company were
- the unfavourable year-over-year impact of the fair value adjustment of the Trust Unit liability of
$193 million ; - the unfavourable year-over-year impact of the fair value adjustment of the forward sale agreement for 9.6 million Loblaw Companies Limited ("Loblaw") common shares of
$63 million ; and - the favourable year-over-year impact of a prior year charge related to
Glenhuron Bank Limited ("Glenhuron") at Loblaw of$184 million .
Adjusted net earnings available to common shareholders of the Company(1) were
CONSOLIDATED RESULTS OF OPERATIONS
Unless otherwise indicated, the Company's results include:
- the impact of the implementation of IFRS 16 "Leases" ("IFRS 16"), as set out in the "Consolidated Other Business Matters" section below;
- the impact of the acquisition of
Canadian Real Estate Investment Trust ("CREIT") byChoice Properties in the second quarter of 2018; - the year-over-year impact of the fair value adjustment of the Trust Unit liability as a result of the significant changes in
Choice Properties' unit price, recorded in net interest expense and other financing charges. The Company's results are impacted by market price fluctuations ofChoice Properties' Trust Units on the basis that the Trust Units held by unitholders, other than the Company, are redeemable for cash at the option of the holder. The Company's financial results are negatively impacted when the Trust Unit price rises and positively impacted when the Trust Unit price declines; and - the dilutive impact on both the Company's diluted net earnings per common share and adjusted diluted net earnings per common share(1) as a result of the issuance of approximately 26.6 million common shares in connection with a reorganization in
November 2018 , as set out in the "Consolidated Other Business Matters" section below.
(unaudited) | ||||||||||||||||
($ millions except where otherwise indicated) | 16 Weeks Ended | 40 Weeks Ended | ||||||||||||||
For the periods ended as indicated | Change | Change | ||||||||||||||
Sales | $ | 15,226 | $ | 14,862 | 2.4% | $ | 38,002 | $ | 36,851 | 3.1% | ||||||
Operating income | $ | 884 | $ | 804 | 10.0% | $ | 2,240 | $ | 1,895 | 18.2% | ||||||
Adjusted EBITDA(1) | 1,661 | 1,391 | 19.4% | 4,132 | 3,382 | 22.2% | ||||||||||
Adjusted EBITDA margin(1) | 10.9% | 9.4% | 10.9% | 9.2% | ||||||||||||
Net earnings (loss) attributable to shareholders | ||||||||||||||||
of the Company | $ | 83 | $ | 65 | 27.7% | $ | (201) | $ | 293 | (168.6)% | ||||||
Net earnings (loss) available to common shareholders | ||||||||||||||||
of the Company | 69 | 51 | 35.3% | (235) | 259 | (190.7)% | ||||||||||
Adjusted net earnings available to common | ||||||||||||||||
shareholders of the Company(1) | 391 | 288 | 35.8% | 855 | 676 | 26.5% | ||||||||||
Diluted net earnings (loss) per common share ($) | $ | 0.44 | $ | 0.40 | 10.0% | $ | (1.55) | $ | 2.01 | (177.1)% | ||||||
Adjusted diluted net earnings per common | ||||||||||||||||
share(1)($) | $ | 2.54 | $ | 2.25 | 12.9% | $ | 5.54 | $ | 5.26 | 5.3% | ||||||
In the third quarter of 2019, the Company recorded net earnings available to common shareholders of the Company of $69 million, an increase of $18 million, or 35.3%, compared to the same period in 2018. The increase was mainly attributable to the improvement in the underlying operating performance of $103 million, partially offset by the unfavourable year-over-year net impact of adjusting items totaling $85 million described below:
- The improvement in underlying operating performance of
$103 million included the favourable impact of IFRS 16 of approximately$19 million . Normalized for this impact, the underlying operating performance improved by$84 million , primarily due to: - the positive contribution from the Company's direct ownership interest in
Choice Properties , as a result of the reorganization inNovember 2018 ; - the decrease in income tax expense primarily due to the favourable impact of
Choice Properties' portfolio transaction described in the "Consolidated Other Business Matters" section below; - the favourable underlying operating performance of Loblaw; and
- the positive contribution from the increase in the Company's ownership interest in Loblaw, as a result of Loblaw share repurchases;
partially offset by,
- the unfavourable underlying operating performance of
Weston Foods due to the prior year impact of a net gain related to the sale leaseback of a property; - an increase in adjusted net interest expense and other financing charges(1); and
- an increase in depreciation and amortization expense.
- The unfavourable year-over-year net impact of adjusting items totaling
$85 million was primarily due to: - the unfavourable year-over-year impact of the fair value adjustment of the Trust Unit liability of
$193 million as a result of the increase inChoice Properties' unit price during the third quarter of 2019; - the unfavourable year-over-year impact of the fair value adjustment of the forward sale agreement for 9.6 million Loblaw common shares of
$63 million ; and - the unfavourable year-over-year impact of the fair value adjustment of investment properties of
$19 million ;
partially offset by,
- the favourable year-over-year impact of the prior year charge related to Glenhuron at Loblaw of $184 million.
Adjusted net earnings available to common shareholders of the Company(1) were
In the third quarter of 2019, the Company recorded diluted net earnings per common share of
- the improvement in the underlying operating performance of
$0.29 per common share; - the unfavourable year-over-year net impact of adjusting items totaling
$0.25 per common share, primarily due to the following: - the unfavourable year-over-year impact of
$1.30 per common share related to the fair value adjustment of the Trust Unit liability; and - the unfavourable year-over-year impact of
$0.43 per common share resulting from the fair value adjustment of the forward sale agreement for 9.6 million Loblaw common shares;
partially offset by,
- the favourable year-over-year impact of
$1.44 per common share resulting from a prior year charge related to Glenhuron at Loblaw.
Adjusted diluted net earnings per common share(1) in the third quarter of 2019 increased by
CONSOLIDATED OTHER BUSINESS MATTERS
IFRS 16 Implementation On
Under IFRS 16, the depreciation expense on right-of-use assets and interest expense on lease liabilities replaced rent expense, which was previously recognized on a straight-line basis in operating income under IAS 17 over the term of a lease.
The following table provides the year-over-year impacts of the implementation of IFRS 16 on the consolidated results of the Company in the third quarter of 2019 and year-to-date:
16 Weeks | 40 Weeks | |||||||||||||||
(unaudited) | Loblaw | Other and | Total(i) | Weston | Loblaw | Other and | Total(i) | |||||||||
Operating income | $ | 2 | $ | 104 | $ | (27) | $ | 79 | $ | 4 | $ | 261 | $ | (108) | $ | 157 |
Adjusted EBITDA(1) | 4 | 382 | (146) | 240 | 10 | 954 | (409) | 555 | ||||||||
Net interest expense and other | ||||||||||||||||
financing charges | — | (106) | 53 | (53) | (2) | (270) | 136 | (136) | ||||||||
Depreciation and amortization | (2) | (278) | 119 | (161) | (6) | (693) | 301 | (398) | ||||||||
Net earnings available to common | ||||||||||||||||
shareholders of the Company | 1 | (1) | 19 | 19 | 1 | (4) | 20 | 17 | ||||||||
Diluted net earnings per common share ($) | 0.01 | (0.01) | 0.12 | 0.12 | 0.01 | (0.03) | 0.13 | 0.11 | ||||||||
(i) | Includes nominal year-over-year impact in the third quarter of 2019 and year-to-date from |
Loblaw's spin-out of Choice Properties Real Estate Investment Trust On
The issuance of approximately 26.6 million common shares in connection with the reorganization has a dilutive impact on both the Company's diluted net earnings per common share and adjusted diluted net earnings per common share(1).
Offering of Trust Units In the second quarter of 2019,
REPORTABLE OPERATING SEGMENTS
The Company operates through its three reportable operating segments,
The Weston Foods operating segment includes a leading North American bakery that offers packaged bread and rolls in
Loblaw has two reportable operating segments, Retail and Financial Services. Loblaw provides Canadians with grocery, pharmacy, health and beauty, apparel, general merchandise, financial services and wireless mobile products and services.
Weston Foods Segment Results
Unless otherwise indicated,
(unaudited) | |||||||||||
($ millions except where otherwise indicated) | 16 Weeks Ended | 40 Weeks Ended | |||||||||
For the periods ended as indicated | Change | Change | |||||||||
Sales | $ | 638 | $ | 630 | 1.3% | $ | 1,633 | $ | 1,615 | 1.1% | |
Operating income | $ | 23 | $ | 31 | (25.8)% | $ | 45 | $ | 62 | (27.4)% | |
Adjusted EBITDA(1) | $ | 72 | $ | 82 | (12.2)% | $ | 167 | $ | 174 | (4.0)% | |
Adjusted EBITDA margin(1) | 11.3% | 13.0% | 10.2% | 10.8% | |||||||
Depreciation and amortization(i) | $ | 44 | $ | 43 | 2.3% | $ | 111 | $ | 102 | 8.8% | |
(i) | Depreciation and amortization in the third quarter of 2019 includes |
Sales
Operating Income
- the favourable impact of restructuring and other related costs of
$3 million ; and - the favourable impact of insurance proceeds on a prior year inventory loss of
$2 million ;
partially offset by,
- the unfavourable impact of the fair value adjustment of derivatives of
$1 million .
Adjusted EBITDA(1)
Depreciation and Amortization Weston Foods depreciation and amortization in the third quarter of 2019 was $44 million, an increase of $1 million compared to the same period in 2018. Normalized for the unfavourable impact of IFRS 16 of approximately $2 million, depreciation and amortization decreased by $1 million. Depreciation and amortization in the third quarter of 2019 included $4 million (2018 – $5 million) of accelerated depreciation related to
Weston Foods Other Business Matters
Restructuring and other related costs
Loblaw Segment Results
As a result of the spin-out of
(unaudited) | |||||||||||
($ millions except where otherwise indicated) | 16 Weeks Ended | 40 Weeks Ended | |||||||||
For the periods ended as indicated | Change | Change | |||||||||
Sales | $ | 14,655 | $ | 14,319 | 2.3% | $ | 36,447 | $ | 35,475 | 2.7% | |
Operating income | $ | 688 | $ | 590 | 16.6% | $ | 1,723 | $ | 1,472 | 17.1% | |
Adjusted EBITDA(1) | $ | 1,490 | $ | 1,058 | 40.8% | $ | 3,701 | $ | 2,627 | 40.9% | |
Adjusted EBITDA margin(1) | 10.2% | 7.4% | 10.2% | 7.4% | |||||||
Depreciation and amortization(i) | $ | 775 | $ | 459 | 68.8% | $ | 1,935 | $ | 1,141 | 69.6% | |
(i) | Depreciation and amortization in the third quarter of 2019 includes |
Sales Loblaw sales in the third quarter of 2019 were
Retail sales increased by $315 million, or 2.2%, compared to the same period in 2018 and included food retail sales of
Excluding the consolidation of franchises, Retail sales increased by $226 million, or 1.6%, primarily driven by the following factors:
- food retail same-store sales growth was 0.1% for the quarter. After excluding the unfavourable impact of the timing of
Thanksgiving , food retail same-store sales growth was approximately 1.0%. Food retail basket size increased and traffic decreased in the quarter; - Loblaw's food retail average quarterly internal food price index was moderately lower than (2018 – marginally lower than) the average quarterly national food price inflation of 4.1% (2018 – inflation of 0.3%), as measured by "The Consumer Price Index for Food Purchased from Stores" ("CPI"). CPI does not necessarily reflect the effect of inflation on the specific mix of goods sold in Loblaw stores; and
- drug retail same-store sales growth was 4.1% for the quarter.
- pharmacy same-store sales growth was 5.3%; and
- front store same-store sales growth was 3.1%.
Operating Income Loblaw operating income in the third quarter of 2019 was $688 million, an increase of $98 million compared to the same period in 2018. The increase included the favourable impact of IFRS 16 of approximately
- the improvement in underlying operating performance of
$36 million was primarily due to Retail, including the favourable contribution from the consolidation of franchises of$15 million , partially offset by the decline in the underlying operating performance of Financial Services; and - the unfavourable year-over-year net impact of adjusting items totaling
$14 million which was primarily due to the following: - the year-over-year unfavourable impact of restructuring and other related costs of
$15 million ; and - the unfavorable impact of a prior year adjustment related to the Loblaw Card Program of
$4 million ;
partially offset by,
- the favourable impact of the prior year transaction and other related costs in connection with the spin-out of
Choice Properties of$6 million .
Adjusted EBITDA(1) Loblaw adjusted EBITDA(1) in the third quarter of 2019 was
Retail adjusted EBITDA(1) in the third quarter of 2019 was
- Retail gross profit percentage was 29.6%, an increase of 50 basis points compared to the same period in 2018. Excluding the consolidation of franchises, Retail gross profit percentage was 27.4%, flat compared to the third quarter of 2018. Margins were negatively impacted by drug retail, while food retail margins were stable.
- Retail SG&A increased by
$100 million compared to the third quarter of 2018. Normalized for the impact of IFRS 16 and the consolidation of franchises, Retail SG&A increased by$33 million and SG&A as a percentage of sales was 20.1%, an improvement of 10 basis points compared to the third quarter of 2018, primarily driven by Process and Efficiency initiatives.
Financial Services adjusted EBITDA(1) decreased by $3 million compared to the same quarter in 2018 primarily driven by higher operating costs including investments in digital strategy, an increase in loyalty program costs driven by the growth in credit card portfolio, partially offset by revenue growth.
In the third quarter of 2019, adjusted EBITDA(1) included a gain of $2 million (2018 – loss of $2 million) related to the sale and leaseback of properties to
Depreciation and Amortization Loblaw's depreciation and amortization was $775 million in the third quarter of 2019, an increase of $316 million, or 68.8% compared to the same period in 2018, and included the unfavourable impacts of IFRS 16 of approximately
Depreciation and amortization in the third quarter of 2019 included $157 million (2018 – $161 million) of amortization of intangible assets related to the acquisition of
Loblaw Other Business Matters
Spin-out of
Process and Efficiency Loblaw continues to execute on a multi-year plan which was initiated in 2018. The plan focuses on improving processes and generating efficiencies across administrative, store, and distribution network infrastructure. Many initiatives are underway to reduce the complexity and costs associated with business operations with the aim to achieve a low cost operating structure that allows for continued investments in Loblaw's strategic growth areas. Expenses related to these initiatives will be incurred in 2019 and beyond. In the third quarter of 2019, Loblaw recorded approximately $22 million ($50 million year-to-date) of restructuring and other related charges, primarily related to Process and Efficiency initiatives.
Consolidation of Franchises Loblaw has more than 500 franchise food retail stores in its network. As at the end of the third quarter of 2019, 444 of these stores were consolidated for accounting purposes under a simplified franchise agreement implemented in 2015.
Consolidation of franchises in the third quarter of 2019 resulted in a year-over-year increase in revenue of $89 million, an increase in adjusted EBITDA(1) of
Choice Properties Segment Results
(unaudited) | |||||||||||
($ millions except where otherwise indicated) | 16 Weeks Ended | 40 Weeks Ended | |||||||||
For the periods ended as indicated | Change | Change | |||||||||
Revenue | $ | 324 | $ | 315 | 2.9% | $ | 971 | $ | 825 | 17.7% | |
Net interest expense and other financing charges(i) | $ | 434 | $ | 117 | 270.9% | $ | 1,546 | $ | 23 | 6,621.7% | |
Net (loss) income | $ | (211) | $ | 62 | (440.3)% | $ | (875) | $ | 368 | (337.8)% | |
Funds from operations(1)(ii) | $ | 174 | $ | 170 | 2.4% | $ | 514 | $ | 432 | 19.0% | |
(i) | Net interest expense and other financing charges includes a fair value adjustment on Exchangeable Units. |
(ii) | Funds from operations is calculated in accordance with the |
Revenue Revenue in the third quarter of 2019 was
- additional revenue generated from properties acquired in 2018 and 2019 and from tenant openings in newly developed leasable space; and
- an increase in base rent and operating cost recoveries from existing properties.
Net Interest Expense and Other Financing Charges Net interest expense and other financing charges in the third quarter of 2019 were $434 million, an increase of $317 million compared to the same period in 2018. The increase was primarily driven by:
- the unfavourable year-over-year impact of the fair value adjustment on Class B LP Units ("Exchangeable Units") of
$312 million as a result of the increase in unit price ofChoice Properties in the third quarter of 2019; and - higher interest expense primarily related to the accelerated amortization of the debt placement costs as a result of the repayment of the term loan during the third quarter of 2019.
Net (Loss) Income Net loss was $211 million in the third quarter of 2019, a decrease of $273 million compared to the same period in 2018, primarily driven by:
- the unfavourable impact of higher interest expense and other financing charges described above;
partially offset by,
- the favourable year-over-year impact of the fair value adjustment of investment properties;
- an increase in net operating income generated from additional revenue as described above; and
- the favourable year-over-year impact of acquisition and other costs related to the acquisition of CREIT.
Funds from Operations(1) Funds from Operations(1) in the third quarter of 2019 was $174 million, an increase of $4 million compared to the same period in 2018. The increase was primarily driven by growth in net operating income attributable to properties acquired in 2018 and 2019 and from tenant openings in newly developed leasable space.
Investment Property Transactions During the third quarter of 2019,
During the third quarter of 2019,
DECLARATION OF QUARTERLY DIVIDENDS
Subsequent to the end of the third quarter of 2019, the Company's Board of Directors declared a quarterly dividend on GWL Common Shares, Preferred Shares, Series I, Preferred Shares, Series III, Preferred Shares, Series IV and Preferred Shares, Series V payable as follows:
Common Shares | ||
Preferred Shares, Series I | ||
Preferred Shares, Series III | ||
Preferred Shares, Series IV | ||
Preferred Shares, Series V |
OUTLOOK(2)
In 2019, on a full-year comparative basis,
- Excluding the positive impact of foreign currency translation, sales will be lower when compared to 2018, due to the impact of lapping sales lost from key customers last year and the impact of product rationalization, partially offset by growth in key categories and pricing;
- Excluding the prior year gains on the sale leaseback of properties, adjusted EBITDA(1) will be slightly lower when compared to 2018. Adjusted EBITDA(1) will be impacted by headwinds from higher input and distribution costs in an inflationary environment and by sales trends as described above, partially offset by improvements driven from productivity and the transformation program;
- Investment in capital expenditures will decrease to approximately
$200 million ; and - Depreciation will increase compared to 2018.
Loblaw is focused on its strategic framework, delivering best in food and health and beauty, using data driven insights underpinned by process and efficiency excellence. This framework is supported by Loblaw's financial plan of maintaining a stable trading environment that targets positive same-store sales and stable gross margin, creating efficiencies to deliver operating leverage, investing for the future and returning capital to shareholders.
Loblaw will remain focused on delivering Process and Efficiency improvements to offset increasing costs and to fund continued incremental investments in its strategic growth areas of Everyday Digital Retail,
In 2019, on a full-year comparative basis, excluding the impact of the spin-out of
- deliver positive same-store sales and stable gross margin in the Retail segment in a highly competitive market;
- deliver positive adjusted net earnings(1) growth;
- invest approximately
$1.1 billion in capital expenditures, net of proceeds from property disposals; and - return capital to shareholders by allocating a significant portion of free cash flow to share repurchases.
In 2019,
For 2019, the Company expects adjusted net earnings(1) to increase due to the results from its operating segments described above.
NON-GAAP FINANCIAL MEASURES
The Company uses non-GAAP financial measures as it believes these measures provide useful information to both management and investors with regard to accurately assessing the Company's financial performance and financial condition.
Management uses these and other non-GAAP financial measures to exclude the impact of certain expenses and income that must be recognized under GAAP when analyzing underlying consolidated and segment operating performance, as the excluded items are not necessarily reflective of the Company's underlying operating performance and make comparisons of underlying financial performance between periods difficult. The Company excludes additional items if it believes doing so would result in a more effective analysis of underlying operating performance. The exclusion of certain items does not imply that they are non-recurring.
These measures do not have a standardized meaning prescribed by GAAP and therefore they may not be comparable to similarly titled measures presented by other publicly traded companies, and should not be construed as an alternative to other financial measures determined in accordance with GAAP.
For reconciliation to, and description of the Company's non-GAAP financial measures and financial metrics, refer to the "Non-GAAP Financial Measures" section of the Company's 2019 Third Quarter Report to Shareholders.
SEGMENT INFORMATION
The Company has three reportable operating segments: Weston Foods,
The Company measures each reportable operating segment's performance based on adjusted EBITDA(1) and adjusted operating income(1). No reportable operating segment is reliant on any single external customer.
16 Weeks Ended | |||||||||||||||||||||
(unaudited) ($ millions) | Loblaw | Other and | Total | Loblaw(3) | Choice Properties(3) | Other and | Total | ||||||||||||||
Revenue | $ | 638 | $ | 14,655 | $ | 324 | $ | (391) | $ | 15,226 | $ | 630 | $ | 14,319 | $ | 315 | $ | (402) | $ | 14,862 | |
Operating income | $ | 23 | $ | 688 | $ | 221 | $ | (48) | $ | 884 | $ | 31 | $ | 590 | $ | 179 | $ | 4 | $ | 804 | |
Net interest expense | |||||||||||||||||||||
and other financing | |||||||||||||||||||||
charges | 1 | 223 | 434 | (141) | 517 | — | 292 | 117 | (82) | 327 | |||||||||||
Earnings before | |||||||||||||||||||||
income tax | $ | 22 | $ | 465 | $ | (213) | $ | 93 | $ | 367 | $ | 31 | $ | 298 | $ | 62 | $ | 86 | $ | 477 | |
Operating income | $ | 23 | $ | 688 | $ | 221 | $ | (48) | $ | 884 | $ | 31 | $ | 590 | $ | 179 | $ | 4 | $ | 804 | |
Depreciation and | |||||||||||||||||||||
amortization | 44 | 775 | — | (118) | 701 | 43 | 459 | — | 28 | 530 | |||||||||||
Adjusting items(1) | 5 | 27 | 5 | 39 | 76 | 8 | 9 | 44 | (4) | 57 | |||||||||||
Adjusted EBITDA(1) | $ | 72 | $ | 1,490 | $ | 226 | $ | (127) | $ | 1,661 | $ | 82 | $ | 1,058 | $ | 223 | $ | 28 | $ | 1,391 | |
Depreciation and | |||||||||||||||||||||
amortization(ii) | 40 | 618 | — | (118) | 540 | 38 | 298 | — | 28 | 364 | |||||||||||
Adjusted operating | |||||||||||||||||||||
income(1) | $ | 32 | $ | 872 | $ | 226 | $ | (9) | $ | 1,121 | $ | 44 | $ | 760 | $ | 223 | $ | — | $ | 1,027 | |
(i) | For further detail on items included in Other and Intersegment, see note 22, "Segment Information" of the Company's 2019 Third Quarter Report to Shareholders. |
(ii) | Excludes $157 million (2018 – $161 million) of amortization of intangible assets acquired with |
40 Weeks Ended | |||||||||||||||||||||||||||||||||
(unaudited) ($ millions) | Weston | Loblaw | Choice | Other and | Total | Weston | Loblaw(3) | Choice | Other and | Total | |||||||||||||||||||||||
Revenue | $ | 1,633 | $ | 36,447 | $ | 971 | $ | (1,049) | $ | 38,002 | $ | 1,615 | $ | 35,475 | $ | 825 | $ | (1,064) | $ | 36,851 | |||||||||||||
Operating income | $ | 45 | $ | 1,723 | $ | 670 | $ | (198) | $ | 2,240 | $ | 62 | $ | 1,472 | $ | 391 | $ | (30) | $ | 1,895 | |||||||||||||
Net interest expense | |||||||||||||||||||||||||||||||||
and other financing | |||||||||||||||||||||||||||||||||
charges | 1 | 571 | 1,546 | (421) | 1,697 | — | 469 | 23 | 238 | 730 | |||||||||||||||||||||||
Earnings before | |||||||||||||||||||||||||||||||||
income tax | $ | 44 | $ | 1,152 | $ | (876) | $ | 223 | $ | 543 | $ | 62 | $ | 1,003 | $ | 368 | $ | (268) | $ | 1,165 | |||||||||||||
Operating income | $ | 45 | $ | 1,723 | $ | 670 | $ | (198) | $ | 2,240 | $ | 62 | $ | 1,472 | $ | 391 | $ | (30) | $ | 1,895 | |||||||||||||
Depreciation and | |||||||||||||||||||||||||||||||||
amortization | 111 | 1,935 | 1 | (277) | 1,770 | 102 | 1,141 | — | 87 | 1,330 | |||||||||||||||||||||||
Adjusting items(1) | 11 | 43 | 18 | 50 | 122 | 10 | 14 | 200 | (67) | 157 | |||||||||||||||||||||||
Adjusted EBITDA(1) | $ | 167 | $ | 3,701 | $ | 689 | $ | (425) | $ | 4,132 | $ | 174 | $ | 2,627 | $ | 591 | $ | (10) | $ | 3,382 | |||||||||||||
Depreciation and | |||||||||||||||||||||||||||||||||
amortization(ii) | 105 | 1,543 | 1 | (277) | 1,372 | 93 | 740 | — | 87 | 920 | |||||||||||||||||||||||
Adjusted operating | |||||||||||||||||||||||||||||||||
income(1) | $ | 62 | $ | 2,158 | $ | 688 | $ | (148) | $ | 2,760 | $ | 81 | $ | 1,887 | $ | 591 | $ | (97) | $ | 2,462 | |||||||||||||
(i) | For further detail on items included in Other and Intersegment, see note 22, "Segment Information" of the Company's 2019 Third Quarter Report to Shareholders. |
(ii) | Excludes |
FORWARD-LOOKING STATEMENTS
This News Release contains forward-looking statements about the Company's objectives, plans, goals, aspirations, strategies, financial condition, results of operations, cash flows, performance, prospects, opportunities and legal and regulatory matters. Specific forward-looking statements in this News Release include, but are not limited to, statements with respect to the Company's anticipated future results, events and plans, strategic initiatives, regulatory changes including further healthcare reform, future liquidity, planned capital investments, and the status and impact of IT systems implementations. These specific forward-looking statements are contained throughout this News Release including, without limitation, in the "Consolidated Other Business Matters" and "Outlook" sections. Forward-looking statements are typically identified by words such as "expect", "anticipate", "believe", "foresee", "could", "estimate", "goal", "intend", "plan", "seek", "strive", "will", "may", "maintain", "achieve", "grow", "should" and similar expressions, as they relate to the Company and its management.
Forward-looking statements reflect the Company's estimates, beliefs and assumptions, which are based on management's perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. The Company's expectation of operating and financial performance in 2019 is based on certain assumptions including assumptions about sales and volume growth, anticipated cost savings, operating efficiencies, anticipated benefits from strategic initiatives and restructuring, healthcare reform impacts, future liquidity, planned capital investments, and the status and impact of IT systems implementations. The Company's estimates, beliefs and assumptions are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and as such, are subject to change. The Company can give no assurance that such estimates, beliefs and assumptions will prove to be correct.
Numerous risks and uncertainties could cause the Company's actual results to differ materially from those expressed, implied or projected in the forward-looking statements, including those described in the "Enterprise Risks and Risk Management" section of the Company's 2018 Annual Report and the Company's Annual Information Form for the year ended
Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect the Company's expectations only as of the date of this News Release. Except as required by law, the Company does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
2019 THIRD QUARTER REPORT TO SHAREHOLDERS
The Company's 2018 Annual Report and 2019 Third Quarter Report to Shareholders are available in the Investor Centre section of the Company's website at www.weston.ca and have been filed on SEDAR and are available at www.sedar.com.
INVESTOR RELATIONS
Shareholders, security analysts and investment professionals should direct their requests to
Additional financial information has been filed electronically with various securities regulators in
THIRD QUARTER CONFERENCE CALL AND WEBCAST
Pre-registration will be available.
Ce rapport est disponible en français.
Endnotes | |
(1) | See "Non-GAAP Financial Measures" section of the Company's 2019 Third Quarter Report to Shareholders, which includes the reconciliation of such non-GAAP measures to the most directly comparable GAAP measures. |
(2) | This News Release contains forward-looking information. See "Forward-Looking Statements" section of this News Release and the Company's 2019 Third Quarter Report to Shareholders for a discussion of material factors that could cause actual results to differ materially from the forecasts and projections herein and of the material factors and assumptions that were used when making these statements. This News Release should be read in conjunction with GWL's filings with securities regulators made from time to time, all of which can be found at www.weston.ca and www.sedar.com. |
(3) | Comparative figures have been restated to conform with the current year presentation. |
SOURCE
© Canada Newswire, source