August 09, 2017 22:39 ET
Liquor Stores N.A. Ltd. Reports Second Quarter 2017 Results, New Members of Senior Management Changes to Board, and Change to the Frequency of Dividend Payments
Investor Conference Call on August 10, 2017 at 7.30 A.M. MT
EDMONTON, ALBERTA--(Marketwired - Aug. 9, 2017) - Liquor Stores N.A. Ltd. (the "Company" or "Liquor Stores") (TSX:LIQ) today reported its results for the three and six months ended June 30, 2017. For the second quarter of 2017 compared to the second quarter of 2016:
- Consolidated sales were $208.1 million, down 0.6% from $209.3 million
- Operating profit before amortization was $5.3 million, down from $12.4 million in Q2 2016. On an adjusted basis to exclude non-recurring adjusting items(1), operating profit was $10.9 million for the second quarter of 2017.
- Canadian same-store sales were $119.6 million, down 3.9% from $124.5 million in Q2 2016.
- U.S. same-store sales were $52.5 million, down 4.5% from $54.9 million.
- Gross margin percentage increased by 100 basis points to 26.1% (Q2 2016 - 25.1%).
The Company also announced the appointment of Kenneth G. Barbet, former Chief Executive Officer of the Nova Scotia Liquor Corporation and Big Rock Brewery Inc. as the new Chief Executive Officer of the Company, effective as of today's date.
"The results for the second quarter and first half of 2017 are disappointing. Shareholders should expect significant improvements going forward," said Mr. Barbet. "The new Board has directed me as incoming CEO to focus on cost and inventory reductions to be able to fund an accelerated renovation program for our core Alberta and B.C. markets and the implementation of a new ERP platform. I am confident that this new strategy will transform this business and create significant increases in long-term value for our shareholders."
The Company also announced that Richard D. Perkins has stepped down from the Board to take on the role of Executive Vice President, Business Transformation, effective as of today's date.
Lastly, the Company announced the appointment of Mr. Denis Ryan to the Board of Directors effective as of today's date. Mr. Ryan's career includes serving as an investment advisor with CIBC Wood Gundy, an executive with BGH Investment Management Limited, Vice-President Institutional Asset Management with Altamira, an investment banking role for Griffiths McBurney and Partners and a founding partner with Morrison Williams Investment Management Limited. Mr. Ryan's career also includes serving as Co-founder and Director of Keeper Resources Inc. and as well as serving as a Director of Front Street Capital. Other publicly listed past directorships include serving as a member of the Board and as a financier of Immunovaccine.
FINANCIAL HIGHLIGHTS
- Adjusted operating profit before amortization, adjusted net earnings and adjusted basic earnings per share and adjusting items per share are non-IFRS measures that do not have any standardized meaning prescribed by IFRS. For more information on these non-IFRS measures and for a reconciliation to the closest IFRS measure, see the 'Non-IFRS Financial Measures' in our Management Discussion and Analysis ("MD&A") for the three and six months ended June 30 2017, which is available on the Company's website (www.liquorstoresna.ca) and on the SEDAR website (www.sedar.com).
DIVIDEND POLICY
The Company currently pays a monthly dividend of $0.03 per Common Share. Dividends are paid, if declared, on or about the 15th day of each month to Shareholders of record at the end of the previous month. Effective for the fourth quarter of 2017, the Company will change the frequency of the dividend payments to quarterly and anticipates paying a dividend of $0.09 per quarter rather than the previous monthly dividend. The last dividend payment on the monthly frequency is anticipated to be for the month of September 2017 (paid in October 2017). The dividend for the fourth quarter of 2017 is anticipated to be paid in January 2018.
CONFERENCE CALL
Liquor Stores N.A Ltd. will host an analyst and investor conference call on August 10, 2017 to discuss results for the three and six months ended June 30, 2017. The conference call will take place at 7:30 a.m. M.T.
To participate in the call, please dial 416-340-2216 or toll-free 1-800-273-9672. An archived recording of the conference call will be available approximately one hour after the completion of the call, by dialling: 905-694-9451 or Toll-Free Access: 1-800-408-3053. The required passcode is: 6325879.