TORONTO, Feb. 27, 2013 /CNW/ - Sears Canada Inc. (TSX: SCC) today
announced its unaudited fourth quarter and full-year results. Total
revenues for the 14-week period ended February 2, 2013 were $1,298.0
million versus $1,365.9 million for the 13-week period ended January
28, 2012, a decrease of 5.0%. Same store sales for the quarter
decreased 3.8%. All amounts in this release are expressed in Canadian
dollars unless otherwise specified.
Net earnings for the 14-week fourth quarter this year were $39.9 million
or 39 cents per share versus $41.0 million or 39 cents per share for
the 13-week fourth quarter of the prior year. Included in the net
earnings for the fourth quarter this year were pre-tax gains of $21.1
million related to a voluntary buyout program concerning
post-retirement benefits and $8.6 million related to the sale of a
joint venture interest, and a pre-tax charge of $12.6 million related
to Transformation expenses. Included in net earnings for the fourth
quarter last year was a pre-tax charge of $14.4 million related to
Transformation expenses. Adjusted EBITDA (Earnings Before Interest,
Taxes, Depreciation and Amortization) for the 14-week period ended
February 2, 2013 was $62.4 million versus $101.8 million for the
13-week period ended January 28, 2012.
Total revenues for the 53-week period ended February 2, 2013 were
$4,300.7 million versus $4,619.3 million for the 52-week period ended
January 28, 2012, a decrease of 6.9%. Same store sales for the year
decreased 5.6%. Net earnings for the year ended February 2, 2013 were
$101.2 million or 99 cents per share versus a net loss of $50.3 million
or 48 cents per share for the 52-week period ended January 28, 2012.
Included in net earnings for the year this year was a pre-tax gain of
$167.1 million related to lease terminations and a charge of $12.6
million related to Transformation expenses. Included in the net loss
for the year last year was a charge of $60.0 million related to
Transformation expenses. Adjusted EBITDA for the 53-week period ended
February 2, 2013 was $47.0 million versus $124.0 million for the
52-week period ended January 28, 2012.
Commenting on the fourth quarter, Calvin McDonald, President and Chief
Executive Officer, Sears Canada Inc., said, "Although sales were lower
than last year, our same store sales performance in the fourth quarter
improved over the three prior quarters. Home electronics and
Craftsman, which includes snowblowers and hardware, contributed to the
majority of our sales decline. Though the positive sales trend in
major appliances slowed, we continued to add market share. Of
particular note was the positive same store sales growth of our apparel
and accessories business in the quarter compared to the fourth quarter
last year. Inventory quality at the end of the quarter improved
compared to the same time last year, as a result of a significant
reduction in out-of-season inventory."
With respect to the full year, Mr. McDonald said, "While the revenues
and Adjusted EBITDA in 2012 were disappointing, we have said from the
outset that our Transformation is a three-year journey. We implemented
many initiatives during 2012 to which our customers have responded
positively such as an enterprise-wide price rebalancing under '5,000
Lower Prices', our quarterly LOOK! reports, The Baby's Room, the redesigned Sears Home store in Ottawa, and nine
completely refreshed full-line stores. We expect to build on these and
our other successes as we move into 2013.
"I acknowledge the efforts and dedication of the 29,000 Sears associates
who continue to implement the changes necessary to move the
Transformation forward, and I thank them for their commitment."
This release contains information which is forward-looking and is
subject to important risks and uncertainties. Forward-looking
information concerns the Company's future financial performance,
business strategy, plans, goals and objectives. Factors which could
cause actual results to differ materially from current expectations
include, but are not limited to: the ability of the Company to
successfully implement its cost reduction, productivity improvement and
strategic initiatives and whether such initiatives will yield the
expected benefits; the results achieved pursuant to the Company's
long-term marketing and servicing alliance with JPMorgan Chase Bank,
N.A.; general economic conditions; competitive conditions in the
businesses in which the Company participates; changes in consumer
spending; seasonal weather patterns; customer preference toward product
offerings; changes in the Company's relationship with its suppliers;
interest rate fluctuations and other changes in funding costs;
fluctuations in foreign currency exchange rates; the possibility of
negative investment returns in the Company's pension plan; the outcome
of pending legal proceedings; and changes in laws, rules and
regulations applicable to the Company. While the Company believes that
its forecasts and assumptions are reasonable, results or events
predicted in this forward-looking information may differ materially
from actual results or events.
Adjusted EBITDA is a non-IFRS measure, and excludes finance costs,
interest income, share of income or loss from joint ventures, income
tax expense or recovery, depreciation and amortization and income or
expenses of a non-recurring, unusual or one-time nature. Please refer
to the table attached for a reconciliation of net earnings (loss) to
Adjusted EBITDA.
Sears Canada is a multi-channel retailer with a network that includes
181 corporate stores, 261 hometown dealer stores, 9 home services
showrooms, over 1,500 catalogue and online merchandise pick-up
locations, 101 Sears Travel offices and a nationwide home maintenance,
repair, and installation network. The Company also publishes Canada's
most extensive general merchandise catalogue and offers shopping online
at www.sears.ca.
SEARS CANADA INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Unaudited
|
(in CAD millions)
|
|
|
As at
February 2, 2013
|
|
As at
January 28, 2012
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
237.0
|
|
$
|
397.4
|
|
Accounts receivable, net
|
|
|
|
76.2
|
|
|
116.2
|
|
Income taxes recoverable
|
|
|
|
5.5
|
|
|
4.1
|
|
Inventories
|
|
|
|
851.4
|
|
|
823.9
|
|
Prepaid expenses
|
|
|
|
30.1
|
|
|
27.9
|
|
Total current assets
|
|
|
|
1,200.2
|
|
|
1,369.5
|
|
|
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
|
|
Property, plant and equipment
|
|
|
|
840.0
|
|
|
872.0
|
|
Investment property
|
|
|
|
21.7
|
|
|
21.7
|
|
Intangible assets
|
|
|
|
27.2
|
|
|
23.6
|
|
Goodwill
|
|
|
|
8.7
|
|
|
8.7
|
|
Investment in joint ventures
|
|
|
|
263.4
|
|
|
301.4
|
|
Deferred tax assets
|
|
|
|
83.8
|
|
|
84.6
|
|
Other long-term assets
|
|
|
|
34.1
|
|
|
49.2
|
|
Total assets
|
|
|
$
|
2,479.1
|
|
$
|
2,730.7
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
$
|
482.0
|
|
$
|
576.8
|
|
Deferred revenue
|
|
|
|
197.5
|
|
|
208.0
|
|
Provisions
|
|
|
|
66.3
|
|
|
64.8
|
|
Income taxes payable
|
|
|
|
—
|
|
|
1.0
|
|
Other taxes payable
|
|
|
|
33.9
|
|
|
42.8
|
|
Principal payments on long-term obligations due within one year
|
|
|
|
5.2
|
|
|
5.1
|
|
Total current liabilities
|
|
|
|
784.9
|
|
|
898.5
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
|
Long-term obligations
|
|
|
|
30.9
|
|
|
117.6
|
|
Deferred revenue
|
|
|
|
90.7
|
|
|
89.2
|
|
Retirement benefit liability
|
|
|
|
415.7
|
|
|
452.3
|
|
Deferred tax liabilities
|
|
|
|
5.8
|
|
|
5.3
|
|
Other long-term liabilities
|
|
|
|
74.7
|
|
|
75.8
|
|
Total liabilities
|
|
|
|
1,402.7
|
|
|
1,638.7
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Capital stock
|
|
|
|
14.9
|
|
|
15.0
|
|
Retained earnings
|
|
|
|
1,208.2
|
|
|
1,218.5
|
|
Accumulated other comprehensive loss
|
|
|
|
(146.7)
|
|
|
(141.5)
|
|
Total shareholders' equity
|
|
|
|
1,076.4
|
|
|
1,092.0
|
|
Total liabilities and shareholders' equity
|
|
|
$
|
2,479.1
|
|
$
|
2,730.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEARS CANADA INC.
CONSOLIDATED STATEMENTS OF NET EARNINGS (LOSS) AND COMPREHENSIVE INCOME
(LOSS)
For the 14 and 53-week periods ended February 2, 2013 and the 13 and
52-week periods ended January 28, 2012
Unaudited
|
|
14 and 13-Week Period
|
|
53 and 52-Week Period
|
|
(in CAD millions, except per share amounts)
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Revenue
|
$
|
1,298.0
|
|
$
|
1,365.9
|
|
$
|
4,300.7
|
|
$
|
4,619.3
|
|
Cost of goods and services sold
|
|
848.7
|
|
|
864.6
|
|
|
2,749.2
|
|
|
2,932.3
|
|
Selling, administrative and other expenses
|
|
429.6
|
|
|
442.7
|
|
|
1,634.4
|
|
|
1,737.9
|
|
Operating earnings (loss)
|
|
19.7
|
|
|
58.6
|
|
|
(82.9)
|
|
|
(50.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on lease terminations
|
|
—
|
|
|
—
|
|
|
167.1
|
|
|
—
|
|
Gain on sale of interest in joint venture
|
|
8.6
|
|
|
—
|
|
|
8.6
|
|
|
—
|
|
Gain on settlement of post-retirement benefits
|
|
21.1
|
|
|
—
|
|
|
21.1
|
|
|
—
|
|
Finance costs
|
|
2.4
|
|
|
4.0
|
|
|
13.3
|
|
|
16.0
|
|
Interest income
|
|
0.8
|
|
|
0.4
|
|
|
4.1
|
|
|
1.7
|
|
Share of income from joint ventures
|
|
0.1
|
|
|
1.5
|
|
|
9.5
|
|
|
8.3
|
|
Earnings (loss) before income taxes
|
|
47.9
|
|
|
56.5
|
|
|
114.2
|
|
|
(56.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (expense) recovery
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
3.9
|
|
|
12.3
|
|
|
(8.2)
|
|
|
(18.7)
|
|
|
Deferred
|
|
(11.9)
|
|
|
(27.8)
|
|
|
(4.8)
|
|
|
25.3
|
|
|
$
|
(8.0)
|
|
$
|
(15.5)
|
|
$
|
(13.0)
|
|
$
|
6.6
|
|
Net earnings (loss)
|
$
|
39.9
|
|
$
|
41.0
|
|
$
|
101.2
|
|
$
|
(50.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net earnings (loss) per share
|
$
|
0.39
|
|
$
|
0.39
|
|
$
|
0.99
|
|
$
|
(0.48)
|
|
Diluted net earnings (loss) per share
|
$
|
0.39
|
|
$
|
0.39
|
|
$
|
0.99
|
|
$
|
(0.48)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
|
$
|
39.9
|
|
$
|
41.0
|
|
$
|
101.2
|
|
$
|
(50.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on foreign exchange derivatives
|
|
—
|
|
|
0.9
|
|
|
—
|
|
|
(4.1)
|
|
|
Reclassification to net earnings (loss) of (gain) loss on
foreign exchange derivatives
|
|
(0.2)
|
|
|
0.2
|
|
|
(0.2)
|
|
|
7.1
|
|
|
Remeasurement loss on net defined retirement benefit
liability
|
|
(6.3)
|
|
|
(79.1)
|
|
|
(5.0)
|
|
|
(79.1)
|
|
Other comprehensive loss
|
$
|
(6.5)
|
|
$
|
(78.0)
|
|
$
|
(5.2 )
|
|
$
|
(76.1)
|
|
Comprehensive income (loss)
|
$
|
33.4
|
|
$
|
(37.0)
|
|
$
|
96.0
|
|
$
|
(126.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEARS CANADA INC.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
For the 14 and 53-week periods ended February 2, 2013 and the 13 and
52-week periods ended January 28, 2012
Unaudited
|
(in CAD millions)
|
|
Capital
stock
|
|
Retained
earnings
|
|
Foreign
exchange
derivatives
designated as
cash
flow hedges
|
|
Remeasurement
loss
|
|
Accumulated
other
comprehensive
(loss) income
|
|
Shareholders'
equity
|
|
Balance as at October 27, 2012
|
|
$
|
14.9
|
|
$
|
1,270.2
|
|
$
|
0.2
|
|
$
|
(140.4 )
|
|
$
|
(140.2 )
|
|
$
|
1,144.9
|
|
Comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
|
|
|
|
39.9
|
|
|
|
|
|
|
|
|
—
|
|
|
39.9
|
|
Other comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reclassification of gain on foreign
exchange derivatives
|
|
|
|
|
|
|
|
|
(0.2)
|
|
|
|
|
|
(0.2)
|
|
|
(0.2)
|
|
|
Remeasurement loss on net defined
retirement benefit liability
|
|
|
|
|
|
|
|
|
(6.3)
|
|
|
|
|
|
(6.3)
|
|
|
(6.3)
|
|
Total other comprehensive loss
|
|
|
—
|
|
|
—
|
|
|
(6.5)
|
|
|
—
|
|
|
(6.5)
|
|
|
(6.5)
|
|
Total comprehensive income (loss)
|
|
|
—
|
|
|
39.9
|
|
|
(6.5)
|
|
|
—
|
|
|
(6.5 )
|
|
|
33.4
|
|
|
Dividends declared
|
|
|
|
|
|
(101.9)
|
|
|
|
|
|
|
|
|
|
|
|
(101.9)
|
|
Balance as at February 2, 2013
|
|
$
|
14.9
|
|
$
|
1,208.2
|
|
$
|
(6.3)
|
|
$
|
(140.4)
|
|
$
|
(146.7)
|
|
$
|
1,076.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at October 29, 2011
|
|
$
|
15.1
|
|
$
|
1,188.2
|
|
$
|
(0.9)
|
|
$
|
(62.6)
|
|
$
|
(63.5)
|
|
$
|
1,139.8
|
|
Comprehensive (loss) income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
|
|
|
|
41.0
|
|
|
|
|
|
|
|
|
—
|
|
|
41.0
|
|
Other comprehensive (loss) income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on foreign exchange derivatives
|
|
|
|
|
|
|
|
|
0.9
|
|
|
|
|
|
0.9
|
|
|
0.9
|
|
|
Reclassification of loss on foreign
exchange derivatives
|
|
|
|
|
|
|
|
|
0.2
|
|
|
|
|
|
0.2
|
|
|
0.2
|
|
|
Remeasurement loss on net defined
retirement benefit liability
|
|
|
|
|
|
|
|
|
|
|
|
(79.1)
|
|
|
(79.1)
|
|
|
(79.1)
|
|
Total other comprehensive (loss) income
|
|
|
—
|
|
|
—
|
|
|
1.1
|
|
|
(79.1)
|
|
|
(78.0)
|
|
|
(78.0)
|
|
Total comprehensive (loss) income
|
|
|
—
|
|
|
41.0
|
|
|
1.1
|
|
|
(79.1)
|
|
|
(78.0)
|
|
|
(37.0)
|
|
|
Repurchases of common shares
|
|
|
(0.1)
|
|
|
(10.7)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10.8)
|
|
Balance as at January 28, 2012
|
|
$
|
15.0
|
|
$
|
1,218.5
|
|
$
|
0.2
|
|
$
|
(141.7)
|
|
$
|
(141.5)
|
|
$
|
1,092.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at January 28, 2012
|
|
$
|
15.0
|
|
$
|
1,218.5
|
|
$
|
0.2
|
|
$
|
(141.7 )
|
|
$
|
(141.5)
|
|
$
|
1,092.0
|
|
Comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
|
|
|
|
101.2
|
|
|
|
|
|
|
|
|
—
|
|
|
101.2
|
|
Other comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reclassification of gain on foreign
exchange derivatives
|
|
|
|
|
|
|
|
|
(0.2)
|
|
|
|
|
|
(0.2)
|
|
|
(0.2)
|
|
|
Remeasurement loss on net defined
retirement benefit liability
|
|
|
|
|
|
|
|
|
|
|
|
(5.0)
|
|
|
(5.0)
|
|
|
(5.0)
|
|
Total other comprehensive loss
|
|
|
—
|
|
|
—
|
|
|
(0.2)
|
|
|
(5.0)
|
|
|
(5.2)
|
|
|
(5.2)
|
|
Total comprehensive income (loss)
|
|
|
—
|
|
|
101.2
|
|
|
(0.2)
|
|
|
(5.0)
|
|
|
(5.2)
|
|
|
96.0
|
|
|
Repurchases of common shares
|
|
|
(0.1)
|
|
|
(9.6)
|
|
|
|
|
|
|
|
|
|
|
|
(9.7)
|
|
|
Dividends declared
|
|
|
|
|
|
(101.9)
|
|
|
|
|
|
|
|
|
|
|
|
(101.9)
|
|
Balance as at February 2, 2013
|
|
$
|
14.9
|
|
$
|
1,208.2
|
|
$
|
—
|
|
$
|
(146.7)
|
|
$
|
(146.7)
|
|
$
|
1,076.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 29, 2011
|
|
$
|
15.4
|
|
$
|
1,310.4
|
|
$
|
(2.8)
|
|
$
|
(62.6)
|
|
$
|
(65.4)
|
|
$
|
1,260.4
|
|
Comprehensive (loss) income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
|
|
|
(50.3)
|
|
|
|
|
|
|
|
|
—
|
|
|
(50.3)
|
|
Other comprehensive (loss) income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on foreign exchange derivatives
|
|
|
|
|
|
|
|
|
(4.1)
|
|
|
|
|
|
(4.1)
|
|
|
(4.1)
|
|
|
Reclassification of loss on foreign
exchange derivatives
|
|
|
|
|
|
|
|
|
7.1
|
|
|
|
|
|
7.1
|
|
|
7.1
|
|
|
Remeasurement loss on net defined
retirement benefit liability
|
|
|
|
|
|
|
|
|
|
|
|
(79.1)
|
|
|
(79.1)
|
|
|
(79.1)
|
|
Total other comprehensive (loss) income
|
|
|
—
|
|
|
—
|
|
|
3.0
|
|
|
(79.1)
|
|
|
(76.1)
|
|
|
(76.1)
|
|
Total comprehensive (loss) income
|
|
|
—
|
|
|
(50.3)
|
|
|
3.0
|
|
|
(79.1)
|
|
|
(76.1)
|
|
|
(126.4)
|
|
|
Repurchases of common shares
|
|
|
(0.4)
|
|
|
(41.6)
|
|
|
|
|
|
|
|
|
|
|
|
(42.0)
|
|
Balance as at January 28, 2012
|
|
$
|
15.0
|
|
$
|
1,218.5
|
|
$
|
0.2
|
|
$
|
(141.7)
|
|
$
|
(141.5)
|
|
$
|
1,092.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEARS CANADA INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the 14 and 53-week periods ended February 2, 2013 and the 13 and
52-week periods ended January 28, 2012
Unaudited
|
|
14 and 13-Week Period
|
|
53 and 52-Week Period
|
|
(in CAD millions)
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Cash flow generated from (used for) operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
|
$
|
39.9
|
|
$
|
41.0
|
|
$
|
101.2
|
|
$
|
(50.3)
|
|
|
Adjustments for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization expense
|
|
28.1
|
|
|
28.8
|
|
|
113.3
|
|
|
114.9
|
|
|
|
Impairment losses (reversal)
|
|
1.9
|
|
|
2.5
|
|
|
(0.2)
|
|
|
2.5
|
|
|
|
Loss on disposal of property, plant and equipment
|
|
0.3
|
|
|
0.3
|
|
|
1.2
|
|
|
1.1
|
|
|
|
Gain on sale of joint venture
|
|
(8.6)
|
|
|
—
|
|
|
(8.6)
|
|
|
—
|
|
|
|
Gain on lease terminations
|
|
—
|
|
|
—
|
|
|
(167.1)
|
|
|
—
|
|
|
|
Finance costs
|
|
2.4
|
|
|
4.0
|
|
|
13.3)
|
|
|
16.0
|
|
|
|
Interest income
|
|
(0.8)
|
|
|
(0.4)
|
|
|
(4.1)
|
|
|
(1.7)
|
|
|
|
Share of income from joint ventures
|
|
(0.1)
|
|
|
(1.5)
|
|
|
(9.5)
|
|
|
(8.3)
|
|
|
|
Retirement benefit plans expense
|
|
7.8
|
|
|
7.5
|
|
|
31.6
|
|
|
30.2
|
|
|
|
Gain on settlement of post-retirement benefits
|
|
(21.1)
|
|
|
—
|
|
|
(21.1)
|
|
|
—
|
|
|
|
Short-term disability expense
|
|
2.5
|
|
|
2.4
|
|
|
8.4
|
|
|
8.4
|
|
|
|
Income tax expense (recovery)
|
|
8.0
|
|
|
15.5
|
|
|
13.0
|
|
|
(6.6)
|
|
|
Interest received
|
|
0.7
|
|
|
0.3
|
|
|
2.3
|
|
|
1.6
|
|
|
Interest paid
|
|
(1.5)
|
|
|
(3.9)
|
|
|
(5.3)
|
|
|
(4.6)
|
|
|
Retirement benefit plans contributions
|
|
(31.9)
|
|
|
(2.9)
|
|
|
(63.0)
|
|
|
(17.9)
|
|
|
Income tax refunds (payments), net
|
|
8.3
|
|
|
16.1
|
|
|
9.0
|
|
|
(21.6)
|
|
|
Other income tax receipts (deposits), net
|
|
11.1
|
|
|
11.7
|
|
|
(4.1)
|
|
|
—
|
|
|
Changes in non-cash working capital
|
|
68.2
|
|
|
40.5
|
|
|
(122.2)
|
|
|
29.6
|
|
|
Changes in long-term assets and liabilities
|
|
3.8
|
|
|
(10.7)
|
|
|
32.0
|
|
|
(8.3)
|
|
|
|
119.0
|
|
|
151.2
|
|
|
(79.9)
|
|
|
85.0
|
|
Cash flow (used for) generated from investing activities
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment and intangible assets
|
|
(45.1)
|
|
|
(28.3)
|
|
|
(97.5)
|
|
(84.3)
|
|
|
Proceeds from sale of capital assets
|
|
0.4
|
|
|
0.1
|
|
|
2.2
|
|
0.7
|
|
|
Proceeds from lease terminations
|
|
—
|
|
|
—
|
|
|
175.0
|
|
—
|
|
|
Proceeds from sale of Cantrex operations
|
|
—
|
|
|
—
|
|
|
3.5
|
|
—
|
|
|
Proceeds from sale of joint venture
|
|
38.3
|
|
|
—
|
|
|
38.3
|
|
—
|
|
|
Dividends received from joint ventures
|
|
1.6
|
|
|
6.0
|
|
|
18.4
|
|
20.1
|
|
|
|
(4.8)
|
|
|
(22.2)
|
|
|
139.9
|
|
(63.5)
|
|
Cash flow (used for) generated from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest paid on finance lease obligations
|
|
(0.7)
|
|
|
(0.6)
|
|
|
(2.4)
|
|
|
(2.2)
|
|
|
Repayment of long-term obligations
|
|
(3.0)
|
|
|
(1.5)
|
|
|
(142.3)
|
|
|
(117.1)
|
|
|
Proceeds from long-term obligations
|
|
1.5
|
|
|
101.1
|
|
|
35.8
|
|
|
105.0
|
|
|
Dividend payments
|
|
(101.9)
|
|
|
—
|
|
|
(101.9)
|
|
|
—
|
|
|
Repurchases of common shares
|
|
—
|
|
|
(10.8)
|
|
|
(9.7)
|
|
|
(42.0)
|
|
|
|
(104.1)
|
|
|
88.2
|
|
|
(220.5)
|
|
|
(56.3)
|
|
Increase (Decrease) in cash and cash equivalents
|
$
|
10.1
|
|
$
|
217.2
|
|
$
|
(160.5)
|
|
$
|
(34.8)
|
|
Effect of exchange rate on cash and cash equivalents at end of period
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
(0.1)
|
|
Cash and cash equivalents at beginning of period
|
$
|
226.8
|
|
$
|
180.1
|
|
$
|
397.4
|
|
$
|
432.3
|
|
Cash and cash equivalents at end of period
|
$
|
237.0
|
|
$
|
397.4
|
|
$
|
237.0
|
|
$
|
397.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEARS CANADA INC.
RECONCILIATION OF NET EARNINGS (LOSS) TO ADJUSTED EBITDA
For the 14 and 53-week period ended February 2, 2013 and the 13 and
52-week period ended January 28, 2012
Unaudited
|
|
|
Fourth Quarter
|
|
Fiscal
|
|
(in CAD millions, except per share amounts)
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Net earnings (loss)
|
|
$
|
39.9
|
|
$
|
41.0
|
|
$
|
101.2
|
|
$
|
(50.3)
|
|
|
Transformation expense1
|
|
|
12.6
|
|
|
14.4
|
|
|
12.6
|
|
|
60.0
|
|
|
Gain on lease terminations2
|
|
|
—
|
|
|
—
|
|
|
(167.1)
|
|
|
—
|
|
|
Accelerated tenant inducement amortization3
|
|
|
—
|
|
|
—
|
|
|
(4.0)
|
|
|
—
|
|
|
Lease exit costs4
|
|
|
2.0
|
|
|
—
|
|
|
8.0
|
|
|
—
|
|
|
Gain on settlement of post-retirement benefits5
|
|
|
(21.1)
|
|
|
—
|
|
|
(21.1)
|
|
|
—
|
|
|
Gain on sale of interest in joint venture6
|
|
|
(8.6)
|
|
|
—
|
|
|
(8.6)
|
|
|
—
|
|
|
Depreciation and amortization expense
|
|
|
28.1
|
|
|
28.8
|
|
|
113.3
|
|
|
114.9
|
|
|
Finance costs
|
|
|
2.4
|
|
|
4.0
|
|
|
13.3
|
|
|
16.0
|
|
|
Interest income
|
|
|
(0.8)
|
|
|
(0.4)
|
|
|
(4.1)
|
|
|
(1.7)
|
|
|
Share of income from joint ventures
|
|
|
(0.1)
|
|
|
(1.5)
|
|
|
(9.5)
|
|
|
(8.3)
|
|
|
Income tax expense (recovery)
|
|
$
|
8.0
|
|
|
15.5
|
|
$
|
13.0
|
|
|
(6.6)
|
|
Adjusted EBITDA7
|
|
$
|
62.4
|
|
$
|
101.8
|
|
$
|
47.0
|
|
$
|
124.0
|
|
Basic net earnings (loss) per share
|
|
$
|
0.39
|
|
$
|
0.39
|
|
$
|
0.99
|
|
$
|
(0.48)
|
1Transformation expense during 2012 relates to severance costs incurred
during the end of the year. Fiscal 2011 Transformation expense includes
costs related to internal reorganization and the disposition of excess
inventory.
2Gain on lease terminations represents the pre-tax gain on the early
surrender and return of leases on four properties.
3Accelerated tenant inducement amortization represents the accelerated
amortization of lease inducements relating to three of the properties
referred to in footnote 2 above.
4Lease exit costs represent costs incurred to exit properties referred to
in footnote 2 above.
5Gain arising from the settlement of post-retirement benefits of eligible
members covered under the non-pension post-retirement plan.
6During Q4 2012, the Company sold its interest in Medicine Hat Mall for
net proceeds of $38.3 million, recognizing a pre-tax gain of $8.6
million on the sale.
7Adjusted EBITDA is a measure used by management, the retail industry and
investors as an indicator of the Company's performance, ability to
incur and service debt, and as a valuation metric. Adjusted EBITDA is a
non-IFRS measure.
SOURCE: Sears Canada Inc.
